MRM_REGISTRATION_DOCUMENT_2017

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General information on the issuer and its share capital Management report for the year ended 31 December 2017

1.3.6 Debt On 30 October 2017, the Group took out a new loan for €15.2 million from Berlin Hyp. It expires at the end of October 2022 (repayment on maturity). Backed by a retail property asset, this new loan replaces a credit line of €14.8 million which expired on 8 December 2017 and which was repaid early. Following this refinancing, over 90% of the Group’s debt matures in four years or more, with the exception of the loan granted by SCOR SE, M.R.M.’s majority shareholder, backed by the Nova office property classified as held for sale. At year-end 2017, the €22.0 million loan granted by SCOR SE, which was due to expire on 15 January 2018, was extended until 15 January 2019. As of 31 December 2017, Group financing consisted of mortgage bank debt of €73.4 million and the €21.9 million loan granted by SCOR SE. The Group’s total outstanding borrowings thus amounted to €95.3 million compared with €96.0 million at the end of 2016. The €0.7 million decrease reflects contractual repayments and redemptions undertaken during the year which were partly offset by drawdowns on the available credit line facility and the new loan taken out with Berlin Hyp. The average cost of debt stood at 1.83% in 2017.

3 BANK DEBT SCHEDULE AS OF 31 DECEMBER 2017 (IN MILLIONS OF EUROS)

46.0

24.1

21.0

2.2

1.8

2018

2019

2020

2021

2022

The Group’s (consolidated LTV (loan to value) ratio) stood at 47.7% as of 31 December 2017 compared with 48.5% as of 31 December 2016. In view of the cash position, the total net debt ratio eased from 35.9% as of 31 December 2016 to 41.0% as of 31 December 2017. As of 31 December 2017, the Group complied with all commitments in respect of LTV, ICR and DSCR covenants agreed with its financial partners. 1.4 Foreseeable changes and outlook M.R.M continued its retail-property refocusing strategy in 2017. The Company has only two remaining office properties to sell off which are in the process of being sold. M.R.M. aims to complete its withdrawal from the office sector in 2018. With a solid financial structure, M.R.M. has made progress in its substantial investment programme designed to enhance the value of its retail properties. It represents a total projected investment of €35 million, of which €13.6 million was committed as of 31 December 2017. After the completion in 2016 of works to reconfigure and relet 5,000 sqm in the Sud Canal shopping centre in Saint- Quentin-en-Yvelines, and to renovate and reposition the Les Halles du Beffroi shopping centre in Amiens, in 2017 full ownership of the Aria Parc retail park in Allonnes was acquired, works to reconfigure and extend the Carré Vélizy complex in Vélizy-Villacoublay were completed, and the first stage of the value-enhancement programme for the Passage de la Réunion shopping centre in Mulhouse was completed.

Gross borrowing cost

€1,899k

Restatement for non-recurring items

€-120k

Gross restated borrowing costs

€1,779k

Average debt outstanding

€97,275k

AVERAGE COST OF DEBT

1.83%

As of 31 December 2017, 84% of the Company’s bank loans were contracted at fixed rates. Variable-rate bank loans were partially hedged by means of an interest rate cap. M.R.M.’s borrowings had the following maturity as of 31 December 2017: • Maturing in less than one year: €24.1 million; • Maturing in more than one year: €71.1 million. Debt maturing within a year consists of the loan granted by SCOR SE, as whilst the maturity date was extended up to 15 January 2019, it is backed by an office property, Nova, classified as held for sale, and the contractual repayments are to be made over the next 12 months.

M.R.M. 2017 REGISTRATION DOCUMENT

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