• Net Current Cash Flow: EUR3.98 per share, above guidance.
• Dividend Proposal: EUR4.31 per share, including EUR2.54 from the Healthcare business sale.
• Net Cash Flow: EUR302 million.
• Gross Rental Income: EUR369 million, up 2.5% on a like-for-like basis.
• Gross Asset Value: EUR6.4 billion, reflecting a 7.1% decline.
• EPRA NTA Per Share: EUR60.1, declining by 11%.
• LTV Ratio: 36.5% at year-end, up from 33.5% the previous year.
• Net Debt to EBITDA: 10 times.
• Property Development Economic Revenues: EUR1.2 billion, stable year-over-year.
• Financial Occupancy Rate: 84.7% as of December 31, 2024.
• Leasing Activity: 133,000 square meters signed or renewed, representing EUR35 million in annual rental income.
• Residential Backlog: EUR1.6 billion at the end of 2024.
• Cost of Debt: Improved to 1.52% from 1.60% the previous year.
• Liquidity Position: EUR2.6 billion, covering debt until 2029.

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Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Icade (CDMGF) reported a net current cash flow of EUR3.98 per share for 2024, exceeding guidance.
• The company proposed a dividend of EUR4.31 per share, including a significant contribution from the sale of its Healthcare business.
• Gross rental income increased to EUR369 million, driven by indexation effects.
• Icade successfully relet a major asset in Paris shortly after the departure of the Olympic Games, demonstrating strong leasing capabilities.
• The company maintained a strong liquidity position of EUR2.6 billion, covering its debt until 2029.

Negative Points

• The property portfolio value decreased by 7.1% on a like-for-like basis, reflecting market challenges.
• The financial occupancy rate fell to 84.7% by the end of 2024 due to tenant departures.
• Net debt to EBITDA ratio increased to 10 times, indicating higher leverage.
• The property development division faced a sharp decline in net cash flow due to impairments.
• Icade remains cautious for 2025, expecting a decline in property revenues and a complex market environment.

Q & A Highlights

Q: Could you elaborate on the guidance for 2025 and the assumptions behind it? Do you think 2025 could be the trough for your core cash flow? A: Nicolas Joly, CEO: For 2025, we expect a net current cash flow between EUR3.40 and EUR3.60 per share. We are cautious due to the current environment. The investment division will see a decrease in rental income due to reduced index-linked rental reviews and tenant departures in 2024. The property development business is expected to return to break-even after 2024's impairments, but we remain cautious due to political uncertainties. The EUR0.67 per share from healthcare activity is estimated without future disposals.

Q: What is the expected evolution of your office occupancy rate in 2025, excluding the effect of the Pulse project? A: Nicolas Joly, CEO: We expect stabilization in the short term. The decline at the end of 2024 was expected due to tenant departures. The occupancy rate for well-positioned assets was 88% at the end of 2024, and we aim to maintain this level. Light industrial assets saw minor erosion due to standard rotation and new project deliveries.

Q: Can you discuss the dividend policy, especially excluding the healthcare business contribution? A: Nicolas Joly, CEO: The 2024 dividend includes EUR2.54 per share from the healthcare business sale. We aim to retain cash to preserve redeployment capacity and finance future growth. The remaining EUR1.77 per share corresponds to a payout ratio of about 42%, similar to last year's approach. We do not provide guidance on future dividend policies but will maintain this philosophy.

Q: How do you expect the rental income from to-be-repositioned assets to evolve over the next few years? A: Nicolas Joly, CEO: We expect these buildings to empty out over time. Out of EUR56 million of potential break options in 2025, EUR30 million comes from to-be-repositioned offices. We remain opportunistic and aim to make pragmatic deals when possible, but the primary strategy is to create liquidity through reconversion scenarios.

Q: What are your priorities between capital redeployment and debt repayment, given the slower pace of disposals? A: Nicolas Joly, CEO: Our priority is on the pipeline and diversification, focusing on value creation. We aim for investments at a cost of 6.5% with a value creation target of 15-20%. We will balance financial policy with capital redeployment, adapting the pace of investment to disposal progress and potential third-party partnerships.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.