2012 first-half earnings

Transcription

1 2012 first-half earnings Bernard Michel Chairman and CEO Gilles Bonnier Chief financial officer Paris, July 24, 2012

2 H Contents 1. MARKET ENVIRONMENT 2. OPERATING ACHIEVEMENTS & TARGETS 3. FINANCIAL ACHIEVEMENTS & TARGETS 4. H EARNINGS 5. APPENDICES 2

3 1page Market environment

4 H From strategy to execution Market environment End-2010 / 2011: first strong actions and adaptation of Gecina s profile to the difficult macroeconomic environment First restructuring of hedges Strong efforts on liquidity and financing diversification Net divestment Definition of the 40% LTV target H1 2012: decisive actions in order to execute the strategy, already showing positive impacts on earnings Disposal plan revised to more than 1.2bn vs. 1bn previously, with 420m of assets already sold and 555m more under sales agreements Logistics segment under preliminary sales agreement Investments adapted to both financial commitments and the target portfolio structure Major letting successes on office assets, with adjusted rent levels Consolidation of the financial structure, focusing primarily on liquidity, diversification, maturity and hedging restructuring positive impact on 2012 earnings guidance End-2012 and medium-term: execution to continue moving forward Medium-term portfolio structure built around a refocused Economic division (70%) and a higher-yielding Demographic division (30%) Positive impact of Beaugrenelle from H ( 32m of net rents per annum) Financing: diversification and strong liquidity commitments 4

5 H Our take on the Paris Region office market: take-up Market environment Take-up down vs. 2011, but in line with long-term average Take-up down 18% in H1 2012: weak economic environment and negative basis for comparison (major deals on turnkey buildings in H1 2011) Weak trend on large transactions, but all market segments impacted Weak take-up in the CBD, the Western Crescent and La Défense CBRE and Jones Lang LaSalle are forecasting ca 2 million sq.min take-up for 2012, which remains in line with the historical average Demand driven by cost savings: new / restructured space still a winner Tenants are still looking for cost savings on real estate: 2/3 of large transactions in H concluded on new space Clear negative drivers in the macroeconomic environment: weak GDP growth and increase in unemployment Change in take-up vs. employment and GDP growth Effective fit between Gecina s office portfolio and take-up in H % 4% 3% 2% 1% 0% -1% -2% -3% e Take-up in '000 sq.m 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 28% 22% Paris Center West 4% 11% Paris South 7% 7% Paris North East 4% 2% La Défense 42% 25% 14% 12% 4% 19% Western Inner Rim Outer Crescent Rim Take-up Employment in France (YoY) GDP growth Gecina's portfolio H take-up Sources: CBRE, Immostat, JLL 5

6 H Our take on the Paris Region office market: supply Market environment Immediate supply stable over the past 3 years Immediate supply represents 3.6 million sq.m at end June-2012 (-2% yoy) in the Paris Region: i.e. 1.8 years of take-up decrease in the CBD(-11% yoy), but increase in the Inner Rim (+11% yoy) as second-hand offices are being vacated vacancy remains high in the Western Crescent (10.5%), with ca 50% of vacant space corresponding to buildings > 5,000 sq.m Vacancy still at a low level in the Paris Region: 6.6%. Positive impact of the construction slowdown seen over the past 3 years but future supply could generate some letting challenges Office completions have reached 376,000 sq.m in 2012, of which only 120,000 sq.m are still available Out of the completed space for 2013, 455,000 sq.m are still available, including 10 schemes in the Western Crescent (160,000 sq.m) 2014: potential completions represent 2.4m sq.m, including 272,000 sq.m under construction and 820,000 sq.m with building permits Change in immediate supply and vacancy for offices in the Paris Region Future supply over sq.m % 13.2% 2.0% 6.6% June 2012 Immediate supply Paris region vacancy 14% 12% 10% 8% 6% 4% 2% 0% sq.m Ongoing With building permits Building permits to be obtained Sources : CBRE, DTZ, JLL 6

7 H Our take on the Paris Region office market: rents and values Market environment No major change in (headline) rents Headline rents remained unchanged overall in H increase in incentives, depending on market segment Strong liquidity is supporting asset values The investment market reached 4.8bn in H (+37% vs. H1 2011) 12 transactions > 100m over the period (53% of total investment) French investors remain active (70% of transactions < 100m), strong appetite among sovereign funds Paris Region office rents in H Real estate investment in H and 2012e / s.qm / year bn to 12bn expected (CBRE and JLL) H Paris CBD La Défense H e Sources : CBRE, DTZ, JLL 7

8 H Our take on the Paris Region residential market Market environment The Paris investment market is adjusting through volumes rental levels supported by indexation The market is adjusting to the negative macroeconomic environment through volumes, as it did in 2008 Prices in Paris increased to 8,380 / sq.min April 2012 vs. 8,370 / sq.mat end-2011 Notaries are forecasting 8,400 / sq.m by July 2012 a further slight increase Credit conditions remain favorable, with 15-year mortgage rates down to 3.65% in July 2012 Rental level are being supported by positive indexation Paris residential prices and volumes Gecina outperforming indexation over the long term , % 5.0% 4.0% /sq.m Volumes 3.0% 2.0% 1.0% e % H Volumes (Paris) Paris residential - Notaries IRL Gecina's organic rental growth (residential) Sources : Chambre des Notaires de Paris, INSEE 8

9 H Residential market: potential changes in legislation Market environment Regulations for residential rents set to be put in place from August 2012 In the event of a change of tenants, the rent increase would be limited to indexation (IRL) in ca 40 French cities, including Paris However, if the rent is materially lower than the market rent, a 50% catch-up with the market rent would be allowed subject to conditions Some capexcould be partially passed on to new tenants Limited impact on Gecina s rents and asset values On an average 14% yearly turnover, Gecina would increase its incoming-outgoing rents by indexation (2.2% in H1 12), instead of ca 7 10% Excluding any potential additional rent increase triggered by capex, the rent erosion would be limited to ca 0.7m per annum A balance will be found with tenants so that owners can continue maintaining and improving the assets ( green investments for example) in the long run, residential real estate would become an indexed asset, still benefiting from high visibility A limited impact is also expected on asset values: positive impact of indexation and limited rent erosion Investors in residential real estate are more focused on price / sq.m than rental yield 9

10 Achievements & targets: operations 1page

11 H Gecina has taken decisive actions in 2012 Achievements & targets: Operations Debt and financing Taking the LTV down to 40% Adapting hedging to the portfolio and debt levels and structure Optimization of the debt structure Limiting the increase in the cost of debt Maximizing liquidity Portfolio and asset management Reducing exposure to traditional residential Investments in student housing New balance for healthcare with a shift towards nursing homes Achievements on office lettings Logistics portfolio under preliminary sales agreement Impact on cash flow Increase in 2012 guidance from -5% to -2% vs Management and governance Strong actions on G&A Increase in productivity Share buyback program Ongoing corporate governance improvements 11

12 H Medium-term targets Achievements & targets: Operations Portfolio rebalanced and refocused Divestments: 2.5% to 5% of GAV on offices / healthcare & 200 to 300m unit-by-unit sales on residential pa Investments: development pipeline of ca 5% of Group GAV LTV at 40% ICR > 2.5x 12

13 H Major successes on office lettings 28,000 sq.m let over Jan. July 2012 Achievements & targets: Operations 16m combined headline rents on an annualized basis MERCY ARGENTEAU (bd Montmartre) MAGISTERE (rue de Lisbonne) 1,146 sq.m (49% of office space), from Sept ,835 sq.m (100%), from July m annualized headline rent 5.7m annualized headline rents 5.8 year firm leases (2 tenants) 9 year firm lease (single tenant) HORIZONS 9,705 sq.m - 28% of Horizons, from Apr AVENUE CHARLES DE GAULLE 4.2m annualized headline rents 9 year firm lease (single tenant) 8,918 sq.m (100%), from Jul./Aug m annualized headline rent 9 and 7 year firm leases (2 tenants) 13

14 H Moving towards a balanced and refocused portfolio Achievements & targets: Operations Reduced exposure to traditional residential Sale of 368m of block residential assets in H and a further 146m under sales agreements Traditional residential represents 27% of the portfolio at end-june 2012 (vs. 30% at end-2011) while investing in the Demographic segment 2 new projects launched on student housing in H1 2012, i.e. 4 projects, which will increase the number of beds by +46% Investment in a 70.5m nursing home portfolio to rebalance the healthcare segment Logistics portfolio put up for sale Preliminary sales agreement signed for 203m 14

15 H Management and governance Achievements & targets: Operations Strong discipline on G&A and increase in productivity Gecina will achieve close to 10m of cost savings on G&A in 2012 On top of strong discipline on salaries, these savings are being achieved throughout the company Ongoing share buyback program leading to cash flow accretion Gecina has bought back 44.6m of its own shares over the H Average cost of 66.0 / share on 676,122 shares Underlying yield of 6.7% Higher than the 5.8% net yield on the overall portfolio +0.4% accretion on H1 recurring income per share Ongoing improvement in corporate governance New incentive mechanism for management and teams based on the total return through performance share program Ms InèsReinmannappointed as new Board member at the April 2012 AGM Change in salaries as % of gross rents Rental mix and EBITDA margin over 5 years m % 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 100% 80% 60% 40% 20% 10% 12% 16% 16% 18% 58% 58% 54% 55% 54% 32% 30% 30% 28% 28% 82% 80% 78% 76% 74% 72% H % 0% H % Gross rents Salaries as % of gross rents % residential rents % office rents % others EBITDA margin 15

16 H Medium-term targets: portfolio structure Achievements & targets: Operations Refocusing the portfolio while keeping a strong Demographic division Logistics segment under preliminary sales agreement Opportunistic sale of the hotel division over the medium term Reduction in traditional residential exposure through 200m to 300m unit-by-unit sales to be partially compensated by investments in student housing Healthcare exposure to remain stable, with a rebalancing around nursing homes Further investments in offices The Demographic exposure should provide stability in cash flow sources: impact on rating and cost of capital The increase in offices and the further reduction in traditional residential will contribute towards an increase in operating margins Portfolio breakdown end-june 2012 Portfolio breakdown medium / long term Demographic division 37% 1% 9% Offices Demographic division 30% 5% 10% 27% 2% 2% 59% Logistics Hotels Traditionnal residential Student housing Healthcare 15% 70% Economic division 63% Economic division 70% 16

17 H Medium-term targets: capital recycling and value creation Achievements & targets: Operations Asset rotation rationale Aiming for the target portfolio structure Seizing investment opportunities and reinvesting the proceeds from sales, while sticking to the 40% LTV cap Monitoring investments and asset sales in order to optimize the Group s cash flow Sale of residential assets, logistics, hotels and Beaugrenelle Investment in healthcare, student accommodation and offices Capturing the yield differential between arbitrages and investments Adapting the development pipeline in order to streamline speculative operations Significant investment potential from

18 H Arbitrage policy Achievements & targets: Operations 2012 > 1.2bn asset sales 500m of residential block sales in order to meet the 40% LTV target 200m of unit-by-unit residential sales 215m of sales on the logistics segment 300m of further asset rotation across the portfolio Medium term 200m to 300m of unit-by-unit residential per annum 2.5% to 5% of GAV per annum of offices and healthcare Beaugrenelle shopping center (after completion) Opportunistic basis 100% of hotels Office assets in Spain ( 49m) 18

19 H Investment strategy Achievements & targets: Operations 2012 Development pipeline (ca 320m) Acquisition of a 70.5m healthcare portfolio Share buyback program for 45m Medium term Investments split between: - 70% existing assets and 30% developments - 70% offices and 30% healthcare and student accommodation Development pipeline representing 5% of Group GAV Opportunistic basis Distressed assets Sector consolidation 19

20 Achievements & targets: financing 1page

21 Major steps forward with debt and financing Achievements & targets: financing Challenges Status Bringing the LTV down LTV down to 40% at end-2012 Maximizing liquidity Min. liquidity >1.2x 12-months rolling credit maturities Limiting the increase in the cost of debt Cost of debt to reach max. 4.1% in 2012 Optimizing the hedging structure Hedging lengthened and adapted Adapting the debt structure & banking pool Increase in bonds Lengthening the financing resources maturity Average maturity up from 3.4 to 4.1 years 21

22 H Gearing tailored to fit the portfolio structure Achievements & targets: financing LTV at 44.4% in H (+1.8% vs. end-2011) Dividend: +2.3% impact on LTV Settlement on hedges: +1.1% impact on LTV Share buyback program: +0.4% impact on LTV Net investment & other: -0.6% impact on LTV Recurring income: -1.4% impact on LTV LTV target of 40% reiterated for end-2012 Committed disposals: -2.8% impact on LTV Non-committed disposals: -1.2% impact on LTV H cash flow net of invest.: -0.4% impact on LTV target based on constant valuation of assets Change in LTV and development pipeline as % of GAV 50% 45% 40% 35% 30% 25% H e 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% LTV Pipeline as % of GAV 22

23 Financing: timing is money Achievements & targets: financing Adequate liquidity means Gecina has the leeway needed to choose the best market timing and optimized financing sources 400 September 10, m bond 4-year / 285bp January 25, m bond 5-year / 168bp Q m corporate lines 185bp average Dec m mortgage loans 161bp average April 3, m bond 7-year / 290bp Jan Jul m corporate lines 250bp average bps Gecina 2014 Itraxx Main 5y 23

24 H Maximizing liquidity and rebalancing financial resources Achievements & targets: financing 1.5bn of financing lines raised at end-july bn of financing lines raised at end-july 2012, with debt maturity increasing to 4.1 years (vs. 3.4 years at end-2011) 1.3bn of unused credit lines at end-july 2012, no major refinancing before June m of bilateral corporate lines raised in 2012 with a 4.2 year maturity and 1.05% non-use fee Strong and balanced banking pool and more flexible covenants 10 core banks limited yearly maturities by individual banks More flexible covenants at end-july: trust in Gecina among its financial partners, while contributing towards improved headroom for the Group Rebalancing financial resources around bonds 494m bond redemption in January, more than compensated by a 7-year 650m bond issue in April 2012 Bonds account for 32% of financial resources at end-june 2012 Decrease in mortgage financing to ca 15% of secured debt / block value at end-2012 (vs. 18.7% at end-2011) Change in the level of secured debt and its covenant 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Covenant 500m headroom June End-2012e Financing resources (excluding bonds) by country at end-june 2012 France 58% Germany 32% UK 6% Netherlands 4% Secured debt / block value 24

25 H Optimizing the hedging structure and cost of debt Achievements & targets: financing In-depth restructuring of the hedging structure in H Cancellation of 1.6bn short-term hedges (2.7 years maturity) 129m cash-out in H m fixed-rate debt issued during the half-year (7-year bond) Adaptation and optimization of the hedging portfolio following fixed-rate bond issue and anticipated debt decrease Increased flexibility over the short / medium-term and increased average hedging maturity Cost of debt should remain stable in 2012 compared with 2011 Average rate on hedging: 3.55% before restructuring 2.48% after restructuring Average cost of debt expected at max. 4.1% in 2012 Cumulated hedging restructuring since 2010 had a 55m positive impact on NNNAV Hedging structure before 2010 & 2012 optimization * Hedging structure after 2010 and 2012 optimization * 160% 140% 120% 107% 119% 149% 139% 108% 160% 140% 120% 100% 80% 60% 40% 20% 0% 149% 139% 107% 119% 54% 108% 27% 54% 15% 27% 4% 0% 15% 4% 0% % 80% 60% 40% 20% 0% 104% 104% 97% 100% 12% 86% 15% 23% 17% 4% 64% 1% 38% 92% 34% 82% 81% 83% 82% 0% 63% 0% 17% 38% 34% 0% 2% 17% 0% 2% Firm hedging Total hedging Optional hedging Firm hedging Total hedging * Level of debt taken into account: end-2012e / both charts at constant financial structure 25

26 H Optimizing the hedging structure and cost of debt Achievements & targets: financing From a 4.6% assumption based on: unchanged market conditions compared with Feb-2012 unchanged hedging structure to a 3.7% achievement in H and max. 4.1% expected for What happened: restructured hedging structure decline in market rates bond issue renewal of corporate credit facilities Average cost of debt for 2011 and short / medium-term assumptions 4.6% 4.6% 4.4% 4.2% 4.0% 4.1% 4.1% 4.3% 3.8% 3.6% 3.7% 3.4% 3.2% 3.0% e at end-2011 H e Medium term 26

27 H Medium-term targets: financing Achievements & targets: financing Further diversification of financing resources through bond issue Bonds should represent > 40% of financing over the medium term Increase in debt maturity 5-10 year maturities- longer than corporate lines high flexibility(amount, maturity, timing) Natural fixed-rate hedge Margin can be lower than corporate lines Lower exposure to the banking system Maximum 1bn of debt maturity per year Avoiding heavy corporate maturities during the same year Ensuring liquidity corresponding to 1.2x 12-months rolling credit maturities Reducing the cost of unused credit lines Mixing longer-term and stable resources with shorter-term resources with lower margins Breakdown by type of financing Debt schedule at end-july 2012 (including unused credit facilities) 0.6bn bond 100% % 60% 40% 20% 0% 46% 45% 35% 33% 19% 22% 37% 33% 35% 35% 35% 29% 32% 20% 45% June 2012 Medium-term target Bonds Mortgage financing and financial leases Bank loans m bn bond 0.8bn bond

28 1page 2012 half-year earnings

29 H H net recurring cash flow H earnings Excluding the impact of IFRS 5 In million euros June 30, 2012 June 30, 2011 Change (%) Gross rental income % Expenses on properties (74.2) (77.0) -3.6% Expenses billed to tenants % Net rental income % Services and other income % Salaries and management costs (32.7) (39.2) -16.6% EBITDA % Gains from disposals % Change in fair value of properties (8.5) na Depreciation (2.5) (2.2) +15.8% Net provisions and amortization (1.0) (7.1) na Operating income % Net financial expenses (81.2) (95.1) -14.6% Financial depreciation and provisions 0.0 (0.2) na Change in fair value of financial instruments (92.4) 2.9 na Net income from equity affiliates na Pre-tax income % Recurrent tax (0.4) (1.2) na Non recurrent tax (0.8) 45.4 na Exit tax na Deferred tax na Minority interests % Consolidated net income (group share) % Gross recurrent income % Net recurrent income % Average number of shares (millions) % Net recurrent income per share (undiluted) % Including + 8.4m on residential and m on logistics Impact of a decline in interest rates on the valuation of hedging (- 59m) and MTM of - 34m of Ornane (convertible) bonds Minority interests on Beaugrenelle 29

30 H Rental income: +0.8% organic growth excl. AON penalty H earnings Gross rents Change (%) Rental margin June 30, 2011 June 30, 2012 Current Comparable June 30, 2011 June 30, 2012 Offices % -7.1% 96.2% 93.2% Traditionnal residential % 3.7% 83.0% 82.7% Student housing % 3.6% 71.9% 75.9% Healthcare % 3.3% 97.5% 98.5% Logistics % 4.3% 71.0% 84.6% Hotels % 0.6% 101.0% 99.5% Group total % -3.0% 91.5% 90.7% -1% excl. AON penalty in H % excl. AON penalty in H H H rental income = 19m (10.5) (0.3) (24.7) H Like-for-like change AON penalty Invest. Asset restruct. Disposals H

31 Rental income: occupancy rate H earnings Average financial occupancy rate vs. June % 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 97.0% 96.4% 96.8% 97.9% 100% 100% 94.1% 92.0% 82.0% 77.4% Group Offices Residential Logistics Hotels / healthcare Major vacancy challenges on the office portfolio June-30, 11 June-30, 12 Asset Location Completion Vacant space (sq.m) Annualized impact on offices vacancy rate Mercure Paris 15 ème na 8,017 1.% Horizons Boulogne na 8, % Défense Ouest Colombes na 11, % Portes de la Défense Colombes na 9, % Newside La Garenne Colombes July , % Pointe Metro 2 Genevilliers December , % 31

32 H Performance on the office portfolio H earnings Operating trends 46% of office rents have switched to the ILAT index m from disposals and + 4.6m from acquisitions or investments Negative basis for comparison ( 10.5m AON penalty in Q2 2011) Positive indexation: +2.4% Neutral impact of renewals and re-lettings Office snapshot 114 assets 1,057,844 sq.m Office portfolio breakdown (area) Inner Rim 14% Outer Rim 3% Paris Center West 28% Office lease schedule (break-up options) m % 44% 72% 81% 91% 95% 100% 120% 100% 80% 60% 40% Western Crescent 42% Paris South 4% Paris North East 7% La Défense 2% % 20% % 32

33 H Performance on the residential portfolio H earnings Operating trends Tenants turnover: 13.7% (vs. 14.7% in 2011) Positive impact of indexation (+1.9%) Improvement in financial occupancy (+0.9%) Incoming / outgoing rent differential of +9.6% Strong underlying demand Residential snapshot 9,383 apartments 1,442 student accommodation units Residential portfolio breakdown (area) Slight increase in vacancy vs. March 2012 as empty apartments are not re-let in building earmarked for unit-by-unit sales Paris Region 34% Lyon Others 2% 3% Paris 61% 33

34 H Performance on the healthcare portfolio H earnings Nursing home portfolio acquisition 6 nursing homes rented by Medica(9.5 year firm leases) 70.5m valuation 6.2% net yield 75 facilities 8,400 beds Healthcare snapshot Gecina is rebalancing its portfolio, with a shift towards nursing homes Gecina Like-for-like rental growth Annualized rents: 67.6m Healthcare lease expiry Nursing homes 30% Breakdown of annualized rental income for 2012 on healthcare real estate Medicine, surgery, obstetrics 58% m % 120% 100% 80% 60% Retirement homes 1% Follow-up care and rehabilitation 5% Psychiatry 6% 20 34% 40% % 12% 5% 0% 0% 0% % 0% 34

35 Investments & acquisitions H earnings 265m of investments in H New investments: 29% Offices 147m Residential 14m Healthcare 104m Completed projects: 2% Ongoing projects: 56% Capex: 13% April July 2012 July 2012 Dec % let 49% let 100% let 0% let Investments and pre-letting of the office and commercial development pipeline 400 (offices) July 2012 July 2012 Mar Jan In m 100% let 0% let 100% let 0% let 58% pre-let Montmartre Rue de Lisbonne Montrouge La Garenne Genevilliers Velum Beaugrenelle Docks de Saint Ouen Already invested To be invested 35

36 H Disposals H earnings Residential (block) % 3.9% Residential (unit-by-unit) % 2.9% Logistics % 8.7% Other 1 na na GROUP TOTAL % 3.8% Further 555m of assets under preliminary sales agreements 36

37 H H funding and cost of debt H earnings Ratios Covenant at end-july 2012 Covenant at June 30, 2012 June 30, 2012 Loan to value ratio (block) < 55% < 50% -55% 44.4% EBITDA excl. disposals/financial expenses > 2.0x > 2.25x 2.0x 3.04 Secured debt/block value < 20% - 25% < 20% - 25% 18.8% Portfolio value (block, mn) > 6,000 8,000 > 6,000 8, Pro forma LTV of 41.2% (including committed disposals and H recurring income Change in LTV and cost of debt net of investment) 48% 46% 44% 42% 40% 4.5% 4.0% 3.5% New funds raised from Jan. to July m bond issue 4.75% coupon 7-year maturity 290 bp over mid-swap 38% 3.0% 808m corporate lines 36% 1.05% non-use fee 34% H e 2.5% Average 4.2 year maturity LTV Average cost of debt 37

38 H H portfolio value and yields H earnings Breakdown by segment Block value Change on current basis Change on constant basis mn H FY 2011 H vs. end H vs. H H vs. end-2011 H vs. H Offices % 0.9% 0.1% 0.5% Residential % -12.0% 0.9% 1.2% Healthcare % 47.5% 1.8% 3.0% Logistics % -30.7% -13.7% -25.1% Hotels % -0.1% 0.3% 0.1% Sub-total % -1.0% 0.2% 0.1% Equity affiliates 5 6 na na na na Group Total % -1.0% 0.2% 0.1% Group Total Unit value % -1.4% 0.5% 0.5% Net yields by division (June 2012 vs. Dec. 2011) +0.2% on constant basis 6.13% 6.18% 6.95% 6.78% 10.13% 9.01% 7.15% 7.09% 5.69% 5.81% +1.5% rental values -1.3% yield expansion 4.16% 4.22% Offices Residential Healthcare Logistics Hotels Group 38

39 H H block NNNAV H earnings (0.1) (4.4) (1.9) NNNAV end-2011 Dividend Recurring income Val. adjust. assets Val. adjust. derivatives & fixedrated debt Other NNNAV end-june 2012 NNNAV 3.0% over H NNNAV 3.2% vs. end-june

40 1page Appendices

41 H Capital structure Appendices Breakdown at June 30, 2012 Metrovacesa 27% Treasury stock 4% Individual shareholders 5% Non-resident institutionals 22% Resident institutionals 3% Predica 8% Rivero Group 16% Soler Group 15% Jun 30, 12 Dec 31, 11 Jun 30, 11 Number of shares issued Stock options Treasury stock Diluted number of shares

42 H Consolidated balance sheet Appendices Including the impact of IFRS 5 ASSETS June 30, Dec. 31, June 30, LIABILITIES June 30, Dec. 31, June 30, In million euros In million euros Fixed assets Capital and reserves Investment properties Capital Issue, merger & capital Buildings under refurbishment contrib.premiums Buildings in operation Consolidated reserves Other tangible fixed assets Consolidated net profit Intangible fixed assets Group shareholders' equity Long-term financial investments Minority interests Equity affiliates Financial instruments Non-current liabilities Deferred tax Financial debt Financial instruments Current assets Deferred tax liabilities Properties for sale Provisions for liabilities and charges Taxes due & other employee-related Inventories liabilities Rent due and other receivables Other receivables Current liabilities Prepaid expenses Short-term financial debt Financial instruments Financial instruments Cash & cash equivalents Security deposits Trade payables Taxes due & other employee-related Assets classified as held for sale liabilities Other liabilities Liabilities classified as held for sale 45.5 TOTAL ASSETS TOTAL LIABILITIES

43 H Offices Appendices Average lease length: 6.1 years Office lease schedule (end of contracts) % 100% 90% 80% 70% m % 17% 28% 38% 53% 53% 60% 50% 40% 30% 20% 10 4% 10% % 43

44 H Performance on the other divisions Appendices Hotels (3% of rents) Like-for-like rental income: +0.6% Average remaining length of leases: 6.0 years (firm) Logistics (3% of rents) Preliminary sales agreement Spain Assets for sale, including 1 logistics asset and 1 office building 49m asset value for office assets 44

45 H Development pipeline Appendices Project Location Delivery date Lettable area (sq.m) Invest. ( M) Already To be invested invested ( M) ( M) Est. yield (net) Pre-let Magistère (rue de Lisbonne) Paris 08 July % 100% Mercy Argenteau (bd Montmartre) Paris 09 July % 100% Newside (La Garenne Colombes) Haut de Seine (92) July % 0% Pointe Metro 2 (Gennevilliers) Haut de Seine (92) Dec % 0% Park Azur (Montrouge) Haut de Seine (92) July % 100% Velum (Lyon) Lyon March % 100% Beaugrenelle Paris 15 April % 72% Docks de Saint Ouen Seine St Denis (93) Jan % 0% Total offices & commercial % 58% Lançon Paris % na Saint Denis Pleyel Seine St Denis (93) Q % na Bagnolet Seine St Denis (93) Q % na Bordeaux Gironde (33) Q % na Total residential % na Anemasse Haute Savoie (74) % 100% Total healthcare % 100% GROUP % na 45

46 H Change in GAV Appendices (9) (402) Total GAV block Dec Value adjustment on 31, 2011 assets Acquisition and capex Disposals Other impacts Total GAV block June 30, 2012 Unit / Block diff. Total GAV unit June 30,

47 financial diary Appendices October 23 Third-quarter business 47

48 H Disclaimer Appendices This document does not constitute an offer to sell or a solicitation of an offer to buy GECINA securities and has not been independently verified. If you would like to obtain further information concerning GECINA, please refer to the public documents filed with the French securities regulator (Autorité des marchés financiers, AMF), which are also available on our internet site. This document may contain certain forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions on the date on which this document was published, they are by their very nature subject to various risks and uncertainties which may result in differences. However, GECINA assumes no obligation and makes no commitment to update or revise such statements. 48