Gecina: Invest Securities still a buyer

(CercleFinance.com) - Invest Securities confirms its buy recommendation on the stock and its target price of E118 following the group's announcement of the sale of student residences.


Gecina has announced the sale of its student residences for E539m, excluding duties, corresponding to a net lost yield of 3.86% and a capital gain of around E100m.

The transaction is expected to be slightly accretive to NAV NTA (+0.8%), neutral to NAV/share in the medium term, and slightly dilutive in the short term due to the current low average cost of debt (1.5% at end-June 2024), Invest Securities says.

The transaction will enable Gecina to reduce its already measured debt (the pro-forma EPRA, excluding duties LTV at 30 June 2024 would fall by 200bp to 35.8%), making it easier to acquire assets at a discount, the broker adds.


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