GECINA - REFERENCE DOCUMENT 2017

04

ANNUAL FINANCIAL STATEMENTS Notes to the annual financial statements at December 31, 2017

Bank covenants The company’s main credit facilities are accompanied by contractual clauses relating to compliance with certain financial ratios (calculated on consolidated figures), determining interest rates charged and early repayment clauses, the most restrictive of which are summarized below: Balance at 12/31/2016 Net debt/revalued block value of property holding (excluding duties) Maximum 55% / 60% 42.4% 29.4% EBITDA (excluding disposals)/net financial expenses Minimum 2.0x 5.6x 4.9x Outstanding secured debt/revalued block value of property holding (excluding duties) Maximum 25% 3.6% 6.5% Revalued block value of property holding (excluding duties) in € billion Minimum 6.0 / 8.0 19.6 12.2 Benchmark standard Balance at 12/31/2017

Change of control clauses For all the bonds a change of control leading to the downgrading of Gecina’s credit rating to “Non-Investment Grade”, not raised to “Investment Grade” within 120 days, can lead to early repayment of the loan.

Exposure to interest rate risks

4.3.4.9

Debt after hedging at 12/31/2016

Debt before hedging at 12/31/2017 2,633,825 3,844,600 6,478,425

Debt after hedging at 12/31/2017

Effect of hedging at 12/31/2017

In €’000

Floating rate financial debt Fixed rate financial debt

(925,000) 925,000

- -

1,708,825

266,075

4,769,600 3,093,400 6,478,425 3,359,475

INTEREST-BEARING FINANCIAL DEBT (1)

Gross debt excluding accrued interest, bank overdrafts and Group debts. (1)

DERIVATIVE PORTFOLIO

12/31/2016

12/31/2017

In € ’000

Derivatives in effect at year-end Fixed rate swaps

300,000 625,000

450,000 625,000 400,000 1,475,000

Caps ( purchases ) Floating rates swaps

SUB-TOTAL

925,000

Derivatives with deferred impact (1) Fixed rate swaps

150,000 150,000

SUB-TOTAL

TOTAL

925,000 1,625,000

Including nominal changes on derivatives in portfolio at closing. (1)

All financial instruments are interest rate risk hedging instruments and no transactions are isolated open positions. The fair value of the derivatives portfolio as at December 31, 2017 shows an unrealized termination loss of €7 million.

Hedging instruments were restructured during the fiscal year, leading to financial expenses of €12 million.

120 GECINA - REFERENCE DOCUMENT 2017

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