Gecina: Business at September, 30, 2009

Regulatory News:

Gecina (Paris:GFC):

1 - Key figures

Unaudited figures

See details in appendix

2 - Business

2.1 - Gross rental income

^(*) Gecimed, consolidated on an equity basis until June 30, 2009, is now fully consolidated.

Revenues climbed to 487.9 million euros for the first nine months of the year, up 2.7% compared with the same period the previous year. On a comparable basis, i.e. notably excluding assets sold off, rental income growth comes out at 4.9%, identical to the increase recorded over the first half of the year. With the exception of the Logistics business, marked by the higher vacancy rate, all of the Group's segments have seen growth in rental income thanks to the positive indexing effect over the period, combined with the good level of relettings.

The new assets brought into the scope generated 23.1 million euros in additional rent, coming on top of the 3.4 million euros contributed by redeveloped assets. However, this positive effect has been reduced to a great extent by the impact of disposals carried out over the last 12 months, for a total of 32 million euros.

The office business accounts for 59% of the Group's rental income, while residential properties, in view of disposals, now represent 30%, compared with 32% at the end of 2008. Gecimed’s rental income is now recognized since the subsidiary is fully consolidated.

Rental margin

The Group's margin is up to 91.5%, compared with 90.7% at September 30, 2008.

This change primarily reflects a significant improvement in the margin on the office division, up from 93.5% to 94.8%. The margin on the residential business has remained at 83.7%, while the Healthcare and Hotel divisions have posted high margins. However, the Logistics business has seen its performance decline as a result of the increase in the vacancy rate (cf. below).

Occupancy rate

At September 30, 2009, the office division's occupancy rate was 95.7%, higher than at September 30, 2008 (94.8%), as well as compared with the level at June 30 this year (95.3%). The occupancy rate on residential remains high (98.1%), since this asset class is not particularly sensitive to the economic environment. The healthcare and hotel activities are benefiting from a maximum rate of 100%. Only the logistics division, which is closely linked to the macroeconomic environment, has seen a drop in the occupancy rate to 78.1%, with vacant premises representing 200,000 sq.m at September 30, 2009. In this way, the Group’s physical occupancy rate comes out at 91.9%, with a financial occupancy rate of 95.8%.

2.2 - Developments for each business line

Offices

Rental income came to 287 million euros, up 3.7% on a current basis and 6.7% on a constant basis. In addition to the positive impact of indexing, the Group has benefited from a high occupancy rate, reflecting the quality of its assets and the service provided to clients.

Over the first nine months of the year, the rental activity covered nearly 57,000 sq.m, including 9,600 sq.m during the third quarter, with:

17,000 sq.m let to new tenants;

10,000 sq.m of leases renewed, 8% higher than average under previous leases - although excluding one asset in Paris on which the new rent, brought into line with the market level at the start of the year, is 30% lower than the previous rent;

30,000 sq.m split between nine redeveloped or newly leased assets, including close to 3,000 sq.m in the third quarter thanks primarily to the signing of two leases on the Central Office building (Rue Réaumur, Paris 2^nd), which is now fully leased.

Furthermore, the leases signed at September 30 that will take effect subsequently concern some 14,000 sq.m.

Residential

In the residential business, rental income totaled 146.9 million euros, down 5.1% on a current basis factoring in the disposals carried out at the end of 2008 and in 2009. However, growth comes out at 3.4% on a comparable basis due to (i) indexing, although its impact is tending to lessen in view of the indexes published in July and October, (ii) the level of rents on reletting, 7.4% higher than the rents previously applied for outgoing tenants. In this way, 1,200 apartments were relet, representing nearly 76,000 sq.m.

In general, the Residential business is characterized by a very high occupancy rate (98.1% at September 30, 2009), a moderate turnover rate (13.7% at September 30, 2009) and short reletting times (33 days for the first nine months of the year).

On the student residence segment, the occupancy rate was over 99% at the end of September. The new Lille residence (190 apartments) was delivered at the beginning of August and let in full before it opened.

Logistics, Healthcare and Hotels

Rental income on other segments totaled 54 million euros, with 28 million euros on logistics,

15 million euros on hotels and, for the third quarter alone, 11 million euros on healthcare, with Gecimed now fully consolidated.

The logistics business has been marked by the drop in the occupancy rate to 78.1% at September 30, 2009, compared with 88.8% at September 30, 2008. This represents the primary factor behind the 2.2 million euro drop in rental income from one year to the next. Lessees are actively being looked for and negotiations are underway in order to reduce the level of vacant premises as quickly as possible.

Gecimed, benefiting from a maximum occupancy rate, has achieved remarkable revenue growth on a comparative basis (+11.1%). Since the start of the year, Gecimed has brought into service four facilities (three dependent elderly facilities and one retirement home), operated by the Medica France Group, representing a total of 310 beds, covered by closed leases for around 12 years.

Lastly, the hotel business posted an 11.3% increase in rental income at September 30, 2009. The extension of the Val d’Isère Club Med complex (creation of a new building), which will generate additional rental income based on a yield of 7%, has led to a new 12-year lease being signed, which will come into effect by the end of 2009.

3 - Disposals and investments

Disposals

Disposals over the first nine months of the year concerned 205,000 sq.m and totaled 512 million euros, with the following breakdown:

371 million relating to office buildings

139 million of residential assets, in block (36 million) and unit (103 million)

2 million euros in other assets.

On the whole, sale prices were 3.2% lower than the appraised values (unit) at December 31, 2008 - a lower discount than for disposals over the first half of the year - with proceeds from disposals coming in slightly negative (-5.3 million euros).

With the preliminary sales agreements signed at September 30, and the very advanced stage reached in a certain number of negotiations, the Group’s disposals target has been raised to more than 700 million euros over 2009.

Investments

During the first nine months of the year, the Group invested 159 million euros (excluding maintenance) in various projects, focused primarily on the logistics division, with the continued development of Lauwin Planque and Moussy-le-Neuf (51 million euros), and the healthcare division, with the building of the Le Havre private hospital (28 million euros).

4 – Earnings and outlook

Operating results

The Group is reporting very good performances at the end of September 2009: EBITDA (before disposals) came to 388.9 million euros, up 4.6% compared with September 30, 2008, thanks to the increase in net rental and service income, combined with lower salaries and fringe benefits and stable management costs.

The significant reduction in financial expenses from one year to the next (-26%) essentially reflects a reduction in the cost of debt, down from 4.45% at September 30, 2008 to 3.47%, with the Group's hedging strategy enabling it to capitalize on the drop in rates over the period (93% of debt hedged at the end of September 2009).

As a result, recurrent income has seen significant growth, surging +25.8% to 277.4 million euros, with cash flow before disposals and after tax climbing +22.5% to 275.6 million euros.

Outlook

The earnings recorded at September 30, higher than expected, are satisfactory, following on from the good performances achieved over the first half of the year. In a difficult economic climate, Gecina has been able to count on the quality and diversity of its asset portfolio, as well as its effective management, built around close ties with its clients.

The Group is expected to meet the targets set for 2009 without any difficulty: 2% growth in rental income, 3.5% in EBITDA and 10% in cash flow before disposals and after tax.

The Group's management team is delighted with the reduction in net debt between June 30 (5,283 million euros) and September 30, 2009 (5,033 million euros). Moreover, in view of progress made with the disposal program, the target initially set for the year of between 600 and 700 million euros has been raised to more than 700 million euros. At the end of 2009, Gecina is therefore expected to be able to bring its net debt down, meet its banking covenants and cover the redemption of the February 2010 bonds (533 million).

5 – Appointments of Board members

The Board of Directors, chaired by Mr. Joaquín Rivero, has appointed two new directors.

The Board of Directors acknowledged and accepted the resignations of Messrs Joaquín Fernandèz and Jesùs Perèz from their positions as directors. As recommended by the Appointments and Compensation Committee, they have been replaced by Mr. Antonio Trueba and Mr. Arcadi Calzada, also representing Metrovacesa, for the period left to run on their predecessors’ terms of office, i.e. through to the general meeting convened to approve the annual financial statements for 2010.

Mr. Trueba, a 67-year old Spanish national, is an engineer by training; his career has been spent primarily in the real estate sector, and more specifically within Inmobiliaria Urbis, which he chaired from 1994 to 2006. Mr. Trueba is currently Chairman of Solaris, a Board member at the World Trade Centers Association, and Chairman of the Madrid and Seville World Trade Centers.

Mr. Calzada, a 63-year old Spanish national, has spent his career in the banking sector, including as Chairman of the Gerona savings bank (1996-2009), as well as in the political world, and more specifically as Vice President of the Catalonia Parliament (1985-1996). Since July 2009, he has been heading up the Prince of Girona Foundation, in addition to being a member of numerous foundations in the Catalonia Region.

Gecina, a leading European real estate group

A French real estate investment trust (Société d'Investissement Immobilier Cotée, SIIC) listed on Euronext Paris, Gecina owns and manages a portfolio valued at more than 12 billion euros at June 30, 2009, primarily made up of office and residential properties located in Paris and the Paris Region. Over the last few years, Gecina has diversified into new segments: hotels, healthcare, logistics and student residences.

The Gecina foundation

In line with its commitment to the community, Gecina has created a company foundation, which is focused more specifically on protecting the environment and promoting accessibility for disabled people.

www.gecina.fr

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.

APPENDICES

Condensed consolidated income statement

Cash flow

Data per share