Gecina: Rental Growth of 2.0% in H1 2026, Portfolio Nearly Stable at €17.4 Billion
During the first half of 2026, Gecina navigated a polarizing office real estate market, distinguishing between prime locations and the rest. The company confirmed its ability to outperform indexation with an organic growth of 2.0%, boosted by a sustained rental reversion (+13% on average) and a high occupancy rate (93.8%). Meanwhile, the overall portfolio value remained nearly stable (-0.5% on a like-for-like basis), reflecting this strategic focus. This contrast reveals the core strategy: Gecina relies less on generalized asset appreciation and more on selective transformation, funded by disposals while maintaining controlled debt levels.
Revenue Growth, Stable Portfolio: Focused Growth
Rental income on a like-for-like basis increased by 2.0%, surpassing mere indexation capture. This growth is based on an average rental reversion of 13%, with 48,000 sqm leased in the first half, a high occupancy rate of 93.8%, as well as recent deliveries and acquisitions already generating revenue. The real estate pipeline for the next two years covers 50,000 sqm under term sheets, securing commercial visibility. However, the overall portfolio value shows a slight contraction of 0.5% to €17.4 billion on a like-for-like basis. This minor decline masks a reality: the market's polarization between prime areas (Paris, Neuilly) and other locations. Gecina is not experiencing a generalized decrease but is intentionally focusing its assets towards the top of the market. The recurring net income per share increased by 1.4% to €3.43, offsetting the portfolio's stability with operational discipline.
Improved Rental Margin and Competitive Financing
The net rental margin has notably improved over a year, resulting from the optimization of building expenses and the rationalization of structural costs. The group continued the digitization of processes and the integration of AI, refocusing its teams on marketing, development, and customer relations. The average cost of debt remains controlled at 1.6%, benefiting from a solid hedging strategy and disciplined capital management. This profitability improvement is accompanied by a financing platform that remains one of the strongest in the sector. The LTV stands at 38.5% excluding rights (36.2% including rights), and the credit ratings from S&P (A−, stable outlook) and Moody's (A3, stable outlook) have been confirmed for the eighth consecutive year. The recent issuance of a €500 million green bond with a five-year term at a spread of 68 basis points signals competitive market access.
Disposals Finance Transformation, 2026 Guidance Confirmed
Gecina realized €249 million in disposals in the first half of 2026, at a rent deprivation rate of 3.1%, plus an additional €80 million in disposals under promise in July, with a deprivation rate of 2.4%. These disposals fully finance the restructuring of four assets in the pipeline in Paris and Neuilly, without increasing overall debt. The expected average yield on these investments stands at 10.6%, among the best in the market for buildings located in prime zones. The flagship project, the Signature building, already concentrates high expectations. Twelve months after its acquisition, the building is nearly 60% secured in terms of area and about 70% of the initial rent target is already achieved, six months before its delivery. The IRR after leverage over four years exceeds initial forecasts by 450 basis points, over 17%, and the value creation has already reached €150 million. Gecina maintains its unchanged 2026 guidance with a recurring net income per share (group share) ranging between €6.70 and €6.75, validating the robustness of the model in a cautious market environment.
