Icade Sa · EURONEXT:ICAD
Icade Sa — ESG Presentation (March 2024)
45 slides from Icade Sa's sustainability presentation, March 2024
Slide 1: CSR Investor Presentation
Icade March 2024 CSR INVESTOR PRESENTATION PARIS ORLY-RUNGIS BUSINESS PARK (Val-de-Marne)
Slide 2: Icade at a glance
ICADE AT A GLANCE Icade at a glance A holistic business model A supportive shareholding structure Crédit Agricole Commercial Property Assurances Group Caisse des 18.9% Dépôts et Investment Development S&P Rating Consignations A/Stable 39.2% S&P Rating AA/Negative Free Float 41.9% Full national cover
Slide 3: Agenda
A G E N DA Introduction: new strategic plan ReShapE 2024-2028 1. CSR Strategy overview 2. Low Carbon strategy 3. Biodiversity strategy 4. Other CSR Results 5. Focus on sustainable finance 6. Outlook Appendices CSR Investor Presentation ⚫ 3
Slide 4: Acting as a responsible and integrated player throughout the value chain
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Acting as a responsible and integrated player throughout the value chain • Unique access to lands & local communities • Recognized expertise to develop large and complex mixed-use projects • Strong track record in multi-asset classes (e.g. housing,
Slide 5: Icade 2024-2028 strategic plan
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Icade 2024-2028 strategic plan Adapt office portfolio to new demands Accelerate diversification • Assets and tailor-made offering suited to • Light industrial clients’ needs • Student housing • Pipeline focused on selective projects • Data Centers •
Slide 6: 86% of our offices are well-positioned to changing uses and expectations
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 86% of our offices are well-positioned to changing uses and expectations Valuation as of December 31, 2023 (in €bn, Group share) ORIGINE High quality and resilient assets Nanterre Préfecture (Hauts-de-Seine) fitted to new demands Well- • Good busine
Slide 7: Solid operational KPIs for well-positioned offices
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Solid operational KPIs for well-positioned offices, limited downside on future renewals €244m IFRS annualized rents(1) from well-positioned assets… As of December 31, 2023 Well-positioned for well-positioned offices Offices Office 82% Portfolio Rent
Slide 8: A limited portfolio of assets to-be-repositioned in the mid-term
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 A limited portfolio of assets to-be-repositioned in the mid-term In % of GAV of Assets To-be-repositioned To-be-repositioned 18% Lease or SPA signed 1% €53m / building permit obtained Ongoing 51% IFRS 16% annualized portfolio Studies to be launched
Slide 9: Further diversification through three priority growth segments
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Further diversification through three priority growth segments Light industrial Student housing Data Centers • Fast-growing market (+7% average annual • Structurally undersupplied market with > 95% • Strong absorption capacity (63 MW new supply incr
Slide 10: Our conviction: the 2050 mixed-use and sustainable city
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Our conviction: the 2050 mixed-use and sustainable city Mixed-Use Sustainable CSR Investor Presentation ⚫ 10
Slide 11: Rungis Area – An industrial and commercial district
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Rungis Area – An industrial and commercial district adjacent to the residential neighborhood Rungis International Market Residential area Data Center Light industrial Hotel(1) Residential(2) Office(1) (1) Projects already started included in the dev
Slide 12: Esterel Nord – A residential/industrial project
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Esterel Nord – A residential/industrial project lead as both a developer and an investor From 4 single-use buildings of 20,947 sq.m to a mixed-use district of 38,400 sq.m No demolition Increase of green spaces from 9,700 sq.m (23%) to 13,500 sq.m (3
Slide 13: Maintaining a solid balance sheet
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 Maintaining a solid balance sheet… • LTV ratio including duties [30-35]% Debt ratios • Robust ICR level > c.4x • Low Net debt / EBITDA < c.9x • Large amount of undrawn credit lines Liquidity • Proactive management of debt maturities • Diversified fu
Slide 14: Well balancing investment and debt repayment
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 … by well balancing investment and debt repayment Proceeds(1) Uses(1) €4.2bn €4.2bn Healthcare disposal Capital redeployment H2 2023 c.€1.6bn c.€1.8bn Healthcare disposal Debt repayment 2024-2026 c.€1.3bn(2) c.€1.7bn Other disposals Dividends 2024-2
Slide 15: €1.8bn redeployment plan over 2024-2028
INTRODUCTION: NEW STRATEGIC PLAN RESHAPE 2024-2028 €1.8bn redeployment plan over 2024-2028 to generate €120m of additional revenues in €bn c.€1.8bn Development capex 0.4 c. €0.9bn Target yield 0.5 Target yield [4-7%] [>6%] 0.2 , Target yield 0.4 [5%] 0.3 Started pipeline Diversification Reconversion
Slide 16: CSR Strategy Overview
1. CSR STRATEGY OVERVIEW ORIGINE (Nanterre, Hauts-de-Seine) CSR Investor Presentation ⚫ 16
Slide 17: CSR at the core of our strategy
CSR STRATEGY OVERVIEW CSR at the core of our strategy 5 CSR priorities Climate A 1.5°C-aligned High goals for its carbon reduction two business lines Net-zero carbon A €145m pathway validated and Corporate, emissions by investment plan Climate: by the SBTi covering scope 1, 2 2050 for 2024–2030 1.5°
Slide 18: A dedicated and supportive governance (1/2)
CSR STRATEGY OVERVIEW A dedicated and supportive governance (1/2) CSR Investor Presentation ⚫ 18
Slide 19: A dedicated and supportive governance (2/2)
CSR STRATEGY OVERVIEW A dedicated and supportive governance (2/2) CSR Commitments involve the entire management structure and are incorporated in the company’s overall strategy, with innovation as a cross-cutting issue 15% of ExCo members’ variable compensation is based on CSR objectives 83% of mana
Slide 20: Low Carbon Strategy
2. LOW CARBON STRATEGY ATHLETES VILLAGE (Saint-Denis, Seine-Saint-Denis) CSR Investor Presentation ⚫ 20
Slide 21: A well-established low-carbon track record
LOW CARBON STRATEGY A well-established low-carbon track record, a top priority for almost 20 years 2023 Approval of the 2nd Say on climate & biodiversity for the second year in a row by 2020 more than 98% Promoting low- 2005 carbon living: an issue 2017 1st private service sector at the heart of Ica
Slide 22: A low carbon strategy aligned with a 1.5°C pathway
LOW CARBON STRATEGY A low carbon strategy aligned with a 1.5°C pathway Ambitious goals over the medium term and a sharp drop in Results at the end of 2023 in line with objectives GHG emissions in 2023 Target reductions in -90% GHG emissions between Results 2019-2023 2019 and 2030(1) -28% -21% -60% -
Slide 23: Icade's carbon footprint in 2023
LOW CARBON STRATEGY Icade’s carbon footprint in 2023 Breakdown of Icade’s GHG emissions in 2023(1) Corporate Office Investment – Operation 1% 4% Office Investment – Construction 6% 409,674 Property Development – Property Development – Energy(2) tCO2eq in 2023 Construction 24% (-28% vs. 2022) 47% Pro
Slide 24: Building a low carbon city with strong 2030 commitments
LOW CARBON STRATEGY Building a low carbon city with strong 2030 commitments • A low carbon investment plan for 2024-2030: €145m Improved building performance • >95% of well-positioned offices compliant in 2030 with SBTi and Energy Efficiency Regulation in 2030 Low carbon building 1/3 from timber & b
Slide 25: Commercial investment – Committed with our tenants
LOW CARBON STRATEGY Commercial investment – Committed with our tenants Commercial investment division’s carbon intensity and objective €66m €145m In kg CO2 eq / sq.m 2 Capex invested over 2019-2023 Capex planned for 2024-2030 200,000 sq.m Covered by leases with climate criteria signed with our tenan
Slide 26: Property development – Ramp up low-carbon construction
LOW CARBON STRATEGY Property development – Ramp up low-carbon construction Property development division’s carbon intensity and objective (based on a life-cycle assessment over a 50-year horizon) In kg CO2 eq / sq.m 2 79% Of projects used low-carbon energy in 2023 (vs 64 % in 2022) 17% Of projects l
Slide 27: Projects involving start-ups, a differentiating factor in tender process
LOW CARBON STRATEGY Projects involving start-ups, a differentiating factor in tender process Guillot-Bourdeix building (ex-CIRC) – Lyon Bellecombe tertiary building – Lyon A co-development (Icade and An office building of 5,000 sq.m Redman) of a 8,000 sq.m – using Terrio as low carbon building, usin
Slide 28: An ambitious and responsible carbon offsetting policy
LOW CARBON STRATEGY An ambitious and responsible carbon offsetting policy Key figures An unwavering approach • Complementary: carbon offsetting(2) in addition to reduction efforts Started in 2019 – 114,000 tonnes (1) of CO2 • Reliable: projects with best labels & standards sourced from rigorously se
Slide 29: Biodiversity Strategy
3. BIODIVERSITY STRATEGY ESTEREL NORD (Paris Orly-Rungis Business Park, Val-de-Marne) CSR Investor Presentation ⚫ 29
Slide 30: Our approach to biodiversity
BIODIVERSITY STRATEGY Our approach 1 Measuring the impact 2 Avoiding, reducing & rewilding 3 Contributing to restoring the most fragile ecosystems CSR Investor Presentation ⚫ 30
Slide 31: Building a city promoting nature and biodiversity, with strong 2030 commitments
BIODIVERSITY STRATEGY Building a city promoting nature and biodiversity, with strong 2030 commitments Biodiversity Internal advanced method established in 2023 with ecologists and based on assessment recognized standards Rewild existing • Nature-boosting solutions for 90% of buildings(1) by 2026 Fra
Slide 32: Our achievements on biodiversity
BIODIVERSITY STRATEGY Our achievements on biodiversity Property Development - New construction rewilding Commercial Investment – Business Parks’ rewilding Biodiversity indicator(1) : already 52% in 2023 Ecosystem restoration Partnership with Nature 2050 • 1 sq.m of land developed for the Commercial
Slide 33: Biodiversity preservation and soil protection – Commercial investment
BIODIVERSITY STRATEGY Biodiversity preservation and soil protection strategy – Commercial investment Rewilding our business parks by 2026, with higher goals in 2030 Biodiversity performance contract: 19 indicators, including 1 preliminary -40% indicator, 7 performance indicators, 9 resource indicato
Slide 34: Biodiversity preservation and soil protection – Property development
BIODIVERSITY STRATEGY Biodiversity preservation and soil protection strategy – Property development Property Development Our solutions that promote urban regeneration Goal: rewilding 75% of new builds by 2026 and 100% by 2030 Refurbishing and converting Transforming city fringes into 100% 75% office
Slide 35: Parc des Arts (Marseille) – Significant improvement in rewilding indicator
BIODIVERSITY STRATEGY Parc des Arts (Marseille) – Significant improve in the rewilding indicator Improvement of the rewilding indicator hBAF from 0.12 pre-project to 0.46 planned post-project On a 12,000 sq.m plot of land • Over 50% of green areas vs. 20% initially • 450 trees including 85 preserved
Slide 36: Other CSR Results
4. OTHER CSR RESULTS LA PLATEFORME (Marseille, Bouches-du-Rhône) CSR Investor Presentation ⚫ 36
Slide 37: Solid 2023 results on environmental and social issues
OTHER CSR RESULTS Solid 2023 results on environmental and social issues Indicator Results 2023 Target 2023 Proportion of homes covered by an environmental certification or label 42 % 35 % Best certification and labelling standards Proportion of offices over 1,000 sq.m covered by an environmental cer
Slide 38: Focus on Sustainable Finance
5. FOCUS ON SUSTAINABLE FINANCE LENÔTRE CULINARY SCHOOL (Paris Orly-Rungis Business Park, Val-de-Marne) CSR Investor Presentation ⚫ 38
Slide 39: A continuous focus on sustainable financing
FOCUS ON SUSTAINABLE FINANCE A continuous focus on sustainable financing New Green Financing framework in Nov. 2021 . More ambitious eligibility criteria(1) for buildings and/or capex financed by green debt instruments, enhancing them with the criteria included in EU Taxonomy 65% of the Group’s tota
Slide 40: Outlook
6. OUTLOOK CITYPARK (Levallois-Perret, Hauts-de-Seine) CSR Investor Presentation ⚫ 40
Slide 41: Conclusion – CSR strategy
OUTLOOK Conclusion – CSR strategy 1 A low carbon Capex plan for 2024-2030 of €145m 2 2 separate resolutions : The Say on Climate and Say on Biodiversity on the Group’s progress 3 Solid low carbon and biodiversity performance on both Icade’s division 4 Innovation helps us to achieve our CSR objective
Slide 42: Appendices
APPENDICES ESTEREL NORD (Paris Orly-Rungis Business Park, Val-de-Marne) CSR Investor Presentation ⚫ 42
Slide 43: Environmental priorities
APPENDICES Reinventing the city in response to new needs and challenges AT DISTRICT SCALE AT ASSET LEVEL Need for centrality, local access Quality of life to amenities, transportation hubs, Flexibility Remote work & flex spaces services, leisures Change of uses Shift towards more sustainable, Smart
Slide 44: Leading position confirmed in 2023 by CSR rating agencies and rankings
APPENDICES Leading position confirmed in 2023 by CSR rating agencies and rankings CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 9th out of 443 listed “Sector leader” status real estate companies worldwide in the Western Europe Diversified Listed Real Estate Investment Score: 7.1/100 (inverted sc
Slide 45: EU Taxonomy reporting
APPENDICES EU Taxonomy reporting: alignment between financial and non-financial reporting Total IFRS Eligible activities Aligned activities Scope as of 12/31/2023 as of 12/31/2023 as of 12/31/2023 (in €bn) (in %) (in %) Rental income from investment property and revenue based on the Revenue POC meth