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Asset Management is paying off

Annual results 2015

18 February 2016

CONTENTS

FONCIÈRE DES RÉGIONS 2

>1. STRATEGIC POSITIONING

>2. REAL ESTATE ACTIVITY

>3. FINANCIAL RESULTS

>4. OUTLOOK

>APPENDICES

3

1. Strategic positioning

Green Corner - Greater Paris

FONCIÈRE DES RÉGIONS

A GROWING AND BETTER QUALITY PORTFOLIO

ANNUAL RESULTS 2015 4

STRATEGY

An integrated operator with highly skilled local teams

€11.0 billion portfolio Group share (€17.7 billion at 100%)

+€1.2 billion Group share in 2015 (+13%)

17%

20%

45%

13%

5%

France Offices> Sound fundamentals; market depth

> Attractive yield; value-creating pipeline

German Residential> Sound economy; buoyant market

> Significant reversion potential; development potential through acquisitions

Non-strategic1

> including France Residential (3%)

Hotel real estate> Leadership position; impressive track record

> Strong relationship with operators; high operating margin

Italy Offices > Leadership position; prime assets> Record cash flow visibility

+3 pts in 2015

+4 pts in 2015

-4 pts in 2015

1 Post disposal of €100 million of Logistics assets in early 2016

FONCIÈRE DES RÉGIONS ANNUAL RESULTS 2015 5

STRATEGY

OUR POSITIONNING: QUALITY AND ASSET MANAGEMENT VALUE CREATION

Strong and secure profitability

Total return of 7.6%1 per year since 2010

1 IPD Index methodology: rental and capital yield (change in value net of capex)

Secured cash-flows

Value creation

track-record

Development pipeline strategy

Asset management

expertise

Partnership strategy

Diversification

Residential – BerlinOffice – Greater Paris


STRATEGY

2015: AN OUTSTANDING YEAR

A better portfolio

A better debt

profile

Qualitative asset

rotation

€2.1 billion investments(€1.4 billion Group Share)

€1.4 billion disposals(€0.9 billion Group Share)

Increased exposure in German

Residential and Hotels real estate

Successful development

pipeline15 deliveries

Successful partnership agreements

Lower risk profileHigher potential

High occupancy rate96%

Long lease firm maturity7-year

Improvement in the S&P rating: BBB vs BBB-

Success of the capital increase (€255 million)

Record level of debt financings and refinancings (€4.2 billion and €2.5 billion GS)

> Cost of debt: 2.8%; maturity: 5 years

Major lease agreements

Source of new deals

7

2. Real Estate activity

Eiffage Campus – Greater Paris

8

France Offices

Astrolabe - Marseille


FRANCE OFFICES

A SOLID SUSTAINABLE POSITIONING

Historically high occupancy rates

94.7% 94.3%96.0% 95.7% 95.8%

96.8% 95.8%

2009

2015

20092015

4.8

5.75.7

5.35.7

5.4

5.4

Long-term leases

(firm maturity in years)

2009

2020

Grade A buildings

(% of green France Offices)

> 2/3

100%

61%

50%41%

24%7%

201520142013

2012

2017

Quality cash-flows

Quality assets

Value creation drivers

1 Acquisitions and development pipeline since 2009

Asset management Development

pipeline

Partnership strategy

Long-term leasesValue creation

reserve€1.2 billion

52% of our portfolio bought or developed

since end-20091

+11 pts

Portfolio

€5.7 billion (100%)

€4.8 billion (GS)

Strategic locations

Paris (35%)

Inner suburbs(41%)

Major Regional Cities(12%)

Non-core(11%)


FRANCE OFFICES

2015: ASSET MANAGEMENT OVERPERFORMANCE

Strengthen portfolio qualityCreate value through dynamic asset rotation

> Success of the development pipeline (92,990 m² let; €25 million in rents)

> Renewals close to passing rents (96,077 m²; €20 million in rents; -1.7%)

> Rents like-for-like: +0.8%

> Values like-for-like: +7.2%

• Strong performance in Paris (+12%) and Inner suburbs (+8%)

• Success of the development pipeline and asset management: 40% of the like-for-like growth

> 9 projects delivered for 105,000 m² and €444 million cost (€309 million GS)

> Opportunistic acquisitions in a very competitive market (€46 million GS)

Offices in Levallois-Perret; land bank in Montrouge (Greater Paris)

> Disposals: €120 million of non-core assets; 16% average margin

Good letting activity in an

improving market

Asset rotation:

quality and return

Strong operating

performance

Portfolio

€5.7 billion (100%)

€4.8 billion (GS)



ACCELERATION OF THE DEVELOPMENT PIPELINE STRATEGY

FRANCE OFFICES

Astrolabe (Marseille)

14,446 m²

98% let (multi-tenants)

Strategy: development of a new

area in the center of Marseille

ANNUAL RESULTS 2015

Respiro

(Nanterre – Greater Paris)

11,100 m²

100% let (Vinci)

Strategy: turnkey

development with a partner

Green Corner

(Saint-Denis – Greater Paris)

20,817 m²

86% let (HAS; Systra)

Strategy: use of a land bank in a key

business district of Greater Paris

Eiffage Campus

(Vélizy – Greater Paris)

23,242 m²

100% let (Eiffage)

Strategy: turnkey

development with a partner

Quality locations and buildings

Low risk, high return

> 90% occupancy rate vs 71% in early 2015 ; 10 years average firm lease maturity

> 7.1% average yield on cost1; 28% total average value creation

1 Headline gross yield

Portfolio

€5.7 billion (100%)

€4.8 billion (GS)

9 deliveries in 2015


Pont de Levallois - Bécon

Acquisition of OMEGA B: value creation opportunity

> Strategic acquisition of the 3rd building (OMEGA B) of the office block already

owned by Foncière des Régions (OMEGA A & C)

> Quality location in the center of Levallois-Perret (Greater Paris)

> 4,698 m² of offices let at 67% for 2.9 years with Lagardère as main tenant (31%)

> Cost: €25 million (5,300 €/m²)

> Strategy:

• Short term: reduce vacancy rate

• Medium term: merge the 3 buildings to create an asset of 17,700 m²; use

rights to increase the size by c. 3,500 m²

Yield potential of 6.4%

Value creation potential

OMEGA A & C: secure cash-flows

> OMEGA A & C: 11,490 m² of offices in Levallois-Perret (Greater Paris)

> Fully let to Lagardère: renewal of the lease for 6 years firm

> Rents: -2%; value creation: +14%

12

EXAMPLE OF OUR ASSET MANAGEMENT EXPERTISE: OMEGA

ANNUAL RESULTS 2015

FRANCE OFFICES

Potential of 20,000 m² of new offices in a strategic location


Paris-Littré

> 3,560 m² of offices in Paris 6th

> 1st step: refurbishment

> 2nd step: departure of Orange and re-

letting to Kering (9-year firm; no

vacancy period)

> Rents: +33%; value creation >30%

In line with our strategy

> Partnership strategy

> Real estate quality

> Secured cash-flows

> Value creation

13

EXTRACT THE VALUE OF THE ORANGE PORTFOLIO

ANNUAL RESULTS 2015

FRANCE OFFICES

More to come: 60% of the Orange portfolio is located in Paris (€0.8 billion GS)

Paris Littré

Paris 6th district

Steel

Paris 16th district

Paris-Steel

> 3,690 m² of offices in Paris 16th

> 2012-2015: departure of Orange and full

restructuring

> Sept. 2015: 100% let to Groupe OnePoint

(9-year firm)

> Yield on cost: 6%; value creation >30%

In line with our strategy

> Real estate quality

> Secured cash-flows

> Value creation

Rennes

Sèvres-Babylone

Trocadéro

Boissière


FRANCE OFFICES

AMBITIONS 2016: CONTINUE THE DEVELOPMENT PIPELINE DYNAMIC

Record level of deliveries expected in 2017

€700 million GS

> Projects controlled by Foncière des Régions

> Mix of new constructions and redevelopments

> Launch of the construction work after pre-let (for significant projects) or building permit

Managed pipeline

Committed pipeline

Riverside – Toulouse

Portfolio

€5.7 billion (100%)

€4.8 billion (GS)

9

Deliveries

€309 million

O’rigin

Nancy

New development

€20 millionEDO

Issy-les-Moulineaux

(Greater Paris)

Redevelopment-extension

€83 million

End 2014

(Group share)

TraversièreParis

Redevelopment

€122 million

Euromed Center

(Hermione & Floréal)

Marseille

New developments

€32 million€506

million

€526

million

End 2015

(Group share)

Riverside

Toulouse

New development

€32 million


FRANCE OFFICES

RENEWAL OF THE PIPELINE: TRAVERSIÈRE

Acquisition in 2009

> 13,500 m² office building built in 1930; yield of 7.3%

> Strategic location in Paris:

• 200 m from Gare de Lyon, well connected

• Lack of new buildings in the area: < 4% vacancy rate, below Paris average

Strategy: refurbishment

> Departure of SNCF in December 2015 => opportunity to create a new building

fitted to the evolution of the demand

> €122 million cost including €28 million of capex; c. 5.5% target yield on cost

> Delivery in Q4 2017

Traversière

Gare d’Austerlitz

Gare de Lyon

Quai de la Rapée

BEFORE AFTER


RENEWAL OF THE PIPELINE: EDO

16

Acquisition

> 7,500 m² office building; 7.9% yield

> Short-term lease (3 years) to Groupe

Yves Rocher

> Strategic location in Greater Paris

DeliveryRedevelopment - extension

> Surface: 10,800 m²

(+3,300 m² in additional surfaces)

> Cost (including land value): €83 million

> Target yield on cost: 6%

> Green certification

HQE Excellent

BREEAM Very good

Construction workFebruary 2015 Q4 2017July 2011

ANNUAL RESULTS 2015

FRANCE OFFICES

Departure of the tenant

AFTERBEFORE

Issy-Val de Seine

Maire d’Issy

Paris

Issy-les-Moulineaux

Boulogne-Billancourt

EDO


FRANCE OFFICES

AMBITIONS 2016: RELY ON OUR POSITIONING TO MAKE THE DIFFERENCE

Long term cash-flowsValue creation

Still buoyant investment market

Improving letting market

Positive economic conditions

Pursue the rotation

dynamic

Pursue the asset

management work

Strong development pipeline: €200 million in capex for 2016

Generate new developments with our partners

Increase quality: €200 million in disposals of non-core assets

Lease expirations: no major issues

> 2016 expirations (1st break): 11% of the rents

Generate new opportunities with our partners

Percier –Paris

Thaïs –Greater Paris

Portfolio

€5.7 billion (100%)

€4.8 billion (GS)

18

Italy Offices

Symbiosis - Milan


ITALY OFFICES

A LEADING OPERATOR IN ITALY WITH A RENEWED AMBITION

Portfolio

€3.9 billion (100%)

€1.9 billion (GS)

A key operator to take advantage of the current cyclical improvement

A leader in its market

Torre Garibaldi, Milan

Telecom Italia office, Milan

Secured cash-flows• 6.4% yield• 15-year leases

Quality locations• 5.1% yield• 5.3-year leases

Sound fundamentals

Office portfolio (non TI)€2.3 billion (59%)

73% in Milan

Telecom Italia portfolio€1.6 billion (41%)

In value

A €3.9 billion portfolio (€1.9 billion GS) owned through Beni Stabili

> Subsidiary at 48.5% of Foncière des Régions

Secured cash-flows and quality portfolio


> Secured rental base: 92.8% occupancy rate; 9.7-year average firm lease maturity

> Rents like-for-like: -4.1% impacted by the Telecom Italia deal (-2.5%) and vacancy

> Stable values like-for-like: -0.4%

• Telecom Italia portfolio: +0.4%

• Office portfolio (non TI): -0.9%


ITALY OFFICES

2015: A TRANSITION PHASE

Secure cash-flow basePotential for improvement

Success of the

Telecom Italia renegotiation

Operating performances

> Extension of the leases: +9 years to 15 years firm; 6.9% reduction in rent

> Quality improvement: disposal of 2 non-core assets for €126 million; €38 million capex program

> Redevelopment potential: 5 buildings in central Milan and Rome with possible vacancy by Telecom Italia

Portfolio

€3.9 billion (100%)

€1.9 billion (GS)

Symbiosis, Milan

Office, Milan

Positive change in appraisals: +€104 millionCore, Milan, long leases …

Negative change in appraisals: -€123 millionDynamic, vacant …


2015: LAUNCH OF A NEW INVESTMENT PHASE

Better asset qualityValue creation

Acquisition in prime locations and with value creation potential

> Acquisition of 2 office buildings totalling 22,445 m² in Milan CBD

> €105.6 million (€51 million GS) investments (4,700€/m²)

including capex (€25 million)

> Yield on cost of 6.2% on average

ANNUAL RESULTS 2015

ITALY OFFICES

Via Principe AmedeoAcquisition in 2016 (€42 million)

Immediate redevelopment into offices:

• €11 million capex

• delivery in 2018

Corso ItaliaAcquisition at end-2015 (€38 million)

50% let to ASL (public healthcare agency)

Redevelopment within 2/3 years:

• Mix residential (to be sold) - offices

• €14 million capex

Portfolio

€3.9 billion (100%)

€1.9 billion (GS)

Launch of the first phase of Symbiosis

> New office district on the limit of central Milan

> Next generation of buildings; competitive rent

> Potential for 125,000 m² of offices (€250 million capex - €121 m GS)

> Work launched on a first building; interest from end-users

DuomoBocconi University

Prada Foundation


ITALY OFFICES

AMBITIONS 2016: A CLEAR ROADMAP FOR A NEW PHASE

Reduce the vacancy rate

Vacant assets: 14% of the Office portfolio (non TI)

> Quality locations: 2/3 in Milan

Galvanize the vacant portfolio management

> €60 million (€29 million GS) capex on vacant assets => €16 million expected extra cash flows (€8 million GS)

Portfolio

€3.9 billion (100%)

€1.9 billion (GS)

San Nicolao, Milan

Torre Garibaldi, Milan

Reduce Telecom Italia

exposure

Objective 2020 of 20% of Italy offices portfolio vs 41%

Extract the redevelopment potential

> 5 buildings; 37,300 m² of offices

Focus on offices in Milan: objective 2020 of 80% of the portfolio

Value creation potential using our asset management expertise

Green offices: objective 2020 of 50% vs 22%

Accelerate quality

improvement

Increase quality; reduce riskImprove profitability

23

German Residential

Residential - Berlin


GERMAN RESIDENTIAL

2015: INCREASED EXPOSURE AND GROWTH PROSPECT

€871 million (€529 million GS) vs €500 million initial target

> Prime assets in city centers

> Average yield: 5.0%

> 32% reversionary potential

Disposal of €187 million (€114 million GS) in non-core assets in NRW1

> Average margin: 12%; Average yield: 6.6%

Rents like-for-like: +2.4% including +4.4% in Berlin

Value like-for-like: +5.0% including +12.2% in Berlin

Portfolio

€3.6 billion (100%)

€2.2 billion (GS)

Better qualityBetter growth prospect

1 North Rhine-Westphalia

Record level of

acquisitions

Another year of strong

organic growth

Berlin40% (vs 28%)

NRW1

46% (vs 64%)

A growing and better quality portfolio+31% vs end-2014

53% in dynamic cities vs 36% end-2014

Hamburg6% (vs 0%)

Dresden & Leipzig8% (vs 8%)

€3.6 billion €2.2 billion GS(vs end-2014)


2,0%2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2007

2010

2013

2014

2015


GERMAN RESIDENTIAL

2015: DRIVE PERFORMANCE THROUGH ACTIVE PROPERTY MANAGEMENT

Reversionary potential drives the strong rental growth in the dynamic cities (like-for-like growth in €/m²)

Successes of a strong local team Berlin

Hamburg

Berlin:+4.4%

2015Re-lettings:

+27%

Dresden & Leipzig:

+3.2%

2015Re-lettings:

+16%

NRW:+1.6%

2015Re-lettings:

+5.5%

Dynamic property management to reduce the vacancy rate and extract the potential of the acquisitions

Impact of the acquisitions


ACQUISITIONS 2015: OUTSTANDING YEAR WITH €871 MILLION INVESTED

GERMAN RESIDENTIAL

Berlin Tempelhof & Neukölln

€60 million (€39 million GS)

Yield: 4.8%; Price/m²: €1,720

Reversionary potential: +29%

Privatisation margin: +28%

ANNUAL RESULTS 2015

Dresden and Leipzig


Yield: 7.8%; Price/m²: €860

Reversionary potential: +15-20%

Berlin IV takeover bid


Yield: 4.6%; Price/m²: €1,790



Berlin Prime


Yield: 5.0%; Price/m²: €2,120



Hamburg


Yield: 5.6%; Price/m²: €1,860




ACQUISITIONS: SUCCESSFUL ASSET MANAGEMENT TRACK RECORD

GERMAN RESIDENTIAL

ANNUAL RESULTS 2015

Berlin

€75 million; yield: 6.5%

Rent/m²/month: 5.8€Berlin


Rent/m²/month: 6.1€

Rents: +4%/year

Value: +9%/year Growth

since acquisition

Rents: +3%/year

Value: +6%/year

Rents: +3%/year

Value: +7%/year

Berlin, Dresden



Berlin, Dresden & Leipzig



Rents: +6%/year

Value: +6%/year

Still room for growthRent reversion potential:

Berlin (+30%); Dresden & Leipzig (+15%); Hamburg (+30%)

Berlin, Dresden & Leipzig, Hamburg

€871 million, yield: 5.0%


Rent reversionpotential

+32%

2011

2012

2013

2014

2015


GERMAN RESIDENTIAL

AMBITIONS 2016: QUALITY ROTATION AND ORGANIC GROWTH

Continuous reduction of exposure to non-core assets in NRW (15% of the portfolio)

First privatisations in Berlin

Continue to benefit from strong market fundamentals and highly skilled local teams

Prime city center assets

Combine rental growth with medium-term potential for privatisations

Rely on the ability of the local team to source off-market transactions

Enhance the potential of 2015 acquisitions

Objective of +2.75% like-for-like growth in rent

Berlin

Berlin

Pursue acquisitions in dynamic

cities

Quality rotation

Organic growth

Portfolio

€3.6 billion (100%)

€2.2 billion (GS)

29

Hotel real estate in Europe

Sofitel - Lyon


2015: INCREASED EXPOSURE AND NEW DEVELOPMENT PHASE

Portfolio

€3.5 billion (100%)

€1.4 billion (GS)

Acquisition of 14.7% of the share capital of the subsidiary FDM (to 43.1%)

> Equivalent of €432 million in assets

€346 million (€111 million GS) in investments; 72% in Germany

New hotel operators partnerships

Management contracts

> Already €120 million in investments (€21 million GS)

Increased exposure

New development opportunities

Operating performances

(like-for-like)

Rents -0.6%: resistance despite terrorist attacks

> Including -1.6% on Accor variable rents

Value +3.1%: strong growth in Hotels

> Asset management: +6.2% for AccorHotels post lease extensions

> Success of the development pipeline: +11% value creation

Motel One, Germany

Accor, Boulogne - Paris

HOTELS IN EUROPE

13% of Foncière des Régions portfolio vs 9% at end-2014


ACCORHOTELS DEAL: ASSET MANAGEMENT EXPERTISE

> AccorHotels portfolio: 6% of the rents GS; 34% of Foncière des Régions lease maturities for 2017 and 2018

> 1st sale and leaseback of AccorHotels in 2005-2006; 91% in France and 9% in Belgium

> Lease structure: rents variable with the hotel’s revenues

Strengthen the partnership with AccorHotels

Increase hotel operator and geographic diversifications

Better growth potential

Better portfolio qualityTargeted locationsBest performing hotels

New development capacities

> 12 years firm

> At passing rents

> At appraisal value

> Average yield: 6.3%

Hotels: €1.5 bn (100%)124

Hotels (€1.1 bn): lease renewals78

Hotels (€0.4 bn): disposals in 201646 i

i

i

> Weaker hotel performance

> Includes all the hotels in small regional cities

Portfolio

€3.5 billion (100%)

€1.4 billion (GS)

HOTELS IN EUROPE


2015: BEING ABLE TO DELIVER ON EACH INVESTMENT MODE

32

STRATEGYSTRATEGYHOTELS IN EUROPE

ANNUAL RESULTS 2015

Natural ally of operators: Long-term cash-flows

Asset management value creation Pipeline of new deals

22 B&B hotels in Germany


Yield: 6.4%; 18 years firm

2 Motel One hotels


Berlin-Mitte; Frankfurt-Airport


Conversion into a Meininger hotel


Munich – Olympic Park

12,400 m² of offices converted in 2018


Development for Accor


Paris Airport – Charles-de-Gaulle

Ebitda yield: 8%-10%

Conversion into Louvre Hotels brand


Germany

Conversion of Motel One existing hotels

Ebitda yield: 8%-10%

6 deliveries in Germany & France


=> 11% value creation

6 new developments in Germany & France


Yield >7%; 12 to 20 years firm

Acquisition Developmentpipeline

Management contract

Acquisition of one Park Inn hotel


Louvain, Belgium

Ebitda yield: 8%

Portfolio

€3.5 billion (100%)

€1.4 billion (GS)

€178 m(€69 m GS)

2015 deliveries€31 m1

(€13 m GS)

€120 m(€21 m GS)

1 Deliveries 2015 cost including land

4 B&B hotels in France




AMBITIONS 2016: ONE NEW PARTNERSHIP = NUMEROUS OPPORTUNITIES

33

STRATEGYSTRATEGYHOTELS IN EUROPE

ANNUAL RESULTS 2015

Objective 2016: €400 million in investments with existing and new partners

Acquisition of 2 Motel One hotelsBerlin & Frankfurt - Germany€36 million (€15 million GS)

Development of the 1st Motel One Hotel in Paris (Porte Dorée)€35 million (€8 million GS)

Delivery in 2018; yield 6.2%; 12-year firm

Conversion of an office into a Meininger hotel Munich - Germany€30 million (€13 million GS)

Developments projects with Meiningerunder discussion in France and Europe

Partnership agreement with MeiningerObjective of €400 million in investments before 2018

Acquisition of 5 NH Hotels in Germany1


Yield 6.1%; 20-year firm

Acquisition of one NH hotel in Amsterdam€48 million (€21 million GS)

Portfolio

€3.5 billion (100%)

€1.4 billion (GS)

2014

2015

2016

Meininger, Paris

1 To be completed in 2017 and 2018

34

3. Financial results

DS Campus –Greater Paris


2015 INVESTMENTS: RECORD LEVEL UNDER GOOD CONDITIONS

35

46% of investments Group Share in Germany

€m; 2015

Investments including

duties(100%)

Investments(Group Share)

Acquisitions(Group Share)

Capex (Group Share)

Gross potential yield

(Group Share)

Offices - France 330 252 46 206 6.7%1

Offices - Italy 962 472 39 76.2% post

redevelopments

Offices 426 298 85 213 6.7%

German Residential 871 529 529 0 5.0%

Hotels/Service Sector 778 543 522 21 6.2%3

Others 12 7 0 7 n.a.

Total 2,087 1,377 1,136 241 5.8%

FINANCIAL RESULTS

ANNUAL RESULTS 20151 Yield excluding the land bank acquisition in Montrouge; 2 Including the €81 million in acquisitions to be completed in 2016; 3 Excluding Ebitda yield on management contract acquisitions (of 9%)

Development pipeline strategy

New acquisitions in

Milan CBD

German Residential

Acquisitions at 69% in

Berlin

France Offices Italy Offices

Hotels/Service Sector

Investments with historic and new

operators


2015 DISPOSALS: QUALITY IMPROVEMENT

5% of non-strategic activities vs 9% at end-2014

€m, 2015

Disposalsand

agreements100%

Disposals and agreements

GS

Margin vs.

Values 2014

Gross Yield

Effective disposals

GS

Gross Yield

France Offices 120 120 15.7% 3.6% 93 6.5%

Italy Offices 261 126 0.9% 6.7% 99 6.5%

German Residential 187 114 12.1% 6.6% 112 7.2%

Hotels/Service Sector 417 180 0.2% 6.2% 24 6.5%

Non-strategic 444 309 1.1% 4.8% 240 3.7%

Total asset disposals 1,428 849 4.4% 5.4% 568 5.6%

Group share data

FINANCIAL RESULTS

Non core offices

France Offices

€126 million of Telecom Italia assets

Italy Offices

NRW non-core assets

German Residential

€409 million of AccorHotels

assets


€215 million in French

Residential

Non strategic


INCREASE IN VALUE AT LIKE-FOR-LIKE SCOPE: +4.4%

FINANCIAL RESULTS

€mValues

2015Total share

Values2015

Group share

Change (%) LFL

12 months

Yield2014

Group share

Yield2015

Group share

France Offices 5,658 4,840 +7.2% 6.6% 6.0%

Italy Offices 3,905 1,893 -0.4% 6.1% 5.7%

Offices 9,563 6,734 +5.0% 6.4% 5.9%

German Residential 3,603 2,175 +5.0% 6.5% 6.0%

Hotels/Service Sector 3,515 1,385 +3.1% 6.1% 5.9%

Other 1,0061 6951 n.a. n.a. n.a.

Total 17,688 10,988 +4.4% 6.3% 5.8%

Group share data

1 Before disposal of €100 million of Logistics assets in early 2016ANNUAL RESULTS 2015

Dev. pipeline & asset management

value creation

France Offices

Negative impact from vacant assets

Italy Offices

+12% in Berlin

German Residential

+4.8% in Hotels



PORTFOLIO YIELD EVOLUTION: VALUE CREATION AND QUALITY IMPROVEMENT

FINANCIAL RESULTS

Group share data

ANNUAL RESULTS 2015

Yield 2014 Yield 2015

Quality rotation

Like-for-likePortfolio allocation

-10bps -5 bps-20 bps

5.8%6.3%

Increase in German

Residential

Invest in better quality buildings

& locations

Market yield compression

&Asset Management

value creationDispose non-core assets

Exit fromNon-strategic

activities


2015: RESHAPE LIABILITIES

FINANCIAL RESULTS

Continue reducing cost of debt

and extending maturityGroup share data

40%

15%

39%

6% Investor mortgages

Bonds

Corporate credits

Bank mortgage loans

Strong diversification in financing

55% unsecured

debt

> Improvement in average debt maturity: 5.0 years vs 4.1 years

> Improvement in cost of debt: -50 bps at 2.8%

> ICR: 3.0 vs. 2.8 end of 2014

> LTV 45.4% vs 46.1% end of 2014

> €4.2 billion (€2.5 billion GS) in financings and refinancings

> Average maturity of financing: 8 years

> Maintenance of a diversified financing policy in a volatile financial market

> BBB, stable outlook vs BBB-, stable outlook

> Improved business profile => better positioned portfolio; stronger cash flows

> Improved financial profile => strengthening of solidity of the balance sheet

Better S&P rating

Record year in financings

and refinancings

Improved debt profile

ANNUAL RESULTS 2015

Debt maturities under control

2016 2017 2018

0.7

0.3

0.8

1.1

2019

0.7

2020

1.2

2025 and later

0.40.4

2021

Average maturity 5.0 years

Group Share - € billion

2022

1.0

2023 2024

0.1


EPRA NAV PER SHARE INCREASED BY 6.6%

FINANCIAL RESULTS

EPRA NAV supported by recurring net income and increase in values

> EPRA NAV: €5,318 million (+12% vs 2014) and €79.4 per share (+6.6%)

> EPRA NNNAV: €4,609 million (+11%) and €68.8€ per share (+5.9%)

Successful capital increase in early 2015

> €255 million earmarked for 2015 investments; 3,917,722 new shares (6.2% of capital)

> Followed-up by the primary shareholders of Foncière des Régions

Group share data

1 Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)ANNUAL RESULTS 2015

-€27 million

Comit fund litigation provision

-€69million

Hedge restructuring

and

Beni Stabilibond repurchase

Number of shares used to calculate NAV/share:

66,947,020 for 2015 vs. 62,941,712 for 2014

€5,318 m

€79.4/share

€4,754 m

€74.5/share1

+€333 million

RNI

+€252 million

Capital increase

-€269 million

Dividend

+€27 million

Other

EPRA NAVEnd 2015

EPRA NAVEnd 2014

+€348 million

Property values increase

-€31 million

Real estate transfer cost increase in

2016


Occupancy rate

Residual firm lease

terms

Rental income 1

(€m)

Change Change at like-for-like scope

France Offices 95.8% 5.4 years 238.0 -0.1% 0.8%

Italy Offices 92.8% 9.7 years 102.1 -11.1% -4.1%

Offices 94.9% 6.6 years 340.1 -3.7% -0.9%

German Residential 98.0% n.a. 115.9 +12.2% 2.4%

Hotels/ Service Sector

100% 10.7 years 80.0 +57.0% -0.6%

Other n.a. n.a. 13.3 -24.5% n.a.

Total 96.3% 7.3 years 549.4 +4.6% -0.1%

1 Excluding Logistics (€15.9 million), classified as discontinued operations

41

RENTAL INCOME: +4.6%

FINANCIAL RESULTS

Good performance in a

no inflation environment

Telecom Italia agreement

+4.4% in Berlin; +3.2% in Dresden & Leipzig

Terrorist attacks impact softened by our geographic diversification

Indexation: +0.3%

Occupancy rate: -0.2%

Renewals: -0.2%

Change at like-for-like scope

Group share data

ANNUAL RESULTS 2015

OthersGross annualised rents

End-2014

Gross annualised rents

End-2015

Acquisitions

(including reinforcement in FDM)

Deliveries Like-for-like

annualised

Disposals End of lease

for redevelopments

€56.1 m

€16.7 m

-€2.4 m

- €31 m- €11.2 m

€594 m€570 m

- €4.5 m


RECURRING NET INCOME: GOOD PERFORMANCE

FINANCIAL RESULTS

€m, Group Share 2014 2015 %

Rental income 525.0 549.4 +4.6%

o/w net rental income 480.9 505.3 +5.1%

Net operating costs -53.2 -55.5 +4.3%

Income from other activities 21.2 18.9 -10.8%

Current operating income 448.9 468.7 +4.4%

Net cost of financial debt -166.4 -155.3 -6.7%

Recurring net income of MEE companies 14.2 11.2 -21.1%

Income from non consolidated affiliates 0.9 0.2 n.a.

Pre-tax net income 297.6 324.7 +9.1%

Recurrent tax -2.7 -1.9 n.a.

Recurring net income of discontinued operations 19.5 10.0 -49.5%

Recurring Net Income 314.5 332.8 +5.8%

Fair value adjustment on real estate assets 110.6 347.6

Changes in the fair value of financial instruments -183.2 -105.3

Margin on disposals -0.3 0.2

Other -82.8 -48.8

Non-recurrent tax -44.2 -22.1

Profit/loss on discontinued operations 3.9 -22.9

Net income 118.5 481.5

ANNUAL RESULTS 2015

Reinforcement in German Residential and in Hotels

Less property development fees

Lower cost of debt

Change of scope in Dassault SystèmesCampus

Exit from Logistics


RECURRING NET INCOME PER SHARE INCREASED +2.2%

Impact of quality improvement

Impact of disposals

Dilution impact from capital increase in 2015

Strengthening position in Hotels

Strengthening in German Residential

Lower average cost of debt

Group Share 20141 2015Change vs.

20141

RNI (in €m) 314.5 332.8 +5.8%

RNI/share (€) 4.96 5.07 +2.2%

Average number of fully diluted shares 62,538,274 65,670,922

Group share data

1 Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)

FINANCIAL RESULTS

ANNUAL RESULTS 2015


2015 DIVIDEND OF €4.30 PER SHARE

FINANCIAL RESULTS

1 Proposed by the 27 April 2016 Shareholders’ Meeting; 2 Based on a stock-market price of €72.47 as of February 16th 2016

Dividendyield

5.9%2

€4.301

per share

(vs €4.30 for 2014)

Secured level

Payout ratio85%


A NEW REINFORCEMENT IN HOTEL REAL ESTATE

> Acquisition of 3.3% of FDM shares to ACM paid in new Foncière des Régions shares1

> Share exchange ratio: 1 FdR for 3 FDM - EPRA NAV parity

> Creation of 0,82 million new Foncière des Régions shares (1.2% of the share capital)

Reinforcement in FDM

Long term objective of around 20%

of Foncière des Régions portfolio in Hotel real estate

Launch of a mandatory

public exchange offer on FDM2

Hotel, Berlin

ACM

Foncière des Régions

Free float Generali

BNP Paribas Cardif

GroupeCrédit Agricole

43.1%

9.1%

10.0%10.3%

10.2%

17.2%

FDM shareholding

End 2015

> At the same conditions

> FdR will own at least 46.5% of FDM => +€106 million of assets; +€65 million of equity

1 Term sheet signed in February 17th 2016; should be approved by the 27 April 2016 Shareholders’ Meeting; 2 Upon completion of the offer, Foncière des Régions does not

intend to launch a mandatory squeeze out. An independent expert will be appointed by FDM to give his fairness opinion on the conditions of the offer.

46

4. Outlook

EDO – Greater Paris


Ability to generate

new investment opportunities

OUTLOOK: STRONGER ADJUSTED RISK-RETURN PROFILE

47

OUTLOOK

ANNUAL RESULTS 2015

Bettercash-flows

quality

Increased growth and

value creation potential

Short term:

NAV accretive

Earning slightly dilutive

Residential – BerlinSteel – Paris

Objective of a stable 2016 Recurring Net Income per share

Better asset quality

Reinforcement in best asset classes


FINANCIAL AGENDA

AGENDA

Q1 2016: 4 May 2016

Capital Markets Day in Paris: 14 June 2016

ANNUAL RESULTS 2015

49

Appendices



A STRATEGY STRENGTHENED BY THE SOUNDNESS OF INDICATORS

Group share data

APPENDICES

Growth in value Change in LFL vs. N-1

Rent: at like-for-like scopeChange in LFL vs. N-1

CB 21, La Défense

Firm lease expirations as % of annualised rental income

Commercial portfolio (76% of total rents GS)

Record firm term of leases

2009

5.86.1 6.0

2010 2011 2012

5.5

2013

5.8

2014

7.3

2015

5.8

Historically high occupancy rates

2009

95.4%94.8%

95.8%

2010 2011 2012

95.5%

2013

96.0%

2014

96.3%

2015

97.1%

+3.3%

2010

+0.6%

2011 2012

+2.1%+1.2%

20132009

+2.2%

-0.1%

2014 2015

+0.2%

2009

+5.3%

+1.3%

2010 2011 2012

-0.3%+0.5%

2013

-3.6%

2014

+4.4%

2015

+2.1%

ANNUAL RESULTS 2015


COMMITTED PIPELINE: 24 PROJECTS FOR €615 MILLION Group share (+16%)

1100% usable area excl. car park 2Group share incl. land and financial costGroup share data

APPENDICES

ANNUAL RESULTS 2015

Loca t ion A rea ProjectSu rfa ce**

(m ²)Deliv ery

T a rget

offices rent

(€/m²/year)

Pre-let

(%)

T ot a l

Bu dget *

(€m)

Progress Yield

Bose St Ger m a in -en -La y e Gr ea ter Pa r is Con str u ct ion 5 1 00 2 01 6 2 2 5 1 00% 2 0 9 5 % > 7 %

Sch lu m ber g er Pom pig n a n e Mon tpellier Ma jor Reg ion a l Cit ies Con str u ct ion 3 1 5 0 2 01 6 1 5 5 1 00% 8 8 5 % > 7 %

Eu r om ed Cen ter - Ca ly pso (QP FdR : 5 0%) Ma r seille Ma jor Reg ion a l Cit ies Con str u ct ion 9 6 00 2 01 6 2 6 5 3 0% 1 5 8 5 % > 7 %

Clin iqu e INICEA Sa in t-Ma n dé Gr ea ter Pa r is Con str u ct ion 5 5 00 2 01 6 N/A 1 00% 2 5 7 0% 6 %

DS Ca m pu s Ex ten sion 1 (QP FdR : 5 0%) V élizy Gr ea ter Pa r is Con str u ct ion 1 3 1 00 2 01 6 3 05 1 00% 3 9 5 5 % 6 %

2016 su bt ot a l 36 450 90% 107 73%

Eu r om ed Cen ter - Her m ion e (QP FdR 5 0%) Ma r seille Ma jor Reg ion a l Cit ies Con str u ct ion 1 0 4 00 2 01 7 2 6 5 0% 1 4 5 5 % > 7 %

Eu r om ed Cen ter - Flor ea l (QP FdR 5 0%) Ma r seille Ma jor Reg ion a l Cit ies Con str u ct ion 1 3 4 5 0 2 01 7 2 6 5 0% 1 8 4 5 % > 7 %

Silex I Ly on Ma jor Reg ion a l Cit ies Con str u ct ion 1 0 6 00 2 01 7 2 8 0 0% 4 7 4 0% 6 %

Th a ïs Lev a llois Gr ea ter Pa r is Con str u ct ion 5 5 00 2 01 7 4 8 0 0% 4 0 3 0% 6 %

O'r ig in Na n cy Ma jor Reg ion a l Cit ies Con str u ct ion 6 3 00 2 01 7 1 9 5 7 7 % 2 0 3 0% 6 %

Edo Issy -les-Mou lin ea u x Gr ea ter Pa r is Restr u ctu r a t ion -Ex ten sion 1 0 8 00 2 01 7 4 5 0 0% 8 3 1 5 % 6 %

Tr a v er sièr e Pa r is Pa r is Restr u ctu r a t ion -Ex ten sion 1 3 5 00 2 01 7 ND 5 % 1 2 2 5 % 5 %

Riv er side Tou lou se MR Con str u ct ion 1 0 9 00 2 01 8 1 9 0 0% 3 2 0% > 7 %

2017 su bt ot a l 81 450 6% 377 19%

T ot a l Offices Fra nce 117 900 24% 484 31% 7%

Sy m biosis Mila n Ita ly Con str u ct ion 1 2 000 2 01 8 n .a . 0% 2 9 0% > 7 %

Fer r u cci Tu r in Ita ly Restr u ctu r a t ion -Ex ten sion 4 9 2 9 4 2 02 0 n .a . 0% 4 0 6 % n .a .

T ot a l Offices It a ly 61 294 0% 69 3% n.a .

B&B Fr a n ce (1 ) & Ger m a n y (5 ) Fr a n ce & Ger m a n y Fr a n ce & Ger m a n y Con str u ct ion n a 2 01 6 n a 1 00% 1 8 5 9 % >7 %

Eu r om ed Cen ter - Hôtel (QP FdR : 5 0%) Ma r seille Ma r seille Con str u ct ion n a 2 01 6 n a 1 00% 2 3 9 0% >7 %

Motel On e Pa r is - Por te Dor ée Pa r is Gr ea ter Pa r is Con str u ct ion n a 2 01 7 n a 1 00% 8 3 5 % 6 %

Mein in g er Mu n ich Mu n ich Ger m a n y Con v er sion n a 2 01 8 n a 1 00% 1 3 0% 6 %

T ot a l Hot els 100% 62 55% 7%

179 194 29% 615 30% >6%

Offices France

Fr

an

ce

Off

ice

sH

ote

ls

Total Offices+Hotels

Project s

Hotel Real Estate

Offices Italy


ORANGE PORTFOLIO IN PARIS REGION: QUALITY; VALUE CREATION POTENTIAL

52

15 assets including 9 of the 10 primary Orange buildings; €863 million in value; 60% of the Orange portfolio

CarnotMaillot

Montmartre

Philippe Auguste

Bobillot

GobelinsRaspail

Keller

Voltaire

Menilmontant

Villette

AnjouProvence

Laborde

Guttemberg

APPENDICES

ANNUAL RESULTS 2015


ORGANISATION CHART

53

APPENDICES

Foncière des Régions

France Offices Italy Offices(Beni Stabili)

German Residential

(Immeo)

Management contracts

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

48.5% 61.0% 43.1%

40.8%

Consolidated subsidiaries

Equity affiliates

ANNUAL RESULTS 2015

French Residential

(FDL)

61.3%


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]

asset management is paying off - covivio en · yves rocher > strategic location in greater paris...

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