Icade (ICAD) Q2 2024 earnings summary

Executive summary

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

• Property Development faced a challenging environment, with stable revenues but significant impairment losses and continued price pressure, especially on bulk sales.

• The group maintained a solid balance sheet and strong liquidity, despite no disposals in H1 2024.

• Strategic plan implementation advanced, with concrete steps in asset repositioning, diversification, and sustainability initiatives.

• FY 2024 guidance for Net Current Cash Flow (NCCF) per share reaffirmed at €3.55–3.70.

Financial highlights

• Group NCCF fell 18.1% year-over-year to €169.0m, mainly due to lower discontinued operations cash flow; 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 (LTV) ratio including duties rose to 35.9% from 33.5% at end-2023.

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

• EBITDA dropped to €67.1m from €154.8m, 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 and about €0.80 per share from discontinued activities.

• Lower growth expected in Property Investment in H2 2024 due to tenant departures and reduced investment income; stabilization anticipated in Property Development.

• 95% of NCCF from discontinued operations already secured via H1 income from the remaining Healthcare stake.