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 centersTransportation hubs
Develop tomorrow’s buildingsSmart and efficient buildings
Mixed-use projects
Client centricEnhanced services for our clients
Create a productive and well-being environment
14 deliveries in 2017100,000 m² of offices
830 hotel rooms
€1.2 billion1 acquisitions in Berlin, Milan,
Barcelona & Madrid
Launch of a flexible and co-working workspace
offer
1 €614 million Group Share
H1 2017achievements
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
offices 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 OfficesParis, Milan, Lyon, Marseille
€280 million in HotelsParis, Lyon, Berlin, Munich, Milan
€400 million in ResidentialBerlin
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 investmentssince 2014
Mostly in Paris, Berlin & Milan
€2.7 bndisposals since 2014
Non core assets
One of the strongest ROE of its sector6.8%
(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
RECURRINGNET 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
OCCUPANCYRATE
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 marketAverage economic rent for new/refurbished
offices 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 marketAverage 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 BerlinMietspiegel index evolution since 2013
(in €/m²/month)
90
95
100
105
110
115
120
2013 2014 2015 2016 May 2017
Hotels in EuropeRevPar1 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 rate6.5%
Obsolescence issueNo short-term oversupply risk
Economic rents +4% vs 2015
Greater Paris office marketpositively oriented
Rental growthlike-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 - Lyon10,700 m²
Hermione - EuromedMarseille
10,400 m²
Thaïs Levallois-Perret
5,500 m²
O’rigin - Nancy6,300 m²
100%
let
100%
secured
66%
let
91%
let
New in H1 2017Under final negotiation
New in H1 20173,530 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 - EuromedMarseille
13,400 m²
New St CharlesReims
10,300 m²
Art & Co - Paris13,500 m²
100%
secured
100%
let
Advanced
negotiations
ongoing
100%
let
New co-working activity
for 5,000 m²
New in H1 2017Under final negotiation
1 €250 million Group Share
FONCIÈRE DES RÉGIONS
CLIENT CENTRIC: A NEW FLEXIBLE & CO-WORKING ACTIVITY
H1 2017 RESULTS 14
DELCASSEPARIS CBD
EUROMED CENTERMARSEILLE
October 2017
2,300 m²
GARE DE LYONPARIS 12th
October 2017
3,300 m²
COMPANS CAFFARELLI TOULOUSE
Q2 2018
3,300 m²
GARE ST JEAN LGVBORDEAUX
Q2 2018
3,000 m²
Silex²LYON
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 identifiedTarget return : c. 30% margin vs rents
1st openings coming soonCreate a territorial network in the major French cities
Launch of a new third-places offer
FONCIÈRE DES RÉGIONS
CONCIERGE RECEPTION DESK
PATIOCONVENIENCE
STORE
AUDITORIUM
VIP ROOMRESTAURANT
FITNESS
ROOM
RESTAURANT CAFETERIA
TERRACES
CAR PARKS
TERRACES
TERRACESTERRACES
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
Portfolioex-Telecom Italia:
+2.9%
-1.5%
-4.1%
+0.2%
1.5%
2014
2015
2016
H1 2017
Occupancy rateex-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 marketpositively 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 pipeline224,000 m²; c.90% in Milan
€332 million2
committed projects58% pre-let
Via Cernaia, MilanFully 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 portfolio17 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 asset11,705 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 baseClosing of the partnership on TI portfoliowith two major international investors
> 40% share of the portfolio to Crédit Agricole Assurances & EDF Invest
> Equivalent of €618 million1 of underlying assets
Milan, San NicolaoNaples, 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 of 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
Averagelocation
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
of 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 apartmentsIncrease 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 of hotel operators
5755
47
3026
11 10
Host FDM HPT Apple HospitalityREIT
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 propertiesIncrease 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 ina 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 yieldDrivers for growth: Asset management
Variable component in the leases
4.0% immediate yieldDrivers for growth:
Reduce vacancy (4.5% yield post reletting) +35% reversionary potential
5.7% immediate yieldDrivers 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 comeAlready €392 million Group Share (€642 million 100%) secured
7.1% average yield35 assets
France Offices:Focus on strategic locations
€105 million
6.3% average yieldShare 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 yieldOnly €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)
ValueH1 2017
100%
ValueH1 2017
Group Share
Like-for-likechange
Yield2016
YieldH1 2017
% ofportfolio
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 2017vs 44.6% end-2016
5.8-year
vs 5.7-yearend-2016
Betterdiversification 40%
15%
40%
4%Investor mortgages
Bonds
Corporate credits
Bank mortgage loans
55% unsecured
debt
Lower cost of 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 2014EPRA 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
€millionRental income
100%
Rental income
Group ShareChange
Change on like-for-like basis
Occupancy rateResidual firm
terms of 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
41
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 42H1 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 pipelineNew 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 AcquisitionsYield
Acquisitions AcquisitionsYield
100% Group Share 100% Group Share 100% Group Share
Offices - France 83 68 3 3 6.7% 0 0 n/a
Offices - Italy 31 16 165 86 5.5%* 29 15 8.9%
Germany Residential 0 0 376 241 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
YieldTotal
Realized Disposals
(agreements as disposals agreements Total Margin vsof 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 0 120 120 2.8% 4.0% 39
Group Share 343 0 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 managedpipeline
FONCIÈRE DES RÉGIONS
COMMITTED PIPELINE: €1.1 BILLION AT 100% (€603 MILLION GS) - 1/3
50H1 2017 RESULTS
Projets in Group share, €millionSurface 1
(m²)Target rent
(€/m²/year)Pre-leased
(%)Total
Budget 2Target Yield 3 Progress
Capex to beinvested
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 park2 Total cost including land value & financial costs3 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 park2 Total cost including land value & financial costs3 Yield on total rents including car parks, restaurants, etc.4 Under final negotiation
H1 2017 RESULTS
Projects in Group share, €million Location ProjectSurface 1
(m²)Target rent
(€/m²/year)Pre-leased
(%)Total
Budget 2Target Yield 3 Progress
Capex to beinvested
Off
ices F
ran
ce
Euromed Center - Bureaux Floreal (FdR share 50%) 4 Marseille Construction 13,400 m² 265 100% 18 >7% 87% 2
EdoIssy Les Moulineaux
- Greater ParisRegeneration-
Extension10,800 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
Off
ices ita
ly
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
52H1 2017 RESULTS
Projects in Group share, €million Location ProjectSurface 1
(m²)Target rent
(€/m²/year)Pre-leased
(%)Total
Budget 2Target Yield 3 Progress
Capex to beinvested
Ge
rma
ny R
es
ide
nti
al 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
Ho
tels
in
Eu
rop
e
B&B Lyon Lyon - France Construction 113 rooms na 100% 2 5.5% 79% 0
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% 0
Total deliveries 2017 823 rooms na 100% 23 6.2% 73% 6
B&B Chatenay MalabryChâtenay Malabry -
Greater ParisConstruction 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% 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 park2 Total cost including land value & financial costs3 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 ProjectSurface 1
(m²)Delivery
timeframe
Off
ices F
ran
ce
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
Ita
ly
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
Averagelocation
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%
20132009
+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 office markets
FONCIÈRE DES RÉGIONS
PARIS & GRAND PARIS OFFICE MARKET
64Sources: 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-DenisGennevilliers
Asnières
Nanterre
Neuilly
Suresnes
Saint-Cloud
Boulogne-
Billancourt
Chatenay-
MalabryAntony
Rungis
Orly
Cachan
Clamart
Montrouge
Arcueil
Ivry-sur-Seine
Charenton-Le-Pont
Vincennes
Bagnolet
AubervilliersClichy
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 bninvested 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
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 2017 RESULTS