GECINA - REFERENCE DOCUMENT 2017

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Payroll costs relate to the company’s administrative staff, since the salaries of building staff are included in rental margins. Depending on their type, a portion of salaries and fringe benefits has been reclassified to the income statement or balance sheet, as applicable, for a total amount of €4.7 million at December 31, 2017. Personnel expenses costs attributable to disposals are recorded under gains or losses on disposal. Those attributable to projects under development and marketing actions are recognized as fixed

assets. Lastly, payroll costs attributable to ongoing studies are booked as prepaid expenses. Share-based payments concern stock options for new or existing shares and performance shares (see Note 3.5.9.5) and are booked in accordance with IFRS 2 (see Note 3.5.3.7). Management fees primarily include fees paid by the company and head office operating costs (computer maintenance, insurance, advertising, etc.).

Gains or losses on disposals

3.5.6.7 Disposals represented:

12/31/2016 313,781 169,196 482,977 (292,894) (127,958) (420,852)

12/31/2017

In €’000

03

Block sales Units sales

422,232 125,274 547,506 (421,225) (92,226) (513,451) (8,728) (5,279) (14,007) (7,721) 27,769 20,048

PROCEEDS FROM DISPOSALS

Block sales Units sales

NET BOOK VALUE

Block sales Units sales

(5,081) (6,375) (11,456) 15,807 34,863 50,669

COST OF SALES

Block sales Units sales

CAPITAL GAINS ON DISPOSAL

Salaries and fringe benefits directly attributable to disposals and to a lesser extent management fees recorded under “Gains or losses on disposal” for the year ended December 31, 2017, amounted to €1.7 million versus €2.5 million in 2016.

Change in value of properties 3.5.6.8 Changes in the fair value of property holdings break down as follows:

12/31/2016 7,596,030 2,073,520

Change

%

12/31/2017

In € million Offices

8,179,335 2,628,490

583,305 554,970 1,138,275 130,558 202,931 112,545 1,584,310 (26,758)

+7.7% +26.8% +11.8%

Residential

INVESTMENT PROPERTIES (1)

9,669,550 10,807,825

Change in value of projects delivered and acquisitions (2)

Change in value of projects in progress (2) Change in value of assets held for sale (3)

CHANGE IN VALUE

Capitalized works on investment properties (1) Capitalized salaries and fringe benefits on investment properties (1) Acquisition costs, translation differentials and other (1) CHANGE IN VALUE RECORDED IN INCOME STATEMENT AT DECEMBER 31, 2017 Change in value of investment properties (Note 5.5.5.1.1). (1) Change in value of properties under reconstruction (Note 5.5.5.1.1). (2) Change in value of properties for sale (Note 5.5.5.1.1). (3)

(1,081)

(697)

1,555,772

93

GECINA - REFERENCE DOCUMENT 2017