Gecina’s Q3 2024 Earnings: A Strong Performance Amidst a Challenging Market
As the curtains open on Gecina’s Q3 2024 earnings conference call, CEO Benat Ortega and Deputy CEO Nicolas Dutreuil take center stage to present a business update that defies the odds. Despite a quiet leasing market, Gecina’s gross rental income has seen a remarkable 6.7% like-for-like increase, driven primarily by indexation and reversion captured on new leases.
Indexation: The Key Driver of Growth
The impact of indexation cannot be overstated, contributing a significant 5.4% to the company’s growth. This, combined with the 1% contribution from reversion captured on new leases, has resulted in a robust performance. Ortega highlights the importance of this dual-pronged approach, stating, “We’ve continued to benefit from significant rental reversion from our office business, with an overall increase of 14% and an impressive 28% in Paris during the first nine months.”
Residential Portfolio: A Bright Spot
Gecina’s residential portfolio has also seen a notable increase in reversion, with a 16.5% rise. This is a testament to the company’s ability to navigate challenging market conditions and emerge stronger. Ortega points to several key deals signed during Q3, including a lease with a consulting firm in Boulogne and another with a communication company around La Defense. A notable highlight is the signing of a lease with the university in Paris’ 7th arrondissement.
Navigating a Quiet Leasing Market
While the leasing market may be quiet, Gecina has demonstrated its resilience and adaptability. The company’s ability to secure significant deals despite these challenges is a clear indication of its strength and commitment to growth. As Ortega notes, “We’re very happy to have the opportunity to present this business update and answer your questions.” With Gecina’s Q3 2024 earnings, one thing is clear: the company is poised for continued success.
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