MRM - 2019 Universal Registration Document

1

Information on M.R.M.’s activities

Presentation of the Company

High streets as the preferred target of investors For a number of years now, retail property has suffered from changes which have rocked the sector and shaken investor confidence. Between 2012 and 2017, the share of retail property in the total standard commercial property investments in France therefore dropped from 24% to 13%. However, confidence in this asset class is gradually returning, as shown by the high volume of commitments for 2019 (€5.7 billion). Current trends are flattening out, and 2020 investment volumes look to be maintained if slightly down.

In the shopping centre segment, institutional investor appetite is set to remain high for well-located, strong assets such as Italy 2, of which 75% has been purchased by AXA IM. However, in line with new brand location approaches, city centre high- street locations are the most sought-after. Luxury segment revenue, which differs from the remainder of the sector, looks set to continue its strong performance in 2020.

Yield rate December 2019 2.75% - 3.75% 3.25% - 5.50% 3.85% - 5.25% 5.50% - 8.25% 3.90% - 6.00% 4.00% - 7.00% 4.75% - 7.75% 5.00% - 9.00%

Asset type

Location

Île-de-France

City centre no. 1

Regions

Île-de-France

City centre nos. 1a or 2

Regions

Île-de-France

Regional shopping centres

Regions

Île-de-France

Retail park

Regions

Source: CBRE Research, Q4 2019

1.4.3 The Group’s analysis of market trends

Against a backdrop of an economic slowdown with a Gross Domestic Product growth rate of 1.2% and an 11% growth in online sales (slightly down on previous years), 2019 saw continued changes to the physical retail sector. However, household purchasing power was up by 2.1% (a greater increase that the previous year), while the French National Council of Shopping Centres ( Conseil national des centres commerciaux – CNCC) index on shopping centre footfall for 2019 was up to 100.3%, following several years of decline. The persistent erosion in physical retailing in certain sectors of activity, notably in the mid-range clothing segment, and growth strategies underpinned by increased brand selectivity continued to weigh on declining trends in rental values (except in the most prestigious locations) and to extend time to market.

However, some sectors of activity resisted well and are even growing: organic food, catering, sport, health and well-being. Many retailers have successfully implemented omni-channel sales strategies through the use of digital tools to provide their customers a better service. According to the French Federation of E-commerce and Distance Sales ( Fédération du e-commerce et de la vente à distance – FEVAD), the market share of goods sales for e-commerce website operators without physical stores is 4.5%. These developments underline the need to establish a commercial positioning for each retail asset that is adapted to its catchment area and customer flow.

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT

17