h1 2017 results: solid performances and pursuit of the ... · h1 2017 revenues : +2.8% increase h1...

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


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


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


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


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


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%


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



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



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


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


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%


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


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


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


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%


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


H1 2017: EXTENSION OF THE DEVELOPMENT PIPELINE IN BERLIN

H1 2017 RESULTS 24

€400 million1

of development pipeline identified

86% in Berlin


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%)


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


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


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%


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%


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


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


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


€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


55% secured during H2 2016


€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


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


+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%


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


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


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


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


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:


FINANCIAL AGENDA

H1 2017 RESULTS 43

Q3 2017 Revenue: 26 October 2017

Appendix


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


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


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


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.



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


(%)Total


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 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


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 Italy Offices 91,000 m² 302 58% 174 5.9% 42% 83



52H1 2017 RESULTS

Projects in Group share, €million Location ProjectSurface 1

(m²)Target rent


(%)Total


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.


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


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


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


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%


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


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


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


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


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


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


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

h1 2017 results: solid performances and pursuit of the ... · h1 2017 revenues : +2.8% increase h1...

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