Welcome to the Icade 2026 half-year results presentation conference call. For the first part of the conference call, the participants will be in listen-only mode.

During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. You can also submit a written question.

Now I will hand the conference over to the speakers, Nicolas Joly, CEO, and Bruno Valentin, CFO. Please go ahead.

Good morning, everyone. Thank you for joining us today.

With Bruno Valentin, I'm pleased to present Icade's 2026 half-year results. I will begin with the key highlights and strategic developments of the first half.

Bruno will then take you through financial results and the balance sheet in more detail. I will come back at the end with our outlook for 2026 before we open the floor for questions.

Let me start with the main takeaways from the first half of 2026. The first key message is the continued discipline execution of our disposal plan.

We completed the sale of the Marignan building on the Champs-Élysées for EUR 402 million. In healthcare, an agreement has been signed relating to the disposal of the Portuguese portfolio, representing an exposure of around EUR 75 million for Icade.

The second key message is the new step taken with Eqho. Last week, we announced the acquisition of the remaining 49% minority stake in the tower, allowing us to regain full ownership of this landmark asset in La Défense.

This transaction follows a significant asset management effort and comes after the tower has been brought to full occupancy. The third message is the resilience of our operating performance.

In property investment, close to 94,000 sq m were signed or renewed in the first half, and the financial occupancy rate improved to 85.9%, with office occupancy now close to 90%. In property development, after a softer start to the year, activity recovered well in the second quarter.

Residential orders reached almost 2,400 units in the first half, up 12% in volume and 6% in value year-over-year. The fourth message is the strength of our financial structure.

We continue to benefit from a high level of liquidity, which was further reinforced during the period through a new EUR 150 million bond issue due in 2035 and the renewal of EUR 450 million of revolving credit facility. Finally, we confirm our 2026 guidance with group net current cash flow expected between EUR 2.90 and EUR 3.10 per share, while 2026 should mark a low point for strategic cash flows.

Turning now to the key figures for the first half. Group net current cash flow came in at EUR 1.80 per share, compared with EUR 2.03 per share in the first half of 2025, which is consistent with our full-year guidance.

Net current cash flow from strategic operations amounted to EUR 1.15 per share versus EUR 1.44 per share last year, mainly reflecting lower net rental income in property investment and lower margins in commercial property development. NAV NCA per share stood at EUR 49.7, down 6.9% compared with year-end 2025, mainly due to the decline in property values and the distribution paid fully in June.

At the same time, the balance sheet remained sound. LTV including duties improved slightly to 39%, from 39.6% at year-end 2025, while net debt to EBITDA remained broadly stable at 9.2x.

As expected, the average cost of debt increased moderately to 1.85%, reflecting the bond issues completed in 2025 and 2026. This increase remains controlled, we still target around 2% by year-end.

At business line level in property investment, gross rental income amounted to EUR 170 million, down 1.1% like for like. The portfolio value stood at EUR 5.6 billion, compared with EUR 6.1 billion at year-end 2025, reflecting both disposals and a like-for-like value decline of 3.1%.

EPRA net initial yield stood at 5.4%. In property development, economic revenue reached EUR 473 million, down 5.5% year-on-year, mainly due to the expected slowdown in commercial projects.

The current economic operating margin came in at 1.9% versus 2.3% in the first half of 2025. This reflects the lower contribution from commercial activity, which supported margins last year, while residential margins are gradually normalizing.

Residential orders totaled 2,368 units up year-on-year. Let me now come back to disposals and capital allocation, which remain a central pillar of our strategy.

Our approach remains highly disciplined. We execute disposal when pricing conditions are attractive with a clear objective: crystallizing value, reinforcing the balance sheet, and redeploying capital towards higher return opportunities.

As you know, we completed in H1 the disposal of Marignan for EUR 402 million after a competitive process, crystallizing a value of around EUR 33,000 per square meter, more than 20% above the December 2024 NAV. Combined with previous disposal, we have now achieved more than half of the EUR 1.3 billion disposal target set for property investment over the 2024-2028 strategic plan.

Around EUR 600 million remains to be executed over the remainder of the plan. In Healthcare, we are happy to announce further progress.

Praemia Healthcare and Yahood, the international SPV, have indeed signed an agreement for the disposal of the Portuguese portfolio. Icade's exposure amounts to EUR 75 million.

After this transaction and the steps already completed, around EUR 900 million of healthcare exposure remains to be disposed of by the end of the plan. Let's now turn back to Marignan, which illustrates our disciplined approach to capital allocation.

By selling the asset, we avoided refinancing at approximately 4.5% in the current interest rate environment. Over time, we will redeploy the proceed into higher return investment opportunities, particularly in attractive growth sectors such as data centers and student housing.

Let me now turn to the Portuguese healthcare transaction on page 12. The portfolio comprises four assets located in Lisbon, Porto, Albufeira, and Lagos.

The portfolio is valued at EUR 186 million, in line with the value reflected in Icade's NAV as of December 2025. Icade's exposure amounts to around EUR 75 million, although the final allocation of proceeds will be specified at a later stage.

Closing is expected in the second half of 2026. To be noted that this transaction will have no impact on 2026 group net current cash flow, as the contribution from non-strategic operations has already been secured through the dividend received from Praemia Healthcare in the first half.

Moving now to operating performance in property investment on page 14. We signed or renewed close to 94,000 sq m, representing EUR 32 million in annual headline rents with an average firm commitment of 8.7 years.

Most of these transactions were completed in La Défense and Péri-Défense area, which continue to demonstrate strong attractiveness for occupiers, combining quality asset, accessibility, and competitive rental conditions. Our recent leasing performance is translating into improved operating metrics.

At end June, the financial occupancy rate stood at 85.9%, up 0.9 points versus March, while office occupancy is now close to 90%. Page 15 highlights the renewal of our main 2027 lease expiry at Grands Axes in Nanterre.

We successfully renewed 100% of the space, representing 58,000 sq m on a new nine-year firm lease with AXA. This is a significant achievement, both in scale and in duration, and it illustrates the quality of the asset, its accessibility, and the strength of our long-term tenant relationships.

As a result, our teams have continued to improve the profile of our future lease maturities, as shown on page 16. Our WALT increased by 20% to four years, and we have significantly improved visibility on our 2027 lease expiries.

We indeed currently expect around 75% of the leases expiring in 2027 to stay, although this will, of course, involve crystallizing some negative reversion. Talking about that, potential reversion on the overall portfolio now stands at -7.1%, compared with the -9.7% at the end of June, at the end of 2025, sorry.

After factoring in the renewal of the major KPMG and AXA leases, potential negative reversion narrows to -4.4%. Slide 17 brings me to Eqho.

In July, we took advantage of a good opportunity to acquire the remaining 49% minority stake in the tower. We now own 100% of Eqho, an iconic asset in La Défense, offering 79,000 sq m of office space, now fully let following the KPMG lease renewal and the lease signed with the Hauts-de-Seine Prefecture.

From a financial perspective, this acquisition was completed at a yield of over 8% and is accretive to the group net current cash flow. The asset was already fully consolidated in the group's financial statement prior to the acquisition.

Turning now to property development on slide 18. The first half performance in residential segment was satisfactory, despite market that remains at historically low levels.

Individual buyers also showed solid momentum, up 6% in volume and 5% in value, despite a market that remains sharply down by around 15% in volume. This resilience was complemented by strong bulk orders to institutional investors, which increased by 60% in volume and close to 9% in value.

They accounted for 60% of H1 total reservation in volume terms. The slide 19 gives an outlook on future activity.

Despite the still constrained environment due to municipal election, Icade was able to rely on permits obtained at the end of 2025 to accelerate construction starts, which were up 63% year-on-year. This new project display a high level of pre-commercialization above 80%.

As of end of June 2026, total backlog stood at EUR 1.6 billion, offering around 20 months of revenue visibility. Residential backlog remains stable and continues to support the business.

As regards margins, we are seeing a gradual improvement in the quality of the portfolio. Operation with restored margin represented 37% of revenue in the first half, compared with 18% in 2025.

This confirms the ongoing rebalancing of the portfolio and supports our expectation of a region to break even by year-end. Let me now turn to slide 22 and 23 to highlight some of our recent achievements in terms of new partnerships that will support future growth while remaining disciplined on capital.

The first partnership targets the student accommodation segment. In July 2026, we entered into a strategic partnership with the Caisse des Dépôts through a dedicated investment vehicle, held 51% by Icade and 49% by Banque des Territoires.

Over an initial three-year investment period of around EUR 240 million is expected to be deployed with a target of around 2,000 beds. Two first projects have been already launched in Ivry-sur-Seine and Levallois-Perret, with delivery expected in 2028.

We also launched Evolution Habitat together with Banque des Territoires and Caisse d'Épargne Île-de-France. This vehicle aims to convert vacant office buildings into residential developments, primarily in the Paris region, where the potential addressable market is significant at around 6 million sq m.

At this stage, the partnership includes a three-year investment period with the ambition to deliver 50,000 to 60,000 sq m of refurbished space, meeting high environmental standards. With that, I'll now hand over to Bruno to go through the financial results in more details.

Thank you, Nicolas, and good morning, everyone. Let me start with a focus on net current cash flow on strategic operations.

As Nicolas mentioned, it's amounting to EUR 1.16 per share in the first half of 2026, down from EUR 1.44 per share one year before, fully in line with what we had anticipated. The main drivers are the following.

First, net rented income in property investment had a negative impact of EUR 0.13 per share, mainly due to tenant departures and negative reversions. Second, property development contributed EUR 0.70 per share, less than last year, reflecting the low point in commercial activity despite the gradual recovery in residential margins.

Third, finance expense had a negative impact of EUR 0.05 per share as the cost of debt continued to normalize. On the positive side, lower operating costs made a positive contribution.

Looking at rented income from specifically on page 27, gross rented income declined from EUR 178.3 million to EUR 170.2 million, 4.5% on a reported basis and 1.1% like-for-like. Compared with 2025, the like-for-like trend is normalizing.

Departure and reversion still have a negative effect, the pressure is gradually easing relative to last year. Indexation had, as expected, a limited positive impact.

Let's move on page 28. In property development, revenue and margin trends differ significantly across segments.

Residential is improving both in terms of revenue contribution and current economy margin. By contrast, the sharp decline in commercial development continues to weigh on volume and fully explains the decrease in revenue.

Margin evolution is also impacted by one of base effects. Tertiary deliveries had supported margin in the first half of 2025.

Overall, residential margins are progressively improving in line with the ongoing rebalancing of the portfolio. Financial discipline remained a key priority throughout the first half.

As illustrated on page 29, we continued to reduce the cost base with a EUR 6.5 million decrease in cost in half one 2026. This improvement was driven by procurement discipline, process optimization, and headcount control.

Importantly, the first half reduction does not yet include the main benefits from the voluntary redundancy plan, which should start contributing for the second half onward and support our savings trajectory. Turning to finance costs on page 30.

The evolution is fully in line with expectations. The average cost of debt increased gradually to 1.85%, with a target of around 2% by year-end.

We also maintain strong visibility, with 97% of projected debt hedged for the second half of 2026, and more than 85% until the end of 2028. Interest coverage is normalizing after previously high levels, but remains solid.

Moving now to the balance sheet. The property investment portfolio was valued at EUR 5.6 billion, excluding duty, at eight June, down 8.4% on a reported basis compared with December 2025.

This includes disposal, notably Marignan, and continued investment in development CapEx. On a like-for-like basis, the portfolio declined by 3.1% in the first half, mainly driven by higher market rates.

EPRA net initial yield stood at 5.4%, while the top-up yield stood at 6.3%. EPRA NTA per share came to EUR 49.7 at June, down 6.9% compared with year-end.

This change is mainly explained by the lower valuation of the property investment portfolio, as well as the 2025 distribution fully paid during the period. Turning to financing, as shown on page 34.

Icade maintained a very strong liquidity position of EUR 2.5 billion as June 2026, covering then debt maturities until 2030. During the first half, we issued a new EUR 150 million green bond maturity in 2035 and renewed EUR 450 million of revolving credit facility with an average maturity of five years.

This leaves the group with a robust liquidity profile and strong flexibility to manage upcoming maturities. With that, I will hand over to Nicolas for the conclusion and 2026 outlook.

Many thanks, Bruno. Based on our first half performance and our expectation for the second half, we confirm our full-year guidance.

Group net current cash flow is expected to be between EUR 2.90 and EUR 3.10 per share. This includes between EUR 2.25 and EUR 2.45 per share from strategic operations, which we continue to view as a low point, and around EUR 0.65 per share from discontinuing the operation already secure.

In a real estate environment still marked by persistent uncertainties around the pace of recovery and market development, we remain cautious and fully focused on execution. Subject to no further major deterioration, we expect in the second half an improvement in property development margins and a reduction in overhead, which should more than offset the expected deterioration in the financial results.

To conclude, the environment remains clearly challenging. The first half once again demonstrated our ability to execute with discipline and consistency.

It highlighted our capacity to allocate capital efficiently, deliver solid operating performance across both property investment and property development, and maintain a robust financial structure. I would like to sincerely thank all Icade teams for their commitment and hard work in delivering these results in a demanding environment.

With that, Bruno and I are now ready to take your questions. Thank you very much.

If you wish to ask a question, please dial pound key five on your telephone keypad. If you wish to withdraw your question, please dial pound key six.

You can also submit a written question. The next question comes from Stéphane Afonso from Jefferies.

Please go ahead.

Hi, Nicolas. Hi, Bruno.

Thank you for the presentation and for taking my questions. The first one on asset valuation.

Could you please elaborate a bit more on the main assumptions used by your appraisers? We have seen in some areas direct market is expanding by 30 basis points year to date.

To what extent your valuation is aligned with the current market evidence, and what should we expect for H2? That's my first question.

Morning, Stéphane. Thanks for your question.

Well, indeed, you saw in H1 2026, the value there went slightly down on office, -2.8% on a like-for-like basis. The other side went slightly up for light industrial, +0.3%, on a like-for-like basis.

Well, clearly, we're remaining in this macro uncertainty and high interest rate environment, which clearly does not help the stabilization of asset values and a recovery on the investment market, which is very sluggish. We are all still waiting for a new transaction to confirm that we've reached the trough in valuation and confirm the exact level we're in, as far as we are concerned.

It's a bit hard, of course, to predict the evolution of the value in the long term, as those market volume remains low, the macro unpredictable. There are more negative catalysts than positive catalysts, that's globally where we stand today.

Okay. Also on offices, regarding the EUR 30 million of rental loss from departures expected this year, how much do you expect to impact the full year rental income?

I understand that only EUR 1 million have been recognized in H1.

That's what we were seeing. It's included in the guidance and the global trajectory.

We have a pretty clear view that we've start sharing with the market during the annual results. As for 2026, as we said, we had EUR 60 million of lease expiries, of which EUR 30 million were expected departure by the end.

Rather H2, including mostly the former to-be-repositioned assets. We were talking about EUR 16 million of to-be-repositioned asset, which is clearly the last portion of those major expiries on this type of asset.

We take a look at 2027, I know it's important for you, we try to give you as much visibility as we can, we have some good visibility. Saying that roughly 75% of expiring revenues, around EUR 60 million out of the EUR 80 million potential expiries in 2027.

Those EUR 60 million include leases for which we consider high probability of renewals, coming, of course, together with a part of negative reversion crystallizing. As for the EUR 20 million, they are rather expected to expire even if the teams are focusing on that.

We took a look even more, we are already working on the 2028 maturity to anticipate as much as we can.

Okay. I guess that as the tenants will vacate the buildings, we should see a sharp decrease in the like-for-like rental growth over the year.

Because only EUR 1 million.

As for the like-for-like, the major impact on like-for-like was rather in 2025. If we take a look at 2025, this has been strongly impacted by both negative reversion, a bit less than -3%, and tenant departures last year at -6%.

This was partially offset by the stronger indexation, +3%. Of course, departures and reversion will still have a negative effect this year, but the pressure is gradually easing relative to last year.

The impact on departure, they were stronger in 2025 rather than in 2026. On top of that, we have some departure on some asset that goes into development with project.

Talking about Le Ponant, for example.

Okay. Maybe that's.

The next question comes from Florent Laroche-Joubert from ODDO BHF. Please go ahead.

Yes. Good morning.

Thank you for this presentation. I would have two questions.

My first question would be on your outlook for 2027 and after. Why are you confident that 2026 should be a low point in terms of operational performance?

I will ask my second question after.

Thank you, Florent. Good morning for your question.

We indeed confirm the guidance 2026 and the fact that strategic cash flow should mark a low point in 2026. Firstly, we remain cautious, of course, as we said, given the uncertain macro and the political environment in France with the presidential election underway.

Maybe two things. You got two things that impact negatively the cash flows and two things that will support the cash flow.

The two things that put pressure on the cash flow is a mechanical gradual increase in finance expenses. The second thing is on the investment side, we still expect a decline in rental income because basically we have very low indexation.

We are crystallizing lease after lease, the negative reversion, and we still have the impact of some departure. This, as for the two negative impacts.

On top of that, on the other side, we got two things that support the cash flow. The first one is the recovery in development activity.

You saw that the trends are gradually improving through customer mix rebalancing. We are restoring operational margins.

There's room for improvement still, but the main question mark still remains the pace and intensity of recovery. Let's say it's going on the right way.

The second positive thing that will support the cash flow is the fact that we are securing lower fixed costs through our cost-reduction plan target of an additional recurring EUR 15 million over a full year basis. To sum it up, we do not claim to control the world cycle or the macro, but we are focusing on what we can control.

Bruno shared the figures, clearly, that's something we can do on this, and we are fully focusing on that with rigor and discipline. That give us confidence to achieve our objective of reaching a low point on the strategic cash flows in 2026.

Okay. Thanks.

That's very interesting. Maybe my second question would be on the disposal of your healthcare assets.

We have been able to see that you have been able to do some disposal very recently in Portugal. Have you any other visibility to dispose shortly some other international assets, for example, in Germany or in Italy?

Okay. Thanks for this additional question.

Maybe before talking about the next step, let's take some time and have a good look at the transaction, which is clearly a good news, because we were able to sell this portfolio, which is roughly EUR 200 million on a quite narrow market at satisfying condition on the NAV, just exactly after what we did in Italy last year. This is a good thing.

This asset portfolio, gross asset value, is in line with the value that was retained in our NAV as of December 2025, with an economic stake for us, as you saw, at EUR 75 million. This deal demonstrate, once again, that we are able to sell assets at the right price and that we are right to wait for the right window.

Clearly on this core asset, we had, at the end of 2023, some very opportunistic offer and decided to wait to seize the right window. That's a good news.

Talking about the next step, well, of course, we are still focusing on what we intend to do. Our objective remains gradual exit from our minority stake over the reshape plan horizon, the philosophy still remains the same.

We have no intention to sell under unfavorable condition with a large discount, as they are still generating some strong cash yield. Once at that, if we take a look, well, France is not the same type of investors as the international asset.

Here, talking about our exposure, we are talking about a passive stake, which won't attract some strategic investors, but rather financial investor, clearly. Another way possible is selling assets in the SPV that will allow us to have some additional capital reduction after those potential asset disposals.

That's also something we are keeping on exploring. If we take a look at the remaining asset, well, Italy, honestly, is very small portfolio, roughly EUR 15 million-EUR 20 million, very small part.

We sold almost all of that. The next focus will be in Germany.

As you know, the environment is really not favorable at the time for healthcare there, but the operators are on recovery there. We'll try to see if there are some room to create some liquidity at satisfactory condition on this asset, clearly, that's something we are going to look into it also.

Okay. Thanks for that.

That's very helpful. Thank you.

Thank you, Florent.

The next question comes from Benjamin Legrand from Kepler Cheuvreux. Please go ahead.

Yes. Thank you for taking my question.

Just the first question is again on valuation. I see it's in negative territory, but less negative than it used to be.

Obviously, it's been helped by the Nanterre deal and the La Défense deal as well on the positive side. Do you know what could have been the impact without those positive elements?

That would be the first question. The second question would be on margin on the residential development business.

I see you expect the new generation projects to be 50/50 compared to the old projects by the end of 2026. What do you expect for 2027 and 2028?

That would be it. Thank you.

Well, thanks for your question, Benjamin. As for the asset value, well, we've talked about that.

We don't split between the business plan assumption, any impact. What we see that the decrease in value on the office was mainly due to the yield effect.

Clearly, as you are highlighting, the nice and positive deals the teams were able to secure through those large renewals helped offset a bit of the negative yield impact. No, we don't usually give the split between that.

It's good to see that all the team's effort on a day-to-day basis with the tenant renegotiation help mitigate the negative impact on the yield. As for the property development question on the margin, well, there, as you can see, a gradual recovery on the margin.

As you saw in H1, 37% of the turnover come from operation with restored margin on residential. After we went through the portfolio in 2024, this was 18% in 2025.

Indeed, we are expecting 50/50 by the end of 2026. What we can say on the figures is that the global margin went down a bit due to the fact that there's the termination of commercial activity, which clearly weigh on the revenue and the margin because there were still a few in 2025.

We do not expect any more the commercial segment to recover. If we focus on the residential segment operating margin, this has increased from 1.3% in June 2025 to 2.4% June 2026.

This is going on the right way and what to expect, let's say that the total current economic operating margin is expected to gradually improve, but no strong recovery expected clearly before 2027. All of that, depending also on the evolution on both the macro and the potential impact of the presidential election in France.

The team efforts are paying now, as you can see in the figure, and should help support the recovery of the operating margin, mainly the residential segment.

That's clear. Thank you.

Thank you, Legrand.

The next question comes from [Paul Riouju] from Arenco. Please go ahead.

Hello, good morning. Thank you for taking my question.

Can you just come back, maybe you gave some information already on the Grands Axes and on the condition of the new lease?

Paul, is that you? We can hear you, but we can also hear other people.

There is someone also in the background.

Sorry about that. Can you hear my question about the condition of the lease, the recognition of the lease on Grands Axes?

Can you give some detail on this? On Grands Axes?

Well. Okay.

If you can cut the mic, please, and I will answer the question.

Thanks. I don't know who.

Okay, thanks. Yeah, much better.

Thanks, Paul.

Sorry.

As for your question on Grands Axes, we cannot give the full detail on that, but what we can say is this was anticipated. As you know, we were not so worried about the potential break option, but nevertheless, it was anticipated and discussion started two years before expiry.

We signed this nine-year firm lease on almost 60,000 sq m. No break option, even with some potential financial indemnity, pure nine-year firm.

As for the condition, where clearly, as we usually do, we intend to support the NAV. When we sign, we commit to sign at the market level.

Clearly, we've crystallized some negative reversion, as I highlighted in the presentation, but we sign at the ERV level, and the level of incentive was clearly very consistent with the market. We haven't overpaid this renewal to put things really clear.

Otherwise, we would not have signed this renewal because as how we are concerned, we were not worried about the potential break option. It's a bit like what we do in disposals.

If there's a good opportunity, we seize it. That's what we did with AXA, but we have not overpaid the transaction to be crystal clear on that.

Okay. Does it have an impact on your net asset value?

Because yields are going down and the portfolio valuation is going down, too. Does it mean that there is a strong revaluation on the rent side from the experts?

Was it triggered by this deal or not necessarily? If we look a bit forward, do you think we are at the end of the revaluation process from the experts at this stage of the cycle or not quite sure yet?

Of course, this deal was shared with the appraisers. This helped supported the valuation, of course, partially offsetting one of the negative impact on the yield.

As for the rents, as I said, we sign at the market level. The market levels are already in the valuation and the appraiser's assumption on their discounted cash flow.

It helped support those assumptions, clearly. Once said that, I said that more globally, this, like the other deal we signed, we've also signed some interesting renewals on Le Millénaire or last year KPMG.

All of that helps support the resiliency of the portfolio and demonstrate that, once again, there's room on the nice and well-located assets. This has a positive impact that partially offset the negative macro impact on the yields.

As for the valuation, as I said, we are also waiting for the signals on the investment market with new transaction to definitely confirm that we've reached a trough in the valuation.

Okay. Thank you.

Just two other questions. On the development business, it's going to be-

Yeah.

better. Do you think that what we've seen on Q2, on the macro side, will impact the figures maybe on the second semester?

Or are you confident on that? Question one.

Question two, can you just come back on the dividend and if you have any more clarity of the distribution of the gain you had on the asset you sold? That's it.

Thank you.

Yeah. Well, on the development market, as I said, we are confident and cautious.

I mean, who's not cautious in this geopolitical and French political unstable environment? It's going on the right way.

As I said, we've done better in this Q2 than the market, but nevertheless, the higher interest rate will keep on weighing on the lending conditions and on the mortgage loan, probably. On the positive side, there are some new tax incentive measures, but it's still too early to have a meaningful impact on the market recovery.

As the French political market environment is really uncertain due to the presidential election, well, we'll see. As I said, on the margin, we expect this to slightly recover from month to month and quarter to quarter.

The main question now being the pace and intensity of the recovery, I would say, but it's going into the right way. As for the dividend, well, on this too, it's still too early to tell.

As we said, we are not sharing any additional figures, especially not on the disposal of Marignan, but all of that will depend on the landing point on Icade results at the end of the year. As always, our distribution policy is guided by, and will be guided by our financial trajectory, and our discipline aims to preserve the balance sheet fundamentals while redeploying capital on accretive way and remunerating the shareholders at a satisfactory level.

Still too early to share some precise figures. We'll have to wait for the end of the year, but we're happy to share it as soon as possible.

Okay. Thank you very much.

Thank you, Paul.

The next question comes from Martijn Kartman from Van Lanschot Kempen. Please go ahead.

Good morning. Thank you for the presentation and taking my question.

Two questions from my side. My first question is, could you provide a bit of color on the 15% like-for-like decrease in land values you showed in the report?

Sorry, I didn't hear you very well, Martijn. Some color on.

15% like-for-like decrease in land values

the like-for-like, but I heard 15%.

Yeah, on land values.

Okay. The like for like on land values.

Land values.

Okay. Which is a small part of the portfolio.

Okay. I think there was some small adjustment from the appraisers on the land values, but it's not significant at the scale of the whole portfolio.

Sometimes it goes up and down. As you know, we've highlighted some new asset class.

We'll come back to you with more detail on this, but have in mind that this is not significant at the scale of the portfolio.

Okay. Clear.

Thank you. Could you give any indication of at what kind of yield the Portuguese assets were sold, and how far off that is from peak valuations?

We cannot give the information on the yield, which is confidential, but it's really consistent with the prime yields on the market globally on healthcare. As I said, the level of the transaction, the gross asset value at EUR 186 million was in line with the value as of December 2025.

This is clearly what we intend to do. We sell it at the right price when there's the good opportunity for liquidity.

There was not a heavy discount, and this is consistent with the prime yields on those markets.

Okay. Thank you very much.

That was all.

Thank you, Martijn.

The next question comes from Ana Escalante from Morgan Stanley. Please go ahead.

Hey, good morning. My first question is on the lettings.

I think most of the lettings in the first half have been new renewals. What is your view in terms of new lettings?

I mean, letting vacant space or maybe finding some new lettings in your portfolio. Could you give some color on that?

Historically, it has represented quite a relatively important share of the total annual lettings, so any color that you can provide there.

Okay. Thanks, Ana, for your question.

Let me put it back. You confirm if I heard well.

I understand your question is the part of new letting out of the total 100,000 sq m that has been signed or renewed during the semester. Is that right?

Yes, I think it's just 10% new lettings and the rest is renewals, if I'm not mistaken.

Yeah, exactly.

So-

Yeah

I do think that that will evolve.

Yeah

Historically it's been above, on an annual basis, that has been above significant level.

Yeah, yeah.

10%.

Yeah. That's really key.

I was only wanting to be really sure I understood well your question, given the sound was not really well. Indeed, you're right.

Most of the 100,000 sq m that has been signed during the semester came from renewal. We've highlighted the Grands Axes transaction.

I've talked also about the Praemia transaction. There were roughly 10%, indeed, of new lettings.

This is really consistent with what we see in the market more globally. The leasing market is really weak, remains challenging, and there are only a few new transaction on that.

What we see is that the tenants take more time to make decision. They are rather keen on staying on their existing premises rather than moving out.

This is consistent with what we see at the market, and we're trying to leverage that in order to secure a few years ahead the major potential break option we have, just like what we did with Grands Axes. This is consistent with the market.

We'll see in the semester to come if there's the opportunity for new leases. Clearly, most of the transactions are driven by renewals or anticipated renewals rather than new lettings.

Okay. Yeah, thank you.

Then my second question.

Thank you

is on your net to gross margin. I think that you said in the release that in the first half, there was some kind of one-off in the net to gross due to some increase in the expected losses from defaults, rent defaults.

Could you please provide more color on that?

Sorry, just to rephrase your question, it was rather on regarding investment property on rent default?

No.

You saw.

No,

No?

In your net to gross margin, so net rental income versus gross rental income. The margin at high 80%, it has gone down in the first half, and you said that that was due to higher allowance for rent defaults, and you said that that was just one-off, and so far, the rent collection remains higher across the portfolio.

I just wanted to understand better why was the reason behind this and whether that's any specific tenant, even if you don't specify which one, or to what extent we can see that again in the upcoming quarters.

Well, as for the decrease in the property investment margin rate, there's on the one hand, an actual impact because property taxes, expense on vacant property allocated 100% to the first half of the year, in case not everyone has this in mind. On top of that, as you are highlighting, it was also due to a one-time increase in client risk.

The overall margin rate now stands at 85.7%. As I said, it's rather a one-time increase than something expected to be recurring.

In the first half in 2025, we book a writeback of a provision because finally, a client pay us and this receivable had been provisioned. It's an effect for the first half in 2025 with a writeback.

More globally, I'm sure you have this in mind, Icade is not the one company that is heavily concerned by client risk. One of our strong assets is our portfolio of tenants, mostly a public state company, very large company, CAC 40, SBF 120.

All of that is not one of the major issue we have. Indeed, from time to time, there can be a one-off, one-time increase in client risk, it's not something which is a major concern of our business profile.

Thank you.

Thank you very much, Ana.

The next question comes from Michael Finn from Green Street. Please go ahead.

Yes. I just have two questions, please.

My first one was on Eqho. I'm curious if you could shed more light on the plan for the asset.

Obviously, you have some time because the leases there don't start, obviously, until 2027. They went from the end of 2025.

My second question is on the Eqho vacancy I noticed across the five office segments that you have, it has increased quite a lot in three of them. I'm just curious if you could shed some light on that as well, please.

Thank you.

Thank you, Michael. Can you say it again, your second question?

I'm sorry, the sound is not so great on our side. I heard the first.

The first one or two ago, I came back to that.

Sounds good. Yeah, of course.

My second one is on the EPRA vacancy. Across the five office segments, it has increased quite a lot in three of them.

Perhaps this is due to the fact that you have changed the way that you report the office slightly. Maybe some buildings that were in a different segment previously have been moved.

That's my second one. The first one, yeah, as you said, is on the plan for Tour Eqho now that you own all the building, because I would assume previously the other owner probably wasn't keen to spend much money on the building, and I assume that's now changed, obviously.

If there's any light you could shed on that would be great. Thank you.

Yeah. Maybe a word on Tour Eqho for a start.

Maybe just a few words on the way we looked at this acquisition. We started looking at the asset fundamental because we also had a few questions from some of you guys on this.

If we talk about the fundamentals, well, the fundamentals are good. For one, it's located in an attractive area, which is La Défense.

The second part is the asset has demonstrated, thanks to the effort of the team, its resiliency with this KPMG renewal and the Préfecture new lease. Clearly, that's how we see it.

If we take a look closer at the deal, on the financial side, it was rather opportunistic for us with this cap rate of 8%, which is pretty good for 100% cash flow secured in the midterm asset. It was for us also an opportunity to regain full control of the property, because with our partner, the evolution of the macro brought us to, of course, a kind of misalignment that could have been an issue in the midterm.

Not now, because the asset was fully filled. Globally, the way we saw that, for us, a good opportunity to regain the full control of the asset on attractive financial condition, clearly.

That's how we see that, and it should be an accretive thing for us. There's no specific thing on the vacancy cost related to this asset.

More globally on the EPRA vacancy cost, indeed, there are slight deterioration regarding the end of 2025, but we see an improvement in the occupancy rate since March after the Q1 that is impacted by a bad departure. This could help more positively on the vacancy EPRA rate.

More globally, the vacancy rates and or the occupancy ratio, as you know, is the first fight of the team. That's the reason why we were quite happy to being able to reach roughly 80% as for office occupancy, almost 86% more globally on the company.

We expect to be roughly stable in this area by the end of the year.

Okay. Thank you.

Okay. Thank you very much, Michael.

The next question comes from [Jacob Mark Bisig-Rysana] from Bernstein. Please go ahead.

Hi. Good morning.

It's Valerie Jacob from Bernstein. I just wanted to ask a question about your acquisition of the remaining of the Eqho Tower.

Can you please remind us, I think you say in your press release that the impact on LTV is quite minimal. Can you remind us on the impact on the EPRA LTV?

Also, you're currently on negative watch, and we're seeing your asset value declining. I just wanted to know if you can share some color on your current discussion with the rating agency and how you see the risk of a downgrade and what would be the impact on your financing cost.

Thank you.

Okay. I will take the Eqho question, and Bruno, we will get back to you in discussion with rating agency.

As for the Eqho Tower, indeed, it was already fully consolidated in our account, mainly no major impact on the balance sheet. Of course, due to the way EPRA calculates the LTV EPRA ratio, this ratio will be slightly impacted, which roughly half a point, 0.5 points globally.

This should have an effect. Talking about the net current cash flow, this acquisition will be accretive, as I said.

This was already factored in in our guidance, being slightly accretive for the end of 2026. Of course, this will help support the cash flow also in 2027.

Maybe, Bruno, if you want to comment on the S&P.

Of course, we have a regular discussion with S&P. First of all, remember all financial KPI rates pay the threshold of S&P.

We are very focused on operational KPI. It means like for like and the tough.

We are very focused to respect and to improve the operational KPI. Ideally, it will be the decision of S&P.

For remember in June, S&P confirm her BBB rating with negative outlook. As you can imagine, we are very focused on ATV and operation KPI, and we like to demonstrate quarter after quarter that we are in the good way.

Thank you.

Thank you.

The next question comes from Pranava Boyidapu from Barclays. Please go ahead.

Good morning. Thank you for taking my question.

Firstly, I just wanted to get a sense of the cost of-

Sorry. Can you get a bit closer to the mic, please?

Hi. Good morning.

Thank you for taking my question.

Thank you.

My first question is on the cost of debt. You mentioned that it's going up to around 2% by the end of 2026.

Is that just on the EUR 290 million bank debt being rolled, like your assumptions on the cost, or are there any other hedging provisions? Are you able to give us a sense for where this would go up after your 2027, 2028 refinancing?

Obviously, the ICR has gone down quite a lot, so that's why I'm asking about it.

Okay. For the cost of debt, of course, increase quarter after quarter, but we have a limited increase from June 2025 to June 2026 from 1.60% at the end of December, so from 1.68%-1.95%.

For the end of the year, we anticipated to be at 2%, around 2%.

Hedging

For the hedging, we are very strict about our policy of hedging. It means for this year, we are already hedged almost 100%.

For the 2027 and 2028, we almost hedge at high level at 85%. It means we have a very small sensibility about the rates.

You speak about the bonds in 2025, in 2027, and 2028. We have two bonds for a total of EUR 1.1 billion.

Of course, we have a plan to refinancing the two bonds. It will be, of course, an increase of the cost of debt, but it will be already anticipated.

We don't have to disclose at this time about specific deals.

Okay. I assume that means that you don't have a hedging in place for the future refinancing, was my question.

The second question I had was just understanding your CapEx and cash flow impact. Would you have a sense for how much the La Défense tower cost you in terms of cash outflow and any CapEx needs for the Evolution Habitat that you may have factored in already?

Yeah. Thanks for your question.

Well, there is no specific amount of CapEx that shall be allocated to the tower. This has been refurbished a few years before.

There was a few to enhance the global attractiveness of the tower, but it did not require some heavy investment. Clearly, it's fully secured through the renewal and the new lease, so there is no need for additional CapEx in the short term on this tower.

More globally, on our portfolio in La Défense or Péri-Défense, which is almost fully let, there's no need for major CapEx to be invested.

Sorry, on the La Défense, I was asking about the sale price, like how much cash outflow for the company did it cost?

Okay, sorry. I didn't get your question on this.

Well, it's very low impact in terms of cash outflow due to the fact that the SPV was significantly leveraged. Buying the equity did not require a significant amount of cash, but as some of you already highlighted.

There are no more questions.

Thank you.

I hand the conference back to the speakers for the closing comments.

Well, thank you very much for your time and your question. Once again, I would like to thank Icade team for their strong commitment and efforts in this difficult times, clearly.

Looking forward to see you all in the roadshow, and we wish you a good day. Bye-bye.