Icade: favorable dynamic across all business lines in Q3 2017

PRESS RELEASE

• Commercial Property Investment: Continued increase in the financial occupancy rate to 92.3%, up +0.3 pp from June 2017

• Healthcare Property Investment: Framework agreement signed between Icade Santé and Korian, paving the way for new opportunities in the nursing home sector (EHPAD)

• Property Development: Sharp increase in economic revenue1 to €811.1 million over 9M 2017 (+32%)

• Takeover of ANF Immobilier: agreement to acquire Eurazeo's controlling interest in ANF Immobilier signed on October 11, subject to conditions precedent

• Launch of Icade's inaugural Green Bond in early September: €600 million, 10-year bond with a coupon of 1.50%, whose proceeds will be used to finance green assets and projects

• ESG : Icade at the top of rating agencies' rankings, GRESB, EPRA and Vigeo

• Icade new headquarters in Issy-les-Moulineaux: OPEN building-100% flexible office space

• 2017 outlook confirmed for net current cash flow per share: growth of around 7%

1. REVENUE AS OF SEPTEMBER 30, 2017

   As of September 30, 2017, Icade's consolidated revenue stood at €1,152.9 million, up 16.1% year-on-year, driven by Property Development (+28.2%).

   (in millions of euros)	09/30/2017	09/30/2016	Change (%)	Like-for-like change (%)
   Gross rental income from Commercial Property Investment	279.7	282.4	(1.0)%	(0.4)%
   Gross rental income from Healthcare Property Investment	159.7	154.8	3.2%	0.2%
   Property Development revenue	719.2	561.1	28.2%	28.2%
   Other revenue	(5.7)	(5.0)	-	-
   CONSOLIDATED REVENUE	1,152.9	993.3	16.1%	16.9%

   1 Economic revenue: IFRS revenue adjusted from IFRS 11

2. PROPERTY INVESTMENT DIVISION
3. Commercial Property Investment

   Rental income:

   (in millions of euros)	09/30/2016 restated*	Acquisitions/ completions	Disposals/ redevelopments	Rent escalation	Leasing activity	09/30/2017	Change (%)	Like-for- like change (%)
   Offices	125.3	19.1	(17.5)	0.6	0.8	128.2	2.4%	1.3%
   Business parks	148.2	15.2	(18.1)	1.0	(2.3)	144.1	(2.8)%	(1.1)%
   TOTAL OFFICE AND BUSINESS PARK	273.5	34.3	(35.6)	1.6	(1.5)	272.3	(0.4)%	0.0%
   Other assets	13.2	-	(1.1)	0.0	0.1	12.2	(7.6)%	0.7%
   Intra-group transactions from Commercial Property Investment	(4.3)	-	-	(0.5)	(4.8)
   GROSS RENTAL INCOME	282.4	34.3	(36.7)	1.7	(1.9)	279.7	(1.0)%	(0.4)%
   * Reclassification of the Axe Seine building from the business park segment to the office segment

   Gross rental income from Commercial Property Investment totalled €279.7 million as of September 30, 2017, down 1.0% compared to September 30, 2016. In the office and business parks segment, rental income was stable on a like-for-like basis.

   Rental income rose by 2.4% in the office segment (+1.3% like-for-like) and declined by 2.8% in the business parks segment (-1.1% like-for-like) following the disposal of non-core business parks carried out in 2016.

   Changes in scope of consolidation (acquisitions, completions and asset disposals) had an impact of -€1.4 million on rental income:

    +€15.1 million positive impact from acquisitions made in 2016 (Orsud, Parissy and Arc Ouest buildings)

    +€16.5 million in additional rental income from asset completions, including the Véolia (+€9.0 million) and Millénaire 4 (+€6.2 million) buildings in the Millénaire business park in 2016, and Défense 4/5/6 (+€0.9 million) completed in 2017 in Nanterre

    +€2.7 million from the rent guarantee linked to the completion of the first phase of the Go Spring off-plan purchase project in 2017

   • -€34.7 million decrease in rental income due to the disposals carried out in 2016 and 2017 (including 3 office buildings in Villejuif)

     Analysis of leasing activity: (See Appendix)

     New leases starting in 9M 2017 represented 104,147 sq.m, of which 45,312 sq.m during the quarter ended.

     On a like-for-like basis, the main exits from the portfolio of leased space totalled 9,842 sq.m during the period, the largest one being the departure of Tarkett France (3,785 sq.m) in the Portes de Paris business park.

     The first 9 months of 2017 saw the renewal of 38 leases representing a combined floor area of 121,444 sq.m and annualised rental income of €26.8 million (with 14 leases renewed in Q3 for 18,713 sq.m and €3.0 million in headline rents). The weighted average unexpired lease term of these renewed leases over the last 9 months stood at 7 years.

     On average 9M, these leases were signed with rents 2.9% higher than the respective properties' estimated rental value.

     Most leases renewed in 9M 2017 related to office assets, including:

     • LCL for the Rhin and Loire buildings situated in Villejuif (30,000 sq.m)

     • IFF for the Crystal Park building in Neuilly-sur-Seine (5,500 sq.m)

     • AXA for the Axe 13 building in Nanterre (16,400 sq.m)

     The weighted average unexpired lease term for the Commercial Property Investment Division was 4.9 years, stable compared to June 30, 2017.

     The financial occupancy rate reached 92.3%, a 0.3 pp increase from June 30, 2017 (+0.5 pp for offices and stable for business parks). A +0.3 pp rise was recorded on a like-for-like basis.

     Financial occupancy rate Weighted average unexpired lease term

     (in %)** (in years)**

     Asset class

     09/30/2017 12/31/2016 restated*** 06/30/2017 Like-for- like change* 09/30/2017 06/30/2017

     Offices Business parks	95.8% 89.1%	94.6% 95.3% +0.4 pp 88.1% 89.1% +0.2 pp	6.2 3.7	6.2 3.7
     OFFICES & BUSINESS PARKS	92.3%	91.1% 92.0% +0.4 pp	4.9	4.9
     Warehouses	100.0%	84.7% 84.9% +10.5 pps	2.1	2.2
     COMMERCIAL PROPERTY INVESTMENT	92.3%	91.1% 92.0% +0.3 pp	4.9	4.9

     * Change between June 2017 and September 2017, excluding completions, acquisitions and disposals for the period

     ** Based on proportionate consolidation

     *** Reclassification of the Axe Seine building from the business park segment to the office segment

     New leases signed since the beginning of the year added up to 110,382 sq.m (53,090 sq.m during the quarter ended), equivalent to €24.6 million in rental income.

     New leases signed in 9M 2017 which are scheduled to start after September 30, 2017 represented an aggregate floor area of 54,900 sq.m.

     The quarter was marked by the signing of an off-plan lease agreement for the Fontanot office building located in Nanterre (Hauts- de-Seine). This off-plan agreement provides for the leasing of 15,700 sq.m for a term of 12 years with no break option. A major overhaul of the building will start in Q1 2019 and is scheduled for completion at the end of 2020, while the lease should start in Q1 2021.

     Cumulative investments since January 1, 2017:

     (in millions of euros)	Operating asset acquisitions	Off-plan acquisitions	Projects under development	Other CAPEX	Other	Total
     Offices	5.9	88.8	13.6	40.0	2.8	151.1
     Business parks	0.0	0.0	29.9	30.5	0.4	60.8
     OFFICES & BUSINESS PARKS	5.9	88.8	43.5	70.4	3.3	211.9
     Other assets	0.0	0.0	0.0	1.0	0.3	1.3
     COMMERCIAL PROPERTY INVESTMENT	5.9	88.8	43.5	71.4	3.6	213.2

     Investments for the period amounted to €213.2 million (vs. €204.2 million as of September 30, 2016). Off-plan purchases represented €88.8 million and included the following:

     • Gambetta (20th district of Paris) for €71.2 million. Completion is scheduled for 2019 (20,000 sq.m including 16,000 sq.m of offices and 4,000 sq.m of shops with 3,300 sq.m already pre-leased under a 12-year off-plan lease agreement)

     • Go Spring (Nanterre) for €16.2 million, with the second phase (18,500 sq.m) due to be completed in 2019 and already 75% pre-leased to Franfinance, a subsidiary of Société Générale

     • Eko Active (Marseille) for €1.4 million (8,300 sq.m of office space to be completed in 2019).

     Investments in the development pipeline (€43.5 million) related primarily to the Origine, Pulse and Défense 4/5/6 projects.

     Asset disposals:

     As of September 30, 2017, disposals carried out since the beginning of the year amounted to €247.7 million and related mainly to three of the five office assets located in Villejuif (42,600 sq.m) and sold to LCL for €226.0 million (two of these disposals took place in H1).

     In Rhin and Loire (totalling 30,000 sq.m), the two buildings that were not sold, the leases with French bank LCL were renewed for terms of 7 and 9 years, respectively.

     Other disposals relate to non-strategic assets and represent €21.7 million. These asset disposals generated a total capital gain of €76.9 million.

4. Healthcare Property Investment

Rental income:

(in millions of euros)	09/30/2016	Acquisitions/ completions	Disposals/ redevelopments	Rent escalation	Leasing activity	09/30/2017	Change (%)	Like-for- like change (%)
GROSS RENTAL INCOME	154.8	4.9	(0.3)	0.7	(0.3)	159.7	3.2%	0.2%

Rental income stood at €159.7 million on September 30, 2017, an increase of 3.2% compared to September 30, 2016 (€154.8 million). On a like-for-like basis, the change was +0.2%.

Changes in scope of consolidation (acquisitions / completions) brought an additional €4.9 million in rental income (positive impact of the Tarbes, Mas Helios and Domont healthcare facilities, among others).

Analysis of leasing activity on a like-for-like basis:

Financial occupancy rate Weighted average unexpired lease term

(in %)** (in years)**

Asset class

09/30/2017 06/30/2017 Like-for-like change* 09/30/2017 06/30/2017

HEALTHCARE PROPERTY INVESTMENT

100.0%

100.0% +0.0 pp

7.7

7.9

* Excluding completions, acquisitions and disposals for the period

** Based on proportionate consolidation

The financial occupancy rate stood at 100% as of September 30, 2017.

The weighted average unexpired lease term was 7.7 years and was down by only 0.2 year compared with June 30, 2017.