Slides
Page 1
2025 Half-Year Results Thursday, July 24, 2025 PULSE (Saint-Denis, Seine-Saint-Denis)
Page 2
22025 Half-Year Results I Thursday, July 24, 2025 DISCLAIMER This document (the “Presentation”) may contain information, opinions and certain forward looking statements that reflect Icade’s management’s current views and expectations with respect to future events and financial and operational performance of the Group. Because these forward looking statements are subject to risks and uncertainties, future results or performance may differ materially from those expressed in or implied by these statements. None of the future projections, estimates or prospects in this Presentation should be taken as forecasts or promises. Investors are cautioned not to place undue reliance on the forward looking statements (as well as information and opinions) contained herein. Icade does not assume any responsibility or obligation to update or revise any forward looking statements and/or information. This Presentation is not an offer or an invitation to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this Presentation may be restricted in certain countries by legislation or regulations. As a result, any person who comes into possession of this Presentation should familiarise themselves and comply with such restrictions. To the extent permitted by applicable law, Icade excludes all liability and makes no representation regarding the violation of any such restrictions by any person. PARIS ORLY-RUNGIS BUSINESS PARK (Val-de-Marne)
Page 3
3 AGENDA 2025 Half-Year Results I Thursday, July 24, 2025 H1 2025 in a nutshell H1 2025 Operational performance H1 2025 Financial results FY 2025 Outlook Appendices 1. 2. 3.
Page 4
H1 2025 in a nutshell 4 Key messages 2025 guidance(1) confirmed (1) See February 18, 2025 press release 2025 Half-Year Results I Thursday, July 24, 2025 Resilient NCCF from strategic operations given a fall in net rental income of Property Investment and lower financial income offset by improvement in current economic operating margin of Property Development Proactive balance sheet and liquidity management: issuance of 10y €500m bonds & signing of €290m RCF Approval of Say on Climate and Say on Biodiversity by more than 99% at the General Meeting More than €100m of disposals of non-strategic and core assets at the NAV Solid rental activity (c. 79,000 sq.m of new leases and renewals) and improved financial occupancy rate for well-positioned offices and light industrial
Page 5
H1 2025 in a nutshell 52025 Half-Year Results I Thursday, July 24, 2025 H1 2025 in a nutshell – Group KPIs €2.03/share Group NCCF €1.44/share NCCF from strategic operations(1) €56.6/share NAV NTA 38.1% LTV incl. duties For the definition of acronyms, please refer to July 23, 2025 press release and Half-Year Financial Report available on www.icade.fr/en/ (1) Strategic operations correspond to the Property Investment and Property Development divisions (2) Rolling 12-month EBITDA plus dividends from equity-accounted and non consolidated companies 8.3x Net debt/EBITDA(2) 7.4x Interest coverage ratio 1.6% Average cost of debt
Page 6
H1 2025 in a nutshell 62025 Half-Year Results I Thursday, July 24, 2025 H1 2025 in a nutshell – Business lines KPIs €178.3m GRI (vs €187.8m in H1 2024) €6.2bn Gross Asset Value(1) (vs €6.4bn as of 12/2024) 5.3% EPRA net initial yield (vs 5.2% as of 12/2024) €501.1m Economic revenue (vs €582.9m in H1 2024) 2.3% Operating margin (vs -3.1% in H1 2024) Property Investment For the definition of acronyms, please refer to July 23, 2025 press release and Half-Year Financial Report available on www.icade.fr/en/ (1) Portfolio value excluding duties on a 100% + Group share of JVs basis Property Development
Page 7
7 H1 2025 OPERATIONAL PERFORMANCE PONT DE FLANDRE (Paris, 19th district) 1. 2025 Half-Year Results I Thursday, July 24, 2025
Page 8
ORIGINE (Nanterre, Hauts-de-Seine) 8 PROPERTY INVESTMENT 1.1 2025 Half-Year Results I Thursday, July 24, 2025
Page 9
1.1. Property Investment 9 Weaker leasing activity, investment market slightly improving 2025 Half-Year Results I Thursday, July 24, 2025 Leasing market Decline in the Paris Region take-up with 768,400 sq.m (-12%(1)) Stronger downward adjustement in Paris (-27%) vs outside Paris (-4%) Vacancy still increasing (10.8%) but at a slower pace Still high incentives (27.7% overall) Lack of large deals due to longer decision making Tenants look beyond Paris to meet cost-efficiency strategies → 4 out of the 5 deals over 10,000 sq.m outside Paris in H1 2025 Slower rental market with more tenants looking outside Paris Investment market Investment slowly recovering in H1 2025: €6.8bn (+11%(2)) France remains behind in the European recovery cycle Liquidity improving for core+ and value add larger office assets Investment strategies driven by top occupier markets Prime yields recompression in CBD [c. 3.90% - 4.25%] Outside Paris, limited pockets for specific area like La Defense Improved liquidity, still concentrated in Paris (1) Year on Year, Immostat (2) BNP Paribas Real Estate - Including Hotels Sources: Immostat, JLL, BNP Paribas Real Estate, CBRE
Page 10
1.1. Property Investment 10 Good commercial momentum in H1 2025 c.79,000 sq.m signed or renewed €20m Annual headline rents related to leases signed or renewed since January 1, 2025 c.7.4 years WALB related to leases signed or renewed since January 1, 2025 83.6% Financial occupancy rate 2025 Half-Year Results I Thursday, July 24, 2025 88.8% ↑ Well-positioned offices +0.8 pt vs dec. 24 89.5% ↑ Light industrial +0.5 pt vs dec. 24 Including an emblematic signature with the Seine-Saint-Denis Departmental Council c. 29,000 sq.m Fast relet, with economic rent in line with the market 12-year term Start of lease expected late 2025/early 2026 Well-positioned offices occupancy rate including Pulse >90% PULSE A showcase: Mauvin business park MAUVIN BUSINESS PARK 2 new leases signed with Alice & Bob (4,600 sq.m) & Raboni (c.2,800 sq.m) Area fully let Occupancy rate: 100% Total leased area:c. 21,000 sq.m
Page 11
1.1. Property Investment 11 More than €100m of disposals in line with NAV Nancy Hospital (CHRU)(1) €55m Termination of public-private partnership CHRU Nancy 26,600 sq.m 2025 (1) Classified in Other assets, total debt accounts for €51m ReShapE – Finance the plan 2025 Half-Year Results I Thursday, July 24, 2025 Finalised sales of non-strategic assets Office under sale agreement Well-positioned office €14m Yield c. 6% 5 JOLIETTE Marseille 3,300 sq.m Hotels portfolio €36m Yield c. 7% B&B Hotels 5 assets in Bordeaux, Marseille, Quimper
Page 12
Relutive capital allocation 3 new office projects in pipeline in Lyon and Toulouse >50% pre-let Yield on Cost >7% c.€300m Remaining capex over 3 years 1.1. Property Investment 12 c.€50m of potential rents coming from a selective pipeline Limited development capex CSR-focused DNA 1 2 3 CENTREDA (Toulouse, Occitanie) EQUINIX DATA CENTER (Portes de Paris Business Park) 2025 Half-Year Results I Thursday, July 24, 2025 100% of projects aiming for HQE / BREEAM with an Excellent rating or aligned with Taxonomy criteria EDENN (Nanterre, Ile-de-France)
Page 13
Student residence of 194 beds – c. 3,600 sq.m Fully-equipped (terrace, garden, coworking space, shared kitchen, fitness room) and easy access by subway VEFA expected in Q4 2025 Construction start Q1 2026 Expected delivery in 2028 ReShapE – Accelerate diversification • Structuring of Icade’s student housing brand and concept • Identification of 2-3 other projects in cooperation with Icade Promotion to provide 750 beds by 2028 • Target: 500 to 1,000 beds to be delivered per year 1.1. Property Investment 13 First achievements on student housing diversification 2025 Half-Year Results I Thursday, July 24, 2025 • Signature of a partnership with Nomad Campus (previously Cardinal Campus)(1) in July, 2025 (1) • Management contract to be implemented under a white label for each operation • Strong track record of Cardinal Campus: 15-year experience, mostly in Lyon & Paris regions, management of 50 residences in France (6,100 beds) Partnership with a student residence operator 1st student housing project Next steps 30 RUE JEAN LE GALLEU (Ivry-sur-Seine, Val-de-Marne) (1) Memorandum of Understanding signed in February 2025
Page 14
PARC INDUSTRIES OR MÉDITERRANÉE – PIOM (Mauguio, Hérault) 14 PROPERTY DEVELOPMENT 1.2 2025 Half-Year Results I Thursday, July 24, 2025
Page 15
1.2. Property Development 152025 Half-Year Results I Thursday, July 24, 2025 Individual orders down following end of Pinel incentive €496m, -7.9% YoY Order in value terms Residential development: stable volume, declining value Slowdown in individual orders Bulk orders support -11% -8% ➔ Decrease in individual investors by -35% in volume terms, given the end of Pinel tax incentive scheme 10% -8% Volume H1 2025 vs H1 2024 Value H1 2025 vs H1 2024 Volume H1 2025 vs H1 2024 Value H1 2025 vs H1 2024 ➔ Impact of product mix change on value 2,116 units, +0.3% YoY Order in volume terms 884 units Individual orders 1,232 units Bulk orders €284m Individual orders €212m Bulk orders
Page 16
1.2. Property Development 16 Key insights from city fringes barometer: a strategic opportunity for Icade 2025 Half-Year Results I Thursday, July 24, 2025 >3,800 urban entry points covering 80,000 hectares Potential for 1.6 million housing units including 120,000 housing units on 1 to 3 hectares areas that could be redeveloped during the next municipal term Potential for 15,000 hectares of economic land & 10,000 hectares for ecological restoration Key findings from city fringes barometer (June 2025) to consolidate its major role in the transformation of commercial areas Opportunity for ReShapE – Develop and invest in 2050 city (1) SCET: Services, Conseil, Expertises et Territoires, subsidiary of Caisse des Dépôts et Consignation (1)
Page 17
1.2. Property Development 17 Development projects over 10-15 years in co-investment with CDC Habitat 2025 Half-Year Results I Thursday, July 24, 2025 ReShapE – Develop and invest in 2050 city Phase 1 Phase 2 Phase 3 • In H1 2025, acquisition of 11 well- located property sites from Casino consisting of car parks, undeveloped land, premises & ancillary lots for €32m(1) • Partnership with CDC Habitat as investor on 2 sites • Land restructuring and ownership unification process carried out alongside the City • Rental income collection while awaiting tenant eviction • Engage with retailers to shape the future commercial offer in terms of format and scale • Obtention of urban planning & building permits to transform a mono-functional retail site into a cohesive urban district integrating shops, public amenities, and residential units • Develop mix used programs in several tranches from 2028 • Substantial development potential 3,500 New housing units 50,000 sq.m Renovated retail space €1bn Potential revenue for Icade Promotion (1) Icade share, excluding tax and duties
Page 18
18 H1 2025 FINANCIAL RESULTS 2. DESTINATION GAVY (Saint-Nazaire, Loire-Atlantique) 2025 Half-Year Results I Thursday, July 24, 2025
Page 19
19 P&L 2.1 HELSINKI-IÉNA (Paris Orly-Rungis Business Park , Val-de-Marne) 2025 Half-Year Results I Thursday, July 24, 2025
Page 20
2.1. P&L 20 Earnings indicators in €m 06/30/2025 06/30/2024 Change Total IFRS revenue 630.4 698.9 (9.8%) EBITDA(1) 144.8 67.1 NA Financial result (21.5) (6.7) NA Net profit (91.7) (180.5) (49.2%) NCCF from strategic operations 109.3 111.1 (1.7%) Group NCCF 154.1 169.0 (8.8%) 2025 Half-Year Results I Thursday, July 24, 2025(1) EBITDA, or earnings before interest, taxes, depreciation, and amortisation, as reported in the consolidated financial statements
Page 21
2.1. P&L – Property Investment 212025 Half-Year Results I Thursday, July 24, 2025 Resilient NCCF from strategic operations NCCF H1 2024 Change in NRI Net property margin for Property Development Finance income Other NCCF H1 2025 €1.44/share€1.47/share (0.17) 0.39 (0.21) -1.8% (0.03) Note: Figures may not add up due to rounding
Page 22
2.1. P&L – Property Investment 22 GRI decrease resulting from tenant departures Note: Figures may not add up due to rounding 2025 Half-Year Results I Thursday, July 24, 2025 Rental income H1 2024 Negative reversion on renewals Departures Indemnities Index effect Other Rental income H1 2025 -€9.6m (-5.1%) (14.4) 187.8 178.3 (4.8) 5.2 6.1 (1.7) (in €m) Gross rental income negatively impacted by negative reversion and tenant departures in 2024 Net rental income negatively impacted by higher vacancy costs Rental income H1 2024 Tenant departures Other scope impact Index-linked rent reviews Rental income H1 2025 Early termination fees Negative reversion on renewals -4.3% LFL change
Page 23
2.1. P&L – Property Development 23 Decrease in property development economic revenue (In €m) 2025 Half-Year Results I Thursday, July 24, 2025 6-month economic revenue(1) -€81.9m (-14.0%) (45.2) 582.9 501.1(33.9) (2.9) H1 2024 Residential development Commercial development Other effects H1 2025H1 2024 economic revenue H1 2025 economic revenue OtherCommercial developmentResidential development Note: Figures may not add up due to rounding (1) The economic revenue includes the IFRS consolidated revenue and the Group’s share of revenue from jointly controlled entities Economic revenue down due to (i) lower residential bulk sales in H1 2025 and (ii) reduced activity in commercial segment
Page 24
2.1. P&L – Property Development 24 Stabilisation of property margin rate 2025 Half-Year Results I Thursday, July 24, 2025 Net property margin H1 2023 Net property margin H1 2024 Base effect impairment in H1 2024 Volume effect Margin effect Net property margin H1 2025 72.1 41.7 +46.0 (12.3) (3.4) 14.5% % revenue Improvement in the property margin after impairment losses taken in H1 2024 following the review of the portfolio 7.2% % revenue 96.9 16.8% % revenue
Page 25
2.1. P&L 25 Return to normalized financial results Lower finance income and healthcare dividends Tight cost of debt management 14.4 Finance income(1) Finance income from IHE Dividends received from non-consolidated companies Other Current financial result H1 2025 (In €m) 42.2 (1.1) (10.5) (0.6) Current financial result H1 2024 Cost of gross debt 0.1 Optimised cash management 1.59% Average cost of debt (vs 1.52% as of 12/31/2024) 100% Hedged in H2-2025 €0.8bn Invested on average 2.7% Average rate of return (15.8) Cash-Flow from discontinued operations 2025 Half-Year Results I Thursday, July 24, 2025(1) Including -€2.3m of interest on shareholder loans and current accounts
Page 26
2.1. P&L 26 Return to normalized financial results Lower finance income and healthcare dividends Tight cost of debt management 14.4 Finance income(1) Finance income from IHE Dividends received from non-consolidated companies Other Current financial result H1 2025 (In €m) 42.2 (1.1) (10.2) (0.9) Current financial result H1 2024 Cost of gross debt 0.1 Optimised cash management 1.59% Average cost of debt (vs 1.52% as of 12/31/2024) 100% Hedged in H2-2025 €0.8bn Invested on average 2.7% Average rate of return (15.8) Cash-Flow from discontinued operations 2025 Half-Year Results I Thursday, July 24, 2025(1) Including -€2.3m of interest on shareholder loans and current accounts
Page 27
27 BALANCE SHEET 2.2 BELLECOMBE (Lyon, Rhône) 2025 Half-Year Results I Thursday, July 24, 2025
Page 28
2.2. Balance sheet 28 Decrease in fair value of Property Investment portfolio 6,203 (1) Fair value as of 12/31/2024 of assets sold during the period (2) Including mainly tax changes • Property Investment portfolio down -2.8% in H1 2025 on a LfL basis • EPRA Net Initial Yield: 5.3% (vs 5.2% as of December 31, 2024) • EPRA Topped-up net initial yield: 6.2% (vs 6.2% as of December 31, 2024) 2025 Half-Year Results I Thursday, July 24, 2025 LFL * 6,398 -2.8% LfL -3.1% on a reported basis 105.1 (174.8) (99.6) FV as of 12/31/2024 Disposals Investments Others Like-for-like evolution FV as of 06/30/2025 Investment Others(2) FV as of 06/30/2025 FV as of 12/31/2024 Disposals(1) Like-for-like evolution (26.0)
Page 29
2.2. Balance sheet 29 Slower decline in asset valuations Change in half-year value (In €m, 100% + Group share of JVs basis / excluding duties, on a like-for-like basis) Resilience of light industrial assets Slower decline in valuation of well-positioned offices H2 23 H1 24 H2 24 H1 25 H2 23 H1 24 H2 24 H1 25 Well-positioned offices Light industrial Total H2 23 H1 24 H2 24 H1 25 2025 Half-Year Results I Thursday, July 24, 2025 -11.7% -3.8% -3.4% -2.8% -11.9% -3.7% -3.1% -2.7% -1.4% +0.7% +1.1% +0.4%
Page 30
2.2. Balance sheet 30 NAV impacted by change in asset values EPRA NTA 12/31/2024 Group NCCF Change in FV of Property Investment assets Other factors EPRA NTA 06/30/2025 (cum dividend) 2024 interim dividend EPRA NTA 06/30/2025 (cum dividend) 60.1 58.8 56.6 2.0 (2.7) (2.2)(0.7) NTA -5.8% (per share) €4,557m €4,299m (in € per share) 2025 Half-Year Results I Thursday, July 24, 2025Note: Figures may not add up due to rounding
Page 31
312025 Half-Year Results I Thursday, July 24, 2025 Strong debt raising achievements 2.2. Balance sheet Increased liquidity Extension of average debt maturity to 4.2 years 75% of financing is now sustainable (goal achieved one year ahead of target) €268m 2026/2027/2028 bond repurchase(2) €500m 10-year Green bond issue at 4.375%(1) €290m Signed RCF, including €190m from new money & €100m in refinancing with 2026 maturity (1) Spread at 197 bps (2) Total cash amount repurchased of €265m (including accrued interests)
Page 32
2.2. Balance sheet 32 Solid liquidity and improved debt maturity schedule S2 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 + Debt maturity schedule (as of June 30, 2025, in €bn)(2) €1.0bn Net cash position €1.8bn Unused committed revolving credit facilities(1) Total €2.8bn Covering principal until 2029 (1) Net of Neu Commercial Paper (2) Excluding Neu Commercial Paper and adjusted for cash tender offer (finalised in May 2025) Liquidity position As of June 30, 2025 Amount repurchased in May 2025 through cash tender offer 0.43 0.57 0.60 0.65 0.50 0.26 0.75 0.49 2025 Half-Year Results I Thursday, July 24, 2025 0.16
Page 33
33 FY 2025 OUTLOOK 3. VALLÉE PETRA (Créteil, Val-de-Marne) 2025 Half-Year Results I Thursday, July 24, 2025
Page 34
3. FY 2025 Outlook 34 FY2025 guidance unchanged (1) On the hypothetical basis of a stable ownership of Præmia Healthcare (c.22%) and of IHE (c.59%) and stable IHE shareholder loan 2025 Guidance Group NCCF per share of €[3.40 – 3.60] Of which c. €0.67/share from discontinued operations, excluding impact of disposals(1) 2025 Half-Year Results I Thursday, July 24, 2025
Page 35
AGENDA October 22, 2025 Q3 2025 Results 352025 Half-Year Results I Thursday, July 24, 2025
Page 36
36 29-33 CHAMPS-ELYSÉES (Paris, Ile-de-France) APPENDICES 2025 Half-Year Results I Thursday, July 24, 2025
Page 37
Appendices 37 Update on Healthcare disposal ReShapE – Finance the plan 2025 Half-Year Results I Thursday, July 24, 2025 Strategy unchanged to sell Icade’s entire remaining stake in the Healthcare business (1) Like-for-like change in Fair Value estimated as of June 2025 (vs 12/31/2024) Recent progress Next steps • Decrease in Icade’s exposure from 22.5% to 21.6% ✓ Signing of a share swap agreement with Predica for an estimated amount of c. €30m ✓ Sale by Præmia Healthcare of a non-strategic asset allowing Icade to perceive c. €6m through a capital reduction by Præmia Healthcare • Extension until the end of 2026 of call options granted to Præmia REIM and other shareholders for the purchase of Præmia Healthcare’ shares held by Icade • Consideration of alternative solutions (e.g. swap) • Ongoing discussions with third-party investors and Praemia REIM • Indicative timeline: 2025-2026 • Ongoing marketing of Italian portfolio IHE IHEStable asset valuation -1.4%(1) in H1 2025 Icade share of NAV c. €0.7bn Icade’s exposure c. €0.5bn
Page 38
Appendices 38 Leasing market slowed down by weak economic conditions Vacancy rate Immediate supplyTake-up H1 2025 take-up: 768,400 sq.m > 5 000 sq.m: 198,900 sq.m < 1 000 sq.m: 311,000 sq.m -31% -3% -12% (million sq.m / vacancy in %)Muted leasing activity • Take-up volume dropped sharply in H1 (768,400 sq.m, -12% yoy) due to a lack of large deals (200,000 sq.m, -31% yoy). Smaller transactions were more resilient (-1% to -3%) • Paris activity is lagging (-27%) while other locations remain stable (+2%) • 1.7-1.8M sq.m expected in 2025, under its “new-normal pace” due to longer decision process (economic uncertainty) and renegotiations (stay vs go) More decisions influenced by cost-saving considerations • A growing number of tenants are prioritizing rationalization • Tenants widen their search beyond Paris: 40% (Paris in first intention) in 2025 vs 52% in 2024 (1) • 4 out of the top 5 deals over 10,000 sq.m occurred outside Paris New market configuration emerging for the next 2–3 years • Paris: supply with higher rent levels • Outside Paris: wide range of options with delivered assets • Attractive rents and incentives, and high-quality office should meet tenants' expectations outside Paris 1 2 3 Take-up, immediate supply and vacancy rate in the Paris region Sources: Immostat, BNP Paribas Real Estate, JLL (1) BNP Paribas Real Estate - June 2025 2025 Half-Year Results I Thursday, July 24, 2025 1 000-5 000 sq.m: 258,500 sq.m -1% 2,0 1,8 1,7-1,8 5,6 6,0 5,0% 7,60% 10,2% 10,8% 1,0 2,0 3,0 4,0 5,0 6,0 7,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1
Page 39
Appendices 39 Cost-efficiency is shaping location strategies * % of large space (>5,000 sq.m) requirements: Q1 2025 vs Q1 2024 Sources: Immostat, BNP Paribas Real Estate 2025 Half-Year Results I Thursday, July 24, 2025 Demand is weaker… and tenants are looking more outside Paris Ministries of Education Gentilly / 37,500 sq.m ‘Six Degrés’ Departmental Council of Seine-St- Denis / 29,000 sq.m ‘Pulse’ Bank Subsidiary Levallois-Perret 20,000 sq.m BPCE Charenton / 15,500 sq.m ‘Rives de Bercy’ 4 out of the top 5 deals over 10,000 sq.m outside Paris Paris La Défense Western Crescent 1st ring 40 % 10 % 24 % 21 % 52 % 8 % 18 % 17 %2024 2025 Geographic preference* 0,7 1,0 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2 Million s.qm Paris Outside Paris Paris weight in take-up is slightly easing Attractive economic rents and high-quality office should meet tenants' expectations outside Paris
Page 40
Appendices 40 Higher rents in Paris, more affordable options outside Q2-2025 Paris CBD La Défense Western Crescent Inner Ring Outer Ring Physical vacancy rate (vs a year earlier) 4.7% ▲ +210 bps 15.6% ▲ +90 bps 19.8% ▲ +465 bps 19.6% ▲ +120 bps 5.8% ▲ +45 bps Take-up (H1 2025 vs H1 2024/vs 10-year average) 157,000 sq.m (-1% / -19%) 65,300 sq.m (-11% / -31%) 138,700 sq.m (-6% / -37%) 178,100 sq.m (+22% / +20%) 68,400 sq.m (-8% / -41%) Prime Rent (€/sq.m/year headline excl. taxes & service charges, vs a year earlier) €1 200/sq.m ▲ +20% €550/sq.m ▲ +4% €645/sq.m ▼ -9% €420/sq.m = €250/sq.m ▼ -7% Lease incentives (Q1 2025 vs a year earlier) 16% = +0,20 pp 38% = -1,80 pp 33% ▲ +3,60 pp 32% ▲ +2,45 pp 28% ▲ +5,30 pp Prime yield (vs end 24’) 3.90% ▼ -10 bps 6.25% ▼ -25 bps 5.50% = 7.75% = 8.25% = Sources: Immostat, JLL, BNP Paribas Real Estate 2025 Half-Year Results I Thursday, July 24, 2025 Higher rents in Paris are pushing occupiers to look beyond the city for quality space
Page 41
Investment is recovering selectively • €6.8bn invested in H1 2025 (+11% yoy) • c.€15-17 bn expected in 2025 • Increase in larger deals and more bidders for value creation thesis • Still a blind spot for large core/core+ offices over €100m outside Paris Appendices 41 Investment market: from market freeze to selective restart 1 Direct Real Estate Investments in France (Commercial Real Estate, €bn) 1,8 1,7 1,1 1,5 2,4 1,7 1,7 0,9 0 0,5 1 1,5 2 2,5 3 Offices Industrial Retail Hotels H1 2024 H1 2025 Rising interest for value creation strategies • Offices accounted for 35% of all investments in H1 2025 (+35% YoY) Acceleration expected in H2 • Focus on office assets supported by robust market dynamics • Value-add and core+ leading over core and prime assets 2 2025 Half-Year Results I Thursday, July 24, 2025 Investment recovery start (Investment volume by asset class, €bn) Source: BNP Paribas Real Estate -38%+35% +56% 4,7 31 14 8 14 17 18 18 27 31 30 27 34 42 29 28 30 15 6,1 6,8 29% 35% 0 5 10 15 20 25 30 35 40 45 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 2025 H1 Office Retail, industrial, hotels Office share
Page 42
Prime yields are recompressing and investors widening their risk scope Appendices 42 5.50% 3.90% 0 1 2 3 4 5 6 7 8 2006 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 H1 Prime yield OAT 10y Paris CBD Lyon (in %) Lower Offices’ prime yields • Yields for Paris CBD offices are recompressing around 3.90-4.0% but upward pressure outside Paris are still there - especially on oversupplied markets • French 10y bond rate stabilized around 3.25%-3.40% Investment thesis are widening • Value-add and core+ are expected to account for 61% of investment volume (vs. 46% in 2024) • Tighter risk premiums reduce some investor appetite for core assets • Larger asset volume in 2025 (up to €700m vs no deal over €350m in 2024) 2025 Half-Year Results I Thursday, July 24, 2025 3 4 Prime yields recompressions vs structurally higher French bonds Prime offices yield in France vs. 10y gov. Bond, % Shift towards core+ / value-add over core acquisitions % of foreign investment (BNP Paribas RE) 29% 33% 28% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 + dealflow Core Core+ Value add Opportunistic Change of use Sources: BNP Paribas Real Estate, Banque de France
Page 43
Appendices 43 Lower indexation effect on rents c.100% leases linked to indices Evolution of indices (1) (in %) +5.5% Indexation effect on rents in H1 2024 +3.4% Indexation effect on rents in H1 2025 (1) Sources: INSEE, forecasts from CDC Commercial portfolio index split – June 2025 (in % of headline rent) Other indices 8% ICC 10% ILAT 82% 2025 Half-Year Results I Thursday, July 24, 2025 3,9% 5,1% 1,4% 3,5% 4,7% 1,0% 6,3% 4,2% 0,4% Average 2021-2022 Average 2023-2024 Average 2025-2026 ILAT ILC ICC
Page 44
Appendices 44 A diversified portfolio, with assets located in good hubs Breakdown by asset type 06/30/2025 GAV % GAV Offices €5.1bn 83% Light industrial €0.8bn 12% Other €0.2bn 3% Land banks €0.1bn 2% 231 assets €6.2bn GAV 1.8m sq.m Bordeaux Toulouse Marseille Lyon Rest of Paris region (South) Nanterre OFFICE OFFICE Paris La Défense OFFICE OFFICE 1st ring 2nd ring Portes de Paris Business Park(1) Regional cities OFFICE CULINARY SCHOOL TV STUDIO DATA CENTER Breakdown by location 06/30/2025 GAV % GAV Paris/Neuilly €1.3bn 21% Nanterre €1.3bn 21% La Défense €0.6bn 9% 1st ring €1.5bn 24% 2nd ring €0.9bn 15% Regional cities €0.6bn 10% Paris Orly-Rungis Business Park(2) Figures as of June 2025, on a 100% + Group share of JVs basis Figures may not add up due to rounding (1) Part of 1st ring area (2) Part of 2nd ring area 2025 Half-Year Results I Thursday, July 24, 2025
Page 45
Appendices 45 A selective positioning in the main regional cities Main regional cities (1) Figures as of June 2025, on a 100% + Group share of JVs basis Bordeaux 37,657 sq.m Toulouse 29,236 sq.m Marseille 31,335 sq.m Lyon 69,654 sq.m ORIANZ Bordeaux, Gironde NEXT Lyon, Rhône LA FABRIQUE Bordeaux, Gironde LAFAYETTE Lyon, Rhône LATÉCOÈRE Toulouse, Haute-Garonne NAUTILUS Bordeaux, Gironde M FACTORY Marseille, Bouches-du-Rhône SADI CARNOT Marseille, Bouches-du-Rhône 178,000 sq.m €0.6bn (1) 10% of the overall portfolio Offices Focus Regions – all assets Best environmental specifications, attractive locations and rent levels are key to attract large corporates 2025 Half-Year Results I Thursday, July 24, 2025
Page 46
Appendices 46 Property Investment portfolio ORIGINE Nanterre, Hauts-de-Seine (1) Annualized net rental income from leased space plus potential net rental income from vacant space at estimated rental value, divided by the appraised value of leasable space including duties (2) For operating properties 06/30/2025 12/31/2024 Portfolio value (100% + Group share of JVs basis, excl. duties) €6.2bn €6.4bn Average Icade yield(1)(2) 8.1% 7.9% Total floor area (in millions of sq.m) 1.78 1.83 WALB 3.2 years 3.4 years Financial occupancy rate Well-positioned Offices To-be-repositioned Offices Light industrial 83.6% 88.8% 51.7% 89.5% 84.7% 88.0% 64.6% 88.9% 2025 Half-Year Results I Thursday, July 24, 2025
Page 47
Appendices 47 Development pipeline as of June 30, 2025 Project name Location Type of works Property type Estimated date of completion Floor area (sq.m) Rental income (€m) YoC(1) Cost including remaining capex (€m) Remaining capex (€m) Pre-let EDENN Nanterre Construction Office Q4 2025 30,587 260 54 85% VILLAGE DES ATHLÈTES D1 D2 Saint-Ouen Construction Workshops / Retail Q1 2026 3,394 8 3 0% EQUINIX Portes de Paris Construction Data center Q2 2026 7,490 36 18 100% SEED Lyon Refurbishment Office Q1 2027 8,200 48 25 0% BLOOM Lyon Construction Office Q1 2027 5,000 24 18 0% VILLAGE DES ATHLÈTES D3 Saint-Ouen Construction Office Q3 2027 8,195 53 4 0% HELSINKI-IENA Rungis Refurbishment Hotel Q3 2027 11,445 51 43 48% CENTREDA Toulouse Construction Office Q4 2027 24,322 79 65 100% 29-33 CHAMPS-ÉLYSÉES Paris CBD Refurbishment Office / Retail Q1 2028 12,651 400 73 0% TOTAL PROJECTS STARTED(2) 111,284 50 5.3% 959 303 39% (1) Fair value-based YoC = headline rental income / cost of the project. This cost includes the fair value of the asset at project start, cost of works (incl. expenses, external fees and TI’s) and carrying costs, excluding internal fees (2) Projects started: operations for which work is underway or a lease has been signed or a building permit obtained 2025 Half-Year Results I Thursday, July 24, 2025
Page 48
19 8 62 93 47 29 46 12 5 18 0 4 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 >=2035 Appendices 48 Lease expiries schedule Annualised IFRS rental income (In €m, 100% + Group share of JVs basis) 65% of rental income has a lease term after 2029 2025 Half-Year Results I Thursday, July 24, 2025 WALT 5.1 years WALB 3.2 years By next break option By lease term Expired leases with tacit renewal 19 8 30 41 7 17 81 46 26 27 17 24 0 20 40 60 80 100 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 >=2035
Page 49
Appendices 49 To-be-repositioned assets now comprising < 10% of total portfolio ReShapE – Adapt office portfolio to new demands (1) Excluding assets sold In % of GAV of to-be-repositioned assets In 100% + Group share of JVs basis €0.5bn 06/30/2025 (1) 29% 71% Portfolio review as of 06/30/2025 IFRS annualized rent: €28.7m Financial occupancy rate: 51.7% Studies to be launched Projects identified and/or ongoing 2025 Half-Year Results I Thursday, July 24, 2025 In % of GAV of to-be-repositioned assets In 100% + Group share of JVs basis €0.6bn 12/31/2024 31% 69% Portfolio review as of 12/31/2024 IFRS annualized rent: €37.9m Financial occupancy rate: 64.6% Studies to be launched and/or building currently occupied Prospect/strategy identified Lease or SPA in progress Lease or SPA signed / building permit obtained Development works completed/asset sold Studies to be launched Projects identified and/or ongoing
Page 50
Appendices 50 EPRA NRV, NTA & NDV (In € per share) In €m In € per share Chg. vs. Dec. 2024(1) EPRA NDV 4,558 60.0 (7.0%) EPRA NTA 4,299 56.6 (5.8%) EPRA NRV 4,645 61.2 (5.2%)EPRA NDV Transfer tax optimisation adjustment on the fair value of property assets Impact of liabilities Other factors EPRA NTA Impact of transfer tax Other factors EPRA NRV 61.260.0 56.6 (0.3) 4.1 0.4 (3.9) 0.8 (1) Change in NAV per share 2025 Half-Year Results I Thursday, July 24, 2025
Page 51
Appendices 51 A continuous decline in market momentum Fewer housing permits Drop in market supply, stability of orders at a low level In housing units per year Source: ECLN Housing starts and building permits in France Change 05.2025 vs 05.2024 + 0,8 % - 2,7 % - 4,4 % + 7,5 % + 0,0 % - 6.7 % In housing units per year Source: FPI Housing stock, net orders and average time on market 17 months - 21,5 % Change 12 months rolling 0 100 000 200 000 300 000 400 000 500 000 600 000 2016 01 2016 05 2016 09 2017 01 2017 05 2017 09 2018 01 2018 05 2018 09 2019 01 2019 05 2019 09 2020 01 2020 05 2020 09 2021 01 2021 05 2021 09 2022 01 2022 05 2022 09 2023 01 2023 05 2023 09 2024 01 2024 05 2024 09 2025 01 2025 05 Total housing starts Multi-famiy housing starts Total housing permits Multi-famiy housing permits 1 year - 5 10 15 20 25 40 000 60 000 80 000 100 000 120 000 140 000 160 000 180 000 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Stock of multi-family housing units available for sale New market supply, individual sales (rollong 12 months) Net orders (individual, + blulk sales + residences with services, rolling 12 months) Net orders, individual sales (rolling 12 months) Average time on market (months) 2025 Half-Year Results I Thursday, July 24, 2025
Page 52
85 90 95 100 105 110 115 120 125 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3 2020 Q1 2020 Q3 2021 Q1 2021 Q3 2022 Q1 2022 Q3 2023 Q1 2023 Q3 2024 Q1 2024 Q3 2025 Q1 Producer Cost Index for Construction (ICP-F) Construction Cost Index (ICC) Houssing Mainteance and Improvement Work Index (IPEA) 3 500 3 700 3 900 4 100 4 300 4 500 4 700 4 900 5 100 5 300 50 000 60 000 70 000 80 000 90 000 100 000 110 000 120 000 Appendices 52 After sharp rises, construction costs and selling prices stabilise Slight price rises, against a backdrop of falling stock over the yearStabilisation of construction costs in 2025 Construction cost and price indices in Q1 2025 Index rebased to 100 in 2021 Sale prices and stock of new housing units available for sale Price incl. taxes in €/sq.m excl. notarial fees and other costs Stock of new housing units available for sale Sources FPI Change Q1 vs. Q4 YoY +1.8% -3.6% +0.8% +1.5% +0.4% +0.8% 3 years 1 year 2025 Half-Year Results I Thursday, July 24, 2025 Stock of new housing units available for sale Average apartment prices (€/sq.m)
Page 53
Appendices 53 Breakdown of orders by type of customers Social housing institutional investors (ESH) – Social landlords Institutional investors Individual investors Owner-occupier buyers 25.5% 28.5%12.2% 33.8% 06/30/2025 -9.7 pps +11.1 pps-5.8 pps +4.4 pps 54% of institutional investors (vs. 52% in 2024) 35.2% 17.4% 18.0% 29.4% 06/30/2024 2025 Half-Year Results I Thursday, July 24, 2025