GECINA - REFERENCE DOCUMENT 2017

ADDITIONAL INFORMATION

Glossary

GLOSSARY 9.4

Available supply: All vacant surface areas, offered for commercialization on the market. Block sales: Sale of an entire building to the same buyer. Capitalization rate: Its calculation is determined by the ratio of potential rents over the appraisal value excluding rights. Duties correspond mainly to transfer duties (notary expenses, registration taxes, etc.) applied to the asset sale or the company holding that asset. Current basis: All real estate assets as held over a given period or on a given date. Face-value rent: Face-value rent corresponds to the valuation present on the lease signed by two parties. EPRA (European Real Estate Association): Gecina has been a member of EPRA, the European Public Real Estate Association, since its creation in 1999. The EPRA publishes recommendations on, in particular, performance indicators to make the financial statements of real estate companies listed in Europe more transparent and more comparable. ICC: Index of the cost of construction published by INSEE and used for the annual review of certain rents, such as commercial or office leases. IGH: High rise building ( immeuble de grande hauteur ). They are subject to strict safety standards, especially regarding fire protection. ILAT (INSEE Retail Rental Index): Retail Rental Index ( indice des loyers des activités tertiaires ) published by INSEE and used for the annual review of certain rents, such as office leases. ILC: Index of commercial rents ( indice des loyers commerciaux ) published by INSEE and used for the review of certain rents, such as commercial leases. IRL: Rent reference index ( indice de référence des loyers ) published by INSEE and used for the annual indexation of rental revenues on residential properties. Like-for-like: All real estate assets excluding acquisitions, disposals and all programs intended for redevelopment or under development. LTV (Loan-to-Value) The Loan-to-Value ratio is calculated by dividing consolidated net debt by the portfolio value as determined by independent experts.

NAV (Net Asset Value): Diluted Net Asset Value (NAV) per share: its calculation is defined by EPRA. Detailed in paragraph 2.5, this indicator comprises the company’s revalued shareholders’ equity, i.e . based on the fair value of consolidated assets and liabilities, including balance sheet items not valued at fair value, such as the headquarters and most financial debt at fixed rate. This amount, known as the NAV, is calculated in relation to the company’s number of shares at the end of the period excluding treasury shares, taking account of any diluting items stemming from the equity instruments to be issued when the issuance conditions are met. Net recurring income: Net recurring income (also known as net current cash flow) per share, which Gecina defines as the difference between EBITDA and net financial expenses and recurring income tax. This can be calculated by excluding certain non-recurring elements. This amount is based on the average number of shares comprising share capital, excluding treasury shares. Pipeline: The pipeline of Gecina projects refers to all the investments the Group plans to make over a given period, in terms of development or redevelopment. The pipeline breaks down into three categories: the committed pipeline, which comprises transactions ■ under development; the “certain” controlled pipeline, which concerns the ■ assets held by Gecina that are currently being vacated and for which a redevelopment project aligned with Gecina’s investment criteria has been identified. These projects will therefore be launched over the coming half-year or full-year periods; the “probable” controlled pipeline, which brings together ■ the projects identified and held by Gecina, for which a redevelopment project aligned with Gecina’s investment criteria has been identified, and which might require pre-commercialization (for “greenfield” projects in peripheral locations within the Paris Region) or in respect of which tenant departures are not yet certain in the short term. Potential rent: Potential rent = annualized rent at end of period + market rental value of vacant units. Pre-commercialization: Firm commitment of a user prior to the actual availability of a building. Prime yield: Lowest ratio between the rent and the sales price excluding tax, obtained for the acquisition of a building of standard size, of excellent quality, offering the best amenities, and in the best location of the market. Take-up: All transactions, whether leasing or sale, carried out by end users, including turnkey.

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GECINA - REFERENCE DOCUMENT 2017

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