MRM - 2018 Registration document

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Information on M.R.M.’s activities

Presentation of the Company

On the industrial segment, the logistics sector essentially sustained the market. These products have benefited from investors’striving to find higher returns and diversify their assets, given historically low interest rates. Portfolios remain popular, representing nearly 2/3 of total investment volumes. Foreign investors have dominated, particularly the North Americans (53%). Retail volumes have increased slightly, but the market remains constrained by its persistent dichotomy and uncertainty as to secondary products and locations. High street retail represented 59% of investments, which clearly demonstrated investors’preference for these assets when they are located in truly prime locations: 114 Avenue des Champs Elysées, 213 Rue Saint-Honoré or the Jouffroy portfolio. Retail warehouse buildings also proved popular, with the sale of several portfolios such as Cube, Eclats and Cormontreuil. Strong return of foreign investors Domestic investors have adopted a certain wait-and-see attitude, particularly among retail real estate investment funds such as SCPIs and OCPIs. This downturn is explained by reduced fundraising after several frenetic years, and strong acquisition activity. In the interest of risk diversification, certain fund managers have focused on international and/or alternative assets. 2018 was marked by the return of foreign investors: 44% of transactions versus 37% in 2017. This parallels the conclusion of several large office space transactions: Capital 8, Tour Ariane, Window… Foreign players have also invested on the industrial/logistics segment, and have acquired several logistics platform portfolios: Hercule, Azurite, Spear… American investors, and to a lesser extent German investors, have been particularly active (21% and 7% respectively of investment volume). With 5% of transactions, as well as several large transactions which should be concluded by summer 2019, Asian investors have also confirmed their interest in France. The worst is never certain Given the various political uncertainties currently affecting European markets (populism in Italy and elsewhere, Brexit, etc.), investors continue to favour France, despite inevitable concerns arising from the recent yellow vest protests. For the time being, the protests have not led to a wait-and-see approach in terms of sales launch and current negotiations. The new purchasing power support measures announced in response to the protests should have a positive impact on consumption and therefore on the French economy.

Compared to stock markets which are once again quite volatile, commercial real estate remains a secure investment. As a result, an increase in prime yields is unlikely in the months ahead, even if the European Central Bank’s more restrictive monetary policy, announced for summer 2019, should eventually produce moderate effects. Also, the new Franco-Luxembourg treaty has not for the moment impacted foreign investors’investment choices. The text will only take effect on 1 January 2020, given the provisional government that is currently managing affairs in Luxembourg and the busy political calendar in France. This new agreement will nevertheless impact returns and therefore investment strategies: accept a lower IRR or maintain expectations and therefore adopt strategies with stronger added value. This reflects the diversification logic at play among certain investors. Above all, questions concerning metric values, rather than yields, are becoming inevitable. In a global environment that is increasingly alarming, investors remain ready to pay high prices for secure assets that are truly prime, i.e., located in well-established sectors. Less so elsewhere… 2019 is therefore off to a strong start, with several large investments expected during H1. Several investors are also willing to arbitrate without waiting. The year ahead should perform well, yet the final outcome will depend both on the international context and on France’s ability to maintain trust whilst pursuing reforms. The retail market Source: Excerpts from the annual study by Cushman & Wakefield “Marketbeat France Retail – Overview 2018”. Economic climate Improvements in purchasing power in France over Q2 and Q3 2018 (+0.4% and +0.8%) together with transport services returning to normal helped to stimulate household consumption over Q3 2018 (+0.4% after -0.2%). This combined with a substantial level of investment and a net positive trade balance of +0.7% resulted in a +0.2% increase in French growth over Q2 2018 and +0.4% over Q3 2018. However, these improvements were quickly cancelled out by the ‘yellow-jacket’movement which had an immediate impact on household consumption over the festive period. Disturbances linked to these protests are likely to have reduced GDP growth by 0.1 point over the Q4 period. Although normally active, Q4 2018 should just reach +0.2%, taking the overall provisional growth figures for 2018 to 1.5% following +2.3% in 2017. Since January, there have been decreases in both

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M.R.M. 2018 REGISTRATION DOCUMENT