ANF Immobilier : Rental Income 3rd Quarter 2017

Regulatory News:

A slight decline of 1% in rental income, Group share in the first nine months of 2017 (down 4% on a consolidated IFRS basis), resulting mainly from asset rotation and the Marseille real estate market

Rental income of ANF Immobilier, on a consolidated basis and according to IFRS, reached €36.8 million as of September 30, 2017. This represents a 4% decline compared to the first three quarters of 2016, mainly due to the asset rotation policy and a lackluster real estate market in Marseille. On a like-for-like basis, rental income amounted to €33.5 million (€30.6 million Group share).

Rental income from the Retained Portfolio (portfolio excluding the real estate portfolio under binding reciprocal promise of sale with Primonial REIM, the latter being referred to as the "Sold Portfolio") now breaks down as 81% offices, 2% retail premises, 16% hotels and the remainder in other surfaces, mainly parking lots. Commercial rental income now accounts for 99% of total income.

Rental income from the Sold Portfolio represented €12.9 million under IFRS (and also in Group share). Restated for the latter, the pro forma rental income of ANF Immobilier (from the "Retained Portfolio"), amounted to €23.9 million under IFRS and €17.7 million Group share.

Changes in rental income at constant scope for the entire portfolio: 5% decline

1) Sold Portfolio:

a) In Marseille, rental income increased by +€0.2 million. This trend results from an improvement in the occupancy rate of residential units in 2017 (+€0.5 million, a positive balance of 54 unfurnished residential units rented in the first three quarters and a vacancy rate changing from 29% at the end of September 2016 to 16% at the end of September 2017 for furnished housing). This offsets the departure of retail brands located on Rue de la République due to the current excess supply of retail spaces.

b) In Lyon, rental income displayed significant growth with the impact of the Banque de France asset at +€0.4 million.

2) Retained Portfolio:

a) In Marseille, a decline in rental income was recorded and resulted mainly from the departure of one tenant from an office building located in the Euroméditerranée neighborhood (-€1.2 million).

b) In Lyon, rental income declined by -€1.2 million due to the impact of the move of the Adecco France Group from their former headquarters to their new Carré de Soie headquarters, owned and developed by ANF Immobilier. It should be noted that the building vacated by Adecco France holds a building permit obtained at the end of April 2017 for a large-scale restructuring project. In the future, more than 22,000 m² of new offices, ideally located in immediate proximity to the Tête d’Or park, will be built.

c) In Bordeaux, rental income from office buildings situated in the Les Bassins-à-Flot district was stable.

Changes in rental income related to changes in scope for the entire portfolio: 1% increase

In Marseille, rental income decreased by -€0.8 million due to the sale of an office building to the Caisse Primaire d’Assurance Maladie at the end of 2016.

Likewise, rental income from hotel assets declined by -€1.2 million due mainly to the sale of a MGallery hotel in Lyon and an Adagio hotel in Marseille during the same period (-€1.6 million), sales which were partially offset by the delivery of two new hotels: Allar in Marseille and Bobigny in the Paris region (+€0.4 million).

In Lyon, rental income rose significantly by €1.3 million. This growth was due to the delivery of the new headquarters of the Adecco France Group, more than 13,000 m² located in the Carré de Soie district, which took place in September 2016 (+€1.9 million) and was attenuated by mixed sales of retail lots and historical residential assets (-€0.6 million).

In Bordeaux, rental income will be reinforced from the second half-year of 2018 by the Quai 8.2 transaction, an iconic and mainly commercial real estate €97 million development that is immediately adjacent to the high-speed rail terminal.

In Toulouse, in March 2017, the acquisition of the 16,150 m² Centreda commercial property complex in close proximity to the Airbus headquarters, contributed to a +€1.0 million increase in rental income.

Outlook

ANF Immobilier confirms its objective for 2017 of stable EPRA earnings, adjusted and Group share (after the restatement of impacts associated with the Sold Portfolio and the change of control), an objective consistent with its asset rotation program and the pace of its developments.

For Emmanuelle Baboulin, Chairman of the Executive Board of ANF Immobilier, "ANF Immobilier continues to grow and is now reaching a milestone with the sale of nearly its entire historical portfolio, which is planned for the 4^th quarter. It chose to fully transform into a purely commercial real estate company specializing in regional city centers. "

About ANF Immobilier

ANF Immobilier (ISIN FR0000063091) is a listed real estate investment company that owns a diversified portfolio of French office, retail, hotel and residential properties worth €1 billion. It is undergoing a major transformation to concentrate on commercial real estate, create value and support the development of large, dynamic regional cities. It currently has assets in Bordeaux, Lyon, Marseille and Toulouse. Listed on Euronext Paris, ANF Immobilier is included in the EPRA real estate index.

http://www.anf-immobilier.com

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