Hello, everyone. I'm particularly happy to be here with you and Icade's management at its full year results presentation. As you will see in a few minutes, Icade delivers strong results in 1st half 2022, which is, given the current environment, a really strong performance. Thanks to the hard work and involvement of our teams, the performance of the three business lines is well-oriented, backed by the solid fundamentals of each of our markets. The Board of Directors and I would like to thank Icade's teams. At the same time, Icade's balance sheet is strong to cope with the new financial environment, and its diversified business model is honed to face volatile environment. More than ever in these challenging times, the board and the management remain fully aligned to cope with complexity and volatility and to ensure long-term performance. Our strategic priorities and targets for 2022 remain unchanged.
Olivier will come back on it further. For example, I would like to mention Icade's strong commitment to fight climate change and to reduce the carbon footprint of its assets. In 2022, for the whole firm, we announced an ambitious low carbon pathway with higher goals. With a 1.5 degrees pathway, Icade also remains committed to its far-reaching goals for preserving biodiversity. All of these items were included in the same climate and biodiversity resolutions approved by 99.3% of the shareholders at April's AGM. I thank you for your attention, and I will now turn it over to Olivier Wigniolle, who will present our results. Thanks.
Thank you, Frédéric, and good morning, everyone. Thank you for being with us this morning, and welcome again to our headquarters. It's always a real pleasure to see you in person here. Welcome also to those who are behind their screen in Paris, London or Amsterdam. I am with Victoire Aubry , our CFO. After our presentation, and as usual, we will have a Q&A session with the entire executive committee of Icade. Please don't hesitate to send questions by email or by phone, even during the presentation. Our meeting this morning is dedicated to the 1st half results, and I will, of course, elaborate on the outlook for 2022 and beyond.
In terms of overall context, 1st, I think it is clear now that the sanitary situation is fully stabilized in France, and the situation in our different markets is more or less back to normal. Compared to 2020 or to 2021, it's a real good news. However, as you know, the macroeconomic, the geopolitical and the financial environment have been very volatile over the last six months, leading to, let's say like this, some complexity and direct consequences on our businesses. In this context, and after now more than two years and a half of crisis and various shocks, I really do think that Icade has been very agile and reactive. Let's now jump into the figures with a brief overview.
Now I'm on page seven. I think it's a strong set of results for the 1st half of 2022. Our current cash flow increased by +7.1%, up to EUR 205 million. On a per share basis, it stand at EUR 2.7, at +5% growth, including, I think it's important to highlight, the impact of the significant disposal completed in 2021 and in 2022, and this figure is clearly above our expectation. Our EPRA NAV NDV stand at EUR 7.8 billion, which is EUR 103 per share, at +13.8% compared to the end of 2021, and it's a +19.9% year-on-year.
Victoire will come back to that, and Victoire will elaborate on the significant growth deriving from the interest rate evolution. I think it's important to highlight that this is also deriving from the structure of our liability and from our hedging policy, and we will benefit from both during the coming years. We are also highlighting the EPRA NAV NTA, which with a 1.8% growth at EUR 96.2 per share, and this is a 5.2% year-on-year. On the liability side, debt indicators clearly reflect the robustness of our balance sheet, and even more important in the current financial environment.
Improvement on the LTV at 38.8% and an ICR among the highest of the market at 6.6%, and a hedging policy that is very conservative on 94% of our total debt. Now on slide nine, you have the other main result figures and KPIs. I won't comment them extensively, as we will come back to them in a few minutes. To summarize, the good performance on both net current cash flow and NAV is the result of a solid business performance across our three different business lines combined with an active management of the balance sheet. In terms of gross rental income, total rents increased by +3.9%, up to EUR 285 million group share.
We have a solid EPRA earnings up by +6.6%. Regarding portfolio valuation, it stands at EUR 12.2 billion on group share, broadly stable due to significant disposal in the office portfolio. On a like-for-like basis, the valuation of our two portfolios are up, +1.3% for offices and +2.4% for healthcare. On average, blended figure, it is a +1.7%. Our financial capacity rate for the office portfolio stands at 87%. It's a slight decline compared to the end of 2021, which was impacted by disposal of mature and the fully let asset, combined with the completion of two promising new buildings, but that are not yet fully let.
For Icade Promotion, our development subsidiary, the strong momentum continued during the 1st six months of the year. Revenues amount to EUR 574 million, up 7%, and the net current cash flow is up by +19%. Again, on our two main group KPIs, group net current cash flow up by +7.1%, and the NAV per share, as already said, is up by +18% for the NT NAV and +13.8% for our NDV NAV compared to the end of 2021, and much more compared to the end of June 2021. I won't comment on the next two slides because they are summarizing our main achievements over the 1st part of the year 2022.
As we will go into the detail, I won't comment those two slide, but I think it's really fair to say that Icade remain very active on the operational and financial side, and also very focused on CSR and on our low carbon strategy. Let's go directly to the performance by business line on slide on slide 14, and let's start with the office investment business line. Regarding our office portfolio, let me begin by emphasizing once again the strength of our tenant base. It is not a new find, but 71% of our revenue come from large company, from CAC 40, SBF 120, or government agencies. Therefore, one of the strength of our office portfolio is clearly the credit rating of our tenant.
64% of them are ranked at a very low risk. Second topic I would like to address, it's the topic of the moment, it's inflation. I know this is not intuitive, but the impact of inflation is positive as inflation boosts the indexation. As a reminder, as you know, 100% of the office leases in France are indexed on indexes integrating a significant inflation component. 75% of our leases are indexed on indices called ILAT and 25% on other indices called ICC and ILC, and all of them have a strong component reflecting inflation.
With the rise in the values indices since Q3 2021, the average indexation that is reflected in our H1 figures for the office rental income is a +2%, and the impact for the whole year is estimated roughly at +3% with a stronger effect in the 2nd half of the year. A word on our leasing activity in the market, which is now under normalization. Leasing activity remain quite strong with more than 60,000 sq m newly signed or renewed in our portfolio. They represent an additional income of EUR 11 million and a weighted average lease break at 6.88 years.
If you take into account all the leases already signed but not yet started, they represent a total amount of additional rental income of EUR 16 million. All in all, once again, in a market under normalization and in a context of dynamic asset rotation and significant disposal, gross rental income group share stood at EUR 181 million, which is a slightly negative figure. It's in our view a very resilient operational activity. Victoire will come back in detail on the evolution of the rental income in the financial section. Let's move now to slide 15.
After more than EUR 500 million of disposals in 2021, we managed to dispose two buildings in the 1st part of the year for more than EUR 400 million. We completed the sale of the Millénaire four building, a 25,000 sq m asset located in the north of Paris, EUR 486 million. We completed also the sale of a building called Gambetta, a 20,000 sq m asset located in the east of Paris for EUR 219 million. Those two transactions were achieved at prices in line with valuation at the end of 2021. Both transactions are showing a double-digit equity IRR, demonstrating again the strong appetite of investors for core assets and the attractiveness and liquidity of Icade office portfolio.
As a reminder, we target an annual average volume of disposal of EUR 500 million- EUR 600 million, which means that there is a little bit more to come this year. Now on slide 16. A few words on our office development pipeline. Combining started and uncommitted projects, the pipeline at the end of June represents an amount of EUR 1.3 billion. It is a +EUR 400 million compared to the end of December 2021. The started part of the pipeline represents more than 15% of the total, and it is made up of eight selective projects pre-let at a level of 40%. You have the details of the pipeline in the appendix.
Among this project, we have a project called Next in Lyon. This is a 15,000 sq m office refurbishment project, and it was fully pre-let in June this year, and the project will be completed by the end of June 2024. That's the very good news. One of our most important project is a project already well known called Edenn, a 30,000 sq m office scheme in Nanterre, already pre-let at a level of 60% to Schneider Electric. That will be the future French headquarters of Schneider, and the building will be completed in 2025. Another new appealing project that is about to be launched is a building on Champs-Élysées. For sure, it's a location a bit unusual for Icade.
We will present this project more into the detail during our next investor day. Let's move now to slide 18 about healthcare. Regarding the healthcare division, our rental income is strongly up with an increase year-on-year of +13%, up to EUR 104 million on a group share basis. The growth is mainly driven by the acquisition completed in the 2nd part of 2021, mainly abroad in Portugal with the acquisition of four private clinics at the end of 2021, but also in Italy and in Germany. As a reminder, acute and post-acute care sector remain by far the largest contributors to our rental income with 83% of the total healthcare rental income.
As for the office division, nearly 100% of the healthcare leases are indexed on indices integrating a significant inflation component. As such, during the 1st semester, we recorded a +1.7% indexation impact on our rental income. The more we will go into the year, the more we will capture indexation as a large part of our French leases are indexed in H2. We expect also the effect to be +3% for the entire year. The financial occupancy rate is unchanged at 100%, and the average lease break is circa eight years, significantly up versus the end of June 2021. We're now on our international exposure, which is a key part of our growth strategy.
At the end of June, 15% of our gross asset value is located abroad with assets in Germany, in Italy, and more recently with assets in Portugal, where we entered six months ago with four private hospitals and also in Spain with six assets, including both acute care and nursing home facilities. Over the last six months, we also added new top tenants to the portfolio with namely Gruppo Villa Maria in Italy, Colisée and Miranza in Spain or Lusíadas in Portugal. At the wrap-up, this performance again reflects the resilient profile of the healthcare portfolio with regular and growing cash flow while capturing inflation progressively. Now on slide 19.
Let's review now what we achieve in terms of investment during the last six months for Icade Santé. We have kept implementing our discipline and I think selective acquisition plan with EUR 167 million of transaction, out of which nearly EUR 120 million were assets acquired in southern Europe. As you could see, the international portfolio diversification is clearly on its roadmap. In Spain, we add six long-term facilities to our portfolio operated by Colisée Group, a new tenant for Icade Santé, as well in a private clinic operated by Miranza.
We also closed the 2nd acquisition of a private hospital, it's a bit unusual, in Italy, out of a portfolio of four private hospital signed with Gruppo Villa Maria in 2021. This acquisition represent 26-year weighted average leaseback, which is for sure quite attractive. Going forward, project-centered exclusivity represent at the end of June EUR 500 million of potential new investment reviewed by Xavier and the team. The pipeline, which is already signed and which remains significant, represent more than EUR 430 million of investment to be completed by the end of 2025, with a growing share of international investment, roughly 70%. On the world pipeline, we expect EUR 22 million of additional rent roll income.
As of today, at the end of June, we have already completed 35% of our EUR 3 billion investment plan, which is a plan by the end of 2025. Last but not least, we recently closed the sale portfolio of four private clinics to optimize the portfolio in France for EUR 78 million. This transaction has been closed with a 10% premium above appraisal value. Again, the market appetite for healthcare real estate assets is even stronger now, and therefore we really do think that we have a potential upside on top of our NAV valuation. Let's move now to slide 21 and for our 3rd business line, property development with Icade Promotion.
Icade Promotion posted again, I think an excellent performance in H1 2022. The economic revenues stood at EUR 574 million, which is a +7% compared to H1 2021. This performance is clearly driven by a very strong demand for residential and the dynamic in Q2 was particularly strong. Icade Promotion posted a commercial activity much higher than in 2019, 2020 and 2021, with nearly 50 commercial launches for a total of more than 2,000 apartments in a market that remains clearly under supply. In this context, new housing orders for the semester stood at EUR 678 million, 15% growth in value.
The good result of Icade Promotion are also due to the office segment with the volume of office sales up 5% at EUR 192 million. Regarding this figure, let me highlight two transactions with an off-plan scheme sold to Goldman Sachs in Romainville. Even Goldman Sachs invest in the suburb of Paris. Pre-let to the French Ministry of Finance and representing more than 33,000 sq m, EUR 447 million. The signature of another off-plan scheme sold to INEA in Lyon for EUR 20 million.
The momentum continued in July after the end of the semester for the office transaction, and Icade Promotion assigned an agreement with a leading investor, a German investor, for a refurbished office building in La Part-Dieu in Lyon for more than 13,000 sq m, representing an additional turnover of nearly EUR 55 million. Maybe more important, as you could see on the right-hand side of the slide, is that the operating margin is up at 5.5%, which is 50 basis points compared to last year. We will come back to that, but clearly, Icade Promotion has been able to manage the other hot topic, which is the increasing construction cost.
The midterm future for Icade Promotion is also quite well oriented, and we have a very solid driver to deliver the growth for Icade Promotion. An example is the know-how in low-carbon construction. Icade Promotion was awarded two new significant innovative project. Also the ramping up for renovation and refurbishment scheme with a real potential in the redevelopment of office building. Let me also highlight the know-how of Icade Promotion in large land plots redevelopment. During the 1st part of the year, Icade Promotion has recently signed with some partner the acquisition from Engie of 70 former industrial sites to be converted and redeveloped.
The last driver, which could be a selective external growth with the acquisition of a regional developer in Occitanie. The name of the developer is M&A Promotion. It's an M&A transaction, but that's the name also of the developer. This transaction represent an additional EUR 170 million of revenue over the next three year. If you look at the forward KPIs of Icade Promotion, they are strongly up. The medium-term revenue potential for Icade Promotion amount to EUR 8.3 billion. Probably by the end of 2025, 2026. Up 9% compared to the same figure at December 2021.
It includes several things, but it includes the backlog, up +5% in residential at EUR 1.7 billion. It includes also a controlled residential land portfolio, not acquired, but controlled, representing EUR 3.1 billion of potential revenue, which is up +14% compared to the same figure at the end of December 2021. All the indicators of Icade Promotion are well-oriented, and we are really confident in our capacity to reach the target for 2025, which is just to remind you, which is a revenue of around EUR 1.4 billion and a margin close to 7%. I'm now handing over to Victoire for the detail of our financial result. Victoire, the floor is yours.
Thank you, Olivier, and hello, everyone. Before going into the details of the income statement, let me briefly remind you of the changes that have been made to the presentation of the accounts since December 2021. Two improvements. First, we decide to change accounting method for the valuation of investment properties to fair value method instead of historical cost previously. Of course, H1 2021 results have been restated. Second, we opted in 2021 for an economic presentation of the P&L with all P&L indicators presented in group share. It is intended to better reflect the economic contribution of each business unit, starting with the top line in the P&L. Once again, H1 2021 has been restated. Back to our June 2022 results. I'm on slide 25. As Olivier said in his opening comments, Icade delivered solid H1 financial results.
Let's go into details of the income statement of the office and healthcare investment divisions. EPRA earnings for those divisions stood at EUR 193 million, up +6.6%. This reflects a solid growth in rental income of our investment divisions, growing by nearly 4% to EUR 285 million, and a net to gross rental income ratio that remains at a strong level with almost 93%. Regarding the efficiency performance, the EPRA cost ratio, excluding vacancy cost, improved by 110 basis points and remained below 10%, reflecting a strong management of administrative expenses. Those two positive items explain the strong performance of EPRA earnings from property investment by nearly 7% above our expectation.
I would like also to remind that healthcare is a significant contributor of the total results of the investment business of Icade, with a contribution of 42%. Let's jump on slide 26 that shows the performance by activity. First, the financial results of the office investment division remain very resilient and solid, as Olivier said before. In a context of dynamic asset rotation with EUR 500 million of disposal in 2021 and more than EUR 400 million of the 1st part of 2022, the gross rental income of the office division stood at EUR 181 million, slightly negative compared to 2021. The 2021 acquisition, I remind you, Equinove and Real Assets, as well as completion of Fresk and Origine, two significant project delivered in 2021, partially offset the impact of disposal.
Excluding the impact of 2021 and 2022 disposals, the gross rental income of half-years will be nearly up +6%. On a like-for-like basis, firstly, the decrease is in line with our expectations, and it reflects three main impacts. First, the evolution of the financial occupancy rate. As explained to you, this indicator has been impacted by the disposal of fully let mature assets, as well as the completion of two major buildings for which a part is still vacant. But we also have a positive +2% indexation in effect in H1 2022, which offsets partially the 1st impact. And the full year impact of indexation is expected to reach +3%. Third, a consequence of the renewal of the lease of our most important tenant, AXA, in 2021, 75,000 sq m of offices for an additional nine years term.
This renewal clearly reinforces our rentals, but continues to have negative impact on a like-for-like basis in H1. On top of that, we continue to manage carefully our operating costs. It is, for us, a very important topic, especially in the context of a more challenging environment. The evolution of our EPRA cost ratio, excluding vacancy, is, I think, a good illustration of this. We also benefit, continue to benefit from the positive impact of our attractive cost of debt. As a result, EPRA earnings for the half-year division posted a solid growth by 6.4% at EUR 112 million. Now, in terms of healthcare division, all the indicators are well-positioned. Gross rental income grew by 13.4%, driven by a further expansion in France and southern Europe.
On a like-for-like basis, the growth is mainly due to the positive impact of indexation, + 1.7%. The rent, the net rental income reflects a high net gross rental income ratio, around 98%, among the highest in the healthcare sector. Thus, EPRA earnings grew by nearly 7% to EUR 81 million group share. To recap, our investment activities have remained dynamic, thanks to a very resilient activity of our office investment division and continuing growing performance of our Healthcare One. Let's now switch to the result of our property development activity, Icade Promotion. A pretty solid H1 result, too. I'm on slide 27. The operational and financial performance observed in 2021 has continued in 2022 and is reflected in our results.
Economic revenues grew by 7% to EUR 574 million, driven by both residential and office dynamic activities. Revenues from residential segment rose by 4% to EUR 475 million, that represent 83% of the total activity. This segment is particularly supported by a strong demand and also a scarcity of offer. In H1, the market did not show any sign of slowdown. Revenues from the office segment grew by 27%, reflecting the solid business momentum. I also want to highlight that we improved our operating margin by 0.5 basis points to 5.5%, thanks, as Olivier just commented too, 1st, higher volume, obviously, 2nd, residential prices that remain well-oriented, and 3rd, thanks to our capacity to manage inflation, to manage inflationary environment with an appropriate monitoring of technical costs.
Thus, net loan cash flow contribution of the for a total of EUR 30 million, which represents +19% growth. We are now at the key point regarding the group net loan cash flow. I'm on slide 28. Net loan cash flow increased by more than 7% to EUR 205 million. As I told you just before, driven by the performance and the contribution of all of our three business lines. That shows, once again, the strength of our diversified business model. By activity, office investment net loan cash flow grew by 4%, and again, thanks to the resilient activity and an improvement in cost of financing. Healthcare division generated +7% growth in net loan cash flow, driven by its strong expansion plan.
As commented just before, the property development business recorded a sharp 19% increase in net new cash flow. On a per share basis, it represent an increase of 5% to EUR 2.7 per share. I remind you, the slight dilutive impact on per share basis comes from the 2021 scrip dividend. Let's now move on to the liability part on which the context, the company has continued a very active and optimized management through the semester. First, I'm on page 30. First, Icade issued last January a new EUR 500 million green bond, bringing the total amount of green bonds outstanding to EUR 1.7 billion. This bond was issued at attractive conditions, eight years, 1% coupon, which allow us to continue to decrease our cost of debt at 1.19% end of June, -1 0 basis points.
Second, the group announced in early March the early redemption of the EUR 279 million bond maturing in 2023. Our next important financing maturity is now in 2024. This operation also allows Icade to maintain maturity of debt around six years. Icade Santé has also continued to strengthen and improve its liabilities with two operations, including the signature of revolving credit facilities for EUR 400 million with a five-year maturity concluded on very attractive terms. Debt indicators all improved. LTV ratio is down 135 basis points at 38.8%, and ICR stood at 6.6x compared to 6x in December 2021.
Looking now at the interest rate exposure, it is important to notice, as I said before, there is no debt maturity before 2024 and even 2025 for bonds. Thanks to a very conservative hedging policy for several years done in very attractive conditions, we benefit from a conservative level of hedge at 94% end of June, and 80% until 2024. Notice also that the variable debt maturity, three years, benefits from capping instruments maturity of six years. On top of those very positive characteristics, the group benefits from a comfortable liquidity position to face short-term financing needs. EUR 800 million in cash and EUR 1.9 billion in credit facilities. All in all, our balance sheet is, in our view, very well adapted to face the rising interest rate environment.
All these liability management policies will indeed help us to significantly slow down the impact of rising interest rates. To be more concrete, let's quickly comment on page 31, our four key debt metrics that show how solid is our balance sheet. Cost of debt, as I said before, continued to drop and stood at 1.19%, an all-time low. Debt on EBITDA ratio continued to decrease at 10.7x as of June. Our LTV ratio, as I said, significantly decreased by 135 basis points at 38.8%. Another key KPI also to illustrate the soundness of our credit profile, the ICR, it exceeds six multiples at 6.6x. We are more than comfortable. All those KPIs show you how strong we are to face a new financial environment. Turning now to valuation part.
Slide 33 shows the evolution of the valuation of the office and healthcare portfolio. Physical markets remained strong and well-oriented during the 1st part of the year, with active transactions and no sign of valuation slowdown. As you can see on this slide, we have positive trend on both portfolios on the like-for-like basis. First, for office portfolio, evolution on like-for-like basis is +1.3%, reflecting, in particular, dynamic markets and continuing cap compression yield in the regional cities, and also continuing strong demand for labs and small business premises supporting our business parks valuation. The value of our office portfolio stand at the end of June at EUR 8.2 billion. The -2.3% as reported basis mainly reflects our net disinvestment position end of June, -EUR 274 million. Healthcare.
The value of our healthcare portfolio stands at the end of June 2022 at nearly EUR 4 billion on a group share basis, +2.3%, 2.6% on a reported basis, and also 2.4% on a like-for-like basis. This reflects the continuing growth plan in the division and also, as I mentioned just before, a continuing cap compression in line with the attractiveness of the asset class. Positive like-for-like performances on our office and healthcare portfolio directly is fully in line with what happened in the physical market in H1. The gap of appreciation between the physical and the listed real estate market is therefore difficult to rationalize. The slide 34 presents the evolution for our NAV, EPRA NDV, and EPRA NTA. I'm on slide 34, sorry.
The solid operational and financial performances have been made and reflect in the growth of our NAV. EPRA NDV amounts end of June at EUR 103 per share, a strong 13.8% growth over six months and +20% on a year-on-year basis. Also, thanks to one more time, the very attractive average cost of debt of the group, which had significant positive impact on EPRA NDV, +EUR 9 per share in six months, and which will allow us, with our strong hedging policy, to manage a new financial environment in the coming years. EPRA NT stood as of end of June at EUR 96.2 per share and delivered a +1.8% growth and +5.2% year-on-year.
To conclude this financial section, a view of our diversified business models through the NAV KPI. I'm on slide 35. Based on EPRA NTA on a group share basis, office and development represents 63% of the valuation of Icade, whereas healthcare division represents 37%. On the right side, we provide figures for the combined financial statement of the healthcare property investment division. EPRA NTA stood at end of June at EUR 4 billion in total, EUR 97.9 per share, up 2%. All detailed figures are available on Icade Santé website. Thank you for your attention. Now, I leave the floor to Olivier for the last part of the presentation.
Thanks, Victoire. Let's talk now about the future, about outlook. To start, I will say that we are, I think, at, let's say like this, more than concerned by our share price. It's an understatement. I do recognize that we don't understand reason for such a discount on NAV above 50%. Even more when it's a target price at this level of discount. Probably for the reason for that is that we, I mean the company, the analyst and the investor are not seeing the same future for Icade. As you know, a share price is all about future, unfortunately not about past result.
Therefore, I think it's important for us to give you our vision of our future. Talking about the future, about our outlook, there are four reasons why we are very confident. Let me present each of them. The 1st is our portfolio is clearly more than resilient. Second, the growth of healthcare portfolio will continue. Third, we do confirm Icade Promotion roadmap. Fourth, indexation will more than offset the rising cost of financing. These four reasons are not just self convincing statements. I will elaborate on each of them, but it gives us a strong visibility on our cash flow and dividend.
To start, about our office portfolio, we say that our portfolio is more than resilient. When you talk to large corporates such as AXA, Veolia, BNP Paribas, the public agency, those are large corporates that are the bulk of Icade tenant portfolio. What did you want in terms of corporate real estate, in terms of an office building? To summarize, I think they want four things. They want good location, especially in terms of public transport. They want affordable building in terms of rental values. They want a high level of services, and they want also a high level of environmental specification. You know quite well our portfolio.
You have visited a large part of our portfolio, and I really do think that with four key criteria for large corporate, it's exactly what we have in our portfolio. It's exactly the characteristic of our office link. I am meeting a lot of our tenants. I'm meeting a lot of very large corporate, and I don't think that they are very numerous to have any project to come back in the CBD of Paris for the reason I just mentioned. About our office portfolio, in this slide, what we want to highlight. If I have to summarize my message, I would say cash is king or maybe more cashflow is king.
The average cap rate of our portfolio stands at 5.5%, significantly above the ten-year French rate, and significantly above our average cost of debt, and still above the current cost of financing. Which means that we still have an accretive leverage on our portfolio. Those that are in the real estate market for decades, I think hopefully that they will confirm that when interest rates are rising, the valuation of buildings that are the most impacted are, I think, the low cap rate asset.
Just to remind you that when we are at 5.5%, the prime yields in the CBD of Paris was around 2.6% at the end of last year. Talking about healthcare, the 2nd reason to be confident, our healthcare portfolio. Again, cashflow is king. Not in this slide, you will find that in the appendices, but the average cap rate of our healthcare portfolio is 4.9%, and the portfolio is 100% fully let with long-term leases. Despite the turmoil in the world, the appetite of the market for healthcare continues to grow.
Healthcare is seen by a lot of institutional investors as a very safe harbor. We have seen cap rate compression during the 1st half of the year. There are some transactions that are ongoing in the market, and they will probably show again an additional cap rate compression. The key question I think about for Icade and for Icade Santé is the following. We had to postpone the IPO, and clearly the market conditions are not favorable for a relaunch in the short term. How will you finance or will we finance our investment plan? The answer to that more than relevant question is that we have an option, and that's why we do confirm our investment plan.
For sure, I think we are financially disciplined, and we have already taken into account the new financial environment, which means that we have to change for more structured transaction. For more greenfield project, for more special situation in order to keep attractive acquisition prices. To finance that, the options I was mentioning are the following. First, the existing shareholders of Icade Santé, including Icade, the shareholders of Icade Santé, they are supportive, and they still have a strong appetite for the asset class. Believe me, Icade has no issue to finance our stake in 2022 and even in 2023 in Icade Santé investment volume.
Another option is to attract new shareholders on a private basis for investors that have appetite for healthcare real estate. Icade Santé is really seen as a trophy asset. Among life insurance companies, retail asset managers or pension funds, I think there is a lot of appetite for healthcare real estate. The 3rd option is for sure the IPO is clearly on hold for the time being, and let's see when the market conditions will be better. It is for sure we have been very disappointed to have to postpone the IPO last December. At the end of the day, to have today 58% of the growing and sustainable cash flow of Icade Santé is finally a good news for Icade.
For the 3rd reason why we are really confident on our future is that, with a high level of confidence, we do confirm Icade Promotion roadmap. Just remind you the roadmap is a revenue of EUR 1.4 billion and a margin at 7% by the end of 2025. The key question for Icade Promotion is how do you manage the issue of the rising construction cost, is the key question because on the revenue side, no doubt that the market and the demand are there. The demand is strong for residential and as I said, also for brand-new office buildings that are pre-let.
Even if the cost of mortgages has increased for our client, it is still a little bit below 2%. It remains really attractive on the long-term perspective for our private individual clients. To answer the key question of the way we do manage construction cost, I think there is no magic in the answer. The answer to that complex question is a combination of several elements. First, what we have seen during the recent week is that maybe the cost of construction seems to stabilize. Let's see. Clearly nothing to compare to what we have seen during Q1. We will also, for the reason I mentioned, we will also continue to benefit from current attractive sales price.
For sure, we have, and it's probably the most important, we have adapted our construction process with less general contractors and more separate contractors. We have also already started to adapt the pricing of plots of land that we are acquiring for the development of our new scheme. Having said, we don't have currently any acquired plots of land on our balance sheet with the cost of price issue. The roadmap is fully confirmed. The 4th reason to be confident for Icade future. In fact, the question is about the rising cost of the financing. How to manage that. Will the increasing level of interest rate impact negatively our cash flow?
As of today, when I look at the next three years, our answer is no. How is it possible? First, look at our debt schedule. Really comfortable for the next three years. Due to that schedule, our average cost of debt will remain below 2% until the end of 2025. We have more than three years and a half to adapt our investment strategy and our financial policy. Our interest cover ratio will remain by the end of 2025 clearly around four times.
We are really comfortable, and this is one of the reasons why S&P confirmed last week our BBB+ rating with a stable outlook for Icade and Icade Santé. Now let's go into the slide 43. I think this slide is key to understand why we are confident about the impact, of course, of refinancing. What we have done here, we have compared the impact of indexation and the impact of increasing interest rates on our financing. It's a forecast where everything being equal, which is, in my view, a very conservative assumption, but it's the starting point.
You have the level on the left-hand side of the slide. You have the assumption that we have taken into account for indexation and the cost of a refinancing that we will take into account for the future. The basis of our calculation for revenues is EUR 565 million of rent, which is the amount of rent for 2022 on a group share basis. The results are the following. The impact of the indexation for the next three year, over the next three year will be close to EUR 100 million. It's cumulated figures. It's EUR 100 million.
If you look at the impact of the increasing refinancing cost, it will represent EUR 55 million over the next three years. When you look at this kind of figure, that's why we do think that we have really a strong visibility to deliver growth in our net current cash flow and dividend over the next three years. Now time to conclude the presentation with the guidance for 2022, and now I'm on the last slide, on slide 44. For sure, our guidance is subject to the non-degradation of the sanitary situation and to the possible negative consequences of the geopolitical context, if any.
We confirm with a high level of confidence our guidance for 2022, which is a net current cash flow per share expected up +4%, excluding the impact of 2022 disposal. You have seen that for the 1st semester it's +7.1%, and +5% per share, including the impact of disposal. The net current cash flow of the healthcare division will be up by +5%-6%. Finally, the 2022 dividends subject to the general meeting approval in 2022 will be up by +3%-4%. As you know, our current plan ends in December 2022. For the current plan, out of four years, we went through three years of a quite severe crisis.
At the end of the year, for sure we will make a final assessment of the past period. I really do think that it's fair to say that Icade has been able to cope with this crisis and shocks that occur since 2020. What is important for investors is not the past, again. It is the future. We will come back to you on the occasion of our investor day, which will be this year on November 28th, to explain what we will do in the future. The management, the board are really confident in the fact that Icade will continue to deliver an attractive total return for our investor. Thank you for your attention. Now ready to answer with the team to your question. Do we have a question? We have a 1st question. If we just give a few 2nds to the executive committee to arrive on stage. Florent, we are ready.
Hello, good morning. Florent Laroche-Joubert from ODDO BHF. Thank you very much for this detailed presentation. I would have three question. The 1st question is on offices and the occupancy rate. Do you have any advancement in your distribution of Fresk and Origine? And also maybe do you have any challenge in terms of reletting to come by the end of 2023? That would be the 1st question. Second question also maybe on the offices and on disposals. I understood that you expect more disposals in 2022, but on the other side we understand that investment market is not so liquid today in Paris region. Could you please give us maybe a little bit more color on where you are on this process? Maybe a 3rd question on the healthcare. You say that you have the possibility to attract new shareholders on favorable terms. Does that mean that you have already started some discussion with some potential candidates? Thank you.
On your 3rd question, on occupancy rate, hopefully we will have some good news on Fresk in the near future. Still trying to find some tenant for the remaining part of Origine. Let's see what will be the situation by the end of the year. I think those two buildings are in their respective sub-market. They have a lot of competitive advantages. For sure, the market is softer than in the past, but we are confident with the fact that in the coming months, those two buildings will be fully let.
We have no other challenges because if you look at our pipeline, there is no new delivery except a building which is fully pre-let in 2023. The other challenges will be in 2024 and 2025 when Edenn will be completed. As you have seen, our project in Lyon Next is already fully pre-let. I think the challenges are not on new delivery. We are talking to our existing tenant to when they have to renew the leases to renew a bit like we have done with AXA at the end of last year.
The market is complex because the overall economic context is complex. I really do think that Emmanuel and the team is performing in this complex market quite well. In terms of disposal, in terms of volume, if you look at the market for the 1st six months, it was a significant increase compared to last year. I think it was 29% at EUR 12.5 billion, the investment market. The forecast of some brokers is that the market should be softer in the 2nd part of the year. Let's see. As I said, we have disposed EUR 400 million. Our plan is to do a little bit more.
Back to my two comment, I think the kind of building that we are putting in the market with cap rate, which are between 4.5%-5% for institutional investors such as life insurance company, retail asset manager in France, SCPI or pension fund, those institutional investors, they are really risk averse. They are looking for long-term cash flow. If you put this kind of, they have to take into account the fact that now sovereign French 10-year rate is at 1.6%, 1.7%, compared to 0.2% at the beginning of the year. I think on the kind of building that we put on the market, that's probably a segment of the market.
A good building, fully let, cap rate between 4.5%-5%. I think this segment of the investment market should be protected. Again, it's not to talk about my colleagues, but when you start at a cap rate at 2.5%, 2.6% to absorb or to offset the increasing interest rate is probably a little bit difficult. On healthcare, the key message that we have the capacity, especially you have seen that we have done EUR 167 million during the 1st six months of the year. Cash out is less than that because there are forward purchase. In these figures you have forward purchase, so the cash out is limited.
For 2022, we have the capacity with the minority shareholders of Icade Santé to finance the growth. You are probably aware of the fact that there will be some significant portfolio on the market by the end of this year. We are talking about a portfolio of EUR 600 million-EUR 700 million, maybe more than that. If we will have appetite for such a portfolio, that will be an opportunity to go and to see if we need some additional equity to finance that. For the time being, and due to the volume, and even if we are ahead of our roadmap, we don't need any additional equity. The current shareholders of Icade Santé will finance.
If we will move for a significant portfolio, for sure we will try to find some new equity. After the fact that we have postponed the IPO, we have received clear indication of interest of investor that could be interested to enter in a private vehicle. I think if really we have option to finance a significant growth in 2022 for healthcare and for Icade Santé, if any. Any other question in the room or in by phone or by email? By phone. Two questions. First one.
First question comes from the line of Stéphane Afonso from Invest Securities. Please go ahead.
Yeah, good morning and thank you for the presentation. Four questions on my side, if I may. The 1st one on the office division. Do you still target an occupancy rate of above 90% by the end of the year? And also, could we have an idea of the reversion rate in H1? And also for the office division, I understand that the EPRA earnings increased by 6.4% mainly due to lower operating costs. Could we assume this improvement in OpEx as normative? And finally, regarding the current climate of rising interest rates, how comfortable are you with the yield on cost of your committed and uncommitted office pipelines? Thank you.
4th, do you want to answer those four question about the office portfolio? Do you have a microphone? You need one.
I understood everything, but for the financial occupancy rate, as Olivier said, the occupancy rate will increase for sure by the end of the year, for three reasons. First, thanks to the already signed leases, but not yet started. For the good results of negotiation with the tenant of our building Fresk. We hope and we are very confident to fill this building before the end of the year. Also for the dynamic leasing activity in our park of Rungis, which will be confirmed in the next six months of this year. The other question, it was-
Reversion-
Uncommitted-
Lower operating cost.
We continue to stabilize the
I think on the reversion we have in the portfolio, I think a slightly negative reversionary potential. It's probably around -4.5% to -5%. Let's see, because, you know, reversion, it's when you have a break option and once you renew leases, so it's not day one. It will depend on the indexation, it will depend on the evolution of the market. But at the end of June, if we look at reversion, in which you compare, you know, fair market rental values given by the appraisers and by the expert compared to the existing rental.
We have a slight reversion in the portfolio, but we have taken that into account for, you know, the forecast of our cash flow in the future. Operating costs, for sure, as Emmanuel said, we have lower operating costs in the 1st six months. We'll try to do our best to, you know, to have the same kind of improvement in the 2nd part of the year, for sure, when the market is a little bit more complex. You are very cautious on what you spend and how you manage our cost. It is true for, you know, cost at the level of the portfolio, but it's also true at the level of administrative cost. I think the company is very disciplined on that. Hopefully, we will have the same kind of improvement. I'm sorry, but I didn't catch your 4th question. Could you repeat it again, or someone could repeat me the question?
The yield on cost.
Yes, it's about your yield on cost on the committed pipeline and uncommitted pipeline in the office division.
It's more than 5%, exactly 5.1%.
I think we have the detail.
The question is, how comfortable are you with that number?
When we give a figure, let's say like this, it's we are reasonably comfortable. Having said that, some buildings are pre-let, so the yield on cost of a building such as Next, we are really comfortable because the building is fully pre-let. We will deliver a small hotel in 2023. For sure, we know the yield on cost. If you look at the significant amount in the pipeline, we have a building in Aubervilliers called Jump. It's partially pre-let to the hotel, for the hotel part. So we have the office part, which is not pre-let. We are comfortable with the level of rent that we have taken into account in the business plan. Let's see how we will be able to pre-let or not the building. There is no question about the cost of the building, because you know the contract with the general contractor.
Always-
Has been already signed. We have no issue on the cost side of the business plan. If you look at the other, we are about to launch the significant project on the Champs-Élysées. I think we have a, I say, realistic and conservative assumption, both for the cost of the refurbishment and for the future rental value. Again, on buildings that are pre-let, really comfortable with the future revenue. On the cost side, on the pipeline, because now it's probably more an issue than in the past, I think that the kind of relationship that we have with contractors, with general contractor or separate contractor, allow Icade. For sure, we have to face the inflation and the rising cost. If you compare for the same kind of technical specification, the same amount today compared to one year ago, in our view, the increase probably +8%-10%, so it's above the general inflation in France.
We really do think that we should be able to manage that, both for the pipeline for the office portfolio, but it's also true for the development division. The healthcare pipeline is a bit different because we just sign contracts when we clearly know what will be the future revenue. This mean that we have a building which in the pipeline which are already 100% pre-let. We sign only contract when we also sign at the same time, you know, the contract with the general contractor. We don't have this kind of a question on the pipeline for the healthcare division.
Thank you. Maybe one last question on property development. The others are up 15% in value but decreased by 4% in volume. I understand that there were more building permits granted in France in H1. Having said that, could you give us more color on the timeframe to clear your stocks?
Emmanuel, do you want to respond? La base de réservation en nombre. Respond in français. Emmanuel, compare la hausse en volume. La raison est-
It's true that.
We are observing another supplier significant with 70,000 flats on the offer. It's more than 30% less than the average. With this demand, with a still strong demand on the solvent demand, we are able to sell our offers. About the permit, the building permit, we can say that the mayors are able to deliver them. In the last year, we have obtained nearly 7,000 plots in permits. The offer is in a good range.
Okay, if you're saying less in volumes and you have more building permits granted, what about your capacity, like, to clear your stocks? The evolution of the stock during the H1 and maybe for the years to come.
Don't forget that on top of private individual clients, we have a block sale, and as far as I remember in the 1st part, we didn't sign any significant block sale. We'll sign a lot. There is no risk that the level of stock for sale, you know, by the end of the year will increase. We have no stock which is finished and completed. We have clearly, for the time being, a positive view on the evolution of the market. We have said that we have launched 50 schemes during the 1st part of the year.
26 of them were launched in June, and that's why you don't have in the number of, you know, of new orders, you know, because when you launch a scheme, mid-June or end of June, you will see the increasing numbers of new orders just in the 2nd part of the year. As Emmanuel said, we have the available stock for sale, which is, in the current market, the most important topics for developers.
Okay, thank you.
I think we have a written question also. No, we have another question by phone, and after, Jerry, the written question, please.
The next question comes from the line of Marc Mozzi from Bank of America. Please go ahead.
Hello, Marc.
Yes. Thank you very much, all. Thank you very much for providing us with a better improvement in your accounting. In that field, what would be your pro forma consolidated LTV? Because I understand that your healthcare has a lower LTV ratio than the rest of the group, so what would be that pro forma or consolidated LTV, if you have any clue?
We have.
I'm sure.
What?
Come on. On group share, yeah, no. On group share basis.
That's for me. That's for Marc.
Yeah. It's your question is about the LTV on group share basis. I don't have directly the figure, Marc, so I'm sorry I will answer it to you. I will give you this. No problem.
Okay. Thank you. Because I think it would be closer to what the EPRA is now targeting as EPRA LTV.
Discussion at APA about the way to calculate LTV. I think that the new rules will be implemented by the end of the year. Do not worry, Marc. We will apply the new rules when they will be taken into account. Your comment was right. The level of leverage is not the same between Icade balance sheet and Icade Santé. Again, and as we have always presented, a part of the debt at the level of Icade is dedicated to Icade Santé because it was used to finance the increase of capital of Icade Santé. Jerry, could you read the written question?
The question comes from Ben Richford, Societe Generale . In fact, there are three questions which are connected.
Complex.
Assuming the NDV reflects a mark to market of debt and derivatives at 13th of June, how would that have changed to today, given dynamic debt markets? Question number two, what would be the impact of marking credit spreads as well as swap rates? Question number three, how do you expect the changes in debt markets to be reflected in property yields and capital growth?
That's three question for you, Victoire.
As I explained it to you just before, the NAV, NDV include fair value of our global debt and also derivatives, and it represent, as you said, a significant amount. It's + EUR 9 per share. Just to give you more flavor of, we can say a translation in concrete level of debt for Icade so far today, if I have to issue an eight-year bond maturity today, the coupon will be 3.75%. Just compare that to what we have done beginning of January. Regarding our hedging policy and the derivative we had in the balance sheet, it is so far a level of cost around 0.25% for the global amount of swap we have.
If I have to hedge my balance sheet today, it will be around 200 basis points-250 basis points. A quite significant increase. Clearly it's that's why we had this significant impact on the NDV end of June. For the 3rd part of your question, it's we can go back to the slide Olivier comment just before regarding the risk premium between-
Which one?
I don't know the number, which shows you the risk premium compared to sovereign bonds. In our point of view, there is a quite-
This one.
Yes. Thank you very much. A quite significant buffer to absorb, quite, the important increasing rates, you know. After the significant increase we have seen during the 1st part of the year on the sovereign bonds. You can see the risk premium remain at merely 400 basis points on the offices division. On the healthcare side, it's merely the same. On top of that, on the healthcare side, you have quite very significant competitiveness in the market and strong appetite which remain very active since the beginning of the year. In our point of view, regarding the profile of our yield, of the yield of our portfolio, we remain quite confident to say that we have got some buffer to absorb the rising interest, cost.
I think we have one additional question by phone. Jerry, yeah, go ahead.
The next question comes from the line of Céline Soo-Huynh from Barclays. Please go ahead.
Hi, everyone. I just have one question. Can you help us understand your office valuation? Because your like-for-like rental growth was negative, but your like-for-like valuation was positive, and your peers have been reporting negative like-for-like valuation growth outside of Paris. What kind of assumption do your appraisers take into account? Any color, really. Thank you.
Sorry, Céline, I didn't catch the beginning of your question. Could you just repeat, please?
Yeah. I think it was more about your office valuation, because your like-for-like rental growth was negative, but your like-for-like valuation growth was positive. How do you reconcile this?
Okay. Antoine de Chabannes, responsible for portfolio management and for the valuation process will answer your question. Is the difference the like-for-like evolution of the valuation and the like-for-like evolution of the revenue?
Yes, exactly. Regarding the like-for-like evolution of the valuation, it's positive. It's on a reported basis, it's negative due to the disposal of two major assets in Paris. That is to say, regarding the rent evolution, it's declining.
I think in addition to what Antoine said. I understand that you could be surprised to have a like-for-like positive evolution of valuation and a like-for-like negative evolution of the revenue, because I think that's the bulk of your question. We have improvement in cap rate for the regional cities and for some business park and part of the business park. You could have with a stable revenue a positive evolution evaluation. Even in a building such as the building let to AXA you could have a decrease in term of revenue. This is not the case, we don't have any positive evolution. The decrease of the revenue is not comparable to the evolution evaluation.
The reason why is because we have signed a new lease for the Next, nine years, and therefore, you have a small cap rate compression just because you have another compared to one year and a half in the last valuation. That explain the difference between the evolution like-for-like for revenues and valuation. Thank you very much for your attention. Thank you very much to be there or behind your screen. If you have additional question, do not hesitate to send them to Victoire and Sophie or myself, we'll be more than happy to revert to you as quickly as possible. Thank you very much. Good evening.