Icade - 2024 Half-Year Financial Report

TABLE OF CONTENTS

KEY FIGURES ....................................................................................................................................................................... 4

PERFORMANCE OF THE GROUP’S BUSINESS ACTIVITIES .................................................................................................... 8

1.  H1 2024 highlights ..................................................................................................................................................... 10

2.  FY 2024 guidance unchanged .................................................................................................................................... 11

3.  Disposal of the Healthcare business: update ............................................................................................................. 12

4.  Analysis of consolidated results as of June 30, 2024 ................................................................................................. 12

5.  Performance by business line as of June 30, 2024 .................................................................................................... 15

6.  Financial structure ..................................................................................................................................................... 23

7.  CSR commitments ...................................................................................................................................................... 25

EPRA REPORTING.............................................................................................................................................................. 26

1.  EPRA net asset value .................................................................................................................................................. 29

2.  EPRA earnings from Property Investment ................................................................................................................. 29

3.  EPRA LTV ratio ............................................................................................................................................................ 30

4.  EPRA yield – Property Investment ............................................................................................................................. 31

5.  EPRA vacancy rate – Property Investment ................................................................................................................. 32

6.  EPRA cost ratio – Property Investment ...................................................................................................................... 32

7.  EPRA investments – Property Investment ................................................................................................................. 33

ADDITIONAL INFORMATION ............................................................................................................................................. 34

1.  The Icade Group’s segmented income statement ..................................................................................................... 36

2.  Property Investment Division .................................................................................................................................... 38

3.  Debt structure ............................................................................................................................................................ 43

4.  Events after the reporting period .............................................................................................................................. 44

5.  Risk factors ................................................................................................................................................................. 44

6.  Review of the Group’s indicators in H1 2024 ............................................................................................................. 44

7.  Glossary ...................................................................................................................................................................... 46

GOVERNANCE ................................................................................................................................................................... 52

1.  Changes in composition of the Board of Directors and its committees as of June 30, 2024 ..................................... 54

2.  Composition of the Executive Committee ................................................................................................................. 57

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2024 ................................................................ 58

 Consolidated financial statements as of June 30, 2024 ............................................................................................. 60

 Notes to the condensed consolidated financial statements as of June 30, 2024 ...................................................... 64

 Statutory Auditors’ report on the half-year financial information .......................................................................... 105

DECLARATION BY THE PERSON RESPONSIBLE FOR THIS DOCUMENT

I certify that, to the best of my knowledge, the condensed consolidated financial statements for the past half-year have been drawn up in accordance with applicable accounting standards, and give a true and fair view of the assets and liabilities, financial position, and profits and losses of the Company, and of all the companies included in its scope of consolidation; and that the attached half-year management report presents a true and fair view of the major events that took place in the first half of the year, their impact on the financial statements, the main related-party transactions, and a description of the main risks and uncertainties for the remaining six months of the year.

Issy-les-Moulineaux, July 22, 2024 

Nicolas Joly

Chief Executive Officer            

 • KEY FIGURES •

Key figures

Following a review of the Group’s indicators as of June 30, 2024, Chapter 4 of this document includes a table showing all the changes made as of June 30, 2024 and their relatively minor impact on the results as of June 30, 2023 and December 31, 2023. A detailed glossary showing how each indicator is calculated has also been provided.

Group

Key financial data                                                                                                        06/30/2024                06/30/2023                  Change (%)

Property Investment Division

                                                                                                                                  06/30/2024                06/30/2023                       Change

Change /

Like-for-like 

1

2

3

¹   Mainly consisting of shops and hotels

²   Offices not part of any business park: €4.2bn (88%) / Offices located in business parks: €0.6bn (12%)

³   Offices not part of any business park: €0.5bn (68%) / Offices located in business parks: €0.2bn (32%)

• KEY FIGURES •

Property Development Division

                                                                                                                                         06/30/2024             12/31/2023                    Change

Share capital

Ownership structure as of 06/30/2024

1. H1 2024 highlights

1.1. First concrete actions to implement the ReShapE strategic plan

In February 2024, Icade presented ReShapE, its new strategic plan to 2028 aimed at addressing the new challenges of designing the city of 2050. This new plan builds on the synergies that exist between the Company’s Property Investment and Property Development Divisions. In response to the profound changes in the way we live and work in our buildings and neighbourhoods, as well as the major climate-related challenges facing society, Icade has set the following four strategic priorities: 

•       further adapting the office portfolio to changes in demand: resilience of existing supply, conversion and/or disposal of specific assets and increased pipeline selectivity; 

•       accelerating portfolio diversification in line with the growing need for mixed uses: light industrial units, student residences and data centers; 

•       building the city of 2050 to be diverse, innovative and sustainable; 

•       maintaining a strong financial structure through a balanced allocation of capital by financing valuecreating projects and helping to reduce the Group’s debt.  

In H1 2024, Icade placed strong emphasis on the conversion of assets to be repositioned as they do not meet new market expectations. These assets represented 12% of the office portfolio as of June 30, 2024 vs. 14% as of December 31, 2023.

In particular, in H1 the Property Investment Division sold two assets to the Property Development Division for conversion into housing.

•       Icade Promotion acquired the Arcade office building with a view to creating a new flagship neighbourhood, Le Carré Haussmann, to be jointly developed alongside SEMPRO, an urban planning agency based in Le Plessis-Robinson. This neighbourhood, comprising shops and 650 homes, is aiming for the top environmental certifications, thanks in particular to 4,735 sq.m of depaved and green surfaces and a large pool of water to reduce the heat island effect on the site. The units are already on the market, with work on the first phase (251 homes) due to start in late 2024 and completion scheduled for 2026.

•       On July 16, Icade Promotion completed the acquisition of a nearly 8,900-sq.m office tower in the centre of Lyon with a view to converting it into 101 high-end housing units by the end of 2026. Sales on this project have been brisk with orders from individuals and 47 social housing units sold in bulk in July 2024 to social landlord Lyon Métropole Habitat. 

In addition, Icade is also making progress, in line with its objectives, on its announced plans to diversify its asset portfolio: 

•       building permit application filed in Q2 2024 to develop a 17,100-sq.m light industrial building in Rungis (Ottawa);

•       building permit obtained in March 2024 to develop the City Park student residence in Levallois-Perret;

•       construction started on a data center to be leased by Equinix in the Portes de Paris business park (scheduled for completion in Q3 2025) and grid connection offer received for a project to build a 130-MW hyperscale data centre in the Paris Orly-Rungis business park (scheduled for completion in 2031).

Lastly, Icade is helping to build the city of 2050 through large-scale mixed-use projects that illustrate Icade Promotion’s expertise such as:

•       La Plateforme digital campus in Marseille on which construction has started representing c. €53m in revenue, scheduled for completion in September 2026;

•       the 30,000-sq.m PIOM industrial and technology campus in Montpellier, completed in June 2024.

1.2. Dividend up +11.8% for the financial year 2023

On April 19, 2024, the General Meeting unanimously approved a dividend of €4.84 per share for the financial year 2023, an increase of +11.8% on the 2022 dividend, and including €2.54 per share from the completed first stage of the disposal of the Healthcare business in 2023.

The dividend yield stood at 13.6% based on the share price as of December 29, 2023.

Following the payment on March 6, 2024 of an interim dividend of 50%, i.e. €2.42 per share, the balance of the dividend, i.e. €2.42 per share, was paid in cash on July 4, 2024 (with an ex-dividend date of July 2, 2024).

1.3. First company in Europe to submit two resolutions on climate and biodiversity, which were widely approved at the General Meeting

At the April 19, 2024 General Meeting, Icade set itself apart by being the first listed company in Europe to submit two separate resolutions on climate and biodiversity to the vote of its shareholders: 

•       the Say on Climate resolution on the Group’s 2023 results in terms of reducing carbon intensity (-35% for Property Investment and -12% for Property Development over the 2019–2023 period) and reducing the Group’s CO₂ emissions (-21% in absolute terms over the 2019–2023 period), in line with the 1.5°C pathway approved by the SBTi; and

•       the Say on Biodiversity resolution on the progress made by the Group in preserving biodiversity, including (i) the measurement of the proportion of development projects with a positive impact on nature upon completion (52% of projects launched in 2023) and (ii) the measurement of biodiversity indicators for business parks (impact on soil, fauna, flora, water, etc.).

These two resolutions were approved by a very wide margin: the Say on Climate resolution by 99.30% and the Say on Biodiversity resolution by 98.65%.

2. FY 2024 guidance unchanged

Based on the Group’s results as of June 30, 2024 and expectations for H2 and amid political uncertainty in France over the last few weeks, Icade reaffirms its guidance of a total Net Current Cash Flow of between €3.55 and €3.70 per share for FY 2024, made up of (i) Net Current Cash Flow from strategic operations of between €2.75 and €2.90 per share and (ii) Net Current Cash Flow from discontinued operations of c. €0.80 per share.  

The main underlying assumptions are as follows: 

•       lower growth in the Property Investment business in H2 2024 due to the planned departure of certain tenants and lower short-term investment income; 

•       stabilisation in the Property Development business, following a major adjustment resulting in significant write-downs in H1; 

•       Net Current Cash Flow from discontinued operations has already been secured at 95% thanks to the income recognised by Icade (€58m) in H1 2024 in connection with its remaining interest in the Healthcare business.

3. Disposal of the Healthcare business: update

In 2023, following the signing of a sale and purchase agreement with Primonial REIM (now called Præmia REIM) and the minority shareholders of both Icade Santé (now called Præmia Healthcare) and Icade Healthcare Europe (now called IHE Healthcare Europe), Icade announced the three-stage disposal of its Healthcare business. 

Since that time, Præmia REIM has been responsible for managing all of the property assets held by Icade Santé and IHE. The sale of the Healthcare business resulted in its deconsolidation from the Group in July 2023. 

Stage 1 of the transaction, completed in July 2023, involved the sale of 63% of Icade’s stake in Icade Santé to Præmia REIM and Sogecap for a total amount of €1.45bn. The capital gain on this first stage of the disposal generated a mandatory dividend of €5.08 per share, of which €2.54 paid in 2024.

In an environment not very favourable to investment (high interest rates, falling inflows into French SCPI property funds, pressure on asset values), the Group has continued discussions with Præmia REIM and other investors and maintained its strategy of selling its stake in the Healthcare business, in accordance with the terms of the agreements.

Stage 2 consists of the sale of Icade’s remaining stake in Præmia Healthcare^[1], for an amount estimated at c. €0.8bn^[2] as of June 30, 2024. The Group aims to complete stage 2 by the end of 2025.  

This may be done in stages through: 

•       the acquisition of additional shares by Præmia REIM using the inflows into the CapSanté fund; 

•       and/or the purchase of Icade’s remaining shares by third-party institutional investors.

Stage 3 involves the sale of IHE’s international portfolio (Italy, Portugal and Germany), which represents c. €0.5bn⁵ in proceeds to be received by Icade^[3] based on its valuation as of June 30, 2024, including €194m for a shareholder loan between Icade and IHE. The Group aims to complete stage 3 by the end of 2026. As such, a process to sell the Italian asset portfolio is underway.

4. Analysis of consolidated results as of June 30, 2024

¨     Stable Net Current Cash Flow from strategic operations, driven by the performance of the Property Investment Division

¨     Improved net finance expense

¨     EPRA NTA down by -6.9%, mainly due to a moderate fall in asset values compared to December 2023

As part of its ongoing efforts to improve the transparency of its financial reporting, the Group reviewed its indicators in H1 2024 and asked a panel of investors and analysts for their opinion.

In view of the comments received, industry recommendations, in particular from the European Public Real Estate Association, and best market practices, two changes have been made to provide more relevant information:

•       the scope of calculation of certain indicators has been adjusted to reflect the IFRS scope of consolidation, plus the share of joint ventures;

•       the methodology for calculating certain Group indicators has been updated.

In the appendices to the 2024 Half-Year Results press release (and in Chapter 4 of the Half-Year Financial Report), you will find a table showing all the changes made as of June 30, 2024 and their relatively minor impact on the results as of June 30, 2023 and December 31, 2023. A detailed glossary has also been provided.

(in €m)                                                                                                                                     06/30/2024                            06/30/2023                          Change (€m)                               Change (%)

(a)  Other income from operating activities mainly consists of service charges recharged to tenants.

(b)  As of June 30, 2023, in accordance with IFRS 5, the net profit/(loss) attributable to the Group for the Healthcare Property Division in H1 2023 was classified under “Profit/(loss) from discontinued operations” in the Group’s financial statements.

As of June 30, 2024, the Group’s consolidated IFRS revenue was stable at nearly €699m despite still challenging markets. Gross rental income from the Property Investment Division rose by +3.7% to €187.8m, driven by index-linked rent reviews, while revenue from the Property Development Division remained broadly stable at €503.2m (-0.8%), thanks to the sale of residential units from the backlog built up by the end of 2023.

EBITDA fell significantly as of June 30, 2024 to €67.1m, compared with €154.8m over the same period in 2023, taking into account €85m of impairment losses on development projects in the portfolio. Against the backdrop of an unfavourable market environment and given the downward pressure on bulk sale prices in H1, Icade carried out a comprehensive review of the projects in order to adjust the economics of projects launched to the new economic environment, reconfigure certain projects or discontinue the most uncertain or least profitable among them. 

This impact was partly offset by the careful management of operating costs.

The improvement in operating profit/(loss) includes the effect of the moderate drop in the fair value of investment property in H1 2024 to -€268.5m vs. -€565m in H1 2023.

The finance expense fell significantly thanks to the combined effect of (i) keeping the cost of debt down to 1.52% as of June 30, 2024, (ii) the increase in short-term investment income of +€19m compared with the same period last year and (iii) income from the remaining stake in the Healthcare business (€48m in dividends and €9m in interest on the shareholder loan granted to Icade Healthcare Europe (IHE), and (iv) a €13m cash adjustment recognised as a result of a bond buyback. 

Net profit/(loss) attributable to the Group amounted to -€180.5m, an improvement on the June 2023 figure (-€475.4m), due in particular to a smaller change in the value of investment property as of June 30, 2024 than at the same period last year. 

Given the sale of the Healthcare business, Icade reports Group Net Current Cash Flow comprising (i) Net Current Cash Flow from strategic operations, i.e. Property Investment and Property Development, and (ii) Net Current Cash Flow from discontinued operations, i.e. the remaining investment in the Healthcare business.

(In €m)                                                                                                            06/30/2024         06/30/2023       Change (€m)            Change (%)

Group Net Current Cash Flow fell by -18.1% to €169m as of June 30, 2024.

Net current cash flow from strategic operations remained stable at €111.1m compared to June 30, 2023. This is the result of differences in performance between the business lines:

•       The Property Investment Division’s Net Current Cash Flow rose sharply to €134.6m (up +€35m on H1 2023), thanks to higher rental income, lower expenses and operating costs, and the lower finance expense.

•       The Property Development business had a negative Net Current Cash Flow of -€20.9m (-€34.5m lower than in H1 2023) due to the recognition of significant impairment losses on projects in the portfolio. Excluding the impact of these provisions, Net Current Cash Flow from Property Development as of June 30, 2024 would be €13.1m, similar to H1 2023.

Net current cash flow from discontinued operations fell sharply with respect to June 30, 2023, from €95.1m to €57.8m. Since the deconsolidation of the Healthcare business, it consists of dividends from Praemia Healthcare and IHE Healthcare Europe as well as interest received on a shareholder loan granted by the Group to IHE.

The Group’s EPRA NDV stood at €5,181m (€68.3 per share), down -6.9% compared to December 31, 2023 (€5,566m or €73.3 per share), mainly due to the combined effects of the following:  

•       the H1 loss of -€181m, i.e. -€2.4 per share (including the impact of the decrease in the value of the Property Investment portfolio of -€3.3 per share);  

•       the payment of an interim dividend of -€183m, i.e. -€2.4 per share;

•       the -€46m reduction, i.e. -€0.6 per share, in the fair value of fixed rate debt during the period.

The Group’s EPRA NTA amounted to €4,745m (€62.6 per share), down -6.9% compared to December 31, 2023 due to the net loss in H1 and the payment of the interim dividend.

Lastly, the Group’s EPRA NRV stood at €5,092m as of June 30, 2024 (€67.2 per share), generally following the same downward trend, for the same reasons, with -6.5% year-on-year.

The LTV ratio including duties as of June 30, 2024 stood at 35.9%, up +2.4 pps compared to 2023, mainly due to (i) the lower value of the property portfolio excluding duties (+1 pp) and (ii) higher net debt (+1.2 pps).

5. Performance by business line as of June 30, 2024

5.1. Property Investment Division: higher rental income and Net Current Cash Flow, moderate drop in property values

¨     Gross rental income up by +4.1% like-for-like, driven by index-linked rent reviews (+5.5%), and a sharp increase in Net Current Cash Flow of +35.2%

¨     Dynamic leasing activity: leases covering c. 56,000 sq.m signed or renewed

¨     Moderate drop in asset values of -3.8% like-for-like after a sharp adjustment in 2023

¨     Solid operating indicators for well-positioned offices and light industrial assets: rental income up +6.4% and +7.8% like-for-like respectively, financial occupancy rate over 90% and a moderate change in asset values of -3.7% and +0.7% like-for-like respectively

Key financial data

(in €m)                                                                                                                       06/30/2024                06/30/2023                        Change

* These figures do not include intercompany disposals.

Like-for-like 

5.1.1. Robust leasing activity with almost 56,000 sq.m signed or renewed

In H1 2024, 51 leases covering almost 56,000 sq.m were signed or renewed, representing €16.3m in annualised headline rental income, with a WAULT to break of 6.3 years. This volume is split evenly between new leases and renewals.

Leasing activity as of June 30, 2024 should be interpreted in the light of the record performance achieved in 2023. H1 leasing activity also reflects a number of market trends:

•       Resumption of transactions exceeding 5,000 sq.m. In particular, Icade (i) extended an 8,400-sq.m lease with Planeta Formation et Universités in Pont de Flandre for a further 3 years, taking the lease term to first break to 7 years, and (ii) renewed the 6,500-sq.m lease in the Monet building in Saint-Denis with SNCF for 6 years.

•       Demand still strong for assets meeting the highest standards in conveniently located areas. As a result, 85% of leases signed or renewed in the office segment were for well-positioned assets (i.e. c. 37,000 sq.m). For example, Schneider Electric has signed an additional 3,700 sq.m in the Edenn building in NanterrePréfecture, next to the RER E station, for 9 years with no break option.

•       Dynamic activity in the light industrial segment. Nearly 9,000 sq.m were signed or renewed, i.e. 16% of total volume, including more than 5,000 sq.m in the Paris Orly-Rungis business park and c. 3,000 sq.m in the Portes de Paris business park. 

In H1 2024, space vacated represented c. €16.4m in annualised headline rental income, including Crédit Lyonnais’s departure from the Tolbiac building in Villejuif, and Thales and ESI Group in Rungis. For the leases having a break or expiry in H2, tenant departures already notified to Icade as of June 30, 2024 represented over €30m in annualised rental income, including €10m for the Pulse building in Saint-Denis, currently occupied by the Organising Committee for the Olympic Games.

                                                                                                                                                                 Weighted average unexpired lease

Financial occupancy rate* (%)

                                                                                                                                                                                term* (years)

Asset classes                                                               06/30/2024           12/31/2023                 Change             06/30/2024            12/31/2023

Offices – well-positioned 3.9

Offices – to be repositioned 1.9

SUBTOTAL OFFICES 3.5

Light industrial 3.1

Other  5.4

TOTAL PROPERTY INVESTMENT 3.6

(*) 100% + Group share of joint ventures.

The financial occupancy rate stood at 87.2% as of June 30, 2024, down -0.7 pps compared with December 31, 2023 due to tenant departures in H1 2024. The decline in the occupancy rate mainly concerns offices to be repositioned, with the financial occupancy rate in the well-positioned office and light industrial segments remaining above 90%.

5.1.2. Targeted capital allocation and diversified pipeline

As of June 30, 2024, investments stood at €83.1m⁷, down by -32% compared with H1 2023. However, this decrease as of June 30 due to construction delays on some projects in H1 2024 should be partly offset in H2. 

Investments focused primarily on well-positioned office properties (€65.1m) and were used to finance projects under development (€53.0m) such as Edenn and Next. Other investments relate mainly to operational capex of €30m, including renovation work, work to improve the energy performance of buildings and lease incentives.

In July 2024, the Property Investment Division signed preliminary agreements to sell two office properties in Marseille for a total of c. €44.5m, in line with NAV as of June 30, 2024. These transactions reflect the liquidity of core and small assets on the investment market, with yields of around 6%.

In addition, as previously indicated, the Property Investment Division sold two office properties to be repositioned to the Property Development Division for a total of €66m, in line with NAV as of December 31, 2023, with these properties to be converted into residential units.

⁷ See the breakdown of investments in the EPRA reporting section of the appendices to the 2024 Half-Year Results press release (or in chapter 3 of the 2024 Half-Year Financial Report).

As of June 30, 2024, projects started represented a limited total investment volume of €907m, of which €288m has not yet been paid out, and additional annualised rental income of €45m including €21m by the end of 2025, with leases secured for 82% of this amount. 

The pipeline is particularly well secured, with three of the four projects to be completed over the next 18 months fully pre-let. In addition, the pre-letting of the Edenn office asset continued in H1, with Schneider Electric signing an expansion of its future lease to include additional space, bringing pre-let space in the building to 71%. 

The projects are diversified and meet the guidelines set out in the ReShapE strategic plan. With the 29-33 ChampsÉlysées, Edenn and Next projects, the pipeline is helping to adapt the office portfolio to changing demand, while the data center projects in the Portes de Paris business park and the hotel project in Rungis are helping to diversify the portfolio.

In line with the Group’s CSR goals, Icade aims for all its projects under development to obtain the very best certifications (HQE and BREEAM Excellent) or to be aligned with EU Taxonomy criteria. 

5.1.3. Moderate drop in asset values

(Excluding duties in €m, 100% + Group share of                      Fair value as of                 Fair value as of                 Change on a                       Like-for-like  JVs)              06/30/2024                        12/31/2023                        Change (€m)                      reported basis (%)          change (%)

(a) Mainly includes hotel and retail assets.

As of June 30, 2024, the value of the Property Investment portfolio stood at €6.6bn excluding duties, compared with €6.8bn at the end of 2023, down -3.4% on a reported basis.

Following a major adjustment in asset values in 2023 (-17.9%⁸), the portfolio saw a moderate decline in value of -3.8% like-for-like in H1 2024, despite continuing disparities across asset types:

•       The value of light industrial premises once again saw positive growth, with a slight increase of +0.7% on a like-for-like basis, supported by the stabilisation of the main appraisal parameters (estimated rental value and yield) and by index-linked rent reviews.

•       The value of well-positioned offices fell by just -3.7%, with the adverse impact of residual yield decompression partially offset by the positive effect of additional rental income (EDF lease in Origine, Schneider lease in Edenn).

•       Offices to be repositioned remain the asset class most exposed to value corrections, with an additional fall of -7.3% in H1 2024, for a cumulative -46% over the last 24 months. 

⁸ 100% + Group share of JVs

5.1.4. Strong growth in Net Current Cash Flow (NCCF) of +35.2%

(in €m)                                                                                                                  06/30/2024       06/30/2023    Change (€m)         Change

Recurring items:                                                                                                                                                                        

(a)  “Non-current recurring items” relate to the depreciation of operating assets and the IFRS 2 charge relating to bonus share plans.

(b)  “Non-current items” include the change in fair value of investment property, gains or losses on disposals, fair value adjustments to financial instruments, and other non-current items.

Net current cash flow from Property Investment rose by a solid +35.2% to €134.6m, driven by (i) higher rental income, particularly from well-positioned offices and light industrial premises, (ii) profit margins and operating costs kept under control, and (iii) the lower finance expense. 

Leasing activity

and index-linked                       Total              Like-for-like (in €m)                          rent reviews *                        Other **                        change (%) change (%)

(*) “Leasing activity and index-linked rent reviews” includes early termination fees.  

(**) “Other” includes the impact of changes in scope of consolidation (acquisitions, disposals, pipeline). 

Gross rental income from the Property Investment Division amounted to €187.8m as of June 30, 2024, up +€6.8m compared to June 30, 2023, i.e. +3.7% on a reported basis and +4.1% like-for-like, including +1.2% from early termination fees. The impact of changes in the scope of consolidation was only -€0.5m in H1.

Growth was mainly driven by index-linked rent reviews (+5.5%), partly offset by the effect of tenant departures (-1.2%) and negative reversion on renewals (-0.2%).

Performance varied according to asset class, with growth outstripping index-linked rent reviews in the well-positioned office and light industrial segments, at +6.4% and +7.8% like-for-like, respectively, compared with H1 2023. 

Net rental income from Property Investment amounted to €168.9m, up +€7.9m compared to June 30, 2023 (+4.9%), positively impacted by a one-off decrease in energy costs, which were lower than expected in 2023. The rent collection rate as of June 30, 2024 remained high at 97%, reflecting an excellent tenant base, nearly 85% of which comprises large companies, middle-market companies and public sector companies. 

Lastly, finance income/(expense) for Property Investment improved by +€24.1m due in particular to (i) higher shortterm investment income (+€16.3m) and (ii) a lower cost of gross debt (-€7.3m).  

5.2. Property Development: operational performance reflecting adjustment to market conditions

¨     Volume of orders for homes sold individually down -6% in a market down -21%^[4]

¨     Bulk sales up by +5% but on less favourable financial terms (-5% in value terms)

¨     Revenue stable, but bottom line impacted by significant impairment losses of €63m after tax on projects in the portfolio

¨     Continued selective policy for launching new projects

Key financial data

                                                                                                                                  06/30/2024                06/30/2023                        Change

5.2.1. Slowdown in business despite outperforming the market

Pressure on residential prices

For the residential segment, the Property Development Division recorded 2,110 orders totalling €538m, down by a mere -1% in volume terms and -8% in value terms. Business remained strong, driven by bulk sales from institutional investors despite less favourable conditions than in 2023.

Orders for homes sold individually by the Property Development Division dropped by -6% in volume terms and -10% in value terms, outperforming the market which was down -21% year-on-year. In an unfavourable tax and financial environment, private investors still represent a relatively small proportion of investors (18% of orders as of June 30, 2024 vs. 24% as of June 30, 2023). 

Despite the market showing some promising signs lately—borrowing rates have started to fall^[5], the order cancellation rate of individual buyers dropped to 27% (vs. 32% as of June 30, 2023) and the time on market was down to 19 months vs. 22 months as of December 31, 2023—political events in France at the start of the summer of 2024 have caused further uncertainty about this segment’s recovery.

Bulk orders, up +5% in volume terms, continue to bolster the business, but conditions are less favourable, with prices down between -10% and -15% compared with the previous year. Institutional investors accounted for 53% of total volume, with orders for 1,116 units in H1 2024 (vs. 1,066 units year-on-year), with social landlords making up 2/3 of these investors. 

Slowdown in the commercial segment

The commercial segment saw a sharp decline, with sales down -35% in value terms to €16m (vs. €25m in H1 2023). Icade Promotion nonetheless signed two preliminary off-plan agreements to sell office buildings in early July 2024 (4,200 sq.m in Villeurbanne on the site of the former Clinique du Tonkin private hospital and 4,500 sq.m in Lyon, where the Part-Dieu, Tête d’Or and Brotteaux districts intersect).  

Reduction in the backlog built up at the end of 2023

The backlog as of June 30, 2024 stood at €1.7bn, down by -6.7% compared to the end of 2023. This decrease reflects (i) the relatively stable residential backlog, down -1.5% to €1.5bn and (ii) a -36% drop in the commercial backlog^[6] resulting from the progress made on large-scale projects such as the Envergure complex in Romainville (SeineSaint-Denis) and Audessa in Lyon.

Over 47% of the backlog units as of June 30, 2024 have been pre-sold.

The secured backlog as of June 30, 2024 includes €733.2m of work still to be performed on fully consolidated entities (see note 7.1 to the condensed consolidated financial statements as of June 30, 2024) and €77.6m of work on the Group’s share of joint ventures.

5.2.2. Business stable but results impacted by accounting for significant impairment losses following a comprehensive review of the project portfolio

(in €m, 100% + Group share of JVs)                                                                          06/30/2024      06/30/2023      Change (€m)               Change

(a)  Current operating profit/(loss) adjusted for the trademark royalties charged by Icade.             

(b)  “Non-current items” include depreciation charges, impairment of inventories and other non-current items.

Economic revenue from Property Development was stable at €582.9m as of June 30, 2024 (including €577.5m revenue on a percentage-of-completion basis) vs. €583.4m as of June 30, 2023, despite the uneven performance of the two segments. Indeed:

•       revenue from the residential segment totalled €456.8m, up +€32m compared to H1 2023, driven by the progress made on projects in the backlog built up at the end of 2023 (€1.6bn);  

•       revenue from the commercial segment totalled €116.7m, down -€40m compared to H1 2023. As a reminder, H1 2023 was impacted by the opportunistic sale of an office building on rue Taitbout in Paris for €40m.

Amid a persistently challenging market environment with prices continuing to fall, in particular for bulk orders, and political uncertainty, Icade conducted a comprehensive and in-depth review of the project portfolio. This review entailed:

•       for projects under construction: revising the price lists to factor in prevailing market conditions, especially for bulk sale prices; 

•       for projects in the pre-construction phase:

o    writing down all the study costs incurred on discontinued or reconfigured projects;

o    updating land values in line with the new residual values or based on the resale price when a project has been discontinued. 

This in-depth project review led to the recognition of significant impairment losses totalling €85m before tax (i.e. €63m after tax):

•       €46m (€34m after tax) for ongoing projects, included under current items;

•       €39m (€29m after tax) for reconfigured or discontinued projects, included under non-current items.

As a result, these impairment losses reduced Property Development net property margin, current economic operating profit/(loss) and Net Current Cash Flow for the Property Development Division. 

Due to rigorous monitoring, the Property Development Division’s operating costs were down by -9.5% to -€7m in H1 2024 (-€5.7m after tax) compared to H1 2023. This decrease was achieved through a reduction in the payroll and the sale of the Project Management Support and Healthcare Expertise business on June 30, 2023.

Net profit/(loss) attributable to the Group stood at -€66.9m (vs. -€12.7m as of June 30, 2023), taking into account additional impairment losses classified under non-current items in the amount of €29m (after tax). 

(in €m, 100% + Group share of JVs)                                                                         06/30/2024                12/31/2023                      Change (€m)

It should be noted that the WCR and net debt cover the entire Property Development business and also include urban development projects and land for which a building permit may not have been obtained or may still be appealable. 

The Property Development Division’s working capital requirement stood at €498.6m as of June 30, 2024, down €72.5m compared to the end of 2023. This decline was mainly due to the impairment losses recognised for the project portfolio. As in previous years, WCR at the end of June was higher than the year-end WCR as most bulk orders are usually signed in the second half of the year.

Inventory was efficiently managed, with the stock of unsold completed homes kept low (€17m as of June 30, 2024 vs. €19m as of December 31, 2023).  

Total net debt increased slightly compared to the end of 2023 (+€13.8m) as some payments are expected to be received at the beginning of H2. It was down -€28.7m compared to the end of June 2023.

5.2.3. Selective policy for launching new projects

Icade has remained cautious and selective when launching new projects. This resulted in: 

•       a -40% drop in sales launches (1,795 units as of June 30, 2024 vs. 3,011 units for the same period in 2023); • a -5% reduction in the inventory of homes for sale compared to the end of 2023; 

•       an increase in the percentage of projects under construction pre-sold (percentage of projects pre-sold before the start of construction of over 80% in H1 2024 [vs. 59% in H1 2023] including c. 50% for homes sold individually);

•       a reduction in construction starts of -56% in volume terms and -69% in value terms (€214m in H1 2024 vs. €695m in H1 2023).

The land portfolio totalled 11,965 units as of June 30, 2024, with potential revenue of €2.6bn excluding taxes

(on an economic basis), down -8.8% in value terms compared to December 31, 2023. Discontinued projects totalled 2,461 units and are expected to negatively impact this portfolio by €555m by the end of the year.

6. Financial structure

¨     A solid liquidity position covering 3.6 years of debt payments

¨     Proactive management of debt maturities through the buyback of €350m in bonds maturing in 2025 and 2026

¨     Proactive management of debt and short-term investments helped to reduce the net finance expense

¨     Balance sheet reflecting the absence of H1 2024 disposals and a moderate drop in asset values

Key financial data

                                                                                                                                         06/30/2024             12/31/2023                     Change

6.1. A solid liquidity position covering 3.6 years of debt payments

The Group had a very strong liquidity position of over €2.6bn as of June 30, 2024 against gross debt of €4.7bn. Liquidity consisted of: 

•       c. €1.0bn in cash net of bank overdrafts, down -€0.5bn compared to December 31, 2023, following an interim dividend payment in March 2024 (€183m) and a €350m bond buyback in May 2024; and 

•       €1.68bn in undrawn credit lines (excluding credit lines for property development projects), in line with the volume as of December 31, 2023. In H1 2024, Icade did not draw down these credit lines and thus still has the entire undrawn amount at its disposal.

Excluding NEU Commercial Paper, since it is a short-term source of financing, liquidity amounted to €2.4bn as of June 30, 2024 and covered the Group’s debt payments up to 2028.

The Group’s outstanding amount of NEU Commercial Paper remained unchanged at €225m in H1 2024, in line with its position as of December 31, 2023, in order to limit the impact on its finance expenses. The average rate of NEU Commercial Paper over the period was 4.21%, with an average maturity of 3 months.

6.2. Proactive management of debt and derivative maturities

In H1 2024, Icade used part of the proceeds received in 2023 on completion of the first stage of the disposal of its Healthcare business to reduce its short-term debt maturing in 2025 and 2026. 

In May 2024, Icade successfully completed a €350m bond buyback, including €142.5m for 2025 bonds and €207.5m for 2026 bonds. Redeeming the bonds at a price below par value also generated a premium of +€12.7m (non-recurring impact). 

The Group’s debt structure remains well-balanced and diversified, with non-bank debt accounting for 57% and bank debt for 43%. The average debt maturity^[7] as of June 30, 2024 was 4.3 years vs. 4.6 years as of December 31, 2023.

In addition, Icade’s financing is mostly sustainable in line with its CSR goals: 69% of its financing is green or linked to objectives in terms of carbon intensity and biodiversity preservation (vs. 65% as of December 31, 2023). On July 22, 2024, Icade published its Green Financing Report which set out all its green financing (€1.75bn) and eligible assets (€2.5bn). The report is available via this link: Long-term Market Funding.

Icade continued its prudent interest rate risk management policy. As of June 30, 2024, 100% of estimated debt for H2 2024 was fixed rate or hedged. Separately, Icade improved its long-term hedging profile in June 2024 through the purchase of €100m in forward swaps beginning in January 2027 with a maturity of seven years at a rate of 2.55%.

6.3. Net finance expense under control

The net finance expense improved significantly as of June 30, 2024 to -€6.7m vs. -€44.6m as of June 30, 2023. 

As of June 30, 2024, the Group’s average cost of debt was down slightly to 1.52% (vs.1.60% at the end of 2023). This was due in part to (i) the effect of well-priced hedges that took effect on December 31, 2023 (€125m in swaps at 0.37%, maturing in 2031) and (ii) the reduction in gross debt outstanding vs. H1 2023 (NEU Commercial Paper reduced and €100m in variable rate debt under credit facilities repaid in July 2023). 

In addition, the cost of net debt dropped significantly (-€1.9m vs. -€38.2m as of June 30, 2023), due to the combined effect of higher short-term investment income (+€19m) and interest received on a shareholder loan granted by Icade to IHE Healthcare Europe (+€9m).

As a result, the ICR rose sharply to 34.0x (vs. 4.1x as of June 30, 2023).

6.4. Balance sheet showing no disposals in H1 2024

Amid a tight market, the change in balance sheet ratios reflected the adjustments recorded on the Property Investment and Property Development Divisions in H1 2024.

•       The loan-to-value ratio, including duties, rose to 35.9% (vs. 33.5% as of December 31, 2023), due to the lower valuation of the Property Investment portfolio and the absence of disposals in H1 in an investment market that had virtually ground to a halt.

•       The net debt-to-EBITDA ratio plus dividends from equity-accounted and unconsolidated companies increased to 11.4x (vs. 7.0x as of December 31, 2023), due to the material impact on EBITDA of the Property Development Division’s impairment losses.

In March 2024, S&P Global has downgraded the outlook on Icade’s long-term credit rating (BBB+) from ‘stable’ to ‘negative’ due to increasing pressure on the Property Development business and a larger-than-expected adjustment in the valuation of the Property Investment Division’s assets. S&P Global also adjusted Icade’s financial ratio thresholds^[8] for a BBB+ rating and set the following targets: 

•       a net debt-to-capital ratio below 40% (vs. ‘towards 35%’ previously), factoring in the positive influence of Caisse des Dépôts et Consignations, Icade’s leading shareholder with a 39.2% stake as of June 30, 2024; •            an S&P net debt-to-EBITDA ratio below 8.5x (unchanged);  

•       an S&P ICR above 3.8x (unchanged).

The Group has taken note of these adjustments and reaffirms its determination to maintain a rigorous and prudent financial policy.

S&P affirmed the Group’s BBB+ rating with a negative outlook in July 2024.

6.5. Bank covenants

(a) It should be noted that the minimum value of the property portfolio was lowered to €4 billion in all bank financing agreements after the reporting period. As of June 30, 2024, these agreements included both the €4 billion and €5 billion thresholds.

All covenant ratios were met as of June 30, 2024 and remained comfortably within the limits.

7. CSR commitments 

7.1. Exemplary energy management

Icade continued to integrate and develop innovative energy and low-carbon infrastructure in H1 2024. This included adapting the energy consumption profile, installing charging stations for electric vehicles at its properties and ramping up the use of renewable energy. 

In particular, Icade obtained the Cube Flex badge, an initiative sponsored by the French Energy Regulatory Commission, attesting to the quality and adaptability of its energy management policy. This badge is awarded for the ability to reduce the demand for electrical power should the need arise in anticipation of and in response to an EcoWatt signal so as to consume at the best time and reduce the risk of power outages. 

Icade has also sourced its entire supply of 100% clean electricity and natural gas from France for the next three years (2025–2027). This early action allows us to keep energy costs under control ahead of the end of the ARENH (“Regulated Access to Incumbent Nuclear Electricity”) framework scheduled for December 31, 2025.

7.2. A recognised industry leader

This year, Icade joined the Carbon Disclosure Project’s (CDP) “A List”, placing it among the industry leaders in terms of transparency and performance on climate change. The Group is above the industry average of B and among the top 2% highest scoring companies worldwide. 

For the third consecutive year in 2024, the Financial Times recognised Icade’s commitment to combating climate change, ranking the Group in first place among French companies in the real estate sector and in fourth place in Europe.

Icade presents below all its performance indicators as defined by the European Public Real Estate Association (EPRA) and as calculated in accordance with its recommendations. These are all leading indicators for the property investment industry.

Key EPRA metrics                                                                                                06/30/2024        12/31/2023              Change            See note

Key EPRA metrics                                                                                                06/30/2024        06/30/2023              Change            See note

1. EPRA net asset value

₍in €m)                                                                                                                                           06/30/2024      12/31/2023      06/30/2023

(a)  As of June 30, 2023 and June 30, 2024, final dividend for the previous financial year paid in July 2023 and July 2024, respectively.

(b)  Stood at 75,813,248 as of June 30, 2024, after cancelling treasury shares (-456,085 shares) and the positive impact of dilutive instruments (+34,788 shares).

2. EPRA earnings from Property Investment

(in €m)                                                                                                                                                            06/30/2024            06/30/2023

(a) “Other operations” include property development, discontinued operations as well as “Intersegment transactions and other items”.

3. EPRA LTV ratio

Group        Share of       Non-              Combined as                     material       controlling as of reported                     associates   interests      06/30/2024

                                                                                Loan-to-                               Share of joint                                                                                                         Combined

                                                                                  value                                       ventures                                                                                                                as of

                                                                               (LTV) ratio                                        (2)                                                                                                                12/31/2023

                                                                                                     (1)                                                        (3)                          (4)             (1)+(2)+(3)+(4)

4. EPRA yield – Property Investment

The table below presents a reconciliation of Icade’s net yield to EPRA yields. The calculation takes into account all Property Investment properties in operation. It is presented based on 100% of fully consolidated entities plus the Group’s share of joint ventures (JVs).

(100% + Group share of JVs)                                                                                                                   06/30/2024                12/31/2023

                                                                                                                                            Property Investment

                                                                                              TOTAL               TOTAL

                                                                                              AS OF               Offices –             Offices –          _{Subtotal         Light}                                                   AS OF

 06/30/2024 well- to be _{offices industrial} Land Other 12/31/2023 positioned repositioned

(in €m, 100% + Group share of JVs)

(1) Properties under development, land bank, floor space awaiting refurbishment and assets treated as financial receivables (PPPs)

5. EPRA vacancy rate – Property Investment

(100% + Group share of JVs)                                                                                          06/30/2024             12/31/2023            06/30/2023

^(a) Excluding PPPs, including “Other assets”

EPRA vacancy rate

                                                                     Estimated rental value of vacant space       Estimated rental value of the as of 06/30/2024 

(in €m, 100% + Group share of JVs)                                                                       (A)                       whole portfolio (B) (= A/B)

^(a) Excluding PPPs, including “Other assets”

6. EPRA cost ratio – Property Investment

Detailed figures on the EPRA cost ratio for the Property Investment portfolio are presented below.

(in €m, 100% + Group share of JVs)                                                                                                                         06/30/2024       06/30/2023

7. EPRA investments – Property Investment

Investments are presented as per EPRA recommendations for the Property Investment portfolio. 

                                                                                              06/30/2024                                                 06/30/2023                          

                                                                                                              Joint                                                            Joint

                                                                                        100%                                     Total              100%                                     Total

(in €m)                                                                                                                                                   ventures                                                     ventures

1. The Icade Group’s segmented income statement

1.1. Segmented income statement as of June 30, 2024

For ease of comparison, the Group’s segmented income statement for the period ended June 30, 2024 is presented using the same format as the period ended June 30, 2023. For H1 2024, the “Discontinued operations” column includes dividends and interest income received from the remaining unconsolidated investment in the Healthcare business, the fair value adjustment to this investment as of June 30, 2024 as well as fees for administrative services and loan interest charged by Icade to these Healthcare entities. For H1 2023, this column includes the results of the Healthcare business over this period, recognised as profit/(loss) from discontinued operations, net of intercompany recharges. These recharges relate to fees for property management, administrative services as well as interest on loans, shareholder loans and cash pooling.

IFRS Property

                                                                                                                                      Property Total Group                                                  adjustments

Development Total

                                                                                                                                        Invest-(economic                                                        (Property

(economic Group 

                                                                                                                                          ment basis*)                                                        Development

basis*)

(in €m)                                                                                                                                                                                                                                                                           joint ventures)

                                                                                                               187.8                             

                                                                                                                                        577.5   

                                                                                                                   7.5                    5.5   

                                                                                                                 (8.0)                (5.3)   

 (2.3)   

* Income statement items include controlled entities and joint ventures on a proportionate consolidation basis.

1.2. Segmented income statement as of June 30, 2023

IFRS Property

                                                                                                                                      Property Total Group                                                  adjustments

Development  Total

                                                                                                                                        Invest-(economic                                                        (Property

(economic Group

                                                                                                                                          ment basis*)                                                        Development

basis*)

(in €m)                                                                                                                                                                                                                                                                            joint ventures)

                                                                                                               181.1                             

                                                                                                                                        576.0   

                                                                                                                   9.5                    7.4   

                                                                                                              (31.6)                 (9.0)   

 (1.4)   

* Income statement items include controlled entities and joint ventures on a proportionate consolidation basis.

2. Property Investment Division 

2.1. Changes in value of the Property Investment portfolio

                                                       Appraised value                                                                                                                                                                           Net initial

                                                                   as of                                                                                         Like-for-like         Like-for-like                                     yield incl.                EPRA

OFFICES – well-positioned

Light industrial                                                                                                                                                                                                                                                                                               

*Adjusted for the asset reclassifications made between the two periods, including reclassifications from “Projects under development” to the “Operating” category upon completion of a property.

(a) Change net of disposals and investments for the period, changes in value of assets treated as financial receivables (PPPs) and tax changes during the period.

(b) Established based on the appraised value excluding duties for operating properties.

(c)  Also includes an asset located in Peri-Défense.

(d) Mainly hotel and retail assets.

Indicators (price in €/sq.m, net initial yield including duties, and EPRA vacancy rate) are presented excluding PPPs and only for operating properties.

Following the review of the Group’s indicators in H1 2024, the table below shows the reconciliation of the portfolio value excluding duties as of December 31, 2023 as reported on February 19, 2024 on a proportionate consolidation basis to the portfolio value excluding duties as of December 31, 2023 on an IFRS basis, i.e. on a full consolidation basis plus the share of joint ventures.

                                                                                     12/31/2023                                12/31/2023 

                                                                           100% + Group share of JVs               proportionate                            Change                                   Change

including operating assets** 6,096.3 5,787.4 +308.9 +5.3% including non-operating assets** 750.7 682.0 +68.7 +10.1%

* Includes the reclassification of 6 assets from “Other” to “Land”.

** Adjusted for the asset reclassifications made between the two periods, including reclassifications from “Projects under development” to the “Operating” category upon completion of a property. 

Fair value                        Fair value of assets         Fair value as of                 sold as of     Investments and              Like-for-like                    Like-for-like                        as of

(in €m, 100% + Group share of JVs)                                          12/31/2023 (a)                        other (b)                          change                 change (%)

(a) Includes bulk sales and partial sales (unit sales or assets for which Icade’s ownership interest decreased during the period).

(b) Includes capex, the amounts invested in 2024 in off-plan acquisitions, and acquisitions. Also includes the adjustment for transfer duties and acquisition costs, changes in value of assets acquired during the period, works to properties sold, changes in transfer duties and changes in value of assets treated as financial receivables.

(c)  Mainly includes hotel and retail assets.

2.2. Investments by type

Operational Total as of Total as of (in €m, on a full consolidation basis) Acquisitions Developments capex

2.3. Pipeline

                                                                                                                                   Floor area    Expected                                                  Remai-

                                                                                                                                                                  Yield               Total

                                                                                                          Estimated date             on a full        rental                                               ning to be     % pre-

Project name Location Type of works Property type on investof completion consolida- income invested let

Cost ment (€m) tion basis (€m)         (€m)

Notes: 100% + Group share of JVs

2.4. Gross rental income

2.4.1. Gross rental income from Property Investment by location

                                                                                                                                                Reported basis               Like-for-like basis

                                                                                                                                           in value                            in value

06/30/2023 06/30/2024             in %                          in % (in €m, on a full consolidation basis)       terms       terms

2.4.2. Net rental income and net to gross ratio

                                                                                                                 06/30/2024                                            06/30/2023

                                                                                             Net rental income     Net to gross ratio     Net rental income     Net to gross ratio

(in €m, on a full consolidation basis)

2.4.3. Lease expiry schedule for the Property Investment Division in terms of IFRS annualised rental income (in €m, 100% + Group share of JVs)

3. Debt structure

3.1. Debt maturity profile

The maturity schedule of Icade’s drawn debt (in €m), excluding payables associated with equity interests and bank overdrafts as of June 30, 2024, was as follows:

The average debt maturity excluding debt associated with equity interests, bank overdrafts and NEU Commercial Paper was 4.3 years as of June 30, 2024 vs. 4.6 years as of December 31, 2023.

3.2. Maturity profile of derivatives

The outstanding amount of interest rate hedges (in €m) as of the end of each period is presented below:

The average maturity was 4.2 years for variable rate debt and 6.4 years for the associated hedges.

4. Events after the reporting period

¨     Financial liabilities

On July 9, 2024, Icade was informed that one of its subsidiaries did not comply with the LTV bank covenant relating to a bank mortgage totalling €347.2m as of June 30, 2024. This debt will be partially prepaid within the timeframe required to remedy this situation. 

¨     Preliminary sale agreements signed

On July 3 and 17, 2024, preliminary agreements were signed to sell the Quai Rive Neuve and Castel assets for €44.5m.

5. Risk factors

The 2023 Universal Registration Document contains a detailed description of the risk factors to which the Group is exposed (see chapter 4 of the URD). No risks or uncertainties other than those presented in this document are anticipated.

Icade regularly identifies and assesses its exposure to the various sources of risk (interest rate, liquidity, counterparty, market risk, etc.), and defines appropriate management policies. As of June 30, 2024, only the financial risk factors were reviewed and are detailed in section 5.2 of the notes to the consolidated financial statements. 

In addition, an unfavourable trend in the property market could have a negative impact on the valuation of the Group’s assets and on operating profit presented in note 4.2.4 to the consolidated financial statements.

6. Review of the Group’s indicators in H1 2024  

As part of its ongoing efforts to improve the transparency of its financial reporting, the Group reviewed its indicators in H1 2024 and asked a panel of investors and analysts for their opinion.

In view of the comments received, industry recommendations, in particular from the European Public Real Estate Association, and best market practices, two changes have been made to provide more relevant information:

•       the scope of calculation of certain indicators has been adjusted to reflect the IFRS scope of consolidation, plus the share of joint ventures;

•       the methodology for calculating certain Group indicators has been updated.

The table below shows all the changes made as of June 30, 2024 and their relatively minor impact on the results as of June 30, 2023 and December 31, 2023. Among these indicators, EPRA earnings and Icade Promotion’s current economic operating profit/(loss) are considered to be alternative performance measures.