MRM - 2019 Universal Registration Document

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Information on M.R.M.’s activities

Presentation of the Company

In 2018, M.R.M. sold the Nova office property in La Garenne- Colombes for the sum of €38.0 million, excluding transfer taxes. 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.

In January 2019, M.R.M. announced the sale of Urban, an unoccupied 7,970 m² office property in Montreuil, for the sum of €6.35 million excluding transfer taxes. This transaction marks the completion of the process to refocus M.R.M.’s asset portfolio on retail properties. It brings the cumulative amount of office properties sold by M.R.M. within the framework of its office asset disposal programme to €132.3 million, 9.8% higher than the appraisal values at 30 June 2013 after taking CAPEX into account.

A property portfolio refocused on retail assets

12/31/2019

12/31/2018

Value excl. transfer taxes

€168.1 m

€164.7 m

+2.0% vs 12/31/2018

-17.5% vs 12/31/2017

+5.5% excl. effect of disposals

+1.5% excl. effect of disposals

94,397 m 2

Total area

84,897 m 2

Value breakdown

100% retail properties

97% retail / 3% office properties

The retail asset portfolio generated a annualised net rent (1) of €8.5 million as of 31 December 2019, up 4.0% on the year-earlier level of €8.2 million. During 2019, the investments in the properties portfolio stood at €8.0 million. These were primarily: • the refurbishment of Galerie du Palais in Tours, which will be renamed Le Passage du Palais; • works to subdivide one of the units at the Aria Parc retail park in Allonnes, to create 1,200 m² of space for a new anchor brand; • the redevelopment and extension of the Valentin shopping centre in Besançon, the largest project in M.R.M.’s investment plan. After the existing mall was refurbished in 2017, in the second quarter of 2018 the next phase of the project began to create 2,600 m² of rental space, requiring a partial redevelopment of the mall. The total surface area of the mall will be brought to 6,700 m 2 comprising 45 stores and two medium-sized retail units. The car park will also get a makeover with the addition of an outdoor parking area. As indicated in paragraph 1.4.6 “Recent events” of this Universal Registration Document, the health crisis linked to the COVID-19 epidemic has temporarily halted the work. M.R.M. will update the completion schedule once the situation is back to normal.

The Group’s retail properties are located in the Paris region and in large cities in the provinces. Diverse assets types are covered, including shopping centres and malls, high-street retail units, independent suburban retail premises and premises in retail parks. The vast majority of the 134 retail property tenants are national and international brands. Together, these retailers account for 79% of annualised gross rent. As of 31 December 2019, the portfolio surface area under development covered 84,897 m², with a value of €168.1 million excluding transfer taxes. 2,600 m² of additional space is under construction for the expansion of the Valentin shopping centre in Besançon: the building shells were initially due to be delivered in the second quarter of 2020, with the centre opening to the public in the third quarter of 2020. As indicated in paragraph 1.4.6 “Recent events” of this Universal Registration Document, the health crisis linked to the COVID-19 epidemic has temporarily halted the work. M.R.M. will update the completion schedule once the situation is back to normal. The physical and financial occupancy rates were up to 88% and 87% (respectively), both up four points on 31 December 2018. Like 2018, 2019 was marked by dynamic rental activity with 41 new leases or lease renewals signed representing annual rents of €2.1 million.

(1) Excluding taxes, rent-free periods and support measures for lessees.

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT

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