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

Standards, amendments and interpretations not mandatory as of 1 January 2019

Unrecovered property expenses were down 38.0% compared with 2018 and amounted to €1,777,000, resulting in net rental income of €7,346,000, up 10.2% on a like-for-like basis. Net recurring operating expenses were up 15.7% to €3,557,000 in 2019 and comprised operating expenses of €2,452,000 (similar to 2018), net provisions of €1,773,000 (vs €230,000 in 2018) and other net operating income of €752,000 (vs other net operating expenses of €316,000 in 2018). Operating income before disposals and change in fair value of properties amounted to €3,873,000 compared with €3,663,000 at the end of 2018. Net of losses on asset disposals of €84,000 and increase in fair value of property assets of €814,000, the operating income amounted to €4,603,000. In 2018, the operating income was a loss of €8,549,000. Financial income improved by 23.0% compared with 2018 and amounted to a loss of €1,446,000 as of 31 December 2019 consisting of: • net borrowing cost of €1,232,000 made up of interest and similar expenses; • decrease in fair value of the cap of €12,000; and • discounting of payables and receivables of €202,000. In light of the above, net income after tax amounted to a profit of €3,157,000 as of 31 December 2019 compared with a loss of €10,428,000 at 31 December 2018. 2.2.3. Consolidated balance sheet As of 31 December 2019, non-current assets stood at €168,026,000, compared with €159,083,000 as of 31 December 2018, and consisted mostly of investment properties in the amount of €167,890,000 and right-of-use assets in the amount of €132,000. As of 31 December 2019, current assets stood at €19,935,000 compared with €25,514,000 as of 31 December 2018. They mainly consisted of: • assets held for sale of €180,000 (compared with €5,660,000 at the end of 2018); • trade receivables of €3,670,000; • other receivables of €3,792,000 (e.g. rental charge invoices, tax claims); and • cash and cash equivalents of €12,266,000.

Texts adopted by the European Union as of 31 December 2019

The following standards and amendments adopted by the European Union as of 31 December 2019 but with a subsequent effective date of application were not adopted in advance: • amendments to IAS 1 and IAS 8 - Definition of Material, effective from 1 January 2020; • amendments to the conceptual framework of the IFRS standards, applicable as of 1 January 2020. Texts not adopted by the European Union as of 31 December 2019 Subject to their final approval by the European Union, standards, amendments to standards and interpretations published by IASB and presented below are applicable according to IASB as follows: • amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, effective date deferred; • amendments to IFRS 3 - Definition of a Business, effective from 1 January 2020; • amendments to IAS 1 and IAS 8 - Definition of Material, effective from 1 January 2020; • amendments to IFRS 9, IAS 39 and IFRS 7 - linked to the Interest Rate Benchmark Reform, effective from 1 January 2020; • amendment to the conceptual framework of the IFRS standards, applicable as of 1 January 2020. The Group did not opt for the early adoption of these amendments, which will have no material impact on its results and financial position. 2.2.1. Changes in scope In 2019, Noratlas, a non-trading property company ( société civile immobilière ), underwent dissolution without liquidation by means of the universal transfer of its assets to M.R.M. The merger was in line with the Group’s simplification of its organisation. 2.2.2. Consolidated income statement Consolidated gross rental income from properties totalled €9,123,000, reflecting rents and other rental income generated by the Group’s portfolio, a decrease of 4.3% compared with 2018. Gross rental income increased 4.3% compared with 2018 on a like-for-like basis.

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT

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