Slide 1: Investor Presentation May 2021
PARK VIEW Villeurbanne, Rhône INVESTOR PRESENTATION MAY 2021 DESIGNING, BUILDING, MANAGING AND INVESTING in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint. Desirable places to live and work. This is our ambition. This is our
Slide 2: Agenda
1 Icade at a Glance 2020: Resilient results, solid business lines and balance sheet AGENDA 2 3 2021 update Appendices INVESTOR PRESENTATION MAY 2021 2
Slide 3: One of the leading French listed REITs
1. ICADE AT A GLANCE ONE OF THE LEADING FRENCH LISTED REITS As of 12/31/2020 OFFICE INVESTMENT: Icade, the leading real estate player in Greater Paris • Portfolio as of 12/31/2020: €9.0bn (100%) €14.7bn property portfolio €11.8bn property portfolio excl. duties, Group share • Average net initial yie
Slide 4: Sound financial structure, continued appeal
1. ICADE AT A GLANCE SOUND FINANCIAL STRUCTURE, CONTINUED APPEAL Reinforcing our balance sheet An attractive and Continued focus in a time of crisis strengthened credit profile on sustainable finance • BBB+ rating affirmed by S&P • Inaugural benchmark-size • RCFs increased: >€2.0bn • Bond issues: So
Slide 5: 2020: Resilient results, solid business lines and balance sheet
SKY-AND-GARDEN Asnières/Seine, Hauts-de-Seine 2. 2020: Resilient results, solid business lines and balance sheet Key points and highlights INVESTOR PRESENTATION MAY 2021 5
Slide 6: 2020: A year like no other
2. 2020: KEY POINTS & HIGHLIGHTS 2020: A YEAR LIKE NO OTHER An unexpected and challenging year, agile and proactive teams Management supported by a trusting Board of Directors Resilient 2020 results, solid business lines and balance sheet A business mix and risk profile adaptable in the current cont
Slide 7: Impact of the Covid-19 crisis
2. 2020: KEY POINTS & HIGHLIGHTS IMPACT OF THE COVID-19 CRISIS 2020 Office -€6m Leasing activity (1) and postponed NET CURRENT CASH FLOW Investment completions/acquisitions Healthcare Investment Postponed investments/acquisitions -€2m (2) -€27m Total impact on NCCF Property Slower revenue recognitio
Slide 8: NCCF at €4.84 per share, above October 2020 guidance
2. 2020: KEY POINTS & HIGHLIGHTS NCCF AT €4.84 PER SHARE, ABOVE OCTOBER 2020 GUIDANCE +6.7%, +2.0% LFL -6 bps -3.1% PROPERTY INVESTMENT -14.7% LIABILITIES PROPERTY DEVELOPMENT GROUP INDICATORS €678.4m €825.4m 1.48% €93.2 per share vs. €635.9m as of 12/31/2019 vs. €967.8m as of 12/31/2019 vs. 1.54% a
Slide 9: 2020 highlights
2. 2020: KEY POINTS & HIGHLIGHTS 2020 HIGHLIGHTS Investment Divisions post higher rental income +6.7% (i.e. +€42.5m vs. 2019) Offices & Business Parks +4.8%, +2.5% LFL, Healthcare +13.9% 3 completions over the year, stepped up lease renewals Active asset management c.160,000 sq.m signed or renewed F
Slide 10: Group NCCF at €4.84 per share
2. 2020: KEY POINTS & HIGHLIGHTS GROUP NCCF AT €4.84 PER SHARE (GUIDANCE ISSUED AT THE END OF OCTOBER: €4.80) (in €m) -7.9% per share vs. 2019 €4.84 per share €5.26 per share 389.2 (1) 358.3 (1) 14 8% 1% • 2020 NCCF down by only 7.9% : (27) (18) o Covid-19 crisis impact: -€27m 30% 37% o 2019 disposa
Slide 11: Portfolio valued at €11.8bn (Group share), €14.7bn on a 100% basis
2. 2020: KEY POINTS & HIGHLIGHTS PORTFOLIO VALUED AT €11.8bn (GROUP SHARE), €14.7bn ON A 100% BASIS Office Investment (Group share) Healthcare Investment (Group share) (in €m) (in €m) -0.3% +9.2% on a reported basis 8,498 on a reported basis 3,298 244 245 34 8,520 3,018 (3) (263) - 12/31/2019 Dispos
Slide 12: EPRA NTA: €93.2 per share
2. 2020: KEY POINTS & HIGHLIGHTS EPRA NTA: €93.2 PER SHARE, +1.1% PRIOR DIVIDEND (€ per share) -3.1% +1.1% 11. Portfolio value slightly down • EPRA NTA: -1.8% over 6 months 4.8 (€6,900m; €93.2 per share) 97.2 22. Limited decline in NAV vs. share price 96.1 (3.5) (0.2) • Discount (2) as of 02/04/2021
Slide 13: Update 2021
LE NAUTILUS Bordeaux, Gironde 3. Update 2021 INVESTOR PRESENTATION MAY 2021 13
Slide 14: Q1 2021 – Key takeaways
3. 2021 UPDATE Q1 2021 – KEY TAKEAWAYS Revenue up 44% in Q1 2021; +30% vs. Q1 2019 • Office Property Division: strong fundamentals confirmed with active leasing activity, stable rental income vs. Q1 2020, high level of rent collection rate, resumption of portfolio’s asset rotation • Healthcare Prope
Slide 15: Office property investment - 2021 Q1 key highlights
3. 2021 UPDATE OFFICE PROPERTY INVESTMENT - 2021 Q1 KEY HIGHLIGHTS LEASING ACTIVITY DEVELOPMENT PIPELINE • Continuity in dynamic asset management • Two major deliveries, c.96% > 65,000 sq.m declining investments Q1 2021 rent collection rate Total floor area of leases signed or renewed since January
Slide 16: Healthcare property investment - 2021 Q1 key highlights
3. 2021 UPDATE HEALTHCARE PROPERTY INVESTMENT - 2021 Q1 KEY HIGHLIGHTS • GRI: steady growth driven by international investments, • Continuity in the investments 100% collection rate & long-term partnership approach €78m +4.7% c.100% €70m Investment in Q1 : France, International incl. agreement GRI (
Slide 17: Property development - 2021 Q1 key highlights
2. 2021 UPDATE PROPERTY INVESTMENT - 2021 Q1 KEY HIGHLIGHTS • Vigorous recovery during Q1, • Growth potential confirmed business momentum ahead of 2019 €1.4bn €2.2bn €6.8bn Economic revenue +128% +56% Change Change Residential backlog Revenue expected from the residential land portfolio Medium term
Slide 18: 2021 priorities
3. 2021 UPDATE 2021 PRIORITIES Office Investment 1 Asset rotation and value creation through a pipeline of pre-let projects Healthcare Investment 2 Further growth and international expansion, preparation for liquidity event Property Development 3 Increase revenue and achieve higher margins CSR 4 Ram
Slide 19: 2021–2023 outlook
3. 2021 UPDATE 2021–2023 OUTLOOK Resumption of A revised Funding asset rotation, development pipeline Icade Santé Property Investment liquidity event for with more pre- Icade Santé commitments LTV ratio Property Some of our land holdings could be converted into housing Development & Land bank Expans
Slide 20: 2021 guidance
3. 2021 UPDATE 2021 GUIDANCE 2021 Group Up ≈ +3%, excluding impact of 2021 disposals NCCF per share (subject to the health and economic situation not worsening significantly) 2021 dividend Up +3% Payout ratio in line with 2020 (83%) + distribution of part of the gains on disposals ATHLETES VILLAGE S
Slide 21: Performance from 01/01/2020 to 04/30/2021
3. 2021 UPDATE PERFORMANCE FROM 01/01/2020 TO 04/30/2021 Performance en vision dividendes Evolution d'Icade, de ses pairs et des indices de référence sur la période allant du 31/12/2020 au 24/05/2021 réinvestis 140,00 +28,26% Nexity 130,00 +24,74% Klépierre +24,55% Altarea 120,00 +22,54% Icade +17,2
Slide 22: Appendices
LES BERGES DE FLACOURT Réunion Island Appendices INVESTOR PRESENTATION MAY 2021 22
Slide 23: 2020 dividend – payment method
APPENDICES 2020 DIVIDEND – PAYMENT METHOD The General Meeting of 04/23/21 approved resolutions 3 and 4 with regard to the 2020 dividend: An in 2-step payment schedule: 2020 dividend 83% €4.01/share steady • Interim dividend of €2.01/share payout ratio vs. payout 2019 paid on 5 March 2021 in cash • B
Slide 24: The office of tomorrow by Icade: we're ready
APPENDICES – OFFICE INVESTMENT THE OFFICE OF TOMORROW BY ICADE: WE’RE READY Our customers’ key priorities... Mix of home Flexibility Health & safety Cost optimisation 1 and office working 2 and location 3 and digitalisation 4 and efficient use of spaces ... with solutions already in place across our
Slide 25: Opportunities outside Paris in terms of occupier demand
APPENDICES – OFFICE INVESTMENT OPPORTUNITIES OUTSIDE PARIS IN TERMS OF OCCUPIER DEMAND Icade’s Office Investment portfolio Western in the Paris region at the end of 2020 Paris CBD La Défense Crescent Inner Ring Outer Ring Physical vacancy rate 3.6% ▲ 10.8% ▲ 12.2% ▲ 7.9% ▲ 5.4% ▲ GENEVILLIERS SAINT-
Slide 26: Most investments are concentrated in Greater Paris: 90%
APPENDICES – OFFICE INVESTMENT Land bank: 877,000 sq.m (2) – €0.1bn MOST INVESTMENTS ARE CONCENTRATED IN GREATER PARIS: 90% AREAS (IMMOSTAT) ASSETS LAND BANK OUR BUSINESS PARKS ON THE DOORSTEP OF PARIS Extended Paris CBD area Left Bank 261,000 sq.m Paris region portfolio Northeast Paris GRAND PARIS
Slide 27: Development pipeline as of 12/31/2020
APPENDICES – OFFICE INVESTMENT DEVELOPMENT PIPELINE AS OF 12/31/2020 Remaining to Estimated Rental be invested Type date of Floor area income Cost (2) > Q4 2020 (1) Project name Location of works In progress Property type completion (sq.m) (€m) YoC (€m) (€m) Pre-let LATÉCOÈRE Toulouse Construction ✓
Slide 28: A solid and diversified tenant portfolio
APPENDICES – OFFICE INVESTMENT A SOLID AND DIVERSIFIED TENANT PORTFOLIO % of annualised IFRS rental income as of 12/31/2020, 100% basis (equity-accounted companies on a Group share basis) Sport and entertainment 3% Other 2% Other 1% Small businesses/SMEs 10% Transport and warehousing 3% Health, educ
Slide 29: Healthcare portfolio by geography as of December 31, 2020
APPENDICES – HEALTHCARE INVESTMENT HEALTHCARE PORTFOLIO BY GEOGRAPHY AS OF DECEMBER 31, 2020 175 facilities €5.7bn (100% basis) – 58.3% owned by Icade 26 nursing homes • 92% in France, 8% in Europe (Italy and Germany) 1 nursing home under a preliminary • 86% short-term care facilities, 14% nursing h
Slide 30: Healthcare: a favourable market outlook
APPENDICES – HEALTHCARE INVESTMENT HEALTHCARE: A FAVOURABLE MARKET OUTLOOK Growth potential for Healthcare Investment (in France and Europe) Non-cyclical +29 million A growing market fundamentals seniors over 80 in Europe by 2050 based on a growing need Increased +9.2% for 2020 ONDAM (1), Healthcare
Slide 31: Consistently good yields
APPENDICES – HEALTHCARE INVESTMENT CONSISTENTLY GOOD YIELDS Renewed investor demand The German market is becoming increasingly popular • New entrants (Lifento, Cofinimmo, Cardif/EDF Invest) • Germany has been less impacted by the first wave of Covid-19 (lower mortality rates, nursing homes less affe
Slide 32: Healthcare development pipeline
APPENDICES – HEALTHCARE INVESTMENT HEALTHCARE DEVELOPMENT PIPELINE Number of Total Remaining to Yield beds and investment (1) be invested on cost (2) Type Operator City/town places (€m) (€m) (YoC) Completion Pre-let PROJECTS STARTED 4,202 450.9 351.7 5.5% 100% Incl. France 2,036 186.4 94.9 100% Gran
Slide 33: Implied yields of operating assets
APPENDICES – PROPERTY INVESTMENT IMPLIED YIELDS (1) OF OPERATING ASSETS (Group share) 7.5% 7.5% 7.3% 5.5% 5.5% 5.4% 5.4% 5.3% 5.3% 5.0% 5.0% 48% Offices Business parks Healthcare TOTAL PROPERTY INVESTMENT 12/31/2018 12/31/2019 12/31/2020 INVESTOR PRESENTATION (1) Annualised net rental income from le
Slide 34: Lease expiry schedule for the property investment divisions
APPENDICES – PROPERTY INVESTMENT LEASE EXPIRY SCHEDULE (1) FOR THE PROPERTY INVESTMENT DIVISIONS (IFRS RENTAL INCOME) Office Investment Healthcare Investment Resilient leasing activity in 2020 Rents assured well into the future • Renewed leases: 54 leases renewed in 2020, i.e. 97,825 sq.m WAULT to
Slide 35: An active liability management
APPENDICES - CREDIT HIGHLIGHTS AN ACTIVE LIABILITY MANAGEMENT Debt maturity schedule including transactions completed in January 2021 Transactions carried out (in €m) in 2020 and Q1 2021 Repaid Bond issues : New issue o 2020 : Icade Santé: €600m, 10 years, 1.375% 1 548 (1) 736 o Jan 2021 : Icade: €6
Slide 36: Continued focus on sustainable finance
APPENDICES - CREDIT HIGHLIGHTS CONTINUED FOCUS ON SUSTAINABLE FINANCE Icade’s inaugural Green Bond Icade Santé’s Social Bond 2 new RCF lines signed on H1 2020 issued in 2017 issued in 2020 for a total of €450m A Green Bond meeting the highest The first Corporate Social Bond • 7-year €300m green RCF
Slide 37: Key indicators
APPENDICES - CREDIT HIGHLIGHTS KEY INDICATORS • Average debt maturity at close to 6 years • Average cost of debt down again (6 bps) 7 3,00% 6 2,50% 6.6 6.5 6.4 6.4 2.71% An optimized 5 5.9 2,00% 4 2.18% 4.5 1,50% debt structure 3 1,00% 1.59% 1.55% 1.54% 1.48% 2 1 0,50% 0 0,00% 12/31/2015 12/31/2016
Slide 38: Icade's CSR policy: positive 2020 results
APPENDICES – CSR ICADE’S CSR POLICY: POSITIVE 2020 RESULTS CSR performance recognised 2020 BBCA ranking -40% in CO2 100% of business parks intensity for Office and 33% of new builds Icade Investment between 2015 and 2020 have a net positive impact on biodiversity among the top 3 low-carbon developer
Slide 39: Spotlight on Urban Odyssey: Icade's start-up studio
APPENDICES - CSR SPOTLIGHT ON URBAN ODYSSEY: ICADE’S START-UP STUDIO CONTINUES TO GROW! 3 new start-ups in 2020 and first business achievements 3 new projects Focus on business advances and synergies with Icade Bespoke local carbon offset platform Automated land detection • An active role in Icade’s
Slide 40: Low carbon, a top priority
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY LOW CARBON, A TOP PRIORITY 2005 2020 2010 2017 2019 A well-established 1st private service … Promoting low- sector building in 1st green 1st developer to 2019-2022 Strategic Plan: low carbon, carbon living: track record Fra
Slide 41: A clear strategy: from measurement to offsetting
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY A CLEAR STRATEGY: FROM MEASUREMENT TO OFFSETTING, THROUGH HIGHER GOALS FOR EACH BUSINESS LINE Measure our Avoid/reduce emissions to move A continuous 1 carbon footprint 2 towards a 1.5°C pathway 3 improvement process Office
Slide 42: #1: We measure our carbon footprint
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY #1:WE MEASURE OUR CARBON FOOTPRINT Icade’s total emissions in 2020 OFFICE INVESTMENT 6,6% of CO2 emissions from energy consumption by office tenants (1) HEALTHCARE INVESTMENT 212,644 PROPERTY DEVELOPMENT 25,1% 68,3% tonnes
Slide 43: #2: Moving towards a 1.5°C pathway through higher goals
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY #2: MOVING TOWARDS A 1.5°C PATHWAY THROUGH HIGHER GOALS FOR EACH BUSINESS LINE OFFICE PROPERTY HEALTHCARE CORPORATE INVESTMENT DEVELOPMENT INVESTMENT -45% reduction in carbon 100% of offices over intensity between 2015 Set
Slide 44: #3: An ambitious and responsible carbon offsetting policy
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY #3: AN AMBITIOUS AND RESPONSIBLE CARBON OFFSETTING POLICY Started in 2020! BE GREEN 16,000 tonnes (1) of CO2 10 hectares of forest 85 kilometres from Nantes An unwavering approach • Complementary Carbon offsetting (2) can b
Slide 45: Office property investment: already aligned with a 1.5°C pathway
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY OFFICE PROPERTY INVESTMENT: ALREADY ALIGNED WITH A 1.5°C PATHWAY -45% -40% Reduction in CO2 emissions Goal of reducing the carbon intensity of buildings between 2015 and 2020 Measures taken between 2015 and 2025 • Investmen
Slide 46: Office property investment: 5 main carbon reduction methods
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY OFFICE PROPERTY INVESTMENT: 5 MAIN IDENTIFIED CARBON REDUCTION METHODS (in kg CO2/sq.m/year) 25 20 15 -45% 10 5 Carbon emissions from building use Controlled carbon reduction method Partially controlled or uncontrolled carb
Slide 47: Office property investment: 2 low-carbon showcases
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY OFFICE PROPERTY INVESTMENT: 2 SHOWCASES REFLECTING ICADE’S LOW-CARBON CONSTRUCTION EXPERTISE Pulse in Saint-Denis Origine in Nanterre 1,108 kg CO2/sq.m hybrid timber-concrete structure (36% timber) limited CO2 emissions, cl
Slide 48: Residential property development: areas for improvement
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY RESIDENTIAL PROPERTY DEVELOPMENT: VARIOUS AREAS FOR IMPROVEMENT, MAINLY ASSOCIATED WITH BUILDING USE Target: 50% of new homes with the E2C1 label by 2022 CO2 emissions of residential buildings Impact of proposed actions on
Slide 49: Office property development: areas for improvement
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY OFFICE PROPERTY DEVELOPMENT: VARIOUS AREAS FOR IMPROVEMENT, MAINLY ASSOCIATED WITH MATERIALS Target: 100% of new offices > 5,000 sq.m with the E2C1 label by 2022 CO2 emissions of office buildings Impact of proposed actions
Slide 50: Property development: ramp up low-carbon construction (1/2)
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY PROPERTY DEVELOPMENT: RAMP UP LOW-CARBON CONSTRUCTION (1/2) Higher goals Measures taken: 50% 100% • Carbon impact assessment performed during the design phase for 100% of projects starting in 2021 of homes of offices over 5
Slide 51: Property development: ramp up low-carbon construction (2/2)
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY PROPERTY DEVELOPMENT: RAMP UP LOW-CARBON CONSTRUCTION (2/2) Creation of the Urbain des Bois, a new subsidiary specialising in industrial timber construction relying on the expertise New housing solutions acquired at the Urb
Slide 52: Healthcare property investment: driving low-carbon strategy of providers
APPENDICES – CSR: ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5°C PATHWAY HEALTHCARE PROPERTY INVESTMENT: ICADE DRIVES THE LOW-CARBON STRATEGY OF HEALTHCARE PROVIDERS Assisting healthcare providers in implementing the service sector property decree in line with a +1.5°C target Measures taken: • R