MRM // 2021 Universal Registration Document

3

General information on the issuer and its share capital

Consolidated nancial statements for the nancial year ended 31 December 2021

4.7 Trade receivables and related accounts

Accounting principles

Receivables are stated at fair value on initial recognition, and subsequently at amortised cost less any impairment losses.

Impairment of trade receivables is recognised when there are objective indications that the Group will not be able to recover the full amounts due as per the initial terms of the transaction. Serious financial difficulties faced by the debtor, the likelihood of bankruptcy or financial restructuring of the debtor and payment default are indicators of the impairment of a receivable. In general, the Group writes down tenant receivables older than six months by applying an impairment rate of up to 100% (depending on the risk estimated by the Group) of the pre-tax amount of the receivable minus the guarantee deposit which is kept when applicable. The Group uses the expected loss impairment model introduced in IFRS 9 by applying an average depreciation rate based on the history of healthy receivables and doubtful debts that have become irrecoverable over the last five financial years to the invoices to be established. An additional impairment loss is recognised when the calculation involving the historical average depreciation rate is greater than the impairment recognised in accordance with the accounting principle described above, for each asset class previously mentioned.

The amount of impairment is recognised in income under “Provisions and impairment”.

Trade receivables break down as follows:

31/12/2021

31/12/2020

(in thousands of euros)

Total gross trade receivables Impairment of trade receivables

7,164

5,972

-2,916 4,248

-2,187 3,785

TOTAL NET TRADE RECEIVABLES

Invoices pending

-61

-160

Rent-free periods and rent reductions spread over the term of the lease

-1,922 2,264

-1,774 1,851

TOTAL NET TRADE RECEIVABLES DUE

As of 31 December 2021, the “Impairment on trade receivables” item included €0.7 million of provisions reflecting the rent waivers that M.R.M. considers granting for the second lockdown period in 2020 and the lockdown period observed in 2021. See Section 2.2. “Accounting treatment of support measures granted to tenants in the context of the health crisis”.

The aged balance of trade receivables is as follows:

Overdue < 90 days

Overdue < 180 days

Overdue > 180 days

Total

(in thousands of euros)

TOTAL NET TRADE RECEIVABLES DUE

927

126

1,212

2,264

M.R.M. 2021 UNIVERSAL REGISTRATION DOCUMENT

89