GECINA - REFERENCE DOCUMENT 2017

COMMENTS ON THE FISCAL YEAR

Financial resources

FINANCIAL RESOURCES 2.2 The year 2017 was marked by the acquisition of Eurosic, its financing, and the integration of the Group, including its debt and hedging portfolio. The transaction, which was signed and financed as of June 2017, was effective during the second half of the year. In a still-favorable macroeconomic and financial environment with low rates, Gecina has been very active in terms of financing rotation and liability management. The Group raised €3.3 billion in funds (8.9 years of average maturity), €1.5 billion of which was through three bond issues in June 2017 to finance the acquisition of Eurosic. The rapid integration of Eurosic financing, the use of long-term bonds/short-term resources coupled with medium-term liquidity, as well as the optimization of the combined structure (debt and hedging) had a positive effect on the main aggregates of the Group compared to 2016, which was part of a context of declining debt volume: fall in the average cost of drawn debt to 1.3% (-40 bp ■ compared to 2016); prolongation of the average maturity of debt to 6.9 years ■

The consolidated LTV was 42.4% as of December 31, 2017, an increase following the acquisition of Eurosic. A disposal plan of at least €1.2 billion is underway and aims to bring the LTV below 40%. The quality of Gecina’s credit fundamentals was confirmed by the rating agencies following the announcement of the acquisition of Eurosic group, which retained their respective ratings: BBB+ positive outlook confirmed by S&P and A3 credit rating confirmed by Moody’s with a revision of the outlook from stable to negative pending completion of the divestiture program. Gecina also largely optimized the combined hedge portfolio following the acquisition of Eurosic, through the cancellation of short-/medium-term swaps, the buy back of short-term bond issues and the introduction of long-term fixed rate debt. As of December 31, 2017, the average maturity of hedges was 7.5 years. The Group is also pursuing the optimization of the combined financial structure. Gecina demonstrated the flexibility and robustness of its financial structure, which the Group plans to maintain in the coming years. In addition, at year-end 2017, available liquidity easily covers the credit maturities for the next two years.

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(+0.2 years compared to the end of 2016); ICR up +0.7x compared to 2016, at 5.6x. ■

2.2.1

DEBT STRUCTURE AT DECEMBER 31, 2017

Net financial debt (1) amounted to €8,331 million at the end of 2017, up €4,749 million compared to last year due to the acquisition of Eurosic.

The main characteristics of the debt are:

12/31/2016

12/31/2017

Gross financial debt (In € million) (2) Net financial debt (In € million) (1) Gross nominal debt (In € million) (2) Unused credit lines (In € million)

3,640 3,582 3,616 2,245

8,453 8,331 8,427 3,760

Average maturity of debt (years, adjusted for available credit lines)

6.7

6.9

LTV

29.4% 27.7%

42.4% 40.0%

LTV (including transfer taxes)

ICR

4.9x

5.6x

Secured debt/Properties

6.5%

3.6%

Excluding fair value related to Eurosic's debt, €8,412 million including those items. (1) Gross financial debt (excluding fair value related to Eurosic’s debt) = Gross nominal debt + impact of the recognition of bonds at amortized cost (2) + accrued interest not yet due + miscellaneous.

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GECINA - REFERENCE DOCUMENT 2017