MRM // 2022 Universal Registration Document

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Information on M.R.M.’s activities

Presentation of the Company

Retail properties Retail property is a highly specific market segment subject to a particular economic and regulatory sector. The development of this market is the subject of a specific discussion in Section 1.4.2 “The commercial real estate market in 2022”. The development of retail and distribution is intimately linked to the development of cities and their outskirts. Over a number of years, the outskirts of cities have developed considerably, often at the expense of city centres that are less easily accessed and have more town planning constraints. On the other hand, a change has also taken place within retailers: historically, retail and distribution were mainly carried out by independent retailers, located in the city centres, for local business. The development of the outskirts was carried out by national and international centralised store chains. Today, these two branch and franchise models are not necessarily opposed, and can be found in both city centres and peripheries, with both often being complementary. At the same time, e-commerce is developing strongly and represents an essential distribution channel in all consumer sectors (ready-to-wear, travel, electronic and cultural goods, etc.). Nevertheless, the food trade continues to play an important role in French retailing given the behavioural patterns of French consumers in this sector, although even this sector is in a state of upheaval, with the return of neighbourhood stores at the expense of hypermarkets that are too large and impersonal and less in phase with the French public’s ecological aspirations. These retailers, which now operate in most large cities in France, are beginning to penetrate deeper into the territory by opening outlets in smaller catchment areas, although continuing to scrutinise entry conditions, given the difficult economic environment. The balance of power between tenants and lessors is determined by the strength of the retail business, which belongs to the tenants and therefore strongly influences their attachment to the premises, and by the regulation of the available supply of premises, which is determined by the authorisation required prior to opening any mid-size or mass retail outlet, governed by urban planning laws. These changes are being followed closely by players in this market. As a consequence, investments made in retail property are subject to a lesser extent to the vacancy constraints known in other property sectors. Due to the volatility of the once-customary construction cost index (“ICC”), a new index was set up and made mandatory,

namely the retail rents index (“ILC”) incorporating certain retail activity indicators by volume to weight the ICC. The competitive environment in which the Company operates is dominated by a certain number of French and international listed real-estate companies specialising in retail property, such as Unibail-Rodamco-Westfield, Klépierre, Mercialys and Altarea, as well as many other operators such as the property arms of hypermarket groups, asset managers, small- and medium-sized specialised real-estate companies, investment funds and other dedicated vehicles. Policy of enhancing asset value and refocusing on retail properties At the outset, the Group had a mixed portfolio of office and retail property with potential for improving rental yields and as such enhancing value. In 2013, the Group announced its intention to refocus its business on retail properties and to gradually dispose of its office properties. As M.R.M. sold its very last office building in January 2019, this refocusing process has been completed. Between 2013 and 2019, the Group will have thus sold a total of nine office buildings, for a cumulative amount of €132.3 million excluding transfer taxes, 9.8% more than the properties’ appraisal values as of 30 June 2013 taking into account Capex invested over the period. The Group’s strategy notably involves enhancing the attractiveness of its assets and exploiting their potential for value-enhancement by refurbishing them and upgrading them to meet the best market standards, by bringing their rental revenues back into line with market rates and undertaking extensions where possible. In 2016, the Group embarked on a major investment plan intended to enhance the value of its retail assets currently in the portfolio, representing a total planned investment of €35.5 million. The last programme in this plan was the extension of the Valentin shopping centre in Besançon, which was completed in June 2021. In 2022, with a view to diversifying and developing its assets, M.R.M. changed size by acquiring two shopping centres from Altarea located in Flins-sur-Seine (Yvelines) and in Ollioules (Var), both adjacent to Carrefour hypermarkets, for a total amount of €90.4 million including transfer taxes. These two properties have a value-enhancement potential that will give M.R.M. an opportunity to deploy its know-how in asset management (refurbishment, partial redevelopment, dynamic rental management, change in the retailer mix).

M.R.M. 2022 UNIVERSAL REGISTRATION DOCUMENT

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