MRM // 2022 Universal Registration Document

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Risk factors

Main risk factors

10 HEALTH CRISIS LINKED TO THE COVID-19 PANDEMIC

Description of the risk and its impacts

Risk mitigation measures

A resilient brand mix M.R.M.’s portfolio includes a significant proportion of retail space dedicated to food products (supermarkets, food shops), and other products and services that were considered essential and authorised to remain open during the crisis. In addition, M.R.M. benefits from a relatively favourable brand mix, with a significant share of its revenue generated by resilient stores dedicated to food, household goods and discounting as well as services (see details by sector in Section 1.5.4 of this Universal Registration Document). Liquidity M.R.M. has enough cash to cushion the blow of a substantial decline in rents and charges for several months. The massive economic stimulus packages announced by the French government and the European Central Bank also helped to limit the impact of the crisis. In 2022, the Company’s activity returned to normal, as shown by its key performance indicators, but also by the rent collection rate (> 95%) and retailer revenue recovering to levels higher than before the crisis. In 2022, the Company also finalised all discussions with its tenants concerning support measures by signing 14 agreements representing €0.3 million in debt waivers, thus crystallising the support previously provisioned. Thus, in the financial statements as of 31 December 2022, there is no longer any provision in this respect. In 2022, the portfolio values held up well, and despite the gloomy economic context, the acquisition of the Flins and Ollioules shopping centres was completed. Continuity plans M.R.M. and its main service providers have activated business continuity plans and are working well remotely. Digital solutions and health protocols have been deployed at the Company’s head office, and work procedures have been adapted to enable employees to continue their work.

Since 2020, M.R.M. had to deal with the difficulties that affected all retail players faced with the pandemic: • restrictions on retail activity; • difficulties in recovering rent invoiced; • significant uncertainty that could impact the valuation of the portfolio; and • implementation of teleworking. Restriction of retail activity In response to the pandemic, in 2020 and 2021 France experienced three periods of lockdown for its population and strong restrictions on commercial activity throughout France, with the administrative closure of so-called “non-essential” stores, and strict limits on consumer travel to retail locations. Difficulty in collecting rents Depending on the period, the commercial activity of M.R.M.’s tenants was either stopped or severely disrupted, affecting their ability to pay their rent and charges. For M.R.M., this situation weighed on the generation of rental income, the reimbursement of charges and taxes borne by tenants, and on the Group’s cash flow. Faced with the economic impact of health measures for retailers, M.R.M. has implemented support measures for its tenants who were administratively forced to close their stores or whose activity has been severely affected during periods of lockdown. Rent waivers and negotiated compensation were discussed with tenants on a case-by-case basis. This resulted in rent receivables write-off. Significant uncertainty that could impact the valuation of the portfolio In 2020, in a context of significant uncertainty, the appraisers used assumptions of higher capitalisation rates as well as longer marketing periods for vacant space and the duration of the rent-free periods to be granted to tenants. The value of the portfolio may therefore be directly affected negatively. Implementation of teleworking From the beginning of the health crisis, M.R.M. had to organise itself to implement the teleworking measures recommended by the French government, thus giving priority to the safety and health of its employees.

M.R.M. 2022 UNIVERSAL REGISTRATION DOCUMENT

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