2-4, quai Michelet Levallois-Perret. 7, rue de l Amiral-Serre Versailles. Contents

Transcription

1 annual report 2003

2 2-4, quai Michelet Levallois-Perret 7, rue de l Amiral-Serre Versailles Contents 2 At the heart of new dynamic urban development 4 Quality drives development and growth 6 Year s highlights: a Group on the road to success 8 Questions for Antoine Jeancourt-Galignani and Serge Grzybowski 10 Corporate management: recognized and complementary skills 12 Strategy: an objective of profitable redeployment 14 Portfolio highlights: major improvement 16 Financial highlights: objectives achieved 18 GECINA and its shareholders: emphasis on the quality of information 20 Human resources: integration facilitated 21 Sustainable development: a commitment that involves everyone 22 Commercial real estate: an active and selective development policy 40 Residential real estate: rationalization stepped up 58 Background: dynamic development 59 Financial report

3 Leader in the euro zone with real estate holdings valued at 7.8 billion euros, GECINA has a unique profile defined by a balance between its two rental activities: commercial real estate and residential properties. Offices and commercial premises, which offer a high yield, combine with residential properties, a source of regular and diversified revenues, to ensure a profitable and safe investment. GECINA s rental real estate properties represent a total area of more than 2.2 million sq.m., comprising 900,000 sq.m. of commercial premises and 19,000 apartments. Assets are noted for the quality of their location: 90% are in Paris and the surrounding region, and the rest in Lyons. GECINA s profitable growth trend is driven by its teams experience and know-how. Asset management, building service and maintenance, financial and real estate engineering, asset restructuring and development, marketing, etc. are some of the areas in which the Group has developed expertise, fostering the implementation of an active policy to increase the value of assets and purse an opportunistic strategy of acquisitions and divestments. As a listed French real estate investment trust (SIIC) 1 since 2003, GECINA is a tax free vehicle that provides a high yield. With a market capitalization of 3.8 billion euros in the hands of almost 38,000 shareholders, GECINA is one of the most liquid real estate stocks. It is part of the SBF 120 and the Euronext 100 stock market indexes. (1) Société d Investissements Immobiliers Cotée. 1

4 At the heart of new dynamic urban development 1-3, rue de Caumartin Paris Through its activities in real estate, GECINA contributes to urban redevelopment. By restructuring, renovating, redeveloping, constructing and improving, its investments prefigure a new cityscape and the economic development of the players involved. The architectural and technical characteristics of these real estate projects enhance the environmental and esthetic qualities of the greater Paris and Lyons regions in which the Group s assets are located. The mix of residential properties and commercial premises at these locations ensures a better balance in the heart of cities, as illustrated by major projects such as the Labuire concerted development zone or the renovation of the Beaugrenelle mall, which are conducted together with all the local partners. These programs are complemented by the daily service and maintenance operating teams provide for all the GECINA s real estate assets. 2

5 72-86, avenue Félix-Faure and 106, boulevard Vivier-Merle Lyon In partnership with Lyonnaise de Banque, GECINA is involved, as planner, in the Labuire project, a five hectare plot of land at the corner of the boulevard Vivier-Merle and the avenue Félix-Faure in Lyons. The project aims to develop 140,000 sq.m. of offices, stores, housing and public facilities. The sale to real estate operators of property concession rights, of which GECINA owns 60%, is scheduled from The development of Labuire will create a new neighborhood that will be the setting for enhanced living conditions. At the southern end of the Lyons Part-Dieu central business district, housing, stores, small shops and services, parks and offices will together create the economic, social and environmental components needed to ensure an attractive balance for quality urban living. 5 bis-7, rue Volney and 14-16, rue des Capucines Paris 3

6 Quality drives development and growth 32-34, rue Guersant Paris The process GECINA employs to create value is based on the mastery of new businesses better able to take advantage of fluctuations in the real estate markets. Most activities are piloted within the Company acquisitions, divestments, development, marketing, asset management and, last but not least, financial and real estate engineering. The size the Group has attained has enabled it to bolster operations through the addition of various support functions Quality, Research, Strategy and Marketing, and Risk Management. These activities make GECINA more responsive and better able to create value. They are made available to third parties through LOCARE, one of the top ten brokers in Paris, and COMPAGNIE FONCIERE DE GESTION, which is dedicated to real estate management. 4

7 Cours Ferdinand-de-Lesseps Rueil-Malmaison As the Group s marketing and sales arm, LOCARE has more than 20 years experience as a real estate service provider specialized in property rental and sales transactions. Since the beginning of 2004, this subsidiary provides asset management consulting services for professional investors. In 2003, LOCARE recorded 17 million euros in commissions, 40% of which were from clients outside the Group. During the year, 2,460 apartments and 58,350 sq.m. of offices were rented and 1,300 apartments were sold to retail customers. GECINA as well as major institutional, corporate and individual real estate investors put their trust in LOCARE in , rue de Châteaudun Paris 5

8 Year s highlights A Group on the road to success 2003 January GECINA joined forces with Apsys, one of France s major commercial real estate operators, to restructure the Beaugrenelle mall in Paris. With its financial partners Foncière Euris and Francarep, Apsys now has a 50% interest in this asset, and GECINA holds the other 50%. In close cooperation with all the local players, the project involves major restructuring and the extension of the mall to 40,000 sq.m. GECINA will continue to ensure the management of the whole operation, as well as administrative and financial management for the project. Work started on the future headquarters of the GECINA Group at 5bis-7, rue Volney / 14-16, rue des Capucines, Paris 2 nd, in the central business district between the Opera, la place de la Madeleine and the place Vendôme. February GECINA successfully launched its first bond issue in the amount of 500 million euros. Partial refinancing of the syndicated loan negotiated when SIMCO was acquired in November 2002 allowed the Group to extend and diversify its sources of financing. May Crédit Foncier transferred its entire stake in GECINA (4.1%) to Prédica, the Crédit Agricole Group s life insurance company. Ownership of this equity holding, the result of GECINA s takeover bid on SIMCO, was required to be maintained until May 16, Prédica then became one of GECINA s major shareholders with 9.4% of the capital. On May 28, GECINA signed the definitive sales contract for 47 buildings, mainly residential Haussmann-style properties, in the amount of 563 million euros. This divestment represented a total of 1,965 apartments, as stipulated in the agreement signed on October 14, 2002, with the American company Westbrook Partners. June GECINA s Annual Shareholders Meeting decided to renew the terms as members of the Board for a period of three years of Laurent Mignon, Christian de Gournay, Azur-Vie and Antoine Jeancourt-Galignani, whose position as Chairman of the Board of Directors was confirmed by the Board at the meeting held after the Annual Shareholders Meeting. The Annual Shareholders Meeting also ratified the appointment of Anne-Marie de Chalambert as a member of the Board to replace GPA Vie, which resigned, for the remainder of the latter s term. July The Axa Group sold its 6.2% equity interest in GECINA, after the expiration of the commitment not to sell on May 16, These shares were placed with a wide circle of international investors. In keeping with the calendar announced on July 31, 2003, the protocol agreement signed with Westbrook Partners on October 14, 2002, was completed when the definitive sales contract was signed for 50 buildings that were 6

9 193, rue de Bercy Paris formerly SIMCO assets. This second part of the agreement represented a sale of assets in the amount of 575 million euros for almost 140,000 sq.m. of mainly residential Haussmann-style properties for a total of 1,151 apartments. GECINA published an increase in half-year rental income of more than 100%. For the first time, commercial rentals accounted for more than 50% of the Group s total rental income. September GECINA opted for the new SIIC tax system with retroactive effect as of January 1, This system allows the Group to benefit from a tax exemption on rental income and capital gains on real estate transactions generated within the framework of its activities as a real estate investment trust. Conversely, GECINA should pay an exit tax of million euros, a quarter of which is payable every December 15 from 2003 to October GECINA Group brought its teams together at 34, rue de la Fédération, Paris 15 th. December The Shareholders Meetings of GECINA and SIMCO approved the merger of SIMCO into GECINA. Announced as a possible complement to the takeover bid on SIMCO, the merger is a logical stage in the Group s development. The parity of the merger was nine GECINA shares for ten SIMCO shares, the same as was proposed during GECINA s takeover bid on SIMCO in the autumn of January On January 2, the par value of GECINA shares was divided in half to 7.50 euros. Registered shares became mandatory as of January 7. The 6,300 sq.m. of GECINA s former headquarters, located at 2 ter, boulevard Saint-Martin, Paris 10 th, were rented under satisfactory market conditions. February The Dauphiné Part-Dieu project was completed. The 13,000 sq.m. of office space are located near the Part-Dieu rail station in Lyons. March In the presence of Gérard Collomb, Senator-Mayor of Lyons, the project for the Labuire concerted redevelopment zone was presented at the 2004 MIPIM (international marketplace of real estate professionals), which was held in Cannes from March 9 to 12. In partnership with the Grand Lyons and the city of Lyons, GECINA and Lyonnaise de Banque joined forces in SAS LABUIRE Aménagement as planner. The project involves making five hectares of undeveloped land into 140,000 sq.m. plots on which offices, stores, housing and public facilities can be built. 7

10 Questions for Antoine Jeancourt-Galignani and Serge Grzybowski How do you analyze GECINA s annual results, which for the first time consolidated SIMCO on a full year basis? Serge Grzybowski: GECINA reported good and very encouraging results in The operating margin, i.e. the ratio between EBITDA (excluding net income from sales of real estate holdings) and rental income, again improved, rising to 77.7%. The impact of the adoption of the SIIC tax system was a 42.6% increase in current cash flow 1 per share after tax. Even more convincing was the 9.1% rise in current cash flow before tax, in line with our objectives. In fact, if abstraction is made of the creation of shares at the end of the year following the merger of SIMCO into GECINA and the conversion of former GFC 3.25% bonds, pre-tax current cash flow per share stood at 15.3%. How do you explain this performance? Antoine Jeancourt-Galignani: These results are concrete proof of the benefits generated by the merger of GECINA and SIMCO, as we had announced to the shareholders of both companies. But they also owe a great deal, and increasingly so, to the policy implemented for almost three years now that aims to rebalance our asset portfolio. The consistency and coherence of our strategic choices have thus been confirmed a commercial focus that has been honed according to strict criteria ensuring the yield, quality and the regularity of flows, an optimized residential activity, a relutive financial structure, and an organization clearly defined by line of business. S. G.: As we promised in this forum last year, SIMCO was completely integrated as of The legal merger of the two companies was approved by each company s Shareholders Meeting on December 17, This operation took effect on December 31, At the operational level, the process was already well underway during the year as the companies teams were regrouped, the Executive Committee was named, and an organization was set up, with the addition of a significant marketing subsidiary, one of the ten largest brokers in Paris, and new support functions (research, quality, etc.). I would like to take this opportunity to associate the men and women in the Group with this success and thank them for their efforts. A. J.-G.: Let me add that the Group achieved the objective it had set to reduce debt in At the end of December, the revalued debt-equity ratio was once again lower than 40% and EBITDA covered financial expense more than 2.5 times. GECINA now has financial resources that open the door to new opportunities. On this point, there are frequent market rumors about new external growth operations? Is there any truth to them? A. J.-G.: GECINA is certainly not opposed to the prospect of external growth, a strategy that it has employed frequently in the past. We carefully study any and all opportunities. But we have strict requirements in terms of the creation of value that neither we nor our shareholders and the Board of Directors will forego. Today, this approach distances us from certain current operations, all the more so since the new GECINA now has the resources it needs to focus more on internal growth. S. G.: The merger with SIMCO makes it possible to form teams of experts dedicated to the Group s development. While carrying out a 1.5 billion euro divestment program in 2003, these teams conducted several development projects representing a total of 90,000 sq.m. GECINA also benefits from a preliminary agreement to acquire more than 20,000 sq.m. of commercial real estate located in Paris. This investment totals 121 million euros. As you can see, the redeployment of the Group through its internal resources is on the right track. 8

11 Antoine Jeancourt-Galignani Chairman Serge Grzybowski Chief Executive Officer Let s talk some more about the SIIC status GECINA has adopted. What is the benefit for shareholders? S. G.: It s a great advantage. This new tax system potentially gives us greater flexibility to pursue an arbitrage policy based on economic fundamentals without having to calculate the impact of taxes. Our arbitrage policy, in both the residential and commercial sectors, will be designed on the basis of our objectives to improve the overall return on our assets. For example, tax savings in 2003 were greater than the first payment of the exit tax last December 15. A. J.-G.: The SIIC option led to an immediate revaluation of the Group. As of December 31, post-tax diluted net revalued block assets 2 per share increased by 27.1% in a year. This option also enabled us to internationalize our shareholding base, in particular with the arrival of American shareholders who are familiar with Real Estate Investment Trusts (REITs), an American vehicle that has approximately the same tax status as ours. Their joining our shareholder ranks was accompanied by a reduction in GECINA s share price discount vis-à-vis a sharp increase in revalued net assets per share. This was one of the reasons for the positive trend in the share price over the last few months. Finally, there was a significant rise in distribution. A dividend of 2.45 euros per share has been proposed to the Shareholders Meeting of June 2. This represents an increase of 22.5%, with the gross dividend proposed up 12.0% to 3.35 euros. What message do you want to send to your shareholders? S. G.: There are many ways to create value for our shareholders. We should, therefore, continue to improve the return on assets in the next two years. At the end of this process, the breakdown of residential and commercial activities should stand at 30%-35% and 65%-70%. The objective of an operating margin of 80% is within our grasp. A. J.-G.: The implementation of our strategy justifies an objective of double-digit growth in current cash flow per share. In 2004, the increase should be between 5% and 10%. The top of this range will be all the easier to attain if significant investments are made during the year. Finally, GECINA s reputation as a yield stock will be confirmed in The tax reforms in France and our new tax system together have a very positive impact for our shareholders. This will be particularly the case for individual shareholders, who benefit not only from higher dividends as a result of SIIC bonds, but also the common law tax exemption on dividends. They will benefit the most from the reform and we invite more of them to join us. 1 Cash flow excluding net income from sales of real estate holdings. 2 On the basis of a block valuation, net selling prices, of real estate assets. 9

12 Corporate management Recognized and complementary skills GECINA s Board of Directors Antoine Jeancourt-Galignani Chairman of the Board Michel Pariat Vice Chairman Charles Ruggieri Chairman, Batipart Christian de Gournay Chairman of the Executive Board, Cogédim Bertrand Letamendia Chief Real Estate Officer, AGF Azur Vie represented by Bruno Legros Chief Investment Officer, Azur GMF GMF Vie represented by Sophie Beuvaden Chief Executive Officer Delegate, Finance division, Azur GMF Anne-Marie de Chalambert 1 Chairman and Chief Executive Officer, Generali Immobilier Conseil Laurent Mignon Chief Executive Officer, AGF Jean-Paul Sorand 2 Chairman s Delegate Director Bertrand de Feydeau Chief Executive Officer, Economic Affairs, Association Diocésaine de Paris Philippe Geslin Chairman, Banque Française de l Orient Françoise Monod Attorney Prédica represented by Jean-Pierre Bobillot Deputy Chief Executive Officer, Prédica Appointments and Compensation Committee Laurent Mignon, Chairman Sophie Beuvaden Christian de Gournay Françoise Monod Antoine Jeancourt-Galignani 3 Audit Committee Philippe Geslin, Chairman Bertrand Letamendia Jean-Pierre Bobillot Bruno Legros Quality and Sustainable Development Committee Charles Ruggieri, Chairman Anne-Marie de Chalambert Bertrand de Feydeau Jean-Paul Sorand, Reporter Executive Management Serge Grzybowski Chief Executive Officer Independent Statutory Auditors Ernst & Young Audit 4 F-M Richard & Associés 4 Mazars & Guérard 5 Independent Alternate Auditors Patrick de Cambourg 6 Sylvain Elkhaim 7 Dominique Duret-Ferrari 7 Board Secretary Jean-Alain Daniel (Details of directors compensation and terms of office are provided in the management report. The conditions of the organization and preparation of the Board and the Group s internal control are presented in the Chairman s report.) 1 Director whose mandate the Shareholders Meeting of June 2, 2004, is asked to renew. 2 Director with executive management functions since December 20, Appointments only. 4 Independent Statutory Auditor whose mandate expires June 2, 2004, a fact of which the Shareholders Meeting held on the same day is informed. 5 Independent Statutory Auditor whose resignation as the Company s third auditor is proposed to the Shareholders Meeting of June 2, 2004, and whose appointment for six years is proposed to the Shareholders Meeting held on the same day. 6 Independent Alternate Auditor whose resignation is proposed to the Shareholders Meeting of June 2, 2004, and whose appointment for six years is proposed to the Shareholders Meeting held on the same day. 7 Independent Alternate Auditor whose mandate expires June 2, 2004, a fact of which the Shareholders Meeting held on the same day is informed. 10

13 From left to right and from top to bottom: Antoine Jeancourt-Galignani Serge Grzybowski Méka Brunel Yves Dieulesaint Michel Gaillard Michel Gay André Lajou Etienne Marcot Denis Outin Executive Committee Antoine Jeancourt-Galignani Chairman Serge Grzybowski Chief Executive Officer Méka Brunel Development Director Yves Dieulesaint Director of Residential Property Michel Gaillard Lyons Regional Director Michel Gay Financial and Administrative Director André Lajou Director of Commercial Property Etienne Marcot Chief Executive Officer of LOCARE Denis Outin Human Resources Director 11

14 Strategy know-how profitability The GECINA Group is resolutely engaged in a process that targets the creation of value based on an enhanced return on assets. In 2004, GECINA defined a new multi-year arbitrage plan in the amount of 500 million euros. Comprised of residential Haussmann-style properties in Paris, with a gross yield of less than 5%, these assets will be sold by unit in order to maximize the resources gleaned. At the same time, the high market values of commercial investments are exploited by the sale (for 200 million euros) of offices with mature rents and therefore limited growth potential. know-how development In 2003, GECINA took the steps required to create internal growth relays. Capable of generating almost 30 million euros in additional rental income on the basis of high yield properties, several asset development projects, representing a total of 90,000 sq.m. of commercial premises in Paris and Lyons, has been launch. At the same time, GECINA implements an opportunistic asset acquisition policy that represents real prospects for short-term profitability. The Company targets office buildings with an area of more than 10,000 sq.m. and with long-term rental flows. know-how financing GECINA financing policy is designed to minimize the average weighted cost of capital and, in particular, of debt, within the framework of strict management of interest rate, liquidity and counterparty risks. In 2003, the priority was debt reduction and the diversification of sources of financing, two major factors in restoring the Group s financial capacity so as to pursue its growth. know-how remuneration For many years, GECINA has implemented a policy that targets regular growth in dividends, reflecting increased current cash flow per share. The adoption of the SIIC status confirms GECINA s reputation as a yield stock, and within the framework of French tax reforms, will boost net income after taxes for all owners of shares, and most especially, individual shareholders. 1 Vente au détail par appartement. 12

15 An objective of profitable redeployment 2-4, quai Michelet Levallois-Perret 13

16 Portfolio highlights Major improvement Consolidated data millions of euros unless otherwise stated Rental income Commercial properties Residential properties Revalued block value of assets as of December , , ,111.9 Commercial properties 1, , ,871.5 Residential properties 2, , ,240.4 Revalued retail value of assets as of December , , ,793.3 Commercial properties 1, , ,915.3 Residential properties 3, , ,878.1 Gross return on assets rental income/revalued block value of assets % 6.21 % % Total surface area of real estate assets as of December 31 1,722,868 sq.m. 2,771,699 sq.m. 2,248,710 sq.m. Commercial properties 536,189 sq.m. 1,014,167 sq.m. 929,621 sq.m. Residential properties 1,186,679 sq.m. 1,757,532 sq.m. 1,319,089 sq.m. Number of apartments as of December 31 16,671 24,400 19,044 Investments , Divestments , On the basis of block valuation appraisals, net selling prices, of real estate assets. 2 On the basis of unit valuation appraisals, net selling prices, of residential properties and of block valuation appraisals, net selling prices, of commercial premises. 3 On the basis of 2002 pro forma GECINA-SIMCO rental income of million euros. Change in residential and commercial business % of the Group s rental income % of the revalued block value of assets Residential Commercial On the basis of block valuation appraisals, net selling prices, of real estate assets. 14

17 Geographic breakdown of properties in operation 1 Breakdown of properties in operation by type 1 Paris Paris region Lyons Other After Haussmann-style Other % of rental income % of rental income % of the revalued block value of assets 2 % of the revalued block value of assets % of surface area % of surface area Excluding properties for sale and buildings acquired or under construction during the year, lands and La Rente Immobilière. 2 On the basis of block valuation appraisals, net selling prices, of real estate assets. 15

18 Financial highlights Objectives achieved Breakdown of gross financial debt as of December 31, 2003 Shareholding structure as of March 31, % Finance leases 29% Bank loans 12% Commercial paper 33% Bonds 14% Convertible bonds 11.1% Individual shareholders 18.7% Non-resident shareholders 18.8% Other institutional residents 4.2% Treasury stock 23.9% AGF 13.6% Azur GMF 9.7% Prédica (Crédit Agricole Group) Operating margin GECINA s stock market capitalization 77.7% % % EBITDA 1 / rental income (%) 12/31/ /31/ /31/2003 4/10/2004 billions of euros 1 Excluding net income from divestments. 16

19 Consolidated financial data millions of euros unless otherwise stated EBITDA Net financial expense EBITDA 1 / net financial expense 2.87 x 3.01 x 2.54 x Pre-tax current cash flow Current cash flow after tax Diluted pre-tax current cash flow Diluted current cash flow after tax Net income, Group share Net financial debt as of December 31 1, , ,513.0 Shareholders equity as of December 31 1, , ,773.1 Revalued net block asset value after tax as of December , , ,043.9 Revalued net unit asset value after tax as of December , , ,725.3 Diluted revalued net block asset value after tax 2 4 2, , ,389.5 Diluted revalued net unit asset value after tax 2 5 2, , ,070.9 Net financial debt / revalued net block asset value as of December % 47.75% 35.33% Net financial debt / revalued net unit asset value as of December % 44.48% 32.25% Net financial debt / shareholders equity as of December x 1.98 x 0.65 x Total dividends Per share data 7 euros Pre-tax current cash flow Diluted pre-tax current cash flow Current cash flow after tax Diluted current cash flow after tax Net income, Group share Diluted revalued net block asset value after tax Diluted revalued net unit asset value after tax Net dividend Gross dividend Number of shares Number of shares comprising the share capital as of December 31 38,476,100 54,092,752 58,038,246 Number of shares excluding treasury shares as of December 31 36,796,524 52,652,818 56,432,164 Diluted number of shares excluding treasury shares as of December ,796,978 61,879,826 63,358,772 Average number of shares 37,125,948 38,874,050 56,609,724 Diluted average number of shares 2 41,126,402 42,331,052 63,536,332 1 Excluding net income from divestments. 2 Diluted by existing convertible bonds. 3 After restatement of the balance sheet as of January 31, On the basis of block valuation appraisals, net selling prices, of real estate assets. 5 On the basis of unit valuation appraisals, net selling prices, of residential properties and of block valuation appraisals, net selling prices, of commercial premises. 6 Subject to the approval of the Shareholders Meeting of June 2, 2004, and a dividend payment base of 56,412,164 shares. 7 Data restated to account for the split of the par value of shares as of January 2,

20 GECINA and its shareholders Emphasis on the quality of information In 2003, GECINA confirmed its status as a major stock investment in its sector at the European level with a 15.45% increase in the share price, an increasingly diversified shareholding structure and enhanced financial communication. A SIIC with clout In less than three years, GECINA s stock market capitalization has more than doubled, rising to 3.8 billion euros in April This growth was accompanied by an expansion of its shareholding base, which is now half freefloat. Together with AGF (23.95%), Azur GMF (13.64%) and Prédica, the Crédit Agricole Group s life-insurance subsidiary (9.71%), non-resident investors increased their holdings significantly to 18.66% as of March 31, 2004, at the same level as resident institutional shareholders (18.64%). Individual shareholders represent 11.06% of the capital, with an average of 174 shares. At the same time, the liquidity of GECINA shares improved markedly with an increase of more than 200% in trading volume in When the par value was divided in half on January 2, 2004, the average number of shares traded surpassed 110,000 per day in the first three months of Registered shares Since January 7, 2004, all GECINA shares must be registered shares. Approved by the Shareholders Meeting of December 17, 2003, this form enables shareholders to benefit from personalized services that include announcements of Shareholders Meetings, participation in Shareholders Meetings without having to obtain a banker s certificate freezing shares, and invitations to events for individual shareholders. An in-house team manages pure registered shares with no custody fees and reduced brokerage commissions. There are also administered registered shares that allow shareholders to continue to work with their brokers. The account is therefore managed under the conditions practiced by the broker firm. Regular and detailed information In 2003,GECINA continued to improve the quality of its financial communication by adding new indicators to bolster its financial information. The number of press releases was increased and more diversity was introduced into the subjects announced (appointments, divestments, investments, new rentals, etc.) in order to provide greater regularity and transparency with regard to major events in the life of the Group. Information is put online at as soon as it is announced in order to ensure equal access to information for all shareholders, whatever their profile and nationality. A grass-roots approach and dialogue GECINA is committed to establish and maintain dialogue with its shareholders. Throughout the year, management is in regular contact with the financial and economic press, financial analysts, investors and individual shareholders. With institutional shareholders, analysts and journalists, these contacts take the form of conferences, SFAF meetings organized on the occasion of the publication of annual and half-year results, group or individual meetings. A particular effort was made in 2003 to attract individual shareholders. For the first time, GECINA took part in the Actionaria shareholding promotion event, which was held in Paris on November 21 and 22, In addition, dedicated services were created to maintain close contact: a free telephone service for direct dialogue with the Investor Relations team; an address. GECINA plans to continue to develop this area and is studying new investor relations opportunities (visits to GECINA properties, shareholder meetings outside of Paris, etc.). 18

21 GECINA share price Price in euros Trading volume (millions of euros) euros 80 millions of euros GECINA shares Contacts Number of shares: 58,053,246 as of March 31, 2004 ISIN code: FR Stock Exchange: Euronext Paris, (Premier Marché) Service à Règlement Différé Indexes: SBF 120, Euronext 100, MSCI, EPRA Financial Communication Financial analysts, investors and press relations: Laurence Bousquet Individual shareholders: Régine Willemyns actionnaire@gecina.fr GECINA shareholders calendar May 27, 2004 Participation in the conference on listed real estate companies organized by Kempen & Co in Amsterdam June 2, 2004 Shareholders Meeting to approve the 2003 financial statements June 8, 2004 Dividend paid July 28, 2004 Publication of 2004 half-year results after the stock exchange closes July 29, 2004 SFAF financial analysts meeting on 2004 half-year results October 15, 2004 Publication of rental income in the third quarter of 2004 November 19-20, 2004 GECINA stand at the Actionaria shareholding promotion event in Paris Securities and Stock Market Laurent Le Goff

22 Human resources Integration facilitated The prime objective in 2003 was the successful integration of the GECINA and SIMCO teams in a spirit of cooperation and mutual respect. 3-5, boulevard de la Madeleine Paris Optimized organization At the end of 2003, the GECINA Group employed 798 men and women, including 373 housekeepers. By focusing their efforts on the harmonization of work procedures and methods, the seven working groups created in 2002 contributed to the success of the merger of the two companies in December Their missions mainly concerned the Group s legal and accounting reorganization, IT, the search for new headquarters, changes in marketing strategy, external and financial communication, new third-party activities and labor and human resources issues. In addition to the two functional divisions (Human Resources, Administration and Finance), five operational divisions were created in line with the Group s strategy: the Residential Properties division, the Commercial Properties division, the Development division, Marketing and Sales, and the Lyons Region division. Management of residential properties and commercial properties is thus clearly distinguished, since each category corresponds to a specific market approach and client base. The Development division is responsible for applying the Group s strategy concerning its asset holdings and the appropriate arbitrage policy, and for exploring geographic expansion and product development. As a result of the alliance with the SIMCO Group, Marketing and Sales benefited significantly from the addition of a line of business targeting third parties. LOCARE, initially a SIMCO subsidiary, has recognized experience in organizing property rentals and sales, either of Group products or for major institutional investors specialized in residential real estate. The managers, technicians, sales staff, etc. in the Lyons Region division deal with all aspects of real estate management in Lyons and the surrounding area. New headquarters Since October 2003, GECINA and SIMCO teams work together in the Group s new headquarters at 34, rue de la Fédération, Paris 15 th. This first move will be following by another when the Group takes possession of its newly renovated building at 14-16, rue des Capucines, Paris 2 nd, in the autumn of The Lyons Region division (staff of 23 and 24 housekeepers) will remain in Lyons (29, quai Saint-Antoine, Lyons 2 nd ). A common employment status, harmonized tools In 2003, the labor agreements existing at GECINA and SIMCO were harmonized, leading to the adoption of a new social and economic unity since the two companies merged in December Since January 2004, employees in all the of the GECINA Group s companies share the same employment status, which defines new conditions for working together. This dynamic was complemented by the upgrade of IT systems, to the advantage of the Group and its employees. Launched by a study in the first half of 2003, the convergence of IT systems was effective as of January 5, All the administrative staff was trained, first, to introduce them to the system and, then to allow them to exploit all its possibilities. Upstream from such training programs working groups were formed and, over several weeks, they compared work processes in order to choose and improve those that were in the final selection. The leaders and members of the working groups became facilitators in the in-house programs organized to train Group employees. During this period of integration, a special effort was made in internal communication in order to provide the staff with regular information and a new dynamic was created in the Group. The publication of a newsletter on the merger, the introduction of an intranet tool mon.gecina.fr, and the meetings held to inform management helped to create a Group spirit. 20

23 Sustainable development A commitment that involves everyone GECINA s commitment is illustrated by a whole series of actions in response to the Group s increased awareness of its environmental, social and society-based responsibilities. The creation of an autonomous Risk Management department in 2001 and, recently, of a committee of Directors dedicated to quality and sustainable development incorporate this objective at a practical level in the Group s businesses. Principles of action The principles of action that motivate Group employees in the exercise of their jobs are based on respect for legal requirements, the environment, health and safety. Values of mutual respect, fairness, solidarity and professionalism bolster GECINA s integration of sustainable development at the heart of its redeployment strategy. Listening to clients, transparency vis-à-vis shareholders, dialogue with GECINA s partners and suppliers are part of daily life for the men and women who work for the GECINA Group. Concrete measures Many measures are applied on a day-to-day basis. The competitiveness of real estate proposals from the point of view of environmental protection is a constant priority for the Group. In 2003, GECINA invested 10.5 million euros for the maintenance and renovation of apartments and offices (painting, plumbing, flooring, etc.), while capital expenditures for major restructuring and improvements in apartments and offices totaled 59.9 million euros. Within the framework of its sustainable development, GECINA pays special attention to issues of risk and sustainable development. A comprehensive analysis of ground pollution risks is a required stage in GECINA s investigation of new investment possibilities. For this reason, high-yield projects have been turned down because the buildings had been constructed on polluted land and the economic, environmental or health consequences for the local population were unknown. The technical equipment and raw materials GECINA uses in its development projects are chosen for their environmental properties and their durability. GECINA also complies with current regulations that are specific to the real estate market (asbestos, lead in paint, Legionnaire s disease, fire safety, elevators, etc.) 1. A risk management team is in charge of monitoring, controlling and advising on any possible environmental risks in order to anticipate any incidents. Specific services GECINA clients have access to a 24-hour emergency assistance service since A telephone contact is provided and skilled Company employees are on duty to field the calls. The goal is to reduce the material consequences of any delayed response to an incident that might have negative consequences for GECINA or its clients. For maximum efficiency, a crisis cell has also been set up with a pluridisciplinary team to deal with major events The unit combines skills in the field of IT, technical questions, legal requirements, communication, human resources, etc. A committee for quality and sustainable development A committee for quality and sustainable development comprised of four Board members was formed at the beginning of 2003 to promote and pilot all initiatives in support of quality and sustainable development. In 2003, it focused on risk management prevention in liaison with the risk manager. In 2004, it will study the introduction of standards against which to measure quality and client satisfaction. 1 GECINA s industrial and environmental risks and its prevention policy are presented in the management report. 21

24 Commercial real estate In the last two years, GECINA has put together a portfolio of commercial properties that is a source of growth and the creation of value in the medium term. Its highly selective position enabled the Group to move forward in an uncertain economic environment in % 79% 60% of the Group s rental income in 2003 was from commercial properties. of commercial properties were concentrated in prime Paris business districts as of December 31, of the Group s rental income in 2003 was from properties with a surface area of more than 5,000 sq.m. 22

25 An active and selective development policy 10-12, place Vendôme Paris 23

26 3, place de l Opéra Paris 3-5, boulevard de la Madeleine Paris 2003, a second year of rental market adjustments in Ile-de-France With weak growth in GDP, the year 2003 represented the third worst economic performance since the Second World War. The job market remained depressed. Unemployment continued to rise, reaching an average estimated at 9.5% in 2003, versus 9.0% in In such an economic environment, the market for office real estate in Ile-de-France showed rather good resistance. The fourth quarter of 2003, which was particularly active in terms of both supply and demand, offset the first three quarters, which were disappointing, making the year s results better than expected. In 2003, the supply increased, but at a slower pace than in 2001 and As of December 31, 2003, CBRE-Bourdais estimated at 2,934,400 sq.m. the surface area immediately available in Ile-de-France, representing a moderate increase of 12%. This growth was not homogeneous. Certain sectors recorded significant increases of approximately 48% (close suburbs north, east and south of Paris) and 21% in Paris in a year, whereas other zones reported more contrasted trends: -2% at La Défense and -5% in the outlying suburbs 1. In Paris, the vacancy rate was the lowest in Ile-de-France at 5%. La Défense reported a vacancy rate of 8%. Altogether, at 6.5%, this indicator for Ile-de-France practically stabilized after several years of rapid growth 2. With 1,708,200 sq.m. in placement (510,000 sq.m. in the last quarter alone), demand was satisfied (space rented or acquired by clients in Ile-de-France) at a level similar to that reported in 2001, and up 11.5% from Of this total, sales 1 to occupants represented approximately 300,000 sq.m. Transactions of more than 5,000 sq.m. drove the market, showing strong growth compared with ,000 sq.m. were placed in this segment, versus 630,000 sq.m. in Overall, 71 transactions of more than 5,000 sq.m. were recorded in 2003, compared with 47 in The strongest growth was reported in the 5,000 sq.m. to 10,000 sq.m. segment, with 41 transactions in 2003, up from 24 in The choice of a site for corporate relocation is often decided on the basis of trends in rental costs. Despite relative stabilization in the third quarter, rentals continued their readjustment in The weighted average of rentals in Ile-de-France for new, restructured or renovated buildings stood at 310 euros sq.m./year (excluding VAT and operating costs), down 9% in nominal value in a year 1. The most significant market corrections were observed in business districts in and around Paris. The average 1 Source: CB Richard Ellis Bourdais. 2 Source: Catella Property Group. 24

27 Prime rentals in Europe in 2003 (sq.m./year - excluding VAT and operating costs) Prime office yields in Europe in 2003 London West End Paris (central business district) Frankfurt (central business district) Madrid Source: CB Richard Ellis Bourdais. 850 euros 675 euros 420 euros 312 euros > >>> Paris (central business district) 5.90% London West End 5.75% Frankfurt 4.80% Madrid 6.00% Source: CB Richard Ellis Bourdais , rue de la Villette Lyon value of transactions of more than 5,000 sq.m. amounted to 420 euros sq.m./year (excluding VAT and operating costs) in the business district west of Paris and 603 euros sq.m./year (excluding VAT and operating costs) in Paris 1. Prime real estate followed a similar trend: - 5% to -7% in central Paris and - 7% to - 10% at La Défense 2. This decline was accompanied by enhanced commercial advantages for renters, including rental franchises, contribution to works, progressive rent structures, etc. Conversely, new renters agreed to contract long leases (6 to 9 years or more) for large surface areas. An active market for offices in Lyons 3 The year 2003 was marked by a sustained volume of transactions in Lyons, confirming this market s reputation as a good investment. Commercial rental transactions totaled 172,600 sq.m., up 8.5% from 2002 and at a higher level than the average of the last ten years. Space available in less than a year increased by 34% in 2003 to 268,500 sq.m. at the end of the year. This figure included 91,800 sq.m. of new offerings and 176,700 sq.m. of previously occupied properties, for a total vacancy rate of 5.9%. The increase in supply in 2003 ensured stability in rental fees, which stood at 180 euros sq.m./ year (excluding VAT and operating costs) for new constructions and 121 euros sq.m./year (excluding VAT and operating costs) for previously occupied properties at the end of the year. Investment in offices was down slightly in 2003, with a total of 132,500 sq.m. versus 144,500 sq.m. in This contraction in investment was the result of a reduction in office space supply that led to a general decrease in profitability rates. The continued major presence of German investment funds ensured support for market values in Retail leases, a lackluster market The decline in consumer spending affected the development plans of major distributors, who focused on opening stores of less than 500 sq.m. in recognized commercial sectors. Luxury brands were particularly active in downtown areas, while retail parks in the suburbs attracted well-known brand names. Rental income was down slightly with contrasting trends. Rents for well-located stores of less than 500 sq.m. remained stable, or even rose slightly, whereas rents declined for retail premises between 500 sq.m. and 2,500 sq.m. or in less desirable locations. 1 Source: Catella Property Group. 2 Source: CB Richard Ellis Bourdais. 3 Source: Atis Real Auguste-Thouard. 25

28 19, rue de la Villette Lyon 47, rue Louis-Blanc La Défense A dynamic investment market Despite the adjustment in the rental market, the French market confirmed in 2003 that it continues to exert an attraction. Comparisons with other European markets are to its advantage; rent levels have growth potential in spite of their current decline; and the market is fluid. 9.5 billion euros were invested in corporate real estate in France in 2003, the same volume as in 2002 and 2001 (excluding the France Télécom portfolio) 1. In an uncertain economic environment, investors preferred traditional products, which involve fewer risks. So 80% of investments concerned offices, the most liquid asset, with 92% in Ile-de-France, and 75% represented acquisitions that were already rented. Commercial space attracted 10% of the total invested in 2003, while warehouses accounted for the remainder, i.e. 10% 1. Among the investors, German funds remained the most active market players, with 37% of investments in Their acquisitions were primarily composed of new or restructured buildings in good locations with secured rents. With 30% of total acquisitions, French investors, in particular real estate firms and insurance and life-insurance companies, remained active. North American and British investors accounted for 9% of total investments respectively. Lastly, in 2003, Middle Eastern funds returned to France, to represent 7.5% of acquisitions, and 65% of sales were negotiated with French investors occupants, developers, real estate firms and insurance companies. Among the foreign sellers, North Americans continued to glean capital gains on assets that have risen in value, representing 25% of total sales. The British, Dutch and Germans sold little in Ile-de-France drained 78% of the amounts invested. Outside of Paris, it was the Lyons region that remained the most attractive with real estate resources that meet international standards and a rental market for previously occupied properties. In 2003, this region accounted for 22% of French investments 1. Real estate continued to attract investment in Despite the rise in interest rates at the end of 2003, and a slight decrease in the immediate yield on office rentals of approximately 25 basis points, the spread remained at 140 basis points to the advantage of real estate yields at the end of A diversified market with many players Corporate real estate assets are owned by many leasing operators, including listed real estate firms, insurance companies, SCPI investment vehicles and a growing number of foreign operators. With a total of 45 million sq.m., Ile-de-France is considered to be Europe s leading office market, ahead of London, 1 Source: CB Richard Ellis Bourdais. 2 Source: Catella Property Group. 26

29 Rental income by business sector in % Information technology 3% Media, TV 6% Other 3% Telecommunications 4% Real estate 3% Insurance 4% Luxury - retail 40% Services 8% Banking 13% Administration 13% Industry 9-15, avenue Matignon Paris and also one of the most diversified 2. Office space in Ile-de-France basically involves three main central markets. The central Paris business district with 8.3 million sq.m. accounts for 18.4% of the total Ile-de-France market; the western suburbs of Paris with 6.4 million sq.m. represents 14%; and the secondary office areas of Paris (Front de Seine, Montparnasse, Gare de Lyons/Bercy/Paris Rive Gauche) add 1.5 million sq.m. At the same time, other areas are emerging like the northwest suburbs of Paris (Clichy, Saint-Ouen and Saint- Denis), and in general, all the municipalities in the immediately surrounding suburbs, such as Montreuil, Charenton and Montrouge. Further out in the suburbs, there are micro markets at Saint-Quentin, Marne-la-Vallée, Vélizy-Villacoublay, etc.) 1. In 2003, Lyons confirmed its position as the second largest French office market after Ile-de-France. Rental office space was estimated at 4 million sq.m. at the end of At the end of 2003, the GECINA Group owned 929,621 sq.m. of offices and stores, 803,937 sq.m. of which were in Paris and its suburbs, a figure that represents less than 2% of office space (excluding stores) in Ile-de-France. Although it is one of the largest listed French real estate firms, GECINA does not have a dominant position in the commercial real estate market. At the same time, the Group s office rental transactions accounted for approximately 2% of the demand satisfied in Ile-de-France. A quality portfolio As of December 31, 2003, the GECINA Group s portfolio of commercial assets was valued at 3.87 billion euros, with 3.78 billion euros located in Paris and its suburbs. The value of commercial assets in the first, second, eighth, sixteenth and seventeenth arrondissements, represented 51.9% of total commercial assets, while the value of assets in the western suburbs (Boulogne, Levallois, Issy-les-Moulineaux, etc.) accounted for 26.8%. These assets form a varied offering in terms of both types of office space (Haussmann-style, recent constructions, stores on the ground floor, etc.) and rental surface area (from small to large). This diversity makes it possible to satisfy a wide range of clients and provides a buffer in the event of an economic downturn. GECINA s corporate clients work in many sectors, thereby reducing the Group s rental risks. In 2003, the ten largest renters accounted for only 14.0% of the Group s rental income. With an annual rent of 13.3 million euros, the largest user represented 2.7% of the Group s rental income in The fifth and the tenth largest accounted for 6.0 million euros and 3.3 million euros, respectively, representing 1.2% and 0.7% of the Group s rental income in At the same time, rents for the ten largest commercial properties contributed 15.7% of GECINA s rental income in Source: Catella Property Group. 2 Source: Atis Real Auguste-Thouard.. 27

30 Commercial rental properties by size % of rental income % of total area Less than 2,000 sq.m. 11% 11% 2,000 sq.m. to 5,000 sq.m. 28% 32% 5,000 sq.m. to 10,000 sq.m. 29% 28% More than 10,000 sq.m. 31% 29% 24, rue Royale Paris Block sales of primarily commercial properties in 2003 Sales of former GECINA assets to Westbrook Paris 217, rue du Faubourg-Saint-Honoré Paris 8 th (3,594 sq.m. of commercial space and 3,376 sq.m. of residential space) Sales of former SIMCO assets to Westbrook Paris 91, rue du Cherche-Midi Paris 6 th (2,595 sq.m. of commercial space) 4, rue du Commandant Rivière Paris 8 th (815 sq.m. of commercial space and 722 sq.m. of residential space) 71, avenue Franklin-Roosevelt Paris 8 th (1,555 sq.m. of commercial space and 762 sq.m. of residential space) Other assets sold Paris region Boulevard de l Yerre Evry (16,944 sq.m. of commercial space) In 2003, commercial rental activities continued to concentrate on the most profitable segments. Consequently, co-op properties and real estate located in less desirable areas were sold. Meanwhile, in May 2003 GECINA acquired a 3,894 sq.m. office building with stores at 159, avenue Charles-de-Gaulle in Neuilly-sur-Seine for 15.8 million euros. After restructuring, this building will form a property of 10,000 sq.m. with 157, avenue Charles-de-Gaulle, which the Group also owns. In a profitable real estate investment market, GECINA intends to pursue its arbitrage policy for second-tier suburban assets and mature assets. This policy aims to reduce the rental risks of the commercial portfolio and to enhance prospects for growth in rental income. For 2004, the Group targets 200 million euros in block sales. At the same time, GECINA implements an opportunistic asset acquisition policy that presents real potential in terms of short-term return on investment. GECINA has thus signed a preliminary agreement to acquire 21,000 sq.m. of office space located in the 17 th arrondissement of Paris with a market value of 112 million euros. 28

31 8, avenue Delcassé Paris 4, allée Ferrand Neuilly-sur-Seine Launch of development operations In 2003, GECINA developed a strategy to increase the value of its commercial portfolio, thereby meeting the criterion of a minimal gross yield of 7.5%. Mainly based on major restructuring operations in Lyons and Paris, this strategy aims to maximize the creation of value in the Group in terms of both profitability and net asset value. In Lyons, work was completed on the Dauphiné Part-Dieu project, which was begun in the autumn of The delivery of this 13,000 sq.m. office building on land owned by GECINA took place on February 3, 2004, ahead of the scheduled date. The investment totaled 28.0 million euros. In Paris, the Volney-Capucines office complex 10,000 sq.m. of office space near the Opera and the place Vendôme is being developed to become the Group s future headquarters. Delivery is scheduled for the fourth quarter of This operation on a building acquired in July 2002 represents an investment of approximately 25.5 million euros in addition to the acquisition price of 48.0 million euros. In January 2003, GECINA launched a project to restructure and give new life to the Beaugrenellle mall in the 15 th arrondissement of Paris through a joint venture (50% - 50%) with a major commercial real estate operator, Apsys (see page 31). Lastly, GECINA plans to build 8,281 sq.m. of offices and 2,190 sq.m. of stores at 122, avenue du Général Leclerc in Boulogne. Very close to major development projects in the western suburbs (restructuring of the Pont de Sèvres intersection, development of the site of the former Renault automobile plant), the operation would increase the Group s real estate holdings at this address to almost 20,000 sq.m. of offices and stores. Designed by the architectural firm of ARTE Charpentier et Associés, the project was granted a building permit in February Delivery is scheduled for The preliminary investment is estimated at 34.0 million euros for an estimated gross yield of more than 8.5%. All of the Group s development projects are major relays of growth from 2004 to 2007, representing a total of 90,000 sq.m. and a potential of additional rental income estimated at 27.0 million euros. 29

32 Financial occupancy rate of commercial properties (%) 9, avenue de Paris Vincennes Good resistance of rental activities In 2003, the GECINA Group s rental income from commercial properties totaled million euros, up 5.0% from GECINA-SIMCO s 2002 pro forma commercial rental income. For the first time in 2003, commercial rental transactions accounted for more than 50% of the Group s rental income. Excluding properties for sale and on a constant basis, rent revaluation stood at 3.1%. Despite adjustments to market rental prices, the Group s re-letting rates increased by 18.2% compared with the levels in the previous leases. Re-let properties represented 36,720 sq.m. in For example, 7,899 sq.m. at 14, boulevard Général Leclerc in Neuilly-sur-Seine were re-let for euros sq.m./year (excluding VAT and operating costs), representing an increase of 21.5% compared with the previous rent. The Group also rented 2,950 sq.m. at 55, avenue de Colmar in Rueil-Malmaison for euros sq.m./year (excluding VAT and operating costs), representing an increase of 10.1%. GECINA s former headquarters at 2 ter, boulevard Saint-Martin, Paris 10 th, rapidly found a renter for their 6,300 sq.m. at euros sq.m./year (excluding VAT and operating costs). In addition, all of the 2,164 sq.m. at 12, rue de Torricelli, Paris 17 th, were rented for euros sq.m./year (excluding VAT and operating costs). In a similar fashion, all of the 1,500 sq.m. in the restructured building at 9, avenue de Paris in Vincennes was rented for an average of euros sq.m./year (excluding VAT and operating costs). Following the market, vacancy rates increased slightly in The financial vacancy rate stood at 5.1% in December 2003, compared with 3.7% in December The physical vacancy rate was 3.8% in December 2003, while the rate for Ile-de-France leveled off at 6.5%. In 2003, GECINA s reversionary potential rental income, the gap between market prices and rents in the leases, declined owing to new portfolio rentals and adjustments in the rental market. This market was, nevertheless, estimated at 16.7 million euros as of December 31, 2003, over the next four years provided that the current level of market rents is maintained. 30

33 Growth in commercial rental income on a constant basis and excluding properties for sale n.s (%) 23-29, rue de Châteaudun Paris Beaugrenelle mall: a landmark project This potential will be liberated as leases expire, are broken or are renewed. Leases expiring in 2004 represent 48,266 sq.m. with an average rent of euros sq.m./year (excluding VAT and operating costs), versus a market rent of euros sq.m./year (excluding VAT and operating costs). This estimate was also conducted for 2005, 2006 and 2007 on a lease to lease basis. Leases will expire in the next three years for 82,435 sq.m., 80,655 sq.m. and 102,855 sq.m., respectively, with an average rental price of euros, euros and euros sq.m./year (excluding VAT and operating costs), compared with a market rental price of euros, euros and euros sq.m./year (excluding VAT and operating costs). After consulting the main French commercial real estate operators, GECINA joined forces with Asys, Euris and Francarep in January 2003 to restructure and give new life to the Beaugrenelle mall. The 50%-50% joint venture was formed through the sale of 50% of the shares of SCI Beaugrenelle, which owns the mall. The project involves the complete architectural and technical renovation of the site with an extension to 40,000 sq.m. An architectural firm was selected after competing projects were submitted in April The next step is to apply to the competent local authorities for the building permit and the other required authorizations. Completion is scheduled for The investment will total 115 million euros and is designed to meet the objective of a gross yield of more than 7.5%. 31

34 Commercial properties comprising 929,621 sq.m. of offices and stores, 832,933 sq.m. of which were in operation as of December 31, Excellent locations with 285,028 sq.m. in the first, second, eighth, ninth, sixteenth and seventeenth arrondissements, and 242,596 sq.m. in the western suburbs (Boulogne, Courbevoie, Levallois, etc.). Commercial properties (in operation as of December 31, 2003) PARIS 428,940 sq.m. PARIS REGION 313,916 sq.m. LYONS 86,005 sq.m. XVIII th arrdt 6,448 sq.m. OTHER 4,072 sq.m. XVII th arrdt 33,360 sq.m. XIX th arrdt 7,750 sq.m. VIII th arrdt 128,933 sq.m. IX th arrdt 27,852 sq.m. X th arrdt 9,682 sq.m. XVI th arrdt 18,647 sq.m. VII th arrdt 9,147 sq.m. II nd arrdt 46,589 sq.m. III rd arrdt I st arrdt 29,647 sq.m. IV th arrdt 603 sq.m. 2,464 sq.m. XI th arrdt 2,549 sq.m. XX th arrdt 1,041 sq.m. XV th arrdt 53,613 sq.m. VI th arrdt 14,350 sq.m. V th arrdt 158 sq.m. XII th arrdt 20,836 sq.m. XIV th arrdt 11,694 sq.m. XIII th arrdt 3,576 sq.m. 32

35 Geographic breakdown of commercial properties in operation as of December 31, 2003 Breakdown of commercial properties in operation by type as of December 31, % 1.5 % 2.0 % 1.0 % 31.4 % 66.4 % 29.3 % 19.2 % 20.0 % 69.2 % 15.5 % 63.3 % 15.5 % 63.5 % % of rental income % of revalued block value 1 % of rental income % of revalued block value 1 Paris Paris region Lyons 1 On the basis of block valuation appraisals, net selling prices, of real estate assets. After Haussmann-style Miscellaneous Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company 75 Primarily commercial properties in operation Paris 1 st 7, place de Valois - 11, rue des Bons-Enfants ,028 1,028 GECITER 55, boulevard de Sébastopol ,340 GECINA 10/12, place Vendôme ,823 8,823 SIF 16, rue Duphot ,405 1,405 GECINA 8/10, rue Villedo ,366 1,366 GECITER 1, boulevard de la Madeleine ,828 2,376 SIF 3/5, boulevard de la Madeleine ,516 13,516 SIF Paris 2 nd 35, avenue de l Opéra - 6, rue Danielle-Casanova ,739 2,284 GECITER 64, rue Tiquetonne - 48, rue Montmartre ,484 5,719 10,203 GECINA 26/28, rue Danielle-Casanova ,130 1,382 GECITER 36, rue des Jeûneurs ,205 1,835 GECITER 5, rue de Marivaux ,420 1,420 GECITER 3, rue du Quatre-Septembre ,094 1,437 GECINA 10, rue du Quatre-Septembre 79, rue de Richelieu - 1, rue Ménars ,555 2,660 GECITER 120, rue Réaumur ,198 1,198 GECITER 6 bis, rue Bachaumont ,000 1,092 2,092 GECINA 4, rue de la Bourse ,952 4,775 SAS FEYDEAU- BOURSE 38, rue des Jeûneurs ,617 3,924 SCI du 38 rue des JEUNEURS 37, boulevard des Capucines GECINA 3, place de l Opéra ,591 4,591 SCI TERNES- OPERA 31/35, boulevard des Capucines ,753 5,753 SCI CAPUCINES 5, boulevard Montmartre ,342 6,135 7,477 SCI du 5 bld MONTMARTRE 29/31, rue Saint-Augustin ,805 5,250 SCI SAINT- AUGUSTIN 33

36 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Paris 3 rd 4, rue Beaubourg ,329 2,329 GECITER Paris 6 th 77/81, boulevard Saint-Germain ,141 14,141 SCI 77,81 bld ST GERMAIN Paris 7 th 3/7, rue de Monttessuy ,450 8,547 SCI MONTTESSUY Paris 8 th 151, boulevard Haussmann ,271 2,085 3,356 GECITER 153, boulevard Haussmann ,021 4,687 GECITER 155, boulevard Haussmann ,676 4,125 GECITER 22, rue du Général-Foy ,579 2,612 GECITER 50, rue des Mathurins GECITER 43, avenue de Friedland - rue Arsène-Houssaye ,672 1,672 GECITER 31, rue d Amsterdam ,335 2,095 GECINA 57, avenue Franklin-D-Roosevelt 24, rue du Colisée ,708 1,835 GECITER 169, boulevard Haussmann ,069 1,730 GECINA 41, avenue Montaigne - 2, avenue de Marignan ,958 2,064 GECITER 64, rue de Lisbonne - rue Murillo ,700 4,700 GECINA 59/61, rue du Rocher ,657 3,657 GECINA 10, rue Saint-Philippe-du-Roule ,468 1,468 SIF 123, rue du Faubourg-Saint-Honoré ,383 1,383 SIF 44, avenue des Champs-Elysées ,023 5,023 SIF 30, place de la Madeleine ,891 2,170 SIF 29, rue du Colisée SIF 5, rue Tronchet ,222 1,464 SIF 18/20, place de la Madeleine ,204 3,204 SA SPIPM 75, rue du Faubourg-Saint-Honoré SA HOTEL D ALBE 6, rue de Penthièvre ,795 1,795 SCI du 6 rue de PENTHIEVRE 5, rue Royale ,149 2,277 SNC rue ROYALE 7, rue Monceau ,732 GECINA 26, rue de Berri ,840 2,840 GECITER 38, avenue George-V - 53, rue François-I er ,352 1,352 GECITER 50, rue de Londres ,480 1,480 SCI SB LONDRES 66, avenue Marceau ,660 4,660 SIF 9/15, avenue Matignon ,585 9,477 12,062 SIF 24, rue Royale ,896 2,896 SIF 7, rue Tronchet NC 0 0 1,336 1,336 SIF 9, rue Tronchet NC 0 0 1,628 1,628 SIF 55, avenue George-V ,575 8,575 SA HOTEL D ALBE Parking George-V SA HOTEL D ALBE 8, avenue Delcassé ,783 9,783 SCI DELCASSE 55, rue d Amsterdam ,363 11,363 SCI du 55 rue d AMSTERDAM 162, rue du Faubourg-Saint-Honoré ,941 1,941 GECITER 89/91, rue du Faubourg-Saint-Honoré SIF 17, rue du Docteur-Lancereaux ,428 5,428 GECINA 20, rue de la Ville-l Evêque ,450 5,450 GECINA 27, rue de la Ville-l Evêque ,169 3,169 GECINA 7, rue de Bucarest ,749 2,749 GECINA Paris 9 th 21, rue Auber - 24, rue des Mathurins ,227 1,527 GECITER 44, rue Blanche ,158 2,115 GECITER 21, rue Drouot -12, rue de Provence GECITER 32, boulevard Poissonnière - 2, rue du Faubourg-Montmartre ,138 1,138 GECITER 1/3, rue de Caumartin ,608 2,874 SIF 6, rue d Amsterdam (Le VERMEER) ,771 1,771 GECINA 26/28, rue Saint-Georges ,383 3,383 SA 26,28 rue Saint-Georges 23/29, rue de Châteaudun ,968 11,968 SA 23,29 rue de Châteaudun 32, boulevard Haussmann ,050 3,050 SIF Paris 10 th 21, rue d Hauteville ,850 2,600 GECINA 2 ter, boulevard Saint-Martin - 1 ter, rue René-Boulanger ,400 6,400 GECINA 34

37 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Paris 12 th 193, rue de Bercy ,899 15,899 GECINA 58/62, quai de la Rapée (parking) S.P.L. Paris 14 th 11, boulevard Brune ,781 2,781 GECINA 37/39, rue Dareau ,857 4,857 GECINA 69, boulevard Brune - 10/18, rue des Mariniers ,221 2,221 GECINA Paris 15 th 33, avenue du Maine (Tour MAINE-MONTPARNASSE -50 th floor) ,822 1,822 GECINA 7/11, place des Cinq-Martyrs-du-Lycée-Buffon ,355 8,355 SCI SB NORD-PONT 28/28 bis, rue du Docteur-Finlay - 5, rue Sextius-Michel ,444 3,444 GECITER 31, quai de Grenelle (MERCURE) ,250 8,250 GECINA 34, rue de la Fédération ,579 6,579 GECINA Paris 16 th 43, avenue Marceau - 14, rue Bassano ,314 1,314 GECITER 100, avenue Paul-Doumer GECINA 58/60, avenue Kléber ,789 4,789 SA SADIA 28, rue Dumont-d Urville ,382 1,382 GECINA 17, rue Galilée GECITER 24, rue Erlanger ,956 5,956 SCI du 24 rue ERLANGER Paris 17 th 63, avenue de Villiers ,912 3,318 GECITER 12/12 bis, rue Torricelli ,620 2,620 GECITER 45, avenue de Clichy - 2/4, rue Hélène ,900 3,900 GECINA 32/34, rue Guersant ,175 13,175 SP2 16, rue Médéric ,338 1,338 GECINA 251, boulevard Pereire ,792 2,792 GECINA Paris 18 th 88/92, boulevard Ney ,260 6,260 GECINA Paris 19 th 43 bis/45, rue d Hautpoul ,988 3,774 GECINA 96/100, rue Petit ,185 4,185 SA PARIGEST Subtotal properties in operation Paris , , , Versailles (78000) Petite place - 7, rue Sainte-Anne ,630 1,630 GECINA Montigny-le-Bretonneux (78180) 1, avenue Niepce ,050 4,050 GECINA 5/9, avenue Ampère ,534 5,534 GECINA 4, avenue Newton ,398 4,398 GECINA 6, avenue Ampère ,204 3,204 GECINA Guyancourt (78280) 3/9, rue Hélène-Boucher ,242 10,242 GECINA Puteaux (Paris-La Défense) (92000) La Défense - Tour Franklin ,637 12,637 GECINA La Défense - Tour Atlantique ,376 6,376 GECINA La Défense - Tour Franklin ,559 4,559 GECINA Courbevoie (Paris-La Défense) (92052) Le Lavoisier - 4, place des Vosges ,473 8,473 GECITER Boulogne-Billancourt (92100) 40, rue de l Est ,024 2,024 GECINA 37/39, rue Marcel-Dassault ,343 1,343 GECINA 73/77, rue de Sèvres ,790 5,790 GECINA 218, boulevard Jean-Jaurès ,293 1,293 GECINA 32/36, rue de Bellevue ,006 4,006 GECINA 220/224, boulevard Jean-Jaurès ,986 1,986 GECINA 50, rue Reinhardt - 51, rue Diaz ,120 1,120 GECITER 52, rue Belle-Feuille ,066 1,066 GECITER 150, route de la Reine ,666 4,666 SCI du 150 route de la REINE 148, route de la Reine ,605 4,605 SCI du 150 route de la REINE 35

38 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company 42/44, rue de Bellevue ,121 4,121 SCI SEVRES-BELLEVUE 150, rue Gallieni - rue Henri-Martin GECINA 38, rue Vauthier ,181 3,181 GECINA Clichy (92110) 98, boulevard Victor-Hugo ,361 5,361 GECINA 6, boulevard du Général-Leclerc ,728 7,728 GECINA Issy-les-Moulineaux (92130) 12, boulevard des Iles ,370 5,370 GECINA Suresnes (92150) 10, rue du Chevreul ,680 2,680 GECINA Vanves (92170) 66/68, rue Jean-Bleuzen ,960 2,960 GECINA 17/19, rue Ernest-Laval ,518 1,518 GECINA Neuilly-sur-Seine (92200) 159/161, avenue Achille-Peretti 17, rue des Huissiers ,830 3,830 GECITER 159, avenue Charles-de-Gaulle ,894 3,894 GECITER 12/16, boulevard du Général-Leclerc 35, rue du Pont ,867 16,408 GECINA 157, avenue Charles-de-Gaulle ,605 5,605 GECITER 6 bis/8, rue des Graviers ,544 4,544 GECINA 195, avenue Charles-de-Gaulle ,338 1,338 GECINA 4, allée Ferrand GECINA 163/165, avenue Achille-Peretti ,536 2,536 GECINA 163/165, avenue Charles-de-Gaulle ,680 1,680 GECINA La Défense (92215) 47, rue Louis-Blanc ,609 7,609 GECINA Levallois-Perret (92300) 97, rue Anatole-France ,379 1,379 GECINA 109/113, rue Victor-Hugo ,459 4,459 GECINA 68 bis, rue Marjolin ,640 3,640 GECITER 16, rue Paul-Vaillant-Couturier ,078 2,078 GECINA 101/109, rue Jean-Jaurès ,174 7,174 GECINA 2/4, quai Michelet ,960 32,960 SNC MICHELET 35, rue d Alsace ,800 1,800 GECINA 55, rue Deguingand ,525 4,525 SA PARIGEST Meudon-la-Forêt (92360) 2/4, rue Andras-Beck - 5/7, rue Jeanne-Braconnier ,315 6,315 GECINA Rueil-Malmaison (92500) 8, rue Henri-Becquerel - 6, rue E. and A.-Peugeot ,500 4,500 GECINA 55/57, avenue de Colmar 97/101, avenue Victor-Hugo ,950 2,950 GECINA Cours Ferdinand-de-Lesseps (VINCI 1) ,663 25,663 SP1 Place de l Europe (VINCI 2) ,786 9,786 SP Montreuil (93100) 46, rue de Lagny - 88/92, rue Robespierre ,218 1,218 GECINA Noisy-le-Grand (93160) 4/10, la Courtine-Mont-d Est ,675 4,675 GECINA 4/10, la Courtine-Mont-d Est ,818 4,818 GECINA Bagnolet (93170) 59, rue Charles-Delescluze GECINA Créteil (94000) 9/11, rue George-Enesco ,054 9,054 GECINA Vincennes (94300) 5/7, avenue de Paris ,579 3,579 GECINA 9, avenue de Paris (Clinique du CHATEAU) ,375 2,375 GECINA Subtotal properties in operation Paris region , ,583 Subtotal properties in operation Paris + Paris region , , ,535 36

39 Department City Address or building name Year Saint-Génis-Pouilly (01630) Technoparc GESSIEN - Bâtiment E GECINA Technoparc - Bâtiment E INVESTIBAIL TRANSACTIONS Rochegude (26790) Château de ROCHEGUDE ,916 1,916 INVESTIBAIL TRANSACTIONS Lyon 2 nd 27, quai Saint-Antoine GECINA 28, quai Saint-Antoine GECINA 29/30, quai Saint-Antoine ,373 2,833 GECINA Lyon 3 rd 19/21, cours de la Liberté ,773 2,322 GECINA 74, rue de Bonnel ,950 1,950 GECINA 21, rue François-Garcin ,848 1,848 GECINA 19, rue de la Villette ,903 3,903 GECINA Lyon 7 th 174, avenue Jean-Jaurès 1950/70/ ,783 3,783 GECINA 174/188, avenue Jean-Jaurès 42, rue Pré-Gaudry 1950/70/ ,078 12,078 GECINA 75, rue de Gerland 1850/1980/ ,834 21,834 GECINA 81/85, rue de Gerland 1850/1980/ ,635 1,635 GECINA 12, cours Gambetta 5/6, rue Basse-Combalot ,377 INVESTIBAIL TRANSACTIONS Villeurbanne (69100) 63, avenue Roger-Salengro ,136 2,136 GECINA 1, avenue Paul-Kruger - 51, rue Emile-Decorps ,440 2,440 GECINA Ecully (69130) 6, chemin Moulin-Carron GECINA Irigny (69540) Le BROTEAU ,400 10,400 GECINA Génas (69740) Rue de Genève ,565 5,565 GECINA Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Subtotal properties in operation Lyons + Lyons region 29 1,697 76,880 78, Nantes (44000) 49, quai Malakoff ,239 1,239 SCI 16 VE INVESTISSEMENT Arras (62004) 37, rue Saint-Aubert (SAINT-JEAN) ,833 2,833 GECINA Subtotal properties in operation other regions 0 0 4,072 4,072 General total properties in operation French provinces 29 1,697 80,952 82,649 General total properties in operation , , ,184 Various sales programs 75 Paris 12 th 173 bis, rue de Charenton (SAINT-ELOI II) GECINA 173, rue de Charenton (SAINT-ELOI I) GECINA Paris 13 th 84, boulevard Massena (Tour BOLOGNE) GECINA Paris 19 th 9/13, rue Delouvain GECINA Total various sales programs Paris 0 0 1,153 1,153 37

40 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company 91 Longjumeau (91160) 162, rue du Président-Mitterrand GECINA Total various sales programs Paris region Lyon 2 nd 26, quai Saint-Antoine - 56, rue Mercière GECINA Total various sales programs Lyons + Lyons region Montpellier (34000) Avenue Saint-Clément - 2/13, square Murillo GECINA Total various sales programs other regions Total various sales programs ,402 2,802 Total GECINA Group primarily commercial assets , , ,986 Under construction Paris 2 nd 122, rue Réaumur - 7/9, rue Saint-Joseph ,188 3,574 GECITER 14/16, rue des Capucines ,570 10,570 GECITER Paris 9 th 16, boulevard Montmartre ,457 3,250 4,707 GECINA Paris 15 th 16, rue Linois (Centre Commercial BEAUGRENELLE) ,004 13,004 SCI BEAUGRENELLE Lyon 3 rd 74/78 and 82, rue de la Villette (Part-Dieu) ,087 13,087 GECITER Boulogne-Billancourt (92100) 122, avenue du Général-Leclerc ,965 10,965 SA PARIGEST Total buildings under construction 42 1,843 54,064 55, La Rente Immobilière Paris 7 th 1/1 bis, avenue de Villars ,152 2,152 LRI 5, avenue de Villars LRI Paris 8 th 87/89, rue La Boétie LRI 9, rue Christophe-Colomb LRI 4, boulevard Malesherbes ,630 LRI 11, place de la Madeleine ,087 1,835 LRI Paris 9 th 2/6, rue de la Chaussée-d Antin ,256 5,723 LRI Paris 15 th 104/104 bis, rue Saint-Charles ,649 1,649 LRI Paris 16 th 25, rue Jean-Giraudoux ,043 1,043 LRI Paris 17 th 62, rue Ampère (parking) LRI 69, rue Ampère ,540 1,540 LRI 5, rue Alfred-Roll (parking) LRI 38

41 Department City 92 Address or building name Year Nanterre 72/78, avenue Georges-Clemenceau ,490 2,490 LRI Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Total La Rente Immobilière 22 1,855 17,666 19,521 Lands Lyon 3 rd 72/86, avenue Félix-Faure 106, boulevard Vivier-Merle ZAC LABUIRE (R.FONCIERE) ,815 20,815 GECINA Lyon 7 th 168/172, rue de Gerland (GERLYON) (R.FONCIERE) A.I.C Boulogne-Billancourt 122, avenue du Général-Leclerc SA PARIGEST Total lands ,815 20,815 Total GECINA Group , , ,229 Paris 428,940 Commercial share of primarily residential assets 60,150 Commercial share of primarily commercial assets 368,790 Paris region 313,916 Commercial share of primarily residential assets 9,874 Commercial share of primarily commercial assets 304,042 Lyons 86,005 Commercial share of primarily residential assets 9,125 Commercial share of primarily commercial assets 76,880 Other regions 4,072 Commercial share of primarily residential assets 0 Commercial share of primarily commercial assets 4,072 Commercial properties in operation as of December 31, ,933 Various sales programs as of December 31, ,144 Commercial share of primarily residential assets 1,742 Commercial share of primarily commercial assets 2,402 Other 92,545 Total Group commercial properties as of December 31, ,621 Commercial share of primarily residential assets 80,891 Commercial share of primarily commercial assets 848,731 39

42 Residential real estate In 2003, GECINA pursued an active policy to improve the profitability of its residential properties, which present the advantage of generating low-risk rental income. 69 sq.m. 70% 5,339 was average surface area of GECINA apartments as of December 31, of the value of GECINA residential properties in operation as of December 31, 2003, in Paris. GECINA apartments sold in

43 Rationalization stepped up 39, rue de Vouillé Paris 41

44 Average monthly rents for private rental real estate in France as of January 1, 2003 (in euro/sq.m.) Total French private New rental real estate rentals Paris Inner Paris suburbs Outer Paris suburbs French provinces Source: OLAP 21-31, rue des Côtes Maisons-Laffitte Better balance in the rental market In line with the trend first observed at the end of 2002, the year 2003 was characterized by a slight lessening of rental market pressure as demand contracted. The decline in interest rates combined with longer loan maturities and the opinion that the price of new rentals was too high resulted in the partial transfer of rental demand to the acquisition market. At the same time, the tax incentive for private rental investment met with growing success. The Besson tax break motivated more than 30% of sales of new apartments in 2001 and almost 40% in 2002, and the Robien version was expected to generate slightly more than 50% of sales in The market has thus entered a more balanced phase characterized in particular by slower growth in average rents for new occupants. Market professionals also noted the reappearance of a hierarchy of rental values based on the quality of properties in a given sector, a phenomenon that had disappeared in the last few years. The reduction in corporate demand to house executive managers on mobility assignments made it more difficult to rent large apartments in buildings of grand standing. Although the data for 2003 is not yet available, professionals agree that the increase in rental prices should stabilize. This trend, which takes into account current leases, new rentals and lease renewals, also integrates the rise in the construction cost index, on which rent adjustments are calculated over the life of the lease. In 2003, this index was up 2.8%, after an increase of almost 3.5% in According to the most recent statistics published on Paris rentals, the average rent for all private rental properties in Paris as of January 1, 2003, increased by 4.9% in a year to 12.5 euros per sq.m. At 15.0 euros/ sq.m./month, Paris rents increased the most (+5.2%). Close suburbs (11.7 euros/sq.m./month, + 4.8%) and outlying suburbs (9.8 euros/sq.m./month, + 4.4%) also reported gains at a slightly less sustained pace. Average rents remained twice as high in Paris and in the neighboring suburbs as in the rest of France, while the gap between rents in the more distant Paris suburbs and in the rest of France was approximately a third 2. The general rise in rental prices was due to the significant hike in re-let rentals. Sector statistics show that the monthly rent of new occupants as of January 1, 2003 was 16.8 euros/sq.m., up 11.9% in a year. In both the close and outlying suburbs of Paris, the annual increase was, respectively, 10.4% and 7.4% at 13.3 euros/sq.m./month and 10.8 euros/sq.m./month. Outside of Paris, the increase in new rental prices was not so high at 5.5% (7.5 euros/sq.m./month). 1 Sources: FNPC and Crédit Agricole s economic research department. 2 Source: Crédit Agricole s economic research department. 42

45 8-12, rue Pierre-Lhomme Courbevoie Stabilization in the sales market? Once again proving the forecasters wrong, 2003 was a good year with 615,700 real estate transactions involving older buildings in France, versus 627,100 the previous year 1. Sales of new housing units were up 21.0% from 2002 to 103,000 dwellings in The number of available new properties for sale contracted, falling in a year from 48,100 to 37,500, the lowest level recorded in the period The average time it takes to sell new apartments decreased from seven to four months, and for new individual houses from seven to five months, also a historical low 2. According to the Banque de France, annual growth in outstanding housing loans was 9.9% in December 2003, compared with 8.0% in December Many factors encouraged residential investment in 2003: favorable borrowing conditions, arbitrage between rental and purchase decisions, uncertainty in the financial markets, etc. In Ile-de-France, the volume of sales for all categories of real estate increased by 2.4% from one year to the next to 234,181 transactions, according to the notaries in Ile-de-France. This result can mainly be attributed to the outlying suburbs (+ 4.8%) and to a lesser extent to the close suburbs (+ 1.5%), while Paris stagnated (- 0.4%). The market for free apartments in older buildings in Ile-de-France totaled 111,325 transactions, down 0.8% from In Paris and its close suburbs, the number of transactions declined (- 2.7% to 36,043 sales and - 2.5% to 43,469 sales) 2. This migration of demand from the capital to neighboring municipalities and from the close suburbs to more outlying areas resulted in greater annual rises in prices in the region than in Paris itself (+ 11.1% in the capital versus % in the close suburbs and % in the outlying suburbs) 4. In France taken as a whole, prices of existing housing rose 14.2% in 2003, representing an increase of 59.2% since Paris remained the most expensive department with an average price of 3,989 euros/sq.m. in the fourth quarter of The sixth arrondissement remained the most expensive at 6,265 euros/sq.m., followed by the seventh (5,771 euros/sq.m.). Conversely, the least expensive arrondissements were the nineteenth and the twentieth at 2,885 euros/sq.m. and 3,114 euros/sq.m., respectively. The average price per square meter of existing apartments in Hauts-de-Seine was 2,983 euros in the fourth quarter of 2003, in Saint-Denis 1,647 euros and in Val-de-Marne 2,337 euros. Prices in outlying suburbs came close or exceeded those in the close suburbs: 2,403 euros/sq.m. in Yvelines, 1,610 euros/sq.m. in Seine-et-Marne, 1,602 euros/sq.m. in Essonne and 1,552 euros/sq.m. in Val d Oise 3. In the fourth quarter of 2003, the rise in the price of existing apartments slowed throughout Ile-de-France, and prices even declined in several arrondissements in Paris (seventh, ninth, tenth and fifteenth). Some observers think the market has entered a period of stabilization. 1 Source: Fédération Nationale de l Immobilier (FNAIM). 2 Source: Ministère de l Equipement. 3 Source: Notaires d Ile-de-France. 4 Source: Indices Notaires INSEE. 43

46 Growth in residential rental income excluding properties for sale and on a constant basis , rue Paul-Rivet Le Plessis-Robinson (%) A splintered rental market According to the most recent French census (INSEE, March 1999), 23.8 million principal residences were surveyed in France and 4.5 million in Ile-de-France. Principal residences in France that are rental properties totaled 9.7 million dwellings (40.7%), of which 5.4 million (55.7%) belonged to the private sector. In Paris and the region, the number of rented apartments was 2.3 million (51.1%), of which 1.1 (47.8%) were non-social housing. Institutional investors and real estate firms in particular took advantage of the high market prices to dispose of residential properties. Their role among private players in the free rental sector has therefore regularly declined. Although it is France s largest real estate firm, GECINA s share in this sector is not significant. Residential real estate As of December 31, 2003, the GECINA Group s properties were estimated at 3.2 billion euros on the basis of a block appraisal, and at 3.9 billion euros on the basis of a unit appraisal. For a total area of 1,319,089 sq.m., residential holdings at the end of 2003 comprised 19,044 apartments with an average surface area of 69 sq.m. There were 16,856 apartments in Paris and its region, 1,910 in Lyons and the remainder in the rest of France and for sale. Including residences built between 1965 and 1975, Haussmann-style buildings and more recent constructions, GECINA s residential properties appeal to a wide range of clients, in terms of both the services provided and the price. In order to ensure that its retail offer remains competitive, and to optimize the value and yield of each of its assets, the Group is constantly focused on improving its properties. Works involve building maintenance (regular and major repairs such as cleaning the façade, heating systems, waterproofing, etc.) as well as home improvements (painting, plumbing, flooring, etc.), apartment renovation (modernization of bathrooms and kitchens, upgrading electrical systems, etc.) and enhancing and restructuring building functionalities. Finally, in 2003, GECINA continued to create new rental spaces by restructuring attics and maid rooms to make 1,351 sq.m. into apartments. Satisfactory rental activity Residential rental income stood at million euros, representing 47.3% of the Group total. In 2003, GECINA s profitable rent indexing system with quarterly indexes of the cost of construction based on the last four quarters greater than 2%, new rentals, and to a lesser degree lease renewals generated significant growth of 4.3% in residential rental income on a constant basis and excluding properties for sale. Almost 2,400 apartments were re-let in Average re-let rental rates remained high during the period at 17.6 euros/sq.m./month in Paris, 20.0 euros/sq.m./month for Haussmann-style apartments and 12.9 euros/sq.m./ month in the Paris region. Compared with the average rent of former occupants, the average for new rental was up 14.8% in Paris, 20.8% for Haussmann-style apartments and 10.6% in the Paris region. The financial occupancy rate of residential properties in operation stood at 97.3% in December 2003, while the turnover rate for 12 months on a sliding scale was 14.2%. 44

47 Financial occupancy rate of the GECINA Group s residential assets (%) Average monthly rents of the GECINA Group s residential assets as of January 1, 2004 (in euro/sq.m.) Total New GECINA rentals Paris Paris region Lyons , rue Sylvain-Vigneras Garches Accelerated drive to optimize real estate assets Respecting its commitments, GECINA significantly stepped up its drive to improve the yield on its residential property portfolio and to harness the potential this branch represents for the creation of value. This arbitrage policy generated sales of 1,522 million euros during the year, compared with 335 million euros in These sales represented a total of 508,326 sq.m., with 436,002 sq.m. of residential space and 5,339 apartments. The net return on the properties sold was 4.5%. Block sales concerned 120 buildings with a total area of 458,388 sq.m., with 389,582 sq.m. of residential space (4,688 apartments). Unit sales involved 651 apartments with a total area of 49,938 sq.m. and totaled 135 million euros. This major program was in large measure (1,138 million euros) carried out within the framework of the agreements signed in October 2002 with the American real estate investment fund Westbrook Partners. On May 28, 2003, GECINA sold Westbrook 47 primarily residential complexes representing 1,965 apartments for 563 million euros. The second part of the agreement was finalized on July 31, 2003, with the sale of 50 buildings that had previously belonged to SIMCO and its subsidiaries. This 575 million euro sale represented a total of 138,803 sq.m., with 116,320 sq.m. of residential space and 1,151 apartments. These two disposals were rounded off by the sale of three buildings in the fourth quarter for 28 million euros. The net yield of each of the sold properties was 4.3%. The buildings put on the market were selected on the basis of a study of the yield each produced and an estimate of the investment to be made. Because of their high intrinsic value, low turnover rate and more expensive maintenance costs, Haussmann-style buildings generate a lower yield than the Group s real estate assets in general. They therefore made up a large percentage of the properties sold in 2003, along with mature constructions. Haussmann-style buildings now account for 14.2% of rental income in 2003, and 17.7% of the value of residential real estate in operation as of December 31, 2003, compared, respectively, with 19.9% and 20.4% for recent constructions, and 65.9% and 61.9% for assets built between 1965 and The first effects of the 2003 sales program were felt during the year. The gross yield of residential properties went from 6.0% to 6.2%; in spite of a rise in the block value of residential real estate that exceeded the increase in rental income. With constant market values and on the basis of appraisals at the end of 2002, residential properties produced a yield of 6.0% before sales and of 6.5% after sales. Since the beginning of 2004, GECINA has launched a new arbitrage program for Haussmann-style apartments located in Paris with a yield of less than 5%. This 500 million euro programs involves the unit sale of apartments over the next few years. By selling individual apartments, the Group hopes to glean 100 million euros in The share of residential properties, which accounted for 47.3% of rental income in 2003 versus 52.6% in 2002, should continue to decline in the next few years. GECINA nevertheless intends to maintain a significant position in residential property sector (35% of rental income), which is less sensitive to changes in the economic environment. 45

48 40, rue d Artois Paris Block sales of primarily residential assets in 2003 Sales of former GECINA assets to Westbrook Paris 10, rue du Mont Thabor Paris 1 st (998 sq.m. residential and 569 sq.m. commercial) 25, rue du Montparnasse Paris 6 th (1,963 sq.m. residential) 16, rue Pérignon Paris 7 th (1,744 sq.m. residential and 102 sq.m.commercial) 42, boulevard Raspail Paris 7 th (1,058 sq.m. residential and 220 sq.m. commercial) 64/66, rue des Saints-Pères Paris 7 th (793 sq.m. residential and 146 sq.m. commercial) 29, avenue Franklin-D.-Roosevelt Paris 8 th (1,538 sq.m. residential ) 12, avenue Franklin-D.-Roosevelt Paris 8 th (1,823 sq.m. residential and 1,202 sq.m. commercial) 37, rue du Général-Foy Paris 8 th (2,112 sq.m. residential and 515 sq.m. commercial) 55, boulevard Malesherbes / 26, rue de Laborde Paris 8 th (993 sq.m. residential and 262 sq.m. commercial) 38/42, avenue de Wagram Paris 8 th (5,577 sq.m. residential and 952 sq.m. commercial) 48, boulevard Malesherbes / 22, rue de la Bienfaisance Paris 8 th (2,356 sq.m. residential and 809 sq.m. commercial) 1/7, square du Roule / , Faubourg-Saint- Honoré Paris 8 th ( sq.m. residential 2,556 sq.m. commercial) 47, rue de Berri Paris 8 th (1,336 sq.m. residential and 386 sq.m. commercial) 195, rue du Faubourg-Saint-Honoré Paris 9 th (2,033 sq.m. residential and 338 sq.m. commercial) 27, rue Ballu Paris 9 th (2,304 sq.m. residential and 151 sq.m. commercial) 89, boulevard Voltaire Paris 11 th (1,489 sq.m. residential and 405 sq.m. commercial) 93, boulevard Voltaire Paris 11 th (1,644 sq.m. residential and 294 sq.m. commercial) 2, rue Charles-Baudelaire Paris 12 th (1,111 sq.m. residential and 145 sq.m. commercial) 8/10, rue Jules-César / boulevard de la Bastille Paris 12 th (3,934 sq.m. residential and 708 sq.m. commercial) 39/41, rue de la Glacière Paris 13 th (3,459 sq.m. residential) 51/57, rue Froidevaux / 6, rue Deparcieux Paris 14 th (3,290 sq.m. residential) 119, rue d Alésia Paris 14 th (933 sq.m. residential and 337 sq.m. commercial) 47, rue Froidevaux Paris 14 th (3,109 sq.m. residential) 11 bis, rue César-Franck Paris 15 th (1,614 sq.m. residential) 112, rue Michel-Ange Paris 16 th (1,614 sq.m. residential and 583 sq.m. commercial) 49/51, rue Erlanger Paris 16 th (3,232 sq.m. residential) 60, rue Michel-Ange Paris 16 th (1,073 sq.m. residential and 74 sq.m. commercial) 1, avenue Paul-Doumer / 49, rue Vineuse Paris 16 th (2,432 sq.m. residential and 79 sq.m. commercial) 66, rue de la Pompe Paris 16 th (1,131 sq.m. residential and 943 sq.m. commercial) 146, rue de la Pompe Paris 16 th (1,310 sq.m. residential and 108 sq.m. commercial) 58, rue Michel-Ange Paris 16 th (1,325 sq.m. residential) 14/16, avenue Théophile-Gautier Paris 16 th (3,703 sq.m. residential and 1,130 sq.m. commercial) 4, rue de Galliéra Paris 16 th (1,975 sq.m. residential and 1,298 sq.m. commercial) 155, rue de Courcelles Paris 17 th (2,699 sq.m. residential and 531 sq.m. commercial) 118, boulevard Malesherbes Paris 17 th (2,027 sq.m. residential and 36 sq.m. commercial) 12, rue Poncelet Paris 17 th (1,069 sq.m. residential and 680 sq.m. commercial) 21, rue Poncelet Paris 17 th (1,596 sq.m. residential and 85 sq.m. commercial) 14, avenue Carnot Paris 17 th (952 sq.m. residential and 297 sq.m. commercial) 63 bis, rue Damrémont Paris 18 th (1,432 sq.m. residential and 200 sq.m. commercial) 110, rue Marcadet / 67, rue du Mont-Cenis Paris 18 th (2,389 sq.m. residential and 220 sq.m. commercial) 15/17, rue Henri-Ribière / place des Fêtes Paris 19 th (10,034 sq.m. residential and 1,266 sq.m. commercial) 2/10, rue de Joinville / 3, quai de l Oise Paris 19 th (4,662 sq.m. residential and 394 sq.m. commercial) Paris region 7, 9/11 and 17, rue Gallieni / 11, rue Henri-Martin Boulogne Billancourt (9,399 sq.m. residential) 41, rue Greffülhe / 122, rue de Villiers Levallois-Perret (2,903 sq.m. residential) 131, avenue du Maréchal-Foch Châtou (10,355 sq.m. residential and 236 sq.m. commercial) 18/20, rue Félicien-David Saint-Germain-en-Laye (1,749 sq.m. residential) 40/42 ter, rue des Ursulines / 2 bis-2 ter, rue de la Rochejacquelain Saint-Germain-en-Laye (13,613 sq.m. residential) 16 bis, rue de Neuilly / rue Louis-Xavier-de-Ricard Fontenay-sous-Bois (7,006 sq.m. residential) 1, rue de Salverte / 34, avenue du Maréchal Joffre / 14, rue Saint-Laurent Chantilly (6,599 sq.m. residential and 579 sq.m. commercial) Sales of former SIMCO assets to Westbrook Paris 7/9, rue des Arquebusiers Paris 3 rd (9,787 sq.m. residential and 3,815 sq.m. commercial) 1/5, rue Palatine Paris 6 th (3,720 sq.m. residential and 729 sq.m. commercial) 16, rue Stanislas Paris 6 th (1,546 sq.m. residential and 144 sq.m. commercial) 3, rue du Regard Paris 6 th (1,485 sq.m. residential and 77 sq.m. commercial) 91, rue du Cherche-Midi Paris 6 th (1,950 sq.m. residential) 91 bis, rue du Cherche-Midi Paris 6 th (1,311 sq.m. residential and 364 sq.m. commercial) 46

49 6-8, rue Meissonnier Paris 7-7 bis, rue Saint-Gilles Paris 95, rue de Rennes Paris 6 th (2,172 sq.m. residential and 188 sq.m. commercial) 18, rue Rousselet Paris 7 th (1,974 sq.m. residential) 23, rue de Bourgogne Paris 7 th (2,980 sq.m. residential and 425 sq.m. commercial) 25, rue de Bourgogne Paris 7 th (2,581 sq.m. residential and 355 sq.m. commercial) 199/201, rue de Grenelle Paris 7 th (8,632 sq.m. residential and 1,185 sq.m. commercial) 191/195, rue de l Université Paris 7 th (11,885 sq.m. residential and 463 sq.m. commercial) 11, rue Murillo Paris 8 th (1,079 sq.m. residential) 4, rue Saint-Philippe-du-Roule Paris 8 th (1,367 sq.m. residential and 249 sq.m. commercial) 6, rue Saint-Philippe-du-Roule Paris 8 th (1,266 sq.m. residential) 8, rue Saint-Philippe-du-Roule Paris 8 th (809 sq.m. residential and 171 sq.m. commercial) 131, rue du Faubourg-Saint-Honoré Paris 8 th (1,578 sq.m. residential and 382 sq.m. commercial) 3, rue du Commandant-Rivière Paris 8 th (674 sq.m. residential and 242 sq.m. commercial) 5, rue du Commandant-Rivière Paris 8 th (888 sq.m. residential and 310 sq.m. commercial) 6, rue du Commandant-Rivière Paris 8 th (1,125 sq.m. residential and 303 sq.m. commercial) 7, rue du Commandant-Rivière Paris 8 th (686 sq.m. residential and 338 sq.m. commercial) 8, rue du Commandant-Rivière Paris 8 th (762 sq.m. residential and 186 sq.m. commercial) 10, rue du Commandant-Rivière Paris 8 th (1,407 sq.m. residential and 426 sq.m. commercial) 12, rue du Commandant-Rivière Paris 8 th (974 sq.m. residential and 176 sq.m. commercial) 73, avenue Franklin-Roosevelt Paris 8 th (1,215 sq.m. residential and 541 sq.m. commercial) 24/24bis, rue de Téhéran Paris 8 th (4,268 sq.m. residential and 222 sq.m. commercial) 74/76, rue de Bercy Paris 12 th (3,524 sq.m. residential and 365 sq.m. commercial) 80, rue Michel-Ange Paris 16 th (1,196 sq.m. residential and 96 sq.m. commercial) 14, boulevard Exelmans Paris16 th (2,194 sq.m. residential and 228 sq.m. commercial) 104, avenue Victor-Hugo Paris 16 th (1,256 sq.m. residential and 246 sq.m. commercial) 106, avenue Victor-Hugo Paris 16 th (1,208 sq.m. residential and 152 sq.m. commercial) 108, avenue Victor-Hugo Paris 16 th (1,225 sq.m. residential and 136 sq.m. commercial) 2/4, avenue des Ternes Paris 17 th (3,464 sq.m. residential and 783 sq.m. commercial) 3, place des Ternes Paris 17 th (786 sq.m. residential and 147 sq.m. commercial) 5, place des Ternes Paris 17 th (4,350 sq.m. residential and 382 sq.m. commercial) 7/9, place des Ternes Paris 17 th (5,951 sq.m. residential and 1,698 sq.m. commercial) 2, rue Gounod Paris 17 th (1,535 sq.m. residential and 163 sq.m. commercial) 3, rue Gounod Paris 17 th (1,912 sq.m. residential and 108 sq.m. commercial) 4, rue Gounod Paris 17 th (2,118 sq.m. residential and 71 sq.m. commercial) 5, rue Gounod Paris 17 th (2,687 sq.m. residential) 6, rue Gounod Paris 17 th (1,963 sq.m. residential) 7, rue Gounod Paris 17 th (1,589 sq.m. residential and 301 sq.m. commercial) 8, rue Gounod Paris 17 th (2,079 sq.m. residential and 598 sq.m. commercial) 9, rue Gounod Paris 17 th (1,958 sq.m. residential and 250 sq.m. commercial) 11, rue Gounod Paris 17 th (1,739 sq.m. residential and 118 sq.m. commercial) 121, avenue de Wagram Paris 17 th (2,155 sq.m. residential and 185 sq.m. commercial) 123, avenue de Wagram Paris 17 th (1,826 sq.m. residential and 200 sq.m. commercial) Other assets sold Paris 21, rue Hérold Paris 1 st (1,058 sq.m. residential and 620 sq.m. commercial) 125, boulevard Saint-Germain Paris 6 th (1,290 sq.m. residential and 320 sq.m. commercial) 105 / 109 bis, rue de Reuilly Paris 12 th (33,036 sq.m. residential and 1,259 sq.m. commercial) 6/8, rue Dulac Paris 15 th (2,628 sq.m. residential and 357 sq.m. commercial) 45, rue d Alleray Paris 15 th (3,484 sq.m. residential) 39, rue Olivier-de-Serres Paris 15 th (2,270 sq.m. residential) 2, rue Lyautey Paris 16 th (1,020 sq.m. residential and 102 sq.m. commercial) 4, rue Guy-de-Maupassant Paris 16 th (1,104 sq.m. residential) 70 bis / 72, rue Botzaris 10/12, Villa des Buttes Chaumont Paris 19 th (3,151 sq.m. residential) 133 / 137 /139, rue Manin Paris 19 th (4,129 sq.m. residential and 962 sq.m. commercial) 157, boulevard Davout Paris 20 th (4,930 sq.m. residential and 244 sq.m. commercial) 80 / 84, rue des Orteaux 39, rue Rasselins Paris 20 th (5,139 sq.m. residential) France other than Paris 241, rue Dugesclin Lyon 3 rd (2,375 sq.m. residential and 309 sq.m. commercial) 245, rue Dugesclin Lyon 3 rd (2,246 sq.m. residential and 446 sq.m. commercial) 27 / 31, rue Fénelon 31, avenue de Saxe Lyon 6 th (4,900 sq.m. residential and 727 sq.m. commercial) 20, rue Robin Lyon 7 th (4,759 sq.m. residential and 372 sq.m. commercial) Parc de Chalin 8, chemin de L.-Chirpaz Ecully (12,805 sq.m. residential and 185 sq.m. commercial) 248/ /272, avenue de Grammont Tours (17,787 sq.m. residential and 1,046 sq.m. commercial) 47

50 Residential properties comprising 19,044 apartments with a surface area of 1,319,089 sq.m., of which 18,524 apartments (1,276,788 sq.m.) were in operation as of December 31, Residential properties PARIS 620,828 sq.m. 9,296 apartments (in operation as of December 31, 2003) PARIS REGION 501,456 sq.m. 7,115 apartments LYONS 143,977 sq.m. 1,837 apartments XVII th arrdt 55,834 sq.m. 587 apartments XVIII th arrdt 38,274 sq.m. 543 apartments XIX th arrdt 29,945 sq.m. 450 apartments OTHER sq.m. 276 apartments XVI th arrdt 53,683 sq.m. 653 apartments XV th arrdt 210,331 sq.m. 3,347 apartments VIII th arrdt 25,256 sq.m. 281 apartments VII th arrdt 1,765 sq.m. 19 apartments IX th arrdt 8,157 sq.m. 122 apartments II nd arrdt 10,276 sq.m. 134 apartments I st arrdt 2,389 sq.m. 26 apartments VI th arrdt 982 sq.m. 14 apartments X th arrdt 15,534 sq.m. 245 apartments III rd arrdt 2,713 sq.m. 42 apartments IV th arrdt 2,160 sq.m. 36 apartments V th arrdt 12,396 sq.m. 232 apartments XI th arrdt 12,070 sq.m. 195 apartments XX th arrdt 30,923 sq.m. 535 apartments XII th arrdt 42,263 sq.m. 743 apartments XIV th arrdt 35,221 sq.m. 605 apartments XIII th arrdt 30,656 sq.m. 487 apartments 48

51 Geographic breakdown of residential properties in operation as of December 31, 2003 Breakdown of residential properties in operation by type as of December 31, % 5.2% 14.2% 19.9% 17.7% 20.4% 36.3% 57.4% 33.8% 61.0% 65.9% 61.9% % of rental income % of revalued block value 1 % of rental income % of revalued block value 1 Paris Paris region Lyons 1 On the basis of block valuation appraisals, net selling prices, of real estate assets. After Haussmann-style Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Primarily residential properties in operation 75 Paris 1 st 184, rue de Rivoli - 2, rue de l Echelle , ,182 GECINA Paris 3 rd 7/7 bis, rue Saint-Gilles , ,848 GECINA Paris 4 th 2, rue Crillon , ,763 GECINA Paris 5 th 21, rue Galande - 2, rue des Anglais GECINA 7, rue Nicolas-Houël , ,740 GECINA Paris 6 th 1, carrefour Croix-Rouge ,191 GECINA Paris 7 th 262, boulevard Saint-Germain ,261 GECINA 266, boulevard Saint-Germain ,104 GECINA Paris 8 th 44, rue Bassano - 11, rue Magellan , ,925 GECINA 165, boulevard Haussmann , ,794 GECINA 30, rue de Laborde GECINA 80, rue du Rocher , ,169 GECINA 51, rue de Rome , ,712 GECINA 3, rue Treilhard ,412 GECINA 93, rue du Faubourg-Saint-Honoré , ,576 GECINA 21, rue Clément-Marot , ,979 SIF 40, rue d Artois , ,250 SA PARIGEST 5, rue Monceau , ,384 GECINA 7 bis, rue Monceau , ,655 GECINA 49

52 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Paris 9 th 21, rue Condorcet , ,983 GECINA 16, cité de Trévise GECINA 34, rue Pierre-Semard ,138 GECINA 6 bis, rue de Châteaudun GECINA 13/17, cité de Trévise , ,773 GECINA Paris 10 th 141, rue La Fayette , ,700 GECINA 166/172, quai de Jemmapes , ,753 GECINA 41/47, rue de la Grange-aux-Belles , ,763 GECINA Paris 11 th 44/50, rue Pétion , ,240 GECINA 45/53, avenue Philippe-Auguste ,564 1,416 5,980 GECINA 8, rue du Chemin-Vert , ,913 GECINA 8 bis, rue Lacharrière , ,486 GECINA Paris 12 th 29, avenue Ledru-Rollin , ,654 GECINA 25/27, rue de Fécamp - 45, rue de Fécamp , ,771 GECINA 18/20 bis, rue Sibuet , ,496 GECINA 9/11, avenue Ledru-Rollin , ,224 GECINA 25, avenue de Saint-Mandé , ,780 GECINA 12/14, boulevard de Picpus , ,680 GECINA 46, boulevard de Reuilly - 38, rue Taine ,541 2,655 11,196 GECINA 220, rue du Faubourg-Saint-Antoine ,535 1,019 7,554 GECINA 24/26, rue Sibuet , ,845 GECINA Paris 13 th 22/24, rue Wurtz , ,719 GECINA 10/18, passage Foubert , ,233 GECINA 49/53, rue Auguste-Lançon 26, rue de Rungis - 55/57, rue Brillat-Savarin ,413 1,800 5,213 GECINA 2/12, rue Charbonnel - 53, rue de l Amiral-Mouchez 65/67, rue Brillat-Savarin , ,497 GECINA 20, rue du Champ-de-l Alouette , ,825 GECINA 53, rue de la Glacière GECINA Paris 14 th 149/153, rue Raymond-Losserand - 1/5, rue Pauly , ,163 GECINA 83/85, rue de l Ouest , ,093 GECINA 36/38, rue Cabanis ,911 1,124 5,035 GECINA 26, rue du Commandant-René-Mouchotte , ,076 GECINA 3, villa Brune , ,689 GECINA Paris 15 th 22/34, rue Balard - rue des Cévennes ,252 1,133 10,385 GECINA 49, avenue de la Motte-Piquet , ,575 GECINA 52, avenue de Saxe , ,145 GECINA 22/24, rue Edgar-Faure , ,075 SCI DUPLEIX- SUFFREN Front de Seine (Tour H15) 26, rue Linois , ,634 SCI H15 89, rue de Lourmel , ,732 GECINA 39, rue de Vouillé , ,426 SCI VOUILLE- NANTEUIL 75/77, rue Saint-Charles , ,764 GECINA 27, rue Balard , ,798 SA PARIGEST 22, rue de Cherbourg - 25, rue de Chambéry , ,497 GECINA 199, rue Saint-Charles , ,253 GECINA 50

53 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company 159/169, rue Blomet - 334/342, rue de Vaugirard ,524 5,310 26,834 GECINA 191, rue Saint-Charles - 17, rue Varet , ,319 GECINA 76/82, rue Lecourbe - rue François-Bonvin (BONVIN-LECOURBE) ,875 6,581 20,456 GECINA 10, rue du Docteur-Roux - 189/191, rue de Vaugirard ,015 2,739 15,754 GECINA 74, rue Lecourbe , ,042 GECINA 148, rue de Lourmel - 74/86, rue des Cévennes - 49, rue Lacordaire , ,781 GECINA 170, rue Saint-Charles - 55, rue des Bergers ,856 1,148 4,004 GECINA 85/89, boulevard Pasteur , ,451 GECINA 44/50, rue Sébastien-Mercier , ,167 GECINA 18/20, rue Tiphaine ,862 2,126 6,988 GECINA 37/39, rue des Morillons , ,736 GECINA 12, rue Chambéry GECINA 6, rue de Vouillé ,215 1,961 30,176 GECINA 168/170, rue de Javel , ,952 GECINA 20, rue de Cronstadt , ,660 GECINA Paris 16 th 11, chaussée de La Muette , ,383 GECINA 16, rue de Lübeck , ,220 GECINA 60, avenue Paul-Doumer - 7, rue Vital , ,451 GECINA 2, rue Poussin , ,639 SIF 4, rue Poussin SIF 6, rue Poussin , ,642 SIF 12, rue Raynouard , ,758 GECINA 14, rue Raynouard , ,460 GECINA 3, rue Franklin , ,990 GECINA 7, rue Georges-Ville , ,879 GECINA 72, avenue Mozart , ,673 GECINA 12, avenue Boudon , ,690 GECINA 10/12, rue de Saigon , ,587 SA PARIGEST 6/14, rue de Rémusat - square Henri-Paté ,987 1,023 17,010 GECINA 17/19, rue Mesnil - 48, rue Saint-Didier , ,965 GECINA 46 bis, rue Saint-Didier , ,741 GECINA Paris 17 th 121, rue de Courcelles ,178 GECINA 4, rue Léon-Cosnard , ,294 GECINA 169/183, boulevard Pereire 7/21, rue Faraday - 49, rue Laugier ,661 1,713 22,374 GECINA 25, rue du Colonel-Moll - 11, rue Saint-Ferdinand , ,565 GECINA 7, rue Saint-Senoch , ,922 GECINA 7, rue Montenotte , ,218 GECINA 79, rue Jouffroy-d Abbans , ,121 GECINA 81, rue Jouffroy-d Abbans , ,440 GECINA 54, rue de Prony , ,252 GECINA 80, rue de Prony , ,624 GECINA 3, rue Meissonnier , ,652 GECINA 4, rue Meissonnier , ,371 GECINA 6/8, rue Meissonnier , ,515 GECINA 8, rue Balny-d Avricourt GECINA 28, avenue Carnot , ,367 SA PARIGEST 30, avenue Carnot , ,220 SA PARIGEST 32, avenue Carnot , ,195 SA PARIGEST 10, rue Nicolas-Chuquet , ,614 GECINA 75/79, rue Laugier - 12, rue Galvani , ,693 GECINA 38/40, rue de Lévis , ,770 GECINA 51

54 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Paris 18 th 40, rue des Abbesses , ,139 GECINA 88/92, boulevard Ney , ,080 GECINA 234, rue Championnet , ,243 GECINA Paris 19 th 27/31, avenue de Flandre - 6/8, rue du Maroc , ,555 GECINA 29/33, rue des Ardennes , ,084 GECINA 25/31, rue Pradier - 63, rue Fessart , ,884 GECINA 8/10, rue Manin , ,213 GECINA Paris 20 th 19/21, rue d Annam , ,907 GECINA 59/61, rue de Bagnolet , ,328 GECINA 44/57, rue de Bagnolet , ,234 GECINA 162, rue de Bagnolet , ,439 GECINA 42/52 and 58/60, rue de la Py 15/21, rue des Montibœufs , ,465 GECINA 20/24, rue de la Plaine - 15/17, rue de Lagny , ,591 GECINA Subtotal properties in operation Paris 8, ,666 60, , Versailles (78000) 79, rue des Chantiers , ,284 GECINA Petite place - 9, rue Sainte-Anne 6, rue Madame - 20, rue du Peintre-Le-Brun ,899 1,045 14,944 GECINA 48, rue Albert-Joly , ,143 GECINA 13, avenue du Général-Pershing , ,895 GECINA 7, rue de l Amiral-Serre , ,577 GECINA 6, boulevard du Roi , ,732 GECINA Saint-Germain-en-Laye (78100) 33/61, rue Rouget-de-L Isle 40/41, rue Jeanne-d Albret , ,228 GECINA 31, avenue Saint-Fiacre - 10/28, rue Marie-Stuart , ,568 GECINA 17, rue Félicien-David , ,996 GECINA Le Chesnay (78150) 16/20, rue Pottier , ,590 SA PARIGEST La Celle-Saint-Cloud (78170) 16/22 bis, avenue de Circourt , ,539 GECINA 1, allée du Béarn , ,091 GECINA Poissy (78300) 10, boulevard de la Paix , ,993 GECINA Bougival (78380) 12/18, côte de la Jonchère , ,909 GECINA Chatou (78400) 3, avenue de la Faisanderie , ,723 GECINA Maisons-Laffitte (78600) 21/31, rue des Côtes , ,854 GECINA 56, avenue de Saint-Germain , ,046 GECINA Saint-Michel-sur-Orge (91240) Rue Berlioz , ,730 GECINA Rue Chabrier , ,348 SCI PARIS- SAINT-MICHEL Courbevoie (Paris-La Défense) (92000) 3/6, square Henri-Regnault , ,626 GECINA 52

55 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Boulogne-Billancourt (92100) 59 bis/59 ter, rue des Peupliers 35 bis, rue Marcel-Dassault , ,032 GECINA 175, boulevard Jean-Jaurès , ,001 SA PARIGEST 94/98, rue de Bellevue , ,474 GECINA 108, rue de Bellevue - 99, rue de Sèvres , ,966 SA PARIGEST Issy-les-Moulineaux (92130) 20/22, rue Hoche , ,664 GECINA 30/32, rue Diderot - 35, rue Danton , ,317 GECINA Antony (92160) 254/278, rue Adolphe-Pajeaud , ,622 GECINA 17/25, avenue Jeanne-d Arc , ,556 GECINA Vanves (92170) 2/6, rue Ernest-Laval ,406 1,070 4,476 SA PARIGEST 5 bis, rue Larmeroux , ,497 GECINA Meudon (92190) 7, rue du Parc - 85, rue de la République , ,322 GECINA Neuilly-sur-Seine (92200) 54/56, boulevard du Général-Leclerc 70/72, rue Edouard-Nortier , ,855 GECINA 1/2/3/5/7/9, rue Théophile-Gautier 2, rue Casimir-Pinel , ,409 GECINA 41, boulevard du Commandant-Charcot , ,985 SIF 8, rue Berteaux-Dumas , ,009 GECINA 47/49, rue Perronet , ,503 GECINA 7 bis, rue Jacques-Dulud , ,242 GECINA 77, rue Perronet , ,497 GECINA Saint-Cloud (92210) 165/185, boulevard de la République , ,078 GECINA 9/11, rue Pasteur , ,526 GECINA Châtenay-Malabry (92290) 148, rue d Aulnay , ,400 GECINA 97, avenue Roger-Salengro , ,084 GECINA Levallois-Perret (92300) 136/140, rue Aristide-Briand , ,699 GECINA Sèvres (92310) Allée des Acacias - 15/17, route de Gallardon , ,156 GECINA Le Plessis-Robinson (92350) 25, rue Paul-Rivet , ,515 GECINA Garches (92380) 12, rue des Quatre-Vents , ,120 GECINA 17/21, rue Jean-Mermoz , ,946 GECINA 12, rue Sylvain-Vigneras , ,776 GECINA Courbevoie (92400) 8/12, rue Pierre-Lhomme , ,344 GECINA 43, rue Jules-Ferry - 25, rue Cayla , ,574 GECINA 3, place Charras , ,807 GECINA 9, rue Kilford , ,120 GECINA 190, boulevard Saint-Denis , ,281 GECINA 161/165, rue Jean-Baptiste-Charcot , ,314 GECINA 9/15, rue Adélaïde , ,559 GECINA 4/6/8, rue Victor-Hugo - 8/12, rue de l Abreuvoir 11, rue de l Industrie , ,709 GECINA 102/110, avenue Marceau - 175/181, rue Jean-Pierre-Timbaud ,563 1,674 10,237 GECINA 6, rue des Vieilles-Vignes , ,716 GECINA 53

56 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Ville-d Avray (92410) 1 to 33, avenue des Cèdres - 3/5, allée Forestière 1, rue du Belvedère-de-la-Ronce ,157 1,008 41,165 GECINA 6, chemin Desvallières , ,234 GECINA 14/18, rue de la Ronce , ,902 GECINA Asnières (92600) 46, rue de la Sablière , ,130 SA PARIGEST 94 Créteil (94000) 1/15, passage Saillenfait , ,628 GECINA Saint-Maur-des-Fossés (94100) 4, quai du Parc - 69, rue Gabriel-Péri , ,452 GECINA Saint-Mandé (94160) 7, rue de l Amiral-Courbet , ,524 GECINA Saint-Maurice (94410) 1/5, allée des Bateaux-Lavoirs 4, promenade du Canal , ,382 GECINA Maisons-Alfort (94700) 58/60, avenue Georges-Clemenceau , ,168 GECINA Subtotal properties in operation Paris region 7, ,915 9, ,789 Subtotal properties in operation Paris + Paris region 16,073 1,098,581 70,024 1,168, Lyon 3 rd 19/20, quai Augagneur 1890/ ,748 1,555 3,303 GECINA 100, cours La Fayette ,683 1,884 19,567 GECINA 15/33, rue Desaix ,164 1,077 18,241 GECINA 113/119, cours Gambetta - 17, rue Dunoir (SGIL) , ,605 SGIL (QUOTE-PART %) Lyon 4 th 104/110, rue Hénon , ,182 GECINA Lyon 5 th 85/92, quai Pierre-Scize ,900 1,638 9,538 GECINA Lyon 6 th 47, avenue de Saxe ,747 GECINA Lyon 7 th Le Fleuve Sud - 9/11, rue Commandant-Ayasse , ,582 GECINA Le Fleuve Quai - 39, avenue Leclerc , ,673 GECINA Le Fleuve - 40/43, avenue Leclerc , ,392 GECINA Lyon 9 th La Clairière - 176, rue de Saint-Cyr , ,987 GECINA Villeurbanne (69100) 83, cours de la République , ,125 GECINA Ecully (69130) 20/24, chemin de Charrière-Blanche , ,098 GECINA Caluire-et-Cuire (69300) Bissardon - 23/29, rue de l Oratoire , ,365 GECINA Subtotal properties in operation Lyons + Lyons region 1, ,280 9, ,405 54

57 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Fos-sur-Mer (13778) Les Jardins , ,967 GECINA Gradignan (33170) Chemin du Naudet , ,560 GECINA Subtotal properties in operation other regions , ,527 General total properties in operation French provinces 2, ,807 9, ,932 General total properties in operation 18,157 1,251,388 79,149 1,330,537 Unit sales programs 75 Paris 4 th 9, rue Ferdinand-Duval GECINA Paris 7 th 63, rue de Varenne , ,201 SIF 63 bis, rue de Varenne SIF 3, cité Vaneau SIF 5, cité Vaneau SIF 7, cité Vaneau SIF 9, cité Vaneau SIF 10, cité Vaneau SIF 11, cité Vaneau SIF 12, cité Vaneau SIF 14, cité Vaneau SIF Paris 8 th 19, rue de Lisbonne GECINA 166, boulevard Haussmann GECINA Paris 12 th 26/36, rue Claude-Decaen - 42/46, rue de Fécamp GECINA Paris 13 th 184, avenue de Choisy GECINA Paris 14 th 4/8, rue des Mariniers GECINA 8/20, rue du Commandant-René-Mouchotte GECINA Paris 15 th 13, rue de Vouillé GECINA 3, rue Jobbé-Duval GECINA Paris 16 th 8/10, rue Oswaldo-Cruz , ,309 GECINA 8/9, avenue Saint-Honoré-d Eylau GECINA 11, rue du Conseiller-Collignon , ,342 GECINA/ SA PARIGEST Paris 17 th 6, rue Mariotte GECINA 42 bis, rue Cardinet GECINA 35, rue des Batignolles GECINA Paris 18 th 35, rue Joseph-de-Maistre GECINA Paris 19 th 104/106, rue Petit - 16, allée de Fontainebleau , ,969 SA PARIGEST 55

58 Department City Address or building name Year Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Paris 20 th 17/35, rue du Repos GECINA Total unit sales programs Paris , , Bois-d Arcy (78380) 1/17, rue René-Laennec (Croix-Bois-d Arcy) GECINA Bois-d Arcy (78390) 2, rue Toulouse-Lautrec , ,404 GECINA Saint-Michel-sur-Orge (91240) Rue Berlioz, rue Debussy GECINA 15/17, rue Chabrier SCI PARIS- SAINT-MICHEL Massy (91300) Avenue nationale - allée de Suède, Norvège, Pologne, Finlande, Danemark - square du Portugal GECINA Chilly-Mazarin (91380) 5, rue des Dalhias GECINA Orsay (91400) 2/32, chemin des Vignes , ,143 GECINA Issy-les-Moulineaux (92130) 134/138, avenue de Verdun GECINA Neuilly-sur-Seine (92200) 163/165, avenue Charles-de-Gaulle , ,476 GECINA Saint-Cloud (92210) 8, avenue Francis-Chaveton GECINA Bois-Colombes (92270) 82, rue du Général-Leclerc GECINA Gagny (93220) 2/16, boulevard Jean-Pierre-Gardebled GECINA Bry-sur-Marne (94360) 106/108, avenue du Général-Leclerc quai Louis-Ferber , ,987 GECINA Total unit sales programs Paris region , , Lyon 2 nd 1/3 and 12/22, cours Bayard - 44, rue Quivogne GECINA 62, rue Mercière GECINA 64, rue Mercière GECINA 3/5, rue du Petit-David GECINA Lyon 6 th 18/22, rue Crillon , ,528 GECINA Villeurbanne (69100) 2, rue Paul-Lafargue - 198, cours Emile-Zola , ,389 GECINA 56

59 Department City Address or building name Toulon (83000) 2, rue Guiol - 7, boulevard de Strasbourg GECINA Total unit sales programs Lyons + Lyons region 68 4, ,036 Year Lille (59000) Parc Saint-Maur - avenue de Mormal GECINA Number of apartments Residential area (sq.m.) Commercial area (sq.m.) Total area (sq.m.) Company Total unit sales programs other regions Total unit sales programs ,203 1,742 39,944 Total GECINA Group primarily residential assets 18,606 1,289,591 80,891 1,370,481 Paris 9, ,828 Residential share of primarily residential assets 8, ,666 Residential share of primarily commercial assets ,162 Paris region 7, ,456 Residential share of primarily residential assets 7, ,915 Residential share of primarily commercial assets Lyons 1, ,977 Residential share of primarily residential assets 1, ,280 Residential share of primarily commercial assets 29 1,697 Other regions ,527 Residential share of primarily residential assets ,527 Residential share of primarily commercial assets 0 0 Residential properties in operation as of December 31, ,524 1,276,788 Unit sales programs as of December 31, ,603 Residential share of primarily residential assets ,203 Residential share of primarily commercial assets Other 64 3,698 Total Group residential properties as of December 31, ,044 1,319,089 Residential share of primarily residential assets 18,606 1,289,591 Residential share of primarily commercial assets ,498 57

60 Background Dynamic development 1959 Creation of the Groupement pour le Financement de la Construction (GFC), a Société Immobilière Conventionnée Floated on the Paris Stock Exchange. Becomes a Société Immobilière d Investissement (SII) Acquisition of the real estate company GFII. This company, created by the merger of three SII, owned real estate assets mainly located outside of Paris, in Lyons and the north of France Abandonment its status as an SII. Strategic focus on properties in Paris and the Paris region and diversification into commercial property Acquisition of the real estate company FONCINA, with properties valued at 213 million euros located in Paris and the Paris region. On March 24, creation of FONCIGEF, a real estate service subsidiary specialized in rentals and sales. On October 3, issue of bonds convertible into shares with a nominal rate of 3.25%, due January 1, The Company s growth gains speed with the acquisition of IUF (340,000 sq.m. of rental properties) and LA FONCIERE VENDOME (48,900 sq.m. of rental properties) with Haussmann-style buildings in Paris, most of them offices. GFC becomes GECINA On July 8, merger with SEFIMEG, then on December 16 with IMMOBILIERE BATIBAIL. GECINA doubles its size; its revalued real estate assets rise above 4 billion euros; and the Company becomes the leading private investor in Lyons Acquisition of the real estate complex CARRE SAINT- GERMAIN, located in Paris s 6 th arrondissement. After the restructuring completed in the summer of 2002, 5,000 sq.m. of offices and 9,064 sq.m. of commercial space are available. Launch of the Internet site Creation of GECITER, a commercial real estate subsidiary Appointment of Antoine Jeancourt-Galignani as Chairman of GECINA, succeeding Eliane Sermondadaz. Serge Grzybowski is named Chief Executive Officer. Development of the DAUHINE PART-DIEU project involving the construction of a 13,000 sq.m. office building on one of the Group s lands located rue de la Villette in Lyons Development of commercial property through: The acquisition of an office complex at 26-30, rue Saint-Georges and 23-29, rue de Châteaudun, Paris 9 th, with a total surface area of 15,350 sq.m.; The acquisition of an office building located 5bis-7, rue Volney / 14-16, rue des Capucines, Paris 2 nd, with a total surface area of 12,500 sq.m. GECINA launches a public offer on SIMCO. This operation allows GECINA to double its assets, from 4.1 billion euros to 8.4 billion euros. Agreement between GECINA and Westbrook Partners, an American real estate investment fund, for the sale of approximately 1.2 billion euros of residential properties, half of which belonged to GECINA and half to SIMCO Joint venture with Apsys to restructure the Beaugrenelle mall in Paris 15 th. Launch of works on the Volney-Capucines building, the future headquarters of the GECINA Group. Adoption of the new SIIC tax system, retroactive as of January 1, LOCARE becomes the brand name for all of the GECINA Group s marketing activities (rental and sales). Merger of SIMCO into GECINA approved on December 17. Disposal of primarily residential real estate for 1.5 billion euros The par value of the GECINA share split in half to 7.50 euros. Adoption of obligatory registered shares as of January 7,

61 financial report 2003