Aéroport de Paris - 2018 Registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20

6.3.2 Fair value of investment property The fair value of investment properties amounts to €2,624 million as at 31 December 2018, compared to €2,433 million as at 31 December 2017, representing a growth of almost 8%. The rate of coverage of external expertise for the buildings valuation and the lands leased to third parties amounts to almost 100% of their value. These appraisals were managed by a group of independent property experts composed of the following firms: ◆ CBRE Valuation; ◆ Cushman & Wakefield Valuation & Advisory; ◆ Crédit Foncier Expertises. Real estate experts use for their valuation (i) confidential data communicated by the Group (such as lease reports) and (ii) appropriate hypotheses mainly related to the actualization or capitalization rates, market leasing values and specific advantages for lessees. Some other lands leased to third parties had not yet been assessed; these are mainly located at the general aviation aerodromes. The fair value of IAS 40 buildings ( i.e. not used for Aéroports de Paris’ own requirements), including their right-of-way, amounts to €1,147 million in increasing of €95 million compared to 2017. This increase is mainly due to new buildings deliveries such as a business park on the Paris- Orly platform, an office building on the Roissy-Pole district and ongoing developments, particularly in the hotel and freight sector, whose the delivery date approaches. In addition, areas with more liquidity (standard products with high occupation rates and long committed terms) increases due to the pursue of the compression rates. The year was marked by a strong dynamism of e-retail and by a hotel activity which is doing well, which is reflected on the rates level inducing a mechanical growth of the fair value of warehouse/ logistics assets, freight and hotels (impact + €19 million). However the

tertiary rental market tends on the Paris-Charles-de-Gaulle platform combined with a cyclical vacancy of one of our main customers. The fair value of leased lands amounts to €1,171 million, representing a decrease of 1.4%. This decrease is mainly due to a presentation change operated in 2018 with the maintenance of lands holdings of projects in construction not yet delivered in the land reserves as well as the freehold valuation of the business park delivered at the beginning of the year 2018 on the Paris-Orly platform. On a comparable basis, land is up almost 1% (impact +€8 million). A mission to critically review of the methodology for valuing land reserves estimated internally was entrusted in 2018 to one of the independent expert firms. The method used has been validated with the recommendations on the valuation criteria to better take into account benchmarks. These recommendations have been incorporated into the fair value estimate of the land reserves. The land reserves value increases from €162 million to €306 million, as a result of an adjustment to the valuation method mentioned above (impact + €81 million) and retention in land reserves for projects in realization and in negotiation until the delivery asset (impact + €60 million). Unrestricted and immediately exploitable reserves account to almost 66% of available non-project areas in progress and are valued for €194 million. These reserves allow to adapt to all types of needs (tertiary, hotels, shops, housing, industrial activity, freight, logistics, maintenance, aeronautical support). They are located at the heart of the platforms and in the periphery, well served by the road and motorway network, mainly consisting of land currently unused and easily developed, but also areas of activity undergoing restructuring, suitable for densification. . In addition, their public transport service should be substantially improved with the Grand Paris metro (line 14 and 18 at Orly, line 17 at LBG and CDG), and CDG express. The short-termmutable zones represent about 60 hectares and currently represent a value of €37 million with significant growth potential in the short and medium term.

External valuations made appear the main immediate returns on investments properties presented below:

Rate of immediate return

As at 31 Dec., 2018

As at 31 Dec., 2017

(in millions of euros)

Buildings Offices Paris-Charles de Gaulle Cargo Paris-Charles de Gaulle Hangars Paris-Charles de Gaulle

382 329

404 272

6.5% -9.0% 8.0% -10.0% 9.0% -13.0% 4.0% -6.5% 10.0% -20.0% 7.0% -12.0% 7.0% -13.0% 6.0% -7.5% 6.0% -8.0% 8.0% -10.0% 4.0% -6.5% 13.0% -16.0% 6.0% -9.0% 5.0% -8.0%

91

90

Hotels/shops Paris-Orly and Charles de Gaulle

48

6

Hangars/freight Paris-Orly

140

129

Activity Paris-Orly and Charles de Gaulle

28

27

Paris-Le Bourget

129

124

TOTAL OF EXTERNAL RENTED BUILDINGS

1,147

1,052

Ground leases Offices Paris-Charles de Gaulle Cargo Paris-Charles de Gaulle Hangars Paris-Charles de Gaulle

93

95

345

339

115

115

Hotels/shops Paris-Orly and Charles de Gaulle

238

253

Hangars/freight Paris-Orly

44

58

Logistic/activity Paris-Orly and Charles de Gaulle

202 134 1,171 306

218 141

Paris-Le Bourget and AAG

TOTAL OF EXTERNAL GROUND LEASES

1,219

TOTAL OF LAND RESERVES

162

TOTAL OF INVESTMENT PROPERTY

2,624

2,433

216

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018