MRM - 2019 Universal Registration Document

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Risk factors

Main risk factors

2.2.5 Environmental risks

10 HEALTH CRISIS LINKED TO THE COVID-19 EPIDEMIC

Description of the risk and its impacts

Risk mitigation measures

In accordance with various regulations, including the Ministerial Orders of 14 & 15 March 2020 on halting the spread of the COVID-19 virus, and with lockdown measures introduced on 17 March 2020, only shops providing essential goods or services remain open to the public within M.R.M.’s properties, and the movements of consumers to shops are very strictly curtailed. M.R.M.’s tenants have thus had to close or endure severe disruptions to their businesses. As a result their capacity to pay their rents and charges will likely be significantly impacted for the duration of the crisis and probably afterwards during the recovery period as well. This situation threatens M.R.M.’s rental revenues and the reimbursement of charges and taxes paid by its tenants. M.R.M. has suspended the payment of rents and charges for April 2020 for tenants who have had to close their shops and may extend this measure designed to help its tenants depending on the duration of the crisis. Due to lockdown measures, work physical meetings between M.R.M. staff and its service providers as well as site inspections have been suspended. Last, the extension works of the Valentin shopping centre have been suspended, which will lead to delays in the hand-over of premises to tenants and the opening of new shops to the public.

M.R.M.’s portfolio includes a significant proportion of retail space dedicated to food products (supermarkets, food shops), and other products and services who are authorised to remain open during the crisis. M.R.M. has implemented measures to reduce its property expenses during this period. M.R.M. and its main service providers have activated business continuity plans and are working well remotely. M.R.M. has enough cash to cushion the blow of a substantial decline in rents and charges for several months. The massive economic stimulus packages announced by the French government and the European Central Bank should limit the impact of the crisis.

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CLIMATE CHANGE Description of the risk and its impacts

Risk mitigation measures

Over recent years, M.R.M. has prioritised the integration of environmental, social and governance (ESG) criteria into its business activities, both at a corporate level and at the level of its property asset portfolio. An overview of these topics can be found in Sections 4.1 and 4.2 of the management report, which appears in Section 3.6 of this Universal Registration Document. From 2020, M.R.M. plans to move towards formalising its strategic commitments to corporate social responsibility (CSR) and introducing a consistent operations plan, in line with the Company’s ambitions to reduce its carbon footprint. The structural aspects of this strategy can be found in Section 4.3 of the management report, which appears in Section 3.6 of this Universal Registration Document. Furthermore, M.R.M. carries out energy audits on its assets and implements procedures to reduce its energy consumption and improve environmental efficiency, and incorporates major environmental risks into its investment and/or acquisition decisions. Finally M.R.M. is also insured against extreme weather events.

We have observed many climatic variations due to climate change, including increased temperatures and an increase in the number of extreme weather events, including floods, storms, heatwaves and droughts. M.R.M.’s property assets could potentially be exposed to damage caused by the impacts of climate change, such as: • disruption to shopping centre activities, lower footfall in or temporary closure of shopping centres during heatwaves, storms, floods, etc.; • damage to buildings and higher construction or operating costs; • changes in consumer habits.

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M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT