Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Day (November 2022)
84 slides from Icade Sa's investor day presentation, Nov 28, 2022
Slide 1: 2022 Investor Day
DESIGNING, BUILDING, MANAGING AND INVESTING in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected 2022 INVESTOR DAY with a reduced carbon footprint. Desirable places to live and work. This is our ambition. This is our goal. Monday, November 28, 2022 This is ou
Slide 2: Agenda
Introduction 2019-2022 Plan: Where are we? 1 Office Property Investment Office market & development pipeline update 2 Healthcare Property Investment Healthcare investment market & opportunities AGENDA 3 Property Development Residential market and roadmap update 4 Icade’s low-carbon strategy Update o
Slide 3: Chairman's opening
LATÉCOÈRE Toulouse, Haute-Garonne Chairman’s opening INVESTOR DAY MONDAY, NOVEMBER 28, 2022 3
Slide 4: Icade is once again very resilient in a complex 2022 year
INTRODUCTION CHAIRMAN’S OPENING Icade is once again very resilient in a complex 2022 year After a solid 2021, Icade delivered strong 9M results and operational performances, backed by solid fundamentals for each of our markets Icade is well on track to deliver the FY 2022 commitments The management
Slide 5: Introduction: 2019-2022 Plan: Where are we?
EDENN & NANTERRE-PRÉFECTURE SITE Hauts-de-Seine Introduction 2019-2022 Plan: Where are we? INVESTOR DAY MONDAY, NOVEMBER 28, 2022 5
Slide 6: Introduction: What was the plan?
INTRODUCTION: 2019-2022 PLAN: WHERE ARE WE? INTRODUCTION: WHAT WAS THE PLAN? After a successful 2016-2019 roadmap delivered 1 year ahead of schedule… … Icade announced a new strategic plan for 2019-2022 Icade share price performance vs. EPRA Europe index from January 2016 to June 2018 Icade +54% A P
Slide 7: 2019-2022 plan: Office Property division remained very active
INTRODUCTION: 2019-2022 PLAN: WHERE ARE WE? 2019-2022 PLAN: WHERE ARE WE? … In this context, the Office Property division remained very active 2018 2019 2020 2021 2022 Covid-19 • Acceleration • Reinvestment • Stability • Slowdown • Disposal plan • Increased selectivity of disposals of proceeds of th
Slide 8: Healthcare Property division: we delivered the growth
INTRODUCTION: 2019-2022 PLAN: WHERE ARE WE? 2019-2022 PLAN: WHERE ARE WE? Healthcare Property division: we delivered the growth 2018 2019 2020 2021 2022 Covid-19 • Nursing home • International • Reinforcing the attractiveness of the asset class… • Increased selectivity diversification diversificatio
Slide 9: Property Development division: sound fundamentals and agility
INTRODUCTION: 2019-2022 PLAN: WHERE ARE WE? 2019-2022 PLAN: WHERE ARE WE? Property Development division: sound fundamentals and agility 2018 2019 2020 2021 2022 Covid-19 • Limited exposure: 10% of equity • Shutdown period during 3 months • Measures to absorb the atypical year, atypical figures ris
Slide 10: Icade remained operationally very active
INTRODUCTION: 2019-2022 PLAN: WHERE ARE WE? 2019-2022 PLAN: WHERE ARE WE? Icade remained operationally very active Icade was agile to adapt in this challenging environment • Adapting the strategy when necessary • Thanks to the solid expertise of the teams and the robustness of our activities Sound f
Slide 11: Office Property Investment: office market & development pipeline update
NEXT Lyon (Rhône) 1. Office Property Investment: office market & development pipeline update INVESTOR DAY MONDAY, NOVEMBER 28, 2022 11
Slide 12: Market under normalisation & favourable to high-quality assets
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE MARKET UNDER NORMALISATION & FAVOURABLE TO HIGH-QUALITY ASSETS 2022e take-up closing the gap Large transactions are back with the 10 year average The Paris Region Office Market 2.1m sq.m ≈55 42% Take-up is normalising 2022 ex
Slide 13: Division priorities: occupancy rate and tenant loyalty
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE OFFICE PROPERTY INVESTMENT DIVISION PRIORITIES: OCCUPANCY RATE AND TENANT LOYALTY Signatures of new leases 78,000 sq.m signed in 2022 … of which c.50% effective from Q4 2022 on • Ability to attract new of which 40% signed in
Slide 14: Rental growth in Orly-Rungis business park
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE RENTAL GROWTH IN ORLY-RUNGIS BUSINESS PARK Dynamic leasing activity in Rungis… c.40,000 sq.m (out of which 26,000 sq.m in Q3 alone) total floor area of leases signed or renewed YTD i.e. >€6m in annualised headline rents … Fos
Slide 15: Active asset rotation continues
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE ACTIVE ASSET ROTATION CONTINUES FY disposal plan already achieved end of September Opportunistic investments >€600m €63m Total YTD 2022 disposals initial investment (excl. RETT) <4.5% In line Average yield with December 31, 2
Slide 16: Investments in a diversified development pipeline
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE INVESTMENTS IN A DIVERSIFIED DEVELOPMENT PIPELINE NOT Share of anticipated facial rent by location STARTED COMMITTED TOTAL Paris + Regions # projects 8 7 15 Regions 50% 16% Investment (1) €0.7bn €0.9bn €1.6bn Paris CBD 22% Ar
Slide 17: M Factory: new office building in Marseille Euromed
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE M FACTORY: NEW OFFICE BUILDING AT THE HEART OF MARSEILLE EUROMED Construction of a new office building on a land reserve and residential development in group synergy Works Q4 2017 Q1 2021 Q3 2021 Q4 2021 Q4 2022 Q3 2023 Acqui
Slide 18: NEXT: significant value creation in Lyon Part-Dieu
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE NEXT: SIGNIFICANT VALUE CREATION IN LYON PART-DIEU Speculative refurbishment project launched in Q1 2022, 100% pre-let before the beginning of construction works Works Q4 2017 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q2 2024 Acquisiti
Slide 19: Land bank: diversification of use types
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE LAND BANK: DIVERSIFICATION OF USE TYPES TO ACCELERATE THEIR DEVELOPMENT Significant residual constructability, on top of the development pipeline: c.500,000 sq.m (1) A conservative valuation: c.€0.1bn (2) Located in Rungis an
Slide 20: Equinix datacenter in Portes de Paris
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE EQUINIX DATACENTER - AN EXAMPLE OF DIVERSIFICATION IN PORTES DE PARIS AN INNOVATIVE SERVICE-SECTOR BUILDING BACKGROUND / LOCATION PROJECT Equinix, a leading provider of • Removal of obsolete buildings datacenter services has
Slide 21: A service platform designed for our clients
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE A SERVICE PLATFORM DESIGNED FOR OUR CLIENTS A RANGE OF SERVICES FOR OUR CLIENTS A FLEXIBLE TURNKEY OFFICE SOLUTION To meet their new needs and ensure the best work experience To provide concrete solutions that address changin
Slide 22: Roadmap for Icade Office Property Investment division
1. OFFICE PROPERTY INVESTMENT: OFFICE MARKET & DEVELOPMENT PIPELINE UPDATE ROADMAP FOR ICADE OFFICE PROPERTY INVESTMENT DIVISION Secure cash flows by active asset management activity Continue strong asset rotation, accept to be net disinvestor Diversification of the development pipeline to cope with
Slide 23: Healthcare Property Investment: investment market & opportunities
LES JARDINS DE SOPHIA Castelnau-le-Lez, Occitanie 2. Healthcare Property Investment: Healthcare investment market & opportunities INVESTOR DAY MONDAY, NOVEMBER 28, 2022 23
Slide 24: Fundamentals remain very strong
2.1. HEALTHCARE PROPERTY INVESTMENT - STRONG FUNDAMENTALS, SUPPORTED BY PUBLIC POLICIES AND AGILITY FROM CARE OPERATORS FUNDAMENTALS REMAIN VERY STRONG… A resilient market fueled by favorable demographic trends Ageing population across Europe Population >70 years old – base 100 220 x2.0 x1.8 180 x1.
Slide 25: Supported by public policies and agility from care operators
2.1. HEALTHCARE PROPERTY INVESTMENT - STRONG FUNDAMENTALS, SUPPORTED BY PUBLIC POLICIES AND AGILITY FROM CARE OPERATORS … AND ARE SUPPORTED BY PUBLIC POLICIES AND AGILITY FROM CARE OPERATORS • Acute care operators: €250m public support in 2022 to offset energy cost inflation Measures to offset energ
Slide 26: Capturing inflation over long maturities
2.2. HEALTHCARE PROPERTY INVESTMENT - A STRONG BUSINESS MODEL CAPTURING INFLATION OVER LONG MATURITIES Leases are indexed on indices with an inflation component c.100% c.75% of leases indexed on inflation of annualised IFRS rental income linked to the ILC (partially or totally) (French Commercial Re
Slide 27: Comfortable headroom for our rental ratios
2.2. HEALTHCARE PROPERTY INVESTMENT - A STRONG BUSINESS MODEL COMFORTABLE HEADROOM FOR OUR RENTAL RATIOS 1 Tenant base focusing on best-in-class operators 2 A historically very high rent collection 85% among the Top 5 in their respective markets c.100% Rent collection rate 3 A secured and unique 3-l
Slide 28: A relative slowdown in volumes vs. record years
2.3. HEALTHCARE PROPERTY INVESTMENT - 2022 INVESTMENT ACTIVITY A RELATIVE SLOWDOWN IN VOLUMES vs. RECORD YEARS 2020 AND 2021 Healthcare investments in Icade Santé’s Currently European markets (€bn) (1) • On operator’s side: relative slowdown in investment volumes 5-year CAGR: +25% reflecting rising
Slide 29: Yields: healthcare well positioned vs other real estate classes
2.3. HEALTHCARE PROPERTY INVESTMENT - 2022 INVESTMENT ACTIVITY YIELDS: HEALTHCARE RELATIVELY WELL POSITIONED COMPARED TO OTHER REAL ESTATE CLASSES Historic weak correlation between healthcare asset Healthcare relatively well positioned yields and 10-year French government bonds compared to other rea
Slide 30: Our priorities for 2023
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 OUR PRIORITIES FOR 2023 Temporary slowing • Improved selectivity and discipline in acquisitions down our investment activity • Keep delivering current pipeline of greenfield assets • Partnering with our tenants to add value to e
Slide 31: Continued, diversified and disciplined investments
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 CONTINUED, DIVERSIFIED AND DISCIPLINED INVESTMENTS • Continued growth in Southern Europe • Focus on acute care sector Selected assets and geographies • Towards a more international and diversified tenant base • CSR performance (
Slide 32: Adding value to existing portfolio with development pipeline
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 ADDING VALUE TO OUR EXISTING PORTFOLIO WITH OUR DEVELOPMENT PIPELINE Koppensbergs Hof NH MSO private hospital Nursing home Essen More than 15 Psychiatric private hospital Dunkerque Saint-Omer private hospital extension/restructu
Slide 33: Partnering with tenants on existing assets in France
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 FURTHER PARTNERING WITH OUR TENANTS ON EXISTING ASSETS IN FRANCE Business case #1: France - Elsan Rationale • Improved performance and/or capacity of existing facility Build new medical and real estate projects e.g. extension •
Slide 34: Partnering with tenants on existing assets abroad
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 FURTHER PARTNERING WITH OUR TENANTS ON EXISTING ASSETS ABROAD Business case #2: Italy - Gruppo Villa Maria – Extension of the Rapallo private hospital Rationale • Set up a reference surgical pole in the Genoa area operated by It
Slide 35: Partnering with tenants on greenfield projects
2.4. HEALTHCARE PROPERTY INVESTMENT - OUR STRATEGIC PRIORITIES FOR 2023 FURTHER PARTNERING WITH OUR TENANTS ON GREENFIELD PROJECTS Business case #3: new rehabilitation clinic with Korian Rationale • Establishing reference assets meeting the highest standards: better adapted, more attractive, Positio
Slide 36: To conclude
2. HEALTHCARE PROPERTY INVESTMENT: HEALTHCARE INVESTMENT MARKET & OPPORTUNITIES TO CONCLUDE Stay confident in our strong business model 1 • High visibility on future cash flow • Attractive cap rates and risk premium on Healthcare real estate Keep our financial headroom until financial market stabili
Slide 37: Property Development: residential market and roadmap update
CO-LIVING STUDENT RESIDENT Villejuif, Val-de-Marne 3. Property Development: Residential market and roadmap update INVESTOR DAY MONDAY, NOVEMBER 28, 2022 37
Slide 38: Residential market insight (1/2): new market conditions
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE RESIDENTIAL MARKET INSIGHT (1/2): NEW MARKET CONDITIONS An environment with new challenges: New customers and cities • Inflation expectations: • Rising interest rates on mortgages • Climate change and adaptation issue (although staying a
Slide 39: Residential market insight (2/2): a still undersupplied market
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE RESIDENTIAL MARKET INSIGHT (2/2): A STILL UNDERSUPPLIED MARKET Housing supply Apartment sale price In units In €/sq.m 140000 5800 115,263 5600 120000 5400 100000 90,573 82,329 5200 80000 5000 4800 60000 4600 4,860 40000 4400 4,587 4200 4
Slide 40: 2022 figures (1/2): Icade Promotion outperforms the market
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE 2022 FIGURES (1/2): ICADE PROMOTION OUTPERFORMS THE MARKET Housing orders Market data -14.3% +6.0% vs. Q3 2021 vs. Q3 2021 82,532 70,699 1,982 2,100 64,744 +5.0% Unit sales vs. Q3 2021 End of September 1,244 549 577 Icade Promotion outpe
Slide 41: 2022 figures (2/2): a growth roadmap well on track
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE 2022 FIGURES (2/2): A GROWTH ROADMAP WELL ON TRACK Icade Promotion: advanced indicators Backlog (all activities) Housing land portfolio Potential revenue over medium term (In €m) (housing- consolidated share) (all activities) +15.0% (In
Slide 42: Ability to maintain margins in a tense environment
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE ABILITY TO MAINTAIN MARGINS IN A TENSE ENVIRONMENT A tightening environment… Construction costs index (CCI) Mortgage loan interest rate +12.1% Change between +1 pt Change between CSR requirements Q2 2022 vs. Q2 2021 Q3 2022 vs. Q3 2021 S
Slide 43: Icade Promotion roadmap on track: growth trajectory by 2025 confirmed
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE ICADE PROMOTION ROADMAP ON TRACK: GROWTH TRAJECTORY BY 2025 CONFIRMED As of today, Financial Roadmap by 2025 confirmed €1.4bn 7% revenue margin Strong identified drivers proving their efficiency 1 2 3 New solutions adapted Continued grow
Slide 44: Business case #1, Steen: conversion of industrial wasteland
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE BUSINESS CASE #1, STEEN: CONVERSION OF INDUSTRIAL WASTELAND INTO HOUSING & ACTIVITIES 1 2 3 4 June 2022 2023 2025 2027 Deal First building permit First completion Completion Acquisition of 70 sites to be converted partnership > 100,000 s
Slide 45: Business case #2, Roquebrune-Cap-Martin
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE BUSINESS CASE #2, ROQUEBRUNE-CAP-MARTIN: A LARGE-SCALE AND MIX PROJECT A 35,600 sq.m project at Roquebrune-Cap-Martin (Alpes-Maritimes) 1 2 3 4 Oct. 2022 March 2023 Dec. 2023 2025 Laureate Building permit deposit Acquisition First comple
Slide 46: Business case #3, Neuilly-sur-Seine: hotel conversion
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE BUSINESS CASE #3, NEUILLY-SUR-SEINE: CONVERSION OF AN OLD HOTEL INTO HOUSING 1 2 3 4 March 2022 April 2022 2023 2026 Building permit deposit Acquisition Start of work Completion 16,388 sq.m Labels & certifications of floor area • NF HQE
Slide 47: Conclusion
3. PROPERTY DEVELOPMENT: RESIDENTIAL MARKET AND ROADMAP UPDATE CONCLUSION Solid fundamentals in a challenging environment Conquest posture to continue Opportunities that may arise in a consolidating market Icade Promotion’s forward indicators well oriented (controlled land portfolio and backlog) Tot
Slide 48: Icade's low-carbon strategy: update on the roadmap
OLYMPIC GAMES ATHLETES VILLAGE Saint-Ouen, Seine-Saint-Denis 4. Icade’s low-carbon strategy: update on the roadmap INVESTOR DAY MONDAY, NOVEMBER 28, 2022 48
Slide 49: Further ramping up our low-carbon strategy in 2022
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP FURTHER RAMPING UP OUR LOW-CARBON STRATEGY IN 2022 Achieving net-zero carbon emissions by 2050 1 2 Targets for reducing GHG emissions by 2030 Reducing GHG emissions by 90% for our three divisions and Corporate in absolute terms between 2019 and 2
Slide 50: Low-carbon commitments recognised by external third parties
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP LOW-CARBON COMMITMENTS RECOGNISED BY EXTERNAL THIRD PARTS First Say on Climate Icade’s 1.5°C-aligned Net Reinforced commitments and Biodiversity Zero Pathway approved to face the energy crisis at the 2022 AGM by the SBTi Short term and voluntaris
Slide 51: Our carbon performance is well oriented
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP OUR CARBON PERFORMANCE IS WELL ORIENTED Icade’s GHG emission reduction pathway Reduction measures implemented (in tCO2e/year) -6% Office Investment 600 000 vs. 2019 • Energy performance improvement COVID-19 and asset renovation effect • Renewable
Slide 52: Main CSR commitments 2023-2026
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP MAIN CSR COMMITMENTS 2023-2026 Healthcare Property Office Property Investment Investment Property Development • Assess the vulnerability to climate change of its portfolio and new investments Adapt 100% of its assets most exposed to climate ris
Slide 53: Leading position confirmed by CSR rating agencies & rankings
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP LEADING POSITION CONFIRMED IN 2022 BY CSR RATING AGENCIES & RANKINGS CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 3rd out of 438 listed real estate companies worldwide “Sector leader” status Score: 7.3/100 (inverted scale) in the category of
Slide 54: Conclusion – CSR strategy
4. ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP CONCLUSION – CSR STRATEGY Carbon intensity/sq.m significantly reduced across our 3 business lines in line with our commitments 2022–2026 low-carbon investment plan will allow Icade to remain a low-carbon best in class in the real estate sector CS
Slide 55: Financial structure: balance sheet at the end of 2022
TOULON HARBOUR Var 5. Financial structure: balance sheet at the end of 2022 INVESTOR DAY MONDAY, NOVEMBER 28, 2022 55
Slide 56: A very rapid change of financial environment in 2022
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 A VERY RAPID CHANGE OF FINANCIAL ENVIRONMENT IN 2022 10-year French government bond: 2012-2022 change IBOXX non financial and real estate 2015-2022 5 250 Spread Non-Financials BBB Jan. 2012 Nov. 2022 4 3.05% 2.68% 200 Markit EUR Real Estate 15
Slide 57: Financial structure at end of June 2022
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 FINANCIAL STRUCTURE AT END OF JUNE 2022 Balance sheet data as of June 2022 (On a 100% and Fair value basis) Assets (€bn) Liabilities (€bn) Total: €18.3bn, including: = Total: €18.3bn, including: • Office Investment: 8.6 • Revalued Equity: 8.9
Slide 58: Optimized and well-hedged debt profile
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 ICADE BENEFITS FROM AN OPTIMIZED AND WELL-HEDGED DEBT PROFILE Diversified Other 249 (3%) 70% not Well covered Floating rate debt 6% funding structure Bank mortgages 900 (12%) granted 94% end of June Floating rate debt – hedged by financial int
Slide 59: Our debt ratios are solid, far from covenants
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 OUR DEBT RATIOS ARE SOLID, FAR FROM COVENANTS Target LTV maintained around 40% Banking One of the lowest net debt to EBITDA ratios in France Covenant 60% 15.2x 14.6x 14.2x 50,0% 42.8% 43.7% 44.1% 43.1% 45,0% 41.7% 42.0% 10.7x 39.5% 39.5% 40,0%
Slide 60: How to adapt to this new financial environment?
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 HOW TO ADAPT TO THIS NEW FINANCIAL ENVIRONMENT? Identified stakes Adjustment of Financial policy Preserve and even strengthen • Securing the debt maturity schedule liquidity • Reinforce RCF lines • Maintain a diversified debt structure Curbing
Slide 61: Action plan #1: maintaining a comfortable debt schedule
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 ACTION PLAN #1: MAINTAINING A COMFORTABLE DEBT SCHEDULE Debt schedule as of September 2022 No pressure on the debt maturity 325 as of September 2022 • Next significant bond maturity: 2025 618 123 25 7 • Possible extension of the bridge-to-bond
Slide 62: Action plan #2: increased selectivity in investment policy (1/2)
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 ACTION PLAN #2: INCREASED SELECTIVITY IN INVESTMENT POLICY (1/2) 1 New financial environment: impacts to be expected by 2023 Average cost of debt: Potential decline in value? slight increase expected in 2023 thanks to inertia 6,0% Yield Office
Slide 63: Action plan #2: increased selectivity in investment policy (2/2)
5. FINANCIAL STRUCTURE: BALANCE SHEET AT THE END OF 2022 ACTION PLAN #2: INCREASED SELECTIVITY IN INVESTMENT POLICY (2/2) In this context, balance sheet indicators will continue to be very resilient in 2023 and onwards LTV curb Sensitivity of the LTV to the decline in values Bank covenant 60% Bank L
Slide 64: Conclusion: FY 2022 forecasts and 2023 outlook
EDENN Nanterre, Hauts-de-Seine Conclusion: FY 2022 forecasts and 2023 outlook INVESTOR DAY MONDAY, NOVEMBER 28, 2022 64
Slide 65: Solid fundamentals – confidence reiterated
CONCLUSION: FY 2022 FORECASTS AND 2023 OUTLOOK SOLID FUNDAMENTALS – CONFIDENCE REITERATED Our balance sheet is really sound and will stay Office portfolio: solid and attractive CSR and low carbon contribute to the performance Healthcare portfolio: continuously attractive asset class… of our business
Slide 66: 2023 outlook: resilience, ability to integrate new financial environment
CONCLUSION: FY 2022 FORECASTS AND 2023 OUTLOOK 2023 OUTLOOK: RESILIENCE, ABILITY TO INTEGRATE THE NEW FINANCIAL ENVIRONMENT Office Healthcare Property Development Investment Division Investment Division Division • Growth strategy slow down • Continuation of the disposal plan: to take into account th
Slide 67: Short term outlook: FY 2022 guidance raised
CONCLUSION SHORT TERM OUTLOOK: FY 2022 GUIDANCE RAISED Guidance announced on February 22, 2021 Updated Guidance (1) ≈+7% excluding impact of 2022 2022 Group NCCF Up ≈+4% excluding disposals per share impact of 2022 disposals Up ≈+3%, Including impact of 2022 disposals 2022 Healthcare Investment NCCF
Slide 68: Appendices
007 BUILDING (PONT DE FLANDRE) Paris, 19th district Appendices INVESTOR DAY MONDAY, NOVEMBER 28, 2022 68
Slide 69: In 2022 take-up is picking up to normalize
APPENDICES - OFFICE: PARIS REGION OFFICE MARKET IN 2022 TAKE-UP IS PICKING UP TO NORMALIZE WITH NEW STANDARDS A rebound of take-up backed Where is the office market by large occupier projects most active so far? TAKE-UP IS RECOVERING LARGE TRANSACTIONS ARE BACK (YET A BIT SMALLER) Take-up in million
Slide 70: Headline rents for the most qualitative assets are resilient
APPENDICES - OFFICE: PARIS REGION OFFICE MARKET HEADLINE RENTS FOR THE MOST QUALITATIVE ASSETS – SUCH AS ICADE’S – ARE RESILIENT Paris CBD Q3 ‘22 vs. Q4 ’19 Prime rent €925 psqm +8% Avg rent (new) €800 psqm +10% La Défense Q3 ‘22 vs. Q4 ’19 Incentives 17% +5 pts Prime rent €570 psqm +7% Vacancy rate
Slide 71: Large transactions are back and reconfiguring
APPENDICES - OFFICE: PARIS REGION OFFICE MARKET LARGE TRANSACTIONS ARE BACK AND RECONFIGURING Outlooks Large occupiers attracted by new and more compact buildings Demand remains high Average size of 10,500 sq.m vs. 12,600 sq.m over the last 5 years Hiring and investment projects are resisting 80% of
Slide 72: Lyon and Marseille: two dynamic and resilient regional markets
APPENDICES - REGIONAL OFFICE MARKET LYON AND MARSEILLE: TWO DYNAMIC AND RESILIENT REGIONAL MARKETS Lyon 3% of Office revenues A swift return to the long term level of take-up for the main regional market Marseille Awith resilient office market limited new supply in EuroMed 3% of Office revenues • Ta
Slide 73: Investment in France is solid and selective
APPENDICES - OFFICE: INVESTMENT MARKET IN FRANCE INVESTMENT IN FRANCE IS SOLID AND SELECTIVE Direct Real Estate Investments in France (Commercial Real Estate, € bn) Volumes in range with the long term trend 1 €21.5bn invested over 9 months, a +33% increase over a year 50 Q1 Q2 Q3 Q4 Expected 45 43 O
Slide 74: Development pipeline as of September 30, 2022
APPENDICES - OFFICE DEVELOPMENT PIPELINE AS OF SEPTEMBER 30, 2022 Rental Type In Property Estimated date Floor area income Cost (2) (1) Project name Location of works progress type of completion (sq.m) (€m) YoC (€m) Pre-let B034 Paris, 19th district Refurbishment ✓ Hotel Q1 2023 4,826 41 100% JUMP (
Slide 75: Healthcare portfolio by geography as of June 30, 2022
APPENDICES – HEALTHCARE INVESTMENT HEALTHCARE PORTFOLIO BY GEOGRAPHY AS OF JUNE 30, 2022 Breakdown by property type as of June 30, 2022 209 facilities (as a % of portfolio value) €6.8bn 28 nursing homes 3 nursing homes French (100% basis) – €4.0bn Icade Group share under a preliminary acute care 71.
Slide 76: Office and healthcare prime yield vs. 10-year bond
APPENDICES – OFFICE & HEALTHCARE OFFICE AND HEALTHCARE PRIME YIELD vs. 10-YEAR BOND 2009 8 2013 7 Spread 10-year bond (1) vs. prime yields Prime yields - Q3 2022 6 410 2018 2022 5 290 425 Healthcare – MSO 4.75% 190 bps 360 240 Healthcare - Nursing care 4.00% 4 200 bps 165 Office - 1st Inner Ring 3.8
Slide 77: Icade's carbon footprint: enlarged scope to comply with SBTi
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP ICADE’S CARBON FOOTPRINT: ENLARGED SCOPE TO COMPLY WITH SBTI Icade's SBTI commitment 40% OFFICE PROPERTY INVESTMENT and reporting scope in 2019 Emissions on a life-cycle basis Over a 50-year horizon 5% (from energy consumption by tenant
Slide 78: Office Property Investment committed with our tenants
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP OFFICE PROPERTY INVESTMENT COMMITTED WITH OUR TENANTS -60% €100m: investments between 2022 & 2026 Target reduction in operational carbon intensity Main measures: between 2019 and 2030 in France, in kgCO2 e/sq.m/year • Renovations • Ener
Slide 79: Healthcare Property Investment committed to a low-carbon strategy
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP HEALTHCARE PROPERTY INVESTMENT COMMITTED TO A LOW-CARBON STRATEGY WITH TENANTS Main measures: In France Internationally • Improve the energy performance of buildings -37% -50% • Obtain environmental certification with a minimum rating f
Slide 80: Healthcare Property Investment potential measures to reduce GHG
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP HEALTHCARE PROPERTY INVESTMENT POTENTIAL MEASURES TO REDUCE GHG GHG emissions in France and identified GHG emissions internationally and identified potential measures to reduce them by 2030 potential measures to reduce them by 2030 (in
Slide 81: Property Development ramp up low-carbon construction
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP PROPERTY DEVELOPMENT RAMP UP LOW-CARBON CONSTRUCTION -41% >550,000 sq.m Target reduction in carbon intensity between 2019 & 2030 of timber construction projects for buildings built, in kgCO2 e/sq.m over a 50-year horizon completed or un
Slide 82: Innovative residential project in Ferney-Voltaire
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP PROPERTY DEVELOPMENT FOCUS ON AN INNOVATIVE RESIDENTIAL PROJECT IN FERNEY-VOLTAIRE (AIN) 148 housing units incl. 66 with a social 7,200 sq.m mission allowing young people who have difficulty €37m revenue c.70% from timber finding accomm
Slide 83: 14 start-up & spin-off to tackle Icade's challenges
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP 14 START-UP & SPIN-OFF TO TACKLE ICADE’S CHALLENGES Low-carbon New habits Soils & biodiversity Digital SaaS solution based on data and Low-carbon buildings design Senior coliving operator Rainwater recycling solutions AI helping real es
Slide 84: Icade's CSR priorities for 2023-2026
APPENDICES - ICADE’S LOW-CARBON STRATEGY: UPDATE ON THE ROADMAP ICADE'S CSR PRIORITIES FOR 2023-2026 … places with a reduced carbon Climate footprint… 1,5°C Pathway & Adaptation … desirable places to live… Well-being Biodiversity … connected & Health of & Soil … desirable places… occupants Designing