Good morning, everyone, and welcome to this traditional meeting of disclosing our earnings. We'll have quite a dense agenda with a time for questions- and- answers. To kick off this meeting, I wanted to say just a few introductory remarks. First, as you know well, 2019 was for us, the first full year of our strategic plan, which was launched mid-2018. You will see this in the upcoming presentations. We consider that the implementation of this plan is well underway and above and beyond the numbers delivered. If we look at all the projects in the pipeline and which have been completed and which have delivered its economic and financial performance. As you know, nothing new, in fact, since the AGM and the board of directors, which followed the AGM in 2019.
We have strengthened, consolidated, whatever the term is, our governance structure by appointing a lead director who will be the vice chairwoman of the board of directors. More generally speaking, we have maintained and strengthened the connections with the management team and the executive committee in the development and in the implementation of this strategic plan. You will see this in a few minutes. The momentum showed in the various business divisions have been very strong, and above and beyond the numbers, there have been some key decisions made and many projects and initiatives were launched, including in the development business, which has revamped its strategy on a financial level, and 2019 showed that, right? The general performance and earnings were apprehended by the market, and this will be one of the key features we'll be presenting today.
These brief introductory remarks I will end with a traditional item, which is our purpose. Olivier Wigniolle will tell you more about our purpose, will give you its exact statement, its exact description. I just want to say that to date, this development work and thinking process is a very in-depth process. When I say in-depth, it's not just a management order which came from the top down. It's been a long-winded, very far-ranging process, which has involved various people and organizations and teams in the company in a bottom-up, in a very collaborative manner to substantiate this purpose statement. This is of great importance for us as all corporations embarking on such a process.
A purpose gives you a more long-term view and visibility, giving you stability for assessing your projects and giving you some kind of a gauge to assess, and possibly adjust the consistency of the key decisions of the company and the way they are implemented in line with this purpose. After the board has approved it, we will submit this purpose statement to the shareholders in meeting in late April. We will be submitting this purpose to the shareholders meeting. We want to include them in our articles of association, which shows how important this purpose is for all of us, the board, the top management, and all employees of Icade. So much for what I wanted to share with you in these brief introductory remarks. I want to turn over to Olivier Wigniolle.
Thank you, Frédéric. Good morning, everyone. Let us move on to our indicators. I will talk you through the key indicators. Victoire Aubry will tell you about the financial results. Net rental income is up 1% to EUR 621.3 million, and you will see how the office and the healthcare investment divisions contribute to these numbers. We have EPRA earnings, which is up 6% to EUR 4.85 per share. Victoire will tell you that 1% more of rental income delivered an additional 6% of earnings per share. We have a property investment portfolio up 2.6%, like for like, to EUR 11.5 billion. We have a financial occupancy rate for the office investment division, which is at 92.6%, which on the like for like, is 30 basis points up.
For property development, the numbers are not satisfactory with revenue down 22.6%, in line with the last quarter of the year before, to 967.8%. We will be discussing the future and what we did with Emmanuel Desmaizières to develop a new roadmap for property development division. Net current cash flow down 25.5%- 33.1%. Return on equity, knowing that we have done lots of investments, 16.9%, property development, return on equity. A backlog, which is at EUR 1.3 billion, up 8.1% over prior year 2018. Average cost of debt slightly down, 1 basis point at 1.54%. Average debt maturity, which remains stable at 6.4 years. Loan-to-value ratio at 38%, which is quite stable over prior year.
When you combine all of these items for property investment, property development liabilities, you have a net current cash flow up 2.1% at EUR 5.26 per share, a bit above our guidance. The last part of the year delivered a better result than anticipated. We have EPRA net asset value, which stands at EUR 94.9 per share, up 5.7%. There is a gap between EPRA NAV and EPRA triple NAV. You have net profit attributable to the group, which is quite significant for us as we have historical accounting method, which is strongly up by 93.7% to EUR 300 million. This is a result of the disposal gains we completed in 2019. These indicators are totally in line with our plan.
As Frédéric said, I believe it is important to note that the initiatives we took, the measures we engaged, fall within a part which was launched mid-2018 to mid-2020. It is the first year through our plan. A number of the items, very significant disposals, for example, have been a key highlight in fiscal 2019. These are completed within a medium-term strategy. The key highlights for the year, EUR 1.1 billion of disposals for the office investment division, Crystal Park, and a 49% stake of the EQHO Tower, a fine office business asset in Paris. We have conducted these disposals to fund our development pipeline for the office investment division. We had eight completions in 2019, which created high value on the order of EUR 155 million. We invested close to EUR 534 million in this pipeline.
We've stepped up our investments in the healthcare investment division on the order of EUR 750 million this year, quite a significant amount this year. We've opened a new country, that is Germany, with the first transaction in the early part of November. With respect to the healthcare division, we had an inaugural bond for Icade Santé in very favorable market terms. It's not now a moment for self-assessment, but I believe that the five priorities we announced to you in 2019 were delivered, were complied with. I will repeat this in the course of the presentation, but we have delivered really in line with our priorities. If we go into some detail with the business divisions. For the office investment division, we've had very buoyant rental activity with new leases signed and some renewed.
We've signed some 210,000 sq m, more than 179 leases, with more than EUR 51 million in headline rental income, which makes Icade the first player in the greater Paris area in this respect. The new leases starting during 2019 amounted to 168,000 sq m with EUR 47 million in headline rental income, with nine leases, with rent over EUR 1 million per year, with two significant transactions, one with the Pulse building, with a lease signed with the Paris Organising Committee for the 2024 Olympics, 28,860 sq m, 100% of the floor area. You have the Gambetta building, with a bit more than 16,000 sq m gross. Rental income is up 1.6% like for like, i.e. a 3.1% increase for business parks, which is higher than the announced number in June.
Main factor for that is the disposal of the Crystal Park building, which increased the rental income for the first half of the year. As this building was disposed of, it's not shown in the increase of rental income like for like. You have the financial occupancy rate standing at 92.6% in late 2019, 96.4% for offices. If you were to reincorporate the signing of the Pulse lease, the financial occupancy rate for the office investment division stands at 94.7%. Asset rotation with two major disposals. This on the right-hand side, generating some EUR 1.1 billion in capital with these two major disposals. Capital gains of EUR 270 million, and the 49% disposal of capital gains directly translates into shareholders' equity. We made one significant acquisition, which is the Point Métro 1 building in Gennevilliers, for an amount of EUR 123 million.
We've accelerated our asset rotation in 2019 in our portfolio, in line with our strategic plan to fund the development pipeline and to fund the acquisitions of the healthcare investment division. We have this development pipeline, which is the DNA of our healthcare investment division, with a total investment of EUR 509 million. We have created value from the eight completed assets on the order of EUR 155 million. You have on the right-hand side a couple of completions here. The Le Castel building completed in Marseille. You have the FactorE in Bordeaux, which has been pre-let up to 59%, and the Monaco building, which is at the bottom, which is a hotel building in the Rungis park.
These completions for 2019 amounted to more than EUR 500 million in total investment, EUR 33 million in potential rental income, and these eight assets have been completed and pre-let on the order of 94% by year-end. We also have done an early exit from a partnership with Altarea Cogedim, with an asset which was sold in Issy-les-Moulineaux to CNP. We generated some EUR 15 million in dividends for the healthcare investment. Office investment, key figures, portfolio value of EUR 8.9 billion, EUR 8.5 billion in group share, 8.5, sorry. You have a weighted average unexpired lease term at 4.5 years. Average net initial yield at 5.8%, quite high in the market, with a financial occupancy rate, which I just mentioned.
I believe it is interesting to look at the price per square meter, which increased significantly over prior year, which is due to the portfolio asset management and due to contracted yield in the market. This is a combination of these two factors. Basically, you have average price per square meter in the Paris region on area at EUR 7,500, offices outside the Paris region at EUR 3,600, and business parks at EUR 2,350. We are quite satisfied with this. This is basically on the back of the increase of the occupancy rate across our portfolios, be they business parks and office investment.
Now, if we look at the future, in fact, we're always working hard on this pipeline. We have eight operations delivered this year, but we've also reloaded this development pipeline. We have 17 operations in the development pipeline at the moment, amounting to an investment of EUR 2.2 billion, and already announced we have of these 11, EUR 1.3 billion in investment. It's important to remind you that our balance sheet also shows the effort of our investment of EUR 800 million, which don't necessarily generate cash flow, but are, of course, the reserves of value creation and rents in the years to come. In this announced pipeline, we expect EUR 86 million of additional rental income and a yield on cost of 6.4%. For the entire pipeline, we expect a valuation in the region of EUR 700 million, including EUR 500 million to be captured.
If we look at the completions in the years to come, in 2020 and 2021, the additional rental income will be in the region of EUR 58 million and a pre-let marketing rate of 62%. We consider the implementation of this development pipeline is relatively well-directed. In healthcare investment, 2019 was a very strong year for investment, EUR 750 million, EUR 400 million in France alone, with the acquisition of a private hospital called the Confluent in Nantes, in partnership with Vivalto Santé, which at the same time was acquiring the operations part. Two nursing homes purchased in Clariane. We also could have pointed out the acquisition of the Epione portfolio in the middle of the year.
Above all, EUR 350 million invested internationally, primarily in Germany, with a transaction in 19 nursing homes for a little under EUR 300 million, and the continuation of our investment in Italy for EUR 86 million.
We are, I believe, on the right direction to continue our trajectory of becoming a leading European healthcare investment operator. We have a plan for significant investment between 2019 and 2022, of practically EUR 2.5 billion, with EUR 750 million already implemented in 2019. I think we're in line with our objectives. In addition to the investments, it was a year of quite robust leasing activity in healthcare. We don't talk about this so much because the portfolio is 100% full by nature. We have improved rental income by 11.7% on a like-to-like basis, with the completions that are very significant, in fact, in 2018, + 2.6% on a like-to-like basis, which have also, I believe, continued on a very good trajectory.
We've renewed a number of leases in France, in particular with the Elsan Group, which made it possible to increase the residual durational term of the leases with an increase now of 0.6 years. For investment, we've done internationally, obviously, these are operations which are more recent, with a bit of sale and lease back. There, the WAULT will mean with the national investment, leases are longer than in France, in particular for tax reasons, and the residual aspects of we have, in fact, 17.9 years too. It's important to conclude this slide, is that growth in 2020 in acquisitions and completions in 2019 account for, once again, a significant amount in the region of EUR 28 million in additional rental income. The highlights for the healthcare investment is a portfolio amounting to EUR 5.3 billion.
We've already got some minority interest as well that's significant in healthcare, especially in France. The group share is EUR 3 billion, a yield that is extremely attractive, that remains so. It is contracting slightly. That's a market phenomenon at 5.7%, excluding duties. Obviously, an occupancy rate that is 100%. The WAULT is at 8%. We have 156 facilities, a very significant increase compared to the previous year. The outlook for the medical investment branch is we will continue our investments internationally and in France, where we will be looking, in effect, as a priority for the international business. There's a very significant aspect to invest in. Our teams have a pipeline that's very attractive and very interesting. We will see in the year how we will close a number of deals.
Our model has always been to try not just to purchase property assets, but also to make distinct partnerships that are solid and over time, long-term. That was the case in France. It's starting to be the case in Italy. We're looking with an operating partner with whom we have signed this preliminary operation in Germany, how we could do so, perhaps, for other developments. We have an investment pipeline, therefore, for extensions, works, and operations amounting to EUR 292 million as of December 2019. We will continue, even though the terms are very short. We do plan ahead for our leases with our major operatives in France, where we're expecting over 18-24 months in advance, where there will be some new dates.
We have already had this preliminary aspect for healthcare, and we will see how we can make the most of these very attractive financial conditions to finance our growth to be extremely accretive. A question that we are often getting is, what about the liquidity in healthcare? We are working actively on this issue. What we are telling you is it has not changed since 2018, 2019. This event will take place between 2020 and 2022, but it is true that we are working increasingly actively on this matter. If we look at property investment development, the figures, as you have seen, are not particularly well-directed. 2019 was a fairly important year for Icade Promotion. We had a new managing director, Emmanuel Desmaizières , who has built, developed a roadmap for 2020, 2024 that is focused on growth.
As I said, we were talking about growth in the region of 40% by 2024. Our figures, we have done things that, notwithstanding the figures from last year, are pretty well-directed and focused. We have some backlog as well. We have got over 5,000 apartments. We have got a very significant increase of 5.6%, waiting for figures for AFP and some developers as well that have presented before us. I think that the backlog is. By value will focus downwards, but in fact, there will be some figures there that will be quite interesting. That will point upwards as well as quite positive. You can see this in the backlog, in fact, because the backlog has increased by 8.1%, so that is quite a tonic, dynamic approach.
As we have done also, one of the issues of property investment development in France, if we exclude the impact of the municipal local elections on building permits and what have you, is the main problem for real estate companies. What we have done is made a decision for portage. It is fairly attractive. We have actually acquired quite significant operations for nearly EUR 400 million with land reserves over the medium and long term that will make it possible to prepare for the future under competitive conditions that might be a little less lively than what we have been going through with bids that have been organized so far. This is an issue that we have looked at for Icade Promotion to be able to do these acquisitions that I think are particularly positive over the medium term. We will continue to win a lot of large-scale operations.
That is basically the DNA, in fact, in the Icade Promotion, and we have acquired some 19 projects that are significant. We will now go back to Bruneseau, which is the most significant, in fact, urban development program in Paris proper. The Olympic and Paralympic Village, in Paris 2 as well in the Gaulle station, the Caen University Hospital campus, and something in the 19th arrondissement in Paris, where these have been extremely active and dynamic, and I would say successful as well in 2019. Once again, we have got figures that for 2019, we consider that our attraction is well-focused. To give you a very lead indicator, which is the potential revenue that we consider over the medium term, that has increased by practically EUR 1.4 billion, from EUR 5.7 billion- EUR 7.1 billion.
That's work done in the large-scale operations. This is something we started with our land reserves over the medium term that we have acquired, which we consider that our activity is well-directed for the future. 2019 will not have been an exceptional year. 2020, we'll have to expect, wait for the new teams in place at the local elections. Maybe 2020 will be a transitional year. We remain firmly positive on our direction in this activity over the medium term, given the potential for revenue and our roadmap, which is firmly focused on growth. A few words about our CSR performance. I'm going to call it like that because it's an issue on which you've been asking us far more questions. Investors make it an investment criterion that has increasing importance.
We believe that it is part of our DNA. Our objectives and our stakes haven't changed. It's what we presented in our strat plan in 2018. In effect, our objectives are medium-term in terms of energy transition and energy and environment transition. It means an investment effort and a resource effort that are earmarked for these issues. The results that we have already obtained in the first year of implementation of the plan are, in this field, I believe, well-directed and perhaps the main indicator, the reduction of our carbon intensity of -45% between 2015 and 2025.
At the end of 2018, we're at -27%. Our reduction rate is in line with the medium-term objective. It's an issue that requires an awful lot of work and an awful lot of investment, because reducing the CO2 intensity in our assets, which are already either in use, is not an easy thing necessarily to do. Our aim was to go very quickly to have all our business parks in a positive biodiversity impact. Now, it's a little easier because we have space. We have business parks of 50, 60 hectares that we can increase and introduce biodiversity more easily. This is something we've done. In particular, as we're talking about low carbon issues there is no issues of materials performance to get there.
There's also the fact that reuse, when we want to get to low carbon constructions or new carbon neutral builds, well, reuse will become a very important issue. Over 2/3 of our projects of over 5,000 sq m have made an effort to reuse significant materials. The aim is to get to 100% this year. I'd like to remind you that one of the reasons why we won the bid for the Olympic and Paralympic Village is the reuse rate that we can post, which is pretty high. Our effort, we're very happy with this, are recognized by the extra-financial, non-financial rating agencies. I know multiple, there are several. We monitor the one we think is the reference for the property industry, the Global Real Estate Sustainability Benchmark, where we achieved a score of 84 out of 100.
For the companies, Icade has been a sector leader by the GRESB. We are also monitoring Vigeo Eiris , the two agencies we work primarily, who awarded us a score of 65 out of 100, plus 6 points. Icade is ranked third in the 80+ companies monitored in Europe. As in 2019 and 2020, our priorities will remain low carbon and our carbon intensity reductions. That is a brief overview of our overtaking of results and earnings. I am now going to hand over to Victoire, who will give you the figures.
Thank you very much, Olivier. Good morning, everybody. Indeed, yes, I will walk you through the financials, the income statement to start off with. Let us look first of all at property investment. As you see here, growth was quite buoyant. The earnings in the two investment divisions, +6%, this in the context that showed some speeding up in the volume of disposals. Two other items that are worth noting here on this slide is, as you see, the increase in the margin ratio in respect of rental income, more than 200 basis points of an increase. This is the case in both property investment divisions, more particularly for office investment with a drop in vacancies. The other point to be taken on board in this slide is the EPRA cost ratio going down below 14%, including the vacancies.
If we do not take into account vacancies, it is also at a good figure, reflecting efforts put in respect of our cost that we will talk about in a minute. The earnings for the two property investment divisions that are trending well. Let us have a closer look now at how this divides up within our portfolio, because it is not necessarily the same phenomenon all over. Regarding office investment, you see, no surprise here, a reduction in the net rental income, 5.6% down in the context of substantial disposals, of course. We also mentioned here the impact in 2019, -EUR 32 million , it is quite a substantial amount, impact of disposals. We tackled this issue throughout the year, to offset this drop, mechanical drop, in our rental income by firstly, putting in sustained efforts on rental activities.
We made acquisitions, as Olivier recalled, Point Métro, for example, +EUR 8 million , the rental income in respect of that activity. Between the rental income and the earnings, we worked on two other indicators that are important for us. The first one is the financial results of the office investment division. We had an early exit from Issy Cœur de Ville, which was a venture we had, to boost us by EUR 15 million upwards. We anticipated the speeding up of the disposals and therefore the lesser need to incur debt by making bullet repayments at the start of the year. You may recall that we made an early redemption when the rates were still very high. That was done in quite conducive condition, more than EUR 200 million worth of an impact, and EUR 220 other million to be added to that.
EUR 400 million, less debt in the office investment division. That has a positive impact on the earnings and trending us in the growth direction, of course. The other item is management costs going down by EUR 8 million for the full year. The earnings for the office investment division in a context of speeding up of disposals is going up nonetheless, +3.7%. To 100%, EUR 245 million. That's the main effect of the Tour EQHO portion we hold. We only have 51% of that now on the income statement. The healthcare division, next investment division for several years, we've had a lot of sustained growth in this part of the portfolio. The net rental income going up substantially, almost 12%, margin ratio going up too, and the earnings.
Naturally, we have EUR 120 million here, as you see, growth in the full year. The growth of rental income, +2.6%, mainly driven by the escalation formulae that account for more than 2% of the growth here. As you see here, the earnings of the healthcare investment division at 100% is EUR 211 million. The third business line you see here, well, a bit of a dip in the results as we indicated to you as of the last half year results. You see 23% down for the revenues. That's because of the slowdown in residential in the pre-electoral context we have at the moment in France. On the supply side, that has an impact. Also, that's a bit more marked for offices. The margin ratios are going down because of the volume going down 113 basis points for the full year.
Apart from the volume effect, with the impact of the upswing in construction costs borne by all of the sector, of course. You can see that the net current cash flow of the group, EUR 33 million, representing 8% of the cash flow of the group. If you look at the specific business activities of ordinary development with allocation of capital, EUR 165 million, the performance put in by our development activities is quite substantial, 16.9%, as you see, are away from ordinary activities here. As Olivier said earlier, we're preparing for the future too, by speeding up our acquisitions of land banks. It was EUR 100 million worth at the end of the full year, consuming also some of our equity. That's the reason why we spell out the fact that the equity base is the carrying amount.
Outside of the guidance, +2.1%, as you see here for the group NCCF growth, in the context of a lot of speeding up of our disposals. We put in this performance nonetheless. A short slide on our net income group share. You see this reflects the good financial health of Icade net income, EUR 300 million. We freed up EUR 209 million worth of gains on disposals, with Crystal Park being disposed of. You have as well the EUR 61 million freed up by the dispose of the EQHO Tower building. That gives us a sound structure for our balance sheet. To add to this, a few other facts and figures on the trend in the value of our property portfolio. Office investment on an ordinary basis, you see a drop of 2.6% on a reported basis.
You got to look at the 2.9% figure here, which is like for like, fueled by the creation of value in our pipeline. Eight completions in 2019 for the year. Two new projects that are also continuing to deploy positive effects on the value. The trend in the property investment divisions, also a buoyant performance out in the French regions. On healthcare investment, good growth there. EUR 3 billion at the end of this last year. On a like-for-like basis, is up 1.7%. You see that the portfolio here represents EUR 5.3 billion worth, all told, on a 100% basis that is, which becomes quite substantial in importance if you look at Icade as a whole. The two property investment portfolios, EUR 14.3 billion in total at the end of the financial year.
Logically, after commenting on these cash flow items and the portfolio, we have the NAV, as you see here, excluding the effects of the fair value of derivatives. There you have the growth of 5.7% here. EPRA single net, that is AV. The EPRA net asset value TSR is up 10.8%. If you take out the fair value of our derivatives and fixed rate debt, you have accounting for 3.7% on our debt. The drop in the rates is a good thing in itself, but of course it brings down our earnings in a negative way. The triple net figure comes out as you see here. The EPRA triple net AV up 1.5% for the full year. What about the liabilities, then? We've been fairly active in managing our liabilities. A couple of selling features here.
Firstly, dynamic and anticipated management, trimming our sails on the office investment division. Also, we availed of the excellent market conditions last year. As to continue enabling Icade Santé to, after the standalone entity and be more, fly with its own wings, let's say. Of course, there was a bond issuance in very attractive conditions, as Olivier said, EUR 500 million. The first origination 10-year bond, the rate we achieved here was absolutely very attractive. In sum, you see that our balance sheet indicators are quite sound and trending in the right direction. The average debt maturity, 6.4 years, flat compared with last year. The average cost of debt going down slightly, 1.54%. ICR, among the highest on the marketplace, reflecting the robustness of our liabilities in this company.
We also have a liquidity cushion of EUR 1.7 billion, giving us four years' worth of interest and capital ahead of us. Quite a good cushion. We've really covered our liquidity very well. The LTV ratio, including duties at 38%, in line with our financial policy, and flat compared with last year.
On this basis, the Board of Directors would propose at the next General Assembly on the 24th of April, a dividend of EUR 4.81 per share, which would be an increase of 4.6%. This fits with 4.6% of the total cash flow and of the sales that were made. You can see that this dividend on the basis of our share price on 31/12, which was 91.4%. The return is 5% on dividend yield, and dividend yield based on EPRA and NAV is 5.3%. Finally, the TSR share price is at nearly 55% for the entire year. The paying of dividend will be carried out in two phases, just like last year. The first one will be early March, and the coupon will be detached on the fourth. Payment will be on the sixth, and the second installment would be in the early weeks of July.
That is as far as the financial elements are concerned.
Merci, Victoire. Thank you very much. I will tell you a few words about our purpose. Before this, we are going to be showing a short video to summarize our purpose statement.
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Voilà. Right. We wanted to show you this short video which basically illustrates the story of Icade and the initiatives we've taken. We took the opportunity of the French PACTE Law, which was introduced last year, to undergo this process which started mid-2018, this strategic plan, which involved 100% of our employees with the purpose statement, which was approved by the board of directors. Icade is part of those corporations who want to push the limits in these areas. The board of directors decided that it would submit this purpose statement to the vote of the shareholders in the general meeting of 24th of April 2020. The idea being that this purpose be included in the preamble of our articles of association, our prospects. Outlook for fiscal 2020 are as follows, namely our priorities.
We have a strategic plan and our priority will be to continue the execution of our strategic plan, which has the main pillars, which you know, which will span out to 2022. With respect to the office investment division, we'll slow down on our process of disposals, fewer disposals than we conducted this year, but we will step up our investments in the development pipeline. For the healthcare investment division, the priority will be to grow further and to further expand. Internationally in this portfolio, for the property development division, our priority will be to implement the roadmap for 2020, 2024, which was introduced in November last. For CSR, the priority for 2020 will be to continue to focus on our low-carbon strategy.
On the 24th of April, with the AGM voting on the purpose statement, we'll have this purpose with associated goals and ambitions, and we'll be basically implementing the goals within this Icade's purpose statement, cascading them down all the organization. With respect to our financial prospects and outlook, Victoire Aubry shared with you the EUR 32 million impact of disposal. If you look at 2018, 2019, there was more than EUR 70 million are generating from disposal gains. Our cash flow position will be lower than what happened in 2019. If we restate it from these one-off disposal gains of fiscal 2019, basically the cash flow would be up some 5%. With respect to the 2020 dividend payout ratio will be higher. Payout ratio of net current cash flow on the order of 90%.
Since we distributed only part of the capital gains generated in 2019, you know the tax terms applicable to REITs, we'll be distributing part of the gains in order to fuel, to contribute to the increased payout ratio. Much for the financial outlook prospects for 2020, and the next general meeting will be on April 24th, 2020. Thank you for your attention, and we are available to answer your questions, jointly with Frédéric and the management team.
Good morning, Pierre-Emmanuel Clouard of Jefferies . I have several questions for you. The first is on property development and personnel margins. We saw a slight downgrade in your headcount as well. Can you tell us what you're going to do for 2020, and what were the assumptions made for the bookings for 2019 and future operating margin as well? The second question is the development in your values. I may be wrong, but I think there's EUR 207 in gains from disposals, but we adjust this for organic growth of 2.2% for office space. Does this mean that the remainder of your portfolio will contract by value for the rest of the year? We also have a question on rates again in the EQHO Tower. Thank you. Are you actually considering that this is going to change in 2020?
My last question is Icade Santé, its liquidity, and there again, we have a window, I think that's quite exceptional. What is the blocking issue at the moment? Do you have to convince your partners that are Icade Santé, or is it a governance issue? Or is it a leverage issue?
I'll try not to forget some of the questions there. For some of you, the trends in changes in values, I'll ask Antoine to answer that one. As for the margins, it's because, in fact, due to the Victoire and the volume effect, with the fact we've also got some overheads that will impact us and an erosion in our margins, plus an increase in construction costs that we can't reflect in our sale price. Of course, we'll have a slight erosion in margins in 2021 for the same reasons. In 2020, I'm sorry.
What we're saying here is that by 2022, medium-term horizon, we'll get back, in particular due to the improvement in revenue volumes, levels, and the work we've done in our land reserves that we can purchase at a lower cost, because we're working over the medium and long term, to find a normative level of 7%. As for the office portfolio, I can't remember exactly the drop from the impact of the EQHO Tower. Perhaps, Antoine, you can take the microphone and answer. Antoine de Chabannes, who is Head of Portfolio Management.
Yes, the office portfolio is increasing, and in terms of variations in we can look, in fact, an increase of + 2.9%, and this is particularly true for office space and not business parks activity. Plus, in fact, a strong effect from the development pipeline. Disposal gains are not included in this. They're not included in the increases. In fact, there's no impact from the EQHO Tower. To go back to your second and third question, the option available to our partner is at a given price, a set price, and obviously the value is stable. There's no variation in the EQHO Tower, unless they decided not to exercise this option. It's a purchase option.
We structured the deal to be able to work with them for a long time. Even if they decided not to do so you've seen on the Paris market, a large proportion of the performance of the investment market in Paris in volume and rates, relates to the activism of Korean investors, who by far were the most dynamic this year on the office market in France with very significant transactions.
These are investors that are very at ease with very large objects, very at ease with the market of La Défense, where we've got more than EUR 500 million deals. We've had budget hypotheses, the rationale or logic would say that they would exercise this purchase option. At least that's what they told us. They are in no sense required to do so. It's an option. The ball is in their court for 2020. If they decide not to exercise it in 2020, then we are free both in terms of valuation and liquidity. As I said, we structured the deal to be able to carry on as far as five, seven years with this very high-quality partner, in particular, due to its intrinsic financing. For the other one, there's no problem.
It's a fairly complex issue in terms of legal and fiscal tax issues, the transformation of a subsidiary site into a parent company site means an awful lot of rolling issues as well, among other things. To ensure that liquidity, we have multiple options available to us. That's because if you look at the history of Icade Santé in terms of developing the operating platform, in an ideal world, we'd have one or two additional deals on an international level to convince and be sure that the concept of a pan-European platform, the idea of being a leader in the medical healthcare sector is a reality. Olivier's team is working on these issues and simply we've always said 2020, 2022. It's true that most investors or analysts heard 2020.
I believe, having looked at all our disclosures on this issue, that we're working at our own pace. We've got actually a shareholder agreement that stipulates liquidity in Santé at the end of 2022. To be completely transparent about this issue, and therefore we have discussions on a legal tax basis that are quite structural, and with our partners on the feasibility of accelerating or planning ahead for that close. The pact, the agreement is there, it stipulates the end of 2022.
Off mic. We cannot hear with the microphone, please.
Good morning, Florent Laroche-Joubert. I had several questions, in particular, in response to Icade Santé. We can see that your share price is going above its NAV. As you've got several options for Icade Santé, can we imagine a minor liquidity issue, a capital increase for Icade so that you could consolidate even further your Icade Santé position? That's my first question. My second question is about the 2020 dividend. Should we look at the new guidance, which is still in line with the guidance you gave over the medium term in 2018, in other words, growth of over 4.5% per year? Third question, with regard to your purpose, you've insisted on this. What is basically changing? Is this opening opportunities for you? Can this create obstacles for you? How should we understand this?
As for Icade Santé, the issue is not accretion. There's no idea of, in fact, increasing market capital to purchase, I don't know, a minority interest.
These minority interests are major life insurance companies. Our aim is to deploy capital than to pay in the disposal gains, which are significant. Those are one of the issues that have to be addressed, in fact, for Icade Santé. We've made that decision, in fact, when we presented the plan with the investment levels that are particularly significant in real estate companies to have, in fact, a constant equity plan. Therefore, rotate capital, which may have an impact on specific short-term KPIs where we have disposals to finance development. We have no projects in mind of that kind. Of course, there may be something over the medium term, but there's nothing at the moment in our pipeline. The issue, therefore, the minority interest, I think are pretty happy.
Over the period, the IRR, in fact, for Icade Santé, which began in 2012, outperforms 10%, is more than 10%. If we manage to do this with the plan as we've developed it would be in the same region. More or less. No plan for an exit of a significant minority interest over the short term. At least it hasn't been brought to my attention. Now, the purpose. Admittedly, we believe that these issues go back to CSR. Which is why we went back to our history, so to speak. It was already part of our DNA. Simply, the PACTE Law has been voted. It gives companies this possibility, and I think it's useful for everyone. It's useful for staff members because it gives them a direction in which they can work towards.
It's useful for the board of directors, which is basically the broker of that approach. I think we've done it because it's increasingly useful, I believe, and necessary or at least required by investors who ask us. I can tell you the time we spend or in meetings we have with you, the proportion earmarked for these issues in the last four years increases from year to year. We can see that there is an increased interest in these issues, and they may become a discriminating criterion for investment. I believe all the blue-chip companies must have acquired a purpose, unique in their own way. Why? Because investors, I believe, will look at this in greater detail and not just as socially responsible investment operators or what have you.
I'm not going to talk about the personal convictions of everybody. We do it because we believe it gives a far more detailed framework, both for staff members, board members, and partners. Now, does this mean opportunities? Well, I think it means we might have to give up on one or two things over the short term. When we looked at this in such a formal way, there may be some things that we'll say, "Okay, we can't do some of this because it's not in line with our values." It's a discipline, it's rigor. When we look at this, it's quite logical. When you look at the wording of our purpose, if I can put it back here on the screen. It is, I believe, a perfect continuation of what we do today. It's also realistic. We're talking about missions, objectives.
I think it would be wrong to say that 100% of what we do today equates exactly with what was written, but I think it's pretty close with the history and DNA of the company, and it's a wording that comes from the corpus of our company. We think that any gap between what we do and what's written here would be quite minor. As I said, it's a priority for 2020. Once it has been approved by the shareholder meeting in April. Again, given the composition of our capital, the suspense is not so great. Once we've officially adopted this purpose, we will strive to apply it to our business divisions.
To answer your second part of the question, over the medium term, I believe that it's an opportunity, because I believe that companies that the most virtuous in these fields, in particular in the fields of diversity, inclusion, and low carbon emissions or carbon footprints, and I'm talking at least in real estate, are independently of their financial independence, the ones that will be preferred by investors. I think ultimately, when we look at how our corporate clients react, it'll become a performance factor in real estate portfolios that'll be far more significant than it has been in the past. Another question, just to go back for question number three.
Just another question. We'd like to confirm that guidance, 2020 is in line with our development for the four years of the plan.
Yes, indeed. In fact, the gains rate will contract in July, depending on how the year pans out. As we've talked about this before, we are on the same trajectory.
Henri Quadrelli, Société Générale. Just a question about office rental income. Business parks have a like-for-like performance that is basically flat compared to office space in the strict sense of the word. What do you see in terms of rental income growth?
It's quite strong, actually, in business parks. It's at +3% on a like-for-like. In fact, when you look at the indexation and rental index, where we're flatter, it's in office space. As I said before in my introduction, it's primarily because we were penalized from that point of view by rental events.
There have been some departures, as this happens, in fact, in all buildings that have been our approach. I'm thinking about [Orly-Rungis] , which we've re-let since then. Over the year, there has been an impact. In fact, in the first six months of the year, a large part of our growth came from Crystal Park. Which when you restate the figures on like-for-like basis, is no longer part of the office portfolio. At the same percentage, we're even below indexation, in fact. That's the impact of some rental events, which mean that when we re-let these buildings, we will resume like-for-like growth more in line with market trends. Are there other questions? Or are there questions online or via internet? Yes, there are some questions. Can we read them out? A question from [Serge Perrin]. Two questions.
I share the business plan and the direction for Icade in the next three years. Traveling quite often, I don't understand why Icade is not focusing on investment outside Europe in very promising countries. My second question, what is the dividend amount scheduled for 2020? Classic, in other words, and an increased dividend with the gains from disposals. Question, we got two answers. We've got a plan presented in 2018 that showed an initial movement internationally in the Eurozone, which is already a change in our DNA for us. Our companies are what they are. I won't go in Europe or elsewhere. In fact, what other real estate territories with very strong regions, perhaps stronger than in France, which is a very mature market.
Apart from the international diversification of Icade Santé, we do not have, at the present, any projects for extensions on an international level, neither in office space nor in property development, which are very local businesses, in fact, in promotion and development. I think in other things, we've got a huge amount to do still in France to ensure earnings growth. In terms of the dividend, I believe Victoire has answered. At present, we have not scheduled an exceptional dividend. We have growth in the dividend, which is regular. The exceptional dividend, when we look at this disposal amount, if we don't manage to reuse the capital quickly or the income from disposals, because we haven't used everything, because our treasury earns nothing. It doesn't cost us anything. Let's be happy about that. Available treasury at the end of the year, given its disposals, is extremely significant.
We're talking several hundreds of millions of euros. Also with our total debt as well, because we believe we are capable to reuse this treasury, these cash assets, over the short term. That's our central hypothesis, at least, for our work, because we cannot let these cash assets linger too long, and we have every hope, I think, at least we are reasonably sure of being able to use this over the short term and not send it back to our shareholders. A telephone question, I believe.
The first question is from Jonathan. Please write down the question.
Yes, several questions, in fact. The first is about dividends from the early exit operations. Perhaps could you tell us a bit more about the transaction? It would seem there's a subsequent development, and I don't necessarily understand why that would be in your recurring results or earnings, and not from, in fact, gains from disposals. You'd have EUR 15 million less in your recurring net cash flow. Second question is on revaluations. It would appear that in the second half, there hasn't been any, in fact, for office space and few in healthcare. Could you give us, therefore, a bit more information about these developments between the first and second halves of the year? On these new valuations, in fact, what are the new ones for third-party accounts? Third question, regarding the pipeline.
You've once again rescheduled projects in your pipeline, which have already been deferred from last year. Perhaps you could give us some more information about demand in your pipeline. I imagine there are technical issues as well, but if you can give us some more information on this. Thank you. For the first question, in effect, we have a Cœur de Ville operation. We had a very minority interest in this. It was in the development phase. The building was sold to a user. What we are getting is the dividend. Accounting standards make us book this as a financial result or earning, which is why it's included in the financial results. As Victoire said, contribute to the significant improvement in our financial earnings for office-based investment in 2019. It is not a profit from a disposal or gain from a disposal because we are getting dividends.
I'll let Antoine de Chabannes talk about developments between the two half years. As for the pipeline, there may be marginally some discrepancies arising from technical reasons. They're rarely significant. There may be one to three months delay, primarily for reasons that have to do with the construction sites. We talk about bad weather conditions. Bad weather condition days are declared, that's where the building authorities will postpone the completion dates for operations. That is the main reason for any discrepancies, but they are relatively minor. Our Latécoère operation in Toulouse was delayed by six weeks, as I recall. I think it went from the 31st. It means it goes into a different year. The original operation for bad weather conditions, with the approval of the tenant, because we're refurbishing for this tenant, will be rescheduled or postponed by two months.
We have that kind of deferment, but we do not have a single operation or development that has any significant technical difficulty that would lead us to significant delays. That is why this pipeline is alive and resonates to the pace of these operations. You have seen between 2020 and 2021, in terms of marketing, we are pre-marketed at over 63%. It is an extremely positive event.
Antoine, for these split trends in the two halves of the year. First of all, I would like to stipulate and confirm there has been a major increase in value in the second half of the year. Please remember that from our H1 results, we had an increase on a like-to-like, the fact that Crystal Park, that we sold some days after the 30th of June, and that was de facto integrated in that variation on a like-for-like basis.
If we restate for the year, for Crystal Park, for office and for health investments, there has been significant differences. For office space, there is EUR 227 million, so EUR 2.9 million, primarily driven by the scope of offices under use, but also for the development pipeline with a project such as Origine. For the health investment portfolio, at the 30th of June, there was a relative stability in values. Remember that the market was fairly listless. There was EUR 200 million in transactions on the 30th of June. And experts take account of this with a slight discrepancy, a slight gap. We are in a year in France where the portfolio of transactions was at EUR 600 million approximately, which was a positive impact. In addition to all the asset management phenomena that Olivier mentioned, such as the extension on leases.
This means that the healthcare portfolio has risen primarily in the second by 20.7%. Sorry, 1.7%. In other words, a little bit more than EUR 40 million. Now, to supplement what Antoine said, it is not a paradox. You can see an increase in value, which is less than the increase in rents on a like-for-like basis. So why have not we actually mentioned it here? Although we are talking about a compression of yield rates, and we should see how experts operate, at least in France, because they are not in terms of our valuations and our internal numbers, they are external, and there is a time lag of approximately one six-month period before they integrate these in their The major transactions are integrated in their references, which are quite few in number. We neutralize those we do ourselves.
As we are in France, by far, the leader in transactions, experts are sometimes rather cautious in the way that they update their valuations.
Now, a final question, perhaps, by phone. It is a question about the values of promotion, property development. Yes, for various reasons, we do not give out directly the values of Icade Promotion stock. What I can tell you is that in the NAV for this, we have two factors that I would say are contradictory. We have short-term results, earnings that are those you know, and we have an outlook over the medium term that is quite interesting. Once again, the value retained for the Icade Promotion NAV, it is not ours, it is Eight Advisory's figures, to name the agency. They came to the finding, the conclusion that for 2019, in concern the price of Icade Promotion stock, it's not far from being flat, in summary. Thank you very much.
There's one last question.
Good morning, everybody. I have three questions that I'd like to ask you. Firstly, about your management costs, which have gone down tremendously compared to 2018. Can you give us a few examples? Of the reasons why there was this drop. Second question is about the guidance for this year. What will be your disposals and acquisitions in the course of this year? I understand that for the next three years, you've already determined this cycle, but we would like to know what the present liquidity of the market is, and given the present situation. Now finally, about Santé. You had a portfolio in 2018, which was different. Initially, there was supposed to be a lot of disposal early 2019. But on slide 66, we don't see that. Is there any particular reason why these work sites have not started? Why these.
No, I'll answer about the disposals, and Victoire will talk about management costs, and somebody else will talk about the medical facilities in Italy. What we do is an ongoing concern. It's not a fund. We calculate our IRRs all the time, but we don't sell off all our assets just because it's a good time on the market, otherwise, I could sell 70%-80% of the portfolio. Now, it's true, the level of disposals was very significant in 2019, as we had offers on the table. We have some offers that we didn't ask for at very interesting values. Again, at appraisal values. I think the role of a real estate company is to increase its current cash flow and not sell off its assets. This year, we've managed, we succeeded, and it wasn't an easy year.
EUR 73 million in rents disposed of between in one year. We got to find the investment to replace this or take out operations from the pipeline. When we got that kind of level of disposals, practically EUR 600 million in 2018, there comes to a point where we look at the outlook, as we've announced before, we're in a dynamic of growth over the medium term in cash flow, this means that we are retaining part of our assets, even though we receive interesting offers coming up. Sergio, perhaps you can talk about the Italian portfolio and the first completions with Corona.
Yes, good morning. Yes. For the Italian portfolio, which was promised at the end of 2018, in fact, several sites of the seven that were signed were practically completed and should be acquired as it's an acquisition with a condition precedent of an authorization which would happen, in fact, by the summer. There's a slight gap, therefore, compared to what was imagined in 2018, but only a few months before it then joins our portfolio in the summer.
Thank you. Victoire?
Concerning the management costs, there are three main reasons why the management fees are down. Initially, because we were very disciplined when it came to our overheads, and we were very careful in virtually all the different divisions of Icade. We were extremely disciplined in our approach, and the result was positive. Secondly, in terms of our development pipeline, particularly in development, there was also the fact that our cost capital expenditure was limited, and there's a technical accounting reason with the application of IFRS standards, which have really helped us to see a reduction in management costs.
Thank you. One final question, because we'll take the last question from the internet. A question from Amal Aboulkhouatem. Hello. Could you give us some information about the renewal conditions for the leases L100 and your outlook for the months to come for Icade Santé? Well, yes and no, Amal. Even so, we come back to this rather compulsory nature of these assets, the renewal or bond nature of this, in fact. Just to make it simple, rents are pretty flat. Again, it's set against the portfolios as well. That's what the operators are looking at. We're looking at the occupancy ratio. If we have rent increases, well, we got to look at the OCR, and renegotiate perhaps some non-revisable terms, again, in light of the work schedules and what have you.
We have revenue that is flat when we renew, and with Elsan, we had a master agreement signed with those on the modus operandi. These mechanisms are very interesting. In fact, when you look at the mechanisms like for office space leases or when appraisals are done, when experts have to go to the courts to explain this. For the time being, and I touch wood, we've always managed to do ad hoc renewals that are usually very well done. In fact, in tunnels that were signed when we had the first sales and leasebacks that are in the range of 95%-105% or 90%-110% of the rent, and normally at the level of the portfolio. For leases that were renewed, not here, the assumption is that the rents will be flat independently of indexation. Thank you all for your presence, for your attention.
If you have any additional questions in light of the documents that we've given, and specifically the press releases, feel free to contact Sophie and Victoire. I would look forward to seeing you on the 24th of April with the shareholders for the AGM. Thank you all.