Q3 2017 Revenues: A robust European dynamic 26 October 2017 - PowerPoint PPT Presentation

Q3 2017 Revenues: A robust European dynamic 26 October 2017

CONTENTS > RENTAL ACTIVITY: PURSUIT OF THE POSITIVE TREND > INVESTMENT ACTIVITY: REINFORCEMENT IN THE STRATEGIC LOCATIONS > NEW STEPS IN THE SIMPLIFICATION OF THE GROUP STRUCTURE > KEY TAKEAWAYS > APPENDIX FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 2

Rental activity: pursuit of the positive trend Q3 2017 REVENUES 3

RENTAL ACTIVITY: PURSUIT OF THE POSITIVE TREND IN ALL OUR MARKETS France Offices Sound performance 95.9% Occupancy rate vs 2016 (95.6%) 60,623 m² of new leases 1 8-year average firm maturity +1.0% Like-for-like rents vs 2016 (-0.5%) Italy Offices Increased occupancy Major renewal in Occupancy rate on 93.1% vs 2016 (91.6%) portfolio ex-Telecom Italia Via Montebello, Milan CBD 18,426 m², let to Intesa Sanpaolo 1.5% Like-for-like rents on Renewal at passing rent; 9 years vs 2016 (0.2%) portfolio ex-Telecom Italia € 500/m² office rent FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 4 1 Including 24,108 m² of new offices disposed to an end-user

RENTAL ACTIVITY: PURSUIT OF THE POSITIVE TREND IN ALL OUR MARKETS Widespread growth …Mainly coming from Germany Residential acceleration… relettings (vs 2016) Acceleration of the growth Hamburg +5.0% 8% 51% Modernization 98.3% (vs +3.8%) Occupancy rate Berlin Reletting vs 2016 (98.2%) +5.7% (vs +4.6%) NRW +4.5% Like-for-like rents +3.4% Dresden vs 2016 (+3.6%) & Leipzig 41% (vs +2.8%) +3.5% Indexation (vs +3.7%) Hotels in Europe In a growing European market Variable rents 100% Occupancy rate (AccorHotels) vs 2016 +4.8% +2.1% Like-for-like rents vs 2016 (-2.9%) FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 5

RENTAL ACTIVITY: SUCCESSES OF THE DEVELOPMENT PIPELINE 98% Occupancy rate of the 2017 deliveries 13 deliveries in 2017; 10 offices, 3 hotels Rental levels > expectations 98,400 m² of offices; 683 hotel rooms >30% Target value creation The 2 largest deliveries of the year fully pre-let: Art&Co, Paris Via Cernaia, Milan 13,400 m², delivery Q4 2017 8,300 m², delivery Q4 2017 100% pre-let 100% pre-let Of which 5,000 m² of flex-offices by FdR Amundi FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 6

REVENUES: A SOUND FIRST 9 MONTHS Rental Rental Change Residual income Occupancy Group Share; € million income Change like-for- firm terms (Group rate (100%) like of leases Accelerated rental growth Share) Like-for-like evolution of the rents 1 Offices - France 204.1 185.2 -1.5% +1.0% 95.9% 5.1 years +2.0% Offices - Italy 152.4 74.3 -1.9% +0.9% 95.5% 7.4 years Of which Telecom Italia 73.6 33.1 -14.7% +0.2% 100% 13.1 years offices Q3 2017 Of which portfolio ex-Telecom 2 78.8 41.1 +4.8% +1.5% 93.1% 4.4 years Italia Residential - +0.2% 3 171.9 106.5 +8.2% +4.5% 98.3% n.a. +0.2% Germany -0.1% 2014 Hotels/Service 4 155.6 70.2 +13.6% +2.1% 100% 10.6 years 2016 Sector 2015 Other (French Resi.) 8.8 5.4 -25.5% n.a. n.a. n.a. 5 6 Total 692.8 441.6 +2.4% +2.0% 97.0% 6.7 years 1 4 • Renewals: +0%; Indexation: +0.3%; Occupancy rate: +0.7% • Acquisitions in Madrid & Barcelona 5 2 • • Increase in occupancy rate (91.6% end-2016) Renewals: +0.6%; Indexation:+0.9%; Occupancy rate: +0.5% 6 • 3 Longstanding high occupancy rate: 97% (vs 96.7% end-2016) • Acquisitions in Berlin FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 7

Investment activity: reinforcement in the strategic locations Q3 2017 REVENUES 8

SILEX 2 : A NEW DEVELOPMENT FOLLOWING THE SUCCESS OF SILEX 1 A longstanding partnership and development story in a prime location in Lyon Part-Dieu … 2013-2017: Departure of EDF and development of Silex 1 2001: Sale-and-leaseback with EDF > Development-extension of 10,700 m² (+3,500 m²) > 2 buildings of 7,200 m² and 15,300 m² > 100% let to BNP Paribas and Nextdoor > Price: € 22.1 million; 11% yield …reaching a new step today: launch of Silex 2 & financial partnership agreement Launch of Silex 2 new development > New tower of 30,900 m² (+15,600 m² extension) > Total cost: € 166 million; ~6% yield on cost Share Silex 1 and 2 with ACM Disposal of 49.9% of Silex 1 and Silex 2 to ACM > > At an average yield of 4.7% Participate in the renewal of the 2 nd French business district Work the portfolio to extract value and growth Mitigate the development risk and crystallise the value creation FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 9

GERMANY RESIDENTIAL: CONTINUE TO SOURCE NEW ACQUISITIONS € 525 million 1 of acquisitions of which € 149 million 1 in Q3 In Berlin (84%), Dresden & Leipzig High quality portfolio mostly in inner-city Berlin Significant rent reversion potential (+35%) Opportunities to develop new units Acquisitions YTD - Key figures Strong growth potential: 3,550 units at € 1,960/m² 4.4% yield post reletting of 9% average vacancy ~35% rent reversion potential +16,000 m² of potential new developments FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 10 1 € 338 million & € 97 million Group Share

HOTELS: ACQUISITION OF A NH PORTFOLIO IN GERMANY AND THE NETHERLANDS 4 NH hotels in Berlin, Hamburg, Amsterdam & Amersfoort 2017: acquisition of call options to buy the hotels 2018: exercise of the call options 4* city center hotels; 630 rooms Variable leases for 20 years with minimum guarantee Key figures € 111 million ( € 47 m Group Share) - € 177 k/room Hamburg (127 rooms) 5.7% rental yield (5.1% on minimum guarantee) Amsterdam Berlin Strong profitability and growth potential: (290 rooms) (99 rooms) Amersfoort ~50% average Ebitdar Margin (114 rooms) Average Daily Rate < € 100 FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 11

€ 949 MILLION DISPOSALS YTD ( € 601 MILLION GROUP SHARE) 8.4% Non-core average & mature margin vs last assets appraisal value Germany Residential in NRW Victor Hugo - Issy-Les-Moulineaux Hermione & Floreal in Euromed Center 5,600 m²; € 38 million € 200 million ( € 122 million Group Share) – Marseille 5.15% exit yield 23,800 m²; € 92 million ( € 46 million Group Share) +36% +17% +18% value margin margin creation FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 12

New steps in the simplification of the group Q3 2017 REVENUES 13

HOTELS: MOVE PORTFOLIO UPMARKET & STRENGTHEN GROWTH PROSPECTS Foncière des Régions: a leader in hotels in Europe through two major investment vehicles Foncière des Murs FDM Management Operating properties Lease properties (franchise/management contracts) 1 st shareholder: FdR (50%, limited partner) 1 st shareholder: Foncière des Murs (40.7%) > Portfolio: € 3.0 bn 1 ( € 1.5 bn Group Share) > Portfolio: € 1.3 bn ( € 0.3 bn Group Share) > 30 hotels; 6,282 rooms > 403 hotels; 37,950 rooms > 4 operator partners / 11 hotel brands > 17 operator partners / 24 hotel brands 2% 16% 12% 77% 6% 48% 17% 2% 15% FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 14 1 Hotels only, excluding stake in FDM Management Figures at end-June 2017 post acquisitions secured in June and realized since then (for € 150 million and € 75 m Group Share)

HOTELS: MOVE PORTFOLIO UPMARKET & STRENGTHEN GROWTH PROSPECTS Merger of FDM with FDM Management Geographic breakdown > At June 2017 EPRA NNNAV post merger (by value) > Early 2018 Netherlands Portugal > Maintained control over FDM by Foncière des Régions (42%, limited partner) 2% 1% France Germany 39% A combined hotel portfolio of € 4.3 bn 1 ( € 1.8 bn Group Share) 34% > 433 hotels; 44,232 rooms > 18 operators partners / 28 hotel brands Belgium Spain 10% 14% > Increase exposure to hotels: 13.8% of total portfolio vs 13.4% at end-June 2017 Hotels revenue breakdown post merger Portfolio upscaling Increased exposure to Germany, Reinforced value creation Management especially Berlin (% of upscale & midscale hotels) capacity contracts (Ebitda) (% of the portfolio value) 31% vs 16% before 68% 34% 15% Asset management optimization Fixed leases Variable 45% Increased property development capacities leases vs 55% 25% 63% 8% 24% Germany Before Berlin vs 29% Before FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 15 1 Hotels only, excluding stake in FDM Management Figures at end-June 2017 post acquisitions secured in June and realized since then (for € 150 million and € 75 m Group Share)

SIMPLIFY THE GROUP STRUCTURE: DE-LISTING OF FDL France Residential: a non strategic activity Streamlining of the Group structure Portfolio end-June: € 371 million; 1.8% of FdR total portfolio Through FDL, listed subsidiary of FdR (at 61%) October 19 th : transfer agreement on 38.6% of FDL share capital > With Cardif, Crédit Agricole Assurances & Generali Vie > 70% in exchange of Foncière de Implied valuation: Régions shares (1 FdR for 20 FDL) € 4.21/share 9.5% discount on NAV 1 > 30% in cash ( € 4.65/share) November 2017: buyout offer followed by a squeeze out in January 2018 > On the 0.2% remaining free float (~100,000 shares) > Price to be proposed at € 8.06 per share (3-month VWAP) FONCIÈRE DES RÉGIONS Q3 2017 REVENUES 16 1 Valuation based on Foncière des Régions’ EPRA NNNAV at the end of June 2017 standing at € 80.5 per share

Key takeaways Q3 2017 REVENUES 17