Asset Management is paying off Annual results 2015 18 February - - PowerPoint PPT Presentation

Asset Management is paying off

Annual results 2015 18 February 2016

CONTENTS

FONCIÈRE DES RÉGIONS 2

>1. STRATEGIC POSITIONING >2. REAL ESTATE ACTIVITY >3. FINANCIAL RESULTS >4. OUTLOOK >APPENDICES

3

• 1. Strategic

positioning

Green Corner - Greater Paris

FONCIÈRE DES RÉGIONS

A GROWING AND BETTER QUALITY PORTFOLIO

ANNUAL RESULTS 2015 4

STRATEGY

An integrated operator with highly skilled local teams

€11.0 billion portfolio Group share (€17.7 billion at 100%) +€1.2 billion Group share in 2015 (+13%)

17% 20% 45% 13% 5% France Offices

> Sound fundamentals; market depth

> Attractive yield; value-creating pipeline

German Residential

> Sound economy; buoyant market

> Significant reversion potential; development potential through acquisitions Non-strategic1

> including France Residential (3%)

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

+3 pts in 2015 +4 pts in 2015

• 4 pts in 2015

1 Post disposal of €100 million of Logistics assets in early 2016

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 5

STRATEGY

OUR POSITIONNING: QUALITY AND ASSET MANAGEMENT VALUE CREATION

Strong and secure profitability Total return of 7.6%1 per year since 2010

1 IPD Index methodology: rental and capital yield (change in value net of capex)

Secured cash-flows Value creation track-record

Development pipeline strategy Asset management expertise Partnership strategy Diversification

Residential – Berlin Office – Greater Paris

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 6

STRATEGY

2015: AN OUTSTANDING YEAR

A better portfolio A better debt profile

Qualitative asset rotation €2.1 billion investments (€1.4 billion Group Share) €1.4 billion disposals (€0.9 billion Group Share)

Increased exposure in German Residential and Hotels real estate Successful development pipeline 15 deliveries

Successful partnership agreements

Lower risk profile Higher potential

High occupancy rate 96% Long lease firm maturity 7-year

Improvement in the S&P rating: BBB vs BBB- Success of the capital increase (€255 million) Record level of debt financings and refinancings (€4.2 billion and €2.5 billion GS)

> Cost of debt: 2.8%; maturity: 5 years

Major lease agreements Source of new deals

7

• 2. Real Estate

activity

Eiffage Campus – Greater Paris

8

France Offices

Astrolabe - Marseille

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 9

FRANCE OFFICES

A SOLID SUSTAINABLE POSITIONING

Historically high occupancy rates

94.7% 94.3% 96.0% 95.7% 95.8% 96.8%

95.8%

2009 2015 2009 2015

4.8 5.7 5.7 5.3 5.7

5.4

5.4

Long-term leases (firm maturity in years)

2009 2020

Grade A buildings (% of green France Offices) > 2/3 100% 61%

50% 41% 24% 7%

2015

2014 2013 2012 2017

Quality cash-flows Quality assets Value creation drivers

1 Acquisitions and development pipeline since 2009

Asset management Development pipeline Partnership strategy

Long-term leases Value creation reserve

€1.2 billion

52% of our portfolio bought or developed since end-20091

+11 pts

Portfolio €5.7 billion (100%) €4.8 billion (GS)

Strategic locations

Paris (35%) Inner suburbs (41%) Major Regional Cities (12%) Non-core (11%)

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 10

FRANCE OFFICES

2015: ASSET MANAGEMENT OVERPERFORMANCE

Strengthen portfolio quality Create value through dynamic asset rotation

> Success of the development pipeline (92,990 m² let; €25 million in rents) > Renewals close to passing rents (96,077 m²; €20 million in rents; -1.7%) > Rents like-for-like: +0.8% > Values like-for-like: +7.2%

• Strong performance in Paris (+12%) and Inner suburbs (+8%)
• Success of the development pipeline and asset management: 40% of the like-for-like growth

> 9 projects delivered for 105,000 m² and €444 million cost (€309 million GS) > Opportunistic acquisitions in a very competitive market (€46 million GS) Offices in Levallois-Perret; land bank in Montrouge (Greater Paris) > Disposals: €120 million of non-core assets; 16% average margin Good letting activity in an improving market Asset rotation: quality and return Strong

• perating

performance

Portfolio €5.7 billion (100%) €4.8 billion (GS)

Eiffage Campus – Greater Paris

FONCIÈRE DES RÉGIONS 11

ACCELERATION OF THE DEVELOPMENT PIPELINE STRATEGY

FRANCE OFFICES

Astrolabe (Marseille) 14,446 m² 98% let (multi-tenants) Strategy: development of a new area in the center of Marseille

ANNUAL RESULTS 2015

Respiro (Nanterre – Greater Paris) 11,100 m² 100% let (Vinci) Strategy: turnkey development with a partner Green Corner (Saint-Denis – Greater Paris) 20,817 m² 86% let (HAS; Systra) Strategy: use of a land bank in a key business district of Greater Paris Eiffage Campus (Vélizy – Greater Paris) 23,242 m² 100% let (Eiffage) Strategy: turnkey development with a partner

Quality locations and buildings Low risk, high return

> 90% occupancy rate vs 71% in early 2015 ; 10 years average firm lease maturity > 7.1% average yield on cost1; 28% total average value creation

1 Headline gross yield

Portfolio €5.7 billion (100%) €4.8 billion (GS)

9 deliveries in 2015

FONCIÈRE DES RÉGIONS

Pont de Levallois

• Bécon

Acquisition of OMEGA B: value creation opportunity

> Strategic acquisition of the 3rd building (OMEGA B) of the office block already

• wned by Foncière des Régions (OMEGA A & C)

> Quality location in the center of Levallois-Perret (Greater Paris) > 4,698 m² of offices let at 67% for 2.9 years with Lagardère as main tenant (31%) > Cost: €25 million (5,300 €/m²) > Strategy:

• Short term: reduce vacancy rate
• Medium term: merge the 3 buildings to create an asset of 17,700 m²; use

rights to increase the size by c. 3,500 m² Yield potential of 6.4% Value creation potential

OMEGA A & C: secure cash-flows

> OMEGA A & C: 11,490 m² of offices in Levallois-Perret (Greater Paris) > Fully let to Lagardère: renewal of the lease for 6 years firm > Rents: -2%; value creation: +14%

12

EXAMPLE OF OUR ASSET MANAGEMENT EXPERTISE: OMEGA

ANNUAL RESULTS 2015

FRANCE OFFICES

Potential of 20,000 m² of new offices in a strategic location

FONCIÈRE DES RÉGIONS

Paris-Littré

> 3,560 m² of offices in Paris 6th > 1st step: refurbishment > 2nd step: departure of Orange and re- letting to Kering (9-year firm; no vacancy period) > Rents: +33%; value creation >30%

In line with our strategy

> Partnership strategy > Real estate quality > Secured cash-flows > Value creation

13

EXTRACT THE VALUE OF THE ORANGE PORTFOLIO

ANNUAL RESULTS 2015

FRANCE OFFICES

More to come: 60% of the Orange portfolio is located in Paris (€0.8 billion GS)

Paris Littré Paris 6th district Steel Paris 16th district

   

Paris-Steel

> 3,690 m² of offices in Paris 16th > 2012-2015: departure of Orange and full restructuring >

• Sept. 2015: 100% let to Groupe OnePoint

(9-year firm) > Yield on cost: 6%; value creation >30%

In line with our strategy

> Real estate quality > Secured cash-flows > Value creation

  

Rennes Sèvres-Babylone Trocadéro Boissière

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 14

FRANCE OFFICES

AMBITIONS 2016: CONTINUE THE DEVELOPMENT PIPELINE DYNAMIC

Record level of deliveries expected in 2017 €700 million GS

> Projects controlled by Foncière des Régions > Mix of new constructions and redevelopments > Launch of the construction work after pre-let (for significant projects) or building permit

Managed pipeline Committed pipeline

Riverside – Toulouse

Portfolio €5.7 billion (100%) €4.8 billion (GS)

9 Deliveries €309 million O’rigin Nancy New development €20 million EDO Issy-les-Moulineaux (Greater Paris) Redevelopment- extension €83 million

End 2014 (Group share)

Traversière Paris Redevelopment €122 million Euromed Center (Hermione & Floréal) Marseille New developments €32 million

€506 million €526 million

End 2015 (Group share)

Riverside Toulouse New development €32 million

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 15

FRANCE OFFICES

RENEWAL OF THE PIPELINE: TRAVERSIÈRE

Acquisition in 2009

> 13,500 m² office building built in 1930; yield of 7.3% > Strategic location in Paris:

• 200 m from Gare de Lyon, well connected
• Lack of new buildings in the area: < 4% vacancy rate, below Paris average

Strategy: refurbishment

> Departure of SNCF in December 2015 => opportunity to create a new building fitted to the evolution of the demand > €122 million cost including €28 million of capex; c. 5.5% target yield on cost > Delivery in Q4 2017

Traversière

Gare d’Austerlitz Gare de Lyon Quai de la Rapée

BEFORE AFTER

FONCIÈRE DES RÉGIONS

RENEWAL OF THE PIPELINE: EDO

16

Acquisition

> 7,500 m² office building; 7.9% yield > Short-term lease (3 years) to Groupe Yves Rocher > Strategic location in Greater Paris

Delivery Redevelopment - extension

> Surface: 10,800 m² (+3,300 m² in additional surfaces) > Cost (including land value): €83 million > Target yield on cost: 6% > Green certification HQE Excellent BREEAM Very good Construction work February 2015 Q4 2017 July 2011

ANNUAL RESULTS 2015

FRANCE OFFICES

Departure of the tenant

AFTER BEFORE

Issy-Val de Seine Maire d’Issy Paris Issy-les- Moulineaux Boulogne- Billancourt

EDO

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 17

FRANCE OFFICES

AMBITIONS 2016: RELY ON OUR POSITIONING TO MAKE THE DIFFERENCE

Long term cash-flows Value creation Still buoyant investment market Improving letting market

Positive economic conditions Pursue the rotation dynamic Pursue the asset management work

Strong development pipeline: €200 million in capex for 2016 Generate new developments with our partners Increase quality: €200 million in disposals of non-core assets Lease expirations: no major issues

> 2016 expirations (1st break): 11% of the rents

Generate new opportunities with our partners

Percier –Paris Thaïs –Greater Paris

Portfolio €5.7 billion (100%) €4.8 billion (GS)

18

Italy Offices

Symbiosis - Milan

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 19

ITALY OFFICES

A LEADING OPERATOR IN ITALY WITH A RENEWED AMBITION

Portfolio €3.9 billion (100%) €1.9 billion (GS)

A key operator to take advantage of the current cyclical improvement A leader in its market

Torre Garibaldi, Milan Telecom Italia office, Milan Secured cash-flows

• 6.4% yield
• 15-year leases

Quality locations

• 5.1% yield
• 5.3-year leases

Sound fundamentals

Office portfolio (non TI) €2.3 billion (59%) 73% in Milan Telecom Italia portfolio €1.6 billion (41%)

In value

A €3.9 billion portfolio (€1.9 billion GS) owned through Beni Stabili

> Subsidiary at 48.5% of Foncière des Régions

Secured cash-flows and quality portfolio

FONCIÈRE DES RÉGIONS

> Secured rental base: 92.8% occupancy rate; 9.7-year average firm lease maturity > Rents like-for-like: -4.1% impacted by the Telecom Italia deal (-2.5%) and vacancy > Stable values like-for-like: -0.4%

• Telecom Italia portfolio: +0.4%
• Office portfolio (non TI): -0.9%

ANNUAL RESULTS 2015 20

ITALY OFFICES

2015: A TRANSITION PHASE

Secure cash-flow base Potential for improvement

Success

• f the

Telecom Italia renegotiation Operating performances > Extension of the leases: +9 years to 15 years firm; 6.9% reduction in rent > Quality improvement: disposal of 2 non-core assets for €126 million; €38 million capex program > Redevelopment potential: 5 buildings in central Milan and Rome with possible vacancy by Telecom Italia

Portfolio €3.9 billion (100%) €1.9 billion (GS)

Symbiosis, Milan Office, Milan

Positive change in appraisals: +€104 million

Core, Milan, long leases …

Negative change in appraisals: -€123 million

Dynamic, vacant …

FONCIÈRE DES RÉGIONS 21

2015: LAUNCH OF A NEW INVESTMENT PHASE

Better asset quality Value creation Acquisition in prime locations and with value creation potential

> Acquisition of 2 office buildings totalling 22,445 m² in Milan CBD > €105.6 million (€51 million GS) investments (4,700€/m²) including capex (€25 million) > Yield on cost of 6.2% on average

ANNUAL RESULTS 2015

ITALY OFFICES

Via Principe Amedeo

Acquisition in 2016 (€42 million) Immediate redevelopment into offices:

• €11 million capex
• delivery in 2018

Corso Italia

Acquisition at end-2015 (€38 million) 50% let to ASL (public healthcare agency) Redevelopment within 2/3 years:

• Mix residential (to be sold) - offices
• €14 million capex

Portfolio €3.9 billion (100%) €1.9 billion (GS)

Launch of the first phase of Symbiosis

> New office district on the limit of central Milan > Next generation of buildings; competitive rent > Potential for 125,000 m² of offices (€250 million capex - €121 m GS) > Work launched on a first building; interest from end-users

Duomo Bocconi University Prada Foundation

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 22

ITALY OFFICES

AMBITIONS 2016: A CLEAR ROADMAP FOR A NEW PHASE

Reduce the vacancy rate

Vacant assets: 14% of the Office portfolio (non TI)

> Quality locations: 2/3 in Milan

Galvanize the vacant portfolio management

> €60 million (€29 million GS) capex on vacant assets => €16 million expected extra cash flows (€8 million GS)

Portfolio €3.9 billion (100%) €1.9 billion (GS)

San Nicolao, Milan Torre Garibaldi, Milan

Reduce Telecom Italia exposure

Objective 2020 of 20% of Italy offices portfolio vs 41% Extract the redevelopment potential

> 5 buildings; 37,300 m² of offices

Focus on offices in Milan: objective 2020 of 80% of the portfolio Value creation potential using our asset management expertise Green offices: objective 2020 of 50% vs 22%

Accelerate quality improvement

Increase quality; reduce risk Improve profitability

23

German Residential

Residential - Berlin

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 24

GERMAN RESIDENTIAL

2015: INCREASED EXPOSURE AND GROWTH PROSPECT

€871 million (€529 million GS) vs €500 million initial target

> Prime assets in city centers > Average yield: 5.0% > 32% reversionary potential

Disposal of €187 million (€114 million GS) in non-core assets in NRW1

> Average margin: 12%; Average yield: 6.6%

Rents like-for-like: +2.4% including +4.4% in Berlin Value like-for-like: +5.0% including +12.2% in Berlin

Portfolio €3.6 billion (100%) €2.2 billion (GS)

Better quality Better growth prospect

1 North Rhine-Westphalia

Record level of acquisitions Another year of strong

• rganic

growth Berlin 40% (vs 28%) NRW1 46% (vs 64%) A growing and better quality portfolio +31% vs end-2014 53% in dynamic cities vs 36% end-2014 Hamburg 6% (vs 0%) Dresden & Leipzig 8% (vs 8%)

€3.6 billion €2.2 billion GS (vs end-2014)

FONCIÈRE DES RÉGIONS

2,0% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0% Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2007 2010 2013 2014 2015

ANNUAL RESULTS 2015 25

GERMAN RESIDENTIAL

2015: DRIVE PERFORMANCE THROUGH ACTIVE PROPERTY MANAGEMENT

Reversionary potential drives the strong rental growth in the dynamic cities (like-for-like growth in €/m²) Successes of a strong local team

Berlin Hamburg

Berlin: +4.4%

2015 Re-lettings: +27%

Dresden & Leipzig: +3.2%

2015 Re-lettings: +16%

NRW: +1.6%

2015 Re-lettings: +5.5%

Dynamic property management to reduce the vacancy rate and extract the potential of the acquisitions

Impact of the acquisitions

FONCIÈRE DES RÉGIONS 26

ACQUISITIONS 2015: OUTSTANDING YEAR WITH €871 MILLION INVESTED

GERMAN RESIDENTIAL

Berlin Tempelhof & Neukölln €60 million (€39 million GS) Yield: 4.8%; Price/m²: €1,720 Reversionary potential: +29% Privatisation margin: +28%

ANNUAL RESULTS 2015

Dresden and Leipzig €37 million (€22 million GS) Yield: 7.8%; Price/m²: €860 Reversionary potential: +15-20% Berlin IV takeover bid €353 million (€207 million GS) Yield: 4.6%; Price/m²: €1,790 Reversionary potential: +43% Privatisation margin: +50% Berlin Prime €182 million (€105 million GS) Yield: 5.0%; Price/m²: €2,120 Reversionary potential: +26% Privatisation margin: +36% Hamburg €239 million (€155 million GS) Yield: 5.6%; Price/m²: €1,860 Reversionary potential: +29% Privatisation margin: +38%

FONCIÈRE DES RÉGIONS 27

ACQUISITIONS: SUCCESSFUL ASSET MANAGEMENT TRACK RECORD

GERMAN RESIDENTIAL

ANNUAL RESULTS 2015

Berlin €75 million; yield: 6.5% Rent/m²/month: 5.8€ Berlin €138 million; yield: 6.7% Rent/m²/month: 6.1€ Rents: +4%/year Value: +9%/year

Growth since acquisition

Rents: +3%/year Value: +6%/year Rents: +3%/year Value: +7%/year Berlin, Dresden €343 million; yield: 6.5% Rent/m²/month: 6.0€ Berlin, Dresden & Leipzig €358 million; yield: 6.0% Rent/m²/month: 6.2€ Rents: +6%/year Value: +6%/year

Still room for growth Rent reversion potential: Berlin (+30%); Dresden & Leipzig (+15%); Hamburg (+30%)

Berlin, Dresden & Leipzig, Hamburg €871 million, yield: 5.0% Rent/m²/month: 7.4€ Rent reversion potential +32% 2011 2012 2013 2014 2015

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 28

GERMAN RESIDENTIAL

AMBITIONS 2016: QUALITY ROTATION AND ORGANIC GROWTH

Continuous reduction of exposure to non-core assets in NRW (15% of the portfolio) First privatisations in Berlin Continue to benefit from strong market fundamentals and highly skilled local teams Prime city center assets Combine rental growth with medium-term potential for privatisations Rely on the ability of the local team to source off-market transactions Enhance the potential of 2015 acquisitions Objective of +2.75% like-for-like growth in rent

Berlin Berlin

Pursue acquisitions in dynamic cities Quality rotation Organic growth

Portfolio €3.6 billion (100%) €2.2 billion (GS)

29

Hotel real estate in Europe

Sofitel - Lyon

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 30

2015: INCREASED EXPOSURE AND NEW DEVELOPMENT PHASE

Portfolio €3.5 billion (100%) €1.4 billion (GS)

Acquisition of 14.7% of the share capital of the subsidiary FDM (to 43.1%)

> Equivalent of €432 million in assets

€346 million (€111 million GS) in investments; 72% in Germany New hotel operators partnerships Management contracts

> Already €120 million in investments (€21 million GS)

Increased exposure New development

• pportunities

Operating performances

(like-for-like)

Rents -0.6%: resistance despite terrorist attacks

> Including -1.6% on Accor variable rents

Value +3.1%: strong growth in Hotels

> Asset management: +6.2% for AccorHotels post lease extensions > Success of the development pipeline: +11% value creation

Motel One, Germany Accor, Boulogne - Paris

HOTELS IN EUROPE

13% of Foncière des Régions portfolio vs 9% at end-2014

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 31

ACCORHOTELS DEAL: ASSET MANAGEMENT EXPERTISE

> AccorHotels portfolio: 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 operator and geographic diversifications

Better growth potential Better portfolio quality Targeted locations Best performing hotels New development capacities > 12 years firm > At passing rents > At appraisal value > Average yield: 6.3% Hotels: €1.5 bn (100%) 124 Hotels (€1.1 bn): lease renewals 78 Hotels (€0.4 bn): disposals in 2016 46

 i  i  i

> Weaker hotel performance > Includes all the hotels in small regional cities

Portfolio €3.5 billion (100%) €1.4 billion (GS) HOTELS IN EUROPE

FONCIÈRE DES RÉGIONS

2015: BEING ABLE TO DELIVER ON EACH INVESTMENT MODE

32

STRATEGY STRATEGY HOTELS IN EUROPE

ANNUAL RESULTS 2015

Natural ally of operators: Long-term cash-flows Asset management value creation Pipeline of new deals

22 B&B hotels in Germany €128 million (€51 million GS) Yield: 6.4%; 18 years firm 2 Motel One hotels €36 million (€15 million GS) Berlin-Mitte; Frankfurt-Airport Yield: 6.1%; 20 years firm Conversion into a Meininger hotel €30 million (€13 million GS) Munich – Olympic Park 12,400 m² of offices converted in 2018 Yield: 6.8%; 20 years firm Development for Accor €55 million (€10 million GS) Paris Airport – Charles-de-Gaulle Ebitda yield: 8%-10% Conversion into Louvre Hotels brand €49 million (€8 million GS) Germany Conversion of Motel One existing hotels Ebitda yield: 8%-10% 6 deliveries in Germany & France €31 million (€13 million GS) => 11% value creation 6 new developments in Germany & France €43 million (€19 million GS) Yield >7%; 12 to 20 years firm

Acquisition Development pipeline Management contract

Acquisition of one Park Inn hotel €16 million (€3 million GS) Louvain, Belgium Ebitda yield: 8%

Portfolio €3.5 billion (100%) €1.4 billion (GS)

€178 m (€69 m GS) 2015 deliveries €31 m1 (€13 m GS) €120 m (€21 m GS)

1 Deliveries 2015 cost including land

4 B&B hotels in France €14 million (€3 million GS) Yield: 7.1%; 12 years firm

FONCIÈRE DES RÉGIONS

AMBITIONS 2016: ONE NEW PARTNERSHIP = NUMEROUS OPPORTUNITIES

33

STRATEGY STRATEGY HOTELS IN EUROPE

ANNUAL RESULTS 2015

Objective 2016: €400 million in investments with existing and new partners

Acquisition of 2 Motel One hotels Berlin & Frankfurt - Germany

€36 million (€15 million GS)

Development of the 1st Motel One Hotel in Paris (Porte Dorée)

€35 million (€8 million GS) Delivery in 2018; yield 6.2%; 12-year firm

Conversion of an office into a Meininger hotel Munich - Germany

€30 million (€13 million GS)

Developments projects with Meininger under discussion in France and Europe Partnership agreement with Meininger

Objective of €400 million in investments before 2018

Acquisition of 5 NH Hotels in Germany1

€125 million (€54 million GS) Yield 6.1%; 20-year firm

Acquisition of one NH hotel in Amsterdam

€48 million (€21 million GS)

Portfolio €3.5 billion (100%) €1.4 billion (GS)

2014 2015 2016

Meininger, Paris

1 To be completed in 2017 and 2018

34

• 3. Financial

results

DS Campus –Greater Paris

FONCIÈRE DES RÉGIONS

2015 INVESTMENTS: RECORD LEVEL UNDER GOOD CONDITIONS

35

46% of investments Group Share in Germany

€m; 2015 Investments including duties

(100%)

Investments

(Group Share)

Acquisitions

(Group Share)

Capex

(Group Share)

Gross potential yield

(Group Share)

Offices - France 330 252 46 206 6.7%1 Offices - Italy 962 472 39 7 6.2% post redevelopments Offices 426 298 85 213 6.7% German Residential 871 529 529 5.0% Hotels/Service Sector 778 543 522 21 6.2%3 Others 12 7 7 n.a. Total 2,087 1,377 1,136 241 5.8%

FINANCIAL RESULTS

ANNUAL RESULTS 2015

1 Yield excluding the land bank acquisition in Montrouge; 2 Including the €81 million in acquisitions to be completed in 2016; 3 Excluding Ebitda yield on management contract acquisitions (of 9%)

Development pipeline strategy New acquisitions in Milan CBD German Residential Acquisitions at 69% in Berlin France Offices Italy Offices Hotels/ Service Sector Investments with historic and new

• perators

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 36

2015 DISPOSALS: QUALITY IMPROVEMENT

5% of non-strategic activities vs 9% at end-2014

€m, 2015 Disposals and agreements 100% Disposals and agreements GS Margin vs. Values 2014 Gross Yield Effective disposals GS Gross Yield France Offices 120 120 15.7% 3.6% 93 6.5% Italy Offices 261 126 0.9% 6.7% 99 6.5% German Residential 187 114 12.1% 6.6% 112 7.2% Hotels/Service Sector 417 180 0.2% 6.2% 24 6.5% Non-strategic 444 309 1.1% 4.8% 240 3.7% Total asset disposals 1,428 849 4.4% 5.4% 568 5.6%

Group share data

FINANCIAL RESULTS

Non core

• ffices

France Offices €126 million

• f Telecom

Italia assets Italy Offices NRW non- core assets German Residential €409 million of AccorHotels assets Hotels/ Service Sector €215 million in French Residential Non strategic

FONCIÈRE DES RÉGIONS 37

INCREASE IN VALUE AT LIKE-FOR-LIKE SCOPE: +4.4%

FINANCIAL RESULTS

€m Values 2015 Total share Values 2015 Group share Change (%) LFL 12 months Yield 2014 Group share Yield 2015 Group share France Offices 5,658 4,840 +7.2% 6.6% 6.0% Italy Offices 3,905 1,893

• 0.4%

6.1% 5.7% Offices 9,563 6,734 +5.0% 6.4% 5.9% German Residential 3,603 2,175 +5.0% 6.5% 6.0% Hotels/Service Sector 3,515 1,385 +3.1% 6.1% 5.9% Other 1,0061 6951 n.a. n.a. n.a. Total 17,688 10,988 +4.4% 6.3% 5.8%

Group share data

1 Before disposal of €100 million of Logistics assets in early 2016

ANNUAL RESULTS 2015

• Dev. pipeline &

asset management value creation France Offices Negative impact from vacant assets Italy Offices +12% in Berlin German Residential +4.8% in Hotels Hotels/ Service Sector

FONCIÈRE DES RÉGIONS 38

PORTFOLIO YIELD EVOLUTION: VALUE CREATION AND QUALITY IMPROVEMENT

FINANCIAL RESULTS

Group share data ANNUAL RESULTS 2015

Yield 2014 Yield 2015

Quality rotation Like-for-like Portfolio allocation

• 10bps
• 5 bps
• 20 bps

5.8% 6.3% Increase in

German Residential Invest in better quality buildings & locations Market yield compression & Asset Management value creation Dispose non- core assets Exit from Non-strategic activities

FONCIÈRE DES RÉGIONS 39

2015: RESHAPE LIABILITIES

FINANCIAL RESULTS

Continue reducing cost of debt and extending maturity

Group share data

40% 15% 39% 6% Investor mortgages

Bonds Corporate credits Bank mortgage loans

Strong diversification in financing

55% unsecured debt

> Improvement in average debt maturity: 5.0 years vs 4.1 years > Improvement in cost of debt: -50 bps at 2.8% > ICR: 3.0 vs. 2.8 end of 2014 > LTV 45.4% vs 46.1% end of 2014 > €4.2 billion (€2.5 billion GS) in financings and refinancings > Average maturity of financing: 8 years > Maintenance of a diversified financing policy in a volatile financial market > BBB, stable outlook vs BBB-, stable outlook > Improved business profile => better positioned portfolio; stronger cash flows > Improved financial profile => strengthening of solidity of the balance sheet

Better S&P rating Record year in financings and refinancings Improved debt profile

ANNUAL RESULTS 2015

Debt maturities under control

2016 2017 2018

0.7 0.3 0.8 1.1

2019

0.7

2020

1.2

2025 and later

0.4 0.4

2021

Average maturity 5.0 years

Group Share - € billion

2022

1.0

2023 2024

0.1

FONCIÈRE DES RÉGIONS 40

EPRA NAV PER SHARE INCREASED BY 6.6%

FINANCIAL RESULTS

EPRA NAV supported by recurring net income and increase in values

> EPRA NAV: €5,318 million (+12% vs 2014) and €79.4 per share (+6.6%) > EPRA NNNAV: €4,609 million (+11%) and €68.8€ per share (+5.9%)

Successful capital increase in early 2015

> €255 million earmarked for 2015 investments; 3,917,722 new shares (6.2% of capital) > Followed-up by the primary shareholders of Foncière des Régions

Group share data

1 Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)

ANNUAL RESULTS 2015

• €27 million

Comit fund litigation provision

• €69million

Hedge restructuring and Beni Stabili bond repurchase Number of shares used to calculate NAV/share: 66,947,020 for 2015 vs. 62,941,712 for 2014

€5,318 m €79.4/share €4,754 m €74.5/share1

+€333 million RNI +€252 million Capital increase

• €269

million Dividend +€27 million Other

EPRA NAV End 2015 EPRA NAV End 2014

+€348 million Property values increase

• €31 million

Real estate transfer cost increase in 2016

FONCIÈRE DES RÉGIONS

Occupancy rate Residual firm lease terms Rental income 1 (€m) Change Change at like- for-like scope France Offices 95.8% 5.4 years 238.0

• 0.1%

0.8% Italy Offices 92.8% 9.7 years 102.1

• 11.1%
• 4.1%

Offices 94.9% 6.6 years 340.1

• 3.7%
• 0.9%

German Residential 98.0% n.a. 115.9 +12.2% 2.4% Hotels/ Service Sector 100% 10.7 years 80.0 +57.0%

• 0.6%

Other n.a. n.a. 13.3

• 24.5%

n.a. Total 96.3% 7.3 years 549.4 +4.6%

• 0.1%

1 Excluding Logistics (€15.9 million), classified as discontinued operations

41

RENTAL INCOME: +4.6%

FINANCIAL RESULTS

Good performance in a no inflation environment Telecom Italia agreement +4.4% in Berlin; +3.2% in Dresden & Leipzig Terrorist attacks impact softened by

• ur geographic diversification

Indexation: +0.3% Occupancy rate: -0.2% Renewals: -0.2%

Change at like-for-like scope

Group share data ANNUAL RESULTS 2015

Others Gross annualised rents End-2014 Gross annualised rents End-2015 Acquisitions (including reinforcement in FDM) Deliveries Like-for-like annualised Disposals End of lease for redevelopments €56.1 m €16.7 m

• €2.4 m
• €31 m
• €11.2 m

€594 m €570 m

• €4.5 m

FONCIÈRE DES RÉGIONS 42

RECURRING NET INCOME: GOOD PERFORMANCE

FINANCIAL RESULTS

€m, Group Share 2014 2015 % Rental income 525.0 549.4 +4.6%

• /w net rental income

480.9 505.3 +5.1% Net operating costs

• 53.2
• 55.5

+4.3% Income from other activities 21.2 18.9

• 10.8%

Current operating income 448.9 468.7 +4.4% Net cost of financial debt

• 166.4
• 155.3
• 6.7%

Recurring net income of MEE companies 14.2 11.2

• 21.1%

Income from non consolidated affiliates 0.9 0.2 n.a. Pre-tax net income 297.6 324.7 +9.1% Recurrent tax

• 2.7
• 1.9

n.a. Recurring net income of discontinued operations 19.5 10.0

• 49.5%

Recurring Net Income 314.5 332.8 +5.8% Fair value adjustment on real estate assets 110.6 347.6 Changes in the fair value of financial instruments

• 183.2
• 105.3

Margin on disposals

• 0.3

0.2 Other

• 82.8
• 48.8

Non-recurrent tax

• 44.2
• 22.1

Profit/loss on discontinued operations 3.9

• 22.9

Net income 118.5 481.5

ANNUAL RESULTS 2015

Reinforcement in German Residential and in Hotels Less property development fees Lower cost of debt Change of scope in Dassault Systèmes Campus Exit from Logistics

FONCIÈRE DES RÉGIONS 43

RECURRING NET INCOME PER SHARE INCREASED +2.2%

Impact of quality improvement Impact of disposals Dilution impact from capital increase in 2015 Strengthening position in Hotels Strengthening in German Residential Lower average cost of debt

Group Share 20141 2015 Change vs. 20141

RNI (in €m) 314.5 332.8 +5.8% RNI/share (€) 4.96 5.07 +2.2%

Average number of fully diluted shares 62,538,274 65,670,922

Group share data

1 Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)

FINANCIAL RESULTS

ANNUAL RESULTS 2015

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 44

2015 DIVIDEND OF €4.30 PER SHARE

FINANCIAL RESULTS

1 Proposed by the 27 April 2016 Shareholders’ Meeting; 2 Based on a stock-market price of €72.47 as of February 16th 2016

Dividend yield 5.9%2

€4.301 per share

(vs €4.30 for 2014)

Secured level

Payout ratio 85%

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 45

A NEW REINFORCEMENT IN HOTEL REAL ESTATE

> Acquisition of 3.3% of FDM shares to ACM paid in new Foncière des Régions shares1 > Share exchange ratio: 1 FdR for 3 FDM - EPRA NAV parity > Creation of 0,82 million new Foncière des Régions shares (1.2% of the share capital) Reinforcement in FDM

Long term objective of around 20%

• f Foncière des Régions portfolio in Hotel real estate

Launch of a mandatory public exchange

• ffer on FDM2

Hotel, Berlin ACM Foncière des Régions Free float Generali BNP Paribas Cardif Groupe Crédit Agricole

43.1% 9.1% 10.0% 10.3% 10.2% 17.2%

FDM shareholding End 2015

> At the same conditions > FdR will own at least 46.5% of FDM => +€106 million of assets; +€65 million of equity

1 Term sheet signed in February 17th 2016; should be approved by the 27 April 2016 Shareholders’ Meeting; 2 Upon completion of the offer, Foncière des Régions does not

intend to launch a mandatory squeeze out. An independent expert will be appointed by FDM to give his fairness opinion on the conditions of the offer.

46

• 4. Outlook

EDO – Greater Paris

FONCIÈRE DES RÉGIONS

Ability to generate new investment

• pportunities

OUTLOOK: STRONGER ADJUSTED RISK-RETURN PROFILE

47

OUTLOOK

ANNUAL RESULTS 2015

Better cash-flows quality Increased growth and value creation potential Short term: NAV accretive Earning slightly dilutive

Residential – Berlin Steel – Paris

Objective of a stable 2016 Recurring Net Income per share

Better asset quality Reinforcement in best asset classes

FONCIÈRE DES RÉGIONS 48

FINANCIAL AGENDA

AGENDA

Q1 2016: 4 May 2016 Capital Markets Day in Paris: 14 June 2016

ANNUAL RESULTS 2015

49

Appendices

Eiffage Campus – Greater Paris

FONCIÈRE DES RÉGIONS 50

A STRATEGY STRENGTHENED BY THE SOUNDNESS OF INDICATORS

Group share data APPENDICES

Growth in value

Change in LFL vs. N-1

Rent: at like-for-like scope

Change in LFL vs. N-1

CB 21, La Défense

Firm lease expirations as % of annualised rental income Commercial portfolio (76% of total rents GS)

Record firm term of leases 2009 5.8 6.1 6.0 2010 2011 2012 5.5 2013 5.8 2014

7.3

2015 5.8 Historically high occupancy rates 2009 95.4% 94.8% 95.8% 2010 2011 2012 95.5% 2013 96.0% 2014

96.3%

2015 97.1% +3.3% 2010 +0.6% 2011 2012 +2.1% +1.2% 2013 2009 +2.2%

• 0.1%

2014 2015 +0.2% 2009 +5.3% +1.3% 2010 2011 2012

• 0.3% +0.5%

2013

• 3.6%

2014

+4.4%

2015 +2.1%

ANNUAL RESULTS 2015

FONCIÈRE DES RÉGIONS 51

COMMITTED PIPELINE: 24 PROJECTS FOR €615 MILLION Group share (+16%)

1100% usable area excl. car park 2Group share incl. land and financial cost

Group share data APPENDICES

ANNUAL RESULTS 2015

Locat ion A rea Project Surface** (m ²) Deliv ery Target

• ffices rent

(€/m ²/y ear) Pre-let (%) Total Budget * (€m ) Progress Yield Bose St Germ ain-en-Lay e Greater Paris Constru ction 5 1 00 2 01 6 2 2 5 1 00% 2 0 9 5 % > 7 % Schlu m berger Pom pignane Montpellier Major Regional Cities Constru ction 3 1 5 0 2 01 6 1 5 5 1 00% 8 85 % > 7 % Eu rom ed Center - Caly pso (QP FdR : 5 0%) Marseille Major Regional Cities Constru ction 9 6 00 2 01 6 2 6 5 3 0% 1 5 85 % > 7 % Cliniqu e INICEA Saint-Mandé Greater Paris Constru ction 5 5 00 2 01 6 N/A 1 00% 2 5 7 0% 6 % DS Cam pu s Extension 1 (QP FdR : 5 0%) V élizy Greater Paris Constru ction 1 3 1 00 2 01 6 3 05 1 00% 3 9 5 5 % 6 % 2016 subt otal 36 450 90% 107 73% Eu rom ed Center - Herm ione (QP FdR 5 0%) Marseille Major Regional Cities Constru ction 1 0 4 00 2 01 7 2 6 5 0% 1 4 5 5 % > 7 % Eu rom ed Center - Floreal (QP FdR 5 0%) Marseille Major Regional Cities Constru ction 1 3 4 5 0 2 01 7 2 6 5 0% 1 8 4 5 % > 7 % Silex I Ly on Major Regional Cities Constru ction 1 0 6 00 2 01 7 2 80 0% 4 7 4 0% 6 % Thaïs Lev allois Greater Paris Constru ction 5 5 00 2 01 7 4 80 0% 4 0 3 0% 6 % O'rigin Nancy Major Regional Cities Constru ction 6 3 00 2 01 7 1 9 5 7 7 % 2 0 3 0% 6 % Edo Issy -les-Mou lineau x Greater Paris Restru ctu ration-Extension 1 0 800 2 01 7 4 5 0 0% 83 1 5 % 6 % Trav ersière Paris Paris Restru ctu ration-Extension 1 3 5 00 2 01 7 ND 5 % 1 2 2 5 % 5 % Riv erside Tou lou se MR Constru ction 1 0 9 00 2 01 8 1 9 0 0% 3 2 0% > 7 % 2017 subt otal 81 450 6% 377 19% Total Offices France 117 900 24% 484 31% 7% Sy m biosis Milan Italy Constru ction 1 2 000 2 01 8 n.a. 0% 2 9 0% > 7 % Ferru cci Tu rin Italy Restru ctu ration-Extension 4 9 2 9 4 2 02 0 n.a. 0% 4 0 6 % n.a. Total Offices It aly 61 294 0% 69 3% n.a. B&B France (1 ) & Germ any (5 ) France & Germ any France & Germ any Constru ction na 2 01 6 na 1 00% 1 8 5 9 % >7 % Eu rom ed Center - Hôtel (QP FdR : 5 0%) Marseille Marseille Constru ction na 2 01 6 na 1 00% 2 3 9 0% >7 % Motel One Paris - Porte Dorée Paris Greater Paris Constru ction na 2 01 7 na 1 00% 8 3 5 % 6 % Meininger Mu nich Mu nich Germ any Conv ersion na 2 01 8 na 1 00% 1 3 0% 6 % Total Hotels 100% 62 55% 7%

179 194 29% 615 30% >6% Offices France France Offices Hotels Total Offices+Hotels

Project s

Hotel Real Estate Offices Italy

FONCIÈRE DES RÉGIONS

ORANGE PORTFOLIO IN PARIS REGION: QUALITY; VALUE CREATION POTENTIAL

52

15 assets including 9 of the 10 primary Orange buildings; €863 million in value; 60% of the Orange portfolio Carnot

Maillot Montmartre Philippe Auguste Bobillot Gobelins Raspail Keller Voltaire Menilmontant Villette Anjou Provence Laborde Guttemberg

APPENDICES

ANNUAL RESULTS 2015

FONCIÈRE DES RÉGIONS

ORGANISATION CHART

53

APPENDICES

Foncière des Régions France Offices Italy Offices

(Beni Stabili)

German Residential

(Immeo)

Management contracts

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

48.5% 61.0% 43.1% 40.8%

Consolidated subsidiaries Equity affiliates

ANNUAL RESULTS 2015

French Residential

(FDL)

61.3%

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