Icade : Results as of March 31, 2022

PRESS RELEASE

Issy-les-Moulineaux, April 22, 2022, 6:00 p.m.

ICADE - RESULTS AS OF MARCH 31, 2022

REVENUE UP +6% TO €390M ON A PROPORTIONATE CONSOLIDATION BASIS

SOLID PERFORMANCE ACROSS OUR 3 BUSINESS LINES

EXCELLENT START TO 2022

STRONG BUSINESS PERFORMANCE ACROSS OUR 3 BUSINESS LINES AT THE END OF MARCH 2022

• o Property Investment: gross rental income up +6.1% to €143.3m (on a proportionate consolidation basis):

  •  Office Property Investment: gross rental income of around €86m (+1.4%) against a backdrop of significant asset rotation

  •  Healthcare Property Investment: gross rental income soars by +14.6% to €52m driven by portfolio growth

  •  First positive signs of inflation on index-linked rent reviews: Q1 impact of c. +1.3% for Property Investment, expected to rise over the rest of the year

• o Property Development: economic revenue1 up +6% to €264m, orders up +28% (in value terms): continued strong sales performance in Q1 2022

EXCELLENT START TO 2022

• o Office Property Investment: sale of 2 mature assets (or under preliminary agreement) for more than €400m, slightly above the most recent valuations

• o Healthcare Property Investment: sale of 4 healthcare facilities in France for €78m, with a 10% premium to the most recent NAV. Further acquisitions in Southern Europe, growth in investment projects under study

• o Property Development: selection of Urbain des Bois, Icade Promotion's timber construction subsidiary, for an innovative project in Ferney-Voltaire (130 housing units covering 7,200 sq.m, 75% timber-based)

FINANCIAL STRUCTURE: FURTHER OPTIMISATION OF OUR FUNDING STRUCTURE AND USE OF GREEN FINANCE

• o Issue of an 8-year €500m Green Bond with a coupon of 1.0% in early January 2022

• o Icade Santé's financial structure strengthened: a €400m 5-year RCF secured

ICADE'S LOW-CARBON STRATEGY RAMPED UP

"The +6.1% growth in revenue compared to Q1 2021 reflects the continuation of the strong performance seen in 2021 and the strength of our three business lines. Office Property Investment has confirmed its solid fundamentals with stable rental income and continued asset rotation, with two mature assets sold (or under preliminary agreement) for more than €400m in Q1 2022. Healthcare Property Investment posted sustained rental income growth, driven by the increase in investments in 2021. Lastly, the Property Development Division's sales momentum continued in Q1 2022, contributing to the effective implementation of its ambitious growth roadmap. Thanks to the efforts of all our teams, the first three months of 2022 are fully in line with our strategic priorities and goals for the year.

We remain fully committed to achieving these goals, despite the adverse effect that the unsettled geopolitical context is having on our markets." Olivier WIGNIOLLE, CEO

Change

(in millions of euros)

03/31/2022

03/31/2021

(%)Like-for-like change (%)

Gross rental income from Office Property Investment - proportionate Gross rental income from Healthcare Property Investment - proportionate	85.7	84.5	1.4% 14.6% (3.3)% 2.1%
52.1	45.5
Other rental income*	5.5	5.0	9.5% 9.0%
Gross rental income from Property Investment - proportionate	143.3	135.0	6.1% (0.9)%
Property Development revenue - proportionate Other revenue**	240.8	227.4	5.9% 5.9% 14.8% 14.8%
5.8	5.1
CONSOLIDATED REVENUE ON A PROPORTIONATE CONSOLIDATION BASIS	390.0	367.6	6.1% 3.7%

CONSOLIDATED REVENUE

413.9

392.5

5.4%

*: Other Office Property Investment assets **: Intra-group operations

1 Economic revenue: IFRS revenue + revenue from entities accounted for using the equity method

1. PROPERTY INVESTMENT DIVISIONS

1.1 OFFICE PROPERTY INVESTMENT: RESILIENT BUSINESS, CONTINUED ASSET ROTATION

Q1 rental income and leasing activity

Leasing activity

(in millions of euros, on a proportionate consolidation basis)

03/31/2021 AcquisitionsCompletions/ Developments/ Refurbishments Disposals

and index-linked rent reviews

Change

03/31/2022

(%)Like-for-like change (%)

Offices 61.1 Business parks 23.4	5.2	4.7	(6.1)	(2.9)	62.0	1.5% 1.1%	(5.6)%
-	(0.4)	0.3	0.4	23.7	1.8%
GROSS RENTAL INCOME FROM OFFICE PROPERTY INVESTMENT ON A PROPORTIONATE CONSOLIDATION BASIS (*) 84.5 5.2 4.3 (5.9) (2.5)	85.7	1.4%	(3.3)%

* NB: excluding other assets

The Office Property Investment Division's gross rental income from offices and business parks stood at c. €86m as of March 31, 2022, up +1.4% on a reported basis.

•  Gross rental income from offices and business parks rose by +1.5% and +1.1%, respectively, driven by acquisitions in 2021 (Equinove and Prairial) and completions (including Fresk and Origine), which offset the impact of disposals in 2021;

  • o In line with our expectations, the like-for-like decline in the 2021 financial occupancy rate due to the departure of two tenants in the Eqho Tower in La Défense and the renewal of the 75,000-sq.m AXA lease in line with market rents led to a like-for-like drop of -3.3% in rental income.

  • o It should be noted that the effect of index-linked rent reviews was again minimal in Q1: +1.2%.

•  No significant tenant departures have been announced since January 1, 2022;

•  In addition, AXA, our largest tenant in the four Grand Axe buildings in Nanterre-Préfecture, renewed its lease for nearly 75,000 sq.m, ensuring rental income well into the future. In doing so, 100% of the floor area was renewed for 9 years in line with market rents as of December 31, 2021;

•  Leasing activity outside the Paris region (more than 10% of the business line's activity) remained very strong, with a +6.5% increase in rental income on a like-for-like basis.

In summary, Icade's asset management teams remained highly active, with 26 leases covering more than 21,000 sq.m signed or renewed on terms largely in line with market rents, which have remained stable.

It should be noted that, regarding the effects of rising indices, 100% of the Office Property Investment Division's leases are linked to indices with a strong inflation component: c. 75% of leases are linked to the ILAT index and c. 25% to the ICC and ILC indices, with rent reviews on an annual basis.

As a result of rising indices since Q3 2021, the average rent review over the period amounted to +1.2%, i.e. a limited impact to date. Based on the index levels known at the end of March, the full-year impact is estimated at around +2.8%, with a more pronounced effect in H2 2022.

The financial occupancy rate stood at 87.5% as of March 31, 2022. This occupancy rate is almost the same as the rate at the end of 2021 (88.1%), which, as a reminder, was impacted by the disposal of four fully leased mature assets and the completion of two new-build assets meeting the highest standards (Origine and Fresk), part of which is currently being let. The year-on-year change in the vacancy rate mainly resulted from Fresk and Origine, two state-of-the-art assets that meet current expectations.

The time needed to find tenants was longer and the teams remained fully mobilised.

Financial occupancy rate

Weighted average unexpired lease term

(in %) (**)

(in years) (**)

Asset classes

03/31/2022

12/31/2021

Like-for-like change*

03/31/2022

12/31/2021

Offices Business parks	88.8%	89.3% 84.6%	(0.4) pp	4.5	4.7 3.3
83.4%	(0.9) pp	3.2
OFFICE AND BUSINESS PARK ASSETS	87.4%	88.0%	(0.5) pp	4.2	4.4
Other assets	90.0%	89.8%	+0.2 pp	6.2	6.3
OFFICE PROPERTY INVESTMENT	87.5%	88.1%	(0.5) pp	4.3	4.5

(*) Change between December 31, 2021 and March 31, 2022, excluding completions, acquisitions and disposals for the period.

(**) On a full consolidation basis, except for equity-accounted assets which are included on a proportionate consolidation basis.

No significant tenant departures were communicated to Icade in Q1 2022. In addition, thanks to continued active crisis management with our tenants, at the end of March 2022 more than 75% of 2022 break options were expected to be prevented or covered by lease renewals2.

The weighted average unexpired lease term to first break stood at 4.3 years.

The rent collection rate remained high at 99% over a rolling 12-month period.

Investments as of March 31, 2022

(in millions of euros, on a proportionate	Projects under development
consolidation basis)	and off-plan sales	Operational capex	Total
Offices	12.6	26.3	38.9
Business parks	8.8	2.5	11.3
OFFICES AND BUSINESS PARKS	21.4	28.7	50.2
Other assets	0.0	0.4	0.4
OFFICE PROPERTY INVESTMENT	21.4	29.1	50.5

A table detailing this information by type of investment on a full consolidation basis is appended hereto.

Investments in Q1 2022 amounted to €50.5m on a proportionate consolidation basis, stable compared to Q1 2021 (€52.5m). Noteworthy among them were:

•  Investments in the development pipeline for €21.4m, which mainly related to the Jump project (Portes de Paris) for around €9m and

  the Athletes Village (Saint-Ouen) for around €5m;

•  Operational capex of €29m related to maintenance work and improvements in technical and environmental quality.

Excellent progress on 2022 disposal plan

The Office Property Investment Division continued the implementation of its asset rotation plan with the disposal of two new mature assets in Q1 2022:

•  Completion of the sale of the Millénaire 4 building in the Millénaire business park (Paris, 19th district) for €186m, following the bilateral sales agreement signed with Générale Continentale Investissements and BlackRock Real Assets on December 21, 2021;

  •  Through the sale of the 29,000-sq.m Millénaire 1 building in April 2021 and the Millénaire 2 and 3 buildings in recent years in addition to this transaction, Icade has completed the redevelopment of the Millénaire business park and demonstrated its ability to transform its land bank into genuine neighbourhoods. The sales in the Millénaire business park total nearly €740m and have generated capital gains of over €260m, implying an equity IRR of c. 10%.

•  Signing of a preliminary agreement to sell the Gambetta building (Paris, 20th district) to a leading French institutional investor for €219m. Subject to the customary conditions precedent being satisfied, the sale will take place in June 2022.

2 To date, over 75% of leases with a break option in 2022 have been renewed early or are likely to be renewed according to the Asset Management Department's estimates.

These two disposals demonstrate institutional investors' strong appetite for mature assets and the appeal of Icade's office property portfolio.

With these transactions, the Office Property Investment Division has completed over two thirds of its 2022 asset disposal plan.

In addition, pursuant to the agreements signed in 2017, Icade and Covivio exited their Quai 8.2 co-development project in Bordeaux on January 18, 2022 by exchanging two assets, namely Orianz and FactorE in Bordeaux-Euratlantique. This transaction has resulted in Icade acquiring 100% of Orianz and Covivio 100% of FactorE.

1.2 HEALTHCARE PROPERTY INVESTMENT: CONTINUED STRONG GROWTH

Gross rental income

Leasing

(in millions of euros, on a proportionate consolidation basis)

03/31/2021

Acute care Medium-term care Long-term care HEALTHCARE PROPERTY INVESTMENT incl. France incl. international

36.6

3.0

5.8

Asset acquisitions 2.7 0.3 1.8

Asset disposals - - -New builds /activity and index-linkedTotal changeRefurbishments rent reviews

03/31/2022

(in %)Like-for-like change (in %)

0.6 0.6

40.5

10.7% 1.8%

0.2 0.1

3.6

18.0% 2.2%

- 0.3

8.0

36.9% 3.8%

45.5

4.8

-

0.8

1.0

14.6% 2.1%

42.2

3.3

1.5 3.3

- -0.8 0.7

- 0.3

45.1 7.0

7.0% 1.6%

110.2% 7.2%

HEALTHCARE PROPERTY INVESTMENT (full consolidation basis)

78.1

8.1

1.4

1.6

89.1

14.2% 2.0%

-

Gross rental income from Healthcare Property Investment amounted to €52.1m on a proportionate consolidation basis in Q1 2022, up +14.6% on a reported basis (+€6.6m), mainly driven by 2021 acquisitions.

On a like-for-like basis, gross rental income grew by +2.1%, with index-linked rent reviews in early 2022 accounting for +1.4% of this growth.

•  France: gross rental income of €45.1m on a proportionate consolidation basis (€77.4m on a full consolidation basis), up +7.0% thanks to acquisitions and developments in 2021 (private not-for-profit hospital in Grenoble, Grand Narbonne private hospital, Le Parc polyclinic in Caen, Les Buissonnets PAC facility in Olivet). On a like-for-like basis, growth was +1.6%, of which index-linked rent reviews accounted for +1.2%.

•  International: gross rental income soared by more than 100% to almost €7m (€11.8m on a full consolidation basis) due to the acquisitions made in 2021 in Portugal, Italy and Germany. On a like-for-like basis, growth was +7.2%, of which index-linked rent reviews accounted for +3.1%.

The Healthcare Property Investment Division's rental income can be broken down by asset type as follows: acute care (private hospitals and other healthcare facilities) accounts for 78%, medium-term care (post-acute care and mental health facilities) for 7% and long-term care (nursing homes) for 15%.

Regarding the impact of rising indices, as with the Office Property Investment Division, the Healthcare Property Investment Division's leases are linked to indices with a strong inflation component.

As of March 31, 2022, nearly 55% of the division's annualised IFRS rental income was linked to the ILC (French Commercial Rent Index), with the remainder linked to composite indices or French inflation-linked indices.

Based on the index levels known as of the end of March 2022, the impact of index-linked rent reviews for the year as a whole is estimated at around +3%, mostly concentrated in H2 (70% of index-linked rent reviews in France).

The financial occupancy rate of the portfolio as of March 31, 2022 remained unchanged at 100%.

The WAULT to first break stood at 8.0 years, broadly stable compared to December 31, 2021.

•  On average, it stood at 6.9 years for assets located in France and 15.4 years for assets located outside France.

Financial occupancy rate

Weighted average unexpired lease term

(in %)

(in years)

Asset classes

03/31/2022

12/31/2021

03/31/2022

12/31/2021

France International	100.0% 100.0%	6.9 15.4	7.1 15.3
HEALTHCARE PROPERTY INVESTMENT	100.0%	8.0	8.2

Investments as of March 31, 2022:

(in millions of euros, on a proportionate consolidation basis)

Asset acquisitionsProjects under development

Other capex

Total

France International

HEALTHCARE PROPERTY INVESTMENT

-	4.9	4.6	9.5
21.0	-	0.1	21.1
21.0	4.9	4.8	30.7

A table detailing this information by type of investment on a full consolidation basis is appended hereto.

After a very significant volume of acquisitions in 2021, investment activity in Q1 2022 was in line with Q1 2021 at €31m on a proportionate consolidation basis (€52m on a full consolidation basis):

•  International acquisitions worth €21m (€35m on a full consolidation basis):

  •  Acquisition of a private hospital in Rapallo (Italy) for €13m on a proportionate consolidation basis as part of the preliminary agreement signed with Gruppo Villa Maria in 2021 to acquire three private hospitals in 2022;

  •  A further investment in Spain in January 2022 with the acquisition of an eye clinic in Madrid operated by the Miranza Group for €8m on a proportionate consolidation basis.

•  €5m invested in development projects (€8m on a full consolidation basis);

•  "Other capex" for €5m related to maintenance work on assets and improvements in their technical and environmental quality.

As a reminder, the Healthcare Property Investment Division's investment plan for 2021-2025 amounts to €3bn, i.e. an average annual investment of €600m. This plan had already been more than 30% completed by the end of March 2022.

To date, the Healthcare Property Investment Division has a portfolio of investment projects under study worth over €1bn, including several projects under an exclusivity agreement.

Disposals:

On March 29, 2022, Icade Santé signed a bilateral preliminary agreement with a French institutional investor to sell the real estate of four healthcare facilities in France for €78m (net selling price). The portfolio in question covers roughly 26,000 sq.m and its sale will be completed by June 30, 2022, once the customary conditions precedent have been met.

A first for Icade Santé, this sale of multiple assets is part of its portfolio optimisation strategy.

The sale price, nearly 10% above the most recent appraisal values, reflects the appeal of the private hospital asset class in France, which currently represents nearly 80% of Icade's Healthcare Property Investment portfolio.

2. PROPERTY DEVELOPMENT DIVISION

2.1 SALES MOMENTUM REMAINS STRONG IN Q1 2022

Positive operational indicators for the residential and office segments

Residential segment:

•  After reaching record levels in 2021, housing orders once again showed growth, increasing by +5.3% in volume terms (1,382 units) on the back of strong momentum in units sold individually (+12%). In value terms, housing orders increased by +28%, driven by the Paris region.

  •  The average price of orders per sq.m in Q1 2022 was almost €5,200/sq.m vs. €4,230/sq.m in Q1 2021 (significant increase in the

    Paris region).

  •  Orders by institutional investors during the period represented 41% of the total vs. 50% in Q1 2021. The market was also buoyed by individual buyers as their share of total orders increased: +6.2 pps for individual investors to 31% and +3.4 pps for owner-occupier buyers to 28%.

•  Sales and construction starts (work orders) saw sharp rises of +11.8% and +48.3%, respectively, in value terms. The impact of the geopolitical environment on the price of certain construction materials has drawn out negotiations for construction contracts.