Enhanced strategic positioning 2014 Results 20 February 2015
CONTENTS > 1. A SOLID, SUSTAINABLE POSITIONING > 2. A MAJOR HOTEL TRANSACTION > 3. REAL-ESTATE ACTIVITY > 4. FINANCIAL INFORMATION > 5. OUTLOOK > APPENDIX FONCIÈRE DES RÉGIONS 2
1. A solid, sustainable positioning 3
STRATEGY STRATEGY STRENGTHENED POSITIONING A € 9.8 billion GS of portfolio ( € 16.4 billion at 100%) on buoyant markets 1 focus and 2 diversifications Offices > Sound fundamentals; market depth > Attractive yield; value-creating pipeline € 9.8 billion GS Non-strategic > of which Residential, France (5%) Residential Germany > Sound economy; buoyant market > Organic growth and development potential Hotels/Service sector > Leadership position; impressive track record > Attractive market; partnership logic Recognised, responsive local plateforms FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 4
STRATEGY 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 Investments € 230 million of deliveries in 2014 and € 320 million scheduled for 2015 in our strategic activities > € 215 million of capex in 2014 > 7 deliveries in 2014, fully-let; 2015 deliveries 71% pre-let > Pipeline average yield > 7%; value creation > 10% Record disposals of € 1 billion in disposals non-strategic assets > Over € 600 million in Logistics 91% of strategic assets vs 85% at end 2013 Group share data FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 5
STRATEGY THE FIRM PERFORMANCE OF THE INDICATORS VALIDATES OUR MODEL Historic Stability of firm lease terms occupancy rates at 5.8 years* 97.1%* 18% 95.5% 96.0% 95.4% 94.8% 95.8% 11% 11% 10% 9% 8% 8% 8% 7% 7% 2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Beyond 2009 2010 2011 2012 2013 2014 Firm lease expirations as % of annual rental income commercial real estate assets (80% of GS total rent) +3.3% La Défense +2.1%* + 2.2% +5.3% +2.1% +0.2%* +1.2% +1.3% +0.5% -3.6% +0.6% - 0.3% 2009 2011 2012 2010 2013 2014 2010 2011 2012 2013 2009 2014 Sustainable rental income Resilient values Change in LFL vs. N-1 Change in LFL vs. N-1 * Excluding non-strategic activities Group share data FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 6
2. A major Hotel real estate transaction 7
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION STRENGTHEN CAPITAL IN FONCIÈRE DES MURS 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 Assets EPRA NAV € 3.2 billion € 1.9 billion ( € 0.8 billion ( € 25.9) GS) € 1.7 bn 72% of Triple Net Hotels ( € 22.7) Paris High and secure profitability > 8.1% profitability 1 > 100% occupancy rate; 94% operating margin > Long leases (firm average term of 6.8 years) Assets Hotels € 3.2 billion 2 Amsterdam € 0.8 billion Group share 1 recurring net income on EPRA Triple Net NAV per share 2014 2 100% Foncière des Murs Healthcare Service sector FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 8
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION STRENGTHEN CAPITAL IN FONCIÈRE DES MURS 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 An impressive track record Like-for-like change for the Accor portfolio of € 1.4 billion, bought in 2005/2006 127,0 130 122,4 121,8 117,7 Average annual 116,3 120 112,7 growth 110,6 111,9 118,5 117,9 Values: +3.0% 116,1 116,5 110 113,9 Rental income: +2.1% 100,0 Montpellier 106,3 107,1 100 104,8 100,0 90 2006 2007 2008 2009 2010 2011 2012 2013 2014 Rental income Values Rely on our unique expertise FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 9
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION 2014: A KEY STAGE, MARKED BY 3 SUCCESSES Early 2015 End 2013: 1 Diversification of partners Germany The Netherlands 2 > € 34 million 1 of acquisitions in early 2015 Geographically > € 48.3 million 1 acquisition in 2014 diversification (Motel One Berlin Mitte and Frankfurt Airport) (NH 4* Amsterdam) > € 200 million in exclusive negotiations FDM Management > 9 acquisitions in 2015 with Louvre Hotels 3 Diversification > Strategic support and advice for operators Group in Germany ( € 49 million 2 ) in investment tools > Consolidate our partnerships > Development in 2015 for Accor at Roissy CDG > Derive value from investments in premises Airport, Ile de France ( € 55 million 2 ) and business 1 100% FDM Pursuit development in Hotels 2 100% FDM Management FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 10
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION ACQUISITION OF A 14.6% CAPITAL IN FONCIÈRE DES MURS Transaction conditions Cardif (BNP Paribas) > Acquisition of 10.3% from Generali and 4.3% from ACM > Completion date: 23 February 2015 Crédit Agricole > Price of € 23 per share thus total of € 250 million Shareholder Assurances Foncière des structure 1.3% premium on the 2014 Triple Net NAV Regions End 2014 ACM Launch of a takeover bid at € 23 1 Generali > Non-contribution commitments on the part of institutional shareholders (47.7% of capital) Free float > 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 This transaction represents an investment of € 430 million to € 700 million of assets Berlin Amsterdam FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 11 1 Following 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
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION FINANCEMENT AND IMPACTS 13% Covéa Capital increase of Foncière des Régions contemplated 8% ACM Shareholder > Approximately € 250 million with DPS 7% 28% Groupe Crédit Agricole Delfin structure > Agreements in principle of 50% of the capital End 2014 44% Free float Strengthening a strategic sector 63% Office > Hotels/Service Sector exposure: +4 points 2 16% Residential Germany 8% Non Strategic 1 13% A transaction that immediately creates value Hotels / service Sector 1 Improving Increase in Lengthening operating margin occupancy rate of firm lease terms 5.9 years 97.2% 78% + 0.1 year +0.1 pt + 1 pt 3 Quality and profitability enhancement FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 12 1 subject to obtaining the AMF visa on the prospectus 2 Estimations at end March 2015 on the basis of the shares being acquired before the public offer for purchase 3 based on EPRA Cost ratio
STRENGTHEN POSITION IN HOTELS A MAJOR HOTEL REAL ESTATE TRANSACTION 2015 STRATEGY: CONSOLIDATE OUR LEADERSHIP POSITION Investments in Europe speeded up via: Sale and Acquisitions in Developments leaseback premises and businesses EBITDA Yield Yield yield 6% - 7% 7%-8% 8% -10% Accor, Roissypole Motel One, Berlin Meininger, Brussels Motel One, Berlin Objective: € 400m investment in Hotels 1 After reinforcement of the stake in FDM (approx. € 200 million GS 1 ) FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 13
3. Real-estate activity 14
France Offices 15
PROPERTY ACTIVITY Assets OFFICES - FRANCE € 5.0 billion (100%) € 4.4 billion (GS) 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 Acquisition of Coupole and Liberté at Charenton-le-Pont • 46,400 m²; 9-year firm lease with Thales ( € 250/m²) • 38,000 m² next to Metro Line; let to Natixis (for a firm 9 years) • € 192 million of investments ( € 96m GS); Value creation 15% • 6.5% triple net yield; € 162 million ( € 4,263/m²) New Vélizy Liberté and Coupole > € 137 million of disposals and promises • Non-core or mature offices; 7.0% margin on 2013 appraisals Group share data FONCIÈRE DES RÉGIONS 2014 ANNUAL RESULTS 16
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