MRM // 2021 Universal Registration Document

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Risk factors

Main risk factors

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DEPENDENCE ON MAIN TENANTS/COUNTERPARTY RISK

Description of the risk and its impacts

Risk mitigation measures

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The top ten tenants operate in different and dynamic business sectors such as food, fitness and household goods, and include both national and international brands. Exposure to specifc sectors and tenant concentration are monitored on a half yearly basis by M.R.M. The Company also endeavours to manage tenant rotation and the reletting of premises proactively. The main tenants are bound by firm leases that can run for three to twelve years of which the main expiry dates are provided in Section 1.4.4 of this Universal Registration Document. The clauses in such leases may provide for termination penalties. M.R.M. aims to reduce as far as possible the risks of lower rental recovery rates due to any financial difficulties of its tenants by (i) setting rental rates in line with market rates, (ii) ensuring that running expenses for its sites are kept at a reasonable level, (iii) reviewing arrears on a quarterly basis and setting up recovery measures with the property managers, and (iv) exercising its duty of care towards tenants who show signs of being in difficulty, and supporting them where necessary.

6 The counterparty risk refers to the credit standing of tenants and M.R.M.’s ability to recover invoiced rents, expenses and works, which has an impact on the Company’s operational performance as well as its cash position. Indeed, M.R.M.’s entire revenue is generated by renting its property assets to third parties. It results from this that any default on rent payments can adversely affect the Company. This risk may be increased by the exposure of M.R.M.’s rents to a specific business sector or tenant. Indeed, certain tenants account for a significant proportion of the Company’s annual invoiced rents. The contractual termination of one or several leases could have an impact on the level of rents received by the Company, and on its profitability. As of 1 January 2022, the largest lease in the asset portfolio represented 4.9% of the Group’s gross annualised rents. The top fve leases represented 20.1%. Lastly, the top ten leases represented 27.9%, compared with 2 .7% a year earlier. See the table presenting the expiry dates of the main leases on page 23 of this Universal Registration Document. 7 8 9

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2.2.3 Operational risks

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POTENTIAL ISSUES DUE TO HAVING A SMALL TEAM

Description of the risk and its impacts

Risk mitigation measures

6 M.R.M. is a small organisation. To date, it has a workforce of only six people (one executive corporate offcer and fve employees). The separation of duties is used by companies as an effective method of preventing internal fraud, so that one person is not performing duties that are mutually incompatible. The fact that M.R.M. has a small team could restrict options for separating duties, and therefore increase the risk of internal fraud. In addition, the fact that M.R.M. has a small team could mean that if a staff member leaves or is unavailable, the Company may experience malfunctions and be unable to apply decisions or effectively run its business. 7 8

M.R.M. has implemented internal control procedures to separate “sensitive” and incompatible duties. For example, the person who places orders with suppliers does not handle the related payments, and all payments require approval by two different people. Some of the Company’s business tasks, such as property management and accounting, are outsourced to reputable and competent service providers. Outsourcing to service providers with sufficient numbers of qualified staff provides M.R.M. with flexibility. Finally, M.R.M. ensures that it shares information internally, which is made easier by the size of its team.

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M.R.M. 2021 UNIVERSAL REGISTRATION DOCUMENT

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