Icade Owns 88% of Silic before the Reopening of the Offer

Regulatory News :

Activity as at 30 June 2013

Icade’s (Paris:ICAD) revenue was 695.8 million euros at 30 June 2013 compared with 683.3 million euros at 30 June 2012 (+ 1.8 %). This change is notably due to a significant increase in the rental revenue from strategic and alternative assets of 8.5% primarily due to effects of change of scope (acquisitions of healthcare properties and delivery of office properties), as well as leasing which occurred in 2012 and 2013 (1.8% increase in rent on a like-for-like basis), and an increase in revenue from the Development Division (+2.3%) thanks to commercial property development projects launched in 2012.

Icade’s assets portfolio is now made up of 94% strategic assets (offices and business parks) and alternative assets (healthcare). Icade invested 195 million euros in these two asset classes in the 1^st half of 2013, mainly in Healthcare (118 million euros) and disposed of 264 million euros of non-strategic assets (housing, warehouses and Germany) over the same period.

In July 2013, Icade delivered the EQHO Tower (79,000m²) in La Défense. Restructuring of the tower, which cost more than 300 million euros, positions the EQHO Tower at an equivalent level of services and environmental performance to the latest generation towers in La Défense.

As part of its policy to rotate its strategic assets, in June 2013 Icade signed a bilateral undertaking to sell the La Factory building in Boulogne-Billancourt with a leading investor, for 103 million euros net sale price.

During the 1^st half of 2013, Icade Santé acquired three new clinics and an extension for 111 million euros. These new investments form part of the development strategy that Icade is operating in the healthcare sector (building up an attractive portfolio in terms of net yield with several operators and therefore ensure sufficient diversification to limit rental risk) and complete its nationwide coverage. During the 1^st half of 2013, Icade raised 110 million euros from a French institutional investor, by increasing the reserved capital increase, to enable the continued development of its healthcare business.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) was 188.4 million euros at 30 June 2013 compared with 180.1 million euros at 30 June 2012, an increase of 4.5%, mainly due to efficient rental management, the effect of acquisitions and the reduction in intra-Group transactions between the Development and Property Investment Divisions. These factors resulted in a 4% increase in the Property Investment Division’s EBITDA. The 6.1% decrease in the Development Division’s EBITDA is mainly the result of a reduction in the Residential Property Development business’s EBITDA following the end of the "Scellier” scheme and smaller margins on secure block sales.

Net current cash flow stood at 123.5 million euros as on 30 June 2013, up 9.3% compared with 30 June 2012 (113.0 million euros). This change is mainly due to the growth of the Commercial Property Investment business related to commercial successes in 2012 and the high proportion of investment volumes in the healthcare sector in the 2nd half of 2012 (310 million euros) and is partially mitigated by losses of rental revenue as a result of the disposals carried out in 2012 and 2013. Restated for minority shareholders of Icade Santé, the net current cash flow stands at 107.9 million euros as on 30 June 2013 (2.08 euros per share), stable compared with the restated figure for 30 June 2012 (+0.2%).

Net profit group share was 44.7 million euros compared with 81.5 million euros on 30 June 2012, due in particular to the posting of provisions linked to the adjustment in asset values, in particular the value of the EQHO Tower.

Icade enjoys a sound financial structure with LTV stable and below 40%, favourable average maturity and cost of debt (4.3 years and 3.84% respectively) and large amount of undrawn facilities (870 million euros) covering 18 months of debt repayments in capital and interest.

The value of assets on 30 June 2013 is 6,746 million euros, down 0.3% on a like-for-like basis. Excluding the EQHO Tower, the change in value on a like-for-like basis is stable (+0.1%). On 30 June 2013, the adjusted EPRA triple net asset value came to 4,079.5 million euros or 78.9 euros per share, i.e. a 2.2% fall compared with 31 December 2012. The restatement of the dividend of 3.64 euros per share, paid in April 2013, has shown a 2.3% increase in the EPRA triple net asset value compared with 31 December, 2012.

Acquisition of Silic and outlook

The public offering initiated by Icade for Silic has been a great success. Following payment/delivery of the initial offer, Icade owns 88% of Silic’s capital and voting rights. The offer will be reopened for 10 days of negotiation between 22 July 2013 and 2 August 2013 inclusive. The results of the re-opened offer will be published by 9 August 2013 at the latest and payment-delivery will occur on 12 August 2013.

The strategy of the combined entity will focus on securing recurring cash-flows drawing on more than 10 billion euros in assets, 69% of which is offices and business parks located in the heart of Greater Paris and benefiting from recent or planned public transport development in four main areas (Roissy, Paris Nord Est, Orly and La Défense/Nanterre) and comprising buildings in line with tenants’ expectations both in terms of their technical and environmental characteristics and their levels of rent.

The new entity enjoys very good prospects with a solid rental basis, annual rents of 570 million euros, a preserved financial structure, a well in-hand pipeline and nearly 2 million m² of buildable land reserves. Developments will be carried out based on changes in demand and arbitrage of mature and/or non-strategic assets by drawing on teams with recognised expertise.

Over the coming years, Icade therefore intends to continue improving its net current cash-flow, drawing on the strengths of its model. A perfect example of this is acquisition of Silic, which will enable the combined entity to position itself as a leader in French commercial property investment.

Coming events:
Revenues for Q3 2012: 24 October 2013
2013 annual results: 19 February 2014

The half-yearly financial report of 30 June 2013 has been submitted to the French financial markets authority (AMF) and a full version can be found on the company’s Internet site: http://www.icade.fr/finance/resultats-publications/rapport-annuel-document-reference-rapport-financier-semestriel

About Icade:
Icade is a listed real-estate company, a subsidiary of Caisse des Depôts an investor, developer and service provider in private and public property. Its expertise in its various business lines enables Icade to provide its clients with tailored solutions and have comprehensive involvement in current real-estate issues.
On 31 December 2012, Icade posted consolidated revenue of 1499.3 million euros and had net current cash flow of 251.4 million euros. As of 30 June 2013, its EPRA triple net asset value was 4,079.5 million euros or 78.9 euros per share.

The half-year consolidated financial statements have been subject to a limited examination by the auditors.
This press release does not constitute an offer, or a solicitation of an offer to sell or exchange any shares or a recommendation to subscribe, buy or sell any Icade shares. The distribution of this press release may be limited in certain countries by legislation or regulations. Therefore persons who come into possession of this press release are required to obtain information about these restrictions and respect them. To the fullest extent permitted by the applicable law, Icade disclaims any responsibility or liability for the violation of any such restrictions by any person.

Serge Grzybowski and Nathalie Palladitcheff will be presenting the half-year results for 2012 to analysts on 25 July 2013 at 8.30am in the EQHO TOWER.
The slide show, with commentary, will be available through the following links:
In French: http://www.icade.fr/finance/resultats-publications/presentations-financieres
In English: http://www.icade.fr/en/finance/results-and-publications/financial-presentations

For participants wishing to hear the conference in French or English, we advise you to register in advance via the following links:
In French: https://eventreg2.conferencing.com/webportal3/reg.html?Acc=442938&Conf=212503
In English: https://eventreg2.conferencing.com/webportal3/reg.html?Acc=442938&Conf=212504

Each participant will receive a participating access code, conference access code and the telephone number to call as well as instructions for joining the conference.

Registration in French and in English for this presentation will be available for 10 days from 25 July 2013 to midnight on 5 August 2013.

To hear the information again, the phone numbers are:
+33 (0) 170993529 – France Paris – access code: 934536 French version
020 7031 4064 – UK London – access code: 2893472 English version