Hello, everyone. Ladies, gentlemen, a few words by way of introduction. In this very special context of the COVID-19, where you are both participating in this meeting in person as well as online via the webcasting platform. This morning, we'll be reviewing our earnings and performance, reviewing performance delivered by Icade in the last few months. I won't go into the full detail of the various aspects of this Icade organization in this very special context.
I want to take this opportunity, however, to emphasize the general discipline showed by the company, its employees, the ExCo members, the board, to face up with this dire crisis. We need to hail the effectiveness and efficiency of the organizational system to protect the greater number, that is employees, clients, providers. In this general context, which may take things with a pinch of salt, I want to emphasize the fact that the company showed how capable it was to deliver very modern state-of-the-art digital tools in the way it worked internally, and in customer-facing processes.
The board of directors, throughout the period, fully supported this momentum, made decisions, as an example, to waive their directors fees for all meetings during this crisis. Especially, and you've noted this, the board of directors decided, knowing that was a proposal, which was carried by the general meeting in this support for solidarity-based measures to adjust the dividend payout downward. That is EUR 4.01 paid out, to be compared with the EUR 4.80, which was the initial payout proposal.
The general meeting was organized in very special conditions, as it was fully virtualized, which did not prevent very many of you to participate with very clear votes on all motions and proposals tabled, including, and this must be emphasized, the fact that our purpose was adopted and incorporated within our bylaws, and it was voted by 99.99% of the votes. Without preempting what Olivier Wigniolle and the ExCo members will be telling you in a few minutes, I wanted to emphasize, above and beyond the formulas, that this period has demonstrated how the Icade model is resilient, which is somewhat of a special model at Icade, with its business divisions.
Icade's ability to adjust, to adapt, to prepare, and adapt its business lines and divisions to this very special context, which is a guarantee and assurance of robustness going forward. This true, actual resilience, which gets rolled out across all facets and strategic directions of Icade, gives us a great degree of confidence in the future. This morning, as is usual, we'll be transparent and open in disclosing our numbers and facts with objective-based, metrics-based being presented with some common areas and some specifics.
Of course, as it is important to recall how different we are and how our numbers show that Icade operates in a way that deserves trust from the board of directors and the employees, fully so, and which will enable it to keep going forward. I want to say that the Board of Directors already has started and will go on in the next few weeks to engage in the rereading of the strategic plan for 2019-2022, this medium-term strategic plan, to assess the impact of the COVID-19 situation and whether it will interfere with our roadmap to attain our key strategic goals.
This exercise will be done in the next few weeks, as I said. This work has already started off by looking into and digging deeper into the special situation. By November, we will be able to explain our analysis. What I want to, again, underline in this complex period of times is, above and beyond the necessary review of the strategic plan, the Board of Directors confirmed that it wanted to maintain its dividends payout policy, which is of importance to note in our situation today, as this question is very often put to us. I will stop here in these very broad introductory remarks, and will turn over to Olivier Wigniolle.
Thank you very much, Frédéric. Hello, everyone. This disclosure for the first half is a special one. Before we do that, we want to show you our analyzed impact of COVID-19 for 2020. This is an estimate, year-to-date estimate, knowing that this exercise is a moving one. It is our current view on how the crisis will impact fiscal 2020, which we have broken down by divisions between non-current and current items. For the office investment division, we have had impact on leasing activity, which is a mix of a number of factors as we provided support to our tenants with rent waivers for a month or two month in counterparty for extended leases, with delays in completions and a number of operations.
The shutdown of construction sites, meaning that the leases will start a bit later. The impact will be some EUR -4 million to EUR -6 million for the cash flow for 2020. Our guidance being in line with last year, it is a negative gap year-on-year. We also will have completions and acquisitions being postponed on major projects, we had a number of scheduled acquisitions in the pipeline, obviously, the COVID-19 crisis had us push them back with an additional impact in between EUR -7 million to EUR -9 million . I will go over this again because all of the items in current cash flow, in fact, are not lost.
We will not recognize them in fiscal 2020 operating results. When you have postponements and delays, some 80% of these amounts are just delayed in time and will be recognized starting from 2021. They are not lost. You have to take these numbers with a relative nuance. For the healthcare investment division, the impact is mainly delayed investments and completions and acquisitions, a negative impact of some EUR 3 million-EUR 4 million. Again, delayed over time.
For property development, have in mind, the accounting mechanism that is, revenue is recognized on completion, technical completion, and economic completion. We believe there'll be a four-month shutdown, full shutdown, gradual restart with construction projects and sites operating at a lower productivity. We believe the shutdown period will be three to four months, which means a mechanical loss of some 25%-30% of our revenues. It's not lost. Projects and construction activities are just delayed in time with these revenues recognized over time.
They will not be there in the financial statements of fiscal 2020. With respect to property development, 90% of the COVID crisis impact in fiscal 2020 will be recognized in the next years. Significant impact of some EUR 31 million -EUR 36 million with a volume impact on the order of EUR 27 million -EUR 30 million, we anticipated some trade discounts, additional trade discounts in the amount of EUR 4 million - EUR 6 million. Much for the impact on non-current cash flows.
That is EUR 45 million -EUR 55 million, a broad number with high degree of uncertainty, going both ways, in fact, uncertainties, being negative in some cases, being positive in some others, in many cases. Impact on cash flow, knowing that 80% will just be pushed back to be recognized in 2021. Impact, a loss of some 20%, of course, in the amounts showed here. We have other impacts, which are non-current items in net profit, waivers of rent without any counterparties, without anything consideration. For small businesses, we communicated on this.
We have so-called inefficiency costs relative to construction projects with extra charges and costs we had to face up to shut down sites, to restart sites, to implement health-related protective gestures with the appointments of COVID officers, as an example. Cost of risk, of course, we've minimized cost of risk overrun, but it's higher than expected. We had to impair a number of debts and payables, all these amounting to some EUR 50 million, which do not affect current cash flow as such, but which impact the net profit attributable to the group.
When you add both, the impact will be of some EUR 100 million, all in the aggregate. We'll be able to absorb this. No financial issue. No cash position issue, with respect to cash flow generation, these amounts will just be pushed back in time, we'll be recognizing them starting in 2021, when we'll have a normal full year. Much for the impact of the crisis. Once again, these were our current year-to-date estimates. We'll be able to refine this analysis when we disclose the 3rd quarter revenues in mid-October.
With respect to the key numbers in the first half, you have here the conventional presentation. We have very good resilience of the property investment divisions, you'll have the healthcare and office property divisions. Net rental income up 4.7%. Adjusted EPRA earnings from property investments up 3.1% to EUR 2.3 per share. Remember, last year, we had more than EUR 1 billion in disposals, more than we had anticipated in fiscal 2019. With respect to portfolio value, on a reported basis, it's up by 0.5% to EUR 11.6 billion, and Victoire Aubry will give you the detail of valuation.
We have an occupancy rate, financial occupancy rate of the property investment divisions, which is stable at 92.5%, in line with 2019. We show resilience and even increase in revenues of property investment divisions. For property development, of course, situation is different because we had a 2.5-month shutdown, so we can't recognize revenue on completion, so 46%. Of course, the loss or the reduction is only - 22.7%, which conceals some good growth. If we hadn't had to shut down construction sites, revenues for property development would have increased by 23% year-over-year.
However, we've had this mechanical impact, which prevents us from recognizing the revenues given the technical shutdown of construction sites. Cash flow became negative, down to EUR -11.9 million. We have a leading indicator going forward with the backlog, which grew significantly by 11% to EUR 1.4 billion. Quite a positive situation due to sales contracts, which we signed, which haven't yet been recognized. With respect to on the liability side, debts continuing to decrease by 1.49%.
We didn't issue any new bonds, so debt maturity slightly decreased by 0.4 years to six years. We've had an increase in the LTV ratio to 39.3% within our bracket guidance, which is due to the stable valuation of the portfolio. When you add up all these items and data, this gives you NAV. We don't call it triple net NAV, you call it net disposal value, NDV. You know that EPRA revised the definitions of the NAV notion. EPRA NDV up 1.2% to EUR 92.2 per share with cash flow due to mechanical reasons. That is the fact that part of the revenues for property development not being recognized, down 7.8% to EUR 2.18 per share.
Victoire Aubry will give you the detail of these financial items. Now, moving on to more operational aspects. Every time you've had the detailed impact of the COVID-19 crisis for the office investments division, this division was proved very resilient. We provided support to our tenants. We granted monthly payments, deferrals, even repayment plans for very small businesses. We accepted to waive some rents for those businesses which had stopped business for the lockdown.
We waived some one quarter of rent, i.e., an impact of EUR 2 billion, and we discussed and inter-exchanged with the tenants who asked for more support and efforts in 2020. We provided conditional support measures versus extension of the lease period with an impact on the half-year cash flow, which is quite moderate, in the order of some EUR 1 million. There was impact of the shutdown of construction sites. Some construction sites which were supposed to deliver completions, so there will be a delay of three to four months.
It won't be lost, but the cash flow will not be recognized in fiscal 2020. The projects, the sites are just pushed back. The start dates for the leases are pushed back. As the pipelines are very much pre-let, we won't lose out on this rental income, and late penalties were neutralized by the French government, which means there's a very low impact on the unit price of projects. Leasing activity, we might have thought it would have totally stopped, given the lockdown, economic and health-related crisis. This was not the case for the office investment division teams, who were even very active.
59 leases were signed or renewed for 58,000 sq m, turning in some EUR 15 million in headline rental income. Almost all of these leases were signed since mid-March, since the moment when we are at the heart of the crisis, with rental value being quite attractive. We have value per square meter stable with some 50,000 sq m in new leases starting during the period, turning in some EUR 16 million in headline rental income with very low delays and deferrals. Rental income up 1.7% like-for-like. That is EUR 187 million in gross rental income versus EUR 1 billion in assets being disposed last year.
This offset the disposals for last year, and we have a stable financial occupancy rate. As I said, in the current context, many of you have paid closer attention to our tenant portfolio, which is quite diversified, quite robust. We rate this portfolio on a very regular basis, rate all our tenants, and you have here the split. We have more than 74% of our tenants with extremely satisfactory rating, with a default rate for the half year, which is very low, on the order of 1%, which shows the granular level of our tenant portfolio, especially in such a crisis period.
As I said when I presented the impact of the crisis, we capitalize on this period to help and support our tenants to weather the crisis versus extended leases. Very fine successes, we communicated on them. Recall the Park View asset in Lyon, close to the Tête d'Or Park. We signed three leases for more than 6,600 sq m, with completion due by year-end, including the delay period. We pre-let a bit more than one-fourth of the program. Very fine building asset. Despite the crisis, you saw that we were able to fill it.
We signed a very significant 5,000 sq m lease with Mediapro, which manages audiovisual rights in the Porte de Paris Business Park. Quite good news. We signed the lease with a hotel, easyHotel, in the Porte de Paris Business Park. It is a hotel asset to be built. Next to the Paris 2024 head office will be starting construction for completion by late 2022. In the Le Ponant in the Fifth District of Paris, we renewed the lease for France Télévisions for the surface area, the floor area they are using currently.
What we've noted is that with the broad numbers and the new signatures, we had very resilient, robust rental activity, which gives us confidence for the future. With respect to asset rotation, well, in this difficult period, we've been focusing on making sure our future cash flows were secure. We didn't engage in any disposals for the first half of 2020. Again, remember, we disposed more than EUR 1 billion in 2019, and the equivalent impact of cash flows, the EUR 60 million, were recognized and were fully offset by the completions and the rental income. With respect to our development pipeline, very resilient and resistant to the COVID-19 crisis.
We had two completions in Q1 in the Parc du Pont de Flandre. We completed a pre-let building, 8,500 sq m. In Marseille, we completed a co-working building asset, which was very much pre-let. Remember that we'll be completing in 2021, is fully pre-let to 61%, and we have very limited exposure to on-spec developments, some EUR 300 million. To be compared with the EUR 8.5 portfolio value for Icade, very moderate, focused on two high-quality projects, the Park View building project and the FRESK building on the fringe of the 15th district of Paris and the EC Le Molino, and you have a picture of this FRESK asset.
The pipeline remains very dynamic, very high quality, with a high potential for rental income in the order of EUR 54 million, with completion being pushed back by a few months, the Origine project in Nanterre for Technip. The pipeline, as I said, extremely dynamic and extremely secure. In a nutshell, the key figures as of the 31st of June for the office investment and stability means resilience. For the healthcare division.
Concerning healthcare, it is even more resilient than offices. Just to remind you that our tenants, our customers, have been highly mobilized in managing the health crisis itself, of course. They've had to modify their commercial activity because of the need to take over the COVID-19 patients and so on, and of course, this modified their billing and so on. We've been supporting them in this and accepting to delay the caching of the rents, waiting for the support coming from the government. This was done actually very quickly.
As you've been able to see, I do really want to pay tribute to the nursing home managers who, with the very fragile patient groups that they had, have been very seriously impacted by COVID-19, at the same time, for the major operators, I can assure you that they have been highly professional and great dedication with respect to their customers. If we come back now to the more financial and housing aspects and the property, already the beginning of the second quarter, we've begun getting a normal intake of rent.
As for the offices, we have the impact of temporary shutdowns of the construction sites, limited, only three or four months delay, products that we won't have in 2020. Again, this is not lost. We have an asset class which is non-cyclical, which is very robust and is driven by long-term contracts as well. This is particularly significant in a health crisis such as this, with assets that behave very well. We have a significant rise of 15.4% + 1.8% on a like-for-like basis for the short and medium-term care. Here you have the short and medium term and the long term.
You see that the financial occupancy rate is 100%, and this is for leases which are very significant, and particularly internationally for the length of the leases. I'll come back to this in a moment. What you can see is that we have tenants who have the most robust signatures. Despite the crisis, the healthcare development teams have been extremely active for developing during this first half. The pipeline is slightly postponed as well, of course, we've had somewhat longer discussions because we couldn't travel abroad to continue the negotiations and so on.
We had envisaged a number of acquisitions in 2020, this will be somewhat delayed, but quite marginal, in fact. We had three acquisitions for a total of EUR 50 million with Korian, with an additional nursing home in Italy. Above all, as we communicated this morning, we have a promise signed just a few days ago with Orpea, who is the European leader of medical nursing retirement homes for elderly people, and this is a significant portfolio with nine homes, of which eight are in Germany. This is the first operation in a long-term partnership plan with one of the leaders in this category of assets.
If you look at the portfolio, we today have a portfolio of somewhat exceeding EUR 5 billion in three countries. As we've announced, we're continuing to diversify internationally. Just a couple of words about this acquisition with Orpea, who is the worldwide leader in terms of long-term care. Orpea has a significant program, Icade Santé, Icade Healthcare, has been able and has demonstrated in its operation to being one of the foremost partners of Orpea. What we bought is a portfolio of nine assets, eight in Germany, one in France, and five in Germany, which are currently under construction, four which are in France.
In Germany too, there obviously is a slowdown in terms of delivery of the work sites. We are basically very satisfied with this transaction. The amount of our investments, since we started this international diversification in 2018, now represents close to EUR 600 million, fully in line with our roadmap. Key figures too, as you will see, very stable with a strong resilience there. The portfolio for healthcare, you see that the two have for sure had an impact from the crisis. Nevertheless, our rental position has made it possible for us, nevertheless, to be extremely resilient.
For Icade Promotion Property Development, different ways of looking at the figures here, I think it's very important for us to look at the detail, at the breakdown of these figures, because we had a rapid recovery, as you see, +23%, you see at the bottom right of the page the impact. We have, in terms of IFRS, with 2.5 months of close down, we have revenues that are down by 22% automatically. This did not prevent the development of Icade Promotion Property Development. For the reasons you know, with the lockdown and maneuvers which had to slow down because of the fear of the crisis in the country of origin and so on.
Nevertheless, these are not a lot of revenues, the work sites are still there. There will be profit coming. Again, 2.5 months out of six, nevertheless, is 40% of revenues that could have been recognized. In this respect, the revenue is down only by 23%. If you look at the volume, -23%, some of our colleagues have been pushing figures which even higher. We've been looking at the figures of Kaufman, our colleague. The commercialization has been impacted for individual clients with the lockdown period.
What is extremely important for us is that already in June, we came back to the same levels as before the crisis. We'll see how, of course, this is going to continue and where the dynamic is going to go in this direction and looking at the different projects that we have. Even though there's been a downturn in terms of the rental commitments, we have a strong pickup in June for reservations for bookings. We've had also the phenomenon of bulk sales with institutional investors who have a growing appetite for the housing asset class.
We've almost completely compensated the unit sale decline with the bulk sales, +26% at the end of June. In which bulk sales actually were up 121%. Again, I'll come back to this in a moment when I look at the major successes of Icade Promotion. We have revenues down by -23% and orders down by 3%. We have advanced indicators, as you see in the next slide, which are very ordered with work orders and construction starts. We've been able to start work sites up 42%, even though some of them had to stop for a short time.
We also have +56% in terms of building permit applications and despite also the delays incurred by the delay of French municipal elections. We have seen a lot of success in this first half in offices, building of more than 6,000 sq m, the Totem in Lyon. In the housing asset class, we have the major student residences with two significant operations, one in Villejuif in the southern side of Paris, and the other in Ivry, also on the southern side. Both for some close to, for the first, for EUR 80 million and EUR 109 for the second.
The appetite for this asset class shows that these values have not been corrected for the impact of the crisis. We've also made good use of this semester to sign promises in Le Havre or in the 13th district of Paris. Despite the crisis, we have also made the building permit application for the Athletes Village in Paris 2024, which for the moment is still confirmed. We also had two excellent tenders. One was the restructuring of the teaching university hospital in Rennes and for the UNESCO building.
This one, too, we've signed a prior agreement, and this is not in the booking areas and not in the backlog either, but we have a letter of understanding with the CDC Habitat for 1,000 units. This represents some 25% of our commercial stock. I must say, we are pretty confident about the pricing of our housing units as such. We have nevertheless, de-risked the balance sheet with this transaction. We also have advanced indicators all on a positive trend, as we've said. Backlog, which is the first indicator here, which has not yet been accounted for.
We're progressing by 13%, by EUR 1.4 billion, and our residential growing is representing potential to EUR 2.2 million. EUR 2 billion the 30th of June, and growth of 10% compared to last year's. Total revenue potential, which includes the backlog and the residential and office revenues, represent a total of EUR 7.2 billion, slightly up compared to the 31st of December last year. We have the slow downturn, but the indicators are generally showing very positive trends, and giving us a lot of confidence in June for this business.
A couple of words about what we've been doing also in terms of CSR, because we've also tried to manage our own business, but in line with our commitments, and as Frédéric was saying, with our purpose. We've been very active in terms of solidarity to support all the stakeholders in this crisis. Just to remind you what we've done for the rents for very small businesses and for healthcare institutions. In terms of solidarity, we had a stock of masks that we donated entirely.
We've been matching contributions with the donors, and we also have the solidarity fund for some of our employees who were impacted by the crisis. We've also had to put on furlough several hundred of our employees, and we've compensated their revenue, their income. I think everyone will obviously judge this, but I think Icade has been extremely positive in the way it has supported its employees in this respect. In terms of sustainable finance, too, considering the crisis and the shutting down of certain sites, we've chosen to cut off some of our credit lines.
So we increased RCF for some EUR 450 million with a Green RCF and a solidarity-based RCF, which are both interesting in terms of liquidity of the company, but also in terms of CSR. Despite the crisis, let's not forget that our priority for the environment remains low carbon. You've seen that all the industry is increasingly going towards these issues. You've heard the government announce that the recovery will be green or will not be at all. We see this still as an essential aspect that is foundational to our ambitions, and we shall see this more during our investor day in November to show that we are putting more than words.
This is a summary for the first half, and now I'll hand over to Victoire for the breakdown of our accounts.
Thank you very much, Olivier, good morning to everyone. As an introduction, let me give you the detailed results of this past quarter. Before that, let me just continue with the idea on the impact of the crisis on our quarterly results. Perhaps we could zoom in on our main indicators that you see over here. Firstly, you've got the NCCF. You see the impact of the crisis. It is of EUR 15 million, essentially due to the slower revenue recognition, the POC method for property development, as Olivier explained to you several times, and which has a major impact on our current activity in this first quarter.
Second impact would be on the non-current items. The NCCF, as you can see, is at about EUR 12 million that you see over here, particularly the waiver of rents that we provided for our small businesses that were shut down. Apart from that, you have the impact, which is fairly limited, less than EUR 10 million, of depreciation or marginal drops in the change in values over the quarter. This is a right time to talk to you about our third main indicator, which is the EPRA NDV, triple net as it was called.
There is a slight increase in growth with and accounting for the changes in property values, which is fairly limited, particularly against the background of our exceptional crisis. The fourth point, as you can see, relates to our net debt, which is limited to EUR 6.3 billion, and the LTV ratio, which is at 39.3%. Absolutely within the lines of our financial policy. Finally, impact in the first quarter, very limited of the crisis, this exceptional crisis that we have faced. For greater detail and more traditionally, let me talk to you about the earnings in property development.
Good dynamics. There is a 3% increase, EUR 60 million. Once again, in these present circumstances, very strong, resilient investment divisions and net income is + 5%. You have also got the net rental income at 95.4%, and as you can see, we have continued with the healthcare that has provided for 47%, and it was 42% last year. As you can see that healthcare investment contribution is great, which is helping the bottom line. To give you greater detail because the situation is not quite the same in the two scopes.
For office investment, there is a slight drop in net rental income and in the NAV, that is because of a great acceleration of our last year's disposals, more than EUR 1.1 billion, EUR 16 million of EPRA, which has weighed down on the financial results. As you can see, given the fact that rentals were very dynamic during the past year, from June 2019 to June 2020, with seven completions in 2019, and two at the beginning of this year, with acquisitions as well. The rhythm is extremely rapid in terms of our new rents.
We have greatly limited any drop in the EPRA, which is at EUR 403 million. There is just a small drop of 3.3%. As far as office investment is concerned, you can see that the investment program has left its impact. We accelerated it. The figures are extremely high. The growth is great, more than 13% for rental, +1 2% for the NAV. On a like-for-like, we are showing gross rental income at + 1.8%, that is thanks to the indexation effect. As far as office investment is concerned, we have got the rental income, which has gone up by 1.7% on a like-for-like basis, that is essentially due to the indexation.
Office investment extremely healthy and not sensitive to the present crisis. In terms of property development, as you heard, the situation is not quite the same given that the technique that we are using here is very special, it is a ratio that combines the commercial and technical progress of the site. 2.5 months of shutdown. You can see what that represents over six months, and that is a 40% drop in revenue. As you can see, we still maintained a depreciation.
We managed to absorb it with a limited drop of 23%, given the excellent operations that took place at the end of the quarter, as Olivier gave you the details of. June was a very busy month. However, it was over EUR 147 million that were not accounted for because of this slower revenue recognition effect. Therefore, it is only EUR 300 million rather than EUR 477 million, which would have shown an increase of 23%. The current economic operating profit is now just below zero at EUR 8 million. Here, once again, without counting the crisis, there is a technical impact which should have been positive.
Finally, during this period, quite obviously, there was a major effort made to improve the development costs, which we brought down. This is a summary of the entire quarter. NCCF is a limited reduction of less than 8%, essentially because of the mechanical effect of the net cash flow, which was down. It is at EUR 161 million, and might I remind you, with an ability for office development to absorb major losses over this period. One more point. Not counting the crisis, we would have had a net cash flow with an increase of 1%, in line with the guidance that we had given to you earlier the year before the crisis that hit us.
A few comments now on the evaluations, because this is a very important item in the current context. As you can see here, all of our values in the two portfolios, post progression, are +0.7% on the reported basis, -0.4% on a like-for-like basis because of the office investment division. You see the figures here. It is almost flat for all of the half year. The investments, again, as Olivier said earlier, slowed down over the period, limiting the upswing on a reported basis. On a like-for-like basis, you see a slight dip, -0.6%, integrating the anticipations of our experts because the valuations are done by outside experts.
We have then the factoring in of the fact that index-linked rent review forecasts tell us that we will have to revise our figures somewhat downwards o n a like-for-like basis. Quite marginal, though. Regarding healthcare investment, while site progression on a reported basis slowed down because of the crisis, on a like-for-like basis, flat values. Here you see again, we have shown the resilience of this asset class when one has to weather a storm such as we have just been going through. On the next slide, you have the changes in the EPRA metrics.
You see the changes that were desired by EPRA, which will be implemented as of January 1st of this year. We will not be talking about triple net and simple net NAV anymore. The main difference is the fair value. From now on, we will therefore talk about the NDV, the net disposal value, which will be the triple net, usually, NAV, integrating the value of the fixed rate debt of companies. The main difference is the goodwill. The goodwill in companies like Icade is not material. It doesn't make a huge difference. Goodwill, net balance sheet, EUR 12.5 billion, it's not a huge difference for us.
The NDV or triple net NAV for us is basically going to boil down to the same thing. The other metric proposed by EPRA is simple net NAV. It's the net tangible assets, NTA. Neutralizing, therefore, the effects that we may have had on occasion. The option to use a transfer tax optimization adjustment as a result of the asset acquisition strategy. It's very close to the simple net NAV that we had. On a pro forma basis, we will of course do the calculations, and you will see for those two metrics, in fact, they'll be slightly -1%. The next metric is the net reinstatement value.
This one is the one that takes the postulate that we keep assets for a very long period. From now on, we'll be publishing the NRV as well. You see here the EPRA NDV on the next slide, it is up by 1.2% over six months, including the distribution of the interim dividend for the first half. Excluding that interim dividend, it's an upstream of 3.8%, given the effect of the cash flow progression in the first half, the variation in the fair value of the fixed rate debt. We talk about that when we talk about the liabilities.
The rates have tended to go down, of course, during the crisis, but corporate credits have made quite a progression. Corporate debt rates have progressed quite well. The valuation goes down for our debt, and that has a positive impact on our NAV. You have a slight impact on the trend in value of our assets, as you see. Excluding dividends, + 3.8%, + 1.2%, if we take account of it, over a year. Compared with June of last year, the growth was 3.3% over 12 months. The NAV at EUR 92.2 per share, which is quite robust. Two items to do with our liabilities.
Average debt maturity, six years. We, of course, didn't issue any financial instruments in the first half of the year. Regarding the cost of the debt, slightly down, 1.49%, as you see. There was a fine issuance done at the end of last year for Icade Santé, Icade Healthcare, it was a very attractive period indeed for borrowers. The ICR ratio is still as robust as ever, 5.2 times, as you see here. Bank covenant is greater than two. LTV ratio, 39.3%, including duties. The balance sheet structure remains very sound.
Financing cost remains attractive. To round it off, I should comment perhaps upon the intense activity that we saw with respect to our liability management during the crisis. It was a liquidity crisis, too, of course, because we had to manage huge problems to do with postponement of monies. We had to make sure our cash flow would still be there to support us. I'd like to avail of the opportunity to say that at the end of the first half of the year, we had almost EUR 900 million worth of cash, very sound.
We can get through the next few months with a certain amount of comfort. We decided to bolster our revolving credit facilities. Even though we didn't need to draw them down during the crisis, we did nonetheless renew and negotiate new credit lines for an amount of EUR 750 million. The net change is EUR 370 million up. We have EUR 2.1 billion of outstanding amounts of our RCFs now in total. It's quite comfortable for us. Among these negotiations for renewal, we were really focused on what we call sustainable financing.
How can we be totally in line with our purpose and our objectives to do with CSR? We have the green RCF, EUR 300 million, seven years. This facility is connected with our goal to reduce carbon intensity of the Office Investment Division by 45% between 2015 and 2025. If this goal is not met, the additional cost will be paid to an association having a positive impact on the environment. That's the new feature here. Another RCF we negotiated during the period is a five-year, EUR 150 million solidarity-based RCF, socially responsible.
EUR 300,000 being allocated to research on COVID-19 vaccines carried out by Institut Pasteur. To help them in the near term find a vaccine against this virus. This shows the confidence of banks in our group's business model. They remain by our side, the banks, supporting us, and you've just seen our focus on sustainable finance. At this point, I'll give the floor back to Olivier.
Thank you very much, Victoire. By way of conclusion, you know that we have this exercise of setting out the priority areas for 2020. We've put these priorities on hold due to the crisis. We are not forgetting them as well within the strategic plan, of course. In the Office Investment Division, there's been a slowdown in these disposals. With respect to the investments in the pipeline, we'll see how the crisis will impact the volume and momentum. Now, with respect to the Healthcare Investment Division, we are ensuring further growth and international expansion.
We are talking about some EUR 200 million earmarked in acquisitions, and we have other plans. We'll see whether we crystallize them by year-end. Now, in the Investor Day, we presented to you the growth roadmap for the Property Development Division. Of course, if you look at the number for the first half, you may have the feeling that we are going in the wrong direction, but our business activity is up 23% for the half year. The growth roadmap that Emmanuel Desmaizières put together for 2020, 2024, leaves us with a high degree of confidence.
We'll see with the recovery plan, and we'll see that there'll be the reverse momentum starting in 2021 of projects with a technical percentage of completion revenue growing by 25%. We'll be keeping our priority focus on the low carbon policy. We'll see what the situation will be in the fall. But tomorrow, more so than yesterday, it will be a key priority for our business operations. By way of a conclusion, I'm waiting for your comments, but we consider that we've weathered this first half-year in a very resilient, robust manner for the Investment Divisions with very low impact, as you could see.
Of course, the Development Division was impacted by the shutdown of sites, but the backlog and the signings put us in a situation of confidence, very much like our competitor who announced their numbers. As Victoire said, we've done what it took to reinforce our balance sheet and our liquidity position. It is up to us. It is not up to engage in self-assessment or self-complacency, but we believe that we've put in good performance for the half-year. Of course, we have not recognized all the impact of the crisis in the numbers for the half-year.
This is why I give you the outlook for the year and the estimates for the year so you can project yourself and anticipate all of the impacts, even though, for sure, there will be more uncertainty. One uncertainty got better during the night, whether we would have a European Recovery Plan, positive news from the E.U. Member countries now. What will be the real estate part of the recovery plan to be presented by the French government in September. There will be these contingencies, but contingencies can be both negative and positive.
Of course, we have to show a degree of caution to take stock of developments, especially with respect to the economic crisis and its impact on the Healthcare Divisions. You've seen there are only two transactions on spec, but we'll be leading two other on-spec transactions, and jointly with Emmanuelle Baboulin, we'll closely monitor market developments. You hear lots of things. We hear that the rental business operations in late 2020 will be impacted by some 20%-30%. This is what you see in the press.
When companies are looking for savings, this type of assets will be scrutinized with great interest by most companies. The growth strategy in the Healthcare Division was not predefined for the COVID. When you look back, we can be happy that we grew this Healthcare Division in the Icade business portfolio, and that we went and diversified it internationally gives us a better distribution of risk and better stability with respect to generation of cash flows.
I hope the investors will give it the same premium they grant to healthcare-specific companies, or 100% Healthcare players, knowing that this share of the business will grow in our accounts. As Frédéric said in his introductory remarks, we have a strategic plan. We've showed resilience, but we can't ignore the impact of the crisis. Jointly with the management line and Board of Directors, we'll be analyzing the situation very thoroughly to look at the impact of the crisis on our strategic plan to see whether it should be revised, to which proportion, and all this analysis and insights will be presented to you in our November Investor Day.
We believe that our strategic plan will remain in line with the purpose of Icade, which I invite you to reread, that is build low carbon, inclusive, connected places where it's as many good places to work and to live. These will be our guidelines for the next few years. Indeed, we are resolutely optimistic. We gave you lots of info and data and insights on the would-be impact of the crisis. Jointly with the Board of Directors, we found it desirable to put our guidance on hold. Some will comment this, of course.
Why is that? There's still a high degree of uncertainty, which can be positive uncertainty like the magnitude of the European stimulus plan or package, the change in the indexing indicators. When we prepared our scenarios, the indices, indexing references were going downward. You can see the ILAT or the INSEE indices forecasting quite low and pessimistic assumptions. The uncertain environment, for sure, means that we had rather push back our guidance for fiscal 2020 to when we'll be announcing Q3 revenue in October.
Jointly with the Board of Directors, we state, and it's important for shareholders, our dividend payout policy, which will be very stable. That is a payout of some 90% of non-current cash flow, which helps us face up our obligations to payout dividend due to the SIIC obligations. Dividend payout for fiscal 2020 should be quite stable year-on-year. Much for what we wanted to share with you. The presentation was a bit longer than was customary, as we thought it desirable to go into the detail of how the COVID crisis impacted us, which is a very exceptional non-recurring item.
Now, jointly with Frédéric and the ExCo members, we are available to answer your questions.
For asking a question, press star eight. Make sure that your line is free. Also. Once again, it is hashtag one. The first question is from Florent, from ODDO BHF. Over to you.
Yes. Thank you for this presentation. I had two questions. First would be on healthcare. In as much as you've been working when positioning healthcare over office business, to what extent could this lead to an acceleration of your healthcare development program and development of Icade Santé, Icade Healthcare? Second question, regarding to your property development, considering that your situation considers in the second half, could you give us an indication of your trajectory for the second half?
Well, Florent, first of all, I trust that you're doing well and in good health. Concerning the trajectory for Icade property development, again, of course, we can hope that we will not have a further lockdown or be receiving an imposition of further healthcare provisions on our work sites. You have the accounts for the half year and the forecasted impact for the full year that we gave you the beginning of our presentation. We there have the plan for the second half. There are elements which are not purely dependent on us, and that is in part of the impact of new health measures.
Of course, this depends on the latest news. We have assumed that our work starts. We're going to be able to operate with somewhat reduced productivity, but at a normal pace, 90% compared to 100% before the crisis. Of course, this depends on there being no macro development around us. The second aspect in your question is the recovery plan. You probably read a few days ago the announcement made by the Promoters' Federation, who made some proposals to the government concerning what might be done, both to help the development of construction in France, this could have an impact.
For those of you who remember the impact of the crisis of 2008, the impact could be very massive, very quick. What will the government actually do? Well, we have some ideas, our DNA, obviously, as you know, is relatively conservative as we've seen in slide seven. We could still see some good news. For healthcare, it's an asset class that has shown its tremendous resilience. This obviously gives ideas to everyone. For those of you who are monitoring the construction, property development data, you've seen there's a number of constructors who've been developing in the healthcare business.
We have a real competitive advantage here in the acquisition process, I think, too, that we're extremely disciplined in terms of the profitability conditions that we apply to our investments. I will summarize our question. Yes, we would like, no doubt, to be able to do more, but the market must be there, and we not willing to run beyond what is reasonable. I wouldn't comment on other people. I've seen some transactions in the Nordic countries. Obviously, this isn't a transaction that would be reasonable for Icade Santé, Icade Healthcare.
Clearly, what we are trying to do, mainly, and we're very pleased with the transaction with Orpea. We want to be able to discuss with the operators to put forward our technical know-how and expertise and the quality of our relations over the long term with the operators and also the portfolios that we have. That's what we prefer. We don't only do that, but what we are observing is that the pipeline of discussions that we have, be it in France or internationally, is growing.
Will we be able to do more? Well, obviously, we'd like to, but certainly, the healthcare teams at Icade are working on this with a lot of energy.
Another question over the phone.
Next question comes from Álvaro Soriano from Bank of America. Please go ahead.
Thank you very much for the presentation, and good morning to all. Just two question on my side regarding your capital structure. Any target of disposals for the year, and any targets on loan to value? On the announced transaction with Orpea, any pricing comments regarding yield, and when is expected to be closed in terms of cash outflow for Icade Santé? Last question, a third one on the agreement with CDC. I guess the sales are not yet recognized in the sales volume presented this morning. Thank you very much.
Thank you. Two questions. Three. Answer to the last one. I confirm the figures of the transaction with CDC Habitat. It's not with CDC. CDC Habitat is a subsidiary of CDC. It's not included in the volume of sales for the first 6 months of the year. It's not in the turnover of the first month. It will be booked. We have 40 different schemes with them, so it will be booked each time we sign the notary deed. It will be done by the end of the year. The answer to your first question, and after that, Xavier will answer to your second question.
The answer to the first question. We are thinking about some disposal for the second part of the year. We don't want to have too much pressure, to make sure that we will close transaction before or by year-end, because clearly the market probably a little bit in trouble. Clearly, liquidity for core assets, it's still there. We do think that for the Paris area, the volume of transaction by the end of the year will be probably quite significant. That cap rate should remain quite stable for core assets. We will see if we have some opportunity to make some disposal.
Again, we will reduce probably the volume of new investment in our development pipeline. Therefore, we have less need to finance an additional volume of new investment. We could, if we think it's appropriate, reduce the volume of disposal. Having said that, LTV by the end of the year will depend and will rely on the volume of disposal for sure, but should remain quite close to the figure that we have announced today. Around 40%, transfer tax included, is the guideline that we have, and the management and the board, we don't want to change the financial policy of the company, whatever is the environment.
For the second question, the closing of the transaction with Orpea. Xavier?
Good morning. Two answers to your question about the Orpea deal. First, about the level of yield. It's in line with what can be seen in the market or within our portfolio. To give a figure, let's say around 5% and differentiated by asset. Concerning the closing dates, it will occur between September and the end of November, depending on the completion of certain assets in the portfolio.
I think there is an internet question. On office development, you have 21% of leases are coming to the end stage. Are you already having a request for reduction of the service areas and flex office? Have you any idea of the impact on these future negotiations? Well, I'll ask Emmanuelle Baboulin to answer this question.
Yes, we have 21% of Beauvais. Now, there's some that are part of a negotiation underway. Certain helpful measures during the confinement period. As a result, we were able to anticipate some of these renewals. We were able to set aside some of the rent against a break in the contract. It's not yet been signed. It hasn't been announced, but it's partly of the part of the 21% that you mentioned. The others with whom we haven't really undertaken any negotiations, let's say that in that case, we're expecting a certain flexibility, as you mentioned, of about 10%-15% of their total surface.
Apparently, they might ask for a renewal for a shorter firm period, shorter fixed period than what we might have expected in normal circumstances.
Second question from Pierre-Emmanuel Poulin. Do you think that the purchase option on the rest of the Eqho Tower will be exercised? Well, our friends and partners from [Keohane] have a purchase option for the end of the year. It's a purchase option, which is in their hands. If I was to give some forecast today, although it is a decision that they alone could take, clearly, in terms of the market development in South Korea, I don't believe that it is the most plausible scenario. Where it's not to be the case, we will then need to see with them if they have an interest, and they have an interest, to extend this purchase option in 2021.
What we can say is that this asset is pretty much 100% closed already. If they don't lift the option, and this brings us back to the previous question, in terms of the volume of divestments, we do have this uncertainty in the lifting of the option, which will have an impact on the disposals program for the end of the year. We don't have any more specific information as we speak. Because of the context in the market in America, I think the probability is fairly low that the property will be issued late.
Pierre-Édouard, could we have a fair value on the development activity in the second half? It's of the order of 10%, unfortunately negative, because it's both an assessment that is made by comparable stock and also in our business and independently of the stoppage of certain work sites. These are forward information. Our colleagues in the stock market have driven the valuation down. We're not seeing this in terms of comparative transactions and deals. There are some samples in recent communication.
We have a stock value, which is behaving rather non-typically. This should in total lead to - 10%. Question from Laura Gómez, of [Sumita]. Good morning. You said that an expansion of 10 percentage points of your net present initial yield, which seems marginal, whereas in your market update, you're saying that the risk premium on value-added assets should be increasing by 100 and 150 basis points. In such a context, how do you see the evaluation of your portfolio? Antoine, would you like to answer? Antoine de Chabannes , who is in charge of this portfolio.
Yes, indeed. There is a raise of the EBIT on the net initial yield. This is essentially driven by the business park and, in particular, a valuation that is downward. Over and above this detail of the initial deal. In terms of forecast, the answer of experts is not a forward-looking answer, of course. Experts are not there to forecast. We do forecasts based on our internal valuation properties. This is not the case for expert appraisals on the 30th of June.
In terms of the yields, what we're seeing today is that there's a slow transaction in the second quarter, but everything at its core. With medium and long-term leases, liquidity is still very high, and I believe Well, of course, we'll see how the market is oriented. I think towards the end of the year, our core portfolio will ensure that we have significant valuation operations, because we will have transactions from comparables who will lead to stable cap levels. The second question is the exposure of our rental assets.
Will they be impacted by the economic crisis, much more than from the evolution of flex office and work? There may be a short-term impact on the rental value of office rents, as Emmanuelle said. We have been very much anticipatory in our negotiations with our tenants. We've shown ourselves to be extremely realistic. Clearly, in the valuation methods, we do take into account the market rental value, and even though if the general value is down, this will have an impact on our portfolio.
The question that can arise is that we have a development pipeline, which is both significant, very high quality, but we will also be extremely cautious in the pacing of this development pipeline. To say things simply today, we will only be launching what is pre-let. As we have a value that depends on the date of launch, on the pre-marketing date in our development pipeline, will there be large corporates willing to commit to these social developments over two or three years? It's too early, I think, to say, but obviously, we will be reviewing this.
I think our good fortune is that we pretty much launched nothing with a blank page. Just two operations now. Certainly, until the end of February or mid-March, they were very buoyant, clearly, the rule in the future is going to be, we will only be launching what is pre-let. What are we going to be capable of pre-letting, and what is this going to do to the valuation of the pipeline? I think it's still too early to say, what we are observing is the volume of liquidity which is available and in particular, for what is leased.
The tenants are not going to wait for the rental value trends, but by the 30th of September, it'll make it possible to have a good, appropriate valuation on the office. A point from Rothschild & Co. Could you explain how you have indicated your rental transactions since during the first quarter? We can't give you the detailed deal by deal. What we can confirm is that in particular for the quite numerous transactions that we had in the second half of this first semester, we haven't seen a decline of our net lease value, in particular in the north of Paris or in Lyon.
We haven't seen any significant gaps with the VLMs. On commercial benefits. I would say that we have basically one month of franchise per year of commitment. It's quite paradoxical that in the negotiations undertaken by Emmanuelle with the tenants who needed a helping hand to carry through in 2020, it was in everyone's interest, including ourselves, to sign these agreements to stabilize the situations. These deals did take place in conditions that I would say comparable, sometimes even better, actually, than what we might have done before the crisis. That's because everyone was keen, and our tenants as well.
I don't want to go into too much bookkeeping detail, we have the commercial benefits of the firm commitment date. It's IFRS 16, which implies this. There's been a waiver for the takers who can take their benefit fully in 2020. We've seen this announced, a lot of large corporates were very quickly in favor of an agreement with their lessors, whoever they may be, whether it be lessors and owners of offices and plants, and could they account for any gain as a one-shot in 2020. This is somewhat the paradox of this crisis.
We've had negotiations, in particular between responsible stakeholders, which actually have been faster and easier than before the crisis. Again, we'll see how all this develops, what we're noting on the 30th of June is that what we've observed so far is quite positive. Clearly, the tenants have other concerns than just finding an office, a head office, or positioning a head office elsewhere rather than moving their head office. Okay, maybe tighten down the surface areas and so on.
When you're managing a crisis, if you add the move of a head office, corporate offices, again, those of you who are familiar with this, you know that it's going to be very difficult. Therefore, this could lead to a form of stability. Of course, this might have an impact on our development pipeline. I've been reading in the press is that for office statistics, we are going to see the drop in the transaction volumes, and that's simply because companies have other business on their hand than just moving. This has a very positive impact for us, who have these tenants in our buildings.
A square meter that is rented generally means someone who is leaving that before. When brokers are announcing that -45% or -50% for the year, well, for us as the landlords in this respect, the stability of our tenants in our buildings represent a very value on the total return value. A question from Henri Quadrell i from Société Générale. Do you not fear deterioration of the residential market in 2020, considering the likelihood of a rise in unemployment and mortgage defaults? Well, this is indeed one of the questions.
What we can say is that to date, we are not observing this because I've said, when we see in our sales in June and July, there's been very bullish, very strong business. Among the uncertainties, there's the question of what is the government recovery plan going to look like and what is going to be its impact on residential developments in terms of the impact of unemployment. If we look at all of the government statistics, they're considering close to 1 million new people unemployed. Obviously, this means fewer buyers and also a tightening of the mortgage conditions.
What we are observing, as I've said, to this date, the impact is limited. Certainly, there's been almost no rise or no sensitive rise of the mortgage rates. Banque de France has been asking for more discipline on the part of the banks in terms of the total effort margins. What we are observing is that our transaction with CDC Habitat and other institutionals, and you've seen that our colleagues from Cogedim and Nexity have actually far more significant transactions than us. Well, this is seen in the field by the supply that is verifying.
When you add to this other impacts, the results of the municipal elections, local elections with significant changes in several municipalities and therefore longer terms to obtain building permits and so on. If to this you have a measure, and we shall see in the recovery plan, which can strengthen the accession to ownership and the investment of physical persons, the scenario of downturn in prices is by no means certain. It's one of the big unknowns. What I would say is that I acknowledge that in our forecasts, we've seen the impact of the crisis, and we've included a slight downturn in terms of the premiums.
Will we actually see this? I don't know. When you sell in bulk, obviously you sell cheaper, but clearly you don't sell at the same price for someone who buys one apartment from someone who buys 1,000 apartments.
We have savings in the marketing and the working capital requirements and so on. You recover there what you may be losing in terms of the bulk price, and in terms of the cost, expenses savings. We are basically fairly confident all the more as this phenomenon of the commercial developments in June and July can be explained. I don't know, is it the effect of the lockdown where people are looking for better quality of housing? Clearly, this does seem to be the case, because we're seeing the rise in the demand, which is essentially due to buyers for their main home.
This is one of the unknowns, obviously, for 2020. As we speak, we are more on the optimistic side. It's not just wishful thinking. No. When we look at the bulk sales and the stock of what we have, as you've seen, and the warnings of the development federation, the stock is going to be significantly falling. Obviously this has an impact on the volume. Certainly, in terms of pricing, we think that the scenario of a significant drop in prices is not the most likely. Another question from the phone?
You have the floor.
Yes. Good morning. Thank you for taking my question. I just wanted to check something about the EUR 50 million on the IFRS accounting, not in net current cash flow, but accounted for in the adjusted earnings. I wanted to check why is this not included in the net current cash flow?
The answer. EUR 50 million that you're talking about, that's the estimate for full year of the non-current earnings. That's in the net income group share on an IFRS basis. The c ash flow impacts. You won't find it in the pre-earnings because that's the equivalent of what we call current recurring. Net current cash flow, EUR 50 million worth, broken down, as Olivier said, between the different business lines. Different business lines, in addition to that, there's an extra EUR 50 million in non-recurrent, and which has an impacton i ncome group share IFRS reported. For the full year of the accounts, EUR 100 million total impact. All divisions.
I would say that, well, this is normal because prior earnings obviously are looking at recurring items. With due reservation of the prior earnings with respect to IFRS, where we don't have a lot of margin movement, but we are talking basically about the same thing, is that prior earnings and the net current cash flow are the net recurring elements. These are the discussions we've had with our auditors to make sure that we're applying the IFRS standards between what is current and non-current.
I think you should probably observe significant differences there, or rather a lot of similarities between the different groups about how they process the different impacts. I think that was the last question. I wanted to thank you for your remote distance. We invited some, but we didn't have a lot of success. I trust that for our Investor Day, which will be an opportunity to give an update on the strategy, we will have the good fortune of seeing you all present, and we'll give you an appointment for mid-October, not only for the Q3 figures, but also the guidance for 2020. Thank you for your attention.