Slide 1: 2023 Half-Year Results
2023 HALF-YEAR RESULTS FRESK (Paris 15th district & Issy-les-Moulineaux, Hauts-de-Seine) Monday, July 24, 2023
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 Introduction Icade Santé disposal: Stage 1 closed 1 2 H1 2023 operational performance 3 H1 2023 financial results 4 Today’s state of play 5 Outlook & Conclusion Appendices 2023 Half-Year Results 3
Slide 4: Introduction
INTRODUCTION ORIGINE (Nanterre, Hauts-de-Seine) 2023 Half-Year Results 4
Slide 5: Icade well positioned to address current market challenges
INTRODUCTION Icade well positioned to address current market challenges 1 2 3 4 Icade Santé disposal Ongoing review on Stage 1 A strengthened assets and … preparing completed in July balance sheet businesses the ground for the (€1.4bn cash-in) and credit profile considering current coming strategic
Slide 6: Icade Santé disposal: Stage 1 closed
1 ICADE SANTÉ DISPOSAL: STAGE 1 CLOSED POLYCLINIQUE REIMS-BEZANNE (Marne) 2023 Half-Year Results 6
Slide 7: Balance sheet reinforced post Healthcare transaction (stage 1)
1. ICADE SANTÉ DISPOSAL: STAGE 1 CLOSED Balance sheet reinforced post Healthcare transaction (stage 1)… Before March 13 June 13 July 5 Dec. 2025 Announcement Signing Closing Completion of Healthcare of the SPA of Stage 1 of Stages 2 & 3 divestment Proceeds Strengthened Streamlined & Dividends Balanc
Slide 8: More to come with stages 2 & 3
1. ICADE SANTÉ DISPOSAL: STAGE 1 CLOSED … More to come with stages 2 & 3 Stage 2 Stage 3 [June 2023–December 2025] [September 2023–December 2024] Icade Santé: Disposal of the remaining stake through IHE: Sale of assets managed by Primonial • Annual inflows from funds managed by Primonial REIM • Entr
Slide 9: H1 2023 Operational Performance
2H1 2023 OPERATIONAL PERFORMANCE PARC ORLY RUNGIS (Val-de-Marne) 2023 Half-Year Results 9
Slide 10: Commercial Investment
2.1 COMMERCIAL INVESTMENT PULSE (Saint-Denis, Seine-Saint-Denis) 2023 Half-Year Results 10
Slide 11: A quiet investment and leasing market in H1
2.1. H1 OPERATIONAL PERFORMANCE – COMMERCIAL INVESTMENT A quiet investment and leasing market in H1 Leasing market Investment market H1 2023 take-up in Paris region: 0.8m sq.m (-22%(1)) Total investment volume in France in H1 2023 of €7.8bn (-42%(1)) Expected take-up in 2023: 1.9m sq.m 73% of volume
Slide 12: A solid operational first-half, supported by diversified model and indexation
2.1. H1 OPERATIONAL PERFORMANCE – COMMERCIAL INVESTMENT A solid operational first-half, supported by a diversified business model and indexation Positive impact Solid leasing activity in H1 2023 of indexation EDF Renewables, c.100,000 sq.m Origine building 100% New and renewed leases in Nanterre Sig
Slide 13: Continued disposals; no additional need in 2023
2.1. H1 OPERATIONAL PERFORMANCE – COMMERCIAL INVESTMENT Continued disposals; no additional need in 2023 Total amount of 2023 disposals: c.€180m c.€140m c.€40m EKO ACTIVE GRAND CENTRAL NAUTILUS RESIDUAL RESIDENTIAL Marseille, 2nd district Marseille, 1st district Bordeaux PORTFOLIO 8,200 sq.m 8,500 sq
Slide 14: Pipeline: limited investments in secure, sustainable & diversified projects
2.1. H1 OPERATIONAL PERFORMANCE – COMMERCIAL INVESTMENT Pipeline: limited investments in secure, sustainable & diversified projects €676m €319m c.€37m 100% of projects Remaining capex aiming for HQE / BREEAM Committed pipeline Potential rents with an Excellent rating Over 3 years 2 new projects in H
Slide 15: Property Development
2.2 PROPERTY DEVELOPMENT DESTINATION GAVY (Saint-Nazaire, Loire-Atlantique) 2023 Half-Year Results 15
Slide 16: Residential development market adjusting to new macro-economic environment
2.2. H1 OPERATIONAL PERFORMANCE – PROPERTY DEVELOPMENT Residential Development market adjusting to new macro-economic environment Market data 1 Rising and persistently high interest rates(1) Order slowdown Impact on credit access for first-time buyers (solvency reduced by 25%(2)) c.-40% YoY(3) Tod
Slide 17: Icade Promotion operationally proactive in a slowing market
2.2. H1 OPERATIONAL PERFORMANCE – PROPERTY DEVELOPMENT Icade Promotion operationally proactive in a slowing market… 1 Bloc sales in residential: Resilient total orders Focus on bloc 1,066 units, €241m 2,129 units €582m sales -15% in volume -14% in value +19% in volume, +4% in value incl. -34% for in
Slide 18: Adapting its medium-term growth trajectory
2.2. H1 OPERATIONAL PERFORMANCE – PROPERTY DEVELOPMENT … and adapting its medium-term growth trajectory Backlog as of Dec. 2022 Securing FY 2023 revenue €1.84bn “58 VICTOR HUGO”: conversion of a hotel into 166 housing units in Neuilly-sur-Seine (Hauts-de-Seine) Backlog as of June 2023 €1.77bn Var. v
Slide 19: H1 2023 Financial Results
3H1 2023 FINANCIAL RESULTS OAK (Romainville, Seine-Saint-Denis) 2023 Half-Year Results 19
Slide 20: H1 financial statements: a new basis post Healthcare disposal
3. H1 2023 FINANCIAL RESULTS The Group H1 financial statements: a new basis post Healthcare disposal FY 2022 March 13 June 13 June 30 July 5 Exclusivity agreement Closing of stage 1 announcement SPA Healthcare Effective fully consolidated IFRS 5 IFRS 5 IFRS 5 deconsolidation Application of IFRS 5 co
Slide 21: Presentation of the NCCF on a proforma basis
3. H1 2023 FINANCIAL RESULTS Presentation of the NCCF on a proforma basis from June 30, 2023 NCCF on proforma basis excluding contribution of Healthcare (in €m) €2.70 per share €2.72 per share 204.7 206.3 €1.47 per share 111.2 (€1.25) -95(1) (1) The contribution of Healthcare activities and the rest
Slide 22: Group NCCF slightly up YoY
3. H1 2023 FINANCIAL RESULTS – INCOME STATEMENT Group NCCF slightly up YoY On a proforma basis +0.4% (per share) Commercial Investment: €99.6m 110.7 111.2 • Slight decrease in a context of disposals of more than (€1.46 per share) €1.1bn over the past 18 months +3.7 (€1.47 per share) 12.9 +0.6 • NCCF
Slide 23: Commercial Investment: resilient P&L indicators
3. H1 2023 FINANCIAL RESULTS – INCOME STATEMENT Commercial Investment: resilient P&L indicators Office Investment (in €m) 06/30/2023 06/30/2022 Change LFL change Gross rental income down by -2.1%: impact of disposals in 2022 and 2023 (€9m) Gross rental income 181.1 185.0 -2.1% +2.2% LFL: +2.2% Net t
Slide 24: Property Development: NCCF up +4.8%
3. H1 2023 FINANCIAL RESULTS – INCOME STATEMENT Property Development: NCCF up +4.8% 06/30/2023 06/30/2022 YoY change TOTAL (in €m) Residential Office TOTAL(2) TOTAL change Residential Office Economic revenue(1) 424.8 156.3 583.4 573.6 +1.7% -10.7% +61.1% Current economic operating profit/(loss) 19.6
Slide 25: Adjusted value in line with new financial environment
3. H1 2023 FINANCIAL RESULTS – VALUE OF THE COMMERCIAL PORTFOLIO & NAV Adjusted value in line with new financial environment HY 2023 change in fair value – Commercial Investment Division (Group share / excluding duties / in €m) -6.4% on a reported basis 7,726 7,234 Taking into account H1 office mark
Slide 26: EPRA NTA: €6bn out of which 23% already secured in cash
3. H1 2023 FINANCIAL RESULTS – VALUE OF THE COMMERCIAL PORTFOLIO & NAV EPRA NTA: €6bn out of which 23% already secured in cash (In € per share) €6,814m €6,011m NTA -11.8% (per share) 89.8 1.47 81.4 79.3 (9.8) (0.1) (2.1) Commercial Investment 45.7 & Property Development €38.2 Share price as of June
Slide 27: Even tighter control over future financial expenses
3. H1 2023 FINANCIAL RESULTS – LIABILITIES Even tighter control over future financial expenses Pre deconsolidation Post deconsolidation of Icade Santé of Icade Santé Even stronger hedging c.90% 4.7 years >95% 6.3 years position Hedged debt on Average maturity of Hedged debt on Average maturity of av
Slide 28: A strengthened liquidity position
3. H1 2023 FINANCIAL RESULTS – LIABILITIES A strengthened liquidity position to cope with the new financial environment Liquidity position as of June 2023, Icade debt maturity schedule (07/15/2023, in €bn)(2) post completion of Stage 1 5.6 years(3) €1.9bn 4.2 years(3) Post-deconsolidation Cash and c
Slide 29: LTV as of July 5: below 30%
3. H1 2023 FINANCIAL RESULTS – LIABILITIES LTV as of July 5: below 30% A significant reduction in net debt Improved LTV & Net debt-to-EBITDA ratio 12,0 10.9x Icade Santé 10.1x disposal 10,0 €2.9bn 40.1% 39.3% 8,0 6.5x (2) Net debt as of June 6,0 (after Stage 1 completion) 29.4%(1) vs. €6.6bn as of D
Slide 30: Today's State of Play
4 TODAY’S STATE OF PLAY LA PLATEFORME (Marseille, Bouches-du-Rhône) 2023 Half-Year Results 30
Slide 31: Adapting our portfolio to the new environment
4. TODAY’S STATE OF PLAY Adapting our portfolio to the new environment • High interest rate environment leading to greater selectivity and cost savings A new financial equation • Office take-up level toward a new normal • Yield decompression restoring risk premium and medium-term attractiveness • Ne
Slide 32: Leading to a new portfolio segmentation
4. TODAY’S STATE OF PLAY Leading to a new portfolio segmentation Former segmentation Use-based approach(1): a portfolio made up of 85% Offices Total portfolio valuation as of June 2023 €7.7bn (€7.2bn Group share) Offices 74% Offices 85% €5.7bn €6.5bn Others(2) 4% Others(2) 3% €0.3bn €0.2bn Land bank
Slide 33: Well Positioned Offices make up c.75% of total Office portfolio
4. TODAY’S STATE OF PLAY Well Positioned Offices make up c.75% of total Office portfolio Valuation as of June 2023 (in €bn) ORIGINE To be repositioned Nanterre 13% High quality and resilient assets fitted €0.8bn Well to new demands (good centrality, best-in-class Focus Conversion Office portfolio
Slide 34: Icade Promotion benefits from solid fundamentals and ability to adapt
4. TODAY’S STATE OF PLAY Development: Icade Promotion benefits from solid fundamentals and ability to adapt 1 Icade Promotion, (1) one of the market • A solidly anchored 6th in terms of revenue leaders 2 A well-established • Large-scale and mixed-use development projects know- how • Long standing &
Slide 35: Icade's role in transforming the urban landscape: an example in Marseille
4. TODAY’S STATE OF PLAY Icade’s role in transforming the urban landscape: an example in Marseille Icade actively involved in transforming the Euromed district in Marseille M FACTORY M LIFE 6,000 sq.m 129 of office space residential units 100% let Conversion of a land reserve Land acquired from Icad
Slide 36: Outlook & Conclusion
5 OUTLOOK & CONCLUSION ORSUD (Gentilly, Val-de-Marne) 2023 Half-Year Results 36
Slide 37: 2023 outlook
5. OUTLOOK & CONCLUSION 2023 outlook February 20, 2023 announcement 2023 rebased 2023 proforma NCCF per share(1) 2023 NCCF 2023 Stable to slightly up guidance Group NCCF excluding impact [€2.95 - €3.05] confirmed per share of 2023 disposals including impact of 2023 disposals and clarified 2023 divid
Slide 38: Conclusion
5. OUTLOOK & CONCLUSION Conclusion A unique financial profile: LTV: c.29% A solid set of H1 results, demonstrating once again resilient fundamentals A majority of high-quality assets and room for further development and repositioning A strong brand, 2 complementary businesses and CSR leadership Stra
Slide 39: Appendices
APPENDICES 6e ART LAFAYETTE (Lyon, Rhône) 2023 Half-Year Results 39
Slide 40: Take-up is recovering, a limited decline expected in the medium term
APPENDICES – OFFICE: PARIS REGION OFFICE MARKET Take-up is recovering, a limited decline expected in the medium term 1.4 1.9 2.1 1.9 Take-up in million sq.m in 2020 in 2021 in 2022 expected in 2023 -14% vs. 10-year average in the Paris Region Key trends and drivers of the large occupiers • Space opt
Slide 41: A quiet leasing activity in H1 2023, with bargaining power in favor of tenants
APPENDICES – OFFICE INVESTMENT A quiet leasing activity in H1 2023, with bargaining power in favor of tenants Paris CBD La Défense Western Crescent Inner Ring Outer Ring Physical vacancy rate 2.1% ▼ 15.0% ▲ 14.3% ▲ 14.4% ▲ c.5.2% (Q2 2023 vs. a year earlier) Historically low office vacancy Take-up 2
Slide 42: A slowing investment market
APPENDICES – OFFICE INVESTMENT A slowing investment market: investors are waiting a shift from the sellers on pricing 1 Direct Real Estate Investments in France (Commercial Real Estate, in €bn) Volumes keep slowing on H1 2023 €7.8bn invested in H1 2023 (-42% vs. H1 2022) in France 50 Offices remain
Slide 43: A portfolio concentrated in Paris region: c.89%
APPENDICES – PORTFOLIO OVERVIEW – OFFICE INVESTMENT A portfolio concentrated in Paris region: c.89% Paris region portfolio Land bank 1,616,653 sq.m – €6.4bn (1) c.500,000 sq.m(2) AREAS (IMMOSTAT) Extended Paris CBD area Left Bank Northeast Paris 11. SAINT-DENIS 10 10. GENTILLY ORIGINE Nanterre 68,01
Slide 44: Regional portfolio, a selective positioning in main regional cities
APPENDICES – PORTFOLIO OVERVIEW – OFFICE INVESTMENT Regional portfolio, a selective positioning in the main regional cities: 11% 235,000 11% €0.8bn(1) sq.m of the overall ORIANZ NEXT LAFAYETTE MILKY WAY Bordeaux, Gironde Lyon, Rhône Lyon, Rhône Lyon, Rhône Office portfolio • Prime locations LA FABRI
Slide 45: State of Play: preliminary focus on light industrials
APPENDICES State of Play: preliminary focus on light industrials as of end of June 2023 €705m valuation as of June 2023 100% at <15 km from Paris 360,000 sq.m Yield: 7.7% Excellent accessibility located in our Business Parks(1) ORLY-RUNGIS PORTES DE PARIS BUSINESS PARK A long-standing diversified po
Slide 46: State of Play: preliminary focus on Well Positioned Offices
APPENDICES State of Play: preliminary focus on Well Positioned Offices (73% of the Office portfolio) ORIGINE FRESK NEXT(2) Nanterre, Hauts-de-Seine Paris, 15th district / Lyon, Rhône 100%-let(1) - 66,500 sq.m Issy-les-Moulineaux (Hauts-de-Seine) 100%-let - 15,800 sq.m 90%-let - 20,500 sq.m Centralit
Slide 47: Terrasses de Nanterre, 19% of total portfolio value
APPENDICES – FOCUS NANTERRE-PRÉFECTURE Terrasses de Nanterre, 19% of total portfolio value, 100% occupancy rate Properties in operation Icade’s properties c.210,000 sq.m ÉTOILE DÉFENSE GRANDS PARK 4/5/6 AXES 19% of total portfolio value €420/sq.m(1) 2021 completions prime rent in the area ORIGINE WE
Slide 48: NEXT: significant value creation in Lyon Part-Dieu
APPENDICES – COMMERCIAL 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 Q4 2017 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q2 2024 Works Acqu
Slide 49: Development pipeline as of June 30, 2023
APPENDICES – OFFICE Development pipeline as of June 30, 2023 Rental Type Property Estimated date Floor area income (1) Cost(2) Project name Location of works type of completion (sq.m) (€m) YoC (€m) Pre-let GRAND CENTRAL Marseille Off-plan construction Office Q4 2023 8,479 35 100% M FACTORY Marseille
Slide 50: Key Figures
APPENDICES – OPERATIONAL PERFORMANCE OF BUSINESS LINES – OFFICE INVESTMENT Key Figures -6.7% valuation change on a like-for-like basis, 06/30/2023 12/31/2022 1 reflecting the market environment and higher financing rates Portfolio value (100%, excl. duties) €7.7bn €8.2bn 2 Higher yields driven by ma
Slide 51: An Office business model well protected against inflation
APPENDICES – OFFICE INVESTMENT An Office business model well protected against inflation Office portfolio index split – June 2023 (in % of headline rent) 100% ILC 6% Other indices 2% leases linked to indices with a strong inflation component. ILAT 78% ICC 14% Fully passed on to tenants Evolution of
Slide 52: A solid and diversified tenant portfolio
APPENDICES – OFFICE INVESTMENT A solid and diversified tenant portfolio % of annualised IFRS rental income as of 06/30/2023 By tenant profile By sector Transport & warehousing 3% Other Manufacturing, water & waste, Sport & entertainment 3% 1% electricity production, gas, Public sector 16% technical
Slide 53: Lease expiry schedule for the Commercial Investment Division
APPENDICES – PROPERTY DEVELOPMENT Lease expiry schedule for the Commercial Investment Division (IFRS rental income) Robust leasing activity in the H1 2023 with 100,000 sq.m renewed or signed • Renewals: 15 leases, i.e. 59,400 sq.m or €14m in annualised headline rental income, extended by +5.4 years
Slide 54: Property Development: a diversified and balanced customer typology
APPENDICES – PROPERTY DEVELOPMENT Property Development: a diversified and balanced customer typology Breakdown of orders by type of customers +4 pps 17.1% -0,3 pp 20.7% 30.1% 29.8% A more balanced customer base in June 2023 with 24% of individuals 06/30/2022 16.2% 06/30/2023 and 25% of institutional
Slide 55: Reconciliation of the 2022 proforma NCCF
APPENDICES Reconciliation of the 2022 proforma NCCF (In €m) €5.50 per share 417 €3.04 per share 231 (186) (1) (1) €187m adjustments include €161m related to 2022 Healthcare NCCF and an amount of €26m of adjustments corresponding to SLA products, internal fees and interests on intragroup debt 2023 Ha
Slide 56: EPRA NRV, NTA & NDV
APPENDICES – VALUE OF THE COMMERCIAL PORTFOLIO EPRA NRV, NTA & NDV (In € per share) 87.9 +0.9 +4.6 +0.4 84.2 In € per Chg. vs. 79.3 In €m share Dec. 2022 (9.2) (0.3) EPRA NDV 6,664 87.9 -13.3% EPRA NTA 6,011 79.3 -11.8% EPRA NRV 6,388 84.2 -13.3% EPRA Transfer tax Impact Other EPRA Impact Other EPRA
Slide 57: Leading position confirmed by CSR Rating Agencies & Rankings
APPENDICES – CSR STRATEGY OVERVIEW Leading position confirmed by CSR Rating Agencies & Rankings CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 3rd out of 438 listed “Sector leader” status real estate companies worldwide in the category of listed diversified companies in Europe Score: 7.3/100 (inv