Enhanced strategic positioning 2014 Results 20 February 2015 - - PowerPoint PPT Presentation

Enhanced strategic positioning

2014 Results 20 February 2015

CONTENTS

FONCIÈRE DES RÉGIONS

>1. A SOLID, SUSTAINABLE POSITIONING >2. A MAJOR HOTEL TRANSACTION >3. REAL-ESTATE ACTIVITY >4. FINANCIAL INFORMATION >5. OUTLOOK > APPENDIX

2

3

• 1. A solid,

sustainable positioning

FONCIÈRE DES RÉGIONS

STRENGTHENED POSITIONING

A €9.8 billion GS of portfolio (€16.4 billion at 100%) on buoyant markets 1 focus and 2 diversifications

2014 ANNUAL RESULTS 4

Offices

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

Residential Germany

> Sound economy; buoyant market > Organic growth and development potential

Non-strategic

> of which Residential, France (5%)

Recognised, responsive local plateforms

STRATEGY

€9.8 billion GS

Hotels/Service sector

> Leadership position; impressive track record > Attractive market; partnership logic

STRATEGY

FONCIÈRE DES RÉGIONS

STRONG QUALITY-ENHANCING PORTFOLIO ROTATION

€400 million of acquisitions in Offices, German Residential and Hotels

> Core locations (Ile de France, Berlin, Amsterdam, etc.); 6.2% average yield

€230 million of deliveries in 2014 and €320 million scheduled for 2015

> €215 million of capex in 2014 > 7 deliveries in 2014, fully-let; 2015 deliveries 71% pre-let > Pipeline average yield > 7%; value creation > 10%

€1 billion in disposals

> Over €600 million in Logistics

2014 ANNUAL RESULTS 5

91% of strategic assets vs 85% at end 2013

STRATEGY

Record disposals of non-strategic assets Investments in our strategic activities

Group share data

FONCIÈRE DES RÉGIONS

8% 7% 9% 10% 11% 7% 18% 8% 8% 2% 11%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Beyond

THE FIRM PERFORMANCE OF THE INDICATORS VALIDATES OUR MODEL

Firm lease expirations as % of annual rental income commercial real estate assets (80% of GS total rent)

Stability of firm lease terms

at 5.8 years*

* Excluding non-strategic activities

Resilient values

Change in LFL vs. N-1

Sustainable rental income

Change in LFL vs. N-1

Historic

• ccupancy rates

2009 95.4% 94.8% 95.8% 2010 2011 2012 95.5% 2013 96.0% 2014

97.1%*

2009 +5.3% +1.3% 2010 2011 2012

• 0.3%

+0.5% 2013

• 3.6%

2014

+2.1%*

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

+0.2%*

2014

STRATEGY

2014 ANNUAL RESULTS 6

Group share data

La Défense

7

• 2. A major Hotel

real estate transaction

FONCIÈRE DES RÉGIONS

Hotels Healthcare Service sector

Assets €3.2 billion2 €0.8 billion Group share

Foncière des Murs: vehicule dedicated to the Hotels / Service sector

> Subsidiary with a 28.5% shareholding controlled by Foncière des Régions (limited partner) > A conviction in 2005: sales and leaseback and partnerships in hotel Service Sector

High and secure profitability

> 8.1% profitability1 > 100% occupancy rate; 94% operating margin > Long leases (firm average term of 6.8 years)

A MAJOR HOTEL REAL ESTATE TRANSACTION

STRENGTHEN CAPITAL IN FONCIÈRE DES MURS

2014 ANNUAL RESULTS 8

STRENGTHEN POSITION IN HOTELS

Amsterdam Paris

72% of Hotels Assets €3.2 billion

(€0.8 billion GS)

€1.7 bn Triple Net (€22.7) EPRA NAV €1.9 billion (€25.9)

1recurring net income on EPRA Triple Net NAV per share 2014 2100% Foncière des Murs

FONCIÈRE DES RÉGIONS

A MAJOR HOTEL REAL ESTATE TRANSACTION

STRENGTHEN CAPITAL IN FONCIÈRE DES MURS

2014 ANNUAL RESULTS 9

Montpellier

STRENGTHEN POSITION IN HOTELS

Hotel real estate leader

> 411 hotels under management (43,800 rooms); 41% in Île-de-France > Focus economic (61% of the Hotels)/Mid-Range (35%)

An asset class that tallies with Foncière des Régions' business DNA

> A unique partnership-based development model > Profitability; resilient revenues > Growth prospects; economic exposure (Tourism GDP) complementary to Offices and Residential

Rely on our unique expertise

An impressive track record

Like-for-like change for the Accor portfolio of €1.4 billion, bought in 2005/2006 100,0 110,6 113,9 104,8 112,7 117,7 116,5 118,5 117,9 100,0 106,3 116,3 111,9 107,1 116,1 121,8 122,4 127,0 90 100 110 120 130 2006 2007 2008 2009 2010 2011 2012 2013 2014 Rental income Values Average annual growth Values: +3.0% Rental income: +2.1%

FONCIÈRE DES RÉGIONS

A MAJOR HOTEL REAL ESTATE TRANSACTION

2014: A KEY STAGE, MARKED BY 3 SUCCESSES

2014 ANNUAL RESULTS 10

STRENGTHEN POSITION IN HOTELS

Pursuit development in Hotels

End 2013: Early 2015

1100% FDM 2100% FDM Management

1

Diversification

• f partners

The Netherlands

> €48.3 million1 acquisition in 2014 (NH 4* Amsterdam)

2

Geographically diversification

Germany

> €34 million1 of acquisitions in early 2015 (Motel One Berlin Mitte and Frankfurt Airport) > €200 million in exclusive negotiations

3

Diversification in investment tools

FDM Management

> Strategic support and advice for operators > Consolidate our partnerships > Derive value from investments in premises and business > 9 acquisitions in 2015 with Louvre Hotels Group in Germany (€49 million2) > Development in 2015 for Accor at Roissy CDG Airport, Ile de France (€55 million2)

FONCIÈRE DES RÉGIONS

Transaction conditions

> Acquisition of 10.3% from Generali and 4.3% from ACM > Completion date: 23 February 2015 > Price of €23 per share thus total of €250 million 1.3% premium on the 2014 Triple Net NAV

Launch of a takeover bid at €231

> Non-contribution commitments on the part of institutional shareholders (47.7% of capital) > Maximum additional investment of €157 million (9.2% of capital) > On completion of these transactions, Foncière des Régions will hold 43% to 52% of Foncière Des Murs

A MAJOR HOTEL REAL ESTATE TRANSACTION

ACQUISITION OF A 14.6% CAPITAL IN FONCIÈRE DES MURS

2014 ANNUAL RESULTS 11

STRENGTHEN POSITION IN HOTELS

Amsterdam Berlin

This transaction represents an investment of €430 million to €700 million of assets

Shareholder structure End 2014 Foncière des Regions Generali Free float ACM Crédit Agricole Assurances Cardif (BNP Paribas)

1Following the delivery of the report of the independent expert that will be appointed by the Supervisory Board of FDM and subject to the decision of conformity of the offer by the AMF

FONCIÈRE DES RÉGIONS

63% 16% 13% 8% Office Residential Germany Hotels / service Sector1 Non Strategic1

Capital increase of Foncière des Régions contemplated

> Approximately €250 million with DPS > Agreements in principle of 50% of the capital

Strengthening a strategic sector

> Hotels/Service Sector exposure: +4 points2

A transaction that immediately creates value

A MAJOR HOTEL REAL ESTATE TRANSACTION

FINANCEMENT AND IMPACTS

2014 ANNUAL RESULTS 12

1 subject to obtaining the AMF visa on the prospectus 2Estimations at end March 2015 on the basis of the shares being acquired before the public offer for purchase 3based on EPRA Cost ratio

STRENGTHEN POSITION IN HOTELS

Quality and profitability enhancement

Lengthening

• f firm lease terms

5.9 years + 0.1 year Increase in

• ccupancy rate

97.2% +0.1 pt Improving

• perating margin

78% + 1 pt3 7% 28% 8% 13% 44% ACM Groupe Crédit Agricole Free float Covéa Delfin

Shareholder structure End 2014

FONCIÈRE DES RÉGIONS

A MAJOR HOTEL REAL ESTATE TRANSACTION

2015 STRATEGY: CONSOLIDATE OUR LEADERSHIP POSITION

Investments in Europe speeded up via:

2014 ANNUAL RESULTS 13

Objective: €400m investment in Hotels (approx. €200 million GS1)

STRENGTHEN POSITION IN HOTELS

Yield 6% - 7%

Developments

Yield 7%-8%

Acquisitions in premises and businesses

EBITDA yield 8% -10%

Sale and leaseback

1After reinforcement of the stake in FDM

Meininger, Brussels

Motel One, Berlin

Motel One, Berlin Accor, Roissypole

• 3. Real-estate

activity

14

France Offices

15

FONCIÈRE DES RÉGIONS

OFFICES - FRANCE

A DYNAMIC PARTNERSHIP MODEL

Acceleration in investments buoyed by the pipeline

> €351 million of investments in 2014 (€162 million in acquisitions and €189 million in capex)

New Velizy delivery at Vélizy - Meudon

• 46,400 m²; 9-year firm lease with Thales (€250/m²)
• €192 million of investments (€96m GS); Value creation 15%

> €137 million of disposals and promises

• Non-core or mature offices; 7.0% margin on 2013 appraisals

2014 ANNUAL RESULTS 16

PROPERTY ACTIVITY Group share data Assets €5.0 billion (100%) €4.4 billion (GS)

Liberté and Coupole New Vélizy Acquisition of Coupole and Liberté at Charenton-le-Pont

• 38,000 m² next to Metro Line; let to Natixis (for a firm 9 years)
• 6.5% triple net yield; €162 million (€4,263/m²)

FONCIÈRE DES RÉGIONS

FRANCE OFFICES

VALUE-CREATING PIPELINE

17

REAL-ESTATE ACTIVITY

2014: 5 new projects committed for €109 million (20% of the committed pipeline )

Group share data

2015: delivery of 9 projects for €309 million

> 105,600 m²; 71% pre-leased; €22 million of new rents (8% annualised rents) > Balance between our strategic locations

• Paris and the first ring (78%)
• MR regional cities (22%)

Q1 2015 Q2 2015 Q3 2015

Steel – Paris Euromed – Marseille

(Offices, Car parks, Stores)

Vinci – Lille ERDF – Avignon Respiro – Nanterre (Greater Paris) Askia Coeur d’Orly (Greater Paris) Eiffage Campus – Vélizy (Greater Paris) Green Corner – Saint-Denis (Greater Paris)

2014 ANNUAL RESULTS

Thaïs (Greater Paris); 5,500 m² Bose (Greater Paris); 5,100 m² Calypso (Marseille); 9,630 m²

Assets €5.0 billion (100%) €4.4 billion (GS)

FONCIÈRE DES RÉGIONS

OFFICES - FRANCE

A PORTFOLIO OVERHAULED WITHIN 5 YEARS

> €2.1 billion of disposals of non-strategic assets

Secondary locations; small-scale assets; vacant units

2014 ANNUAL RESULTS 18

PROPERTY ACTIVITY

> 2/3

7% 2009 2012

2013

2017

24%

41%

Green portfolio share 2014

50%

88%

Assets at our strategic locations

Paris, first ring and major regional cities

Targeted acquisitions

> €1.6 billion in acquisitions and deliveries

46% of the present portfolio acquired or developed since end 2009

Group share data 2011 2012 2013 2014 2015 €58 million €85 million €118 million €189 million

acceleration of investments in the pipeline

€275 million 2010 €89 million Assets €5.0 billion (100%) €4.4 billion (GS)

FONCIÈRE DES RÉGIONS

OFFICES - FRANCE

GROWTH IN OUR INDICATORS

2014 ANNUAL RESULTS 19

Sustainably secure rental income

PROPERTY ACTIVITY

Increase in appraisal values like-for-like Increase in rental income like-for-like

2009 94.7% 94.3% 96.0% 2010 2011 2012 95.7% 2013 95.8% 2014

High occupancy rate which is improving

96.8%

Group share data Lease expirations by date of 1st exit option as % of annualized rental income

Maintaining long lease terms (5.4 years firm)

11% 11% 8% 11% 10% 11% 6% 8% 12% 2% 11%

> €50 million GS of leases signed (20% of French Office rental income) for an average firm term of 6.1 years > CB 21 Tower: 11,400 m² let; occupancy rate > 97% for a firm lease 9 years > Dassault Systèmes Campus: renewal of the whole lease for a firm lease 10 years from 2016 onwards, at the current rent

Successful lettings

1

+0.7% +3.0%

Assets €5.0 billion (100%) €4.4 billion (GS)

FONCIÈRE DES RÉGIONS

OFFICES - FRANCE

2015 STRATEGY

PROPERTY ACTIVITY Group share data

2014 ANNUAL RESULTS 20

Pursue pipeline investments

 Quality

target locations, competitive rents, major- account tenants

 Controlled tenant risks  Strong risk-adjusted profitability

Turnkey Development Pipeline of €1.4 billion New developments Refurbishment 63% pre-let (measured on commitments) Yield

• n cost > 7%

Creation of value > 10% €518 million committed

1 2

€300 million investment scheduled in 2015 Maintain a selective acquisitions strategy

Assets €5.0 billion (100%) €4.4 billion (GS)

Italy Offices

21

FONCIÈRE DES RÉGIONS

OFFICES - ITALY

LEADING ITALIAN PROPERTY COMPANY WITH A QUALITY PORTFOLIO

Encouraging economic factors

> Steady improvement in the investment market €2.6 billion invested at Q4 (+35% in one year) Milan:14% increase in investment in 2014; 25 bps drop in Yield prime > Normalisation of (bank and bond-issue) financing terms > Positive developments in the SIIQ tax regime

Sound fundamentals in our portfolio

2014 ANNUAL RESULTS 22

PROPERTY ACTIVITY

1 Core portfolio

92%

• f core

assets 95.2%1 Occupancy rate 6.3 years1 Firm term of leases Rome

Assets €4.1 billion (100%) €2.0 billion (GS)

Milan

FONCIÈRE DES RÉGIONS

OFFICES - ITALY

2014 ACTIVITY

2014 ANNUAL RESULTS 23

PROPERTY ACTIVITY

Via Dell’Arte – Rome; 6,400 m², €350/m² San Nicolao – Milan; 11,705 m², €469/m² San Fedele – Milan; 5,129 m², €620/m²

> 23,800 m² renewed Firm average term of 7.5 years; 14% rise in rents > New leases on 25,400 m² Firm average term of 7.3 years €11.4 million of new rents (5% annualised rents) Change in rental income like-for-like

• 1.5%

Stable expert appraisals like-for-like

• 0.2%

Disposals and promises

€81m

(€39m GS)

Margin

• f 3.3%

1 New Commitment 2014

Successful restructurings and renovations

Assets €4.1 billion (100%) €2.0 billion (GS)

• 0.3%

excluding freeing of Turin premises

FONCIÈRE DES RÉGIONS

OFFICES, ITALY – 2015 STRATEGY

CONTINUE UPGRADING THE QUALITY

2015: Accelerate asset-quality rotation

> Sales of non-core assets > Continue repositioning in high-potential properties > Focus investment on Milan

1st half-year launch of a 1st property in Symbiosis – Milan

> Adapted to demand: new building, medium-sized (11,650 m²) and at competitive rents (€300/m²) > Quality location: 2.5 km from the Duomo, in front of the headquarters of the Prada Foundation (May 2015) > Delivery in 2017; yield > 7%

2014 ANNUAL RESULTS 24

PROPERTY ACTIVITY

Milan

Assets €4.1 billion (100%) €2.0 billion (GS)

German Residential

25

FONCIÈRE DES RÉGIONS

End 2014 End 2012

2 1 1

GERMAN RESIDENTIAL

GROWTH AND ACCELERATION OF INVESTMENTS

Quality stepped up in 2014

> €358m of acquisitions (€218 million GS) of which 62% in Berlin (38% in Dresden and Leipzig) 6.0% yield; average reversion potential of 25%-30% > €160 million of disposals and agreements (€97 million GS) for the non-core portfolio in NRW1 7.1% yield; 5.4% margin

2014 ANNUAL RESULTS 26

Growth of portfolio and refocusing on strategic locations

PROPERTY ACTIVITY

1North Rhine – Westphalia 2Including Dresden and Leipzig

€0.8 billion

• f assets

GS €1.7 billion

• f assets

GS

Assets €2.7 billion (100%) €1.7 billion (GS)

Essen

Duisburg

2

FONCIÈRE DES RÉGIONS

GERMAN RESIDENTIAL

GROWTH IN INCOME

A high-performing, differentiating investment strategy

> Concentration of investments on prime properties, town-centre and small size > Combine high rental reversion rate (25-30%) with long-term privatisation potential

Reap the benefits of the quality-like repositioning A value creation reserve

> Average value of €1,004/m² of which €1,260/m² in Berlin1 > Average rent of €5.5/m² (€6.3 in Berlin1) > 6.5% Yield Average with 5.9% in Berlin1

2014 ANNUAL RESULTS 27

PROPERTY ACTIVITY

Berlin

1Including Dresden and Leipzig; 11% of rental income and 25% of value in like-for-like calculations

Quality and reserve for growth

+4.9% in Berlin1 +4.9% in Berlin1

Rents on a like-for-like basis +1.8% Values on a like-for-like basis +2.9% Berlin

Assets €2.7 billion (100%) €1.7 billion (GS)

FONCIÈRE DES RÉGIONS

Reinickendorf 2%; 1.9% ; 9.7% District % of portfolio Vacancy rate ; Reversion rate Spandau 4%; 3.4% ; 5.0% Steglitz-Zehlendorf 16%; 1.3% ; 27.7% Spankow 5%; 2.5% ; 23.9% Marzahn- Hellersdorf 2%; 0.5% ; 22.7% Treptow-Köpenick 1%; 5.8% ; 10.5% Tempelhof- Schöneberg 10%; 3.0% ; 24.5% Neukölln 19%; 2.0% ; 33.3% Friedrichshain- Kreuzberg 10%; 0.9% ; 37.1% Mitte 16%; 0.8% ; 18.4% Charlottenburg- Wilmersdorf 12%; 3.3% ; 21.1% Lichtenberg 1%; 0% ; 27.4%

GERMAN RESIDENTIAL

OUR PORTFOLIO IN BERLIN

2014 ANNUAL RESULTS 28

PROPERTY ACTIVITY

€937 million1 (€571 million GS)

8,990 units1

1After acquisitions signed in early 2015

Prime locations and considerable value-creation potential

24%

reversion rate 2.2% vacancy rate

83% of portfolio 1.8% vacancy rate 27% reversion rate

Assets €2.7 billion (100%) €1.7 billion (GS)

FONCIÈRE DES RÉGIONS

GERMAN RESIDENTIAL – 2015 STRATEGY

ORGANIC GROWTH AND DEVELOPMENT

Tap growth on like-for-like

> Economic and property-market fundamentals remain buoyant > Indexation and re-letting

Continue development and rotation of capital

> Continue investing in Berlin and other cities with potential > Sell Non-Core Assets in NRW1

An already secured acquisitions pipeline

> €221 million (€135 million GS) negociated of which 83% in Berlin prime, in Dresden and Leipzig 5.2% yield (€1,710/m²); 25% reversion potential; margin on sales in the long run

2014 ANNUAL RESULTS 29

2015 acquisitions objective of €500m (€300 million GS) Rental growth objective like-for-like: > 2%

PROPERTY ACTIVITY

Berlin

1North Rhine – Westphalia

Assets €2.7 billion (100%) €1.7 billion (GS)

• 4. Financial

results

2014 ANNUAL RESULTS 30

FONCIÈRE DES RÉGIONS

LIABILITIES: IMPROVING THE PROFILE

2014 ANNUAL RESULTS 31

FINANCIAL RESULTS

Major refinancing in Italy

> Refinancing of the ImSer debt relating to the €1.7 billion portfolio of Telecom Italia properties > €500 million of bank loans > Successful €150 million capital increase pursued by Foncière des Régions > Debt cost 2.5% vs. 8.7% securitisation cost

€3.1 billion of refinancing and new debts (€1.9 billion GS) Including €1.1 billion on the Securitised mortgages market

> Beni Stabili: €350 million1 at 4 years and 4.125%; €250 million1 at 5 years and 3.5% > Foncière des Régions: successful bond issue in September 2014

Profile and cost improvement

1 €0.2 billion and €0.1 billion group share

€180 million 7 years 197 bps 3.30 % €500 million 7 years 105 bps 1.75 %

• Sept. 2014

March 2013

• Oct. 2012

€500 million 5 years; 295 bps 3.875 %

FONCIÈRE DES RÉGIONS

LIABILITIES: IMPROVING THE PROFILE

2014 ANNUAL RESULTS 32

Debt maturities under control

Investor mortgages Bonds (+8 pts vs. 2013) Corporate credit facilities (+4 pts vs .2013) Bank mortgage loans

Continue reducing cost of debt

FINANCIAL RESULTS Group share data

A diversified debt profile, secured for greater flexibility

LTV 46.1 %

• 0.4 pt

ICR 2.8

+27 bps

Cost of debt 3.29 % 2013

3.94 % 2015 2016 2017 2018 1.5 0.3 0.5 1.1 2019 0.8 2020 0.8 2022 & following 0.2 0.8 2021

Strong diversification in financing Average maturity 4.1 years Group Share – € billion 60% unsecured debt

FONCIÈRE DES RÉGIONS

RENT: STABILITY ON LIKE-FOR-LIKE BASIS

2014 ANNUAL RESULTS 33

Rental income (€m) Change

• n like-

for-like basis Occupancy rate Residual firm terms of leases Offices - France 238.2 +0.7% 96.8 % 5.4 years Offices - Italy 114.9

• 1.5%

95.2 %1 6.3 years Offices 353.1 +0.0% 96.3% 5.7 years Residential Germany 103.4 + 1.8% 98.3 % Na Hotels/Service Sector 51.0

• 0.6%

100 % 6.8 years Other 50.7 Na Na Na Total 558.1 +0.2% 97.1 % 5.8 years

FINANCIAL RESULTS Group share data

1 Core portfolio

Occupancy rate improvement

• 0.3% excl. Turin new vacancy

Sound performance Improvement in 2nd half-year

Indexation: +0.6% Occupancy rate: - 0.3% Renewals: -0.1%

FONCIÈRE DES RÉGIONS

RECURRING NET INCOME INCREASED 6.0%

2014 ANNUAL RESULTS 34

€m 2013 2014 % Rental income 525.7 558.1

• /w net rental income

483.8 508.5 +5.1% Net operating costs

• 42.7
• 54.2

Result from other activities 14.4 21.2 Current operating income 455.8 475.5 +4.3% Net cost of financial debt

• 190.4
• 173.5

Recurring net income of MEE companies 23.4 14.2 Income from non-consolidated companies 10.1 0.9 Pre-tax net income 298.9 317.2 +6.1% Recurring tax

• 2.2
• 2.7

EPRA recurring net income 296.7 314.5 +6.0% Change in the fair value of real estate assets

• 40.2

102.0 Other changes in asset values

• 34.2
• 8.3

Changes in the fair value of financial instruments 71.7

• 190.9

Other 48.8

• 55.1

Non-recurring taxes

• 2.7
• 43.7

Net Income 340.1 118.5

FINANCIAL RESULTS Group share data

FONCIÈRE DES RÉGIONS

EPRA RECURRING NET INCOME PER SHARE

2014 ANNUAL RESULTS 35

FINANCIAL RESULTS

2013 2014 Change vs. 2013

EPRA RNI (in €m) 296.7 314.5 +6.0% EPRA RNI/share (€) 4.98 5.03 +1.1%

Average number of fully diluted shares 59,632,122 62,538,274 +4.9%

Group share data

Stable rental income like-for-like Impact of disposals Reinforcement in Germany Lower average cost of debt

FONCIÈRE DES RÉGIONS

SOUND PORTFOLIO ASSETS

2014 ANNUAL RESULTS 36

€m Value 2014 Total share Value 2014 GS Change LFL 12 months Change % LFL 6 months Yield ED 2014 GS Offices - France 5,032 4,353 3.0% 1.8% 6.6% Offices - Italy 4,093 1,977

• 0.2%

0.1% 6.1%1 Offices 9 125 6,330 2.0% 1.2% 6.4% Residential Germany 2,746 1,656 2.9% 1.5% 6.5% Hotels/Service Sector 3,243 844 2.0% 1.5% 6.1% Other 1,318 922 Na Na Na Total 16,433 9,752 2.1% 1.2% 6.3%

FINANCIAL RESULTS

1 Core portfolio

Increase in values in Paris and the major regional cities (MR) Core portfolio stable Slight growth in Northern Italy Increase in Hotel values Sustained growth in Berlin and Dresden

FONCIÈRE DES RÉGIONS

RECORD VOLUME OF NON-STRATEGIC DISPOSALS

2014 ANNUAL RESULTS 37

FINANCIAL RESULTS

(2014, €m) Disposals and agreements 100% Disposals and agreements GS Margin on values 2013 Yield Offices - France 137 137 7.0% 6.6% Offices - Italy 81 39 3.3% 6.1% Residential Germany 160 97 5.4% 7.1% Hotels & Service Sector 62 18 1.4% 5.5% Non-strategic 751 694

• 0.3%

6.4% Total asset disposals 1,191 986 1.5% 6.4%

Quality improvement

70% of non-strategic assets, of which €606 million In Logistics 30% of non-core assets

FONCIÈRE DES RÉGIONS

EPRA NAV: €75.5 PER SHARE

2014 ANNUAL RESULTS 38

> EPRA triple net NAV €4,145 million and €65.9 per share > EPRA NAV: €4,754 million and €75.5 per share

FINANCIAL RESULTS Group share data

Number of shares used to calculate NAV: 62,941,712 for 2014 vs 62,708,431 for 2013

€4,754 million €75.5/share

• 2.8%

€4,871 million €77.7 €/share

Favourable impacts on the debt profile and cost +€315 million RNI EPRA +€102 million Property values increase

• €263

million Distribution

• €85 million

Hedge restructuring

• €45 million

Other

EPRA NAV 2014 EPRA NAV 2013

• €35 million

Tax implications

• f logistics

disposal

• €106 million

Refinancing and capital increase of Beni Stabili

FONCIÈRE DES RÉGIONS

DIVIDEND: +2.4% AT €4.30

39

FINANCIAL RESULTS

2014 2013 €4.30 €4.20

2014 ANNUAL RESULTS

Yield 4.6%1

Paid in cash

Payout 86%

vs 84%

1 Based on a stock-market price of €93

Ex-payment entitlement date: 24/04/2015

5. Outlook

40

FONCIÈRE DES RÉGIONS

2015 OUTLOOK

BOLSTER THE SUSTAINABILITY OF OUR CASH FLOWS AND ASSET VALUE

41

OUTLOOK

2014 ANNUAL RESULTS

Refocusing on strategic markets Capacity to seize investment opportunities Improve visibility over our results and growth prospects €1 billion (GS) in investments already committed

> Offices: rely on a value-creating pipeline and a secure yield on cost > Two major growth drivers

• Residential in Germany: organic growth and acquisitions in our target locations
• Hotels in Europe: exposure increased in 2015

> Objective of over 95% strategic assets at end 2015

2014

A more soundly-based portfolio

2015

New growth

• pportunities

Slight increase in EPRA RNI per share objective for 2015

FONCIÈRE DES RÉGIONS

FINANCIAL AGENDA

42

AGENDA

2014 ANNUAL RESULTS

Shareholder General Meeting 2015: 17 April 2015 Q1 2015: 6 May 2015

43

Appendix

FONCIÈRE DES RÉGIONS

PIPELINE COMMITTED

25 PROJECTS FOR €532 MILLION

2014 ANNUAL RESULTS 44

APPENDICES:

1 100% usable area excl. car park 2 Group share incl. land and financial cost

Project (% held) Project Location Date of delivery Progress (%) Pre- let (%) Surface (m²)1 Cost total2 Yield on cost Target rents

• n
• ffices

(€/m²/year) Offices Green Corner Construction Saint-Denis - IDF 2015 60% 70% 20,411 €87 million 7% 284 Eiffage Campus (FDR share: 50%) Construction Vélizy-Meudon - IDF 2015 70% 100% 23,242 €53 million 7% 269 Nanterre - Respiro Construction Nanterre - IDF 2015 75% 100% 11,137 €51 million >7% 310 Steel Refurbishment Paris-IDF 2015 80% 0% 3,671 €36 million 6% 600 Vinci Lille Construction Lille-Roubaix 2015 80% 72% 9,700 €23 million >7% 160 Euromed Center – Astrolabe (FDR share: 50%) Construction Marseille 2015 100% 35% 14,042 €19 million >7% 250 Cœur d'Orly – Askia (FDR share: 25%) Construction Orly - IDF 2015 70% 50% 18,450 €15 million >7% 250 ERDF Avignon Reconstruction Avignon 2015 75% 100% 4,122 €9 million >7% 158 2015 Subtotal 104,775 €293 million >7% Silex 1 Refurbishment Lyon 2016 10% 0% 10,586 €47 million 6% 280 DS Campus Extension (FDR share: 50%) Construction Vélizy-Meudon - IDF 2016 5% 100% 13,104 €34 million 6% 305 Bose Construction St-Germain-en-Laye - IDF 2016 30% 100% 5,057 €20 miliion >7% 224 Euromed Center – Calypso (FDR share: 50%) Construction Marseille 2016 20% 0% 9,627 €15 million >7% 250 Schlumberger Reconstruction Montpellier 2016 20% 100% 3,133 €8 million >7% 155 2016 Subtotal 41,507 €124 million >7% Thaïs Refurbishment Levallois Perret - IDF 2017 10% 0% 5,516 €40 million 7% ND Hotels B&B Porte de Choisy Construction Paris-IDF 2015 83% 100% 3,947 €2 million 6% N/A B&B Torcy Construction Torcy- IDF 2015 21% 100% 2,429 €2 million >7% N/A B&B Romainville Construction Romainville – IDF 2015 35% 100% 2,264 €2 million >7% N/A B&B Duisburg Construction Duisburg 2015 30% 100% 2,706 €2 million >7% N/A B&B Mülheim Construction Mülheim 2015 40% 100% 2,306 €1 million >7% N/A B&B Erfurt Construction Erfurt 2015 12% 100% 2,597 €1 million >7% N/A B&B Lyon Caluire Construction Lyon 2015 37% 100% 2,493 €1 million 7% N/A 2015 Subtotal 18,742 €11 million >7% Euromed Center – Hotel (FDR share: 50%) Construction Marseille 2016 35% 100% 9,929 €19 million >7% N/A B&B Berlin Construction Berlin 2016 2% 100% N/A €2 million >7% N/A 2016 Subtotal €21 million >7% Healthcare INICEA clinic Reconstruction Saint Mandé - IDF 2016 5% 100% 5,478 €25 million 6% N/A Car parks / Retail Euromed Center (FDR share: 50%) Construction Marseille 2015 100% 100% 857 €16 million >7% N/A 63% 186,642 €532 million >7%

Group share data

Yield >7%

Rental income >€37.5 m

Pre-let 63% Value creation > 10%

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