Intended for all its stakeholders, this document offers a concise overall view of the Group and its drivers of sustainable performance in a complex and volatile environment. It provides a clear and transparent account of how Icade is able to create value in the short, medium and long term for the benefit of its customers, partners, employees, local authorities and communities, and society as a whole.
Olivier Wigniolle CEO of Icade
« I am proud of everything that we have accomplished together at Icade and convinced that our Company is well equipped to face the challenges ahead with confidence and determination. »
To achieve its goals and help transform the real estate sector, Icade seeks to align the entire Company with its Purpose, constantly anticipating future challenges and opportunities, and supported by a broad ecosystem of stakeholders.
+ 9% (ANR NDV : Net Disposal Value)
Group Net Current Cash Flow
+ 12% (ANR NDV : Net Disposal Value)
As key drivers in implementing Icade’s Purpose, CSR commitments are integrated into the business model and the entire Company is now working together to achieve the objectives that have been set. Governance bodies, managers, employees and everyone at Icade are involved in making its CSR policy a source of growth and collective pride.
All of Icade’s internal stakeholders are now involved in implementing the Group’s low-carbon strategy—to align its three divisions with a 1.5°C pathway to achieve net zero emissions by 2050, in accordance with the Paris Agreement. This strategy was approved in 2022 by the SBTi (Science-Based Targets initiative), a globally recognised science-based initiative that provides companies with an opportunity to have their emission reduction targets validated. Icade’s environmental goals also received the support of the Group’s shareholders. These goals were the subject of a “Say on Climate and Biodiversity” resolution approved by over 99% of the votes at the General Meeting held in April 2022.
As proof of the Group’s efforts and desire to get the whole Company involved, Icade has decided to make 10% of the variable remuneration of Executive Committee members contingent upon meeting CSR objectives and those set for its Purpose indicators. In the same manner, the granting of 15% of the CEO’s performance shares is contingent upon achieving Icade’s low-carbon pathway.
To ensure everyone’s involvement, Icade’s CSR goals are factored into the remuneration and performance incentive policy of the Group’s managers and employees. For example, CSR commitments are now included in the management and professional development interviews of 82% of managers and 61% of employees. In addition, since 2021, the performance incentive agreement has included, in addition to financial criteria, criteria related to environmental and societal commitments in line with Icade’s objectives. When considered together with action plans defined for each of the Group’s divisions, they enable Icade employees to both contribute to and benefit from the Company’s CSR results.
Despite having experienced two major exogenous shocks in less than two years, the real estate industry continues its transformation. Due to both underlying trends and temporary phenomena, such as the energy crisis, rising interest rates, changing lifestyles and the climate emergency, city stakeholders have no choice but to reinvent themselves to continue to meet the new expectations of users.
The large and sudden jump in inflation and interest rates have both strongly impacted the real estate market in 2022. Obtaining a mortgage has become more difficult for home buyers, particularly individuals, while rising costs, especially energy costs, have put additional pressure on both tenants and landlords. Given this, access to housing and the energy performance of buildings have become of paramount importance. In addition, housing and office solutions must respond to the changes in the way we live and work that were sped up by the outbreak of Covid. As remote work and co-working have become the norm at many companies, homes and offices must adapt to this new reality.
The choices made by home buyers and tenants further reflect their need for outdoor spaces, whether private or shared. This pursuit of urban nature is due in part to an increased awareness of the climate emergency, the effects of which are now clearly visible and very tangible for many French people. Closely linked to climate change, of which it is one of the causes, the loss of biodiversity has also become a major challenge for city stakeholders. Because acting to preserve biodiversity means acting to reduce global warming and adapting the city to these changes in order for it to remain liveable, particularly by reducing heat islands.
Lastly, the ageing of the European population has led to an increased need for healthcare and support for dependent elderly people. The demand for healthcare infrastructure has never been greater, both quantitatively, to cope with demographic pressure, and qualitatively, to adapt facilities to provide specialised surgical and medical services and keep up with advances in medical practices and techniques. Healthcare solutions must now take into account quality of life, well-being as well as access and ease of access to healthcare services.
Preventing and managing risks and seizing new opportunities are an integral part of Icade’s day-to-day business and contribute to the Group’s long-term performance. This approach is tangibly reflected in the way we do business.
• Property vacancy, solutions not matching market needs
• Competitive environment and innovation
• Financial liquidity
• Increase in interest rates
• Failure to meet carbon reduction targets
• Physical impact of climate change
• Business ethics and compliance
• Quality of customer relationships
• Human resources and skills mismatch
Convinced that the city of tomorrow can only be created collectively, Icade spearheads a vast network of partners in order to promote interaction that leads to the emergence of new ideas and practices. Thanks to the many relationships built up with its external stakeholders, Icade is able to act faster and more effectively to contribute to the sustainable transformation of the industry.
On the occasion of its third edition on September 8, 2022, the day’s discussions organised by Icade and La Tribune were dedicated to the theme of inclusion. The programme included six round tables, a testimonial and a keynote address on key topics for the Group, including innovating locally with a focus on neighbourhoods, the future of housing and the importance of healthcare in cities. This was an opportunity for Icade to hear experts in these fields, including philosophers, researchers, elected officials, entrepreneurs and business leaders, express their views on the future of cities.
To continue to integrate innovation into its real estate solutions, Icade has developed partnerships with academia. In 2018, the Group co-founded the Chair in Entrepreneurship, Local Development and Innovation (ETI) with Paris-Sorbonne University, whose aim is to develop strategies and policies to deal with the changes facing city stakeholders. In partnership with HEC, Icade then created the “Corporate Initiative Icade For Better Urban Living”, with the aim of responding to today’s challenges in line with its Purpose. This initiative is based on three pillars, namely the creation of the Icade “Innovating for sustainable urban living” Academy for HEC Paris students, the Group’s support for the “Innovation for Good” certificate and its partnership with HEC Paris on the Social and Solidarity-based Economy (SSE) Accelerator for the Paris region. Through these efforts, Icade aims to anticipate societal changes as well as the housing, work and healthcare expectations of residents, three areas closely related to its core business of real estate. In 2022, Icade also forged partnerships with industrial players. For example, Icade teamed up with Schneider Electric to improve the energy management of office buildings, healthcare facilities and smart homes. In addition, Icade signed a letter of intent to partner with Saint-Gobain to develop low-carbon construction innovations, some of which have already been used in the Athletes Village.
Through its support and investment, Urban Odyssey has helped to launch 14 start-ups in just three years. These projects are a direct response to the challenges of reducing carbon, preserving biodiversity and adapting to the new market needs directly related to Icade’s business activities. For example, Urban Odyssey’s portfolio includes start-ups such as Vertuo which recycles rainwater via plant watering in the heart of the city and Terrio, whose goal is to make compressed earth blocks a key material in the buildings of tomorrow.
Icade successfully puts its Purpose into action while creating value for all its stakeholders. It does this through a robust value creation model and a strategic approach that integrates business and CSR issues and, as a result, turns low-carbon, biodiversity and inclusion into areas that we intend to further develop.
Despite particularly complex and volatile economic conditions, Icade’s three business lines performed strongly in 2022. These results confirm the relevance of our business model, the rigour of our financial management and the capacity of our business lines to adapt to their environment, all while pursuing an ambitious environmental strategy. The Group can therefore look forward with confidence to the challenges ahead.
With EPRA earnings up 5% against a backdrop of significant asset rotation (over €600 million in disposals in 2022), the Office Property Investment Division reaffirmed the strength of its fundamentals, offering solutions that reflect new tenant needs and news ways of living and working.
The Healthcare Property Investment Division continued a strong upward trend in rental income and adjusted its investment strategy to the changing financial environment. Despite the crisis and the difficulties faced by healthcare providers (inflation, energy costs), the healthcare asset class remained very attractive in 2022, demonstrating its resilience.
Despite the inflationary backdrop, the Property Development Division’s sales indicators were particularly high in 2022, with economic revenue up 17% to €1.3 billion and an improvement in profitability.
By designing cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint, Icade is reinventing real estate and helping to build cities that are healthier and more hospitable. Cities where people want to live and work.
A showcase for the city of tomorrow, sustainable, inclusive and designed from the very start with residents and local communities in mind, Block D of the Athletes Village in Saint-Ouen-sur-Seine will be converted, once the Olympics are over, into a real urban neighbourhood deeply rooted in its surrounding area.
Icade's projects mix office, residential, retail and common space uses, whether in Nanterre, Rocquebrune-Cap-Martin or in Spain with Icade Santé.