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1. Company Snapshot

1.a. Company Description

As an investor and a developer, Icade is an integrated real estate player that designs innovative real estate products and services adapted to new urban lifestyles and habits.By placing corporate social responsibility and innovation at the core of its strategy, Icade is closely involved with stakeholders and users in the cities—local authorities and communities, companies and employees, institutions and associations.As an office and healthcare property investor (portfolio value of €11.6bn as of 06/30/2020 on a proportionate consolidation basis) and as a property developer (2019 economic revenues of nearly €1bn), Icade has been able to reinvent the real estate business and foster the emergence of tomorrow's greener, smarter and more responsible cities.


Icade is a significant player in the Greater Paris area and major French cities.Icade is listed on Euronext Paris as a French Listed Real Estate Investment Company (société d'investissement immobilier cotée, SIIC).Its leading shareholder is the Caisse des dépôts Group.

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1.b. Last Insights on ICAD

Icade's recent performance was driven by robust rental activity, with the company reporting a solid liquidity position despite a challenging leasing market. The commercial segment revenue decline was offset by strong rental activity, indicating a resilient business model. Additionally, the company's undervalued status, with an estimated discount of up to 46.3% below intrinsic value, presents an attractive opportunity for investors seeking long-term growth prospects.

1.c. Company Highlights

2. Icade's Earnings Report: A Mixed Bag

Icade's total IFRS revenue declined by 9% due to lower revenue from both the property investment and development divisions. The gross income decreased by 6% to €253 million, mainly due to tenant departures last year and the gradual crystallization of negative reversion of renewals. The company's EPS came out at -1.20782, significantly lower than the estimated 1.42. The decline in EPS is a clear indication of the challenges faced by the company.

Publication Date: Nov -02

📋 Highlights
  • Disposal Progress:: Completed €430M disposals (€210M healthcare reduction, €220M mature/non-strategic assets) to strengthen balance sheet.
  • Rental Activity Growth:: Signed/renewed 166,000m², including 41,000m² renewal with KPMG at EQHO Building, driving occupancy improvements.
  • Occupancy Rate:: Financial occupancy rose to 84% (as of 9/30/2025), driven by well-positioned offices and light industrial assets.
  • Cash Flow Guidance:: Reaffirmed 2025 group net current cash flow of €3.40–€3.60/share despite 6% gross income decline to €253M.
  • Development Headwinds:: Property development activity stable at €722M (2,815 units), but total value down 5% and no recovery expected in 2026 due to political factors.

Operational Highlights

The investment division reported a strong rental activity with circa 166,000 square meters signed or renewed, boosted by the renewal of 41,000 square meters in EQHO Building with KPMG. Icade reaffirmed its 2025 group net current cash flow guidance between €3.40 and €3.60 per share. The company has signed or renewed more than 60,000 square meters since the beginning of 2025 in the La Défense and Péri-Défense area, indicating a positive trend in its core business.

Valuation and Outlook

With a P/E Ratio of -8.55 and a P/B Ratio of 0.41, the market is pricing in significant challenges for the company. The EV/EBITDA ratio stands at 16.94, indicating a relatively high valuation. Icade's focus on improving the occupancy rate of its assets, diversifying its portfolio, and rigorously managing its balance sheet is crucial to its recovery. The company's ability to sell assets at the right price and secure its debt on debt plus equity trajectory is a positive sign.

Guidance and Ratings

Icade has demonstrated its commitment to its strategic plan, ReShapE, with no major changes. The disposal of assets over the last 9 months helped keep the LTV ratio under control. The company has a BBB rating from S&P, and the current outlook is stable. Analysts estimate next year's revenue growth at 1.3%, indicating a slow recovery.

Challenges Ahead

The political agenda in France will impact the pace of recovery, with persistently high sovereign yields and lower positive indexation expected in 2026. Icade's property development business won't recover in 2026 due to the agenda, and the investment side is expected to face a lower positive impact on indexation. The company still has negative reversions to be crystallized in the cash flow and departures mainly on to-be repositioned assets, indicating a challenging road ahead.

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.19%)

6. Segments

Property Development

Expected Growth: 4.5%

Icade's 4.5% growth in Property Development is driven by increasing demand for sustainable and mixed-use projects, strategic land banking, and a strong pipeline of development projects. Additionally, the company's focus on urban regeneration, innovative construction methods, and partnerships with local authorities contribute to its growth momentum.

Commercial Property Investment

Expected Growth: 3.5%

Icade's 3.5% commercial property investment growth is driven by increasing demand for office spaces in urban areas, fueled by France's economic growth and job market expansion. Additionally, Icade's diversified portfolio and strategic asset management contribute to the growth, along with the company's ability to capitalize on opportunities in the French real estate market.

Intersegment Transactions and Other Items

Expected Growth: 2.0%

Icade's 2.0% growth in Intersegment Transactions and Other Items is driven by increased property development activities, strategic partnerships, and efficient cost management. Additionally, the company's diversified business model, strong balance sheet, and favorable market conditions in the French real estate sector contribute to this growth.

7. Detailed Products

Offices

Icade's office properties offer high-quality, flexible and adaptable workspaces that cater to the evolving needs of businesses.

Business Parks

Icade's business parks provide a range of flexible and adaptable spaces for businesses, from offices to warehouses and logistics facilities.

Healthcare Properties

Icade's healthcare properties offer high-quality, specialized facilities for healthcare providers, including hospitals, clinics and medical offices.

Student Residences

Icade's student residences provide comfortable, convenient and well-located accommodation for students, with amenities and services tailored to their needs.

Urban Regeneration Projects

Icade's urban regeneration projects involve the redevelopment of brownfield sites and urban areas, creating new opportunities for housing, offices and amenities.

Logistics and Industrial Properties

Icade's logistics and industrial properties offer flexible and adaptable spaces for businesses, including warehouses, distribution centers and manufacturing facilities.

8. Icade's Porter Forces

Forces Ranking

Threat Of Substitutes

Icade's business is moderately threatened by substitutes, as customers have alternative options for office spaces and services.

Bargaining Power Of Customers

Icade's customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Icade's suppliers have moderate bargaining power, as the company relies on a diverse range of suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is low for Icade, as the company has established a strong market presence and has significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the real estate industry is high, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.46%
Debt Cost 3.95%
Equity Weight 49.54%
Equity Cost 9.77%
WACC 6.83%
Leverage 101.88%

11. Quality Control: Icade passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 5.8

Growth: 4.0

Quality: 6.9

Yield: 6.9

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.5

Growth: 5.7

Quality: 7.3

Yield: 8.8

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Cofinimmo

A-Score: 6.4/10

Value: 4.8

Growth: 2.3

Quality: 5.9

Yield: 10.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Covivio

A-Score: 5.7/10

Value: 4.0

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Unite

A-Score: 5.6/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Icade

A-Score: 4.8/10

Value: 7.4

Growth: 1.1

Quality: 2.3

Yield: 10.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.5$

Current Price

20.5$

Potential

-0.00%

Expected Cash-Flows