9 months 2015: Acceleration of the strategy 5 November 2015 - PowerPoint PPT Presentation

9 months 2015: Acceleration of the strategy 5 November 2015

CONTENTS > KEY EVENTS OF THE PERIOD > OPERATING PERFORMANCE > KEY TAKEAWAYS > APPENDICES FONCIÈRE DES RÉGIONS 2

Key events of the period Sofitel - Lyon 3

KEY EVENTS OF THE PERIOD Q3 2015 ACHIEVEMENTS: WELL ON TRACK FOR OUR OBJECTIVES A € 1.9 billion ( € 1.3 billion GS) of investments YTD stronger Real Estate € 1.1 billion ( € 0.6 billion GS) of disposals YTD portfolio Offices France: 4 new deliveries in Q3 totalling 65,800 m² Accelerated Office, Rome Offices Italy : 2 new acquisitions in Milan CBD in July value creation German Residential: new investment in central Berlin in October Strong lease activity YTD: 17% of the total rents New agreements > 12 years average firm lease term with our Successful renewal of the partnership with AccorHotels in Hotel Real Estate partners Average firm lease term: 7 years ; Occupancy rate: 96% Office, Lille Acceleration of the strategy FONCIÈRE DES RÉGIONS 9 M 2015 4

KEY EVENTS OF THE PERIOD FRANCE OFFICES: A SUCCESSFUL INVESTMENT STRATEGY 4 new deliveries in Q3 totalling 65,800 m² Eiffage Campus - Vélizy-Villacoublay Cœur d’Orly Steel - Paris Green Corner – Saint-Denis (Grand Paris) 3,700 m² (Grand Paris) (Grand Paris) 23,200 m² 18,450 m² 20,400 m² Historic delivery activity in 2015: 9 projects for 104,810 m² > 84% let vs 71% at end-2014; average lease maturity close to 10 years > Increase in portfolio quality: strategic locations in Grand Paris and Major Regional cities, green buildings, strong tenant base > Attractive risk-return profile: € 309 million GS of investments; 7% yield on cost; more than 20% average value creation at end-June 2015 Reinforce portfolio and cash-flow quality Strong value creation driver FONCIÈRE DES RÉGIONS 9 M 2015 5

KEY EVENTS OF THE PERIOD OFFICES ITALY: STRATEGIC ACQUISITION IN THE CITY CENTER OF MILAN Prime locations and value creation potential > Acquisition from Cassa Depositi e Prestiti of 2 office buildings totalling 22,445 m² in Milan CBD > Redevelopment potential within 3-5 years > € 105.6 million ( € 51 million GS) investments (4,700 € /m²) including € 25 million of capex > Yield on cost of 6.2% on average Via Principe Amedeo, Milan Corso Italia, Milan A new stage of development in an improving environment FONCIÈRE DES RÉGIONS 9 M 2015 6

KEY EVENTS OF THE PERIOD OFFICES ITALY: A NEW STEP AND STEADFAST AMBITION A leader in Italy > Foncière des Régions in Italy: a leader with a € 4.0 billion portfolio ( € 1.9 billion GS) held through Beni Stabili > 48% located in Milan; 42% of Telecom Italia assets > 92.6% occupancy rate; 10 years average firm lease maturities Accelerate the improvement of quality to help grow rental income and values Symbiosis, Milan Accelerate Focus on Reduce the offices in Telecom Italia development Milan exposure pipeline Change of management to drive new momentum Tour Garibaldi, Milan Make the local platform a key player in the Italian real estate market’s recovery FONCIÈRE DES RÉGIONS 9 M 2015 7

KEY EVENTS OF THE PERIOD GERMAN RESIDENTIAL: A NEW MAJOR INVESTMENT IN CENTRAL BERLIN Investment in a € 348 million ( € 221 million GS) portfolio 1 > Voluntary public tender offer on Berlin IV, real estate company listed in Copenhagen Investment in A prime portfolio 2,735 units > Prime buildings: 70% of Altbau buildings (built before 1918) Others Reinickendorf 5% > Central location: 80% in the best central districts of Berlin 4% Mitte Spandau 19% 4% Pankow 8% Steglitz- Portfolio split Zehlendorf Neukölln by district 7% Berlin Property management potential: +45% 15% (in value) > Rents: € 16 million and 6.7 € /m² A Tempelhof- portfolio > Schöneberg Benefit from a +43% reversionary potential management 14% > Charlottenburg- to galvanize Reduce the 4.2% vacancy rate Wilmersdorf Friedrichshain- 12% Kreuzberg Asset management potential: +50% 12% > Possible creation of 100 new apartments > Privatization potential: 50% margin; 30% of the portfolio to be sold progressively from 2017 Rely on a well-experienced local team Berlin FONCIÈRE DES RÉGIONS 9 M 2015 8 1 Pending successful completion of the offer. The offer is made on customary terms and conditions, including that FdR following the offer holds 50% of the voting right of Berlin IV

KEY EVENTS OF THE PERIOD HOTELS IN EUROPE: RENEWAL OF THE PARTNERSHIP WITH ACCORHOTELS AccorHotels portfolio: one of the best in its market > AccorHotels: 6% of the rents GS; 34% of Foncière des Régions lease maturities for 2017 and 2018 1 st sale and leaseback of AccorHotels in 2005-2006; 91% in France and 9% in Belgium > > Lease structure: rents variable with the hotel’s revenues > 12 years firm 80 Hotels ( € 1.0 bn): lease renewals Better growth potential  i > Same conditions Better portfolio quality  i Targeted locations 123 Hotels; € 1.3 bn (100%) Best performing hotels New development capacities  i > At appraisal value 43 Hotels ( € 281 m): disposals before H1 2016 > Average yield: 6.2% > 50% in small French regional cities > Weaker hotels performances Strengthen the partnership with AccorHotels Increase hotel operators’ and Geographic's diversifications FONCIÈRE DES RÉGIONS 9 M 2015 9

Operating performance Steel – Paris 10

OPERATING PERFORMANCE A GOOD LETTING ACTIVITY € 97 million GS in lease agreements* YTD > Secures 17% of total annualised rents > Average maturity: 12 years firm Like-for-like rents on renewals: -3.3% and stable excluding Telecom Italia > Offices France: 45,855 m² of renewals close to passing rents (-2%) > Offices Italy: 38,951 m² of renewals excluding Telecom Italia agreement with a +2% increase in rents Steel (Paris – Trocadero) – 3,700 m² Oméga (Levallois-Perret) – 11,488 m² Telecom Italia (Italy) Garibaldi Tower (Milan) New letting to Group OnePoint / 9 years Renewal with Lagardère / 6 years Extension of the leases / 15 years Reletting of 6,176 m² / 5 years 6.9% reduction in rent Disposals and capex program Rely on the quality of the portfolio and the partnership strategy FONCIÈRE DES RÉGIONS 9 M 2015 11 * New lettings, renegotiations and renewals

OPERATING PERFORMANCE 9 MONTHS 2015 REVENUES: GROWTH OF 5.4% Rental Change on Occupancy Residual firm terms Change in rental income at like-for-like scope Group Share income Change like-for-like rate of leases ( € m) basis 95.5% 1 Steel letting to take effect in early 2016 Offices - France 180.1 + 0.9% + 0.7% 5.4 years +4 years of maturity 79.2 - 9.6% - 2.6% Offices - Italy 92.7% 9.8 years -0.3% excluding Telecom Italia 259.2 - 2.6% - 0.4% Offices 94.2% 6.6 years +3,2% in Berlin, Dresden and Leipzig Residential Germany 85.5 + 11.7% + 2.1% 97.5% n.a. 9.7 years 2 Hotels/Service Sector 60.1 + 58.7% + 0.4% 100% +3 years of maturity Other (French Resi.) 10.4 n.a. n.a. n.a. n.a. +1.4 year vs 2014 with Telecom Italia and AccorHotels 96.0% 1 7.2 years 2 Total 415.2 + 5.4% + 0.2% agreements 1 Including Steel ; 2 post AccorHotels agreement Indexation: 0.4% Occupancy rate: 0.0% Renewals: -0,2% Growth supported by a strong investment activity FONCIÈRE DES RÉGIONS 9 M 2015 12

OPERATING PERFORMANCE 9 MONTHS 2015 INVESTMENTS: € 1.9 BILLION COMMITTED A dynamic investment activity financed by disposals and the € 255 million capital increase in early 2015 Investments Investments Yield € m; 9 months 2015 including duties (Group Share) (Group Share) (100%) Capex on the development pipeline Offices – France 231 231 7.0% Offices - Italy 81 39 6.2% Yield on cost on offices post redevelopment Offices 312 270 6.8% Residential Germany 867* 543* 5.0%* Hotels/Service Sector 763 532 6.3% Total 1,942 1,345 5.9% Record investment activity with attractive risk-return profile FONCIÈRE DES RÉGIONS 9M 2015 13 * Pending successful completion of the offer Berlin IV ( € 348 million and € 221 million GS)

OPERATING PERFORMANCE 9 MONTHS 2015 INVESTMENTS: QUALITY AND GROWTH German Residential: buoyant acquisitions activity in good conditions > € 867 million ( € 543million GS) of acquisitions YTD vs € 500 million objective for 2015 > Focus in dynamic cities (96% in Berlin and Hamburg) with growth potential (35% average reversionary potential) > Transformation underway: 55% of the € 3.3 billion portfolio is in Berlin, Hamburg, Dresden and Leipzig vs 24% in 2013 Hotels in Europe: strengthen our leadership position > € 763 million ( € 532 million GS) of investments YTD > Diversity in the investment modes to fit hotel operators needs: acquisitions, developments and conversions, management contracts > Transformation underway: diversification of operators (50% AccorHotels vs 62% in 2013); geographic diversification (30% outside France vs 20% in 2013) A dynamic and qualitative asset rotation Motel One, Frankfurt Residential, Berlin FONCIÈRE DES RÉGIONS 9M 2015 14