MRM - 2019 Universal Registration Document

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General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2019

Note 7 Segment information

Accounting principles

IFRS 8 requires disclosure of information about each of an entity’s operating segments.

The operating segments determined on the basis of internal reporting correspond to an activity: • that can generate income and that incurs expenses; • whose operating income is regularly examined by the entity’s chief operating decision-maker in order to allocate resources to the various segments and assess their performance; • for which individual financial information is available. In view of these requirements, the Group has divided its property portfolio into operating segments according to the real estate market in which they are located. Namely the retail and office rental segments. These operating segments are best suited to assess the nature and financial impact of the Company’s activities and the economic climate in which it trades. The Group has moreover assigned its head office as a non-operating segment to handle transactions falling outside the remit of an operating segment.

7.1 Income statement by segment

The main line items of the standalone income statement are as follows:

Consolidated income statement as of 12/31/2019

Office

Retail

Head office

Total

(in thousands of euros)

Gross rental income

-

9,123

- - -

9,123

-17 -17 -42

-1,760

-1,777

External property expenses not recovered

NET RENTAL INCOME

7,363

7,346

Operating expenses

-657

-1,754

-2,452

Reversals of provisions and impairment

- -

306

23

329

Provisions and impairment Other operating income Other operating expenses

-2,067

-34

-2,101

105

1,580

67

1,751

-169

-226

-605

-999

OPERATING INCOME BEFORE DISPOSALS AND CHANGE IN FAIR VALUE OF PROPERTIES

123

6,299

-2,303

3,873

Result on disposals of properties Change in fair value of properties

-84

-

- -

-84

-

814

814

OPERATING INCOME Gross borrowing cost

-207

7,113 -1,231

-2,303

4,603 -1,232

-

-1

92

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT