GECINA - REFERENCE DOCUMENT 2017

COMMENTS ON THE FISCAL YEAR

Business review

RECURRENT NET INCOME (GROUP SHARE) HIGHER THAN GECINA’S INITIAL EXPECTATIONS 2.1.4

Recurrent net income (Group share) is up +4.6% to €363.5 million (€5.44 per share), coming in higher than the Group’s initial expectations following Eurosic’s acquisition. This performance reflects Eurosic’s integration and the conditions for financing this acquisition, as well as the first operational and financial synergies secured. For reference, when it announced its plans to acquire Eurosic, the Group was targeting operational synergies of over €17 million, with €12 million effective immediately. Today, with Eurosic’s integration, operational and financial synergies are expected to exceed €30 million, including over €20 million of operational synergies. Recurrent net income per share increased by +9.4% restated for the impact of the Healthcare sale versus 2016, to be compare to the initial guidance of -5% to -6% announced at the beginning of 2017. This outperformance can be explained in particular by the accretive effect of the acquisition of Eurosic of a minimum of 10% in a full year. Portfolio rotation: +€26 million net change in rental income This growth reflects the portfolio’s rotation in 2016 and 2017, primarily with the healthcare portfolio’s sale in 2016 and Eurosic’s acquisition in 2017, with a net rental gain of +€26 million for the year. The recent acquisitions generated +€76 million of rental income in 2017 (with €70.3 million from Eurosic and the rest generated by three acquisitions of buildings located in Paris and La Défense). The loss of rent due to the sales carried out in 2016 and 2017 represents -€50 million (with -€39.4 million for the

healthcare portfolio, sold in 2016, and the rest from the sale of four buildings in 2016 and various residential sales on a unit basis when they become vacant). For reference, these sales achieved premiums of around +16% compared with the appraisal values. In addition, the sales from 2017 did not have any significant impact on earnings for the year because they were finalized during the second part of the last quarter of 2017. Operations relating to the pipeline (deliveries and launch of redevelopment work): -€15.7 million net change in rental income The change in recurrent net income (Group share) also reflects the impact of operations relating to the pipeline. The rental income generated by the recent deliveries of buildings under development represents +€5.4 million for 2017 (55 Amsterdam, Lyon-Septen and two student residences). Alongside this, the numerous buildings transferred to the pipeline in 2016 and 2017 account for a temporary drop in rental income for -€21.1 million. Optimization of financial expenses Financial expenses were reduced by -6.5% in 2017, while the average volume of debt is up +33% from 2016, linked to Eurosic’s acquisition, taking into account the drop in the average cost of debt to 1.7% in 2017 from 2.2% in 2016 (including costs of undrawn credit lines), while its average maturity has been extended further to 6.9 years.

02

Dec 31, 16

Dec 31, 17

Change (%)

In million euros

GROSS RENTAL INCOME NET RENTAL INCOME

558.9 516.9

540.0 498.9

+3.5% +3.6%

Na

Operating margin for other business (hotels and finance leases)

4.8 3.6

-

+183.6% +13.7%

Services and other income (net) Salaries and management costs

1.3

(71.8) 453.5 (80.4) 373.0

(63.2) 437.0 (86.0) 351.0

EBITDA

+3.8% -6.5% +6.3%

Net financial expenses

RECURRENT GROSS INCOME

Na Na

Recurrent net income from associates

1.0

0.0

Recurrent minority interests

(7.5) (3.0)

(0.2) (3.4)

-11.2% +4.6% +1.3%

Recurrent tax

RECURRENT NET INCOME (GROUP SHARE) (1)

363.5 5.44

347.4

RECURRENT NET INCOME (GROUP SHARE) PER SHARE

5.37 (2)

EBITDA less net financial expenses, recurrent tax and certain non-recurring costs (1) Following the adjustment of the payout for preferential subscription rights linked to the capital increase from August 2017 (adjustment coefficient of (2) 0.97391), according to IAS 33.

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GECINA - REFERENCE DOCUMENT 2017