MRM - 2018 Registration document

1

Information on M.R.M.’s activities

Presentation of the Company

Exceptional locations, such as the Champs-Elysées or some luxury high streets like Rue Saint-Honoré have been spared from this phenomenon with transactions that often include high key money amounts, particularly for small spaces. This format stands out from the medium and large segments in which values can be lower due to their size (which may be more difficult to retailers make profitable) and by a market in which supply outweighs demand. Many of these lease offers come about, particularly in the clothing sector, where retailers are introducing selective locational strategies. This new reality could drive highly opportunistic activity in the high-street retail segment over the coming months. Market easing Market maturity, erratic consumption and falling turnovers have frustrated attempts to develop new projects, particularly for out-of-town retail. In addition, restrictions imposed by various regulations sometimes have an indirect impact on out-of-town retail development. As a result, only 53% of the retail space planned at the beginning of 2018 came to fruition with a total of 560,000m 2 of shopping centres, retail parks and outlet centres. This volume of openings represents a -28% decrease compared with 2017. Stable transformation rate With a total of nearly 173,000m 2 in 2018, shopping centre openings remained in line with forecasts issued at the beginning of the year, giving a transformation rate of 80% - identical to 2017. This appears to be reasonable as the volume of space completions fell by over a third compared with 2017. Unlike last year, new space creations were in the majority with close to 60% of completions throughout the year, similar to in 2016. This distribution was largely due to the completion of shopping centres “B’est” in Farébersviller and “Prado” in Marseille which accounted for over 75% of new space creations. A higher number of extensions and refurbishments drove particularly strong activity in regional markets in 2018 (97% of openings in the regions). In Rouen Saint-Sever, Noyelles-Godault, Colmar and Guichainville, hypermarkets have been reconfiguring their offering with extension projects. These were for relatively moderate spaces (an average of 4,700m 2 ) with the exception of the “La Lézarde” project in Montivilliers, near to Le Havre, with 27 new stores over 19,000m 2 . Shopping centres

Paris, focus on the Right Bank… Paris remained in the lead in terms of transactions and accounted for 55% of those recorded in 2018. The Right Bank’s market share has gradually risen to over 80% of the transactions carried out in the capital (70% in 2017). Personal goods was the most active sector with 40% of take-up, followed by the food and beverage sector (27%) and household goods (10%). Transactions were concentrated in several changing submarkets. With Avenue des Champs-Elysées in the lead, this major high street has continued its transformation with the opening of the flagship APPLE STORE on the even side and the re- opening of MONOPRIX at number 52 on the lower end before the forthcoming arrival of GALERIES LAFAYETTE, LANCÔME, DIOR and CHANEL COSMÉTIQUE. On the odd side, there has been a succession of retailer openings following CITADIUM at no. 65 and the forthcoming arrival of NIKE at no. 79. These transactions have covered the full range of store types, from pop-ups to megastores. The avenue’s new look should be ready by 2020/2021. The Rivoli district is also having a makeover with the refurbishment of the Samaritaine hub, the 2019 arrival of a large DFS duty-free store, offices and a CHEVAL BLANC hotel. In conjunction with the neighbouring Marais district, a new major retail centre is starting to emerge in the Right Bank. On the Left Bank activity has focused on the Le Bon Marché department store and adjacent roads: Rue du Bac, Rue de Sèvres, Rue du Four, Rue du Vieux Colombier. This concentration comes at the expense of Rue de Rennes and Boulevard Saint-Germain where demand has fallen significantly. The regional market remained active, mainly the major regional cities which accounted for three quarters of transactions in the regions, 25% of which were in Lyon. Demand also remained strong in Bordeaux, Nantes, Nice, Toulouse and Strasbourg where the dynamism of the leasing activity has encouraged the development of national and international retailers, such as KUJTEN (Lyon, Bordeaux), COURBETTES ET GALIPETTES (Toulouse, Aix-en-Provence) and BIOCOOP (Nantes, Lyon, Lille). However, attractiveness in these cities applies almost uniquely to the main high streets, where retailers are guaranteed footfall. Rental values: back to reason The tone has been set for the past few months: demand has been determined by increasingly strict profitability criteria and rental values have become increasingly aligned with retailer expectations. This phenomenon is likely to continue in 2019 with a correction in values likely encouraging leaseholders to leave their premises, even to be seen on the majority of French high streets. A decrease in the amounts paid for lease transfers is though they are sometimes not recovering their initial outlay.

18

M.R.M. 2018 REGISTRATION DOCUMENT