ORIGINE (Paris La Défense - Nanterre, Hauts-de-Seine) INVESTOR PRESENTATION January 2020
ICADE AT A GLANCE ICADE AT A GLANCE: ONE OF THE LEADING FRENCH LISTED REITS € 11.7 bn property portfolio OFFICE INVESTMENT: (as of 06/30/2019, excluding duties, group share) Icade, the leading real estate player in Greater Paris Portfolio as of 06/30/2019: 9.3bn (100%) Office Investment € 2.3 bn development pipeline (389,000 sq.m) Healthcare 78 % Investment 900,000 sq.m land bank 22 % Cash-Flow by division HEALTHCARE INVESTMENT: Icade: leading player in France, diversifying in Europe (as of 06/30/2019) Development Portfolio as of end of November: >5.0bn (100%) 7% Dedicated subsidiary with minority shareholders - Healthcare Investment all French life insurance companies (43%) Office 33% Investment 128 healthcare facilities in France (90% short, medium care) 60% 32 long-term care facilities in Europe (Italy, Germany) Icade shareholding structure DEVELOPMENT: Among the leaders in France as of 06/30/2019 (in %) Limited and profitable exposure (less than 10 % of Group equity (1) ) Free float (3) A full-service developer (offices, homes, etc.) with extensive 37.13 % Caisse des dépôts 38.77 % national coverage ( 21 regional offices) 2018 FY economic revenue (2) : € 1,251m; ROE : 15% ICAMAP Crédit Agricole GIC and Future Fund Assurances Group acting in concert 18.92 % 5.18 % Notes: (1) Property Development equity attributable to the Group (before restatement of investments in subsidiaries / Consolidated equity attributable to the Group) (2) Economic revenue: revenue including entities accounted for using the equity method (3) Including 0.27% for Icade’s “FCPE” employee -shareholding fund and 0.85% of treasury shares I 2
ICADE AT A GLANCE ATTRACTIVE FUNDAMENTALS FOR THE ICADE SHARE Dividend history (in €) Market capitalisation: Average daily € 6.0 bn (1) Dividend yield: 4,60 trading volume (2) : 4,30 C. 6% (1) ~ € 11 m 4,00 Free float: 37 % 3,73 3,73 2014 2015 2016 2017 2018 NAV TSR (in %) Strong financial structure: 12,8% 12,7% 11,0% Strong 2016/2018 LTV ratio of around 40 % performance and TSR 2,2% 2,0% BBB+ S&P rating 2014 2015 2016 2017 2018 (1) As of June 30, 2019 (2) 6-month average daily trading volume as of June 30, 2019 I 3
ICADE AT A GLANCE SHAREHOLDERS, BOARD OF DIRECTORS & MANAGEMENT ALIGNED Strategic Plan approved unanimously by the Board of Directors Strengthened governance since April 2019 Icade’s two leading shareholders are aligned A committed Board of Directors, geared toward growth, supporting management in implementing the plan I 4
ICADE AT A GLANCE 2019 – 2022 PLAN: A CLEAR AND AMBITIOUS PLAN 1. 2. 3. 4. Leader in the office European leader Key player in market in the Greater Best-in-class CSR in healthcare property Paris area and major and innovation real estate development cities outside Paris Sales of mature assets Diversification into Positive performance Priority: low carbon the long-term care segment in competitive processes Target: a nearly 1.5 °C Reinvestment International expansion Replenishing in development pathway the office pipeline Investment target: € 2.5 bn Opportunistic acquisitions A plan aimed at delivering attractive recurring yields & value creation I 5
ICADE AT A GLANCE 2019: IMPLEMENTATION WELL UNDERWAY 2019 2020 2021 2022 1 st year of the plan Acceleration and Office Improved diversification within Sales of investments the healthcare segment ESG ratings mature assets € 380 m Icade Santé’s inaugural € 735 m ~ € 1.1 bn bond issue Ranked as a 70 % in the pipeline 10 years, € 500 m, +67 % YoY sector leader coupon of 0.875 % by GRESB (84/100) Icade fully committed to implementing its 2019 –2022 plan… I 6
ICADE AT A GLANCE ICADE VS. PEERS SHARE PRICE EVOLUTION JAN. 2016 DEC. 2019 200 Evolution ICADE-EPRA Europe et pairs en dividendes réinvestis du 31/12/2015 au 31/12/2019 96,43% Icade +96.4% (Base 100 cours d'Icade au 31/12/2015) 190 180 71,51% 170 EPRA +26.7% 160 Europe 50,05% 150 46,74% 140 +50.1% Covivio 130 26,68% 120 110 +71.5% Gecina 100 90 80 CAC 40 +46.7% Icade Base 100 EPRA Europe Gecina Covivio CAC40 (Basis 100 / share price of Icade as at Jan 12/31/15 – incl. reinvested dividend) I 7 Sources : Bloomberg, Rothschild
ICADE AT A GLANCE ICADE VS. PEERS SHARE PRICE EVOLUTION JAN. 2019 DEC. 2019 Icade +54.8% EPRA +29.4% Europe Covivio +26.2% +47.3% Gecina (Basis 100 / share price of Icade as at Jan 12/31/18 – incl. reinvested dividend) I 8 Sources : Bloomberg, Rothschild
ICADE AT A GLANCE SOLID FINANCIAL RESULTS REFLECTING STRONG ACTIVITY Positive H1 2019 results ( EPRA NAV: +2.7%; NCCF: +4.5% ) Good momentum confirmed in Q3 with notably a solid leasing activity: • Office Rental income up 1.7% on a like-for-like basis • Healthcare: Rental income soars by 10.5% on a reported basis • Property development : business indicators in line with H1; Residential backlog up: +14.9% NCCF guidance for FY 2019 raised at the occasion of the Investor Day ( 11/25/2019 ) NCCF (in € per share) stable including the impact of 2019 disposals (vs. initial guidance: stable excluding the impact of 2019 disposals) …Good momentum since 2016 I 9
PARK VIEW PROJECT – TÊTE D’OR AREA (Lyon, Rhône) OFFICE PROPERTY INVESTMENT
OFFICE INVESTMENT OFFICES: A RESILIENT MARKET Paris region rental Stabilised Strong absorption market normalising vacancy rate in of new supply the Paris Region in the Paris region 1.1 million sq.m in H1 2019 ( -19 % vs. H1 2018 and 5.3 % at the end only 15 % of vacant space is new +1 % vs. 10-year average) and 39 % of space under construction of June 2019 after two record years Only 2 % in Paris is already pre-let for large occupiers Source: ImmoStat Source: JLL Source: JLL Increased attractiveness Strong activity in major cities of property investment outside Paris 1.2 million sq.m taken up over a rolling 12-month € 13.7 bn invested in H1 2019 ( 71 % in offices with the return of acquisitions over €500m) period in Q1 2019 ( +9 % YoY, +18 % vs. 5-year average) Persistent low interest rate environment Lyon stands out with an estimate of 350,000 -sq.m take-up in 2019 Strong presence of foreign investors Source: BNPP RE, in Aix/Marseille, Bordeaux, Lille, Lyon, Nantes and Toulouse Source: BNPP RE I 11
OFFICE INVESTMENT ICADE’S OFFICE PORTFOLIO AT THE HEART OF THE GREATER PARIS AREA Paris region portfolio 1,568,207 sq.m (2) 197,164 sq.m (2) Portfolio outside the Paris region € 7,408 m (1) € 754 m (1) 17 TGV PORTES DE PARIS 334,240 sq.m SAINT-DENIS LYON 62,330 sq.m BORDEAUX 96,886 sq.m GENEVILLIERS 49,741 sq.m Origine – Nanterre 23,520 sq.m Go Spring – Nanterre LA DÉFENSE- NANTERRE 279,180 sq.m MAUVIN BUSINESS PARK Pulse – Saint-Denis MARSEILLE 17 16 21,980 sq.m 34,388 sq.m Le Castel – Marseille Quai 8.2 – Bordeaux 14 15 PONT DE FLANDRE TOULOUSE MILLÉNAIRE 90,690 sq.m 144,670 sq.m 16,150 sq.m RUEIL-MALMAISON 11 21,730 sq.m PARIS, 20 th DISTRICT PARIS, 8 th DISTRICT 20,030 sq.m 9,880 sq.m NEUILLY-SUR-SEINE LAND BANK: 900,000 sq.m PARIS, 15 th DISTRICT 3,600 sq.m Gambetta – Paris 33,400 sq.m 11 16 15 BOULOGNE-BILLANCOURT 15 4,980 sq.m PORTES DE PARIS BUSINESS PARK VILLEJUIF 277,000 sq.m 29,770 sq.m ISSY-LES-MOULINEAUX 18,270 sq.m 18 GENTILLY 13,710 sq.m PORTE DE GENTILLY Fresk – Issy-les-Moulineaux GRAND PARIS EXPRESS LINES 6,000 sq.m 18 14 14 TGV 15 ORLY-RUNGIS BUSINESS PARK Monaco – Rungis business park 16, 17 ORLY-RUNGIS BUSINESS PARK 610,000 sq.m 388,380 sq.m 18 18 Beyond 2030 HIGH-SPEED TRAIN STATIONS CENTRAL BUSINESS Notes: (1) Value of the property portfolio excl. duties, Group share, ASSETS DISTRICT as of the end of September 2019 (excl. residential) TGV Existing high-speed train station based on appraised values as of June 30, 2019 GRAND PARIS (2) Total floor area excl. housing units, hotels and PPPs HIGH-SPEED TGV TGV Planned high-speed train station I 12 EXPRESS LINES TRAIN STATION
OFFICE INVESTMENT OFFICE INVESTMENT: KEY FIGURES Like-for-like changes in rental income 12/31/2018 06/30/2019 (in %) € 8.9 bn € 9.3 bn 4.9% PORTFOLIO VALUE (100% basis, excluding duties) Offices € 8.7 bn € 9.1 bn 3.9 % PORTFOLIO VALUE (Group share, excluding duties) 3.1 % WEIGHTED AVERAGE UNEXPIRED 4.7 years 5.0 years 2.9 % LEASE TERM 93.4 % 91.8 % FINANCIAL OCCUPANCY RATE 0.4% TOTAL AVERAGE NET INITIAL YIELD 5.9 % 5.7 % (Group share, excluding duties) H1 2016 H1 2017 H1 2018 H1 2019 1.8 1.8 TOTAL FLOOR AREA (in millions of sq.m) 4,500 4,700 AVERAGE PRICE PER SQ.M (1) -3.1% 7,500 8,000 Business parks PARIS REGION OFFICES 3,150 3,200 OFFICES OUTSIDE THE PARIS REGION 2,100 2,300 BUSINESS PARKS CONTINUED LFL GROWTH IN RENTAL INCOME STILL ATTRACTIVE YIELDS AND PRICES PER SQ.M IN A BULLISH MARKET Note : 100% basis - (1) For buildings in operation I 13
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