2017 full year results: A successful European growth · 2020-06-29 · Growth driver Via Cernaia,...
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2017 full year results: A successful European growth 15 February 2018
Transcript of 2017 full year results: A successful European growth · 2020-06-29 · Growth driver Via Cernaia,...
2017 full year results:
A successful European growth
15 February 2018
CONTENTS
FONCIÈRE DES RÉGIONS
>1. STRATEGIC POSITIONING
>2. REAL ESTATE ACTIVITY
>3. FINANCIAL RESULTS
>4. OUTLOOK
>APPENDIX
2FY 2017 RESULTS
3
1.Strategic positioning
A EUROPEAN OPERATOR WITH A UNIQUE BUSINESS MODEL
Enhance client direct relationship
1 Major European cities with more than 2 million tourist arrivals per year
European player leader in its markets
& focusing on capital cities
Build an environment to stimulate productivity
and well-being
€21 bnportfolio at 100%
Client centric
Bring services and new
real estate solutions
4
24 %German Residential
14 %Hotels in Europe
42 %France Offices
14 %Italy Offices
6 %Non Strategic2Greater Paris
84%
Milan: 64%
Berlin: 55%
Major Cities77%1
FY 2017 RESULTS
2 Retail in France and Italy, car parks, Residential France
€13 bnGroup Share
Property developer for its own account
€5.1 bndevelopment pipeline
Extract rental growth & value creation
Offer smart buildings
Meet the demand
1 2 3
GAME IS CHANGING, OUR STRATEGY IS MORE RELEVANT THAN EVER
… real-estate landscape is evolving:
In a better economic prospect in our markets …
5FY 2017 RESULTS
…and more services/experiences
Flex/Coworking spaces in Paris 2015-2017
% of new/restructured offices in the take-up in Paris & Milan1
x3
70%
Increasing convergence between hotels, residential and offices
Reversibility | Complementarity | Synergies
Users want newreal estate…
…more flexibility…
1 Average
Sources: CBRE, C&W; Arthur Loyd
2017: A MAJOR STEP TOWARDS OUR STRATEGIC TARGETS
6Total share figures
1 Disposals signed in 2017FY 2017 RESULTS
Focus on capital cities1
+€1.8 bn investments
Offices: €407 millionMore Paris, Milan & Lyon
German Residential: €573 millionMore Berlin
Hotels: €788 millionMore capital cities
-€1.4 bn disposals1
Offices: €519 millionTelecom Italia exposure: -50%French non core assets: -50%
German Residential: €367 millionEnding NRW non core disposals
Non strategic: €489 millionFrench Retail & Residential
EDO – Issy-les-Moulineaux
2017: A MAJOR STEP TOWARDS OUR STRATEGIC TARGETS
Success of the 12 deliveries in 201789,000 m² of offices & 683 hotel rooms
Already 98% let~50% value creation
7
Total share figures
FY 2017 RESULTS
Accelerate the development pipeline2
A development pipeline already renewed and increased
2017
€5.1 bn
+28%
2016
€4.0 bn
Silex1 – Lyon
2017: A MAJOR STEP TOWARDS OUR STRATEGIC TARGETS
The Line – Paris 8th
8FY 2017 RESULTS
Internalize hotel know-howDirect contact with the final customer
Synergies with offices & residential
New flex-office/coworking offerTarget >70,000 m² to be opened
in Europe by 2022+30% profit vs rents
New coliving offer in BerlinTarget 3,000 rooms by 2022
+50% in revenue vs traditional units
Intensify client centricity3
A SUCCESSFUL STRATEGY DRIVING A SUSTAINABLE FINANCIAL PERFORMANCE
FY 2017 RESULTS 9
Over the past few years, we significantly improved
the portfolio quality…
40%
48%
55%
% of Berlinin German Resi.
% of Milanin Italy Offices
% of Green French Offices
49%
53%
64%
61%
65%
73%
…and the financial profile… …while, at the same time,
increasing our results
45.4%
44.6%
40.4%
€5.07
€5.27
€5.31
2015
2016
2017
Loan to Value
Recurring Net Income per share
2015
2016
2017
2015
2016
2017
€86.8
€94.5
€79.4
EPRA NAVper share
10
2.Real Estate activities
Offices
0,30
0,35
0,40
0,45
0,50
0,55
0,60
0,65
0,70
0,75
0,80
2013 2014 2015 2016 2017
68%=70% of the total office take-upin Paris & Milan1
Paris Region office take-up for new/refurbished (>5,000 m²)
OFFICES: MARKET TREND VALIDATES OUR STRATEGY
12
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
Source: CBRE
400 €
420 €
440 €
460 €
480 €
2013 2014 2015 2016 2017
Milan office marketAverage economic rent
for prime offices
+5.0%
+8.0%
Source: JLL
Rents are growingbut selectively
Preferences for the best quality assets
FY 2017 RESULTS
Source: CBRE
0,10
0,12
0,14
0,16
0,18
0,20
0,22
0,24
0,26
2013 2014 2015 2016 2017
Milan take-up for grade A officesM. m² M. m²
Source: C&W
2017:+28%
2013-2017: +59%
1 Take-up for new/refurbished offices in Paris Region and for Grande A offices in Milan
2017:+3%
2013-2017: +66%
2017: BUOYANT LETTING ACTIVITY
FY 2017 RESULTS 13
113,300 m² new lettings€35 million of rents1
218,500 m² renewed€33 million of rents1
1 Group Share: €25 million & €22 million2 Offices delivered in 2017 or under development
3 Offices ex Telecom Italia portfolio, let at 100%
Success of the development pipeline
76,300 m² let or pre-let2
Rents >~10% vs forecasts
Good operating performances
Renewals in France: +2.6% vs last rent
Occupancy Italy: 95.1%3
(+4.1 pts vs 2016)
Principe Amedeo - Milan Carré Suffren - Paris
2017: STRENGTHENING OF THE STRATEGIC POSITIONING
14
Value creation50%
9 office deliveries
89,000 m²
€438 million total cost1
1 Including land value; €378 million Group Share
Focus on key cities
Paris | Lyon & Marseille | Milan
Preferred buildings for the clients
98%
Yield on cost
vs 5,7% forecasted2
Growth driver
Via Cernaia, Milan8,300 m² | delivery Q4 2017
Amundi Italian HQ
EDO, Greater Paris10,700 m² | delivery Q2 2017
Transdev HQ
Occupancy rate
FY 2017 RESULTS
+6.4%
+~10% IFRS Rents vs forecasts2
2 Excluding Euromed Hermione & Floréal, sold at delivery to an end-user
SELECTIVE ACQUISITION ACTIVITY IN MILAN
15FY 2017 RESULTS
€184 million acquisitions in 201785% in Milan
39,180 m² €4,952/m² | 5.9% yield1
1 Gross yield including potential yield on Principe Amedeo
Leased assets in Milan
DevelopmentsAcquisitions 2017
Business districts
CBD
Centre
Semi-centre
Periphery
Porta Nuova
M4
M4
M2
M2
M1
M1
M1
M5
M3
M3
Linate Airport
M5
Milanofiori
Navigli
Lorenteggio
City Life
Certosa Maciachini
Bicocca
Sesto San Giovanni
Cernusco / Vimodrone
SegrateLambrate /Forlanini
San Donato Milanese
Ripamonti
Qualitative reinforcement in Milan
83% of offices ex-Telecom Italia in Milan
Corso Magenta – Milano
NEW FLEX-OFFICES ACTIVITY: REINFORCE OUR CLIENT-CENTRICITY
16
High expected return : c. 30% margin vs rentsBrand to be revealed on March 6th
Complete our real estate offer with a new Flex/Coworking activity:
Meet a new and fast growing demand
Enhance client relationship
Leverage our hotel skills
Upgrade our portfolio quality
Keep value creation in-house
√
√
√
√
√
More services
Our tenants’ needs are evolving:
Increase productivity Retain talents
Optimisecosts
More flexibility More supports
NEW FLEX-OFFICES ACTIVITY: A COMPLETE & DIFFERENTIATED OFFER
17
Consolidate our partnerships & develop new ones
Make our buildings even more attractive
1st openings in Paris & Marseille in 2017
European expansion in Milan to come
PARIS
LYON
MARSEILLE
BORDEAUX
MILAN
EUROMED CENTERMARSEILLE
3,300 m²; OPEN
Art&Co - GARE DE LYONPARIS 12th
5,127 m²; Q2 2018
LAB 114PARIS 18th
1,420 m²; Q3 2018
THE LINEPARIS CBD
2,300 m²; OPEN
First openings
FY 2017 RESULTS
Mix in the buildings classical leases & flexible offer
Implement flexible offeron behalf of our clients
COMPLETE OFFER
Coworking, flex-offices & suite offices
DIFFERENTIATED OFFER
Enjoy cafe & Sociabilization areas
Innovation rooms, Meeting roomsProject areas
CASE STUDIES - ART&CO: MIX OF REGULAR LEASE & FLEXIBLE OFFER
18
OFFICE
COWORKING
OFFICE
ROOFTOP
BAR / WORK CAFE
RECEPTION DESK / BAR LOUNGE
MEETINGS
EVENTS & INNOVATION
SPACE
PROJECT ROOMS
FY 2017 RESULTS
8,320 m²(62%)
Regular leases
5,130 m²(38%)
Flex/Coworking offer
(500 workstations)
Art & CoParis 12th – Gare de Lyon
(13,450 m²; Q2 2018)
CASE STUDIES – LAB 114: IMPLEMENT FLEXIBLE OFFER ON BEHALF OF OUR CLIENTS
19
Orange Lab 114Paris 18th – Montmartre
(5,926 m²; Q3 2018)
FY 2017 RESULTS
Win-win deal
Secure Orange presence √
Give flexibility and innovative workspace environment √
Improve quality of the asset √
Increase economic terms √
4,500 m² (76%)
Lease extension with Orange
+12 years firm
1,400 m² (24%)
Flex/Coworking offer
50% secured by Orange
2018: ACCELERATION OF COMMITTED PIPELINE IN OFFICES
20
End 2016 End 2017 End 2018
€861 million
€710million
~€1.3 billion2
+80%
2018: Acceleration of the committed pipeline
Expect to launch +~€900 million1 new projects
A €1.3 billion2 pipeline, up +80%
Committed pipeline
63%
37%
FY 2017 RESULTS1 ~€750 million Group Share; 2 ~€1.0 billion Group Share
-€438million
+€286million -€325
million+~€900million1
France
Italy
56%
44%
France
Italy
~75%
~25%
France
Italy
PIPELINE TO BE COMMITTED IN 2018 – STRONG QUALITATIVE PROJECTS IN PARIS
21
Paris 5-6-7ème
ParisBatignolles – St-Ouen
Montrouge-Malakoff
NeuillyLevallois
Omega – Levallois18,500 m²
~€180 millionH2 2020
Flow - Montrouge24,500 m²
€115 millionH1 2020
PSA – Paris St-Ouen26,700 m²
~€200 millionH1 2021
Gobelins – Paris 5th
4,900 m²~€50 million
H2 2020
FY 2017 RESULTS
N2 – Paris 17th
16,200 m²~€150 million
2021
FLOW-MONTROUGE: A NEW URBAN CAMPUS IN THE HEART OF THE GRAND PARIS
22
25,581 m²in south of Paris
Well connected
Highly productive
1 Including land value
Services:concierge, restaurant,
business center, auditorium, lounge
spaces, roof-top
FY 2017 RESULTS
€115 milliondevelopment1
>6.5% target yield on cost
Delivery 2020
FLOW
2022
N2: A MIXED USED PROJECT IN A PROMISING NEW AREA OF PARIS
23
16,200 m²9,400 m² offices4,900 m² hotel
1,900 m² retail & events
Well connectedFull of innovations,
services & new concepts
1 Including land value; €75 million Group Share FY 2017 RESULTS
~€150 m development1
In partnership with ACM (50/50)
>5% target yield on cost
Delivery 2021
Strategic location in a transforming area of Paris
N2
Porte de Clichy
Pont Cardinet
Mairie de Clichy
Gare de Clichy Levallois
New Paris Courthouse
Hotels in Europe
HOTELS: A LONGSTANDING GROWTH STORY TO BUILD A EUROPEAN LEADER
25FY 2017 RESULTS
Target the best hotelsupscale & midscale hotelsEBITDAR margin >30%
Focus on major European tourism & business centerscities >2 million nights per year
Client centric: Be the preferred partner of the
operators 18 partners across 28 brands,
to choose the best operator for each hotel in each country
3 strategic pillars
2005
€1.1 bnHotelPortfolio value
# operators partners
1
Skills Leases
# countries
2017
€4.8 bn
18
DevelopmentsLeases
Franchise/Management contracts
The 2nd largest hotel owner worldwide, working with the best hotel operators in each of its country
Paris
Madrid
Berlin
London
Rome
Amsterdam
Lisbon
+2.5%
POSITIVE ENVIRONMENT FOR 2017 AND BEYOND
26FY 2017 RESULTS
Better GDP growth in Europe
Structural growth in tourism
89 million (+5% yoy)
2018: pursuit of the RevPar growth in Europe
RevPar trend in Europe
Strong fundamentals, driver for further growth
1
82 million (+8%)
Number of tourists in 2017 and worldwide ranking
Barcelona
Milan
Frankfurt
+2.2%
+3.1%
+3.0%
+5.8%
+1.2%
+1.7%
+5.2%
+8.2%+6.8%2
Source: PwC
+2.4% +2.3%
GDP growth Eurozone
2017 2018
International tourists arrivals in Europe
Sources: ECB; WTO
+8% ~+4%2017 2018
2017: STRENGTHENING OF THE STRATEGIC POSITIONING
27FY 2017 RESULTS1 Group Share: €343 million & €56 million2 Secured in 2017, to be realized in 2018
Successful entry in Spain
17 hotels 4-5* | €559 million
80% Barcelona & Madrid
Strengthening in Germany & Netherlands2
4 NH hotels 4* | €111 million
Berlin, Hamburg, Amsterdam & Amersfoort
€691 million acquisitions realized & €111 million secured for 20181
5.5% yield ; €164 K/room
City-center location with strong profitability (>40% Ebitdar margin)
Driver for growth: variable rents; asset management potential
2017: ACCELERATED RENTAL GROWTH
28FY 2017 RESULTS
100% Occupancy rate since the beginning
-0.2%-1.0%
-3.9%
+3.2%
2014 2015
2016
2017
Lease properties1:Increase in like-for-like rents
Variable rents+5.5%
Operating properties:Good performance
11-year Firm lease maturity
1 Hotels only ; retail is included in non strategic activities
EBITDA+2.8%
+3.9%
+2.3%
+5.2%
Hotel Bourgtheroulde - Rouen
MERGER BETWEEN FDM & FDM MANAGEMENT: A TRANSFORMATIONAL DEAL TO MOVE PORTFOLIO UPMARKET & STRENGTHEN GROWTH PROSPECTS
FY 2017 RESULTS 29
2014: launch of FDM Management, to only invest in operating properties
alongside FDM, lease hotels subsidiary of Foncière des Régions
Since then, FDM Management successfully set up a top quality portfolio of
€1.3 billion mainly in Germany (especially Berlin) with a >30% Ebitda margin
January 2018: merger of FDM & FDM Management following its success
and the need for more simplification and flexibility to accelerate growth
The hotel market is undergoing fundamental transformation
Increasing opportunities in operating hotel properties
Need for more asset management skills & more flexibility between lease and operating properties
1
2
3
4
Foncière des Régions
FDM(hotel lease properties)
FDMM(hotel operating properties)
42%
100%
Ownership structure post merger
1st shareholder & limited partner
AccorHotels29%
B&B17%
NH6%
Carlson Rezidor12%
Sunparks5%
Hotusa4%
Starwood7%
Barcelo3%
Others17%
30
A €4.8 BILLION1 BETTER QUALITY COMBINED PORTFOLIO
Germany33%
Belgium10%
Spain14%
France40%
Netherlands2%
Portugal1%
Balanced geographic exposure% by value (post merger)
Revenue profile to benefit
from the growing hotel market trendHotel revenue breakdown
1 Hotels only; €1.8 billion Group Share
FY 2017 RESULTS
Tenant
diversificationBreakdown by operator (by value)
Strong quality portfolio
(by value)
68%Upscale & midscale
Management contracts
31%
Variable leases24%
Fixed leases45%
44,445 rooms
18 hotel operator partners28 brands
The Westin Grand Berlin
31
REINFORCED VALUE CREATION CAPACITY
FY 2017 RESULTS
Strengthened status
of the operators’ real estate partner
More property development capabilities
Increased asset management potential
Stronger hotel skills
for better bargaining power
& more synergies with residential & offices
Asset management leverage:
Hotel Ibis – Dresden
Partner of the operators: Meininger
Paris, Lyon, Milan, Munich
Additional constructability:
Hotel Ibis – Lyon
Growth potential:
Paseo Del Arte – Madrid
German Residential
Not enough residential construction
Dynamic demographic growth
Positive macroeconomic trend
GERMAN RESIDENTIAL: A SOUND MARKET SUPPORTING OUR STRATEGY
33FY 2017 RESULTSSource : Federal Statistical Office, Engel & Völkers Residential; Land of Berlin rating report
Housing permits down 8% in first ten months 2017
Household growth: +3.5% by 2020Berlin population growth : +80,000 inhabitants by 2020
1.9% GDP growth in 2016; 3.7% unemployment Berlin: 2.7% GDP growth in 2016
Continued positive outlook for rental growthStrong potential for property development activity
Berlin: New flats expected for 2017: 16,000 Expected demand: 20,000
2017: STRONG RENTAL DYNAMIC IN ALL OF OUR MARKETS
34FY 2017 RESULTS
Strong rental growth
fuelled by Berlin…
44 %Indexation
50 %Reletting
6 %Modernization
Rents LfL+4.2%
1.8%2.4%
3.6%4.2%
4.9%4.4% 4.6%
5.8%
1.4% 1.6%
2.8%
3.1%
2014 2015 2016 2017
Like-for-like rental growth
Berlin
Total
NRW €7.8
€5.9
€9.1
€5.8
Berlin Dresden &Leipzig
Hambourg NRW
+35%
+27%
+16%+15%In place rent
m²/month
Reversionary potential
…driven by re-letting
& indexation
…with still significant
potential for future growth
Strong performance rewarding our strategy
Hamburg
2017: STRENGTHENING OF THE STRATEGIC POSITIONING
35FY 2017 RESULTS
16 portfolios bought
Average price: 2,010€/m²
4.4% yield after reletting | +44% reversionary potential
€367 million disposals secured
Ending the non core disposal plan in NRWStarting first disposals in Berlin
Crystalizing value creation & improving portfolio quality:
€249 million in NRW | 16% average margin vs 2016
€68 million in Berlin | 69% average margin
1 €1.7 billion Group Share
Reinforcing our footprint in Berlin with a €2.8 billion1 unique portfolio
Prime location
Good location
Average location
Basic location
Green area
Owned assets
73% of the portfolio
22% of the portfolio
5% of the portfolio
€556 million acquisitions
Selective acquisitions at 85% in Berlin
STRONG VALUE CREATION IN 2017
36FY 2017 RESULTS
NRW
Berlin
29%
55%
6%
9% Dresden & Leipzig
Hamburg
+17%
+23%
+10%
+13%
Increased exposure to Berlin…
(Geographic breakdown of the portfolio in value)
+7 pts vs 2016
-8 pts vs 2016
…driving performance up:
+15% like-for-like value growth(Like-for-like value growth in 2017)
+~€1.0 billion of portfolio value in 2017, up to €5.0 billion1
1 €3.1 billion Group Share
2017: EXTENSION OF THE DEVELOPMENT PIPELINE IN BERLIN
FY 2017 RESULTS 37
€488 million1
development pipeline identified
X2.4 vs end-201681% in Berlin
1 €301 million Group Share
2,300 units for 157,500 m²
€3,100 average cost per m²
5.3% average yield on cost~50% for lease
~50% for sale >40% average margin
Prime location
Good location
Average location
Basic location
Green area
Developments projects
In the best areas of Berlin
SUPPORTING NEW TRENDS: NEW COLIVING & FURNISHED APARTMENT OFFER
38FY 2017 RESULTS
Source : Berlin Brandeburg Statistiks Office – data 2015
A fast growing demand from students and business travellers…
Furnished rooms and shared spacesLarge flats (80+ m²) in “trendy” areas Full services Target rent: €19/m²
Furnished apartments
Turnkey furnished apartmentsSmall surface (30 m²)Full services Target rent: €17/m²
Coliving
150
180
2011 2012 2013 2014 2015 2016
+20%
+20% of students in Berlin since 2011 (number in ‘000)
…to address with two new offers
Target 3,000 rooms by 2022 with high returns: revenues>50% vs regular rents
39
3.Financial results
17.7
19.2
€21.2 bn
2017 ACTIVITY REWARDED BY GROWING OPERATING RESULTS
40
2015 2016 2017
+8%
+10%
A €21 billion portfolio+€3.4 billion in 2 years
At 100%
FY 2017 RESULTS1 Group Share
2015 2016 2017
+4.4%
+4.8%
+6.2%
-0.1%
+0.2%
+2.0%
Like-for-like rental growth starting over1
High & sustained occupancy rate
Strong like-for-like value growth1
11.9Group Share
11.0 Group Share
€12.8 bnGroup Share
2015 2016 2017
96.3%
96.7%
97.9%
AND GROWING FINANCIAL RESULTS
41
45.4%44.6%
40.4%
Lower leverageLTV1
FY 2017 RESULTS1 Group Share
5.3
6.0
€7.1 Bn
+13%
94.5€/share
86.8€/share
€79.4/share
+19%
Strong NAV growthEPRA NAV; €billion1
+9%
+9%
333
356
€391 million
+7%
€5.31/share
€5.27/share
€5.07/share
+10%
Increase in Recurring Net IncomeGroup Share, €million
+4%
+1%
2015 2016 2017 2015 2016 2017 2015 2016 2017
SUCCESSFUL ASSET ROTATION: €1.4 BILLION OF NEW AGREEMENTS SIGNED IN 2017
FY 2017 RESULTS 42
Exit non-strategic activities
Accelerate non-core disposals
€489 million €280 million Group Share | 1% margin
€520 million€376 million Group Share | 10% margin
Selective disposal of mature assets
€429 million €317 million Group Share | 17% margin
Non-core Residential - NRWDisposal of the Quick Restaurants, in France
Mature asset - San Nicolao - MilanMature asset - Victor Hugo – Issy-les-Moulineaux
KEY ACHIEVEMENTS TO OUR STRATEGIC TARGETS
43
41%38%
25% 23%
20152016
June 2017 Target
2020
<20%
Acceleration of the non-core disposals in FranceExposure to non-core assets
halved
Increased tenant diversification in ItalyExposure to Telecom Italia almost halved,
3 years in advance
€365 million disposals
of which €202 million & 91 non core assets (10% average margin)
% of TI assets in the Italian offices portfolio (in market value)
FY 2017 RESULTS
% of non-core assets in the French offices portfolio(in market value)
11% 11%
5%
2015 2016
20171Target 2020
0%
€758 million2 equivalent disposal, at appraisal value:
June: Crédit Agricole Assurances & EDF Invest buy 40% of the TI portfolio
February 2018: disposal of an additional 9% of the portfolio
20171
1 Proforma of the disposals signed, to be cashed in 20182 €397 million Group Share
OUR STRATEGIC MOVES DRIVE SUPERIOR RETURNS
FY 2017 RESULTS 44
…driven by our strategic priorities
+28%
Spain: +7%
More development pipeline(French Offices deliveries)
More Milan offices
More Berlin
More European exposure in Hotels
Portfolio value: +6.2% like-for-like in 2017…
(€million, excluding duties)Value100%
ValueGroup Share
Like-for-like
value growth
Yield2017
%
Offices France 6 351 5 412 5.4% 5.3% 42%
Offices Italy 3 937 1 738 2.3% 5.5% 14%
Residential Germany 4 957 3 114 15.0% 4.7% 24%
Hotels in Europe 4 807 1 783 4.3% 5.5% 14%
Strategic activities 20 053 12 047 6.8% 5.2% 94%
Non-strategic 1 102 737 -3.3% 5.0% 6%
Total 21 154 12 784 6.2% 5.2% 100%
+5%
+17%
Like-for-like value
growth in 2017
A DEBT STRUCTURE, HEALTHIER THAN EVER
FY 2017 RESULTS 45
Group share data
39%
16%
41%
4%Investor mortgages
Bonds
Corporate credits
Bank mortgage loans
Strong diversification in financing
55% unsecured
debt
Debt maturities under control6.2 years maturity
(in €million)
Lower LTV
Higher ICR
45.4%44.6%
40.4%
2017
2016
2015
2.80%
2.21%
1.87%
2017
2016
2015
5.0-year
5.7-year
6.2-year
3.0x
3.6x
4.4x
Longer debt maturity
Lower cost of debt
2017
2016
2015
2017
2016
2015
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
+€1.1 BILLION INCREASE IN NAV IN 2017
FY 2017 RESULTS 46
€6.0 billion€86.8/share
€7.1 billion€94.5/share
+18.6%
EPRA NAV€7.1 billion (+€1.1 bn) | +18.6%
€94.5/share | +8.9%
EPRA NNNAV€6.5 billion (+€1.2 bn) | +21.8%
€86.3/share | +11.8%
Strong value increase: +€627 million Group Share
Longstanding support of our shareholders to finance internal growth:
+€469 million capital increase in 2017 (+8.8% of the share capital)
+€842 million capital increase since end-2014 (18% of the share capital) EPRA NAVEnd-2016
EPRA NAVEnd-2017
+€391million
RNI
-€325 million
Dividend
+€469 million
Increase in capital
+€627million
Property values increase
-€45 million
Others
2017 REVENUES: ACCELERATION OF RENTAL GROWTH IN ALL OUR MARKETS
FY 2017 RESULTS 47
€millionRental income
100%
Rental incomeGroup Share
Change
Change like-for-
like basis
Occupancyrate
Firm lease
maturity (in years)
Offices - France 272.1 246.9 -1.1% +1.0% 97.4% 5.0
Offices - Italy 187 87.3 -5.4% +1.1% 97.2% 7.6
Residential Germany 230.1 144.2 +9.6% +4.2% 98.4% n.a.
Hotels in Europe 174.1 76.8 +29.5% +3.2% 100% 11.2
Non strategic (ResidentialFrance, Retail Fr & Italy)
64.1 33.8 -18.8% n.a. n.a. n.a.
Total 927.4 588.9 +2.5% +2.0% 97.9% 6.6
-0.1%+0.2%
+2.0%
2017
Accelerated rental growthLike-for-like evolution of the rents
20162015
OfficesGerman
Residential
Occupancy:
0.4%Renewals:
0.9%
Offices in Milan: +2.4%
Residential in Berlin: +5.8%
Hotels in variable lease: +5.5%
Indexation:
0.7%
German Residential
Hotels (variable rents)
+10% INCREASE IN RECURRING NET INCOME IN 2017
FY 2017 RESULTS 48
Recurring Net Income in €million
2016
€/share
EPRA Earnings€million
€/share
2017
356.2 391.2
328.4 358.2
5.27 5.31
Average # of shares 67,633,972 73,656,016
4.86 4.86
Non-recurring costs (-€4.3 m)
Amortized cost of debt and discounting effects (-€10.4 m)
Amortization & provisions (-€11.6 m)
Other non cash charges (-€6.8 m)
+9.8%
+8.9%
+0.8%
+9.1%
+0.2%
Δ
INCREASE IN DIVIDEND TO €4.5 PER SHARE
FY 2017 RESULTS 491 Proposed by the 19 April 2018 Shareholders’ Meeting; 2 Based on a stock-market price of €86.7 as of February 13th 2018
€4.2
€4.3
€4.4
Dividend 2017: €4.50 per share1
+2.3% vs 2016Dividend yield: 5.2%2
A longstanding & growing dividend policy
+2.4%
+2.3%
€4.5
€4.3
€4.2
2012 2013 2014 2015 2016 2017
+2.3%
GUIDANCE OF 2018 EPRA EARNINGS PER SHARE OF ~+3%
FY 2017 RESULTS 50
Well positioned to take full benefit of the rental growth
Most of the qualitative strategic repositioning
is behind us
Lower leverage, low & secured cost of debt
Positive rental trend in all our markets
What does it meanfor 2018 ?
Like-for-like rents~+2.5%
Guidance of EPRA Earnings per share:
~+3%
51
4.Outlook
YEAR 2017, A KEY MILESTONE IN A WINNING STRATEGY
FY 2017 RESULTS 52
Bolstering the leadership status of our local platforms, always in motion
Offices:Increasing
development capacity and client centricity
Italy: Success of the transformation
plan 3 years in advance
Residential in Germany:Creating a leader in Berlin
with a unique prime portfolio
Hotels:From 1 operator in 1 country
to a global and integrated European leader
SINGULAR IN-HOUSE CAPACITY TO FUEL TOMORROW’S GROWTH1. IN PARIS
53
Pereire
Maillot Carnot Laborde
Anjou
Montmartre
Provence
Jemmapes
Ménilmontant
Voltaire
Philippe Auguste
Gobelins
Bobillot
Keller
Raspail
Gutenberg
Levallois
Neuilly
Projects 2018
100%Occupancy
€8,200Value/m²
€370/m²Rent
Montmartre – Renovation & Flex-office
Ménilmontant – Renovation
Gobelins- Full regeneration
Orange portfolio: 15 buildings in Paris
with a unique potential for growth & value creation
€1.0 billionPortfolio
FY 2017 RESULTS
Managed pipeline
SINGULAR IN-HOUSE CAPACITY TO FUEL TOMORROW’S GROWTH2. IN MILAN SYMBIOSIS
54
Rented portfolio
Developments
Symbiosis
Periphery
Center
Porta Nuova
Semi Center
M 5
M 1
M 3
M 2
M 1
M 5
M 2
M 3
Delivery Q4 2018
Fondazione Prada
A new part of the city
c. 110,000 m²
Stimulateproductivity & well-being
~€490 milliondevelopment1
7% target yield on
cost
20,500 m² committed
1 Including land value; €257 million Group Share
€94 million committed
FY 2017 RESULTS
7.2% on committed
SINGULAR IN-HOUSE CAPACITY TO FUEL TOMORROW’S GROWTH3. IN BERLIN ALEXANDERPLATZ
55
Galvanize Berlin city-center
~200,0001 m²
1st mixed-use project to start
in 2019
~€1.0 billiondevelopment2
1 Including the hotel Park Inn, for 45,000 m²; 2 Including land value; €420 million Group Share
FY 2017 RESULTS
Land bank around Park Inn AlexanderPlatz
Alexanderplatz
EUROPEAN HUMAN CAPITAL, KEY TO THE GROUP’S SUCCESS STORY
FY 2017 RESULTS 56
A European group of >800 people
PlatformsNumber of peoplePortfolio (%)
Branches
268€9.3 bn (44%)
400€6.4 bn (30%)
138€4.2 bn (20%)
€0.6 bn (3%)
Others: €0.6 bn (3%)
1Barometer survey conducted by Kantar TNS on 82% of the FdR French employees
Between April 24 and May 12 2017
Benchmark includes 2000 employees working in the private sector
and strongly supportive of the strategy and its management
Barometer survey conducted by Kantar TNS institute in France1
Support and firmly believe in the strategic orientations
(vs 47% for the benchmark)
82%
To locally managea €21 billion portfolio
Are proud to work for FdR(vs 56% for benchmark)
87%
EUROPEAN HUMAN CAPITAL, KEY TO THE GROUP’S SUCCESS STORY
FY 2017 RESULTS 57
A stable and well-experienced management committee to drive the strategy
44 years old on average10-year average seniority at Foncière des Régions
Yves Marque
Chief Corporate Officer
AlexeïDal Pastro
Italy
Thierry Beaudemoulin
Residential
Christophe Kullmann
CEO
Olivier Estève
Deputy CEOOffices
Tugdual Millet
CFO
Audrey CamusProperty
Development
Marielle Seegmuller
French Offices
Marjolaine Alquier
Audit and Internal Control
Dominique Ozanne
Deputy CEOHotels
Laurie Goudallier
Chief Digital Officer
FINANCIAL AGENDA
FY 2017 RESULTS 58
General Meeting: 19 April 2018
Q1 2018: 26 April 2018
H1 2018: 19 July 2018
Appendix
APPENDIX CONTENTS
60
> 2017 REVENUES & FINANCIAL RESULTS
> 2017 INVESTMENTS & DISPOSALS
> PIPELINE: COMMITTED AND MANAGED PROJECTS
> GEOGRAPHICAL BREAKDOWN OF OUR ACTIVITIES
> GREATER PARIS & MILAN OFFICE MARKETS
> ORGANIZATION STRUCTURE
FY 2017 RESULTS
Appendix
Revenues and financial results
RENTAL INCOME 2017
FY 2017 RESULTS 62
(€ million)
100% Group Share
2016 2017Var.(%)
2016 2017Var. (%)
Change (%)
LfL 1
% of rent
France Offices 274,8 272,1 -1,0% 249,7 246,9 -1,1% 1,0% 42%
Paris 84,4 81,9 -3% 79,8 77,3 -3% 1,2% 13%
Greater Paris 132,0 136,0 3% 111,4 115,3 3% 1,0% 20%
Other French regions 58,4 54,3 -7% 58,5 54,3 -7% 0,8% 9%
Italy Offices 180,2 187,0 3,8% 92,2 87,3 -5,4% 1,1% 15%
Offices - excl. Telecom Italia 81,4 88,4 9% 41,5 46,3 12% 1,9% 8%
Offices - Telecom Italia 98,8 98,6 0% 50,8 40,9 -19% 0,4% 7%
Germany Residential 212,5 230,1 8,3% 131,6 144,2 9,6% 4,2% 24%
Berlin 84,3 103,4 23% 52,2 70,6 35% 5,8% 12%
Dresden & Leipzig 17,8 21,3 19% 11,1 14,0 25% 3,3% 2%
Hamburg 13,0 14,2 9% 8,5 9,2 8% 3,8% 2%
North Rhine-Westphalia 97,4 91,3 -6% 59,8 50,5 -16% 3,1% 9%
Hotels in Europe 143,9 174,1 21,0% 59,3 76,8 29,5% 3,2% 13%
France 98,5 89,7 -9% 38,0 34,9 -8% 3,1% 201%
Germany 17,3 22,3 29% 7,9 10,8 37% 1,4% 62%
Spain 0,5 33,3 n.a 0,3 16,6 n.a n.a 96%
Others 27,6 28,9 5% 13,1 14,4 10% 4,4% 83%
Total strategic activities 811,4 863,4 6,4% 532,8 555,2 4,2% 2,1% 94%
Non-strategic 81,8 64,1 -21,6% 41,6 33,8 -18,8% n/a 6%
Retail Italy 20,0 17,8 -11% 10,2 9,3 -9% -1,2% 2%
Retail France & healthcare 46,6 34,8 -25% 22,1 17,4 -21% 0,2% 3%
Other (France resi., car parks, logistics) 15,2 11,4 -25% 9,3 7,0 -25% n.a 1%
Total rents 893,2 927,4 3,8% 574,4 588,9 2,5% 2,0% 100%1 LfL : Like-for-Like
A STRATEGY SUPPORTED BY SOUND INDICATORS
Group share data 63
Historically high occupancy rates
2009
95.4% 94.8% 95.8%
2010 2011 2012
95.5%
2013
96.0%
2014
97.9%
2015
97.1%
2016
96.3% 96.7%
2017
Rent: at like-for-like scope
Change in like-for-like vs N-1
+3.3%
2010
+0.6%
2011 2012
+2.1%+1.2%
20132009
+2.2%+2.0%
2014 2015
+0.2% -0.1%
+0.2%
2016 2017
> Ability to keep the tenant in place
> Occupancy rate track record in the development pipeline
> Anticipate disposals
> Partnership strategy
> Lease maturity in Hotels: 11.2 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 (75% 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 2017
FY 2017 RESULTS
2017
Growth in value
Change in like-for-like 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
+6.2%
RECURRING NET INCOME: +10% IN 2017
FY 2017 RESULTS 64
(€ million, Group share) 2016 2017 Change%
Net rental income 526,3 539,4 13,1 2,5%
Net operating costs -60,3 -59,7 0,6 -1,1%
Income from other activities 9,6 7,0 -2,6 -27,4%
Cost of net financial debt -129,1 -110,8 18,3 -14,2%
Recurring net income from equity affiliates 13,6 19,5 5,9 43,7%
Income from non consolidated affiliates 0,0 0,0 0,0 n.a
Recurring tax -4,3 -4,2 0,1 -1,6%
Profits or losses on discontinued operations 0,4 0,0 -0,4 n.a
Recurring net income 356,2 391,2 35,0 9,8%
Recurring net income per share 5,27 5,31 0,04 0,8%
Fair value adjustment on real estate assets 465,2 627,2 162,0 34,8%
Fair value adjustment on financial instruments 31,4 -0,5 -31,9 -101,6%
Net Result on disposals 34,6 26,6 -8,0 n.a
Other -65,6 -65,8 -0,2 0,2%
Non-recurring tax -34,3 -64,6 -30,3 88,5%
Profits or losses on discontinued operations -4,6 0,0 4,6 n.a
Net income 782,8 914,1 131,4 16,8%
Diluted average number of shares 67 633 972 73 656 016 6 022 044 8,9%
Growth in all our markets
Less property development fees
Lower cost of debt
Hotel operating properties
Increase in shares following January 2017 capital increase
NET INCOME TO EPRA EARNINGS
FY 2017 RESULTS 65
(€million) 2016 2017
Net income Group share (Financial data §3.3) 782,8 914,1
Change in asset values -465,2 -627,2
Income from disposal -45,8 -24,4
Acquisition costs for shares of consolidated companies 11,2 2,2
Changes in the values of financial instruments -31,4 0,5
Deferred tax liabilities 32,6 61,4
Taxes on disposals 1,7 3,6
Adjustment to amortisation, depreciation and provisions 1,8 0,0
Adjustments from early repayments of financial instruments 48,3 44,7
RNI adjustments for associates -12,1 -16,7
Profits or losses on discontinued operations 4,6 0,0
EPRA Earnings 328,4 358,2
EPRA Earnings/€-shares 4,86 4,86
Specific FdR adjustments:
Non-recurring cost 1,6 4,3
Amortized costs of debt and discounting effects 10,0 10,4
Amortization and provisions 11,6 11,5
Other non cash charges 4,6 6,8
FDR Recurring Net Income (Financial data §3.3) 356,2 391,2
Appendix
Investments & Disposals
2017 ACQUISITIONS: €1.4 BILLION IN STRATEGIC LOCATIONS
67
Italy: 88% in MilanHotels in Europe: 82% in Spain, 18% in Germany
German Residential: 85% in Berlin
FY 2017 RESULTS
Acquisitions 2017 realized Acquisitions 2017 secured
(€ million Including Duties)
Acquisitions100%
AcquisitionsGroup share
YieldGroup share
Acquisitions100%
AcquisitionsGroup share
YieldGroup share
France Offices 3 3 6,7% - - -
Italy Offices 184 96 5,9% ¹ 27 14 6,0% ¹
Germany Residential 556 357 4,4% ² 178 115 3,9% ²
Hotels in Europe 691 344 5,5% 111 56 5,7%
Total 1 435 800 5,0% 316 185 4,6%
1 Potential yield on acquisitions.
2 Yield after reletting of vacant spaces. Immediate yield is 4.0% on acquisitions realized and 3.6% on acquisitions secured.
ITALY OFFICES: €211 MILLION OF ACQUISITIONS IN 2017
FY 2017 RESULTS 68
Acquisitions 2017 realized Acquisitions 2017 secured
(€ million, Including Duties) LocationAcq. price
100%Acq. Price
GSPotential
Gross YieldAcq. price
100%Acq. Price
GSPotential
Gross Yield
Via Principe Amedeo Milan 42 22 5,2% - - -
Via Marostica Milan 25 13 6,9% - - -
Portfolio Creval Milan 118 62 6,0% - - -
Portfolio FPU Milan - - - 27 14 6,0%
Total 184 1 96 1 5,9% 27 14 6,0%
1 Excluding €9 million (€5 million Group share) of land acquisition related to the Symbiosis project, classified as Capex.
Acquisitions 2017
Business districts
CBD
Centre
Semi-centre
Periphery
Porta Nuova
M4
M4
M2
M2
M1
M1
M1
M5
M3
M3
Linate Airport
M5
Navigli
Milanofiori
Lorenteggio
City Life
Certosa Maciachini
Bicocca
Sesto San Giovanni
Cernusco / Vimodrone
SegrateLambrate /Forlanini
San Donato Milanese
Ripamonti
€211 million realized & secured45,200 m² of Offices
90% in Milan
2017 DISPOSALS: IMPROVE QUALITY
69
€1.4 billion new disposals signed in 2017:34% non strategic (mainly retail France)36% non core (mainly offices in France & Residential in NRW)30% mature (mainly offices in France & Italy)
€1.4 billion signed in 2017€1.2 billion realized
FY 2017 RESULTS
(€ million)
Disposals(agreements as of end of 2016
closed)
Agreements as of end of 2016 to
close
New disposals
2017
New agreements
2017
Total2017
Margin vs 2016 value
YieldTotal
Realized Disposals
1 2 3 = 2+3 = 1 + 2
France Offices 100 % 80 27 279 86 365 8,4% 5,1% 359
Group share 80 27 290 86 376 11,1% 5,8% 370
Italy Offices 100 % 79 - 127 27 154 -0,2% 3,9% 206
Group share 364 - 66 12 77 -0,1% 4,0% 430
Germany Residential 100% 22 - 229 138 367 23,6% 5,5% 251
Group share 13 - 137 81 217 23,3% 5,5% 150
Hotels in Europe 1 100 % 12 3 46 18 64 4,7% 5,5% 58
Group share 6 1 14 9 23 5,4% 5,5% 20
Non-strategic (France Residential, Logistics, Retail in France)
100 % 41 - 262 227 489 0,8% 5,0% 302
Group share 24 - 162 118 280 0,7% 4,8% 186
Total 100 % 234 29 941 497 1 438 7,9% 5,0% 1 175
Group share 488 28 667 306 973 9,2% 5,3% 1 155
1 Including disposals on hotel operating properties
Appendix
Development pipeline
OFFICES: A RECORD YEAR OF DELIVERIES
71
Silex1 - Lyon10,700 m²
Hermione & FloréalEuromed Marseille
10,400 m² & 13,400 m²
Thaïs Levallois-Perret
5,500 m²
O’rigin - Nancy6,300 m²
100%
let
100%
sold
85%
let
91%
let
Edo Issy-les-
Moulineaux10,800 m²
New St CharlesReims
10,300 m²
Art & Co - Paris13,500 m²
100%
let
100%
let
100%
let100%
let
Via Cernaia, Milan
8,300 m²
1 Including land value; €378 million Group Share
FY 2017 RESULTS
Value creation50%
9 office deliveries
89,000 m²
€438 million total cost1
Focus on key cities
Paris | Lyon & Marseille | Milan
Preferred buildings for the clients
98%
Yield on cost
vs 5,7% forecasted2
Driver for growth
Occupancy rate
+6.4%
+~10% IFRS Rents vs forecasts2
SILEX², A NEW DEVELOPMENT FOLLOWING THE SUCCESS OF SILEX1
FY 2017 RESULTS 7272
Participate in the renewal of the 2nd French business district Work the portfolio to extract value and growth
Mitigate the development risk and crystallise the value creation
Launch of Silex2 new development
> New tower of 30,900 m² (+15,600 m² extension)
> Total cost: €166 million; ~6% yield on cost
Share Silex 1 and 2 with ACM
> Disposal of 49.9% of Silex1 and Silex2 to ACM
> At an average yield of 4.7%
2001: Sale-and-leaseback with EDF
> 2 buildings of 7,200 m² and 15,300 m²
> Price: €22.1 million; 11% yield
2013-2017: Departure of EDF and development of Silex1
> Development-extension of 10,700 m² (+3,500 m²)
> 100% let to BNP Paribas and Nextdoor
A longstanding partnership and development story in a prime location in Lyon Part-Dieu…
…reaching a new step: launch of Silex2 & financial partnership agreement
COMMITTED PIPELINE: €934 MILLION AT 100% - 1/3
73
1100% usable area excl. car park2 Total cost including land value & financial costs3 Yield on total rents including car parks, restaurants, etc.
FY 2017 RESULTS
Projets in Group shareSurface 1
(m²)Target rent(€/m²/year)
Pre-leased(%)
Total Budget 2
(M€, 100%)
Total Budget 2
(M€, Group Share)
Target Yield 3 ProgressCapex to be
invested(M€, Group Share)
Total France Offices 104,200 m² 229 44% 394 244 6.5% 24% 170
Total Italy Offices 92,100 m² 279 59% 317 166 6.2% 54% 38
Total German Residential 13,510 m² n.a na 36 22 5.5% n.a n.a
Total Hotels in Europe 1,516 rooms n.a 100% 188 79 6.4% 56% 35
Total n.a 56% 934 512 6.3% 38% 244
COMMITTED PIPELINE: €934 MILLION AT 100% - 2/3
74
1100% usable area excl. car park2 Total cost including land value & financial costs3 Yield on total rents including car parks, restaurants, etc.
FY 2017 RESULTS
Projects in Group share Location ProjectSurface 1
(m²)Target rent(€/m²/year)
Pre-leased(%)
Total Budget 2
(M€, 100%)
Total Budget 2
(M€, GroupShare
Target Yield 3
Progress
Capex to beinvested
(M€, GroupShare)
Fr
an
ce
Off
ice
s
Riverside Toulouse Construction 11,000 m² 185 0% 32 32 7.0% 66% 9
Ilot Armagnac (35% share) Bordeaux Construction 31,700 m² 190 39% 102 36 6.5% 32% 16
Total deliveries 2018 42,700 m² 188 20% 134 68 6.6% 48% 25
Hélios Lille Construction 9,000 m² 160 100% 23 23 >7% 59% 8
Total deliveries 2019 9,000 m² 160 100% 23 23 >7% 59% 8
Meudon Ducasse Greater Paris Construction 5,100 m² 260 100% 22 22 6.4% 2% 19
Silex II (50% share) Lyon Construction 30,900 m² 312 0% 166 83 6.0% 15% 74
Montpellier Orange Montpellier Construction 16,500 m² 165 100% 48 48 6.8% 0% 44
Total deliveries 2020 and beyond 52,500 m² 258 46% 237 154 6.3% 9% 137
Total France Offices 104,200 m² 229 44% 394 244 6.5% 24% 170
Ita
ly O
ffic
es
Via Colonna Milan Regeneration 3,500 m² 270 100% 18 9 5.1% 80% 1
Piazza Monte Titano (Meininger hotel) Milan Regeneration 6,000 m² 190 100% 22 12 5.0% 65% 2
Symbiosis (buildings A&B) Milan Construction 20,500 m² 310 88% 94 49 >7% 63% 12
Principe Amedeo Milan Regeneration 7,000 m² 490 57% 57 30 5.2% 28% 6
Total deliveries 2018 37,000 m² 346 81% 191 100 6.2% 54% 21
Corso Ferrucci Turin Regeneration 45,600 m² 130 36% 87 46 5.7% 75% 5
The Sign (building A) Milan Construction 9,500 m² 285 0% 38 20 >7% 3% 13
Total deliveries 2019 55,100 m² 177 25% 126 66 6.2% 53% 18
Total Italy Offices 92,100 m² 279 59% 317 166 6.2% 54% 38
COMMITTED PIPELINE: €934 MILLION AT 100% - 3/3
75
1100% usable area excl. car park2 Total cost including land value & financial costs3 Yield on total rents including car parks, restaurants, etc. FY 2017 RESULTS
Committed Projects Location ProjectSurface 1
(m²)Target rent(€/m²/year)
Pre-leased(%)
Total Budget 2
(M€, 100%)
Total Budget 2
(M€Group share)
Target Yield 3 Progress
Capex to beinvested
(M€, Group share)
Ge
rm
an
y R
esid
en
tia
l
Konstanzer Berlin Extension 400 m² n.a n.a 1 1 5.3% n.a n.a
Total deliveries 2018 400 m² n.a n.a 1 1 5.3% n.a n.a
Genter Strasse 63 Berlin Construction 1,500 m² n.a n.a 4 3 5.3% n.a n.a
Pannierstrasse 20 Berlin Construction 890 m² n.a n.a 3 2 5.2% n.a n.a
Breisgauer Strasse Berlin Extension 1,420 m² n.a n.a 5 3 4.7% n.a n.a
Birkbuschstraße Berlin Extension 4,200 m² n.a n.a 14 8 5.1% n.a n.a
Magaretenhöhe Essen Extension 5,100 m² n.a n.a 9 6 6.8% n.a n.a
Total deliveries 2019 and beyond 13,110 m² n.a n.a 34 22 5.5% n.a n.a
Total German Residential 13,510 m² n.a na 36 22 5.5% n.a n.a
Ho
tels
in
Eu
ro
pe
B&B Berlin Berlin Construction 140 rooms n.a 100% 11 6 7.0% 78% 1
B&B Chatenay Malabry (50% share) Greater paris Construction 127 rooms n.a 100% 9 2 6.3% 81% 0
Motel One Porte Dorée (50% share) Paris Construction 255 rooms n.a 100% 37 9 6.2% 100% 0
Meininger Munich Munich Construction 173 rooms n.a 100% 29 15 6.4% 90% 1
Total deliveries 2018 695 rooms n.a 100% 86 32 6.4% 90% 3
Meininger Porte de Vincennes Paris Construction 249 rooms n.a 100% 47 24 6.2% 51% 12
B&B Bagnolet (50% share) Greater Paris Construction 108 rooms n.a 100% 8 2 6.3% 15% 2
Meininger Lyon Zimmermann Lyon - France Construction 169 rooms n.a 100% 18 9 6.1% 32% 6
Meininger Marseille Marseille - France Construction 211 rooms n.a 100% 23 12 6.9% 0% 12
B&B Cergy (50% share) Greater Paris Construction 84 rooms n.a 100% 5 1 5.9% 24% 1
Total deliveries 2019 and beyond 821 rooms n.a 100% 102 48 6.4% 33% 32
Total Hotels in Europe 1,516 rooms n.a 100% 188 79 6.4% 56% 35
MANAGED PIPELINE : €4.1 BILLION AT 100% & €3.0 BILLION GROUP SHARE
76
1 100% usable area excl. car park
FY 2017 RESULTS
Projectssorted by estimated total cost at 100%
Location ProjectSurface 1
(m²)Delivery
timeframeF
ra
nc
e O
ffic
es
Cap 18 Paris Construction 50,000 m² >2020
Rueil Lesseps Rueil-Malmaison - Greater Paris Regeneration-Extension 43,000 m² >2020
Citroën PSA - Arago Paris Regeneration 26,700 m² >2020
Canopée Meudon - Greater Paris Construction 49,300 m² >2020
Omega Levallois - Greater Paris Regeneration-Extension 18,500 m² >2020
N2 (50% share) Paris Construction 16,200 m² >2020
Anjou Paris Regeneration 11,000 m² >2020
Opale Meudon - Greater Paris Construction 29,000 m² 2019
Philippe Auguste Paris Regeneration 13,200 m² >2020
Flow Montrouge - Greater Paris Construction 24,500 m² 2020
Montpellier Majoria (other buildings) Montpellier Construction 35,700 m² 2018-2020
Campus New Vélizy Extension (50% share) Vélizy - Greater Paris Construction 14,000 m² 2020
DS Campus Extension 2 (50% share) Vélizy - Greater Paris Construction 11,000 m² >2020
Gobelins Paris Regeneration 4,900 m² >2020
Cœur d'Orly (bâtiment 2 - 50% share) Greater Paris Construction 22,600 m² 2019
Cité Numérique Bordeaux Regeneration-Extension 19,200 m² 2019
Total France Offices 388,800 m²
Ita
ly
The Sign (buildings B & C) Milan Regeneration 15,900 m² 2019
Symbiosis (other buildings) Milan Construction 90,000 m² 2022
Total Italy Offices 105,900 m²
German Residential BerlinExtensions &
Constructionsc.145,000 m²
Hotels in Europe - Alexanderplatz Berlin Construction c.150,000 m²
Total 789,700 m²
Appendix
Geographical breakdown of our
activities
FRANCE OFFICES BREAKDOWN
78
A €6.4 billion portfolio at 100% (€5.4 billion in Group Share) at end-2017
The strategic locations in Paris, the Inner Ring and
the Major regional cities represent 94% of the
portfolio
7%Paris North-East
19 %Paris Center West
12%Major Regional Cities
12%Paris South
26%Western Crescent and La Défense
18%Inner Ring
2%Outer Ring
4%Regions
FY 2017 RESULTS
ITALY OFFICES BREAKDOWN
79
A €3.9 billion at 100% (€1.7 billion Group Share1) at end-2017
9%Other
64%Milan
15%North of Italy
7%Turin
5%Rome
FY 2017 RESULTS1Offfices only; excluding Retail (non strategic)
Milan: a €1.1 billion1 portfolio focused on the best locations
29%Periphery
10%Center &
Semi-Center
61%CBD & Porta Nuova
GERMANY RESIDENTIAL BREAKDOWN
80
A €5.0 billion portfolio at 100% (€3.1 billion Group Share)
at end-2017
55%Berlin
6%Hamburg
10%Essen (NRW)
9%Dresden & Leipzig
6%Duisburg (NRW)
3%Mülheim (NRW)
3%Oberhausen (NRW)7%
Others (NRW)
Berlin: a €2.8 billion1 portfolio focused on the best locations
1€1.7 billion Group Share
Prime location
Good location
Averagelocation
Basic location
Green area
Source: Engel & Völkers ResidentialAssets at end-2016
Acquisitions 2017
Developments projects
73%
5%
22%
FY 2017 RESULTS
HOTEL REAL ESTATE PORTFOLIO BREAKDOWN
81
A €4.8 billion hotel portfolio at 100%1 (€1.8 billion Group Share) at end-2017
40 %France
33%Germany
10%Belgium
14%Spain
3%Others
45 %Midscale
33%Economic
22%Upscale
1Hotels only. Proforma of the merger of FDM and FDM Management realized in January 2018
FY 2017 RESULTS
82FY 2017 RESULTS
MERGER FDM-FDM MANAGEMENT: A TRANSFORMATIONAL DEAL TO MOVE PORTFOLIO UPMARKET & STRENGTHEN GROWTH PROSPECTS
> Portfolio: €3.5 bn1
> 346 hotels; 38,469 rooms
> 17 operator partners / 24 hotel brands
Foncière des Murs
1 Hotels only, excluding stake in FDM Management; €1.5 bn Group Share2 €0.3 bn Group Share3 €1.8 bn Group Share
1st shareholder: FdR (50%, limited partner)
> Portfolio: €1.3 bn2
> 31 hotels; 5,976 rooms
> 4 operator partners / 11 hotel brands
FDM Management
1st shareholder: Foncière des Murs (40.7%)
Lease propertiesOperating properties
(franchise/management contracts)
75% of the value
17%
20%
11%
2%
2%
48% of the value
Merger of FDM with FDM Management in January 2018
A combined hotel portfolio of €4.8 bn3
> 44,445 rooms
> 18 operators partners / 28 hotel brands
33%
14%
10%
2%
1%
40% of the value
18%
6%
1st shareholder: Foncière des Régions (42%)
Appendix
Grand Paris & Milan office markets
PARIS & GRAND PARIS OFFICE MARKET
84Sources: C&W, Immostat
Paris CBD
Paris West
Paris South
Paris North-East
La Défense
Péri-Défense
Vélizy-Meudon
Neuilly Levallois
South bend
North bend
1st ring North
1st ring East
1st ring South
2nd ring South
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 the Greater Paris market
17 million m² in Paris
3.3 million m² in La Défense
9.2 million m² in Western Crescent
7.9 million m² in the Inner ring
18.7 million m² in the Outer ring
> Take-up of 2.6 million m² in 2017 (+8% vs 2016)
1,1 million m² in Paris
180,000 m² in La Défense
660,000 m² in the Western Crescent
413,000 m² in the Inner ring
284,000 m² in the Outer ring
> Vacancy rate 6.2%
2.9% in Paris
7.9% in la Défense
11.1% in the Western Crescent
8.6% in the Inner ring
5.8% in the Outer ring
FY 2017 RESULTS
MILAN OFFICE MARKET
85
Sources: C&W; 1 €1.2 billion Group Share
> A stock of c.12 million m² of offices
2.2 million m² (18%) in the CBD and Porta Nuova;
710,000 m² in (10%) in the Centre
2.8 million m² (19%) in the Semi-centre
3.5 million m² (19%) in the Periphery
~3 million m² outisde the Periphery (Hinterland)
> New increase in take-up in 2017 of 347,000 m² (+5% vs 2016)
70% of the volume on Grade A buildings
> Vacancy rate stable at 10.6%
Only 24% of new surfaces in the vacant stock
FY 2017 RESULTS
78k sqm
6.8%
540 €/m²
17k sqm
98k sqm 117k sqm
6.3%
4.7% 16.1%
420 €/m²
320 €/m² 240 €/m²
Appendix
Organization structure
ORGANIZATION CHART AT JANUARY 2018
87
Foncière des Régions
France Offices Italy Offices(Beni Stabili)
German Residential
(Immeo)
Hotels in Europe(Foncière des Murs)
52.4% 61.7% 42%
Consolidated subsidiaries
FY 2017 RESULTS
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]
