吉西纳（GFC FP）：通过巴黎中央商务区的增值收购重回投资游戏

France | REITsGecina Back in the investment game with an accretiveacquisition in Paris CBD Gecinaconfirmedithassignedapreliminaryagreementtoacquirea32,200sqm office complex on the edge of Paris CBD for €435m (incl. duties).This is something we had brought up in our note on March 20, 2025. Weestimate that the blended yield on the transaction would be at minimum c.6.2%although it’s a combination of an immediate yield of 5.4% on a fully let buildingand a 6.5% YOC on a vacant building which needs 12-15 months of lightrepositioning. The transaction of €435m (including transfer duties) consists of 2 tranches of an office complexlocated rue du Rocher and rue de Vienne in Paris 8th district, on the edge of the CBD. It includes a25,000sqm building currently vacant and a 7,200sqm building fully let. •First, the main building of 25,000sqm "Rocher", located 38-46 rue du Rocher in Paris 8th, closeto Saint-Lazare train station. It is the former headquarter of the French housing developerNexity and is currently vacant. Gecina estimates that it requires between €30-40m of capex toadd service offerings and repositioning and will be put back on the rental market after 12-15months. If we assume a total cost of c.€365m for this building, and a conservative €950/sqm/year headline rent, the yield on cost could be close to 6.5%. This is clearly attractive given thecurrent expected 4.9% YOC on the group’s “controlled & likely” development pipeline (and vs.5.5% for the 3 last committed projects announced), but also its cost of financing of c.3%. Wecalculate that it would be c.2.4% accretive on the 2027 EPRA EPS and would impact the LTVratio by 140bp to 35.6%.• Secondly, the smaller building of 7,200sqm "Hôtel Particulier", located 19-23 rue de Vienne,close to the first one, is currently fully let to several tenants for a remaining couple of years. Weunderstand that the average current rent is close to €810/sqm/year. Therefore, if we assume acost of c.€110m, the immediate yield is close to c.5.4% and the acquisition will be immediatelyaccretive by 0.5% to the 2025 EPRA EPS under our estimates. This would add another c.40bpto the LTV to 36.0%. We believe this transaction is clearly a positive for Gecina. First, the blended yield would be atminimum c.6.2% and will add at least €30m of rents per year by 2027 (assuming a reletting of"Rocher" by Q1-27). This, along with the 3 development projects of the group to be delivered in 2027(i.e. Quarter, Les Arches du Carreau and Mirabeau), which will bring above €60m of annual rents, willmore than offset the loss of €50m rents due to the departure of Engie from La Défense mid-2027. Stephanie Dossmann * | Equity Analyst+33 1 8665 6367 | sdossmann@jefferies.comPierre-Emmanuel Clouard, CFA * | EquityAnalyst+33 1 8665 6373 | pclouard@jefferies.comStephane Afonso * | Equity Analyst+33 1 8665 6327 | safonso@jefferies.com Company Description Gecina Gecina is a French company operating a Prime portfolio of Offices (79%), mainly located in Paris. Gecina also has a residential portfolio (21%) locatedin Paris and essentially made of traditional apartments but also student housing. As of 30 June 2024, Gecina's asset portfolio was valued at €17.1bn.The company has an average occupancy rate of 93.9%, with the top office tenants being primarily from the industrial sector (37%), consulting &services (19%), and technology sectors (12%), with Engie (7%) being the largest tenant. Company Valuation/Risks Gecina Our price target is a blended average of three valuation methodologies: a DCF calculating a terminal value by using an exit yield in year 10 (WACC6.6%, Beta 0.9, CoE 9.6%, Exit yield 4.2%), a DDM assuming a terminal value equal to NAV 10 years out, and an Adjusted NAV. Downside risks: Lower-than-expected GDP growth leader to lower rental growth, yield expansion, asset disposals reflecting price discounts. Analyst Certification: I, Stephanie Dossmann, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report. I, Pierre-Emmanuel Clouard, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies)and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations orviews expressed in this research report. I, Stephane Afonso, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report. Regist