GECINA - REFERENCE DOCUMENT 2017

03

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Real estate margin

3.5.6.3

12/31/2017

In €’000

Change in inventory of goods

(3,486)

Sale of goods

4,005

REAL ESTATE MARGIN

519

Direct operating expenses

3.5.6.4 These are composed of:

The cost of the rental risk, which is included in property expenses is -€0.4 million", for the period ended December 31, 2017, whereas it was not significant in 2016. Recharges to tenants consist of rental income from recharging for costs payable by them. For the year 2017, it includes the honoraria for rental and technical management eventually invoiced, i.e. €4.8 million (compared with €4.0 million at December 31, 2016).

rental charges that are payable by the owner, charges ■ related to construction work, cost of disputes if any and property management fees; the portion of rechargeable rental charges by nature, ■ which remain the Group’s expense, mainly on vacant premises; the rental risk consisting of net impairments plus the ■ amount of losses and profits on unrecoverable debts for the period.

12/31/2016

12/31/2017

In €’000

Other external expenses

(86,758) (66,899) (4,798)

(81,479) (50,323) (4,921)

Taxes and duties

Salaries and fringe benefits

Other charges

343

8

PROPERTY EXPENSES

(158,112)

(136,715)

Rental expenses to be regularized

4,036

3,154

Vacant premises’ expenses Miscellaneous recovery

(4,993) 54,463 62,577 116,083 (42,029)

(5,479) 31,774 66,531 95,980

Provisions on costs

EXPENSES

NET DIRECT OPERATING EXPENSES

(40,735)

Services and other income (net)

3.5.6.5 These largely comprise the following items:

12/31/2016

12/31/2017

In €’000

Income from service activities Reversals of investment subsidies

723 256

914 215 134

Other income

2,592 3,571

TOTAL GROSS

1,263

Expenses

0

0

TOTAL NET

3,571

1,263

Overheads 3.5.6.6 Overheads break down as follows:

12/31/2016

12/31/2017

In €’000

Salaries and fringe benefits

(53,697)

(49,476)

Effect of Internal costs

4,737

5,353

Share-based payments (IFRS 2)

(2,635) (20,245) (71,840)

(1,626) (18,823) (64,571)

Net management costs

TOTAL

92 GECINA - REFERENCE DOCUMENT 2017

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