9 months 2015: Acceleration of the strategy 5 November 2015 - - PowerPoint PPT Presentation

9 months 2015: Acceleration of the strategy

5 November 2015

CONTENTS

FONCIÈRE DES RÉGIONS 2

>KEY EVENTS OF THE PERIOD >OPERATING PERFORMANCE >KEY TAKEAWAYS >APPENDICES

3

Key events of the period

Sofitel - Lyon

FONCIÈRE DES RÉGIONS 9 M 2015 4

KEY EVENTS OF THE PERIOD

Q3 2015 ACHIEVEMENTS: WELL ON TRACK FOR OUR OBJECTIVES

New agreements with our partners A stronger Real Estate portfolio

Strong lease activity YTD: 17% of the total rents

> 12 years average firm lease term

Successful renewal of the partnership with AccorHotels in Hotel Real Estate Average firm lease term: 7 years ; Occupancy rate: 96% Acceleration of the strategy €1.9 billion (€1.3 billion GS) of investments YTD €1.1 billion (€0.6 billion GS) of disposals YTD

Accelerated value creation

Offices France: 4 new deliveries in Q3 totalling 65,800 m² Offices Italy : 2 new acquisitions in Milan CBD in July German Residential: new investment in central Berlin in October

Office, Rome Office, Lille

FONCIÈRE DES RÉGIONS 5

KEY EVENTS OF THE PERIOD

FRANCE OFFICES: A SUCCESSFUL INVESTMENT STRATEGY

Historic delivery activity in 2015: 9 projects for 104,810 m²

> 84% let vs 71% at end-2014; average lease maturity close to 10 years > Increase in portfolio quality: strategic locations in Grand Paris and Major Regional cities, green buildings, strong tenant base > Attractive risk-return profile: €309 million GS of investments; 7% yield on cost; more than 20% average value creation at end-June 2015

9 M 2015

Eiffage Campus - Vélizy-Villacoublay (Grand Paris) 23,200 m² Steel - Paris 3,700 m² Green Corner – Saint-Denis (Grand Paris) 20,400 m²

Reinforce portfolio and cash-flow quality Strong value creation driver

Cœur d’Orly (Grand Paris) 18,450 m²

4 new deliveries in Q3 totalling 65,800 m²

FONCIÈRE DES RÉGIONS 9 M 2015 6

KEY EVENTS OF THE PERIOD

OFFICES ITALY: STRATEGIC ACQUISITION IN THE CITY CENTER OF MILAN

A new stage of development in an improving environment Prime locations and value creation potential

> Acquisition from Cassa Depositi e Prestiti of 2 office buildings totalling 22,445 m² in Milan CBD > Redevelopment potential within 3-5 years > €105.6 million (€51 million GS) investments (4,700€/m²) including €25 million of capex > Yield on cost of 6.2% on average

Corso Italia, Milan Via Principe Amedeo, Milan

FONCIÈRE DES RÉGIONS 9 M 2015 7

KEY EVENTS OF THE PERIOD

OFFICES ITALY: A NEW STEP AND STEADFAST AMBITION

Make the local platform a key player in the Italian real estate market’s recovery A leader in Italy

> Foncière des Régions in Italy: a leader with a €4.0 billion portfolio (€1.9 billion GS) held through Beni Stabili > 48% located in Milan; 42% of Telecom Italia assets > 92.6% occupancy rate; 10 years average firm lease maturities

Accelerate the improvement of quality to help grow rental income and values Change of management to drive new momentum

Tour Garibaldi, Milan Symbiosis, Milan

Focus on

• ffices in

Milan Accelerate the development pipeline Reduce Telecom Italia exposure

FONCIÈRE DES RÉGIONS

Property management potential: +45%

> Rents: €16 million and 6.7€/m² > Benefit from a +43% reversionary potential > Reduce the 4.2% vacancy rate

Asset management potential: +50%

> Possible creation of 100 new apartments > Privatization potential: 50% margin; 30% of the portfolio to be sold progressively from 2017 Berlin

Mitte 19% Neukölln 15% Charlottenburg- Wilmersdorf 12% Friedrichshain- Kreuzberg 12% Tempelhof- Schöneberg 14% Steglitz- Zehlendorf 7% Pankow 8% Spandau 4% Reinickendorf 4% Others 5%

9 M 2015 8

KEY EVENTS OF THE PERIOD

GERMAN RESIDENTIAL: A NEW MAJOR INVESTMENT IN CENTRAL BERLIN

Investment in 2,735 units

Investment in a €348 million (€221 million GS) portfolio1

> Voluntary public tender offer on Berlin IV, real estate company listed in Copenhagen

A prime portfolio

> Prime buildings: 70% of Altbau buildings (built before 1918) > Central location: 80% in the best central districts of Berlin

Rely on a well-experienced local team

A portfolio management to galvanize

Berlin Portfolio split by district (in value)

1 Pending successful completion of the offer. The offer is made on customary terms and conditions, including that FdR following the offer holds 50% of the voting right of Berlin IV

FONCIÈRE DES RÉGIONS

> 50% in small French regional cities

Better growth potential Better portfolio quality Targeted locations Best performing hotels New development capacities > 12 years firm > Same conditions > At appraisal value > Average yield: 6.2% Hotels; €1.3 bn (100%) 123 Hotels (€1.0 bn): lease renewals 80 Hotels (€281 m): disposals before H1 2016 43

 i  i  i

9 M 2015 9

KEY EVENTS OF THE PERIOD

HOTELS IN EUROPE: RENEWAL OF THE PARTNERSHIP WITH ACCORHOTELS

AccorHotels portfolio: one of the best in its market

> AccorHotels: 6% of the rents GS; 34% of Foncière des Régions lease maturities for 2017 and 2018 > 1st sale and leaseback of AccorHotels in 2005-2006; 91% in France and 9% in Belgium > Lease structure: rents variable with the hotel’s revenues

Strengthen the partnership with AccorHotels Increase hotel operators’ and Geographic's diversifications

> Weaker hotels performances

10

Operating performance

Steel – Paris

FONCIÈRE DES RÉGIONS 11

A GOOD LETTING ACTIVITY

Oméga (Levallois-Perret) – 11,488 m² Renewal with Lagardère / 6 years Steel (Paris – Trocadero) – 3,700 m² New letting to Group OnePoint / 9 years

9 M 2015

OPERATING PERFORMANCE

* New lettings, renegotiations and renewals

Garibaldi Tower (Milan) Reletting of 6,176 m² / 5 years Telecom Italia (Italy) Extension of the leases / 15 years 6.9% reduction in rent Disposals and capex program

Rely on the quality of the portfolio and the partnership strategy €97 million GS in lease agreements* YTD

> Secures 17% of total annualised rents > Average maturity: 12 years firm

Like-for-like rents on renewals: -3.3% and stable excluding Telecom Italia

> Offices France: 45,855 m² of renewals close to passing rents (-2%) > Offices Italy: 38,951 m² of renewals excluding Telecom Italia agreement with a +2% increase in rents

FONCIÈRE DES RÉGIONS 12

OPERATING PERFORMANCE

9 MONTHS 2015 REVENUES: GROWTH OF 5.4%

Growth supported by a strong investment activity

Steel letting to take effect in early 2016 +4 years of maturity

• 0.3% excluding Telecom Italia

+3,2% in Berlin, Dresden and Leipzig +1.4 year vs 2014 with Telecom Italia and AccorHotels agreements

Indexation: 0.4% Occupancy rate: 0.0% Renewals: -0,2%

+3 years of maturity

9 M 2015

Group Share Rental income (€m) Change Change on like-for-like basis Occupancy rate Residual firm terms

• f leases

Offices - France 180.1 + 0.9% + 0.7% 95.5%1 5.4 years Offices - Italy 79.2

• 9.6%
• 2.6%

92.7% 9.8 years Offices 259.2

• 2.6%
• 0.4%

94.2% 6.6 years Residential Germany 85.5 + 11.7% + 2.1% 97.5% n.a. Hotels/Service Sector 60.1 + 58.7% + 0.4% 100% 9.7 years2 Other (French Resi.) 10.4 n.a. n.a. n.a. n.a. Total 415.2 + 5.4% + 0.2% 96.0%1 7.2 years2

Change in rental income at like-for-like scope

1 Including Steel ; 2 post AccorHotels agreement

FONCIÈRE DES RÉGIONS

9 MONTHS 2015 INVESTMENTS: €1.9 BILLION COMMITTED

13 9M 2015

OPERATING PERFORMANCE

Record investment activity with attractive risk-return profile

€m; 9 months 2015 Investments including duties (100%) Investments (Group Share) Yield (Group Share) Offices – France 231 231 7.0% Offices - Italy 81 39 6.2% Offices 312 270 6.8% Residential Germany 867* 543* 5.0%* Hotels/Service Sector 763 532 6.3% Total 1,942 1,345 5.9%

Capex on the development pipeline Yield on cost on offices post redevelopment

A dynamic investment activity financed by disposals and the €255 million capital increase in early 2015

* Pending successful completion of the offer Berlin IV (€348 million and €221 million GS)

FONCIÈRE DES RÉGIONS

9 MONTHS 2015 INVESTMENTS: QUALITY AND GROWTH

14 9M 2015

OPERATING PERFORMANCE

German Residential: buoyant acquisitions activity in good conditions

> €867 million (€543million GS) of acquisitions YTD vs €500 million objective for 2015 > Focus in dynamic cities (96% in Berlin and Hamburg) with growth potential (35% average reversionary potential) > Transformation underway: 55% of the €3.3 billion portfolio is in Berlin, Hamburg, Dresden and Leipzig vs 24% in 2013

Hotels in Europe: strengthen our leadership position

> €763 million (€532 million GS) of investments YTD > Diversity in the investment modes to fit hotel operators needs: acquisitions, developments and conversions, management contracts > Transformation underway: diversification of operators (50% AccorHotels vs 62% in 2013); geographic diversification (30% outside France vs 20% in 2013) Residential, Berlin Motel One, Frankfurt

A dynamic and qualitative asset rotation

FONCIÈRE DES RÉGIONS

WELL ON TRACK ON THE DISPOSAL PROGRAM

15 9M 2015

OPERATING PERFORMANCE

(€m, 9 months 2015) Disposals and agreements (100%) Disposals and agreements (Group Share) Margin vs. Last appraisal values Yield France Offices 75 75 +19% 2.7% Italy Offices 252 122 +1.0% 6.6% Germany Residential 149 91 +9.8% 6.9% Hotels & Service Sector 309 133 +0.8% 6.1% Non-strategic 327 198 + 3.6% 2.7% Total asset disposals 1,113 620 +5.3% 4.8%

Take advantage of a buoyant investment market

Reduction of non-strategic activities Improvement of portfolio quality

Disposal of vacant assets with strong margin Including €126 million of Telecom Italia assets Mature assets in NRW Including €281 million of AccorHotels Including €200 million in French Residential

16

Key takeaways

Symbiosis– Milan

FONCIÈRE DES RÉGIONS

KEY TAKEAWAYS

17

KEY TAKEAWAYS

Successes of the development pipeline strategy

Hotel - Paris Residential - Berlin Office - Grand Paris Office - Milan

Strengthened cash-flow profile Improved portfolio quality Accelerated growth potential

9 M 2015

France Offices Italy Offices German Residential Hotel Real Estate

A new ambition in term of developments and qualitative asset rotation Dynamic investment activity with high organic growth prospect Portfolio focused on better performing assets and new investment capacities

FONCIÈRE DES RÉGIONS 18

FINANCIAL AGENDA

AGENDA

Full year 2015 results: 18 February 2016

9M 2015

19

Appendix

Eiffage Campus – Vélizy-Villacoublay (Grand Paris)

FONCIÈRE DES RÉGIONS

A LEADING OPERATOR IN ITS MARKETS

20

APPENDIX

An integrated operator with strong local teams

€10.8 billion portfolio Group share (€17.5 billion at 100%)

18% 19% 43% 13% 7% France Offices

> Sound fundamentals; market depth > Attractive yield; value-creating pipeline

Germany Residential

> Sound economy; buoyant market > Significant reversion potential; development potential through acquisitions

Non-strategic

> including France Residential (4%)

Hotel real estate

> Leadership position; impressive track record > Strong relationship with operators; high operating margin

Italy Offices

> Leadership position; prime assets > Record cash flow visibility

9M 2015

FONCIÈRE DES RÉGIONS

9 MONTHS 2015 REVENUES

21

(€ million) 100% Group Share 9M 2014 9M 2015 Change (%) 9M 2014 9M 2015 Change (%) Change (%) LFL % of rent Offices France 187.9 194.7 3.6% 178.5 180.1 0.9% 0.7% 43% Offices Italy 172.2 163.3

• 5.2%

87.6 79.2

• 9.6%
• 2.6%

19% Total Offices 360.0 358.0

• 0.6%

266.1 259.2

• 2.6%
• 0.4%

62% Hotels and Service sector 146.5 152.7 4.2% 37.8 60.1 58.7% 0.4% 14% Residential Germany 126.6 140.8 11.2% 76.6 85.5 11.7% 2.1% 21% Total Strategic activities 633.1 651.4 2.9% 380.5 404.8 6.4% 0.2% 97% Other 22.2 17.0

• 23.5%

13.6 10.4

• 23.4%

na 3% Total rents 655.4 668.4 2.0% 349.1 415.2 5.4% 0.2% 100% Total rent does not take into account rental income from Logistics (€13.4 million), reclassified in 2014 as Discontinued Operations

9M 2015

APPENDIX

FONCIÈRE DES RÉGIONS

ORGANISATION CHART

22

APPENDIX

Foncière des Régions France Offices Italy Offices

(Beni Stabili)

Germany Residential

(Immeo)

Management contracts

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

48.5% 61.0% 43.1% 40.8%

Consolidated subsidiaries Equity affiliates

A development by financial partners in order to further the real estate strategy

9M 2015

FONCIÈRE DES RÉGIONS

Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00 Contact Paul Arkwright Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58 paul.arkwright@fdr.fr