MRM_REGISTRATION_DOCUMENT_2017

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General information on the issuer and its share capital

Consolidated financial statements for the year ended 31 December 2017

4.7 Other receivables

Accounting principles

Receivables and payables with deferred payments IAS 39 requires the discounting of any sums whose payment or receipt is deferred in a manner that deviates from standard practice. The amounts of these receivables or payables are discounted and a financial profit or loss recognised in the statement of comprehensive income over the deferred payment period. The discount rate applied is the one used to discount cash flows and capitalise rents for the purposes of property valuation by the independent appraiser. The only deferred payments recognised relate to guarantee deposits received from tenants. No receivables with deferred payments were recognized in 2017. As of 31 December 2017, the discount rate was 6.64% for office properties and 7.40% for retail properties.

Other receivables break down as follows:

31/12/2017

31/12/2017

Gross

Impairment

Net

Net

(in thousands of euros)

Tax receivables (1)

2,283

- - - - - -

2,283

1,845 1,230 2,656

643

643

Other receivables (2)

26

26

Funds deposited at third parties (3)

Letting fees (4)

408 133

408 133

428 141

Prepaid expenses

TOTAL OTHER RECEIVABLES

3,493

3,493

6,300

(1) This amount basically corresponds to a VAT credit to be carried forward. (2) This amount primarily relates to service charges payable to owners. (3 This relates to funds deposited at notaries. (4) This relates to letting fees spread over the corresponding lease term.

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M.R.M. 2017 REGISTRATION DOCUMENT