MRM - 2020 Universal Registration Document

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Information on M.R.M.’s activities

Presentation of the Company

Significant transactions for the retail centres 2020 has been marked by a wide-ranging transaction, increasing the asset share on the whole of invested volumes, at 30% (against an average of 24% between 2016 and 2019). In June, URW have assigned a portfolio of 5 retail centres (of which Confluence in Lyon, Toison d’Or in Dijon or even Rennes Alma) for an estimated amount of more than €1 billion, repurchased by a joint venture composed of URW, La Française and Crédit Agricole Assurances (CAA). Although in an economic (COVID-19 impact) and structural (weakening of the mass-market model, powerful upswing of the omni-channel, accessibility of several sites) diffculty, this class of assets maintains a potential for the most legible or on the other end of the spectrum assets, the important means are deployed as to rework them to adapt to the changing needs of consumers. Uncertainty hovers Thanks to the achievement of the majority of triggered deals, the volume of the 2020 transactions is satisfying despite the exceptional events crossed and superior to the 10 year average. The impacts of the sanitary crisis begin to be felt, investors stand frm on their wait-and-see position expecting signals that will restore their confdence of the market. The acceleration of the consumption habits disruption combined with the environmental turn has driven the investors to lead their investments towards formats adapted to local dynamics. Most of the prime high-street areas, and notably in Paris, for which the activity successively suffered from the “Yellow Vests” movements, strikes and restriction measures due to the sanitary crisis, deprived of international tourism flows, have seen their rental values downwards. Nevertheless, these axes remain powerful areas for high-street retail and maintain resilience factors, once the crisis has passed. Retail in France Source: excerpt from the BNP Paribas Real Estate study “At a glance 2020 Q4 – A market hit by the crisis”. 2020 ended up being a lacklustre year for the retail market in France. Several new measures to slow the spread of COVID-19 were introduced after a relative lull during the summer period. A frst curfew came into force last 17 October, followed by another lockdown on 30 October. The same rules applied as in spring, with all stores deemed to be “nonessential” forced to close. Despite this latest shutdown, city-centre stores have

adapted, with the customer experience strengthened via the online sales services offered by the various retailers (click and collect, drive). For shopping centres, sales of consumer products are still strong, despite slower footfall that caught up signifcantly in December, largely thanks to the end-of-year festivities. A relative adaptation of consumers’ purchasing habits has meant that several sectors have not experienced the historical fall seen last spring (-12%). Consumption bounced back by +17.9% in the third quarter. According to the latest estimates by INSEE, 2020 could consequently see a signifcant improvement, with a fall limited to - 5.9% compared to -7.0% estimated the previous quarter. Household confdence meanwhile remains in the doldrums. After a “post- lockdown” improvement, a further decline was observed over the summer. Fears about the impact of the crisis on jobs are prompting consumers to save against a period of economic uncertainty. 2021 remains a major strategic challenge for all retail players, both in terms of winning back customers and building their loyalty Occupier market The health and economic contexts are unprecedented for the retail real estate sector. In Q4 2020, several trends for rents on the prime thoroughfares appeared to be taking shape for 2021. At the national level, the fall could be around -20% (according to Argus de l’Enseigne). Tourist areas in the capital are still affected and should see rents adjusted on a case-by- case basis. The loss of sales in districts such as the Avenue des Champs-Elysées or the Rue Saint Honoré should bring average rents down by an estimated -10 to -15%. The Rue de Rivoli was already weakened and has been heavily impacted, such that rents may fall up to -30%. Conversely, the more residential main roads of Paris should see their current rents better withstand the crisis. In the regions, the health measures in force have exacerbated fears of a substantial fall in rents. The main thoroughfares have been severely affected by the lack of tourists and should see rents fall by between -15% and -20%. Secondary streets could meanwhile see slides of up to - 30%. As not all business sectors have been hit by the crisis in the same way, we can expect the declines to vary from one street to another, depending on which activity predominates (catering, ready-to-wear, food, etc.). In this context, we can safely assume that streets with predominantly catering (-20% contraction in Q3 2020) may have occupancy cost ratios that are diffcult to maintain and, eventually, falls

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M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT