Icade is an "SIIC", what does the term mean ?

"SIIC" means "Listed Real Estate Investment Company", inspired by US REITs (Real Estate Investment Trusts), which are subject to a particular tax regime. Icade adopted the SIIC status in 2007 after its IPO. This status enables Icade to be exempt from corporate tax on the results derived from its rental activity, its capital gains from sales and the dividends it receives from subsidiaries that are subject to the SIIC regime. 

In exchange, the company has an obligation to distribute to its shareholders 95% of the exempt earnings derived from rental of buildings, 60% of the exempt earnings derived from sales of buildings and 100% of the dividends paid by the subsidiaries that have opted for the SIIC regime.

Are there double voting rights?

Voting rights attached to shares are proportional to the percentage of capital they represent, and each share gives the right to one vote. There are therefore no double voting rights.

What are the conditions for taking part in the General Meeting?

Any shareholder, regardless of the number of shares held, may take part in the General Meeting.
In accordance with Article R. 225-85 of the French Commercial Code, shareholders must provide proof of ownership of their shares by midnight (Paris time) on the second business day before the General Meeting (record date):
- for registered shareholders, by the registration of their shares in the Company's records on that date
- for bearer shareholders, by the registration of their shares in their name or in the name of the intermediary registered on their behalf, no later than this date, in the securities account held by the banking or financial intermediary that manages their account. Registration of the shares in the share account must be evidenced by a certificate of participation issued by the authorised intermediary. You will find below a form for requesting a certificate of participation to be sent to the financial institution where your bearer shares are deposited. Once obtained, this certificate must be attached to the postal or proxy voting form, or to the request for an admission card, sent by the authorised intermediary to Icade's agent: SOCIETE GENERALE SECURITIES SERVICES, 32 rue du Champ de Tir - CS 30812 - 44308 NANTES cedex 3.

Can Icade shares be held in a ESP (Equity Savings Plan)?

Since 21 October 2011, taxpayers have no longer been able to include SIIC shares in their ESP (Equity Savings Plan). However, shares held in a ESP prior to the reform may be retained.

What tax treatment applies to dividends paid by Icade to individual shareholders resident in France for tax purposes?

1/ Icade shares eligible for dividends held through a ESP (shares held in a ESP before 21 October 2011). 
In this case, the dividends paid by Icade are not taxed, subject to compliance with the general rules governing ESPs.
However, SIIC shares are no longer eligible for PEAs since 21 October 2011, with the exception of shares already registered on that date, which may remain in the ESP.  
2/ Icade dividend-paying shares not held through a ESPs. 
The 2018 Finance Act reformed the system for taxing income and capital gains received by individuals by introducing a single flat-rate levy ("PFU"), also known as "flat tax".
This system applies to taxable events occurring on or after 1 January 2018.
Dividends paid by Icade fall within the scope of this new system and will be taxed in two stages.
- 1st taxation on payment: flat-rate withholding tax at source
When they are paid by Icade, dividends are subject to a 30% withholding tax, which breaks down into :
- a flat-rate withholding tax calculated at the rate of 12.8% ;
- social security contributions at the overall rate of 17.2.

However, taxpayers belonging to a tax household whose reference tax income for the penultimate year preceding the year in which the dividend is received is less than €50,000 (for a single, divorced or widowed taxpayer) or €75,000 (for a couple) may apply for exemption from the flat-rate withholding tax. The request for exemption must be made to the paying institution no later than 30 November of the year preceding that in which the payment is made. 
- Final taxation in the year following that in which they are received 
In the second stage, the dividend is subject to either :
- by default, to income tax at the flat rate of 12.8%. The flat-rate withholding tax deducted at source as an interim payment is deducted from the income tax due;

- by express and irrevocable option, at the progressive income tax rate, after deducting, where applicable :
o the 40% allowance applicable to the portion of the dividend deducted from taxable (non-SIIC) profits. Note that the portion of the dividend deducted from tax-exempt profits (SIIC) does not qualify for this allowance. 

For example, for the dividend distributed in 2019, amounting to 4.60 euros per share, the fraction deducted from taxable profits qualifying for the 40% allowance is 0.71 euros per share, while the fraction deducted from exempt profits is 3.89 euros per share;

o a fraction of the social security contributions deducted at source (6.8%).  
Finally, after application of the progressive scale to the tax base thus determined, the resulting income tax will be reduced by the flat-rate withholding tax at a rate of 12.8%.
If this deduction exceeds the amount of your income tax, the excess will be refunded. 
The tax information provided above reflects the rules applicable on 1 January 2018.

Are Icade shares covered by the Impôt sur la Fortune Immobilière ("IFI")?

Icade shares are excluded from the IFI provided that the interest held, directly or indirectly, alone or jointly, represents less than 5% of Icade's capital and voting rights.


Anne-Violette Faugeras

Head of financing and investor relations

Investor Relations