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Icade's Profits Rose 69% in 2009

PARIS-The increase was almost entirely due to disposals, with turnover down 5.8% and the value of the portfolio marked down 10.3% like-for-like.

By Allan Saunderson | Updated on February 24, 2010

PARIS-French SIIC/REIT Icade posted a 69% rise in 2009 net profit to $713.8 million, but the increase was almost entirely due to disposals, with turnover down 5.8% and the value of the property portfolio marked down 10.3% like-for-like. Icade is proposing an unchanged dividend of $4.40.

Profit from disposals rose to €533m from €296m as the company pursued its strategy of taking capital gains from mature assets and using these funds to make acquisitions.

Icade, a subsidiary of state-controlled Caisse des Dépots, began the sale of its housing portfolio last year, with the aim of reinvesting in commercial property at the bottom of the cycle, and by the end of 2010 will have sold more than €2 billion of housing units for a yield of about 4%. Disposals were a key factor in a 49% rise in operating profit to €665 million, while rents rose 3.4% on a like-for-like basis. EBITDA fell 10% to €302 million, with the decline in the contribution of property development only partly offset by improved property investment.

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