H1 2017 Results: Solid performances and pursuit of the growth story - - PowerPoint PPT Presentation

H1 2017 Results: Solid performances and pursuit of the growth story

20 July 2017

CONTENTS

FONCIÈRE DES RÉGIONS 2

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

H1 2017 RESULTS

3

1

Strategic positioning

H1 2017 RESULTS

FONCIÈRE DES RÉGIONS

A UNIQUE BUSINESS MODEL

H1 2017 RESULTS 4

Focus on the major European cities

Business & tourism centers Transportation hubs

Develop tomorrow’s buildings

Smart and efficient buildings Mixed-use projects

Client centric

Enhanced services for our clients Create a productive and well-being environment

14 deliveries in 2017 100,000 m² of offices 830 hotel rooms €1.2 billion1 acquisitions in Berlin, Milan, Barcelona & Madrid Launch of a flexible and co-working workspace

• ffer

1 €614 million Group Share

H1 2017 achievements

We are a European operator working across the entire real estate value chain

FONCIÈRE DES RÉGIONS

BE CUSTOMER ORIENTED: DEVELOP TOMORROW’S BUILDINGS

H1 2017 RESULTS 5

New trends in workspace environments & accelerated obsolescence of the buildings

A demand focused on New/refurbished buildings

Higher returns than buying assets

value creation already realized on the 2017 deliveries

Low risk

average occupancy rate the year of their delivery of the French

• ffices since 2011

Better quality

Green

Development pipeline: the best strategy

1 €3.2 billion Group Share

30% 92% A €4.1 billion1 development pipeline 100%

€3.4 bn in Offices Paris, Milan, Lyon, Marseille €280 million in Hotels Paris, Lyon, Berlin, Munich, Milan €400 million in Residential Berlin

FONCIÈRE DES RÉGIONS

OFFERING GROWTH AND PROFITABILITY

H1 2017 RESULTS 6

A growing portfolio:

€21 billion (€13 billion Group Share) at end-June +28% growth since 2014 Residential in Berlin French offices pipeline

€16.4 bn €17.8 bn €19.3 bn €21.0 bn

2014 2015 2016 H1 2017

A strong profitability €4.9 bn investments since 2014 Mostly in Paris, Berlin & Milan €2.7 bn disposals since 2014 Non core assets One of the strongest ROE of its sector 6.8%

(Recurring net Income 2016/EPRA NNNAV 2016)

+41%

like-for-like value growth since 2014

+37%

like-for-like value growth since 2014

FONCIÈRE DES RÉGIONS

H1 2017 RESULTS: STRONG GROWTH

H1 2017 RESULTS 7

PORTFOLIO RENTS NAV RECURRING NET INCOME

+5% +3% LFL

+12% +10%

€13 BILLION EPRA NAV €6.6 BN; €88.4/SHARE €198.3 MILLION €2.7/SHARE

+3% +2% LFL

€295 MILLION LTV

42.9%

vs 44.6% in 2016

OCCUPANCY RATE

96.6%

6.6-YEAR LEASE

Group share data

H1 2017 RESULTS 8

2

Real Estate Activity

> France Offices > Italy Offices > Germany Residential > Hotels in Europe

FONCIÈRE DES RÉGIONS

300 € 305 € 310 € 315 € 320 € 2013 2014 2015 2016 2017

Greater Paris office market Average economic rent for new/refurbished

• ffices in Paris, La Défense, Western Crescent

POSITIVE RENTAL TRENDS IN ALL OUR MARKETS

H1 2017 RESULTS 9

Office - Milan

Source: CBRE

400 € 420 € 440 € 460 € 480 € 2013 2014 2015 2016 2017

Milan office market Average economic rent for prime offices

5,0 € 5,2 € 5,4 € 5,6 € 5,8 € 6,0 € 6,2 € 6,4 € 6,6 € 2013 2015 2017

Residential Berlin Mietspiegel index evolution since 2013

(in €/m²/month) 90 95 100 105 110 115 120 2013 2014 2015 2016 May 2017

Hotels in Europe RevPar1 evolution in Europe (Base 100 end-2013) +9.4% +4.0% +8.0% +8.1%

Source: JLL Source: MKG

1 Revenue Per Room

France Offices

FONCIÈRE DES RÉGIONS

SIGNIFICANT LETTING SUCCESSES IN A SUPPORTIVE MARKET

H1 2017 RESULTS 11

Take-up H1 2017 +4% YoY

For offices > 5,000m²: +9% Western Crescent: +50%

Vacancy rate 6.5%

Obsolescence issue No short-term oversupply risk

Economic rents +4% vs 2015

Greater Paris office market positively oriented

Rental growth like-for-like

A good letting activity in our portfolio

+0.9%

Thaïs, Greater Paris

Historically high occupancy rates

94.7% 94.3% 96.0%

95.3%

2009 H1 2017 95.7% 95.8% 96.8% 95.8% 95.6%

FONCIÈRE DES RÉGIONS

2017: A RECORD YEAR OF DELIVERIES OF PROJECTS, FAVORED BY THE TENANTS

H1 2017 RESULTS 12

Thaïs–Paris Office - Milan

H1 2017: 4 deliveries for €137 million1 and 33,000 m² Already 86% let with a 9-year average firm maturity +50% average total value creation

Silex1 - Lyon

10,700 m²

Hermione - Euromed Marseille

10,400 m²

Thaïs Levallois-Perret

5,500 m²

O’rigin - Nancy

6,300 m²

100% let 100% secured 66% let 91% let

New in H1 2017 Under final negotiation New in H1 2017 3,530 m² let to MCI & Gekko

1 €123 million Group Share

FONCIÈRE DES RÉGIONS

2017: A RECORD YEAR OF DELIVERIES OF PROJECTS, FAVORED BY THE TENANTS

H1 2017 RESULTS 13

H2 2017: 4 deliveries for €268 million1 and 48,000 m² +20% average value creation to date

Edo – Issy-les-Moulineaux

10,800 m²

Floréal - Euromed Marseille

13,400 m²

New St Charles Reims

10,300 m²

Art & Co - Paris

13,500 m²

100% secured 100% let Advanced negotiations

• ngoing

100% let

New co-working activity for 5,000 m² New in H1 2017 Under final negotiation

1 €250 million Group Share

FONCIÈRE DES RÉGIONS

CLIENT CENTRIC: A NEW FLEXIBLE & CO-WORKING ACTIVITY

H1 2017 RESULTS 14

DELCASSE PARIS CBD EUROMED CENTER MARSEILLE October 2017

2,300 m²

GARE DE LYON PARIS 12th October 2017 3,300 m² COMPANS CAFFARELLI TOULOUSE Q2 2018 3,300 m² GARE ST JEAN LGV BORDEAUX Q2 2018 3,000 m² Silex² LYON 2020 5,000 m² January 2018 5,000 m²

Meet a new and fast growing demand Stay close to the tenants Keep value creation in-house 10 sites already identified Target return : c. 30% margin vs rents

1st openings coming soon Create a territorial network in the major French cities Launch of a new third-places offer

FONCIÈRE DES RÉGIONS CONCIERGE RECEPTION DESK PATIO CONVENIENCE STORE AUDITORIUM VIP ROOM RESTAURANT FITNESS ROOM RESTAURANT CAFETERIA TERRACES CAR PARKS TERRACES TERRACES TERRACES

URBAN AGRICULTURE

LOUNGE CO-WORKING FLEX-OFFICE

WE WANT OUR BUILDINGS TO BE BUSINESS DRIVERS FOR OUR CLIENTS

H1 2017 RESULTS 15

Flexible Connected Full of services Mixed and diverse Silex2 - Lyon

CLASSICAL LEASES

Italy Offices

FONCIÈRE DES RÉGIONS

Portfolio ex-Telecom Italia: +2.9%

• 1.5%
• 4.1%

+0.2%

1.5%

2014 2015 2016 H1 2017 Occupancy rate ex-TI 87.4% 91.6% 92.1%

H1 2017: A SOUND OPERATING PERFORMANCE

H1 2017 RESULTS 17

First impacts of the operating successes of 2016

Recovery in like-for-like rent

Milan office market positively oriented

Take-up H1 2017: +29% YoY Grade A: 65% of the take-up Prime economic rent: +8% vs 2015

Source: Cushman & Wakefield

84.7%

FONCIÈRE DES RÉGIONS

H1 2017: GOOD LETTING ACTIVITY ON THE DEVELOPMENT PIPELINE

H1 2017 RESULTS 18

€792 million1 development pipeline 224,000 m²; c.90% in Milan €332 million2 committed projects 58% pre-let Via Cernaia, Milan

Fully pre-let to Amundi for 9.5 years 8,300 m², delivery Q4 2017 €57 million cost; €3.1 million of rent

1 €412 million Group Share; ² €174 million Group Share

New HQ

FONCIÈRE DES RÉGIONS

H1 2017: REINFORCEMENT IN MILAN CITY-CENTER

H1 2017 RESULTS 19

Acquisition of a €118 million1 portfolio

17 properties2; 21,700 m² 82% in Milan

A high-quality portfolio with prime locations Let to the Credito Valtellinese Group Double net leases; 10.8-year firm lease terms Attractive initial yield of 6.0%

1 €62 million Group Share; ² including 2 long-term leasehold rights

Milan, Piazza San Fedele Milan, Corso Magenta

FONCIÈRE DES RÉGIONS

H1 2017: QUALITATIVE ASSET ROTATION

H1 2017 RESULTS 20

Disposal of a core mature asset

11,705 m² of offices in Milan via San Nicolao

> €114.6 million2, 4.2% exit net yield > Redevelopped in 2014 and let to Luxottica

Diversification of the tenant base

Closing of the partnership on TI portfolio with two major international investors

> 40% share of the portfolio to Crédit Agricole Assurances & EDF Invest > Equivalent of €618 million1 of underlying assets

Milan, San Nicolao Naples, Via de Pretis

1 €323 million Group Share; ; 2 €60 million Group Share

Germany Residential

FONCIÈRE DES RÉGIONS

H1 2017: SUCCESS OF OUR BUSINESS MODEL

H1 2017 RESULTS 22

Continuation of the strong growth, in all our markets

+1.8% +2.4% +3.6%

33% Indexation 58% Reletting 9% Modernization Berlin +4.8% Hamburg +5.3% NRW +3.2% Dresden & Leipzig +3.8%

2014 2015 2016 H1 2017

Mainly through reletting Like-for- like rents +4.0% Like-for-like rents

+4.0%

FONCIÈRE DES RÉGIONS

H1 2017: PURSUIT OF ACQUISITIONS IN BERLIN AT ATTRACTIVE CONDITIONS

H1 2017 RESULTS 23

€376 million

• f acquisitions1

Berlin (86%), Leipzig & Düsseldorf

Quality portfolios with high growth potential €1,860/m² (€2,170/m² in Berlin) 4.5% yield after reletting of 11% vacant units (4.3% in Berlin) +35% reversionary potential

1 €241 million Group Share; 2 €1.5 million Group Share

Prime location Good location Average location Basic location Green area

Source: Engel & Völkers Residential

73% 5% 22%

New acquisitions

FdR : A €2.4 billion2 Berlin portfolio focused on the best locations

FONCIÈRE DES RÉGIONS

H1 2017: EXTENSION OF THE DEVELOPMENT PIPELINE IN BERLIN

H1 2017 RESULTS 24

€400 million1

• f development pipeline identified

86% in Berlin

1 €244 million Group Share

1,980 units

for 133,000 m²

€3,000

average cost per m²

5.4%

average yield on cost

1/3

for lease 60% average value creation target on the first sites under construction

2/3

for sale

Roof extensions (10%) New developments (90%)

FONCIÈRE DES RÉGIONS

CLIENT CENTRIC: OFFER MORE SERVICES

H1 2017 RESULTS 25

> 18 to 30 m² apartments > Full of services > Targets: students, business travellers, seniors > Target rents: €17/m²

Shared apartments

> Furnished rooms and shared spaces > 80+ m² apartments > Full of services > Targets: students, business travellers > Target rents: €19/m²

Furnished apartments

First tests on 600 apartments Increase the return: +50-70% in rents vs traditional units

Hotels in Europe

FONCIÈRE DES RÉGIONS

THE LEADER IN EUROPE WITH A UNIQUE BUSINESS MODEL

H1 2017 RESULTS 27

A global solution to be the preferred partner

• f hotel operators

57 57 55 55 47 47 30 30 26 26 11 11 10 10

Host FDM HPT Apple Hospitality REIT Pandox Hispania Japan Hotel REIT

One of the major global Hotel REITS (ranking in number of rooms under management; ‘000) Lease properties Operating properties Development pipeline

  

Hotel 4* Mercure, Greater Paris

A key partner for its 18 hotel operators

FONCIÈRE DES RÉGIONS

A PERFORMANCE TO BE BOOSTED BY A GROWING EUROPEAN MARKET

H1 2017 RESULTS 28

First positive impacts for Foncière des Régions

Growth in RevPar1 in Europe YTD

• 0.6%
• 0.6%
• 2.9%

+1.9%

2014 2015 2016 H1 2017

Hotels in Europe: a well oriented market

Lease properties Increase in like-for-like rents Variable rents +4.3%

1Revenue Per Room, sources MKG, PWC; preliminary results end-June for France & Germany; at end-May for Spain, Netherlands & Italy

+10% +2% +2% +5% +11%

FONCIÈRE DES RÉGIONS

H1 2017: STARTING THE WORK ON THE HOTEL PORTFOLIO IN SPAIN

H1 2017 RESULTS 29

Q2 2017: strong performances & implementation of our strategy

1 €257 million Group Share, excluding 2 non-strategic hotels which have been preempted; 2 To be closed in Q3; 3 At end-April

Hotel 4* Paseo Del Arte, Madrid

Q1 2017: acquisition of a €514 million hotels portfolio in Barcelona & Madrid1 > 17 hotels 4*-5*, 3,335 rooms > Central locations; >40% Ebitdar margin > Lease contract; 5.4% yield; 6.3% potential

Enhance quality

Acquisition of the 50% remaining stake in AC Forum², Barcelona (for €45 million) 80% in Barcelona & Madrid vs 74% before RevPar YTD3: +11% Asset management on 4 hotels

Increase rents

>+€1 million target in rents Variable components in the rents Like-for-like value H1 2017: +6.8%

FONCIÈRE DES RÉGIONS

H1 2017: EXTRACTING VALUE FROM THE PORTFOLIO IN GERMANY

H1 2017 RESULTS 30

Hotel 4* Park Inn, Alexanderplatz, Berlin

2016: acquisition of a €811 million hotels portfolio in Berlin (>60%), Dresden & Leipzig1 > 9 hotels 4*-5*, 4,131 rooms > Operating properties, 7.7% EBITDA yield

1 €165 million Group Share

2017: extract the value

Strong performances Asset management

> EBITDA YTD: +5.6% > Value since acquisition: +14% like-for-like > Non-core disposals: €29 million in Dresden > Park Inn Alexanderplatz:

• renovation of 650 rooms
• creation of 16 suites

Development pipeline

> 70,000 m² development potential in Alexanderplatz >+4% expected on EBITDA

FONCIÈRE DES RÉGIONS

CLIENT CENTRIC: ACCOMPANY OUR CLIENTS’ EUROPEAN EXPANSION

H1 2017 RESULTS 31

Identify new concepts Provide business solutions to our partners in Europe Paris & Lyon Munich Milan

> Example: the success of our partnership with Meininger with 4 operations in Europe for €120 million Transformation of offices in a 173-room & 820-bed hotel Delivery 2018 First 2 hotels in France: Paris Porte de Vincennes (249-room, 950-bed); Lyon (169-room, 580-bed) Delivery 2019 Transformation of offices in a 131-room & 491-bed hotel Delivery2018

3

H1 2017 results

FONCIÈRE DES RÉGIONS

€614 MILLION GROUP SHARE ACQUISITIONS DURING THE 1ST HALF OF THE YEAR

H1 2017 RESULTS 33

5.4% immediate yield Drivers for growth: Asset management Variable component in the leases 4.0% immediate yield Drivers for growth: Reduce vacancy (4.5% yield post reletting) +35% reversionary potential 5.7% immediate yield Drivers for growth: Asset management Development potential

Germany Residential: Increase the footprint in Berlin

€376 million (€241 million Group Share)

Hotels in Europe: Expansion in Spain and Germany

€613 million (€284 million Group Share)

Italy Offices: Focus on Milan

€165 million (€86 million Group Share)

55% secured during H2 2016

FONCIÈRE DES RÉGIONS

€505 MILLION GROUP SHARE OF DISPOSALS

H1 2017 RESULTS 34

Further disposals to come Already €392 million Group Share (€642 million 100%) secured

7.1% average yield 35 assets

France Offices: Focus on strategic locations

€105 million 6.3% average yield Share of 40% of Telecom Italia portfolio for €618 million

Italy Offices:

• 40% Exposure to Telecom Italia

€657 million (€343 million Group Share)

Exit from non-strategic activities:

€61 million (€38 million Group Share) in France Residential 1.2% average yield Only €371 million (€226 million) of French Residential assets left

FONCIÈRE DES RÉGIONS

+3.2% LIKE-FOR-LIKE IN VALUE AT END-JUNE 2017

H1 2017 RESULTS 35

H1 2017 deliveries: France Offices Milan ex-TI: Italy Offices Berlin: Germany Residential Spanish portfolio: Hotels

(€ million, excluding duties) Value H1 2017 100% Value H1 2017 Group Share Like-for-like change Yield 2016 Yield H1 2017 % of portfolio Offices - France 6,332 5,439 +2.6% 5.7% 5.4% 43% Offices - Italy 4,304 1,924 +1.2% 5.7% 5.5% 15% Residential Germany 4,690 2,911 +7.8% 5.4% 5.0% 23% Hotels 5,180 1,965 +1.9% 5.7% 5.7% 16% Non strategic 485 285

• 0.4%

n.a. n.a. 2% Portfolio 20,993 12,557 +3.2% 5.6% 5.3% 100%

Over-performance of our strategic moves

Like-for-like growth in H1

+23% +3% +9% +7%

FONCIÈRE DES RÉGIONS

ACTIVE FINANCING ACTIVITY FOR A STRONGER DEBT STRUCTURE

H1 2017 RESULTS 36

Group share data

Successful liability management

> New €500 million bond with a10-year maturity (2027) & 1.5% coupon (85 bps margin above swap rate) > Purchase of €273 million of its 1.75% note due in 2021 (4 years)

42.9% Lower LTV Longer maturity €400 million capital increase in January 2017

vs 44.6% end-2016

5.8-year

vs 5.7-year end-2016

Better diversification

40% 15% 40% 4%

Investor mortgages Bonds Corporate credits Bank mortgage loans

55% unsecured debt

Lower cost

• f debt

1.95%

vs 2.21% end-2016

New Investment Grade rating in Italy

> Beni Stabili, rated BBB-, stable outlook by S&P (FdR S&P Rating : BBB, Stable outlook) > Completes the transformation of the company in Italy since 2015

Strong financing activity

> €2.0 billion of new financings (€1.2 billion Group share) with 8-year average maturity

FONCIÈRE DES RÉGIONS

REGULAR INCREASE IN EPRA NAV

H1 2017 RESULTS 37

€6.6 billion €88.4/share €6.0 billion €80.5/share +1.9% +9.5% +4.3% +12.1%

65.0 68.8 77.2 80.5 74.5 79.4 86.7 88.4

2015 2016 H1 2017 2014

+19% Since 2014 +24% Since 2014 EPRA NAV EPRA Triple Net NAV vs end-2016 Growth in NAV in € per share

FONCIÈRE DES RÉGIONS

H1 2017 REVENUES : +2.8% INCREASE

H1 2017 RESULTS 38

€million Rental income 100% Rental income Group Share Change Change on like- for-like basis Occupancy rate Residual firm terms

• f leases (in years)

Offices - France 135.7 123.0

• 2.1%

+0.9% 95.3% 5.2 Offices - Italy 101.9 52.7 +6.3% +1.5% 94.8% 6.9

Of which Telecom Italia offices 49.1 25.1 +1.2% +0.0% 100% 13.4 Of which portfolio ex-Telecom Italia 52.8 27.6 +11.5% +2.9% 92.1% 3.5

Residential Germany 112.9 69.9 +7.1% +4.0% 98.4% n.a. Hotels 102.9 45.7 +10.2% +1.9% 100% 10.4 Other (French Resi.) 6.1 3.7

• 25.6%

n.a. n.a. n.a. Total 459.4 295.1 +2.8% +1.9% 96.6% 6.6

1 2 3 5 1

• Renewals: +0.2%; Indexation: +0.3%; Occupancy rate: +0.4%

2 5

• Increase in occupancy rate
• Renewals: +0.8%; Indexation:+0.7%; Occupancy rate: +0.3%

4 3

• Acquisitions in Berlin

4

• Acquisitions in Barcelona & Madrid

FONCIÈRE DES RÉGIONS

STRONG INCREASE IN RECURRING NET INCOME: +12.2%

H1 2017 RESULTS

Increase in asset management fees Less property development fees Lower cost of debt Revenues from Hotel operating properties

39

(€ million) Group share H1 2016 H1 2017 Change % Net rental income 264,5 271,8 7,3 2,8% Net operating costs

• 32,3
• 29,3

3,0

• 9,3%

Income from other activities 7,0 3,2

• 3,8
• 54,3%

Cost of net financial debt

• 66,0
• 55,9

10,1

• 15,3%

Recurring net income from equity affiliates 5,0 10,1 5,1 102,0% Recurring tax

• 1,6
• 1,6

0,0 0,0% Recurring net income 176,6 198,3 21,7 12,2% Fair value adjustment on real estate assets 307,2 350,3 43,1 14,0% Fair value adjustment on financial instruments

• 18,7

30,4 49,1 n.a. Net Result on disposals 1,1

• 0,9
• 2,0

n.a Other

• 42,4
• 51,0
• 6,6

n.a. Non-recurring tax

• 12,7
• 38,0
• 25,3

n.a. Profits or losses on discontinued operations

• 0,1

0,0 0,1 n.a Net income 410,9 489,0 78,1 19,0%

1 2 3 4 3 4 1 2

FONCIÈRE DES RÉGIONS

RECURRING NET INCOME PER SHARE: +2.3%

H1 2017 RESULTS

Lower leverage Increase in rents Positive impact of investments Lower average cost of debt

40

€2.64/share H1 2016 €176.6 million €2.71/share H1 2017 €198.3 million

Average number of fully diluted shares: 73,292,080 for H1 2017; 66,793,295 for H1 2016

+2.3%

H1 2017 RESULTS 41

4

Outlook

FONCIÈRE DES RÉGIONS 42 H1 2017 RESULTS

OUTLOOK 2017: CONTINUE TO DELIVER ON OUR GROWTH STRATEGY

Favorable letting markets in all our products 2017 Recurring Net Income growth in €million >7%

(vs >5%)

Large development capacity

€4.1 billion development pipeline New projects to be launched in H2

Reinforcement in the best areas A good start to the year for the growth in 2017 … … and for tomorrow’s growth

Silex2, Lyon

Increase in the guidance:

FONCIÈRE DES RÉGIONS

FINANCIAL AGENDA

H1 2017 RESULTS 43

Q3 2017 Revenue: 26 October 2017

Appendix

FONCIÈRE DES RÉGIONS

APPENDIX CONTENTS

H1 2017 RESULTS 45

> INVESTMENTS & DISPOSALS > PIPELINE: COMMITTED AND MANAGED PROJECTS > GEOGRAPHICAL BREAKDOWN OF OUR ACTIVITIES > ORGANIZATION STRUCTURE > OPERATING INDICATORS SINCE 2009 > GREATER PARIS & MILAN OFFICE MARKETS

Appendix Investments & Disposals

FONCIÈRE DES RÉGIONS

H1 2017 INVESTMENTS: €614 MILLION GROUP SHARE IN STRATEGIC LOCATIONS

H1 2017 RESULTS 47

Increased exposure in Paris, Berlin and Milan

Investments H1 2017 realized Investments H1 2017 secured (€ million, including duties) Capex Capex Acquisitions Acquisitions Yield Acquisitions Acquisitions Yield 100% Group Share 100% Group Share 100% Group Share Offices - France 83 68 3 3 6.7% n/a Offices - Italy 31 16 165 86 5.5%* 29 15 8.9% Germany Residential 376 241 4.0% 148 96 3.9% Hotels in Europe 44 11 613 284 5.4% 71 36 9.1% Total 159 95 1,157 614 4.9% 248 146 5.7%

* Potential yield on acquisition after delivery of Principe Amedeo, under development

FONCIÈRE DES RÉGIONS

H1 2017 DISPOSALS: €505 MILLION GROUP SHARE OF DISPOSALS

H1 2017 RESULTS 48

Only 3% non strategic activities remaining France Offices:

Less small regional offices

German Residential:

Less non core NRW

Hotels in Europe:

Less Retail

Non strategic:

Less French Residential

Italy Offices:

Less Telecom Italia (€ million) Disposals New New Yield Total Realized Disposals

(agreements as

disposals agreements Total Margin vs

• f end of 2015

closed)

2017 2017 2017 2016 value 1 2 3 2 + 3 = 1 + 2 Offices - France 100 % 69 36 156 192 5.5% 7.0% 105 Group Share 69 36 110 147 6.2% 7.1% 105 Offices - Italy 100 % 39 120 120 2.8% 4.0% 39 Group Share 343 63 63 2.8% 4.0% 343 Residential - Germany 100% 12 12 210 222 15.7% 6.0% 24 Group Share 7 7 125 132 16.1% 6.0% 14 Hotels in Europe 100 % 2 16 88 104 3.8% 6.1% 18 Group Share 1 4 39 43 3.9% 6.3% 5 Others 100 % 34 27 68 95

• 0.1%

2.3% 61 Group Share 21 17 55 71

• 1.4%

3.1% 38 Total asset disposals 100 % 156 92 642 734 6.9% 5.5% 248 Group Share 441 64 392 456 6.8% 5.7% 505

Appendix Committed and managed pipeline

FONCIÈRE DES RÉGIONS

COMMITTED PIPELINE: €1.1 BILLION AT 100% (€603 MILLION GS) - 1/3

50 H1 2017 RESULTS

Projets in Group share, €million Surface 1 (m²) Target rent (€/m²/year) Pre-leased (%) Total Budget 2 Target Yield 3 Progress Capex to be invested Total France Offices 99,600 m² 377 46% 339 6.0% 58% 78 Total Italy Offices 91,000 m² 302 58% 174 5.9% 45% 83 Total Germany Residential 4,130 m² na na 7 5.6% na na Total Hotels in Europe 2,032 rooms na 100% 84 6.2% 58% 26

Total na 57% 603 6.0% 54% 187

1100% usable area excl. car park 2 Total cost including land value & financial costs 3 Yield on total rents including car parks, restaurants, etc.

FONCIÈRE DES RÉGIONS

COMMITTED PIPELINE: €1.1 BILLION AT 100% (€603 MILLION GS) - 2/3

51

1100% usable area excl. car park 2 Total cost including land value & financial costs 3 Yield on total rents including car parks, restaurants, etc. 4 Under final negotiation

H1 2017 RESULTS

Projects in Group share, €million Location Project Surface 1 (m²) Target rent (€/m²/year) Pre-leased (%) Total Budget 2 Target Yield 3 Progress Capex to be invested

Offices France

Euromed Center - Bureaux Floreal (FdR share 50%) 4 Marseille Construction 13,400 m² 265 100% 18 >7% 87% 2 Edo Issy Les Moulineaux

• Greater Paris

Regeneration- Extension 10,800 m² 430 100% 83 6.0% 80% 8 ENEDIS - New Saint Charles Reims Construction 10,300 m² 141 100% 19 >7% 55% 7 Art&Co Paris Régénération 13,400 m² 520 5% 130 5.0% 53% 12 Total deliveries 2017 47,900 m² 444 50% 250 5.7% 65% 30 Hélios Lille Construction 9,000 m² 160 100% 21 >7% 24% 15 Riverside Toulouse Construction 11,000 m² 195 0% 32 7.0% 45% 15 Ilot Armagnac (FdR share 35%) Bordeaux Construction 31,700 m² 200 29% 35 6.5% 47% 18 Total deliveries 2018 51,700 m² 189 35% 89 6.8% 41% 48 Total France Offices 99,600 m² 377 46% 339 6.0% 58% 78

Offices italy

Via Cernaia Milan Regeneration 8,300 m² 460 100% 30 5.4% 65% 5 Corso Ferrucci Turin Regeneration 45,600 m² 130 29% 46 5.7% 55% 16 Total deliveries 2017 53,900 m² 261 57% 76 5.6% 59% 21 Via Colonna Milan Regeneration 3,500 m² 265 50% 9 5.1% 30% 4 Milan, Piazza Monte Titano Milan Regeneration 6,000 m² 190 100% 12 5.0% 25% 7 Symbiosis A+B Milan Construction 20,600 m² 305 85% 48 7.1% 40% 38 Milan, P. Amedeo Milan Regeneration 7,000 m² 460 0% 30 5.2% 10% 13 Total deliveries 2018 37,100 m² 334 58% 98 6.1% 28% 62 Total Italy Offices 91,000 m² 302 58% 174 5.9% 42% 83

FONCIÈRE DES RÉGIONS

COMMITTED PIPELINE: €1.1 BILLION AT 100% (€603 MILLION GS) - 3/3

52 H1 2017 RESULTS

Projects in Group share, €million Location Project Surface 1 (m²) Target rent (€/m²/year) Pre-leased (%) Total Budget 2 Target Yield 3 Progress Capex to be invested Germany Residential Konstanzer Berlin Extension 400 m² na na 1 5.8% na na Total deliveries 2018 400 m² na na 1 5.8% na na Genter Strasse 63 Berlin Construction 1,500 m² na na 2 5.7% na na Birkbuschstrasse / Kühlbornweg Berlin Extension 810 m² na na 2 5.2% na na Breisgauer Strasse Berlin Extension 1,420 m² na na 2 5.8% na na Total deliveries 2019 3,730 m² na na 6 5.6% na na Total Germany Residential 4,130 m² na na 7 5.6% na na Hotels in Europe B&B Lyon Lyon - France Construction 113 rooms na 100% 2 5.5% 79% Club Med Samoëns France Construction 420 rooms na 100% 12 6.0% 80% 2 B&B Berlin Berlin - Germany Construction 140 rooms na 100% 6 7.0% 45% 3 B&B Nanterre Nanterre - Greater Paris Construction 150 rooms na 100% 3 6.2% 91% Total deliveries 2017 823 rooms na 100% 23 6.2% 73% 6 B&B Chatenay Malabry Châtenay Malabry - Greater Paris Construction 255 rooms na 100% 2 6.3% 42% 1 Motel One Porte Dorée Paris Construction 255 rooms na 100% 9 6.2% 81% 2 Meininger Munich Munich - Germany Construction 173 rooms na 100% 15 6.4% 73% 4 Total deliveries 2018 683 rooms na 100% 26 6.3% 73% 7 Meininger Porte de Vincennes Paris Construction 249 rooms na 100% 23 6.2% 52% 11 B&B Bagnolet Paris Construction 108 rooms na 100% 2 6.3% 15% 2 Meininger Lyon Zimmermann Lyon - France Construction 169 rooms na 100% 9 6.1% 0% Total deliveries 2019 and beyond 526 rooms na 100% 35 6.2% 36% 13 Total Hotels in Europe 2,032 rooms na 100% 84 6.2% 58% 26

1100% usable area excl. car park 2 Total cost including land value & financial costs 3 Yield on total rents including car parks, restaurants, etc.

FONCIÈRE DES RÉGIONS

MANAGED PIPELINE : €3.0 BILLION AT 100% (€2.6 BILLION GROUP SHARE)

53

1 100% usable area excl. car park

H1 2017 RESULTS

Projects Location Project Surface 1 (m²) Delivery timeframe Offices France

Rueil Lesseps Rueil-Malmaison - Greater Paris Regeneration-Extension 43,000 m² >2020 Cap 18 Paris Construction 50,000 m² >2020 Canopée Meudon - Greater Paris Construction 55,000 m² 2020 Montpellier Majoria Montpellier Construction 60,000 m² 2018-2020 Silex II Lyon Regeneration-Extension 31,000 m² 2020 Omega Levallois-Perret - Greater Paris Regeneration-Extension 21,500 m² >2020 Citroën PSA - Arago Paris Regeneration 27,200 m² >2020 Anjou Paris Regeneration 11,000 m² >2020 Opale Meudon - Greater Paris Construction 28,500 m² 2019 Avenue de la Marne Montrouge - Greater Paris Construction 25,300 m² 2020 Philippe Auguste Paris Regeneration 13,200 m² >2020 Cité Numérique Bordeaux Regeneration-Extension 18,100 m² 2,018 Campus New Vélizy Extension (FdR share 50%) Vélizy - Greater Paris Construction 14,000 m² 2020 DS Campus Extension 2 (FdR share 50%) Vélizy - Greater Paris Construction 11,000 m² >2020 Gobelins Paris Regeneration 4,900 m² >2020 ENEDIS Angers Angers Construction 4,700 m² 2019 Total Offices - France 418,400 m²

Italy

Via Schievano Milan Restructuration 31,800 m² 2019 Symbiosis (other blocks) Milan Construction 101,500 m² 2022 Total Offices - Italy 133,000 m² Residential Germany Berlin Extensions & Constructions c.130,000 m² Total 681,700 m²

Appendix Geographical breakdown of our activities

FONCIÈRE DES RÉGIONS

FRANCE OFFICES BREAKDOWN

55

A €5.4 billion portfolio in Group Share (€6.3 billion at 100%) at end-June 2017 The strategic locations in Paris, the Inner Ring and the Major regional cities represent 93% of the portfolio

7% Paris North-East 18 % Paris Center West 14% Major Regional Cities 10% Paris South 26% Western Crescent and La Défense 18% Inner Ring 2% Outer Ring 5% Regions

H1 2017 RESULTS

FONCIÈRE DES RÉGIONS

ITALY OFFICES BREAKDOWN

56

A €1.9 billion in Group Share (€4.3 billion at 100%) at end-June 2017 Milan represents 62% of the portfolio with an objective of 80% at 2020

9% Other 62% Milan 19% Northern of Italy 6% Turin 5% Rome

H1 2017 RESULTS

FONCIÈRE DES RÉGIONS

GERMANY RESIDENTIAL BREAKDOWN

57

A €2.9 billion portfolio in Group share (€4.7 billion at 100%) at end-June-2017

52% Berlin 7% Dresden & Leipzig

10% Essen (NRW)

9% Hamburg

7% Duisburg (NRW) 4% Müllheim (NRW) 5% Oberhausen (NRW) 6% Others (NRW)

H1 2017 RESULTS

FdR : A €2.4 billion1 Berlin portfolio focused on the best locations

1€1.5 billion Group Share

Prime location Good location Average location Basic location

Green area

Source: Engel & Völkers Residential

73% 5% 22%

FONCIÈRE DES RÉGIONS

HOTEL REAL ESTATE PORTFOLIO BREAKDOWN

58

A €1.7 billion hotel portfolio in Group share1 (€4.6 billion at 100%) at end-June 2017

45 % France 23% Germany

11% Belgium 17% Spain 4% Others

H1 2017 RESULTS

47 % Midscale 37% Economic

16% Upscale

1Hotels only

Appendix Organization structure

FONCIÈRE DES RÉGIONS

ORGANIZATION CHART AT END-JUNE 2017

60

Foncière des Régions France Offices Italy Offices

(Beni Stabili)

German Residential

(Immeo)

Operating hotel properties

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

52.2% 61.0% 50.0% 40.7%

Consolidated subsidiaries Equity affiliates

French Residential

(FDL)

61.3%

H1 2017 RESULTS

Appendix Operating indicators since 2009

FONCIÈRE DES RÉGIONS

A STRATEGY STRENGTHENED BY SOUND INDICATORS

Group share data

62

Historically high occupancy rates

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

96.6%

2015 97.1% 2016 96.3% 96.7% H1 2017

Rent: at like-for-like scope Change in LFL vs N-1

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

+1.9%

2014 2015 +0.2% -0.1% +0.2% 2016 H1 2017

> Ability to keep the tenant in place > Occupancy rate track record in the development pipeline > Anticipate disposals > Partnership strategy > Lease maturity in Hotels: 10.4 years > Stable occupancy rate > Low inflation environment > Improving rental markets > Dynamic investment market > Asset management and development pipeline value creation

Firm lease expirations as % of annualised rental income Commercial portfolio (77% of total rents Group Share)

Record firm term of leases

2009 5.8 6.1 6.0 2010 2011 2012 5.5 2013 5.8 2014

6.6

2015 5.8 7.3 7.2 2016 H1 2017

H1 2017 RESULTS

H1 2017

Growth in value Change in LFL vs N-1

2009 +5.3% +1.3% 2010 2011 2012

• 0.3% +0.5%

2013

• 3.6%

2014

+4.8%

2015 +2.1% +4.4% 2016

+2.9%

Appendix Grand Paris & Milan

• ffice markets

FONCIÈRE DES RÉGIONS

PARIS & GRAND PARIS OFFICE MARKET

64 Sources: CBRE, Immostat

Paris QCA Paris Ouest Paris Sud Paris Nord Est La Défense Péri-Défense Vélizy-Meudon Neuilly Levallois Boucle Sud Boucle Nord 1re couronne Nord 1re couronne Est 1re couronne Sud 2e couronne Sud RER B RER D T2 RER A RER C RER C M2 M6 M1 M14 Ligne 17 Ligne 16 Ligne 15 Ligne 18 Ligne 15

Paris CBD

La Défense Rueil-Malmaison Issy-les-Moulineaux Vélizy-Meudon Saint-Denis Gennevilliers Asnières Nanterre Neuilly Suresnes Saint-Cloud Boulogne- Billancourt Chatenay- Malabry Antony Rungis Orly Cachan Clamart Montrouge Arcueil Ivry-sur-Seine Charenton-Le-Pont Vincennes Bagnolet Aubervilliers Clichy

Key figures

> 56 million m² of offices in Paris Region, the largest market in Europe 17 million m² in Paris; 3.3 million m² in La Défense; 9 million m² in Western Crescent; 1.4 million m² in the Inner ring > Take-up 1.2 million m² in H1 2017 (+4% YoY) 496,000 m² in Paris; 76,000 m² in La Défense ; 310,000 m² in the Western Crescent; 165,000 m² in the Inner ring > Vacancy rate 6.5% 3.1% in Paris; 8.6% in la Défense; 11.6% in the Western Crescent; 8.6% in the Inner ring

H1 2017 RESULTS

FONCIÈRE DES RÉGIONS

PARIS & GRAND PARIS OFFICE MARKET

65

€23 bn invested in transportation 3rd airport hub in the world

Modernization and adaption of the existing network Creation of a complementary transport network: The Grand Paris Express An ambitious project in several steps until 2030 Reinforcement of the main transport hubs in Greater Paris

H1 2017 RESULTS

FONCIÈRE DES RÉGIONS

MILAN OFFICE MARKET

H1 2017 RESULTS 66

A €2.3 billion1 Milan portfolio to benefit from an improving market

Sources: CBRE, C&W; 1 €1.2 billion Group Share

Rented portfolio Developments Acquisitions closed in 1H 2017

> H1 2017: take-up 209,000 m² (+29% YoY) % of Grade A buildings: 65% > Vacancy rate 10.6% % of Grade A buildings: 25% of the vacant stock

A c.12 million m² office market

1.5 million m² (12.5%) in the CBD; 1.2 million m² in (10%) Porta Nuova; 2.3 million m² (19%) in the semi-centre

29% Periphery 11% Center & Semi Center 60% CBD & Porta Nuova

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

H1 2017 RESULTS