GECINA - REFERENCE DOCUMENT 2017

02

COMMENTS ON THE FISCAL YEAR Appraisal of property holdings

Net yield (incl. duties)

Net capitalization rate (excl. duties)

Combined (2) 12/31/2017

Gecina (1) 12/31/2017

Gecina (1) 12/31/2016

Combined (2) 12/31/2017

Gecina (1) 12/31/2017

Gecina (1) 12/31/2016

OFFICES Paris City

4.26% 4.06% 4.33% 4.56% 4.34% 4.65% 3.66% 3.61% 3.95% 3.91% 3.88% 4.23% 3.24% 3.26% 3.56% 3.47% 3.49% 3.81% 3.73% 3.91% 4.27% 3.99% 4.19% 4.57% 2.24% 2.24% 2.44% 2.41% 2.41% 2.63% 5.04% 5.36% 5.87% 5.41% 5.77% 6.31% 4.45% 4.34% 4.61% 4.75% 4.64% 4.90% 6.30% 5.83% 5.89% 6.76% 6.27% 6.23% 5.79% 5.81% 5.85% 6.12% 5.92% 5.96% 3.24% 3.26% 4.10% 3.46% 3.48% 4.37%

Paris CBD & 5-6-7 ■

Paris CBD & 5-6-7 - Offices ■ Paris CBD & 5-6-7 - Retail

Paris Other ■

Western Crescent - La Défense

Paris Region Other Regions/Foreign

RESIDENTIAL

OTHER ACTIVITIES

6.31% N.A.

N.A.

6.70% N.A.

N.A.

TOTAL LIKE-FOR-LIKE BASIS (1)

4.11% 3.87% 4.30% 4.39% 4.14% 4.59%

Like-for-like basis 2017. (1) Combined scope = Gecina 2017 like-for-like +6-month Eurosic like-for-like. (2)

For each asset category, the property appraisers established working assumptions based mainly on their knowledge of the market and in particular of the latest transactions. It is in this context that they determine the various capitalization and discount rates.

The table below indicates, by asset category, the range of discount rates used by the property appraisers to prepare the Discounted Cash Flow (DCF method) in their current appraisals. Sector-specific premium risks were determined with reference to the French Treasury’s ten-year OAT (with an interest rate of 0.70% as at December 31, 2017).

Discount rate 12/2017

Specific risk premium 12/2017

OFFICES

3.00% 3.00% 3.00% 3.00%

- - - -

11.50% 2.30% 8.75% 2.30% 11.50% 2.30% 6.50% 2.30%

- - - -

10.80% 8.05% 10.80% 5.80%

Offices - Paris

Offices - Paris Region

Regions Offices

The property portfolio value (block) rose by +61% on a current basis, or +€7,477 million (+15% excluding Eurosic or +€1,791 million). This increase is due to the Eurosic acquisition, whose portfolio assets as of December 31, 2017 are valued at €5,686 million and the increase of the assets of the Gecina like-for-like scope (+€1,138 million, including €32 million in investments) in line with the fall in interest rates observed on the markets in the first half of the year. On a like-for-like basis in 2017, the portfolio value ■ increased €1,138 million. On a combined scope (like-for-like Eurosic and Gecina for the second half of the year), the increase in value was +2.6%, or +€373 million. the value of office properties appreciated during the (i) year (+7.7% or +€583 million). Net capitalization rates dropped on all properties (down 31 bp at 4.34%); the value of the residential portfolio was up overall (ii) during the year: +29.8% or +€552 million for traditional residential and +1.6% or +€3 million for student residences. Unit valuations increased by 16.0%.

The value per square meter of traditional residential properties stood at €6,209/sq.m as at December 31, 2017 with a net capitalization rate of 3.35%. The value per square meter of student residences was €4,424/sq.m with a net capitalization rate of 4.95%. acquisition of the Eurosic portfolio valued at €5,686 million as of December 31, 2017 and two office assets for €142 million, valued at €161 million as of December 31, 2017; two office assets and two student residences were delivered in 2017 for a value of €367 million as of December 31, 2017 (+€137 million over the year for a capex amount of €24 million) (55 Amsterdam in Paris 8 th arrondissement, Grande Halle in Lyon, and the student residences La Grande Arche in Puteaux and Mazenod in Marseille); the balance sheet valuation of the pipeline as at December 31, 2017 surged by €413 million. This increase in valuation can be explained by investments of +€196 million;

On a current basis: ■

(i)

(ii)

(iii)

42 GECINA - REFERENCE DOCUMENT 2017

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