CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017

CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017 1

CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017 CONTENTS 3.1 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017... 4 3.1.1 STATEMENT OF FINANCIAL POSITION... 4 3.1.2 STATEMENT OF NET INCOME... 6 3.1.3 STATEMENT OF COMPREHENSIVE INCOME... 7 3.1.4 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY... 8 3.1.5 STATEMENT OF CASH FLOWS... 9 3.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS... 10 3.2.1 GENERAL PRINCIPLES... 10 3.2.1.1 Accounting standards... 10 3.2.1.2 Estimates and judgements... 12 3.2.1.3 Operating segments... 13 3.2.1.4 IFRS 7 Reference table... 13 3.2.2 FINANCIAL RISK MANAGEMENT... 13 3.2.2.1 Marketing risk for properties under development... 13 3.2.2.2 Liquidity risk... 13 3.2.2.3 Interest rate risk... 15 3.2.2.4 Financial counterparty risk... 15 3.2.2.5 Leasing counterparty risk... 15 3.2.2.6 Risks related to changes in the value of the portfolio... 16 3.2.2.7 Exchange rate risk... 16 3.2.2.8 Risks related to changes in the value of shares and bonds... 17 3.2.2.9 Tax environment... 17 3.2.3 SCOPE OF CONSOLIDATION... 20 3.2.3.1 Accounting principles applicable to the scope of consolidation... 20 3.2.3.2 Additions to the scope of consolidation... 21 3.2.3.3 Removals from the scope of consolidation... 21 3.2.3.4 Change in holding and/or in consolidation method... 22 3.2.3.5 List of consolidated companies... 23 3.2.3.6 Evaluation of control... 28 3.2.4 SIGNIFICANT EVENTS OF THE PERIOD... 30 3.2.4.1 France Offices segment... 30 3.2.4.2 Italy Offices segment... 31 3.2.4.3 Hotels in Europe segment... 32 3.2.4.4 Germany Residential segment... 32 3.2.4.5 France Residential segment... 33 3.2.5 NOTES TO THE STATEMENT OF FINANCIAL POSITION... 33 3.2.5.1 Portfolio... 33 3.2.5.2 Financial assets... 41 2

3.2.5.3 Investments in equity affiliates and joint ventures... 42 3.2.5.4 Deferred tax liabilities on the reporting date... 44 3.2.5.5 Short-term loans and finance lease receivables current portion... 45 3.2.5.6 Inventories and work-in-progress... 45 3.2.5.7 Trade receivables... 45 3.2.5.8 Other receivables... 47 3.2.5.9 Cash and cash equivalents... 47 3.2.5.10 Total shareholders equity... 48 3.2.5.11 Statement of liabilities... 49 3.2.5.12 Provisions for contingencies and losses... 56 3.2.5.13 Other short-term liabilities... 58 3.2.5.14 Recognition of financial assets and liabilities... 58 3.2.6 NOTES TO THE STATEMENT OF NET INCOME... 59 3.2.6.1 Accounting principles... 59 3.2.6.2 Operating profit... 59 3.2.6.3 Change in the fair value of assets... 62 3.2.6.4 Income from changes in scope... 62 3.2.6.5 Costs of the net financial debt... 62 3.2.6.6 Net financial income... 62 3.2.6.7 Taxes payable and deferred taxes (including the Exit Tax)... 63 3.2.7 OTHER INFORMATION... 66 3.2.7.1 Personnel remuneration and benefits... 66 3.2.7.2 Earnings per share and diluted earnings per share... 68 3.2.7.3 Off-balance sheet commitments... 69 3.2.7.4 Related-party transactions... 74 3.2.7.5 Executive Compensation... 75 3.2.7.6 Statutory Auditors fees... 75 3.2.8 Segment reporting... 76 3.2.8.1 Accounting principles as regards operating segments - IFRS 8... 76 3.2.8.2 Intangible fixed assets... 76 3.2.8.3 Tangible fixed assets... 77 3.2.8.4 Investment properties/assets held for sale... 77 3.2.8.5 Financial assets... 78 3.2.8.6 Inventories and work-in-progress... 79 3.2.8.7 Contribution to shareholders equity... 79 3.2.8.8 Financial liabilities... 79 3.2.8.9 Derivatives... 80 3.2.8.10 Statement of net income by operating segments... 81 3.2.9 Subsequent events... 83 3.3 STATUTORY AUDITORS REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS..............84 3

3.1 CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017 3.1.1 STATEMENT OF FINANCIAL POSITION Assets thousand Note 3.2.5. INTANGIBLE FIXED ASSETS 1,2 31-Dec-17 31-Dec-16 Goodw ill 1 572 1 572 Other intangible fixed assets 24 592 24 410 TANGIBLE FIXED ASSETS 1.2 Operating properties 176 262 66 810 Other tangible fixed assets 8 399 8 970 Fixed assets in progress 19 120 74 761 Investment properties 1.3 18 417 648 16 763 445 Non-current financial assets 2.2 355 064 255 092 Investments in equity affiliates 3.2 368 901 345 392 Deferred tax assets 4 5 939 10 990 Long-term derivatives 11.5 30 763 24 322 TOTAL NON-CURRENT ASSETS 19 408 261 17 575 764 Assets held for sale 1.3 519 891 297 894 Loans & receivables 5 34 441 17 851 Inventories and w ork-in-progress 6.2 43 237 34 683 Short-term derivatives 11.5 17 415 16 370 Trade receivables 7 279 298 270 596 Tax receivables 13 280 5 098 Other receivables 8 108 024 117 841 Prepaid expenses 12 505 12 148 Cash and cash equivalents 9 1 296 636 1 082 793 Discontinued operations (1) 0 69 391 TOTAL CURRENT ASSETS 2 324 727 1 924 665 TOTAL ASSETS 21 732 988 19 500 429 (1) As at 1 January 2017, following the merger of FEL with Foncière des Régions, the residual logistics operation, not material at the Group level, is no longer included under discontinued operations and have been reclassified under the France Offices sector in the financial statements. 4

Liabilities thousand Note 3.2.5. 31-Dec-17 31-Dec-16 Share capital 224 490 206 274 Share premium account 2 853 696 2 480 609 Ow n shares -4 743-7 496 Consolidated reserves 2 375 752 1 840 211 Net income 914 112 782 774 TOTAL SHAREHOLDERS' EQUITY, GROUP SHARE 10 6 363 307 5 302 372 Non-controlling interests 3 804 352 3 165 604 TOTAL SHAREHOLDERS' EQUITY 10 167 659 8 467 976 Long-term borrow ings 11.2 8 596 316 8 384 176 Long-term derivatives 11.5 261 432 361 037 Deferred tax liabilities 4 551 030 410 044 Pension plan and other employee benefit 12.2 47 508 49 597 Other long-term liabilities 14 062 8 943 TOTAL NON-CURRENT LIABILITIES 9 470 348 9 213 797 Liabilities held for sale 0 0 Trade payables 167 624 114 100 Short-term borrow ings 11.2 1 524 243 1 353 105 Short-term derivatives 11.5 61 424 67 833 Security deposits 5 161 5 074 Advances and pre-payments received 166 062 159 329 Short-term provisions 12.2 10 909 9 599 Current tax 22 982 14 374 Other short-term liabilities 13 117 759 53 035 Deferred income 18 817 14 819 Discontinued operations 0 27 388 TOTAL CURRENT LIABILITIES 2 094 981 1 818 656 TOTAL LIABILITIES 21 732 988 19 500 429 5

3.1.2 STATEMENT OF NET INCOME thousand Note 31-Dec-17 31-Dec-16 Rental income 3.2.6.2.1 927 410 892 734 Unrecovered rental costs 3.2.6.2.2-43 225-42 071 Expenses on properties 3.2.6.2.2-30 509-31 128 Net losses on unrecoverable receivables 3.2.6.2.2-3 658-4 112 NET RENTAL INCOME 850 018 815 423 Management and administration income 20 986 16 904 Business expenses -7 310-5 964 Overhead -110 929-103 478 Development costs (not capitalised) -4 102-1 038 NET COST OF OPERATIONS 3.2.6.2.3-101 355-93 576 Income from other activities 27 979 25 893 Expenses of other activities -21 770-12 812 INCOME FROM OTHER ACTIVITIES 3.2.6.2.4 6 209 13 081 Depreciation of operating assets -9 905-8 546 Net allow ances to provisions and other -5 976-9 136 OPERATING PROFIT 738 991 717 246 Proceeds from disposals of trading properties 6 069 5 405 Exit value and/or amortisations of trading properties -10 482-10 972 NET INCOME FROM INVENTORY PROPERTIES -4 413-5 567 Income from asset disposals 1 055 672 1 258 782 Carrying value of investment properties sold -1 011 971-1 186 362 DISPOSALS OF ASSETS 43 701 72 420 Gains in value of investment properties 1 076 102 777 819 Losses in value of investment properties -160 247-133 272 NET VALUATION GAINS AND LOSSES 3.2.6.3 915 855 644 547 INCOME FROM DISPOSAL OF SECURITIES -4 139 17 748 INCOME FROM CHANGES IN SCOPE 3.2.6.4-3 326-17 553 OPERATING PROFIT (LOSS) AFTER VALUATION IMPACT AND DISPOSALS 1 686 669 1 428 841 Income from non-consolidated companies 0-1 Cost of net financial debt 3.2.6.5-236 915-236 270 Fair value adjustment on derivatives 3.2.6.6 122 27 343 Discounting of liabilities and receivables 3.2.6.6-6 808-3 619 Net change in financial and other provisions 3.2.6.6-23 273-52 801 Share in income of equity affiliates 3.2.5.3.2 43 238 27 374 PRE-TAX NET INCOME (LOSS) 1 463 033 1 190 867 Deferred tax liabilities 3.2.6.7.2-98 438-56 868 Recurrent Tax 3.2.6.7.2-12 014-10 748 NET INCOME (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 1 352 581 1 123 251 Profit (loss) after tax of discontinued operations 0-4 197 NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS 0-4 197 NET INCOME FOR THE PERIOD 1 352 581 1 119 054 Net income from non-controlling interests -438 469-336 280 NET INCOME FOR THE PERIOD - GROUP SHARE 914 112 782 774 Group net income per share ( ) 3.2.7.2 12,41 11,57 Group diluted net income per share ( ) 3.2.7.2 12,33 11,50 6

3.1.3 STATEMENT OF COMPREHENSIVE INCOME 31-déc.-17 31-déc.-16 NET INCOME FOR THE PERIOD 1 352 581 1 119 054 Other items in the comprehensive income statement recognised directly in shareholders equity and: - Destined for subsequent reclassification in the Net income section of the income statement Actuarial losses on employee benefits 1 674-3 829 Effective portion of gains or losses on hedging instruments 7 125 12 523 Tax on other items of comprehensive income -471 3 060 - Not destined for subsequent reclassification in the Net income section 0 0 OTHER ITEMS OF COMPREHENSIVE INCOME 8 328 11 754 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1 360 909 1 130 808 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE To the ow ners of the parent company 916 929 788 879 To non-controlling interests 443 980 341 929 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1 360 909 1 130 808 * GROUP NET INCOME (LOSS) PER SHARE 12,45 11,66 GROUP DILUTED NET INCOME (LOSS) PER SHARE 12,37 11,59 7

3.1.4 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY thousand Share capital Share premium account Treasury shares Reserves and retained earnings Gains and losses recognised directly in shareholders equity Total shareholder s equity, Group share Noncontrolling interests Total shareholder s equity Position at 31 December 2015 199 889 2 449 065-4 264 2 025 208-30 575 4 639 323 3 088 884 7 728 207 Distribution of dividends -80 311-206 255-286 566-151 712-438 278 Capital increase 6 385 112 472 118 857 118 857 Allocation to the legal reserve -617 617 0 0 Other -3 232-3 232 4-3 228 Total comprehensive income for the period 782 774 6 105 788 879 341 929 1 130 808 Of which actuarial gains and losses on post-employment benefits (IAS 19 revised) -469-469 -297-766 Of which effective portion of gains or losses on hedging instruments 6 574 6 574 5 949 12 523 Of which net income (loss) 782 774 782 774 336 277 1 119 051 Impact of change in shareholding/capital increase 10 800 10 800-113 501-102 701 Impact of conversion of ORNANE-type bonds 29 253 29 253 29 253 Shared-based payments 5 058 5 058 5 058 Position at 31 December 2016 206 274 2 480 609-7 496 2 647 455-24 470 5 302 372 3 165 604 8 467 976 Distribution of dividends -76 061-248 670-324 731-223 158-547 889 Capital increase 18 216 450 671-11 468 876 66 326 535 202 Allocation to the legal reserve -1 523 1 523 0 0 Other 2 753-1 325 1 428 457 1 885 Total comprehensive income for the period 914 112 2 817 916 929 443 980 1 360 909 Of which actuarial gains and losses on post-employment benefits (IAS 19 revised) 741 741 462 1 203 Of which effective portion of gains or losses on hedging instruments 2 076 2 076 5 049 7 125 Of which net income (loss) 914 112 914 112 438 469 1 352 581 Impact of change in shareholding/capital increase -7 040-7 040 351 143 344 103 Shared-based payments 5 473 5 473 5 473 Position at 31 December 2017 224 490 2 853 696-4 743 3 311 517-21 653 6 363 307 3 804 352 10 167 659 Dividends paid in cash during the year amounted to 324.7 million, including 76.0 million applied to the share premium and merger accounts and 248.7 million to net income and retained earnings. In 2017, Foncière des Régions undertook capital increases of 473.8 million ( 468.9 million net of expenses) from an issue of 5,076,786 new shares in the first half-year, the asset contribution of Foncière Développement Logements shares in exchange for the creation of 916,951 Foncière des Régions shares and the vesting of 78,375 free shares. The increase in minority interests of nearly 640 million resulted from period net income to noncontrolling interests (+ 444 million), capital increases in Foncière des Murs companies (+ 155 million) and Immeo SE (+ 89 million), the division of Central Sicaf (60 % Beni Stabili, 40% other partners) (+ 300 million), the division of the Silex projects (+ 27 million), the buyout of non-controlling interests in Foncière Développement Logements (- 127 million) and Car Parks (- 28 million) and distributions during the period (- 223 million). 8

3.1.5 STATEMENT OF CASH FLOWS thousand Note 31-Dec-17 31-Dec-16 Total consolidated net income of continuing operations 1 352 581 1 123 251 Total consolidated net income of discontinued operations 0-4 197 Net consolidated income (including minority interests) 1 352 581 1 119 054 Net amortisation, depreciation and provisions (excluding provisions relating to current assets) 17 785 25 801 Unrealised gains and losses relating to changes in fair value 3.2.5.11.5 & 3.2.6.3-915 978-670 248 Income and expenses calculated on stock options and related share-based payments 6 672 5 457 Other calculated income and expenses 26 184 33 658 Gains or losses on disposals -46 533-92 240 Gains or losses from dilution - accretion -18-61 355 Share of income from companies accounted for under the equity method -43 238-27 374 Dividends (non-consolidated securities) 0 0 Cash flow from continuing operations after tax and cost of net financial debt 397 455 336 950 Cash flow from discontinued operations after tax and cost of net financial debt 0 4 788 Cash flow after tax and cost of net financial debt 397 455 341 738 Cost of net financial debt 3.2.6.5 236 915 236 270 Income tax expense (including deferred taxes) 3.2.6.7.2 110 452 67 616 Cash flow from continuing operations before tax and cost of net financial debt 744 822 640 836 Cash flow from discontinued operations before tax and cost of net financial debt 0 10 175 Cash flow before tax and cost of net financial debt 744 822 651 011 Taxes paid -7 280-63 705 Change in w orking capital requirements on continuing operations (including employee benefits liabilities) 719-143 369 NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS 738 261 433 762 NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS 0 62 849 NET CASH GENERATED FROM OPERATING ACTIVITIES 738 261 496 611 Impact of changes in the scope of consolidation (1) -667 541 80 974 Disbursements related to acquisition of tangible and intangible fixed assets 3.2.5.1.2-1 114 261-845 178 Proceeds relating to the disposal of tangible and intangible fixed assets 3.2.5.1.2 1 066 653 1 246 888 Disbursements relating to acquisition of financial assets (non-consolidated securities) -200-140 Proceeds relating to the disposal of financial assets (non-consolidated securities) 828 5 191 Dividends received (companies accounted for under the equity method, non-consolidated securities) 21 465 109 004 Change in loans and advances granted -3 305-39 642 Investment grants received 0 0 Other cash flow from investment activities -6 365-1 803 NET CASH FLOW FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS -702 726 555 294 NET CASH FLOW FROM INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS 0 61 841 NET CASH FLOW FROM INVESTM ENT ACTIVITIES -702 726 617 135 Impact of changes in the scope of consolidation (2) 272 147-191 820 Amounts received from shareholders in connection w ith capital increases: Paid by parent company shareholders 468 876 178 659 Paid by minority shareholders of consolidated companies 66 326 0 Purchases and sales of treasury shares 2 066-3 182 Dividends paid during the reporting period: Dividends paid to parent company shareholders 3.1.4. -324 733-286 566 Dividends paid to non-controlling interests of consolidated companies 3.1.4. -169 385-151 712 Proceeds related to new borrow ings 3.2.5.11.2 2 432 607 3 192 763 Repayments of borrow ings (including finance lease agreements) 3.2.5.11.2-2 226 821-3 219 798 Net interest paid (including finance lease agreements) -235 974-244 239 Other cash flow from financing activities -124 043-89 923 NET CASH FLOW FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS 161 066-815 818 NET CASH FLOW FROM FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS 0-128 335 NET CASH FLOW FROM FINANCING ACTIVITIES 161 066-944 153 Impact of changes in accounting policies 0 0 CHANGE IN NET CASH OF CONTINUING OPERATIONS 196 601 173 238 CHANGE IN NET CASH OF DISCONTINUED OPERATIONS 0-3 645 CHANGE IN NET CASH 196 601 169 593 Opening cash position 1 060 137 890 544 Closing cash position 1 256 738 1 060 137 Change in cash and cash equivalents 196 601 169 593 9

31-déc.-17 31-déc.-16 Gross cash flow from continuing operations (a) 3.2.5.9.2 1 296 636 1 082 793 Gross cash flow from discontinued operations (a) 0 55 Debit balances and bank overdrafts from continuing operations (b) 3.2.5.11.2-26 673-15 797 Debit balances and bank overdrafts from discontinued operations (b) 0-54 Net cash and cash equivalents (c) = (a)- b) 1 269 963 1 066 997 Of which available net cash from continuing operations 1 256 738 1 060 136 Of which available net cash from discontinued operations 0 1 Of which unavailable net cash and cash equivalents 13 225 6 860 Gross debt (d) 3.2.5.11.2 10 169 440 9 788 444 Amortisation of financing costs (e) 3.2.5.11.2-75 554-66 960 Net debt (d) - (c) + (e) 8 823 923 8 654 487 (1) The impact of changes in the scope of consolidation resulting from investing activities ( 39 of IAS 7) of - 667.5 million mainly concerns outflows for the acquisition of companies in the Germany Residential (- 494.0 million) and Hotels in Europe sectors (- 174.4 million). (2) The + 272.1 million impact of changes in the scope of consolidation related to financing activities ( 42A of IAS7) primarily concerns: proceeds related to the sale of the investment in Central Sicaf in the Italy Offices segment (+ 296.0 million net of costs); disbursements related to the acquisition of additional stakes in Foncière Développement Logements (- 37.4 million). 3.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 3.2.1 GENERAL PRINCIPLES 3.2.1.1 Accounting standards The consolidated financial statements of the Foncière des Régions group at 31 December 2017 were prepared in accordance with the international accounting standards and interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union as of the preparation date. These standards include the IFRS (International Financial Reporting Standards) and their interpretations. The statements were approved by the Board of Directors on 14 February 2018. Accounting principles and methods used The accounting principles applied to the consolidated financial statements as at 31 December 2017 are identical to those used for the consolidated financial statements as at 31 December 2016, with the exception of new standards and amendments whose application is mandatory as from 1 January 2017 and which were not applied early by the Group. The new standards subject to mandatory application on or after 1 January 2017 include: amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses, adopted by the European Union on 6 November 2017. The amendment provides clarification on how to estimate the existence of future taxable profits; amendments to IAS 7 Disclosure Initiative" adopted by the European Union on 6 November 2017. As part of its overall reflection on the presentation of financial statements, the IASB published amendments to IAS 7 Statement of cash flows. Under these amendments, entities must provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, whether or not these changes stem from cash flows. 10

New standards awaiting adoption by the European Union, whose application is possible as of 1 January 2017: annual improvements to IFRS (2014-2016 cycle), published on 8 December 2016; its adoption by the European Union was expected in the second half-year of 2017. Early adoption of the IAS 28 Amendment is possible. The new amendments and standards adopted by the European Union whose application was not mandatory at 1 January 2017 and which are not being applied early by the Foncière des Régions group are: IFRS 15 Revenue from Contracts with Customers, adopted by the European Union on 22 September 2016; according to the IASB, the amendments should enter into force on 1 January 2018. In May 2014, the IASB and the FASB published IFRS 15, which changes how revenue is recognised and supersedes IAS 18 Revenue and IAS 11 Construction Contracts. IFRS 15 establishes a fundamental principle that requires revenues from contracts with customers to be recognised in a way that reflects the amount to which a seller expects to be entitled when transferring control of a good or service to a customer. For the group, this standard might have an impact on real estate development. The group does not anticipate any on earnings or shareholders equity. On off-plan contracts, the principle of recognising revenue and margin as a percentage of completion is unaffected. However, the calculation of the percentage of completion will incorporate land costs, resulting in higher recognition of revenue and margin at the beginning of the contract than is the current practice; Amendments to IFRS adopted by the European Union on 31 October 2017; according to the IASB, the amendments should enter into force on 1 January 2018. Clarifications have been made to IFRS 15 concerning the following: identification of performance obligations, principal versus agent application, licenses, and transitory provisions; IFRS 9 Financial Instruments : Hedge Accounting, adopted by the European Union on 22 November 2016; according to the IASB, the standard should enter into force on 1 January 2018. This standard will replace IAS 39 concerning financial instruments. The Group will apply the provisions relating to the classification and assessment of financial instruments and to the impairment of financial assets from 1 January 2018. An impact analysis is underway, in particular as regards the treatment of debt renegotiations. The Group has not yet taken a decision to apply the provisions specific to hedge accounting and will continue to apply the provisions of IAS 39 in 2018; IFRS 16 Leases, adopted by the European Union on 31 October 2017; According to the IASB, the amendments should enter into force on 1 January 2019. On 13 January 2016, the IASB published IFRS 16, which will supersede IAS 17 Leases, as well as the corresponding interpretations (IFRIC 4, SIC 15 and SIC 27). The most significant change is that all the leases concerned will be recognised on the lessee s balance sheet, providing better visibility on their assets and liabilities. The Group has carried out an initial survey of its leases. At this stage, this primarily involves operating leases for company vehicles, car parks and construction leases. The implications for the group should be limited; Amendments to IFRS 4 "Applying IFRS 9 with IFRS 4 Insurance Contracts", adopted by the European Union on 3 November 2017; according to the IASB, the amendments should enter into force on 1 January 2018. They are intended to remedy the temporary accounting consequences of the time-lag between the effective date of IFRS 9 and that of the new standard on insurance contracts replacing IFRS 4 (IFRS 17). 11

IFRS standards and amendments published by the IASB but not adopted by the European Union, not yet mandatory for financial years beginning on or after 1 January 2017: Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions, published on 20 June 2016; according to the IASB, the amendments should enter into force on 1 January 2018. Its adoption by the European Union is expected in the second half-year of 2018. This amendment covers three aspects that concern the following: the effects of vesting conditions on the measurement of cash-settled share-based payments and, share-based payment transactions subject to tax withholding obligations, and a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled; Amendments to IAS 40 Transfers of Investment Property, published on 8 December 2016; according to the IASB, the amendments should enter into force on 1 January 2018. Its adoption by the European Union is expected in the second half-year of 2018; Amendments to IAS 28 "Investments in associates and joint ventures", published 12 October 2017; Amendments to IFRS 9 "Prepayment features with Negative Compensation", published on 12 October 2017; IFRS 17 "Insurance Contracts", published on 18 May 2017; According to the IASB, the amendments should enter into force on 1 January 2021. IFRS 17 lays out the principles as to the recognition, valuation, presentation and disclosures concerning insurance contracts within the scope of application of the standard. This standard has no impact on the financial statements; IFRIC 22 Foreign Currency Transactions and Advance Consideration published 8 December 2016; IFRIC 23 "Uncertainty Over Income Tax Treatments," published in 7 June, 2017; Annual improvements to IFRS (2015-2017 cycle), published on 12 December 2017; According to the IASB, the amendments should enter into force on 1 January 2019. These improvements amend IFRS 3 "Business Combinations", IFRS 11 "Partnerships", IAS 23 "Borrowing Costs" and IAS 12 "Income Taxes". 3.2.1.2 Estimates and judgements The financial statements have been prepared in accordance with the historic cost convention, with the exception of investment properties and certain financial instruments, which were recognised in accordance with the fair value convention. In accordance with the conceptual framework for IFRS, preparation of the financial statements requires making estimates and using assumptions that affect the amounts shown in these financial statements. The significant estimates made by the Foncière des Régions group in preparing the financial statements mainly relate to: the valuations used for testing impairment, in particular assessing the recoverable value of goodwill and intangible fixed assets; measurement of the fair value of investment properties; assessment of the fair value of derivative financial instruments; measurement of provisions. Because of the uncertainties inherent in any valuation process, the Foncière des Régions group reviews its estimates based on regularly updated information. The future results of the transactions in question may differ from these estimates. 12

In addition to the use of estimates, Group management makes use of judgements to define the appropriate accounting treatment of certain business activities and transactions when the IFRS standards and interpretations in effect do not precisely address the accounting issues involved. 3.2.1.3 Operating segments The operating segments of the Foncière des Régions group are detailed in paragraph 3.2.8.1. 3.2.1.4 IFRS 7 Reference table Liquidity Risk 3.2.2.2 Financial expense sensitivity 3.2.2.3 Credit Risk 3.2.2.4 Market Risk 3.2.2.6 Sensitivity of the fair value of investment properties 3.2.5.1.3 Covenants 3.2.5.11.6 3.2.2 FINANCIAL RISK MANAGEMENT The operating and financial activities of the Company are exposed to the following risks: 3.2.2.1 Marketing risk for properties under development The Group is involved in property development. As such, it is exposed to a number of different risks, particularly risks associated with construction costs, completion delays and the marketing of properties. These risks can be assessed in light of the schedule of properties under development (see 3.2.5.1.4) 3.2.2.2 Liquidity risk Liquidity risk is managed in the medium and long term with multi-year cash management plans and, in the short term, by using confirmed and undrawn lines of credit. At 31 December 2017, Foncière des Regions available cash and cash equivalents amounted to 2,777 million, including 1,321 million in usable unconditional credit lines, 1,296 million in investments and 160 million in unused overdraft facilities. The graph below summarises the maturities of the borrowings (in M), including treasury bills existing as at 31 December 2017: 2 500 2 000 1 500 1 000 500 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 and after Maturity Interests 13

2018 maturities include 730.4 million in treasury bills. The amount of interest payable up to the maturity of the debt, estimated on the basis of the outstanding amount at 31 December 2017 and the average interest rate on the debt, totalled 986 million. Details concerning the debt maturities are provided in Note 3.3.5.11.3, and a description of the banking covenants and accelerated payment clauses included in the loan agreements is presented in Note 3.2.5.11.6. During the year 2017, the Group continued to diversify its sources of finance, reduce the cost of debt and extend its maturity. France Offices: In June 2017, Foncière des Régions successfully completed a 500 million bond issue, maturing in 2027, with a fixed coupon of 1.5%. At the same time, the Group redeemed 273.1 million. This amount represents 55% of the bond issue maturing in 2021 and bearing interest at the rate of 1.75%. Italy Offices: The quality of its debt has clearly been improved with the obtaining of a BBB- credit rating from Standard & Poor's this year and through 1.2 billion of refinancing and financing. In February 2017, Beni Stabili redeemed its 270 million ORNANE-type bond maturing in April 2019, thus reducing the risk of future dilution. In July 2017 and August 2017, two long-term mortgage financings with maturities of 8.5 and 10 years, totalling 336 million, were partly drawn down. After obtaining its BBB- rating in July 2017, Beni Stabili successfully issued a 300 million seven-year bond (maturing in 2024) with a coupon of 1.625%. Hotels in Europe: In March 2017, Foncière des Murs arranged mortgage financing of 279 million for eight years as part of the acquisition of 17 hotels in Spain. In April and May 2017, it obtained ten-year 105 million financing for the B&B and NH Hotels in Germany portfolios. In May 2017, it also refinanced a portfolio of 166 B&B assets in France in the amount of 290 million for a period of seven years. Germany Residential: During 2017, Immeo SE took out several mortgage loans as part of its acquisitions, including a 10-year 115 mortgage loan to acquire a portfolio of 1,827 units in Berlin, Dresden, Leipzig and a 10-year 176 million mortgage loan to finance acquisitions in Berlin, Dresden and Leipzig and Hamburg. Immeo has also continued to refinance older debts to optimise their maturity and financial conditions. Thus, a total of 165 million was raised long-term (9.9 years on average) backed by portfolios located half in Essen and Duisburg and half in Berlin. 14

3.2.2.3 Interest rate risk The Group s exposure to the risk of changes in market interest rates is linked to its floating rate and long-term financial debt. To the extent possible, bank debt is primarily hedged via financial instruments (see 3.2.5.11.5). At 31 December 2017, after taking interest rate swaps into account, approximately 82% of the Group s debt was hedged, and the bulk of the remainder was covered by interest rate caps, which resulted in the following sensitivity to changes in interest rates: The impact of a 100 bps rate increase as at 31 December 2017 is a loss of 12,764 thousand on the 2018 Group share of recurring net income. The impact of a 50 bps rate increase as at 31 December 2017 is a loss of 5,741 thousand on the 2018 Group share of recurring net income. The impact of a 50 bps rate reduction as at 31 December 2017 is an increase of 4,457 thousand on the 2018 Group share of recurring net income. 3.2.2.4 Financial counterparty risk Given Foncière des Régions contractual relationships with its financial partners, the Company is exposed to counterparty risk. If one of its partners is not in a position to honour its undertakings, the Group s net income could suffer an adverse effect. This risk primarily involves the hedging instruments entered into by the Group and which would have to be replaced by a hedging transaction at the current market rate in the event of a default by the counterparty. The counterparty risk is limited by the fact that Foncière des Régions is a borrower, from a structural standpoint. The risk is therefore mainly restricted to the investments made by the Group and to its counterparties in derivative product transactions. The Company continually monitors its exposure to financial counterparty risk. The Company s policy is to deal only with top-tier counterparties, while diversifying its financial partners and its sources of funding. Counterparty risk is included in the measurement of cash instruments. It totalled 1,033 thousand in the 2017 period. 3.2.2.5 Leasing counterparty risk Foncière des Régions rental income is subject to a certain degree of concentration, to the extent that the principal tenants (Orange, Telecom Italia, AccorHotels, Suez, B&B and Enedis/EDF) generate the primary annual rental income. It should be noted that in 2017, the Group split up the Telecom Italia portfolio and now holds no more than 60%. The Group made significant investments in Spain and thereby diversified its Hotels lessees. Foncière des Régions does not believe it is significantly exposed to the risk of insolvency, since its tenants are selected based on their creditworthiness and the economic prospects of their market segments. The operating and financial performance of the main tenants is regularly reviewed. In addition, tenants grant the Group financial guarantees when leases are signed. The Group has not recorded any significant overdue payments. 15

3.2.2.6 Risks related to changes in the value of the portfolio Changes in the fair value of investment properties are recognised in the income statement. Changes in property values can thus have a material impact on the operating performance of the Group. In addition, part of the Company s operating income is generated by the sales plan, the income of which is equally dependent on property values and on the volume of possible transactions. Rentals and property values are cyclical in nature, the duration of the cycles being variable but generally long-term. Different domestic markets have differing cycles that vary from each other in relation to specific economic and market conditions. Within each national market, prices also follow the cycle in different ways and with varying degrees of intensity, depending on the location and category of the assets. The macroeconomic factors that have the greatest influence on property values and determine the various cyclical trends include the following: interest rates; the liquidity on the market and the availability of other profitable alternative investments; economic growth. Low interest rates, abundant liquidity on the market and a lack of profitable alternative investments generally lead to an increase in property asset values. Economic growth generally increases demand for leased space and paves the way for rent levels to rise, particularly in the office sector. These two consequences lead to an increase in the price of real estate assets. Nevertheless, in the medium term, economic growth generally leads to an increase in inflation and then an increase in interest rates, expanding the availability of profitable alternative investments. Such factors exert downward pressure on property values. The investment policy of Foncière des Régions is to minimise the impact of the various stages of the cycle by choosing investments that: have long-term leases and high quality tenants, which soften the blow of a reduction in market rental income and the resulting decline in real estate prices; are located in major city centres; have low vacancy rates, in order to avoid the risk of having to re-let vacant space in an environment where demand may be limited. The holding of real estate assets intended for leasing exposes Foncière des Régions to the risk of fluctuation in the value of real estate assets and lease payments. Despite the uncertainty created by the economic downturn, this exposure is limited to the extent that the rentals invoiced are derived from rental agreements, the term and diversification of which mitigate the effects of fluctuations in the rental market. The sensitivity of the fair value of investment properties to changes in capitalisation rates is analysed in 3.2.5.1.3. 3.2.2.7 Exchange rate risk The Company operates in the Euro zone. It is therefore not exposed to exchange rate risk. 16

3.2.2.8 Risks related to changes in the value of shares and bonds The Group is exposed to risks for two classes of shares (see 3.2.5.2.2). This risk primarily involves listed securities in companies consolidated according to the equity method, which are valued according to their value in use. Value in use is determined based on independent assessments of the real estate assets and financial instruments. In addition, Foncière des Régions and Beni Stabili issued bonds (ORNANE) valued at their fair value in the income statement at each reporting date. The fair value corresponds to the bond's monthly closing price, exposing the Group to changes in the bond value. The specific features of the ORNANE are described in Note 3.2.5.11.4. 3.2.2.9 Tax environment 3.2.2.9.1 Changes in the French tax environment The French tax environment has not seen any changes affecting the Group s fiscal situation since 1 January 2017. 3.2.2.9.2. Changes in the Italian tax environment The changes in the Italian tax environment concern the corporation tax rate (IRES by the Italian acronym), which is lowered from 27.5% to 24% as of financial years ending in 2017. 3.2.2.9.3. Changes in the German tax environment The Group has not observed any significant change in the German tax environment. 3.2.2.9.4. Tax risks Given the ongoing changes to tax legislation, the Group is likely to be subject to reassessment proposals from the Tax Administration. If our counsel believes that an adjustment presents a risk of reassessment, a provision is made. The list of the main ongoing proceedings includes the following: Foncière des Régions tax inspection Foncière des Régions accounts were audited for the 2012 and 2013 financial years, which resulted in a reassessment proposal in December 2015 for corporate value added tax (CVAE) and corporate tax generating: a 9.7 million tax impact on the principal, relating to (i) corporation tax, with a correlative increase in deficits on the taxable segment in the amount of 36.6 million and (ii) to the CVAE. This reassessment is being contested and, based on the analysis by the Company s legal counsel, no provision has been recorded to that effect as at 31 December 2017. The reassessment proposal concerning a reduction in deficits in the taxable segment of 1 million on a total of 240 million was accepted; a new reassessment proposal concerning the 2014 corporation tax was received as a follow-up to the reassessment made for 2012 and 2013, generating a financial impact of 3.9 million in principal. On the same basis as for the 2012 and 2013 financial years, this reassessment proposal is being contested and, based on the analysis by the Company s legal counsel, no provision was recorded to that effect as at 31 December 2017. 17

Foncière Europe Logistique tax audit (merged with and into Foncière des Régions on 31 December 2016) A corporate income tax reassessment proposal was received by Foncière Europe Logistique amounting to 3.2 million for financial years 2007 and 2008, followed by a tax collection procedure and a payment during the first half of 2012. Foncière Europe Logistique is nonetheless contesting this reassessment and filed a claim against it. The Tax Administration rejected the claim on the merits but nevertheless granted an abatement of 2.4 million in principal and interest to take into account the fact that the financial consequences were spread out over 2008, 2009, 2010 and 2011. The Company therefore paid 0.8 million, which it contests on the merits. The case was referred to the Administrative Court, which rejected Foncière Europe Logistique s application in December 2015. The Administrative Court of Appeal of Versailles annulled the judgement of the Court in a ruling of 20 July 2017, which was appealed to the Conseil d Etat and is still pending. Based on the analysis by legal counsel, no provision has been recorded for this dispute as at 31 December 2017. An accounting audit pertaining to the 2010 and 2011 financial years took place during the 2013 financial year, which ended in a reassessment proposal on the corporate tax for 3.5 million on the same grounds as the previous reassessment proposal for 2007 and 2008. This reassessment was followed by a tax collection procedure and payment. The case was referred to the Administrative Court, which rejected Foncière Europe Logistique s request in June 2016. The Administrative Court of Appeal of Versailles annulled the judgement of the Court in a ruling of 29 July 2017, which was appealed to the Conseil d Etat and is still pending. Based on the analysis by legal counsel, no provision has been recorded for this dispute as at 31 December 2017. An audit of Foncière Europe Logistique s accounts was conducted covering the 2012 and 2013 financial years, and culminated in a proposed corporate tax reassessment amounting to 1.3 million, on the same merits as the previous reassessment proposal for 2007 to 2011. The case was referred to the Administrative Court, which ruled in favour of Foncière Europe Logistique s application in December 2017. Foncière des Murs tax audit Foncière des Murs was subject to an accounting audit for the 2010 and 2011 financial years, which resulted in a reassessment proposal for the CVAE in the amount of 2.4 million. This reassessment proposal was confirmed in April 2015 following administrative reviews. It gave rise to a tax collection procedure and payment in the first half of 2016. The proposal is being contested in its entirety, and, based on the analysis by the Company s legal counsel, no provision has been recorded to that effect as at 31 December 2017. Foncière des Murs accounts were also audited for the 2012, 2013 and 2014 financial years, which resulted in a reassessment proposal in December 2015 for corporate value added tax (CVAE) in the amount of 2.2 million, on the same grounds as the previous reassessment proposal for 2010 and 2011. This reassessment proposal was confirmed in May 2016 following administrative reviews. It gave rise to a tax collection procedure and payment in the second half of 2016. The dispute is still pending and, based on the analysis by the Company s legal counsel, no provision was recorded to that effect as at 31 December 2017. 18

SNC Otello (Foncière des Murs subsidiary) tax audit SNC Otello s accounts were audited for the 2011, 2012 and 2013 financial years, which resulted in a reassessment proposal for the CVAE in the amount of 0.5 million. This reassessment proposal was confirmed in April 2015 following administrative reviews. It gave rise to a tax collection procedure and payment in the first half of 2016. This proposal is being contested in its entirety, and, based on the analysis by the Company s legal counsel, no provision has been recorded to that effect as at 31 December 2017. The accounts of SNC Otello were also audited for the 2014, 2015 and 2016 financial years, which resulted in a reassessment proposal in November 2017 for corporate value added tax (CVAE) in the amount of 0.2 million, on the same grounds as the previous reassessment proposal for 2011, 2012 and 2013. This proposal is being contested in its entirety, and, based on the analysis by the Company s legal counsel, no provision has been recorded to that effect as at 31 December 2017. République tax audit République was subject to a tax audit for the 2008, 2009 and 2010 financial years. A tax reassessment proposal for 2008, which has no impact on the corporate income tax owed, was received at the end of December 2011. The Administrative Tribunal of Montreuil reached a ruling in the company s favour on 6 June 2017 which has not been appealed by the government. Tax audits of the Germany Residential segment Immeo and all its subsidiaries were subject to a tax audit for the 2011, 2012 and 2013 financial years. These audits are ongoing. No provision has been recorded for these audits as at 31 December 2017. Tax audits of the Italy Offices segment: Comit Fund tax dispute Beni Stabili: On 17 April 2012, following a court decision, the Italian tax administration refunded the debt borne by Beni Stabili for the Comit Fund dispute (principal: 58.2 million and interest: 2.3 million). In April 2012, the Tax Administration appealed this decision. The Court of Appeal ruled in favour of the Tax Administration on 18 December 2015. The dispute with the Tax Administration was settled with the payment of 55 million. The 56.2 million provision recorded in 2015 was reversed as at 31 December 2016. However, Comit Fund and Beni Stabili have not entered a joint agreement to definitively agree that they each will pay an equal share of this adjustment. Civil arbitration proceedings were undertaken by Comit Fund and are still ongoing at 31 December 2017. No accounting provision has been recorded for them. Tax audits: Beni Stabili was subject to a tax audit for the 2008, 2009, 2010 and 2011 financial years. The tax administration issued reassessments in the amount of 9.8 million for the principal, which is disputed by the Company in its entirety. An agreement was signed in December 2017 which put an end to the dispute concerning 2008, 2009 and 2010. The impact on the income statement was 1.7 million. With regard to 2011, the dispute was still ongoing at 31 December 2017. A payment of 1.3 million had to be made pending a decision. No accounting provision has been recorded for this claim. 19

3.2.2.9.5. Deferred tax liabilities Most of the Group s property companies have opted for the SIIC regime in France, the SIIQ regime in Italy and the SOCIMI regime in Spain. The impact of deferred tax liabilities is therefore essentially related to the Germany Residential segment and to investments in the Hotels in Europe for which the SIIC regime is not applicable (Germany, Spain, Belgium, Netherlands and Portugal). In the case of Spain, all Spanish companies have opted for the SOCIMI regime exemption. However, there are deferred tax liabilities related to assets held by the companies prior to opting for SOCIMI treatment. 3.2.3 SCOPE OF CONSOLIDATION 3.2.3.1 Accounting principles applicable to the scope of consolidation Consolidated subsidiaries and structured entities IFRS 10 These financial statements include the financial statements of Foncière des Régions and the financial statements of the entities (including structured entities) that it controls and its subsidiaries. The Foncière des Régions group has control when it: has power over the issuing entity; is exposed or is entitled to variable returns due to its ties with the issuing entity; has the ability to exercise its power in such as manner as to affect the amount of returns that it receives. The Foncière des Régions group must reassess whether it controls the issuing entity when facts and circumstances indicate that one or more of the three factors of control listed above have changed. A structured entity is an entity structured in such a way that the voting rights or similar rights do not represent the determining factor in establishing control of the entity; this is particularly the case when the voting rights only involve administrative tasks and the relevant business activities are governed by contractual agreements. If the Group does not hold a majority of the voting rights in an issuing entity in order to determine the power exercised over an entity, it analyses whether it has sufficient rights to unilaterally manage the issuing entity s relevant business activities. The Group takes into consideration any facts and circumstances when it evaluates whether the voting rights that it holds in the issuing entity are sufficient to confer power to the Group, including the following: the number of voting rights that the Group holds compared to the number of rights held respectively by the other holders of voting rights and their distribution; the potential voting rights held by the Group, other holders of voting rights or other parties; the rights under other contractual agreements; the other facts and circumstances, where applicable, which indicate that the Group has or does not have the actual ability to manage relevant business activities at the moment when decisions must be made, including voting patterns during previous shareholders meetings. Subsidiaries and structured entities are fully consolidated. Equity affiliates IAS 28 An equity affiliate is an entity in which the Group has significant control. Significant control is the power to participate in decisions relating to the financial and operational policy of an issuing entity without, however, exercising control or joint control on these policies. 20

The results and the assets and liabilities of equity affiliates are recognised in these consolidated financial statements according to the equity method. Partnerships (joint control) IFRS 11 Joint control means the contractual agreement to share the control exercised over a company, which only exists in the event where the decisions concerning relevant business activities require the unanimous consent of the parties sharing the control. Joint ventures A joint venture is a partnership in which the parties which exercise joint control over the entity have rights to its net assets. The results and the assets and liabilities of joint ventures are recognised in these consolidated financial statements according to the equity method. Joint operations A joint operation is a partnership in which the parties exercising joint control over the operation have rights to the assets, and obligations for the liabilities relating to it. Those parties are called joint operators. A joint operator must recognise the following items relating to its interest in the joint operation: its assets, including its proportionate share of assets held jointly, where applicable; its liabilities, including its proportionate share of liabilities undertaken jointly, where applicable; the income that it derived from the sale of its proportionate share in the yield generated by the joint operation; its proportionate share of income from the sale of the yield generated by the joint operation; the expenses that it has committed, including its proportionate share of expenses committed jointly, where applicable. The joint operator accounts for the assets, liabilities, income and expenses pertaining to its interests in a joint operation in accordance with the IFRS that apply to these assets, liabilities, income and expenses. No Group company is considered to constitute a joint operation. 3.2.3.2 Additions to the scope of consolidation Additions to the scope of consolidation for each business are presented in the scope reporting table detailed by company at the start of each segment. The segments concerned are France Offices, Italy Offices, Hotels in Europe and Germany Residential. 3.2.3.3 Removals from the scope of consolidation Removals from the scope of consolidation for each business are presented in the scope reporting table detailed by company at the end of each segment. The segments concerned are France Offices, Italy Offices, Hotels in Europe, Germany Residential and France Residential. 21

3.2.3.4 Change in holding and/or in consolidation method Capital increases of Foncière des Murs Impact on the percentage held During the first 2017 half-year Foncière des Murs undertook several capital increases in the amount of 311.1 million ( 310.2 million net of costs) by issuing 13,712,124 new shares, including 4,449,129 shares following the distribution of the extraordinary dividend in shares. As a result of these two capital increases of 28 March and 19 May 2017, Foncière des Régions holds 43,907,732 Foncière des Murs shares, or 50.00% of the equity, versus 49.91% as at 31 December 2016. Acquisition of Beni Stabili shares Impact on the percentage held In the second 2017 half-year Foncière des Régions acquired 4,135,341 Beni Stabili shares for a total of 2.8 million. The average acquisition price is 0.68 per share. At 31 December 2017, Foncière des Régions held a 52.43% stake in Beni Stabili versus 52.24% at 31 December 2016. Amendment to the Latécoère 2 shareholder agreement Change from equity method to full consolidation Following the amendment to the shareholders agreement in December 2017, Latécoère 2 has been fully consolidated since 31 December 2017. Split of the Silex 1 and Silex 2 buildings with Assurances du Crédit Mutuel Impact on the percentage held A partnership agreement was signed in December 2017 between Foncière des Régions and Assurances du Crédit Mutuel to share the Silex 1 asset and the Silex 2 development project. Foncière des Régions maintains 50.1% of the capital and continues to fully consolidate the SCIs of 9 and 15 rue des Cuirassiers. Market exchange offer on Foncière Développement Logements Impact on the percentage held Foncière des Régions initiated an MEO for the shares of Foncière Développement Logements and received 26,302,577 Foncière Développement Logements shares. Following this transaction and the cash purchase of Foncière Développement Logements shares, Foncière des Régions holds 100% of the capital of its subsidiary, as compared to 61.3% at 31 December 2016. The company was delisted on 29 December 2017. The contribution of Foncière Développement Logements shares was paid by issuing 916,951 shares of Foncière des Régions. Buyback and cancellation of République shares - Impact on the percentage held On 27 November 2017, République undertook a capital reduction not due to losses by buying and cancelling 2,612,234 shares held by Predica (41% of the capital). At 31 December 2017 Foncière des Régions held 100% of the capital of its subsidiary République, as compared to 59.5% at 31 December 2016. 22

3.2.3.5 List of consolidated companies 93 companies in the France Offices segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 Foncière des Régions France Parent company Opco New w ork France FC 100,00 - Le Clos de Chanteloup France FC 100,00 - Bordeaux Lac France FC 100,00 - Sully Chartres France FC 100,00 - Sucy Parc France FC 100,00 - Gambetta Le Raincy France FC 100,00 - Orly promo France FC 100,00 - Silex Promo France FC 100,00-21 Rue Jean Goujon France FC 100,00 - Villouvette Saint-Germain France FC 100,00 - La Mérina Fréjus France FC 100,00 - Normandie Niemen Bobigny France FC 100,00 - Le Printemps Sartrouville France FC 100,00 - Gaugin St Ouen L'aumone France FC 100,00 - SCI du 15 rue des Cuirassiers France FC 50,10 100,00 SCI du 9 rue des Cuirassiers France FC 50,10 100,00 SCI Latécoère 2 France FC 50,10 50,10 SCI Rueil B2 France FC 100,00 100,00 SCI Rueil B3 B4 France FC 100,00 100,00 SCI Factor E France EM/EA 34,69 34,69 SCI Orianz France EM/EA 34,69 34,69 Latepromo France FC 100,00 100,00 SNC Promomurs France FC 100,00 100,00 FDR Participation France FC 100,00 100,00 SCI avenue de la Marne France FC 100,00 100,00 Omega B France FC 100,00 100,00 GFR Ravinelle France FC 100,00 100,00 SCI du 288 rue Duguesclin France FC 100,00 100,00 SCI Fédérimmo France FC 60,00 60,00 Iméfa 127 France FC 100,00 100,00 SCI Atlantis France FC 100,00 100,00 EURL Fédération France FC 100,00 100,00 SCI Raphaël France FC 100,00 100,00 SARL Foncière Margaux France FC 100,00 100,00 SCI du 32 avenue P Grenier France FC 100,00 100,00 SCI du 40 rue JJ Rousseau France FC 100,00 100,00 SCI du 3 place A Chaussy France FC 100,00 100,00 SARL BGA Transactions France FC 100,00 100,00 SCI 35/37 rue Louis Guérin France FC 100,00 100,00 SARL du 25-27 quai Félix Faure France FC 100,00 100,00 SCI du 10B et 11 A 13 allée des Tanneurs France FC 100,00 100,00 SCI du 125 avenue du Brancolar France FC 100,00 100,00 SCI du 8 rue M Paul France FC 100,00 100,00 SCI du 1 rue de Chateaudun France FC 100,00 100,00 SCI du 1630 Avenue de la Croix Rouge France FC 100,00 100,00 SCI du 682 cours de la Libération France FC 100,00 100,00 SARL du 106-110 rue des Troënes France FC 100,00 100,00 SCI du 2 rue de L Ill France FC 100,00 100,00 SCI du 20 avenue Victor Hugo France FC 100,00 100,00 SARL du 2 rue Saint Charles France FC 100,00 100,00 SNC Télimob Paris France FC 100,00 100,00 SNC Télimob Nord France FC 100,00 100,00 SNC Télimob Rhône Alpes France FC 100,00 100,00 SNC Télimob Sud Ouest France FC 100,00 100,00 SNC Télimob Est France FC 100,00 100,00 SNC Télimob Paca France FC 100,00 100,00 SNC Télimob Ouest France FC 100,00 100,00 SARL Télimob Paris France FC 100,00 100,00 SNC Latécoère France FC 50,10 50,10 Palmer Plage SNC France FC 100,00 100,00 SCI Palmer Montpellier France FC 100,00 100,00 SCI Dual Center France FC 100,00 100,00 SAS Cœur d Orly Promotion France EM/EA 50,00 50,00 FDR2 France FC 100,00 100,00 23

Companies in the France Offices segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 SCI bureaux Cœur d Orly France EM/EA 25,00 25,00 SNC hld Bureaux Cœur d Orly France EM/EA 50,00 50,00 SNC Commerces Cœur d Orly France EM/EA 25,00 25,00 SNC hld Commerces Cœur d Orly France EM/EA 50,00 50,00 FDR 4 France FC 75,00 75,00 OPCI Office CB21 France FC 75,00 75,00 SCI Euromarseille 1 France EM/JV 50,00 50,00 SCI Euromarseille 2 France EM/JV 50,00 50,00 SCI Euromarseille BI France EM/JV 50,00 50,00 SCI Euromarseille BH France EM/JV 50,00 50,00 SCI Euromarseille BL France EM/JV 50,00 50,00 SCI Euromarseille PK France EM/JV 50,00 50,00 SCI Euromarseille Invest France EM/JV 50,00 50,00 SCI Euromarseille H France EM/JV 50,00 50,00 SCI Euromarseille BH2 France EM/JV 50,00 50,00 FDR 7 France FC 100,00 100,00 Technical France FC 100,00 100,00 GFR Kléber France FC 100,00 100,00 Oméga A France FC 100,00 100,00 Oméga C France FC 100,00 100,00 Le Ponant 1986 France FC 100,00 100,00 Ruhl Côte d Azur France FC 100,00 100,00 SCI Pompidou France FC 100,00 100,00 SCI 11 place de l Europe France FC 50,09 50,09 SCI Lenovilla France EM/JV 50,10 50,10 SNC Lenopromo France FC 100,00 100,00 SCI Meudon Saulnier France FC 100,00 100,00 SCI Charenton France FC 100,00 100,00 SCI Euromarseille 3 France Liquidated - 50,00 EURL Languedoc 34 France Merger - 100,00 Foncière Palmer SNC France Merger - 100,00 Palmer Transactions SNC France Merger - 100,00 SARL du 11 rue Victor Leroy France Merger - 100,00 SCI du 11 avenue de Sully France Merger - 100,00 SNC Sup 3 France Merger - 100,00 SCI Euromarseille M France Merger - 50,00 The registered office of the parent company Foncière des Régions is located at 18 avenue François Mitterrand 57000 Metz. The other fully consolidated subsidiaries in the France Offices segment have their registered office located at 10 and 30 avenue Kléber 75116 Paris. 18 companies in the Italy Offices segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 Beni Stabili S.p.A. SIIQ (parent company) 100% controlled Italy FC 52,43 52,24 Central Società di Investimento per Azioni a capitalo fisso Central SICAF S.p.A. Italy FC 31,46 Revalo S.p.A. Italy FC 52,43 52,24 Investire S.p.A. SGR Italy EM 9,38 9,35 RGD Ferrara 2013 Srl Italy EM 26,21 26,12 Resolution Tech S.r.L. Italy EM 15,73 15,67 Beni Stabili 7 S.p.A. Italy FC 52,43 52,24 Beni Stabili Development S.p.A. Italy FC 52,43 52,24 B.S. Activita commercial 1 S.r.L. Italy FC 52,43 52,24 B.S. Actività commercial 2 S.r.L. Italy FC 52,43 52,24 B.S. Actività commercial 3 S.r.L. Italy FC 52,43 52,24 B.S. Immobiliare 9 SINQ S.p.A. Italy FC 52,43 52,24 RGD Gestioni S.r.L. Italy FC 52,43 52,24 Beni Stabili Retail S.r.l. Italy FC 28,83 28,73 Beni Stabili Real Estate Advisory S.r.L. Italy FC 52,43 52,24 B.S. Engineering S.r.l. Italy FC 52,43 52,24 Imser Securitisation S.r.L.. Italy FC 52,43 52,24 Imser Securitisation 2 S.r.L. Italy FC 52,43 52,24 B.S. Immobiliare 5 S.r.L. Italy Merger - 52,24 Beni Stabili Development Milano Greenway S.p.A. Italy Merger - 52,24 Sviluppo Ripamonti S.r.L. Italy Merger - 52,24 The registered office of the parent company Beni Stabili is located at 38 Via Piemonte 00187 Rome. 24

126 companies in the Hotels in Europe segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 SCA Foncière des Murs (Parent company) 100% controlled France FC 49,91 49,91 Constance France EM/EA 20,35 - Constance Lux 1 Luxembourg EM/EA 20,35 - Constance Lux 2 Luxembourg EM/EA 20,35 - So Hospitality Luxembourg EM/EA 20,35 - Nice-M France EM/EA 20,35 - H Invest Lux 2 Luxembourg FC 50,00 - Hotel Amsterdam Noord FDM Netherlands FC 50,00 - Hotel Amersfoort FDM Netherlands FC 50,00 - Investment FDM Rocatiera Spain FC 50,00 - Bardiomar Spain FC 50,00 - Trade Center Hotel Spain FC 50,00 - Airport Garden Hotel NV Belgium EM/EA 20,35 20,31 H Invest Lux Luxembourg FC 50,00 49,91 Samoens SAS France FC 12,55 12,53 Foncière B4 Hôtel Invest France FC 25,10 25,05 B&B Invest Espagne SLU Spain FC 50,00 49,91 Rock-Lux Luxembourg EM/EA 20,35 20,31 Société Liloise Investissement Immobilier Hôtelier SA France EM/EA 20,35 20,31 Spiegelrei HLD SA Belgium EM/EA 20,35 20,31 Alliance et Compagnie SAS France EM/EA 20,35 20,31 Spiegelrei SA M&F Belgium EM/EA 20,35 20,31 Résidence Cour Saint Georges SA Belgium EM/EA 20,35 20,31 Hermitage Holdco France EM/EA 20,35 20,31 Berlin I (Propco Westin Grand Berlin) Germany EM/EA 19,31 19,28 Opco Grand Hôtel Berlin Betriebs (Westin berlin) Germany EM/EA 19,31 19,28 Berlin II (Propco Park Inn Alexanderplatz) Germany EM/EA 19,31 19,28 Opco Hôtel Stadt Berlin Betriebs (Park-Inn) Germany EM/EA 19,31 19,28 Berlin III (Propco Mercure Potsdam) Germany EM/EA 19,31 19,28 Opco Hôtel Potsdam Betriebs (Mercure Potsdam) Germany EM/EA 19,31 19,28 Dresden I (Propco Westin Bellevue) Germany EM/EA 19,31 19,28 Opco Hôtel Bellevue Dresden Betriebs (Westein Bellevue) Germany EM/EA 19,31 19,28 Dresden II (Propco Ibis Hôtel Dresden) Germany EM/EA 19,31 19,28 Dresden III (Propco Ibis Hôtel Dresden) Germany EM/EA 19,31 19,28 Dresden IV (Propco Ibis Hôtel Dresden) Germany EM/EA 19,31 19,28 Opco BKL Hotelbetriebsgesellschaft (Dresden II to IV) Germany EM/EA 19,31 19,28 Dresden V (Propco Pullman New a Dresden) Germany EM/EA 19,31 19,28 Opco Hôtel New a Dresden Betriebs (Pullman) Germany EM/EA 19,31 19,28 Leipzig I (Propco Westin Leipzig) Germany EM/EA 19,31 19,28 Opco HotelgesellschaftGeberst, Betriebs (Westin Leipzig) Germany EM/EA 19,31 19,28 Leipzig II (Propco Radisson Blu Leipzig) Germany EM/EA 19,31 19,28 Opco Hôtel Deutschland Leipzig Betriebs (Radisson Blu) Germany EM/EA 19,31 19,28 Erfurt I (Propco Radisson Blu Erfurt) Germany EM/EA 19,31 19,28 Opco Hôtel Kosmos Erfurt (Radisson Blu) Germany EM/EA 19,31 19,28 Foncière Développement Tourisme France FC 25,05 25,00 FDM Management France EM/EA 20,35 20,31 LHM Holding Lux SARL Luxembourg EM/EA 20,35 20,31 LHM ProCo Lux SARL Germany EM/EA 24,49 20,31 SCI Rosace France EM/EA 20,35 20,31 Mo First Five Germany EM/EA 23,02 19,09 Star Budget Hôtel GmbH Germany EM/EA 20,35 20,31 Financière Hope SAS France EM/EA 20,35 20,31 SCI Hôtel Porte Dorée France EM/JV 25,00 24,95 FDM M Lux Luxembourg EM/EA 20,35 20,31 OPCO Rosace France EM/EA 20,35 20,31 Exco Hôtel Belgium EM/EA 20,35 20,31 Invest Hôtel Belgium EM/EA 20,35 20,31 Mo Lux 1 Luxembourg FC 50,00 49,91 Mo Drelinden, Niederrad, Düsseldorf Germany FC 47,00 46,91 Mo Berlin Germany FC 47,00 46,91 Ringer Germany FC 50,00 49,91 B&B Invest Lux 5 Germany FC 46,50 46,41 B&B Invest Lux 6 Germany FC 46,50 46,41 SARL Loire France FC 50,00 49,91 Foncière Otello France FC 50,00 49,91 SNC Hôtel René Clair France FC 50,00 49,91 Foncière Manon France FC 50,00 49,91 Foncière Ulysse France FC 50,00 49,91 Ulysse Belgium Belgium FC 50,00 49,91 Ulysse Trefonds Belgium FC 50,00 49,91 Foncière No Bruxelles Grand Place Belgium FC 50,00 49,91 Foncière No Bruxelles Aéroport Belgium FC 50,00 49,91 Foncière No Bruges Centre Belgium FC 50,00 49,91 Foncière Gand Centre Belgium FC 50,00 49,91 Foncière Gand Opéra Belgium FC 50,00 49,91 Foncière IB Bruxelles Grand-Place Belgium FC 50,00 49,91 Foncière IB Bruxelles Aéroport Belgium FC 50,00 49,91 Foncière IB Bruges Centre Belgium FC 50,00 49,91 Foncière Antw erp Centre Belgium FC 50,00 49,91 Foncière Bruxelles Expo Atomium Belgium FC 50,00 49,91 Murdelux SARL Luxembourg FC 50,00 49,91 Portmurs Portugal FC 50,00 49,91 Beni Stabili Hôtel Luxembourg FC 50,49 50,38 25

Companies in the Hotels in Europe segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 Sunparks de Haan Belgium FC 50,00 49,91 Sunparks Oostduinkerke Belgium FC 50,00 49,91 Foncière Vielsam Belgium FC 50,00 49,91 Sunparks Trefonds Belgium FC 50,00 49,91 Foncière Kempense Meren Belgium FC 50,00 49,91 FDM Gestion Immobilière France FC 50,00 49,91 Iris Holding France France EM/EA 9,95 9,93 OPCI Iris Invest 2010 France EM/EA 9,95 9,93 Foncière Iris SAS France EM/EA 9,95 9,93 Sables d Olonne SAS France EM/EA 9,95 9,93 Iris investor Holding GmbH Germany EM/EA 9,95 9,93 Iris General Partner GmbH Germany EM/EA 5,00 4,99 Iris Berlin GmbH Germany EM/EA 9,95 9,93 Iris Bochum & Essen GmbH Germany EM/EA 9,95 9,93 Iris Frankfurt GmbH Germany EM/EA 9,95 9,93 Iris Verw altungs GmbH & co KG Germany EM/EA 9,95 9,93 Iris Nurnberg GmbH Germany EM/EA 9,95 9,93 Iris Stuttgart GmbH Germany EM/EA 9,95 9,93 Narcisse Holding Belgique Belgium EM/EA 9,95 9,93 Foncière B3 Hôtel Invest France FC 25,10 25,05 B&B Invest Lux 4 Germany FC 50,00 49,91 NH Amsterdam Center Hotel HLD Netherlands FC 50,00 49,91 Hotel Amsterdam Centre Propco Netherlands FC 50,00 49,91 Foncière Bruxelles Tour Noire Belgium EM/EA 9,95 9,93 Foncière Louvain Belgium EM/EA 9,95 9,93 Foncière Malines Belgium EM/EA 9,95 9,93 Foncière Bruxelles Centre Gare Belgium EM/EA 9,95 9,93 Foncière Namur Belgium EM/EA 9,95 9,93 Tulipe Holding Belgique Belgium EM/EA 9,95 9,93 Iris Tréfonds Belgium EM/EA 9,95 9,93 Foncière Louvain Centre Belgium EM/EA 9,95 9,93 Foncière Liège Belgium EM/EA 9,95 9,93 Foncière Bruxelles Aéroport Belgium EM/EA 9,95 9,93 Foncière Bruxelles Sud Belgium EM/EA 9,95 9,93 Foncière Bruge Station Belgium EM/EA 9,95 9,93 B&B Invest Lux 1 Germany FC 50,00 49,91 B&B Invest Lux 2 Germany FC 50,00 49,91 B&B Invest Lux 3 Germany FC 50,00 49,91 OPCI Camp Invest France EM/EA 9,95 9,93 Campeli France EM/EA 9,95 9,93 Dahlia France EM/EA 10,00 9,98 Foncière B2 Hôtel Invest France FC 25,10 25,05 OPCI B2 Hôtel Invest France FC 25,10 25,05 Murdespagne SLU Spain Merger - 49,91 The registered office of the parent company Foncière des Murs and of all of its fully consolidated French subsidiaries is located at 30 avenue Kléber, 75116 Paris. 94 companies in the Germany Residential segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 Immeo SE (parent company) 99.74% controlled Germany FC 61,70 60,98 Immeo Rehbergen Germany FC 65,57 - Immeo Handlesliegenschaften Germany FC 65,57 - Immeo Alexandrinenstrasse Germany FC 65,57 - Immeo Spree Wohnen 1 Germany FC 65,53 - Immeo Spree Wohnen 2 Germany FC 65,53 - Immeo Spree Wohnen 6 Germany FC 65,53 - Immeo Spree Wohnen 7 Germany FC 65,53 - Immeo Spree Wohnen 8 Germany FC 65,53 - Nordens Immobilien III Germany FC 65,53 - Montana-Portfolio Germany FC 65,53 - Immeo Cantianstrasse 18 Grundbesitz Germany FC 65,53 - Immeo Konstanzer Str.54/ Zahringerstr.28, 28a Grundbesitz. Germany FC 65,53 - Immeo Mariend.Damm28/Markgrafenstr.17 Grundbesitz Germany FC 65,53 - Immeo Markstrasse 3 Grundbesitz Germany FC 65,53 - Immeo Schnellerstrasse 44 Grundbesitz Germany FC 65,53 - Immeo Schnönw alder Str.69 Grundbesitz Germany FC 65,53 - Immeo Schulstrasse 16/17.Grundbesitz Germany FC 65,53 - Immeo Sophie-Charlotten Strasse 31,32 Grundbesitz Germany FC 65,53 - Immeo Yorckstrasse 60 Grundbesitz Germany FC 65,53 - Immeo Zelterstrasse 3 Grundbesitz Germany FC 65,53 - Immeo Zinshäuser Alpha Germany FC 65,53 - Immeo Zinshäuser Gamma Germany FC 65,53 - Second Ragland Germany FC 65,53-26

Companies in the Germany Residential segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 FDR Zehnte GmbH Germany FC 100,00 98,02 IW-FDL Beteiligungs GmbH & Co KG Germany FC 100,00 98,12 FDR Lux Luxembourg FC 100,00 100,00 Immeo Berolina Verw altungs GmbH Germany FC 63,66 62,98 Residenz Berolina GmbH & Co KG Germany FC 65,51 64,87 Immeo Quadrigua IV GmbH Germany FC 63,66 62,97 Real Property Versicherungsmakler GmbH Germany FC 61,70 62,97 Immeo Quadrigua 15 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 45 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 36 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 46 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 40 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 47 GmbH Germany FC 65,51 64,86 Immeo Quadrigua 48 GmbH Germany FC 65,51 64,86 Immeo Fischerinsel GmbH Germany FC 65,57 64,93 Immeo Berlin Home GmbH Germany FC 65,57 64,93 Immeo Berolina Fischenrinsel GmbH & Co KG Germany FC 65,57 65,93 Amber Properties Sarl Germany FC 65,53 64,89 Immeo Gettmore Germany FC 65,53 64,89 Saturn Properties Sarl Germany FC 65,53 64,89 Venus Properties Sarl Germany FC 65,53 64,89 Immeo Vinetree Germany FC 65,53 64,89 Acopio Facility GmbH & Co KG Germany FC 65,53 64,89 Immeo Planungs- und Projektsteuerungsgesellschaft mbh Germany FC 31,47 31,10 Immeo Berlin Prime SarL Germany FC 48,99 48,42 Berlin Prime Commercial SarL Germany FC 58,56 57,87 Acopio GmbH Germany FC 100,00 100,00 Immeo Hambourg Holding ApS Denmark FC 65,57 64,93 Immeo Hambourg 1 ApS Germany FC 65,57 64,93 Immeo Hambourg 2 ApS Germany FC 65,57 64,93 Immeo Hambourg 3 ApS Germany FC 65,57 64,93 Immeo Hambourg 4 ApS Germany FC 65,57 64,93 Immeo North ApS Germany FC 65,57 64,93 Immeo Arian Germany FC 65,53 64,89 Immeo Bennet Germany FC 65,53 64,89 Immeo Marien-Carré Germany FC 65,57 64,93 Immeo Berlin IV ApS Germany FC 61,70 60,98 Imméo Wohnen Verw altungs GMBH Germany FC 61,70 60,98 Imméo Grundstücks GMBH Germany FC 61,70 60,98 Imméo Grundvermögen GMBH Germany FC 61,70 60,98 Immeo Wohnen Service GMBH Germany FC 61,70 60,98 Immeo SE & CO KG 1 Germany FC 61,70 60,98 Immeo SE & CO KG 2 Germany FC 61,70 60,98 Immeo SE & CO KG 3 Germany FC 61,70 60,98 Immeo SE & CO KG 4 Germany FC 61,70 60,98 FDL Wohnen GmbH Germany FC 61,70 60,98 RRW FDL Wohnen GmbH Germany FC 64,00 63,33 Immeo Gesellschaft für Wohnen Datteln mbh Germany FC 61,84 61,13 Immeo Stadthaus GmbH Germany FC 61,84 61,13 Imméo Wohnbau GMBH Germany FC 62,07 61,36 Immeo Wohnungsgesellechaft GMBH Dümpten Germany FC 62,07 61,36 Immeo GFR GmbH Germany FC 61,70 60,98 Immeo Lux Germany FC 61,82 61,10 Berolinum 1 Germany FC 61,82 61,10 Berolinum 2 Germany FC 61,82 61,10 Berolinum 3 Germany FC 61,82 61,10 FDR Remscheid Germany FC 61,82 61,10 Immeo Valore 4 Germany FC 61,82 61,11 Valore 6 Germany FC 61,82 61,11 Immeo SE&Co Residential KG Germany FC 61,70 60,98 Immeo Berlin 67 GmbH Germany FC 64,00 63,33 Immeo Berlin 78 GmbH Germany FC 64,00 63,33 Immeo Berlin 79 GmbH Germany FC 64,00 63,33 Immeo Dresden GmbH Germany FC 63,66 62,98 Immeo Berlin I SARL Germany FC 63,66 62,97 Immeo Berlin V SARL Germany FC 63,85 63,17 Immeo Berlin C GmbH Germany FC 63,66 62,97 Immeo Dansk Holding Aps Denmark FC 61,70 60,98 FC Immeo Dasnk L Aps Germany FC 63,66 62,97 Immeo Rew o Holding GmbH Germany FC 100,00 100,00 IW Verw altungs GmbH Germany Merger - 100,00 RRW Verw altungs GmbH Germany Merger - 100,00 Immeo Stadtw ohnung GmbH Germany Merger - 60,98 The registered office of the parent company Immeo SE is at Kleplerstrasse 110-112 45147 Essen. 27

20 companies in the France Residential segment Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 Foncière Développement Logements (Parent company) 100% controlled France FC 100,00 61,25 Iméfa 97 France FC 100,00 61,25 Bagatelle Courbevoie France FC 100,00 61,25 Iméfa 65 France FC 100,00 61,25 Iméfa 71 France FC 100,00 61,25 Iméfa 93 France FC 100,00 61,25 Iméfa 88 France FC 100,00 61,25 Iméfa 46 France FC 100,00 61,25 Iméfa 95 France FC 100,00 61,25 Suresnes 2 France FC 100,00 61,25 25 rue Abbé Carton France FC 100,00 61,25 40 rue Abbé Groult France FC 100,00 61,25 24-26 rue Duranton France FC 100,00 61,25 25 rue Gutenberg France FC 100,00 61,25 Montrouge 3 France FC 100,00 61,25 SCI Le Chesnay 1 France FC 100,00 61,25 Rueil 1 France FC 100,00 61,25 Saint Maurice 2 France FC 100,00 61,25 SCI Dulud France FC 100,00 61,25 Batisica Luxembourg FC 100,00 61,25 SCI Saint Jacques France Merger - 61,25 The registered office of the parent company Foncière Développement Logements and of all its fully consolidated French subsidiaries is located at 30 Avenue Kléber 75116 Paris. 10 other companies (Car Parks, Services) Country Consolidation method in 2017 Percentage held in 2017 Percentage held in 2016 6 Car Park companies: SAS Republique (Parent company) 100% controlled France FC 100,00 59,50 SNC Comédie France FC 100,00 59,54 SNC Gare France FC 50,80 30,23 Trinité France FC 100,00 59,50 SCI Esplanade Belvédère II France FC 100,00 100,00 SCI Gespar France FC 50,00 50,00 4 Services companies: FDM Gestion France FC 100,00 100,00 FDR Property SNC France FC 100,00 100,00 FDR Développement France FC 100,00 100,00 Foncière des Régions SGP France FC 100,00 100,00 FC: Full Consolidation. EM/EA: Equity Method Associates. EM-JV: Equity Method Joint Ventures. N.C. Not Consolidated. PC: Proportionate Consolidation. There are 361 companies in the Group, including 268 fully consolidated companies and 93 equity affiliates. 3.2.3.6 Evaluation of control SCI 11 place de l Europe (consolidated structured entity) As at 31 December 2017, SCI 11 place de l Europe was 50.1% held by Foncière des Régions and fully consolidated. The partnership with the Crédit Agricole Assurances group (49.9%) was established as of 18 December 2013 as part of the Campus Eiffage project. Considering the rules of governance conferring on Foncière des Régions powers that give it the ability to affect asset yields, the company is fully consolidated. SCIs of 9 and 15 rue des Cuirassiers (consolidated structured entities) At 31 December 2017 the SCIs 9 and 15 rue des Cuirassiers were 50.1% held by Foncière des Régions and fully consolidated. The partnership with Assurances du Crédit Mutuel (49.9%) was created in early December 2017 as part of the Silex 1 and Silex 2 office projects in Lyon, Part-Dieu. Considering the rules of governance conferring on Foncière des Régions powers that give it the ability to affect asset yields, the company is fully consolidated. 28

SCI Latécoère 2 (change from joint venture to consolidated structured entity) Latécoère 2 is 50.10% held by Foncière des Régions at 31 December 2017 and has been fully consolidated since 31 December 2017, whereas it was consolidated according to the equity method at 31 December 2016. The partnership with the Crédit Agricole Assurances group (49.90%) was established starting in June 2015 as part of the Extension Dassault project in Vélizy. The shareholder agreement was amended in December 2017. Considering the rules of governance that confer on Foncière des Régions powers that give it the ability to affect asset yields, the company is fully consolidated. SCI Lenovilla (joint venture) As at 31 December 2017, Lenovilla was 50.09% held by Foncière des Régions and is consolidated according to the equity method. The partnership with the Crédit Agricole Assurances Group (49.91%) was established in January 2013 as part of the New Vélizy (Campus Thalès) project. The shareholder agreement stipulates that decisions be made unanimously. The parties exercising joint control have rights to the net assets of the partnership arrangement. The partnership meets the criteria for joint ventures and is consolidated according to the equity method. SAS FDM Management (equity affiliate) FDM Management was 40.7% held by Foncière des Murs at 31 December 2017 and is consolidated according to the equity method. Strategic decisions are adopted by a two-thirds majority, and major decisions are made by a threequarters majority. SCI Porte Dorée (joint venture) SCI Porte Dorée was 50% held by Foncière des Murs at 31 December 2017 and is consolidated according to the equity method. The partnership with the Caisse des Dépôts et Consignations group (50%) was established starting in December 2015 as part of the Motel One hotel development project. The shareholder agreement stipulates that decisions be made unanimously. The parties exercising joint control have rights to the net assets of the partnership arrangement. The partnership meets the criteria for joint ventures and is consolidated according to the equity method. SAS Samoëns (consolidated structured entity) and Foncière Développement Tourisme SAS Samoëns was 25.10% held by Foncière des Murs at 31 December 2017 and is fully consolidated. The partnership with OPCI Lagune (49.9%) and Foncière Développement Tourisme (50.1%) was established as of October 2016 as part of the project to develop a Club Med holiday village in Samoëns. As manager of Samoëns, Foncière des Murs has the widest powers to act in the name and on behalf of the company in all circumstances, in keeping with its corporate purpose. Considering the rules of governance that confer on Foncière des Murs powers that give it the ability to affect asset yields, the company is fully consolidated. 29

3.2.4 SIGNIFICANT EVENTS OF THE PERIOD The significant events of the period are the acquisitions representing over 1.4 billion and the asset disposals of nearly 1.1 billion, excluding splitting Central SICAF (60 % Beni Stabili) which holds a portfolio of assets leased to Telecom Italia of about 1.5 billion. By segment, the significant events of the period were as follows. 3.2.4.1 France Offices segment 3.2.4.1.1. Disposals ( 300 million - profit or loss on disposals: + 5 million) and assets under preliminary agreement ( 112 million) During the period, Foncière des Régions disposed of assets for a total sale price of 300 million, including 2 assets portfolios leased to Orange ( 77.7 million) and the Issy-les-Moulineaux-V. Hugo asset ( 38 million), 3 Logistics assets ( 33.5 million), the Chevilly asset ( 30.3 million) and Saint Germain en Laye Winchester asset ( 22.7 million). As at 31 December 2017, assets under preliminary agreement amounted to 112.3 million. 3.2.4.1.2. Development portfolio The asset development programme is presented in Note 3.2.5.1.4. 2017 saw the delivery of six projects in the pipeline representing 489 million: - in January 2017, Silex 1, a 10,586 m² building located in the heart of the Part-Dieu business district of Lyon, was delivered. This office building is spread over 9 levels and also boasts 615 m² of retail, 610 m² of green space and two landscaped patios of 100 m²; - the Thaïs office building of 5,468 m² in Levallois-Perret was delivered in April 2017. Ideally located and fully served by public transport, this building has large office floors offering maximum flexibility as well as many accessible gardens and terraces making a total of 1,200 m² of green space in the city centre; - in June 2017, the Nancy O rigin building of 6,331 m² was also delivered. With easy access to the Nancy TGV train station, this operation is truly a gateway to the future "Green Wharf" located in Nancy's Grand Cœur section; - in July 2017, the EDO building was also delivered. Located in the heart of the 3rd largest office centre in Paris Region, this office building of 10,760 m², enjoys all the advantages of an attractive and dynamic city such as Issy-les-Moulineaux. It boasts a garden, terraces and modular and creative spaces with a view of Paris; - in August 2017, the first phase of the New Saint Charles building of 10,282 m² in Reims was delivered. This asset is 100% leased to Enedis; - lastly, in November 2017, the Art&Co building (13,433 m²), located in front of the Gare de Lyon station in Paris, was delivered. Already fully pre-let, the building will constitute one of the first sites for the Group's new flexible office and co-working activity (5,210 m²). 30

During the 2017 financial year, occured saw the deliveries of the Hermione and Floréal office buildings as part of the completion of the Euromed Centre project in Marseille. These assets, held by equity affiliates, were sold at the beginning of October 2017. 3.2.4.1.3. Refinancing and redemption On 2 January 2017, the balance of the 2011 ORNANE-type bonds was fully redeemed in the amount of 79.7 million (928,197 bonds). In June 2017, Foncière des Régions placed a 2027 bond issue of 500 million at 1.5% and at the same time repurchased and cancelled 55% ( 273.1 million) of the 2021 bond at 1.75%. 3.2.4.2 Italy Offices segment 3.2.4.2.1. Disposals ( 206 million) and assets under preliminary agreement ( 22 million) In 2017, 11 assets were sold for a total price of 206 million, including an asset located in Piazza San Nicolao, Milan for 114 million. As at 31 December 2017, assets under preliminary agreement amounted to 22.5 million. 3.2.4.2.2. Acquisitions ( 189 million) Assets located in Milan were acquired during the period for 188.7 million. This involved 4 transactions: - a group of 18 properties for 117.8 million; - an asset on Via Marostica for 24.7 million; - an asset to be redeveloped on Via Principe Amedeo for 41.9 million, before deducting a 5 million advance payment made in 2015; - additional space in the Symbiosis development project for 9.3 million. 3.2.4.2.3. Partnership Central Sicaf, Crédit Agricole Assurances and EDF Invest A partnership was signed between Beni Stabili, Crédit Agricole Assurances and EDF Invest to share a portfolio of 145 real estate assets in Italy and leased to Telecom Italia for a firm average residual maturity of 12.9 years as at 31 December 2017. The transfer of these assets and the associated debt was made in an unlisted regulated fund, Central SICAF, in which Crédit Agricole Assurances and EDF Invest each invested 20%. Beni Stabili retains 60% of the equity and continues to fully consolidate Central Sicaf. 3.2.4.2.4. Redemption of the 2019 ORNANE bond and refinancing Beni Stabili purchased the 2019 ORNANE-type bonds at the face value of 270 million for a total of 299.3 million (costs and premiums included) at the same time as setting up a corporate financing of 250 million. This corporate borrowing was redeemed in full in October 2017 and refinanced by the subscription of two mortgage loans for 336 million with an average maturity of nine years. In October 2017, Beni Stabili placed an inaugural issue (rating BBB-) of 300 million at a fixed rate of 1.625% and maturing in 2024. 31

3.2.4.3 Hotels in Europe segment 3.2.4.3.1. Disposals ( 138 million) and assets under preliminary agreement ( 207 million) During the 2017 financial year, Foncière des Murs sold 33 Quick properties for a total of 101.2 million, four Accorhotels hotels for 16.5 million, a portion of the Sunparks Vielsalm cottages for 12.6 million, three Jardiland assets for 5.3 million and a Health asset at Colombes for 1.7 million. At 31 December 2017, preliminary sales agreements stood at 207.4 million, including preliminary sales agreements on 48 Quick assets signed on 16 November for 162.9 million, preliminary sales agreements on 5 Jardiland assets signed on 22 November for 22.5 million and preliminary sales agreement on one AccorHotel asset signed on 28 July for 18 million. 3.2.4.3.2. Acquisitions ( 673 million) During the period, Foncière des Murs exercised the call options on 5 four-star hotels leased to NH for 70.9 million (a 58.1 million down payment made in 2016). These assets are located in Stuttgart, Oberhausen, Frankfurt, Nuremberg and Düsseldorf. In Spain, 17 hotels were acquired early in the year for 578 million (after accounting for lease payments at 1 January 2017), including 2 share-deal assets for 204.9 million. The transaction was made with a deferred payment, maturing in September 2018 and February 2019 and discounted to 54 million. In October Foncière des Murs acquired call options on the shares of two Dutch companies (owning two NH hotels) for 21.1 million and on an NH hotel in Berlin for 3.5 million. The transaction will unwind in financial years 2018 and 2019. 3.2.4.3.3. Development portfolio 2017 saw the delivery of 3 developments: the Samoens Club Med and two B&B hotels in Nanterre and Lyon Berthelot. 3.2.4.3.4. Financing In March 2017, Foncière des Murs took mortgage financing of 278.5 million for 8 years as part of the acquisition of 17 hotels in Spain. The B&B debt (OPCI B2HI) was refinanced in May for 290 million (7 years maturity). 3.2.4.4 Germany Residential segment 3.2.4.4.1. Asset disposals ( 251 million - profit or loss on disposals: + 30 million) 250.7 million of disposals were made during 2017. At 31 December 2017, the amount of assets under agreement totalled 138.2 million (net of costs). 32

3.2.4.4.2. Acquisitions (shares: 489 million/assets: 92 million) In 2017 Immeo SE acquired several companies holding assets located mostly in Berlin, Potsdam, Dresden and Leipzig ( 489 million). Other acquisitions included a directly held portfolio of assets in Berlin, Potsdam and Dusseldorf for 92.4 million, after deduction of the 9 million advance payment paid in 2016. Advance payments were made of 124 million for the acquisition of shares, a transaction that will unwind in 2018 3.2.4.5 France Residential segment 3.2.4.5.1. Asset disposals In France, Foncière Développement Logements continued its sales plan and made disposals for a sale price of 152.8 million (net of costs). At 31 December 2017, the amount of assets under agreement totalled 39.5 million (net of costs). 3.2.5 NOTES TO THE STATEMENT OF FINANCIAL POSITION 3.2.5.1 Portfolio 3.2.5.1.1. Accounting principles applicable to tangible and intangible fixed assets Intangible fixed assets Identifiable intangible fixed assets are amortised on a straight line basis over their expected useful lives. Intangible fixed assets acquired are recorded on the balance sheet at acquisition cost. They primarily include entry fees (long-term leases conferring ad rem rights and occupancy rights for car parks) and computer software. Intangible fixed assets are amortised on a straight-line basis, as follows: Software: over a period of one to three years; Occupancy rights: 30 years. Fixed assets in the concession segment - Concession activity The Foncière des Régions group has applied IFRIC 12 to the consolidated financial statements since 1 January 2008. An analysis of the Group s concession agreements results in classifying agreements as intangible assets as the Group is paid directly by users for all car parks operated without a subsidy from public authorities. These concession assets are assessed at historical cost less accumulated depreciation and any impairment. Note that the Group no longer has wholly owned car parks; accordingly it no longer has Car Parks tangible assets. 33

Business combinations (IFRS 3) An entity must determine whether a transaction or event constitutes a business combination within the meaning of the definition of IFRS 3, which stipulates that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return directly to investors in the form of dividends, lower costs or other economic advantages. In this case, the acquisition cost is set at the fair value on the date of the exchange of the assets and liabilities and equity instruments issued for the purpose of acquiring the entity. Goodwill is recognised as an asset for the surplus of the acquisition cost on the portion of the buyer s interest in the fair value of the assets and liabilities acquired, net of any deferred taxes. Negative goodwill is recorded in the income statement. To determine whether a transaction constitutes a business combination, the Group considers whether an integrated set of businesses is acquired in addition to real estate. The criteria the Group uses may be the number of assets and the existence of a process such as asset management or sales and marketing units. Related acquisition costs are recognised in expense in accordance with IFRS 3 under Income from changes in consolidation scope in the income statement. If the Group concludes that the transaction is not a business combination, then it recognises the transaction as an acquisition of assets and applies the standards appropriate to acquired assets. Investment properties (IAS 40) Investment properties are real estate properties held for purposes of leasing within the context of operating leases or long-term capital appreciation (or both). Investment properties represent the majority of the Group s portfolio. The buildings occupied by the Foncière des Régions group are recognised as operating properties (corporate headquarters, office buildings occupied by employees and spaces operated for its own account as co-working spaces.) Under the option offered by IAS 40, investment properties are assessed at their fair value. Changes in fair value are recorded in the income statement. Investment properties are not depreciated. Valuations are carried out in accordance with the Code of Conduct applicable to SIICs and the Charter of Property Valuation Expertise, the recommendations of the COB/CNCC working group chaired by Mr Barthès de Ruyter and the International Plan in accordance with European TEGoVA standards and those of the Red Book of the Royal Institution of Chartered Surveyors (RICS). The real estate portfolio directly held by the Group was appraised in full on 31 December 2017 by independent real estate experts including BNP Real Estate, JLL, DTZ, CBRE, Cushman, Yard Valltech, CFE, MKG, VIF, REAG and Christie & Co. The assets were estimated at values excluding and/or including duties, and rents at market value. Estimates were made using the comparative method, the rent capitalisation method and the discounted future cash flows method. The assets are recognised at their net market value. 34

For France Offices and Italy Offices, the valuations are primarily performed according to two methods: o the yield (or income capitalisation) method: This approach consists of capitalising an annual income, which, in general, is rental income from occupied assets, with the possible impact of a reversion potential, and market rent for vacant assets, taking into account the time needed to find new tenants, any renovation work and other costs; o the discounted cash flow (DCF) method: This method consists of determining the useful value of an asset by discounting the forecast cash flows that it is likely to generate over a given time frame. The discount rate is determined on the basis of the risk-free rate plus a risk premium associated with the asset and defined by comparison with the discount rates applied to cash flows generated by similar assets. For Hotels in Europe, the methodology changes according to the type of assets: o the rent capitalisation method is used for restaurants, garden centres and Club Med holiday villages; o the DCF method is used for hotels (including the revenue forecasts determined by the appraiser) and Sunparks holiday villages. For the Residential segment, the methodology changes according to the type of asset: The assets are recognised at their net fair value. The fair value is determined based on: o a block value for assets for which no sales strategy has been developed or which have not been marketed; o an occupied retail value for assets on which at least one offer has been made before the reporting date. The following valuation methods were used: o for assets located in France: the leasing revenue discount method and the comparison method; o for assets located in Germany: the Discounted Cash Flow method. The resulting values are also compared with the initial rate of return and the monetary values per square metre of comparable transactions and transactions carried out by the Group. IFRS 13 Fair Value Measurement establishes a fair value hierarchy that categorises the inputs used in valuation techniques into three levels: level 1: the valuation refers to quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; level 2: the valuation refers to valuation methods using inputs that are observable for the asset or liability, either directly or indirectly, in an active market; level 3: the valuation refers to valuation methods using inputs that are unobservable in an active market. The fair value measurement of investment properties requires the use of different valuation methods using unobservable or observable inputs to which some adjustments have been applied. Accordingly, the Group s portfolio is mainly categorised as level 3 according to the IFRS 13 fair value hierarchy. 35

Assets under development (revised IAS 40) Since 1 January 2009, in accordance with amended IAS 40, assets under construction are recognised according to the general fair-value principle, except where it is not possible to determine this fair value on a reliable and ongoing basis. In such cases, the asset is carried at cost. As a result, development programmes and extensions or remodelling of existing assets that are not yet commissioned are recognised at their fair value, and are treated as investment properties whenever the administrative and technical fair-value reliability criteria i.e. administrative, technical and commercial criteria are met. In accordance with revised IAS 23, the borrowing cost during a period of construction and renovation is included in the cost of the assets. The capitalised amount is determined on the basis of fees paid for specific borrowings and, where applicable, for financing from general borrowings based on the weighted average rate of the particular debt. Tangible fixed assets (IAS 16) Pursuant to the preferred method proposed by IAS 16, operating assets (occupied or operated by Group employees) and wholly-owned car parks are carried at historical cost less accumulated depreciation and any potential impairment. Non-current assets held for sale (IFRS 5) In accordance with IFRS 5, when Foncière des Régions decides to dispose of an asset or group of assets, it classifies it or them as an asset or assets held for sale if: the asset or group of assets is available for immediate sale in its current condition, subject only to normal and customary conditions for the sale of such assets; its or their sale is likely within one year and marketing for the property has been initiated. For the Foncière des Régions group, only assets corresponding to the above criteria and included in a planned sales programme drawn up by the Board of Directors are classified as assets held for sale. The conditions for valuing these assets are identical to those expressed above for investment properties if no sale commitment has been signed. If a sale commitment exists on the account closing date, the price of the commitment net of expenses constitutes the fair value of the asset held for sale. 36

3.2.5.1.2. Table of changes in fixed assets thousand 31-Dec-16 Change in scope and interest rates Increase/ Allocation Disposal/ Recovery Change in fair value Transfers 31-Dec-17 Goodw ill 1 572 0 0 0 0 0 1 572 Intangible fixed assets 24 410 0-1 381-97 0 1 660 24 592 (1) Gross amounts 97 079 29 2 186-7 477 0 4 320 96 137 Depreciation -72 669-29 -3 567 7 380 0-2 660-71 545 Tangible fixed assets 150 541 486 16 366-2 547 0 38 935 203 781 Operating properties 66 810-1 -2 495-1 336 0 113 284 (2) 176 262 Gross amounts 84 714-1 582-2 612 0 120 247 202 930 Depreciation -17 904 0-3 077 1 276 0-6 963-26 668 Other tangible fixed assets 8 970 116-138 -1 219 0 670 8 399 Gross amounts 22 164 130 3 121-1 668 0-2 967 20 780 Depreciation -13 194-14 -3 259 449 0 3 637-12 381 (4) Fixed assets in progress 74 761 371 18 999 8 0-75 019 19 120 Gross amounts 74 761 371 18 999 (3) 8 0-75 019 19 120 Depreciation 0 0 0 0 0 0 0 Investment properties 16 763 445 780 229 1 152 054-13 000 899 860-1 164 940 18 417 648 Operating properties 15 859 637 780 229 (5) 846 021 (6) -12 205 755 869-496 783 17 732 768 Properties under development 903 808 0 306 033-795 143 991-668 157 684 880 Assets held for sale 297 894 0 1 713-970 863 15 995 1 175 152 519 891 Assets held for sale 297 894 0 1 713-970 863 (7) 15 995 1 175 152 519 891 Total 17 237 862 780 715 1 168 752-986 507 915 855 50 807 (*) 19 167 484 (*) Including Re-consolidation ( 60.7 million) of the residual logistics segment at 1 January 2017 not material at the Group level. (1) The intangible fixed assets line includes 22.1 million in Car Park assets held under concession. (2) Including 111 million of investment property transferred into operating property following the decision to operate as own spaces for co-working (The Line and Art&Co) (3) Including works done on the co-working asset The Line ( 5.1 million) and on an operating property ( 4.7 million) Instalments on a call option to purchase a hotel in Berlin ( 3.5 million) and on asset acquisitions in Germany ( 3.6 million) (4) Use of a 58.1 million advance payment following the exercise of purchase options on 5 NH hotels, 9.0 million following the acquisition of buildings in Germany and 5 million following the acquisition of the asset located in Milan on Via Principe Amedeo. (5) Corresponds to Share deals transactions, including: - the acquisition of companies that own assets located in Berlin, Potsdam and Leipzig for 488.9 million; - the acquisition of companies (Trade Centre Hotel and Bardiomar) owning 2 hotels in Spain for 204.9 million (Gran Marina and AC Forum); - the full consolidation of the Dassault Systèmes extension for 86.4 million. (6) The acquisitions in asset deals are detailed in 3.2.5.1.3 Investment properties. (7) The decreases are detailed in 3.2.5.1.3 Investment properties The Disbursements related to the acquisition of tangible and intangible fixed assets line item on the statement of cash flows ( 1,114.3 million) refers to increases in the table of changes in the portfolio excluding the effect of depreciation ( 1,178.6 million), to changes in inventories of the property dealer ( 7.1 million) and adjusted for change in trade payables for fixed assets (- 62.7 million). 37

The Proceeds relating to the disposal of tangible and intangible fixed assets line item in the statement of cash flows ( 1,066.7 million) primarily corresponds to income from disposals as presented in the net income statement ( 1,055.6 million), proceeds from the disposal of assets in inventory ( 6.1 million), less asset disposal costs (- 19.7 million), and restated for the reduction from receivables from asset disposals ( 24.7 million). 3.2.5.1.3. Investment properties thousand 31-déc.-16 Change in scope and interest rates Increase Disposal Change in fair value Transfers 31-Dec-17 Investment properties 16 763 445 780 229 1 152 054-13 000 899 860-1 164 940 18 417 648 Operating properties 15 859 637 780 229 846 021-12 205 755 869-496 783 17 732 768 France Offices 4 891 390 86 450 38 408 (1) 0 125 767 177 965 5 319 980 Italy Offices 3 612 251 0 159 659 (2) -12 205 53 224-74 460 3 738 469 Hotels in Europe 2 999 592 204 850 485 061 (3) 0 93 772-148 642 3 634 633 Germany Residential 3 968 790 488 929 162 026 (4) 0 483 400-303 252 4 799 893 France Residential 387 614 0 867 0-294 -148 394 239 793 Properties under development 903 808 0 306 033-795 143 991-668 157 684 880 France Offices 434 859 0 103 064 0 116 903-488 780 166 046 Italy Offices 355 370 0 119 105 0 13 076-58 651 428 900 Hotels in Europe 113 579 0 83 864-795 14 012-120 726 89 934 Assets held for sale 297 894 0 1 713-970 863 15 995 1 175 152 519 891 Assets held for sale 297 894 0 1 713-970 863 15 995 1 175 152 519 891 France Offices 140 110 0 1 713-286 713 (5) 7 908 249 325 112 343 Italy Offices 76 601 0 0-189 890 (6) -3 112 138 854 22 453 Hotels in Europe 19 417 0 0-131 820 (7) -7 623 327 422 207 396 Germany Residential 23 749 0 0-215 517 18 822 311 157 138 211 France Residential 38 017 0 0-146 923 0 148 394 39 488 Total 17 061 339 780 229 1 153 767-983 863 915 855 10 212 18 937 539 (1) Refers to the acquisition of an office asset located in Paris (VTA Orange) for 3.0 million and to works done in the amount of 35.4 million. (2) Acquisition of a group of 18 assets for 117.7 million and of the asset Via Marostica for 24.7 million, both in Milan, and works done for 17.2 million. (3) Acquisition of 15 hotels in Spain for 372.6 million, exercise of five options on NH hotels in Germany for 70.9 million and works done during the period of 41.5 million. (4) Acquisition of assets located in Berlin, Potsdam and Düsseldorf for 92.4 million and capex done during the period totalling 69.6 million. (5) Including assets disposal of Issy-Les-Moulineaux/Victor Hugo ( 32.5 million), Chevilly ( 30 million), Saint Germain en Laye Winchester ( 21.9 million) and 3 logistics assets ( 35.9 million). (6) Including the disposal of three assets located in Milan: Piazza San Nicolao ( 111.2 million), Via Verri 4 ( 34 million) and Via Durini ( 27 million), (7) Including the disposal of 33 Quick assets ( 98 million) The amounts in the Disposals column correspond to the appraisal figures published on 31 December 2016. 38

Consolidated portfolio of assets at 31 December 2017 by business segment (in m): Others 279 Germany Residential 4 938 France Offices 5 598 18,938 Hotels in Europe 3 932 Italy Offices 4 190 The Group has not identified the best use of an asset as being different from its current use. Consequently, the application of IFRS 13 did not lead to a modification of the assumptions used for the valuation of the portfolio. In accordance with IFRS 13, the tables below provide details of the ranges of unobservable inputs by business segment (level 3) used by the real estate appraisers: France Offices, Italy Offices and Hotels In Europe Grouping of similar assets Level Portfolio in M Yield rate (excluding duties) Yield rate (excluding duties, w eighted average) Discounted cash flow rate Discounted cash flow rate (w eighted average) Paris Centre West Level 3 863 3.1% - 7.8% 4,2% 4.0% - 7.0% 4,9% Paris North East Level 3 374 3.7% - 8.3% 5,3% 4.5% - 6.8% 5,7% Paris South Level 3 702 3.4% - 5.7% 3,9% 4.5% - 6.5% 4,6% Western Crescent Level 3 1 571 4.0% - 7.5% 5,3% 4.5% - 7.3% 5,0% Inner suburbs Level 3 1 166 4.2% - 6.9% 5,2% 4.5% - 8.0% 5,3% Outer suburbs Level 3 91 4.8% - 13.7% 8,4% 4.5% - 11.5% 6,2% Total Paris region 4 768 3.1% - 13.7% 4.0% - 11.5% Major Regional Cities Level 3 573 3.9% - 8.4% 5,4% 4.5% - 10.5% 5,8% Other French regions Level 3 235 4.6% - 13.1% 8,9% 4.5% - 12.0% 6,7% Total Regions 808 3.9% - 13.1% 4.5% - 12.0% Total Logistics assets 23 Total France Offices 5 598 3.1% - 13.7% 4.0% - 12.0% Milan Level 3 1 883 2.6% - 11.1% 4,5% 4.5% - 7.0% 5,3% Rome Level 3 236 3.3% - 21.4% 5,3% 4.5% - 10.4% 6,3% Other Level 3 1 641 2.0% - 15.7% 6,8% 5.0% - 9.0% 6,9% Total in operation 3 761 2.0% - 21.4% 4.5% - 10.4% Development portfolio Level 3 429 5.8% - 10.3% Total Italy Offices 4 190 2.0% - 21.4% 4.5% - 10.4% Hotels Level 3 3 395 3.6% - 6.4% 5,4% 4.0% - 7.9% 6,0% Retail Level 3 447 6.3% - 6.8% 6,9% 6.2% - 8.3% 7,0% Total in operation 3 842 3.6% - 6.8% 4.0% - 8.3% Development portfolio Level 3 90 5.0% - 7.0% Total Hotels in Europe 3 932 3.6% - 6.8% 4.0% - 8.3% 39

Germany Residential and France Residential: Grouping of similar assets Level Portfolio in M Yield rate (*) Yield rate (*) Total portfolio Block valued properties Discounted cash flow rate Average value (in /m²) Great East Level 3 6 4.5% - 6.5% n.a. n.a. 1 545 Provence-Alpes-Côte d Azur region Level 3 64 3.0% - 6.5% 3.5% - 6.0% n.a. 2 234 Paris-Neuilly Level 3 105 2.5% - 4.0% 5,0% n.a. 8 044 Rest of Paris region Level 3 67 3.0% - 5.5% n.a. n.a. 5 052 Rhône-Alpes region Level 3 27 3.0% - 6.0% n.a. n.a. 3 113 South West-Great West Level 3 9 4.0% - 7.0% n.a. n.a. 2 053 Total France Residential 279 2.5% - 7.0% 3.5% - 6.0% n.a. 3 849 Duisburg Level 3 282 4.3% - 5.8% 4.3% - 5.8% 4.8% - 10.1% 1 077 Essen Level 3 500 4.0% - 6.8% 4.0% - 6.8% 4.0% - 7.6% 1 321 Mülheim Level 3 171 4.0% - 6.3% 4.0% - 6.3% 4.4% - 8.6% 1 195 Oberhausen Level 3 148 4.5% - 8.0% 4.5% - 8.0% 5.2% - 8.1% 991 Datteln Level 3 122 3.5% - 5.8% 3.5% - 5.8% 4.4% - 7.8% 921 Berlin Level 3 2 746 3.0% - 5.8% 3.0% - 5.8% 1.5% - 7.7% 2 275 Düsseldorf Level 3 102 3.5% - 4.5% 3.5% - 4.5% 3.6% - 5.2% 1 865 Dresden Level 3 321 3.8% - 5.3% 3.8% - 5.3% 4.4% - 6.4% 1 561 Leipzig Level 3 120 3.5% - 6.0% 3.5% - 6.0% 4.2% - 6.9% 1 126 Hamburg Level 3 302 3.8% - 5.0% 3.8% - 5.0% 4.0% - 7.2% 2 458 Other Level 3 125 4.3% - 5.8% 4.3% - 5.8% 4.8% - 9.3% 1 404 Total Germany Residential 4 938 3.0% - 8.0% 3.0% - 8.0% 1.5% - 10.1% 1 712 (*) Yield rate: France Residential: Potential yield rate excluding taxes (potential rents calculated by the appraiser/appraisal values excluding taxes determined by the appraiser) Germany Residential: Potential yield rate assumed excluding taxes (actual rents/appraisal values excluding taxes) Impact of changes in the yield rate on changes in the fair value of real estate assets, by operating segment million Yield** Yield rate -50 bps Yield rate +50 bps France Offices* 5,2% 583,6-480,4 Italy Offices 5,5% 375,2-312,8 Hotels in Europe* 5,5% 387,1-321,9 Germany Residential 4,7% 588,2-475,1 France Residential 3,9% 40,7-31,5 Total* 5,1% 1 974,9-1 621,7 *including assets held by equity affiliates (excluding FDM Management). **Return on operating portfolio excluding duties. If the yield rate excluding taxes drops 50 bps (-0.5 point), the market value excluding taxes of the real estate assets will increase by 1,974.9 million. If the yield rate excluding taxes increases 50 bps (+0.5 point), the market value excluding taxes of the real estate assets will decrease by 1,621.7 million. 3.2.5.1.4. Properties under development Properties under development relate to building or redevelopment programmes that fall within the application of IAS 40 (revised). thousand 31-déc.-16 Acquisitions and works Capitalised interest Change in fair value Transfers and disposals 31-Dec-17 France Offices 434 859 95 260 7 804 116 903-488 780 (1) 166 046 Italy Offices 355 370 102 147 (3) 16 958 13 076-58 651 (2) 428 900 Hotels in Europe 113 579 80 032 (4) 3 832 14 012-121 521 (5) 89 934 Total 903 808 277 439 28 594 143 991-668 952 684 880 (1) Assets Thaïs (Levallois-Perret), Art&Co (Paris), New Saint Charles (Reims), Edo (Issy-Les- Moulineaux), Silex 1 (Lyon) and O Rigin (Nancy) were delivered (reclassification as investment properties in the amount of - 421.9 million and as operating properties in the amount of - 66.9 million) 40

(2) Delivery of the Via Cernaia asset in Milan (- 63.7 million) and transfer of the deposit of 5 million paid upon acquisition of Principe Amedeo in Milan. (3) Including one new project in development (Principe Amedeo) located in Milan, acquired for 41.9 million before deduction of the deposit paid in 2016 (- 5 million), an additional parcel of land in Milan on the Symbiosis project ( 9.3 million) and works for 55.9 million (4) Corresponds to the following disbursements: - 39.8 million for the construction of a Club Med in Samoëns; - works on four B&B hotels in France ( 15.1 million); - works on 2 Meininger hotels, one in Paris ( 4.3 million) and the other in Lyon ( 5.7 million); - works on the two development projects in Germany ( 15.1 million). (5) Including delivery of the Club Med Samoens asset (- 98.5 million) and two B&B assets in France (- 23.1 million) The list of projects in development is presented in Part 1 of this Reference Document (cf 1.2). 3.2.5.2 Financial assets 3.2.5.2.1. Accounting principles Other financial assets Other financial assets consist of investment-fund holdings, which cannot be classified as cash or cash equivalents. These securities are recognised upon acquisition at cost plus transaction costs. They are then recognised at fair value in the income statement on the reporting date. The fair value is arrived at on the basis of recognised valuation techniques (reference to recent transactions, Discounted Cash Flows, etc.). Some securities that cannot be reliably measured at fair value are recognised at acquisition cost. Securities available for sale of listed and not consolidated companies are recorded at their stock-market price with an offsetting entry in share-holders equity in accordance with IAS 39. Dividends received are recognised when they have been approved by vote. Loans At each reporting date, loans are recorded at their amortised cost. Moreover, impairment is recognised and recorded on the income statement when there is an objective indication of impairment as a result of an event occurring after the initial recognition of the asset. 41

3.2.5.2.2. Table of financial assets 31-Dec-16 thousand Increase Decrease Change in fair value Change in scope Transfers 31-Dec-17 Ordinary loans(1) 192 653 8 553-27 329 0-18 507 6 749 162 119 Total loans and current accounts 192 653 8 553-27 329 0-18 507 6 749 162 119 Advances and pre-payments on acquisition of shares 13 400 147 120 0 0-13 400 0 147 120 Securities at historic cost 44 154 200-842 0 0 139 43 651 Subscribed capital not paid up 20 160 0-120 0 0 0 20 040 Total other financial assets(2) 77 714 147 320-962 0-13 400 139 210 811 Finance-lease receivables 2 0-2 042 0 0 2 040 0 Total finance-lease receivables 2 0-2 042 0 0 2 040 0 Receivables on financial assets 13 765 11-916 0 0 0 12 860 Total receivables on financial assets 13 765 11-916 0 0 0 12 860 Total 284 134 155 884-31 249 0-31 907 8 928 385 790 Depreciation and amortisation(3) -29 042-2 541 997 0-1 -139-30 726 NET TOTAL 255 092 153 343-30 252 0-31 908 8 789 355 064 (1) Ordinary loans include receivables from equity investments held in equity affiliates. (2) Total other financial assets are broken down as follows: - Advances and deposits made to acquire shares of companies: In Germany, an advance payment of 126.1 million made to acquire shares of companies that will be consolidated and 13.4 million of used to acquire the shares of companies. A deposit of 21 million was paid for the acquisition of shares in 2 companies that own NH hotels in the Netherlands; - Securities at historic cost: The investments held by Beni Stabili in property funds ( 30.5 million) are valued at their historical cost. Potential impairments are recorded in the income statement. - Share capital of Foncière Développement Tourisme subscribed by the Caisse des Dépôts et Consignations and not paid-up ( 20 million). (3) Includes impairment losses on securities at historical cost held by Beni Stabili ( 25.1 million) and impairment losses on receivables for disposals of more than one year ( 3.3 million) and for receivables related to financial assets ( 2.3 million). 3.2.5.3 Investments in equity affiliates and joint ventures 3.2.5.3.1. Accounting principles Investments in equity affiliates and joint ventures are recognised by the equity method. According to this method, the Group s investment in the equity affiliate or the joint venture is initially recognised at cost, increased or reduced by the changes, subsequent to the acquisition, in the share of the net assets of the affiliate. The goodwill related to an equity affiliate or joint venture is included in the book value of the investment, if it is not impaired. The share in the earnings for the period is shown in the line item Share in income of equity affiliates. The financial statements of associates and joint ventures are prepared for the same accounting period as for the parent company, and adjustments are made, where relevant, to adapt the accounting methods to those of the Foncière des Régions group. 42

3.2.5.3.2. Table of investments in equity affiliates and joint ventures thousand % held Operating segment Country 31-Dec-16 31-Dec-17 Change Of w hich share of net income Of w hich distribution and change in scope Latécoère 2 (DS Campus extension) * 50,10% France Offices France 1 528 0-1 528 2 743-4 272 SCI Factor E and SCI Orianz 34,69% France Offices (Properties under development) France 2 073 5 194 3 120 3 120 0 Lenovilla (New Vélizy) 50,10% France Offices France 59 579 71 236 11 656 11 656 0 Euromarseille (Euromed) 50,00% France Offices France 41 219 39 325-1 894 10 606-12 500 Cœur d Orly (Askia) 25,00% France Offices France -597 2 883 3 480-1 705 5 184 Investire Immobiliare and others Italy Offices Italy 19 042 17 762-1 280-693 -587 Iris Holding France 19,90% Hotels in Europe Belgium, Germany 11 933 14 141 2 208 2 647-439 OPCI IRIS Invest 2010 19,90% Hotels in Europe France 27 423 28 226 804 2 171-1 368 OPCI Camp Invest 19,90% Hotels in Europe France 18 919 19 951 1 032 2 148-1 116 Dahlia 20,00% Hotels in Europe France 15 842 16 784 942 1 703-761 SCI Porte Dorée 50,00% Hotels in Europe (Assets under development) France 5 933 10 328 4 395 4 395 0 FDM Management 40,70% Hotels in Europe France and Germany 142 498 143 072 574 4 446-3 871 Total 345 392 368 901 23 509 43 238-19 729 *Fully consolidated at 31 December 2017 follow ing amendment of the shareholders agreement The investments in equity affiliates as at 31 December 2017 amounted to 368.9 million, compared with 345.4 million as at 31 December 2016. The change over the period (+ 23.5 million) was the result of the net income of the period (+ 43.2 million), the allocation of Cœur d Orly losses to the partners (+ 5.2 million) and dividend distributions (- 24.9 million). 3.2.5.3.3. Breakdown of shareholdings in the main equity affiliates and joint ventures Ow nership Cœur d Orly Euromed Group SCI Lenovilla (New Vélizy) SCI Factor E / SCI Orianz (Bordeaux Armagnac) Foncière des Régions 25% 50% 50,09% 34,69% Non-group third parties 75% 50% 49,91% 65,31% Altaréa 25% Crédit Agricole Assurances 50% 49,91% Aéroport de Paris 50% ANF Immobilier 65,31% Total 100% 100% 100% 100% Indirect ow nership Iris Holding France OPCI Iris Invest 2010 OPCI Campinvest SCI Dahlia FDM Management SCI Porte Dorée Foncière des Murs 19,9% 19,9% 19,9% 20,0% 40,70% 50,00% Non-group third parties 80,1% 80,1% 80,1% 80,0% 59,30% 50,00% Crédit Agricole Assurances 80,1% 80,1% 68,8% 80,0% 11,63% Pacifica 11,3% Cardif Assurance Vie 11,63% Assurances du Crédit Mutuel Vie 11,63% SOGECAP 11,63% Caisse des Dépôts et Consignations 11,63% 50,00% Maro Lux 1,15% Total 100% 100% 100% 100% 100% 100% 43

3.2.5.3.4. Key financial information on equity affiliates and joint ventures thousand Asset name Total balance sheet Total noncurrent assets Cash Total noncurrent liabilities excluding financial debt Total current liabilities excluding financial debt Financial debt Rental income Cost of net financial debt Consolidated net income Cœur d Orly (Askia) Cœur d Orly 87 769 70 166 15 221 611 11 490 62 869 951-1 652-9 564 Lenovilla (New Vélizy) New Vélizy and extension 303 946 270 019 14 554 0 342 161 406 11 354-1 847 23 268 Euromarseille (Euromed) Euromed Center 208 911 190 084 8 452 860 10 999 118 372 4 433-2 167 21 324 SCI Factor E and SCI Orianz Iris Holding France OPCI IRIS Invest 2010 Bordeaux Armagnac AccorHotels Hotels AccorHotels Hotels 72 824 69 732 926 0 4 191 53 661 0 0 8 995 198 538 180 646 16 536 104 382 2 793 111 785 12 449-2 952 13 299 255 588 241 748 12 603 3 930 652 109 165 16 092-2 865 10 912 OPCI Camp Invest Campanile Hotels 179 080 168 929 8 086 0 341 78 481 11 519-3 071 10 794 Dahlia FDM Management SCI Porte Dorée AccorHotels Hotels Hotels and Services Motel One Porte Dorée hotel 165 199 161 688 2 979 0 557 80 724 7 642-1 538 8 513 1 245 692 1 130 309 80 808 72 102 97 292 710 897 226 881-20 886 11 087 49 889 47 657 807 0 6 358 22 876 0 0 8 790 3.2.5.4 Deferred tax liabilities on the reporting date thousand DTA Balance sheet at 31-Dec-16 Increases First time By net income consolidations for the year Shareholder s equity Other changes and transfers By net income for the year Decreases Effect of foreign tax rates Shareholder s equity Balance sheet at 31 Dec-17 Losses carried forward 48 304 2 909 397 8 586-7 628-891 51 677 Fair value of properties 1 624 142 1 766 Derivatives 10 672 117-4 871 5 918 Temporary differences 26 511 1 094-9 057-2 220-437 15 891 87 111 75 252 DTA/DTL offset -76 121-69 313 TOTAL DTA 10 990 2 909 1 750 0-471 -14 719-1 328 0 5 939 thousand DTL Balance sheet at 31-Dec-16 Increases First time By net income consolidations for the year Shareholder s equity Other changes and transfers By net income for the year Decreases Effect of foreign tax rates Shareholder s equity Balance sheet at 31-Dec-17 Fair value of properties 465 834 49 981 100 111-12 082-12 227 591 617 Derivatives 454 459 913 Temporary differences 19 877 56 8 402-506 -16 27 813 486 165 620 343 DTA/DTL offset -76 121-69 313 TOTAL DTL 410 044 50 037 108 972 0 0-12 588-12 243 0 551 030 NET TOTAL -399 054-47 128-107 222 0-471 -2 131 10 915 0-545 091 Total impact on the income statement: -98 438 At 31 December 2017, the consolidated deferred tax position showed a deferred tax asset of 6 million (versus 11 million as at 31 December 2016) and a deferred tax liability of 551 million (versus 410 million as at 31 December 2016). The primary contributors to the net balance of deferred taxes are: Germany Residential: 430.7 million Hotels in Europe: + 117.5 million Italy Offices: 2.7 million The impact on net income is detailed in paragraph 3.2.6.7.2. 44

In accordance with IAS 12, deferred tax assets and liabilities are offset for each tax entity when they involve taxes paid to the same tax authority. The non-recognised tax loss carryforwards, calculated at the standard rate, amounted to 884 million, as detailed below: thousand Nonrecognised DTA Nonrecognised tax loss carryforw ards France offices 96 653 280 699 Italy offices 18 647 77 695 Hotels in Europe 26 353 76 535 Germany Residential 10 894 68 839 France Residential 118 677 364 643 Car Parks 5 590 16 235 Total for continuing operations 276 814 884 646 3.2.5.5 Short-term loans and finance lease receivables current portion thousand 31-Dec-16 Change in Increase Decrease Transfers 31-Dec-17 scope Short-term loans 15 795 0 34 257-8 879-6 762 34 411 Finance-lease receivables 2 069 0 1 0-2 040 30 Total 17 864 0 34 258-8 879-8 802 34 441 Amortisations and provisions -13 0 0 0 13 0 NET TOTAL 17 851 0 34 258-8 879-8 789 34 441 3.2.5.6 Inventories and work-in-progress 3.2.5.6.1. Accounting principles applicable to inventories The inventories held by the Foncière des Régions group relate mainly to Beni Stabili s Trading portfolio and the Germany Residential segment. They are intended to be sold during the normal course of business. They are recorded at acquisition price and, as applicable, are depreciated in relation to the sale value (independent appraisal value). 3.2.5.6.2. Inventories and work-in-progress at 31 December 2017 The Inventories and work-in-progress line item on the balance sheet primarily consists of trading inventories in Italy Offices ( 22.6 million), Germany Residential ( 6.6 million) and France Residential ( 1.7 million). In addition, this item includes assets intended for future real estate developments in the France Offices segment ( 12.3 million). 3.2.5.7 Trade receivables 3.2.5.7.1. Accounting principles applicable to trade receivables Trade receivables consist mainly of operating and finance lease receivables. These items are measured at amortised cost. In the event that the recoverable value is lower than the net book value, the Group may be required to account for an impairment charge through profit or loss. 45

Receivables from operating lease transactions For operating-lease receivables, a provision is made at the first non-payment. The impairment rates applied by Foncière des Régions are as follows: no provision is recorded for existing or vacated tenants whose receivables are less than three months overdue; 50% of the total amount of receivables for existing tenants whose receivables are between three and six months overdue; 100% of the total amount of receivables for existing tenants whose receivables are more than six months overdue; 100% of the total amount of receivables for vacated tenants whose receivables are more than three months overdue. The receivables and theoretical provisions arising from the rules above are reviewed on a caseby-case basis in order to factor in any specific situations. Finance lease receivables The receivables are recognised at their amortised value. When the financial position of the debtor gives grounds for the likelihood of non-recovery, a provision is made. Provisions for doubtful unpaid receivables in relation to financial contracts are made for at least the interest billed according to the terms of the contract. Termination fees are recognised when invoiced. Given the significant possibility of non-recovery, these revenues are generally depreciated by an identical amount. Moreover, finance-lease assets related to doubtful contracts manifesting termination risks that are considered significant are independently appraised at market value. When these valuations, net of transfer taxes, and line-by-line, are lower than the net financial value, an impairment provision equal to the difference is recognised. 3.2.5.7.2. Trade receivables thousand 31-Dec-17 31-Dec-16 Change Expenses to be reinvoiced to tenants 141 028 126 551 14 477 Rent-free periods 110 717 117 622-6 905 Trade receivables 54 179 54 166 13 Total trade receivables 305 924 298 339 7 585 Impairment of receivables -26 626-27 743 1 117 Net total trade receivables 279 298 270 596 8 702 The balance of net trade receivables includes mainly expenses to be invoiced to tenants for 141 million, net trade receivables for 27.6 million and receivables related to the linearisation of relief granted on rent for 110.7 million. The line item Expenses to be re-invoiced to tenants is best understood in connection with the liability item Advances and deposits received ( 166 million), referring to claims for projected expenses incurred with tenants. 46

The line Change in working capital requirements on continuing operations on the cash flow statement consists of: thousand 31-Dec-17 Impact of changes in inventories and work in progress -8 Impact of changes in trade & other receivables -4 761 Impact of changes in trade & other payables 5 488 Change in w orking capital requirements on continuing operations (including employee benefits liabilities) 719 3.2.5.8 Other receivables thousand 31-Dec-17 31-Dec-16 Change Government receivables 71 951 67 822 4 129 Other receivables 26 216 15 791 10 425 Security deposits received 5 281 29 800-24 519 Current accounts 4 576 4 428 148 Total 108 024 117 841-9 817 71.9 million in government receivables comprise 35.6 million for France Offices, 18.9 million for Italy Offices, 15.1 million for Hotels in Europe and 1.6 million for Corporate. The receivables are mainly VAT and government receivables following the payment of tax adjustments recognised and for which no provision is recorded, amounting to 34.7 million (cf 3.2.2.9.4). Note that in 2017 we recognised the reclassification of receivables from the State related to tax audits of our Logistics division, presented in Discontinued operations as at 31 December 2016" (+ 5.7 million). The change in receivables from disposals comes from France Residential (- 19.7 million), Germany Residential (- 2 million), France Offices (- 2 million) and Car Parks (- 0.8 million). 3.2.5.9 Cash and cash equivalents 3.2.5.9.1. Accounting principles applicable to cash and cash equivalents Cash and cash equivalents include cash, short-term deposits, and money-market funds. These are short-term, highly liquid assets that are easily convertible into a known cash amount, and for which the risk of a change in value is negligible. 3.2.5.9.2. Table of cash and cash equivalents thousand 31-Dec-17 31-Dec-16 Money-market securities available for sale 732 582 875 790 Cash at bank 564 054 207 003 Total 1 296 636 1 082 793 At 31 December 2017, the portfolio of money market securities available for sale consisted mainly of traditional money market funds (Level 2). Level 1 of the portfolio corresponds to instruments whose price is listed on an active market for an identical instrument. 47

Level 2 corresponds to instruments whose fair value is determined using data other than the prices mentioned for level 1 and observable directly or indirectly (i.e. price-related data). Foncière des Régions holds no investments subject to capital risk. 3.2.5.10 Total shareholders equity 3.2.5.10.1. Accounting principles applicable to equity Own shares If the Group buys back its own equity instruments (treasury shares), these are deducted from shareholders equity. No profit or loss is recognised in the income statement when Group equity capital instruments are purchased, sold, issued or cancelled. 3.2.5.10.2. Statement of changes in shareholders equity The capital of Foncière des Régions totaled 224.5 million as at 31 December 2017. In 2017 Foncière des Régions undertook capital increases of 473.8 million ( 468.9 million net of costs) with the issue of 6,072,112 new shares including 5,076,786 shares as part of the addition to equity, the contribution of Foncière Développement Logements shares (916,951 Foncière des Régions shares) and the allocation of 78,375 vested free shares. Reserves correspond to parent company retained earnings and reserves, together with reserves from consolidation. As at 31 December 2017, the share capital broke down as follows: Number of authorised shares: 74,829,964 Number of shares issued and fully paid-up: 74,829,964 Number of shares issued and not fully paid-up: 0 Par value of shares: 3.00 Share classes: none Restriction on payment of dividends: none Shares held by the Company or its subsidiaries: 56,006 Changes in the number of shares during the period Date Transaction Shares issued Own shares Shares outstanding 31-Dec-16 68 757 852 96 809 68 661 043 Capital increase delivery of bonus share plan 78 375 Capital increase - cash issue 5 076 786 Increase in capital - contribution of FDL shares 916 951 Ow n shares liquidity agreement -19 378 Ow n shares employee aw ard -21 425 31-Dec-17 74 829 964 56 006 74 773 958 The statement of changes in shareholders equity is presented in Note 3.1.4. 48

3.2.5.11 Statement of liabilities 3.2.5.11.1. Accounting principles applicable to debt Financial liabilities include borrowings and other interest-bearing debt. At initial recognition, financial liabilities are measured at fair value, minus the transaction costs directly attributable to the issue of the liability. They are then recognised at amortised cost based on the effective interest rate. The effective rate includes the nominal rate and actuarial amortisation of issue expenses and issue and redemption premiums. Financial liabilities of less than one year are posted under Current financial liabilities. Convertible bonds (ORNANE-type) issued by the Foncière des Régions group are either (i) recognised at fair value in the income statement or (ii) recognised separately as a financial liability at amortised cost and an embedded derivative measured at fair value in the income statement. For Foncière des Régions, the fair value is determined according to the closing bond price. In the case of financial liabilities resulting from the recognition of finance lease agreements, the financial liability recognised against the tangible fixed asset is initially recognised at the leased asset s fair value, or if lower, at the discounted value of the minimum lease payments. Tenants security deposits The Foncière des Régions group discounts security deposits at the average financing rate of the structure and over the average remaining term of the leases determined for each type of asset. Derivatives and hedging instruments The Foncière des Régions group uses derivatives to hedge its floating rate debt against interest rate risk (hedging of future cash flows). Derivative financial instruments are recorded on the balance sheet at fair value. The fair value is calculated using valuation techniques that use mathematical calculations based on recognised financial theories and parameters that incorporate the prices of market-traded instruments. This valuation is carried out by an external service provider. The Group has been applying IFRS 13 since 1 January 2013. This standard requires accounting for counterparty risk (i.e. the risk of a counterparty defaulting on its commitments) in the assessment of the fair value of financial assets and liabilities. The majority of the financial instruments in the Italy Offices segment qualify for hedge accounting as defined by IAS 39. In this case, changes in the fair value of the effective portion of the hedge are recognised net of tax in shareholders equity until the hedged transaction occurs. The ineffective portion is recorded in the income statement. Only Beni Stabili used hedge accounting as at 31 December 2017. In other cases, given the characteristics of its debt, as of 1 January 2007 the Foncière des Régions group no longer qualifies for hedge accounting under IAS 39. All derivative instruments are therefore recognised at their fair value, and changes are reflected in the income statement. 49

3.2.5.11.2. Table of debt thousand 31-Dec-16 Increase Decrease Change in scope Other changes 31-Dec-17 Bank borrow ings 5 158 577 1 590 699-1 292 873 120 965 0 5 577 368 Other borrow ings 75 715 23 232-3 537 22 588 0 117 998 Treasury bills 1 035 400 47 000-305 000 0 0 777 400 Securitised loans 3 978 0 0 0 0 3 978 Non-convertible bonds 2 559 129 800 927-275 716 0 0 3 084 340 Convertible bonds (1) 894 695 0-349 695 0 0 545 000 Subtotal interest-bearing loans 9 727 494 2 461 858-2 226 821 143 553 0 10 106 084 Accrued interest 60 950 63 144-60 935 156 41 63 356 Deferral of loan expenses -66 960 21 410-28 324-1 002-678 -75 554 Creditor banks 15 797 0 0 0 10 876 26 673 Total borrow ings (LT/ST) excl. FV of ORNANE-type bonds 9 737 281 2 546 412-2 316 080 142 707 10 239 10 120 559 of w hich Long-term 8 384 176 8 596 316 of w hich Short-term 1 353 105 1 524 243 Valuation of financial instruments 340 160 0 0 1 509-155 657 186 012 Convertible bond derivatives 48 018 0 0 0 40 648 88 666 Total derivatives 388 178 0 0 1 509-115 009 274 678 of w hich Assets -40 692-48 178 of w hich Liabilities 428 870 322 856 Total bank debt 10 125 459 2 546 412-2 316 080 144 216-104 770 10 395 237 (1) Convertible bond movements are presented in 3.2.5.11.4 Convertible bonds The new financing taken out during the year is presented in 3.3.2.2 Liquidity risk and in 3.2.5.11.3 Bank borrowings. Debt by type as at 31 December 2017 (in M) Convertible bonds 545 Non-convertible bonds 3 084 10,106 Bank borrowings 5 577 Treasury bills 777 Other 122 The Proceeds relating to new borrowings line item of the statement of cash flows (+ 2,432.6 million) refers to: increases in interest-bearing borrowings (+ 2,461.8 million); less new debt issuance costs (- 28.3 million). The Repayments of borrowings line item of the statement of cash flows (- 2,226.8 million) corresponds to decreases in interest-bearing borrowings. 50

3.2.5.11.3. Bank borrowings The table below outlines the characteristics of the borrowings taken out by Foncière des Régions and the amount of the associated guarantees (principal amount over 100 million): In thousand France Offices Debt Appraisal values at 31-December- 2017 (1) Outstanding debt 31-December- 2017 Date of signature Initial amount of debt Maturity 29/07/2015 29/07/2025 280 M (2015) and 145 M (2015) Tour CB21 and Carré 280 000 and > 100 M #REF! 415 800 and and Suffren 145 000 01/12/2015 30/11/2023 > 100 M 167.5 M (2015) DS Campus #REF! 162 894 23/03/15 167 500 20/04/23 300 M (2016) Orange #REF! 300 000 18/02/16 300 000 18/02/26 > 100 M 2 157 937 878 694 < 100 M 322 605 132 641 Total France Offices 2 480 542 1 011 334 Italy Offices > 100 M 252 M (2015) Europe 249 486 09/06/15 255 000 09/06/25 Hotels in Europe 760 M (2016) Central 783 124 15/09/16 760 000 14/09/24 > 100 M 2 042 063 1 032 610 < 100 M 170 000 87 023 Total Italy Offices 2 212 063 1 119 633 > 100 M 447 M (2013) 226 277 25/10/13 447 000 31/01/23 > 100 M 255 million (2012) Covered bonds 186 553 14/11/12 255 000 16/11/21 > 100 M 350 M (2013) 103 088 15/07/13 350 000 31/07/22 345 M (2017) Rocca 200 635 29/03/17 277 188 29/03/25 > 100 M 290 M (2017) OPCI B2 HI (B&B) 267 000 10/05/17 290 000 10/05/24 > 100 M 2 524 652 983 553 < 100 M 984 824 419 499 Total Hotels in Europe 3 509 475 1 403 053 Germany Residential > 100 M Lyndon Immeo 01 119 924 12/12/11 169 470 12/12/21 TOTAL COLLATERISED > 100 M Refinancing of Indigo, Eagle, Faust, Berlinum 2 160 863 09/03/12 200 000 14/03/22 > 100 M Cornerstone 128 570 01/10/14 145 003 30/09/24 > 100 M Refinancing Wohnbau/Dümpten/ Aurélia/Duomo 124 063 20/01/15 150 000 30/01/25 > 100 M Refinancing Amadeus/Herbstlaub/Valore/Valartis/Sunflow er 163 854 28/10/15 147 095 30/04/26 > 100 M Quadriga 204 159 16/06/15 131 851 30/06/25 > 100 M Golddust 113 922 23/03/16 223 656 31/01/24 > 100 M Lego 134 831 24/06/16 165 251 31/03/24 > 100 M Lyndon Immeo 02 164 463 26/01/17 140 000 29/01/27 > 100 M 3 106 522 1 314 650 < 100 M 1 710 404 827 040 Total Germany Residential 4 816 927 2 141 690 13 019 007 5 675 710 France Offices 345 M (2013) ORNANE 345 000 20/11/13 345 000 01/04/19 500 M (2012) Bonds 266 400 16/10/12 500 000 16/01/18 Treasury bills BT/BMTN 777 400 180 M (2013) Private placement 180 000 28/03/13 180 000 30/04/20 500 M (2014) Bonds 226 387 10/09/14 500 000 30/09/21 500 M (2016) Green bond 500 000 20/05/16 500 000 20/05/26 500 M (2017) Bonds 500 000 21/06/17 500 000 21/06/27 > 100 M 2 795 187 < 100 M 0 Total France Offices 3 359 956 2 795 187 Italy Offices 350 M (2014) Bonds 350 000 22/01/14 350 000 22/01/18 Hotels in Europe Outstanding debt (> or < 100 M) 250 M (2014) Bonds 250 000 31/03/14 250 000 01/04/19 125 M (2015) Bonds 125 000 30/03/15 125 000 30/03/22 200 M (2015) Convertible bonds 200 000 03/08/15 200 000 31/01/21 300 M (2017) Bonds 300 000 17/10/17 300 000 17/10/24 > 100 M 2 021 393 1 225 000 < 100 M 3 978 Total Italy Offices 2 021 393 1 228 978 200 M (2015) Private placement 200 000 29/05/15 200 000 29/05/23 > 100 M 422 492 200 000 < 100 M 50 000 Total Hotels in Europe 422 492 250 000 France Residential < 100 M Total France Residential 281 400 40 000 Germany Residential < 100 M Total Germany Residential 121 211 Car Parks Total Corporate 54 020 0 Total unencumbered 6 260 472 4 314 165 Other debt 116 209 GRAND TOTAL 19 279 479 10 106 084 (1) The portfolio includes the fair value of occupied assets and real estate inventories (trading, development) 51

The borrowings are valued after their initial recognition at cost, amortised based on the effective interest rate. The average interest rate on Foncière des Régions consolidated debt stood at 1.87 % as at 31 December 2017. Breakdown of borrowings at their nominal value according to the time left to maturity and by interestrate type: (in K) Balance as at 31 december 2017 Maturity in < 1 year Balance as at 31 december 2018 Maturity from 2 to 5 years Outstanding at 31 December 2022 (over 5 Fixed-rate financial liabilities 5 533 438 1 334 330 4 199 107 1 857 320 2 341 787 France Offices Bank borrow ings 149 681 1 538 148 144 7 431 140 713 France Offices Ornane* 345 000 0 345 000 345 000 0 France Offices Other 62 374 0 62 374 41 776 20 598 Italy Offices Bank borrow ings 65 267 0 65 267 65 267 Italy Offices Convertible bonds* 200 000 0 200 000 200 000 0 Hotels in Europe - Bank borrow ings 107 013 1 088 105 925 4 894 101 031 Hotels in Europe - Other 53 830 0 53 830 22 708 31 121 Germany Residential Bank borrow ings 762 760 13 590 749 170 266 278 482 892 Germany Residential Other 1 794 476 1 319 1 154 165 Total borrow ings and convertible bonds 1 747 719 16 691 1 731 028 889 241 841 787 France Offices Bonds 1 672 787 266 261 1 406 526 406 526 1 000 000 France Offices Treasury bills 697 400 697 400 0 0 0 Italy Offices Bonds 1 025 000 350 000 675 000 375 000 300 000 Italy Offices Securitisation 3 978 3 978 0 0 0 Hotels in Europe - Bonds 386 553 0 386 553 186 553 200 000 Total debts represented by securities 3 785 718 1 317 639 2 468 079 968 079 1 500 000 Floating-rate financial debt 4 572 647 85 693 4 486 953 772 885 3 714 069 France Offices Bank borrow ings 861 653 6 715 854 937 110 346 744 591 Italy Offices Bank borrow ings 1 054 366 10 839 1 043 527 187 266 856 261 Hotels in Europe - Bank borrow ings 1 159 487 14 433 1 145 054 250 322 894 732 France Residential Bank borrow ings 40 000 0 40 000 40 000 0 Germany Residential Bank borrow ings 1 377 140 20 705 1 356 435 137 951 1 218 485 Total borrow ings and convertible bonds 4 492 647 52 693 4 439 953 725 885 3 714 069 France Offices Treasury bills 80 000 33 000 47 000 47 000 0 Total debts represented by securities 80 000 33 000 47 000 47 000 0 Total 10 106 084 1 420 023 8 686 061 2 630 205 6 055 856 (*) The ORNANE bonds are presented at nominal value. Debt by operating segment as at 31 December 2017 (in M) Germany Residential 2 142 Others 40 France Offices 3 869 10,106 Hotels in Europe 1 707 Italy Offices 2 349 52

3.2.5.11.4. Convertible bonds France Offices: The characteristic features of these convertible bonds are as follows: Features ORNANE-type bonds France Offices ORNANE-type bonds France Offices Issue date 24/05/2011 20/11/2013 Issue amount ( M) 550 345 Issue price ( ) 85,86 84,73 Conversion rate 1,18 1,11 Nominal rate 3,34% 0,88% Maturity 01/01/2017 01/04/2019 Number of convertible bonds issued 6 405 776 4 071 757 Number of convertible bonds as at 31 December 2016 928 197 4 071 757 Number of bonds redeemed at maturity on 2 January 2017-928 197 0 Number of convertible bonds as at 31 December 2017 0 4 071 757 Number of potential shares (maximum) 4 519 650 Amount of the issue after redemption and conversion ( M) 0 345 On 2 January 2017, the remainder of 928,197 ORNANE-type bonds issued in 2011 entailed a final payment of 79.7 million. The interest is payable half-yearly on 1 April and 1 October for the ORNANE-type bonds issued in 2013. Based on the quoted price on 31 December 2017, the fair value of the 2019 ORNANE-type bonds is 104.96, giving a fair value of 427.4 million at 31 December 2017 (4,071,757 bonds). Bond holders will have the option to convert their bonds either into cash and existing and/or new shares, or only into shares, based on the stock market prices over a determined period, at the Company s discretion. Italy Offices: In accordance with paragraph 11A of IAS 39, the Italy Offices ORNANE-type bonds are hybrid instruments and are recognised as a Host contract (debt at amortised cost) and as an embedded derivative (financial instrument at fair value through the income statement). In February 2017, the 2,700,000 ORNANE-type bonds issued in October 2013 were entirely redeemed for 299.3 million (costs and incentive premium included). At 31 December 2017, the ORNANE derivative maturing in 2021 of Beni Stabili was valued at 17.7 million. The characteristic features of these convertible bonds are as follows: Features ORNANE-type bonds Italy Offices ORNANE-type bonds Italy Offices Issue date 01/10/2013 01/08/2015 Issue amount ( M) 270 200 Issue price ( ) 100 100 Conversion rate 151,722 101,492 Nominal rate 2,625% 0,875% Maturity 01/03/2019 01/02/2021 Number of convertible bonds issued 2 700 000 2 000 000 Number of convertible bonds as at 31 December 2016 2 700 000 2 000 000 Number of bonds redeemed in February 2017-2 700 000 Number of convertible bonds as at 31 December 2017 0 2 000 000 Number of potential shares 0 202 983 863 53

3.2.5.11.5. Derivatives Derivative instruments consist mainly of rate hedging instruments put in place as part of the Group s interest rate hedging policy. Fair value of net derivative instruments: thousand 31-Dec-17 Net 31-Dec-16 Net France Offices 141 370 175 618 Italy Offices -3 927 28 913 Hotels in Europe 33 030 80 816 Germany Residential 15 540 47 391 France Residential -1 7 422 Total financial instruments 186 012 340 160 France Offices 82 406 58 795 Italy Offices 6 260-10 777 Total derivatives of convertible borrow ing 88 666 48 018 Total 274 678 388 178 Of w hich counterparty risk 1 033 8 562 The total impact of the value adjustments on the derivatives on the income statement was 0.1 million. It primarily consists of changes in the value of the cash instruments (+ 55.4 million), and the change in the value of the ORNANE-type bonds (- 55.3 million). In accordance with IFRS 13, the fair values include the counterparty default risk ( 1.0 million). The Unrealised gains and losses relating to changes in fair value line item in the statement of cash flows (- 915.9 million), which makes it possible to calculate cash flows from operating activities, mainly incorporates the impact of changes in the value of cash instruments (- 55.4 million), the change in the value of the ORNANE-type bonds (+ 55.3 million) and the change in the value of the portfolio ( 915.8 million). Breakdown of hedging instruments by maturity of notional values thousand At 31- December-17 less than one year from 1 to 5 years over 5 years Fixed hedge Fixed rate payer sw ap 1 454 000 435 000 760 000 259 000 Fixed rate receiver sw ap 4 050 087-336 976 720 169 3 666 894 Total sw aps 2 596 087-771 976-39 831 3 407 894 Optional hedge Purchase of fixed rate payer sw aption 0-100 000-320 000 420 000 Sale of fixed rate borrow er sw aption 0-250 000-370 000 620 000 CAP purchase 951 011 142 433 460 670 347 908 FLOOR purchase 275 570 150 520 77 080 47 970 FLOOR sale 48 000 0 0 48 000 Total 6 778 668 40 977 1 327 919 5 409 772 Balance as at 31 December 2017 thousand Fixed rate Floating rate Financial liabilities (including creditor banks) 5 533 438 4 599 320 Net financial liabilities before hedging 5 533 438 4 599 320 Sw aps -2 596 087 Caps -951 011 Total hedges -3 547 098 54

3.2.5.11.6. Banking covenants Excluding debts raised without recourse to the Group s property companies, the debts of Foncière des Régions and its subsidiaries generally include bank covenants (interest coverage ratio (ICR) and loan to value (LTV)), applying to the borrower s consolidated financial statements. If these covenants are breached, early debt repayment may be triggered. These covenants were established in Group share for Foncière des Régions on a consolidated or Group-share basis depending on the seniority of the debt with respect to Foncière des Murs, Foncière Développement Logements and Beni Stabili (if their debts include them). With respect to Immeo, for which the debt raised is non-recourse debt, there are no consolidated covenants associated with portfolio financing. The most restrictive consolidated LTV covenants at 31 December 2017 were 60% for Foncière des Régions, Foncière des Murs and Foncière Développement Logements. Lastly, a limited portion of Beni Stabili financing included a consolidated LTV covenant (Beni Stabili scope), the most restrictive level of which was also 60%. The threshold for the consolidated ICR covenants differs from one REIT to another, depending on the type of assets, and may be different from one debt to another even for the same REIT, depending on debt seniority. Lastly, only a portion of the Beni Stabili loans has a consolidated ICR covenant. The most restrictive ICR consolidated covenants applicable to the REITs are as follows: for Foncière des Régions: 200%; for Foncière des Murs: 200%; for Foncière Développement Logements: 150%; for Beni Stabili: 150%. All these LTV or ICR covenants were in strict compliance as at 31 December 2017. Concerning Foncière des Régions, the bank consolidated leverage ratios at 31 December 2017 were 44.2% for the LTV in Group share and 436% for the ICR in Group share (compared to 49.5% and 360% respectively at the end of 2016). Another type of covenant was added to the consolidated LTV and ICR Group share covenants of Foncière des Régions as part of the corporate loans taken out by Foncière des Régions: an assetsecured debt covenant (100% scope), the cap on which is set at 25% and which measures the ratio of secured debt (or debt with guarantees of any nature) to asset value. This covenant was fully complied with as at 31 December 2017. No loan has an accelerated payment clause contingent on Foncière des Régions rating, which is currently BBB, stable outlook (Standard & Poor s rating). 55

Covenant LTV Company Scope Agreed threshold Ratio 300 M (2016) Orange Foncière des Régions France Offices 60% In compliance 350 M (2013) Foncière des Murs Hotels in Europe 60% In compliance 447 M (2013) Foncière des Murs Hotels in Europe 60% In compliance 208 M (2014) Foncière des Murs Hotels in Europe 60% In compliance 255 M (2012) Covered bonds Foncière des Murs Hotels in Europe 65% In compliance 200 M (2015) Private placement Foncière des Murs Hotels in Europe 60% In compliance 279 M (2017) - Roca Foncière des Murs Hotels in Europe < 60% In compliance 254 M (2015) Europe Beni Stabili Italy Offices 60% In compliance Consolidated ICR Company Scope Agreed threshold Ratio 300 M (2016) Orange Foncière des Régions France Offices 200% In compliance 350 M (2013) Foncière des Murs Hotels in Europe > 200% In compliance 447 M (2013) Foncière des Murs Hotels in Europe > 200% In compliance 208 M (2014) Foncière des Murs Hotels in Europe > 200% In compliance 255 M (2012) Covered bonds Foncière des Murs Hotels in Europe 200% In compliance 200 M (2015) Private placement Foncière des Murs Hotels in Europe 200% In compliance 279 M (2017) - Roca Foncière des Murs Hotels in Europe > 200% In compliance 254 M (2015) Europe Beni Stabili Italy Offices > 150% In compliance These covenants, moreover, most often include specific covenants for the scopes financed. The purpose of these covenants, generally scope LTV, is mainly to limit the use of financing lines by correlating it with the value of the underlying assets provided as collateral. 3.2.5.12 Provisions for contingencies and losses 3.2.5.12.1. Accounting principles applicable to provisions for contingencies and losses Retirement commitments The retirement commitments are recognised in accordance with revised IAS 19. Provisions are recorded on the balance sheet for the liabilities arising from defined benefits pension schemes for existing staff at the reporting date. They are calculated according to the projected credit units method based on valuations made at each reporting date. The past service cost corresponds to the benefits granted, either when the Company adopts a new defined benefits scheme, or when it changes the level of benefits of an existing scheme. When new benefits are granted upon adoption of a new scheme or change in an existing scheme, the past service cost is immediately recognised in the income statement. Conversely, when the adoption of a new scheme or change in an existing scheme gives rise to the vesting of benefits after its implementation date, the past service cost is recognised as an expense on a straight-line basis over the average remaining period until the benefits become fully vested. Actuarial gains and losses result from the effects of changes in actuarial assumptions and experience adjustments (differences between actuarial assumptions and what has actually occurred). The change in these actuarial gains and losses is recognised in Other items of comprehensive income. The expense recognised in operating income includes the cost of the services rendered during the year, amortisation of past service costs and the effects of any reduction or liquidation of the scheme; the cost of discounting is recognised in net financial income. The valuations are made taking into account the Collective Agreements applicable in each country and in keeping with the various local regulations. For each employee, the retirement age is the social security eligibility age. 56

3.2.5.12.2. Provisions thousand 31-Dec-16 Change in scope Charges Transfer Change in actuarial gains and losses Reversal of provision Used Unused 31-Dec-17 Other provisions for disputes 3 682 0 217 0-88 -1 939 1 872 Provisions for guarantees 0 0 0 0 0 0 Provisions for taxes 1 210 0 15 0-176 -526 523 Provisions for renovating sites 345 0 0 0 0 345 Other provisions 4 362 0 4 185-25 -322-31 8 169 Provision subtotal current liabilities 9 599 0 4 417-25 0-586 -2 496 10 909 Provisions for retirement benefit 48 364 0 8 229 0-1 674-1 906-6 686 46 327 Provisions for long-service aw ards 1 233 0 8-60 0 1 181 Provision subtotal non-current liabilities 49 597 0 8 237 0-1 674-1 966-6 686 47 508 Total provisions 59 196 0 12 654-25 -1 674-2 552-9 182 58 417 The provisions for litigation are broken down into 1.3 million for France Offices, 0.3 million for Italy Offices and 0.3 million for France Residential. Provisions for taxes concern only the Italy Offices segment, in the amount of 0.5 million. Other provisions consist primarily of the following: provisions for losses on contracts: 4.0 million; other provisions for contingencies and losses: 4.0 million; provisions relating to grantor rights (Car Parks): 0.2 million. The provision for retirement benefits totalled 46.3 million at 31 December 2017 (including 43.5 million for the Germany Residential segment). The main actuarial assumptions used to estimate the commitments of Foncière des Régions in France were as follows: rate of pay increase: managers 4%, non-managers 3%; discounting rate: 1.11% (TEC 10 n +50 bps). The main actuarial assumptions used to estimate the commitments in Germany were as follows: Assumptions used in calculating provisions for retirement benefit obligations in Germany 31-Dec-17 31-Dec-16 Discount rate 2,1% 1,9% Annual w age grow th 2,5% 2,5% Rate of social security charges 1%/2% 1,0% IMPACT OF PROVISIONS FOR RETIREMENT BENEFITS ON THE INCOME STATEMENT ( K) Cost of services rendered during the year -581-623 Financial cost -849-1 031 Effects of plan reductions/settlements TOTAL IMPACT ON THE INCOME STATEMENT -1 430-1 654 If the discount rate increases by 50 bps (it is presently 2.1%), the provision will be lowered, down to 40.3 million. Conversely, if its decreases 50 bps, the provision will increase, up to 46.8 million. 57

3.2.5.13 Other short-term liabilities thousand 31-Dec-17 31-Dec-16 Change Social debt 20 733 19 660 1 073 Tax debt 19 028 15 172 3 856 Current accounts liabilities 8 569 3 230 5 339 Dividends to be paid 0 0 0 Other debt 69 429 14 973 54 456 Total 117 759 53 035 64 724 The change in tax liabilities was 3.9 million (including 2.7 million of change for Hotels in Europe, 0.7 million for Offices France and 0.5 million for Offices Italy). The change in other liabilities includes 55 million of deferred payment on the acquisition of hotels in Spain, for which payment is planned late in 2018. 3.2.5.14 Recognition of financial assets and liabilities IAS 39 categories 31-Dec-17 Net ( thousand) Amortised cost Fair value through shareholders equity Fair value through profit or loss Assets at amortised cost Non-current financial assets 165 656 165 656 165 656 Loans and receivables Non-current financial assets 169 368 169 368 169 368 Subscribed capital not paid up Non-current financial assets 20 040 20 040 20 040 Total non-current financial assets 355 064 355 064 Loans and receivables Trade receivables (1) 168 581 168 581 168 581 Assets at fair value through profit or loss Derivatives at fair value through profit or loss 48 178 48 178 48 178 Assets at fair value through profit or loss Cash and cash equivalents 732 582 732 582 732 582 Total financial assets 1 304 405 523 645 0 780 760 1 304 405 Liabilities at fair value through profit or loss ORNANE-type bonds 633 666 188 532 445 134 636 346 Liabilities at amortised cost Financial debt 9 561 084 9 561 084 9 605 864 (2) Liabilities at fair value through profit or loss Financial instruments (excluding ORNANE) 234 190 8 818 225 372 234 190 Liabilities at amortised cost Security deposits 18 369 18 369 18 369 Liabilities at amortised cost Trade payables 167 624 167 624 167 624 Total financial liabilities 10 614 933 9 935 609 8 818 670 506 10 662 393 (1) Excluding rent-free periods. Line item in statement of financial position (2) The difference betw een the net book value and the fair value of the fixed rate debt is 44,780 thousand. Amount show n in the statement of financial position measured at: Fair Value ( thousand) Breakdown of financial assets and liabilities at fair value: The table below presents the financial instruments at fair value broken down by level: Level 1: financial instruments listed in an active market; Level 2: financial instruments whose fair value is evaluated through comparisons with observable market transactions on similar instruments or based on an evaluation method whose variables include only observable market data; Level 3: financial instruments whose fair value is determined entirely or partly by using an evaluation method using an estimate that is not based on market transaction prices on similar instruments. 58

thousand Level 1 Level 2 Level 3 Total Derivatives at fair value through profit or loss 48 178 48 178 Money-market securities available for sale 732 582 732 582 Total financial assets 0 780 760 0 780 760 ORNANE-type bonds 636 346 636 346 Derivatives at fair value through profit or loss 234 190 234 190 Total financial liabilities 636 346 234 190 0 870 536 3.2.6 NOTES TO THE STATEMENT OF NET INCOME 3.2.6.1 Accounting principles Rental income According to the presentation of the income statement, rental income is treated as revenues. Car park receipts, disposals of assets in inventory and service charges are now shown in specific lines of the income statement below net rental income. As a general rule, invoicing is quarterly. The rental income of investment properties is recognised on a straight-line basis over the term of the ongoing leases. Any benefits granted to tenants (rent-free periods, step rental leases) are amortised on a straight-line basis over the duration of the lease agreement, in compliance with SIC 15. Share-based payments (IFRS 2) The application of IFRS 2 has resulted in the recognition of an expense for benefits granted to employees as share-based payments. This expense is recorded in income for the year. Free shares are valued by Foncière des Régions at the date of their award according to a binomial valuation model. This model takes into account the features of the plan (price and exercise period), market data upon award (risk free rate, share price, volatility and expected dividends), and assumptions of beneficiary behaviour. The benefits thus granted are recognised as expenses over the vesting period, and offset by an increase in the consolidated reserves. 3.2.6.2 Operating profit 3.2.6.2.1. Rental income thousand 31-Dec-17 31-Dec-16 Change ( thousand) Change (%) France Offices 272 131 274 847-2 716-1,0% Italy Offices 204 837 199 651 5 186 2,6% Total Offices rental income 476 968 474 498 2 470 0,5% Hotels in Europe 208 847 190 548 18 299 9,6% Germayn Residential 230 154 212 501 17 653 8,3% France Residential 11 441 15 187-3 746-24,7% TOTAL RENTAL INCOME 927 410 892 734 34 676 3,9% The rental income consists of rental and similar income (e.g. occupancy fees and entry rights) invoiced for investment properties during the period. Rent exemptions, step rental schemes and entry rights are spread out over the fixed term of the lease. Rental income amounted to 927.4 million as at 31 December 2017, versus 892.7 million at 31 December 2016, up by 34.7 million. 59

The changes by asset-type break down as follows: a decrease in rental income at France Offices (-1.0%) attributable primarily to the effect of asset disposals (- 8.4 million) and assets made vacant for renovation (- 3.4 million), less the delivery of assets under development in 2016 and 2017 (+ 5.4 million) and acquisitions (+ 3.6 million); an increase in Italy Offices rents (+2.6%) due to acquisitions (+ 7.9 million), as well as the arrival of new tenants and renewals of leases (+ 3.7 million) minus the effect of disposals (- 4.7 million) and asset vacancies (- 2.9 million); an increase in rental income at Hotels in Europe (+9.6%) principally as a result of acquisitions (+ 38.5 million), increased rents at AccorHotels (+ 2.8 million) and the deliveries of assets under development in France and Germany (+ 1.5 million) and rent indexing (+ 0.8 million), less the effect of disposals in the hotel segment (- 13.5 million), the retail segment (- 2.2) and the healthcare segment (- 9.7 million); an increase in rental income from the Germany Residential segment (+8.3%) following acquisitions (+ 23 million), rent indexing (+ 7 million), less the impact of disposals (- 13 million); a 24.7% decrease in the France Residential segment due to disposals and assets made vacant for their disposal. Note that the tenant Telecom Italia accounts for 48% of total revenues in the Italy Offices segment ( 98.9 million). 2017 rental income by operating segment in millions: Germany Residential 230 Others 11 France Offices 272 927 Hotels in Europe 209 Italy Offices 205 60

3.2.6.2.2. Real estate expenses thousand 31-Dec-17 31-Dec-16 Change ( thousand) Change (%) Rental income 927 410 892 734 34 676 3,9% Unrecovered rental costs -43 225-42 071-1 154 2,7% Expenses on properties -30 509-31 128 619-2,0% Net losses on unrecoverable receivables -3 658-4 112 454-11,0% Net rental income 850 018 815 423 34 595 4,2% Rate for property expenses -8,3% -8,7% Unrecovered rental costs: These expenses are net of re-invoicing to tenants, and basically correspond to charges on vacant premises. The change in the period (- 1.2 million) is due mainly to the effects of land taxes on the developments of France Offices (- 2.3 million), the reconsolidation of Logistics (- 0.7 million) and the effect of acquisitions in Spain (- 2.0 million), offset by a decline in Germany Residential (+ 2.4 million) and gains from the decline in rents in France Residential (+ 1.2 million.) Expenses on properties: These consist of rental expenses that are borne by the owner, expenses related to works and expenses related to property management. Net losses on unrecoverable receivables: These consist of losses on unrecoverable receivables and net provisions on doubtful receivables. 3.2.6.2.3. Net cost of operations These consist of head office expenses and operating costs net of revenues from management and administration activities. thousand 31-Dec-17 31-Dec-16 Change ( thousand) Change (%) Management and administration income 20 986 16 904 4 082 24,1% Business expenses -7 310-5 964-1 346 22,6% Overhead -110 929-103 478-7 451 7,2% Development costs (not capitalised) -4 102-1 038-3 064 n.a. TOTAL NET OPERATING COSTS -101 355-93 576-7 779 8,3% Management and administration income rose by 4.1 million. These primarily include the consolidation of Revalo in Italy, a company specialising in the management of real estate portfolios, for 4.6 million. Overheads rose by 7.5 million, particularly for payroll following the increase in headcount in Italy (Revalo) and Germany. Development costs relate to various discontinued projects in the France Offices segment (- 3 million) and Germany Residential segment (- 1 million.) 3.2.6.2.4. Results from other activities The net income from other activities declined by 6.9 million. This change is attributable to lower earnings in Car Park companies (- 3.2 million) and by lower earnings from real estate development in the France Offices segment ( 2.4 million) at 31 December 2017 versus ( 5.5 million) at 31 December 2016. 61

3.2.6.3 Change in the fair value of assets thousand 31-Dec-17 31-Dec-16 Change in thousand France Offices 250 578 277 489-26 911 Italy Offices 63 188 74 292-11 104 Hotels in Europe 100 161 34 838 65 323 Germany Residential 502 222 259 019 243 203 France Residential -294-1 091 797 Total Change In Fair Value of Properties 915 855 644 547 271 308 At France Offices, the fair value is driven by creating value in the assets delivered in 2017 (+28% on average). In Hotels in Europe, value creation depends largely on the acquisition of the Spanish portfolio acquisition in early 2017 (+7.2%). At Germany Residential, the asset values benefited from indexing and the compression of present-value discount rates, particularly in Berlin, Dresden and Leipzig (yield rate on the total portfolio at 31 December 2017 was 4.7% versus 5.4% at 31 December 2016). 3.2.6.4 Income from changes in scope A loss of 3.3 million was recognised under income from changes in consolidation scope, primarily due to acquisitions of shares in the Germany Residential segment (- 3.1 million). In accordance with IFRS3R, this must be recognised in profit or loss. 3.2.6.5 Costs of the net financial debt thousand 31-Dec-17 31-Dec-16 Change ( thousand) Change (%) Interest income on cash transactions 13 286 13 255 31 0,2% Interest expense on financing operations -201 395-198 051-3 344 1,7% Net expenses on hedges -48 806-51 474 2 668-5,2% Net Financing Cost -236 915-236 270-645 0,3% Excluding costs to repurchase fixed-rate debt and penalties ( 58.3 million at 31 December 2017 versus 27.3 million at 31 December 2016), the cost of debt declined by 30 million, under the effect of refinancings and restructured hedges. 3.2.6.6 Net financial income thousand 31-Dec-17 31-Dec-16 Change in thousand Change in % Cost of net financial debt -236 915-236 270-645 0,3% Positive changes in the fair value of financial instruments 59 435 122 566-63 131 Negative changes in the fair value of financial instruments -59 313-95 223 35 910 Changes in the fair value of financial instruments 122 27 343-27 221-99,6% Financial income from discounting 1 871 2 216-345 Financial expenses from discounting -8 679-5 835-2 844 Discounting -6 808-3 619-3 189 88,1% Impact of discounting and changes in fair value -6 686 23 724-30 410-128,2% Expenses net of financial provisions and other -23 273-52 801 29 528-55,9% TOTAL NET FINANCIAL INCOME -266 874-265 347-1 527 0,6% 62

The net financial provisions and other expenses improved by 29.5 million. They mainly reflect the deferral of loan issue costs for - 21.7 million (of which - 6.4 million was extraordinary amortisation after the refinancings) versus - 34.6 million at 31 December 2016. Note that this item was impacted in 2016 by the redemption penalties in France Offices of - 16.7 million. 3.2.6.7 Taxes payable and deferred taxes (including the Exit Tax) 3.2.6.7.1. Accounting principles applicable to current and deferred taxes SIIC tax regime (French companies) Opting for the SIIC tax regime involves the immediate liability for an exit tax at the reduced rate of 19% on unrealised capital gains relating to assets and securities of entities not subject to corporation tax. The exit tax is payable over four years, in four instalments, starting with the year the option is taken up. In return, the Company is exempted from income tax on the SIIC business and is subject to distribution obligations. (1) Exemption of SIIC revenues The revenues of the SIIC are exempt from taxes concerning: income from the leasing of assets; capital gains realised on asset disposals, investments in companies having opted for the tax treatment or companies not subject to corporation tax in the same business, as well as the rights under a lease contract and real estate rights under certain conditions; dividends of SIIC subsidiaries. (2) Distribution obligations The distribution obligations associated with exemption profits are the following: 95% of the earnings derived from asset leasing; 60% of the capital gains from disposals of assets and shares in subsidiaries having opted for the tax treatment or subsidiaries not subject to corporation tax with a SIIC corporate purpose for two years; 100% of dividends from subsidiaries that have opted for the tax treatment. The Exit Tax liability is discounted on the basis of the initial payment schedule determined from the first day the relevant entities adopted SIIC status. The liability initially recognised is discounted and an interest charge is applied at each closing, allowing the liability to reflect the net discounted value as at the closing date. The discount rate used is based on the yield curve, given the deferred payment. Ordinary law regime and deferred taxes Deferred taxes result from temporary differences in taxation or deduction and are calculated using the liability method, and on all temporary differences in the Company financial statements, or resulting from consolidation adjustments. The valuation of the deferred tax assets and liabilities must reflect the tax consequences that would result from the method by which the Company seeks to recover or settle the book value of its assets and liabilities at year-end. Deferred taxes are applicable to Foncière des Régions entities that are not eligible for the SIIC tax regime. 63

A deferred tax asset is recognised in the case of deferrable tax losses in the likely event that the entity in question, not eligible for the SIIC regime, will have taxable future profits against which the tax losses may be offset. In the case where a French company intends to opt directly or indirectly for SIIC tax treatment in the near future, an exception under the ordinary law regime is applied by anticipating the application of the reduced rate (Exit Tax) in the valuation of deferred taxes. SIIQ tax regime (Italian companies) Opting for the SIIQ tax regime triggers immediate liability for exit tax at a reduced 20% tax rate on the unrealised capital gains relating to the assets eligible for SIIQ tax treatment. The exit tax is payable over a maximum of five years. Note that in 2014, a new decree was enacted (Law Decree No. 133/2014). Previously, the Company was exempted from tax on the SIIQ revenues ( rental asset rental income and dividends of subsidiaries subject to the tax regime) on condition of an 85% distribution ceiling. This ceiling has now been lowered to 70%. Moreover, the decree requires that 50% of the capital gains on the disposal of assets eligible for the SIIQ regime be distributed within two years following their recognition. In compensation, no tax is payable on capital gains from asset disposals and earnings from this business activity. SOCIMI tax regime (Spanish companies) The Spanish companies held by Foncière des Murs opted for the SOCIMI tax regime, effective 1 January 2017. Opting for SOCIMI does not trigger an exit tax upon making the option. However, the capital gains on the period outside of the SOCIMI regime during which assets were held are taxable when disposing of said assets. The rental income from the leasing of assets and proceeds from disposals of assets held under the SOCIMI regime are exempt, provided 80% of rental profits and 50% of asset disposal profits are distributed. These capital gains are determined by allocating the taxable gains to the period outside the SOCIMI regime in a linear basis, over the total holding period. 3.2.6.7.2. Taxes and theoretical tax rate by geographical area thousand Taxes payable Deferred tax liabilities Total Deferred tax rate France 1 121-11 1 110 34,43% Italy -2 747 3 230 483 27,90% Germany -7 104-103 930-111 034 15,83% Belgium -2 232 8 074 5 842 29,58% Luxembourg -478-1 590-2 068 30,00% Netherlands -248-2 503-2 751 25,00% Portugal -311-1 708-2 019 23,00% Spain -15 0-15 25,00% Total -12 014-98 438-110 452 (-) corresponds to a tax expense; (+) corresponds to a tax income. Income taxes payable in France relate to the 3% contribution on dividends paid for the 2016 reporting period (- 1 million) and the source withholding paid on the Beni Stabili dividend (- 2 million), less the rebates on the 3% tax requested for fiscal years 2013 to 2016 (+ 4 million). Taxes payable on disposals were 6.3 million, including ( 2.7 million) on Italy Offices, ( 2.8 million) on Germany Residential and ( 0.8 million) on Hotels in Belgium. 64

Impact of deferred taxes on income thousand 31-Dec-17 31-Dec-16 Change France Offices 0 500-500 Italy Offices 3 230-2 781 6 011 Hotels in Europe -1 813-17 328 15 515 Germany Residential -99 844-37 699-62 145 Corporate and not attributable -11 440-451 Total -98 438-56 868-41 570 The deferred tax income of Italy Offices equals a downward adjustment of the deferred tax liability after the asset disposals and moving assets under development into the SIIQ regime as of 1 January 2018. Note that the deferred tax expense of the Italy Offices segment for the 2016 fiscal year is mainly due to a decrease in the deferred tax assets following the use of tax credits. The deferred tax charge of the Hotels in Europe segment is largely due to the increases in value of assets in Portugal, the Netherlands and Germany, offset by a decrease in the amount of deferred tax liability on assets in Belgium following a reduction in the deferred tax rate from 33.99% to 29.58%. The deferred tax expense of the Germany Residential segment mainly relates to an increase in the value of assets. 3.2.6.7.3. Tax proof The management companies that opted for the SIIC/SIIQ/SOCIMI tax regime in previous years do not pay corporate income tax, except for those that also have a taxable business activity. Net income before taxes and before income of equity affiliates is neutralised, including for their taxable activities and their transparent taxable subsidiaries. Accordingly, the tax proof is required solely for taxable French and international companies. BREAKDOWN OF TAX BY TAXABLE SEGMENT Breakdown of tax by taxable segment (in thousand) France (SIIC) Italy (SIIQ) Spain (SOCIMI) France Common law Outside France Common law 31-Dec-2017 Net income before tax, before income of equity affiliates 709 140 2 182 708 473 1 419 795 Income tax expense recorded 2 022-444 -112 030-110 452 The actual tax income recognised in the SIIC/SIIQ/SOCIMI tax segment is detailed in paragraph 3.2.6.7.2. 65

thousand 31-Dec-17 Net income before tax 1 463 033 Share of income from equity affiliates -43 238 Goodw ill 0 Net income before tax, before income of equity affiliates 1 419 795 - of w hich SIIC/SIIQ/SOCIMI companies 709 140 of which companies subject to tax 710 655 Theoretical tax rate of 34.43% (a) -244 703 Impact of rate differentials 133 653 Impact of tax credits and fixed tax rates -283 Impact of permanent differences -6 463 Charged to prior year losses w ithout DTA 2 748 Tax losses for the year w ithout DTA -4 725 Total tax impacts for the period (b) 124 930 Impact of tax audits and taxes on prior years c) 7 300 Income tax expense recorded (a)+(b)+(c) -112 475 Overall effective tax rate 15,83% The actual income tax expense recognised relates mainly to the Germany Residential segment. 3.2.7 OTHER INFORMATION 3.2.7.1 Personnel remuneration and benefits 3.2.7.1.1. Personnel expenses At 31 December 2017, personnel expenses amounted to 65.6 million, compared with 63.9 million at 31 December 2016. This increase is mostly attributable to adding personnel in Germany Residential and Italy Offices (consolidation of Revalo in December 2016.) Headcount At 31 December 2017, the headcount of fully consolidated companies was 827. Headcount by country in number of employees Italy 148 Spain 1 Luxembourg 1 France 268 Germany 409 The average headcount for 2017 was 811 employees. 66