Icade SA, the commercial property arm of France’s Caisse des Depots et Consignations, said profit excluding items rose 23 percent in the first half on higher sales at its homebuilding unit.
Earnings excluding disposal proceeds and other one-time items, known as net current cash flow, rose to 100.3 million euros ($145 million), or 1.94 euros a share, the Paris-based company said today in a statement. A year earlier, Icade earned 81.8 million euros, or 1.62 euros a share.
In February, Chief Executive Officer Serge Grzybowski predicted “strong growth” in net current cash flow in 2011 as Icade delivered homes and apartments it pre-sold in 2010. Sales at Icade’s property development arm rose almost 20 percent, led by its residential unit as low borrowing costs, tax breaks on rental property investment and government subsidies to encourage first-time buyers lifted demand.
Icade fell 17 cents to 83.32 euros in Paris trading. The shares advanced 5.6 percent in the six months through yesterday, lagging behind the 14 percent gain for an index of French REITs compiled by Amsterdam-based Global Property Research.