2023 Annual Integrated Report

For the sixth consecutive year, Icade is publishing an Annual Integrated Report based on the recommendations of the International Integrated Reporting Council (IIRC), the global framework for integrated reporting.

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.

We have high ambitions for the next four years, because now is not the time for half-measures. We will strenghten our position as a full-service company to further diversify our portfolio, capitalise on our CSR expertise while maintaining prudent financial management. All these measures contribute to laying a solid foundation for our vision for the city of 2050.

Nicolas Joly

CEO of Icade

ReShapE: Icade’s 2024–2028 strategic plan

With 70 years of experience, Icade is a property investor and developer, committed for over 20 years to integrating ESG best practices. The Group owns a portfolio of assets worth €6.5 billion on a proportionate consolidation basis, made up of offices (82%), light industrial properties (11%), other assets (5%) and a land bank (2%). In response to the profound changes in the way we live and work in our buildings and neighbourhoods as well as the major climate-related challenges facing society, Icade has set the following four strategic priorities to 2028.

1

Further adapting the office portfolio to changes in demand

Assets and solutions tailored to customer needs, greater selectivity of pipeline projects and conversion/disposal of specific assets.

2

Accelerating portfolio diversification in line with the growing need for mixed uses

Light industrial, student residences and data centers.

3

Building the 2050 city to be diverse, innovative and sustainable

A comprehensive approach to developing mixed-use neighbourhoods and solutions to meet the challenges of reducing carbon and preserving biodiversity

4

Maintaining a strong financial structure

Prudent debt management, balanced allocation of capital between making new investments and reducing the Group’s debt and focus on value-creating projects.

2023 Key numbers

Net Current Cash Flow
€350.6 m

(€4.62 per share)

EPRA NTA Group
€5.1 Bn

(€67.2 per share)

Portfolio value
€6.5 Bn

(on a proportionate consolidation basis)

2023 Dividend
€4.84

per share (+ 11.8 % vs. 2022)

Employees
1,067

(full-time equivalent in 2023)

Two businesses,
one goal

As a full-service real estate player, Icade intends to draw on its two core businesses, property development and property investment, to build and rebuild the city of 2050. This is evidenced by the complementary nature of its two business lines on an ever-increasing number of projects.

  • Commercial Investment Division

    Principalement implantée en Île-de-France et dans les grandes métropoles régionales, Icade propose une approche de l’immobilier tertiaire centrée sur les besoins de ses clients. Avec des réserves foncières significatives, un savoir-faire reconnu en matière de solutions immobilières innovantes et une réelle expertise des enjeux urbains et de RSE, le Groupe accompagne ses clients pour réinventer des environnements de travail flexibles, accessibles, répondant à des ambitions environnementales élevées, avec des services et abordables.

  • Property Development Division

    Avec ses 23 implantations régionales, Icade Promotion accompagne ses clients (particuliers, collectivités locales et investisseurs institutionnels) pour développer des opérations de bureaux, de logements et des grands équipements publics. Le pôle Promotion affiche des objectifs ambitieux en matière d’empreinte carbone. En lien avec la trajectoire 1,5 °C du Groupe validée par la SBTi, Icade s’est fixé pour objectif de réduire l’intensité carbone de son pôle Promotion de - 41 % entre 2019 et 2030.

Emmanuelle Baboulin Executive Committee member in charge of the Commercial Property Investment Division

Charles-Emmanuel Kühne Executive Committee member in charge of the Property Development Division

Emmanuelle Baboulin Executive Committee member in charge of the Commercial Property Investment Division

Charles-Emmanuel Kühne Executive Committee member in charge of the Property Development Division

Emmanuelle Baboulin Executive Committee member in charge of the Commercial Property Investment Division

Charles-Emmanuel Kühne Executive Committee member in charge of the Property Development Division

Emmanuelle Baboulin Executive Committee member in charge of the Commercial Property Investment Division

Charles-Emmanuel Kühne Executive Committee member in charge of the Property Development Division

Emmanuelle Baboulin Executive Committee member in charge of the Commercial Property Investment Division

Charles-Emmanuel Kühne Executive Committee member in charge of the Commercial Property Investment Division

1/10

In operational terms, how has your business adapted to the rising interest rate environment?

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2/10

In operational terms, how has your business adapted to the rising interest rate environment?

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3/10

How did you perform over the past year?

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4/10

How did you perform over the past year?

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5/10

Given the challenging economic environment, how can you reconcile performance and environmental objectives?

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6/10

Given the challenging economic environment, how can you reconcile performance and environmental objectives?

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7/10

How does Icade's model benefit your business?

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8/10

How does Icade's model benefit your business?

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9/10

What are the priorities and outlook for 2024?

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10/10

What are the priorities and outlook for 2024?

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« Rising interest rates and, above all, the lack of visibility have put us under considerable pressure, weighing on the valuation of our assets and our tenants’ balance sheets. To this must be added the profound changes in the way we work, with the rise of teleworking and a rethink by tenants of their property strategy with a view to saving on costs. Our job, therefore, was to help them think through the financial, urban development and energy performance aspects of their project. Tenants increasingly want to avoid handling things directly, hence the launch of our Icade Solutions package of services. »

« In the residential property market, we adapted by selling a portion of our housing units in bulk to institutional investors. The rise in interest rates has significantly reduced the ability of households to borrow and buy homes. This year, almost 68% of housing orders related to bulk sales, compared with 50%-55% in previous years. As for the sale of housing units to individual buyers, whether investors or owner-occupiers, we have adapted our prices in line with the market. We have also been much more selective when committing to development projects. Ultimately, adaptability, agility and responsiveness have been the keywords for our activities. »

« In terms of our leasing activity, we had a record year, up +22% on 2022, with 130 leases signed or renewed covering 243,000 sq.m, including 44with new tenants. The number of renewals shows our ability to retain tenants despite the extremely competitive environment. The introduction of Icade Solutions, which allows us to help tenants rethink their workspaces, is a way of differentiating ourselves in the market. Our Net Promoter Score, which measures our customers’ level of satisfaction, increased from +8 in 2022 to +14 in 2023. Our investment performance was also very solid, with the sale on very favourable terms of two assets in Marseille (Grand Central and Eko Active) and the completion of a turnkey building (MFactory), also in Marseille. »

« Our performance reflects the state of the market: -13% in volume terms and orders down -7% in value terms. However, based on the market trend announced by the French Federation of Real Estate Developers (FPI) and taking our competitors as a benchmark, we have significantly outperformed the market. The FPI’s figures show that orders for new homes fell by 26% compared with 2022, twice our figure. Despite this, we achieved a significant sale in the commercial property segment outside the Paris region, namely the 19,000-sq.m Osmose building. In total, we had orders for 5,256 homes, with revenue up 3%. »

« In fact, our environmental goals speak in favour of our attractiveness, since they meet our tenants’ own requirements. Our leases with climate criteria, for example, aim to improve our buildings’ energy performance in collaboration with our tenants, which also allows them to reduce their energy costs. »

« Performance and environmental objectives are, in my view, inseparable. Being economically successful doesn’t mean giving up on the environment. Neither Icade nor Icade Promotion hold this view. In fact, alongside Redman, we won a project launched by the Cities Climate Leadership Group (C40) to refurbish the Guillot-Bourdeix tower in Lyon in line with the highest environmental standards. The future Jallère district in Bordeaux-Lac will have avery positive impact on the environment, with the project putting nature at the heart of the site. Similarly, our project to build a new district in Blagnac (Haute-Garonne) also meets very high environmental standards, thanks in particular to the work of Urbain des Bois. We aim to reduce our carbon emissions by 41% by 2030. By the end of 2023, we had already reduced them by 12% »

« Icade’s ownership structure, with Caisse des Dépôts as its leading shareholder, gives it clear legitimacy, as well as an image of integrity and a solid financial standing. Our Group has a strong reputation and is recognised in the market. We owe this to the range of skills available in-house and to the synergy between our two business lines, which enable us to offer customers varied and innovative solutions »

« Strong collaboration between our business lines, namely Property Development and Property Investment, is a real asset, and forms part of ReShapE, our plan to build the city of 2050. This integrated model ensures our credibility. Setting ourselves the goal to build the city of 2050 means not only designing and managing projects, but also being owner and operator, as with the Property Investment Division. The complementary nature of the two business lines reflects trends in the real estate sector. Furthermore, having Caisse des Dépôts as our leading shareholder gives us significant credibility with local authorities and communities. »

« Our top priority is, of course, to secure tenants for our properties and sign leases offering solutions that meet tenant expectations. Another priority is to convert a certain number of buildings no longer suited to office use into hotels or student residences. Lastly, we’ll continue to diversify into light industrial premises and data centers, among others. »

« We’re in a very uncertain market environment, one that is likely to last. The priority is to be able to reinvent ourselves and transform the way we operate, while continuing to deliver our projects as effectively as possible, without giving up on the environment. The message for 2024 is to believe in ourselves and in our ability to stay the course and implement our ambitious ReShapE strategic plan, which will generate a lot of pride. »

Icade in its ecosystem: creating value for our stakeholders

  • Gilles Sallé, Président fondateur d’AMP Visual TV

    « Our in-studio filming business has been based in Aubervilliers for 20 years thanks to a long-standing relationship of trust with our partners at Icade. Among the location’s many advantages, accessibility and safety are obviously essential for us because many television programmes are filmed daily, welcoming celebrities and audiences alike. We also appreciate all the initiatives undertaken by the Group which make the site more attractive to our employees, such as soft mobility options and the urban forest. »

     

  • Raphaël Michaud, Deputy Mayor of Lyon for an Affordable, Low-Carbon and Liveable City

    « The Audessa project aims to create an active ground floor engaged with the city with open green spaces, and a second building that will bring housing and diversity to the neighbourhood. By striving to reuse buildings and restore a mix of uses in this project, Icade’s teams have shown their expertise in building a city that works for all. This type of project can inspire others to build the city of tomorrow. »

     

  • Karine Franclet, Mayor of Aubervilliers (Seine-Saint-Denis)

    « As with the “Oasis” playground project that we’re developing in schools in Aubervilliers, new green spaces should be made more accessible across the board. Public expectations are high, as can be seen from the Portes de Paris business park and its beautiful urban forest, which was inaugurated over two years ago. It was originally an office park and in the first year after the regeneration there weren’t many people around. Now locals are happy to go there: they play with their families on Sundays, do tai-chi, etc. »

  • Julien Renaud-Perret, Head of Real Estate and Investors at Pierre et Vacances Center Parcs Group

    « Here since March 2001, we’re a longtime tenant at Pont de Flandre, the only business park in Paris proper. During critical times such as the recent Covid crisis, the attentiveness shown by Icade’s teams has meant that we’ve always found solutions. In 2013, we were the first tenant of Icade to sign a green lease, and when it was renewed we signed a lease with climate criteria, which fits perfectly into the DNA of the Pierre & Vacances-Center Parcs Group. »

     

  • Guillaume Mizon, Chairman and Founder of Terre Utile

    « Created in 2021, Terre Utile produces and sells recycled topsoil made from soil excavated from building sites. By recyclingsoil that would otherwise be put into landfill, this activity also helps to preserve natural areas, restore biodiversity and reduce greenhouse gas emissions by cutting transport times. For Icade, we supplied part of the soil in the Portes de Paris business park’s urban forest in Aubervilliers. We’ve also just signed an action plan with Icade to create more synergies. We have great plans for working together! »

  • Vincent-Pierre Freudenreich, Co-founder of Terrio

    « Our business consists of manufacturing compressed earth materials for the construction industry, advising project owners from the design stage through to completion, and providing on-site sup?port for site workers. Our products respond to a triple ecological challenge: preserving raw materials, reducing carbon emissions and increasing comfort thanks to the insulating properties of earth. With the support of start-up studio Urban Odyssey, we’re working alongside Icade on the Bellecombe project in Lyon to create the rammed earth façades of two mixed-use, 8-storey buildings. »

Icade in a
changing world

Faced with the environmental, economic and social challenges of a more sustainable city, Icade is mobilizing and innovating to provide concrete answers on the ground and invent the city of 2050. Established throughout France, Icade supports the development of companies, local authorities and major cities. Its commitment creates value in local areas and contributes to their reindustrialization. Working every day for a mixed and inclusive city, Icade develops specific products, programs with a strong social component and innovative schemes such as the real solidarity lease. Its aim is to offer housing for all and create social ties through mixed-use spaces. Icade takes action:

  • For an inclusive city

    The city of 2050 must be designed and built for everyone. With this in mind Icade has made inclusion an essential part of its approach. With the aim of creating a diverse and inclusive city, the Group is developing alternative assets (serviced residences, medical-social facilities, shared housing facilities, etc.), projects that meet demand for social housing, and innovative solutions, such as land leases that promote affordable home ownership (BRS). These initiatives are in line with Icade’s policy to promote inclusion, with affordable housing already making up 50% of its residential properties.

  • Promoting local development

    Icade supports companies, local authorities and major cities throughout Metropolitan and Overseas France. The Group has positioned itself as a player committed to local development. It has made land recycling one of its top priorities. This entails taking up the challenge of land management transition by promoting the refurbishment and/or conversion of assets and restoring nature to its rightful place in areas that have been developed.

  • Pour une ville plus durable

    Icade aims to design the city of the future, bustling with activity day or night, all week long. To this end, it intends to build and manage liveable spaces that encompass homes, offices, shops and green spaces. However, the transformation of cities doesn’t have to come at the expense of the planet. That’s why the Group has made the fight against climate change and the preservation of biodiversity two of its strategic priorities and why it relies on innovation to achieve its objectives.

Examples of Icade projects

Inventing the mixed, sustainable city of 2050

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Creating value in the regions

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Strengthening social ties and regional cohesion

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L'exemple emblématique du Village des Athlètes

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