GECINA - REFERENCE DOCUMENT 2017

02

COMMENTS ON THE FISCAL YEAR Appraisal of property holdings

Assets in operation in the office property portfolio on a like-for-like basis combined (Gecina and Eurosic)

Appraised valuation (In € million)

Valuation/sq.m (In euros)

Gross capitalization rate

Net capitalization rate

Paris City

6 424 4,946 3,522 1,424 1,478 3,634

12 659 17,313 13,242 50,448 6,662 7,978 2,805 2,183 7,297

4.04% 3.57% 4.11% 2.49% 5.58% 4.90% 6.97% 6.31% 4.70%

3.91% 3.47% 3.99% 2.41% 5.41% 4.75% 6.76% 6.12% 4.56%

Paris CBD & 5-6-7 ■

Paris CBD & 5-6-7 - Offices ■ Paris CBD & 5-6-7 - Retail ■

Paris Other ■

Western Crescent - La Défense

Paris Region Other Regions/Foreign

971 806

TOTAL

11,835

The office assets located in the CBD and 5-6-7 benefited +6.1% over the year (+2.2% for the combined scope in the from the market appetite for that asset class and earned second half of the year). The net capitalization rate of the +10.3% over the year on a like-for-like basis (+3.1% in the Western Crescent offices was 4.64% (4.75% with Eurosic).

second half of the year over the combined scope of Gecina and Eurosic). The result was a net capitalization rate of 3.49% (3.47% with Eurosic) and 2.41% for retail assets. In the Western outskirts of Paris, the office portfolio increased

On a like-for-like basis, 53.5% of the Group’s offices property portfolio is located in Paris and 45.7% in the Paris Region (54.3% and 38.9% on combined scop basis).

2.3.2

BUILDINGS IN THE RESIDENTIAL PROPERTY PORTFOLIO

Valuation of properties in the residential properties

12/31/2016

Change

12/31/2017

In € million

Valuation of residential properties

3,160 2,628

2,644 2,074

+19.5% +26.8%

Valuation of residential properties on a like-for-like basis

On a current basis, the residential property holdings increased by +19.5% to €3,160 million due to the decline in discounts observed on the market and the yield rates linked to the newly found appetite of investors for this asset class. Benefiting from this favorable market economy, residential portfolio earned +26.8% on a like-for-like basis, reaching €2,628 million for the year (+3.1% in the second half of the year for the combined scope). On a like-for-like basis, the traditional residential portfolio grew over the year by 29.8% (€2,405 million, an increase of €552 million). Student residences valuation increased by 1.6% for the full year.

The appreciation of residential property assets can be explained by: a positive rate effect (+13.4%); ■ a positive business plan effect (+13.4%). ■ Taking account of the capital expenditure on traditional residential buildings (€15 million), the annual change in value was up €536 million (+28.9%). On a like-for-like basis, for traditional residential assets, the block/unit overall discount was at 13% as at December 31, 2017. Unit values were up by 17.7% to €2,751 million for the full year. The block value per square meter of these property assets stood at €6,209/sq.m as at December 31, 2017 with the net capitalization rate down by 91 bp at 3.35%.

44 GECINA - REFERENCE DOCUMENT 2017

www.gecina.fr