Icade S.A.

Reported H1 2026 group net current cash flow was EUR 1.80 per share, versus EUR 2.03 in H1 2025. Strategic operations contributed EUR 1.16 per share, down from EUR 1.44 a year earlier. Property investment gross rental income was EUR 170.2 million, down 4.5% reported and 1.1% like-for-like. Property development economic revenue was EUR 473 million, down 5.5% year over year, and the current economic operating margin was 1.9% versus 2.3% in H1 2025. NAV NCA per share was EUR 49.7, down 6.9% versus year-end 2025; LTV including duties improved to 39% from 39.6%, net debt/EBITDA was 9.2x, and average cost of debt rose to 1.85%. Liquidity was EUR 2.5 billion. For 2026, management reiterated group net current cash flow guidance of EUR 2.90 to EUR 3.10 per share, including EUR 2.25 to EUR 2.45 per share from strategic operations and about EUR 0.65 per share from discontinuing operations. Management also said the average cost of debt should be around 2% by year-end.

Nicolas Joly emphasized disciplined capital allocation, selective disposals, and active asset management as the core of the strategy. He said the group is willing to wait for the right pricing window, citing Marignan and the Portuguese healthcare transaction, and highlighted Eqho’s full occupancy and the launch of new partnerships in student housing and office-to-residential conversion. His tone was cautious on the macro, with repeated references to persistent uncertainty, high rates, and a weak leasing and investment market.

Bruno Valentin focused on the bridge from H1 cash flow to full-year guidance and the financial discipline behind it. He said strategic net current cash flow was EUR 1.16 per share, with headwinds from property investment income, lower development contribution, and finance expense, partly offset by lower operating costs; he also noted a EUR 6.5 million reduction in costs in H1. On the balance sheet, he pointed to EUR 2.5 billion of liquidity, the EUR 150 million green bond due 2035, the renewal of EUR 450 million of revolving credit, a 1.85% average cost of debt, 97% hedging for H2 2026, and more than 85% hedged through 2028.

Analysts focused on valuation assumptions, office rental losses from departures, the sustainability of like-for-like rental trends, development margins, and the strategic logic of Eqho. Management said office values were still under pressure from yields and that they are waiting for more market transactions to confirm the trough; they also said 2026 lease departures are built into guidance and that 2027 visibility is better, with roughly 75% of expiring revenues expected to stay. On Eqho, they said the tower was acquired at an over-8% yield, is now fully let, needs no major near-term CapEx, and should be accretive to cash flow. They also said S&P kept a BBB rating with negative outlook in June and that they are focused on improving operational KPIs.