Icade Sa · EURONEXT:ICAD
Icade Sa — Icade Sa Ord — FY 2024 Earnings Presentation
61 slides from Icade Sa's earnings presentation, Feb 19, 2025
Slide 1: 2024 Full Year Results
2024 Full Year Results Wednesday, February 19, 2025 PULSE (Saint-Denis, Seine-Saint-Denis)
Slide 2: Disclaimer
DISCLAIMER This document (the “Presentation”) may contain information, opinions and certain forward looking statements that reflect Icade’s management’s current views and expectations with respect to future events and financial and operational performance of the Group. Because these forward looking
Slide 3: Agenda
A G E N DA FY 2024 in a nutshell 1. FY 2024 Operational performance 2. FY 2024 Financial results 3. Debt management 4. FY 2025 outlook Appendices 2024 Full Year Results I Wednesday, February 19, 2025 3
Slide 4: FY 2024 in a nutshell: Key messages
FY 2024 in a nutshell Key messages Group NCCF 2024: €3.98 per share, above guidance Resilient Property Investment division Review of the Development portfolio and early positive signals for the second half of the year Concrete steps one year after announcement of ReShapE strategic plan Carbon reduct
Slide 5: FY 2024 in a nutshell
FY 2024 in a nutshell FY 2024 in a nutshell NCCF EPRA NAV Debt management Group NCCF NCCF NAV NTA LTV incl. duties Net debt/EBITDA(2) from strategic operations(1) per share ICADE GROUP €301.8m €223.1m €60.1 36.5% 10.0x -4.1% vs 2023 -10.6% vs 12/31/2023 vs 33.5% (12/31/2023) vs 7.0x (12/31/2023) (€3
Slide 6: FY 2024 Operational Performance
FY 2024 1. OPERATIONAL PERFORMANCE PONT DE FLANDRE (Paris, 19th district) 2024 Full Year Results I Wednesday, February 19, 2025 6
Slide 7: Property Investment
1.1. PROPERTY INVESTMENT HELSINKI-IÉNA (Paris Orly-Rungis Business Park , Val-de-Marne) 2024 Full Year Results I Wednesday, February 19, 2025 7
Slide 8: Renewed interest in affordable centralised locations
1.1. Property Investment Renewed interest in affordable centralised locations Main drivers when choosing location Good centralities • 89% of companies consider easy access to public transportations as criteria #1 when choosing a new location(1) ESG best • ESG-friendly building is top #1 concern for
Slide 9: Good commercial momentum in FY 2024
1.1. Property Investment Good commercial momentum in FY 2024 c.133,000 sq.m €35m 6.4 years 84.7% WALB related to leases signed or signed or renewed Annual headline rental income Financial occupancy rate renewed in 2024 Solid performance from Dynamic activity in Opportunistic approach on well-positio
Slide 10: Pulse – Pre-let agreement with Seine-Saint-Denis Departmental Council
1.1. Property Investment Pulse – Pre-let agreement with Seine-Saint-Denis Departmental Council Signing of a pre-let agreement for the entire building: c.29,000 sq.m Lease for a 12-year term Fast relet: 3 months after departure of the Organising Committee for the Paris 2024 Olympic Games c.2,700 empl
Slide 11: Additional rents from deliveries and selective pipeline
1.1. Property Investment Additional rents coming from deliveries and selective pipeline €5.8m annual headline rent €45m potential annual headline rent on started projects secured from deliveries in 2024 in the next three years €872m started pipeline / €286m remaining capex COLOGNE Limited developmen
Slide 12: Limited volume of disposals, core assets sold above appraised value
1.1. Property Investment Limited volume of disposals, with core assets sold above appraised value 2024 2025 Sales signed for a total of €82m(1) Termination of public-private partnership with Nancy Regional University Hospital (CHRU)(2) Average yield c.5.8% €55m Above NAV as of June 2024 At NAV Quai
Slide 13: Property Development
1.2. PROPERTY DEVELOPMENT TIME (Saint-Denis, Seine-Saint-Denis) 2024 Full Year Results I Wednesday, February 19, 2025 13
Slide 14: Positive signals in residential activity
1.2. Property Development Positive signals in residential activity Stable residential activity in 2024… 5,300 units, +1% YoY €1,308m, -3% YoY Order volume Order value … supported by individual orders… … despite a slowdown in bulk orders 17% 7% vs -3.7%(1) (market) -7% -9% Volume 2024 vs 2023 Value 2
Slide 15: Residential backlog slightly up at €1.6bn
1.2. Property Development Residential backlog slightly up at €1.6bn, securing revenues in 2025 QUETIGNY RIVE CROMOIS (Dijon, Côte-d'Or) HOYA (Dunkerque, Nord) TIME (Saint-Denis, Seine-Saint-Denis) LA PLATEFORME (Marseille, Bouches-du-Rhône) 2024 Full Year Results I Wednesday, February 19, 2025 15
Slide 16: ReShapE well on track
1.3. RESHAPE WELL ON TRACK HYFIVE (La Défense, Hauts-de-Seine) 2024 Full Year Results I Wednesday, February 19, 2025 16
Slide 17: First concrete developments on to-be-repositioned assets
1.3. ReShapE well on track ReShapE – Adapt office portfolio to new demands First concrete developments on to-be-repositioned assets Portfolio review(1) Office-to-residential transformation projects IFRS annualized rent: €37.9m, vs €53.1m as of 12/31/2023 Financial occupancy rate: 64.6%, vs 71.4% as
Slide 18: New partnership on student housing
1.3. ReShapE well on track ReShapE – Accelerate diversification New partnership on student housing to increase value creation • Target: 500-1,000 beds per year • Conversion of to-be-repositioned offices • Signature of a Memorandum of Develo Understanding relating to a pm • Excellent territorial netw
Slide 19: On-going diversification with Data Center projects
1.3. ReShapE well on track ReShapE – Accelerate diversification On-going diversification with Data Center projects 1 Equinix Data Center (Portes de Paris Business Park) 2 Hyperscale Data Center (Paris Orly-Rungis Business Park) Key figures Key figures • Investment: c.€36m Power secured • Power suppl
Slide 20: Committed to building mixed-use districts
1.3. ReShapE well on track ReShapE – Develop and invest in 2050 city A holistic player committed to building mixed-use districts Publication of a white paper on the Signing of a binding agreement(1) with Casino potential of city fringes Group to buy a property portfolio for €50m Tackle key societal
Slide 21: Results in line with 1.5°C pathway approved by SBTi
1.3. ReShapE well on track ReShapE – Develop and invest in 2050 city Results in line with the Group’s 1.5°C pathway, approved by the SBTi Reduction in GHG(1) emissions supported by each division Sharp drop in GHG emissions(2) in 2024 Target reduction in GHG emissions between 2019 and 2030 Result 201
Slide 22: FY 2024 Financial Results
FY 2024 FINANCIAL 2. RESULTS ORIGINE (Nanterre, Hauts-de-Seine) 2024 Full Year Results I Wednesday, February 19, 2025 22
Slide 23: NCCF 2024: €3.98/share including €2.94 on strategic operations
2. FY 2024 Financial Results NCCF 2024: €3.98/share including €2.94 on strategic operations (In €m) Above guidance 350.6 €[3.78-3.93]/share (€4.62/share) 301.8 78.7 (€3.98/share) 232.6 30.1 223.1 (€3.07/share) (€2.94/share) (118.0) (36.2) (3.4) Total NCCF 2023 NCCF from NCCF from strategic Property
Slide 24: Breakdown of EPRA NTA in 2024
2. FY 2024 Financial Results Breakdown of EPRA NTA in 2024 €5,098m NTA €4,557m -10.6% (per share) 3.98 67.2 64.9 60.1 (in € per share) (5.78) (0.48) (4.84) EPRA NTA Group Change Other EPRA NTA 2023 dividend EPRA NTA 12/31/2023 NCCF in FV of Property 12/31/2024 paid in 2024 12/31/2024 Investment asse
Slide 25: Property Investment
2.1. PROPERTY INVESTMENT PULSE (Saint-Denis, Seine-Saint-Denis) 2024 Full Year Results I Wednesday, February 19, 2025 25
Slide 26: Growth supported by indexation and well-positioned offices
2.1. Property Investment Growth supported by indexation and well-positioned offices (In €m) +€5.2m (+1.4%) 363.9 14.6 2.2 1.0 369.2 +5.3% (0.7) (11.9) +4.6% LFL change LFL change Rental income 2023 Leasing activity and indexation - WP Leasing activity and indexation - TBR Leasing activity and indexa
Slide 27: Solid Property Investment NCCF in FY 2024
2.1. Property Investment Solid Property Investment NCCF in FY 2024 (In €m) +€30.1m (+13.1%) 17.1 258.9 228.8 15.1 -2.1 NCCF from Property investment 2023 Net rental income Financial result Other NCCF from Property investment 2024 NCCF from Property Net rental Financial result Other NCCF from Propert
Slide 28: Decrease in fair value of Property Investment portfolio
2.1. Property Investment Decrease in fair value of Property Investment portfolio (In €m, 100% + Group share of JVs basis / excluding duties) -6.6% on a reported basis 6,847 178.1 (148.6) 6,398 • Property Investment portfolio down (478.2) -7.1% over 2024 on a LfL basis • EPRA Net Initial Yield: 5.2%
Slide 29: Slower decline in asset valuations
2.1. Property Investment Slower decline in asset valuations Change in half-year value (In €m, 100% + Group share of JVs basis / excluding duties, on a like-for-like basis) Well-positioned offices Light industrial Total H1 23 H2 23 H1 24 H2 24 H1 23 H2 23 H1 24 H2 24 H1 23 H2 23 H1 24 H2 24 +0.7% 0,7
Slide 30: Property Development
2.2. PROPERTY DEVELOPMENT QUETIGNY RIVE CROMOIS (Dijon, Côte-d’Or) 2024 Full Year Results I Wednesday, February 19, 2025 30
Slide 31: Decrease in NCCF driven by impairment losses
2.2. Property Development Decrease in NCCF driven by impairment losses (In €m) 8.2 6.2 8.2 4.0 (9.1) (9.6) (34.0) (30.0) NCCF from Property Volume effect Operating costs Financial Other (1) NCCF from Property Depreciations due NCCF from Property Development impact Result Development 2024 to portfoli
Slide 32: Tight management of working capital
2.2. Property Development Tight management of working capital Working capital requirement(1) (In €m) 571 • Rigorous management of operational drivers 485 • Decrease in land holding operations • Monitoring the collection of receivables 44% • Selective policy in launch of new operations with a - 302 3
Slide 33: Debt Management
DEBT 3. MANAGEMENT PARIS ORLY-RUNGIS BUSINESS PARK (Val-de-Marne) 2024 Full Year Results I Wednesday, February 19, 2025 33
Slide 34: Optimised cash and debt management
3. Debt management Optimised cash and debt management Strong improvement of current financial result Tight cost of debt management (In €m) 1.52% 92% 2.2 39.2 Average cost of debt 50.4 Hedged in 2025 (vs 1.60% as of 12/31/2023) 11.1 11.5 13.2 Optimised cash management (49.2) €1.0bn 3.90% Current Cost
Slide 35: Proactive balance sheet management
3. Debt management Proactive balance sheet management Strong liquidity Debt maturity management €1.1bn As of December 31, 2024, in €bn(2) Net cash position €350m Tender offer on short- term bonds 2025 & 0.88 2026 0.66 €1.5bn 0.60 0.60 0.65 Unused committed revolving credit facilities(1) 0.43 0.29 0.
Slide 36: Debt ratios reflecting depreciations and limited disposals
3. Debt management Debt ratios reflecting depreciations and limited disposals in 2024 Loan-To-Value Net debt-to-EBITDA(1) In €bn 3,5 3.1 12,0 36,5% 36.5% 3.0 3,0 10,0 33,5% 33.5% 2,5 2,0 10.0x 8,0 6,0 1,5 7.0x 4,0 1,0 0.4 0.3 2,0 0,5 20,0% 0,0 0,0 12/31/2023 12/31/2024 12/31/2023 12/31/2024 LTV incl
Slide 37: Healthcare disposal underway
3. Debt management Healthcare disposal underway Strategy unchanged to sell Icade’s entire remaining stake in the Healthcare business IHE Stable asset valuation c.-1.7%(1) in 2024 Icade share of NAV Icade’s exposure €0.8bn €0.5bn Recent progress Next steps • Signing of a share swap agreement with Pre
Slide 38: FY 2025 Outlook
FY 2025 OUTLOOK 4. 29-33 CHAMPS-ELYSÉES (Paris, Ile-de-France) 2024 Full Year Results I Wednesday, February 19, 2025 38
Slide 39: 2024 dividend
4. FY 2025 outlook 2024 dividend 2024 Dividend(1) €4.31 per share including €2.54 due following the completion of stage 1 of Healthcare disposal in 2023 2024 dividend paid in cash in two instalments: • €2.16 per share to be paid on March 6, 2025 • €2.15 per share to be paid on July 3, 2025 2024 Full
Slide 40: 2025 Guidance
4. FY 2025 outlook 2025 Guidance 2025 Guidance Group NCCF per share of €[3.40 – 3.60] Of which c. €0.67/share from non-strategic operations, excluding impact of disposals(1) (1) On the hypothetical basis of a stable ownership of Præmia Healthcare (21.7% after the closing of c.€30m swap of shares wit
Slide 41: Financial agenda
4. FY 2025 outlook Financial agenda Next key events Ex dividend date on March 4, 2025 2024 Interim dividend Payment on March 6, 2025 Q1 2025 results April 16, 2025 2025 General shareholders' meeting May 13, 2025 2024 Full Year Results I Wednesday, February 19, 2025 41
Slide 42: Appendices
APPENDICES DESTINATION GAVY (Saint-Nazaire, Loire-Atlantique) 2024 Full Year Results I Wednesday, February 19, 2025 42
Slide 43: Lagging leasing and investment markets in France
Appendices Lagging leasing and investment markets in France Leasing market Investment market Paris region Investment volume at €15bn (stable vs 2023) Decrease in take-up with 1.75m sq.m (-11% YoY) and a few Large European markets are recovering(2) transactions > 5,000 sq.m (49 in 2024 vs 57 in 2023)
Slide 44: Weak leasing market, rising vacancy and supply
Appendices Weak leasing market, rising vacancy and supply 1 Decreasing take-up in 2024 • Take-up volume (1,75m sq.m, -11% YoY) slowed down due to fewer large deals (546,000 sq.m, -13% YoY) • Paris is down by -9% (CBD by -21%) vs La Défense +60% and 1st Ring +8% Take-up, immediate supply and vacancy
Slide 45: A highly polarized market
Appendices A highly polarized market Q4-2024 Paris CBD La Défense Western Crescent Inner Ring Outer Ring Physical vacancy 3.4% ▲ 14.3% ▼ 18.8% ▲ 19.7% ▲ 5.7% ▲ rate +110 bps -50 bps +405 bps +360 bps +40 bps (vs a year earlier) Take-up 348,700 sq.m 211,200 sq.m 283,600 sq.m 289,100 sq.m 143,800 sq.m
Slide 46: Investors remain highly selective despite lower financing costs
Appendices Investors remain highly selective despite lower financing costs Investment decrease stopped Prime offices, logistics and hotels lead the market • €15bn invested in 2024 in France (stable YoY) vs €30bn in 2022 • Offices accounted for 33% of investments in 2024 (-27% yoy) • Large deals take
Slide 47: Prime yields are stabilizing on core markets
Appendices Prime yields are stabilizing on core markets The pressure on offices’ prime yield is decreasing Foreign investors are back • Prime yields for Paris CBD offices are now stabilized around 4%-4.25% but • Domestic players are up to 56% in Q4 2024 (vs 79% last year) and pan upward pressure out
Slide 48: Positive time-lag effect of indexation on rents
Appendices Positive time-lag effect of indexation on rents Commercial portfolio index split – December 2024 (in % of headline rent) c.100% ICC 10% Other indices 8% leases linked to indices with a strong inflation component ILAT 82% Evolution of indices(1) (in %) 3.8% +4.7% +5.1% 3.3% Indexation effe
Slide 49: A diversified portfolio, with assets located in good hubs
Appendices A diversified portfolio, with assets located in good hubs La Défense 238 €6.4bn 1.8m 1st ring Portes de Paris Business Park(1) assets GAV sq.m 12/31/2024 OFFICE Breakdown by asset type GAV % GAV OFFICE TV STUDIO DATA CENTER Offices €5.2bn 82% Nanterre Light industrial €0.7bn 12% Regional
Slide 50: A selective positioning in the main regional cities
Appendices A selective positioning in the main regional cities NEXT LAFAYETTE Lyon, Rhône Lyon, Rhône Offices Focus Regions – all assets 11% 220,000 sq.m €0.7bn (1) of the overall LA FABRIQUE Lyon SADI CARNOT portfolio Marseille, Bouches-du-Rhône Bordeaux, Gironde Bordeaux 69,653 sq.m 37,657 sq.m Ma
Slide 51: Lease expiries schedule
Appendices Lease expiries schedule Annualised IFRS rental income (In €m, 100% + Group share of JVs basis) Other €6m 100,0 89 90,0 80,0 70,0 60,0 56 56 Well-positioned offices 46 50,0 Light industrial €56m €23m 40,0 41 €14m Lease expiry in 2025 30,0 27 20,0 18 10,0 6 5 7 0 0,0 To-be-repositioned offi
Slide 52: Diversified and selective development pipeline
Appendices Diversified and selective development pipeline as of December 31, 2024 Type Estimated date Floor area Rental income Cost Remaining Project name Location of works Property type of completion (sq.m) (€m) YoC(1) (€m) capex (€m) Pre-let EDENN Nanterre Construction Office Q1 2026 30,587 253 81
Slide 53: Property Investment portfolio
Appendices Property Investment portfolio 12/31/2024 12/31/2023 Portfolio value (100% + Group share of JVs basis, excl. duties) €6.4bn €6.8bn Portfolio value (Group share, excl. duties) €6.1bn €6.5bn Average Icade yield(1)(2) 7.9% 7.5% Total floor area (in millions of sq.m) 1.83 1.87 WALB 3.4 years 3
Slide 54: A continuous decline in market momentum
Appendices A continuous decline in market momentum Housing starts and building permits in France Housing stock, net orders and average time on market In housing units per year In housing units per year Source: ECLN Source: FPI Change 12 months rolling Change 180 000 25 600 000 12.2024 vs 160 000 -15
Slide 55: Construction costs and selling prices stabilise
Appendices After sharp rises, construction costs and selling prices stabilise Construction cost and price indices in Q3 2024 Sale prices and stock of new housing units available for sale Index rebased to 100 in 2021 Price incl. taxes in €/sq.m excl. notarial fees and other costs Stock of new housing
Slide 56: Breakdown of orders by type of customers
Appendices Breakdown of orders by type of customers +3.5 pps +7.4 pps 18.2% 21.7% 27.7% 35.1% 63% of institutional 14.8% 12/31/2023 12/31/2024 investors (vs. 67% in 15.4% FY 2023) +0.6 pps 39.3% 27.8% -11.5 pps Social housing institutional investors (ESH) – Social landlords Institutional investors I
Slide 57: EPRA NRV, NTA & NDV
Appendices EPRA NRV, NTA & NDV (In € per share) 64.5 0.8 4.0 0.5 64.5 60.1 (4.9) (0.4) In € per Chg. vs. In €m share Dec. 2023(1) EPRA NDV 4,896 64.5 (12.0%) EPRA NTA 4,557 60.1 (10.6%) EPRA NRV 4,893 64.5 (10.2%) EPRA Transfer tax Impact Other EPRA Impact Other EPRA NDV optimisation of liabilities
Slide 58: Consolidated P&L indicators
Appendices Consolidated P&L indicators in €m 12/31/2024 12/31/2023 Change • Revenue in markets under pressure: -5.0% YoY, reflecting positive contribution from Property Total IFRS revenue 1,451.5 1,527.7 (5.0%) Investment division, offset by Property Development performance EBITDA 239.0 280.4 (14.8%
Slide 59: P&L indicators of Property Investment division
Appendices P&L indicators of Property Investment division On a 100% basis / in €m 12/31/2024 12/31/2023 Change LfL change Gross rental income 369.2 363.9 +1.4% +2.5% Net to gross rental income ratio 94.0% 91.2% +2.8 pps Financial result (30.2) (47.3) (36.1%) In Group share / in €m NCCF Group share 2
Slide 60: P&L indicators of Property Development division
Appendices P&L indicators of Property Development division On a 100% + Group share of JVs basis / in €m 12/31/2024 12/31/2023 Change Economic revenue 1,214.8 1,293.9 (6.1%) Property margin rate 8.3% 13.2% (4.9)pps Current economic operating profit/(loss) (20.1) 46.0 NA Current economic operating mar
Slide 61: Breakdown of Icade's CO2 emissions in 2024
Appendices Breakdown of Icade’s CO2 emissions in 2024 On the SBTi commitment perimeter Investment – Operation Corporate 5% 1% Investment – Construction 3% -29% Property Development – Construction vs. 2023 52% Property Development – Energy(1) 19% Property Development – Replacement of building materia