MRM - 2018 Registration document

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Information on M.R.M.’s activities

Presentation of the Company

In 2017, M.R.M. acquired the full ownership of the Aria Parc retail park in Allonnes, via the purchase of a 1,500m 2 retail unit for €1.8 million excluding tax, and sold, for an insignificant amount, a small retail space previously operated by Gamm Vert. 2018 was marked by the sale of the Nova office property in La Garenne-Colombes for the sum of €38.0 million, excluding transfer taxes. The disposal of M.R.M.’s last operating office property marks an important step towards completing the

Group’s strategy launched in mid-2013 to refocus on retail real estate. This transaction brought the total amount of office asset disposals carried out by M.R.M. since that date to €126 million. In addition, as part of its active retail-portfolio management strategy, M.R.M. has also sold a small retail space previously operated by Gamm Vert for €0.2 million excluding transfer taxes.

A property portfolio refocused on retail assets

31/12/2018

31/12/2017

Value excl. transfer taxes

€164.7m

€199.6m

-17.5% vs 31/12/2017

+0.9% vs 31/12/2016

+1.5% excl. effect of disposals

+0.9% excl. effect of disposals

103,564m 2

Total area

94,397m 2

Value breakdown

97% retail/3% office properties

80% retail/20% office properties

The Group’s retail properties are located in the Paris region and in large cities in the provinces. The type of assets in this category is highly diversified. It consists of shopping centres and malls, highstreet retail units, independent suburban retail premises and premises in retail parks. The vast majority of the 128 retail property tenants are national and international brands. Together, these retailers account for 82% of gross annualised rent. As of 1 January 2019, the retail property portfolio represented an area of 86,427m 2 and was valued at €159.3 million excluding transfer taxes. In 2018, an additional 2,300m 2 were created within the context of the extension of the Aria Parc retail park in Allonnes. The surface area occupancy rate of the Group’s property portfolio was 84% in 2018, compared with 76% one year earlier. After a lacklustre year in 2017 for the rental activity due to notices received on three medium-sized retail spaces in Reims, Amiens and Allonnes from tenants experiencing difficulties at the national level, the occupancy rate at the end of 2018 picked up thanks to re-letting carried out during the year (26 leases (1) signed for an annual rental income of €1.7 million, including 10 leases for the Valentin shopping centre) and the positive impact in 2018 of leases signed in 2017. 2018 was particularly robust in terms of rental activity: 22 leases came into effect generating total annual rental income of €1.5 million; 3 medium-sized spaces representing nearly 5,500m 2 were re-let in Reims, Amiens and Allonnes, and the newly created medium-sized 3,300m 2 space at the Aria Parc retail park in Allonnes was delivered.

The retail asset portfolio generated a net annualised rent (2) of €8.2 million as of 1 January 2019, up 10.9% on the year- earlier level of €7.4 million. During 2018, investments in the properties portfolio stood at €14.5 million. These were primarily: • the extension of the Aria Parc retail park in Allonnes where the total surface area was increased from 10,500 to 12,800m 2 , including a 3,300m 2 unit to house the Maison Dépôt homeware store; • the launch of the redevelopment and extension of the Valentin shopping centre in Besançon, the largest project in M.R.M.’s investment plan. After carrying out the renovation of the existing shopping mall in 2017, a 2,600m 2 rental space extension was launched in the second quarter of 2018, involving the partial reconfiguration of the shopping mall. The total surface area of the mall will be brought to 6,700m 2 comprising 45 stores and 2 medium-sized retail units. The car park will also get a makeover with the addition of an outdoor parking area. The opening of the reconfigured Valentin shopping centre is scheduled for early 2020. During the year, M.R.M. sold a small unoccupied retail space previously operated by Gamm Vert, for €0.2 million excluding transfer taxes.

(1) Leases signed or renewed. (2) Excluding taxes, rent-free periods and support measures for lessees.

M.R.M. 2018 REGISTRATION DOCUMENT

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