Slide 1: 2023 Full-Year Results
2023 FULL-YEAR RESULTS ORIGINE (Nanterre, Hauts-de-Seine)
Slide 2: Disclaimer
DISCLAIMER This presentation is not an offer or an invitation to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this document may be restricted in certain countries by legislation or regulations. As a result, any person who comes into pos
Slide 3: Agenda
AGENDA 1 Introduction Healthcare disposal under way 2 Operating performance: resilience confirmed 3 Financial results: solid in an adverse context 4 Robust CSR performance 5 Outlook Appendices 2023 FY Results 3
Slide 4: Introduction
INTRODUCTION PROMENADE DE LA RADE TOULON (Var) 2023 FY Results 4
Slide 5: FY 2023 in a nutshell
INTRODUCTION FY 2023 in a nutshell NCCF Commercial investment Property development NCCF/share NCCF/share 2023 proforma GRI GRI LfL Economic revenue Margin P&L €4.62 €3.07 €364m +2.2% €1,294m 3.8% Above guidance(1) Portfolio EPRA NAV Debt management Dividend 2023 LTV ICR 33.5% 5.6x GAV(2) Asset value
Slide 6: Healthcare disposal under way
1 HEALTHCARE DISPOSAL UNDER WAY POLYCLINIQUE REIMS-BEZANNE (Marne) 2023 FY Results 6
Slide 7: Disposal of Healthcare Division – Stage 1 achieved
1. HEALTHCARE DISPOSAL UNDER WAY Disposal of Healthcare Division – Stage 1 achieved Date Process Accounting impact Cash-in July 5, 2023 • Agreement to sell • Healthcare activities €1.45bn 100% of Healthcare deconsolidated from Division (Icade Santé(1) Icade’s financial and IHE) statements(2) • Compl
Slide 8: Disposal of Healthcare Division – Stage 2 – Sale of remaining stake in Praemia Healthcare
1. HEALTHCARE DISPOSAL UNDER WAY Disposal of Healthcare Division – Stage 2 – Sale of the remaining stake in Praemia Healthcare Indicative timeline Process Conditions Cash-in 2024 – 2025 • Sale of Icade’s • Commitment from €0.8bn(2) 22.52% remaining Primonial REIM to stake in Praemia allocate funds r
Slide 9: Disposal of Healthcare Division – Stage 3 – Disposal of Icade Healthcare Europe portfolio
1. HEALTHCARE DISPOSAL UNDER WAY Disposal of Healthcare Division – Stage 3 – Disposal of Icade Healthcare Europe portfolio Indicative timeline Process Conditions Cash-in 2024 – 2026 • Disposal of IHE portfolios • Priority repayment of Cash already existing shareholder loan received • Fee to Primonia
Slide 10: Operating performance: resilience confirmed
2 OPERATING PERFORMANCE: RESILIENCE CONFIRMED PARC PARIS ORLY RUNGIS (Val-de-Marne) 2023 FY Results 10
Slide 11: Commercial Investment
2.1 COMMERCIAL INVESTMENT PULSE (Saint-Denis, Seine-Saint-Denis) 2023 FY Results 11
Slide 12: Leasing market normalizes one step lower, investment to a near-standstill
2.1. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – COMMERCIAL INVESTMENT Leasing market normalizes one step lower, investment to a near-standstill Leasing market Investment market Take-up in the Paris Region in 2023 Investment volume in France in 2023 1.9M sq.m (-17%(1)) €14.3bn (-51%(1)) 77% of tak
Slide 13: Record leasing activity in 2023 in all segments
2.1. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – COMMERCIAL INVESTMENT Record leasing activity in 2023 in all segments… c.243,000 sq.m €63m 5.6 years 87.9% signed or renewed leases of secured annual rental WALB related to leases signed Financial occupancy rate (c.+20% vs. 2022) income or renewed s
Slide 14: A solid and diversified tenant portfolio
2.1. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – COMMERCIAL INVESTMENT … with a solid and diversified tenant portfolio 85% of annualised IFRS rental income from public sector Utilities and mid and large corporates As of December 31, 2023 Finance / Insurance Government agencies Public sector 17% &
Slide 15: Opportunistic approach on asset rotation
2.1. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – COMMERCIAL INVESTMENT Opportunistic approach on asset rotation Selective acquisition €49m Opportunistic disposals €146m PONANT B, Paris, 15th district 5,400 sq.m In line with NAV as of December 2022 Average yield on offices sold 4.2% Full ownership
Slide 16: Investment pipeline focus on secure, sustainable & diversified projects
2.1. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – COMMERCIAL INVESTMENT Investment pipeline focus on secure, sustainable & diversified projects 100% of projects €907m €334m c.€45m aiming for HQE / BREEAM Started pipeline Remaining capex Potential rents with an Excellent rating A diversified pipelin
Slide 17: Property Development
2.2PROPERTY DEVELOPMENT OSMOSE (Strasbourg, Bas-Rhin) 2023 FY Results 17
Slide 18: A sharply slowing residential development market
2.2. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – PROPERTY DEVELOPMENT A sharply slowing residential development market 1 Market data ➔ Declining real estate purchasing power in 2023 Order slowdown A constantly rising interest • Solvency reduced by -25% for first-time buyers(2) c.-35% YoY(4) rates
Slide 19: Resilient operating indicators driven by the increase in bulk sales
2.2. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – PROPERTY DEVELOPMENT Resilient operating indicators driven by the increase in bulk sales Strong upward momentum on bulk sales, supported by operators, social landlords and intermediate housing providers Residential bulk sales +18% in value >67% of t
Slide 20: Deep review of operations for greater selectivity
2.2. OPERATING PERFORMANCE: RESILIENCE CONFIRMED – PROPERTY DEVELOPMENT Deep review of operations for greater selectivity 1 2 Further securing operations Deep review of land porfolio • Increase in minimum order rate • Renegotiation of land prices: c.-10% c.75%(1) of pre commercialization • Renegotia
Slide 21: Financial results: solid in an adverse context
3 FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT ESTEREL NORD (Paris Orly-Rungis business park) 2023 FY Results 21
Slide 22: Change in cash flow following sale and deconsolidation of Healthcare activities
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – INCOME STATEMENT Change in cash flow following sale and deconsolidation of Healthcare activities Breakdown of Total 2023 NCCF (in €m) 350.6 22.8 (€4.62/share) 95.2 232.6 228.8 6.2 (€3.07/share) (2.4) Following deconsolidation, Healthcare activities
Slide 23: NCCF above guidance despite lower cash flow from development activity
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – INCOME STATEMENT NCCF above guidance despite lower cash flow from development activity Breakdown of Total NCCF from Strategic Activities (in €m) Guidance [€2.95-€3.05]/share +0.8% (per share) +6.5 232.6 230.6 +1.8 (€3.07/share) (€3.04/share) +27.3
Slide 24: Commercial Investment: resilient P&L indicators boosted by improved financial results
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – INCOME STATEMENT Commercial Investment: resilient P&L indicators boosted by improved financial results Gross rental income roughly stable On a 100% basis / in €m 12/31/2023 12/31/2022 Change LfL change Gross rental income 363.9 364.0 Stable +2.2% L
Slide 25: Property Development: solid economic revenue, margins under pressure
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – INCOME STATEMENT Property Development: solid economic revenue, margins under pressure 12/31/2023 12/31/2022 YoY change Commercial TOTAL Commercial (in €m) Residential and Others(2) TOTAL TOTAL change Residential and others Economic revenue(1) 998.9
Slide 26: Significant cap rate increase taken into account by valuers in 2023
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – VALUE OF THE COMMERCIAL PORTFOLIO & NAV Significant cap rate increase taken into account by valuers in 2023 2023 change in fair value – Commercial Investment Division (Group share / excluding duties / in €m) -16.3% on a reported basis 7,726 - 127.1
Slide 27: EPRA NTA, deeply impacted downward by variations in assets value
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – VALUE OF THE COMMERCIAL PORTFOLIO & NAV EPRA NTA, deeply impacted downward by variations in assets value €6,813m €5,098m NTA -25.2% (per share) (in € per share) 89.8 3.07 (0.8) 71.5 (4.3) 67.2 (20.7) EPRA NTA Group Changes Other EPRA NTA 2023 EPRA
Slide 28: Liabilities: LTV as of December 31, 2023: 33.5%
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – LIABILITIES LTV as of December 31, 2023: 33.5% A significant reduction in net debt Improved LTV & Net debt-to-EBITDA ratio 10.9x 12,0 10.1x 10,0 €3.0bn 40.1% 39.3% 7.0x(2) 8,0 Net debt as of December 2023 33.5%(1) 6,0 (vs. €6.6bn as of December 202
Slide 29: High liquidity position to cope with a challenging financial environment
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – LIABILITIES High liquidity position to cope with a still challenging financial environment Icade debt schedule (12/31/2023, in €bn)(2) Liquidity position (12/31/2023) Covering principal until 2028 €1.4bn Cash and cash equivalents €1.5bn Unused comm
Slide 30: A proactive debt and cash management in 2023
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – LIABILITIES A proactive debt and cash management in 2023 • Reduction in NeuCP volume (€225m at end of Dec. 2023) Early repayment of short-term debt • Lower maturities 2024-2026: c.€180m early repaid • All 2024-2025 unused credit lines refinanced Re
Slide 31: Even tighter control over future financial expenses
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – LIABILITIES Even tighter control over future financial expenses At end-December 2023 Debt fully hedged over 5.5 years Robust hedging position the next 3 years Average maturity of hedging instruments Cost of debt under control 1.56% Strong ICR 5.6x
Slide 32: Attractive dividend yield
3. FINANCIAL RESULTS: SOLID IN AN ADVERSE CONTEXT – DIVIDENDS Attractive dividend yield Board of Directors’ proposal to the General Meeting to be held on April 19, 2024 €4.84 +11.8% 13.6% Dividend per share Growth vs. 2022 Dividend yield(1) Dividend paid in two instalments • Interim dividend (€2.42/
Slide 33: Robust CSR performance
4 ROBUST CSR PERFORMANCE LA PLATEFORME (Marseille, Bouches-du-Rhône) 2023 FY Results 33
Slide 34: Improvement in low carbon performance thanks to high-impact actions (1/2)
4. ROBUST CSR PERFORMANCE Improvement in low carbon performance thanks to high-impact actions (1/2) More efficient buildings €66m Capex over 2019-2023(2) Target reduction in GHG emissions between 2019 and 2030 (in kg CO2/sq.m) -60% c.-20% Energy efficiency programme Change in energy consumption in t
Slide 35: Improvement in low carbon performance thanks to high-impact actions (2/2)
4. ROBUST CSR PERFORMANCE Improvement in low carbon performance thanks to high-impact actions (2/2) Operations(2) powered by renewable energies, urban 79% vs. 64% in 2022 Target reduction networks and heat pumps in GHG emissions between 2019 and 2030 (in kg CO2/sq.m) -41% Operations(2) with mixed 17
Slide 36: Outlook
5 OUTLOOK ORSUD (Gentilly, Val-de-Marne) 2023 FY Results 36
Slide 37: 2024 outlook
5. OUTLOOK 2024 outlook 2024 NCCF from Strategic Activities(1) per share Group NCCF per share €[2.75 – 2.90] Excluding Discontinued Activities + estimated NCCF from Discontinued Activities(2) c.€[0.80] per share (1) Strategic Activities correspond to the Commercial Investment and Property developmen
Slide 38: Q&A
Q&A ORSUD (Gentilly, Val-de-Marne) 2023 FY Results 38
Slide 39: Appendices
APPENDICES MONTRÉAL (Paris Orly-Rungis Business Park) 2023 FY Results 39
Slide 40: Take-up normalizing for high quality and well-located assets
APPENDICES – OFFICE LEASING MARKET Take-up normalizing for high quality and well-located assets Take-up normalized one step lower Take-up in million sq.m in the Paris Region 1.9 in 2021 2.3 in 2022 1.4 1.9 in 2020 in 2023 and expected in 2024 Moves to gain centrality in the same area Occupiers reduc
Slide 41: In 2023, many investors pause acquisitions, awaiting a new equilibrium
APPENDICES – OFFICE INVESTMENT In 2023, many investors pause acquisitions, awaiting a new equilibrium Drastic drop in Real Estate investment in France Commercial Real Estate (in €bn) 30 14 (10-year in 2023 average) 29 27 29 in 2020 in 2021 in 2022 Investment decrease across all asset classes Prime y
Slide 42: The market is relying only on its most resilient basis: local investors
APPENDICES – OFFICE INVESTMENT In 2023, the market is relying only on its most resilient basis: local investors & prime assets 1 23 vs. 22 23 vs. 5y French investors made the most of 2023 acquisitions Annual share of • 79% of investment in France was done by French investors in 2023 French investors
Slide 43: Leasing activity in line with the new normal pace in a highly polarized market
APPENDICES – OFFICE INVESTMENT Leasing activity in line with the new normal pace in a highly polarized market Western Paris CBD La Défense Crescent Inner Ring Outer Ring Physical vacancy rate 2.4% ≈ 14.7% ▼ 14.7% ▲ 16.1% ▲ c.5.3% ≈ (Q4 2023 vs. a year earlier) Take-up 435,800 sq.m 133,500 sq.m 412,0
Slide 44: A diversified portfolio, with assets located in good hubs
APPENDICES – PORTFOLIO OVERVIEW – COMMERCIAL INVESTMENT A diversified portfolio, with assets located in good hubs La Défense 253 €6.5bn 1.9M 1st ring Portes de Paris Business Park(2) assets GAV sq.m 12/31/2023 OFFICE Breakdown by asset type GAV % GAV OFFICE TV STUDIO DATA CENTER Offices €5.4bn 82% N
Slide 45: A selective positioning in the main regional cities
APPENDICES – PORTFOLIO OVERVIEW – COMMERCIAL INVESTMENT A selective positioning in the main regional cities Focus Regions – all assets 241,000 10% €0.7bn(1) of the overall sq.m ORIANZ NEXT LAFAYETTE MILKY WAY Bordeaux, Gironde Lyon, Rhône Lyon, Rhône Lyon, Rhône portfolio Offices • Prime locations L
Slide 46: Terrasses de Nanterre, 20% of total portfolio value, 98% occupancy rate
APPENDICES – FOCUS NANTERRE-PRÉFECTURE Terrasses de Nanterre, 20% of total portfolio value, 98% occupancy rate Properties in operation Icade’s properties c.196,000 sq.m ÉTOILE DÉFENSE GRANDS PARK 4/5/6 AXES 20% of total portfolio value 2021 €420/sq.m completions prime rent in the area ORIGINE WEST P
Slide 47: Development pipeline as of December 31, 2023
APPENDICES – OFFICE Development pipeline as of December 31, 2023 Type Property Estimated date Floor area Rental income Cost(2) Remaining capex (1) Project name Location of works type of completion (sq.m) (€m) YoC (€m) (€m) Pre-let COLOGNE Rungis Refurbishment Office Q2 2024 2,927 11 3 100% NEXT Lyon
Slide 48: Key figures
APPENDICES – OPERATIONAL PERFORMANCE OF BUSINESS LINES – COMMERCIAL INVESTMENT Key figures Higher yields driven by market environment and increased 12/31/2023 12/31/2022 interest rates Portfolio value (100%, excl. duties) €6.8bn €8.2bn Financial occupancy rate 87.9% improving sharply on well- Portfo
Slide 49: Lease expiry schedule for the Commercial Investment Division
APPENDICES – COMMERCIAL INVESTMENT Lease expiry schedule for the Commercial Investment Division Robust leasing activity in the 2023 with c.243,000 sq.m renewed or signed • Renewals: 41 leases, i.e. 143,000 sq.m or €34m in annualised headline rental income, with a WALB of 4.9 years • Signatures: 89 l
Slide 50: A business model well protected against inflation
APPENDICES – COMMERCIAL INVESTMENT A business model well protected against inflation Commercial portfolio index split – Dec. 2023 (in % of headline rent) 100% ILC 7% Other indices 1% leases linked to indices with a strong inflation component. ILAT 77% ICC 15% Fully passed on to tenants Evolution of
Slide 51: After sharp rises, construction costs and selling prices stabilise
APPENDICES – PROPERTY DEVELOPMENT After sharp rises, construction costs and selling prices stabilise Construction cost and price indices in Q3 2023 Sale prices and stock of new housing units available for sale Index rebased to 100 in 2015 Price incl. taxes in €/sq.m excl. Notarial fees and other cos
Slide 52: Property Development orders: a shift towards institutional investors
APPENDICES – PROPERTY DEVELOPMENT Property Development orders: a shift towards institutional investors Breakdown of orders by type of customers -2.5 pps -1.2 pps 20.7% 18.2% 28.8% 27.7% 67% of 12/31/2022 -11 pps 14.8% 12/31/2023 institutional investors 25.8% (vs. 53% in 2022) 24.6% 39.3% +14.7 pps S
Slide 53: EPRA NRV, NTA & NDV
APPENDICES – VALUE OF THE COMMERCIAL PORTFOLIO EPRA NRV, NTA & NDV (In € per share) 73.3 +0.9 +4.2 +0.4 71.8 In € per Chg. vs. 67.2 In €m share Dec. 2022 (6.7) (0.3) EPRA NDV 5,565 73.3 -27.6% EPRA NTA 5,098 67.2 -25.2% EPRA NRV 5,447 71.8 -26.1% EPRA Transfer tax Impact Other EPRA Impact Other EPRA
Slide 54: Leading position confirmed in 2023 by CSR rating agencies and rankings
APPENDICES – CSR STRATEGY OVERVIEW Leading position confirmed in 2023 by CSR rating agencies and rankings CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 9th out of 443 listed “Sector leader” status real estate companies worldwide in the Western Europe Diversified Listed Real Estate Investment Sco
Slide 55: Results in line with the Group's 1.5°C pathway, approved by the SBTi
APPENDICES – CSR RESULTS Results in line with the Group’s 1.5°C pathway, approved by the SBTi • Breakdown of Icade’s CO2 emissions in 2023(1) • Sharp drop in GHG emissions(3) in 2023 Office Investment – Operation Corporate -90% Office Investment – Construction 4% 1% -28% 6% -21% 567 535 516 116 409,