FINANCIAL REPORT

JUNE 30, 2023

PERFORMANCE INDICATORS 4
1. Key indicators 5
2. Share performance and shareholding structure 6
3. Solid outlook, 2023 guidance unchanged and clarified 7
PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES 9
1. Group 10 1.1. H1 2023 highlights and events after the reporting period 10
1.2. The Group's key indicators13
1.3. EPRA reporting 14
1.4. Financial resources19
2. Commercial Property Investment Division 26 2.1. Market update26
2.2. Commercial Property Investment portfolio28
2.3. Changes in value of the Commercial Property Investment portfolio on a proportionate consolidation basis29
2.4. Investments31
2.5. Asset disposals32
2.6. EPRA earnings from Commercial Property Investment33
2.7. Changes in rental income from Commercial Property Investment33
2.8. Leasing activity of the Commercial Property Investment Division35
3. Property Development Division 37 3.1. Market update37
3.2. Income statement and performance indicators38
3.3. Growth potential 44
3.4. Working capital requirement and debt 44
4. "Discontinued operations" under IFRS: Healthcare Property Investment 45 5. The Icade Group's segmented income statement 47
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2023 49
Consolidated financial statements as of June 30, 2023 50
Notes to the condensed consolidated financial statements as of June 30, 2023 54
Statutory Auditors' report on the 2023 interim financial information 92

DECLARATION BY THE PERSON RESPONSIBLE FOR THIS DOCUMENT

I certify that, to the best of my knowledge, the condensed consolidated financial statements for the past half-year have been drawn up in accordance with applicable accounting standards, and give a true and fair view of the assets and liabilities, financial position, and profits and losses of the Company, and of all the companies included in its scope of consolidation; and that the attached half-year management report presents a true and fair view of the major events that took place in the first half of the year, their impact on the financial statements, the main related-party transactions, and a description of the main risks and uncertainties for the remaining six months of the year.

Issy-les-Moulineaux, July 24, 2023

Nicolas Joly Chief Executive Officer

1. KEY INDICATORS 5
2. SHARE PERFORMANCE AND SHAREHOLDING STRUCTURE 6
3. SOLID OUTLOOK, 2023 GUIDANCE UNCHANGED AND CLARIFIED 7

1. Key indicators

Performance indicators

GROUP INDICATORS as of 06/30/2023 ⁰ €696.6m €111.2m IFRS revenue +0.6% NCCF (proportionate) +0.4% (pro forma for the disposal of Icade Santé) €6.0bn – €79.3 per share €7.2bn -11.8% -6.4% EPRA NTA (1) Commercial Property Investment portfolio (proportionate, excl. duties) 5 years 1.59%(2) 29.4% +41 bps -0.3 year Average debt maturity Average cost of debt LTV ratio (value incl. duties) After the July 5, 2023 sale After the July 5, 2023 sale After the July 5, 2023 sale

COMMERCIAL PROPERTY INVESTMENT

€181.1m €583.4m

-2.1% ⁺ 1.7% Gross rental income (proportionate)

Net to gross rental income ratio Operating margin

Pro forma NCCF -3.7% (proportionate) NCCF + 4.8% (proportionate)

Portfolio yield (proportionate, incl. duties) PROPERTY

DEVELOPMENT

Economic revenue

88.9% 5.7%

€99.6m €13.6m

6.6% €1.8bn Backlog

(1) EPRA NTA: Net Tangible Asset Value, a NAV that assumes that entities buy and sell property assets (2) after hedging and pro forma for Healthcare

2. Share performance and shareholding structure

Shareholding structure as of 06/30/2023

Icade has a solid ownership structure as the Caisse des Dépôts Group is its leading shareholder with a 39.2% stake followed by CAA, its second largest shareholder with 19.1%. The remaining share capital, representing nearly 42%, is free float. Icade is a French Listed Real Estate Investment Company (SIIC) on Euronext Paris.

*Including 0.61% of treasury shares and 0.37% for Icade's "FCPE" employee-shareholding fund (as of 06/30/2023).

Share performance as of June 30, 2023

In H1 2023, listed real estate investment companies continued to be faced with highly volatile interest rates which remained high. The outlook is still fraught with uncertainty as to the future easing of central bank policies, with still-high inflation despite the rapid and significant rise in key interest rates in recent months.

As such, EPRA Europe Index has fallen -7.61% since January 1, 2023.

As of June 30, 2023:

Market capitalisation of €2.9 billion as of June 30, 2023:

Trading volume on Euronext Paris of 12,289,900 shares in H1 2023

(i.e. an average daily trading volume of 96,771 shares);

Volume of 26,185,380 shares on all trading platforms combined

(i.e. an average daily trading volume of 206,184 shares);

Icade's share price stood at €38.18 as of June 30, 2023, down -5.12%

(-0.8% with dividends reinvested) compared to the end of 2022.

1 CAPITALISATION as of June 30, 2023 ¹ €2,911m 1 NUMBER OF LISTED SHARES as of June 30, 2023 ¹ 76,234,545

3. Solid outlook, 2023 guidance unchanged and clarified

Nicolas Joly, Icade's new CEO since April 21, 2023, reviewed all of the Group's business activities and provides an initial assessment below:

Commercial Property Investment: Icade is well positioned in an office market that is currently recovering from the Covid crisis.

Due to new ways of working and living, a new financial environment and higher expectations in terms of environmental performance, the portfolio's segmentation has to be rethought:

Stage 1: A new approach to business parks
- o Office assets in business parks are now included in the "office" segment while the former "light industrial" sub-segment is now a separate segment (9% of the portfolio).
Stage 2: An in-depth analysis of the outlook for all of the office assets (85% of the portfolio) in view of new ways of working and living. The Commercial Property Investment portfolio can now be broken down into three categories:
- o Well-positioned offices (73%): high-quality assets adapted to future expectations (central locations, environmental criteria, amenities and flexibility), with confidence in the long-term relevance of brick-and-mortar offices (financial occupancy rate above 90%, good central locations, etc.);
- o Assets to be repositioned (13%): conversion or disposal currently being considered;
- o Business park offices (14%): assets with a well-established demand for office space and solid tenants; some assets are nonetheless in oversupplied office markets and are currently being reviewed in order to reclassify them as either "Wellpositioned" or "To be repositioned".

The remaining assets¹ of the Commercial Property Investment Division include a land bank which has strong potential. It only represents 2% of the portfolio value with 500,000 sq.m of space that could potentially be developed (review underway).

Property Development: Icade Promotion, the 6th largest property developer in France² , has a proven capacity to adapt to the new environment. In addition, the Icade Group allocates up to 10% of its equity to Icade Promotion and, as such, provides this subsidiary with a supportive and secure framework.
In addition, in the current environment, the complementarity between our Property Investment and Property Development businesses is an undeniable advantage allowing us to address the new challenges of creating the city of tomorrow.

¹ The remaining assets account for 6% of portfolio value, comprising the land bank for 2% and "other" for 4% including retail and hotel assets. 2

In terms of 2022 revenue (source: annual report)

In light of the above, the Group will draw up a new roadmap in the coming months to provide Icade shareholders with an updated mediumterm outlook.

Lastly, based on a solid H1 performance, Icade has kept its full-year guidance unchanged and now presents it on a pro forma basisfollowing the deconsolidation of the Healthcare business, which took effect after completion of the sale's first stage:

• Pro forma 2023 Group net current cash flow of between €2.95 and €3.05 per share expected, including the impact of 2023 disposals.

As announced, the Board of Directors has provided further information about its dividend policy for 2023 which is subject to shareholder approval at the General Meeting:

Recurring dividend: amount corresponding to the minimum legal distribution obligation³ ;
Minimum special dividend: €2.54 per share in 2024 (i.e. 50% of the SIIC distribution obligation with regard to capital gains on disposal generated in the first stage of the Healthcare sale);
FY 2023 dividend more than 10% higher than 2022 dividend.

The strategic plan currently being prepared is expected to be announced in late 2023 or early 2024.

³ Calculated based on pro forma NCCF plus dividends received in 2023 from Icade Santé

1. GROUP 10
1.1. H1 2023 highlights and events after the reporting period 10
1.2. The Group's key indicators 13
1.3. EPRA reporting 14
1.4. Financial resources 19

2. COMMERCIAL PROPERTY INVESTMENT DIVISION 26
2.1. Market update 26
2.2. Commercial Property Investment portfolio 28
2.3. Changes in value of the Commercial Property Investment portfolio on a proportionate consolidation basis 29
2.4. Investments 31
2.5. Asset disposals 32
2.6. EPRA earnings from Commercial Property Investment 33
2.7. Changes in rental income from Commercial Property Investment 33
2.8. Leasing activity of the Commercial Property Investment Division 35
3. PROPERTY DEVELOPMENT DIVISION 37
3.1. Market update 37
3.2. Income statement and performance indicators 38
3.3. Growth potential 44
3.4. Working capital requirement and debt 44
4. "DISCONTINUED OPERATIONS" UNDER IFRS: HEALTHCARE PROPERTY INVESTMENT 45
5. THE ICADE GROUP'S SEGMENTED INCOME STATEMENT 47

1. Group

1.1. H1 2023 highlights and events after the reporting period

A new CEO appointed in April 2023

On March 1, 2023, Icade's Board of Directors resolved to appoint Nicolas Joly as CEO of Icade effective April 25, 2023.

Nicolas Joly, 40, a CentraleSupélec graduate, had been Head of M&A at the Casino Group and Chairman of Casino Immobilier since 2016. He joined the Casino Group in 2008 as Head of Real Estate Investments before becoming Head of Real Estate in 2011, then Executive Vice-Chairman in charge of Real Estate in 2013. Nicolas Joly began his career in 2004 as an analyst at Unibail-Rodamco-Westfield, where he was appointed Deputy Head of Investments in 2006.

The incoming CEO's priorities will include drawing up a new roadmap with the latest strategic developments that need to be factored in, such as the sale of the healthcare business and current market trends.

Completion of the sale of Icade Sant , one of the Group's priorities in 2023

On June 13, 2023, Icade signed a sale and purchase agreement with Primonial REIM and the minority shareholders of both Icade Santé and IHE. This agreement provides for the three-stage sale of its entire healthcare property portfolio worth a total of €2.6 billion based on EPRA NTA as of December 31, 2022.

The first stage of the transaction was completed on July 5, 2023. It involved the sale of 63% of Icade's stake in Icade Sant for €1.4 billion, based on a valuation in line with EPRA NTA as of December 31, 2022, after adjusting for the 2022 dividend.

Pursuant to the agreements, Icade's remaining stake in Icade Sant will be acquired between now and the end of 2025 by funds managed by Primonial REIM France using their inflows and/or by new institutional investors identified by the management company. These new investors might even acquire shares before the end of 2023.

The completion of this first stage will result in the Icade Group's healthcare business being deconsolidated from its financial statements in H2 2023.

Pro forma NCCF figures for H1 2023, excluding Healthcare and intercompany recharges between the Commercial and Healthcare Property Investment Divisions and taking into account the cash generated by the first stage of the divestment of the Healthcare business, were prepared in order to better assess the initial impact of this transaction.

Market conditions that remain challenging

For the past 18 months, the economic and financial environment has been particularly complex and volatile. It is clear that the sharp rise in interest rates together with high inflation has weighed heavily on the real estate sector.

Nevertheless, Icade has been resilient and even announced a slight increase in NCCF as of June 30, 2023 year-on-year, reflecting the Group's solid operating and financial performance.

As such, pro forma Group NCCF (excluding Healthcare and after adjustment for intercompany recharges between the Commercial and Healthcare Property Investment Divisions) amounted to €111.2 million, i.e. +€0.5 million (+0.4%) vs. June 2022 (pro forma).

In addition, this transaction enabled Icade to generate significant cash to bolster its balance sheet and improve its LTV ratio, which stood at 29% following the sale.

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

	06/30/2023 pro forma	06/30/2022 pro forma	Change (in €m)	Change (in %)
(+) Group net current cash flow (in €m)	206.3	204.7	1.7	0.8%
(-) Adjustment for net current cash flow from Healthcare Property Investment Division's discontinued operations (in €m)	(85.6)	(80.6)	(4.9)	6.1%
(-) Intercompany recharges between the Commercial Property Investment and Healthcare Property Investment Divisions (1) (in €m)	(9.6)	(13.3)	3.7	(28.1%)
(=) Pro forma Group net current cash flow (in €m)	111.2	110.7	0.5	0.4%
(=) Pro forma Group net current cash flow (in € per share)	€1.5	€1.5	€0.0	0.4%
including:
Pro forma net current cash flow from Commercial Property Investment (in €m)	99.6	103.4	(3.8)	(3.7%)
Pro forma net current cash flow from Commercial Property Investment (in € per share)	€1.3	€1.4	(€0.1)	(3.7%)
Net current cash flow from Property Development (in €m)	13.6	12.9	0.6	4.8%
Net current cash flow from Property Development (in € per share)	€0.2	€0.2	€0.0	4.8%
Net current cash flow – Other (in €m)	(2.0)	(5.6)	3.7	N/A

(1) Intercompany recharges between Property Investment Divisions mainly included property management fees, administrative services as well as interest on loans, shareholder loans and cash pooling.

Commercial Property Investment: an active H1 despite a slowing market

In H1, the Commercial Property Investment Division signed or renewed nearly 50 leases covering more than 100,000 sq.m and with an average lease term of 6.4 years, ensuring annual headline rental income of €27 million in the coming years.

Furthermore, in H1 Icade focused on its projects under development, which were worth €74 million, i.e. the bulk of total investments worth €122 million as of June 30, 2023 (down -€1.5 million on the previous year). This figure remains historically low and reflects the deliberate slowdown in the number of projects in a market undergoing change.

Disposals in H1 totalled €88 million and included the sale of the Eko Active building in Marseille for €48.0 million and completion of the sale of its portfolio of individual condominium housing units to the RLF Group for close to €40.0 million.

In addition, the Grand Central building in Marseille and the Nautilus building in Bordeaux were subject to preliminary sale agreements as of June 30, 2023. These transactions are scheduled for H2 2023.

Property Development: resilient indicators amid a challenging economic and financial environment

Since the beginning of 2023, the property development market has seen a marked slowdown, with order levels falling, particularly in the residential segment, due to the impact of rising interest rates. Icade Promotion has adapted its business to these new market conditions, in particular by relying on bulk sales, increasing the selectivity of projects launched in volume terms and adjusting to new demand levels.

As a result, Icade Promotion's revenue in H1 amounted to €583 million, up +1.7% on H1 2022, with its margin up year-on-year (5.7% vs. 5.5%).

Residential:

Bulk orders were up +4% in value terms in H1;
Construction starts fell by -13% in volume terms in H1 2023 as projects were subject to a stricter minimum sales threshold required in order to start construction, i.e. 40% vs. 30% previously.

Commercial:

Icade Promotion has adopted a more defensive and opportunistic strategy for its commercial projects, including the sale of a 3,100-sq.m building at 43-45 rue Taitbout, 75009 Paris, which enabled it to optimise its WCR in a tighter environment.

Further optimisation of our funding structure and use of green finance

Thanks to its high percentage of fixed rate and hedged debt as well as the sale of the Healthcare business, Icade further strengthened its balance sheet. This allowed its financial performance to be minimally affected by the market environment which remained considerably unsettled in H1 2023 as financial markets were highly volatile and interest rates continued to rise.

The Group continued to streamline, optimise and reinforce its financial structure while reining in finance costs and taking advantage of higher interest rates by implementing a proactive cash investment policy (see section 1.4 "Financial resources").

Lastly, following its annual review on July 18, 2023, Standard & Poor's affirmed its rating of BBB+ with a stable outlook.

CSR policy

On February 23, 2023, Icade Promotion obtained the first-ever ATEx (Technical Experimentation Assessment) approval for the wide-scale use of timber-frame façades in France. This ATEx is in addition to the one received in 2021. These two ATEx approvals are the result of a collaborative approach to concurrent engineering developed by Icade Promotion with its various industrial partners such as Sto France. These low-carbon solutions will benefit the entire industry with a view to their wide-scale application and production cost control.

On April 17, 2023, the establishment of the 'Ecorce' Industry Chair was announced at Forum International Bois Construction, a timber construction forum in Lille, by École Supérieure du Bois (ESB), Icade Promotion and its subsidiary Urbain des Bois, Eiffage Construction and Saint-Gobain Solutions France. This Industry Chair aims to optimise, both technically and economically, multi-material solutions for timber construction with the goal of scaling them up in the property development sector and decarbonising construction.

Lastly, for the second year in a row, Icade submitted a Say on Climate & Biodiversity resolution for approval at the General Meeting. It took advantage of this occasion to clearly set out its biodiversity and carbon reduction goals (biodiversity-report-2022.pdf).

General Meeting and governance

The Combined General Meeting was held on April 21, 2023 and chaired by Mr Frédéric Thomas, Chairman of the Board of Directors.

Mr J r me Lucchini was appointed as the General Meeting's Secretary.

All the resolutions proposed at the General Meeting were approved by a large majority.

In particular, the General Meeting:

Approved the separate and consolidated financial statements for the financial year ended December 31, 2022;
Approved the distribution of a gross cash dividend of €4.33 per share for the financial year 2022. In accordance with the decision made by the Board of Directors on February 17, 2023, a gross interim dividend of €2.16 per share was paid on March 2, 2023, with shares having gone ex-dividend on February 28, 2023, and the remaining balance was paid in the form of a gross final dividend of €2.17 per share on July 6, 2023, with shares having gone ex-dividend on July 4, 2023;
Approved the new regulated related party agreements mentioned in the Statutory Auditors' special report;
Reappointed Caisse des Dépôts et Consignations, Mr Emmanuel Chabas, Mr Gonzague de Pirey and Mr Antoine Saintoyant as directors; Approved the remuneration policies for directors, the Chairman of the Board of Directors and the Chief Executive Officer;
Approved the elements of remuneration for the Chairman of the Board of Directors and the Chief Executive Officer for the 2022 and 2023 financial years;
Issued a favourable opinion on Icade's goals and progress with respect to climate transition and biodiversity preservation;
Renewed the financial authorisations and delegations to be given to the Board of Directors.

After this General Meeting, the Board of Directors of the Company met on April 21, 2023 and made the following decisions:

The appointment of Mr Nicolas Joly as Chief Executive Officer of Icade for a period of four years, i.e. until the General Meeting to be held in 2027;
The appointment of Mr Emmanuel Chabas as a member of Icade's Strategy and Investment Committee.

The composition of the Board of Directors is unchanged with 15 directors, including 5 independent directors. The composition and chairmanship of the four committees of the Board of Directors also remain unchanged, except for the appointment of Mr Emmanuel Chabas as a member of Icade's Strategy and Investment Committee.

Lastly, the Board of Directors noted that Mr Guillaume Poitrinal resigned as director for personal reasons. The Appointments and Remuneration Committee chaired by Ms Marie-Christine Lambert is currently conducting a selection process to appoint a new independent director to maintain the proportion of independent directors on the Board of Directors at 33%.

1.2. The Group's key indicators

KEY FIGURES AS OF JUNE 30, 2023:

The financial information presented in this press release are pro forma for the sale of Icade Santé for the financial years 2022 and 2023, i.e. adjusted for all financial flows relating to the Healthcare portfolio (P&L and balance sheet, intra-group transactions between Icade and Icade Santé).

	06/30/2023	06/30/2022	Change (in €m)	Change vs. reported (%)
Gross rental income from Commercial Property Investment (in €m)	181.1	185.0	(4.0)	-2.1%
Pro forma EPRA earnings from Commercial Property Investment (in €m)	91.9	98.9	(6.9)	-7.0%
Pro forma EPRA earnings from Commercial Property Investment (in € per share)	1.21	1.30	(0.09)	-7.1%
Pro forma net current cash flow from Commercial Property Investment
(in €m)	99.6	103.4	(3.8)	-3.7%
Pro forma net current cash flow from Commercial Property Investment
(in € per share)	1.31	1.36	(0.05)	-3.7%
Economic revenue from Property Development (in €m)	583.4	573.6	9.8	+1.7%
Net current cash flow from Property Development (in €m)	13.6	12.9	0.6	+4.8%
Net current cash flow from Property Development (in € per share)	0.18	0.17	0.01	+4.8%
Net current cash flow – Other (in €m)	(2.0)	(5.6)	3.7	N/A
Group revenue (in €m)	696.6	692.6	4.0	+0.6%
Pro forma Group net current cash flow (in €m)	111.2	110.7	0.5	+0.4%
Pro forma Group net current cash flow (in € per share)	1.47	1.46	0.01	+0.4%

	06/30/2023	12/31/2022	Change	Change (%)
EPRA NTA per share (in €)	€79.3	€89.8	€(10.6)	-11.8%
EPRA NDV per share (in €)	€87.9	€101.4	€(13.5)	-13.3%
Pro forma average cost of drawn debt	1.59%	1.25%	+34 bps
LTV ratio (including duties)	41.6%	39.3%	+230 bps
LTV ratio (including duties) after the July 5, 2023 Healthcare sale	29.4%

Pro forma for the disposal of the Healthcare Property Investment business, the first stage of which was completed at the beginning of July 2023 for €1.4 billion, Group net current cash flow rose by +0.4% to €111.2 million (€1.47 per share) as of June 30, 2023.

EPRA NTA per share as of June 30, 2023 saw a sharp decrease of -11.8% to €79.3 per share. This resulted from the expected decrease in the portfolio's appraised value as of June 30, 2023 (-6.7% like-for-like). EPRA NDV per share, which includes the fair value of debt, was down by -13.3% to €87.9 per share compared with December 31, 2022.

Lastly, the LTV ratio (the Group's debt ratio) stood at 29.4 , following the sale of 63 of Icade's stake in Icade Santé (see section 1.4.5.1.1 LTV).

In addition, in the Group's financial statements as of June 30, 2023, the Healthcare Property Investment business was classified as discontinued operations, with assets and liabilities presented on two specific lines of the balance sheet in accordance with IFRS 5. In addition, profit/(loss) from Healthcare Property Investment was reclassified to "Profit/(loss) from discontinued operations" for 2023 and 2022.

1.2.1. Summary IFRS consolidated income statement

The income statement as of June 30, 2023, which was also published in the IFRS financial statements along with the notes that accompany them, is presented below. In addition to the current items set out in the previous section, it includes non-current items and the H1 results of the Healthcare business (in "Profit/(loss) from discontinued operations" under IFRS 5).

It should also be noted that IFRS financial statements are prepared on a fair value basis and that, as a result, net profit/(loss) attributable to the Group includes changes in the portfolio's value from one financial year to another (non-current portion).

		06/30/2022 restated
(in millions of euros)	06/30/2023	(a) (b)	Change (in €m)	Change (in %)
Revenue	696.6	692.6	4.0	0.6%
EBITDA	154.8	157.9	(3.0)	-2%
OPERATING PROFIT/(LOSS)	(441.1)	252.3	(693.5)	N/A
FINANCE INCOME/(EXPENSE)	(44.6)	(60.1)	15.6	-26%
Tax expense	(1.2)	(4.1)	2.9	-71%
Profit/(loss) from discontinued operations	39.9	292.9	(253.0)	-86%
NET PROFIT/(LOSS)	(447.0)	481.0	(928.0)	N/A
Including net profit/(loss) attributable to the Group	(475.4)	350.8	(826.2)	N/A

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

(b) Under IFRS 15, income from service charges recharged to tenants was reclassified from "Outside services" to "Other operating income" (see note 3.3).

Icade's revenue rose by +0.6% due to:

A sharp increase of +1.2% in revenue for the Property Development Division thanks to its strong sales performance in 2022;
A moderate decrease in gross rental income for the Commercial Property Investment Division (-2.1%) despite the major disposals in 2022.

Net profit from discontinued operations as of June 30, 2023 of +€39.9 million related to the Healthcare Property Investment business, with NCCF on a full consolidation basis for the period of €147.0 million, changes in property values of +€8.5 million, a loss on measuring the Healthcare Property Investment business at fair value of -€117.7 million and estimated costs to sell this business of -€8.6 million.

Net profit attributable to the Icade Group, which, in addition to Group NCCF, includes non-current items over the half-year, was down sharply compared to H1 2022 (-€826.2 million), adversely affected by the negative like-for-like change in asset valuations for the Commercial Property Investment business in H1 2023 (-6.7% compared with December 31, 2022), in line with market changes observed in a new interest rate environment.

1.3. EPRA reporting

Icade presents below all its performance indicators as defined by the European Public Real Estate Association (EPRA) and as calculated in accordance with its recommendations. These are all leading indicators for the property investment industry.

Note: The Group net current cash flow presented for all three business lines (Commercial Property Investment, Healthcare Property Investment and Property Development) is not an EPRA indicator. However, the Icade Group uses it as a single performance indicator for its three business lines.

1.3.1. EPRA net asset value metrics as of June 30, 2023

Net asset value (NAV) measures the value of the Company based on changes in equity and changes in value of asset portfolios, liabilities and property development companies.

EPRA recommended the use of three NAV metrics, namely:

EPRA Net Tangible Assets (NTA), a NAV that assumes that entities buy and sell assets;
EPRA Net Disposal Value (NDV), a NAV that includes the fair value of debt and derivatives;
EPRA Net Reinstatement Value (NRV), a NAV that represents the value required to rebuild the entity including real estate transfer taxes.

The Group's EPRA NTA amounted to €79.3 per share (€6,011.4 million), down -11.8% compared to December 31, 2022, including:

A significant decrease of -€6.8 per share (-€513.5 million, i.e. -6.7% on a proportionate consolidation basis) in the Commercial Property Investment portfolio values on a like-for-like basis;
A first interim dividend payment of -€2.15 per share (-€164.0 million);

Offset by:

• Net current cash flow for the period at +€2.72 per share (€206.3 million).

The Group's EPRA NDV stood at €87.9 per share (€6,664.5 million), down by -13.3% in per share terms compared to December 31, 2022 driven by the same factors and the negative effect of the fair value of fixed rate debt over the period for -€3.7 per share (-€281.3 million change compared to December 31, 2022).

Lastly, the Icade Group's EPRA NRV was €84.2 per share (€6,388.5 million) as of June 30, 2023, following the same downward trend as EPRA NDV, i.e. -13.3% in H1.

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

Consolidated equity attributable to the Group 5,778.4 6,587.9 6,835.4 Amounts payable to shareholders (a) 165.4 0.0 160.1 Unrealised capital gains on property assets and property development companies 110.5 213.1 242.2 Tax on unrealised capital gains (6.4) (9.9) (10.5) Other goodwill (2.9) (2.9) (2.9) Remeasurement of financial instruments 619.6 900.9 594.4 EPRA NDV (Net Disposal Value) 6,664.5 7,689.0 7,818.8 EPRA NDV per share (in €) 87.9 101.4 103.0 Change during the half-year (13.3%) (1.6%) Year-on-year change (14.7%) Adjustment for tax on unrealised capital gains 6.4 9.9 10.5 Deferred tax on investment property - 2.1 1.8 Intangible fixed assets (27.6) (29.4) (26.3) Optimisation of transfer tax on the fair value of property assets 66.7 165.6 167.4 Adjustment for remeasurement gains or losses on financial instruments (698.7) (1,023.3) (672.9) EPRA NTA (Net Tangible Assets) 6,011.4 6,813.9 7,299.3 EPRA NTA per share (in €) 79.3 89.8 96.2 Change during the half-year (11.8%) (6.6%) Year-on-year change (17.6%) Other goodwill 2.9 2.9 2.9 Adjustment for intangible fixed assets 27.6 29.4 26.3 Adjustment for the optimisation of transfer tax on the fair value of property assets (66.7) (165.6) (167.4) Transfer tax on the fair value of property assets 413.4 685.4 716.3 EPRA NRV (Net Reinstatement Value) 6,388.5 7,366.1 7,877.4 EPRA NRV per share (in €) 84.2 97.1 103.8 Change during the half-year (13.3%) (6.5%)	(in millions of euros)	06/30/2023	12/31/2022	06/30/2022


























	Year-on-year change	(18.9%)

NUMBER OF FULLY DILUTED SHARES (b) 75,845,951 75,861,406 75,763,850

(a) As of June 30, 2022 and June 30, 2023, final dividend for the previous financial year paid in July 2022 and July 2023, respectively. (b) Stood at 75,845,951 as of June 30, 2023, after cancelling treasury shares (-464,679 shares) and the positive impact of dilutive instruments (+76,085 shares).

1.3.2. EPRA earnings from Commercial Property Investment

EPRA earnings from Commercial Property Investment measure the performance of the recurring (current) operations of the Commercial Property Investment Division.

				Change 2023
			06/30/2022	vs. 2022
	(in millions of euros)	06/30/2023	restated (a)	restated (%)
	NET PROFIT/(LOSS)	(447.0)	481.0
	Net profit/(loss) from other activities (b)	27.4	285.1
(1)	NET PROFIT/(LOSS) FROM COMMERCIAL PROPERTY INVESTMENT	(474.4)	196.0
(i)	Changes in value of investment property and depreciation charges	(565.2)	103.9
(ii)	Profit/(loss) on asset disposals	0.2	(10.9)
(iii)	Profit/(loss) from acquisitions	-	-
(iv)	Tax on profits or losses on disposals and impairment losses
(v)	Negative goodwill / goodwill impairment		-
(vi)	Changes in fair value of financial instruments and restructuring of financial liabilities	(1.5)	(14.7)
(vii)	Acquisition costs on share deals
(viii)	Tax expense related to EPRA adjustments	-	-
(ix)	Adjustment for equity-accounted companies	(4.0)	2.5
(x)	Non-controlling interests	3.8	4.3
(xi)	Other non-recurring items	(9.1)	(1.3)
(2)	TOTAL ADJUSTMENTS	(575.9)	83.8
(1-2)	EPRA EARNINGS FROM COMMERCIAL PROPERTY INVESTMENT	101.5	112.2	(9.5)%
	(-) Intercompany recharges between the Commercial Property Investment and Healthcare
	Property Investment Divisions (c)	(9.6)	(13.3)
	PRO FORMA EPRA EARNINGS FROM COMMERCIAL PROPERTY INVESTMENT	91.9	98.9	(7.0)%

(a) Reclassification of the Healthcare Property Investment Division as discontinued operations in accordance with IFRS 5.

(b) "Other activities" include property development, "Intersegment transactions and other items" as well as discontinued operations.

(c) Intercompany recharges between Property Investment Divisions mainly included property management fees, administrative services as well as interest on loans, shareholder loans and cash pooling (see note 1.1).

Pro forma EPRA earnings from Commercial Property Investment totalled €91.9 million as of June 30, 2023, down -7.0% compared to June 30, 2022, particularly due to significant disposals in 2022.

Pro forma net current cash flow from Commercial Property Investment, which is obtained by adjusting EPRA earnings for the depreciation of operating assets, amounted to €99.6 million as of June 30, 2023, down -3.7% compared to June 30, 2022 (€103.4 million). It should be noted that EPRA earnings only take into account Property Investment activities. The Property Development business is therefore not included in this aggregate.

1.3.3. EPRA LTV ratio

The table below presents a reconciliation of the LTV ratio (value incl. duties) based on Icade's historical calculation method to the EPRA LTV ratio on a full and proportionate consolidation basis.

The EPRA LTV ratio, on a proportionate consolidation basis and pro forma for the first stage of the sale of the healthcare business completed in early July 2023 for €1.4 billion, stood at 35.2% including duties.

	LTV bank covenant As reported in the IFRS consolidated financial statements (full consolidation)	Adjustments EPRA LTV ratio on a full consolidation basis	EPRA LTV ratio Before the share of joint ventures and adjustment for non controlling interests	Share of joint ventures and adjustment for non-controlling interests	EPRA LTV ratio on a propor tionate consolidation basis
EPRA LTV ratio as of 06/30/23
	(1)	(2)	(1)+(2)	(3)	(1)+(2)+(3)
Bonds	4,650		4,650	(457)	4,193
Borrowings from credit institutions	2,685		2,685	(684)	2,001
NEU Commercial Paper	368		368	0	368
Net payables		426	426	(30)	396
Interest accrued and amortised issue costs	(7)		(7)	2	(5)
Payables associated with equity investments	103		103	17	120
Derivative instruments	(147)		(147)	31	(116)
Excluding:	-
Financial assets	(156)	156	0	0
Cash and cash equivalents	(738)		(738)	11	(727)
NET FINANCIAL LIABILITIES	(a) 6,758	583	7,341	(1,110)	6,231

VALUE OF THE PROPERTY PORTFOLIO AND OTHER ASSETS	(b) 15,361	63	15,424	(2,971)	12,453

VALUE OF THE PROPERTY PORTFOLIO INCLUDING DUTIES	(c) 16,247		16,310	(3,183)	13,127
LTV ratio excluding duties	(a/b) 44.0%		47.6%		50.0%
LTV ratio including duties	(a/c) 41.6%		45.0%		47.5%
LTV ratio including duties post-Healthcare sale (a)	29.4%		36.6%		35.2%

(a) LTV ratio including duties taking into account the first stage of the sale of Icade Santé completed on July 5, 2023 and the impact of the divestment of the Healthcare Property Investment Division.

1.3.4. EPRA yield – Commercial Property Investment

The table below presents a reconciliation of Icade's net yield to EPRA yields. The calculation takes into account all Commercial Property Investment properties in operation. It is presented on a proportionate consolidation basis.

Icade's net yield (including duties) stood at 6.6%, up 60 bps compared to December 31, 2022. Using the EPRA calculation method, the Group's EPRA net initial yield stood at 5.0%, up 50 bps compared to December 31, 2022. It mainly reflects how values were impacted by the overall increase in risk-free rates.

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

(Operating assets – on a proportionate consolidation basis)	06/30/2023	12/31/2022 restated (a)	06/30/2022 restated (a)

ICADE NET YIELD – INCLUDING DUTIES (b)	6.6%	6.0%	5.6%
Adjustment for potential rental income from vacant space	-0.9%	-0.7%	-0.7%
EPRA TOPPED-UP NET INITIAL YIELD (c)	5.7%	5.2%	4.9%
Inclusion of rent-free periods	-0.8%	-0.7%	-0.6%
EPRA NET INITIAL YIELD(d)	5.0%	4.5%	4.2%

(a) Reclassification of the Healthcare Property Investment Division as discontinued operations in accordance with IFRS 5. (b) Annualised net rental income from leased space plus potential net rental income from vacant space based on estimated rental value, excluding lease incentives, divided by the appraised value (including duties) of operating properties.

(c) Annualised net rental income from leased space, excluding lease incentives, divided by the appraised value (including duties) of operating properties.

(d) Annualised net rental income from leased space, including lease incentives, divided by the appraised value (including duties) of operating properties.

As of June 30, 2023, the Group's EPRA yield stood at 5.0%, up +50 bps over 6 months.

			Commercial Property Investment
On a proportionate consolidation basis, in €m		06/30/2023	Offices	Business parks	Other	12/31/2022
Fair value excl. duties		7,234	5,258	1,731	245	7,726
including equity-accounted assets		97	77	-	21	101
Adjustment for non-operating assets and other(1)		937	653	203	81	685
VALUE (EXCLUDING DUTIES) OF OPERATING ASSETS		6,298	4,605	1,528	164	7,042
Duties		375	261	103	11	421
VALUE (INCLUDING DUTIES) OF OPERATING ASSETS	A	6,673	4,867	1,631	175	7,463
Annualised IFRS gross rental income		336	223	97	16	341
Non-recoverable property expenses		(4)	(1)	(1)	(2)	(3)
ANNUALISED IFRS NET RENTAL INCOME	B	332	222	96	14	338
Additional rental income at the expiry of rent-free periods or other lease incentives		50	36	12	2	53
TOPPED-UP ANNUALISED NET RENTAL INCOME	C	382	258	108	15	391
EPRA NET INITIAL YIELD	B/A	5.0%	4.6%	5.9%	7.9%	4.5%
EPRA TOPPED-UP NET INITIAL YIELD	C/A	5.7%	5.3%	6.7%	8.8%	5.2%

(1) Properties under development, land bank and floor space awaiting refurbishment. Includes an adjustment for residential properties (condominium units subject to a preliminary sale agreement) and assets treated as financial receivables (PPPs).

1.3.5. EPRA vacancy rate – Commercial Property Investment

The EPRA vacancy rate is defined as the ratio between the estimated rental value of vacant space and the estimated rental value of the whole portfolio. It was calculated for operating assets as of June 30, 2023.

Below are detailed figures concerning the vacancy rate, in accordance with the definition recommended by EPRA, for the Commercial Property Investment portfolio, on a proportionate consolidation basis.

(Operating assets – on a proportionate consolidation basis)	06/30/2023	12/31/2022
Offices	13.0%	11.0%
Business parks	17.1%	16.6%
TOTAL (a)	14.4%	12.7%

(a) Including other assets and excluding residential properties and PPPs

Breakdown of the EPRA vacancy rate by asset type

		Estimated rental value of	EPRA vacancy rate
	Estimated rental value of vacant space	the whole portfolio	as of 06/30/2022
	(in millions of euros) (A)	(in millions of euros) (B)	(= A/B)
Offices	35.5	273.9	13.0%
Business parks	21.9	127.9	17.1%
Other Commercial Property Investment assets	2.6	16.3	15.8%
TOTAL (a)	60.0	418.1	14.4%

(For leasable space in operating assets, on a proportionate consolidation basis)

(a) Including other assets and excluding residential properties and PPPs

The EPRA vacancy rate stood at 14.4%, up +170 bps from December 31, 2022:

The vacancy rate for the office segment rose by +200 bps over six months due to tenant departures, notably Siemens from the Sisley building in Saint-Denis. The positive effect of the 14,200-sq.m lease signed with EDF Renouvelables in the Origine building has not yet been taken into account (vacancy rate expected to decrease by -200 bps, all other things being equal).
The business park segment saw a more moderate increase of +50 bps over six months, mainly due to the departure of a tenant from an office building in the Rungis business park.

1.3.6. EPRA cost ratio – Commercial Property Investment

Detailed figures on the EPRA cost ratio for the Commercial Property Investment portfolio are presented below.

(in millions of euros)	06/30/2023 pro forma	06/30/2022 pro forma
Including:
Structural costs and other overhead expenses	(42.2)	(43.2)
Service charges net of recharges to tenants	(19.0)	(16.4)
Other recharges intended to cover overhead expenses	19.4	19.0
Share of overheads and expenses of equity-accounted companies	(2.8)	(2.4)
Share of overheads and expenses of non-controlling interests	2.0	1.5
Excluding:
Ground rent costs	(0.1)	(0.0)
Other service charges recovered through rents but not separately invoiced
(A) EPRA COSTS (INCLUDING DIRECT VACANCY COSTS)	(42.4)	(41.3)
Less: direct vacancy costs	(21.5)	(19.3)
(B) EPRA COSTS (EXCLUDING DIRECT VACANCY COSTS)	(21.0)	(22.1)
Gross rental income less ground rent costs	180.0	183.9
Plus: share of gross rental income less ground rent costs of equity-accounted companies	3.9	3.7
Share of gross rental income less ground rent costs of non-controlling interests	(8.4)	(8.2)
(C) GROSS RENTAL INCOME	175.5	179.4
(A/C) EPRA COST RATIO – COMMERCIAL PROPERTY INVESTMENT (INCL. DIRECT VACANCY COSTS)	24.2%	23.0%
(B/C) EPRA COST RATIO – COMMERCIAL PROPERTY INVESTMENT (EXCL. DIRECT VACANCY COSTS)	11.9%	12.3%

As of June 30, 2023, the EPRA cost ratio excluding vacancy costs was down -0.4 pp compared to June 30, 2022.

Due to higher vacancy rates, the EPRA cost ratio (including vacancy costs) was up +1.2 pp compared to H1 2022.

	06/30/2023		06/30/2022		Chg.
(in millions of euros)	100%	Proportionate	100%	Proportionate	100%	Proportionate
Acquisitions	6.7	6.7	1.2	1.2	5.4	5.4
Developments	74.4	64.7	79.7	72.1	(5.4)	(7.4)
Including capitalised finance costs	1.7	1.3	0.5	0.5	1.2	0.8
Operational capex	40.6	39.9	42.0	41.6	(1.4)	(1.6)
Including no incremental lettable space	22.1	21.5	40.0	39.6	(17.9)	(18.1)
Including lease incentives	18.5	18.4	2.0	1.9	16.5	16.5
TOTAL CAPEX	121.6	111.3	123.0	114.9	(1.4)	(3.6)
Conversion from accrual to cash basis	18.4	16.0	(34.6)	(31.3)	53.0	47.3
TOTAL CAPEX ON CASH BASIS	103.2	95.3	157.6	146.2	(54.3)	(50.9)

1.3.7. EPRA capex – Commercial Property Investment

Capex totalled €122 million as of June 30, 2023, stable compared to H1 2022. Most of this amount was spent on the development pipeline.

Operational capex, totalling nearly €41 million in H1 2023, mainly included maintenance costs for properties in operation and tenant improvements in line with market practices.

Further details on each Commercial Property Investment portfolio are presented in a specific capex section.

1.4. Financial resources

In an environment still marked by rising interest rates and significant volatility on the financial markets, Icade showed excellent resilience in its debt indicators and kept its net finance expenses under control.

In particular, the increase in finance expenses was moderate thanks to the prudent hedging policy applied over the last number of years and the decision to reduce outstanding NEU Commercial Paper (from €553 million as of December 31, 2022 to €368 million as of June 30, 2023).

Furthermore, the Group's active management of its short-term investments led to a net increase in finance income, offsetting the rise in finance expenses.

In addition, the sale of the Healthcare Property Investment Division, announced in H1, with its first stage completed on July 5, has further significantly strengthened the Group's balance sheet.

Firstly, it has improved the Group's debt indicators. As of June 30, 2023, excluding Healthcare Property Investment, which was reclassified as discontinued operations, the Group's average cost of debt stood at 1.59% (vs. 1.66% as of June 30, 2023 excluding the impact of the deconsolidation), while the average maturity of its debt was 5.0 years (vs. 4.8 years as of June 30, 2023 excluding the impact of the deconsolidation). The 5.55x interest coverage ratio as of June 30, 2023 decreased following the deconsolidation of the Healthcare Property Investment Division. The ICR, pro forma excluding the Healthcare Property Investment Division, remained solid at 4.1x, well above the bank covenant limit of 2x. The increase in finance income from investing the proceeds from the disposal of the Healthcare business as well as the decrease in gross debt and the dividends to be received from Icade Santé from 2024 should help improve this ratio over the coming months (return to 5x expected by the end of 2023).
In addition, the Group's protection against interest rate risk was further strengthened: fixed rate or hedged debt represented 97% of estimated debt for 2023 and over 95% of estimated debt up to the end of 2026 on average (vs. 90% prior to the deconsolidation of the Healthcare business).
Lastly, the Group has a very solid liquidity position which was further strengthened on July 5 after the first stage of the sale of the Healthcare Property Investment Division was completed. As of July 5, 2023, total liquidity amounted to €3.6 billion. It included €1.7 billion in fully undrawn credit lines and €1.9 billion in cash (Icade's cash position of €449.2 million as of June 30, 2023, plus €1,450.0 million in proceeds from the sale of the Healthcare Property Investment Division). Excluding NEU Commercial Paper, since it is a short-term source of financing, liquidity amounted to €3.2 billion and covered more than 5.5 years of debt principal and interest payments.

It should be noted that the disposal of the Healthcare Property Investment Division will reduce the Group's net debt to €2.9 billion, which will have a very positive impact on the Group's balance sheet ratios. As of July 5, 2023, the LTV ratio (including duties) had fallen significantly to 29.4% (vs. 39.3% as of December 31, 2022) and the net debt-to-EBITDA ratio (following the sale of the Healthcare Property Investment Division) stood at 6.5x (vs. 10.1x as of December 31, 2022).

1.4.1. Liquidity

As of June 30, 2023, the Icade Group, excluding the Healthcare Property Investment Division, which was reclassified as discontinued operations, had liquidity totalling €2,129.2 million:

a fully undrawn amount of €1,680.0 million from Icade's credit lines (excluding credit lines for property development projects). This amount was unchanged compared to December 31, 2022;
€449.2 million in closing net cash.

As of July 5, 2023, after the first stage of the sale of the Healthcare Property Investment Division was completed, the Icade Group had a strengthened liquidity position of €3,579.2 million:

a fully undrawn amount of €1,680.0 million from credit lines (excluding credit lines for property development projects);
€1,899.2 million in closing net cash, including €1,450.0 million relating to the sale of the Healthcare Property Investment Division.

Excluding NEU Commercial Paper, since it is a short-term source of financing, liquidity amounted to €3,211.2 million and covered 5.6 years of debt principal and interest payments as of July 5, 2023 (vs. around 4 years as of June 30, 2023).

In H1, Icade continued to turn to the NEU Commercial Paper market for its short-term financing needs. However, the Group reduced the outstanding amount of NEU Commercial Paper in order to limit its impact on finance expenses. As of June 30, 2023, this amount stood at €368 million (vs. €553 million as of December 31, 2022), with an average maturity of 3 months.

1.4.2. Debt structure as of June 30, 2023

Debt by type

The Icade Group's gross financial debt, excluding the Healthcare Property Investment Division, which was reclassified as discontinued operations, amounted to €5,391.2 million. As of June 30, 2023, it comprised:

Icade had diversified sources of financing as of June 30, 2023, with 77% of non-bank debt and 23% bank debt, allowing it to face the financing and refinancing of its debt on various markets with confidence.

As of December 31, 2022, gross debt amounted to €7,960.0 million. The decrease in gross debt in H1 2023 is detailed in the graph below. It mainly resulted from (i) the reclassification of Icade Sant 's debt as discontinued operations and (ii) the reduction in outstanding NEU Commercial Paper.

The change in bank mortgages and bank overdrafts was mainly due to the conversion into a bank overdraft of a €68.0 million loan taken out in April 2022 by SAS Neuilly Victor Hugo, due to the launch of the development project.

The Icade Group's net financial debt, excluding the Healthcare Property Investment Division, which was reclassified as discontinued operations, amounted to €4,483.7 million as of June 30, 2023. As of July 5, after the first stage of the sale of the Healthcare Property Investment Division was completed, net financial debt stood at c. €2,929.8 million.

Debt by maturity

The maturity schedule of Icade's drawn debt (excluding overdrafts) as of June 30, 2023, excluding the Healthcare Property Investment Division, which was reclassified as discontinued operations, was as follows:

MATURITY SCHEDULE OF DRAWN DEBT

(June 30, 2023, in millions of euros)

After the reporting period, a €100 million variable rate loan was repaid using the proceeds from the sale of the Healthcare Property Investment Division. The Group has no further debt maturities in 2024 and its next bond maturity is scheduled for November 2025.

BREAKDOWN OF DEBT BY MATURITY

(June 30, 2023)

The average debt maturity of the Icade Group, excluding the Healthcare Property Investment Division, which was reclassified as discontinued operations, was 5.0 years as of June 30, 2023 (excluding NEU Commercial Paper).

On a like-for-like basis, and including the Healthcare Property Investment Division, the average debt maturity as of June 30, 2023 was 4.8 years, compared with 5.3 years as of December 31, 2022.

Average cost of drawn debt

Thanks to a robust hedging policy, the impact of rising interest rates on the Group's average cost of debt was kept under control. On a likefor-like basis, and including the Healthcare Property Investment Division, in H1 2023, the average cost of debt was 1.96% before hedging and 1.66% after hedging, compared with 1.21% and 1.25%, respectively, in FY 2022. The deconsolidation of the Healthcare Property Investment Division had a positive impact on the average cost of debt, which fell to 1.79% before hedging and 1.59% after hedging. In addition to prudent interest rate hedging, the Icade Group was able to limit the increase in its finance expenses in H1 2023 thanks to:

a reduction in the outstanding amount of NEU Commercial Paper to €368 million as of June 30, 2023 (vs. €553 million as of
December 31, 2022); • active cash management, with short-term investments made at an average rate of c. 2.5% in H1 2023 (average total balance of c. €463 million).

Management of interest rate risk exposure

Icade conservatively manages its interest rate risk by using fixed rate debt and derivatives (mainly swaps and caps) in order to keep the cost of debt down and limit the impact of interest rate changes on finance costs.

Excluding the Healthcare Property Investment Division, as of June 30, 2023, 97 of the Icade Group's estimated debt for 2023 was fixed rate or hedged. This percentage improved following the deconsolidation of the Healthcare Property Investment Division. Prior to the deconsolidation, 94% of the Group's estimated debt for 2023 was protected against an increase in interest rates (fixed rate or hedged variable rate debt).

As of June 30, 2023, the Icade Group's variable rate debt, excluding the Healthcare Property Investment Division, represented 9% of total debt (excluding payables associated with equity interests and bank overdrafts). As of June 30, 2023, the Group held derivatives which hedged its variable rate debt.

BREAKDOWN OF DEBT BY TYPE OF RATE (EXCLUDING PAYABLES ASSOCIATED WITH EQUITY INTERESTS AND BANK OVERDRAFTS)

OUTSTANDING HEDGING POSITIONS

(June 30, 2023, in millions of euros)

The average maturity for the Icade Group's variable rate debt, excluding the Healthcare Property Investment Division, was 3.8 years and 6.3 years for the associated hedges. These indicators improved following the deconsolidation of the Healthcare Property Investment business.

1.4.3. Icade's credit rating

Rating agency Standard & Poor's has assigned Icade a long-term rating of BBB+ with a stable outlook and a short-term rating of A2 affirmed following its annual review on July 18, 2023. This reflected the strength of the Group's credit profile.

1.4.4. Commitment to sustainable finance products

Icade, committed to promoting sustainable finance products

Icade plays an active role in the green finance market, which it considers essential to directing investments towards projects that contribute to achieving the goals of the Paris Agreement on climate change and the UN's Sustainable Development Goals, as well as responding to investors' desire to finance "green" activities.

These initiatives involving sustainable financing tools are in line with the Green Taxonomy Report, which reflects the new European framework for sustainable finance (see dedicated section).

For a number of years, Icade has followed a rigorous and innovative sustainable finance policy that meets the industry's highest standards.

In 2021, Icade stepped up its efforts in favour of sustainable finance by aligning its Green Financing Framework with best practices and reclassifying its €600 million bond issued in January 2021 as a green bond. In 2022, Icade furthered its commitment by issuing a new €500 million green bond and securing €725 million in sustainable credit lines.

As of June 30, 2023, the Icade Group's sustainable debt, excluding the Healthcare Property Investment Division which was reclassified as discontinued operations, represented c. 51 of the Group's total debt.

A rigorous selection process for assets and projects

In its Green Financing Framework updated in November 2021, Icade set more ambitious eligibility criteria for assets and projects financed by green debt instruments, supplemented by EU Taxonomy criteria as known to date.

The proceeds from green bonds issued by Icade are used to finance or refinance green assets and projects for the Commercial Property Investment Division selected based on stringent criteria over a building's entire life cycle:

Eligible assets must have at least HQE Excellent and/or BREEAM Excellent and/or LEED Platinum certification, and/or an energy consumption at least 10% below regulatory thresholds (NZEB regulation⁴ ), and/or a 30% reduction in their carbon footprint after renovation;
Eligible projects should aim at improving energy efficiency, increasing renewable energy capacity or developing sustainable mobility.

This framework has been reviewed by ESG rating agency Sustainalytics which confirmed its compliance with Green Bond Principles (published by the International Capital Market Association) and Green Loan Principles (published by the Loan Market Association).

All documentation relating to Icade's sustainable financing is available on its website:

https://www.icade.fr/en/finance/financing/sustainable-financing.

A portfolio of green assets worth over €3 billion

The report on the allocation of proceeds from green debt instruments as of December 31, 2022 was published on June 28, 2023.

As of December 31, 2022, the Icade Group had €1.75 billion in outstanding green financial instruments including three green bonds totalling €1.7 billion and a €50 million green term loan. Icade uses these funds to finance an identified portfolio of close to €3.2 billion in eligible assets in operation or under development, remaining able to raise more funds in the future if necessary.

⁴ Nearly Zero Energy Building

1.4.5. Financial structure

Financial structure ratios

1.4.5.1.1. Loan-to-value (LTV) ratio

The LTV ratio is the ratio of the Group's consolidated net financial liabilities to the sum of the latest valuation of the property portfolio (including duties) and equity-accounted investments (including duties) as well as the value of property development companies (on a full consolidation basis).

This ratio stood at 41.6% as of June 30, 2023 (vs. 39.3% as of December 31, 2022) on a like-for-like basis. It was not impacted by the reclassification of the Healthcare business as discontinued operations.

Based on the latest valuation of the portfolio excluding duties, the ratio was 44.0% as of June 30, 2023 (vs. 41.5% as of December 31, 2022).

As of June 30, 2023, the LTV ratio calculated for the purposes of bank agreements (ratio of net financial liabilities to the sum of the latest valuation of the property portfolio and equity-accounted investments of both Property Investment Divisions) was 46.1%, up compared to the 43.5% recorded as of December 31, 2022. The ratio remained well below the 60% covenant.

As of July 5, 2023, LTV ratios showed significant improvement given the substantial drop in the Group's total net debt: the LTV ratio including duties stood at 29.4%, the LTV ratio excluding duties at 30.7% and the bank LTV covenant at 38.2%.

1.4.5.1.2. Interest coverage ratio (ICR)

The ICR ratio (EBITDA plus profit/(loss) of equity-accounted companies to the cost of net financial liabilities) was 5.55x for H1 2023. This high ratio was significantly above the covenant minimum of 2x, highlighting the Group's solid financial performance.

As of July 5, the ICR decreased to 4.1x. The increase in finance income from the investment of the proceeds from the disposal of the Healthcare business and the dividends to be received from the Healthcare Property Investment Division from 2024 will help improve this ratio over the coming months.

1.4.5.1.3. Net debt-to-EBITDA ratio

The ratio of net debt to EBITDA plus profit/(loss) of equity-accounted companies is not subject to any bank covenants. It is nonetheless closely monitored as part of the Group's debt management.

This ratio, broadly stable as of June 30, 2023 compared to December 31, 2022 (10.3x vs. 10.1x), improved significantly following the sale of the Healthcare Property Investment Division to 6.5x⁵ as of July 5, 2023.

	07/05/2023	06/30/2023	12/31/2022
Ratio of net financial liabilities/latest portfolio value incl. duties (LTV) (a)	29.4%	41.6%	39.3%
Net debt-to-EBITDA ratio	6.5x	10.3x	10.1x
Interest coverage ratio (ICR) based on EBITDA plus the Group's share in profit/(loss) of equity-accounted companies (b)	4.10x	5.55x	6.42x

(a) Includes the balance sheet value of property development companies.

(b) Ratio of EBITDA plus the Group's share in profit/(loss) of equity-accounted companies to the total interest expense.

⁵ EBITDA has been adjusted for Healthcare Property Investment EBITDA over a rolling 12-month period as dividends received from this Division are already included.

2. Commercial Property Investment Division

2.1. Market update

MARKET UPDATE

The office rental market in the Paris region (sources: JLL, ImmoStat, CBRE)

The office rental market in the Paris region got off to a mixed start this year, with 815,000 sq.m of take-up over H1 2023 (-22% year-onyear). Q2 did however partially offset Q1's slow start. The more modest drop in the number of transactions (-8%) confirms that companies have downsized and transformed their office space to adapt to changing work and organisational practices.

In an uncertain economic environment (weak growth, high inflation, rising borrowing rates), companies are taking longer to make decisions about real estate. There are three types of strategies available to users in terms of managing their office space. They can either vacate excess space, adapt their workspaces and/or move to new buildings.

Take-up involving large transactions (over 5,000 sq.m) totalled 224,000 sq.m (-34% year-on-year), with a preference for the outskirts of Paris. Most of the large transactions were in the Inner Ring (7), followed by Peri-Défense (3 in Nanterre, including EDF Renouvelables), La Défense (3) and the Outer Ring (2). Overall, peripheral markets accounted for three-quarters of large transactions, both in terms of number and volume.

Nearly 90% of these large deals were for new space. In addition to companies' strong preference for central locations, the lack of supply and high rents in the Paris market redirected many users towards new-generation buildings (in terms of design, amenities and energy efficiency) located in established office hubs with excellent transport links.

Transactions involving small and medium-sized units (under 5,000 sq.m), with take-up of 591,000 sq.m, were more resilient (-16%). A high proportion of these transactions (65%) targeted the Paris, Neuilly-Levallois and Southern Loop (Boulogne-Billancourt, Issy-les-Moulineaux) markets.

The office market became more segmented, with prime assets located near major transport hubs that comply with the latest standards in terms of energy consumption and tenant companies' CSR policies attracting stronger interest than in previous periods. In parallel, more than half of all tenants relocating remained in the same geographic area, as users seek more central locations and greener properties. In addition, the number of companies likely to initiate projects to implement hybrid work solutions remains substantial and should drive take-up in peripheral markets.

Immediate supply continued to rise, reaching 4.5 million sq.m in Q2 2023 (+10% year-on-year), due to the combined effect of vacated space and completed projects, mainly in the Inner Ring and Peri-Défense. As a result, the vacancy rate in the Paris Region reached 8%, despite the supply under construction (1.2 million sq.m) falling slightly since the end of 2022 (-100,000 sq.m). Given this and with completed supply set to remain high until 2024, speculative developments remained rare with the pre-letting of a building, in whole or in part, before construction has started being the predominant practice.

There were differences in average headline rents for new space between the CBD (+6% year-on-year), Peri-Défense (+3%), the Inner Ring (+1%) and La Défense (-4%). Lease incentives also varied greatly, ranging from 15.4% in the CBD to 33.7% in La Défense, with 24.1% for the Paris region as a whole in Q1 2023.

The PLU Bioclimatique, i.e. Paris's future land-use plan that includes bioclimatic requirements, will restrict the supply of office space in the inner city. Given this context, the main office hubs on the outskirts of Paris provide alternative locations for companies in terms of price positioning, energy efficiency and costs (service charges and amenities). The need to reduce the carbon footprint of the real estate sector and limit the amount of land being developed will lead to a number of changes. Mixed-use projects and the repositioning of strategically located assets are set to increase. At the same time, the use of low-carbon construction processes and materials will gradually become the norm.

Given the current economic slowdown and the pace of market activity at the end of the Q2, take-up is expected to reach 1.9 million sq.m in 2023. According to CBRE, some 60 projects of over 5,000 sq.m could be completed by the end of the year.

The rental market for light industrial properties in the Paris region (sources: JLL, ImmoStat)

The uncertain macroeconomic context dragged down the rental market for light industrial properties in the Paris region which recorded takeup of 197,000 sq.m in Q1 2023. The year-on-year decrease of 51% must be measured against the exceptional nature of Q1 2022 (with takeup of 400,000 sq.m). Looking at it long term, cumulative annual take-up (1.2 million sq.m in Q1 2023) is still higher than its 10-year average (1 million sq.m).

This rental market benefits from a number of positive trends. This multi-purpose asset class covers a wide range of companies (very small businesses, SMEs, middle-market companies and large groups) looking for buildings that are well located and meet demanding yet flexible specifications. Take-up accelerated sharply from 2017 onwards and, with the exception of 2020, transaction volumes have exceeded one million sq.m every year. At the same time, the proportion of new supply has risen significantly, from an average of 10% between 2012 and 2016 to almost 20% over the last 5 years and as much as 50% in business parks. Against this background, immediate supply has been gradually declining for several years and stood at 1.1 million sq.m in Q1 2023 (compared with 1.9 million sq.m at the end of 2016).

Faced with a shortage of supply and growing demand for buildings that are well served by public transport and road networks, functional and in line with growing CSR requirements, light industrial properties located around the A86 motorway are highly sought after.

The increase in headline rents for light industrial properties since 2016 and the stability of lease incentives attest to their appeal, which fully benefits Icade's Rungis business park.

The office rental market in major French cities outside Paris (sources: BNP Paribas Real Estate, JLL)

Leasing activity in the seven major French cities outside Paris (Lyon, Lille, Aix-Marseille, Bordeaux, Toulouse, Nantes and Montpellier) got off to a slow start this year, with take-up of 262,000 sq.m in Q1 2023, down 32% year-on-year. This decline reflects a wait-and-see attitude on the part of companies in an uncertain macroeconomic environment. It should be noted that Q1 2022 was the decade's best first quarter (384,000 sq.m). It should also be noted that take-up was 5% higher than the ten-year average.

The size effect explains most of the leasing activity observed at the start of the year. Large transactions (over 5,000 sq.m) accounted for 15% of take-up in Q1, compared with 30% over the same period last year. Markets outside the Paris region have stabilised after a 2022 which saw a number of large-scale turnkey and own-account projects undertaken by the public sector that are by their very nature cyclical. By way of illustration, the Cités Administratives renovation project had greatly contributed to the strong activity in Lille, Lyon, Nantes and Aix-Marseille in 2022 with take-up of over 100,000 sq.m.

In Q1 2023, large transactions involved the national railway company SNCF in Toulouse (10,200 sq.m) and Lille (8,100 sq.m), Lhyfe in Nantes (7,100 sq.m), and Ionis in Bordeaux (5,800 sq.m). Take-up for medium-sized units (between 2,000 and 5,000 sq.m) remained stable (55,000 sq.m; +2% year-on-year), attesting to the resilience of very small businesses, SMEs and middle-market companies outside the Paris region. Most of these companies have moved into new buildings that are centrally located and meet the latest standards in terms of flexible space, amenities and environmental performance. Large occupiers continue to be attracted by new space with excellent access to core but often undersupplied office hubs.

In terms of location, the market in Lille (take-up of 53,000 sq.m) was ahead of Toulouse (45,000 sq.m), Lyon (44,000 sq.m), Bordeaux (41,000 sq.m) and Aix-Marseille (23,000 sq.m). This ranking is expected to change over the course of the year to reflect a more usual order.

In line with this lacklustre start to the year, supply to be available one year from now (1.8 million sq.m) was up 10% year-on-year, with second-hand properties up more (+11%) than the supply of new and refurbished space (+7%). The supply under construction is expected to total 240,000 sq.m in 2023 and 215,000 sq.m in 2024. This low level of construction activity leaves little room for speculative projects, predominantly located in a small number of structurally undersupplied CBDs. Consequently, vacancy rates remained low at 4.7% on average in the major cities surveyed, ranging from 4.20% to 5.10% in Aix-Marseille, Toulouse and Bordeaux. These markets outside the Paris region, which have remained balanced and buoyant, support stable or slightly higher rents. However, there are growing contrasts between central locations where demand is high but supply low and peripheral areas with higher vacancy rates, where higher lease incentives are more likely to be offered.

The sound rental fundamentals of major French cities explain why a wide range of investors are interested in smaller, well-placed assets that provide secure income streams and attractive yields. This underlying trend, which has been underway for several years, continued into Q1 2023, with €550m invested in almost 50 transactions. The current cycle of monetary tightening and rising borrowing rates have nonetheless had an adverse impact on office acquisitions outside the Paris region. Due to higher yields and repricing, buyers and sellers are taking longer to close deals, without this repricing adversely affecting the transaction process as severely as in the Paris region.

The French commercial real estate investment market (source: BNP Paribas Real Estate)

With €7.8bn invested in H1 2023, the investment market was down 43% vs. H1 2022. High inflation, weak growth and rising borrowing rates have caused most investors to adopt a wait-and-see attitude. The ECB's key interest rate hike, unprecedented in speed and scale (400 bps year-on-year), has focused investors' attention on two important milestones, namely the stabilisation of key interest rates and the easing of underlying inflation. In this tight financial climate, sellers and buyers have yet to agree on prices which is necessary in order for the investment market to recover.

Offices remained the dominant asset class, with €3.8bn invested in H1 2023 (-40%), accounting for almost half of the volume, followed by retail (€1.7bn; -40%), logistics (€1.1bn; -65%) and hotels. In terms of location, most office investment took place in the Paris region, with acquisitions totalling €2.8bn (-43%), compared with €1bn outside the Paris region (-31%).

Offices located on the outskirts of Paris showed relative resilience, with €1.5bn invested (down -7% year-on-year), a volume driven mainly by two major acquisitions, i.e. the Tour Sequana in Issy-les-Moulineaux and the Stellantis campus in Poissy.

The correction was more pronounced for offices in Paris, with €1.3bn invested (-59%). In this market more driven by large transactions (in excess of €100m), asking prices have led to a wait-and-see attitude on the part of investors and a number of substantial sales have been halted because expected prices were not reached. Most transactions in Paris involved smaller assets, usually between €30m and €80m. In La Défense, there were no significant transactions in the first half of the year due to the supply of large units that are ill-suited to investors' current financing capabilities.

The retail sector in inner Paris showed strong momentum, with the acquisition of the Italie 2 and Passy Plaza shopping centres. It should be noted that the buildings acquired by Kering (235 Faubourg Saint Honoré and 35 Montaigne) and LVMH (101 avenue des Champs Elysées) are generally not included in the investment figures provided by real estate consultancies as they are more in line with a brand location rationale than a traditional investor rationale.

Prime yields continue to rise, with office space at 3.50% in the CBD (4.40% outside the Paris region), logistics at 4.25% and retail at 4.00%. French 10-year government bonds (OATs), which have stabilised between 2.8% and 3.0% since April 2023 (excluding volatility spikes), now raise the question of how to rightsize property risk premiums in a high inflation and interest rate environment. Rebuilding this risk premium will require continued repricing, a stabilised interest rate environment and greater visibility for investors.

The second half of the year could prove to be more active. The high level of SCPI/SC fund inflows in 2022 and early 2023 (€2.8bn in Q1) suggests that transactions will be made. In addition, the large volumes of assets withdrawn from the market over the last few quarters are setting benchmarks that are gradually leading to a convergence of prices between sellers and buyers. The natural rotation of assets linked to the life cycle of funds will attract investors looking for attractive entry points in terms of price. According to BNP Paribas Real Estate, the endof-year volume should reach €18bn, including €8bn for offices. It should be noted that certain large transactions in Q3, such as the sale of Icade Santé to Primonial REIM in July, will help to reach such volumes.

2.2. Commercial Property Investment portfolio

GEOGRAPHIC DISTRIBUTION OF THE PROPERTY PORTFOLIO BY ASSET TYPE

As of June 30, 2023, the Commercial Property Investment Division's assets were valued at €7.2 billion on a proportionate consolidation basis (€7.7 billion on a full consolidation basis). They are primarily located in the Paris region, with 10.9% of the portfolio's value located in other major French cities outside Paris. They also include residual assets (€245 million as of June 30, 2023, i.e. 3.4% of the portfolio), mainly consisting of hotels leased to the B&B Hotels Group, retail assets and two assets held as part of public-private partnerships (university hospitals).

In value terms (on a proportionate consolidation basis)				Other Commercial
			Subtotal offices	Property
(in millions of euros)			and business	Investment
	Offices	Business parks	parks	assets	TOTAL	%
PARIS REGION	4,589	1,731	6,320	127	6,447	89.1%
% of total	87.3%	100.0%	90.4%	51.8%
incl. Paris	1,212	0	1,212	0	1,212	16.80%
incl. La Défense/Peri-Défense	2,070	0	2,070	0	2,070	28.60%
incl. Western Crescent	289	0	289	0	289	4.00%
incl. Inner Ring	846	933	1,779	46	1,824	25.20%
incl. Outer Ring	171	798	969	81	1,051	14.50%
FRANCE OUTSIDE THE PARIS
REGION	669	0	669	118	787	10.9%
% of total	12.7%	0.0%	9.6%	48.2%
INTERNATIONAL					-	0.0%
% of total	0.0%	0.0%		0
GRAND TOTAL	5,258	1,731	6,989	245	7,234
% OF TOTAL PORTFOLIO VALUE	72.7%	23.9%	96.6%	3.4%		100%

DESCRIPTION OF THE PORTFOLIO

The tables below show leasable floor areas for office and business park properties between December 31, 2022 and June 30, 2023. Leasable floor space relates to leasable units in portfolio assets (excluding car parks). It is shown on a full consolidation basis.

Offices

As of June 30, 2023, Icade owned office buildings representing a total leasable floor area of 903,482 sq.m. 83.6% of the floor area of these assets is in the Paris region (mainly in the La Défense/Peri-Défense areas, in Paris and in the Inner Ring).

The rest of the assets are located in the city centres of the largest French cities outside Paris—Lyon, Marseille, Toulouse and Bordeaux.

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

	12/31/2022		H1 2023 changes
Asset classes	Leasable floor area	Acquisitions/ completions	Asset disposals	Developments/ refurbishments	Leasable floor area
On a full consolidation basis	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)
PARIS REGION	751,239	5,649	-	(1,387)	755,501
%	82.8%				83.6%
incl. Paris	122,390	5,649		(1,512)	126,527
incl. La Défense/Peri-Défense	368,231		-	125	368,356
incl. Western Crescent	24,182	-	-		24,182
incl. Inner Ring	171,726	-	-	-	171,726
incl. Outer Ring	64,709	-	-	-	64,709
FRANCE OUTSIDE THE PARIS REGION	156,209		(8,228)		147,981
%	17.2%				16.4%
TOTAL OFFICES	907,448	5,649	(8,228)	(1,387)	903,482

The most significant H1 changes stemmed from the completion of the B034 project in Pont de Flandre (Paris, 19th district) and the sale of the fully leased Eko Active building in Marseille.

Business parks

Icade owns business parks in Saint-Denis, Aubervilliers and Rungis which are mainly composed of office and light industrial properties. The overall leasable floor area of the business parks totalled 667,150 sq.m as of June 30, 2023.

	12/31/2022		H1 2023 changes	06/30/2023
Asset classes	Leasable floor area	Acquisitions/ completions	Asset disposals	Developments/ refurbishments	Leasable floor area
On a full consolidation basis	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)	(in sq.m)
PARIS REGION	658,409	4,002	-	4,739	667,150
% of total	100.0%	100.0%	0.0%	100.0%	100.0%
incl. Inner Ring	306,086	4,002		(130)	309,958
incl. Outer Ring	352,323			4,869	357,192
TOTAL BUSINESS PARKS	658,409	4,002	-	4,739	667,150

The significant change in the business park segment related to the completion of the first phase (hotel) of the Jump project. This project is expected to be fully completed in early 2024.

2.3. Changes in value of the Commercial Property Investment portfolio on a proportionate consolidation basis

The valuation methods used by the property valuers are described in the notes to the consolidated financial statements.

In summary, assets are classified as follows:

Offices and business parks of the Commercial Property Investment Division;
Other Commercial Property Investment assets, which consist of housing units, hotels, warehouses, public-sector properties and projects held as part of public-private partnerships, and retail assets.

As of June 30, 2023, the total portfolio value amounted to €7,676.4 million (€7,234.4 million on a proportionate consolidation basis), down -6.4% on a reported basis (-6.4% on a proportionate consolidation basis) and -6.9% on a like-for-like basis (-6.7% on a proportionate consolidation basis), driven in particular by the lower value of office assets.

The total portfolio value including duties came in at €7,648 million on a proportionate consolidation basis.

It should be noted that the values reported by Icade are excluding duties, unless otherwise specified.

Portfolio value excl. duties on a proportionate consolidation basis, as of June 30, 2023	06/30/2023 (in €m)	12/31/2022* (in €m)	Change (in €m)	Change (in %)	Like-for-like change (a) (in €m)	Like-for-like change (a) (in %)	Price (b) (in €/sq.m)	Net initial yield incl. duties (c) (in %)	EPRA vacancy rate (d) (in %)

OFFICES
Paris	860.8	896.3	(35.5)	(4.0%)	(48.8)	(5.4%)	7,004	5.1%	5.3%
La Défense/Peri-Défense	1,996.8	2,157.7	(160.9)	(7.5%)	(158.6)	(7.4%)	6,030	6.2%	16.4%
Other Western Crescent	288.7	294.1	(5.3)	(1.8%)	(9.5)	(3.2%)	11,940	4.4%	10.7%
Inner Ring	759.8	871.2	(111.4)	(12.8%)	(119.2)	(13.7%)	4,425	7.1%	20.7%
Outer Ring	171.4	175.8	(4.3)	(2.5%)	(4.5)	(2.6%)	2,649	8.5%	0.0%
Total Paris region	4,077.5	4,395.0	(317.5)	(7.2%)	(340.6)	(7.7%)	5,706	6.1%	14.0%
France outside the Paris region	528.0	592.2	(64.3)	(10.8%)	(17.1)	(3.1%)	3,919	5.4%	4.4%
TOTAL OPERATING OFFICE ASSETS	4,605.5	4,987.3	(381.8)	(7.7%)	(357.7)	(7.2%)	5,422	6.0%	13.0%
Land bank and floor space awaiting refurbishment (not leased) (e)	32.7	34.5	(1.8)	(5.1%)	(2.4)	(7.0%)	-	-	-
Projects under development and off-plan sales	619.9	619.5	+0.4	+0.1%	(31.1)	(5.0%)	-	-	-
TOTAL OFFICES	5,258.1	5,641.2	(383.1)	(6.8%)	(391.2)	(7.0%)	5,422	6.0%	13.0%
BUSINESS PARKS								-
Inner Ring	772.2	825.5	(53.3)	(6.5%)	(60.8)	(7.4%)	2,433	8.0%	16.2%
Outer Ring	755.9	775.4	(19.5)	(2.5%)	(39.0)	(5.0%)	2,057	8.0%	18.1%
TOTAL OPERATING BUSINESS PARK ASSETS	1,528.1	1,600.9	(72.8)	(4.5%)	(99.7)	(6.2%)	2,231	8.0%	17.1%
Land bank and floor space awaiting refurbishment (not leased) (e)	98.8	114.6	(15.9)	(13.8%)	(16.2)	(14.1%)
Projects under development	103.9	87.4	+16.5	+18.9%	(4.3)	(5.0%)
TOTAL BUSINESS PARKS	1,730.8	1,802.9	(72.1)	(4.0%)	(120.3)	(6.7%)	2,231	8.0%	17.1%
TOTAL OFFICES AND BUSINESS PARKS	6,989.0	7,444.1	(455.2)	(6.1%)	(511.5)	(6.9%)	3,998	6.5%	14.3%
Other Commercial Property Investment assets (f)	245.4	282.2	(36.8)	(13.0%)	(2.0)	(0.8%)	1,318	10.3%	15.8%
TOTAL	7,234.4	7,726.3	(491.9)	(6.4%)	(513.5)	(6.7%)	3,797	6.6%	14.4%

*Adjusted for the asset reclassifications made between the two periods, including reclassifications from "Projects under development" to the "Operating" category upon completion of a property.

(a) Change net of disposals and investments for the period, and changes in assets treated as financial receivables (PPPs).

(b) Established based on the appraised value excluding duties for operating properties.

(c) Annualised net rental income from leased space plus potential net rental income from vacant space based on estimated rental value, divided by the appraised value including duties (operating properties).

(d) Calculated based on the estimated rental value of vacant space divided by the estimated rental value of the whole portfolio.

(e) Fully vacant properties that are held for sale or due to be refurbished or demolished.

(f) Indicators (total floor area, price in €/sq.m, net initial yield including duties, and EPRA vacancy rate) are presented excluding PPPs and residential properties and only for operating properties.

(on a proportionate consolidation basis)	Fair value as of 12/31/2022 (€m)	Fair value of assets sold as of 12/31/2022 (€m) (a)	Investments and other (€m) (b)	Like-for-like change (€m)	Like-for-like change (%)	Fair value as of 06/30/2023 (€m)
Offices	5,641.2	(47.4)	55.5	(391.2)	(7.0%)	5,258.1
Business parks	1,802.9	-	48.2	(120.3)	(6.7%)	1,730.8
OFFICES AND BUSINESS PARKS	7,444.1	(47.4)	103.7	(511.5)	(6.9%)	6,989.0
Other Commercial Property Investment assets	282.2	(37.8)	3.0	(2.0)	(0.8%)	245.4
TOTAL	7,726.3	(85.2)	106.7	(513.5)	(6.7%)	7,234.4

(a) Includes bulk sales and partial sales (unit sales or assets for which Icade's ownership interest decreased during the period).

(b) Includes capex, the amounts invested in H1 2023 in off-plan acquisitions, and acquisitions. Also includes the adjustment for transfer duties and acquisition costs, changes in value of assets acquired during the period, works to properties sold, changes in transfer duties and changes in value of assets treated as financial receivables.

OFFICES

The office portfolio was worth €5,258.1 million as of June 30, 2023 vs. €5,641.2 million as of December 31, 2022, a decrease of -€383.1 million (-6.8%) on a reported basis. The Eko Active building in Marseille was sold during H1 (fair value as of December 31, 2022: €47.4 million).

A decrease in value of -€391.2 million (-7.0%) was recorded on a like-for-like basis. The office portfolio has been affected by the current market environment:

Higher refinancing rates
Slowdown in the investment market, leading to a general rise in the rates used in valuations
Slowdown in the rental market, leading valuers to use more conservative leasing assumptions in valuations

The office portfolio was worth €5,680.4 million vs. €6,095.7 million as of December 31, 2022 on a full consolidation basis.

BUSINESS PARKS

Business parks represented €1,730.8 million as of June 30, 2023 vs. €1,802.9 million as of December 31, 2022, a decrease of €72.1 million (-4.0%).

On a like-for-like basis, the change in value of business parks was -€120.3 million over the half-year, i.e. -6.7%. In this asset class, which consists mainly of office and light industrial properties, the rise in interest rates and tighter rental assumptions had a more marked effect for offices located in business parks whose value was down -€90.4 million like-for-like, i.e. -9.2%. Light industrial properties located in business parks (valued at €699 million at the end of June 2023) saw a limited decline in value of -€10.9 million on a like-for-like basis, i.e. -1.6%, with demand remaining buoyant and higher market rents for this property type, particularly in Rungis.

Other Commercial Property Investment assets

Other Commercial Property Investment assets were valued at €245.4 million as of June 30, 2023 vs. €282.2 million as of December 31, 2022, down -€36.8 million (-13.0%). This change on a reported basis was mainly due to the disposal of a residential portfolio valued at €37.3 million at the end of 2022.

On a like-for-like basis, the change in value of other Commercial Property Investment assets was -€2.0 million as of June 30, 2023 (i.e. -0.8%).

2.4. Investments

Investments are presented as per EPRA recommendations.

(in millions of euros)	06/30/2023	06/30/2022	Chg.
Acquisitions	6.7	1.2	5.4
Developments	74.4	79.7	(5.4)
Including capitalised finance costs	1.7	0.5	1.2
Operational capex	40.6	42.1	(1.5)
Including no incremental lettable space	22.1	40.0	(17.9)
Including lease incentives	18.5	2.0	16.5
TOTAL CAPEX	121.6	123.0	(1.4)
Including offices	70.8	90.9	(20.1)
Including business parks	48.2	28.2	20.0
Other	2.7	3.9	(1.2)

As of June 30, 2023, investments on a full consolidation basis totalled €121.6 million vs. €123.0 million for the same period in 2022, i.e. a slight decrease of €1.4 million.

Most of these investments were earmarked for development projects (€74.4 million) including:

Jump located in the Portes de Paris business park for €16.5 million (first phase corresponding to the fully let hotel project completed in H1);
Athletes Village (Saint-Ouen) for €11.2 million (offices);
Fully leased Next building in Lyon for €8.1 million;
Grand Central and M Factory in Marseille for €8.0 million and €7.7 million, respectively, both fully leased;
Edenn in Nanterre-Pr fecture for €3.8 million, scheduled for completion in Q4 2025 and 59% leased;
B034, a hotel project in Pont de Flandre completed in H1, for €1.9 million.

Other investments related to acquisitions worth €6.7 million (purchase of condominium units in the Le Ponant building complex in the 15th district of Paris) and operational capex for €40.6 million, which related mainly to renovation work and work to improve energy performance for €4.7 million.

DEVELOPMENT PROJECTS

Icade's development projects represent a total investment of €1,569 million (€1,454 million on a proportionate consolidation basis) and over 225,000 sq.m, including 113,100 sq.m already started. The average yield on cost expected for these projects is 5.3%.

As of June 30, 2023, projects under development were 62% pre-let, including six which were fully leased.

Lastly, two new projects were added to the pipeline of projects launched: Helsinki Iéna (10,578 sq.m) and Cologne (2,927 sq.m) in the Rungis business park. The two projects, which have been fully pre-let prior to completion, represent a total investment of €58 million.

Project name (a)	Location	Type of works	In progress	Property type	Estimated date of completion	Floor area	Expected rental income	Yield on cost (b)	Total investment on a full consolida tion basis (c)	On a propor tionate consoli dation basis	Remaining to be invested > H1 2023 (full consoli dation)	% pre-let
GRAND CENTRAL	MARSEILLE	Construction	✓	Office	Q4 2023	8,479			35	35	7	100%
M FACTORY	MARSEILLE	Construction	✓	Office	Q4 2023	6,069			28	28	6	100%
JUMP	PORTES DE PARIS	Construction	✓	Office/ Hotel	Q1 2024	18,782			95	95	8	19%
COLOGNE	RUNGIS	Refurbishment	✓	Office	Q2 2024	2,927			11	11	6	100%
NEXT	LYON	Redevelopment	✓	Office	Q3 2024	15,763			99	55	33	100%
DATA CENTRE	PORTES DE PARIS	Redevelopment	✓	Data centre	Q3 2025	7,490			36	36	35	100%
EDENN	NANTERRE	Construction	✓	Office	Q4 2025	30,587			264	264	166	59%
HELSINKI IENA	RUNGIS	Refurbishment	✓	Business parks	Q4 2025	10,578			47	47	42	100%*
ATHLETES VILLAGE	SAINT-OUEN	Construction	✓	Office/ Light industrial	Q1 2026	12,404			61	31	17	0%
TOTAL PROJECTS STARTED						113,079	36.6	5.4%	676	601	319	62%
TOTAL UNCOMMITTED PROJECTS NOT STARTED						112,259	46.3	5.2%	893	853	443	-
TOTAL PIPELINE						225,338	82.8	5.3%	1,569	1,454	762	27%

Notes: on a full consolidation basis and on a proportionate consolidation basis

(a) Includes identified projects on secured plots of land, which have started or will start within 24 months.

(b) YoC = headline rental income / cost of the project as approved by Icade's governance bodies (as defined in (c)).

(c) Total investment includes the fair value of land (or building), cost of works, tenant improvements, finance costs and other fees.

* leases signed after the reporting period or under an exclusivity agreement

2.5. Asset disposals

Disposals by the Commercial Property Investment Division in H1 totalled nearly €90 million, which included the sale of the 8,230-sq.m Eko Active building in Marseille to Notapierre for €48 million.

In addition, in accordance with the preliminary agreement signed on May 12, 2022, Icade completed the sale of its portfolio of individual condominium housing units to the RLF Group for nearly €40 million. This disposal was part of a plan to streamline assets considered nonstrategic.

These transactions were completed at prices in line with the most recent appraised values.

It should also be noted that two office properties were subject to preliminary sale agreements as of June 30, 2023. These were the Grand Central building in Marseille and the Nautilus building in Bordeaux. These transactions are scheduled for H2 2023.

Including these preliminary agreements, disposals are expected to total around €180 million in 2023.

2.6. EPRA earnings from Commercial Property Investment

(in millions of euros)	06/30/2023	06/30/2022	Change	Change (%)
Recurring items:
GROSS RENTAL INCOME	181.1	185.0	(4.0)	-2.1%
NET RENTAL INCOME	161.0	167.3	(6.3)	-3.8%
NET TO GROSS RENTAL INCOME RATIO	88.9%	90.4%	-151.2%
Net operating costs	(14.4)	(15.8)	1.4
RECURRING EBITDA	146.7	151.6	(4.9)	-3.3%
Depreciation of operating assets	(7.6)	(4.4)	(3.1)
RECURRING OPERATING PROFIT/(LOSS)	139.7	148.4	(8.7)	-5.8%
Cost of net debt	(30.6)	(28.3)	(2.3)
Other finance income and expenses	(3.5)	(2.7)	(0.8)
RECURRING FINANCE INCOME/(EXPENSE)	(34.1)	(31.0)	(3.1)	10.1%
Tax expense	(0.3)	(0.9)	0.6
EPRA EARNINGS ATTRIBUTABLE TO THE GROUP	101.5	112.2	(10.7)	-9.5%
Non-current recurring items (a)	7.7	4.5	3.2
NET CURRENT CASH FLOW ATTRIBUTABLE TO THE GROUP	109.2	116.7	(7.5)	-6.5%
(-) Intercompany recharges between the Commercial Property Investment and Healthcare Property Investment Divisions (b)	(9.6)	(13.3)	3.7
PRO FORMA NET CURRENT CASH FLOW ATTRIBUTABLE TO THE GROUP	99.6	103.4	(3.8)	-3.7%

(a) "Non-current recurring items" relate to the depreciation of operating assets.

(b) Intercompany recharges between Property Investment Divisions mainly included property management fees, administrative services as well as interest on loans, shareholder loans and cash pooling (see note 1.1).

Gross rental income from Commercial Property Investment stood at €181.1 million, down -2.1% vs. H1 2022 (€185.0 million). The decline in rental income due to significant disposals in 2022 and 2023 was partially offset by additional rental income stemming from the acquisition of Défense Parc in 2022.

Net operating costs from the Commercial Property Investment Division stood at -€14.4 million, down €1.4 million compared to June 30, 2022 thanks to operating expenses being very closely managed (see section 1.3.5 "EPRA reporting – EPRA cost ratio from Property Investment").

The recurring portion of finance income/(expense) from the Commercial Property Investment Division amounted to -€34.1 million as of June 30, 2023, up €3.1 million compared to June 30, 2022 (-€31.0 million) as the average cost of debt increased between the two periods.

As such, EPRA earnings from Commercial Property Investment reached €101.5 million as of June 30, 2023 vs. €112.2 million as of June 30, 2022, a -9.5% decrease year-on-year.

After adjusting for the depreciation of operating assets and intercompany recharges with the Healthcare Property Investment Division, pro forma net current cash flow from Commercial Property Investment totalled €99.6 million as of June 30, 2023, down by only -3.7% compared to June 30, 2022 (€103.4 million).

2.7. Changes in rental income from Commercial Property Investment

GROSS RENTAL INCOME FROM COMMERCIAL PROPERTY INVESTMENT

(in millions of euros, on a full consolidation basis)	06/30/2022	Asset acquisitions	Asset disposals	Completions/ Developments/ Refurbishments	Leasing activity and index linked rent reviews		Penalties 06/30/2023	Total change	Like-for like change
Offices	129.2	2.1	(8.5)	0.1	2.2	(1.3)	123.9	-4.1%	1.9%
Business parks	47.4	-	-	0.1	1.5	0.1	49.0	3.6%	3.1%
OFFICES AND BUSINESS PARKS	176.5	2.1	(8.5)	0.3	3.7	(1.2)	172.9	-2.1%	2.2%
Other assets	9.5	-	(0.2)	-	0.1	(0.3)	9.3	-3.9%	0.8%
Intra-group transactions from Property Investment	(1.0)	-	-		0.0	-	(1.0)	N/A	N/A
GROSS RENTAL INCOME	185.0	2.1	(8.6)	0.3	3.8	(1.5)	181.1	-2.1%	2.2%

Gross rental income from Commercial Property Investment in H1 2023 amounted to €181.1 million, down -€4.0 million, i.e. -2.1%, compared to the same period in 2022 (€185.0 million).

The decrease on a reported basis was mainly due to disposals in 2022 and 2023, which significantly impacted rental income from offices (-€8.6 million). Rental income from acquisitions (+€2.1 million) partially offset the loss of income from assets sold.

The like-for-like change in gross rental income was +2.2%, including +1.9% for the office segment and +3.1% for the business park segment.

Rental income growth reflected rises in the main indices (ILAT and ICC), which resulted in strong index-linked rent reviews of +4.7% in H1. This mechanism provides solid support for rental income in a still challenging rental market characterised by much longer times needed to find tenants.

GROSS RENTAL INCOME FROM COMMERCIAL PROPERTY INVESTMENT BY LOCATION

Gross rental income			Reported basis		Like-for-like basis
(in millions of euros, on a full consolidation basis)	06/30/2022	06/30/2023	in value terms	in %	in value terms	in %
Offices	129.2	123.9	-5.3	-4.1%	2.2	1.9%
Paris	26.0	22.6	-3.4	-13.0%	1.8	8.8%
La Défense/Peri-Défense	50.8	50.9	0.1	0.2%	1.7	3.7%
Other Western Crescent	4.4	5.7	1.3	29.4%	1.3	29.4%
Inner Ring	25.4	21.7	-3.7	-14.5%	-3.4	-13.4%
Outer Ring	7.4	7.8	0.4	5.3%	0.4	5.3%
France outside the Paris region	15.2	15.2	0.0	-0.2%	0.4	2.7%
Business parks	47.4	49.0	1.7	3.6%	1.5	3.1%
Inner Ring	24.7	26.5	1.7	7.0%	1.0	4.0%
Outer Ring	22.6	22.6	-0.1	-0.2%	0.5	2.1%
OFFICES AND BUSINESS PARKS	176.5	172.9	-3.6	-2.1%	3.7	2.2%

NET RENTAL INCOME FROM COMMERCIAL PROPERTY INVESTMENT

		06/30/2023	06/30/2022
(in millions of euros, on a full consolidation basis)	Gross rental income	Net rental income	Net to gross ratio	Gross rental income	Net rental income	Net to gross ratio
Offices	123.9	110.4	89.1%	129.2	116.7	90.3%
Business parks	49.0	39.6	80.7%	47.4	39.2	82.8%
OFFICES AND BUSINESS PARKS	172.9	150.0	86.7%	176.5	155.9	88.3%
Other assets	9.2	7.5	81.4%	9.5	7.8	82.0%
Intra-group transactions from Commercial Property Investment	(1.0)	3.6	N/A	(1.0)	3.6	N/A
NET RENTAL INCOME	181.1	161.0	88.9%	185.0	167.3	90.4%

Net rental income from Commercial Property Investment in H1 2023 totalled €161.0 million, down -€6.3 million (-3.8%) compared to H1 2022 due in part to substantial asset disposals in 2022.

The net to gross rental income ratio for offices and business parks stood at 86.7%. It was 89.1% for offices (-1.2 pps vs. June 2022) and 80.7% (-2.1 pps vs. June 2022) for business parks.

Overall, the Commercial Property Investment Division's net to gross rental income ratio was down (-1.5 pps) mainly due to higher vacancy rates and the longer periods required to secure leases.

The rent collection rate as of June 30, 2022 stood at nearly 100% over a rolling 12-month period, or 99.0% to be more precise.

This high rent collection rate reflects the strength of the Commercial Property Investment Division's tenant portfolio, resulting in a low rent default rate.

	12/31/2022		H1 -2023 changes			06/30/2023	New leases signed		06/30/2023
							Leases	Leases
				Exits due	Floor area		starting	starting
	Leased			to	adjustments	Leased	in	after
Asset classes	floor area	Additions	Exits	disposals	(a)	floor area	H1 2023	H1 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)
Offices	800,653	7,339	(24,633)	-	1,224	784,582	5,197	19,184	24,381
Business parks	542,083	13,811	(19,265)	-	(1,088)	535,540	2,104	12,332	14,436
Other	145,639	54	(3,575)	-	45	142,162	234	1,590	1,824
LIKE-FOR-LIKE
SCOPE (A)	1,488,374	21,204	(47,473)	-	180	1,462,285	7,535	33,106	40,641
Offices	-	5,063	-	-	-	5,063	185	-	185
Business parks	13,211	8,879	(376)	-	367	22,082	-	-	-
Other	-	-	-	-	-	-	-	-	-
ACQUISITIONS /
COMPLETIONS /
REFURBISHMENTS
(B)	13,211	13,942	(376)	-	367	27,145	185	-	185
SUBTOTAL (A+B)	1,501,586	35,146	(47,850)	-	547	1,489,430	7,719	33,106	40,826
Offices	7,845	383	-	(8,228)	-	-	-	-	-
Business parks	-	-	-	-	-	-	-	-	-
Other	-	-	-	-	-	-	-	-	-
DISPOSALS (C)	7,845	383	-	(8,228)	-	-	-	-	-
COMMERCIAL
PROPERTY
INVESTMENT	1,509,431	35,529	(47,850)	(8,228)	547	1,489,430	7,719	33,106	40,826
(A)+(B)+(C)

2.8. Leasing activity of the Commercial Property Investment Division

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

Additions to the portfolio of leased space recorded in H1 2023 represented 35,529 sq.m (36 leases) and €8.5 million in annualised headline rental income. Almost 40% of this space was leased in the Rungis business park (13,911 sq.m).

Space totalling 47,850 sq.m (53 leases) with annualised rental income of €13.3 million was vacated (excluding properties sold). The main exits (resulting from tenant departures) were:

The 16,605-sq.m Sisley building in Saint-Denis accounting for close to half of the tenant departures in terms of rental income (€6.1 million);
The Rungis business park (15,742 sq.m).

During the period, the Commercial Property Investment Division signed or renewed leases totalling 100,206 sq.m (46 leases) and €26.9 million in headline rental income, with a WAULT to break of 6.4 years. These transactions included:

New leases signed in H1 covering 40,826 sq.m (31 leases) including 14,208 sq.m with EDF Renouvelables in Origine, i.e. the space that remained to be leased in the building, bringing its occupancy rate to 100%; 7,500 sq.m pre-let to Equinix in the Portes de Paris business park; and 2,927 sq.m pre-let to Phibor Entreprises in the Cologne building in Rungis. These new leases combined represent €12.6 million in headline rental income and have a weighted average unexpired lease term to first break of 7.5 years;
Lease renewals for a total of 59,380 sq.m (15 leases) and €14.3 million in annualised headline rental income. The weighted average unexpired lease term of these renewed leases stood at 5.4 years. On average, these renewals were completed at rents +1.4% above the estimated rental value with first-rate tenants. These include Système U in Rungis (20,600 sq.m), Adecco in Lyon (13,275 sq.m) and the French Ministry of the Interior in Nanterre (9,615 sq.m). These three tenants renewed their leases without reducing the amount of space let.

Taking all these changes into account, the weighted average unexpired lease term to first break of the portfolio was 3.7 years as of June 30, 2023, very close to the 3.8 years reported as of December 31, 2022.

As of June 30, 2023, the ten largest tenants generated a combined annualised rental income of €131.2 million and had a weighted average unexpired lease term to first break of 4.2 years (around 36% of the annualised rental income of the Commercial Property Investment portfolio).

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

FINANCIAL OCCUPANCY RATE AND WEIGHTED AVERAGE UNEXPIRED LEASE TERM TO FIRST BREAK

As of June 30, 2023, the period-end financial occupancy rate stood at 86.5%, down -1.2 pps compared to December 31, 2022 (87.7%). On a like-for-like basis, it declined by -1.1 pp, due in part to space being vacated in the Sisley building (Saint-Denis).

LEASE EXPIRY SCHEDULE IN TERMS OF ANNUALISED IFRS RENTAL INCOME

(in % and on a full consolidation basis)

3. Property Development Division

3.1. Market update

(sources: INSEE, FPI, SDES, NOTAIRES DU GRAND PARIS, CGEDD)

The property development, construction and building sectors have faced multiple constraints over the past 18 months, the combination and intensity of which have been unprecedented. Rising energy and materials prices against a backdrop of widespread inflation, falling consumer spending and household morale, and lower solvency among buyers have all contributed to a worsening climate for housing.

The demand for housing in France remained strong due to structural demographic trends, i.e. natural change, people living apart, undersupply. At the same time, housing development has been hindered by sometimes restrictive local policies, high land prices and France's ambitious targets in terms of land development and decarbonisation.

The fall in household morale, initially triggered by the conflict in Ukraine, has been further fuelled by inflation and uncertainty about the economic environment. The ECB's monetary tightening cycle has contributed to the rise in lending rates to individuals from 1.1% on average in February 2022 to 3.28% in May 2023. Household borrowing capacity dropped by 12% on average in 2022 and by 8% at the beginning of 2023, with the extension of loan terms failing to offset this interest rate effect.

The development of new homes has reflected this weakening in demand and has fallen for eight consecutive months. After peaking in August 2022 at 525,000 units (rolling 12 months) in anticipation of the 2020 French Environmental Regulation ("RE2020") coming into force, housing permits fell back to 432,000 units in April 2023, 13% below the average level for the 12 months preceding the first lockdown. Housing starts are also slowing, with 354,200 units started in April 2023, down 9% (rolling 12 months), with no marked differences between single-family homes not part of a larger project (-9.1%), single-family homes part of a larger project (-8.9%) and multi-family housing (-9.3%).

At 15,650 units, net orders for new multi-family homes in Q1 2023 were down -40.4% over a 12-month rolling period, with the decline more pronounced for individual investors (-52.3%) than for owner-occupiers (-31.7%). Rising construction costs and falling orders are undermining the financial viability of a number of projects, which are often postponed or even cancelled before they enter the operational phase. In this context, the decrease in new listings (down -24.8% over a 12-month rolling period) pushed up the volume of housing stock to 14.7 months of time on market in Q1 2023, compared with 9.3 months in Q1 2022. Nationally, the sale price of multi-family housing units nonetheless continued to rise in Q1 2023 (+5.9% over a 12-month rolling period), albeit at a slower pace in the Paris region (+1.1%) than in the rest of the country (+7.6%), a trend that masks significant local disparities.

In a residential market impacted by a fall in demand and development, professionals eagerly awaited announcements on housing policy from France's "National Council for Refoundation". Among the main measures announced were the non-renewal of the Pinel scheme, which will expire at the end of 2024, and the extension until 2027 of an interest-free loan scheme refocused on new multi-family housing in highdemand areas and existing properties that have undergone energy renovations in areas with less demand. This housing plan, considered insufficient to solve the problems facing the housing market by the main French construction and real estate federations (FPI, FNAIM, etc.), is likely to be supplemented by additional measures. In mid-June, the High Council for Financial Stability (HCSF) slightly relaxed a number of prudential banking ratios to make it easier to obtain a mortgage.

Bulk sales (21,000 units in Q1) fell by -7.9% over a 12-month rolling period, mainly due to a decline in acquisitions by social landlords. Investment in residential property totalled €530 million in Q1 2023 according to Immostat, a low volume compared with the previous year, but which should be put into perspective given the size of the Lamartine project (€2.4 billion). Managed assets (student residences, assisted living for seniors and co-living) account for almost 40% of residential investment volumes, compared with 20% in 2022.

CDC Habitat, a subsidiary of Caisse des Dépôts et Consignations (CDC), plans to acquire 17,000 housing units, including 5,000 social housing units and 12,000 intermediate housing units, in order to meet residential needs in high-demand areas and support the cash flow of property developers. In addition, Action Logement is expected to acquire 30,000 social and intermediate housing units in high-demand areas by the end of 2023.

Despite this unfavourable environment, there is still room for growth, particularly in managed property, which attracts strong interest from institutional investors with the rise of service-based models such as co-living and "build-to-rent". The need to reduce carbon emissions and urban sprawl is also opening up a host of opportunities in the form of large-scale refurbishment projects and conversions of obsolete assets. Residential assets continue to appeal to a wide range of investors seeking diversification and secure returns in line with strong demographic trends. For the time being, many investors are waiting for the end of the cycle of rising key interest rates before resuming investment in residential property.

3.2. Income statement and performance indicators

Whereas 2022 was marked by strong sales momentum and a record level of orders for Icade Promotion, the property development market has slowed significantly since the beginning of 2023, with orders down 40.4%⁶ for individual buyers and 7.9% for institutional investors. This was due to the sharp and sustained rises in interest rates over the last 18 months, which has impacted households' borrowing capacity and led to a more selective approach on the part of institutional investors.

Drawing on its agility and ability to adapt, Icade Promotion has adjusted its business to these new market conditions, in particular by:

Relying predominantly on bulk sales;
Increasing the selectivity of projects launched in volume terms and adjusting to the new demand levels;
Reviewing projects in the portfolio, recalibrating land values and strengthening balance sheet management; and
Adjusting structural costs to the new market environment.

Residential:

As a result, Icade Promotion's operational indicators proved resilient, particularly for the residential segment:

Orders decreased by a reasonable -14% in value terms to €582 million, supported by bulk sales, for which orders were up by +4% in value terms in H1;
Construction starts fell by -13% in volume terms in H1 2023 as projects were subject to a minimum sales threshold of 40% in order for construction to start (vs. 30% previously).

Commercial:

In a market at the bottom of the cycle, Icade Promotion has adopted a more defensive and opportunistic strategy.

Icade Promotion sold a 3,100-sq.m building at 43-45 rue Taitbout, 75009 Paris and signed a preliminary design contract to renovate the building via its Afterwork solution under a property development contract.

In addition, Icade Promotion sold floors three to six of the 5,010-sq.m Bridge View office building to Toulouse Métropole. Bridge View is located at the entrance to the Basso Cambo business park, near the Colomiers/Blagnac aeronautical hub.

Disposal of the Project Management Support and Healthcare Expertise business:

On June 30, 2023, Icade Promotion sold its Project Management Support and Healthcare Expertise business to OTEIS. The sale of this engineering business was part of a strategic refocus on the development business and also enabled a team of recognised experts to join a company with strong roots in its sector.

Financial information:

Icade Promotion's economic revenue reached €583 million as of June 30, 2023, up by +1.7% compared with June 30, 2022.

Revenue from the residential segment fell by -10.7% to €425 million (vs. €475 million as of June 30, 2022), impacted by the increased number of notarised sales at the end of 2022 following the adoption of a less favourable Pinel tax incentive scheme and the slowdown in the property market since the beginning of 2023.

Revenue from the commercial segment totalled €156 million (vs. €97 million as of June 30, 2022), mainly relating to revenue from the progress of works at the Envergure complex in Romainville (Seine-Saint-Denis) and the sale of the building renovated by Afterwork on rue Taitbout in Paris on June 29.

The current economic operating margin in H1 2023 was 5.7% (up 0.2 pps from 5.5% as of June 30, 2022), thanks in particular to the opportunistic sale of a commercial building.

For the residential segment, the active management of selling prices and the increased focus on bulk sales to institutional buyers at lower prices had an impact on profit margins. However, this decline was limited by an optimised management of project margins.

As a result, net current cash flow rose by 4.8 to €13.6 million, taking into account the higher cost of debt resulting from the slowdown in the absorption of sales and the rise in interest rates.

In H2 2023, Icade Promotion will push ahead with its adaptation strategy by building on solid fundamentals and continuing to adjust its economic and financial parameters to the new market environment.

⁶ Source: FPI

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

SUMMARY INCOME STATEMENT FOR THE PROPERTY DEVELOPMENT DIVISION ON AN ECONOMIC BASIS

(in millions of euros)	06/30/2023	06/30/2022	Change	Change (%)
Revenue	583.4	573.6	9.8	1.7%
Including Property Development revenue (POC method)	576.0	566.9	9.1
Cost of sales and other expenses	(479.2)	(471.9)	(7.4)
Net property margin from Property Development	96.8	95.0	1.7	1.8%
Property margin rate (net property margin / revenue (POC method))	16.8%	16.8%	0.0 pps
Including other revenue	7.4	6.7	0.7
Operating costs and other costs	(73.7)	(72.2)	(1.5)
Share of profit/(loss) of equity-accounted companies	0.4	0.2	0.2
CURRENT ECONOMIC OPERATING PROFIT/(LOSS) (a)	33.3	31.3	2.0	6.4%
Current economic operating margin (current economic operating profit or loss/revenue) (a)	5.7%	5.5%	0.2 pps
Cost of net debt	(9.0)	(3.8)	(5.1)
Other finance income and expenses	(1.4)	(5.2)	3.8
Corporate tax	(5.1)	(5.2)	0.1
NET CURRENT CASH FLOW	15.4	15.5	(0.1)	(0.5%)
NET CURRENT CASH FLOW ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	1.8	2.5	(0.7)
NET CURRENT CASH FLOW ATTRIBUTABLE TO THE GROUP	13.6	12.9	0.6	4.8%

(a) Adjustment for trademark royalties and holding company costs.

The table above shows the income statement on an economic basis, after taking into account the Group's ownership interest in joint ventures over which the Group exercises joint control.

(in millions of euros)	06/30/2023	06/30/2022	Change	Change (%)
Consolidated revenue	507.3	501.5	5.8	1.2%
Group's share of revenue from joint ventures	76.1	72.1	3.9	5.5%
Economic revenue	583.4	573.6	9.8	1.7%

PROPERTY DEVELOPMENT BACKLOG AND SERVICE ORDER BOOK

For property development projects, the backlog represents revenue under contract (excluding taxes) that has not yet been recognised based on the stage of completion of the projects.

The service order book represents service contracts (excluding taxes) that have been signed but have not yet been executed.

As of June 30, 2023, the backlog remained high at €1,774.2 million, down slightly (-3.7%) compared with December 31, 2022, ensuring that the Group's expected revenue target for 2023 is met.

This slight change compared to December 31, 2022 can be broken down by segment as follows:

A 2.1% increase in the Residential Property Development backlog resulting from the significant level of orders from institutional investors in H1 2023;
A decrease in the Commercial Property Development and Public and Healthcare Amenities Development backlog due to the recognition of part of the revenue from the Envergure property complex project in Romainville and the lack of any significant sales signed in H1 2023;
Disposal of the Project Management Support and Healthcare Expertise business as of June 30, 2023 which had a services backlog of €8 million.

3.2.1. Residential Property Development

In H1 2023, revenue from Residential Property Development totalled €424.8 million, down -10.7% compared to H1 2022. This change is explained by a -21% fall in notarised sales in value terms (€426 million in H1 2023 vs. €543 million in H1 2022) due to the increased number of notarised sales at the end of 2022 following the adoption of a less favourable Pinel tax incentive scheme and the slowdown in the market since the beginning of 2023.

As a result of lower revenue, the erosion of margins on projects due to price cuts, and the provisions made for study costs on projects proving difficult to sell, current economic operating profit from Residential Property Development came in at €19.6 million as of June 30, 2023, down from €25.8 million as of June 30, 2022.

MAIN PHYSICAL INDICATORS AS OF JUNE 30, 2023

Business indicators (*)	06/30/2023	06/30/2022	Change
PROPERTIES PUT ON THE MARKET
Paris region & Overseas France	595	1,249	(52.4%)
Other French regions	2,416	1,751	38.0%
TOTAL UNITS (**)	3,011	3,000	0.4%
Paris region & Overseas France	266.4	398.2	(33.1%)
Other French regions	653.6	420.3	55.5%
TOTAL REVENUE (potential in millions of euros)	920.0	818.5	12.4%
CONSTRUCTION STARTS
Paris region & Overseas France	563	784	(28.2%)
Other French regions	1,407	1,476	(4.7%)
TOTAL UNITS (**)	1,970	2,260	(12.8%)
Paris region & Overseas France	346.9	414.5	(16.3%)
Other French regions	347.6	299.6	16.0%
TOTAL REVENUE (potential in millions of euros)	694.5	714.0	(2.7%)
NET HOUSING ORDERS
Housing orders (in units) (**)	2,129	2,505	(15.0%)
Housing orders (in millions of euros including taxes)	582.4	678.0	(14.1%)
Housing order cancellation rate (in %)	19.7%	18.5%	+1.2 pps
AVERAGE SALE PRICE AND AVERAGE FLOOR AREA BASED ON HOUSING ORDERS
Average price including taxes per habitable sq.m (in €/sq.m)	5,137	5,001	2.7%
Average budget including taxes per housing unit (in €k)	278.0	274.6	1.3%
Average floor area per housing unit (in sq.m)	54.1	54.9	(1.5%)

(*) 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.

BREAKDOWN OF ORDERS BY TYPE OF CUSTOMER: sharp increase in institutional investors

As expected, amid higher inflation and rising interest rates, Icade Promotion recorded -15% fewer orders in volume terms and -14% in value terms compared to H1 2022. This drop was less than the decrease recorded on the market in Q1 2023.

Orders from institutional investors increased in H1 2023 (45.9% in H1 2023 vs. 33.3% in H1 2022), up +19.2% in volume terms and +3.9% in value terms. The strategy pursued by Icade Promotion consists in selling a significant portion of its housing stock to institutional investors in order to maintain a sufficient volume of activity and increase its absorption rate prior to completion.

Icade Promotion has been able to keep its inventory of unsold completed homes low by implementing sales measures adapted to the market. This inventory totalled €16 million in H1 2023, down 6.4% compared to H1 2022.

Orders from individuals were down -34% in volume terms and -23% in value terms. This decrease was especially pronounced for individual investors (24.4% of the total in H1 2023 vs. 36.6% in H1 2022) due to higher home loan interest rates and less attractive tax incentive schemes.

The total order cancellation rate increased slightly from 18.5% in H1 2022 to 19.7% in H1 2023. This is primarily due to the difficulties involved in obtaining home loans (order cancellation rate for units sold individually at 31.5% in H1 2023 vs. 24.6% in H1 2022).

The average price (including taxes) per habitable sq.m increased by 3% (€5,137/sq.m in H1 2023 vs. €5,001/sq.m in H1 2022) due to the significant weight of orders for a project in Paris where prices per sq.m were above the national average.

The number of properties put on the market in H1 2023 remained stable, with increased selectivity expected in H2. Icade Promotion aims to adapt its solutions by taking into consideration the financial circumstances of its customers and their evolving expectations.

Construction starts were down -13% in volume terms and -3% in value terms in H1 2023 compared to H1 2022. This change can be explained by the slowdown in sales and higher minimum sales threshold required in order to start construction on projects where units are sold individually (40% vs. 30% historically) in order to de-risk these projects.

Notarised sales were down -8% in volume terms and -22% in value terms due to the higher number of sales made at the end of 2022 and the slowdown in the market since early 2023. The substantial difference between the volume and value terms is attributable to the properties sold in H1 2022 in the Paris region where unit prices are higher.

Land portfolio

In H1 2023, the portfolio of residential land⁷ and building plots represented 14,125 units worth €3.1 billion on a proportionate consolidation basis vs. 14,684 units worth €3.3 billion as of December 31, 2022, down -5%. Icade Promotion has prioritised the renegotiation of its current land portfolio (prices, scheduling, new project design).

3.2.2. Commercial Property Development

Revenue from Commercial Property Development and Public and Healthcare Amenities Development rose sharply by 61.2% in H1 2023 (€156.3 million in H1 2023 vs. €97.0 million in H1 2022). This increase stemmed from revenue recognised in H1 2023 from projects that were in the backlog at the end of 2022 such as the Envergure complex in Romainville, and from the sale of an office building located on rue Taitbout in the 9th district of Paris.

⁷ Estimated number of units and revenue from projects for which a preliminary sale agreement for land has been signed and which have not yet been put on the market.

As a direct result of higher revenue and healthy profits from commercial property projects, current economic operating profit/(loss) from Commercial Property Development and Public and Healthcare Amenities Development came in at €13.5 million as of June 30, 2023, an improvement compared to June 30, 2022 (€5.3 million).

Office, Hotel and Retail portfolio

As of June 30, 2023, Icade Promotion had a portfolio of Commercial Property Development projects of around 511,095 sq.m (vs. 580,043 sq.m as of June 30, 2022), including 188,430 sq.m under construction.

Projects completed in H1 represented 15,461 sq.m.

Public and Healthcare Amenities Development

As of June 30, 2023, the portfolio of Public and Healthcare Amenities Development projects was equivalent to 30,173 sq.m (73,946 sq.m as of June 30, 2022), including 9,451 sq.m under construction. Most projects in this portfolio were located in metropolitan France outside the Paris region.

3.3. Growth potential

In total, Icade Promotion's potential revenue remained high. It represented 23,000 units for the residential segment and 214,400 sq.m for the commercial segment, totalling €8.2 billion in potential medium-term revenue, down -5.2% compared to December 31, 2022 (€8.7 billion).

This sales volume includes potential revenue from major projects won in 2022 and 2023 which highlights the teams' expertise in large-scale mixed-use projects and low-carbon construction.

In H1 2023, Icade and the Duval Group won the "Ambition Maritime et Littorale" tender to develop the Gavy site in Saint-Nazaire with a 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.

3.4. Working capital requirement and debt

The working capital requirement and net debt include fully consolidated entities and joint ventures.

(in millions of euros, on an economic basis)	06/30/2023 (a)	12/31/2022 (a)	Change
Residential Property Development	(458.0)	(265.5)	(192.5)
Commercial Property Development	0.2	27.6	(27.4)
NET WORKING CAPITAL REQUIREMENT – PROPERTY DEVELOPMENT (b)	(457.8)	(237.9)	(219.9)
NET DEBT – PROPERTY DEVELOPMENT (b)	302.5	78.1	224.4

(a) A negative number is a net asset, while a positive number is a net liability.

(b) The Property Development Division's WCR and net debt are presented excluding urban development projects and land for which a building permit has not been obtained or is still appealable.

The working capital requirement (WCR) for Property Development stood at roughly €458 million as of June 30, 2023, up €220 million compared to the end of 2022. It was impacted by the H1 slowdown in sales and the start of the large-scale Afterwork project in the Paris region. Steps have been taken to keep this WCR in check in H2.

Net debt was up €224 million in line with a higher WCR.

4. "Discontinued operations" under IFRS: Healthcare Property Investment

As explained in note 1.1. "H1 2023 highlights and events after the reporting period", Icade completed the first stage of the divestment of its Healthcare Property Investment Division on July 5, 2023 following the announcement of this transaction on March 13, 2023. This first stage involved the sale of 63% of Icade's stake in Icade Santé for a total of €1.4 billion, based on a valuation in line with EPRA NTA as of December 31, 2022, after adjusting for the 2022 dividend.

As part of this first stage, Primonial REIM took over management of Icade Sant 's property assets as well as IHE's portfolio. In particular, it is responsible for selling the assets in this portfolio at times that optimise their value.

On July 5, 2023, Icade Sant also repaid the outstanding balance of its €50.0 million shareholder loan from Icade and exited the cash pooling arrangement in place.

The Icade Group's healthcare business will be deconsolidated from its financial statements from the completion date of this first stage.

In its financial statements as of June 30, 2023, the Group accounted for the Healthcare Property Investment Division's contribution in discontinued operations under IFRS 5. Assets and liabilities as of June 30, 2023 were presented on two specific lines of the balance sheet and profit/(loss) from Healthcare Property Investment was reclassified to "Profit/(loss) from discontinued operations" for 2023 and 2022. For 2023, it includes the gain or loss on measuring the Healthcare Property Investment business at fair value less estimated costs to sell. The actual costs will be determined in H2 2023 and upon completion of the next stages of this sale.

The main consolidated income statement items for the Healthcare Property Investment Division include:

(in millions of euros)	06/30/2023	06/30/2022
Revenue	187.3	179.0
EBITDA	178.3	168.5
Change in fair value of investment property	8.5	136.9
Profit/(loss) on asset disposals	(0.0)	6.0
OPERATING PROFIT/(LOSS)	186.7	311.4
FINANCE INCOME/(EXPENSE)	(22.1)	(16.3)
Tax expense	1.6	(2.2)
Gain/(loss) on measurement at fair value less costs to sell (a)	(126.4)	-
NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS	39.9	292.9
NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO THE GROUP	(35.2)	163.4

(a) Gain/(loss) on measuring the Healthcare Property Investment business at fair value less costs to sell as estimated as of June 30, 2023.

The main balance sheet items for the Healthcare Property Investment Division as of June 30, 2023 include:

ASSETS
(in millions of euros)	06/30/2023
Net investment property	6,999.2
Financial assets at amortised cost	52.2
Derivative assets	63.4
Other non-current items	0.6
NON-CURRENT ASSETS	7,115.4
Derivative assets	40.3
Cash and cash equivalents	70.7
CURRENT ASSETS	111.0
TOTAL ASSETS FROM DISCONTINUED OPERATIONS	7,226.3

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

LIABILITIES

(in millions of euros)	06/30/2023
Financial liabilities at amortised cost	2,035.9
Other non-current liabilities	27.4
NON-CURRENT LIABILITIES	2,063.3
Financial liabilities at amortised cost	372.8
Other current liabilities	75.1
Other liabilities (a)	117.7
CURRENT LIABILITIES	565.7
TOTAL LIABILITIES FROM DISCONTINUED OPERATIONS (b)	2,629.0

(a) Gain/(loss) on measuring the Healthcare Property Investment business at fair value.

(b) The difference between this amount and the one presented as a liability in the statement of financial position relates to the remaining balance of provisions made for operations discontinued in prior periods.

5. The Icade Group's segmented income statement

Segmented income statement as of June 30, 2023

(in millions of euros)		Commer cial Property Invest ment	Health care Property Invest ment	Property Develop ment (economic basis*)	Total interseg ment and other	Total Icade Group (economic basis*)	IFRS adjustments (Property Develop ment, jointly controlled entities)	Total Icade Group
Current items:
Revenue	(a)=(b)+(c)+(d)	198.6	-	583.4	(9.3)	772.7	(76.1)	696.6
Including revenue from: Gross rental income from Property Investment	(b)	181.1	-			181.1		181.1
Including Property Development revenue (POC method)	(c)			576.0		576.0	(75.6)	500.4
Including other revenue	(d)	17.5	-	7.4	(9.3)	15.6	(0.4)	15.2
Service charges not recovered from tenants and other expenses	(e)	(20.1)	-		(0.0)	(20.1)		(20.1)
Net rental income from Property Investment	(f)=(b)+(e)	161.0	-		(0.0)	161.0		161.0
Net to gross rental income ratio for Property Investment	(f)/(b)	88.9%
Cost of sales and other expenses	(g)			(479.2)	0.8	(478.5)	67.5	(411.0)
Net property margin from Property Development	(h)=(c)+(g)			96.8	0.8	97.5	(8.1)	89.4
Property margin rate (net property margin / revenue (POC method))	(h)/(c)			16.8%
Operating costs and other costs	(i)	(31.9)	-	(73.7)	(1.6)	(107.2)	0.7	(106.5)
Share of profit/(loss) of equity-accounted companies	(j)	0.7		0.4		1.1	4.4	5.5
CURRENT OPERATING PROFIT/(LOSS)	(m)=(d)+(f)+(h)+(i)+(j)	147.4	-	30.8	(10.1)	168.1	(3.5)	164.6
Cost of net debt	(n)	(30.6)	-	(9.0)	(1.0)	(40.6)	2.4	(38.2)
Other finance income and expenses	(o)	(3.5)	(0.0)	(1.4)	(0.3)	(5.2)	0.5	(4.7)
CURRENT FINANCE INCOME/(EXPENSE)	(p)=(n)+(o)	(34.1)	(0.0)	(10.4)	(1.3)	(45.8)	2.9	(42.9)
Tax expense	(q)	(0.3)	-	(5.1)		(5.4)	0.5	(4.8)
Profit/(loss) from discontinued operations	(aba)		147.0		9.5	156.5		156.5
NET CURRENT CASH FLOW	(r)=(m)+(p)+(q)+(aba)	112.9	147.0	15.4	(2.0)	273.4	-	273.4
NET CURRENT CASH FLOW ATTRIBUTABLE TO NON CONTROLLING INTERESTS	(s)	(3.8)	(61.5)	(1.8)		(67.1)	-	(67.1)
NET CURRENT CASH FLOW ATTRIBUTABLE TO THE GROUP	(t)=(r)+(s)	109.2	85.6	13.6	(2.0)	206.3	-	206.3
Depreciation and impairment of operating assets	(u)	(7.6)
Depreciation of operating assets of equity-accounted companies	(um)	(0.1)
PROPERTY INVESTMENT: EPRA EARNINGS ATTRIBUTABLE TO THE GROUP	(v)=(t)+(u)+(um)	101.5	85.6
Non-current items:
Change in fair value of investment property – depreciation and impairment charges		(572.9)	-	(22.5)	1.2	(594.2)	(0.2)	(594.5)
Profit/(loss) on asset disposals		0.2	-	(3.2)		(3.0)		(3.0)
Non-current finance income/(expense)		(1.5)	-	(0.2)		(1.7)		(1.7)
Non-current corporate tax			-	3.7		3.7		3.7
Other non-current expenses, profit/(loss) from acquisitions, discontinued operations		(9.1)	(108.0)	(4.8)	0.9	(121.0)		(121.0)
Share of profit/(loss) of equity-accounted companies		(4.0)		(0.0)	(0.1)	(4.1)	0.2	(3.8)
Non-current portion of net profit/(loss) attributable to non controlling interests		42.0	(4.1)	0.7		38.6		38.6
Total non-current items	(ab)	(545.3)	(112.1)	(26.3)	1.9	(681.7)		- (681.7)
NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	(ac)=(t)+(ab)	(436.1)	(26.5)	(12.7)	(0.0)	(475.4)		- (475.4)

* Income statement items include controlled entities and joint ventures on a proportionate consolidation basis.

Segmented income statement as of June 30, 2022

(in millions of euros)		Commer cial Property Invest ment	Health care Property Invest ment Restated *	Property Develop ment (economic basis**)	Total interseg ment and other	Total Icade Group (economic basis*)	IFRS adjustments (Property Develop ment, jointly controlled entities)	Total Icade Group
Current items:
Revenue	(a)=(b)+(c)+(d)	199.9	-	573.6	(8.8)	764.8	(72.1)	692.6
Including revenue from: Gross rental income from Property Investment	(b)	185.0	-			185.0		185.0
Including Property Development revenue (POC method)	(c)			566.9		566.9	(72.1)	494.8
Including other revenue	(d)	14.9	-	6.7	(8.8)	12.9	(0.1)	12.8
Service charges not recovered from tenants and other expenses	(e)	(17.7)	-		(0.1)	(17.7)		(17.7)
Net rental income from Property Investment	(f)=(b)+(e)	167.3	-		(0.1)	167.3		167.3
Net to gross rental income ratio for Property Investment	(f)/(b)	90.4%
Cost of sales and other expenses	(g)			(471.9)	1.0	(470.8)	63.5	(407.3)
Net property margin from Property Development	(h)=(c)+(g)			95.0	1.0	96.1	(8.6)	87.5
Property margin rate (net property margin / revenue (POC method))	(h)/(c)			16.8%
Operating costs and other costs	(i)	(30.7)	-	(72.2)	(5.5)	(108.4)	1.0	(107.4)
Share of profit/(loss) of equity-accounted companies	(j)	1.3		0.2		1.5	6.9	8.4
CURRENT OPERATING PROFIT/(LOSS)	(m)=(d)+(f)+(h)+(i)+(j)	152.9	-	29.7	(13.3)	169.3	(0.7)	168.6
Cost of net debt	(n)	(28.3)	-	(3.8)	(4.5)	(36.7)	0.1	(36.6)
Other finance income and expenses	(o)	(2.7)	(0.0)	(5.2)	(1.0)	(8.8)	0.3	(8.5)
CURRENT FINANCE INCOME/(EXPENSE)	(p)=(n)+(o)	(31.0)	(0.0)	(9.0)	(5.5)	(45.5)	0.4	(45.1)
Tax expense	(q)	(0.9)	-	(5.2)		(6.1)	0.3	(5.8)
Profit/(loss) from discontinued operations	(aba)		137.8		13.2	150.9		150.9
NET CURRENT CASH FLOW	(r)=(m)+(p)+(q)+(aba)	121.0	137.8	15.5	(5.6)	268.7	0.0	268.7
NET CURRENT CASH FLOW ATTRIBUTABLE TO NON CONTROLLING INTERESTS	(s)	(4.3)	(57.2)	(2.5)		(64.0)	-	(64.0)
NET CURRENT CASH FLOW ATTRIBUTABLE TO THE GROUP	(t)=(r)+(s)	116.7	80.6	12.9	(5.6)	204.7	0.0	204.7
Depreciation and impairment of operating assets	(u)	(4.4)
Depreciation of operating assets of equity-accounted companies	(um)	(0.1)
PROPERTY INVESTMENT: EPRA EARNINGS ATTRIBUTABLE TO THE GROUP	(v)=(t)+(u)+(um)	112.2	80.6
Non-current items:
Change in fair value of investment property – depreciation and		99.4	-	(4.9)	1.2	95.6	0.1	95.7
impairment charges Profit/(loss) on asset disposals		(10.9)	-	(0.0)		(10.9)		(10.9)
Non-current finance income/(expense)		(14.7)	-		(0.4)	(15.1)		(15.1)
Non-current corporate tax				1.8		1.8		1.8
Other non-current expenses, profit/(loss) from acquisitions, discontinued operations		(1.3)	141.6	(2.0)	0.3	138.5	0.1	138.6
Share of profit/(loss) of equity-accounted companies		2.5		(0.0)	(0.1)	2.4	(0.2)	2.2
Non-current portion of net profit/(loss) attributable to non controlling interests		(7.7)	(58.7)	0.2		(66.3)		(66.3)
Total non-current items	(ab)	67.3	82.8	(5.0)	1.0	146.1	-	146.1
NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	(ac)=(t)+(ab)	184.0	163.4	7.9	(4.6)	350.8	0.0	350.8

** Income statement items include controlled entities and joint ventures on a proportionate consolidation basis.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2023

CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2023 50
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2023 54
STATUTORY AUDITORS' REPORT ON THE HALF-YEAR FINANCIAL INFORMATION 92

Consolidated financial statements as of June 30, 2023

Unless otherwise stated, the consolidated financial statements are presented in millions of euros, rounded to the nearest hundred thousand euros. Rounding differences may therefore occur in the financial statements presented.

Consolidated income statement

			06/30/2022	12/31/2022
(in millions of euros)	Notes	06/30/2023	restated (a) (b)	restated (a)
Revenue	8.1.	696.6	692.6	1,454.9
Other operating income		90.5	82.8	113.6
Income from operating activities		787.1	775.4	1,568.5
Purchases used		(414.6)	(402.9)	(861.1)
Outside services		(142.9)	(130.8)	(213.4)
Taxes, duties and similar payments		(3.6)	(2.7)	(5.0)
Staff costs, performance incentive scheme and profit sharing		(73.7)	(74.8)	(147.7)
Other operating expenses		2.4	(6.4)	(27.3)
Expenses from operating activities		(632.3)	(617.5)	(1,254.4)
EBITDA		154.8	157.9	314.1
Depreciation charges net of government investment grants		(12.0)	(9.1)	(21.8)
Change in fair value of investment property	5.3.	(565.2)	103.9	(387.3)
Charges and reversals related to impairment of tangible, financial and other current assets		(0.6)	1.0	3.0
Profit/(loss) from acquisitions		(0.1)	(1.0)	(0.7)
Profit/(loss) on asset disposals		(3.0)	(10.9)	(1.0)
Goodwill impairment	9.1.	(16.6)	-	-
Share of net profit/(loss) of equity-accounted companies	9.2.	1.7	10.6	14.0
OPERATING PROFIT/(LOSS)		(441.1)	252.3	(79.8)
Cost of net financial liabilities		(38.2)	(36.6)	(72.7)
Other finance income and expenses		(6.4)	(23.6)	(28.0)
FINANCE INCOME/(EXPENSE)	6.1.4.	(44.6)	(60.1)	(100.7)
Tax expense	10.1.	(1.2)	(4.1)	(22.2)
Net profit/(loss) from continuing operations		(486.8)	188.1	(202.7)
Profit/(loss) from discontinued operations	3.2.	39.9	292.9	424.6
NET PROFIT/(LOSS)		(447.0)	481.0	221.9
Including net profit/(loss) attributable to the Group		(475.4)	350.8	54.1
- Including continuing operations		(440.2)	187.3	(178.7)
- Including discontinued operations	3.2.	(35.2)	163.4	232.7
Including net profit/(loss) attributable to non-controlling interests		28.4	130.3	167.8
Basic earnings per share attributable to the Group (in €)	7.3.1.	(€6.27)	€4.63	€0.71
- Including continuing operations per share		(€5.81)	€2.48	(€2.36)
- Including discontinued operations per share		(€0.46)	€2.16	€3.08
Diluted earnings per share attributable to the Group (in €)	7.3.2.	(€6.27)	€4.63	€0.71
- Including continuing operations per share		(€5.80)	€2.47	(€2.36)
- Including discontinued operations per share		(€0.46)	€2.16	€3.07

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

(b) Under IFRS 15, income from service charges recharged to tenants was reclassified from "Outside services" to "Other operating income" (see note 3.3).

Consolidated statement of comprehensive income

		06/30/2022	12/31/2022
(in millions of euros)	06/30/2023	restated (a)	restated (a)
NET PROFIT/(LOSS) FOR THE PERIOD	(447.0)	481.0	221.9
Other comprehensive income:
- Recyclable to the income statement – cash flow hedges:	(7.9)	106.2	166.5
- Change in fair value	(7.8)	106.8	167.6
- Tax on changes in fair value	0.0		(0.1)
- Recycling to the income statement	(0.1)	(0.6)	(1.0)
- Non-recyclable to the income statement	0.6	3.0	2.9
- Actuarial gains and losses	0.7	3.4	3.4
- Taxes on actuarial gains and losses	(0.1)	(0.4)	(0.5)
Total other comprehensive income	(7.2)	109.2	169.4
- Including transfer to net profit/(loss)	(0.1)	(0.6)	(1.0)
COMPREHENSIVE INCOME FOR THE PERIOD	(454.2)	590.2	391.3
- Including comprehensive income attributable to the Group	(481.6)	439.2	185.6
- Including continuing operations	(445.6)	249.6	(94.5)
- Including discontinued operations	(36.1)	189.5	280.1
- Including comprehensive income attributable to non-controlling interests	27.4	151.1	205.7

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

Consolidated statement of financial position

		ASSETS

(in millions of euros)	Notes	06/30/2023	12/31/2022
Goodwill	9.1.	38.3	54.9
Other intangible fixed assets		27.4	29.4
Tangible fixed assets		59.7	53.6
Net investment property	5.1.1.	7,418.2	14,834.4
Equity-accounted investments	9.2.	119.0	128.3
Financial assets at fair value through profit or loss	6.1.5.	21.7	23.0
Financial assets at amortised cost	6.1.5.	16.2	82.0
Derivative assets	6.1.3.	83.8	155.1
Deferred tax assets		11.0	11.0
NON-CURRENT ASSETS		7,795.3	15,371.8
Inventories and work in progress	8.2.2.	928.5	816.2
Contract assets	8.2.3.	133.7	122.7
Accounts receivable	8.2.3.	179.5	173.5
Tax receivables		6.9	9.8
Miscellaneous receivables		354.7	377.8
Other financial assets at fair value through profit or loss	6.1.5.	0.1	0.1
Financial assets at amortised cost	6.1.5.	126.7	114.1
Derivative assets	6.1.3.	0.0	0.1
Cash and cash equivalents	6.1.6.	667.2	1,084.6
Assets held for sale – Healthcare Property Investment	3.2.	7,226.3	-
Assets held for sale – Other	5.1.2.	111.9	147.5
CURRENT ASSETS		9,735.5	2,846.4
TOTAL ASSETS		17,530.9	18,218.2

LIABILITIES

(in millions of euros) Notes	06/30/2023	12/31/2022
Share capital 7.1.1.	116.2	116.2
Share premium	2,387.4	2,514.3
Treasury shares	(34.2)	(33.9)
Revaluation reserves 6.1.3.	118.9	125.7
Other reserves	3,665.5	3,811.5
Net profit/(loss) attributable to the Group	(475.4)	54.1
Equity attributable to the Group	5,778.4	6,587.9
Non-controlling interests	2,033.3	2,096.6
EQUITY	7,811.7	8,684.5
Provisions 11.1.	19.0	22.2
Financial liabilities at amortised cost 6.1.1.	4,692.9	6,815.4
Lease liabilities	53.4	54.2
Tax liabilities	-	7.8
Deferred tax liabilities	27.1	28.6
Other financial liabilities	55.4	74.6
Derivative liabilities 6.1.3.	-	0.8
NON-CURRENT LIABILITIES	4,847.8	7,003.5
Provisions 11.1.	51.0	59.9
Financial liabilities at amortised cost 6.1.1.	698.3	1,144.6
Lease liabilities	12.3	8.7
Tax liabilities	1.4	11.4
Contract liabilities 8.2.3.	56.0	69.4
Accounts payable	760.3	680.8
Miscellaneous payables	660.1	549.9
Other financial liabilities	0.7	3.1
Derivative liabilities 6.1.3.	0.0	0.1
Liabilities held for sale 3.2.	2,631.3	2.3
CURRENT LIABILITIES	4,871.4	2,530.1
TOTAL LIABILITIES AND EQUITY	17,530.9	18,218.2

Consolidated cash flow statement

Notes (in millions of euros)	06/30/2023	06/30/2022	12/31/2022
I) OPERATING ACTIVITIES
Net profit/(loss)	(447.0)	481.0	221.9
Net depreciation and provision charges	16.7	6.8	34.4
Change in fair value of investment property	556.7	(240.8)	267.1
Unrealised gains and losses due to changes in fair value	119.0	(0.2)	(1.6)
Other non-cash income and expenses	(3.5)	0.8	16.2
Capital gains or losses on asset disposals	(3.9)	(10.3)	(20.7)
Capital gains or losses on disposals of investments in consolidated companies	2.3	(0.4)	(0.4)
Share of profit/(loss) of equity-accounted companies	(1.7)	(10.6)	(14.0)
Dividends received	0.1	0.1	(0.2)
Cash flow from operating activities after cost of net financial liabilities and tax	238.8	226.6	502.7
Cost of net financial liabilities	65.0	41.4	93.4
Tax expense	(0.5)	6.2	26.5
Cash flow from operating activities before cost of net financial liabilities and tax	303.3	274.2	622.6
Interest paid	(69.7)	(49.1)	(99.7)
Tax paid	(11.8)	(5.3)	(19.3)
Change in working capital requirement related to operating activities (a) 8.2.1.	(73.9)	(227.9)	(190.8)
NET CASH FLOW FROM OPERATING ACTIVITIES	148.0	(8.2)	312.9
Including net cash flow from operating activities – Discontinued operations 3.2.	117.7	(45.9)	97.5
II) INVESTING ACTIVITIES
Other intangible and tangible fixed assets and investment property
- acquisitions	(164.5)	(239.8)	(547.1)
- disposals	89.7	492.4	653.1
Change in security deposits paid and received	11.9	(16.9)	(5.6)
Change in financial receivables	1.1	1.0	2.0
Operating investments	(61.9)	236.7	102.4
Investments in subsidiaries
- acquisitions	(5.7)	(20.1)	(33.2)
- impact of changes in scope of consolidation	(1.4)	(5.8)	16.6
Investments in equity-accounted companies and unconsolidated companies
- acquisitions	10.5	10.5	10.1
- disposals	0.5	-	0.7
Dividends received and profit/(loss) of tax-transparent equity-accounted companies	(17.9)	(9.4)	(5.2)
Financial investments	(14.1)	(24.8)	(10.9)
NET CASH FLOW FROM INVESTING ACTIVITIES	(75.9)	211.9	91.5
Including net cash flow from investing activities – Discontinued operations 3.2.
III) FINANCING ACTIVITIES	(43.5)	(62.5)	(149.1)

Amounts received from non-controlling interests on capital increases (a)	7.7	71.5	89.8
- final and interim dividends paid to Icade SA shareholders 2.4.	(160.9)	(159.0)	(317.8)
- final and interim dividends paid to non-controlling interests	(89.5)	(94.9)	(95.9)
Repurchase of treasury shares	(0.3)	(2.2)	(0.1)
Change in cash from capital activities	(243.1)	(184.6)	(324.0)
Bond issues and new financial liabilities	392.0	1,267.0	1,771.6
Bond redemptions and repayments of financial liabilities	(644.4)	(1,002.1)	(1,426.8)
Repayments of lease liabilities	(5.6)	(4.3)	(8.7)
Acquisitions and disposals of current financial assets and liabilities	(17.4)	(13.2)	7.6
Change in cash from financing activities 6.1.1.	(275.4)	247.4	343.7
NET CASH FLOW FROM FINANCING ACTIVITIES	(518.5)	62.8	19.7
Including net cash flow from financing activities – Discontinued operations 3.2.	(227.8)	118.8	295.4
NET CHANGE IN CASH (I) + (II) + (III)	(446.4)	266.4	424.1
CHANGES IN CASH FROM DISCONTINUED OPERATIONS	(70.7)	(69.5)	(71.2)
OPENING NET CASH	966.3	542.3	542.3
CLOSING NET CASH	449.2	808.7	966.3
Cash and cash equivalents (excluding interest accrued but not due)	664.1	974.8	1,084.0
Bank overdrafts (excluding interest accrued but not due)	(214.9)	(166.2)	(117.7)
NET CASH	449.2	808.7	966.3

(a) In 2022, cash flow related primarily to discontinued operations:

- in H1, OPPCI IHE increased its capital by €176.0 million including €71.5 million subscribed by non-controlling interests. The newly issued shares were paid by the shareholders in 2021.

- in H2, Icade Santé increased its capital by €44.0 million including €18.3 million subscribed by non-controlling interests.

Consolidated statement of changes in equity

(in millions of euros)	Share capital	Share premium	Treasury shares	Revaluation reserves	Other reserves and net profit/(loss) attributable to the Group	Equity attributable to the Group	Non controlling interests	Total equity
EQUITY AS OF 12/31/2021	116.2	2,593.5	(39.1)	(3.0)	4,054.1	6,721.8	1,917.5	8,639.4
Net profit/(loss)					350.8	350.8	130.3	481.0
Other comprehensive income:
Cash flow hedges:
- Changes in value				85.9		85.9	20.9	106.8
- Recycling to the income statement				(0.5)		(0.5)	(0.1)	(0.6)
Other non-recyclable items:
- Actuarial gains and losses					3.4	3.4		3.4
- Taxes on actuarial gains and losses					(0.4)	(0.4)		(0.4)
Comprehensive income				85.4	353.7	439.2	151.1	590.2
Dividends		(79.3)			(239.8)	(319.1)	(98.0)	(417.1)
Capital increases (a)							71.5	71.5
Treasury shares			(2.2)			(2.2)		(2.2)
Other (b)				0.0	(4.3)	(4.3)	(17.8)	(22.1)
EQUITY AS OF 06/30/2022	116.2	2,514.3	(41.3)	82.5	4,163.8	6,835.4	2,024.2	8,859.7
Net profit/(loss)					(296.7)	(296.7)	37.5	(259.2)
Other comprehensive income:
Cash flow hedges:
- Changes in value				43.7		43.7	17.1	60.8
- Tax on changes in fair value				(0.1)		(0.1)		(0.1)
- Recycling to the income statement				(0.5)		(0.5)		(0.5)
Other non-recyclable items:
- Actuarial gains and losses					(0.1)	(0.1)	0.1	(0.0)
- Taxes on actuarial gains and losses					(0.0)	(0.0)		(0.0)
Comprehensive income				43.2	(296.8)	(253.5)	54.7	(198.8)
Dividends					1.2	1.2	0.0	1.2
Capital increases							18.3	18.3
Treasury shares			7.3		(5.3)	2.1		2.1
Other					2.7	2.7	(0.6)	2.1
EQUITY AS OF 12/31/2022	116.2	2,514.3	(33.9)	125.7	3,865.6	6,587.9	2,096.6	8,684.5
Net profit/(loss)					(475.4)	(475.4)	28.4	(447.0)
Other comprehensive income:
Cash flow hedges:
- Changes in value				(6.6)		(6.6)	(1.2)	(7.8)
- Tax on changes in fair value				(0.0)		(0.0)	0.0	0.0
- Recycling to the income statement				(0.2)		(0.2)	0.1	(0.1)
Other non-recyclable items:
- Actuarial gains and losses					0.7	0.7		0.7
- Taxes on actuarial gains and losses					(0.1)	(0.1)		(0.1)
Comprehensive income				(6.8)	(474.8)	(481.6)	27.4	(454.2)
Dividends		(126.9)			(202.3)	(329.1)	(98.0)	(427.2)
Capital increases					0.0	0.0	7.7	7.7
Treasury shares (c)			(0.3)			(0.3)		(0.3)
Other					1.5	1.5	(0.3)	1.2
EQUITY AS OF 06/30/2023	116.2	2,387.4	(34.2)	118.9	3,190.1	5,778.4	2,033.3	7,811.7

(a) In H1 2022, OPPCI IHE completed a capital increase of €176.0 million including €71.5 million subscribed by non-controlling interests.

(b) In 2022, other factors related primarily to changes in scope of consolidation, more specifically Icade's exchange with another entity of their respective interests in two assets, namely Orianz and Factor E, and the acquisition of the M&A Group.

(c) Treasury shares amounted to 446,679 as of June 30, 2023 vs. 456,679 as of December 31, 2022.

NOTE 1. GENERAL PRINCIPLES 55
1.1. General information 55
1.2. Accounting standards 55
1.3. Basis of preparation and presentation of the consolidated financial statements 56
NOTE 2. H1 2023 HIGHLIGHTS 58
2.1. Sale of the Healthcare Property Investment Division 58
2.2. Investments and disposals 58 2.3. Dividend distribution 58
NOTE 3. DISCONTINUED OPERATIONS 59
3.1. Sale of Icade's entire stake in its healthcare business 59
3.2. Financial statements for discontinued operations 59
3.3. Restatement of comparative information 61
NOTE 4. SEGMENT REPORTING 62
4.1. Segmented income statement 62
4.2. Segmented statement of financial position 62
4.3. Segmented cash flow from fixed assets and investment property 62
NOTE 5. PROPERTY PORTFOLIO AND FAIR VALUE 63
5.1. Property portfolio 63
5.2. Valuation of the property portfolio: methods and assumptions 64 5.3. Change in fair value of investment property 66

NOTE 6. FINANCE AND FINANCIAL INSTRUMENTS 67
6.1. Financial structure and contribution to profit/(loss) 67 6.2. Management of financial risks 71
6.3. Fair value of financial assets and liabilities 75
NOTE 7. EQUITY AND EARNINGS PER SHARE 76
7.1. Share capital and shareholding structure 76
7.2. Dividends 76
7.3. Earnings per share 77
NOTE 8. OPERATIONAL INFORMATION 78
8.1. Revenue 78
8.2. Components of the working capital requirement 78
NOTE 9. OTHER NON-CURRENT ASSETS 80
9.1. Goodwill 80
9.2. Change in equity-accounted investments 80 9.3. Information on joint ventures and associates 80
NOTE 10. INCOME TAX 81
10.1. Tax expense 81
NOTE 11. PROVISIONS AND CONTINGENT LIABILITIES 81
11.1. Provisions 81
11.2. Contingent liabilities 81
NOTE 12. OTHER INFORMATION 82
12.1. Off-balance sheet commitments 82
12.2. Events after the reporting period 82
12.3. Scope of consolidation 82

Note 1. General principles

1.1. General information

Icade ("the Company") is a French public limited company (SA, société anonyme). Its registered office is situated at 27 rue Camille Desmoulins, 92130 Issy-les-Moulineaux, France.

The Company's consolidated financial statements as of June 30, 2023 reflect the financial position and profits and losses of the Company and its subsidiaries ("the Group"), as well as the Group's investments in equity-accounted companies (joint ventures and associates). They were prepared in euros, which is the Company's functional currency.

The Group is an integrated real estate player operating as a commercial property investor and a developer of residential and office properties as well as large-scale public amenities. In H1 2023, the Group signed an exclusivity agreement for the sale of its healthcare business. The transaction's first stage was completed on July 5, 2023 (see note 2.1).

1.2. Accounting standards

The Group's condensed consolidated financial statements for the half-year ended June 30, 2023 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union as of June 30, 2023, pursuant to European Regulation No. 1606/2002 dated July 19, 2002, and include comparative information (H1 2022 and/or December 31, 2022) prepared under the accounting standards applicable at the reporting date.

The international accounting standards are issued by the IASB (International Accounting Standards Board) and have been adopted by the European Union. They include the IFRS, the IAS (International Accounting Standards) and their interpretations. These standards are available for viewing on the European Commission's website.

The accounting policies and measurement bases used by the Group in preparing the condensed consolidated financial statements are identical to those used for the consolidated financial statements as of December 31, 2022, subject to the specific provisions of IAS 34 – Interim Financial Reporting described in note 1.3.3, and except for those mandatory standards, interpretations and amendments to be applied for periods beginning on or after January 1, 2023, which are detailed in note 1.2.1 below.

Mandatory standards, amendments, interpretations and directive adopted by the European Union which became effective for annual periods beginning on or after January 1, 2023

Amendments to IAS 1 Disclosure of Accounting Policies. These amendments aim to clarify the disclosures to be made in the financial statements regarding material accounting policies ("material" as defined in IAS 1). IFRS Practice Statement 2: Making Materiality Judgements has been amended by adding guidance on how to identify material accounting policy information and examples of how to apply IAS 1 as amended.
Amendments to IAS 8 Definition of Accounting Estimates. The objective of these amendments is to define accounting estimates as "monetary amounts in financial statements that are subject to measurement uncertainty". They also specify that entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty (monetary amounts that are not directly observable).
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction. These amendments specify how companies should recognise deferred tax when they account for transactions, such as leases, by recognising both an asset and a liability.

These amendments have had no impact on the Group.

International Tax Reform – Pillar Two Model Rules.

The Pillar Two international tax reform, adopted by a European directive that has implemented the OECD's Global Anti-Base Erosion Rules (GloBE Rules). Applicable to groups with revenue of €750 million or more, this reform provides for a minimum effective tax rate of 15% on the income arising in each of the jurisdictions in which they operate.

"Transitional Safe Harbour", i.e. a temporary simplification measure, has been introduced for the financial years 2024 to 2026. This measure enables groups to comply with their GloBE obligations gradually by not having to perform all the calculations required to determine their tax liability for GloBE purposes from the outset in countries where their presence is not significant or where taxation is high.

The Group will continue to assess the impact of applying this directive in the second half of the financial year and, as soon as it is adopted by the European Union, will apply the amendment to IAS 12 providing for a mandatory temporary exception from accounting for deferred tax associated with top-up tax arising from the Pillar Two rules.

IFRS 17 Insurance Contracts (replacing IFRS 4).
Initial Application of IFRS 17 and IFRS 9 Comparative Information.

These amendments are not applicable to the Group.

Standards, amendments and interpretations issued but not yet mandatory for annual periods beginning on or after January 1, 2023

Standards, amendments and interpretations issued by the IASB effective for annual periods beginning on or after January 1, 2024 but not yet adopted by the European Union

Amendments to IAS 1 Classification of Liabilities as Current or Non-current. These amendments aim to clarify the criteria for the classification of a liability as either current or non-current.
Amendment to IFRS 16 Lease Liability in a Sale and Leaseback.
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements.

1.3. Basis of preparation and presentation of the consolidated financial statements

Measurement bases

The consolidated financial statements have been prepared according to the amortised cost method, with the exception of certain financial assets and liabilities and investment property measured at fair value.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. IFRS 13 – Fair Value Measurement utilises a fair value hierarchy across three levels:

Level 1: fair value measured based on unadjusted prices quoted in active markets for identical assets or liabilities;
Level 2: fair value measured based on models using observable data, either directly (i.e. prices), or indirectly (i.e. data derived from prices);
Level 3: fair value measured based on market data not directly observable.

According to the principle of relevance and the ensuing materiality notion, only information deemed relevant and useful to the users' understanding of the consolidated financial statements is reported.

Use of judgement and estimates

The preparation of consolidated financial statements requires the Group's management to use estimates and assumptions to determine the value of certain assets, liabilities, income and expenses, as well as for the information provided in the notes to the consolidated financial statements.

Due to the uncertainties inherent in any measurement process, the Group revises its estimates on the basis of regularly updated information. The future results of the operations concerned may differ from the estimates made at the reporting date of the condensed consolidated financial statements.

The main estimates made by the Group related to the following measurements:

The fair value of investment property determined by the valuations carried out by independent property valuers (see note 5.2);
Measurement of credit risk arising from accounts receivable;
Measurement of revenue based on the percentage of completion method for construction and off-plan sale contracts following the half-yearly review of property developments whose land is controlled by the Group.

The accounting estimates used to prepare the financial statements as of June 30, 2023 were made amid a complex and volatile economic environment with persistent inflation and rising interest rates. In H1 2023, the Group was able to withstand these elevated interest rates through its high levels of fixed rate or hedged debt. However, the Group will continue to pay particular attention to the short- and mediumterm outlook for rising interest rates in the financial markets and their impact on financing costs. For the period ended June 30, 2023, the Group considered the reliable information at its disposal with respect to the impact of this situation.

In addition to using estimates, the Group's management used its judgement to define the appropriate accounting treatment for certain operations and transactions where current IFRS and their interpretations did not specifically address the accounting issues raised.

For example, the Group's management has taken into account climate change and sustainable development issues through its investment and expenditure policy in line with applicable regulations and its strategy to reduce the Group's carbon footprint. As such, funds have been allocated on a yearly basis to finance projects to be undertaken. Icade has also actively pursued its strategy of using sustainable finance for its business activities while adhering to its Green Bond Framework.

In addition, management exercised its judgement in:

Determining the degree of control (sole or joint) by the Group over its investments or the existence of significant influence;
Measuring the right-of-use assets and lease commitments that were used in applying IFRS 16 Leases and, in particular, in determining lease terms;
Determining the classification of leases in which the Group is the lessor between operating and finance leases;
Recognising deferred tax assets, in particular tax loss carry forwards;
Determining whether acquisitions qualified as business combinations in accordance with the definition of a business introduced by an amendment to the revised IFRS 3;
Determining whether the criteria for classification as discontinued operations or assets held for sale and related liabilities in accordance with IFRS 5 are met.

Specific rules applying to the preparation of condensed consolidated financial statements

The condensed consolidated financial statements as of June 30, 2023 do not include all the financial information required for annual consolidated financial statements and should therefore be read in conjunction with the Group's consolidated financial statements as of December 31, 2022.

In accordance with IAS 34, the tax expense for H1 2023 was calculated by applying, for each company, the average effective tax rate estimated for the full financial year to the profit/(loss) before tax for the interim period. This rate was estimated based on 2023 data approved by management.

In addition, the Group's property assets are valued twice a year by independent valuers in accordance with the methods described in note 5.2.

Note 2. H1 2023 highlights

2.1. Sale of the Healthcare Property Investment Division

On March 13, 2023, Icade announced the signing of an exclusivity agreement with Primonial REIM on the sale of Icade's Healthcare Property Investment Division. On June 13, 2023, Icade signed a sale and purchase agreement with Primonial REIM and the minority shareholders of both Icade Santé and IHE. This represented another important milestone in the three-stage sale of its entire healthcare property portfolio worth a total of €2.6 billion based on EPRA NTA as of December 31, 2022.

The first stage of the transaction was completed on July 5, 2023. It involved the sale of 63% of Icade's stake in Icade Santé for a total of €1.4 billion, based on a valuation in line with EPRA NTA as of December 31, 2022, after adjusting for the 2022 dividend.

On July 5, 2023, Icade Sant also repaid the outstanding balance of its €50.0 million shareholder loan from Icade and exited the cash pooling arrangement in place.

The Icade Group's healthcare business will be deconsolidated from its financial statements from the completion date of this first stage.

In the Group's financial statements as of June 30, 2023, the Healthcare Property Investment business was classified as discontinued operations, with assets and liabilities presented on two specific lines of the balance sheet in accordance with IFRS 5. In addition, profit/(loss) from Healthcare Property Investment was reclassified to "Profit/(loss) from discontinued operations" for 2023 and 2022. For 2023, it includes the gain or loss on measuring the Healthcare Property Investment business at fair value less estimated costs to sell. The actual costs will be determined in H2 2023 and upon completion of the next stages of this sale.

Note 3 details the impact of applying IFRS 5 on the financial statements.

2.2. Investments and disposals

The Commercial Property Investment Division invested a total of €121.6 million. These investments related to the acquisition of Ponant B and ongoing development projects such as the Olympic Village, Jump and Grand Central.
The Commercial Property Investment Division sold assets for a total of €88.7 million. These disposals related to a residual residential portfolio sold to the RLF Group for nearly €40 million and the Eko Active office building.

For further information about investments and disposals completed during the period, an analysis has been provided in note 5.1.1 "Investment property".

2.3. Dividend distribution

The General Meeting held on April 21, 2023 approved a gross dividend of €4.33 per share for the financial year 2022 and the following payment terms:

Payment of an interim dividend of €2.16 per share in cash on March 2, 2023 totalling €163.7 million, after taking into account treasury shares; and
A final dividend payment of €2.17 per share on July 6, 2023 totalling €164.4 million, after taking into account treasury shares.

For further information about the dividends paid out by the Group during the half-year, an analysis has been provided in note 7 "Equity and earnings per share".

Note 3. Discontinued operations

3.1. Sale of Icade's entire stake in its healthcare business

The announcement of the sale of the Healthcare Property Investment Division's business, for which an update is provided in note 2.1, led the Group to account for the contribution of this division as discontinued operations under IFRS 5:

The net profit/(loss) from discontinued operations as of June 30, 2023 is presented on a separate line in the income statement called
"Net profit/(loss) from discontinued operations". The same treatment has been applied to comparative periods (see note 3.3);
Net profit/(loss) from discontinued operations for the period includes the fair value of the Healthcare Property Investment business less the costs associated with its sale estimated as of June 30, 2023. The final amounts will be determined upon completion of the transaction;
The assets held for sale and related liabilities are presented separately from other assets and liabilities on the balance sheet as of June 30, 2023 in "Assets from discontinued operations" and "Liabilities from discontinued operations" without restating the comparative balance sheet.
These assets and liabilities are recognised at the lower of their carrying amount and fair value less estimated costs to sell, with the exception of investment property measured at fair value under IAS 40, financial assets under IFRS 9 and deferred tax assets under IAS 12;
Net cash flow from operating, investment and financing activities from discontinued operations for the period is presented in the Group's cash flow statement for the current and comparative periods.

3.2. Financial statements for discontinued operations

The financial statements of the Healthcare Property Investment Division, which has been reclassified as discontinued operations, are detailed below:

Income statement for discontinued operations – Healthcare Property Investment

(in millions of euros)	06/30/2023	06/30/2022	12/31/2022
Revenue	187.3	179.0	360.7
EBITDA	178.3	168.5	336.2
Change in fair value of investment property	8.5	136.9	120.1
Profit/(loss) on asset disposals	(0.0)	6.0	6.0
OPERATING PROFIT/(LOSS)	186.7	311.4	462.3
FINANCE INCOME/(EXPENSE)	(22.1)	(16.3)	(33.5)
Tax expense	1.6	(2.2)	(4.3)
Gain/(loss) on measurement at fair value less costs to sell (a)	(126.4)	-	-
NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS	39.9	292.9	424.6
NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO THE GROUP	(35.2)	163.4	232.7

(a) Gain/(loss) on measuring the Healthcare Property Investment business at fair value less costs to sell as estimated as of June 30, 2023.

(in millions of euros)
	06/30/2023	06/30/2022	12/31/2022
NET PROFIT/(LOSS)	39.9	292.9	424.6
Other comprehensive income:
- Recyclable to the income statement – cash flow hedges:	(1.9)	44.7	81.1
- Change in fair value	(2.0)	44.9	81.5
- Recycling to the income statement	0.1	(0.2)	(0.4)
- Non-recyclable to the income statement	0.0	0.1	0.1
- Actuarial gains and losses	0.0	0.1	0.1
Comprehensive income recognised in equity	(1.9)	44.8	81.2
- Including transfer to net profit/(loss)	0.1	(0.2)	(0.4)
COMPREHENSIVE INCOME FROM DISCONTINUED OPERATIONS	38.0	337.7	505.8
- Attributable to the Group	(36.1)	189.5	280.1

Balance sheet for discontinued operations – Healthcare Property Investment

ASSETS
(in millions of euros)	06/30/2023
Other intangible fixed assets	0.1
Net investment property	6,999.2
Financial assets at amortised cost	52.2
Derivative assets	63.4
Deferred tax assets	0.4
NON-CURRENT ASSETS	7,115.4
Accounts receivable	23.9
Tax receivables	6.9
Miscellaneous receivables	8.9
Derivative assets	0.6
Cash and cash equivalents	70.7
CURRENT ASSETS	111.0
TOTAL ASSETS FROM DISCONTINUED OPERATIONS	7,226.3

LIABILITIES

(in millions of euros)	06/30/2023
Provisions	0.8
Financial liabilities at amortised cost	2,035.9
Lease liabilities	3.3
Tax liabilities	1.0
Deferred tax liabilities	2.9
Other financial liabilities	18.9
Derivative liabilities	0.5
NON-CURRENT LIABILITIES	2,063.3
Financial liabilities at amortised cost	372.8
Lease liabilities	0.1
Tax liabilities	7.8
Accounts payable	8.1
Miscellaneous payables	59.0
Derivative liabilities	0.1
Other liabilities (a)	117.7
CURRENT LIABILITIES	565.7
TOTAL LIABILITIES FROM DISCONTINUED OPERATIONS (b)	2,629.0

(a) Gain/(loss) on measuring the Healthcare Property Investment business at fair value.

Cash flow statement for discontinued operations – Healthcare Property Investment

(in millions of euros)	06/30/2023	06/30/2022	12/31/2022
I) OPERATING ACTIVITIES
Net profit/(loss)	39.9	292.9	424.6
Cash flow from operating activities before cost of net financial liabilities and tax	158.5	150.7	305.0
Interest paid	(16.1)	(7.6)	(29.2)
Tax paid	(6.0)	(4.8)	(10.3)
Change in working capital requirement related to operating activities	(6.2)	(74.1)	(68.0)
NET CASH FLOW FROM OPERATING ACTIVITIES	117.7	(45.9)	97.5
II) INVESTING ACTIVITIES
Other intangible and tangible fixed assets and investment property
- acquisitions	(57.3)	(128.2)	(242.6)
- disposals	1.0	82.1	95.2
Change in security deposits paid and received	12.7	(16.4)	(1.9)
Operating investments	(43.6)	(62.5)	(149.3)
Financial investments	0.1	0.0	0.3
NET CASH FLOW FROM INVESTING ACTIVITIES	(43.5)	(62.5)	(149.1)
III) FINANCING ACTIVITIES
Change in cash from capital activities	(215.9)	(44.7)	(0.9)
Bond issues and new financial liabilities	8.4	202.0	418.0
Bond redemptions and repayments of financial liabilities	(20.2)	(17.6)	(48.9)
Repayments of lease liabilities	(0.0)	(0.0)	(0.0)
Acquisitions and disposals of current financial assets and liabilities	(0.2)	(0.1)	(0.1)
Change in cash from financing activities	(12.0)	184.2	369.0
NET CASH FLOW FROM FINANCING ACTIVITIES	(227.8)	118.8	295.4

3.3. Restatement of comparative information

The comparative periods have been restated in the income statement by reclassifying the Healthcare Property Investment Division's contribution to "Profit/(loss) from discontinued operations", with the following impact:

	12/31/2022	IFRS 5	12/31/2022
(in millions of euros)	reported	adjustments	restated
Revenue	1,815.6	(360.7)	1,454.9
Other operating income	145.8	(32.2)	113.6
Income from operating activities	1,961.4	(392.9)	1,568.5
Expenses from operating activities	(1,311.1)	56.7	(1,254.4)
EBITDA	650.3	(336.2)	314.1
Change in fair value of investment property	(267.1)	(120.1)	(387.3)
Other operating income/(expenses)	(0.6)	(6.0)	(6.6)
OPERATING PROFIT/(LOSS)	382.5	(462.3)	(79.8)
FINANCE INCOME/(EXPENSE)	(134.1)	33.5	(100.7)
Tax expense	(26.5)	4.3	(22.2)
Profit/(loss) from discontinued operations	-	424.6	424.6
NET PROFIT/(LOSS)	221.9	-	221.9
NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	54.1	-	54.1

	06/30/2022	IFRS 5	06/30/2022
(in millions of euros)	(a)	adjustments	restated
Revenue	871.6	(179.0)	692.6
Other operating income	94.5	(11.7)	82.8
Income from operating activities	966.1	(190.7)	775.4
Expenses from operating activities	(639.7)	22.2	(617.5)
EBITDA	326.3	(168.5)	157.9
Change in fair value of investment property	240.8	(136.9)	103.9
Other operating income/(expenses)	(3.5)	(5.9)	(9.4)
OPERATING PROFIT/(LOSS)	563.7	(311.4)	252.3
FINANCE INCOME/(EXPENSE)	(76.4)	16.3	(60.1)
Tax expense	(6.2)	2.2	(4.1)
Profit/(loss) from discontinued operations	-	292.9	292.9
NET PROFIT/(LOSS)	481.0	-	481.0
NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	350.8	-	350.8

(a) Under IFRS 15, income from service charges recharged to tenants was reclassified from "Outside services" to "Other operating income".

Note 4. Segment reporting

As of June 30, 2023, the Healthcare Property Investment Division's contribution was recognised in discontinued operations in accordance with IFRS 5 (see note 3). Consequently, the Group's operating segments now include the Commercial Property Investment Division, the Property Development Division and the Healthcare Property Investment Division's discontinued operations.

This was also applied to the comparative segment information.

4.1. Segmented income statement

	Discontinued operations –
	Commercial Property Investment		Property Development		Investment	Healthcare Property		Intersegment transactions and other items		Total
(in millions of euros)	06/30/2023	06/30/2022	06/30/2023	06/30/2022	06/30/2023	06/30/2022	restated (a) 06/30/2023	06/30/2022	06/30/2023	06/30/2022 restated (a)
REVENUE	198.6	199.9	507.3	501.5			(9.3)	(8.8)	696.6	692.6
EBITDA	146.2	150.2	17.9	21.0			(9.2)	(13.3)	154.8	157.9
OPERATING PROFIT/(LOSS)	(429.8)	242.6	(3.2)	22.0			(8.2)	(12.2)	(441.1)	252.3
FINANCE INCOME/(EXPENSE)	(35.6)	(45.7)	(7.6)	(8.6)			(1.3)	(5.9)	(44.6)	(60.1)
Profit/(loss) from discontinued operations	(8.6)		-		39.0	279.4	9.5	13.6	39.9	292.9
NET PROFIT/(LOSS)	(474.4)	196.0	(11.6)	10.3	39.0	279.4		(4.6)	(447.0)	481.0
Net profit/(loss) attributable to non-controlling interests	(38.2)	12.0	1.1	2.4	65.6	115.9	-		28.4	130.3
NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP	(436.1)	184.0	(12.7)	7.9	(26.5)	163.4		(4.6)	(475.4)	350.8

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5.

In H1 2023, 100% of revenue was generated in France.

4.2. Segmented statement of financial position

	Discontinued operations –
	Commercial Property				Healthcare Property		Intersegment transactions
	Investment		Property Development		Investment		and other items		Total
	06/30/23	12/31/22	06/30/23	12/31/22	06/30/23	12/31/22	06/30/23	12/31/22	06/30/23	12/31/22
(in millions of euros)
Investment property	7,418.2	7,902.0			-	6,932.4	-		7,418.2	14,834.4
Other assets	3,469.0	3,744.4	1,812.5	1,742.8	5,921.5	(924.6)	(1,090.3)	(1,178.9)	10,112.6	3,383.7
TOTAL ASSETS	10,887.2	11,646.4	1,812.5	1,742.8	5,921.5	6,007.8	(1,090.3)	(1,178.9)	17,530.9	18,218.2
Equity attributable to the Group	4,681.5	5,314.8	104.6	115.9	1,032.4	1,197.3	(40.1)	(40.1)	5,778.4	6,587.9
Non-controlling interests	148.1	179.6	4.2	11.1	1,881.0	1,906.0	-	-	2,033.3	2,096.6
Financial liabilities	5,354.4	5,677.7	726.4	630.1		2,791.6	(689.6)	(1,139.4)	5,391.2	7,960.0
Other liabilities	703.2	474.3	977.3	985.7	3,008.1	112.9	(360.6)	0.6	4,328.0	1,573.7
TOTAL LIABILITIES AND EQUITY	10,887.2	11,646.4	1,812.5	1,742.8	5,921.5	6,007.8	(1,090.3)	(1,178.9)	17,530.9	18,218.2

4.3. Segmented cash flow from fixed assets and investment property

	Discontinued operations –
	Commercial Property Investment Property Development				Healthcare Property		Intersegment transactions and other items		Total
				Investment
(in millions of euros)	06/30/2023	06/30/2022	06/30/2023	06/30/2022	06/30/2023	06/30/2022	06/30/2023	06/30/2022	06/30/2023	06/30/2022
CASH FLOW:
- acquisitions	(103.6)	(103.7)	(3.6)	(7.9)	(57.3)	(128.2)	-	-	(164.5)	(239.8)
- disposals	88.6	410.3	-		1.0	82.1	-	-	89.7	492.4

Note 5. Property portfolio and fair value

5.1. Property portfolio

Investment property

The Property Investment Division's property portfolio mainly consists of investment property. It is valued as described in note 5.2. Changes in investment property can be broken down as follows:

						Changes in fair value
				Construction		recognised in the income	Other changes
(in millions of euros)		12/31/2022	Acquisitions	work (a)	Disposals	statement	(b)	06/30/2023
Investment property measured at fair value		14,834.4	6.7	106.9	-	(557.0)	(6,972.8)	7,418.2
INVESTMENT PROPERTY	5.3.	14,834.4	6.7	106.9	-	(557.0)	(6,972.8)	7,418.2
Investment property of equity-accounted companies (c)		100.8	-	0.2	-	(3.7)	-	97.2
Investment property held for sale (IFRS 5) (d)		147.5	-	8.1	(84.7)	0.8	40.3	111.9
Financial receivables and other assets		72.8	-		-	-	(1.1)	71.7
Investment property held for sale – Healthcare Property Investment		-	25.6	32.6	(1.0)	9.6	6,932.4	6,999.2
VALUE OF THE PROPERTY PORTFOLIO		15,155.4	32.3	147.8	(85.8)	(550.4)	(1.1)	14,698.3
Portfolio distribution:
Offices		6,101.2	6.7	64.1	(47.4)	(438.8)	-	5,685.8
Business parks		1,802.9	-	48.2	-	(120.3)	(0.0)	1,730.8
Other assets		318.9		2.9	(37.3)	(0.9)	(1.1)	282.5
Commercial Property Investment		8,223.0	6.7	115.2	(84.7)	(559.9)	(1.1)	7,699.1
Discontinued operations – Healthcare Property Investment	3.2.	6,932.4	25.6	32.6	(1.0)	9.6	0.0	6,999.2
VALUE OF THE PROPERTY PORTFOLIO		15,155.4	32.3	147.8	(85.8)	(550.4)	(1.1)	14,698.3

(a) The Commercial Property Investment Division's construction work included €1.8 million in capitalised finance costs.

(b) Other changes primarily related to repayments of financial receivables and reclassifications of investment property to assets held for sale.

(c) Investment property of equity-accounted property investment companies is measured at fair value and shown on a proportionate consolidation basis.

(d) Other assets held for sale related to Commercial Property Investment assets subject to preliminary sale agreements such as Grand Central and Nautilus.

The appraised value of the property portfolio broke down as follows:

(in millions of euros)	06/30/2023	12/31/2022
VALUE OF THE PROPERTY PORTFOLIO	14,698.3	15,155.4
Lease liabilities	(29.6)	(28.3)
Lease liabilities from discontinued operations	(3.4)	(3.4)
Unrealised capital gains on other appraised assets	5.5	6.4
APPRAISED VALUE OF THE PROPERTY PORTFOLIO	14,670.7	15,130.1
Portfolio distribution:
Offices	5,680.4	6,095.7
Business parks	1,730.8	1,802.9
Other assets	263.8	302.4
Commercial Property Investment	7,674.9	8,201.0
Discontinued operations – Healthcare Property Investment	6,995.8	6,929.0
APPRAISED VALUE OF THE PROPERTY PORTFOLIO	14,670.7	15,130.1

Investments/Acquisitions

Investments made by the Commercial Property Investment Division amounted to €121.6 million during the period and primarily included the following:

The acquisition of the remaining sections of the Ponant B building in Paris for €6.7 million;
Projects under development for €74.4 million including the Athletes Village (€11.2 million), Jump in Saint-Denis (€16.5 million), Next (€8.1 million), Grand Central (€8.0 million) and MFactory (€7.7 million);
Other investments, encompassing "Other capex" and "Other" for €40.6 million, related mainly to building maintenance work and tenant improvements.

Disposals

Disposals totalled €88.7 million during the period and mainly related to Eko Active in Marseille and the residual residential portfolio.

5.2. Valuation of the property portfolio: methods and assumptions

Valuation assignments

The Group's property assets are valued twice a year by independent property valuers for the publication of the half-year and annual consolidated financial statements, according to a framework consistent with the SIIC Code of Ethics (sociétés d'investissement immobilier cotées, French listed real estate investment companies) published in July 2008 by the French Federation of Real Estate Companies (Fédération des sociétés immobilières et foncières).

Valuers are regularly selected through a competitive process. They are chosen from among members of the French Association of Property Valuation Companies (Association Française des Sociétés d'Expertise Immobilière, AFREXIM).

In accordance with the SIIC Code of Ethics, after seven years Icade shall ensure that there is an internal turnover of the teams responsible for the valuation of its assets in the selected property valuation company. The valuer signing the valuation may not be appointed for more than two consecutive terms of four years except where the valuer has met the requirement with regard to the internal turnover of the teams.

Property valuations were entrusted to Jones Lang LaSalle Expertises, Cushman & Wakefield Valuation France, CBRE Valuation, Catella Valuation and BNP Paribas Real Estate Valuation. Property valuation fees are billed on the basis of a fixed service fee that takes into account the specificities of the properties (number of units, floor area, number of existing leases, etc.) and that is not based on the value of the assets.

The assignments of the property valuers, whose main valuation methods and conclusions are presented hereafter, are performed according to professional standards, in particular:

The French Property Valuation Charter (Charte de l'expertise en évaluation immobilière), fifth edition, published in March 2017;
The Barthès de Ruyter report from the French Securities and Exchange Commission (COB), which is part of the French Financial Markets Authority (AMF), dated February 3, 2000, on the valuation of the property assets of publicly traded companies;
On an international level, TEGoVA's (The European Group of Valuers' Associations) European Valuation Standards as set out in the ninth edition of its Blue Book published in 2020, as well as the Red Book standards of the Royal Institution of Chartered Surveyors (RICS).

These various texts specify the required qualifications for the property valuers, a code of conduct and ethics, and the main definitions (values, floor areas, rates and main valuation methods).

During each valuation session and when valuers submit their valuation reports, the Group makes sure that the methods used by the different property valuers to value its assets are consistent.

Valuations are presented both inclusive and exclusive of duties, the values excluding duties being net of duties and fixed legal expenses calculated by the property valuers.

Operating properties of significant value, business parks and the Le Millénaire shopping centre are subject to a double appraisal approach. Until their completion, this approach is also applied to the Commercial Property Investment Division's office projects under development (excluding off-plan acquisitions) with a valuation or capex budget over €10 million.

On-site inspections are systematically conducted by the property valuers for all new assets added to the portfolio. Further on-site inspections are then organised according to a multi-year schedule or each time that a specific event in the life of the building requires it (occurrence of significant changes in its structure or environment).

All the assets, including the land bank and projects under development, were valued as of June 30, 2023 according to the procedures currently in place within the Group, with the exception of:

Properties subject to a preliminary sale agreement as of the end of the reporting period that are valued based on the contractual sale price (or the price agreed as part of exclusive talks if applicable);
Public properties and projects held as part of public-private partnerships (PPP) which are not subject to a formal valuation due to the fact that ownership ultimately returns to the State at the end of these contracts. These assets are included in the value of the Group's property portfolio based on their net carrying amount;
Properties acquired less than three months before the end of the reporting period, which are valued at their acquisition price.

The Group has also implemented a process of internal valuation by its asset management teams in order to verify the asset values obtained by the property valuers and to gain a better understanding of the future performance of the portfolio on the basis of the business plans defined. This process is updated on a yearly basis.

Methods used by the property valuers

Investment property is valued by the property valuers who use two methods simultaneously: the net income capitalisation method and the discounted cash flow method (the property valuer may use the mean of the two methods or the most appropriate method, as the case may be). The direct sales comparison method, which is based on the prices of transactions noted on the market for assets equivalent in type and location, is also used to verify these valuations.

The net income capitalisation method involves applying a yield to income streams, whether that income is reported, existing, theoretical or potential (estimated rental value). This approach may be implemented in different ways depending on the type of income considered (effective rent, estimated rental value or net rental income), as different yields are associated with each type.

The discounted cash flow method assumes that the value of the assets is equal to the present value of the cash flows expected by the investor, including the sale at the end of the holding period. In addition to the resale value obtained by applying a yield to the previous year's rents, cash flows include rents, the different service charges not recovered by the owner and the major maintenance and repair work. The discount rate to be applied to the cash flows is calculated based either on a risk-free rate plus a risk premium (related both to the property market and to the building considered taking into account its characteristics in terms of location, construction and security of income) or on the weighted average cost of capital.

The land bank and properties under development are also appraised. The methods used by the property valuers primarily include the residual method and/or the discounted cash flow method, and also in certain cases the sales comparison method.

The residual method involves calculating the residual value of a project from the point of view of a property developer to whom the land has been offered. From the sale price of the building at the time of completion, the property valuer deducts all the costs to be incurred, including construction costs, fees and profit, finance costs and any land-related costs.

For properties under development, all outstanding costs linked to the completion of the project, along with carrying costs until completion, must be deducted from the buildings' estimated sale price. Projects under development are valued on the basis of a clearly identified and approved project, as soon as the building permit can be processed and implemented.

Regardless of the method used to determine their estimates, property valuers set a value and discount rate in line with the risks inherent in each project and, in particular, the state of progress of the various approval and construction stages (demolition permit, building permit, objections, stage of completion of work, any pre-commitment, or rent guarantee). From the exit value, the property valuers must explain which procedure they followed in estimating the degree of risk and the change in valuation for the building in the light of the circumstances under which they worked and the information made available to them.

It should be noted that, for all of its properties, Icade informs its property valuers of the work scheduled to be carried out over the next 10 years (maintenance, development, refurbishment). This also includes the work deemed necessary to implement Icade's carbon reduction strategy. In addition to this scheduled work, valuers rely on their own assumptions regarding the work required to re-let an asset if they presuppose that it will be vacated in their valuation.

Main valuation assumptions for investment property

Given the limited availability of public data, the complexity of property valuations and the fact that property valuers use the Group's confidential occupancy statuses for their valuations, the Group considered Level 3, within the meaning of IFRS 13 (see note 1.3.1), to be the classification best suited to its assets. In addition, unobservable inputs such as rental growth rate assumptions and capitalisation rates are used by the property valuers to determine the fair values of the Group's assets.

Asset types		Rates for discounting	Exit yields	Market yields (income	Estimated rental value
	Methods generally used	cash flows (DCF)	(DCF)	capitalisation)	(in €/sq.m)
OFFICES AND BUSINESS PARKS
Offices
Paris	Capitalisation and DCF	5.0% - 7.0%	3.5% - 5.5%	3.5% - 5.2%	270 - 980
La Défense/Peri-Défense	Capitalisation and DCF	5.0% - 7.5%	4.8% - 7.3%	4.5% - 7.0%	260 - 475
Other Western Crescent	Capitalisation and DCF	4.5% - 5.2%	4.2% - 4.8%	4.0% - 4.5%	470 - 550
Inner Ring	Capitalisation and DCF	5.0% - 8.0%	4.9% - 6.8%	4.8% - 7.2%	240 - 380
Outer Ring	Capitalisation and DCF	5.0% - 6.0%	6.5% - 7.5%	7.5% - 9.5%	220 - 230
France outside the Paris region	Capitalisation and DCF	5.4% - 9.9%	4.4% - 8.9%	4.3% - 8.5%	120 - 340
Business parks
Inner Ring	DCF	4.5% - 11.4%	5.0% - 9.0%	N/A	110 - 330
Outer Ring	DCF	5.2% - 10.0%	5.0% - 9.0%	N/A	50 - 270
Other Commercial Property Investment
assets
Hotels	Capitalisation	N/A	N/A	5.1% - 8.1%	(a)
Retail	Capitalisation and DCF	7.5% - 9.5%	6.5% - 8.0%	6.6% - 8.5%	80 - 270
Warehouses	Capitalisation and DCF	9.5% - 10.5%	N/A	11% - 13%	45 - 55
Residential	Comparison	N/A	N/A	N/A	N/A

Fair value sensitivity of property assets

The impact of changes in yields on the fair value of property assets is presented in the table below:

	Yields (a)
	+25 bps		+50 bps
(in millions of euros)	As a % of fair value as of 06/30/2023	in millions of euros	As a % of fair value as of 06/30/2023	in millions of euros
Offices	(4.0%)	(226)	(7.6%)	(434)
Business parks	(3.1%)	(54)	(5.9%)	(103)
Other assets	(1.9%)	(5)	(3.7%)	(10)
TOTAL COMMERCIAL PROPERTY INVESTMENT	(3.7%)	(286)	(7.1%)	(547)

(a) Yield on the operating property portfolio, including duties.

5.3. Change in fair value of investment property

The change in fair value of investment property for the period broke down as follows:

(in millions of euros)	Notes	06/30/2023	06/30/2022 restated (a)	12/31/2022 restated (a)
Offices		(445.2)	64.6	(349.7)
Business parks		(122.3)	34.6	(37.9)
Other assets		2.3	4.7	0.4
COMMERCIAL PROPERTY INVESTMENT		(565.2)	103.9	(387.3)
CHANGES IN VALUE RECOGNISED IN THE INCOME STATEMENT		(565.2)	103.9	(387.3)
Other (b)		9.0	2.4	(6.2)
CHANGE IN FAIR VALUE OF INVESTMENT PROPERTY	5.1.1.	(556.2)	106.2	(393.5)

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

(b) Mainly relates to the straight-lining of assets and liabilities associated with investment property.

The €556.2 million decrease in fair value is mainly due to adjusting market values as risk-free rates and financing costs sharply increased.

Note 6. Finance and financial instruments

6.1. Financial structure and contribution to profit/(loss)

Change in net financial liabilities

Breakdown of net financial liabilities at end of period

Net financial liabilities as of June 30, 2023 and December 31, 2022 broke down as follows:

Cash flow from financing activities

(in millions of euros) Bonds Borrowings from credit institutions Finance lease liabilities		12/31/2022 4,650.0 2,336.3 201.4	New financial liabilities (c) - 15.6 8.4	Repayments (c) - (78.4) (13.0)	Fair value adjustments and other changes (d) - 0.0 0.1	Total before reclassifi cation to discontinued operations 4,650.0 2,273.6 196.9	Reclassifi cation to discontinued operations (e) (1,100.0) (1,093.9) (196.8)	06/30/2023 3,550.0 1,179.7 0.2
Other borrowings and similar liabilities		0.1	0.0	(0.0)	(0.0)	0.1	-	0.1
NEU Commercial Paper		553.0	368.0	(553.0)	-	368.0	-	368.0
Total borrowings		7,740.8	392.0	(644.4)	0.2	7,488.6	(2,390.7)	5,097.9
Payables associated with equity investments		107.2	-	-	(4.3)	102.9	(15.9)	87.0
Bank overdrafts		117.7			97.2	214.9	(0.0)	214.9
Total gross interest-bearing financial liabilities		7,965.7	392.0	(644.4)	93.1	7,806.4	(2,406.5)	5,399.8
Interest accrued and amortised issue costs		(5.7)			(0.8)	(6.5)	(2.2)	(8.7)
GROSS FINANCIAL LIABILITIES (a)	6.1.2.	7,960.0	392.0	(644.4)	92.3	7,799.9	(2,408.7)	5,391.2
Interest rate derivatives Financial assets (b) Cash and cash equivalents	6.1.3. 6.1.5. 6.1.6.	(154.3) (147.4) (1,084.6)			7.1 (9.0) 346.7	(147.2) (156.4) (737.9)	63.4 (0.0) 70.7	(83.8) (156.4) (667.2)
NET FINANCIAL LIABILITIES		6,573.7	392.0	(644.4)	437.0	6,758.3	(2,274.6)	4,483.7
Discontinued operations – NET FINANCIAL

LIABILITIES 2,274.6 2,274.6

(a) Including €698.3 million in current financial liabilities and €4,692.9 million in non-current financial liabilities.

(b) Excluding security deposits paid and security deposits received and held in an escrow account.

(c) Cash flow from financing activities.

(d) Other changes related primarily to cash flow from bank overdrafts and cash and cash equivalents.

(e) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

Gross debt excluding derivatives and the reclassification of the Healthcare Property Investment Division as discontinued operations (see note 3) was down by €160.1 million compared to the previous period, mainly due to a net decrease in outstanding NEU Commercial Paper of €185.0 million.

The -€275.4 million change in cash flow from financing activities in the cash flow statement primarily included cash flow relating to net financial liabilities (€644.4 million decrease and €392.0 million increase), disposals of current financial assets and liabilities (€17.4 million) and repayments of lease liabilities recognised under IFRS 16 (€5.6 million).

Components of financial liabilities

Gross financial liabilities: type of rate, maturity and fair value

Gross financial liabilities at amortised cost, excluding issue costs and premiums amortised using the effective interest method, stood at €5,399.8 million as of June 30, 2023 and broke down as follows:

	Balance sheet
	value	Current			Non-current			Fair value
			1 to	2 to	3 to	4 to
(in millions of euros)	06/30/2023	< 1 year	2 years	3 years	4 years	5 years	> 5 years	06/30/2023
Bonds	3,550.0	-	-	1,250.0	-	1,200.0	1,100.0	3,024.9
Borrowings from credit institutions	782.8	13.7	2.9	3.1	417.9	53.1	292.1	666.5
Finance lease liabilities	0.2	0.1	0.0	0.0	-	-	-	0.2
Other borrowings and similar liabilities	0.1	0.0	0.0	0.0	-	-	-	0.1
Payables associated with equity investments	13.4	13.4	-	-	-	-	-	13.4
NEU Commercial Paper	368.0	368.0	-	-	-	-	-	368.0
Fixed rate debt	4,714.5	395.3	2.9	1,253.2	417.9	1,253.1	1,392.1	4,073.1
Bonds	-	-	-	-	-	-	-	-
Borrowings from credit institutions	396.9	2.0	104.5	67.9	43.7	2.0	176.8	395.1
Finance lease liabilities	-	-	-	-	-	-	-	-
Other borrowings and similar liabilities	0.0	0.0	-	-	-	-	-	0.0
Payables associated with equity investments	73.6	73.6	-	-	-	-	-	73.6
Bank overdrafts	214.9	214.9	-	-	-	-	-	214.9
Variable rate debt	685.3	290.5	104.5	67.9	43.7	2.0	176.8	683.6
TOTAL GROSS INTEREST-BEARING	5,399.8	685.8	107.4	1,321.0	461.6	1,255.1	1,569.0	4,756.7
FINANCIAL LIABILITIES
Gross interest-bearing financial liabilities from
discontinued operations	2,406.5	362.7	158.7	372.5	200.8	25.9	1,285.9	2,100.0
Total gross interest-bearing financial liabilities including discontinued operations	7,806.4	1,048.5	266.1	1,693.5	662.3	1,281.1	2,854.9	6,856.7

The average debt maturity (excluding NEU Commercial Paper and discontinued operations) was 5.0 years as of June 30, 2023 (5.3 years as of December 31, 2022).

As of June 30, 2023 and excluding discontinued operations, the average maturity was 3.8 years for variable rate debt and 6.3 years for the related hedges, allowing adequate hedging and anticipating coverage of future financing needs.

Characteristics of the bonds

			Nominal value on the			Nominal value as of
ICADE	Issue date	Maturity date	issue date	Rate	Repayment profile	06/30/2023
FR0013181906	06/10/2016	06/10/2026	750.0	Fixed rate 1.75%	Bullet	750.0
FR0013218393	11/15/2016	11/17/2025	500.0	Fixed rate 1.125%	Bullet	500.0
FR0013281755	09/13/2017	09/13/2027	600.0	Fixed rate 1.5%	Bullet	600.0
FR0013320058	02/28/2018	02/28/2028	600.0	Fixed rate 1.625%	Bullet	600.0
FR0014001IM0	01/18/2021	01/18/2031	600.0	Fixed rate 0.625%	Bullet	600.0
FR0014007NF1	01/19/2022	01/19/2030	500.0	Fixed rate 1%	Bullet	500.0
Bonds						3,550.0
Bonds – Discontinued operations						1,100.0
Total bonds including discontinued operations						4,650.0

Derivative instruments

Presentation of the fair value of derivatives in the consolidated statement of financial position

Derivative instruments consist of interest rate cash flow hedges. As of June 30, 2023, the fair value of these instruments was a net asset position of €83.8 million vs. €154.3 million as of December 31, 2022.

Detailed changes in fair value of hedging derivatives as of June 30, 2023 were as follows:

			Changes in
			fair value		Total before	Reclassifi
			recognised	Changes in	reclassifi	cation to
			in the	fair value	cation to	discontinued
			income	recognised	discontinued	operations
(in millions of euros)		12/31/2022 Acquisitions	statement	in equity	operations	(a)	06/30/2023
Cash flow hedges	154.3	0.4	0.4	(7.9)	147.2	(63.4)	83.8
Interest rate swaps – fixed-rate payer	145.9	-	0.4	(8.3)	138.0	(61.0)	77.0
Interest rate options	8.4	0.4	-	0.4	9.2	(2.4)	6.8
Non-hedging instruments	0.0	-	-	-	0.0	-	0.0
Interest rate swaps – fixed-rate payer	-	-	-	-	-	-	-
Interest rate options	0.0	-	-	-	0.0	-	0.0
INTEREST RATE DERIVATIVES EXCLUDING MARGIN CALLS	154.3	0.4	0.4	(7.9)	147.2	(63.4)	83.8
TOTAL INTEREST RATE DERIVATIVES	154.3	0.4	0.4	(7.9)	147.2	(63.4)	83.8
Including derivative assets	155.2	0.4	0.3	(8.2)	147.8	(63.9)	83.8
Including derivative liabilities	(0.9)	-	0.1	0.3	(0.6)	0.6	(0.0)

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

Changes in revaluation reserves

Revaluation reserves consisted exclusively of fair value adjustments to financial instruments used by the Group for the effective portion of interest rate hedges for €149.7 million as of June 30, 2023.

Changes in revaluation reserves in consolidated equity as of June 30, 2023 are shown in the table below:

			Attributable to
(in millions of euros)	Total	Attributable to the Group	non-controlling interests
REVALUATION RESERVES AS OF 12/31/2022	157.6	125.7	31.9
Changes in value of cash flow hedges	(7.8)	(6.6)	(1.2)
Revaluation reserves for cash flow hedges recycled to the income statement	(0.1)	(0.2)	0.1
Deferred tax on changes in value of cash flow hedges	0.0	(0.0)	0.0
Other comprehensive income	(7.9)	(6.8)	(1.0)
REVALUATION RESERVES AS OF 06/30/2023	149.7	118.9	30.8

Derivatives: analysis of notional amounts by maturity

The derivative portfolio as of June 30, 2023 was as follows:

	06/30/2023
(in millions of euros)	Total	< 1 year	> 1 year and < 5 years	> 5 years
Interest rate swaps – fixed-rate payer	300.9	-	38.1	262.8
Interest rate options – Caps	134.9	12.0	108.8	14.2
TOTAL PORTFOLIO OF OUTSTANDING DERIVATIVES	435.8	12.0	146.9	277.0
Interest rate swaps – fixed-rate payer	125.0	-	-	125.0
TOTAL PORTFOLIO OF FORWARD START DERIVATIVES	125.0	-	-	125.0
TOTAL INTEREST RATE DERIVATIVES AS OF 06/30/2023	560.8	12.0	146.9	402.0
Discontinued operations – Outstanding derivatives	810.7	24.0	635.1	151.6
Discontinued operations – Forward start derivatives	133.1	-	7.0	126.1
TOTAL INTEREST RATE DERIVATIVES INCLUDING DISCONTINUED OPERATIONS AS OF 06/30/2023	1,504.6	36.0	788.9	679.7

These derivatives are used as part of the Group's interest rate hedging policy (see note 6.2.2).

Finance income/(expense)

Finance income/(expense) consists primarily of:

Cost of gross financial liabilities (mainly interest expenses on financial liabilities and derivatives) adjusted for income from cash, related loans and receivables;
Other finance income and expenses (primarily including commitment fees).

The Group recorded a net finance expense of €44.6 million for H1 2023.

(in millions of euros)	06/30/2023	06/30/2022	12/31/2022
		restated (a)	restated (a)
Interest expenses on financial liabilities	(51.5)	(36.1)	(76.4)
Interest expenses on derivatives	4.7	(1.0)	(0.3)
Recycling to the income statement of interest rate hedging instruments	0.4	0.4	0.8
COST OF GROSS FINANCIAL LIABILITIES	(46.3)	(36.7)	(75.9)
Interest income from cash and cash equivalents	4.8	0.2	1.7
Income from receivables and loans	2.8	(0.0)	1.2
Changes in fair value of cash equivalents recognised in the income statement	0.5	-	0.5
Net income from cash and cash equivalents, related loans and receivables	8.2	0.1	3.3
COST OF NET FINANCIAL LIABILITIES	(38.2)	(36.6)	(72.7)
Income/(expense) from financial assets at fair value through profit or loss	(1.4)	0.7	1.8
Changes in fair value of derivatives recognised in the income statement	(0.2)	(0.2)	(0.4)
Commitment fees	(3.1)	(3.1)	(6.1)
Restructuring costs for financial liabilities (b)	-	(15.6)	(16.5)
Finance income/(expense) from lease liabilities	(1.3)	(1.1)	(2.2)
Other finance income and expenses	(0.4)	(4.3)	(4.6)
Total other finance income and expenses	(6.4)	(23.6)	(28.0)
FINANCE INCOME/(EXPENSE)	(44.6)	(60.1)	(100.7)

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

(b) Includes prepayment penalties for bonds (call premiums) and other borrowings.

Financial assets and liabilities

Changes in financial assets and liabilities during the period

Changes in other financial assets as of June 30, 2023 broke down as follows:

				Impact of
				changes in fair
				value
				recognised in
			Disposals /	the income
(in millions of euros)	12/31/2022	Acquisitions	Repayments	statement	Other (c)	06/30/2023
Financial assets at fair value through profit or loss (a)	23.1	0.6	(0.5)	(1.4)	(0.0)	21.7
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS	23.1	0.6	(0.5)	(1.4)	(0.0)	21.7
Receivables associated with equity investments and other related
parties	88.1	10.3	(5.0)	-	0.5	93.9
Loans	0.3	-	-	-	-	0.3
Shareholder loans	21.3	-	-	-	6.7	27.9
Deposits and guarantees paid	65.4	4.5	(16.8)	-	(45.9)	7.2
Other (b)	21.1	0.7	(0.0)	-	(8.2)	13.5
FINANCIAL ASSETS AT AMORTISED COST	196.1	15.4	(21.8)	-	(46.9)	142.8
TOTAL FINANCIAL ASSETS	219.2	16.0	(22.3)	(1.4)	(46.9)	164.6

(a) Financial assets at fair value mainly consisted of investments in unconsolidated companies.

(b) Includes escrowed funds.

(c) Other changes related primarily to the reclassification of the Healthcare Property Investment Division as discontinued operations (see note 3).

In addition, other financial liabilities consisted mostly of deposits and guarantees received from tenants for €56.0 million as of June 30, 2023. The non-current portion represents €55.3 million, including €54.6 million for the portion maturing in more than five years.

Maturity analysis of financial assets

A maturity analysis of financial assets as of June 30, 2023 is shown in the table below:

Financial assets at amortised cost		Current	Non-current
(in millions of euros)	06/30/2023	< 1 year	> 1 year and < 5 years	> 5 years
Receivables associated with equity investments and other related parties	93.9	93.9	-	-
Loans	0.3	0.1	0.0	0.2
Deposits and guarantees paid	7.2	2.9	1.7	2.6
Shareholder loans	27.9	27.9	-	-
Other	13.5	1.9	-	11.6
FINANCIAL ASSETS AT AMORTISED COST	142.8	126.7	1.7	14.4

Cash and cash equivalents

(in millions of euros)	06/30/2023	12/31/2022
Cash equivalents	198.9	245.3
Cash on hand and demand deposits (including bank interest receivable)	468.3	839.4
CASH AND CASH EQUIVALENTS	667.2	1,084.6

6.2. Management of financial risks

The monitoring and management of financial risks are centralised within the Financing and Treasury Division of the Group's Finance Department. In addition, the Group's Risk, Rates, Treasury and Finance Committee meets on a regular basis with the Group's CEO, Head of Risk, CFO and Head of Financial Control to discuss all matters relating to the management of the Group's liabilities and associated risks.

The Audit and Risk Committee is also informed at least once a year of the Group's financial policy and the monitoring of the various financial risk management policies.

Liquidity risk

A liquidity risk policy provides a framework and limits to the Group's Finance Department in order to ensure that the Group is adequately protected from this risk.

As of June 30, 2023, the Icade Group, excluding the Healthcare Property Investment Division which was reclassified as discontinued operations, had liquidity totalling €2,129.2 million:

a fully undrawn amount of €1,680 million from Icade's credit lines (excluding credit lines for property development projects). This amount was unchanged compared to December 31, 2022;
€449.2 million in closing net cash.

Excluding NEU Commercial Paper as it is a short-term source of financing, liquidity amounted to €1,761.2 million and covered around four years of debt principal and interest payments as of June 30, 2023.

In addition, the Group ensures disciplined management and monitoring of the maturities of its main credit lines as shown in the bar chart below. This chart presents the cumulative future principal repayments on the financial liabilities and interest payments for the Group excluding the Healthcare Property Investment Division, as estimated up to the maturity dates.

The Group's next bond maturity is in November 2025.

Interest rate risk

Interest rate risk is also governed by a specific policy set out by the Group's Finance Department and reported on a regular basis to the Audit and Risk Committee. This risk includes, in the event of increased interest rates, the risk of increased finance expenses related to variable rate financial liabilities and, in the event of reduced interest rates, the risk of reduced finance income related to variable rate financial assets.

In addition, the Group may use variable rate debt to finance its investments, thus remaining able to prepay loans without penalty.

For the past several years, the Group has pursued a prudent interest rate risk management policy with over 90% of its debt at fixed rate or hedged. Against a backdrop of historically low interest rates, the Group mostly secured fixed-rate debt over the last few years.

		06/30/2023
(in millions of euros)		Fixed rate	Variable rate	Total
Bonds		3,550.0	-	3,550.0
Borrowings from credit institutions		782.8	396.9	1,179.7
Finance lease liabilities		0.2	-	0.2
Other borrowings and similar liabilities		0.1	61.3	61.4
NEU Commercial Paper		368.0	-	368.0
Total (a)		4,701.1	458.2	5,159.2
Breakdown before hedging (in %)		91%	9%	100%
Impact of outstanding interest rate hedges (b)	6.1.3.	435.8	(435.8)	-
Breakdown after hedging		5,136.9	22.3	5,159.2
Breakdown after hedging (in %)		100%	0%	100%

(a) Total borrowings and overdraft facilities of SAS Neuilly Victor Hugo.

(b) Taking into account outstanding hedges for calculating interest rate risk (see note 6.1.3).

As of June 30, 2023, the Group's total debt (excluding discontinued operations) consisted of 91% fixed rate debt and 9% variable rate debt, with fixed rate and hedged debt representing 100% of the total.

Excluding discontinued operations and NEU Commercial Paper, the average debt maturity was 5.0 years as of June 30, 2023, with 3.8 years for variable rate debt and 6.3 years for the related hedges. It should be noted that the sale of the Healthcare Property Investment Division had a positive impact on all these indicators: excluding this sale, the average debt maturity is 4.8 years, with 2.8 years for variable rate debt and 4.7 years for the related hedges.

It should be noted that the Group favours designating its hedging instruments as "cash flow hedges" according to IFRS 9; therefore, any changes in fair value of such instruments are recognised in equity (for the effective portion).

The accounting impact of a -1% or +1% change in interest rates on the value of derivatives is described below:

	06/30/2023
(in millions of euros)	Impact on equity before tax	Impact on the income statement before tax
Derivative instruments
Impact of a +1% change in interest rates	25.0	-
Impact of a -1% change in interest rates	(27.6)	-
Payables
Impact of a +1% change in interest rates		0.1
Impact of a -1% change in interest rates		(0.1)

Currency risk

Since the Group does not enter into any foreign currency transactions, it is not exposed to currency risk.

Credit risk

In the course of its business, the Group is exposed to two major types of counterparties: financial institutions and its tenants.

Regarding financial institutions, credit and/or counterparty risk relates to cash and cash equivalents, and to the banks where they are deposited. The vast majority of investments have maturities of less than one year with a very low risk profile. These investments are monitored daily. As part of the control process, they also require approval prior to any transactions being made. Additionally, in order to limit its counterparty risk, the Group only enters into financial transactions with major banking institutions and applies a principle of risk dispersion, avoiding concentration of exposure to any single counterparty. These principles are set out in the Bank Counterparty Risk Policy managed by the Group's Finance Department.

As regards its tenants, the Group believes that it is not exposed to significant credit risk thanks to its diversified tenant portfolio in terms of location and individual size of lease commitments. In addition, the Group has introduced procedures to verify the creditworthiness of tenants prior to signing leases and on a regular basis thereafter. In particular, a customer solvency analysis is carried out for the Property Investment business and a check is made on the financing of insurance and guarantees for the Property Development business. These procedures are subject to regular monitoring.

The Group's exposure to credit risk (excluding the Healthcare Property Investment Division) corresponds primarily to the net carrying amount of receivables less deposits received from tenants, i.e. €52.6 million as of June 30, 2023.

As of June 30, 2023, the Healthcare Property Investment Division, reclassified as discontinued operations (see note 3), had no exposure to credit risk as deposits received from tenants were greater than the net carrying amount of receivables.

Covenants and financial ratios

In addition, the Group is required to comply with the financial covenants set out in the bank agreements and listed below, which are covered by the Group's financial risk monitoring and management processes. These covenants are calculated in accordance with the bank agreements. They include the debt relating to the Healthcare Property Investment Division reclassified as discontinued operations from June 30, 2023.

		Covenants	06/30/2023
LTV bank covenant	Maximum	< 60%	46.1%
ICR	Minimum	> 2	5.55x
CDC's stake	Minimum	34%	39.20%
	Minimum	From > €2bn
Value of the property portfolio (a)		to > €7bn	€14.7bn
Security interests in assets	Maximum	< 20% of the property portfolio	7.2%

(a) Around 39.2% of the debt subject to a covenant on the value of the property portfolio has a limit of €2 billion or €3 billion, 6.2% has a limit of €5 billion and 54.6% has a limit of €7 billion.

Loans taken out by the Group may be subject to covenants based on financial ratios—loan-to-value (LTV) ratio and interest coverage ratio (ICR)—and to a clause on the level of control by Caisse des d p ts, the Group's major shareholder, which may trigger early repayment. All covenants were met as of June 30, 2023.

As of June 30, 2023, Caisse des dépôts held 39.50% of voting rights and a 39.20% stake in Icade SA.

LTV bank covenant

Including the Healthcare Property Investment Division as of June 30, 2023, the LTV (loan-to-value) ratio, which is the ratio of net financial liabilities to the latest valuation of the property portfolio excluding duties, stood at 46.1% as of June 30, 2023 (compared with 43.5% as of December 31, 2022).

Taking into account the first stage of the sale of Icade Santé completed on July 5, 2023 and the impact of the staged disposal of the Healthcare Property Investment Division, the LTV bank covenant stood at 38.2%.

Interest coverage ratio (ICR)

Including the Healthcare Property Investment Division as of June 30, 2023, the interest coverage ratio, which is the ratio of EBITDA plus the Group's share of net profit/(loss) of equity-accounted companies to the interest expense for the period decreased to 5.55x for H1 2023 (6.62x in H1 2022). The ratio remains at a high level, demonstrating the Group's ability to comfortably comply with its bank covenants.

Taking into account the disposal of the Healthcare Property Investment Division, the interest coverage ratio for H1 2023 was 4.10x vs. 4.60x for H1 2022 based on the same calculation method.

6.3. Fair value of financial assets and liabilities

Reconciliation of the net carrying amount to the fair value of financial assets and liabilities

Below is the reconciliation of the net carrying amount to the fair value of financial assets and liabilities as of the end of H1 2023:

				Fair value
	Carrying amount		Fair value	through profit	Fair value as of
(in millions of euros)	as of 06/30/2023	Amortised cost	through equity	or loss	06/30/2023
ASSETS
Financial assets	164.6	142.8	-	21.7	164.6
Derivative instruments	83.8	0.0	83.8	-	83.8
Contract assets	133.7	133.7			133.7
Accounts receivable	179.5	179.5			179.5
Other operating receivables (a)	56.9	56.9			56.9
Cash equivalents	198.9	147.2	-	51.7	198.9
TOTAL FINANCIAL ASSETS	817.4	660.1	83.8	73.5	817.4
LIABILITIES
Financial liabilities	5,391.2	5,391.2		-	4,756.7
Lease liabilities	65.7	65.7			65.7
Other financial liabilities	56.1	56.1			56.1
Derivative instruments	0.0	-	0.0	-	0.0
Contract liabilities	56.0	56.0			56.0
Accounts payable	760.3	760.3			760.3
Other operating payables (a)	416.9	416.9			416.9
TOTAL FINANCIAL LIABILITIES	6,746.2	6,746.2	0.0	-	6,111.8

(a) Excluding agency transactions, prepaid expenses/income and social security and tax receivables/payables.

Fair value hierarchy of financial instruments

The financial instruments whose fair value is determined using a valuation technique based on unobservable data are investments in unconsolidated, unlisted companies.

As of June 30, 2023, the Group's financial instruments consisted of:

Derivative assets and liabilities measured based on observable data (Level 2 of the fair value hierarchy);
Financial assets at fair value through profit or loss, measured based on market data not directly observable (Level 3 of the fair value hierarchy);
Cash equivalents (Level 1 of the fair value hierarchy).

Below is a summary table of the fair value hierarchy of financial instruments as of June 30, 2023:

		06/30/2023
(in millions of euros)	Notes	Level 1: quoted price in an active market	Level 2: valuation technique based on observable data	Level 3: valuation technique based on unobservable data	Fair value
ASSETS
Derivatives excluding margin calls	6.1.3.	-	83.8	-	83.8
Financial assets at fair value through profit or loss	6.1.5.	-	-	21.7	21.7
Cash equivalents	6.1.6.	51.7			51.7
LIABILITIES
Derivative instruments	6.1.3.	-	0.0	-	0.0

Note 7. Equity and earnings per share

7.1. Share capital and shareholding structure

Share capital

As of June 30, 2023, the share capital was unchanged compared to December 31, 2022 at €116.2 million and consisted of 76,234,545 ordinary shares. All the shares issued are fully paid up.

As of June 30, 2023, no shares registered directly with the Company (not with an agent of Icade) were pledged.

Shareholding structure

As of June 30, 2023 and December 31, 2022, the Company's shareholding structure, both in terms of number of shares and percentage of share capital held, was as follows:

	06/30/2023		12/31/2022
	Number		Number
Shareholders	of shares	% of capital	of shares	% of capital
Caisse des dépôts	29,885,064	39.20%	29,885,064	39.20%
Crédit Agricole Assurances Group	14,565,910	19.11%	14,565,910	19.11%
Public	31,036,350	40.71%	31,079,420	40.77%
Employees	282,542	0.37%	247,472	0.32%
Treasury shares	464,679	0.61%	456,679	0.60%
TOTAL	76,234,545	100.00%	76,234,545	100.00%

7.2. Dividends

	Dividends paid as of
(in millions of euros)	06/30/2023	12/31/2022
Payment (a) to Icade SA shareholders for the previous financial year deducted from:
- Tax-exempt fiscal profit (in accordance with the SIIC tax regime)	163.7	249.0
- Profit taxable at the standard rate	-	-
- "Merger premium" – Return of capital		68.8
Total distribution	163.7	317.8

(a) The 2022 dividend was paid as follows (see note 2.4):

- an interim dividend payment of €2.16 per share on March 2, 2023 totalling €163.7 million, after taking into account treasury shares;

- a final dividend payment of €2.17 per share on July 6, 2023 totalling €164.4 million, after taking into account treasury shares.

Dividends per share distributed in the financial years 2023 and 2022 in respect of profits for 2022 and 2021 were €4.33 and €4.20, respectively.

7.3. Earnings per share

Below are the detailed figures for basic and diluted earnings per share as of June 30, 2023, and December 31, 2022:

Basic earnings per share

		06/30/2022	12/31/2022
(in millions of euros)	06/30/2023	restated (a)	restated (a)
Net profit/(loss) attributable to the Group from continuing operations	(440.2)	187.3	(178.7)
Net profit/(loss) attributable to the Group from discontinued operations	(35.2)	163.4	232.7
Net profit/(loss) attributable to the Group	(475.4)	350.8	54.1
Opening number of shares	76,234,545	76,234,545	76,234,545
Increase in the average number of shares as a result of a capital increase	-	-	-
Average number of treasury shares outstanding	(463,340)	(546,877)	(552,021)
Weighted average undiluted number of shares (b)	75,771,205	75,687,668	75,682,524
Net profit/(loss) attributable to the Group from continuing operations per share (in €)	(€5.81)	€2.48	(€2.36)
Net profit/(loss) attributable to the Group from discontinued operations per share (in €)	(€0.46)	€2.16	€3.08
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO THE GROUP (in €)	(€6.27)	€4.63	€0.71

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

(b) The weighted average undiluted number of shares is the number of shares at the start of the period plus, as the case may be, the average number of shares related to the capital increase less the average number of treasury shares outstanding.

Diluted earnings per share

		06/30/2022	12/31/2022
(in millions of euros)	06/30/2023	restated (a)	restated (a)
Net profit/(loss) attributable to the Group from continuing operations	(440.2)	187.3	(178.7)
Net profit/(loss) attributable to the Group from discontinued operations	(35.2)	163.4	232.7
Net profit/(loss) attributable to the Group	(475.4)	350.8	54.1
Weighted average undiluted number of shares	75,771,205	75,687,668	75,682,524
Impact of dilutive instruments (bonus shares)	76,085	145,891	132,766
Weighted average diluted number of shares (b)	75,847,290	75,833,559	75,815,290
Diluted net profit/(loss) attributable to the Group from continuing operations per share (in €)	(€5.80)	€2.47	(€2.36)
Diluted net profit/(loss) attributable to the Group from discontinued operations per share (in €)	(€0.46)	€2.16	€3.07
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO THE GROUP (in €)	(€6.27)	€4.63	€0.71

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

(b) The weighted average diluted number of shares is the weighted average undiluted number of shares adjusted for the impact of dilutive instruments (bonus shares).

The diluted number of shares includes the unvested bonus shares which meet service and performance conditions.

Note 8. Operational information

8.1. Revenue

The Group's revenue breaks down as follows:

(in millions of euros)	06/30/2023	06/30/2022 restated (a)	12/31/2022 restated (a)
REVENUE	696.6	692.6	1,454.9
Including lease income from operating and finance leases – Commercial Property Investment	181.1	185.0	364.0
Including construction and off-plan sale contracts – Property Development	459.8	493.3	1,059.3

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

Service charges recharged to tenants included in the "Other income" line of the consolidated income statement were as follows:

		06/30/2022	12/31/2022
(in millions of euros)	06/30/2023	restated (a)	restated (a)
Commercial Property Investment	86.8	78.5	107.1
SERVICE CHARGES RECHARGED TO TENANTS	86.8	78.5	107.1

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3.3).

8.2. Components of the working capital requirement

The working capital requirement consists primarily of the following items:

Inventories and work in progress, accounts receivable, contract assets and miscellaneous receivables on the asset side of the consolidated statement of financial position;
Accounts payable, contract liabilities and miscellaneous payables on the liability side of the consolidated statement of financial position.

Change in working capital requirement

The change in working capital requirement from operating activities in the consolidated cash flow statement can be broken down by segment as follows:

(in millions of euros)	06/30/2023	06/30/2022	12/31/2022
Commercial Property Investment	24.7	47.4	21.1
Property Development	(92.4)	(201.2)	(144.0)
Discontinued operations – Healthcare Property Investment	(6.2)	(74.1)	(68.0)
TOTAL CASH FLOW FROM COMPONENTS OF THE WORKING CAPITAL REQUIREMENT	(73.9)	(227.9)	(190.8)

The €73.9 million negative change in working capital requirement as of June 30, 2023 is mainly attributable to:

For Property Development: a €102.9 million decrease in inventories, a €32.6 million increase in accounts payable and other payables and a €24.4 million decrease in contract assets and liabilities;
For Commercial Property Investment: a €51.1 million increase in accounts payable and other payables and a €26.3 million decrease in accounts receivable and other receivables;
For Healthcare Property Investment, classified as discontinued operations: a €13.4 million decrease in accounts receivable and other receivables and a €7.2 million increase in accounts payable and other payables.

Inventories and work in progress

Changes in inventories in H1 2023 were as follows:

(in millions of euros)	Land bank	Work in progress	Unsold completed units	Total	Commercial Property Investment	Total
Gross value	309.6	538.2	15.2	862.9	0.8	863.8
Impairment loss	(13.5)	(32.2)	(1.8)	(47.5)	(0.0)	(47.6)
NET VALUE AS OF 12/31/2022	296.1	505.9	13.4	815.4	0.8	816.2
Gross value	183.4	769.2	18.8	971.4	0.8	972.3
Impairment loss	(16.4)	(25.6)	(1.8)	(43.8)	(0.0)	(43.8)
NET VALUE AS OF 06/30/2023	167.0	743.6	17.0	927.7	0.8	928.5

Accounts receivable and contract assets and liabilities

Changes in accounts receivable in H1 2023 were as follows:

			Net change in impairment losses
			recognised in the	Reclassification
		Change for the	income	to discontinued
(in millions of euros)	12/31/2022	period	statement	operations (a)	06/30/2023
Construction contracts (advances from customers)	69.0	(13.5)	-	-	55.5
Advances, down payments and credit notes to be issued	0.4	0.1	-	-	0.5
CONTRACT LIABILITIES	69.4	(13.4)	-	-	56.0
Construction and off-plan sale contracts	122.7	11.0	-	-	133.7
CONTRACT ASSETS – NET VALUE	122.7	11.0	-	-	133.7
Accounts receivable – operating leases	51.0	23.9	-	(26.6)	48.3
Financial accounts receivable – finance leases	72.0	(1.1)	-	-	70.9
Accounts receivable from ordinary activities	73.7	8.1	-	-	81.8
Accounts receivable – Gross value	196.7	31.0	-	(26.6)	201.0
Impairment of receivables from leases	(19.0)	(0.0)	(1.3)	2.7	(17.6)
Impairment of receivables from ordinary activities	(4.2)	-	0.3	-	(3.9)
Accounts receivable – Impairment	(23.2)	(0.0)	(1.0)	2.7	(21.5)
ACCOUNTS RECEIVABLE – NET VALUE	173.5	31.0	(1.0)	(23.9)	179.5

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

Note 9. Other non-current assets

9.1. Goodwill

	06/30/2023			12/31/2022
(in millions of euros)	Commercial Property Investment	Property Development (a)	Total	Commercial Property Investment	Property Development (a)	Total
GOODWILL	2.9	35.4	38.3	2.9	52.0	54.9

(a) Relates to the Residential Property Development business. As June 30, 2023, an impairment loss was recognised following an impairment test.

The recoverable amount of the Residential Property Development CGU is its fair value as of June 30, 2023 as determined by an independent valuer based on a new business plan as of June 30, 2023 and an 11.0% discount rate (unchanged compared to December 31, 2022).

9.2. Change in equity-accounted investments

In the consolidated statement of financial position, the change in "Equity-accounted investments" between December 31, 2022 and June 30, 2023 broke down as follows:

	06/30/2023
(in millions of euros)	Joint ventures	Associates	Total equity accounted companies	Joint ventures	Associates	Total equity accounted companies
OPENING SHARE IN NET ASSETS	126.4	1.9	128.3	131.0	1.7	132.7
Share of profit/(loss)	1.3	0.4	1.7	13.5	0.4	14.0
Dividends paid	1.8	(1.6)	0.2	3.9	(0.2)	3.7
Impact of changes in scope of consolidation and capital	(11.3)	-	(11.3)	(22.2)	0.0	(22.2)
CLOSING SHARE IN NET ASSETS	118.3	0.7	119.0	126.4	1.9	128.3

9.3. Information on joint ventures and associates

Key information on the income statement of joint ventures is presented below (on a proportionate consolidation basis for the relevant companies). Associates are immaterial to the Group.

		06/30/2023 06/30/2022				12/31/2022
	Commercial			Commercial			Commercial
	Property	Property		Property	Property		Property	Property
(in millions of euros)	Investment	Development	Total	Investment	Development	Total	Investment	Development	Total
Revenue	4.3	76.1	80.3	4.1	72.1	76.2	7.8	179.6	187.4
EBITDA	1.1	7.9	9.0	1.4	7.5	9.0	2.7	22.9	25.5
Operating profit/(loss)	(3.0)	8.1	5.2	3.8	7.5	11.3	(4.8)	22.8	18.0
Finance income/(expense)	(0.4)	(2.9)	(3.3)	(0.1)	(0.4)	(0.5)	(0.4)	(1.9)	(2.3)
Income tax	0.0	(0.5)	(0.5)	-	(0.3)	(0.3)	-	(2.1)	(2.1)
NET PROFIT/(LOSS)	(3.3)	4.6	1.3	3.7	6.7	10.5	(5.2)	18.7	13.5
including depreciation net of government grants	(0.1)	-	(0.1)	(0.1)	(0.1)	(0.2)	(0.2)	(0.1)	(0.3)

Note 10. Income tax

10.1. Tax expense

The tax expense is detailed in the table below:

		06/30/2022	12/31/2022
(in millions of euros)	06/30/2023	restated (a)	restated (a)
Tax expense	(0.6)	(2.6)	(19.3)
Company value-added contribution (CVAE)	(0.5)	(1.5)	(3.0)
TAX EXPENSE RECOGNISED IN THE INCOME STATEMENT	(1.2)	(4.1)	(22.3)

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

The tax expense, mainly resulting from net profit from Property Development, decreased from €4.1 million as of June 30, 2022 to €1.2 million as of June 30, 2023.

Note 11. Provisions and contingent liabilities

11.1. Provisions

Risk exposure and hedging strategy

Provisions as of June 30, 2023 were adequate to cover all identified risks regardless of their nature, particularly operational and financial risks.

(in millions of euros)	12/31/2022	Charges	Use	Reversals	Changes in scope of consoli dation	Actuarial gains and losses	Reclassifi cation to discontinued operations (a)	06/30/2023
Employee benefit liabilities (b)	18.3	0.3	31.8	-	(32.7)	(0.7)	(0.8)	16.1
Provisions for tax risks
Other provisions	63.7	5.0	102.1	(8.1)	(108.8)	-	(0.0)	53.9
PROVISIONS FOR LIABILITIES AND CHARGES	82.1	5.3	133.9	(8.1)	(141.5)	(0.7)	(0.8)	70.0
Non-current provisions	22.2	0.3	31.5	(0.6)	(32.7)	(0.7)	(0.8)	19.0
Current provisions	59.9	5.0	102.4	(7.5)	(108.8)	-	-	51.0

(a) Reclassification of the Healthcare Property Investment business as discontinued operations in accordance with IFRS 5 (see note 3).

(b) The initial estimate of the impact of France's pension reform on the Group's financial statements was not material as of June 30, 2023. The actual impact will be determined in H2 2023 and included in the annual consolidated financial statements.

11.2. Contingent liabilities

At the end of 2020, DomusVi, the operator of 13 nursing homes owned by Icade Santé SA (whose operations were reclassified as discontinued operations from June 30, 2023), initiated proceedings against the Group before the Tribunal Judiciaire de Paris (Judicial Court of Paris) to amend some of the clauses in the commercial leases signed in July 2018.

The matter was terminated following the March 2023 ruling of the Judicial Court of Paris which ordered the dismissal of the pending proceedings with DomusVi.

Note 12. Other information

12.1. Off-balance sheet commitments

No significant off-balance sheet commitments have been identified since December 31, 2022.

12.2. Events after the reporting period

Excluding the sale of the Healthcare Property Investment Division as described in note 2.1, there have been no events occurring after June 30, 2023.

12.3. Scope of consolidation

The table below shows the list of companies included in the scope of consolidation as of June 30, 2023 and the consolidation method used ("full" for "full consolidation" or "equity" for "equity method").

Full = full consolidation Equity = equity method			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
COMMERCIAL PROPERTY INVESTMENT
ICADE SA	SA	Parent company		Full	Parent company
GIE ICADE MANAGEMENT	GIE	100.00		Full	100.00
OFFICES AND BUSINESS PARKS
BATI GAUTIER	SCI	100.00		Full	100.00
68 VICTOR HUGO	SCI	100.00		Full	100.00
MESSINE PARTICIPATIONS	SCI	100.00		Full	100.00
1 TERRASSE BELLINI	SCI	33.33	Joint venture	Equity	33.33
ICADE RUE DES MARTINETS	SCI	100.00		Full	100.00
TOUR EQHO	SAS	51.00		Full	51.00
LE TOLBIAC	SCI	100.00		Full	100.00
SAS ICADE TMM	SAS	100.00		Full	100.00
SNC LES BASSINS À FLOTS	SNC	100.00		Full	100.00
SCI LAFAYETTE	SCI	54.98		Full	54.98
SCI STRATEGE	SCI	54.98		Full	54.98
SCI FUTURE WAY	SCI	52.75		Full	52.75
SCI NEW WAY	SCI	100.00		Full	100.00
SCI ORIANZ	SCI	100.00		Full	100.00
POINTE METRO 1	SCI	100.00		Full	100.00
SCI QUINCONCES TERTIAIRE	SCI	51.00		Full	51.00
SCI QUINCONCES ACTIVITES	SCI	51.00		Full	51.00
SNC ARCADE	SNC	100.00		Full	100.00
SNC NOVADIS	SNC	100.00		Full	100.00
SCI AMPHORE	SCI	55.00
OTHER ASSETS
BASSIN NORD	SCI	50.00	Joint venture	Equity	50.00
SCI BATIMENT SUD DU CENTRE HOSP PONTOISE	SCI	100.00		Full	100.00
SCI BSM DU CHU DE NANCY	SCI	100.00		Full	100.00
SCI IMMOBILIER HOTELS	SCI	77.00		Full	77.00
SCI BASILIQUE COMMERCE	SCI	51.00	Joint venture	Equity	51.00
OTHER
ICADE 3.0	SASU	100.00		Full	100.00
CYCLE-UP	SAS	31.69	Joint venture	Equity	31.69
URBAN ODYSSEY	SAS	100.00		Full	100.00
PROPERTY DEVELOPMENT
RESIDENTIAL PROPERTY DEVELOPMENT
SCI DU CASTELET	SCI	100.00		Full	100.00
SARL B.A.T.I.R. ENTREPRISES	SARL	100.00		Full	100.00
SARL FONCIERE ESPACE ST CHARLES	SARL	86.00		Full	86.00
MONTPELLIERAINE DE RENOVATION	SARL	86.00		Full	86.00
SCI ST CHARLES PARVIS SUD	SCI	58.00		Full	58.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
MSH	SARL	100.00		Full	100.00
SARL GRP ELLUL-PARA BRUGUIERE	SARL	100.00		Full	100.00
SNC LE CLOS DU MONESTIER	SNC	100.00		Full	100.00
SCI LES ANGLES 2	SCI	75.50		Full	75.50
SNC MARINAS DEL SOL	SNC	100.00		Full	100.00
SCI LES JARDINS D'HARMONY	SCI	100.00		Full	100.00
SNC MEDITERRANEE GRAND ARC	SNC	50.00	Joint venture	Equity	50.00
SCI ROYAL PALMERAIE	SCI	100.00		Full	100.00
ICADE PROMOTION LOGEMENT	SAS	100.00		Full	100.00
CAPRI PIERRE	SARL	99.92		Full	99.92
SNC CHARLES	SNC	50.00	Joint venture	Equity	50.00
SCI TERRASSE GARONNE	SCI	49.00	Joint venture	Equity	49.00
SCI MONNAIE – GOUVERNEURS	SCI	70.00		Full	70.00
STRASBOURG R. DE LA LISIERE	SCI	33.00	Joint venture	Equity	33.00
SNC LES SYMPHONIES	SNC	66.70		Full	66.70
SNC LA POSEIDON	SNC	100.00		Full	100.00
MARSEILLE PARC	SCI	50.00	Joint venture	Equity	50.00
LE PRINTEMPS DES ROUGIERES	SARL	96.00		Full	96.00
SCI BRENIER	SCI	95.00		Full	95.00
PARC DU ROY D'ESPAGNE	SNC	50.00	Joint venture	Equity	50.00
SCI JEAN DE LA FONTAINE	SCI	50.00	Joint venture	Equity	50.00
MARSEILLE PINATEL	SNC	50.00	Joint venture	Equity	50.00
SCI LILLE LE BOIS VERT	SCI	50.00	Joint venture	Equity	50.00
SCI RUEIL CHARLES FLOQUET	SCI	50.00	Joint venture	Equity	50.00
SCI VALENCIENNES RESIDENCE DE L'HIPPODROME	SCI	75.00		Full	75.00
SCI BOULOGNE SEINE D2	SCI	17.33	Associate	Equity	17.33
BOULOGNE VILLE A2C	SCI	17.53	Associate	Equity	17.53
BOULOGNE VILLE A2D	SCI	16.94	Associate	Equity	16.94
BOULOGNE VILLE A2E	SCI	16.94	Associate	Equity	16.94
BOULOGNE VILLE A2F	SCI	16.94	Associate	Equity	16.94
BOULOGNE PARC B1	SCI	18.23	Associate	Equity	18.23
BOULOGNE 3-5 RUE DE LA FERME	SCI	13.21	Associate	Equity	13.21
BOULOGNE PARC B2	SCI	17.30	Associate	Equity	17.30
SCI LIEUSAINT RUE DE PARIS	SCI	50.00	Joint venture	Equity	50.00
BOULOGNE PARC B3A	SCI	16.94	Associate	Equity	16.94
BOULOGNE PARC B3F	SCI	16.94	Associate	Equity	16.94
SCI ROTONDE DE PUTEAUX	SCI		Dissolution		33.33
SAS AD2B	SAS	100.00		Full	100.00
SCI CHATILLON AVENUE DE PARIS	SCI	50.00	Joint venture	Equity	50.00
SCI FRANCONVILLE – 1 RUE DES MARAIS	SCI	49.90	Joint venture	Equity	49.90
ESSEY LES NANCY	SCI	75.00		Full	75.00
SCI LE CERCLE DES ARTS – Housing	SCI	37.50		Full	37.50
LES ARCHES D'ARS	SCI	75.00		Full	75.00
ZAC DE LA FILATURE	SCI	50.00	Joint venture	Equity	50.00
SCI LA SUCRERIE – Housing	SCI	37.50		Full	37.50

SCI LA JARDINERIE – Housing	SCI	37.50		Full	37.50
LES COTEAUX DE LORRY	SARL	50.00	Joint venture	Equity	50.00
SCI LE PERREUX ZAC DU CANAL	SCI	72.50		Full	72.50
SCI Boulogne Ville A3 LA	SCI	17.40	Associate	Equity	17.40
SNC Nanterre MH17	SNC	50.00	Joint venture	Equity	50.00
SNC SOISY AVENUE KELLERMAN	SNC	50.00	Joint venture	Equity	50.00
SNC ST FARGEAU HENRI IV	SNC	60.00		Full	60.00
SCI ORLEANS ST JEAN LES CEDRES	SCI	49.00	Joint venture	Equity	49.00
RUE DE LA VILLE	SNC	99.99		Full	99.99
BEAU RIVAGE	SCI	99.99		Full	99.99
RUE DU 11 NOVEMBRE	SCI	100.00		Full	100.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
RUE DU MOULIN	SCI	100.00		Full	100.00
IMPASSE DU FORT	SCI	100.00		Full	100.00
SCI AVENUE DEGUISE	SCI	100.00		Full	100.00
LE GRAND CHENE	SCI		Merger		100.00
DUGUESCLIN DEVELOPPEMENT	SAS	100.00		Full	100.00
DUGUESCLIN & ASSOCIES MONTAGNE	SAS	100.00		Full	100.00
CDP THONON	SCI	33.33	Joint venture	Equity	33.33
SCI RESID. SERVICE DU PALAIS	SCI	100.00		Full	100.00
SCI RESID. HOTEL DU PALAIS	SCI	100.00		Full	100.00
SCI LE VERMONT	SCI	40.00	Joint venture	Equity	40.00
SCI HAGUENAU RUE DU FOULON	SCI	50.00	Joint venture	Equity	50.00
SNC URBAVIA	SNC	50.00	Joint venture	Equity	50.00
SCI GERTWILLER 1	SCI	50.00		Full	50.00
SCCV LES VILLAS DU PARC	SCCV		Dissolution		100.00
SCI RUE BARBUSSE	SCI	100.00		Full	100.00
ROUBAIX RUE DE L'OUEST	SCCV	50.00	Joint venture	Equity	50.00
SCI LES TERRASSES DES COSTIERES	SCI	60.00		Full	60.00
SCI CHAMPS S/MARNE RIVE GAUCHE	SCI	50.00	Joint venture	Equity	50.00
SCI BOULOGNE SEINE D3 PP	SCI	33.33	Associate	Equity	33.33
SCI BOULOGNE SEINE D3 D1	SCI	16.94	Associate	Equity	16.94
SCI BOULOGNE SEINE D3 E	SCI	16.94	Associate	Equity	16.94
SCI BOULOGNE SEINE D3 DEF COMMERCES	SCI	27.82	Associate	Equity	27.82
SCI BOULOGNE SEINE D3 ABC COMMERCES	SCI	27.82	Associate	Equity	27.82
SCI BOULOGNE SEINE D3 F	SCI	16.94	Associate	Equity	16.94
SCI BOULOGNE SEINE D3 C1	SCI	16.94	Associate	Equity	16.94
SCCV SAINTE MARGUERITE	SCCV	50.00	Joint venture	Equity	50.00
SNC ROBINI	SNC	50.00	Joint venture	Equity	50.00
SCCV LES PATIOS D'OR – GRENOBLE	SCCV	80.00		Full	80.00
SCI DES AUBEPINES	SCI	60.00		Full	60.00
SCI LES BELLES DAMES	SCI	66.70		Full	66.70
SCI PLESSIS LEON BLUM	SCI	80.00		Full	80.00
SCCV RICHET	SCCV	100.00		Full	100.00
SCI BOULOGNE PARC B4B	SCI	20.00	Associate	Equity	20.00
SCI ID	SCI	53.00		Full	53.00
SNC PARIS MACDONALD PROMOTION	SNC	100.00		Full	100.00
COEUR DE VILLE	SARL	70.00		Full	70.00
SCI CLAUSE MESNIL	SCCV	50.00	Joint venture	Equity	50.00
ROUEN VIP	SCCV	100.00		Full	100.00
OVALIE 14	SCCV	80.00		Full	80.00
SCCV VILLA ALBERA	SCCV	50.00	Joint venture	Equity	50.00
SCI ARKADEA LA ROCHELLE	SCI	100.00		Full	100.00
SCCV FLEURY MEROGIS LOT1.1	SCCV	70.00		Full	70.00
SCCV FLEURY MEROGIS LOT1.2	SCCV	70.00		Full	70.00
SCCV FLEURY MEROGIS LOT3	SCCV	100.00		Full	100.00
SCI L'ENTREPÔT MALRAUX	SCI	65.00		Full	65.00
SCCV CERGY – LES PATIOS D'OR	SCCV	80.00		Full	80.00

MULHOUSE LES PATIOS D'OR	SCCV	40.00	Joint venture	Equity	40.00
SCCV CLERMONT-FERRAND LA MONTAGNE	SCCV	90.00		Full	90.00
SCCV NICE GARE SUD	SCCV	50.00	Joint venture	Equity	50.00
SEP COLOMBES MARINE	SEP	25.00	Joint venture	Equity	25.00
SCI CLAYE SOUILLY – L'OREE DU BOIS	SCI	80.00		Full	80.00
SCI BONDOUFLE – LES PORTES DE BONDOUFLE	SCI	80.00		Full	80.00
SCCV ECOPARK	SCCV	90.00		Full	90.00
SCI FI BAGNOLET	SCI	90.00		Full	90.00
SCI ARKADEA TOULOUSE LARDENNE	SCI	100.00		Full	100.00
SCCV 25 BLD ARMEE DES ALPES	SCCV	50.00	Joint venture	Equity	50.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures /	Method of	% ownership
			Associates	consolidation
SCCV HORIZON PROVENCE	SCCV	58.00		Full	58.00
SCI ARKADEA LYON CROIX ROUSSE	SCI	70.00	Joint venture	Equity	70.00
SCCV SETE – QUAI DE BOSC	SCCV	90.00		Full	90.00
SCCV RIVES DE SEINE – BOULOGNE YC2	SCCV	80.00		Full	80.00
SCI BLACK SWANS	SCI	85.00		Full	85.00
SCCV CANAL STREET	SCCV	100.00		Full	100.00
SCCV BLACK SWANS TOUR B	SCCV	85.00		Full	85.00
SCCV ORCHIDEES	SCCV	51.00		Full	51.00
SCCV MEDICADE	SCCV	80.00		Full	80.00
SCI PERPIGNAN LESAGE	SCI	50.00	Joint venture	Equity	50.00
SNC TRIGONES NIMES	SCI	49.00	Joint venture	Equity	49.00
SCCV BAILLY CENTRE VILLE	SCCV	50.00	Joint venture	Equity	50.00
SCCV MONTLHERY LA CHAPELLE	SCCV	100.00		Full	100.00
SCI ARKADEA MARSEILLE SAINT VICTOR	SCI	51.00	Joint venture	Equity	51.00
SCCV SAINT FARGEAU 23 FONTAINEBLEAU	SCCV	70.00		Full	70.00
SCCV CARENA	SCCV	51.00		Full	51.00
SCCV BLACK SWANS TOUR C	SCCV	85.00		Full	85.00
SCI CAEN LES ROBES D'AIRAIN	SCI	60.00		Full	60.00
SCI CAPITAINE BASTIEN	SCI	80.00		Full	80.00
SCCV THERESIANUM CARMELITES	SCCV		Dissolution		65.00
SCI PERPIGNAN CONSERVATOIRE	SCI	50.00	Joint venture	Equity	50.00
SCI LILLE WAZEMMES	SCI	50.00	Joint venture	Equity	50.00
SCCV ANTONY	SCCV	100.00		Full	100.00
SCCV SAINT FARGEAU LEROY BEAUFILS	SCCV	65.00		Full	65.00
SCI ST ANDRE LEZ LILLE – LES JARDINS DE TASSIGNY	SCI	50.00	Joint venture	Equity	50.00
SCCV CARIVRY	SCCV	51.00		Full	51.00
SCCV L'ETOILE HOCHE	SCCV	60.00		Full	60.00
SCCV LES PINS D'ISABELLA	SCCV	49.90	Joint venture	Equity	49.90
SCCV LES COTEAUX LORENTINS	SCCV	100.00		Full	100.00
SCCV ROSNY 38-40 JEAN JAURES	SCCV	100.00		Full	100.00
SCCV CARETTO	SCCV	51.00		Full	51.00
SCCV MASSY CHATEAU	SCCV	50.00		Full	50.00
SCCV MASSY PARC	SCCV	50.00	Associate	Equity	50.00
SCCV NEUILLY S/MARNE QMB 10B	SCCV	44.45		Full	44.45
SCCV VITA NOVA	SCCV	70.00		Full	70.00
SCCV NEUILLY S/MARNE QMB 1A	SCCV	44.45	Associate	Equity	44.45
SCCV LE RAINCY RSS	SCCV	50.00	Joint venture	Equity	50.00
SCCV LE MESNIL SAINT DENIS SULLY	SCCV	100.00		Full	90.00
SCCV 1-3 RUE D'HOZIER	SCCV	45.00	Joint venture	Equity	45.00
SCCV CUGNAUX – LEO LAGRANGE	SCCV	50.00	Joint venture	Equity	50.00
SCCV COLOMBES MARINE LOT A	SCCV	25.00	Joint venture	Equity	25.00
SCCV COLOMBES MARINE LOT B	SCCV	25.00	Joint venture	Equity	25.00
SCCV COLOMBES MARINE LOT D	SCCV	25.00	Joint venture	Equity	25.00
SCCV COLOMBES MARINE LOT H	SCCV	25.00	Joint venture	Equity	25.00
SCCV LES BERGES DE FLACOURT	SCCV	65.00		Full	65.00
SCCV LE PLESSIS-ROBINSON ANCIENNE POSTE	SCCV	75.00		Full	75.00
SCCV QUAI 56	SCCV	50.00	Joint venture	Equity	50.00
SCCV LE PIAZZA	SCCV	70.00		Full	70.00
SCCV ICAGIR RSS TOURS	SCCV	50.00	Joint venture	Equity	50.00
SSCV ASNIERES PARC B8 B9	SCCV	50.00	Joint venture	Equity	50.00
SSCV SAINT FARGEAU 82-84 Avenue de Fontainebleau	SCCV	70.00		Full	70.00
SAS PARIS 15 VAUGIRARD LOT A	SAS	50.00	Joint venture	Equity	50.00
SCCV PARIS 15 VAUGIRARD LOT C	SCCV	50.00	Joint venture	Equity	50.00
SCCV SARCELLES – RUE DU 8 MAI 1945	SCCV	100.00		Full	100.00
SCCV SARCELLES – RUE DE MONTFLEURY	SCCV	100.00		Full	100.00
SCCV MASSY PARC 2	SCCV	50.00	Associate	Equity	50.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures /	Method of	% ownership
			Associates	consolidation
SCCV CANTEROUX	SCCV	50.00		Full	50.00
SCCV SOHO	SCCV	51.00		Full	51.00
SCCV IPK NIMES CRESPON	SCCV	51.00		Full	51.00
SCCV BEARN	SCCV	65.00		Full	65.00
SCCV ASNIERES PARC B2	SCCV	50.00	Joint venture	Equity	50.00
SCCV PERPIGNAN AVENUE D'ARGELES	SCCV	50.00	Joint venture	Equity	50.00
SCCV 117 AVENUE DE STRASBOURG	SCCV	70.00		Full	70.00
SCCV MARCEL PAUL VILLEJUIF	SCCV	60.00		Full	60.00
SCCV MAISON FOCH	SCCV	40.00		Full	40.00
SCCV CHATENAY MALABRY LA VALLEE	SCCV	100.00		Full	100.00
SCCV LOT 2G2 IVRY CONFLUENCES	SCCV	51.00		Full	51.00
SCCV LA PEPINIERE	SCCV	100.00		Full	100.00
SCCV NICE CARRE VAUBAN	SCCV	95.00		Full	95.00
SNC IP1R	SNC	100.00		Full	100.00
SNC IP3M LOGT	SNC	100.00		Full	100.00
SCCV NGICADE MONTPELLIER OVALIE	SCCV	50.00		Full	50.00
SCCV LILLE CARNOT LOGT	SCCV	50.00	Joint venture	Equity	50.00
SCCV NORMANDIE LA REUNION	SCCV	65.00		Full	65.00
SAS AILN DEVELOPPEMENT	SAS	25.00	Joint venture	Equity	25.00
SCCV URBAT ICADE PERPIGNAN	SCCV	50.00	Joint venture	Equity	50.00
SCCV DES YOLES NDDM	SCCV	75.00		Full	75.00
SCCV AVIATEUR LE BRIX	SCCV	50.00	Joint venture	Equity	50.00
SARVILEP	SAS	100.00		Full	100.00
SCCV POMME CANNELLE	SCCV	60.00		Full	60.00
SCCV RS MAURETTES	SCCV	50.00	Joint venture	Equity	50.00
SCCV BRON LA CLAIRIERE G3	SCCV	51.00	Joint venture	Equity	51.00
SCCV BRON LA CLAIRIERE C1C2	SCCV	51.00	Joint venture	Equity	51.00
SCCV BRON LA CLAIRIERE C3C4	SCCV	49.00	Joint venture	Equity	49.00
SCCV BRON LA CLAIRIERE D1D2	SCCV	49.00	Joint venture	Equity	49.00
SCCV LES RIVES DU PETIT CHER LOT 2	SCCV	60.00	Joint venture	Equity	60.00
SCCV ARGENTEUIL LES BUCHETTES	SCCV		Dissolution		100.00
SCCV LES RIVES DU PETIT CHER LOT 4	SCCV	60.00	Joint venture	Equity	60.00
SCCV LES RIVES DU PETIT CHER LOT 5B	SCCV	60.00	Joint venture	Equity	60.00
SCCV URBAN IVRY 94	SCCV	100.00		Full	100.00
SCCV YNOV CAMBACERES	SCCV	51.00		Full	51.00
SCCV DES RIVES DU PETIT CHER LOT 5	SCCV	60.00	Joint venture	Equity	60.00
SCCV DES RIVES DU PETIT CHER LOT 6	SCCV	60.00	Joint venture	Equity	60.00
SCCV MONTPELLIER SW	SCCV	70.00		Full	70.00
SCCV LES JARDINS DE CALIX IPS	SCCV	80.00		Full	80.00
SCCV BOUL DEVELOPPEMENT	SCCV	65.00		Full	65.00
SCCV BILL DEVELOPPEMENT	SCCV	65.00		Full	65.00
SCCV PATIOS VERGERS	SCCV	70.00		Full	70.00
SCCV LILLE PREVOYANCE	SCCV	50.00	Joint venture	Equity	50.00
SCCV BOUSSY SAINT ANTOINE ROCHOPT	SCCV	50.00	Joint venture	Equity	50.00
SCCV IXORA	SCCV	80.00		Full	80.00
SCCV CAP ALIZE	SCCV	80.00		Full	80.00
SCCV HOUILLES JEAN-JACQUES ROUSSEAU	SCCV	50.00	Joint venture	Equity	50.00
SCCV IPSPF CHR1	SCCV	40.00	Joint venture	Equity	40.00
SCCV LORIENT GUESDE	SCCV	80.00		Full	80.00
SCCV BOHRIE D2	SCCV	70.00		Full	70.00
SAS AD VITAM	SAS	100.00		Full	100.00
SCCV MARCEL GROSMENIL VILLEJUIF	SCCV	60.00		Full	60.00
SNC SEINE CONFLUENCES	SNC	50.00	Joint venture	Equity	50.00
SCCV CHATENAY LAVALLEE LOT I	SCCV	50.10		Full	50.10
SCCV QUINCONCES	SCCV	33.33	Joint venture	Equity	33.33
SARL BEATRICE MORTIER IMMOBILIER – BMI	SARL	100.00		Full	100.00

		06/30/2023			12/31/2022
Company name	Legal form	% ownership	Joint ventures /	Method of	% ownership
			Associates	consolidation
SCCV CARTAGENA	SCCV	95.00		Full	95.00
SCCV LES HAUTS DE LA VALSIERE	SCCV	100.00		Full	50.00
SCCV LE SERANNE	SCCV	50.00	Joint venture	Equity	50.00
SCCV VIADORA	SCCV	30.00	Associate	Equity	30.00
SNC URBAIN DES BOIS	SNC	100.00		Full	100.00
SCCV NANTERRE HENRI BARBUSSE	SCCV	66.67		Full	66.67
SCCV LES PALOMBES	SCCV	50.00	Joint venture	Equity	50.00
SCCV 3 – B1D1 LOGEMENT	SCCV	25.00	Joint venture	Equity	25.00
SCCV 7 – B2A TOUR DE SEINE	SCCV	25.00	Joint venture	Equity	25.00
SCCV 8 – B2A PARTICIPATIF	SCCV	25.00	Joint venture	Equity	25.00
SAS 9 – B2A CITE TECHNIQUE	SAS	25.00	Joint venture	Equity	25.00
SCCV TREVOUX ORFEVRES	SCCV	65.00		Full	65.00
SAS SURESNES LIBERTE	SAS	70.00		Full	70.00
SAS CLICHY 33 MEDERIC	SAS	45.00		Full	45.00
SAS L'OREE	SAS	50.00	Joint venture	Equity	50.00
SCCV CERDAN	SCCV	50.00	Joint venture	Equity	50.00
SCCV DES RIVES DU PETIT CHER LOT 7	SCCV	45.00	Joint venture	Equity	45.00
SAS BREST COURBET	SCCV	50.00	Joint venture	Equity	50.00
SCCV MITTELVEG	SCCV	70.00		Full	70.00
SCCV LES RIVES DU PETIT CHER LOT 8	SCCV	45.00	Joint venture	Equity	45.00
SCCV TERRASSES ENSOLEILLEES	SCCV	50.00	Joint venture	Equity	50.00
SCCV ISSY ESTIENNE D'ORVES	SCCV	75.00		Full	75.00
SCCV CARAIX	SCCV	51.00		Full	51.00
SAS TOULOUSE RUE ACHILE VIADEU	SAS	55.72		Full	55.72
SCCV ARC EN CIEL	SCCV	51.00		Full	51.00
SCCV OUEST VELLEDA	SCCV	75.00		Full	75.00
SNC LE BOIS URBAIN	SNC	100.00		Full	100.00
SCCV DOMAINE DE LA CROIX	SCCV	80.00		Full	80.00
SCCV ILE NAPOLEON	SCCV	70.00		Full	70.00
SAS RB GROUP	SAS	65.29		Full	65.29
SARL M&A IMMOBILIER	SARL	65.29		Full	65.29
SCCV LE FORUM-LATTES	SCCV	32.65		Full	32.65
SCCV BLEU PLATINE -SETE	SCCV	45.70		Full	45.70
SCCV LADY MARY-MONT SAINT CLAIR SARL KALITHYS	SCCV SARL	45.70 65.29		Full Full	45.70 65.29
SCCV LADY SAINT CLAIR – SETE	SCCV	65.29		Full	65.29
SCCV BASSA NOVA – PERPIGNAN	SCCV	52.23		Full	52.23
SCCV VILLA HERMES – MANDELIEU	SCCV	65.29		Full	65.29
SCCV HERMES 56 – MONTPELLIER	SCCV	65.29		Full	65.29
SCCV L'OASIS – CASTELNAU	SCCV	65.29		Full	65.29
SCCV VERT AZUR – GRABELS	SCCV	65.29		Full	65.29
SCCV VILLA BLANCHE LUNEL	SCCV	65.29		Full	65.29
SCCV LE PARC RIMBAUD	SCCV	65.29		Full	65.29
SCCV SILVER GARDEN	SCCV	65.29		Full	65.29
SCCV SETE PREMIERE LIGNE	SCCV	65.29		Full	65.29
SCCV LE 9 – MONTPELLIER	SCCV	33.30		Full	33.30
SCCV EUROPE – CASTELNAU	SCCV	32.65	Joint venture	Equity	32.65
SAS RB PARTICIPATIONS	SAS	65.29		Full	65.29
SNC M&A PROMOTION	SNC	65.29		Full	65.29
SCCV LES BAINS – JUVIGNAC	SCCV	65.29		Full	65.29
SCCV LES PINS BLEUS – GRABELS	SCCV	52.23		Full	52.23
SCCV VILLAGE CLEMENCEAU MONTPELLIER	SCCV	52.23		Full	52.23
SCCV 68 AMPERE	SCCV	80.00		Full	80.00
SCCV IPSPF-CHR2	SCCV	40.00	Joint venture	Equity	40.00
SCCV LUNEL FOURQUES	SCCV	51.00		Full	51.00
SCCV VILLENEUVE D'ASCQ – AVENUE DU BOIS	SCCV	50.00	Joint venture	Equity	50.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures /	Method of	% ownership
			Associates	consolidation
SCCV ECHO LES MENUIRES	SCCV	60.00	Joint venture	Equity	60.00
SCCV ACANTHE	SCCV	51.00	Joint venture	Equity	51.00
SAS COLOMBES AURIOL	SAS	51.00	Joint venture	Equity	51.00
SCCV ZAC REPUBLIQUE	SCCV	51.00		Full	51.00
SCCV MEDOC 423	SCCV	49.90	Joint venture	Equity	49.90
SCI ARKADEA LYON GIRONDINS	SCI	100.00		Full	100.00
SCCV BRON CLAIRIERE F1	SCCV	51.00	Joint venture	Equity	51.00
SCCV VILLA LAURES – MONTPELLIER	SCCV	43.55		Full	43.55
SCCV COEUR CARNOLES	SCCV	50.00	Joint venture	Equity	50.00
SCCV ARRAS MICHELET	SCCV	50.00	Joint venture	Equity	50.00
SCCV BRON CLAIRIERE G4	SCCV	49.00	Joint venture	Equity	49.00
SCCV STEEN ST MALO LA FONTAINE	SCCV	33.33	Joint venture	Equity	33.33
SAS STEEN LIBOURNE	SAS	33.33	Joint venture	Equity	33.33
SCCV STEEN DIJON	SCCV	33.33	Joint venture	Equity	33.33
SCCV STEEN PARIS 9 PETRELLE	SCCV	33.33	Joint venture	Equity	33.33
SCCV STEEN ROANNE FOLLEREAU	SCCV	33.33	Joint venture	Equity	33.33
SCCV PHARE D'ISSY	SCCV	75.00		Full	75.00
SEP PEACEFUL	SEP	29.38	Joint venture	Equity	29.38
SCCV 63 DUPONT DES LOGES	SCCV	100.00		Full
SAS BF3 SAINT RAPHAEL	SAS	20.00		Equity	20.00
SCCV ARCHEVECHE	SCCV	40.00	Joint venture	Equity	40.00
SAS NEUILLY VICTOR HUGO	SAS	54.00		Full	54.00
SNC VILLEURBANNE TONKIN	SNC	55.72		Full	55.72
SCCV MONTIGNY LOTS 1C 5A 5B	SCCV	70.00		Full
SCCV ILOT DES PLATANES – LATTES	SCCV	29.38	Joint venture	Equity
SCCV STEEN CHATEAURENARD DENIS PAULEAU	SCCV	33.33	Joint venture	Equity
SCCV STEEN DOUAI BOULEVARD VAUBAN	SCCV	33.33	Joint venture	Equity
SCCV STEEN LE CHESNAY	SCCV	33.33	Joint venture	Equity
SNC M&A CE	SNC	65.29		Full
SCCV BREST REPUBLIQUE DEVELOPPEMENT	SCCV	50.00	Joint venture	Equity
SCCV CASTELNAU DAHLIAS	SCCV	90.00		Full
SCCV SAINT VALERY CAVEE LEVEQUE	SCCV	50.00	Joint venture	Equity
SCCV SEVRAN ROUGEMONT	SCCV	70.00		Full
SCCV STEEN ST GILLES RAIMONDEAU	SCCV	33.33	Joint venture	Equity
SCCV STEEN GAILLON SUR MONTCIENT	SCCV	33.33	Joint venture	Equity
SCCV LILURA DE L'ADOUR SCCV ZOKO ST ESPRIT	SCCV SCCV	51.00 51.00	Joint venture Joint venture	Equity Equity
SCCV AME ECHO	SCCV	60.00		Full
SCCV PARIS 12 MESSAGERIES L3 L4	SCCV	100.00		Full

COMMERCIAL PROPERTY DEVELOPMENT
SNC ICADE PROMOTION TERTIAIRE PORTES DE CLICHY	SNC SCI	100.00 50.00	Joint venture	Full Equity	100.00 50.00
SCCV SAINT DENIS LANDY 3	SCCV	50.00	Joint venture	Equity	50.00
SNC GERLAND 1	SNC	50.00	Joint venture	Equity	50.00
SNC GERLAND 2	SNC	50.00	Joint venture	Equity	50.00
CITE SANITAIRE NAZARIENNE	SNC	60.00		Full	60.00
ICAPROM	SNC	45.00	Joint venture	Equity	45.00
SCCV LE PERREUX CANAL	SCCV	100.00		Full	100.00

ARKADEA SAS CHRYSALIS DEVELOPPEMENT	SAS SAS	100.00 35.00	Joint venture	Full Equity	100.00 35.00
MACDONALD BUREAUX	SCCV	50.00	Joint venture	Equity	50.00
SCI 15 AVENUE DU CENTRE	SCI	50.00	Joint venture	Equity	50.00
SAS CORNE OUEST VALORISATION	SAS	25.00	Associate	Equity	25.00
SAS ICADE-FF-SANTE	SAS	65.00		Full	65.00
SCI BOURBON CORNEILLE	SCI	100.00		Full	100.00
SCI ARKADEA FORT DE France	SCI	51.00		Full	51.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
SCCV SKY 56	SCCV	50.00	Joint venture	Equity	50.00
SCCV OCEAN COMMERCES	SCCV	100.00		Full	100.00
SCCV SILOPARK	SCCV	50.00	Joint venture	Equity	50.00
SCCV TECHNOFFICE	SCCV	50.00	Joint venture	Equity	50.00
SARL LE LEVANT DU JARDIN	SARL	50.67		Full	50.67
SCI ARKADEA RENNES TRIGONE	SCI	51.00	Joint venture	Equity	51.00
SCI ARKADEA LYON CREPET	SCI	65.00	Joint venture	Equity	65.00
SCCV LE SIGNAL/LES AUXONS	SCCV	51.00		Full	51.00
SCCV LA VALBARELLE	SCCV	49.90	Joint venture	Equity	49.90
SAS IMMOBILIER DEVELOPPEMENT	SAS	100.00		Full	100.00
SCCV HOTELS A1-A2	SCCV	50.00	Joint venture	Equity	50.00
SCCV BUREAUX B-C	SCCV	50.00	Joint venture	Equity	50.00
SCCV MIXTE D-E	SCCV	50.00	Joint venture	Equity	50.00
SCCV CASABONA	SCCV	51.00		Full	51.00
SCCV GASTON ROUSSEL ROMAINVILLE	SCCV	75.00		Full	75.00
SNC IP2T	SNC	100.00		Full	100.00
SCCV TOURNEFEUILLE LE PIRAC	SCCV	90.00		Full	90.00
SCCV LES RIVES DU PETIT CHER LOT 0	SCCV	60.00	Joint venture	Equity	60.00
SCCV LES RIVES DU PETIT CHER LOT 3	SCCV	60.00	Joint venture	Equity	60.00
SCCV DES RIVES DU PETIT CHER LOT 1	SCCV	60.00	Joint venture	Equity	60.00

SAS NEWTON 61	SAS	40.00	Joint venture	Equity	40.00
SCCV BRON LES TERRASSES L1 L2 L3 N3	SCCV	50.00	Joint venture	Equity	50.00
SAS LA BAUME	SAS	40.00	Joint venture	Equity	40.00
SCCV PIOM 1	SCCV	100.00		Full	100.00
SCCV PIOM 2	SCCV	100.00		Full	100.00
SCCV PIOM 3	SCCV	100.00		Full	100.00
SCCV PIOM 4	SCCV	100.00		Full	100.00
SAS PIOM 5	SAS	100.00		Full	100.00
SCCV COLADVIVI	SCCV	40.00	Associate	Equity	40.00
SCCV PIOM 6	SCCV	100.00		Full	100.00
SCCV 1 – B1C1 BUREAUX	SCCV	25.00	Joint venture	Equity	25.00
SCCV 2 – B1D1 BUREAUX	SCCV	25.00	Joint venture	Equity	25.00
SCCV 4 – COMMERCES	SCCV	25.00	Joint venture	Equity	25.00
SCCV 5 – B1C1 HOTEL	SCCV	25.00	Joint venture	Equity	25.00
SCCV 6 – B1C3 COWORKING	SCCV	25.00	Joint venture	Equity	25.00
SCCV PIOM 7	SCCV	100.00		Full	100.00
SCCV PIOM 8	SCCV	100.00		Full	100.00
SCCV PALUDATE GUYART	SCCV	50.00	Joint venture	Equity	50.00
SCCV BRON LES TERRASSES A1 A2 A3 A4	SCCV	50.00	Joint venture	Equity	50.00
SAS 10 COMMERCES B1A4 AND B1B1B3	SAS	25.00	Joint venture	Equity	25.00
SCCV BRON CLAIRIERE B	SCCV	50.00	Joint venture	Equity	50.00
SCCV ECOLE DE LA REPUBLIQUE	SCCV	50.00	Joint venture	Equity	50.00
OTHER PROPERTY DEVELOPMENT
SARL DOMAINE DE LA GRANGE	SARL	51.00		Full	51.00
RUE CHATEAUBRIAND	SCI	100.00		Full	100.00
SNC DU PLESSIS BOTANIQUE	SNC	100.00		Full	100.00
SARL LAS CLOSES	SARL	50.00	Joint venture	Equity	50.00
SNC DU CANAL ST LOUIS	SNC	100.00		Full	100.00
SNC MASSY VILGENIS	SNC	50.00		Full	50.00
SAS LE CLOS DES ARCADES	SAS	50.00	Joint venture	Equity	50.00
SAS OCEAN AMENAGEMENT	SAS	49.00	Joint venture	Equity	49.00
SNC VERSAILLES PION	SNC	100.00		Full	100.00
SAS GAMBETTA SAINT ANDRE	SAS	50.00	Joint venture	Equity	50.00
SAS MONT DE TERRE	SAS	40.00	Joint venture	Equity	40.00
SNC DU HAUT DE LA TRANCHEE	SNC		Dissolution		100.00
SAS ODESSA DEVELOPPEMENT	SAS	51.00	Joint venture	Equity	51.00

			06/30/2023		12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
SAS WACKEN INVEST	SAS	51.00	Joint venture	Equity	51.00
SCCV DU SOLEIL	SCCV	50.00	Joint venture	Equity	50.00
SAS MEUDON TASSIGNY	SAS	40.00	Joint venture	Equity	40.00
SAS DES RIVES DU PETIT CHER	SAS	50.00	Joint venture	Equity	50.00
SNC LH FLAUBERT	SNC	100.00		Full	100.00
SAS BREST AMENAGEMENT	SAS	50.00	Joint venture	Equity	50.00
SAS ICADE PIERRE POUR TOUS	SAS	100.00		Full	100.00
SAS BONDY CANAL	SAS	51.00	Joint venture	Equity	51.00
SAS HOLDING TOULOUSE TONKIN JHF	SAS	79.60		Full	79.60
SAS JALLANS	SAS	55.72		Full	55.72
SAS CLINIQUE 3	SAS	55.72		Full	55.72
SAS STEEN REHAB	SAS	33.33	Joint venture	Equity	33.33
SCCV 86 FELIX EBOUE	SCCV	100.00		Full	100.00
SAS DE LA BERGERIE	SAS	51.00		Full	51.00
SAS REPRENDRE RACINES	SAS	51.00	Joint venture	Equity	51.00
SAS JAURES GALLIENI	SAS	55.00		Full	55.00
SCCV MARSEILLE SMCL	SCCV	15.00		Equity	15.00
SAS HOLDING CITY PARK LEVALLOIS	SAS	100.00		Full	100.00
SAS SAINT PIERRE CENTRE 2025	SAS	70.00	Joint venture	Equity
SNC LEVALLOIS CITYPARK	SNC	51.00	Joint venture	Equity
DISCONTINUED OPERATIONS
HEALTHCARE PROPERTY INVESTMENT
ICADE SANTÉ	SAS	58.30		Full	58.30
SCI TONNAY INVEST	SCI	58.30		Full	58.30
SCI PONT DU CHÂTEAU INVEST	SCI	58.30		Full	58.30
SNC SEOLANES INVEST	SNC	58.30		Full	58.30
SCI SAINT AUGUSTINVEST	SCI	58.30		Full	58.30
SCI CHAZAL INVEST	SCI	58.30		Full	58.30
SCI DIJON INVEST	SCI	58.30		Full	58.30
SCI COURCHELETTES INVEST	SCI	58.30		Full	58.30
SCI ORLÉANS INVEST	SCI	58.30		Full	58.30
SCI MARSEILLE LE ROVE INVEST	SCI	58.30		Full	58.30
SCI GRAND BATAILLER INVEST	SCI	58.30		Full	58.30
SCI SAINT CIERS INVEST	SCI	58.30		Full	58.30
SCI SAINT SAVEST	SCI	58.30		Full	58.30
SCI BONNET INVEST	SCI	58.30		Full	58.30
SCI GOULAINE INVEST	SCI	58.30		Full	58.30
NEWCO IS GI	SAS	58.30		Full
OPPCI ICADE HEALTHCARE EUROPE	SPPICAV	59.39		Full	59.39
SALUTE ITALIA – FUND	REIF	59.39		Full	59.39
SAS IHE GESUNDHEIT	SAS	63.49		Full	63.49
SAS IHE RADENSLEBEN	SAS	63.49		Full	63.49
SAS IHE NEURUPPIN	SAS	63.49		Full	63.49
SAS IHE TREUENBRIETZEN	SAS	63.49		Full	63.49
SAS IHE ERKNER	SAS	63.49		Full	63.49
SAS IHE KYRITZ	SAS	63.49		Full	63.49
SAS IHE HENNIGSDORF	SAS	63.49		Full	63.49
SAS IHE COTTBUS	SAS	63.49		Full	63.49
SAS IHE BELZIG	SAS	63.49		Full	63.49
SAS IHE FRIEDLAND	SAS	63.49		Full	63.49
SAS IHE KLAUSA	SAS	63.49		Full	63.49
SAS IHE AUENWALD	SAS	63.49		Full	63.49
SAS IHE KLT GRUNDBESITZ	SAS	63.49		Full	63.49
SAS IHE ARN GRUNDBESITZ	SAS	63.49		Full	63.49
SAS IHE BRN GRUNDBESITZ	SAS	63.49		Full	63.49
SAS IHE FLORA MARZINA	SAS	63.49		Full	63.49

		06/30/2023			12/31/2022
Company name	Legal form	% ownership	Joint ventures / Associates	Method of consolidation	% ownership
SAS IHE KOPPENBERGS HOF	SAS	63.49		Full	63.49
SAS IHE LICHTENBERG	SAS	63.49		Full	63.49
SAS IHE TGH GRUNDBESITZ	SAS	63.49		Full	63.49
SAS IHE PROMENT BESITZGESELLSCHAFT	SAS	63.49		Full	63.49
SAS IHE BREMERHAVEN	SAS	63.49		Full	63.49
SAS ORESC 7	SAS	30.29		Full	30.29
SAS ORESC 8	SAS	53.39		Full	53.39
SAS ORESC 12	SAS	30.29		Full	30.29
IHE SPAIN 1	SLU	58.30		Full	58.30
IHE GESTIONE ITALIANA	SRL	58.30		Full	58.30
IHE SALUD MANAGEMENT	SL	58.30		Full	58.30
SAS ISIHE 1	SAS	58.30		Full	58.30
FUNDO DE INVESTIMENTO IMOBILIARIO FECHADO SAUDEINVESTE	-	58.83		Full	58.83
IHE SPAIN 2	SLU	58.30		Full	58.30
IHE MANAGEMENT DEUTSCHLAND GMBH	GMBH	58.30		Full

Statutory Auditors' report on the 2023 interim financial information

PricewaterhouseCoopers Audit

63, rue de Villiers 92208 Neuilly-sur-Seine Cedex

MAZARS

61 rue Henri Regnault 92075 Paris La Défense, France

Statutory Auditors' report on the interim financial information

(For the six months ended 30 June 2023)

This is a free translation into English of the Statutory Auditors' report issued in French and is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.

ICADE SA

27 rue Camille Desmoulins 92445 Issy les Moulineaux Cedex France

To the Shareholders,

In compliance with the engagement entrusted to us by your General Meeting and in accordance with the requirements of Article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

the review of the accompanying condensed interim consolidated financial statements of Icade SA for the six months ended 30 June 2023;
the verification of the information contained in the interim management report.

These condensed interim consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I - Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements have not been prepared, in all material respects, in accordance with IAS 34 – "Interim Financial Reporting", as adopted by the European Union.

Without qualifying our opinion, we draw your attention to the matters set out in Note 3 "Discontinued operations" to the condensed interim consolidated financial statements, which sets out the consequences under IFRS 5 of Icade's sale of its healthcare business.

II - Specific verification

We have also verified the information given in the interim management report on the condensed interim consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and its consistency with the condensed interim consolidated financial statements.

Neuilly-sur-Seine and Paris La Défense, 21 July 2023

The Statutory Auditors

PricewaterhouseCoopers Audit MAZARS

Lionel Lepetit Johanna Darmon Gilles Magnan

Immeuble OPEN

27, rue Camille Desmoulins 92445 Issy-les-Moulineaux Cedex, France Tel.: +33 (0)1 41 57 70 00

www.icade.fr/en/

AI assistant

Icade — Interim / Quarterly Report 2023

1424_ir_2023-07-24_fae4de03-aa6e-4619-ab97-c2c4901f4131.pdf

FINANCIAL REPORT

DECLARATION BY THE PERSON RESPONSIBLE FOR THIS DOCUMENT

1. Key indicators

€181.1m €583.4m

DEVELOPMENT

€99.6m €13.6m

2. Share performance and shareholding structure

Share performance as of June 30, 2023

3. Solid outlook, 2023 guidance unchanged and clarified

1. Group

1.1. H1 2023 highlights and events after the reporting period

A new CEO appointed in April 2023

Completion of the sale of Icade Sant , one of the Group's priorities in 2023

Market conditions that remain challenging

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

Commercial Property Investment: an active H1 despite a slowing market

Property Development: resilient indicators amid a challenging economic and financial environment

Residential:

Commercial:

Further optimisation of our funding structure and use of green finance

CSR policy

General Meeting and governance

1.2. The Group's key indicators

KEY FIGURES AS OF JUNE 30, 2023:

1.2.1. Summary IFRS consolidated income statement

1.3. EPRA reporting

1.3.1. EPRA net asset value metrics as of June 30, 2023

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

1.3.2. EPRA earnings from Commercial Property Investment

1.3.3. EPRA LTV ratio

1.3.4. EPRA yield – Commercial Property Investment

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

1.3.5. EPRA vacancy rate – Commercial Property Investment

Breakdown of the EPRA vacancy rate by asset type

1.3.6. EPRA cost ratio – Commercial Property Investment

1.3.7. EPRA capex – Commercial Property Investment

1.4. Financial resources

1.4.1. Liquidity

As of July 5, 2023, after the first stage of the sale of the Healthcare Property Investment Division was completed, the Icade Group had a strengthened liquidity position of €3,579.2 million:

1.4.2. Debt structure as of June 30, 2023

Debt by type

Debt by maturity

MATURITY SCHEDULE OF DRAWN DEBT

BREAKDOWN OF DEBT BY MATURITY

Average cost of drawn debt

Management of interest rate risk exposure

BREAKDOWN OF DEBT BY TYPE OF RATE (EXCLUDING PAYABLES ASSOCIATED WITH EQUITY INTERESTS AND BANK OVERDRAFTS)

OUTSTANDING HEDGING POSITIONS

1.4.3. Icade's credit rating

1.4.4. Commitment to sustainable finance products

Icade, committed to promoting sustainable finance products

As of June 30, 2023, the Icade Group's sustainable debt, excluding the Healthcare Property Investment Division which was reclassified as discontinued operations, represented c. 51 of the Group's total debt.

A rigorous selection process for assets and projects

A portfolio of green assets worth over €3 billion

1.4.5. Financial structure

Financial structure ratios

1.4.5.1.1. Loan-to-value (LTV) ratio

1.4.5.1.2. Interest coverage ratio (ICR)

1.4.5.1.3. Net debt-to-EBITDA ratio

2. Commercial Property Investment Division

2.1. Market update

MARKET UPDATE

The rental market for light industrial properties in the Paris region (sources: JLL, ImmoStat)

The office rental market in major French cities outside Paris (sources: BNP Paribas Real Estate, JLL)

The French commercial real estate investment market (source: BNP Paribas Real Estate)

2.2. Commercial Property Investment portfolio

GEOGRAPHIC DISTRIBUTION OF THE PROPERTY PORTFOLIO BY ASSET TYPE

DESCRIPTION OF THE PORTFOLIO

Offices

• PERFORMANCE OF THE GROUP'S BUSINESS ACTIVITIES •

Business parks

2.3. Changes in value of the Commercial Property Investment portfolio on a proportionate consolidation basis

OFFICES

BUSINESS PARKS

Other Commercial Property Investment assets

2.4. Investments

DEVELOPMENT PROJECTS

Icade Interim / Quarterly Report 2023