half-year results 2016 · services meeting tenants’ requests. investments in service areas ....

HALF-YEAR RESULTS

201626 JULY 2016

22016 annual results

SUMMARY

REAL ESTATE MARKET

STRATEGY AND GOVERNANCE

2016 HALF-YEAR RESULTS

DEVELOPMENTS

OUTLOOK

APPENDICES

1

2

3

4

5

6


REAL ESTATE MARKET

1


INVESTMENT IN FRENCH COMMERCIAL REAL ESTATE

9,04,4 5,8 4,4

6,79,2 4,2 7,3

8,3

4,78,3

8,5

7,0

9,913,4 10,8

25.8

30.9

15.2

8.5

13.7

17.9 17.8 18.9

28.131.8 31.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

T1T2

T3T4

€ bn

-2%

Source BNP PARIBAS

GLOBALLY STABLE AT A HIGH LEVEL


ABOVE 10-YEAR AVERAGE

PARIS REGION OFFICES – EVOLUTION OF INVESTED AMOUNTS

17.8

8.04.5

7.410.7 9.9 10.1

14.6

4.9 5.3

12.4 10.8

17.316.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

H1H2

€ bn

-7%

10-year average: € 11.6bn

Source BNP PARIBAS


FURTHER COMPRESSION

PARIS

3.153.50

4.75

3.65

4.35

5.50

3.253.75

4.904.50

0

1

2

3

4

5

6

Paris QCA Paris hors QCA La Défense Croissant Ouest 1ère Couronne 2ème Couronne

%

2016

2015

Source BNP PARIBAS


A CONTINUED INCREASE SINCE 2013

RENTAL TAKE UP BY SURFACE AREA IN THE PARIS REGION

2 410

0

500

1 000

1 500

2 000

2 500

3 000

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

thousands m²500 - 2 000 m²

< 500 m²

2 000 - 5 000 m²

5 000 - 10 000 m²

> 10 000 m²

Average 10 years : 2 283

+ 7%

+23%

- 1%

Source BNP PARIBAS


DECREASE IN OFFER, VACANCY RATE AT 6.7 % (AGAINST 7.4% ONE YEAR BEFORE)

OFFER IN ILE-DE-FRANCE (PARIS REGION)

4 958 4 839 4 370

0

1 000

2 000

3 000

4 000

5 000

6 000

T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4 T4

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

thousands m²

New/Renovated - certified

New/Renovated – not certified Second-hand – not certified

Second-hand - certified

19%

Source BNP PARIBAS

Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1


STRATEGY AND GOVERNANCE

2


THE STRATEGIC PLAN PURSUED

Three growth areas:Direct acquisition of secure assets

Development of new buildings on existing land or to be acquired

External growth

Targeteddevelopment in established locations (transport, economic areas) in particularwithin Greater Paris :

Creation of business parks providingservices meeting tenants’ requests

Investments in service areas

Closer management with tenant custumers:Internalised property management (rental, commercial, technical and administrative)

ISO 9001 et 14001 (obtained early 2016 and maintained early 2017)

High level of environmental commitment

Objective : to increase the portfolio to € 1.5 bn within the next years

Critical size

High rental dynamic

Support for tenants’ needs


A Board

Strengthened by the arrival of:Bibiane de Cazenove (1) Claire Marcilhacy (2)

As from the AGM of May 2016

Comprising 12 directors (7 men and 5 women) of which 5 are independent ones

Having adopted the 2016 revised Middlenext code

In line with the MAR regulation (Market abuse)

AN EXEMPLARY GOVERNANCE

1 2


100%

AN INTEGRATED OPERATOR WITH TEAM CONSEIL

A team of competent, responsive professionals

Business authorisations : Management and Transactions

Skills internalisedLeasingAcquisitions and disposalsDelegated Project ManagementAdministrative management Technical management Financial management

Dual certification (obtained early 2015 and maintained early 2017)

ISO 9001 QualityISO 140001 Environment

Third-party asset and property management

A dedicated website: www.team-conseil.fr

COMPLEMENTARY SKILLS TO BENEFIT THE PROPERTY PORTFOLIO

SCI…..

SCI…..

SCI…..

Société de la Tour Eiffel

Listed on NYSE Euronext Paris

(Eurolist B) Team Conseil

SAS

http://www.team-conseil.fr/



3

1

2

3

CAPITAL INCREASE

OPERATIONAL RESULTS

FINANCIAL RESULTS


A SUCCESSFUL CAPITAL INCREASE - DECEMBER 2016

Shareholding sructure after capital increase

SMABTP36.76%

SMA group

Malakoff Médéric

Suravenir

AG Finance

Mutuelle Générale

Humanis

Fédérale Assurance

Other Own-held shares

SMA groupMalakoff Mederic

SuravenirAG Finance

Mutuelle GénéraleHumanis

Fédérale AssuranceOther

Own-held shares

59.78%11.24%9.46%7.36%3.01%2.15%

0.94%6.03%0.03%

Issue price: 53 euros

Created shares: 2 641 557 (+ 27.9 %)

Total shares: 12 110 509

Subscription€ 140m



3

1

2

3

CAPITAL INCREASE

OPERATIONAL RESULTS

FINANCIAL RESULTS


A SUSTAINED INVESTEMENT POLICY


ACQUISITION: OLYMPE AT PUTEAUX (MARCH 2016)

4 000 m² office building located at 56, quai de Dion Bouton à Puteaux

Investment : € 28.4m

Annual rent: € 1.55m ie an immediate yield of 5,45%

100% leased to a single tenant


ACQUISITION: ODYSSÉE AT GUYANCOURT (MARCH 2016)

12 000 m² office building located avenue du Centre at Guyancourt


Annual rent: € 1.63m ie an immediate yield of 6.57%

100% leased to tenants


ACQUISITIONS IN NANTERRE

Parc Nanterre Seine

Défense 3


ACQUISITION : PARC NANTERRE SEINE (DÉCEMBRE 2016)

17 building comprising 70 000 m² of a park

Available land reserves

Investment: € 106.2m

Annual rent: € 6.7m

Multilet (71 baux)


ACQUISITION: DÉFENSE 3 - NANTERRE PRÉFECTURE (DECEMBER 2016)

An office building of 15 000 m²


Annual rent: € 2.5m

Multilet (10 leases)


A STRONGLY GROWING PORTFOLIO AS AT 31 DECEMBER 2016(COMPARED TO 31.12.2015)

63%19%

18%

by m²486 666 m²

Paris region offices Region offices Other assets (Warehouses/Parcel depots - Light industrial)

81%

12%

7%

86%

10%4%

by value€ 1 133m

Number of assets: 45Number of buildings: 133

Average rent: 175 €/m² Share of offices: 96%Paris region share: 87%

74 €/m²

115 €/m²

217 €/m²

by annual passing rent€ 70m

€ 915m€ 59m400 364 m²


DEVELOPMENT OF THE OFFICE PORTFOLIO BY DEPARTMENTIN THE PARIS REGION

Department 1975 1990 2015 average 1975-2014

75 13 530 987 14 656 718 16 319 127 0.5%

77 893 020 1 515 913 2 859 753 3.0%

78 1 301 317 2 567 668 4 628 443 3.2%

91 1 233 244 2 204 064 3 139 071 2.4%

92 3 941 431 7 605 608 14 246 569 3.3%

93 1 261 203 2 282 974 5 549 230 3.8%

94 769 599 1 857 411 4 019 623 4.2%

95 596 118 1 198 344 2 620 263 3.8%

Total Ile-de-France 23 526 919 33 888 700 53 382 079 2.1%

Source ORIE

57%

17%

5%3%

4%

6%5% 3%

In 197523.5 M m²

Paris Hauts-de-Seine Seine-Saint-Denis Val-de-Marne Seine-et-Marne Yvelines Essonne Val-d'Oise

45%

22%

7%

5%

4%

7%

6% 4%

In 198932.5 M m²

31%

27%10%

8%

5%

9%

6%5%

In 201452.8 M m²


A PORTFOLIO STRENGTHENED IN ILE-DE-FRANCE (PARIS REGION)

End 2015 Ile- de-France

rents on whole

portfolio: 82%

Department Area (per m²)% by

location% whole portfolio

Passing rent (€)% by

location% whole portfolio

PARIS 12 341 4% 3% 3 831 778 6% 5%SEINE & MARNE 9 756 3% 2% 812 083 1% 1%YVELINES 53 045 16% 11% 10 305 081 17% 15%ESSONNES 33 550 10% 7% 6 798 980 11% 10%HAUTS DE SEINE 190 057 56% 39% 33 331 227 56% 47%SEINE ST DENIS 28 207 8% 6% 2 031 380 3% 3%VAL DE MARNE 14 153 4% 3% 2 658 865 4% 4%

341 109 100% 70% 59 769 393 100% 85%

BOUCHES DU RHONE 39 027 27% 8% 4 121 880 39% 6%CALVADOS 14 763 10% 3% 2 128 983 20% 3%DOUBS 28 165 19% 6% 612 729 6% 1%HAUTE GARONNE 13 814 9% 3% 938 128 9% 1%LOIRET 4 436 3% 1% 270 903 3% 0%MARNE 11 350 8% 2% 790 636 8% 1%BAS RHIN 34 002 23% 7% 1 586 959 15% 2%

145 557 100% 30% 10 450 217 100% 15%

I L E D E F R A N C E

R E G I O N S


IFRS portfolio value€ 1 133m excl. Transfer Rights– €1 215m incl. Transfer Rights

A SUSTAINABLE YIELD

Geographical breakdown:87 % Paris IDF

Portfolio average age:48% < 10-year-old 5.35%

6.53%7.03%

5.54%

EPRA Topped-upNet Initial Yield

Paris region officesRegional officesOther assetsPortfolio average


La Poste*CapGemini

AlstomAltran

Air LiquideMinistère de l’intérieur

AtosOrange

C&SYokogawa

BaxterNXP

NeopostPôle Emploi

Bourjois/CotyMonuments Nationaux

NXTOAutomativ Trw

Direction Départementale

65%

Other tenants35%

9%8%7%5%4%3%3%3%3%2%2%2%2%2%2%2%2%2%2%

SOUND AND SECURED RENTAL INCOME

88,.%

82.3%87.7% 87.5%

EPRA occupation rate

Paris region officesRegional officesOther assetsPortfolio average

Tenant roaster : spread risk65% of rents stem from first rate companies

NO NOTICEABLE UNPAID RENT

* multi-sites


SECURING RENTS ON LONG TERM BASIS

80% of rents secured until

05/2020, ie € 56m/ year

20%

Rental sustainability

Portfolio ex. Parks : 89 leasesEiffel business parks 3/6/9 : 214 leases

3.64.3 4.3 4.1 3.9 3.8 3.6 3.5 3.1

5.46.4 6.3 6.2 6.0 6.0 6.1 6.0 5.7

WALB history in years

WALB WALT

Lease break excl. Parks : 3.4

Lease signature

CityZen / Rueil : NXTO France - 5 000 m² + 120 pkg / Lease 6-9 years

CityZen / Rueil : ETF - 1 915 m² + 47 pkg / Lease 4-6-9 years

Caen-Colombelles : ZODIAC - 2 995 m² + 126 pkg / Lease 9 years

Main renewals

Strasbourg : Pôle Emploi - 1 351 m²/ 9-year closed lease and extension 423 m²

Gennevilliers : closed term postponement against lease reductions – 20 659 m²

Vélizy : Altran – extension of 1 270 m² (on Topaz : + 2 466 m², on Energy II : - 1 190 m²)

a total of 303 leases


PARIS - Domino Up-grade from Good to Very good on BREEAM axe « BUILDINGMANAGEMENT » and axis Asset MANAGEMENT

CHAMPIGNY BREEAM axe « BUILDING MANAGEMENT »SURESNES – Seine Etoile HQE on BUILDING and ASSET - GOODGUYANCOURT - Odyssée Audited, waiting for the BREEAM Asset and Building certificatesAIX-EN-PROVENCE – Parcdu Golf ECO JARDIN labelling procedure launched

VELIZY - Vauban Opportunity study for BREEAM axe « BUILDING MANAGEMENT »

To enhance attractiveness of the assets and maintain their value

ON-GOING PROCESS OF BUILDING CERTIFICATION

In 2016, certifications :

MONTROUGE – Eiffel 02 BREEAM VERY GOOD & EXCELLENT(ASSET – BUILDING MANAGEMENT)

VELIZY – Energy 2 BREEAM VERY GOOD & GOODBAGNEUX - Optima BREEAM VERY GOOD & VERY GOODVELIZY - Vauban BREEAM VERY GOOD on axis ASSETCHAMPIGNY BREEAM GOOD on axis ASSETPARC D’ORSAY Labelled ECO-JARDIN

In 2015, certifications in use obtained:


POTRFOLIO ENVIRONMENTAL FOOTPRINT

A quality portfolio:High certification rate on the Paris region

office portfolio – per value(HQE and/or BREEAM)

2016 80%

2020

tar

get

80%

On way to achieve 2020 target:Third year of decrease of the Paris region

office porfolio energy consumption

248235 228

206 198

0

50

100

150

200

250

300

2013 2014 2015 2016 2020target

kWh

per

sqm

(cl

imat

e co

rrec

ted)


CORPORATE CLIMATE IMPACT

INTERNALISED PROPERTY MANAGEMENT IN THE SUBSIDIARYWHICH MAINTAINED IN 2017 THE ISO DUAL CERTIFICATION

30 54 t.CO2e

ISO 9001 &

ISO 14001

+2 EFTin 2016

-6%Vs 2015

ISO 9001Confirm the establishment of the best possible organization to meet therequirement of its business for the benefit of its customers, with qualitymanagement systems.

ISO 14001Fully assume its environmental responsibility by constantly seeking to improve itsprocedures, within a framework defining rules for integrating environmentalconcerns in its operations.


A COMPANY FOUNDATION FAVOURING INNOVATION

Launching of a contest in 2016 by the company's foundationwith SMA foundation and the Abvent group

Teams including at least a student in engineering and an architectstudent

Theme: to design the non-high-rise building for 2030 on the OrsayEiffel campus in the spirit of Gustave Eiffel

In order to foster innovation in building, multidisciplinary work andyouth integration in the business world of real estate

69 teams – 23 projects validated

Announcement of the results at the Eiffel tower – 2 winning teams

Printing of a catalog of the projects, coverage by press and thecompetition website



3

1

2

3

CAPITAL INCREASE

OPERATIONAL RESULTS

FINANCIAL RESULTS


KEY FIGURES

FUNDAMENTALS STRENGTHENED

31/12/2016 31/12/2015

Portfolio value exluding transfer duties € 1 133.5m € 915.3m

Portfolio value at amortised cost € 934.4m € 751.6m

Net financial debt € 410.1m € 343.8m

Financial debt rate 1.8% 3.2%

Net LTV 36.2% 37.6%

EPRA NNNAV (in €/share) 58.9 58.1

2016 2015

Rental income € 59.6m € 53.0m

EPRA financial occupancy rate 87.5% 89.7%

Net profit/loss € 17.1m € 12.4m

Net recurring profit/loss € 16.5m € 10.4m

EPRA earnings € 35.4m € 26.3m

Cash-flow € 38.9m € 32.3m

in €/share 3.2 3.4

An active investment policy

Potential gains above € 200m

A suitable debt structure

A dividend distribution of € 3 per share

Increase by over 12%

Strong increase of results

High increase of cash-flows +20%


EPRA INDICATORS

OPERATING PERFORMANCE

31/12/2016 31/12/2015

EPRA earnings € 35,4m € 26.3m

EPRA net initial yield 5.27 % 5.84 %

EPRA topped-up net initial yield 5.54 % 5.96 %

EPRA vacancy rate 12.5 % 10.3 %

EPRA NAV per share 58.6 € € 59.6

EPRA NNNAV per share 58.6 € € 58.1


CONSOLIDATED INCOME STATEMENTS

(*) Number of shares as at 31Dec2016: 12 110 509, number of shares as at 31Dec2015: 9 463 747(**) proforma following costs presentation changes (personnel expenses and other overhead henceforth fully presented as corporate expenses)

2016 2015 proforma (**)

Result including Recurring

including Non

recurringResult including

Recurring

including Non

recurring

Diff. Recurring result (%)in €m

Gross rental income 59.6 59.6 53.0 53.0 12.4%

Net depreciation -20.7 -20.7 -17.4 -17.4Impairment & provisions -0.2 -0.2 -0.3 -0.3Property operating expenses -4.5 -4.1 -0.4 -4.4 -4.1 -0.3

Corporate expenses -8.9 -8.4 -0.5 -6.3 -6.6 0.4

Current operating income 25.2 26.2 -1.0 24.6 24.5 0.1 6.9%% of rents 42.3% 43.9% 46.4% 46.2%

Result from disposals 2.0 2.0 1.6 1.6Other operating income and expenses -0.4 -0.3 -0.1Operating income 26.8 25.9 0.9 26.6 24.4 2.3 6.1%% of rents 44.9% 43.4% 50.3% 46.0%

Net financial cost -8.3 -8.3 -16.6 -14.1 -2.5Other financial income and expenses -1.2 -0.8 -0.4 2.4 0.2 2.2Net financial results -9.6 -9.2 -0.4 -14.2 -13.9 -0.3 33.8%

Profit/loss before tax 17.2 16.7 0.5 12.5 10.5 2.0 58.8%

Tax -0.1 -0.1 0.0 0.0Net profit/loss (Group share) 17.1 16.6 0.5 12.4 10.4 2.0 58.5%% of rents 28.7% 27.8% 23.5% 19.7%

Net profit / loss (Group share) per share (*) 1.4 1.4 0.0 1.3 1.1 0.2 23.9%


RENTAL INCOME

SUBSTANTIAL INCREASE

53.0

0

5

10

15

20

25

30

35

40

45

50

55

60

2015 Acquisitions Disposals Leasing Indexation Miscellaneous 2016

-2.2+8.8 59.6€ m

+0,018-0.002 -0.013

-4.2% on a like-for-like

basis

+12.4%


NET RESULT

A MODIFIED COST STRUCTURE

12.4

-0.05

0

2

4

6

8

10

12

14

16

2015 Variation inrecurringoperatingincome

Variation due todisposals

Variation in otheroperating

income andexpenses

Variation inrecurring

financial income

Variation in taxes 2016

-0.9+0.4+0.6

+4.6 17.1€m

Margin effect -2.4

Volume effect +3.1

+37.5%


EPRA EARNINGS

A POSITIVE EVOLUTION

26.3

0

5

10

15

20

25

30

35

2015 Net recurringoperating result

before depreciationallowance

Variation in otheroperating income and

expenses

Variation in financialresults (before fair

value adjusments onhedging and

breakage costs)

Variation in taxes 2016

+6.3

-0.9+3.7

-0.135.4

€m

+ 34.6%


CONSOLIDATED BALANCE SHEET

FURTHER INVESTMENTS AND EQUITY STRENGTHENING

31Dec2016 31Dec2015 Diff Diff%in €m

Assets

Investment properties 930.1 747.3 182.8 24.5%Assets earmarked for disposal 4.3 4.3 0.0 0.0%Tangible fixed assets 0.6 0.2 0.5 314.2%Intangible fixed assets 0.0 0.0 0.0 -61.1%Receivables 42.4 23.4 19.0 81.6%Cash and equivalent 22.6 68.6 -46.0 -67.1%

Total ASSETS 1 000.0 843.7 156.3 18.5%

LIABILITIES

Share capital and reserves 506.9 378.2 128.7 34.0%including result 17.1 12.4 4.7 37.5%

Long term debt 432.7 412.3 20.3 4.9%Other liabilities 60.5 53.1 7.4 13.9%

Total LIABILITIES 1 000.0 843.7 156.3 18.5%


PORTFOLIO EVOLUTION VALUED AT FAIR VALUE

BROADENING OF THE PERIMETER

915.3

+7.7 -0.9

0

100

200

300

400

500

600

700

800

900

1000

1100

31.12.2015 Acquisitions Disposals Fair valueadjustment

Capitalexpenditures

Demolitions 31.12.2016

-7.6+208.6 1 133.5M€ +10.3


FINANCIAL DEBT

DIVERSIFIED SOURCES OF FINANCING

July 2015

Euro PP Bond Issue: € 200 million

Maturity: 10 years (July 2025)

Coupon: 3.3%

November 2015

Revolving credit facility (RCF): € 210 million

Maturity: 3 years (October 2018)

Interest rate: margin < 100 bp + EUR 3M

December 2016

SMABTP credit loan: € 20 million drawn as at 31.12.2016

Reimbursed on

3 lines for a total of € 432.7m

No guarantees on the properties

Corporate loan

48.5%€ 209.7mEuro PP

bond46.9%

€ 202.9m

SMABTP

loan4.6%


DEBT

A STRONG SIGNATURE AND A CAREFUL MANAGEMENT

327.1364.7

343.8

410.1

31/12/2013 31/12/2014 31/12/2015 31/12/2016

Net financial debt (in €m)

3.8% 3.8%3.2%

1.8%

31/12/2013 31/12/2014 31/12/2015 31/12/2016

Average debt rate

4.4

3.1

6.11

4.6

31/12/2013 31/12/2014 31/12/2015 31/12/2016

Maturity (years)

88% 89% 49.2% 48.5% % Fixedrate debtLTV 46.2% 47.7% 37.6% 36.2%

Fixed rate + Cap96.9%

Variable rate 3.1%

Debt coverage ratio

ICR x 2.3 x 2.5 x 2.7 x 5.8

82%

0% 0%

31/12/2014 31/12/2015 31/12/2016

Security rights


EPRA NNNAV (IN € PER SHARE)

A €3 PER SHARE DIVIDEND FOR 2015 PAID IN 2016

* Fully diluted share number: 12 134 254 as at 31/12/2016 and 9 475 122 as at 31/12/2015

58.1 +2.9

-2.3 -0.08 -0.02

+0.01

20

25

30

35

40

45

50

55

60

Net recurringresult before

gain or loss ondisposals,hedging

instruments FVadjustments on

anddepreciationallowance

Property fairvalue

adjustment

Impact of taxreimbursementfor Power Park

project

Hedginginstruments

valueadjustment

Distribution Capital increase Demolitions Fair Valueadjustment for

disposals

Other

-1.2

+0.04+0.9

EPRA Triple Net NAV

as at 31/12/2015*

58.9

EPRA Triple Net NAV

as at 31/12/2016*

€ +0.7


STABLE MARKET PRICE

2016 STOCK MARKET YEAR

75

80

85

90

95

100

105

110

01/01/16 01/02/16 01/03/16 01/04/16 01/05/16 01/06/16 01/07/16 01/08/16 01/09/16 01/10/16 01/11/16 01/12/16

STOCK & SECTOR-BASED INDICES TREND (100 BASIS AS OF 01/01/2016)

Societe de la Tour Eiffel SA (Rebasé) Euronext IEIF REIT Europe (Rebasé) France CAC 40 (Rebasé)

Average price: € 53.81Highest price: € 57.55Lowest price: € 47.10


DIVIDEND FOR 2016 FISCAL YEAR

2016 dividend (proposed to the 22nd May 2017 Annual General Meeting): € 3.0 / per share

103 % of EPRA earnings per share

Payment in cash of in shares

4.2

1.2 3.0 3.0

2013 2014 2015 2016 Proposal

Change in dividend


DEVELOPMENTS

4


DEVELOPMENTS IN PARIS REGION


DEVELOPMENT ON GROUP’S LAND RESERVES (PARIS-SACLAY AREA)

ORSAY / MASSY

In Orsay within the Parc Eiffel d’Orsay, 17,500 sq. m of office space on 16 buildings in the heart of one of the flagship projects in Greater Paris: the Paris-Saclay science campus (Ecole Normale Sup, Paris SudUniversity, Polytechnique, etc.)

In Massy within the Ampère Atlantis integrated development zone (ZAC) with access to the largest transport hub in the outskirts south of Paris:

2 regional express railway lines (RER), 1 high’speed train station, Orly airport, South Express tramway

Development of public transportation

Company’s sites


PLATEAU DE SACLAY - ORSAY

Plateau de Saclay: 15% of the French public research (8th largest cluster worldwide) but also SMEs and majors such as Thales or Danone

370,000 jobs, including 35,000 in R&D

Work has begun on 140,000 sq. m and almost 200,000 sq. m have been allocated

Grand Paris: future line 18 of the Greater Paris Express automatic subway, with three stations. The station will be located 300 m from the Eiffel campus

At Orsay, on the Plateau de Saclay, on more than two hectares, a business park with offices and light industrial premises of 17,000 sq. m with a local development plan potential of 85,000 sq. m and land immediately available for development of 15,000 sq. m

One of the Greater Paris hubs

2 km Mines-Telecom

Versailles ChantierSaint-Quentin

University

Massy high-speed train station (TGV)

CEA Saint-Aubin

Orsay Gif

Variants

PLATEAU DE SACLAY

LINE 18

Satory

HEC Paris

INRA

Agro ParisTechPolytechnique

Palaiseau

CentraleSupélec

Air LiquideGE Healthcare

SafranRenault Technocentre

NexterVédécom

ThalesEDF R&D

AlstomCGG Veritas

ORSAY PARC UNIVERSITÉ

The ability to carry out projects that create value


The Parc Eiffel d’Orsay is located 300 m from the future Greater Paris train station (scheduled for 2023) within the Le Moulon integrated development zone, for which the local development plan (PLU) is adapted to the science campus development project.

ORSAY PARK – IMMEDIATLY PLANNED : 13.000 M² ON AVAILABLE LANDLOCAL DEVELOPMENT PLAN (PLU) POTENTIAL: 85.000 M²

FUTURE CAMPUSPRESENT PARKOCCUPANCY RATE: 96%

Parc Entrance

Future subwayLine 18

Station Orsay - GIF Development of 13,000 m²Approval modified and obtained 02/12/2016

Planning permit to be filed Q1 2017


ORSAY – PERSPECTIVEPOTENTIAL : 85 000 M²

ARCHITECT PAUL MAYLA


MASSY PALAISEAU

"Massy Campus Eiffel", an office potential of over 55,000 sq. m to be built in the Atlantis Massy integrated development zone (ZAC) 400 m from the Place du Grand Ouest in addition to the 17,000 sq. m already built and occupied by Alstom

The area is ideally positioned geographically:The high-speed train station (TGV) The two regional express railway lines (RER), B

and C The Massy-Evry tram-train Linked by the Greater Paris automatic subway,

Massy-Atlantis will be connected directly to Orly and Versailles The line 14 extended to Orly and the creation of

Villejuif Aragon Tramway T7 line in Athis-Mons will further enhance the site's accessibility

Approval for a campus of 26,750 sq. m obtained and a building permit for the first phase obtained July 2016 (12,600 sq. m) –certificate of non-recourse or non-withdrawal December 2017

The ability to carry out projects that create value

Massy-Evry Tram-Train

Villejuif Louis Aragon / Athis-Mons

St-Lazare / Paris-Orly

Segregated-Lane public transport (TCSP)

Greater Paris automatic subway line Versailles / Massy / Orly and La Défense

7T

14M

MASSY

Athis-Mons

Saclay / St-Quentin

RungisC

BRER

Courtaboeuf /Les Ulis

St-Rémy-lès-Chevreuse

Saclay / Versailles

Versailles Chantiers

Antony

Orly

AÉROPORTPARIS-ORLY

A transport hub


MASSY : 70 000 M² UNDER VALORISATION

Building leasedto ALSTOM16 700 m²

CAMPUS ProjectMASSY EIFFEL

Further 55 000 m²

1st phase of 12 600 m²Planning permission obtained in July 2016


MASSY - PERSPECTIVE


PROJECTS UNDER STUDY

PARC NANTERRE SEINE

NANTURRA : Development planned

Development of a building > 3 000 m²for Offices and Light industrial

Development of a service building tomeet needs of the park’s tenants

NAVARQUE : Building under refurbishment

Major restructuring of a 6 423 m²building to be suited for Offices andLight industrial


DEVELOPMENTS IN THE REGIONS


AIX-EN-PROVENCE – PARC DU GOLF (43.000 M²)


AIX-EN-PROVENCE – PARC DU GOLF (43.000 M²)

27 300 m² owned by Société de la Tour Eiffel (of which 4 300 m² under construction) in an exceptional landscape offering a priviledged work place

Closed and secure parkNumerous parking lotsLandscaped and treelined areaQuality work space, pedestrian areas, recreational areas44 tenant companies

AZURFirm off-plan leaseagreement (February 2016) 5-level 4 300 m² office building located at le Parc du Golf in Aix-en-Provence

Investment : € 11mCAC 40 indexed tenantPlanning permit obtained –Delivery planned for 4th quarter 2017 – Progress at 31/12/2016 : 13%Certification BREEAM VeryGood

Agreement to purchase the building 11 (1 490 m²) signed on 15.02.2017


MARSEILLE – PARC EIFFEL DES AYGALADES (17 000 M²)

Business park developped in the 80s.

18 buildings amounting to 23 000 m².

Within this park, 14 buildings owned by Sociétéde la Tour Eiffel’s group, 17,000 m²

These assets enjoy:Excellent localisation, Close to hig-speed train station Direct access to highway, notably

towards international airport with public transport access soon to be

stregthened with the arrival ofunderground line 2,

650 car parking lots, bus stationQuality environmentVery good general state


MARSEILLE - PARC EIFFEL DES AYGALADES (17 000 M²)

L’OLIVIERIdeally located, 5 levels250 m² retail and 3 390 m² offfices plus parking lotsPlanning permit obtained in November 2015 – non-recourseand non-withdrawal certificate obtained February 2016

CYPRESFirm off-plan lease agreement

1.967 m² office building (3levels)Investment: € 4.4mTenant: SERAMMPlanning permit obtained 19/12/2016 – Beginning of work : April 2017 – Delivery planned for Q2 2018


STRASBOURG – PARC DES TANNERIES (34 000 M²)

Road accessRail road A4, A35 and A351

Public transportationBuses

Airport connexion10 min by car

Parking in the vicinity110 lots next to the tramway


PARC DES TANNERIES – STRASBOURG (34 000 M²)

At the heart of a landscapped, tree lined and closed environment, a business parkon the cities of Strasbourg, Ostwald and Lingolsheim• 34 000 m² of offices and light industry• and over 15 000 m² to develop.


OUTLOOK

5


2016 OUTLOOK

Raise the size of the portfolio to € 1.5 bn within the next years

2016: an ambitious year following the strategic plan

Improve our services to serve our tenants

Continue acquisitions of secure assets

Develop our projects and pre-leasing in Orsay and Massy

Focus on the prospects for our portfolio in other regions (Marseille, Aix-en-Provence, Strasbourg)

External growth via existing portfolios or land to be acquired

Société de la Tour Eiffel is in line with a trend of substantial growth in its cash flows


2017 AGENDA

Annual General Meeting: 22 May 2017

2017 half-year results presentation: 25 July 2017


APPENDICES

6


PORTFOLIO VALUE VARIATION (FAIR VALUE)

IFRS valuation of the property portfolio (Fair Value) – Offices / Other assets

IFRS valuation of the property portfolio (Fair Value) per type of assets

Portfolio value increase mainly due to: the value adjustments (€ +10.3 m) and the 2016 acquisitions in Puteaux, Guyancourt and Nanterre (€ +208.6m). Amount of 2016 disposals: € 7.6m

in €m 31Dec2016

31Dec2015 Diff Diff %

Offices Paris-IdF 979.3 750.4 229.0 30.5%

Regional Offices 110.0 107.3 2.7 2.5%

Total offices 1 089.3 857.6 231.7 27.0%

Other assets 44.1 57.7 -13.5 -23.5%

Total portfolio 1 133.5 915.3 218.1 23.8%

0200400600800

1 0001 200

Offices Paris-IdF

RegionalOffices

Other assets Total portfolio

31Dec2015 31Dec2016

in €m 31Dec2016

31Dec2015 Diff Diff %

Offices 1 089.3 857.6 231.7 27.0%

Sorting centres 44.1 50.9 -6.7 -13.2%

Light industrial -Commercial 0.0 6.8 -6.8 -100.0%

Total portfolio 1 133.5 915.3 218.1 23.8%

0200400600800

1 0001 200

Offices Sorting centres Light industrial -Commercial

Total portfolio

31Dec2015 31Dec2016


PORTFOLIO EPRA YIELDOFFICES / OTHER ASSETS

EPRA topped-up yield*

EPRA Net Initial Yield **

(**) Net Initial Yield EPRA: annualized rent as at 31 December, including running rental concessions, net of expenses, divided by the gross property asset value

(*) Net Initial Yield EPRA topped-up: annualized rent as at 31 December, including running rental concessions, net of expenses, divided by the gross property asset value

5,96% 5,79% 5,91%

7,84%

5,54% 5,35%6,53%

7,30%

0%

2%

4%

6%

8%

10%

Average portfolioyield

Offices Paris-IdF Regional Offices Other assets

31Dec2015 31Dec2016

5,84% 5,70% 5,58%

7,84%

5,27% 5,10%5,98%

7,30%

0%2%4%6%8%

10%

Average portfolioyield

Offices Paris-IdF Regional Offices Other assets

31Dec2015 31Dec2016

31Dec2016

31Dec2015

Average portfolio yield 5.54% 5.96%

Offices Paris-IdF 5.35% 5.79%

Regional Offices 6.53% 5.91%

Total offices 5.47% 5.81%

Other assets 7.30% 7.84%

31Dec2016

31Dec2015


Offices Paris-IdF 5.10% 5.70%

Regional Offices 5.98% 5.58%

Total offices 5.19% 5.68%

Other assets 7.30% 7.84%


PORTFOLIO EPRA YIELDBY TYPE OF ASSETS

(**) Net Initial Yield EPRA: annualized rent as at 31 December, including running rental concessions, net of expenses, divided by the gross property asset value

(*) Net Initial Yield EPRA topped-up: annualized rent as at 31 December, including running rental concessions, net of expenses, divided by the gross property asset value

EPRA topped-up yield*

EPRA Net Initial Yield **

31Dec2016

31Dec2015


Offices 5.4% 5.74%

Sorting centres 7.3% 9.10%

Light industrial N/A -1.57%

Parcs Eiffel 6.3% 6.19%

5,96% 5,74%

9,10%

-1,57%

6,19%5,54% 5,4%7,3%

0.0%

6,3%

-5%

-3%

-1%

1%

3%

5%

7%

9%

11%

Averageportfolio yield

Offices Sortingcentres

Light industrial Parcs Eiffel

31Dec2015 31Dec2016

31Dec2016

31Dec2015


Offices 5.1% 5.65%

Sorting centres 7.3% 9.10%

Light industrial N/A -1.57%

Parcs Eiffel 6.1% 5.87%

5,84% 5,65%

9,10%

-1,57%

5,87%5,27% 5,1%

7,3%

0.0%

6,1%

-5%

-3%

-1%

1%

3%

5%

7%

9%

11%

Averageportfolio yield

Offices Sortingcentres

Light industrial Parcs Eiffel

31Dec2015 31Dec2016


RENTAL VARIATIONOFFICES / OTHER ASSETS

IFRS Rental income variation on a like-for-like basis = -4.2%Impact of investments on Rental income variation: € +8.8m / Impact of disposals on rental income variation: none (properties sold were empty)

IFRS rental income variation

IFRS rental income variation on a like-for-like basis

in €m 2016 2015 Diff Diff %

Offices Paris-IdF 47.0 38.6 8.4 21.8%


Total offices 54.4 46.0 8.4 18.3%

Other assets 5.1 6.9 -1.8 -26.3%

Total portfolio 59.6 53.0 6.6 12.4%

0102030405060

Offices Paris-IdF

RegionalOffices


2015 2016

in €m 2016 2015 Diff Diff %

Offices Paris-IdF 38.2 38.6 -0.4 -1.0%


Total offices 45.6 46.0 -0.4 -0.8%

Other assets 5.1 6.9 -1.8 -26.3%

Total portfolio 50.8 53.0 -2.2 -4.2%

0102030405060

Offices Paris-IdF

RegionalOffices


2015 2016

half-year results 2016 · services meeting tenants’ requests. investments in service areas ....

Documents