GECINA - REFERENCE DOCUMENT 2017

COMMENTS ON THE FISCAL YEAR Business and earnings of main companies

BUSINESS AND EARNINGS OF MAIN COMPANIES 2.4

2.4.1

GECINA

02

Business and earnings 2.4.1.1 2017 rental income amounted to €250 million compared with €251 million in 2016. Residential sector rents fell from €109 million to €103 million as a result of asset disposals in 2016 and 2017. Rental income from the commercial sector decreased to €147 million in 2017 (€143 million in 2016). This increase is mainly explained by the end of the free periods in 2016 and 2017. Write-backs on provisions in 2017 concern €2.1 million in closed tax disputes, €1 million in rent receivables and €0.9 million in employee commitments. Operating income also includes recharges to tenants for €50 million, recharges of intercompany services for €35 million (classified in other income). Operating expenses for financial year 2017 came to €246 million (compared to €250 million for the previous year). External charges decline by €4 million compared to the prior financial year. These charges include in particular €3 million in management fees and €20 million in advising fees including €14 million linked to the acquisition of Eurosic. Depreciation totaled €60 million, a level comparable to 2016. Operating income thus stood at €96 million (€87 million previous year). Net financial income constituted net profit of €88 million, compared to net income of €20 million the previous year. This reflects in particular: interest and related expenses (net of cash revenue) of ■ €80 million (including €12 million linked to financial

termination expenses following the restructuring of transactions on financial hedging instruments); dividends received from subsidiaries and income from ■ equity investments of €188 million; write-downs and provisions for liabilities on securities and ■ receivables of subsidiaries in an amount of -€15 million, mainly for the company Colvel Windsor. A net profit of €150 million was recorded under exceptional items, of which €117 million of capital gains on disposals of properties, €54 million of net write-backs of provisions on properties and -€21 million of losses on buybacks of bonds and treasury shares. In 2016, a net profit of €367 million was recorded under exceptional items, of which €317 million generated by the disposal of the Healthcare portfolio and €91 million of capital gains on property disposals. Financial year 2017 net income amounted to a profit of €333 million, up from €469 million for 2016. 2.4.1.2 Financial position As at December 31, 2017, the company reported total assets of €12,258 million, compared to €7,802 million as at December 31, 2016. This increase is mainly explained by the acquisition of the securities and OSRA of Eurosic for a total amount of €3,264 million. The property portfolio directly held by Gecina totaled €3,573 million at the end of 2017 compared with €3,657 million at the end of 2016.

The changes were as follows:

In € million net book value of assets sold ■ capitalized expenditures ■

(108)

29

(59)

depreciation ■

54

net allocations to provisions ■

CHANGE IN THE PORTFOLIO VALUE

(84)

Equity investments and related receivables represented a total net amount of €7,108 million as at December 31, 2017, compared to €3,667 million at the end of 2016.

In € milion acquisition of Eurosic securities ■ acquisition of SCI Des Vaux securities ■

2,375

38

861 167

increase of related receivables (including €444 million with Eurosic) ■

net change in provisions ■

CHANGE IN EQUITY INVESTMENTS AND RELATED RECEIVABLES

3,441

47

GECINA - REFERENCE DOCUMENT 2017