Icade Sa Ord

Welcome to the ECOD first quarter 2026 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 the speakers. Nicola Jolie, CEO, and Bruno Valenting, CFO. Please go ahead.

Good morning, everyone, and thank you for joining us today. Bruno, Valentin, and I are very pleased to present ICAD's first quarter 2026 trading update. As usual, the presentation will be followed by a Q&A session. So let's start with slide 5 and the key messages for the quarter. First quarter was marked by the successful completion of the disposal of Marignan Building on the Champs-Élysées for 402 million euros. This operation is fully aligned with our reshaped roadmap as it reflects our disciplined approach to crystallize value while maintaining strong balance sheets. In particular, this transaction had a positive impact of around 3 percentage points on the LTV ratio and on the group's liquidity position that increased to around 2.8 billion euros, enabling us to anticipate upcoming maturity with confidence. In property investment, living activity was broadly in line with our expectations, with around 25,000 square meters found all renewed during the quarter. Rental income was down 2.1% on a life-for-life basis, and the financial occupancy rate stood at 85%, reflecting expected departures at the beginning of the year. In property development, the year started well, but activity slowed in March, especially in the individual segments in a more volatile environment. Based on the information available today, we confirm our 2026 guidance, while remaining attentive to the evolution of the conflict in the Middle East and the further impact on the group activities. So let's now turn to slide 6. As I mentioned, we completed the sale of the Marignan building early April for €400 million. This asset was acquired 20 years ago, and we were able to create value through building a project, evicting tenants, and obtaining the permit. We took advantage of an increased market interest for this type of value-add asset to conduct a highly competitive bidding process, which allowed us to achieve 20% premium above NAV as of December 2024. The disposal of these assets fully illustrates the group's ability to create value through active asset management and strategic portfolio rotation. Let's now move to slide 8 and review the performance of property investment. In a leasing market that remains softer, with stake-ups in the previous region down 15% year-on-year, ECAD signed or renewed around 25,000 square meters in the first quarter. This leasing we present 7.3 million euros of annual headline rental income with a road of 5.9 years. One of the key achievements of the quarter was the renewal of around 13,000 square meters with the French Ministry of the Interior in Le Prérial building in Nanterre. This major transaction once again confirms the attractiveness of La Défense and Pays Défenseria for our large clients. The financial occupancy rates queued at 85% as of March 31st, 2026, compared to 86.8% at the end of 2025. This trend was expected and mainly reflects departures that materialized at the beginning of the year. The financial occupancy rates remained the top priority for our asset management teams and should gradually improve over the course of 2026. Let's now move to slide 9 for property development. The first quarter showed next performance across the property development business. At the end of March, total orders stood at 727 units, up 4% year-on-year in volume terms, but decreased by 21% in value terms at 165 million euros. In the individual segments, orders were down 10% year-on-year in volume terms. This reflects a marked slowdown in March as the deterioration in the international environment widened market sentiment and led to a more cautious stance from customers. On the institutional side, investors remained active. Indeed, bulk orders were up 27% year-on-year in volume terms, although first quarter order values were wiped down by a 10% product mix that is not representative of expected full-year trends. I will now hand over to Bruno for the review of first quarter earnings.

Thank you, Nicolas. Let's move to slide 11. Total IFRS consolidated revenue came in at 278 million euros in the first quarter, down 40.7% year-on-year. In property investment, gross relative income decreased by 3.3% year-on-year. In property development, revenue fell by 19.3%, reflecting lower activity in the eventual and commercial development, along with the base effect from the disposal of the public asset completed in Q1 2025. Let's now turn to slide 12, for a closer look at retail income. Gross retail income from property investment amounting to 91 million euros compared to 94 million euros at March 31, 2035. On a lifelong basis, it declined by 2.1% mainly due to expected cement departure and gradual systemization of negative aversion on the new walls. These trends were tapped the offset by positive effects of indexation counting for plus 1.1%. On phase 13, economic revenue from property development was 11.4% lower in Q1 2026 versus 2025 data adjusted from the sale of subject assets accounting for circa 20 million euros. Residential revenue was the 9% year-on-year, reflecting a lower backlog for previous years. Revenue for the commercial segment fell by 31% due to the absence of every significant new project secured. And we now head back to Nicolas for the outlook and conclusion. Thank you Bruno.