MRM - 2019 Universal Registration Document

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General information on the issuer and its share capital Management report for the financial year ended 31 December 2019

1.3.5 Debt As of 31 December 2019, Group financing consisted of mortgage bank debt of €77.1 million, compared with €74.1 million at the end of 2018. This €3 million increase stems from: • draw-downs in the amount of €5.4 million on the available credit line facility intended for the partial financing of investments on retail property assets; • partially offset by contractual repayments throughout the year, totalling €2.5 million. Factoring in drawdowns on the available credit line facility for the partial financing of investments on existing retail property assets, the amount of available credit as of 31 December 2019 totalled €0.9 million. The average cost of debt stood at 1.58% in 2019, compared with 1.68% in 2018:

3 BANK DEBT SCHEDULE

AS OF 31 DECEMBER 2019

€0.9m

2.59 €

133.2 M€

€21.2m

€53.5m

€2.4m

1 year

2 years

3 years

The Group’s consolidated LTV ratio stood at 45.9% as of 31 December 2019 compared with 45.0% as of 31 December 2018. In view of the cash position, the total net debt ratio changed from 36.8% as of 31 December 2018 to 38.6% as of 31 December 2019. As of 31 December 2019, the Group complied with all commitments in respect of the LTV, ICR and DSCR covenants agreed with its financial partners. Major subsequent events Following Conforama’s decision to wind up the Maison Dépôt business due to the group’s financial difficulties, the lease covering an area of 3,300 m² in the Aria Parc retail park in Allonnes was subject to an early amicable cancellation in January 2020. M.R.M. received a cancellation penalty to redress the harm caused. Foreseeable changes and outlook With the last office building sold in January 2019, M.R.M.’s refocusing on retail property is now complete. In 2020 M.R.M. expects to conclude the major investment plan begun in 2016 to enhance the value of its retail properties, budgeted at €35.5 million in total and covering seven assets. Of the seven programmes included in the plan, five were completed in previous financial years. As for the other two, the refurbishment of Galerie du Palais in Tours, renamed Passage du Palais, was completed in the first half of 2019, whilst the partial redevelopment and extension of the Valentin shopping centre, the largest project in the investment plan, is due to be completed at the end of the first half of 2020 (1) . 1.4 1.5

Average cost of debt (in millions of euros)

2019 2018

Gross borrowing cost

1.2

1.5

Restatement for non-recurring items Gross restated borrowing costs

-0.1

-0.0

1.2

1.4

Average debt outstanding

75.6 82.4

AVERAGE COST OF DEBT

1.58% 1.68%

As of 31 December 2019, 79.5% of the Company’s bank loans were contracted at fixed rates. The variable-rate bank loans were partially hedged by means of an interest rate cap. M.R.M.’s borrowings had the following maturity as of 31 December 2019: • maturing in one year or less: €2.4 million; • maturing in more than one year: €74.7 million. The debt maturing within a year comprises contractual repayments to be made over the next twelve months.

(1) 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.

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M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT