Achievements, Performances, Growth. Half-year results July 2015

Transcription

1 Achievements, Performances, Growth Half-year results July 2015

2 CONTENTS >1. STRATEGIC POSITIONING >2. REAL-ESTATE ACTIVITY >3. FINANCIAL RESULTS >4. OUTLOOK >APPENDICES FONCIÈRE DES RÉGIONS 2

3 1. Strategic positioning Dassault Systèmes - Greater Paris Region 3

4 STRATEGY A LEADING OPERATOR IN ITS MARKETS 10.8 billion portfolio Group share ( 17.4 billion at 100%) 1 focus and 2 diversifications France Offices > Sound fundamentals; market depth > Attractive yield; value-creating pipeline 43% 18% Italy Offices > Leadership position; prime assets > Record cash flow visibility Non-strategic > including France Residential (4%) 7% 13% Hotel real estate > Leadership position; impressive track record > Strong relationship with operators; high operating margin 19% Germany Residential > Sound economy; buoyant market > Significant reversion potential; development potential through acquisitions An integrated operator with strong local teams FONCIÈRE DES RÉGIONS HALF-YEAR RESULTS

5 STRATEGY THE DNA OF FONCIÈRE DES RÉGIONS: QUALITY AND PROFITABILITY Long term and secured leases Average firm lease term: 6.8 years Occupancy rate: 96.8% Strong partnership culture Diversified model Exposure to buoyant markets Resilience Complementarity Strong local competence Offices: control of the entire value chain German Residential presence for 10 years with 400 people locally Hotel real estate: unique expertise for 10 years An industrial model that generates high profitability Average total return of 7.3% 1 since 2010 compared with 5.1% on the Eurozone IPD Index FONCIÈRE DES RÉGIONS HALF-YEAR RESULTS Rental and capital yield (change in value net of Capex)

6 STRATEGY FIRST HALF OF 2015: PURSUIT OF A DYNAMIC ROTATION OF ASSETS 1.5 billion ( 1.1 billion GS) in committed investments Investment in high-potential markets > Average yield of 6% on acquisitions and >7% on developments > Offices ( 231 million): 5 asset deliveries during the first half > Germany Residential ( 284 million): acquisitions primarily in Berlin and Hamburg > Hotels in Europe ( 540 million): Reinforcement of the stake in FDM; acquisitions primarily in Germany 616 million ( 365 million GS) of signed sales agreements Progressive withdrawal from non-strategic activities ( 164 million) > Average yield of 2.9%; 2.0% margin Core activities: disposal of mature assets or assets having a less attractive risk/return profile ( 201 million) > Average yield of 5.1%; 7.3% margin 95% strategic assets at end 2015 Portfolio quality improvement: an ongoing task Prepare tomorrow's growth Group share data FONCIÈRE DES RÉGIONS HALF-YEAR RESULTS

7 STRATEGY A STRATEGY STRENGTHENED BY THE SOUNDNESS OF INDICATORS Historically high occupancy rates Record firm term of leases 95.4% 94.8% 95.8% 95.5% 96.0% 96.8%* 97.1% * H H Firm lease expirations, as % of annualised rental income Commercial portfolio (75% of total rents GS) +3.3% % % +2.1% Rent: at like-for-like scope Change in LFL vs. N % -0.1%* +0.2% 2014 H CB 21 La Défense -3.6% % +1.3% -0.3% +0.5% +2.1% Growth in value Change in LFL vs. N % H Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS * Excluding non-strategic activities

8 2. Real-estate activity Quatuor Lille-Roubaix 8

9 France Offices Steel Paris 9

10 FRANCE OFFICES A MAJOR OPERATOR WITH SOLID POSITIONING Portfolio 5.3 billion (100%) 4.5 billion (GS) Letting market during the first half: no strong indicators pointing to a rapid recovery > Paris Region, a market leader with healthy fundamentals: leading market in Europe; vacancy rate of 7.6% > Strong reduction in transactions at the end of June: -22% to 915,000 m² (10-year average of 1.1 million m²) > No recovery in rental income; incentives still high (around 20%) > Premium for quality: 9% decrease in new-build offer over the year Foncière des Régions: a positioning behind the strong performance of first half -year indicators > Key accounts: 75% of rental income > Competitive rents ( /m²) in key locations: 75% of transactions in the Paris Region concern rental income < 460/m² > Geographic balance in the best markets: Paris (33%); Inner suburbs (44%); Major regional cities (13%) Historically high occupancy rates Long-term leases (firm maturity in years) 94.7% 94.3% 96.0% 95.7% 95.8% 96.8% 96.3% Performance at like for like scope Rental income: +0.9% Values: +2.9% H H Firm performance of indicators FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Sources: BNP Paribas Real Estate, DTZ, transactions of more than 5,000 m² between 2012 and 2014

11 823m in deliveries FRANCE OFFICES PURSUE INVESTMENTS IN THE PIPELINE Portfolio 5.3 billion (100%) 4.5 billion (GS) 5 deliveries which strengthen the partnership strategy and portfolio quality > 118 million in cost price; 87% let under firm 9-year leases on average Astrolabe Marseille (14,000 m²) EDF Avignon (4,100 m²) Respiro Nanterre (11,100 m²) Quatuor Lille (9,700 m²) 56% let 6.5 years 9 years 9 years 12 years 823 million in deliveries since m + 164m + 309m Which participate in quality improvement (% of green France Offices ) 100% 57% > 2/3 + 66m m + 67m + 100m 9 projects pre-let at 73% Total Strengthen portfolio quality Create value through dynamic asset rotation FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS % 24% 41% 50% H

12 FRANCE OFFICES DEVELOPMENT PROJECTS: PROVEN INDUSTRIAL EXPERTISE PROJECTS LAUNCHED SINCE for 823m* AVERAGE FIRM TERM FOR LEASES SIGNED 9.7 years Boulogne (Greater Paris) 8,684 m² (2011) Multi-tenants/6 years Floria (Fontenay Greater Paris) 9,200 m² (2012) Société Générale/6 years YIELD OVER COST PRICE VALUE CREATION 7.5% >20% Patio (Lyon) 12,800m² (2013) Multi-tenants /6 years New Velizy (Greater Paris) 45,600 m² (2014) Thales/9 years A pipeline brought in-house by a dedicated and recognised team Astrolabe (Marseille) 14,000 m² (H1 2015) Multi-tenants/6.5 years EDF (Avignon) 4,100 m² (H1 2015) EDF group/9 years FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS * In cost of operation

13 FRANCE OFFICES A RENEWED PIPELINE: 1.2 BILLION IN PROJECTS REPOSITIONING OF PORTFOLIO ASSETS Silex 2 (Lyon) 30,700m² ACQUISITION FOR REDEVELOPMENT Issy-Grenelle (Issy-les-Moulineaux Greater Paris) 11,038m² REAL ESTATE RESERVES Extensions New developments Canopée (Vélizy-Meudon - Greater Paris) 46,900m² FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

14 FRANCE OFFICES "RÉINVENTER PARIS": THE EXPERTISE OF FONCIÈRE DES RÉGIONS RECOGNISED "Réinventer Paris": competition for innovative urban projects > Organised by the City of Paris at 23 sites > July 2015: 75 proposals selected out of 372 submitted (final decision beginning of 2016) Foncière des Régions: finalists for its Les Arches Maillot project > Ternes-Villiers program (Paris 17 th district): 4 candidates; strategic location (Porte Maillot between Paris CBD and La Défense) > Les Arches Maillot: innovative building-bridge 21,500 m² above the Paris ring road Technical, energy, and design innovations Social urban space: offices, hotel, retail, services, garden/terraces Porte Maillot Paris 17th Les Arches Maillot Paris 17th Gather all the advantages of Foncière des Régions in a single project FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

15 FRANCE OFFICES REAPING THE BENEFITS OF THE STRATEGY Portfolio 5.3 billion (100%) 4.5 billion (GS) Foncière des Régions total return France Offices vs. Benchmark IPD 25% 20% 21% 20% 19% 15% 12% 13% 14% Delta FDR/Benchmark 10% 5% 9% 6% 6% 8% FDR Offices Portfolio Benchmark 0% -5% -1% -0.3% Outperformance that strengthens a position based on: > strategic agreements with our partners > geographic diversification > Asset rotation strategy FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Source: IPD

16 Italy Offices Via de Petris - Naples 16

17 ITALY OFFICES A LEADING OPERATOR IN ITS MARKETS Portfolio 4.0 billion (100%) 1.9 billion (GS) First Italian REIT with 4.0 billion assets ( 1.9 billion GS) > 1.7 billion assets of Telecom Italia: secure rental income > 2.3 billion assets 73% in Milan > Milan: 42 assets for 1.9 billion ( 0.9 billion GS) Milan Northern Italy 77% of portfolio 1 6% Turin 46% Rome 9% Symbiosis A key operator to take advantage of the current cyclical improvement FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Core Portfolio

18 ITALY OFFICES A FIRST HALF 2015 FULL OF CHANGES Portfolio 4.0 billion (100%) 1.9 billion (GS) Secure rental income and new opportunities in sight > Renewal of Telecom Italia lease: firm average maturity of portfolio in Italy of 10 years (+4 years) > Secured disposals: 234m ( 113m GS) - 54% Telecom Italia assets > Rent at like-for-like scope - 4.3% and 0% excluding impact of the Telecom Italia renegotiation and the 2014 vacancy of Corso Ferrucci in Turin > Values held up well at like-for-like scope: +0.3% The extension of the Telecom Italia leases more than compensates for the decrease in rent Lease maturities at a record level (firm average in years) Maintenance of a high occupancy rate 1 Lugaro, Turin % 97.1% 96.1% 97.7% 97.7% 95.2% 94.1% H H Improved fundamentals Tour Garibaldi, Milan FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Core Portfolio + dynamic: 91.2%

19 ITALY OFFICES SUCCESS OF PARTNERSHIP STRATEGY: TELECOM ITALIA Portfolio 4.0 billion (100%) 1.9 billion (GS) Since Sale and leaseback Unit sales Refinancing of Portfolio Renegotiation of leases > 1.6 billion assets > 72 Assets > 500 million of bank > Extension of leases from 6 years to 15 years in > 21-year leases > c. 300 million borrowings exchange for a 6.9% reduction in rent > Yield 9% > Yield 5.75% > Cost of debt: 2.5% compared > Disposal de 2 assets for 126 million Securitisation to 8.7% for securitisation > Capex program of 38 million together with Telecom Italia Telecom Italia portfolio at end-june Assets; 1.7 billion 1 Yield: 6.4% Maturity: 15.4 years firm 43% Telecom Italia Italy Offices Portfolio 57% Other Via Dante, Milan Via Montegna, Milan FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Prior disposal of 126 million to Telecom Italia

20 ITALY OFFICES STRATEGY: ACCELERATE QUALITY-ENHANCING PORTFOLIO ROTATION Portfolio 4.0 billion (100%) 1.9 billion (GS) Accelerate disposals > Reduce exposure to Telecom Italia > Sell non-core assets Continue investments in Milan > 230 million of investments in Milan since 2011 > New developments: Symbiosis in Milan launch of first asset of 11,650 m² for 55 million and a yield >7% > Redevelopment of Telecom Italia assets in the medium term Remain open to acquisition opportunities Bocconi University Duomo Prada Foundation Via Eman, Rome Via Agosto, Bologna A new stage in development FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

21 Germany Residential Berlin Residential 21

22 GERMANY RESIDENTIAL GERMANY RESIDENTIAL: QUALITY AND GROWTH Portfolio 3.3 billion (100%) 2.0 billion (GS) A platform of 3.3 billion ( 2.0 billion GS) concentrated on high-potential markets > 44,500 units; average yield of 6.3% North Rhine-Westphalia (NRW) Hamburg > Average rent 9.0/m²; rental potential: approx. 30% > Average rent 5.4/m²; rental potential: approx. 5-10% 8% Dresden & Leipzig 54% 7% 31% Berlin > Average rent 7.0/m²; rental potential: approx. 30% > Average rent 5.9/m²; rental potential: approx. 20% 10 year favourable track record Berlin FONCIÈRE DES RÉGIONS Hamburg HALF-YEARLY RESULTS

23 Essen Dortmund Bremen Cologne Stuttgart Dusseldorf Berlin Frankfurt Hamburg Leipzig Dresden Munich GERMANY RESIDENTIAL A DYNAMIC FIRST HALF OF 2015 Portfolio 3.3 billion (100%) 2.0 billion (GS) High rate of acquisitions in cities with potential Outlook for residential demand by city Change , forecasts for residential demand in m², in % 15% 1.2 billion in acquisitions since the end of 2011: 747 million 240 million 245 million Including 459 million committed during H ( 284 million GS): 182 million 240 million 37 million Solid performance during first half and strong growth in Berlin > Rent: at like-for-like scope +1.7% of which +2.4% in Berlin; occupancy rate of 98.2% > Values at like-for-like scope +2.8% including +7.1% in Berlin FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

24 GERMANY RESIDENTIAL NRW: HIGH AND SECURE YIELD PORTFOLIO 1.8 billion ( 1.1 billion GS) NUMBER OF UNITS 29,143 Acquisition of 5,500 units (2005) 275 million; yield: 6.2% Acquisition of 40,000 units(2006) 2,125 million; yield: 6.6% YIELD VALUE PER M² 6.8% 870 Concentrate on core assets: > 750 million in disposals since 2011*; 4% average margin > Non-Core NRW assets: 14% of portfolio vs. 37% at the end of 2011 Disposal of 7,010 units (2013) 361million; margin: 2.9%; yield: 7.3% Disposal of 3,210 units (2014) 160 million; margin: 5.4%; yield: 7.1% FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS * 384 million GS

25 GERMANY RESIDENTIAL BERLIN: A PRIME PORTFOLIO PORTFOLIO NUMBER OF UNITS 979 million ( 598 million GS) 9,012 YIELD 5.4% VALUE PER M² 1, million; 1,748 units (2011) Share in the best locations: 54% Rental income: 6.1/m²; reversion rate: + 20% Yield: 6.7% 76 million; 1,013 units (2012) Share in the best locations: 100% Rental income: 6.1/m²; reversion rate: + 30% Yield: 6.5% Reinickendorf Pankow Spandau Lichtenberg Charlottenburg- Wilmersdorf Mitte Friedrichshain -Kreuzberg Marzahn- Hellersdorf 84% of portfolio Tempelhof- Steglitz- Schöneberg Zehlendorf Neukölln Treptow- Köpenick 181 million 1,925 units (2013) Share in the best locations: 82% Rental income: 6.4/m²; reversion rate: + 30% Yield: 5.9% 182 million 875 units (2015) Share in the best locations: 100% Rental income: 9.0/m²; reversion rate: + 30% Yield: 4.9% FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

26 GERMANY RESIDENTIAL DRESDEN & LEIPZIG: PROFITABILITY AND GROWTH PORTFOLIO 260 million ( 159 million GS) NUMBER OF UNITS 4,311 Dresden 46 million; 748 units ( 2013) Yield: 7.1%; reversion rate: +21% Dresden & Leipzig 19 million; 378 units (2014) Yield: 6.5%; vacancy rate: 12%; reversion rate: +16% YIELD VALUE PER M² 6.4% 1,050 Dresden: 111 million; 1,971 units (2014) Yield: 6.3%; reversion rate: +20% Dresden & Leipzig 37 million; 935 units (2015) Yield: 7.0%; reversion rate: % FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

27 GERMANY RESIDENTIAL HAMBURG: A NEW MARKET WITH STRONG POTENTIAL PORTFOLIO 232 million ( 146 million GS) NUMBER OF UNITS 2,088 YIELD VALUE PER M² 5.4% 1,860 Acquisition in prime locations (Immoscout24 rating) Reversion rate: +30% FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

28 GERMANY RESIDENTIAL STRATEGY: ORGANIC GROWTH AND DEVELOPMENT Portfolio 3.3 billion (100%) 2.0 billion (GS) Take advantage of a strategy of differentiation > Concentrate investments on prime city-centre assets > Combine reversion rate potential (+25-30%) with medium-term potential for privatizations > Rely on a recognized local team to source off-market transactions Continue quality-enhancing portfolio rotation > Already 459 million in acquisitions completed out of a target of 500 million in 2015 > Sales of non-core assets in NRW : 150 million in 2015 ( 92 million GS) Hamburg Berlin Berlin Continue reinforcement in dynamic cities FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

29 Hotel real estate in Europe Sofitel - Lyon 29

30 HOTELS IN EUROPE HOTEL REAL ESTATE LEADER Portfolio 3.5 billion (100%) 1.4 billion (GS) An asset class that tallies with Foncière des Régions' business DNA > Exposure via Foncière des Murs, a consolidated subsidiary of Foncière des Régions (Limited partners) > Partnership strategy adapted to Hotels: Long-term visibility (firm lease maturity of 7.1 years); high profitability (operational margin of 94%) > Assets 3.5 billion ( 1.4 billion GS) including 2.6 billion in Hotels ( 1.0 billion GS) Portfolio 3.5 billion 1.4 billion GS 74% Hotels > Average firm lease term: 6.6 years > 450 hotels under management (48,280 bedrooms) 19% Retail Premises > Average firm lease term: 8.9 years 7% Healthcare > Average firm lease term: 7.1 years Motel One, Germany Accor, Boulogne - Paris FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

31 International arrivals of tourists (in millions) HOTELS STRATEGY IN EUROPE HOTELS IN EUROPE: GROWTH AND TRANSFORMATION Portfolio 3.5 billion (100%) 1.4 billion (GS) Europe: largest market worldwide > 30% of offer > Leading tourist destination: 50% of tourist arrivals > France, first in European market Solid fundamentals; no oversupply (+0.9% per year since 2000) Change in RevPar in France according to hotel chain segment Economy hotel chains: outperformance and potential > Best resilience and outperformance France: penetration rate of 44% compared with 35% in 2005 Germany: penetration rate of 9% compared with 4% in 2005 A market in full transformation > Leadership in large historic chains > Competition from new players with innovative concepts > Market loss by independent hotels A liquid and very competitive market > 15 billion in investments in Europe in 2014 (+ 23% in a year) > Diversity of players: institutions, funds, private investors, French, foreign, etc. FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Average revenue per room; Source: MKG Hospitality, Natixis, UNWTO 31

32 HOTELS IN EUROPE A SINGLE PLAYER DEDICATED TO HOTEL OPERATORS Portfolio 3.5 billion (100%) 1.4 billion (GS) Economic and midscale focus Geographic convictions An integrated real estate operator Adapted leases structures First partner of hotel operators Resilience Outperformance 30 major European cities (financial and tourist centres) Sale and leaseback /Acquisitions Yield: 6%-7% Developments/ Rehabilitations Yield: 6.5%-8% Variable leases according to hotels revenue Indexed fixed leases Investments of premises and businesses (FDM Management) EBITDA yield: 8%-10% Management contracts Franchises To be the natural ally of operators due to our track record, our teams and our positioning as a long term integrated investor FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

33 HOTELS IN EUROPE A DYNAMIC FIRST HALF OF 2015 Portfolio 3.5 billion (100%) 1.4 billion (GS) Acceleration of exposure in Hotels > Acquisition of 14.7% of the capital of FDM by Foncière des Régions (to 43.1%): amounting to the equivalent of 432 million in assets > 174 million ( 68 million GS) of leased acquisitions; yield of 6.4% > 115 million ( 39 million GS) of developments underway, 68% in Germany; yield >7% Management contracts: a new way to speed up the development in hotels and gain flexibility > Through FDM Management: 40.8%-owned subsidiary of Foncière des Murs > 104 million ( 18 million GS) of committed investments Solid operational performance > Strength of leases at like-for-like scope: +0.5%. in the absence of indexation (+0.8% on variable rental income from Accor hotels); Occupancy rate: 100% > Values at like-for-like scope +1.8% including +2.2% in Hotels Golden Tulip, Marseille Motel One, Berlin FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

34 HOTELS IN EUROPE 2015 INVESTMENTS: REFLECT OUR ABILITY TO POSITION OURSELVES WITH INNOVATIVE PRODUCTS Acquisition of 22 B&B hotels; 128 m ( 51 m GS) Main cities in Germany Yield: 6.4%; 18 years firm Acquisition de two Motel One; 34 m ( 15 m GS) Berlin-Mitte; Frankfurt-Airport Yield: 6.1%; 20 years firm Development of 12 B&B hotels; 74 m ( 32 m GS) France; Germany Yield >7%; 12 to 20 years firm Conversion to Hotel Meininger; 30 m ( 13 m GS) Munich Olympic Park 12,400 m² of offices converted 20 years firm beginning in 2018 Developments for Accor; 56 m ( 10 m GS) Paris Airport Charles-de-Gaulle Management contract Conversion to Hotels Louvre Hotels Group 48 m ( 8 m GS) Germany; Existing hotels Management contract FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

35 HOTELS IN EUROPE STRATEGY: STRENGTHEN POSITION IN HOTEL REAL ESTATE Portfolio 3.5 billion (100%) 1.4 billion (GS) Hotel portfolio: Transformation underway End 2011 June % Accor (variable rent) 1.6 billion Hotels 0.4 billion GS 12% excluding France 63% Accor (variable rents) 2.6 billion Hotels 1.0 billion GS 30% excluding France Other liabilities 15% 5% B&B Other liabilities 15% 22% B&B B&B, Paris Pursue investments in Hotel real estate > Diversification of partners > Geographical diversification > Diversification in investment modes Strengthen our position as leader in Europe Accor, Paris FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

36 3. Financial results Respiro Nanterre (Greater Paris) 36

37 FINANCIAL RESULTS LIABILITIES: IMPROVEMENT IN S&P RATING FROM BBB- TO BBB 1 A better positioned portfolio billion GS of Germany Residential 0.6 billion in disposals in Logistics 2 Success of development pipeline for France Offices Strengthening of cash flow quality Historic occupancy rate: 96.8% Improved business profile Major agreement with Telecom Italia: record firm term of lease (6.8 years) BBB, stable outlook Increased exposure in Hotel real estate vs. 3 Strengthening of solidity of the balance sheet Successful capital increase of 255 million in early % unsecured debt (vs. 23% at the end of 2011) Improved financial profile BBB-, stable outlook ICR: 3.0 FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

38 FINANCIAL RESULTS LIABILITIES: IMPROVING THE PROFILE 2.2 billion ( 1.4 billion GS) in financings and re-financings during first half > Average maturity of financing: 8.3 years > Maintenance of a diversified financing policy in a volatile financial market Strong diversification in financing 5% Investor mortgages Debt maturities under control Average maturity 4.9 years % Bank mortgage loans 58% unsecured debt 37% Bonds % Corporate credits Group Share - billion and following which allow improvement in the debt profile > Improvement in debt maturity: 4.9 years as compared to 4.1 years at the end of 2014 > Improvement in cost of debt: 2.9% compared to 3.3% at the end of 2014 > ICR: 3.0 vs. 2.8 end of 2014 > LTV (47.5%): effect of concentrating investments during the first half and dividend distribution Group share data Continue reducing cost of debt and extending maturity FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

39 FINANCIAL RESULTS RENTAL INCOME UP 2.8% OVER THE YEAR Change in rental income at like-for-like scope Positive performance Stable excluding effect of Telecom Italia transaction and the vacating of Turin property in 2014 Berlin: +2.4% Rental income 1 ( m) Change Change at likefor-like scope Occupancy rate Residual firm lease terms France Offices % +0.9% 96.3% 5.4 years Italy Offices % -4.3 % 94.1 % years Offices % - 0.8% 95.7% 6.7 years Germany Residential % + 1.7% 98.2% N/A Accor Hotels: +0.8% Hotels/ Service Sector % + 0.5% 100% 7.1 years Other 7.2 N/A N/A N/A N/A Total % -0.1% 96.8% 6.8 years Indexation: +0.4% Occupancy rate: -0.5% Renewals: 0.0% Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Excluding Logistics ( 10 million), classified as discontinued operations; 2 Core Portfolio (Italy occupancy rate and total of 91.2% and 96.1% with Italy Dynamic assets) 39

40 FINANCIAL RESULTS RECURRING NET INCOME INCREASED 3.7% m H H % Rental income % o/w net rental income Net operating costs (25.5) (28.9) Income from other activities Current operating income % Net cost of financial debt (83.9) (78.2) -6.8% Recurring net income of MEE companies Income from non consolidated affiliates Pre-tax net income % Recurrent tax (1.8) (0.5) recurring net income of discontinued operations EPRA Net Recurring Income % Fair value adjustment on real estate assets Changes in the fair value of financial instruments Margin on disposals Other Non-recurrent tax Profit/loss on discontinued operations Net income Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

41 FINANCIAL RESULTS RECURRING NET INCOME PER SHARE INCREASED 1.7% H H Change vs. H EPRA RNI (in m) % EPRA RNI/share ( ) % Average number of fully diluted shares 62,699,082 64,771, % Strengthening position in Hotels Strengthening of Germany Residential Lower average cost of debt Stable rental income at like-for-like scope Impact of disposals 2014 Dilution impact from capital increase in 2015 Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)

42 FINANCIAL RESULTS PORTFOLIO: INCREASE IN VALUE AT LIKE-FOR-LIKE SCOPE: +2.1% m Values H Total share Values H Group share Change (%) LFL 6 months Yield ED H Group share France Offices 5,301 4, % 6.4% Italy Offices 4,018 1, % 5.8% 1 Increase in Paris Region values and developments Value of Telecom Italia portfolio: +0.4% France Offices 9,319 6, % 6.2% Germany Residential 3,269 1, % 6.3% Hotels/Service Sector 3,494 1, % 6.0% Other 1, N/A N/A Value of Berlin: +7.1% Value of Hotels: +2.2% Total 17,379 10, % 6.0% Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Core Portfolio + dynamic: 5.7%

43 FINANCIAL RESULTS COMPLETION OF 50% OF THE PROGRAM OF DISPOSALS 45% of non-strategic assets above the appraisal values including 143 million in France Residential 55% of non-core assets: > France Offices : disposals of vacant assets with strong added value > Italy Offices: disposals of 126 million ( 61 million GS) of Telecom Italia assets at appraisal value ( m, H1 2015) Disposals and agreements 100% Disposals and agreements GS Margin vs. Values 2014 Yield France Offices % 2.6% Italy Offices % 6.7% Germany Residential % 5.3% Hotels & Service Sector % 3.9% Non-strategic % 2.9% Total asset disposals % 4.1% Quality improvement Group share data FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

44 FINANCIAL RESULTS EPRA NAV PER SHARE INCREASED BY 1.8% DESPITE THE DIVIDEND DISTRIBUTION Successful capital increase of > 255 million earmarked for investments in progress > Followed-up by the primary shareholders of Foncière des Régions > 3,917,722 new shares (6.2% of capital) EPRA NAV supported by recurring net income and increase in values > EPRA NAV: 5,075.6 million (+6.8% over six months) and 75.8 per share (+1.8% over six months 1 and +7.5% excluding impact of dividend) > EPRA NNNAV 4,437 million and 66.3 per share 5,076 m 4,754 m 74.5/share million Property values increase 75.8/share million RNI EPRA million Distribution million capital increase + 13 million Other Group share data EPRA NAV End 2014 Number of shares used to calculate NAV/share: 66,919,402 for 2015 vs. 62,941,712 for 2014 EPRA NAV 30 June 2015 FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Post-adjustment after preferential subscription rights distribution linked to the capital increase in early 2015 (adjustment coefficient of 0.986)

45 4. Outlook Calypso - Marseille 45

46 OUTLOOK 2015 OUTLOOK CONFIRMED PURSUING H ACHIEVEMENTS A constantly stronger real estate portfolio > 95% of strategic activities at end 2015 > 205 million GS of deliveries in Offices and Hotel real estate; start of new projects > Pursue acquisitions in German Residential and in Hotel real estate > Disposals: 700 million GS target for 2015 Great stories with Key Accounts > New negotiations in-process with our partners Vélizy Offices Milan Offices EMBEDDED FUTURE GROWTH Offices: use development projects as a base > Source of high profitability and value creation Diversifications: two major growth drivers > German Residential: organic growth > Hotel real estate in Europe: benefit from favourable structural and cyclical factors Liability: still possibilities to reduce the cost of debt Berlin Residential FONCIÈRE DES RÉGIONS Confirmation of a slight increase in RNI per share for 2015 Paris Hotels HALF-YEARLY RESULTS

47 AGENDA FINANCIAL AGENDA Q3 2015: 5 November 2015 FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

48 Appendices Steel - Paris 48

49 APPENDIX: 1 COMMITTED PIPELINE 26 PROJECTS FOR 463 MILLION Group share Yield > 7% Value creation > 10% Rental income > 32 m Pre-let at 60% Projects (% held) Type Location Projects Area 1 (m²) Delivery Target rent ( /m²/year) FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS % usable area excl. car park Group share data 2 Group share incl. land and financial cost Preleasing (as a %) Total Budget 2 ( M) Target yield Progress (%) Offices 128,550 53% > 7% 63% Steel France Offices Paris Regions Refurbishment 3, % % 100% Askia Cœur d Orly (FDR share: 25%) France Offices Orly - Greater Paris Construction 18, % 15.4 > 7% 100% Green Corner France Offices Saint-Denis - Greater Paris Construction 20, % 86.9 > 7% 85% Eiffage Campus (FDR share: 50%) France Offices Vélizy - Greater Paris Construction 23, % 53 > 7% 85% 2015 Subtotal 65,600 63% > 7% 89% Euromed Center Calypso (FDR share: 50%) France Offices Marseille Construction 9, % 14.9 > 7% 65% Dassault Systèmes Extension (FDR share: 50%) France Offices Vélizy - Greater Paris Construction 13, % % 35% Schlumberger Montpellier Pompignane France Offices Montpellier Reconstruction 3, % 8.1 > 7% 40% Silex I France Offices Lyon Refurbishment 10, % % 35% Clinique Saint-Mandé France Offices Saint-Mandé - Greater Paris Reconstruction 5, N/A 100% % 40% Bose France Offices Saint-Germain-en-Laye - Greater Paris Construction 5, % 20.3 > 7% 65% 2016 Subtotal 47,050 60% > 7% 43% Thaïs France Offices Levallois - Greater Paris Refurbishment 5, N/A 0% % 20% Euromed Center: Bureaux Hermione (FDR share: 50%) France Offices Marseille Construction 10, % 14.4 > 7% 45% 2017 Subtotal 15,900 0% 54.4 > 7% 27% Hotels 100% 63.1 > 7% 50% B&B Porte de Choisy Hotels Paris Regions Construction N/A 2015 N/A 100% 3,5 6.3% 91% B&B Lyon Caluire Hotels Lyon Construction N/A 2015 N/A 100% 2,2 6.7% 72% B&B Romainville Hotels Romainville - Greater Paris Construction N/A 2015 N/A 100% 1,7 > 7% 84% B&B Mülheim Hotels Germany Construction N/A 2015 N/A 100% 1,9 > 7% 98% B&B Erfurt Hotels Germany Construction N/A 2015 N/A 100% 1,4 > 7% 54% B&B Osnabrück Hotels Germany Construction N/A 2015 N/A 100% 3,2 > 7% 34% 2015 Subtotal N/A N/A 100% 14,6 > 7% 78% Euromed Center - Hotel (FDR share: 50%) France Offices Marseille Construction N/A 2016 N/A 100% 18,6 > 7% 75% B&B Torcy Hotels Torcy - Greater Paris Construction N/A 2016 N/A 100% 2,6 > 7% 59% B&B Duisburg Hotels Germany Construction N/A 2016 N/A 100% 2,4 > 7% 35% B&B Berlin Hotels Germany Construction N/A 2016 N/A 100% 2,1 > 7% 35% B&B Konstanz Hotels Germany Construction N/A 2016 N/A 100% 2,5 > 7% 30% B&B Potsdam Hotels Germany Construction N/A 2016 N/A 100% 4,8 > 7% 27% B&B Hamburg Hotels Germany Construction N/A 2016 N/A 100% 3,5 > 7% 11% 2016 Subtotal N/A N/A 100% 36,5 > 7% 53% Meininger Munich Hotels Germany Construction N/A 2018 N/A 100% 12,7 6.8% 0% Total N/A N/A 60% 463 > 7% 61%

50 APPENDIX 2 ORANGE PORTFOLIO IN PARIS REGION: QUALITY; VALUE CREATION POTENTIAL 17 assets including 9 of the 10 primary Orange buildings; 780 million in value; 58% of the Orange portfolio Montmartre Maillot Carnot Laborde Villette Provence Anjou Menilmontant Guttemberg Voltaire Cherche Midi Philippe Auguste Keller Raspail Gobelins Bobillot FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

51 APPENDIX 3 GERMANY RESIDENTIAL PRIME LOCATIONS IN CITIES WITH POTENTIAL (RED SPOTS) Rating ImmoScout24 Berlin Hamburg FONCIÈRE DES RÉGIONS Leipzig Dresden HALF-YEARLY RESULTS

52 APPENDIX 4 GERMANY RESIDENTIAL : CHANGE IN RENT REGULATIONS Before Starting in 2015 New lettings New lettings > New rent is freely determined > The new rent cannot exceed the reference rent (Mietpiegel, 3 comparable rents appraised by an expert) by more than 10% > In the event of modernisation work: it is possible to increase the rent by 11% of the cost of the work 1 Existing tenants Existing tenants > Rent increase limited from 15% to 20% (depending on the city) and not to exceed the Mietspiegel (market average) > No change > Increase possible every 3 years > In the event of modernisation work: rent may be increased by 11% of the cost of the work 1 but may not exceed the market average (Mietspiegel) Limited impact on Foncière des Régions > Implementation in Berlin, NRW and Hamburg since June-July 2015 > Limit impact by using 3 comparable references as the reference rent FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS Modernisation costs excluding maintenance share of investments

53 APPENDIX 5 ORGANISATION CHART A development by financial partners in order to further the real estate strategy Foncière des Régions 48.3% 61.0% 43.1% France Offices Italy Offices (Beni Stabili) Germany Residential (Immeo) Hotels & Service Sector (Foncière des Murs) 40.8% Consolidated subsidiaries Management contracts (FDM Management) Equity affiliates FONCIÈRE DES RÉGIONS HALF-YEARLY RESULTS

54 Contact Paul Arkwright Tel.: Mobile: paul.arkwright@fdr.fr Paris 30, avenue Kléber Paris Tel.: FONCIÈRE DES RÉGIONS