Icade — Earnings Release 2023

Apr 24, 2023

PRESS RELEASE Issy-les-Moulineaux, April 24, 2023, 7:00 a.m.

ICADE – RESULTS AS OF MARCH 31, 2023

CONSOLIDATED REVENUE OF NEARLY €300M ON A PROPORTIONATE BASIS EXCLUSIVITY AGREEMENT FOR THE SALE OF ICADE SANTÉ

Group's business activities: resilient operational indicators reflect solid fundamentals

• o Office Property Investment: gross rental income from offices and business parks stood at €83m, +2.8% like-for-like, driven by the positive impact of index-linked rent reviews; leases covering nearly 60,000 sq.m signed or renewed in Q1 2023
• o Property Development: economic revenue¹ of €227m, -14% vs. a particularly dynamic Q1 2022. The residential property development market slowed at the beginning of 2023 amid persistently high interest rates

On March 13, 2023, Icade and Primonial REIM signed an exclusivity agreement for the sale of Icade's entire stake in its healthcare business

• o The transaction totals €3bn to be paid in cash, including €2.6bn for Icade's stake in its healthcare business based on its estimated value as of December 31, 2022
• o The first stage of the transaction will be completed by the end of July 2023 at the latest and is worth €1.4bn, i.e. 64% of Icade's stake in Icade Santé based on the NAV as of December 31, 2022
• o Icade has applied IFRS 5 as of March 31, 2023 in anticipation of the full deconsolidation of its healthcare business once the first stage has been completed (loss of control). As a result, Icade Group revenue for Q1 2023 excludes the contribution of the Healthcare Property Investment Division, while revenue for Q1 2022 has been restated on a pro forma basis

Balance sheet

• o Substantial deleveraging expected post transaction: at the end of 2023 before capital reallocation, LTV ratio including duties estimated at c. 31% with net debt-to-EBITDA ratio at c. 8x
• o Rating agency S&P affirmed Icade's rating at BBB+ with a stable outlook in March 2023, following the announcement by Icade that it would sell its healthcare business

General Meeting on April 21, 2023

• o Approval of a dividend of €4.33 per share for the financial year 2022, paid solely in cash
• o Say on Climate & Biodiversity resolution approved by more than 98% of the votes cast

Board of Directors' meeting on April 21, 2023, following the General Meeting²

o Appointment of Nicolas Joly as the new Chief Executive Officer of Icade for a 4-year term.

(in millions of euros)	03/31/2023	03/31/2022 restated*	Change (%)	Like-for-like change (%)
Gross rental income from Office Property Investment – proportionate	83.3	85.7	(2.8)%	2.8%
Other rental income**	4.7	5.5	(13.5)%	(9.0)%
Property Development revenue – proportionate	202.3	240.8	(16.0)%	(20.7)%
Other revenue***	6.3	5.7	9.8%	9.8%
CONSOLIDATED REVENUE ON A PROPORTIONATE CONSOLIDATION BASIS	296.6	337.7	(12.2)%	(14.4)%
CONSOLIDATED REVENUE	286.7	324.5	(11.7)%	(14.9)%

* : Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5.

** : Other Office Property Investment assets

*** : Intra-group operations

It should be noted that the Healthcare Property Investment business was reclassified as discontinued operations in accordance with IFRS 5. Revenue for the two periods does not therefore include the Healthcare Property Investment business. The Healthcare Property Investment Division's operational indicators for Q1 2023 are detailed on page 7 of this document.

¹ Economic revenue: IFRS revenue + revenue from entities accounted for using the equity method

² See press release entitled "Outcome of the Combined General Meeting held on April 21, 2023"

1. OFFICE PROPERTY INVESTMENT

(in millions of euros, on a proportionate consolidation basis)	Gross rental income 03/31/2022	Acquisitions	Completions/ Developments/ Refurbishments Disposals		Leasing activity and index-linked rent reviews	Gross rental income 03/31/2023	Change (%)	Like-for-like change (%)
Offices	62.0	1.0	-	(5.4)	1.1	58.7	(5.3)%	2.6%
Business parks	23.7	-	-	-	0.9	24.6	3.7%	3.2%
GROSS RENTAL INCOME FROM OFFICE PROPERTY INVESTMENT ON A PROPORTIONATE CONSOLIDATION BASIS (*)	85.7	1.0	-	(5.4)	2.0	83.3	(2.8)%	2.8%

Rental activity supported by the positive impact of index-linked rent reviews in a particularly flat market

* Excluding other assets

Gross rental income for the Office Property Investment Division's office and business park segments amounted to €83.3m on a proportionate consolidation basis as of March 31, 2023. This slight decrease of -€2.4m came against a backdrop of major asset disposals worth more than €600m in 2022, representing annual rental income of around €21.0m.

Excluding the impact of 2022 disposals, gross rental income would have risen by +3.7% on a reported basis.

Against this backdrop, asset management activity remained strong in Q1, with leases covering nearly 60,000 sq.m signed or renewed (23 leases). These leases represent c. €14m in annualised headline rental income and a WAULT to break of 6.0 years. New and renewed leases include:

• A pre-let on 7,500 sq.m in the Portes de Paris business park agreed with Equinix, a data centre operator, for a 9-year term with no break option. Nearly 14,000 sq.m have already been leased to Equinix in the Portes de Paris business park, with this pre-let deal relating to a project to convert office premises and parking spaces into a data centre.
• New leases covering more than 5,000 sq.m in the Paris Orly-Rungis business park, including:
  • o A pre-let on 3,000 sq.m signed with a subsidiary of Vinci Energies for a 9-year term;
  • o A 9-year lease on 1,250 sq.m earmarked for One Place Rungis, a food hall featuring five new eateries. Following the arrival of Pierre Hermé and the Lenôtre Culinary Arts School, this new prestigious tenant once again demonstrates how leaders in gastronomy are attracted to Icade's Paris Orly-Rungis business park.
• Three major lease renewals covering nearly 40,000 sq.m signed in line with market rents:
  • o Renewal of a lease with Système U covering nearly 21,000 sq.m in the Paris Orly-Rungis business park for a 9-year term with a break option after 6 years;
  • o Renewal of a lease with Adecco for 13,300 sq.m in the New Way building in Lyon for a 9-year term with a break option after 6 years;
  • o Renewal of a lease with ArcelorMittal for 4,100 sq.m in the Cézanne building in Saint-Denis for a 6-year term with no break option.

In 2022, we renewed the c. 45,000-sq.m lease with our third-largest tenant, Veolia, in the Millénaire area for a 9-year term, in addition to the c. 12,500-sq.m lease with Club Med in the Pont de Flandre business park for a 3-year term. This demonstrates the Office Property Investment Division's ability to retain its tenants, thus ensuring rental income well into the future.

On a like-for-like basis, gross rental income was up +2.8% for the office and business parks segments.

With 100% of leases linked to indices (c. 80% to the ILAT index and c. 20% to the ICC and ILC indices), the impact of index-linked rent reviews remained at around +5% in Q1 2023.

As expected, this impact was partially offset in Q1 by rental reversion on a few strategic renewals signed in 2022 and 2023, ensuring the occupancy of these properties over the medium to long term.

The financial occupancy rate stood at 87.5% as of March 31, 2023, stable compared to December 31, 2022 (87.7%).

In Q1 2023, this indicator continued to be impacted by the robust disposals in 2021 and 2022 as they related to mature assets that were fully let. The average annual rent collection rate as of the end of March stood at over 98%, reflecting the strength of the Office Property Investment Division's tenant base, more than 70% of which comprises CAC 40, SBF 120 and public sector companies.

	Financial occupancy rate (in %) (**)			Weighted average unexpired lease term (in years) (**)
			Like-for-like
Asset classes	03/31/2023	12/31/2022	change*	03/31/2023	12/31/2022
Offices	89.2%	89.0%	+0.2 pp	3.9	4.0
Business parks	83.0%	83.7%	(1.0) pp	2.9	2.7
OFFICE AND BUSINESS PARK ASSETS	87.4%	87.5%	(0.1) pp	3.6	3.6
Other assets	90.0%	90.9%	(0.9) pp	6.0	6.1
OFFICE PROPERTY INVESTMENT	87.5%	87.7%	(0.2) pp	3.7	3.8

(*) Change between December 31, 2022 and March 31, 2023, excluding completions, acquisitions and disposals for the period.

(**) On a full consolidation basis, except for equity-accounted assets which are included on a proportionate consolidation basis.

Investments as of March 31, 2023

03/31/2023 03/31/2022			Chg.
(in millions of euros)	100%	Proportionate	100%	Proportionate	100%	Proportionate
Acquisitions	0.0	0.0	0.0	0.0	0.0	0.0
Developments	21.9	19.1	27.3	21.7	(5.4)	(2.6)
Including capitalised finance costs	0.8	0.6	0.2	0.2	0.6	0.4
Operational capex	40.5	40.0	29.1	28.8	11.4	11.2
TOTAL CAPEX	62.4	59.1	56.4	50.5	6.0	8.6

Investments in Q1 2023 amounted to €62.4m on a full consolidation basis vs. €56.4m in Q1 2022. The breakdown is as follows:

• Investments in the development pipeline for c. €22m, mainly relating to the following projects:
  • o Jump in the Portes de Paris business park for €9.8m, a mixed-use project currently under development, the hotel part of which was handed over in Q1 under a 12-year pre-let;
  • o The Athletes Village in Saint-Ouen for €3.3m, M Factory in Marseille for nearly €3.3m and the B034 hotel in Pont de Flandre for €1.1m.
  • o Next in the Part-Dieu district of Lyon for €1.8m. This project consists of an office building covering more than 15,000 sq.m with 100% of its floor area pre-let, including 85% to APRIL, and completion scheduled for Q2 2024;
• "Other capex" for c. €41m related mainly to maintenance work on the buildings, including over €5m for improving their environmental performance.

Excellent progress on 2023 disposal plan

After recording nearly €600m in disposals in 2022, Icade signed two preliminary agreements to sell core office buildings in Marseille for more than €100m (Grand Central for €53m and Eko Active for €48m), bringing total disposals scheduled for 2023 to c. €150m.

The office properties were sold to leading institutional investors for an average rate of return of 4%.

Thanks to the announcement of the sale of its healthcare business to Primonial REIM, Icade will continue to take an opportunistic approach to its office property disposal plan in 2023, in an investment market that, like the leasing activity, was still in a wait-and-see mode in Q1 2023.

Continued proactive management and support for tenants in the face of rising energy costs

The Office Property Investment Division has remained very active and supportive of its tenants on energy issues, notably through the following initiatives:

• Energy efficiency programme: By systematically adopting energy efficiency criteria and actions, and adhering across the board to the Ecowatt and Ecogaz energy efficiency schemes, the Office Property Investment Division was able to reduce its average daily electricity consumption between working (winter) days in 2022 and working (winter) days in 2021 by 21% across all its properties.
• Continued rollout of Leases with Climate Criteria: launched in October 2022, Icade's leases with climate criteria put climate concerns at the heart of contractual relationships between landlords and tenants. Following the recent signing with Système U, nearly 100,000 sq.m of Icade's assets are now covered by Leases with Climate Criteria.
• Energy procurement: The procurement policy has already made it possible to lock in the price of electricity and gas for the buildings' common areas in 2023 and 2024 from guaranteed renewable sources.

2. PROPERTY DEVELOPMENT BUSINESS

2.1 RESILIENCE AND FLEXIBILITY IN A SLOWING MARKET³

After a very strong sales performance in 2022, with a record number of orders and revenue up more than 17% over the year, Icade Promotion, like all of its peers, noted a slowdown in the market at the beginning of 2023. This was due in particular to the rise in interest rates over the last fifteen months, which has encouraged institutional investors to adopt a wait-and-see attitude, while lengthening negotiation periods and reducing households' borrowing capacity.

In this context, indicators such as revenue, orders and notarised sales were all down at the end of March 2023 compared to the particularly high levels recorded in Q1 2022.

Economic revenue for the period stood at €227m, down by -14% compared to March 31, 2022.

• Revenue from the residential segment fell to €165m (vs. €205m as of March 31, 2022) as a result of the market slowdown.
• Revenue from the office segment rose by +2.9% to €60m, boosted by the high number of sales signed at the end of 2022.

More specifically, in the residential segment, orders for units sold individually fell by a reasonable -14% in value terms compared with an estimated -30% to -40% drop for the market as a whole.

However, the average price of orders per square metre increased as of March 31, 2023 to €5,294 (compared with €5,187 as of March 31, 2022), driven by higher-priced projects in the Paris and Provence-Alpes-Côte d'Azur (PACA) regions, including the following two flagship projects put on the market in Q1:

• "58 Victor Hugo" in Neuilly-sur-Seine, an ambitious project scheduled for completion in 2026 which will see the conversion of a hotel into a luxury residential building comprising 166 housing units over more than 16,000 sq.m. This project is spearheaded by AfterWork, Icade Promotion's redevelopment solution dedicated to the major overhaul of assets with conversions of use in mind.
• "Parc des Arts" in Marseille, a 12,000-sq.m mixed-use project scheduled for completion in Q3 2025 that comprises 173 housing units, a childcare centre, a library, an artist residency and an exhibition hall together occupying four buildings positioned around a landscaped park.

It should also be noted that the share of institutional investors in the residential property development market fell quite significantly in Q1 2023 (18% of total revenue) in a volatile financial environment with persistently high interest rates for which there is still no end in sight over the medium term. Their contribution to Icade Promotion's revenue is nevertheless expected to increase in the coming quarters.

Thanks to its proven agility and ability to adapt, Icade Promotion has already taken various steps to deal with this new situation, such as:

• An increased focus on the stock of unsold completed units,
• Closer monitoring of new listings (price adjustments and sales promotions),
• An effort to adapt projects and recalibrate land values, and
• An analysis of ways to adjust structural costs to this new context.

³ Source: ADEQUATION: the market saw a -37% decrease in new housing orders in Q1 2023 vs. Q1 2022 (leading indicator from the 'FIL Résidentiel' application)

(in millions of euros)	03/31/2023	03/31/2022
Consolidated revenue	192.2	227.8
Group's share of revenue from joint ventures	34.4	36.7
Economic revenue	226.6	264.4

Business indicators (*)	03/31/2023	03/31/2022	Change (%)	12/31/2022
Orders for new housing units and building plots
Housing orders (in units) (**)	640	1,382	(53.7)%	6,014
Housing orders (in millions of euros including taxes)	204.1	383.2	(46.7)%	1,439.3
Housing order cancellation rate (in %)	26.9%	13.9%	+13.0 pps	16.9%
Average sale price and average floor area based on housing orders
Average price including taxes per habitable sq.m (in €/sq.m)	5,294	5,187	2.1%	4,439
Average budget including taxes per housing unit (in €k)	319.1	283.3	12.6%	240.8
Average floor area per housing unit (in sq.m)	60.3	54.6	10.4%	54.3
Breakdown of housing orders by type of customer (in %)
Owner-occupier buyers	46.4%	28.1%	+18.3 pps	20.7%
Individual investors	35.7%	31.2%	+4.6 pps	25.8%
Institutional investors	17.9%	40.7%	(22.8) pps	53.5%

(*) Business indicators are shown on a full consolidation basis (including projects undertaken by jointly controlled entities).

(**) "Units" means the number of residential units or equivalent residential units (for mixed-use developments) of any given development.

The decrease in housing orders reflects an unfavourable base effect since a significant volume of bulk sales were signed in Q1 2022, whereas most bulk sales in 2023 are expected to be signed in H2.

2.2 RESILIENT LEADING INDICATORS, REVENUE FOR 2023 EXPECTED TO BE STABLE FOLLOWING A STRONG PERFORMANCE IN 2022

As of March 31, 2023, leading indicators for revenue (controlled land portfolio for the residential segment and backlog) remained sufficiently high to ensure revenue for 2023 despite the market slowdown.

• The total backlog for the Property Development Division as of March 31, 2023 was €1.8bn, stable compared to March 31, 2022 and down slightly (-4%) compared to December 31, 2022, placing the Company in a position to post stable revenue for the full year 2023.
• The portfolio of controlled residential land and building plots comprised 15,481 units, representing potential revenue of €3.5bn (excluding taxes, on a proportionate consolidation basis).

In total, potential revenue over the medium term is expected to amount to €8.7bn⁴ . This is a slight increase of +0.6% compared to December 31, 2022. It represents 25,000 units for the residential segment and 188,000 sq.m for the office segment.

This indicator includes potential revenue from the numerous projects won in 2022, highlighting the teams' expertise in large-scale mixed-use projects and low-carbon construction, as well as a mixed-use project awarded in Q1 2023 in western France:

• Icade and the Duval Group won the "Ambition Maritime et Littorale" tender to develop the Gavy site in Saint-Nazaire with this largescale mixed-use project on a plot of almost 8.1 hectares which includes 340 housing units, office space, a sports campus, a health and sports training centre, and a hotel complex with a restaurant. Work is scheduled to begin in 2025.

⁴ On a proportionate consolidation basis and excluding taxes

(in millions of euros)	03/31/2023	12/31/2022	Change (%)	03/31/2022	Change (%)
Property Development backlog	1,764.8	1,841.4	(4.2)%	1,766.4	(0.1)%
Residential Property Development	1,466.0	1,494.6	(1.9)%	1,385.5	+ 5.8%
Office, Public Amenities and Healthcare Property Development	280.7	327.2	(14.2)%	359.3	(21.9)%
Project Management Support service order book	18.1	19.6	(7.6)%	21.7	(16.2)%

3. HEALTHCARE PROPERTY INVESTMENT

3.1 EXCLUSIVITY AGREEMENT ON THE SALE OF ICADE'S STAKE IN ICADE SANTÉ AND THE PROPOSED SALE OF IHE'S ASSETS

On March 13, 2023, Icade, Icade Santé's minority shareholders and Primonial REIM announced the signing of an exclusivity agreement on the sale of Icade's stake in Icade Santé and the arrangement of the sale of the asset portfolio owned by Icade Healthcare Europe (IHE). Icade's total investment in its Healthcare Property Investment Division is currently estimated to be worth €2.6bn based on EPRA NTA as of December 31, 2022.

Press release published on March 13, 2023 – exclusivity agreement signed

This liquidity event, one of the Group's priorities for 2023, will allow Icade to crystallise the value of its Healthcare Property Investment Division and unlock capital gains on its investments in Icade Santé and IHE (i.e. c. €1.2bn), resulting in €710m in mandatory special dividends payable within two years of each sale being made. The substantial cash generated by this transaction would also help Icade to fortify its balance sheet and seize potential growth opportunities.

This transaction will have several stages and should be completed by the end of 2025:

• The first stage, which should be completed by the end of July 2023, involves the sale of Icade Santé shares by Icade for €1.4bn, representing approximately 64%⁵ of Icade's stake in Icade Santé based on EPRA NTA as of December 31, 2022.
• Icade's remaining stake in Icade Santé is expected to be sold by the end of 2025, mainly to funds managed by Primonial REIM or to investors identified by Primonial REIM based on Icade Santé's most recently published EPRA NTA on the sale date.
• Lastly, Primonial REIM will be responsible for the sale of IHE's portfolio of assets, valued at around €850m based on appraisals as of December 31, 2022, which should be completed by the end of 2024 at the latest.

All conditions precedent and preliminary steps are currently being addressed and should be finalised in time for the first stage to be completed between June 30 and the end of July 2023.

3.2 ACCOUNTING TREATMENT: APPLICATION OF IFRS 5 AS OF MARCH 31, 2023

On March 13, 2023, Icade announced the signing of an exclusivity agreement on the sale of the Healthcare Property Investment Division, with a loss of control over the business as soon as the first stage of the sale is completed. As such, the Group has applied IFRS 5 as of March 31, 2023, with the contribution of the Healthcare Property Investment Division reclassified as "Profit/(loss) from discontinued operations" in the income statement for Q1 2023 and Q1 2022.

As a result, Icade Group revenue for Q1 2023 and Q1 2022 does not include the contribution of the Healthcare Property Investment business.

⁵ After adjusting for the 2022 dividend

3.3 INFORMATION ON BUSINESS ACTIVITY IN Q1 2023

Gross rental income

					Leasing
(in millions of euros,					activity and
on a proportionate		Asset	Asset	New builds /	index-linked		Total change	Like-for-like
consolidation basis)	03/31/2022	acquisitions	disposals	Refurbishments	rent reviews	03/31/2023	(in %)	change (in %)
Acute care	40.5	0.2	(0.6)	0.4	1.1	41.7	2.8%	3.0%
Medium-term care	3.6	0.1	(0.1)	0.1	0.1	3.8	5.6%	3.8%
Long-term care	8.0	0.8		0.1	0.2	9.1	14.3%	3.0%
HEALTHCARE PROPERTY	52.1	1.1	- (0.7)	0.6	1.4	54.6	4.8%	3.1%
INVESTMENT incl. France	45.1	0.1	(0.7)	0.6	1.3	46.5	3.1%	3.2%
incl. international	7.0	1.0			0.1	8.1	15.8%	2.1%
			-	-

In Q1 2023, gross rental income from Healthcare Property Investment amounted to €55m on a proportionate consolidation basis, up +5% on a reported basis (+€2.5m), mainly driven by 2022 acquisitions and the impact of index-linked rent reviews.

On a like-for-like basis, gross rental income grew by +3%, primarily due to index-linked rent reviews during the period, resulting in a total impact of +3.3%.

The financial occupancy rate of the portfolio as of March 31, 2023 remained unchanged at 100%, while the rent collection rate was almost 100%.

The WAULT to first break stood at 8.2 years, broadly stable compared to December 31, 2022, positively impacted by renewals and extensions on 8 leases.

On average, it stood at 6.9 years for assets located in France and 15.4 years for assets located outside France.

	Financial occupancy rate (in %)		Weighted average unexpired lease term (in years)
Asset classes	03/31/2023	12/31/2022	03/31/2023	12/31/2022
France	100.0%	100.0%	6.9	6.8
International	100.0%	100.0%	15.4	15.5
HEALTHCARE PROPERTY INVESTMENT	100.0%	100.0%	8.2	8.1

Investments as of March 31, 2023:

As interest rates have sharply risen for the past several quarters, the Healthcare Property Investment Division has slowed the pace of its investments by being more selective.

(in millions of euros, on a proportionate consolidation basis)	03/31/2023	03/31/2022	Chg.
Acquisitions	6.3	21.0	(14.6)
Incl. France	0.0	0.0	0.0
Incl. international	6.3	21.0	(14.7)
Developments	7.0	4.9	2.1
Incl. France	7.0	4.9	2.1
Incl. international	0.0	0.0	0.0
Other capex	2.1	4.8	(2.7)
TOTAL CAPEX	15.4	30.7	(15.3)
Incl. France	8.8	9.5	(0.7)
Incl. international	6.6	21.1	(14.5)

Investments in Q1 2023 amounted to €15m on a proportionate consolidation basis (€26m on a full consolidation basis), including:

• International acquisitions for €6m on a proportionate consolidation basis, mainly driven by the acquisition of a long-term care facility operated by Amavir in Ciudad Real, Spain, from the development pipeline;
• Capex for development projects in France worth €7m;
• Other capex for €2m.

4. STANDARD & POOR'S AFFIRMS ICADE'S BBB+ RATING WITH A STABLE OUTLOOK

The publication of the annual financial results on February 20, 2023 was an opportunity for Icade to highlight how it actively managed its financial structure in 2022 amid high volatility and a sharp rise in interest rates.

• Average cost of debt in 2022: 1.25%, average debt maturity of 5.3 years
• Liquidity as of December 31, 2022: €2.5bn⁶ (covering all debt principal and interest payments for the next 3.5 years)
• Credit indicators as of December 31, 2022: the LTV ratio stood at 39.3% (vs. 40.1% as of December 31, 2021), the ICR rose to 6.4x (vs. 6.0x as of December 31, 2021) and the net debt-to-EBITDA ratio was down significantly to 10.1x.

Following the March 13, 2023 press release on the sale of Icade Santé, rating agency Standard & Poor's (S&P) affirmed Icade's BBB+ rating with a stable outlook on March 14, 2023. S&P analysed changes in Icade's operational profile and the impact of this transaction on the Group's main financial ratios.

Maintaining its BBB+ rating over the long term is a key component of the Group's financial strategy.

As such, if the transaction is successfully completed, the Group's debt ratios should improve significantly in 2023, below the thresholds set out in the new S&P guidelines post transaction.

At the end of 2023 and before the capital is reallocated:

• The LTV ratio including duties should be close to 31%⁷ (vs. 39.3% as of December 31, 2022)
• The net debt-to-EBITDA ratio is expected to be around 8x (vs. 10.1x in 2022).

5. A GREATER COMMITMENT TO BIODIVERSITY

The fight against climate change and the protection of biodiversity are the two priority environmental issues in the CSR Strategic Plan for 2023–2026.

After further ramping up its low-carbon strategy in 2022, which is in line with a 1.5°C pathway and has been approved by the SBTi⁸ , Icade announced, in its Biodiversity Report issued in Q1 2023, that it is strengthening its commitment to biodiversity and soil protection.

These new commitments for 2030 are as follows:

• Rewilding 100% of the Property Development Division's new builds and the Office Property Investment Division's business parks by 2030
• Solutions to support biodiversity for 90% of the Office Property Investment Division's buildings
• Voluntary measures to restore or preserve ecosystems through carefully selected projects.

For the second year in a row, the Board proposed a Say on Climate & Biodiversity resolution at the General Meeting held on April 21, 2023. based on the climate goals announced in 2022, and the new biodiversity commitments for 2030: it was approved by more than 98% of the votes cast.

⁶ Excluding NEU Commercial Paper

⁷ Based on the outlook for asset values announced at the end of November 2022 (Investor Day)

⁸ Based on the Net-Zero Standard framework.

6. 2023 OUTLOOK

In an environment that remains complex and volatile, marked by the continued rise in interest rates and a certain wait-and-see attitude in the various markets, the business lines posted solid performance in Q1, reflecting the robustness of their fundamentals and the Group's ability to adapt to market conditions.

In this context, Icade is maintaining its guidance and dividend policy for 2023 as announced at the end of February and confirmed in its press release published on March 15, 2023:

FY 2023 guidance: 2023 Group net current cash flow per share: stable to slightly up, excluding the impact of 2023 disposals.

The impact of the liquidity event on 2023 net current cash flow will be confirmed and specified when completion of its first stage is announced on or before the end of July 2023.

Dividend policy: Dividends in line with the change in net current cash flow; payout ratio of around 80% (subject to approval by 2024 General Meeting).

When fully completed, the sale of Icade Santé would generate a total capital gain of around €1.2bn, resulting in a total of around €710m in mandatory dividends being paid.

The timing of this special distribution will depend on the actual pace of sales at each of the transaction's stages. It should be noted that the SIIC tax regime allows for each mandatory dividend resulting from capital gains to be paid over a two-year period. As such, the amount of the special dividend for the financial year 2023 will be confirmed and specified In July 2023.

FINANCIAL CALENDAR

Half Year Results: Monday, July 24, 2023 before the market opens Q3 financial data: Monday, October 23, 2023 before the market opens Investor Day: Monday, November 27, 2023

This press release does not constitute an offer, or an invitation to sell or exchange securities, or a recommendation to subscribe, purchase or sell Icade securities. Distribution of this press release may be restricted by legislation or regulations in certain countries. As a result, any person who comes into possession of this press release should be aware of and comply with such restrictions. To the extent permitted by applicable law, Icade excludes all liability and makes no representation regarding the violation of any such restrictions by any person.

ABOUT ICADE

DESIRABLE PLACES TO LIVE

As an office and healthcare property investment company (portfolio worth €15.1bn on a full consolidation basis as of 12/31/2022) and a developer of homes, offices and public amenities (2022 economic revenue of €1.3bn), Icade designs, builds, manages and invests in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected, with a reduced carbon footprint. Desirable places to live and work. In collaboration with its stakeholders, Icade has made low carbon a strategic priority in order to reinvent real estate and create cities that are healthier, happier and more hospitable. Icade is a key player in Greater Paris and major French cities. It is listed as a "SIIC" on Euronext Paris and its leading shareholder is the Caisse des Dépôts group.

The text of this press release is available on the Icade website: www.icade.fr/en

CONTACTS
Anne-Sophie Lanaute Head of Financial Communication and	Charlotte Pajaud-Blanchard	Marylou Ravix
Investor Relations	Press Relations Manager	External Communication Manager
+33 (0)1 41 57 70 29	+33 (0)1 41 57 71 19	+33 (0)7 88 30 88 51
anne-sophie.lanaute@icade.fr	charlotte.pajaud-blanchard@icade.fr	marylou.ravix@icade.fr

APPENDICES

Appendix 1: Leasing activity – Office Property Investment (excluding residential)

	Q1 2023 changes (additions/exits)					Renewals		New leases
	12/31/2022					03/31/2023			Leases
	Leased				Adjustments	Leased	Q1 2023	Leases starting	starting after
Asset classes	floor area Additions		Exits	Disposals	(*)	floor area	renewals	in Q1 2023	Q1 2023	Total
On a full consolidation basis	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)
Offices	808,498	1,177	(1,422)	-	17	808,270	20,450	518	371	890
Business parks	542,083	6,979	(12,105)	-	(276)	536,681	24,862	412	12,362	12,774
Other assets	145,639	54	(1,789)	-	45	143,949	11	54	180	234
LIKE-FOR-LIKE SCOPE (A)	1,496,220	8,210	(15,317)		(214)	1,488,899	45,323	984	12,913	13,897
Offices	-	-	-	-	-	-	-	-	-	-
Business parks	13,211	3,634	-		-	16,845	-	-	-	-
Other assets	-	-	-	-	-	-	-	-	-
ACQUISITIONS / COMPLETIONS / REFURBISHMENTS (B)	13,211	3,634	-	-	-	16,845	-	-	-	-
						-
SUBTOTAL (A+B)	1,509,431	11,844	(15,317)	-	(214)	1,505,744	45,323	984	12,913	13,897
Offices	-	-	-	-	-	-	-	-	-	-
Business parks	-	-	-	-	-	-	-	-	-	-
Other Office Property Investment assets	-	-	-	-	0	-	-	-	-	-
DISPOSALS (C)	-	-	-	-		-	-	-	-	-
OFFICE PROPERTY INVESTMENT (A) + (B)	1,509,431	11,844	(15,317)	-	(214)	1,505,744	45,323	984	12,913	13,897

(*) Change in floor areas as a result of a new survey by a licensed surveyor

Appendix 2: Reconciliation of revenue on a proportionate consolidation basis to revenue on a full consolidation basis

	03/31/2023			03/31/2022 restated*
			IFRS			IFRS
(in millions of euros)	Proportionate	Adjustment(1)	consolidation	Proportionate	Adjustment(1)	consolidation
Gross rental income from Office Property	83.3	3.1	86.4	85.7	2.8	88.5
Investment Other rental income**	4.7	(0.8)	4.0	5.5	(1.0)	4.5
Property Development revenue	202.3	(10.1)	192.2	240.8	(13.1)	227.8
Other revenue***	6.3	(2.3)	4.0	5.7	(2.1)	3.6
CONSOLIDATED REVENUE	296.6	(9.9)	286.7	337.7	(13.2)	324.5

* : Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5.

** : Other Office Property Investment assets

*** : Intra-group operations

(1) Adjustment for non-controlling interests and joint ventures