Icade (ICAD) Q3 2025 earnings summary

Executive summary

• €430 million in disposals completed or under agreement, reducing healthcare exposure by €210 million and selling mature/non-strategic assets for €220 million.

• Strong leasing activity with 166,000 sq m signed or renewed, including a major 41,000 sq m renewal with KPMG, improving occupancy in office and light industrial segments.

• Financial occupancy rate improved, with well-positioned offices at 88.8% and light industrial at 90.4%.

• Consolidated IFRS revenue down 9% year-over-year due to lower gross rental income and subdued development activity.

• 2025 guidance reaffirmed for Group Net Current Cash Flow (NCCF) of €3.40–€3.60 per share.

Financial highlights

• Gross rental income decreased by 6% to €263.2 million, mainly from tenant departures and negative reversion renewals, partially offset by indexation (+3.2%) and early termination fees.

• Economic revenue from property development at €728.7 million, down 12.1% year-over-year.

• Property development revenue declined 10% to €650.9 million.

• Financial occupancy rate at 84% overall as of September 2025.

• Leasing activity up 16.7% year-over-year, with 124,553 sq m signed or renewed by end of September.

Outlook and guidance

• 2025 NCCF guidance confirmed at €3.40–€3.60 per share, including €0.67 per share from non-strategic operations, excluding disposals.

• Over 92% of annual NCCF from non-strategic operations already secured as of September 2025.

• No significant impact expected from the Italian healthcare portfolio disposal on cash flows, as closing is expected late Q4.

• Cautious outlook for 2026 due to political uncertainty, high sovereign yields, and lower indexation.