Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Day (February 2024)
72 slides from Icade Sa's investor day presentation, Feb 19, 2024
Slide 1: ReShapE – Icade Investor Day
Icade Investor Day February 19th, 2024 ReShapE PARIS ORLY-RUNGIS BUSINESS PARK (Val-de-Marne)
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
AGENDA Introduction: our ambition 1. Adapt office portfolio to new demands 2. Accelerate diversification 3. Develop and invest in 2050 city 4. Maintain solid financial policy Concluding remarks 2024 Investor Day 3
Slide 4: Introduction: Our Ambition
INTRODUCTION: OUR AMBITION PARIS ORLY RUNGIS BUSINESS PARK (Val-de-Marne) 2024 Investor Day 4
Slide 5: Who we are: 70-year legacy of developing assets & neighborhoods
INTRODUCTION: OUR AMBITION Who we are 1 70-year legacy of developing assets & neighborhoods through the cycles Both a responsible developer and investor under one single roof with more than 20 2 years of commitment to ESG best practices Resilient existing portfolio with 85% of offices fit for future
Slide 6: Reinventing the city in response to new needs and challenges
INTRODUCTION: OUR AMBITION Reinventing the city in response to new needs and challenges AT DISTRICT SCALE AT ASSET LEVEL Need for centrality, local access Quality of life to amenities, transportation hubs, Flexibility Remote work & flex spaces services, leisures Change of uses Shift towards more sus
Slide 7: Acting as a responsible and integrated player throughout the value chain
INTRODUCTION: OUR AMBITION Acting as a responsible and integrated player throughout the value chain • Unique access to lands & local communities • Recognized expertise to develop large and complex mixed-use projects • Strong track record in multi-asset classes (e.g. housing, offices, light industria
Slide 8: Resilient and already diversified base of assets fit for future
INTRODUCTION: OUR AMBITION Resilient and already diversified base of assets fit for future As of December 31, 2023 Offices 82% €5.3bn €5.3bn of offices, of which 86% are already well-positioned and fit for future Total Portfolio(1) €6.5bn(2) Portfolio already diversified (€6.8bn on 100% basis) Light
Slide 9: One of France's leading property developers, experienced in mixed-use projects
INTRODUCTION: OUR AMBITION One of France’s leading property developers, experienced in mixed-use projects As of December 31, 2023 Residential 78% €1.0bn 6th property developer in France(2) with more than 5,000 units per year Revenues Diversified expertise in residential €1.3bn and commercial segment
Slide 10: Our 2024-2028 plan
INTRODUCTION: OUR AMBITION Our 2024-2028 plan Adapt office portfolio to new demands Accelerate diversification • Assets and tailor-made offering suited to • Light industrial clients’ needs • Student housing • Pipeline focused on selective projects • Data Centers • Reconversion/sale of specific asset
Slide 11: Adapt office portfolio to new demands
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS ORIGINE (Nanterre, Hauts-de-Seine) 2024 Investor Day 11
Slide 12: Strong occupier appetite for well-located buildings at the highest standards
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Strong occupier appetite for well-located buildings at the highest standards Good • 71%(1) of relocating companies opted for better connected places in 2022 (local or regional transport hubs) centralities • c. 2/3 of the transactions over 5,000 sq.m took plac
Slide 13: 86% of our offices are well-positioned to changing uses and expectations
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS 86% of our offices are well-positioned to changing uses and expectations Valuation as of December 31, 2023 (in €bn, Group share) ORIGINE High quality and resilient assets Nanterre Préfecture (Hauts-de-Seine) fitted to new demands Well- • Good business central
Slide 14: €4.6bn of well-positioned offices located in several French key hubs
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS €4.6bn of well-positioned offices located in several French key hubs La Défense €0.4bn, 9% 1st ring 72 assets €4.6bn GAV c.1.0M sq.m €0.6bn, 13% Portes de Paris business park(2) HYFIVE Paris region 88%(4) LE V Paris(1) 30%(4) €4.1bn GAV Nanterre Nanterre 28%
Slide 15: Innovative solutions tailored to meet our clients' needs
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Innovative solutions tailored to meet our clients’ needs Solar Energy production Mobile App to improve Monitoring space with new tools user experience to improve building’s performance New ways of working consulting solution Rental Rental of spaces sq.m sq.m
Slide 16: A growing services offering, with strong environmental focus
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS A growing services offering, with strong environmental focus 2021: New commitments with our tenants 2019: First Solar panel 2024: Smart Building 200,000 sq.m of surface with 9,400 sq.m of photovoltaic panels Leases with Climate Criteria Almost 6,000 sensors i
Slide 17: Solid operational KPIs for well-positioned offices
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Solid operational KPIs for well-positioned offices, limited downside on future renewals €244m IFRS annualized rents(1) from well-positioned assets… As of December 31, 2023 Well-positioned for well-positioned offices Offices Office 82% Portfolio Rents €244m Fi
Slide 18: Confirmed demand for these well-positioned assets in 2023
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Confirmed demand for these well-positioned assets in 2023 132,000 sq.m 47% €32m signed or renewed in 2023 of new tenants Annualized IFRS rent 3 assets reaching 100% Financial Occupancy Rate during 2023 ORIGINE (Nanterre, Hauts-de-Seine) M FACTORY (Marseille,
Slide 19: Défense 4/5/6 – Ability to swiftly attract new tenants in Nanterre
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS DÉFENSE 4/5/6 – Demonstrated ability to swiftly attract new tenants in Nanterre • Groupama departure in September 2023 • Major part relet within 2 months 15,900 sq.m 84% let €4.0m Annualized rent BREEAM(1) Very Good SBTi 2030 planned(2) Energy Efficiency Regu
Slide 20: Montreal (Rungis) – Responsiveness to evolving tenant needs
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Montreal (Rungis) – An example of Icade’s responsiveness to evolving tenant needs • Property fully let since 2012 by U Enseigne Coopérative • Lease renewed in Q1 2023 for 9 years • Consultancy services by Icade > 20,000 sq.m(1) 100% let €4.1m Annualized rent
Slide 21: Focused pipeline on accretive investments on prime assets
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Focused pipeline on accretive investments on prime assets 29-33 Prime offices and retail / Rooftop Ephemeral retail leasing during Olympic Games Delivery Champs-Elysées 2027 Paris Triangle d’Or Best-in-class environmental certification Seed & Bloom Prime offi
Slide 22: 29-33 Champs-Elysées – An emblematic project in Paris CBD
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS 29-33 Champs-Elysées – An emblematic project in Paris CBD • Building permit obtained in December 2023 / Floors free • 18-months leases for c.€3m 12,100 sq.m 7,300 sq.m of offices and 4,800 sq.m of retail €95m(1) Capex +160% Uplift in rents(2) Best ESG labels
Slide 23: A limited portfolio of assets to-be-repositioned in the mid-term
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS A limited portfolio of assets to-be-repositioned in the mid-term In % of GAV of Assets To-be-repositioned To-be-repositioned 18% Lease or SPA signed 1% €53m / building permit obtained Ongoing 51% IFRS 16% annualized portfolio Lease or Studies to be launched r
Slide 24: Helsinki-Iéna – Reposition an outdated office building
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Helsinki-Iéna – Reposition an outdated office building to offer new services on Rungis Park • Multilet office building redeveloped into a 3* hotel and a 4* residential hotel • Expansion of the successful scheme Monaco, 4* hotel delivered in 2019 10,600 sq.m 1
Slide 25: Etoile Park – Develop new appealing projects in Nanterre
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Etoile Park – Develop new appealing projects in Nanterre • Office scheme to be repositioned into a school upon tenant departure planned in 2024 • Attractive area for higher education • Close to public transportation 5,600 sq.m €24m Capex 6.2% YoC Delivery 202
Slide 26: Arcade (Plessis-Robinson) – Transform offices into residential project
1. ADAPT OFFICE PORTFOLIO TO NEW DEMANDS Arcade (Plessis-Robinson) – Transform office buildings into a large-scale residential project Office to residential transformation by the development division starting in 2024 23,900 sq.m converted into 649 housing units Targeted IRR 6.8% 4,735 sq.m of soil u
Slide 27: Accelerate diversification
2. ACCELERATE DIVERSIFICATION PARIS ORLY-RUNGIS BUSINESS PARK (Val-de-Marne) 2024 Investor Day 27
Slide 28: Icade's expertise in three growth segments
2. ACCELERATE DIVERSIFICATION Highlighting Icade’s expertise in three growth segments 3 priority growth segments Light industrial Student housing Data Centers LENÔTRE CULINARY SCHOOL (Paris Orly-Rungis Business Park) CITYPARK (Levallois-Perret) EQUINIX (Portes de Paris Business Park) 2024 Investor D
Slide 29: Light industrial
2.1 LIGHT INDUSTRIAL LENÔTRE CULINARY SCHOOL (Paris Orly-Rungis Business Park, Val-de-Marne) 2024 Investor Day 29
Slide 30: Light industrial: an asset class preserved from overproduction
2.1. LIGHT INDUSTRIAL Light industrial: an asset class preserved from overproduction Strong structural demand for light industrial properties… … combined with scarce supply induce continued increase in rents Million sq.m Decreasing immediate supply since 2019 vs. other asset class (offices, 1.9 reta
Slide 31: Icade's diversified light industrial portfolio in Business Parks
2.1. LIGHT INDUSTRIAL Icade’s diversified light industrial portfolio in Business Parks… A long-standing diversified portfolio In two Business Parks(1) very close to Paris (as of December 31, 2023) (as of December 31, 2023) Portes de Paris Business Park 54% Warehouse 2% Data Center 12% Workshops GAV
Slide 32: Renowned for sustainability and best-in-class services offering
2.1. LIGHT INDUSTRIAL … renowned for their sustainability and best-in-class services offering… Services for 130 events for users(1) -38% carbon reduction(2) 30,000 Business users 40% design for CSR issues Biodiversity protection New mobility (electric buses, Bycycle), fitness, Community management,
Slide 33: Attracting international players from various industries
2.1. LIGHT INDUSTRIAL … attracting international players from various industries Food Luxury Studio Workshops Brands Lenôtre culinary school, Paris Orly-Rungis Business Park AMP Visual TV, Portes de Paris Business Park Studio Rouchon, Portes de Paris Business Park 2024 Investor Day 33
Slide 34: Recording growth since 2020 & confirmed performance in 2023
2.1. LIGHT INDUSTRIAL Recording growth since 2020 & confirmed performance in 2023 Historical financial occupancy rate > 90% Strong ERV growth ERV €/sq.m (average) 93.9% 91.9% 92.1% 163 91.4% 155 148 141 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2020 12/31/2021 12/31/2022 12/31/2023 As of Dec
Slide 35: Unlocking the industrial potential of Paris Orly-Rungis Business Park
2.1. LIGHT INDUSTRIAL Unlocking the industrial potential of the Paris Orly-Rungis Business Park #Projects Additional investment Est. Rent Yield on cost 5(1) €150m €14m c.7% Paris Orly-Rungis Business Park (1) The project identified in transparent blue (called Esterel) combines residential and light
Slide 36: Ottawa – A future 3-storey light industrial asset
2.1. LIGHT INDUSTRIAL Ottawa – A future 3-storey light industrial asset 2024 Q2 2024 Q4 2025 Q1 2026 Q3 Works Phase Building permit Building permit Construction works Delivery application & approval instruction 17,100 sq.m c.€50m Estimated capex c.€3.4m Expected rent c.6.5% Targeted YoC 2024 Investo
Slide 37: Student housing
2.2 STUDENT HOUSING CITYPARK (Levallois-Perret, Hauts-de-Seine) 2024 Investor Day 37
Slide 38: Student housing: strong demand for high quality supply
2.2. STUDENT HOUSING Student housing: strong demand for high quality supply Structurally undersupplied market… … representing a clear opportunity for Icade Current Supply & Demand dynamics Current production not closing the gap Students 2,935k students Attractive value proposition for all stakeholde
Slide 39: Icade shows a solid track-record as a property developer
2.2. STUDENT HOUSING Icade shows a solid track-record as a property developer t/o delivered t/o planned Total (since 2015) (until 2028) # of student housing properties 25 16 9 # of units 6,362 4,057 2,305 Turnover tax incl. (€m) 823 517 306 URBAN IVRY – 769 units 2022 TOULOUSE SEBASTOPOL – 485 units
Slide 40: Campus ECLA (Villejuif) – A new generation student housing
2.2. STUDENT HOUSING Campus ECLA (Villejuif) – A new generation student housing Operation carried out in partnership with UXCO Group 23,500 sq.m Student residences & coliving 1,011 beds - 19,500 sq.m Shops 400 sq.m Schools & Offices 2,600 sq.m 84 Parking lots Delivered in Dec. 2022 2024 Investor Day
Slide 41: Vallée Pétra (Créteil) – State-of-the-art project under way
2.2. STUDENT HOUSING Vallée Pétra (Créteil) – State-of-the-art project under way Student housing operation carried out in partnership with the client The Boost Society (ex KLEY) 14,148 sq.m Student residences & coliving 571 beds - 13,500 sq.m Schools/Offices 665 sq.m 99 Parking lots Delivery in Dec.
Slide 42: CityPark (Levallois-Perret) – Transform a complex building
2.2. STUDENT HOUSING CityPark (Levallois-Perret) – Transform a complex building & develop major student housing Transformation of an obsolete commercial building into a modern and green mixed-use program around student life 20,300 sq.m Student residences & coliving 322 beds - 8,800 sq.m Shops 1,500
Slide 43: Identified student housing project in the North of Paris
2.2. STUDENT HOUSING Identified student housing project in the North of Paris #Project Additional investment Est. Rent Yield on cost 1 c.€75m €4.3m >5% Condorcet University Portes de Paris Business Park 2024 Investor Day 43
Slide 44: Data Centers
2.3 DATA CENTERS PA6 DATA CENTER (Portes de Paris Business Park) 2024 Investor Day 44
Slide 45: A growing need for digital infrastructures
2.3. DATA CENTERS A growing need for digital infrastructures Continued growth in supply in Paris Region… … absorbed by strong structural demand Data Center Market size and take up in Paris New infrastructures quickly absorbed by the market in Paris region 500 (in 2022, 63 MW power new supply for 46
Slide 46: Our competitive edge in Data Centers segment
2.3. DATA CENTERS Our competitive edge in Data Centers segment Close relationship with local authorities Know-how in building Data Centers & track record with the main operators Expertise in integrating a Data Center into an overall neighborhood project Land banks in two main attractive areas for hy
Slide 47: Attractive development yields across different positionings
2.3. DATA CENTERS Attractive development yields across different positionings 1 2 current positioning Land and building DC operation lease Powered shell JV with a Full-fledged (building shell + power supply) DC operator operator Building shell Power supply Target yield c. [5-7]% c. [8-10]% c. [10-12
Slide 48: An existing asset class in a strategic location in Portes de Paris
2.3. DATA CENTERS An already existing asset class in a strategic location in Portes de Paris Business Park Data at 100% as of December 31, 2023 2 MW 2 MW 5 1 Operational Project in the Data Centers committed pipeline WALB 3.9 years 9 years 7.4 MW 6 MW Total area 27,478 sq.m 7,490 sq.m Headline rent/
Slide 49: High environmental ambitions on Icade's new Data Centers
2.3. DATA CENTERS High environmental ambitions on Icade’s new Data Centers Example of 10MW Data Center developed with Equinix in Aubervilliers Excellent Targeted, Targeted PUE(1) a unique performance of 1.25 below European in France for a Data Center and worldwide average(2) 1,58 LEED Silver 1,46 On
Slide 50: Our land banks – A unique playground for Data Centers
2.3. DATA CENTERS Our land banks – A unique playground for Data Centers #Projects(1) Additional investment Est. Rent Yield on cost #Projects Additional investment Est. Rent Yield on cost 2 €76m €5.2m > 6% 1 c.€280m c.€20m > 6.5% Portes de Paris Business Park Paris Orly-Rungis Business Park (1) 1 pro
Slide 51: New hyperscale Data Center project in Rungis
2.3. DATA CENTERS New hyperscale Data Center project in Rungis 2023 Q4 2024 Q2 2025 2027 2028 2029/2030 Works Phase Operation Power supply Building permit Building permit Final approvals Construction works Delivery instruction ongoing application & approval (electrical network, etc.) (shell & networ
Slide 52: Develop and invest in 2050 city
DEVELOP AND INVEST 3. IN 2050 CITY ESTEREL NORD (Paris Orly-Rungis Business Park, Val-de-Marne) 2024 Investor Day 52
Slide 53: Our conviction: Mixed-Use Sustainable
3. DEVELOP AND INVEST IN 2050 CITY Our conviction Mixed-Use Sustainable 2024 Investor Day 53
Slide 54: Mixed-use city
3.1 MIXED-USE CITY ATHLETES VILLAGE (Saint-Denis, Seine-Saint-Denis) 2024 Investor Day 54
Slide 55: Portes de Paris Area – Iconic mixed-use district
3.1. MIXED-USE CITY Portes de Paris Area – Iconic mixed-use district and showcase of Icade’s expertise Condorcet University Data Center Mixed-use (Student Housing & Residential) Residential 2024 Investor Day 55
Slide 56: TIME – A mixed-use development project on a historical land bank
3.1. MIXED-USE CITY TIME – A mixed-use development project on an historical land bank Project designed as a developer, thanks to our long-standing investor relationship with the authorities 9,200 sq.m Residential 104 apartments(1) Offices / Shops / Health center / Roof top 1,120 sq.m of green spaces
Slide 57: Rungis Area – Industrial and commercial district
3.1. MIXED-USE CITY Rungis Area – An industrial and commercial district adjacent to the residential neighborhood Rungis International Market Residential area Data Center Light industrial Hotel(1) Residential(2) Office(1) (1) Projects already started included in the development pipeline – Helsinki/Ie
Slide 58: Esterel Nord – Residential/industrial project as developer and investor
3.1. MIXED-USE CITY Esterel Nord - A residential/industrial project lead as both a developer and an investor From 4 single-use buildings of 20,947 sq.m to a mixed-use district of 38,400 sq.m No demolition Increase of green spaces from 9,700 sq.m (23%) to 13,500 sq.m (31%)(1) 11,000 sq.m light indust
Slide 59: Sustainable city
3.2 SUSTAINABLE CITY LA PLATEFORME (Marseille, Bouches-du-Rhône) 2024 Investor Day 59
Slide 60: Building a low carbon city
3.2. SUSTAINABLE CITY Building a low carbon city • A low carbon investment plan for 2024-2030: €145m Improved building performance • >95% of well-positioned offices compliant in 2030 with SBTi and Energy Efficiency Regulation in 2030 Low carbon building 1/3 from timber & bio-sourced buildings in 203
Slide 61: Projects involving start-ups, a differentiating factor in tenders
3.2. SUSTAINABLE CITY Projects involving start-ups, a differentiating factor in tender process Guillot-Bourdeix building (ex-CIRC) – Lyon Bellecombe tertiary building – Lyon A co-development (Icade and An office building of 5,000 sq.m Redman) of a 8,000 sq.m – using Terrio as low carbon building, us
Slide 62: Building a city promoting nature and biodiversity
3.2. SUSTAINABLE CITY Building a city promoting nature and biodiversity Biodiversity Internal advanced method established in 2023 with ecologists and based on assessment recognized standards Rewild existing • Nature-boosting solutions for 90% of buildings(1) by 2026 France urbanized areas • Improved
Slide 63: Village des athlètes – Low carbon expertise and innovations at scale
3.2. SUSTAINABLE CITY Village des athlètes – Low carbon expertise and innovations at scale Low-carbon building: carbon footprint target of 740 kg CO2/sq.m floor area (RE2031 level), mixed timber/concrete, 100% wood-frame facades with wood wool insulation Mixed-use neighborhood 52 social housing unit
Slide 64: Blagnac – A project valuing nature, urban planning & architecture
3.2. SUSTAINABLE CITY Blagnac – A project valuing nature, urban planning & architecture Urbain des Bois, Synergies Urbaines, Icade Promotion and CDC Habitat appointed by Klépierre in Dec. 2023 to develop a 38,000 sq.m neighborhood on 3.2 ha Adjacent to the shopping center owned by Klépierre/Cardif
Slide 65: La Jallère – A major urban regeneration project
3.2. SUSTAINABLE CITY La Jallère – A major urban regeneration project Reconversion of a 35 ha commercial district next to Bordeaux lake by Urbain des Bois A broad and mixed offering Promote soft mobility: tramway access, silo Parking, increased use of bicycles, accessible services Low-carbon program
Slide 66: Maintain solid financial policy
MAINTAIN SOLID 4. FINANCIAL POLICY ORSUD (Gentilly, Val-de-Marne) 2024 Investor Day 66
Slide 67: Maintaining a solid balance sheet
4. MAINTAIN SOLID FINANCIAL POLICY Maintaining a solid balance sheet… • LTV ratio including duties [30-35]% Debt ratios • Robust ICR level > c.4x • Low Net debt / EBITDA < c.9x • Large amount of undrawn credit lines Liquidity • Proactive management of debt maturities • Diversified funding structure
Slide 68: Well balancing investment and debt repayment
4. MAINTAIN SOLID FINANCIAL POLICY … by well balancing investment and debt repayment Proceeds(1) Uses(1) €4.2bn €4.2bn Healthcare disposal Capital redeployment H2 2023 c.€1.6bn c.€1.8bn Healthcare disposal Debt repayment 2024-2026 c.€1.3bn(2) c.€1.7bn Other disposals Dividends 2024-2028 on Healthcar
Slide 69: €1.8bn redeployment plan over 2024-2028 to generate €120m of additional revenues
4. MAINTAIN SOLID FINANCIAL POLICY €1.8bn redeployment plan over 2024-2028 to generate €120m of additional revenues in €bn c.€1.8bn Development capex 0.4 c. €0.9bn Target yield 0.5 Target yield [4-7%] [>6%] 0.2 , Target yield 0.4 [5%] 0.3 Started pipeline Diversification Reconversion Potential acqui
Slide 70: Concluding remarks
CONCLUDING REMARKS MONTRÉAL (Paris Orly-Rungis Business Park, Val-de-Marne) 2024 Investor Day 70
Slide 71: Leveraging strong foundations and diversification to ReShapE cities
CONCLUDING REMARKS Leveraging on our strong foundations and successful diversification… … to ReShapE cities and tackle fundamental challenges in mixed-use and sustainability 1 Shift from two business lines to one holistic approach 2 Embrace mixed-use trends to further diversify our portfolio 3 Lever
Slide 72: Q&A
Q&A HILTON GARDEN INN (Paris Orly-Rungis Business Park, Val-de-Marne) 2024 Investor Day 72