h1 2016 results: a rewarding strategy … · portfolio €3.7 billion (100%) €1.6 billion (gs) h1...

H1 2016 Results:

A rewarding strategy

21 July 2016

CONTENTS

FONCIÈRE DES RÉGIONS 2

>1. STRATEGIC POSITIONING

>2. REAL ESTATE ACTIVITY

>3. FINANCIAL RESULTS

>4. OUTLOOK

>APPENDIX

3

1

Strategic positioning

EDO, Greater Paris

FONCIÈRE DES RÉGIONS

A €18.3 billion portfolio at end-June 2016 managed by 700 people in 3 countries (€11.7 billion Group Share)

A UNIQUE EUROPEAN PLAYER

4

STRATEGY

An integrated operator in the largest continental European markets

Italy Offices1

(18%)

German Residential1

(20%)

Hotel in Europe1

(14%)

France Offices1

(44%)

Paris

Berlin

Milan

A unique business model

1 Group Share

H1 2016 RESULTS

We are diversified and

we are specialists

We offer resilient cash-flows

and alsostrong value creation

drivers


STRATEGY

H1 2016 ACHIEVEMENTS: STRATEGIC MILESTONES

H1 2016 RESULTS

Strengthening in our strategic cities

€1.8 bn of investments secured; €1.1 bn Group Share

80% in Paris, Berlin & Milan

Letting successes in our pipeline Value creation partnerships

New agreements with Orange, EDF, Cisco & Thales

34,000 m² pre-let in France and Italy


STRATEGY

H1 2016 RESULTS: SUCCESS OF THE STRATEGY

H1 2016 RESULTS

Good operating performances

1 Firm lease expirations as % of annualised rental income; commercial portfolio (76% of total rents GS); 2 vs June-2015

Record lease

maturity1

7.5years

Increased

occupancy rate

96.7% 0.0%

Stable rents

like-for-like

+3.2%

Growth in value

like-for-like

Growth in financial results

> Rents

> Values: yield compressions

• No inflation

• Offices: slowly improving markets

• German Residential: strong growth

• Hotels: impacts of the terrorist attacks

Recurring Net Income€2.64/share

+1.0%

EPRA NAV€82.4/share

+8.7%2

€176.6 m+4.2%

€5,652 m+11.4%2

> Asset management driving the performance

> Value creation developments

> Increased exposure in growing markets

Environment

Operating successes

+0.4 pt +0.2 year

7

2

Real Estate activity

> France Offices

> Italy Offices

> German Residential

> Hotel Real Estate

Campus Eiffage – Greater Paris

8

France Offices

Steel, Paris


FRANCE OFFICES

H1 2016 ACHIEVEMENTS: SOUND OPERATING INDICATORS

Portfolio

€6.0 billion (100%)

€5.2 billion (GS)

H1 2016 RESULTS

95.8%(stable)

Operating performance

+20% like-for-like for the

committed pipeline

5.9-yearFirm lease maturity

(+0.5 year)

Resistance in rents-0.3%

like-for-like

Strong growth in value+4.4%

like-for-like

Thaïs, Levallois-Perret - Greater Paris

High occupancy rate

Long-term leases


FRANCE OFFICES

H1 2016 ACHIEVEMENTS: ACTIVE LETTING ACTIVITY

H1 2016 RESULTS

Secure the rents

> Lease renewals: €61 million (€54 million Group Share); 20% of France Offices rents

> 430,812 m²

> +0.9% vs passing rents

Optimize value creation through anticipation and monitoring

Atlantis - Greater Paris (11,300 m²)Lease extension with Cisco

+5-year to 6-year firm

Strengthen the occupancy

> €3.6 million Group Share of new lettings vs €1.1 million of departures

> 8.1 years average firm lease maturity for the new lettings

Success of the development pipeline

> 15,000 m² pre-let; €6.0 million of rents (€5.9 million Group Share)

> 8.6 years average firm lease maturity

Portfolio

€6.0 billion (100%)

€5.2 billion (GS)


FRANCE OFFICES

H1 2016 ACHIEVEMENTS: 2 NEW AGREEMENTS WITH OUR PARTNERS

H1 2016 RESULTS

Secure the rents5.9-year maturity for Orange portfolio (+0.8 year)

Create value

Reduce non core assets

22% of Orange rents €20 million of rents7% of France Offices

69

Lease extensions (76%)+5 years to 9 years; Incentives: 0.5 month/year

55

Flexibility (13%)-1 year to 2.5 years

6

Buybacks by Orange (11%)8

Secure the rents5.2-year maturity for EDF portfolio (+3.5 years)

Create value

Improve liquidity for non core assets

assets17

Lease renegotiations (72%)+4.1 years in lease maturities; Flat rents; €16 million of capex

14

Turnkey projects (28%)Avignon, Nancy, Reims€46 million investment7% yield on cost; 11-year leases

3

assets

€17 million of rents 6% of France Offices

Portfolio

€6.0 billion (100%)

€5.2 billion (GS)

+5.6% in like-for-like value in H1 2016 on average


FRANCE OFFICES

H1 2016: INVESTMENT IN STRATEGIC LOCATIONS AND VALUE CREATION

H1 2016 RESULTS

Development pipeline: major milestones

> 13 deliveries in 2016 and 2017 for 116,860 m² and €583 million (€474 million Group Share); 50% prelet (92% for 2016)

Letting successEDO - Greater Paris

Letting successSilex1 - Lyon

100% prelet to a large corporateIssy-les-Moulineaux; 10,760 m²

Delivery in Q2 2017

26% prelet to BNP ParibasLyon-CBD; 10,600 m²

Delivery in Q1 2017

A €129 million acquisition in Rueil-Malmaison, a dynamic office districts of Greater Paris

DeliveriesEuromed - Marseille

Calypso & Hotel Golden Tulip9,600 m² of offices; 30% let

4* hotel of 210 rooms let to Louvre Hotel Group

3 buildings38,000 m²

100% let to Vinci

Value creation

> €10 million rents

> (7.8% yield)

> Nearby public

transports

> Will reload the development

pipeline in 4 years

Portfolio

€6.0 billion (100%)

€5.2 billion (GS)

13

Italy Offices

Office – Milan


ITALY OFFICES

A LEADING PROPERTY PLAYER IN ITALY

Portfolio

€4.0 billion (100%)

€2.1 billion (GS)

H1 2016 RESULTS

Occupancy rate

95.1%

Firm lease maturity 9.5-year

Rents Offices ex-TI

+2.6%Like-for-like

Value Offices ex-TI

+3.1%Like-for-like

A €4.0 billion portfolio (€2.1 billion Group Share)

> Through Beni Stabili, subsidiary at 52.2% of Foncière des Régions vs 48.5% at end-2015

> Acquisition of 85.2 million shares > €52 million investment, 27% discount on 2015 EPRA NAV

New General Manager: Alexei Dal Pastro

> Ex-Head of Fund & Asset Management and member of the management committee of Prelios SGR (c. €4 bn asset

under management)

Operating performance: first results of the new strategy

Total portfolio:

-0.8%

Total portfolio+1.5%

Strategic guidelines

Accelerate Real Estate

strategy

Increase profitability

Strengthen the team

vs. 9.7-year

2015

vs. 92.8% 2015


93.5%

15

ITALY OFFICES

H1 2016 RENTAL ACTIVITY: A SITUATION TURNAROUND

H1 2016 RESULTS

June-2016End-2015

87.4%

1.3pt1

Total portfolio

90.6%

Via Messina, Milan6,530 m² let to Widiba

23 new contracts signed for 19,348 m²

> €5.1 million of new rents (€2.7 million Group Share)

1 Via Colonna & Monte Titano are as of June 2016 in development

Improved occupancy rate

0.7pt1

95.1%

86.1%92.8%

+3.2pts+1.6pt

Portfolio

€4.0 billion (100%)

€2.1 billion (GS)

14 re-lettings for 17,196 m²

> €5.9 million of rents (€3.1 million Group Share)

Portfolio ex-TI

June-2016End-2015


ITALY OFFICES

H1 2016 ACHIEVEMENTS: MEANINGFUL PROGRESSES

H1 2016 RESULTS

Development pipeline: first pre-letting in Symbiosis

> A Milestone for a new innovative office district in Milan

Symbiosis, Milan19,000 m² of offices to be delivered in October 2018

€86 m Investment

New Fastweb

headquarter

16,000 m²Pre-let

10.5-year firm

> 6.8% yield on cost > + option for the remaining 3,000 m²

Portfolio

€4.0 billion (100%)

€2.1 billion (GS)

2-year vacant asset plan: strong successes

> €72 million1 (€37 million Group Share) capex

> €19 million expected extra cash-flows (€10 million Group Share)

€4.6 million

of rents

already secured

1 €60 million initial capex plan announced in 2015 with, in addition, Cernaia project, in Milan


ITALY OFFICES

H2 2016: €85 MILLION OF ACQUISITIONS SECURED IN MILAN

H1 2016 RESULTS

Via Messina towers A & C

> Acquisition of 2 towers for 11,800 m²

> FdR now owns the whole 25,000 m² complex

> Good location in front of subway station Cernisio

> 1 B&B hotel (19-year lease); 6,539 m² of offices (61% let)

> €26.8 million investment (€14 million Group Share)

> 6.8% potential yield

TOWER ANEW ACQUISITION

TOWER D

TOWER B

Target 80% of portfolio in Milan in 2020 vs 51% in June-2016

Via Scarsellini

> Good office location, 4’ walk to the subway station Affori Centro

> 21,637 m² of offices built in 2010

> 82% let for 6.5 years, mainly to Aviva + 2-year guarantee on vacant space

> €58 million investment (€29 million Group Share)

> 6.4% yield

CBD

Porta Nuova

Via Messina

Via Scarsellini

Via Messina

TOWER CNEW ACQUISITION

Portfolio

€4.0 billion (100%)

€2.1 billion (GS)

18

German Residential

Residential – Berlin


GERMAN RESIDENTIAL

H1 2016 ACHIEVEMENTS: QUALITATIVE ASSET ROTATION

Portfolio

€3.8 billion (100%)

€2.3 billion (GS)

H1 2016 RESULTS

€190 million in disposals

> €116 million Group Share

Continuing to strengthen the positioning in Berlin

A key property player in its market with a niche investment strategy

> €3.8 billion portfolio (€2.3 billion Group Share)

> Through Immeo, private subsidiary at 61.0% of Foncière des Régions

> Focus investments in prime and city-center properties, mainly in Berlin

47%1

8%139%1

7%1

Berlinvs 40% at end-2015

North Rhine-Westphalia (NRW)

vs 46% at end-2015Dresden & Leipzig

Hamburg€260 million in acquisitions

> €182 million Group Share

1 Geographic breakdown at end-June 2016


GERMAN RESIDENTIAL

SUCCESSFUL INVESTMENT ACTIVITY

Portfolio

€3.8 billion (100%)

€2.3 billion (GS)

H1 2016 RESULTS

2 portfolios mainly in Berlin city center

> €165 million and 945 fully renovated housing units (86% of the

portfolio) in Mitte, Friedrichshain, Prenzlauerberg and Postdam

> €18 million and 71 housing units (73% of the portfolio) mainly in

Mitte and Steglitz-Zehlendorf

A real estate complex in Mitte district (Fischerinsel 12)

> €76.4 million

> 117 housing units

> 10,700 m² of offices and retail

> 238-room 4-star Novotel hotel

1 €182 million Group Share

29%

15%

10%

2%

2%

41%

Yield

4.9%

Rent

Reversionary potential

+40%

Investment

€260m1

Focus on the best districtsGeographic breakdown by district of H1 2016 investments in Berlin

(source: Engel & Völkers Residential)

Prime location

Good location

Average location

Basic location

Green area


GERMAN RESIDENTIAL

H1 2016 ACHIEVEMENTS: STRONG OPERATING PERFORMANCES

H1 2016 RESULTS

Rents like-for-like

+2.9%

Values like-for-like

+3.1%

Mainly driven by re-lettings Superior growth in strategic locations

Portfolio

€3.8 billion (100%)

€2.3 billion (GS)

Berlin

+5.3%

Dresden

& Leipzig

+3.1%

Hamburg

+2.0%

NRW

+2.0%

Berlin

+4.0%

Dresden

& Leipzig

+4.0%

Hamburg

+3.6%

NRW

+2.1%


GERMAN RESIDENTIAL

SIGNIFICANT GROWTH POTENTIAL REMAINING

H1 2016 RESULTS

Sound economic and demographic fundamentals

> Support for further market rental growth

Berlin+30-35%

Large rental growth potential in our portfolio

Dresden & Leipzig

+20-25%

Hamburg+25-30%

NRW+10%

Portfolio

€3.8 billion (100%)

€2.3 billion (GS)

23

Hotel Real Estate in Europe

AccorHotels – Greater Paris


HOTEL REAL ESTATE

LEADER IN EUROPEAN HOTEL REAL ESTATE

Portfolio

€3.7 billion (100%)

€1.6 billion (GS)

H1 2016 RESULTS

Operating performances

A €3.7 billion portfolio (€1.6 billion Group Share)

> Through FDM, subsidiary at 49.6% of Foncière des Régions vs 43.1% at end-2015

> Acquisition of 6.5% of FDM shares in exchange for FdR new shares (at 2015 EPRA NAV parity)

Rents like-for-like

-2.1%

Values like-for-like

+2.8%

> Effects of the terrorist attacks in Paris and Brussels

> Variable rents (AccorHotels): -4.8%

> Other rents (indexed): +0.2%

• Paris: -14%

• Regions:+4%

Hotel investment properties

+1.0%

Hotel operating properties

+7.0%

Healthcare

Margin on selling price

+25%


HOTEL REAL ESTATE

TWO INVESTMENT MODES = TWO VEHICLES

1st

shareholder

> €3.4 billion at mid-2016

(€1.5 billion Group Share FdR)

> €285 million at mid-2016

(€58 million Group Share FdR)

> €1.1 billion post acquisitions

(€210 million Group Share FdR)

Foncière des Murs> Foncière des Régions

(49.6%, limited partner)> Rents> Investment properties

(Real Estate only)

> Foncière des Murs

(40.8%)> EBITDA> Operating properties

(Real Estate & Business)

Investment modes

RevenuePortfolio

FDM Management

Natural ally of operators25 brands; 6 European countries

Couvent des Minimes, LillePark inn, Berlin

H1 2016 RESULTS

Portfolio

€3.7 billion (100%)

€1.6 billion (GS)


HOTEL REAL ESTATE

H1 2016 ACHIEVEMENTS: €1.1 BILLION1 ACQUISITIONS SECURED

H1 2016 RESULTS

Hotel operating properties: growth of business with 2 portfolio acquisitions for €936 million (€190 million Group Share)

1 €259 million Group Share

€811 million (€164 Group Share); August 20169 hotels (4 to 5-star) in Berlin (60%), Dresden & Leipzig

18,000 m² of retail70,000 m² land bank in Alexanderplatz in Berlin

Portfolio

€3.7 billion (100%)

€1.6 billion (GS)

Acquisition of an iconic portfolio in Germany

€125 million (€25 Group Share); April 20169 hotels (3 to 5-star)

Lille (63%), Rouen (18%), Le Touquet and Bruges

Acquisition of exceptional hotels in France

Hotel investment properties: €144 million (€69 million Group Share) acquisitions in Spain and Germany


HOTEL REAL ESTATE

PORTFOLIO: BETTER QUALITY & HIGHER GROWTH PROSPECT

H1 2016 RESULTS

2016 post acquisitions &

disposals signed

2014

More European cities

% in Europe ex-France

48% 39%

17% 38%

3% 23%More Germany

% in Germany

More hotel operators

% of AccorHotels

Portfolio

€3.7 billion (100%)

€1.6 billion (GS)

Rely on dynamic asset rotation to comfort our European leadership

28

3

Financial results

Euromed Center, Marseille


INCREASE IN THE COMMITTED PIPELINE

29

FINANCIAL RESULTS

H1 2016 RESULTS

Committed pipeline

+10%

€676 million

Group Share

France Offices: €470 million

Italy Offices: €139 million

Hotel: €67 million

4 deliveries (€66 million)

1 new project (€21 million)

3 new projects (€50 million)

in Milan

3 deliveries (€8 million)

4 new projects (€30 million)

Helios, Lille-Villeneuve d’Ascq8,700 m²; Delivery in 2018

€455 million Group Share deliveries in 2017


A €2.3 BILLION MANAGED PIPELINE FOR FUTURE VALUE CREATION

30

FINANCIAL RESULTS

H1 2016 RESULTS

Speculative

Value-added acquisition

Assetregeneration

Land acquisition

Turnkey projects

Multi-tenant / Subject to partial

pre-let

Letting strategies

Project sourcingLand bank

Assets in portfolio Acquisitions for development

Create supply

Respond to a demand

Vers Métro

Porte de la

Chapelle

Vers Métro

Marx Dormoy

Vers Gare Rosa

Parks

Mur végétal

Linéaires commerciaux

Parc des rails – Agriculture

urbaine à grande échelle

Parvis des restaurants

Parvis des artisanats innovants

Pôle économique

Anjou, Paris Cap 18, Paris

Silex2, Lyon Majoria, Montpellier

Opale, Greater Paris

Montrouge, Greater ParisRueil, Greater Paris

New Velizy extension,

Greater Paris

PSA, Paris

Managed pipeline

+€1.4 billion

23 projects for €2.3 billion Group Share vs 11 projects and €900 million at end-2015

> Italy Offices: +€50 million in Milan

> France Offices: +€1.3 billion In depth analysis of the portfolio (46% of construction; 24% of regeneration)

Last 12 months acquisitions (30%)


H1 2016 INVESTMENTS: €1.8 BILLION SECURED

31

Strengthening positioning in Paris, Berlin and Milan

H1 2016, €mInvestments

including duties(100%)

Investments(Group Share)

1+2

Capex (Group Share)

1

Acquisitions(Group Share)

2

Gross yield on acquisitions

(Group Share)

Offices - France 264 247 107 140 7.8%

Offices - Italy 149 77 33 44 6.5%

Increase stake in Beni Stabili 0 147 0 147 5.7%

German Residential 260 182 0 182 4.9%

Hotels/Service Sector 1,113 275 16 259 6.1%

Increase stake in FDM 0 208 0 208 5.9%

Total 1,786 1,136 157 980 6.0%

FINANCIAL RESULTS

H1 2016 RESULTS


H1 2016 DISPOSALS: QUALITY IMPROVEMENT

Value creation asset rotation

H1 2016, €mNew

agreements100%

NewagreementsGroup Share

Margin vs.Values

2015

Gross Yield

Effective disposals

Group Share

Gross Yield

France Offices 45 45 1.5% 8.0% 82 7.9%

Italy Offices 48 25 1.4% 4.0% 29 7.2%

German Residential 190 116 9.1% 7.2% 118 7.2%

Hotels/Service Sector 306 152 24% 5.0% 127 6.2%

Non-strategic 99 61 6% 1.2% 146 6.1%

Total asset disposals 689 399 13% 5.3% 502 6.7%

FINANCIAL RESULTS

H1 2016 RESULTS

Exit from healthcare€301 million; 25% margin; 4.6% yield


INCREASE IN VALUE AT LIKE-FOR-LIKE SCOPE: +3.2%

FINANCIAL RESULTS

H1 2016, €mValues

Total shareValues

Group share

Change (%) LFL

6 months

Yield2015

Group share

YieldH1 2016

Group share

France Offices 6,047 5,175 +4.4% 6.0% 5.8%

Italy Offices 3,963 2,070 +1.5% 5.7% 5.6%

German Residential 3,776 2,334 +3.1% 6.0% 5.7%

Hotels/Service Sector 3,686 1,591 +2.8% 5.9% 5.7%

Others 788 504 n.a. n.a. n.a.

Total 18,260 11,673 +3.2% 5.8% 5.6%

Committed pipeline: +20%

like-for-like

France Offices

Milan: +3%

Italy Offices

Berlin: +4.0%Dresden & Leipzig:

+4.0%Hamburg: +3.6%

German Residential

Operating properties:

+7%

Hotels/Service Sector

H1 2016 RESULTS


A BETTER DEBT STRUCTURE, ILLUSTRATION OF THE PORTFOLIO IMPROVEMENT

FINANCIAL RESULTS

Group share data

H1 2016 RESULTS

42%

15%

38%

6% Investor mortgages

Bonds

Corporate credits

Bank mortgage loans

Strong diversification in financing

57% unsecured

debt

1st Green Bond issue: reward of an ambitious ISR strategy

> €500 million Green Bond; 10-year

> 1.875% coupon (margin of 137 bps above the swap rate)

> More than 5 times oversubscribed

Better

cost of debt

2.39%

Vs 2.8% end-2015

Higher ICR

3.4

Vs 3.0 end-2015

Longer

maturity

5.3years

+0.3 year

LTV

46.4%

Target < 45%

0.1

0.7 0.8 0.70.6

1.4

0.4 0.4

1.8

2016 2017 2018 2019 2020 2021 2022 2023 2024and

beyond

Debt maturities under controlAverage maturity 5.3 years

(in €billion)A dynamic financing activity

> €1.7 billion of new financings (1.4 billion Group Share)

> 9-year average maturity


EPRA NAV PER SHARE INCREASED BY 8.7% IN ONE YEAR

FINANCIAL RESULTS

EPRA NAV supported by recurring net income and increase in values

> EPRA NAV: €5,652 million (+11.4% vs June 2015) and €82.4 per share (+8.7%)

> EPRA NNNAV: €4,849 million (+9.3%) and €70.7 per share (+6.6%)

H1 2016 RESULTS

EPRA NAVEnd 2015

EPRA NAVJune 2016

Number of shares used to calculate NAV/share:

68,612,791 for June 2016 vs. 66,947,020 for end 2015

€5,652 m

€82.4/share

€5,318 m

€79.4/share

+€177 million

RNI+€113 million

Public Exchange

Offer on FDM

-€287 million

Dividend

+€2 million

Other

+€339 million

Property values increase

-€35 million

Hedge restructuring

and

Bond repurchase

+€25 million

Profit on acquisition of Beni Stabili

€5,076 m

€75.8/share

EPRA NAVJune 2015


Occupancy rate

Residual firm lease

terms

Rental income 1

(€m)

Change12 months

Change at like-for-like scope

France Offices 95.8% 5.9-year 125.7 +8.0% -0.3%

Italy Offices 95.1% 9.5-year 49.6 -7.2% -0.8%

German Residential 98.1% n.a. 65.3 +18.0% +2.9%

Hotels/ Service Sector 100% 10.6-year 41.5 +6.8% -2.1%

Other n.a. n.a. 5.0 -30.1% n.a.

Total 96.7% 7.5-year 287.1 +5.9% 0.0%

1 Excluding Logistics (€2.8 million), classified as discontinued operations

36

RENTAL INCOME: +5.9% INCREASE

FINANCIAL RESULTS

No indexation environment

Offices ex-TI: +2.6%

+5.3% in Berlin; +3.1% in Dresden & Leipzig

Terrorist attack impacts

Indexation: 0%

Occupancy rate: 0.2%

Renewals: -0.3%

Change at like-for-like scope

Group share data

H1 2016 RESULTS


INCREASE IN RECURRING NET INCOME: +4.2%

FINANCIAL RESULTS

€m, Group Share H1 2015 H1 2016 %

Rental income 271.2 287.1 +5.9%

o/w net rental income 249.8 264.5 +5.9%

Net operating costs -28.9 -32.3 +11.8%

Income from other activities 13.1 7.0 -46.6%

Current operating income 234.0 239.3 +2.2%

Net cost of financial debt -78.2 -66.0 +15.6%

Recurring net income of MEE companies 6.4 5.0 -21.9%

Income from non consolidated affiliates 0.2 0.0 n.a.

Pre-tax net income 162.3 178.4 +9.9%

Recurrent tax -0.4 -1.6 n.a.

Recurring net income of discontinued operations 7.7 -0.1 n.a.

Recurring Net Income 169.6 176.6 +4.2%

Fair value adjustment on real estate assets 158.1 307.7

Changes in the fair value of financial instruments -35.4 -18.5

Margin on disposals 0.0 0.8

Other -13.7 -52.8

Non-recurrent tax -1.1 -1.5

Profit/loss on discontinued operations -2.7 -1.3

Net income 274.8 411.0

Growth in the portfolio

Less property development fees

Lower cost of debt

Change of scope in Dassault SystèmesCampus

Exit from Logistics

H1 2016 RESULTS


RECURRING NET INCOME PER SHARE:+1.0%

Impact of quality improvementPositive impact of the deliveries in Offices

Strengthening in German Residential & Hotels

Lower average cost of debt

Group Share H1 2015 H1 2016Change vs.

H1 2015

RNI (in €m) 169.6 176.6 +4.2%

RNI/share (€) 2.62 2.64 1.0%

Average number of fully diluted shares 64,771,181 66,793,295

Group share data

FINANCIAL RESULTS

H1 2016 RESULTS

Lower property development fees

39

4

Outlook

Riverside – Toulouse


CONTINUE TO IMPROVE QUALITY AND GROWTH PROSPECTS

40

OUTLOOK

H1 2016 RESULTS

Boost value creation through active asset management

H1 2016 key takeaways

H2 2016perspectives

€1.8 billion investments secured

Letting successes

Stable like-for-like rents

> Improving structural like-for-like trends

> Some temporary negative impacts

Dynamic asset rotation to pursue portfolio quality upgrade

New lettings in the pipeline

Better like-for-like trend in rents

Confirmed guidance: stable 2016 Recurring Net Income


FINANCIAL AGENDA

AGENDA

Q3 2016: 3 November 2016

H1 2016 RESULTS

42

APPENDICES

Steel –Paris


A STRATEGY STRENGTHENED BY THE SOUNDNESS OF INDICATORS

Group share data

APPENDICES

H1 2016 RESULTS

Historically high occupancy rates

2009

95.4% 94.8% 95.8%

2010 2011 2012

95.5%

2013

96.0%

2014

96.7%

2015

97.1%

H1 2016

96.3%

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

7.5

2015

5.87.3

H1 2016

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

+3.2%

2015

+2.1%

+4.4%

H1 2016

Rent: at like-for-like scopeChange in LFL vs. N-1

+3.3%

2010

+0.6%

2011 2012

+2.1%+1.2%

20132009

+2.2%

0.0%

2014 2015

+0.2% -0.1%

H1 2016

> Ability to keep the tenant in place

> Occupancy rate track record in the development pipeline

> Anticipate disposals

> Partnership strategy

> Lease maturity in Hotels: 10.6-year

> Stable occupancy rate

> Low inflation environment

> Lease renegotiations close to passing rents

> Dynamic investment market

> Asset management and development pipeline value creation


COMMITTED PIPELINE: 25 PROJECTS FOR €676 MILLION GROUP SHAREAPPENDICES

H1 2016 RESULTS* 100% usable area excl. car park; ** Group share incl. land and financial cost

P ro je c ts Typ e Lo c a tio n P ro je c tS u rfa c e *

(m²)De live ry

Ta rg e t re n t

(€/m²/ye a r)

P re - le a s e d

(%)

To ta l

B u d g e t**

(M€)

Ta rg e t Yie ld P ro g re s s

C a pe x to be

inv e s te d

(Gro up S ha re )

Clinique INICEA Offic e s - Fra nc eS a int- Ma ndé -

Gre a te r P a risCons truc tion 5 700 m² 2016 na 100% 25 6% 95% 1

DS Ca mpus Exte ns ion 1 (FdR sha re : 50%) Offic e s - Fra nc e Vé lizy - Gre a te r P a ris Cons truc tion 13 100 m² 2016 305 100% 39 6% 65% 6

To ta l 2 0 16 18 8 0 0 m² 3 0 5 10 0 % 6 4 6 % 7 7 % 6

Eurome d Ce nte r - Bure a ux He rmione (FdR sha re : 50%) Offic e s - Fra nc e Ma rse ille Cons truc tion 10 400 m² 2017 265 0% 14 > 7% 70% 4

S ile x I Offic e s - Fra nc e Lyon Cons truc tion 10 600 m² 2017 280 26% 47 6% 60% 16

Eurome d Ce nte r - Bure a ux Flore a l (FdR sha re : 50%) Offic e s - Fra nc e Ma rse ille Cons truc tion 13 400 m² 2017 265 0% 18 >7% 55% 9

Tha ïs Offic e s - Fra nc eLe va llois - Gre a te r

P a risCons truc tion 5 500 m² 2017 480 0% 40 6% 50% 14

O'rigin Offic e s - Fra nc e Na nc y Cons truc tion 6 300 m² 2017 195 77% 20 6% 40% 11

Edo Offic e s - Fra nc eIssy Le s Mouline a ux -

Gre a te r P a ris

Re ge ne ra tion-

Exte ns ion10 800 m² 2017 450 100% 83 6% 30% 33

Art&Co Offic e s - Fra nc e P a ris Re ge ne ra tion 13 500 m² 2017 520 5% 131 5% 5% 34

To ta l 2 0 17 7 0 5 0 0 m² 4 2 5 3 3 % 3 5 3 6 % 3 1% 12 2

Rive rs ide Offic e s - Fra nc e Toulouse Cons truc tion 11 000 m² 2018 195 0% 32 7% 5% 26

Hé lios Offic e s - Fra nc eLille - Ville ne uve

d 'AsqCons truc tion 8 700 m² 2018 160 0% 21 >7% 5% 20

To ta l 2 0 18 19 7 0 0 m² 18 1 0 % 5 3 7 % 5 % 4 6

To ta l - Offic e s Fra n c e 10 9 0 0 0 m² 3 8 1 3 9 % 4 7 0 6 % 3 4 % 17 5

Mila n, via Colonna Offic e s - Ita ly Mila n Re ge ne ra tion 3 464 m² 2017 260 0% 8 5% 1% 2

Mila n, via Ce rna ia Offic e s - Ita ly Mila n Re ge ne ra tion 8 316 m² 2017 420 0% 30 5% 4% 7

Mila n, P .zza Monte Tita no Offic e s - Ita ly Mila n Re ge ne ra tion 4 816 m² 2017 190 0% 11 5% 1% 4

Turin, c orso Fe rruc c i 112 Offic e s - Ita ly Turin Re ge ne ra tion 45 600 m² 2017 130 0% 45 6% 10% 15

To ta l 2 0 17 6 2 19 6 m² 2 4 1 0 % 9 4 5 % 6 % 2 9

S ymbios is A+B Offic e s - Ita ly Mila n Cons truc tion 19 000 m² 2018 300 80% 45 7% 8% 2 6

To ta l 2 0 18 19 0 0 0 m² 3 0 0 8 0 % 4 5 7 % 8 % 2 6

To ta l - Offic e s Ita ly 8 1 19 6 m² 2 6 0 2 6 % 13 9 6 % 7 % 5 5

B&B P otsda m Hote ls P otsda m - Ge rma ny Cons truc tion 101 rooms 2016 na 100% 3 >7% 58% 1

B&B Ha mburg Hote ls Ha mburg - Ge rma ny Cons truc tion 155 rooms 2016 na 100% 6 >7% 85% 1

To ta l 2 0 16 2 5 6 ro o ms 10 0 % 8 > 7 % 7 6 % 3

B&B Be rlin Hote ls Be rlin - Ge rma ny Cons truc tion 140 rooms 2017 na 100% 5 >7% 32% 1

B&B Na nte rre Hote lsNa nte rre - Gre a te r

P a risCons truc tion 150 rooms 2017 na 100% 3 6% 10% 2

To ta l 2 0 17 15 0 ro o ms 10 0 % 8 > 7 % 3 2 % 1

B&B Lyon Hote ls Lyon Cons truc tion 113 rooms 2018 na 100% 2 6% 27% 1

B&B Cha te na y Ma la bry Hote lsCha te na y Ma la bry -

Gre a te r P a risCons truc tion 255 rooms 2018 na 100% 2 6% 0% 2

Mote l One P orte Doré e Hote ls P a ris Cons truc tion 173 rooms 2018 na 100% 9 6% 42% 6

Me ininge r Munic h Hote ls Munic h - Ge rma ny Conve rs ion 420 rooms 2018 na 100% 15 6% 50% 7

Me ininge r P orte de Vinc e nne s Hote ls P a ris Cons truc tion 249 rooms 2018 na 100% 24 6% 0% 16

To ta l 2 0 18 1 2 10 ro o ms n a 10 0 % 5 1 6 % 2 3 % 3 2

To ta l - Ho te ls & S e rvic e s e c to r 1 6 16 ro o ms n a 10 0 % 6 7 6 % 3 0 % 3 6

T ot a l 19 0 19 6 m² n a 42% 676 6% 28% 266


MANAGED PIPELINE: 23 PROJECTS FOR €2.3 BILLION GROUP SHAREAPPENDICES

H1 2016 RESULTS

P ro je c ts Typ e Lo c a tio n Are a P ro je c tS u rfa c e *

(m²)

De live ry

time fra me

S ile x II Offic e s - Fra nc e Lyon MRC Re ge ne ra tion - Exte ns ion 30 700 2020

Opa le Offic e s - Fra nc e Me udon Gre a te r P a ris Construc tion 30 000 2019

Borde a ux Ilot Arma gna c (QP FDR 34%) Offic e s - Fra nc e Borde a ux MRC Construc tion 31 600 2018

Borde a ux Cité du Numé rique Offic e s - Fra nc e Borde a ux MRC Construc tion 18 600 2018

Cœ ur d 'Orly Comme rc e s (QP FdR 25%) Offic e s - Fra nc e Orly Gre a te r P a ris Construc tion 31 000 >2019

ERDF Re ims Offic e s - Fra nc e Re ims MRC Construc tion 10 400 2017

Multiple x Europa c orp Offic e s - Fra nc e Ma rse ille MRC Construc tion 2800 se a ts 2018

Ca p 18 Offic e s - Fra nc e P a ris P a ris Construc tion 50 000 >2020

Rue il Vinc i Offic e s - Fra nc e Rue il- Ma lma ison Gre a te r P a ris Re ge ne ra tion - Exte ns ion 43 000 >2020

Ca nopé e Offic e s - Fra nc e Me udon Gre a te r P a ris Construc tion 46 900 2020

Ome ga Offic e s - Fra nc e Le va llois - P e rre t Gre a te r P a ris Re ge ne ra tion - Exte ns ion 21 500 >2020

Citroe n P S A - Ara go Offic e s - Fra nc e P a ris P a ris Re ge ne ra tion 19 500 >2020

Anjou Offic e s - Fra nc e P a ris P a ris Re ge ne ra tion 11 000 >2020

Montpe llie r Ma joria Offic e s - Fra nc e Montpe llie r MRC Construc tion 58 200 2018- 2020

Ave nue de la Ma rne Offic e s - Fra nc e Montrouge Gre a te r P a ris Construc tion 18 000 2020

Cœ ur d 'Orly Bure a ux (QP FdR 25%) Offic e s - Fra nc e Orly Gre a te r P a ris Construc tion 50 000 >2019

Ora nge Gobe lins Offic e s - Fra nc e P a ris P a ris Re ge ne ra tion 4 100 >2020

Ca mpus Ne w Vé lizy Exte ns ion (QP FdR 50%) Offic e s - Fra nc e Vé lizy Gre a te r P a ris Construc tion 14 000 2019

DS Ca mpus Exte ns ion 2 (QP FdR 50%) Offic e s - Fra nc e Vé lizy Gre a te r P a ris Construc tion 11 000 >2020

ERDF Ange rs Offic e s - Fra nc e Ange rs MRC Construc tion 4 700 2019

To ta l Offic e s - Fra n c e 5 0 4 2 0 0

P rinc ipe Ame de o Offic e s - Ita ly Mila n Ita ly Re ge ne ra tion 6 400 2017

Via S c hie va no Offic e s - Ita ly Mila n Ita ly Re ge ne ra tion 27 153 2019

S ymbios is (othe r bloc ks) Offic e s - Ita ly Mila n Ita ly Construc tion 101 500 2022

To ta l Offic e s - Ita ly 13 5 0 5 3

To ta l 6 3 9 2 5 3

*Surface at 100%* 100% usable area excl. car park


ORGANISATION CHART AT END-JUNE 2016

46

APPENDICES

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% 49.6%

40.8%

Consolidated subsidiaries

Equity affiliates

French Residential

(FDL)

61.3%

H1 2016 RESULTS


Paris30, avenue Kléber75116 ParisTel.: +33 1 58 97 50 00

ContactPaul ArkwrightTel.: +33 1 58 97 51 85Mobile: +33 6 77 33 93 [email protected]

h1 2016 results: a rewarding strategy … · portfolio €3.7 billion (100%) €1.6 billion (gs) h1...

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