Gecina, France鈥檚 largest listed property group, is forecasting a drop in net recurrent income in 2012 after reporting a 4.9% decline last year due to rising borrowing costs. Recurrent net income amounted fell to EUR 310 mln in 2011, but ahead of the company鈥檚 own guidance of a decline of 7%.
Gecina, France鈥檚 largest listed property group, is forecasting a drop in net recurrent income in 2012 after reporting a 4.9% decline last year due to rising borrowing costs. Recurrent net income amounted fell to EUR 310 mln in 2011, but ahead of the company鈥檚 own guidance of a decline of 7%.
鈥榁isibility for 2012 is still limited,鈥� the company said in a statement on Thursday. 鈥楾he banking and sovereign debt crisis is however expected to affect the earnings of businesses, which will continue rationalizing their real estate costs.鈥�
Net recurrent income is expected to fall 'with a trend that will at least be similar to that seen in 2011鈥�, the company added.
The French real estate investment trust will continue its asset rotation strategy, with targeted sales of EUR 1 bn this year, including EUR 300 mln of residential assets in addition to the EUR 444 mln of disposals already carried out in January.
Gecina is proposing a full-year dividend of EUR 4.4 per share.
Net debt totalled EUR 5 bn at year-end 2011, down 3% on a year earlier and reflecting an LTV of 42.6%. In 2011, Gecina raised EUR 1.1 bn of new financing including 43% in bonds, 34% of bank debt and 23% in mortgage borrowing as part of its strategy to diversify its financial resources.
