Icade Aktie

Welcome to the Icade 2026 Half Year Results Presentation Conference Call. [Operator Instructions]. Now I will hand the conference over to the speakers. Nicolas Joly, CEO; and Bruno Valentin, CFO. Please go ahead.

Good morning, everyone, and thank you for joining us today. With Bruno Valentin, I'm pleased to present Icade's 2026 half year results. I will begin with the key highlights and strategic developments of the first half. Bruno will then take you through financial results and the balance sheet in more detail. I will come back at the end with our outlook for 2026 before we open the floor for questions.

So let me start with the main takeaways from the first half of 2026. The first key message is the continued disciplined execution of our disposal plan. We completed the sale of the Marin building on the Chill for EUR 402 million. In Healthcare, an agreement has been signed relating to the disposal of the Portuguese portfolio, representing an exposure of around EUR 75 million for Icade.

The second key message is the new step taken with Eco. Last week, we announced the acquisition of the remaining 49% minority stake in the tower, allowing us to regain full ownership of this landmark asset in Madero. This transaction follows a significant asset management effort and comes after the tower has been brought to full occupancy. The third message is the resilience of our operating performance.

In Property Investment, close to 94,000 square meters were signed or renewed in the first half and the financial occupancy rate improved to 85.9% with office occupancy now close to 90%. In Property Development, after a softer start to the year, activity recovered well in the second quarter. Residential orders reached almost 2,400 units in the first half, up 12% in volume and 6% in value year-on-year. The fourth message is the strength of our financial structure. We continue to benefit from a high level of liquidity, which was further reinforced during the period through a new EUR 150 million bond issue due in 2035 and the renewal of EUR 450 million of revolving credit facility.

And finally, we confirm our 2026 guidance with group net current cash flow expected between EUR 2.90 and EUR 3.10 per share, while 2026 should mark a low point for strategic cash flows.

Turning now to the key figures for the first half. Group net current cash flow came in at EUR 1.80 per share compared with EUR 2.03 per share in the first half of 2025, which is consistent with our full year guidance. Net current cash flow from strategic operations amounted to EUR 1.15 per share versus EUR 1.44 per share last year, mainly reflecting lower net rental income in property investment and lower margins in commercial property development. NAV NTA per share stood at EUR 49.7, down 6.9% compared with year-end 2025, mainly due to the decline in property values and the distribution paid fully in June. At the same time, the balance sheet remained sound.

LTV, including duties improved slightly to 39% from 79.6% at year-end 2025, while net debt to EBITDA remained broadly stable at 9.2x. As expected, the average cost of debt increased moderately to 1.85%, reflecting the bond issues completed in 2025 and 2026. This increase remains controlled, and we still target around 2% by year-end. At business line level in Property Investment, gross rental income amounted to EUR 170 million, down 1.1% like-for-like.

The portfolio value stood at EUR 5.6 billion compared with EUR 6.1 billion at year-end 2025, reflecting both disposals and a like-for-like value decline of 3.1%. EPRA net initial yield stood at 5.4%. In Property Development, economic revenue reached EUR 473 million, down 5.5% year-on-year, mainly due to the expected slowdown in commercial projects. The current economic operating margin came in at 1.9% versus 2.3% in the first half 2025. This reflects the lower contribution from commercial activity, which supported margins last year, while residential margins are gradually normalizing. Residential orders totaled 2,368 units, up year-on-year.

Let me now come back to disposals and capital allocation, which remains a central pillar of our strategy. Our approach remains highly disciplined. We execute disposal when pricing conditions are attractive with a clear objective, crystallizing value, reinforcing the balance sheet and redeploying capital towards higher return opportunities. As you know, we completed in H1 the disposal of Marion for EUR 402 million after a competitive process, crystallizing a value of around EUR 33,000 per square meter, more than 20% above the December 2024 NAV.

Combined with previous disposal, we have now achieved more than half of the EUR 1.3 billion disposal target set for property investment over the 2024-2028 strategic plan. Around EUR 600 million remain to be executed over the remainder of the plan.

In Healthcare, we are happy to announce further progress. Primer Healthcare and Nash, the International SPV have indeed signed an agreement for the disposal of the Portuguese portfolio. Icade's exposure amounts to EUR 75 million. After this transaction and the steps already completed, around EUR 900 million of health care exposure remain to be disposed of by the end of the plan.

Let's now turn back to Marina, which illustrates our disciplined approach to capital allocation. By selling the asset, we avoided refinancing at approximately 4.5% in the current interest rate environment. Over time, we will redeploy the proceeds into higher return investment opportunities, particularly in attractive growth sectors such as data centers and student housing. Let me now turn to the Portuguese Healthcare transaction on Page 12. The portfolio comprises 4 assets located in Lisbon, Porto, Albufera and Lag. The portfolio is valued at EUR 186 million, in line with the value reflected in Icade's NAV as of December 2025. Icade's exposure amounts to around EUR 75 million, although the final allocation of proceeds will be specified at a later stage. Closing is expected in the second half of 2026.

To be noted that this transaction will have no impact on 2026 group net current cash flow as the contribution from nonstrategic operations has already been secured through the dividend received from Premier Healthcare in the first half.

Moving now to operating performance in Part Investments on Page 14. We signed or renewed close to 94,000 square meters, representing EUR 32 million in annual headline rent with an average firm commitment of 8.7 years. Most of these transactions were completed in La Défense and Per Defense area, which continue to demonstrate strong attractiveness for our occupiers, combining quality asset, accessibility and competitive rental conditions.

Our recent leasing performance is translating into improved operating metrics. At end June, the financial occupancy rate stood at 85.9%, up 0.9 points versus March, while office occupancy is now close to 90%. Page 15 highlights the renewal of our main 2027 lease expiry at Bnt in Mon -- we successfully renewed 100% of the space, representing 58,000 square meters on a new 9-year firm lease with AXA. This is a significant achievement, both in scale and in duration, and it illustrates the quality of the asset, its accessibility and the strength of our long-term tenant relationships. As a result, our teams have continued to improve the profile of our future lease maturities, as shown on Page 16.

Our WALT increased by 20% to 4 years, and we have significantly improved visibility on our 2027 lease expiries. We indeed currently expect around 75% of the leases expiring in 2027 to stay, although this will, of course, involve crystallizing some negative reversion. Talking about that, potential reversion on the overall portfolio now stands at minus 7.1% compared with the minus 9.7% at the end of June -- at the end of 2025, sorry. After factoring in the renewal of the major KPMG and AXA leases, potential negative reversion narrows to minus 4.4%. Slide 17 brings me to ECO.

In July, we took advantage of a good opportunity to acquire the remaining 49% minority stake in the tower. We now own 100% of Eco, an iconic asset in La Défense, offering 79,000 square meters of office space now fully let following the KPMG lease renewal and the lease signed with Goren Prefecture. From a financial perspective, the acquisition was completed at a yield of over 8% and is accretive to the group net current cash flow. The asset was already fully consolidated in the group's financial statement prior to the acquisition.

Turning now to Property Development on Slide 18. The first half performance in residential segment was satisfactory despite market that remains at historically low levels. Individual buyers also showed solid momentum, up 6% in volume and 5% in value despite the market that remains sharply down by around 15% in volume. This resilience was complemented by strong bulk orders to institutional investors, which increased by 60% in volume and close to 9% in value. They accounted for 60% of H1 total reservation in volume terms.

The Slide 19 gives an outlook on future activity. Despite the still constrained environment due to municipal election, Icade was able to rely on permits obtained at the end of 2025 to accelerate construction starts, which were up 63% year-on-year. These new projects display a high level of pre-commercialization above 80%. As of end of June 2026, total backlog stood at EUR 1.6 billion, offering around 20 months of revenue visibility.

Residential backlog remains stable and continues to support the business. As regards margins, we are seeing a gradual improvement in the quality of the portfolio. Operation with restored margin represented 37% of revenue in the first half compared with 18% in 2025. This confirms the ongoing rebalancing of the portfolio and supports our expectation of a return to breakeven by year-end.

Let me now turn to Slide 22 and 23 to highlight some of our recent achievements in terms of new partnerships that will support future growth while remaining disciplined on capital. The first partnership targets the student accommodation segment. In July 2026, we entered into a strategic partnership with the Caisse de Dépôt through a dedicated investment vehicle owned 51% by Icade and 29% by B.

Over an initial 3-year investment period of around EUR 240 million is expected to be deployed with a target of around 2,000 beds. Two first projects have been already launched in I and Nova with delivery expected in 2028. We also launched Evolution together with Bquef.Vic aims to convert vacant office buildings into residential developments, primarily in the Paris region, where the potential addressable market is significant at around 6 million square meters. At this stage, the partnership includes a 3-year investment period with the ambition to deliver 50,000 to 60,000 square meters of refurbished space meeting high environmental standards.

And with that, I'll now hand over to Bruno to go through the financial results in more detail.

Thank you, Nicolas, and good morning, everyone. Let me start with a focus on net current cash flow from strategic operations. As Nicolas amounting to EUR 1.15 per share in the first half of 2026, EUR 1.44 per share on 1 year before, but fully in line with what we had anticipated.

The main drivers are the follow: First, net rental income in property had a negative impact of EUR 0.13 per share mainly due to tenant and negative. Second, property development contributed EUR 0.70 per share less than last year, reflecting the low point in commercial activity despite the gradual recovery in residential finance expense had a negative impact of EUR 0.05 per share as the cost of debt continued to normalize. On the positive side, lower operating costs made a positive contribution.

Looking at rental income from specifically on Page 27, gross income declined from EUR 18.3 million to EUR 17.2 million 4.5% on a reported basis and 1.1% like-for-like. Compared with 2025, the like-for-like trend is normalizing. -- and still had a negative effect, but the pressure is gradually easing relative to last year. Indexation as expected a limited positive impact.

Let's move on Page 28. In Property Development, revenue and margin trends differ significantly across segments. Residential is improving both in terms of revenue contribution and current economic margin. By contrast, the sharp decline in commercial development continues to weigh on volume and fully explains the decrease in revenue. Margin evolution is also impacted by one-off base effect deliveries supported margin in the first half of 2025. Overall, residential margin are progressively improving in line with the ongoing rebalancing of the portfolio. Financial discipline remains a key priority throughout the first half.

As illustrated on Page 29, we continued to reduce the cost base with a EUR 6.5 million decrease in cost in half 1 2026. This improvement were driven by procurement discipline, process optimization and headcount control. Importantly, the first half reduction does not yet include the benefits from the voluntary redundancy plan, which should start contributing for the second half onward and support our savings trajectory.

Turning to finance cost on Page 30. The evolution is fully in line with expectations. The average cost of debt increased gradually to 1.85% with a target of around 2% by year-end. We also maintained strong visibility with 97% of projected debt hedged for the second half of 2026 and more than 85% until the end of 2028. Interest coverage is normalizing after previously high levels but remains solid. Moving now to the balance sheet. The property investment portfolio was valued at EUR 5.6 billion, excluding duty at end June, down 8.4% on a reported basis compared with December 2025. This includes disposal, not [ Marin ] and continuing investment in development CapEx.

On a like-for-like basis, the portfolio declined by 3.1% in the first half, mainly driven by higher market rates. EPRA net initial yield stood at 5.4%, while the top-up yield stood at 6.3%. EPRA NTA per share came to EUR 49.7 at June, down 6.9% compared with year-end. This change is mainly explained by the lower valuation of the property investment portfolio as well as the 2025 distribution fully paid during the period.

Turning to financing as shown on Page 34. Icade maintained a very strong liquidity position of EUR 2.5 billion at June 2026 covering debt maturities until 2030. During the first half, we issued a new EUR 150 million green bond maturity in 2035 and renewed EUR 450 million of revolving credit facility with an average maturity of 5 years. This leaves the group with a robust liquidity profile and strong flexibility to manage upcoming maturities.

With that, I will hand over to Nicolas for the conclusion and 2026 outlook.

Many thanks, Bruno. So based on our first half performance and our expectation for the second half, we confirm our full year guidance. Group net current cash flow is expected to be between EUR 2.90 and EUR 3.10 per share. This includes between EUR 2.25 and EUR 2.45 per share from strategic operations, which we continue to view as a low point and around EUR 0.65 per share from discontinuing operations already secured.

In the real estate environment still marked by persistent uncertainties around the pace of recovery and market development, we remain cautious and fully focused on execution. Subject to no further major deterioration, we expect in the second half an improvement in property development margins and a reduction in overhead, which should more than offset the expected deterioration in the financial results.

To conclude, the environment remains clearly challenging. However, the first half once again demonstrated our ability to execute with discipline and consistency. It highlighted our capacity to allocate capital efficiently, delivered solid operating performance across both Property Investment and Property Development and maintain a robust financial structure. I would like to sincerely thank all Icade teams for their commitment and hard work in delivering these results in a demanding environment.

And with that, Bruno and I are now ready to take your questions. Thank you very much.

[Operator Instructions]. The next question comes from Stéphane Afonso from Jefferies.

So the first one on asset valuation. Could you please elaborate a bit more on the main assumptions used by your appraisal? And we have seen in some areas, direct market is expanding by 30 bps year-to-date. So to what extent the valuation is aligned with the current market evidence? And what should we expect for H2? That's my first question.

Okay. Thanks for your question. Well, indeed, you saw in H1 '26, well, the value they went slightly down on office, minus 2.8% on a like-for-like basis. The other side went slightly up for light industrial plus 3% on a like-for-like basis. Well, Clearly, we are remaining in this macro uncertainty and high interest rate environment, which clearly does not help the stabilization of asset values and a recovery on the investment market, which is very sluggish.

So there are -- we are all still waiting for a new transaction to confirm that we've reached the trough in valuation and confirm the exact level we're in as far as we are concerned, it's a bit hard, of course, to predict the evolution of the value in the long term as those market volume remains low, the macro unpredictable. Clearly, there are more negative catalysts and positive catalysts, but that's globally where we stand today.

And also regarding the EUR 30 million of rental loss from expected this year, how much do you expect to impact the full year rental income because I understand that only EUR 1 million has been recognized in H1.

That's what we were seeing. It's included in the guidance and the global trajectory. I mean we have a pretty clear view that we start sharing with the market during the annual results. As for 2026, as we said, we have EUR 60 million of lease expiries, of which EUR 30 million were expected departure by the end rather H2, including mostly the former to be repositioned assets.

We were talking about EUR 16 million of to be repositioned assets, which is clearly the last portion of those major expiries on this type of asset. If we take a look at '27, I know it's important for you. So we try to give you as much visibility as we can. And we have some good visibility saying that roughly 75% of expiring revenues, around EUR 60 million out of the EUR 80 million potential expiries in '27.

So those EUR 60 million include leases for which we consider high probability of renewals coming, of course, together with the part of negative reversion crystallizing. And as for the EUR 20 million, they are rather expected to expire even if the teams are focusing on that. And if we took a look even more, we are already working on the 2028 maturity to anticipate as much as we can.

I guess that as the tenants will vacate the buildings, we should see a sharp decrease in the like-for-like rental growth over the year. Because....

For -- the major impact on like-for-like was rather in '25 because if we take a look at '25, this has been strongly impacted by both negative reversion with less than 3% minus and departures last year at minus 6%. This was partially offset by the stronger indexation, plus 3%. So of course, departures and reversion will still have a negative effect this year, but the pressure is gradually easing relative to last year. The impact on departure were stronger in '25 rather than in '26. And on top of that, we have some departure on some assets that goes into development with projects, talking about Leon, for example.

The next question comes from Florent Laroche-Joubert from ODDO BHF.

I would have 2 questions. So my first question would be on your outlook for 2027 and after. So why are you confident that 2026 should be a low point in terms of operational performance? And then I will ask my second question after.

Yes. Thank you, Florent. -- for your question. Well, we indeed confirm the guidance, '26 and the fact that the strategic cash flow should mark a low point in '26. Firstly, we remain cautious, of course, as we said, given the uncertain macro and the political environment in France with the presidential election underway.

But maybe 2 things. We got 2 things that impact negatively the cash flows and 2 things that will support the cash flow. The 2 things that put pressure on the cash flow is a mechanical gradual increase in finance expenses. The second thing is on the investment side, we still expect a decline in rental income because basically, we have a very low indexation. We are crystallizing lease after lease the negative reversion, and we still have the impact of some departure. So this as for the 2 negative impacts.

On top of that, on the other side, we have 2 things that support the cash flow. The first one is the recovery in development activity. You saw that the trends they are gradually improving through customer mix rebalancing. We are restoring operational margins. So there's room for improvement still, but the main question mark still remains the pace and intensity of recovery, but let's say, it's going on the right way.

And the second positive thing that will support the cash flow is the fact that we are securing lower fixed cost through our cost reduction plan target of an additional recurring EUR 15 million over a full year basis. So to sum it up, we do not claim to control the whole cycle or the macro, but we are focusing on what we can control. Bruno shared the figures. And clearly, that's something we can do on this, and we are fully focusing on that with rigor and discipline that give us confidence to achieve our objective of reaching a low point on the strategic cash flows in '26.

Okay. That's very interesting. And maybe my second question would be on the disposal of health assets. So we have been able to see that you have been able to do some disposal very recently in Portugal. So have you any other visibility to dispose shortly some other international assets, for example, in Germany or in Italy?

Okay. Thanks for this additional question. Maybe before talking about the next step, let's take some time and have a good look at the transaction, which is clearly a good news because we were able to sell this portfolio, which is roughly EUR 200 million on a quite narrow market at satisfying condition on the NAV just exactly after what we did in Italy last year. So this is a good thing. This asset portfolio gross asset value is in line with the value that was retained in our NAV as of December 2025, with an economic stake for us, as you saw at EUR 75 million. So this deal demonstrates once again that we are able to sell assets at the right price and that we are right to wait for the right window.

Because clearly, on this core asset, we had at the end of '23, some very opportunistic offer and decided to wait to see the right window. So that's a good news. Talking about the next step. We, of course, we are still focusing on what we intend to do. Our objective remains gradual exit from our minority stake over the reshape plan horizon. And the philosophy still remains the same.

We have no intention to sell under unfavorable condition with a large discount as they are still generating some strong cash yield. Once said that, if we take a look, well, France is not the same type of investors as the international assets because here, talking about our exposure, we are talking about the passive stake, which won't attract some strategic investors, but rather financial investors clearly. Another way possible is selling assets in the SPV that will allow us to have some additional capital reduction after those potential asset disposals. That's also something we are keeping on exploring.

And if we take a look at the remaining assets, well, Italy, honestly, very small portfolio, roughly EUR 15 million, EUR 20 million, so very small part. We sold almost all of that. But the next focus will be in Germany. As you know, the environment is really not favorable at the time for health care there.

But the operators are on recovery there. So we'll try to see if there are some room to create some liquidity as satisfactory condition on this asset. But clearly, that's something we are going to look into it also.

The next question comes from Benjamin Legrand from Kepler Cheuvreux.

Just the first question is again on valuation. I see it's in negative territory, but less negative than it used to be. Obviously, it's been helped by the North deal and the La Défense deal as well on the positive side. Do you know what would have been the impact without those positive elements? That would be the first question.

And then the second question will be on margin on the residential development business. I see you expect the new generation projects to be 50-50 compared to the old projects by the end of 2026. But what do you expect for 2027 and 2028? That would be it.

Well, thanks for your question, Benjamin. As for the asset value, well, we've talked about that, but we don't split between the business plan assumption and impact. But what we see that the decrease in value on the office was mainly due to the yield effect. Clearly, as you are highlighting the nice and positive yield the teams were able to secure through those large renewals helped offset a bit of the negative yield impact. But no, we don't usually give the split between that. But it's good to see that all the team's efforts on a day-to-day basis with the tenant renegotiation helped mitigate the negative impact on the yield.

As for the property development question on the margin, Well, there, as you can see, a gradual recovery on the margin. As you saw in H1, 37% of the turnover come from operation with restored margin on residential. So after we went through the portfolio in '24, this was 18% in '25. And indeed, we are expecting 50-50 by the end of '26.

What we can say on the figures is that the global margin went down a bit due to the fact that there's the termination of commercial activity, which clearly widen the revenue and the margin because there were still a few in '25. We do not expect anymore the commercial segment to recover. But if we focus on the residential segment operating margin, this has increased from 1.3% in June '25 to 2.4% June '26. So this is going on the right way.

And what we expect, I say that the total current economic operating margin is expected to gradually improve, but no strong recovery expected clearly before 2027, all of that depending also on the evolution on both the macro and the potential impact of the presidential election in -- but the team efforts are paying now, as you can see in the figures and should help support the recovery of the operating margin, mainly the residential segment.

The next question comes from Paul Ridge from R&C.

Can you just come back -- maybe you gave some information already on the contacts, on the....

Yes, we can hear you, but we can hear other people, there are someone in the background.

Sorry about that. So can you hear my question about the condition of the lease on contacts...

I will answer the question. I don't know we cannot yes, much better. Thanks, Paul.

So as for your question on -- we cannot give the full detail on that, but what we can say is this was anticipated, as you know, we were not so worried about the potential break option, but nevertheless, it was anticipated and discussion started 2 years before expiring. We signed this 9-year firm lease on almost 60,000 square meters, no break option even with some potential financial indemnity, so pure 9-year firm.

As for the condition, well, clearly, as we usually do, we intend to support the NAV. So when we sign, we commit to sign at the market level. So clearly, we've crystallized some negative reversion, as I highlighted in the presentation, but we signed at the ERV level and the level of incentive was clearly very consistent with the market.

We haven't overpaid this renewal to put things really clear. Otherwise, we would not have signed this renewal because as far as we are concerned, we were not worried about the potential break option. So it's a bit like what we do in disposal. If there's a good opportunity, we seize it. And that's what we did with AXA, but we have not overpaid the transaction to be crystal clear on that.

Okay. So does it have any impact on your net asset value because yields are going down and the portfolio valuation is going down too. Does it mean that there is a strong revaluation on the rent side from the experts? And was it triggered by this deal? Not necessarily. And if we look a bit forward, do you think we are at the end of the revaluation process from the experts at this stage of the cycle or not quite sure yet.

Yes. Of course, this deal was shared with the appraisers. This helped supported the valuation, of course, partially offsetting one of the negative impact on the yield. But as for the rents, I mean, as I said, we signed at the market level. So the market levels are already in the valuation and the appraisers assumption on their discounted cash flow.

So I mean, it supported those assumptions clearly. And on that, I think that more globally, this -- like the other deal we signed, we have also signed some interesting renewals on Lal KPMG, all of that helps support the resiliency of the portfolio and demonstrate that once again, there's room on the nice and well-located assets. So this has a positive impact that partially offset the negative macro impact on the yields.

But as for the valuation, as I said, we are also waiting for the signals on the investment market with new transaction to definitely confirm that we've reached a trough in the valuation.

Okay. Just another question. On the development business, it's going a bit better. Do you think that what we've seen on Q2 on the macro side will impact the figures maybe on the second semester? Or are you confident on that question one. And question 2, can you just come back on your -- on the dividend and if you have any more clarity of the distribution of the gain you had on the assets you sold? And that's it.

Yes. Well, on the development market, as I said, we are confident and cautious. I mean who's not cautious in this geopolitical and French political and stable environment. So -- it's going on the right way. As I said, we've done better in this Q2 than the market.

But nevertheless, the higher interest rate will keep on wiring on the lending condition. And on the mortgage loan probably. So on the positive side, there are some new tax incentive measures, but it's still too early to have a meaningful impact on the market recovery. And as the French political market environment is really uncertain due to the presidential election, we will see.

But as I said, on the margin, we expect this to slightly recover from month to month and quarter-to-quarter. The main question mark being the pace and intensity of the recovery, I would say, but it's going into the right way. And as for the dividend, well, on this, it's still too early to tell. As we said, we are not sharing any additional figures, especially not on the disposal of Marin, but all of that will depend on the landing point on Icade results at the end of the year.

As always, our distribution policy is guided by and will be guided by our financial trajectory and our discipline aims to preserve the balance sheet fundamentals while redeploying capital on accretive way and remunerating the shareholders at a satisfactory level. So still too early to share some precise figures. We'll have to wait for the end of the year, but we're happy to share it as soon as possible.

The next question comes from Martin Kartman from Van Lanchet Kempen.

Two questions from my side. My first question is, could you provide a bit of color on the 15% like-for-like decrease in land values you showed in the report?

Sorry, I didn't hear you very well, Martin. Some color on the...

For-like -- on land values -- she is a small part of the portfolio, okay? Yes. I think there was some small adjustment from the appraisers on the land values, but it's not significant at the scale of the whole portfolio. Sometimes it goes up and down. As you know, we've highlighted some new asset class. We'll come back to you with more detail on this. But have in mind that this is not significant at the scale of the portfolio.

Okay. Clear. And could you give any indication of what kind of yield the Portuguese assets were sold and how far off that is from peak valuations?

We cannot give the information on the yield, which is confidential, but it's really consistent with the primers on the market globally on health care. And as I said, the level of the transaction, the gross asset value at EUR 186 million was in line with the value as of December 2025. And this is clearly what we intend to do. We sell it at the right price when there's a good opportunity for liquidity. So there was not a heavy discount, and this is consistent with the prime yields on those markets.

The next question comes from Ana Escalante from Morgan Stanley.

My question is on your lettings. I think most of the lettings in the first half have been renewals. What is your view in terms of new lettings, I mean letting vacant space or maybe signing some new lettings you give us some color on that? Historically, they represented quite a relatively important share of the total annual lettings. So any color you can provide there?

Okay. Thanks, Ana, for your question. Let me put it back, you confirm if I heard well. I understand your question is the part of new letting out of the total 100,000 square meters that has been signed or renewed during the semester. Is that right?

Yes, I think it's 10% new lettings and the rest is renewals, if I'm not mistaken. So you think that will evolve because historically it's been above on an annual basis that has been above significantly 10%.

Yes, that's really -- I was only wanted to be really sure I understood well your question, given the sound was not really well. So indeed, you're right, most of the 100,000 square meters that has been signed during the semester came from renewal. We've highlighted the transaction. I've talked also about the Preval transaction. And so there were roughly 10% indeed of new lettings. This is really consistent with what we see in the market. globally. The leasing market is really weak, remain challenging. And there are only a few new transactions on that.

What we see is that the tenants take more time to make decisions. They are rather keen on staying on their existing premises rather than moving out. So this is consistent with what we see at the market. And we're trying to leverage that in order to secure a few years ahead, the major potential great option we have, just like what we did with Gag. So this is consistent with the market.

We'll see in the semester to come if there's the opportunity for new leases. But clearly, most of the transactions are driven by renewals or anticipated renewals rather than new lettings.

Okay. And then my second question is on your net to gross margin. So I think that you said in the release that in the first half, there was some kind of one-off in the net to gross due to some increase in the expected losses from defaults rent defaults. Could you please provide more color on that?

So sorry, just to rephrase your question, it was rather on regarding investment property on rent default.

Your net to gross margin, so net rental income versus gross rental income the margin at high 80s has come down in the first half. And you said that, that was due to higher allowance for rent defaults and you said that, that was just one-off and so far, the rent collection remains high for the portfolio. But I just wanted to understand better why was there and whether any specific tenant even if you don't specify which one or what extent we can see that again in the upcoming quart?

Well, as for the decrease in the property investment margin rate, on the one hand, impact because property taxes expense on vacant property located 100% to the first half of the year in case not everyone has this in mind. And on top of that, as you are highlighting, it was also due to a onetime increase in client risk the overall margin rate now stands at 85.7%. And as I said, it's rather a onetime increase, but something expected to be recurring.

In the first half in 2025, we booked a write-back of a provision because finally, client pay us and this receivable has been provisioned. So it's a one-off effect for the first half in 2025 with a write-back.

And more globally, I'm sure you have this in mind, but Icade is not the one company that is heavily concerned by client risk. One of our strong assets is our portfolio of tenants, mostly public state company, very large company, Count, SBF 120. So all of that is not one of the major issue we have. And indeed, from time to time, there can be a one-off -- onetime increase in client risk, but it's not something which is a major concern of our business profile.

The next question comes from Michael Finn from Green Street.

Yes. I just have 2 questions, please. My first one is on Echo. I'm curious if you could shed more light on the plan for the asset. Obviously, you have some time because the leases there don't start until '27. The went from the end of '25. And my second question is on the ECO vacancy. I noticed across the 5 office segments that you have, it has increased quite a lot in 3 of them. So I'm just curious if you could shed some light on that as well, please.

Thank you, Michael. Can you say again your second question? I'm sorry, the sound is not so great on our side. I come back to that...

Sounds good. Yes, of course. My second one is on the EPRA vacancy. And across the 5 office segments, it has increased quite a lot in 3 of them. Perhaps this is due to the fact that you have changed the way that you report the office rightly. So maybe some buildings that are in a different segment previously have been moved. So that's my second one. And the first one, as you said, is on the plan for Tour Eco now that you own all the building because I would assume previously, the other owner probably wasn't need to spend much money on the building. And I assume that's now changed, obviously. So if there's any light you could shed on that, that would be great.

Yes. Maybe a word on [indiscernible] for start. Maybe just a few words on the way we looked at this acquisition. We started looking at the asset fundamentals because we also had a few questions from some of you guys on this. If we talk about the fundamentals, where the fundamentals are good. For one, it's located in an attractive area, which is La Défense. And the second part is the asset has demonstrated, thanks to the effort of the team, its resiliency with this KPMG renewal and the protector of new lease. So clearly, that's how we see it.

If we take a look closer at the deal on the financial side was rather opportunistic for us with discount rate of 8%, which is pretty good for 100% cash flow secured in the midterm asset. And it was for us also an opportunity to regain full control of the property because with our partner, the evolution of the macro brought us to, of course, a kind of misalignment that could have been an issue in the midterm, not now because the asset was fully filled.

But so globally, the way we saw that for us, a good opportunity to regain the full control of the asset on attractive financial condition clearly. So that's how we see that, and it should be an accretive thing for us. There is no specific thing on the vacancy cost related to these assets.

More globally, on the EPRA vacancy cost, indeed, there is a slight deterioration regarding the end of '25. But we see an improvement in the occupancy rate since March after the Q1 that is impacted by departure. So this could help more positively on the vacancy April rate.

And more globally, the vacancy rate and/or the occupancy ratio, as you know, is the first fight of the team. That's the reason why we were quite happy to being able to reach roughly 80% as for office occupancy, almost 86% more globally on the company. We expect to be roughly stable in this area by the end of the year.

The next question comes from [ Jacob Mark Bisigrsana ] from Bernstein.

I just wanted to ask a question about your acquisition of the remaining of the Eco Tower. Can you please remind us -- I think you said in your press release that the impact on LTV is quite minimal. Can you remind us on the impact on the EPRA LTV? And also, you're currently on negative WAC, and we're seeing your asset value declining. So I just wanted to know if you can share some color on your current discussion with the rating agency and how you see the risk of a downgrade and what would be the impact on your financing cost?

Okay. So I will take the Eco question, and Bruno will go back to you discussion with rating agency. Well, as for the Eco Tower, indeed, it was already fully consolidated in our accounts. So mainly no major impact on the balance sheet. Of course, due to the way EPRA calculates the LTV EPRA ratio, this ratio will be slightly impacted, which roughly 0.5 point, 0.5 points globally. This should have an effect. And talking about the net current cash flow, this acquisition will be accretive, as I said, this was already factored in, in our guidance, being slightly accretive for the end of '26. And of course, this will help support the cash flow also in '27. Maybe Bruno, if you want to comment on the S&P...

S&P First financial KPI of S&P. We are very focused on operational KPI means-forlike and we are very, very focused to respect and to improve the operational KPI. So it will be the decision of SAP. remember in June, S&P confirmed our BBB rating with negative outlook. But as you can imagine, we are very, very focused on ATV and operation KPI and we would like to demonstrate quarter after quarter that we are in the good way.

The next question comes from [ Pranava Boyodapu ] from Barclays.

Firstly, I just wanted to get a sense on the cost of...

Sorry, can you get a bit closer to the mic, please?

My first question is on the cost of debt. You mentioned that it's going up to around 2% by the end of 2026. Is that just on the EUR 290 million bank debt being rolled and like your assumptions on the cost? Or are there any other hedging provisions? And are you able to give us a sense for where this would go up after your '27, '28 refinancing? Obviously, the ICR has gone down quite a lot. So that's why I'm asking about it.

Of quarter, but we have a limited increase from June to June 16 at the end of December we already hedged almost 10% for the 2027 and 2028, we almost at high level at you speak about the bonds in 2027 and 2028. So we have 2 bonds for a total of EUR 1.1 billion. So we -- of course, we have a plan to refinancing the bonds. It will be, of course, an increase of the cost of debt, but it will be already anticipated. But we not to disclose at this time about...

Okay. So I assume that means that you don't have a hedging in place for the future refinancing was my question. And then the second question I had was just understanding your CapEx and cash flow impact. Would you have a sense for how much the La Defense tower cost you in terms of cash outflow? And any CapEx needs for the Evolution habitat that you may have factored in already?

Yes. Thanks for your question. Well, there is no specific amount of CapEx that shall be allocated to the tower. I mean this has been refurbished a few years before. There was a few to enhance the global attractiveness of the tower, but not -- it did not require some heavy investment. And clearly, it's fully secured through the renewal and the new lease. So there is no need for additional CapEx in the short term on this tower. And more globally on our portfolio in Defense Defense, which is almost fully let. There's no need for major CapEx to be invested.

Sorry, on the was asking about the sale price, like how much cash outflow for the company did it cost?

Okay. Sorry, I didn't get your question on this. Well, it's very low impact in terms of cash outflow due to the fact that the SPV was significantly leveraged. So buying the equity did not require a significant amount of cash as some of you already highlighted...

There are no more questions -- so I hand the conference back to the speakers for the closing comments.

Well, thank you very much for your time and your questions. Once again, I would like to thank Icade's team for their strong commitment and efforts in these difficult times, clearly. But looking forward to see you all in the road show, and we wish you a good day. Bye-bye.

Welcome to the Icade First Quarter 2026 Trading Update Conference Call. [Operator Instructions] Now I will hand the conference over to the speakers. Nicolas Joly, CEO; and Bruno Valentin, CFO. Please go ahead.

Good morning, everyone, and thank you for joining us today. Bruno Valentin and I are very pleased to present Icade'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-Elysees for EUR 402 million. This operation is fully aligned with our reshaped road map as it reflects our disciplined approach to crystallize value while maintaining strong balance sheet.

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 EUR 2.8 billion, enabling us to anticipate upcoming maturities with confidence.

In Property Investment, leasing activity was broadly in line with our expectations with around 25,000 square meters signed or renewed during the quarter. Rental income was down 2.1% on a like-for-like 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 segment 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 EUR 402 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 this asset 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, we stake up in the Paris region down 15% year-on-year, Icade signed or renewed around 25,000 square meters in the first quarter. These leases represent EUR 7.3 million of annual headline rental income with a WALB 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 Prairial building in Nanterre. This major transaction once again confirms the attractiveness of La Defense and Peri-Defense area for our large clients.

The financial occupancy rates stood at 85% as of March 31, 2026 compared to 86.8% at the end of 2025. This trend was expected and mainly reflect departures that materialized at the beginning of the year. The financial occupancy rate remains 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 mixed 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 EUR 165 million.

In the individual segment, orders were down 10% year-on-year in volume terms. This reflects a marked slowdown in March as the deterioration in the international environment, wide on market sentiment and led to a more cautious stance from customers.

On institutional side, investors remained active. Indeed, bulk orders were up 27% year-on-year in volume terms, although first quarter order values were wide down by an unfavorable 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 EUR 278 million in the first quarter, down 14.7% year-on-year. In Property Investment, gross rental income decreased by 3.3% year-on-year. In Property Development, revenue fell by 19.3%, reflecting lower activity in debenture and commercial development along with the base effect from the disposal of the Tolbiac 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 EUR 91 million compared to EUR 94 million at March 31, 2025. On a like-for-like basis, it declined by 2.1%, mainly to expected tenants, departure and gradual crystallization of negative reversion on renewals. These trends were partly offset by positive effects of indexation accounting for plus 1.1%.

On Page 13, economic revenue from property development was 11.4% lower in Q1 2026 versus 2025 that are adjusted from the sale of Tolbiac asset accounting for circa EUR 20 million. Residential revenue was 9% year-on-year, reflecting a lower backlog for previous years. Residential revenue for the Commercial segment fell by 31% due to the absence of any significant new projects secured.

I will now hand back to Nicolas for the outlook and conclusion.

Thank you, Bruno. Let's move to Slide 15 for the 2026 outlook. Since late February, the conflict in the Middle East has contributed to a sharp increase in geopolitical and macroeconomic uncertainty. At this stage, it remains difficult to assess the full extent, duration and actual impact of this new environment on both the global economy and the domestic market.

Subject to this caveat and based on the information currently available as well as the group earnings as of March 31, we confirm our 2026 group net current cash flow guidance of between EUR 2.90 and EUR 3.10 per share. As a reminder, this 2026 guidance includes net current cash flow from strategic operation of EUR 2.25 to EUR 2.45 per share that is expected to mark a low point and net current cash flow from discontinued operation of approximately EUR 0.65 per share.

In conclusion, in a volatile and uncertain context, we remain fully focused on execution and on pursuing our transformation with rigor, discipline and a clear strategic direction. While 2026 will still bring challenges, we are determined to keep moving forward to stay close to our markets and clients and to deliver on our road map.

Thank you very much for your attention, and we are now ready to take your questions.

[Operator Instructions] The next question comes from Stephane Afonso from Jefferies.

I'll take them one by one. So first, on the guidance and the trough. Your comments seem to suggest that you could potentially revise your targets and just wanted to better understand the operational sensitivity behind that in particular. How should we think about order volumes in Icade promotion for this year? And should we expect a higher level of departures in 2026? So that's my first question.

Okay. Thank you, Stephane. Well, if we take a look at the first quarter, you see that on development, we were impacted in March with a slowdown in order volume early. Well, once said that, however, the Q1 volumes are traditionally low and not really representative of the full year activity. And on top of that, as I said, it's still too early for us to assess properly the market's impact precisely all over the 2026 and 2027 year on development. So that's why we remain cautious, and we keep -- have a close eye on the situation.

Well, as for the investment market, more globally on the market, you saw that Q1 was a quiet quarter, both in investment and leasing markets. On the one hand, for the leasing market globally, the take-up will fall by roughly minus 15% year-on-year in the Paris region. However, you saw in the results that we are in line with our expectation on the leasing activity with those roughly 25,000 square meters that were led during the first quarter.

And as for the departures expected in 2026, we are still in line with what we've shared 2 months ago on the result i.e., EUR 30 million expected out of the potential EUR 60 million. So we are in line with what we expected for the leasing activity on the investment division.

So that's globally what we see. On the guidance, clearly, as I said, the conflict in the Middle East clearly widened the international environment. This contributed to heightened geopolitical and macroeconomic uncertainty. So that's the reason why we are closely monitoring the development.

In our view, this could affect, of course, the global economy. So credit markets, interest rates, inflation, raw material cost and supply chain, especially on our domestic market. So it's difficult at this stage to assess the full extent and duration of the impact on both '26 and '27. But as I said, once said that and based on the information we have to date as well as the group result at the end of March, we reaffirm today the 2026 guidance on the group net current cash flow, so between EUR 2.90 and EUR 3.10 per share.

I understand that the sensitivity of the 2026 guidance is more related to the promotions. So what would it take in terms of volumes to make you revise your guidance?

We'll keep on looking closely at the development, but as you said, this could widen the demand clearly due to the impact on high interest rates. We'll see if what we have looked in March shall last all over the year or shall recover. And once again, it's too early to tell on this. But clearly, that's on the property development where you could have the largest impact, of course.

Okay. And post 2026 for departures, where do we stand regarding Veolia, AXA and also Thales?

Yes. If we take them one by one, so starting 2027 with AXA, no journeys to be shared today on both of them, clearly. Otherwise, we would have shared that with you. As we've said 2 months ago, there is no emergency on those, but we keep on having a discussion with these long-standing clients.

We are not so worried about break option of AXA at the end of '27 and the expiry of Veolia in '28. Clearly, what we saw in Nanterre where the AXA asset is located is clearly a sustainable positive leasing dynamic this quarter, including for Icade, this large renewal with the French Ministry of Interior.

So all of that are quite good news. We keep on discussing with them, and we will, of course, update you in due course on any developments, but not so worried clearly about the break option on AXA or Veolia.

For Thales?

For Thales, we are also having some discussions. I think the highest probability for them together in a much larger headquarters they have in development. So that might be the one that could vacate the building, clearly. That's how we are getting prepared and already are looking for any potential tenants should they vacate the building. It's much lower rent for Thales than AXA and Veolia.

Okay. But what is the time line if they were to leave?

'27 in line with AXA and Veolia.

Okay. And maybe one last question on dividends. I have in mind that usually you received notification from IHE in April. Therefore, should we expect any dividend from them this year? And if so, hopefully, how much?

Well, as we shared 2 months ago, there is no dividend expected from IHE. So the main part of the EUR 0.65 per share included in the guidance on discontinued activities come from the dividend expected from Premier Healthcare, which is the French part of the business, which is still suspended to the general assembly that should take -- take place during this Q2.

Okay. And just maybe one last question on interest rates. I just try to quantify the cash flow sensitivity to rates this year. So for instance, what would be the annualized impact of 10 bps increase in the yield job?

There is no issue for 2026. And the effect for the -- we are hedging for 100%. So nevertheless, of the interest, we have no impact on the cash flow for 2026.

The next question comes from Florent Laroche-Joubert from ODDO BHF.

So I have 2 questions, so I can ask one by one. So my first question will be on the Property Investment activity. So we can see that your like-for-like growth is at minus 2.1%. You expected notably at the beginning so you had some departure of tenants.

So could we expect that the like-for-like growth for the rest of the year could be higher than your like-for-like growth for Q1? And maybe also on the offices. So what is your sentiment today on your IOS with discussion of tenants for the rest of the year?

Okay. Thank you, Florent. Well, on the like-for-like, well, globally, overall, I'd say that performance remains in line with 2025, clearly including the progressive crystallization of the negative reversion on the one hand, on the other hand, the impact of tenant departures. So globally, that's where we stand.

We are not seeing any major reason for improvement over the year, but the performance shall be in line with what we saw in 2025 and more globally about the discussion we are having with the tenants, while it's in line with what we see on the market, clearly, discussions take longer and longer. That's why it's a key advantage to know quite well our long-standing clients.

You saw in the Q1 figures on the Paris region that very low volume of transactions signed or renewed. Most of the tenant stays in their existing premises clearly, that's what we see. And we are globally in line with the major trend we saw at the end of '25 and this early Q1. More specifically, on our investment division, we are in line with what we were expecting and what we showed 2 months ago that what we saw in the figures that has been crystallized during the Q1 and that what we expect over the due course of 2026.

And we try to anticipate as much as possible the potential expiries in '27 and '28. But this has to be done in a satisfactory way for both the tenant but also for Icade. So there's no need to anticipate break options. We are not so worried about and grant very large incentive if there is no need to. Okay.

Okay. Yes. Okay. And maybe -- so my second question on property development. So we have been able to see that month of March was very difficult on your reservation for individual people. So now we are in April. Maybe you have been able to discuss with your operational teams. And do you see any improvement or any confirmation of what you have seen in March?

Globally, what we see now is in line with what we saw in March, clearly because all of that is related to the overall environment. That's the reason why we remain cautious in our assumptions. As I said, really early to draw any conclusion at this stage.

We are also waiting to see what the banks will do regarding the individual investors that also might have an impact on the demand. Clearly, we will see what could widen the cost of raw material also. But today, globally, there has been an impact on the March activity. We'll see it last or recover. And often in July, we get a clear view.

The next question comes from Veronique Meertens from Van Lanschot Kempen.

Three questions from my side. I was just wondering if there's been any discussions lately with the credit rating agency and how those are going regarding your -- the outlook at the moment?

Well, as you know, the decision early action of the rating, it's the responsibility of S&P. So as -- we have an annual meeting with S&P. It's a normal way for the discussion with S&P, so no special discussion with S&P.

Okay. That's good. And my second question is, is there any update or involvement in the discussions around the potential disposal of the remaining health care assets?

Yes. Well, there are no major news either to be shared today on this, but we stick to the plan and the strategy we've shared. So we have no intention to sell under unfavorable condition with a large discount. I think we could benefit from the positive vibes, I would say, on the market in this asset class, clearly, but we want to keep on doing what we did last year with the Italian portfolio, for example.

This was a major deal managed in satisfying condition. So our objective remains gradual exit from our minority stake over the, more specifically, I'd say the first priority is focused on the most liquid assets that are, in my view, the Portuguese assets.

Clearly, we had already some interest on those assets. And then after the residual portfolio in France and Italy. We will, of course, keep you posted as soon as we'll have something to share, but no major news to be shared today.

Okay. And then my last question is, I was a bit surprised to see the negative like-for-like on the logistics segment despite that occupancy remains pretty stable year-on-year. I appreciate that there's some negative indexation linked to it. But could you give some figures around that to get a bit of a feeling what it exactly consists of?

Yes, that's exactly true. Thanks for highlighted that. There are negative like-for-like on light industrial, why it was positive on the office, thanks to the relating of the. But on light industrial, a double effect, a negative indexation effect due to the fact that most of the leases are linked to ICC on the light industry on premises. This indexation effect was roughly minus 1%.

And on top of that, we had an impact on departure, I mean on the day-to-day business, I would say, that on the Q1 was minus 3%. So you have also to have in mind that we are talking figures. So every time you have on the daily basis, usual departure, you can wind on some percentage points this is the double effect coming from negative indexation from the ICC and expected departure.

The next question comes from Jonathan Kownator from GS.

Two, if I may, please. One, you talked about briefly construction costs. Can you just help us understand what you've seen in terms of increase of construction cost over the last sort of 1.5 months?

And the second question, I think you were highlighting a renewal with a government agency from a leasing perspective. Can you help us understand the sort of renewal condition in the sense what was the reversion? And then how much incentives you had to add on top of the reversion?

Okay. Jonathan, thanks for your question. Well, the first one, honestly, on construction costs, too early today to crystallize anything and see anything in the discussion we had. The main question mark is what we expect in the months to go, clearly. But today, we haven't seen yet any major impact. So clearly, too early. And...

And so whether are you factoring for the next month?

Sorry, I didn't get you.

What are you expecting for the next month then in terms of construction costs?

We are running several scenarios, many options are on the table, but...

What is the base case?

Pardon?

What is the base case?

We see -- today, what I say is the base case in which we are able to reaffirm the guidance clearly. But there are several scenarios that are plausible depending on the potential evolution on inflation, clearly. On your second question regarding the renewal on the. It was relet on the existing condition for a 6 year from duration with the Ministry of Interior.

So it's on the 30,000 square meters. So this is a 6-year term lease with no break option, with an usual amount of incentives, so no specifically large incentive, crystallizing the same level of rent than the historical existing one. So clearly, in our view, this is a very satisfactory transaction that still highlights the appeal of a La Defense area.

Sorry, just to come back on one new comment, this is usual incentives. I mean, the incentives I mean, depending on the districts exactly and appreciate some bills different than others, but some of the incentives can go to up to 40%, I mean, maybe not in, but what kind of incentives are we talking about here?

No, no. We're clearly definitely much less than that.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Well, thank you all for attending the call. Looking forward to talking to you for the actual results soon, and have a good day. See you soon. Bye-bye.

Welcome to the Icade Full Year 2025 Results Conference Call. [Operator Instructions] Now I will hand the conference over to the speakers. Nicolas Joly, CEO; and Bruno Valentin, CFO. Please go ahead.

Good morning, Nicolas Joly speaking. Thank you all for joining us today. With Bruno Valentin, we are pleased to present Icade's 2025 full year results. After the presentation, we will, of course, open the floor for questions. I will begin with the main development of the year, both operational and strategic, Bruno will then walk you through the financial results and the balance sheet in more detail. Then I'll conclude with the 2026 outlook.

Let's start by summarizing the key highlights for 2025. 2025 was a year of full progress in the execution of our ReShapE plan with strong financial discipline. Three elements stand out. First, disposals. 2025 was a record year with significant milestones in offices and in healthcare, allowing us to crystallize value in a selective investment market.

Second, operations. Across both businesses, performance was solid. In Property Investments, despite declining revenues, we achieved a record year in terms of square meter leased contributing to an improved financial occupancy rate.

In Property Development, we delivered solid activity with stable reservation volumes driven by a rebalanced customer portfolio and restored margins on new operations. And third, discipline. Throughout the year, we maintain tight capital allocation, controlled debt levels and strong liquidity while advancing selectively into student housing and data centers. If you turn now to Slide 6 and 7, you will find the key financial metrics for 2025.

Net current cash flow amounted to EUR 3.57 per share, in line with the guidance. Cash flow from strategic activities, namely Property Investment and Property Development came in at EUR 2.89 per share compared to EUR 2.94 per share in 2024. NTA NAV declined by around 11% to EUR 53.3 per share, mainly reflecting the decrease in value of the property portfolio and the dividend payment. Loan-to-value ratio stood at 39.6% at the end of December. This does not yet include the Marignan disposal, which will have a positive effect of minus 3 percentage points.

The net debt-to-EBITDA ratio improved to 9.1x, supported by the recovery in development margin in the second half. Interest coverage remains solid at 6.6x and the average cost of debt is stable at 1.7%. If we look more closely at each business on Slide 7. In Property Investment, gross rental income was EUR 347 million, down 4.2% like-for-like, mainly due to tenant departures recorded in 2024. The gross asset value of the portfolio stood at EUR 6.1 billion, reflecting a 4.5% decline on a like-for-like basis.

The EPRA net initial yield increased at 5.6%. The Property Development business economic revenue declined to EUR 1.1 billion versus EUR 1.2 billion the year before. However, the operating margin turned positive again reaching 2.4%. The volume of orders was broadly stable at approximately 5,400 units outperforming the market.

Before diving further into operations, let me briefly share our initial view for 2026 on Slide 8. In an uncertain environment, we expect group net current cash flow to decline in 2026 mainly due to continued pressure on property investment revenues and only gradual recovery in the development business. That said, thanks to strict selectivity in the operations we launched and continued control of our cost structure, we expect 2026 to mark the low point for net current cash flow from strategic activities.

I will come back to this when we discuss guidance in more detail. But before that, let me briefly set the broader market context on Slide 10. In 2025, we continue to navigate a challenging environment marked by macroeconomic uncertainties, political instability in France and persistently high interest rates, which continue to worry on the real estate sector. In the rental market, pickup was down around 9%, while vacancy level and incentives remain significant.

The investment market was slightly better oriented than in 2024 with improved liquidity and value-add assets and a return of interest in the office segment in the best locations. Against this backdrop, Icade moved forward with the disciplined execution of its ReShapE plan. Let's move on to Slide 12. With regard to the disposal, Icade recorded an exceptional year with nearly EUR 850 million disposal completed or signed. All these transactions were carried out with strict financial discipline allowing us to crystallize value creation. We will maintain this trigger going forward.

In Property Investments, EUR 640 million of disposal was secured or signed. This includes EUR 240 million of mature or noncore assets sold in very good conditions with capital gain of around 5% versus end 2024 NAV. In December 2025, we signed the sale agreement for the iconic Marignan Champs-Elysees asset. This asset was acquired 20 years ago and we were able to create value through building a project, injecting tenant 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.

With these achievements, we've reached more than half of the EUR 1.3 billion disposal target set under ReShapE. Regarding healthcare, we acknowledge that the exit is taking more time. Nevertheless, in 2025, we achieved a major milestone with EUR 210 million (sic) [ EUR 240 million ] of disposal driven notably by the sale of the majority of our Italian exposure. The volumes sold in 2025 represented just under 20% of our total remaining exposure. We're targeting a full exit from healthcare over the horizon of the strategic plan meaning by the end of 2028. In the meantime, this portfolio benefits from solid fundamentals and generates significant returns which are attractive for group net current cash flow.

We're, therefore, pursuing a progressive disposal not at any price with a clear focus on protecting value. Another pillar of ReShapE is to protect and enhance the value of our core businesses, both Property Investment and Development. And once again, this year, we are delivering on that objective.

Protecting value starts with operational performance. And in 2025, leasing activity was particularly strong, as shown on Slide 16. We indeed signed or renewed approximately 217,000 square meters, up above 60% versus 2024. This transaction represents EUR 63 million in annual rental income with a WALB of 6.6 years.

They enabled us to improve the occupancy rate by around 2 percentage points over 2025, reaching approximately 90% at year-end from well positioned and light industrial assets. As illustrated on Slide 17, Icade secured some of the largest transactions in the market including leases with the Seine-Saint-Denis departmental council with KPMG at Eqho for more than 41,000 square meters and with the Hauts-de-Seine Prefecture at Quito for a further 15,000 square meters. The tenant portfolio remains very solid, with nearly 85% of annualized revenues coming from large listed companies, public sector entity and mid-size companies.

Looking ahead, Slide 18 details the lease expiries for 2026. The challenges we successfully addressed in 2025 will continue into 2026 with EUR 16 million of leases set to expire. We expect around EUR 30 million of departures during the year, notably reflecting the still significant share of assets to be repositioned. This represents the last major wave of expiries for this asset class. The impact of this departure will be reflected rapidly in both the financial occupancy rate and revenues with around 2/3 expected in the first half of the year.

Reversion potential remains negative at minus 11.6% on well-positioned offices, broadly stable year-on-year. It will decrease in 2027 by circa 2 percentage points after the effective renewal of the KPMG lease. In this context, as shown on Slide 19, Icade has continued to make target investments in high-quality office assets. First, with the delivery of Edenn, an iconic asset that is fully pre-let to Schneider Electric for its new headquarters. Offering a very high level of services and strong ESG credentials, this asset achieves prime rents in the Nanterre market.

Beyond Edenn, Slide 20 presents another targeted development which is Seed & Bloom in Lyon. This redevelopment project includes additional floor area, enabling further value creation on land acquired through the ANF transaction in 2017. It completes the transformation of the area following the delivery of Next in 2024. The yield on cost stands at 7.4% fully in line with the returns we target on new developments. All these asset management and refurbishment work contribute to protecting the value of our portfolio.

Having reviewed this targeted project, let me now turn to Slide 21 and 22, focusing on the assets to be repositioned. Over the past 2 years, this asset has been actively managed through residential conversion, sold off plan, 2 targeted refurbishments with controlled CapEx and opportunistic long-term re-lettings. Following the asset management works around EUR 200 million of to-be-repositioned assets should move into our core bucket. At the end 2025, this segment represented a limited share of the portfolio, EUR 29 million in revenue and less than EUR 500 million in assets.

From 2026 onwards, Icade will revise this segmentation to reallocate the to-be-repositioned assets into core and noncore categories. Let's move on to Slide 23. In Property Development, the team also delivered solid operational performance reflected in stable order volumes. This performance was supported by a successful diversification of the customer base with a growing share of first-time buyers and institutional investors. The development teams have also selectively resumed new projects, although overall volumes remain relatively low. This momentum is reflected in our key indicators with building permit applications up 66% year-on-year and with approval increasing by 32%.

Activity has also been supported by the acquisition of projects ready to develop. As a result, the backlog remains fairly resilient at EUR 1.7 billion, while maintaining a high pre-commercialization rate of 77%. Following last year's portfolio cleanup, we are rebuilding products with restored margins. Profitability is gradually improving, although some other lower-margin projects continue to widen on overall results. In 2026, we expect to rebalance the mix between all the projects and new projects with restored margin with a more significant shift taking place from 2027 onwards.

With this solid operational base in place, let me now turn to the last priority of our ReShapE strategic plan, which refers to diversification. Icade is assuring its diversification in sectors where it can leverage its long-standing expertise and development capabilities. We are moving forward with selected projects particularly in student housing and data centers, always with a strong focus on value creation.

Let me lay the emphasis on student housing turning to Slide 27. In this segment, we have launched 2 projects, bringing together our property investment and development teams, representing a total investment of EUR 100 million. Located right next to Paris, this project will deliver approximately 500 beds by 2028. We're also getting value creation of around 20% with yield on cost above 5.5%. Compared with current prime yield ranging between 4.25% and 4.5%.

Looking ahead, our ambition remains to deliver between 500 and 1,000 beds per year from 2028 onwards. Regarding data centers, we are evolving our business model to further enhance returns on large projects through equity partnerships aiming to reach circa 10% yield. This approach could be applied to the 130-megawatt hyperscale project in Rungis, for which we obtained a building permit at the end 2025. The JV partner selection process is currently underway with completion scheduled for 2031.

Now beyond the pricing performance and strategic diversification, our ReShapE plan is also driven our ESG commitment, which is a core element of our model. As part of its ReShapE strategic plan, Icade has indeed reaffirmed its strong commitment to the low-carbon transition and biodiversity preservation detailed in Slide 30 and 31. In 2025, the group updated its low-carbon trajectory to align with the new SBTi standard for the real estate sector, confirming its ambition to remain a leading player in the fight against climate change.

Icade has now set 2030 targets aligned with the 1.5 essential degree pathway across all 3 Scopes with threatened ambition across each perimeter. At the same time, we maintain our objective of achieving net zero carbon emissions by 2050. This trajectory is already translating into tangible loss. Between 2019 and 2025, Icade has significantly reduced its greenhouse gas emissions in line with new objective and total absolute emissions are down by 52%. These results demonstrate that our climate strategy is not only in wishes, but firmly embedded in our rational execution.

And with that, I will now hand over to Bruno who will present the 2025 financial results in greater detail.

Thank you, Nicolas, and good morning, everyone. Moving to Slide 34. The group's net current cash flow amounted to EUR 3.57 per share. It is between EUR 2.99 per share from strategic operations and EUR 0.69 per share from discontinued operations. Net current cash flow from strategic activity decreased slightly to EUR 2.99 per share compared with EUR 2.94 per share in 2024.

Looking at net current cash flow from strategic operations, the main takeaways are a drop in net rental income from property investment of minus EUR 0.39 per share, a raise in property development margin of plus EUR 0.63 per share and a decline in finance income of minus EUR 0.44 per share. When looking in detail, starting with the property investment division on Slide 35.

On a like-for-like basis, gross rental income declined by 4.2% in mainly due to tenant departures recorded since 2024 and the gradual capitalization of negative lease renewals. The perimeter effect has a negative impact of 1.9%, mainly reflecting asset disposals. This factor were partly offset by positive indexation which still contributed 3.3% as well as by early termination fees, mainly related to offices to be repositioned. It is worth noting that net rental income was affected by higher vacancy costs.

Now turning to property development on Slide 36. Economic revenue reached EUR 1.2 billion in 2025, down by 7% year-on-year. This decrease mainly reflects a sharp decline in the commercial segment with revenues down by 48% year-on-year, following the completion of major projects at the end of 2024 and the low volume of new contracts signed in 2025. In fact, residential revenues increased slightly. This performance was driven by stronger sales and an acceleration in consistent start in Q4 2025, which was an exceptional active quarter.

The net property margin improved mechanically in 2025 following the impairments booked in 2024. However, decline in volume and the continued margin pressure on certain project launch prior to 2024 have been negatively impacted the overall margin of the business. Turning to 2025, financial discipline remains a key priority for the group with continuous effort to control the cost base as explained on Slide 38. Over the past 2 years, we have implemented significant measures in process optimization, cost rationalization and headcount reduction generating approximately EUR 20 million in savings, including the impact of inflation.

Finally, Slide 39 focuses on the financial results, another closely monitored item. Current finance income decreased by EUR 59 million but it's required carefully analyzed. On the strategic activity side, the decline mainly reflects lower investment income after a record year in 2024, which benefited from high interest rates and an average group cash position above EUR 1 billion. The cost of debt remained controlled at 1.7% as the projected debt for 2026 is fully recovered.

Regarding discontinued operation, which corresponds to the Healthcare segment, dividend income declined. Approximate also decrease is due to a timing effect as Prime share did not pay dividend at the end of 2025, resulting in a shift of the payment from 2025 to 2026.

Now let's move to our operational performance and financial results and turn to the balance sheet and portfolio valuations. Slide 41 focuses on the evolution, the property investment portfolio's value. At year-end, the portfolio was valued at EUR 6.1 billion, representing a 4.5% decrease on like for like basis. The EPRA net initial yield increased slightly to 5.6% compared with 5.2% in 2024, while the EPRA total net initial yield stood at 6.5%.

Turning to Slide 42, at EPRA NAV. As of December 2025, EPRA NAV per share stood at EUR 53.3, down approximately 11% year-on-year. This change is mainly explained by the lower valuation of the property investment portfolio, which accounts for EUR 3.9 per share as well as the 2024 dividend paid amounted to EUR 4.3 per share.

Let me now turn to debt management on Slide 43, another key pillar of our financial project. 2025 was marked by strong financial achievements. Since January 2025, we raised more than EUR 1.1 billion on financing, including notably EUR 500 million 10-year green bond issuance. Altogether, these transaction are extending the average maturity of our debt and further reinforce our liquidity position enabling us to anticipate upcoming maturities with confidence.

If you look at Slide 44, you can see that our debt maturity profile remains well spread over time. At the end of December, Icade had a solid liquidity buffer with EUR 0.8 billion in net cash and EUR 1.8 billion in ongoing committed revolving facilities. This comfortably covers the group's debt maturities through 2030. Slide 45 outlines the updated direction of our Green Financing Framework published in February 2026. This new version introduced Icade's aligned with the highest market standards.

The aim is to ensure full alignment with the EU taxonomy and the CRREM trajectory based on forward-looking 5-year approach. The framework was assessed by a sustainable Fitch and received an excellent rating underscoring both the robustness of the criteria and the ambition of the eligible project.

With that, I will hand over back to Nicolas for the conclusion and the outlook for 2026.

Many thanks, Bruno. So let me conclude with our 2026 outlook. Slide 47 sets out the main drivers for the year ahead. In 2026, we will continue to execute the ReShapE plan with rigor and discipline, maintaining a clear and consistent course. First, we will continue to focus on supporting office occupancy and protecting the value of our portfolio in a complex environment marked by negative reversion and lower indexation on rents.

Second, we will continue to rebalance the developed portfolio towards project restored margin in a year that will nevertheless be affected by municipal deadlines in the first half. Third, we will maintain a selective allocation of capital towards targeted and profitable operations across both businesses while accelerating cost reductions through the implementation of an additional EUR 15 million in annual savings on a full year basis.

Fourth, we will pursue our disposal program with pragmatism and discipline. And finally, we will maintain a strong balance sheet and controlled cost of debt expected to remain around 2% in 2025 -- 2026, sorry. In this context, we expect group net current cash flow to range between EUR 2.90 and EUR 3.10 per share in 2026. Given the discipline, we will continue to apply in the coming months, 2026 is expected to mark a low point in net current cash flow from strategic activities.

The 2026 guidance includes net current cash flow from strategic operations between EUR 2.25 and EUR 2.45 per share, and net current cash flow from discontinued operations of approximately EUR 0.65 per share. Given the group's ambition to transform its activities, Icade intends to limit the distribution amount in order to preserve its deployment capabilities and finance its future growth.

The group will submit for approval at the General Meeting a cash distribution of EUR 1.92 per share which will be fully paid in June 2026. In conclusion, we delivered robust operational performance in 2025 both in property investment and property development. While the environment remains complex, we are continuing our transformation with rigor, discipline and clear strategic focus. This year will still present challenges that will weigh on revenues, but we will strive to deploy what is necessary to make 2026 the low point on strategic net current cash flow. I would like to sincerely thank all Icade teams for their daily dedication and I reaffirm my full confidence in their ability to execute in the months ahead.

And with that, we are now ready to take your questions. Thank you very much.

[Operator Instructions] The next question comes from Florent Laroche-Joubert from ODDO BHF.

I would have maybe 2, 3 questions. I can ask one by one. My first question will be what does give you comfort that 2026 will be your low point for your net recurring cash flow.

Okay. Thank you, Florent. Thanks for your question. Well, about the low point on strategic cash flows, yes, we are confident on the low points. Of course, regarding investment revenues, we are facing headwinds. There will be negative reversion, a low level of indexation, so pressure will continue and we'll keep on securing what we can. But to mitigate that, as for the development, we've reached the low point in the business, and we made the impairments needed in 2024. The trends, as you saw in the presentation, are improving through customer mix rebalancing, launching restore margin operation.

So clearly, there is room for improvement. We still don't know the exact pace. And on top of development, internally, we activate all levers to secure lower fixed costs through cost reduction plan, I remind you this target of an additional EUR 15 million over full year and a cost of debt which is contained around 2%. So all in all, clearly, we do not aim to control the cycle or the broader market environment, of course, particularly in this context. But what we do control is how the group operates through this phase with a clear focus on our side on capital allocation, cost discipline, balance sheet management and investment selectivity. So that's the reason why we are confident of reaching a low point in '26 on the strategic cash flows.

Okay. That's very clear. Maybe a question on the valuation of assets. So we have been able to see that you have still seen a negative evolution on a constant term on a like-for-like basis. So could you give us maybe more color on your discussions with appraisers maybe for the next appraising exercise?

Well, as for the asset value, you saw that in 2025, while the value went slightly down on offices, they went up on the other side for light industrial. And well, clearly, values decrease is slowing down year after year.

On top of that, we are, on a daily basis, demonstrating the resiliency of the portfolio through this year, a record year in terms of new signature. What I can say is that clearly, I think we and the appraisers are waiting for new transaction to confirm that we've reached the bottom on most of those assets.

Okay. So that's there. And maybe last question on -- maybe on your view on your break option for 2027 and maybe also for 2026. So for 2026, how many do you think that you will be able to relate the break option. So the list that comes to end and that has to be re-let. And for your break options for 2027, have you any break option still at risk after maybe what you have been able to do at the Eqho Tower.

Well, if we take a look back, maybe 2025, you saw that the teams were able to secure major deals, which allowed us to reach a financial occupancy rate around 90%. As usual, we are transparent about the expiries in 2026. As you can see, we are still facing some challenges ahead with EUR 60 million of potential lease expiry. As I said, we expect this EUR 30 million departure by the end of 2026, mostly driven by the last wave of the to-be-repositioned asset departure, thinking notably of [ Renault ] and Placeron, example, normalizing on the other assets. It will happen quite early in 2026 because 2/3 of the departures will take place in H1.

What we can see in the market is that, of course, all the discussions take more and more time, clearly. But thanks to the close relationships we have with our major tenants and long-term relationship we have with them. We try to anticipate as much as possible, which allows, for example, the success we had with KPMG 2 years in advance on the Eqho Tower. So clearly, we are very pragmatic taking everything deal by deal, asset by asset in order to keep on achieving what we achieved on the past year.

The next question comes from Ana Escalante from Morgan Stanley. .

My question is regarding shareholder remuneration, particularly in the context of the delayed timing of the healthcare disposal because apart from reducing leverage, the planned disposal of the Healthcare business would have generated a significant special dividend distribution.

And now that's delayed even further. And although as you say, the healthcare business generates significant financial returns, these are below the potential shareholder return from disposal. So in this context, I would like to understand how you think about shareholder remuneration in terms of your priorities for capital allocation.

Yes. Maybe first, thanks for your question. Maybe firstly a word on the way we are addressing the healthcare disposal. I mean, we haven't changed our strategy for the beginning, the strategic decision has been made to the business, but not at any cost. There is no intention for us to sell under unfavorable condition with a large discount because we are committed to value creation, clearly, and we want to protect the value. Still, this is a significant pillar of ReShapE as we know, but this asset class is supported by strong fundamental, generating some attractive yields. So when we find the right opportunity, such as we did in '25 was Italy, we are happy to crystallize the value and sell at the NAV level like what we did.

So our objective remains clearly a gradual exit from our minority stake over the ReShapE plan horizon. I would say that more specifically, maybe the focus currently is more on the Portuguese assets, which are really stabilized and attractive. But clearly, that's what we do. Once said that, on the capital allocation, as you saw, we are keeping a balance once again, between the protection and reinforcement of the balance sheet and being able to allocate capital in development that are accretive, like the one we've shared on the presentation regarding office or data centers or student housing to maximize the value creation in the mid long term for the shareholder.

In the meantime, we are still able to propose satisfactory distribution, as you saw with this EUR 1.92 per share because we are comfortable with the overall trajectory of our financial ratios and this allows us to perfectly fit with the balance and equation we have on our capital.

[Operator Instructions] The next question comes from Stephane Afonso from Jefferies.

I think it's better to ask them one by one. So first, it's a follow-up question. You are calling for trust in the core cash flow this year. Could you share your main assumptions, particularly on your marginal cost of debt and also your normative occupancy rate. In particular, it would be very helpful to understand how do you take into account large renewals with Veolia and AXA. It's true that those maturities are more around 2028, 2030 but it will be useful to understand your ambitions since you expect the -- of 2026. That's my first question.

Okay. Well, thank you, Stephane. Well, as I said regarding the low EUR 0.26 on strategic cash flows, clearly, there will still be some downward pressure on the investment revenues, as I said, through negative reversion, even if we are able to crystallize new deals, we are crystallizing lease by lease this negative reversion. The main fuel for growth is indexation and it's a very low level today. And we have this departure that will widen, of course, the cash flows and the occupancy ratio.

As I said, we are facing some departures in '26 especially on the to be reposition. So clearly, this will widen the occupancy ratio. We expect that to be lowered down from the Q1 given the fact that, as I said, 2/3 of the departure are expected in H1. But after this lowering down in Q1 '26, we expect a gradual recovery after that. And if we take a bit of look ahead after '26, you were mentioning AXA and Veolia, as I said to Florence, that's the exact same thing we've done with KPMG.

Those are major tenants. We have, of course, there are potential break options in sight. We have a close relationship with them and keep on having discussion to try to anticipate and secure as soon as possible those potential break expiries. On top of that, some come also with some financial penalty. So this has to be taken into account. And regarding the cost of debt, as I said, it will remain contained with a cost update to around 2% in 2026. So all in all, that's the reason why we are confident in reaching a trough in 2026 regarding the strategic ratios.

But just if I can say something. When I'm talking about marginal cost of debt that when you will refinance bonds at which cost of debt you assume to refinance those bonds. So it's 4%, 5% and also on Veolia and AXA on your business plan, what is your occupancy rate target on those tenants.

Well, as for the refinancing, clearly, that's something we have in mind, but let me remind you that we have a strong liquidity at the end of December 2025. Bruno was highlighting that. Debt refinancing is not a concern, clearly, we have multiple sources to reimburse or refinance future debt. And we've demonstrated in 2025 that we have a very good access to credit liquidity. We've issued in May, the 10-year EUR 500 million green bond. And this cost was 4.5%. So that's, in our view, is a good proxy on what to expect in the coming months or years.

And regarding AXA or Veolia, clearly, as for our major tenants, our intention is to secure a long-term relationship and extension of leases with them. So that's what we are assuming and the way we intend to have discussions with them like we did with KPMG.

Okay. And I have also a question regarding capital gains. And could you share the capital gains from the Marignan disposal that you expect to?

Yes. Well, as for Marignan, well, this is an asset we've owned since '24. So of course, this will generate tax capital gains. But we don't disclose any figures for now because the distribution obligation, this is related to capital gain, depends on the year-end loans, as you know. Because those capital gains may be offset totally or partially against other potential transactions.

So that's the reason why on our side, we don't think that makes any sense to share some figures with the market right now. But clearly, of course, there are some significant capital gains because we've been owning the asset for 20 years. And as you know, we run quite a successful open bid process with fair competition and a nice premium on the NAV at the end.

Okay. But maybe can we have a range? Is it about EUR 200 million, EUR 300 million because I understand the -- between their statement that it's important to have this in mind because we don't know what will be your disposal base and at what discount. So at this stage, if you were not to sell any other assets, what could be the capital base to distribute regarding Marignan disposal.

Well, I mean, we are in February. It's a bit early to have some full visibility on that, be sure when it would be relevant, we'll be able to share some figures. So that's the reason why we don't disclose any figures today, but I'm sure you can have quite a guess about what it could be.

Okay. I hope I have a good guess. And maybe could you remind us the remaining distribution -- capital gain -- given that Eqho escalation continue to decline.

The remaining capital gain. We haven't shared the proper figure. But on the nonsale asset, the assumptions that we've shared during ReShapE was remaining distribution requirement of roughly EUR 300 million related to the EUR 1 billion that is to be sold.

Okay. And maybe one last question regarding noncore cash flow -- regarding non-cost cash flow expected in 2026. My understanding is that the forecasts go back beyond 2026. And given this, what is the status regarding the deferred dividends of -- I understand that assurance hasn't distributed dividends for the past 2 years due to losses. But there is a statutory distribution requirements. So if I'm correct, the situation allows for 1 year deferral for distribution. So could you please clarify this?

Well, at this stage, we haven't assumed any potential dividend for ReAssure, and there is no requirement to distribute such an amount if the results is negative, for example, or anything. So that is not systematic. And in the EUR 0.65 we've assumed in the guidance for 26, this rely only on the dividend to be paid on Praemia healthcare.

Okay. And do you expect the vehicle to stay on deficit this year again? .

Well, the assumption we've made is no dividend coming from ReAssure.

The next question comes from Aboulkhouatem Amal from Degroof Petercam.

First question would be on the new labeling of the asset to be positioned. Can you give us some color on what would be the criteria because what you would assume as core and noncore? And what will be the indication on the CapEx or disposal strategy for these assets, please?

Yes, sure. Well, on the to be repositioned, I said that a category we flagged 2.5 years ago in order to give you more insight on the portfolio. 2 years after that, we've done most of the job. We've sold some. We've repositioned some. We've relet on a long-term lease basis some assets. So clearly, we've reached a point where the remaining noncore part is very small compared to the whole portfolio.

So the idea now, as we've shown on the presentation is from 2026 onwards to communicate on some core asset categories. And when I say core, I say core to our strategy, it's not type of asset or investment is really core to Icade's key strategies. So globally, what you will expect for '26 is now in the segmentation, having some core assets mostly offices. So the actual well positioned offices plus the EUR 200 million coming from the former to be repositioned asset.

Also core added from light industrial and a bunch of small bucket of non-core assets mostly coming from the remaining EUR 300 million of the to be repositioned assets that are to be repositioned and won't be core to our strategy. That's globally how we will communicate in the coming semester. I hope it is clearer now.

Is it fair to assume that the noncore to be repositioned assets on the market for sale.

Yes, yes, clearly. There are non strategic. So clearly, we would be happy to sell those assets. But as we said for the to be repositioned asset, globally, there is currently no liquidity because most of them are an attractive office building, former office building, I say unattractive because they are in areas that are not well connected or those assets are not filling the right criteria, ESG or standard or so.

So globally, there are no investors to buy them, and I would say even whatever the price. So in order to -- we create liquidity, we have to go through a repositioning scenario and we've demonstrated that we are able to do so, and it can be in residential, can be in hotel anything office in the way. And the idea is to secure those scenario and once for example, we secured a building permit, then we create liquidity and then we will sell the asset. But clearly, we do not intend to pay some additional CapEx on this noncore and nonstrategic buckets.

Okay. My second question would be on the partnership for the data centers. So I just wonder what has led you to change your mind? I recall when you present the ReShapE strategy 2 years ago, the strategy for data center was very clear. You just delivered the building and then you let it to an operator. What has changed your mind? And if you can just confirm that for the Equinix data center in Portes de Paris, it's still a normal investment in the building, and we are not partnering with Equinix on that will be completed in 2026.

Yes. Thanks for the question. Well, sorry, if I haven't been clear 2 years ago, we are bang in line with what we shared in terms of our strategic priorities regarding data centers. And if I remind well, there was a dedicated slide where we were trying to explain the way of having some exposure to this business. I would say the usual way for real estate investors is exactly where we stand today on our 5 existing data centers, plus indeed, the one we'll be delivering to Equinix in a few months.

This is powered shell model. So basically, we secure the power, we build the shell and we lease it through a commercial lease. So I would say pure real estate model. And that's also the reason why we are on yield around 6.5% globally. But what we were also saying during the strategic plan is that this is not suitable for very large projects. Because for data centers, the global amount of investment is very huge, as is EUR 12 million per megawatt IT globally for the power shell and the fit-out. And the power shell only represents 25%, 30% of the investment.

So when we talk about projects like Transit, we are talking here about EUR 1 billion, EUR 1.5 billion investment in total, solely EUR 300 million for the power share. But in total, it's a huge investment. So operators are not keen on investing EUR 700 million or EUR 800 million for just the sake of securing a commercial lease. So once said that, you have basically 3 options, either you are a property developer and once you secure the land, the power and the building permit, you sell and you secure some capital gain. Interesting, but most of the value creation is still ahead.

The other way of doing it on the opposite side is like, I would say, like what Marignan does in Spain is build a full-fledged operator. So the one building, operating, leasing to the hyperscalers, i.e., Microsoft or Amazon, the data center and be a fully fledged operator. We do not intend to do so given the fact that there's some risk coming with the operations. We don't have yet the special relationship with the farm and so, so. So we rather prefer a half way of doing that, which is the JV.

We go to the operators, we structure a JV, retain a minority stake, which is roughly the same amount of investment as building a power share. But through this JV, we'll get more exposure to the business, which allows us to be more exposed also to the total value creation of the business. That's how we are able to reach like 10% yield on cost on such development. So clearly, we are not saying that we won't be doing power share anymore but we just need to have a proper strategy depending on the size of the investment. I hope it's a bit clearer now.

Yes. Very clear. And if I may, a last question on my side, just on the dividend policy. How should we look at it going forward? I understand that given the current uncertainties, it's difficult to have an outlook. But going forward, how do you see it for 2026 and beyond.

Well, our philosophy, once again is to secure as much cash as possible. Clearly, as I said, we are comfortable with the actual trajectory of our financial ratio, allowing us balance between balance sheet and this distribution. As you see the proposed distribution represented roughly 50% on the group net current cash flow, which is pretty in line with the payout ratio of the past 2 years.

Of course, if we exclude the dividend related to the healthcare disposal. So this has been our philosophy from around 2, 3 years since the beginning of ReShapE, which is consistent with what we intend to do is accelerate the transformation of the model.

The next question comes from Veronique Meertens from Van Lancschot Kempen.

Some questions around the development segment. So I think since half year reporting last year, you don't split out all these separate contributions to net current cash flow. So first of all, what was exactly the rationale behind that? And then secondly, can you give an indication if you are already back to positive territory in terms of net NCCF contribution from the development business? Or is it purely only a profit margin that's positive yet?

Okay. Veronique, thanks for your question. Well, the rationale of not splitting any more of the cash flows, I mean, it's just be consistent between there are financial KPIs and our strategic positioning. I mean we are an integrated player, and you saw also in the presentation that we are focusing on this model more than having on the one side the investment and on the other side, the development. So that's the main rationale with that, we align our financial communication with who we are and who we intend to be.

Regarding profits, indeed, you are highlighting the fact that through stabilization of volume and a gradual recovery of margin with this year is better than '24. Of course, it is still impacted on the margin by the fact that there's very low activity in the commercial division, which is usually the part of the business which used to have the highest margin. So this contribution is even less.

I mean, the revenues from commercial division on property development was cut by half. But on the core business being the residential, it's getting better, as Bruno highlighted, driven by the fact that we have more and more operation with restored margins.

Of course, this will keep on going this way. I would say that there's no major strong recovery expected before 2027. But no deterioration, as I said. I would say that we've reached the trough in property development. The main question might be the pace of improvement in the market, which still remains, of course, is uncertain.

Okay. That's clear. So if I understand you correctly then probably in '26 and potentially even '27, we would still see a negative impact on -- or a negative contribution on your net current cash flow from the development business. So has there ever been an internal discussion if this is a business line that should be seen as noncore as well? Or is that not up to debate at all?

No, no. We expect, clearly, as I said, recovery, so going in the positive way on property development. The main question, honestly being the pace of this improvement. So it won't be going the negative path. And to be crystal clear, once again on property development. Since my arrival at Icade, I keep on saying that it's critical for the business and it's the core of ReShapE. And as we just said before, being an integrated player between property development and investment division is a key advantage in tomorrow's market. That's my deep conviction clearly. So this business is more than core in our strategy.

Okay. That's very clear. And then 2 small questions for Bruno. I noticed that there's a number of the net income from other activities from the property investments went up quite significantly to almost EUR 13 million. So I was wondering what's in there. And at the same time, the other financial income and expenses is only EUR 23 million despite, I think, already EUR 37 million from Praemia dividends. So could we get some color on those 2 figures, please.

Sorry, Veronique, I didn't catch the first part of the question. We're talking about property development or finance.

Yes, there's a net income from other activities for property investments of EUR 13 million, which was flat last year. So that's why I was wondering what's in that number. But we can also take it off-line if that's easier.

Yes. We'll come back to you on that, yes. .

The next question comes from Celine Huynh from Barclays.

I only have one question, please. On the EUR 1.92 cash distribution, can you confirm if there is still some capital gains on disposal to be returned to shareholders next year? And following this, my understanding is that there is no dividend on recurring activities proposed this year. Otherwise, you would have called the EUR 1.92 a dividend. Can you comment whether you see it returning next year? And what will be the criteria for you to be comfortable to pay a dividend again on recurring activities? And what kind of payout do you see.

Celine, thanks for your question. Well, maybe some opportunity to clarify that. But I mean, it's named -- technically speaking, it's named distribution because it will be taken on premiums. So technically speaking, you know that to be dividend must be paid from profits, retained earnings of or reserve account. So clearly, it's just a technical word. But if we regard the amount, the EUR 1.92, this -- the intent to pay an amount equivalent to the SIC distribution requirements.

So not only 70% of capital gain on disposal, but also including 95% of the recurring income from securities and 100% of dividend from subsidiaries. And the reason we decided for such an amount, as I said previously, that we are comfortable with the trajectory of our financial ratios. And as I said, allows us to be balanced between the balance sheet and the investments we make, the remuneration -- keeping a remuneration of our shareholder at an attractive yield with this EUR 1.92.

Okay. This EUR 1.92, can you break this down, which -- what is coming from capital gain, what is coming from recurring activities so that we can calculate a payout on the back of this.

Well, we don't communicate the split. But just to be clear, the EUR 1.92 is really equivalent to the 95% of direct income, 70% of the capital gain on disposal last year and 100% on dividend from subsidiary. And about payout, of course, we don't give payout policy, but as I said previously, you can see that this proposed cash distribution represents roughly 50% of the group net current cash flow. And if we look in the rear mirror over the past 2 years, excluding, of course, the part related to healthcare, which was the average payout ratio -- equivalent payout ratio that was observed, roughly 40% to 50%.

Okay. I'll take the other questions offline.

Okay. Thank you very much, Celine. .

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Well, thank you very much for your time and your questions. Happy to have shared that with you. You saw that all the teams at Icade are really committed to deliver our strategic plan, and I thank them once again for that. So we'll leave you with that. And good day and looking forward to seeing soon some of you. Have a good day. Bye-bye.

Welcome to the Icade 9-month Trading Update Conference Call. [Operator Instructions] Now I will hand the conference over to Nicolas Joly, CEO. Please go ahead.

Good morning, Nicolas Joly speaking. Thank you all for being here today on this call. Along with Bruno Valentin, we are delighted to present this morning Icade 2025 9-month update. This presentation will be, of course, followed by a Q&A session.

Let's move to Slide 5 for an overview of the main messages. To date, Icade has completed or signed preliminary agreements for EUR 430 million in disposals. This includes a reduction of the group exposure to healthcare activities by circa EUR 210 million and the sale of mature or non-strategic assets for EUR 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 meter in EQHO 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, Icade 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 EUR 3.40 and EUR 3.60 per share.

On Slides 6 and 7, we focus on the good progress made on disposals. Early August, Icade signed an agreement with BNPP REIM to sell its stake in a diversified portfolio of 23 health care 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 healthcare portfolio in Italy. These sales represent circa EUR 173 million for Icade, in line with the asset values included in the group NAV as of June 30, 2025. The proceeds from the sale will repay the shareholder loan from Icade to Icade Healthcare Europe almost in full. The deal is scheduled to close at the end of the year. In addition, year-to-date, Icade reduced its exposure to Praemia Healthcare by EUR 36 million through 2 smaller transactions completed in the first half of 2025.

The property investment division also secured EUR 220 million in disposal of nonstrategic or mature assets. Since the last year results, preliminary agreements were signed on additional assets for EUR 115 million, namely an office asset covering 1,800 square meters on Charles de Gaulle for EUR 17 million, the remainder of the B&B Hotel portfolio for circa EUR 30 million and the entire Mauvin business park in the north of Paris, representing 21,000 square meters for EUR 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 9 months of the year, the rental market remained challenging with take-up in the Greater of Paris region down 8% year-on-year. The subdued economic environment and French political instability continue to weigh on 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 square meters. In this environment, Icade teams delivered a very solid performance with around 125,000 square meters signed or renewed by the end of September.

These agreements represent an annual rental income of EUR 29 million with a WALB of 6.8 years. This achievement demonstrates our ability to secure large leases over 5,000 square meters and to support our clients over many years like Club Méd, who has been our tenant within Pont de Flandre for 30 years. It also shows our expertise in creating spaces tailored to our client needs as we have done with Sopra Steria in the Orly-Rungis business park. The total financial occupancy rate stood at 84% as of September 30, 2025. In the well-positioned office segment, the financial occupancy rate stood at 88.8%, up plus 0.8 points compared to the end of December 2024, following, in particular, the leases signed for more than 3,000 square meters in the Hyfive building and nearly 2,000 square meters in the EQHO Tower.

After including the [indiscernible] in the first building scheduled to start in Q4 2025, the financial occupancy rate of well-positioned offices stood at over 90%. In the light industrial segment, the occupancy rate stood at 90.4%, plus 1.5 points versus December 2024, thanks to leases signed in November, Port de Paris business park. In addition to the 125,000 square meter, 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, Icade has signed or renewed more than 60,000 square meters since the beginning of 2025 in the La Défense and Péri-Défense area, 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 EUR 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 P&L 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 our owner-occupier orders, which increased by 14%, supported by favorable measures promoting homeownership.

Bulk 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'll now turn the floor over to Bruno to present the change in revenues.

Thank you, Nicolas. Let's move to Slide 13, which we present the trend in consolidated revenue as of September 13, 2025. Icade's 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 income decreased by 6% to EUR 253 million, mainly due to tenant departures last year and the gradual crystallization of negative reversion of 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 to-be repositioned offices.

Move to Slide 15. On property development side, economic revenue amounted to EUR 729 million as of September 13, 2025, down by 12% year-on-year. This decline results firstly, from a drop in commercial segment with revenue down by 42% year-on-year due to the completion of major projects at the end of 2024, 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.

Many thanks, Bruno. So, let's move on Slide 17 for the 2025 guidance. We reaffirm our 2025 guidance of a group net current cash flow of between EUR 3.40 and EUR 3.60 per share. This includes net current cash flow from nonstrategic operations of approximately EUR 0.67 per share, excluding the impact of disposals. As of September 2025, the income already recorded by Icade represented 92% of annual net current cash flow from nonstrategic activities. Let me remind you that the contribution from nonstrategic activities does not include the payment of a potential interim dividend from Praemia Healthcare in 2025.

Well, to conclude, in an environment that remains complex and uncertain, Icade teams achieved a number of successes during the quarter as illustrated by the continued execution of our disposal plan and a very strong leasing performance. We remain focused on implementing our strategy with priorities that include improving the occupancy rate of our assets, diversifying our portfolio and rigorously managing our balance sheet. And with that, let's start the question-and-answer session.

[Operator Instructions] The next question comes from Florent Laroche-Joubert from ODDO BHF.

So 3 questions for me, if I can. So, my first question would be in offices. So, you have said that improving the occupancy rate is a high priority. So maybe could we say some words on your next challenges in offices for notably for the end of 2025 and 2026. So, what shall we expect? Maybe second question on healthcare assets. So, have you any comments to make for the other assets to be still sold in healthcare? And maybe last question on the 2933 Charles de Gaulle comment on your intention to dispose or not at the end of this asset?

Thanks for your question. Well, maybe start with the financial occupancy rate. Well, you saw that there were some recent improvements indeed in the occupancy rate for well-positioned and light industrial segment. As I said, including the positive effect of Pulse by the end of 2025, the occupancy rate will be above 90% for the well-positioned. Light industrial 90.4%. Well, of course, there will be a slight negative impact to be expected post disposal of the Mauvin business Park, but thing is getting better month after month. Once again, this remains and shall remain the first priority for the teams as for the Investment division.

Maybe to give you a bit some visibility on the -- what to expect in 2026 regarding the expiries. I would say it's globally the same trend as in 2025, of course, with some expiries to be expected concerning the to-be repositioned assets. As more than half of the expiries will occur in H1 2026, we shall be in a position to give you some good visibility for the full year 2025 result presentation.

And on the second question on the healthcare portfolio, well, clearly, given the political environment in France, which does not help and could discourage some international investors, our first priority is to focus on the international side. We've shared some good news with the Italian portfolio that shall be closed at the end of the year. We are also focusing a lot on the Portuguese assets, which are, as you know, high-quality assets that can attract unsolicited interest. And we are also marketing the small remaining part of the Italian portfolio, which constitutes of 5 assets, representing roughly EUR 20 million. On France, once again, on [indiscernible], there's no major news to share given the French context, but we are still exploring some additional routes, sale of noncore assets, additional swaps as we've done during the H1.

And on the Charles de Gaulle asset, of course, we won't comment specifically on the asset or the process, but will keep being consistent with our DNA, which is to capture the maximum of the value creation. And once again, for this asset, in our view, a large part of the value has been already created through the eviction of tenants and the obtaining of the permit. And there's a good window because they have very strong liquidity on the investment market for core plus and value-add assets in Paris CBD. We saw a lot of transaction there with loads of cash. So clearly, with those 2, an opportunistic approach in our view shall be considered. Once again, the key decision will be made on value creation.

The next question comes from Stéphane Afonso from Jefferies.

First, on the EQHO Tower, could you please share the reversion rate reflected in this renewal? Second, on Icade's promotion, should we expect additional provisions or impairments since market parameters have changed? And finally, on asset values, market data points to further yield expansion. So, what should we expect in terms of asset value decline in H2? Or at least what assumptions are you using in your business plan?

Thanks for your question. Well, starting on the EQHO Tower, maybe just before sharing thoughts on the economics, let's take a minute to celebrate, which is really good news rewarding the hard work of the team that have been working on this for several months now. As we shared with you, we try to anticipate as much as possible the large break options we are facing and we have some strong relationship with our major tenants. So, we were really happy to succeed in that. Of course, we cannot share the detailed figure but maybe highlight the one thing is that as put in the PR, the signature rent is in line with the RV as we usually do.

Of course, this crystallized a significant negative reversion. It was the highest negative reversion potential in the portfolio. That shall be captured after the end of the actual lease from October 2027. But I'm sure that if you put some raw figures, you can be able to estimate this roughly. As for the incentive, they are slightly above the market trend, but in my view, remain fully consistent with the very large surface that is considered. We are talking here about circa 41,000 square meters. So, this to conclude on the EQHO Tower is, in my view, an emblematic transaction, testifying once again the good dynamics of the area in La Défense district and the strong relationship we have with our tenants.

Maybe jump in on your -- I have in mind that the reversionary potential was minus 11%. So, taking into account this renewal, where does it stand now?

Yes. This accounts for roughly 2 points out of those 11 on the average portfolio. Yes. But this once again will be captured at the end of the actual lease in 2027, because until then we are still on the current rate, okay? Is that clear?

Okay. Yes. Thank you.

Jumping on your second question on Icade promotion. Of course, the market trend is still very tough. As you saw on the residential business, we've been deeply impacted by the end of the P&L tax scheme that had a negative impact on orders of individual investors were roughly minus 43%. As shared, there's better dynamic for owner occupier. The bulk sales still represent more than half of the total orders with a historical volume very strong in the Q4 and of course, very low activity in the commercial division, and that shall be the case in the years to come. So, we are still very selective in our operations.

There may be 1 or 2 operations identified will be more difficult than expected. We've done the job on the whole portfolio in June 2024. So, there is no thing that is expected once again on that. And I would say that for the global activity, there are no recovery, in my view, expected before 2027, especially due to the political agenda. As you know, next year will be the local election on the town. So, this is usually years with very low level of building permits.

So in your view, the provision and impairment that you recorded maybe 2 years ago are conservative enough at this stage?

Yes, we went through the whole portfolio on that. As I said, given the context, there still can be some operation selectively that can have some issues. But once again, on the whole portfolio, the job has been done.

And on the last question on the evolution of the asset value, where you saw in H1 that there was a small deceleration of the asset value decline of minus 2.8%, if I remember well, in like-for-like, both from negative impact of residual yield decompression and to a lesser extent, lower expectation for indexation, clearly. Light industrial were more resilient, of course. But if we focus on offices, while it's still difficult to confirm the timing of value stabilization as there are still very few transactions on the market to assess properly the target cap rate. And on top of that, there are still some persistently high sovereign yields. But nevertheless, as you saw, we had a strong divestment activity during the first 9 months of the year and the sale of core assets completed year-to-date confirm the level of our actual NAV.

The next question comes from Celine Soo-Huynh from Barclays.

I got 2 questions, please. The first one is about the guidance. In the press release, you said that the disposal of the Italian healthcare portfolio could impact the NCCF depending on the closing date. So, could you please give us a number around this? And the second one is around your outlook. You sound very cautious. I would almost say quite negative on your outlook for 2026. And we know your S&P credit rating currently is negative. Are you expecting a credit downgrade coming?

Maybe quickly on the first one, well, globally, the impact of the disposal of the Italian portfolio will be nonsignificant on the cash flows because it's expected to occur at the very end of the Q4, so not significant. On the outlook, well, cautious clearly because 2026 globally will remain very tough, in my view, on market conditions. Well, you get this political agenda in France that will definitely have an impact on the pace of recovery. We are facing persistently high sovereign yields that won't help. And thirdly, there's a lower positive indexation to be expected in 2026.

On top of those macro effects, more specifically on Icade side, well, as I said, on the property development, given the political agenda, there is no expectation in our view of recovery in 2026. And on the investment side, I was mentioning a lower positive impact on indexation that we expect roughly at 1%, so much lower than expected some months ago. And as you know, there are still some negative reversions to be crystallized in the cash flow. Of course, this is already, as you know, in the NAV, but still to be crystallized lease after lease in the cash flows. And there are still some departures, mainly on the to-be repositioned assets that will still while on the like-for-like clearly. So not negative, but clearly, cautiousness in our view on both businesses and the macro is necessary. And maybe Bruno, you want to.

Yes. So, we remain highly focused on SAP, of course, the 3 points. First one, the disposal achieved over the last 9 months helped to keep the LTV ratio under control. Secondly, we have a limited committed level of CapEx in the pipeline. But nevertheless, we remain subject to variation in asset valuation.

And Celine, you were mentioning, I though the outlook, but the current outlook is stable.

It's not negative.

Sorry, I thought your outlook was negative.

No, no. This is stable. BBB stable.

The next question comes from Michael Finn from Green Street.

Yes. I was just curious given the change in the sources of funds. Since it seems slightly better than it was, I'm curious if there is any change in the uses of those funds as well. Should I assume that the strategy is in line with the Investor Day from Feb of '24?

Yes, Michael. Well, we are still bang in line with ReShapE. As I shared in my conclusion, we are focused on our existing portfolio and the occupancy rate. We are also focusing on diversifying our exposure to additional asset classes such as PBSA or data centers, for example. There were no major news to be shared during this Q3. But clearly, we intend to reallocate into relative developments, the cash that comes from the divestment, but we are still bang in line with the main guidelines of the ReShapE strategic plan that we've shared in February 2024.

The next question comes from Samuel King from BNP Paribas Exane.

Just one clarification question on earnings guidance, please, and specifically on the contribution from nonstrategic operations. I understand that it excludes a potential interim dividend from Praemia Healthcare. But am I right in thinking it also excludes a potential dividend from IHE, which last year was around EUR 10 million? And if so, what is the decision made if IHE pays a dividend? Because in theory, the disposal and repayment of shareholder loans should improve the financial position of IHE and therefore, its ability to pay a dividend this year?

Yes. Thanks, Samuel for your question. Well, indeed, there was no assumption of an interim dividend on Praemia Healthcare and no dividend on IHE, but we don't expect dividend on IHE, most of the cash flows were drawn through the shareholder loan. So, nothing to expect on this regarding IHE. And as for Praemia Healthcare, we'll see there is an interim dividend before the year-end. And if this is the case, of course, we will be telling the market that it's the case. But indeed, you were right on the current guidance, the EUR 0.67 does not include any interim dividend on Praemia or any dividend on IHE.

The next question comes from Valerie Jacob from Bernstein.

I just wanted to ask a follow-up question on your rating with S&P. My understanding was that S&P had assumed approximately EUR 700 million in order for your outlook not to be downgraded. I mean I know your outlook is stable, but I'm talking about an outlook downgrade. So, I was wondering you've only done EUR 400 million so far. If you don't sell Charles de Gaulle in 2025, is there a risk that your outlook can be downgraded? Or maybe if you can share some discussion you're having with S&P.

Well, today, once again, we are consistent with the trajectory we've shared. We've demonstrated our ability to sell assets, even sell assets at the right price. We said it was above NAV. There is a few opportunities in the pipeline that make us confident in being able to secure the debt on debt plus equity threshold at 50%. So, at this stage, nothing specific to worth sharing.

So if you don't sell anything until the end of the year, there is no risk in your view that your outlook is going to be downgraded. Is it what you're saying or?

Well, it's not for me to say. I mean it's S&P to say. But clearly, today, we've demonstrated that we are able to secure our debt on debt plus equity trajectory. And on top of that, the additional 2 KPIs are very comfortable headroom regarding the guidelines set by S&P.

There are no more questions at this time. So, I hand the conference back to the speakers for any closing comments.

Okay. Thank you very much. Happy to share this part of the morning with you. Looking forward to talking to you. Have a nice day. Bye-bye.