Icade Q3 revenue falls 9% amid challenging property market conditions

Investing.com -- French real estate company Icade reported a 9% drop in consolidated IFRS revenue for the third quarter of 2025, as the firm continues to navigate a difficult property market.

The company’s shares rose 1.5% on Thursday despite the revenue decline, which was attributed to lower gross rental income and reduced development activity.

Gross rental income from Property Investment fell 4.8% on a like-for-like basis to €263.2 million. The organic growth was positively impacted by indexation (+3.2%) and early termination fees in offices to be repositioned (+2.1%), but was offset by tenant departures (-7.4%) and negative reversion on renewals (-2.7%).

The development branch recorded economic revenue of €728.7 million, representing a 12.1% year-over-year decrease. This decline was primarily due to the completion of major projects in 2024 and a slowdown in the commercial segment, which together impacted revenue by €64 million. A gradual reduction in the residential backlog further contributed to the revenue fall by €34 million.

Housing orders remained stable in volume terms but decreased 5% in value terms, continuing trends seen in the first half of the year.

Icade has completed or secured preliminary agreements for €430 million in disposals so far this year, with €210 million in the healthcare business and €220 million from mature and non-strategic assets.

The company maintained its 2025 guidance for Group Net Current Cash Flow between €3.40 and €3.60 per share.

Looking ahead, Icade noted that the challenging environment characterized by institutional instability, high sovereign bond yields, and slowing inflation may continue to weigh on rental market and investment momentum in 2026, potentially affecting the recovery of the property development business.

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