Icade confirms its objectives in an unfavorable context

The group, which is both a developer and real estate company of offices, generated net current cash flow in the first half of the year - its benchmark indicator which measures its profitability - down 18,1% over one year to 169 million euros.

This decline is due to the sale, initiated last year, of its health branch. The net current cash flow of its strategic developer and real estate activities is stable at 111,1 million euros.

For 2024, Icade is maintaining its target of a net current cash flow of between 3,55 and 3,70 euros per share.

The group has "cash flows that are well maintained despite the environment", CEO Nicolas Joly told AFP.

The company benefited from its real estate activity, which consists of renting out buildings that it owns, whose rental income increased by 3,7% during the half-year.

On the other hand, its activity as a developer is suffering from the unfavorable context for new real estate.

Its reservations fell by 1% in number and 8% in value, with Icade having had to agree to price reductions, particularly with professional investors (so-called "bulk" sales), who represent the majority of its buyers.

"What we have seen is a reduction in demand as a whole, which has an impact on prices," noted Nicolas Joly.

In 2023, the State launched a program to buy back outstanding real estate programs to support the activity of developers.

The group has also begun the reconversion of its offices which it considers obsolete (12% of its office assets), one of the axes of its strategic plan, with two office buildings in the process of being transformed into housing in Plessis-Robinson (Hauts-de-Seine) and in Lyon.