MRM - 2018 Registration document

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General information on the issuer and its capital Management report for the year ended 31 December 2018

Value of the property portfolio (excl. transfer taxes) (in millions of €)

31/12/2018

31/12/2017

Retail

159.3

159.0

5.4

40.0

Offices

TOTAL

164.7

199.6

1.3.4 Net Asset Value As of 31 December 2018, the EPRA NNNAV was €2.35 per share, down 12.9% on the year-earlier level of €2.70. Factoring in the 2017 dividend paid in 2018, the EPRA NNNAV at the end of December 2018 was down 9.3% year-on-year.

The replacement NAV is EPRA NNNAV plus transfer taxes. It corresponds to the capital needed to replace the Group’s portfolio. As at 31 December 2018, this came out at €2.60 per share, compared with €3.05 per share at 31 December 2017.

31/12/2018

31/12/2017

Calculation of NAV

€m

€/share

€m

€/share

IFRS Group equity

102.6

118.0

Dilutive effects

0.0

0.0

102.6

2.35

118.0

2.70

NAV

- Cancellation of treasury shares - Fair value of financial instruments

0.0 0.0 0.8

-0.1 -0.0

- Fair value of liabilities

1.1

EPRA NAV

103.4

2.37

119.0

2.73

+ Fair value of financial instruments

0.0

0.0

+ Fair value of liabilities

-0.8

-1.1

102.6

2.35

118.0

2.70

EPRA NNNAV Transfer taxes

10.7

15.3

Replacement NAV

113.4

2.60

133.2

3.05

1.3.5 Net operating cash flow Gross operating income came to €3.9 million in 2018. This 7.2% increase on the 2017 level of €3.6 million stems from a reduction in operating costs and other non-recurring operating expenses, which more than offset the reduction in net rental

income due to asset disposals. Given a 21.4% reduction in borrowing costs, net operating cash flow (1) was positive at €2.4 million in 2018, up 38.5% year-on-year.

Change 2018/2017

Net operating cash flow (in millions of €)

2018

2017

Net rental revenues

6.7 0.1

7.8 0.1

-14.8%

Other operating income

Operating expenses

-2.5 -0.4

-2.8 -1.5

-11.00%

Other operating expenses

EBITDA

3.9

3.6

7.2%

-1.5

-1.9

-21.4%

Net borrowing cost

Other financial expenses

0.0

0.0

NET OPERATING CASH FLOW

2.4

1.7

38.5%

(1) Net operating cash flow = net profit (loss) before tax restated for non-monetary items.

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M.R.M. 2018 REGISTRATION DOCUMENT