9-month 2016 Revenues: Outlook revised upwards. 3 November 2016

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Hugh Jennings
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1 9-month 2016 Revenues: Outlook revised upwards 3 November 2016

2 CONTENTS > A SUCCESSFUL LETTING ACTIVITY > STRONG INVESTMENT ACTIVITY > KEY TAKEAWAYS > APPENDIX FONCIÈRE DES RÉGIONS 2

3 1 A successful letting activity Office Milan 3

LETTING ACTIVITY NEW LETTING SUCCESSES DURING Q3 France Offices: success of the development pipeline Italy Offices: success of the new letting strategies New leases

+22,000 m² including Corso Ferrucci (45,600 m²) Turin: +6,700 m² new pre-lettings 45,000 m² of new lettings YTD 57,000 m² of new lettings YTD Monte Titano (6,000 m²)

4 LETTING ACTIVITY NEW LETTING SUCCESSES DURING Q3 France Offices: success of the development pipeline Italy Offices: success of the new letting strategies New leases during Q3 France Offices: +16,000 m² including Silex 1 (10,600 m²) Lyon: +1,600 m² new prelettings Calypso (9,600 m²) Marseille: +1,400 m² new lettings Italy Offices: +22,000 m² including Corso Ferrucci (45,600 m²) Turin: +6,700 m² new pre-lettings 45,000 m² of new lettings YTD 57,000 m² of new lettings YTD Monte Titano (6,000 m²) Milan: fully let to Meininger for transformation into a hotel 102,000 m² of new lettings + 25 million of new rents ( 18 million Group Share) FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 4

5 LETTING ACTIVITY RENTAL INCOME AT END-SEPTEMBER: +3.8% France Offices Italy Offices German Residential Hotels in Europe Positive impacts of the deliveries Increased occupancy in offices ex-ti: Pursuit of the increase in the like- AccorHotels (40% of the rents): and acquisitions +2.1% like-for-like rents for-like trend in all regions -9.3% (variable rents) Occupancy rate 95.2% vs 95.8%: Departure in Paris CBD (Paris- 1 st results of the vacant asset capex plan Berlin: +5.0% vs +4.4% in 2015 NRW 2: +2.2% vs +1.6% Paris: -18% Brussels: -20% French Regional cities: +1.7% Delcassé) with positive reversionary potential Already 44% of the + 19 million 1 in cash-flows secured Others: +0.2% like-for-like FONCIÈRE DES RÉGIONS 9M 2016 REVENUES million Group Share; 2 North Rhine-Westphalia

6 LETTING ACTIVITY 9-MONTH 2016 REVENUES: +3.8% million Rental income 100% Rental income Group Share Change Change on likefor-like basis Occupancy rate Residual firm terms of leases (in years) Offices - France % - 0.5% 95.2% 5.7 Offices - Italy % - 0.2% 95.2% 9.2 Of which Telecom Italia offices % -2.5% 100% 14.1 Of which portfolio ex Telecom Italia % +2.1% 91.0% 4.9 Residential Germany % + 3.1% 98.2% n.a. Hotels/Service Sector % - 3.7% 100% 10.4 Other (French Resi.) n.a. n.a. n.a. n.a. Total % 0.0% 96.4% Renewals: -0.1%; Indexation: +0.2%; Occupancy rate: -0.6% 4 Acquisitions in Berlin 2 Impact of 2015 lease renegotiation and disposals 5 Renewals: +0.1%; Indexation: -0.1%; Occupancy rate: 0% 3 First positive effects of the plan on vacant assets 6 Secure long-term cash-flows FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 6

7 2 Strong investment activity to drive-up quality and growth EDO, Greater Paris 7

INVESTMENT ACTIVITY INVESTMENTS: AN ACTIVE YEAR FOR THE DEVELOPMENT PIPELINE 11 deliveries in 2016 for 244

9% yield on cost Committed pipeline increased by 8% vs end-2015 > +12 new projects launched in 2016 for 276

million (Group Share) Hotels 10% Italy offices 21% +8% vs end-2015 France offices 69% 1,378 hotel rooms

8 INVESTMENT ACTIVITY INVESTMENTS: AN ACTIVE YEAR FOR THE DEVELOPMENT PIPELINE 11 deliveries in 2016 for 244 million ( 149 million Group Share) > 36,500 m² offices and 800 hotel rooms > 94% occupancy rate; 6.9% yield on cost Committed pipeline increased by 8% vs end-2015 > +12 new projects launched in 2016 for 276 million ( 178 million Group Share) Symbiosis - Offices - Milan 215,000 m² offices Committed pipeline of 669 million (Group Share) Hotels 10% Italy offices 21% +8% vs end-2015 France offices 69% 1,378 hotel rooms Offices - Bordeaux More to come thanks to a 2.3 billion managed pipeline Meininger Hotel - Paris FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 8

INVESTMENT ACTIVITY INVESTMENTS: NEW ACQUISITION IN GERMAN RESIDENTIAL IN Q3 Acquisition of 1,590 residential units > 217 million ( 140 million Group Share); 1,740/m² ( 2,050/m² in Berlin) >

9 INVESTMENT ACTIVITY INVESTMENTS: NEW ACQUISITION IN GERMAN RESIDENTIAL IN Q3 Acquisition of 1,590 residential units > 217 million ( 140 million Group Share); 1,740/m² ( 2,050/m² in Berlin) > Small/mid-size assets; city-center locations in our historical cities Gross Yield 4.7% Dresden & Leipzig 5% Others 4% Cologne 10% Düsseldorf 23% Geographic breakdown of the acquisitions (in value) Berlin 40% Reversionary potential +30% Hamburg 18% Vacancy rate 3.0% 476 million acquisition YTD ( 321 million Group Share) Of which 72% in Berlin FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 9

10 INVESTMENT ACTIVITY INVESTMENTS: 1.4 BILLION SECURED YTD million Group Share vs end-june month 2016, million Investments (Group Share) 1+2 Capex (Group Share) 1 Acquisitions (Group Share) 2 Gross yield on acquisitions (Group Share) Offices - France % Offices - Italy % 1 Increased stake in Beni Stabili ,5% German Residential % Hotels in lease properties % Hotels in operating properties % 2 Increased stake in FDM % Offices France: More development pipeline Offices Italy: More Milan German Residential: More Berlin Hotels in Europe: More Germany Total 1, , % 1 1 Potential yield, 5.6% immediate yield for Italy and 6.2% for total; 2 EBITDA Yield 79% in Paris, Berlin & Milan FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 10

11 INVESTMENT ACTIVITY DISPOSAL PROGRAM: 454 MILLION OF NEW AGREEMENTS YTD 9-month 2016, m New agreements Group Share Margin vs. Values 2015 Gross Yield Effective disposals Group Share France Offices % 7.9% % Italy Offices % 4.0% % German Residential % 7.1% % Hotels 4 0.0% 6.4% % Non-strategic % 3.3% % Gross Yield Total asset disposals % 4.9% % Offices France: Less small regional offices German Residential: Less NRW 2 Hotels in Europe: Less AccorHotels in France Non strategic: No more Healthcare Less French Residential Focus on strategic locations Better quality and growth potential FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 1 Including Healthcare; 2 North Rhine-Westphalia 11

12 3 Key takeaways Steel Paris 12

KEY TAKEAWAYS INCREASED 2016 GUIDANCE Rents: +3.8% increase at end-september Stable like-for-like Letting successes 100,000 m² new lettings Strong operating results 1.

13 KEY TAKEAWAYS INCREASED 2016 GUIDANCE Rents: +3.8% increase at end-september Stable like-for-like Letting successes 100,000 m² new lettings Strong operating results 1.4 billion investments focus on Paris, Berlin, Milan 140 million new acquisitions in German Residential in Q3 3.0 billion development pipeline 669 million committed Increased 2016 guidance: Around +2% growth in Recurring Net Income per share Silex 1 & 2, Lyon FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 13

14 AGENDA FINANCIAL AGENDA Full-year 2016 results: 16 February 2017 FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 14

15 Appendix Golden Tulip Hotel Marseille 15

16 APPENDIX 9M 2016 REVENUES ( million) Q Q % Group Share Change (%) Q Q Change (%) Change (%) LfL % of total rent Offices - France % % -0.5% 44% Offices - Italy % % -0.2% 18% German Residential % % +3.1% 23% Hotels & Service % % -3.7% 14% Other (French Residential) n.a n.a. n.a. 2% Total % % +0.0% 100% FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 16

17 APPENDIX A UNIQUE EUROPEAN PLAYER A 19.0 billion portfolio at end-september 2016 ( 11.8 billion Group Share) 1 France Offices 1 (44%) Berlin German Residential 1 (20%) Paris Hotels in Europe 1 (14%) Milan Italy Offices 1 (18%) An integrated operator in the largest continental European markets FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 1 Group Share post investments and disposals secured 17

18 Italy Offices France Offices APPENDICES COMMITTED PIPELINE: 24 PROJECTS FOR 669 MILLION GROUP SHARE Projects Location Project Surface* (m²) Target rent ( /m²/year) Pre-leased (%) Total Budget** (M ) Target Yield Progress Capex to be invested (Group Share) Euromed Center Offices Hermione (FdR share: 50%) Marseille Construction m² 265 0% 14 > 7% 70% 4 Silex I Lyon Construction m² % 47 >7% 60% 16 Euromed Center - Offices Floreal (FdR share: 50%) Marseille Construction m² 265 0% % 55% 9 Thaïs Levallois - Greater Paris Construction m² 480 0% % 50% 14 O'rigin Nancy Construction m² % % 40% 11 Edo Issy Les Moulineaux - Greater Paris Regeneration- Extension m² % % 30% 33 Art&Co Paris Regeneration m² 520 5% % 5% 34 Reims New Saint Charles Reims Construction m² na 100% 17 >7% 16% 14 Total m² % % 30% 136 Riverside Toulouse Construction m² 195 0% % 5% 26 Hélios Lille - Villeneuve d'asq Construction m² 160 0% 21 >7% 5% 20 Bordeaux Ilot Armagnac Bordeaux Construction m² na 29% % 18% 30 Total m² % % 10% 76 Total - Offices France m² % % 26% 212 Milan, via Colonna Milan Restructuration m² 260 0% 8 5,1% 1% 2 Milan, via Cernaia Milan Restructuration m² 420 0% 30 5,2% 4% 7 Turin, corso Ferrucci 112 Turin Restructuration m² % 45 5,7% 10% 15 Total m² 248 8% 83 5,4% 7% 25 Milan, P.zza Monte Titano Milan Restructuration m² % 11 5,0% 1% 4 Symbiosis A+B Milan Construction m² % 45 6,8% 8% 26 Total m² % 56 6,4% 7% 30 Total Bureaux Italie m² % 139 5,8% 7% 55 FONCIÈRE DES RÉGIONS * 100% usable area excl. car park; ** Group share incl. land and financial cost 9M 2016 REVENUES 18

19 APPENDICES COMMITTED PIPELINE: 24 PROJECTS FOR 669 MILLION GROUP SHARE Projects Location Project Rooms* (m²) Target rent ( /m²/year) Pre-leased (%) Total Budget** (M ) Target Yield B&B Lyon Lyon Construction 113 rooms na 100% 2 5.5% 27% 1 B&B Berlin Berlin Construction 135 rooms na 100% 6 7.0% 32% 1 Motel One Porte Dorée Paris Construction 255 rooms na 100% 9 6.2% 42% 6 Progress Capex to be invested (Group Share) Hotels & Service Total rooms 100% % 37% 8 B&B Nanterre Greater Paris Construction 150 rooms na 100% 3 6.3% 10% 2 B&B Chatenay Malabry Greater Paris Construction 127 rooms na 100% 3 6.2% 10% 2 Meininger Munich Germany Conversion 173 rooms na 100% % 50% 7 Meininger Porte de Vincennes Paris Construction 249 rooms na 100% % 0% 16 Meininger Lyon Zimmermann Lyon Construction 176 rooms na 100% 9 6.3% 0% 9 Total rooms na 100% % 15% 36 Total - Hotels & Service rooms na 100% % 20% 44 Total - Offices France m² % 459 6,1% 26% 212 Total - Offices Italy m² % 139 5,8% 7% 55 Total - Hotels & Service rooms na 100% 70 6,2% 20% 44 Total m² na 41% 669 6,1% 21% 311 FONCIÈRE DES RÉGIONS * 100% usable area excl. car park; ** Group share incl. land and financial cost 9M 2016 REVENUES 19

20 Italy Offices France Offices APPENDICES MANAGED PIPELINE: 20 PROJECTS FOR 2.3 BILLION GROUP SHARE Projects Location Project Surface* (m²) Delivery timeframe Cap 18 Paris Construction m² >2020 Rueil Vinci Rueil-Malmaison - Greater Paris Regeneration-Extension m² >2020 Canopée Meudon - Greater Paris Construction m² >2019 Omega Levallois-Perret - Greater Paris Regeneration-Extension m² >2020 Citroen PSA - Arago Paris Restructuration m² >2020 Anjou Paris Restructuration m² >2020 Silex II Lyon Regeneration-Extension m² 2019 Opale Meudon - Greater Paris Construction m² >2018 Montpellier Majoria Montpellier Construction m² Avenue de la Marne Montrouge - Greater Paris Construction m² 2020 Cœur d'orly Bureaux (FdR share 25%) Orly - Greater Paris Construction m² >2019 Orange Gobelins Paris Regeneration m² >2020 Bordeaux Cité du Numérique Bordeaux Construction m² 2018 Campus New Vélizy Extension (FdR share 50%) Vélizy - Greater Paris Construction m² 2019 Cœur d'orly Commerces (FdR share 25%) Orly - Greater Paris Construction m² >2018 DS Campus Extension 2 (FdR share 50%) Vélizy - Greater Paris Construction m² >2020 ERDF Angers Angers Construction m² 2019 Total Offices France m² Symbiosis (other blocks) Milan Regeneration m² 2022 Via Schievano Milan Regeneration m² 2019 Principe Amedeo Milan Construction m² 2017 Total Offices - Italy m² Total m² FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 20 * 100% usable area excl. car park

21 APPENDIX ORGANISATION CHART AT END-SEPTEMBER 2016 Foncière des Régions 52.2% 61.0% 49.9% 61.3% France Offices Italy Offices (Beni Stabili) German Residential (Immeo) Hotels & Service Sector (Foncière des Murs) French Residential (FDL) 40.8% Consolidated subsidiaries Management contracts (FDM Management) Equity affiliates FONCIÈRE DES RÉGIONS 9M 2016 REVENUES 21

22 Contact Paul Arkwright Tel.: Mobile: paul.arkwright@fdr.fr Paris 30, avenue Kléber Paris Tel.: FONCIÈRE DES RÉGIONS

FONCIÈRE DES RÉGIONS. Co-author of real estate stories. 30, avenue Kléber Paris Tel: + 33 (0)

FONCIÈRE DES RÉGIONS. Co-author of real estate stories. 30, avenue Kléber Paris Tel: + 33 (0) 30, avenue Kléber 75116 Paris Tel: + 33 (0)1 58 97 50 00 www.en.foncieredesregions.fr Follow us on Twitter and on social media @fonciereregions FONCIÈRE DES RÉGIONS Co-author of real estate stories Co-author