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

Net recurring operating expenses, amounting to €(3,852) thousand in 2017, were up 12.5% compared with 2016 and comprised operating expenses of €(2,758) thousand (vs €(3,211) thousand in 2016, a decrease of 14.1%), net reversals of provisions of €(337) thousand (vs €(791) thousand in 2016) and other net operating expenses of €1,428 thousand (vs other net operating income of €577 thousand in 2016). Current operating income before disposals and changes in fair value of properties amounted to €3,969 thousand compared with €6,070 thousand at end 2016. Net of losses on the disposal of assets of €(25) thousand and change in fair value of property assets (net of the reclassification of a stock of rent-free periods to be staggered of €278 thousand) of €6,444 thousand, operating income amounted to a loss of €2,500 thousand. In 2016 it amounted to a profit of €7,521 thousand. Financial profit (loss) improved by 12.5% compared with 2016 and amounted to a loss of €(2,128) thousand as of 31 December 2017 consisting of: • Net borrowing cost of €(1,899) thousand made up of interest and similar expenses; • Discounting of payables and receivables of €(229) thousand. In light of the above, net income after tax amounted to a loss of €4,628 thousand as of 31 December 2017 compared with a profit of €5,089 thousand as of 31 December 2016. 2.2.3 Consolidated balance sheet As of 31 December 2017, non-current assets stood at €158,523 thousand, compared with €152,803 thousand as of 31 December 2016, and consisted mostly of investment properties in the amount of €158,520 thousand. As of 31 December 2017, current assets stood at €61,367 thousand compared with €78,950 thousand as of 31 December 2016. They mainly consisted of: • Assets held for sale of €41,047 thousand (compared with €45,047 thousand at end 2016); • Trade receivables of €3,476 thousand; • Other receivables of €3,493 thousand (e.g. rental charge reminders, tax claims); and • Cash and cash equivalents of €13,352 thousand.

Texts not adopted by the European Union as of 31 December 2017 Subject to their final approval by the European Union, standards, amendments to standards and interpretations published by the IASB and presented below are applicable according to the IASB as follows: • IAS 40 – Investment Property applicable as of 1 January 2018; • Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture date of adoption postponed; • Amendments to IFRS 2 – Share-based Payment (classification and measurement of share-based payment transactions) applicable as of 1 January 2018; • Amendments to IFRS 9 – Prepayment Features with Negative Compensation applicable as of 1 January 2019; • Amendments to IAS 28 – Long-term Interests in Associates and Joint Ventures applicable as of 1 January 2019; • Annual Improvements to IFRS – 2014-2016 cycle and IAS 28 applicable as of 1 January 2018; • Annual Improvements to IFRS – 2015-2017 cycle applicable as of 1 January 2019. The Group chose not to adopt the early application of these new standards and amendments. The Group assessed the impacts of the first application of these new standards and amendments, especially IFRS 9 on the recognition and measurement of financial assets and liabilities, and IFRS 15 on revenue from contracts with customers, and does not expect them to have a significant impact on its results and financial position. 2.2.1 Changes in scope In 2017, there were no changes in M.R.M.’s scope of consolidation. 2.2.2 Consolidated income statement Consolidated gross rental revenues from properties totalled €11,194 thousand, reflecting rents and other rental income in the Group’s portfolio, a fall of 13.8% compared with 2016. Gross rental revenues actually rose by 3.2% compared with 2016 on a like-for-like basis. Unrecovered external property expenses were down 3.5% compared with 2016 and amounted to €(3,376) thousand, resulting in net rental revenues of €7,819 thousand.

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M.R.M. 2017 REGISTRATION DOCUMENT