Gecina Raises 2013 Profit Forecast After Cutting Debt Costs
Gecina SA (GFC), Paris’s largest publicly traded office landlord, raised its full-year profit forecast and said earnings increased in the first nine months as lower financing costs offset rent lost from property sales.
Pretax profit excluding changes in asset values and other items, known as net recurrent income, climbed 2.1 percent to 248.5 million euros ($342 million), the company said in a statement today. Gross rental income fell 2.2 percent to 440.3 million euros while occupancy increased to 95.2 percent from 93.6 percent.
“Gecina is now forecasting a slight increase in its net recurrent income for 2013,” the company said. It said in July that the profit measure would be little changed.
Gecina, based in Paris, has been restructuring its holdings to help cut debt. Net financial expenses fell 10.8 percent as borrowings dropped, Gecina said. The company aims for a portfolio that’s 70 percent offices and 30 percent other types of real estate.
Gecina said it sold 175 million euros of residential assets through September. It plans to sell the Beaugrenelle shopping center, which opened today, following 10 years of “complex and challenging” development work. Hammerson Plc, based in London, is considering bidding for the shopping center, Chief Executive Officer David Atkins said in an interview last month.
Gecina was little changed in Paris trading at 98.44 euros as of 9:14 a.m. The stock has climbed 16 percent this year, giving the company a market value of 6.18 billion euros.
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