MRM - 2018 Registration document

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General information on the issuer and its capital

Consolidated financial statements for the financial year ended 31 December 2018

Note 7

Segment information

Accounting principles

IFRS 8 – Operating Segments, effective since 1 January 2009, sets out the presentation of information to be provided for each operating segment. Operating segments determined on the basis of internal reporting correspond to an activity: • that can generate income and that incurs expenses; • whose operating income is regularly examined by the entity’s chief operating decision-maker in order to allocate resources to the various segments and assess their performance; • for which individual financial information is available. In view of these requirements, the Group has divided its property portfolio into operating segments according to the real estate market in which they are located. Namely the retail and office rental segments. These operating segments are best suited to assess the nature and financial impact of the Company’s activities and the economic climate in which it trades. The Group has moreover assigned its head office as a non-operating segment to handle transactions falling outside the remit of an operating segment.

7.1 Income statement by segment

The main line items of the standalone income statement are as follows:

Consolidated income statement as of 31/12/2018

Offices

Retail

Head office

Total

(in thousands of euros)

Gross rental revenues

785

8,746

- - -

9,531

-752

-2,115

-2,867

External property expenses not recovered

NET RENTAL REVENUES

34

6,630

6,664

Operating expenses

-114

-706

-1,634

-2,455

Reversals of provisions and impairment

29

269

315

612

Provisions and impairment Other operating income Other operating expenses

-239

-602

-1

-842

57

47

33

136

-63

-43

-347

-453

OPERATING INCOME BEFORE DISPOSALS AND CHANGE IN FAIR VALUE OF PROPERTIES

-296 -110

5,594

-1,635

3,663

Result on disposals of properties Change in fair value of properties

-

- -

-110

-13,981 -8,387

-12,102 -8,549

1,879

OPERATING INCOME Gross borrowing cost

1,472

-1,635

-218

-1,264

-10

-1,493

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