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REAL ESTATE: Icade (ICADFP: BBB+ neg): Results Preview For 22nd July

REAL ESTATE
  • Icade’s equity is down -40% YTD and the company was placed on Neg Outlook since March.  
  • The healthcare business was sold in July 2023 and the company has been focussing on debt reduction and a reshaping of its business since then. 
  • Proceeds of the Healthcare spin-off were used to tender for 2025 & 26 bonds – they bought EUR 350m in May. 
  • Analyst earnings expectations for the full year are down 8% since January.  
  • The company is exposed to construction risk, a high vacancy rate and rent renegotiations. 
  • For bond holders, maturities are covered out to 2028 by liquidity and no bonds fall due until Nov ’25 which has already been partially paid. 
  • Issuance is unlikely unless they wish to take advantage of a strong market to extend their relatively short average life. 
  • Ratings Criteria from S&P are: 
  • Debt/Capital <40%
  • Debt/EBITDA <8.5x
  • ICR >3.8x

 

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  • Icade’s equity is down -40% YTD and the company was placed on Neg Outlook since March.  
  • The healthcare business was sold in July 2023 and the company has been focussing on debt reduction and a reshaping of its business since then. 
  • Proceeds of the Healthcare spin-off were used to tender for 2025 & 26 bonds – they bought EUR 350m in May. 
  • Analyst earnings expectations for the full year are down 8% since January.  
  • The company is exposed to construction risk, a high vacancy rate and rent renegotiations. 
  • For bond holders, maturities are covered out to 2028 by liquidity and no bonds fall due until Nov ’25 which has already been partially paid. 
  • Issuance is unlikely unless they wish to take advantage of a strong market to extend their relatively short average life. 
  • Ratings Criteria from S&P are: 
  • Debt/Capital <40%
  • Debt/EBITDA <8.5x
  • ICR >3.8x