Icade Sa Ord

Welcome to the ECOD nine-month trading update 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. Now, I will hand the conference over to Nicolas Jolie, CEO. Please go ahead.

Good morning. Nicolas Jolie speaking. Thank you all for being here today on this call. Along with Bruno Valentin, we are delighted to present this morning ECAD 2025 nine months update. This presentation will be, of course, followed by a Q&A session. Let's move to slide five for an overview of the main messages. To date, ECAD completed or signed preliminary agreements for €430 million in disposals. This includes a reduction of the group exposure to healthcare activities by circa €210 million and the sale of mature or non-strategic assets for €220 million. The investment division reported a very good rental activity with circa 166,000 square meters signed or renewed to date. This volume was boosted in October by the renewal of 41,000 square meters in eco-building with KPMG. For several months, the financial occupancy rate has improved, notably for well-positioned offices and light industrial assets. On the property development front, H1 trends are continuing into H2. By the end of September, ECAB recorded stable order volumes with a total value decrease of minus 5%. Lastly, we reaffirm today our 2025 Group Net Current Cash Flow Guidance between 3.40 and 3.60 euros per share. On slides 6 and 7, we focus on the good progress made on disposals. Early August, ICAD signed an agreement with BNP-PRM to sell its state in a diversified portfolio of 23 healthcare assets, accounting for circa 15% of its exposure to the healthcare real estate sector. This transaction with one of France's leading real estate investment management firms confirms the quality of Elsker portfolio in Italy. The sales represents circa 173 million euros for ICAD in line with the asset values included in the group NAD as of June 30th, 2025. The proceeds from the sale will repay the shareholder loan from ICAD to IHESKER Europe almost in full. The deal is scheduled to close at the end of the year. In addition, year-to-date, ICANN reduced its exposure to Premier healthcare by €36 million through two smaller transactions completed in the first half of 2025. The proxied investment division also secured €220 million in disposal of non-strategic or mature assets. Since the out-year results, preliminary agreements were signed on additional assets for €115 million, namely an office asset covering 1,800 square meters on Avenue Charles de Gaulle in Neuilly-sur-Seine for €17 million, the remainder of the B&B hotel portfolio for circa €30 million, and the entire Mauvin Business Park in the north of Paris, representing 21,000 square meters for €69 million. This successful transaction is the direct result of the hard work of our asset management teams who managed to bring the occupancy rate of this park up to 100% by the end of June. All of these transactions represented an average yield of about 6.1% and were completed at prices above the net asset value as of the end of December 2024. Let's look now at the performance of investment division on slide 9. Over the first nine months of the year, the rental market remained challenging, with take-up in the greater Paris region down 8% year-on-year. The subdued economic environment and French political instability continue to wire corporate real estate decisions. As we observed in the previous month, there has been still, in Q3 2025, a lack of new leases signed for spaces over 5,000 sqm. In this environment, ICAD teams delivered a very solid performance with around 125 sqm signed or renewed by the end of September. These agreements represent an annual rental income of 29 million euros with a world of 6.8 years. These achievements demonstrate our ability to secure large leases over 5,000 square meters, and to support our clients over many years, like ClubMed, who has been our tenant within Pont-Franc for 30 years. It also shows our expertise in creating spaces tailored to our client needs, as we have done with Soprasteria in the Rangis Business Park. The total financial occupancy rate stood at 84% as of September 30, 2025. In the west position of his segment, the financial occupancy rates stood at 88.8%, up plus 0.08 points compared to the end of December 2024. Following in particular, the lease is signed for more than 3,000 square meters in the I-5 building and nearly 2,000 square meters in the Echo Tower. After including the CD413 lease in the Pulse building, scheduled to start in Q4 2025, the financial occupancy rate of work position offices stood at over 90%. In the light industrial segment, the occupancy rate stood at 19.4% plus 1.5 points versus December 2024, thanks to leases signed in the Mauvin and Port-de-Paris business tax. In addition to the 125,000 square meters, we are very pleased to announce that we renewed in October the lease with KPMG for approximately 41,000 square meters. This lease has a firm commitment until 2031. In total, ICAD has signed or renewed more than 60,000 square meters since the beginning of 2025 in the La Défense Paris Défenseria, which offers significantly lower rents than Paris CBD, while still being very well served by public transport. Let's now move on to the operational performance of the development business line on slide 11. The trends have remained consistent with the first half of the year. The development division recorded a stable orders volume with 2,815 units totaling €722 million down by 5%. Activity in the individual segment declined by 11% in volume in line with the overall market. This decline occurred in an unfavorable tax environment marked by the end of the peanut tax scheme, which led to a sharp contraction in individual investor activity, i.e. minus 43% year-on-year. The momentum was more positive for owner-occupier orders, which increased by 14%, supported by favorable measures promoting home ownership. Work orders showed an 11% increase in volume but a 6% decrease in value. This discrepancy between volume and value changes is explained by a temporary shift in the product mix. Institutional investors continue to support business activity as they accounted for 51% of orders in volume terms year-to-date. It is also worth noting that institutional investor activity has historically been stronger in the second half of the year with circa 60% of bulk orders made in Q4 in both 2023 and 2024. I now turn the floor over to Bruno to present the change in revenues. Thank you, Nicolas.

Let's move to slide 14, which represents the trend in consolidated revenue as of September 13, 2025. It has total IFRS revenue is down by 9%, due to lower revenue from both the property investment and the development divisions. Let's dive into the financial performance and property investment division in slide 14. In line with the figures reported in the first half of the year, gross return income decreased by 6% to 263 million euros, mainly due to tenant departures last year and the gradual crystallization of negative reduction and renewals. These effects were partially offset by the positive impact of indexation, which has gradually moderated but still contributed plus 3.2% and by early termination fees mainly related to the 2B reposition offices. Move to slide 15. On property development side, economic revenue amounted to 729 million euros as of September 13, 2025, done by 12% year-on-year. This decline results, firstly, from a drop in commercial segment with revenue done by 42% year-on-year due to the completion of major project at the end coupled with the low volume of new contracts signed in 2025, and secondly, from the progressive decline in residential backlog. I will hand over to Nicolas for the conclusion.