Icade (AO) | Hold | H1 results: Challenges remain, but nothing unexpected

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Icade (AO) | Hold | H1 results: Challenges remain, but nothing unexpected

Icade Hold | Target Price: EUR22.00

Icade signed or renewed c. 94,000 sqm (up 18% in volume terms), securing EUR32m in annualised headline rental income with a

WAULT to break of almost 9 years. As such, c. 75% of the leases expiring in 2027 are expected to be retained despite the

anticipated negative reversion. The estimated loss of annualised headline rental income due to vacancies and rent renegotiations

represented EUR30m out of EUR60m subject to a break or expiry in 2026.

At the end of June 2026, the total reversionary potential based on headline rents stood at -7.1% (vs. -9.7% as FY 2025), and at

-4.4% taking into account the future impact of lease renewals in the Eqho Tower and the Grands Axes buildings

Overall occupancy stood at 85.9%, down from 86.8% at FY 2025 but up 0.9 pps since Q1. Office occupancy improved to 89.9%

(+1.7 pps QoQ), while light industrial occupancy declined by 1 pp. Non-core occupancy fell to 56.1%, following the departure of a

tenant from an asset earmarked for residential conversion.

Property development division

Economic revenue from Property Development amounted to EUR473.3m, down 5.5% YOY. The decline was mainly driven by the

commercial segment, where revenue fell 42% due to lower volumes following the completion of major projects in previous years

and the absence of new sales. This was partly offset by a 1.6% increase in residential revenue, supported by the solid conversion

of the order backlog into sales. .

Property Development recorded current economic operating income of EUR9.1m, equivalent to a current economic operating

margin of 1.9%, compared with 2.3% a year earlier. The decline in the current economic operating margin was driven by lower