Icade (ICAD) H1 2024 earnings summary

Executive summary

• Property Investment demonstrated resilience with revenue growth from well-positioned offices and light industrial assets, while asset valuation declines were contained.

• Property Development faced a challenging environment, with stable order volumes but continued price pressure and significant impairment losses.

• The group maintained a solid balance sheet and strong liquidity, reflecting the absence of disposals in H1 2024.

• Strategic plan implementation advanced, with concrete steps in asset repositioning, sustainability initiatives, and climate/biodiversity resolutions widely approved.

• 2024 guidance for net current cash flow reaffirmed.

Financial highlights

• Net current cash flow at group level was €169.0m for H1 2024; NCCF from strategic operations stable at €111.1m.

• EPRA NTA per share decreased by 6.8% to €62.6, mainly due to asset value evolution and interim dividend.

• Loan-to-value ratio rose to 35.9% from 33.5% at end-2023, reflecting no disposals.

• Net debt/EBITDA increased to 11.4x, impacted by impairments and no disposals.

• EBITDA dropped to €67.1m from €154.8m year-over-year, reflecting €85m in impairment losses on development projects.

Outlook and guidance

• FY 2024 NCCF guidance reaffirmed at €3.55–3.70 per share, with €2.75–2.90 per share from strategic operations.

• Lower growth expected in Property Investment in H2 due to tenant departures and lower investment income; stabilization anticipated in Property Development.

• 95% of NCCF from discontinued operations already secured.