FONCIERE 6 ET 7 : 2015 H1 financial results

Press Release

Paris, July 28th, 2015.

 € 2.4 bn of assets, 90% of which located in Paris and 97% occupied

 Triple Net Asset Value at € 124.52 per share vs € 118.35 on December 31st, 2014 (+5.1%)

 € 97m of asset sale generating € 22.3m of capital gains & € 53m of on-going acquisitions

 Cost of debt dropped from 2.61% to 2.51%

Following the mergers with Foncière Paris France and Foncière des 6ème et 7ème Arrondissements de

Paris last May, Foncière de Paris's renting portfolio jumped from € 287m in 2012 to € 2.4 bn today,

90% of which located in Paris.

The board of directors of Foncière de Paris met on July 28th, 2015 and closed the first-half results as of June 30th, 2015, using IFRS standards. Auditors performed their limited review of the accounts and their report will be released shortly. This press release is to be read with all information available. The First- Half report will be available on August 5th, 2015 on the company's web site: www.fonciere-de-paris.fr.

I) Renting activity & Portfolio

The occupancy rate amounts to 97% vs 95% on December 31 st, 2014 thanks to robust renting activity.

33.000 SQ.M. RENTED OR RENEWED OVER THE PAST SIX MONTHS -representing a potential of € 16m of annual rents- among which:

- SNCF Group rented for ten years (9 firm) Coruscant in Saint-Denis (14.550 sq.m.).

- « Le Campra » in Saint-Denis is now fully occupied thanks to the letting of 1.900 sq.m

- Foncière des 6ème et 7ème secured the future occupancy of the building site Penthemont (Paris VII) by signing a lease with Yves Saint-Laurent for approx. 9,200 sq. m. of offices (on a total of 12,500 sq. m.). This agreement is subject to suspensive conditions, among which those related to building permits authorizations, which are still to be obtained for the moment.

- A franchise contract was concluded with Marriott to build up a 50 rooms 5* hotel in the balance of Penthemont

- Robert Walters PLC signed a six years lease on newly refurbished 1.050 sqm in the building located

251, bd Pereire (Paris XVII).

- Finally, 1.000 sqm were rented in Biopark (Paris XIII)

Two purchases contracts were signed for an overall amount of € 53m:

- The former, to purchase the land of the Holiday Inn Paris Saint Germain des Prés hotel, the walls and business of which were already owned by Foncière de Paris. Thanks to this acquisition, the full ownership of a high quality premises is fulfilled.

- The latter, early July 2015, to purchase the full ownership of a building site, fully rented,

located 127-129, rue de l'Université (Paris VII) constituted of 2.300 sq.m. of offices, 700 sq.m. of residential units and 330 parking spaces for an overall area of 9.400 sq.m..

Three buildings were sold during first half for a total amount of € 97m, above December 31st, 2014 expertise, leading to a consolidated capital gains of € 22.3m. Namely: « Rueil 250 » (Rueil-Malmaison),

76-80, av du Général Leclerc (Paris XIV) and 4, rue de Lasteyrie (Paris XVI). The full year annual rent

generated by these three buildings amounted to € 6m.

The portfolio, 90% Parisian, is valued € 2.4bn as at June, 30th 2015. This figure integrates € 290m of capital gains.

Triple net EPRA Asset Value amounts to € 124.42 euros per share as at June 30th, 2015 vs € 118.35 as at December 31st, 2014, up by 5.1% over six months. We remind the reader that NAV calculated traditionally released by the company amounts to € 124.85 per share as of June 30th, 2015 vs € 118.69 as of December 31st, 2014 (+5.2%)(1).

(1) Differences between the two methods consist mainly in the booking of treasury shares and fair value of fixed debt

II) First Half results

With respect to IFRS standards, First Half consolidated Profit & Loss Statement integrates the contribution of Foncière des 6ème et 7ème arrondissements de Paris as of April 1st, 2015, and not as of January 1st, 2015 as it is the case for social accounts. Pro-forma indicators were calculated in order to facilitate comparison.

This being said, as at June 30th, 2015, the consolidated turn-over amounts to:

Consolidated net profit amounts to € 40.9 m vs € 33.6 m as at December 31st, 2014 and € 11.6 m as at

June 30th, 2014.

As at June 30th 2015, main cash-flow indicators are the following:

Loan To Value ratio (excl. rights) remains stable at 45%. Average cost of debt drops from 2.61% to

2.51% between December 31st, 2014 and June 30th, 2015. The debt maturity is 3.2 years vs 3,4 years

as at December 31st, 2014. During the semester, the company concluded swaps contracts, mainly with

differed effect at an average rate of 1%, for a nominal value amounting to € 570m and bought caps for

a nominal value amounting to € 150m with a 0.50% strike. As at June 30th, 2015, the debt is 84%

covered and up to almost 50% up until mid-2021. Eventually, the undrawn credit facilities amounts to

€560m.

The consolidated credit-leasing assets decrease to € 361m vs € 425m as at December 31st, 2014.

III) Outlook : distribution & value creation

The strategy of the company is to pursue the acquisitions of Parisian assets to be restructured. Hence the projects of the EADS building, boulevard de Montmorency (Paris XVI), and of Penthemont, rue de Bellechasse (Paris VII), which refurbishments are to start soon and will approximately last two years.

The merger in May with Foncière des 6ème et 7ème arrondissements de Paris reinforces the property profile of the company, dedicated to Parisian Offices with more than € 2 bn of assets located in Paris,

97% of which being rented. Apart unforeseen event, Foncière de Paris should ensure in 2015 the

distribution of a dividend equal or higher than the one of the previous year, sticking to what has been for more than 30 years the trademark of the company.

Foncière de Paris is listed on Euronext Paris since 1987 (code ISIN: FR0000034431) under real-estate

FTSE classification. www.fonciere-de-paris.fr

François Thomazeau / Olivier Riché / Arnaud Pomel

Séverine Farjon - farjon@foncieredeparis.fr- Phone: +33 (0)1 53 70 77 77-

Consolidated Balance Sheet in K€

(IN THOUSANDS OF EUROS)

ASSETS 30/06/2015 31/12/2014 30/06/2014*

INTANGIBLE ASSETS 5 839 5 524 188

Investment properties 1 882 954 976 462 1 047 839

Hotel operating capital assets 208 786 54 082 51 235

Assets for financial leasing 361 099 425 053 444 307

Assets for property financial leasing 3 646 4 433 5 685

Assets for movable property financial-properties 344 556 406 821 425 465

Financial fixed assets 12 897 13 799 13 157

Operating fixed assets 785 586 543

TANGIBLE ASSETS 2 453 625 1 456 183 1 543 924

Securities in asociated undertakings 3 683 96 602 93 879

Securities and receivables held to maturity 14 9 690

Securities available for sale 92 207 84 781 83 572

Interest-rate instruments (caps & swaps) 5 943 1 248 2 450

Deferred tax assets 4 779 2 252 2 788

Other receivables 742 9 663 1 542

OTHER NON-CURRENT ASSETS 107 368 194 555 184 922

TOTAL NON-CURRENT ASSETS 2 566 832 1 656 262 1 729 034

Properties held for sale 11 185 77 022 88 192

Inventories 328 129 75

Accounts receivable on investment properties 36 416 8 801 15 673

Financial leasing receivables 7 542 3 709 7 262

Operating receivables 43 959 12 510 22 935

Miscellaneous receivables 13 221 8 325 23 119

Securities available for sale 425 1 486 1 610

Cash and cash equivalents 21 613 15 944 36 962

Cash 22 038 17 429 38 573

CURRENT ASSETS 90 730 115 415 172 893

TOTAL ASSETS 2 657 562 1 771 678 1 901 927

LIABILITIES 30/06/2015 31/12/2014 30/06/2014*

Capital 154 426 99 386 99 271

Reserves 790 834 432 525 422 953

Transferable reserves 14 050 12 108 4 758

Treasury shares -17 941 -18 466 -18 741

Other consolidated reserves 794 725 438 883 436 936

Other equity instruments - - - Share in the income of associated undertakings -1 516 4 415 1 943

Income to be allocated - - - Income excluding share in the income of associated undertakings 42 395 29 183 8 890

Income 40 879 33 598 10 833

SHAREHOLDERS' EQUITY GROUP SHARE 986 139 565 509 533 058

Minority interest income - - 811

Minority interest reserves - - 1 825

MINORITY INTEREST - - 2 636

Bonds redeemable into shares (OSRA) 72 908 72 908 87 474

Financial liabilities due in more than one year 1 223 702 871 526 935 735

Interest-rate instruments swaps 8 241 7 082 13 819

Deferred tax liabilities 8 023 1 957 1 369

Other debts 16 380 11 279 13 786

Miscelleanous debts 24 404 13 236 15 155

TOTAL NON-CURRENT LIABILITIES 2 315 394 1 530 261 1 587 876

Provisions for contingencies and charges 4 350 2 596 2 506

Financial liabilities due in less than one year 255 873 184 945 221 677

Miscellaneous debts 81 945 53 875 89 868

TOTAL CURRENT LIABILITIES 342 168 241 417 314 050

TOTAL LIABILITIES 2 657 562 1 771 678 1 901 927

* restated data taking into account IFRIC 21 retrospective application.

Profit & Loss in K€

(IN THOUSANDS OF EUROS)

30/06/2015 31/12/2014 30/06/2014*

(6 months) (12 months) (6 months)

OPERATING REVENUE 94 044 155 421 86 657

Revenue from rental activity 59 333 99 181 53 184

Rental income 45 297 79 390 39 971
Re-invoiced expenses 12 587 17 358 12 207
Other revenue & tranferred expenses 492 1 351 765
Recoveries of impairments of assets 555 516 142
Recoveries of provisions for doubtful accounts 286 566 99
Recovery of provisions for contingencies and charges 115 - -

Revenue from credit-leasing 20 180 42 929 26 284

Fees and taxes and other revenues 8 999 21 352 11 054
Re-invoiced charges 7 330 8 825 7 706
Recoveries of provisions and depreciaiton 2 311 5 428 2 191
Recoveries of provisions for doubtful accounts 1 069 4 943 3 652
Capital gain on sales 50 1 196 941
Other revenues 420 1 185 742

Other operating revenues 14 532 13 311 7 189

Hotel operating revenue 14 266 12 545 6 314
Other revenue 266 766 875

Other provisions for contingencies and charges - - - OPERATING EXPENSES 64 162 94 405 58 430

Expenses on rental activiy 30 851 49 644 29 440

Re-invoicable expenses 12 587 17 358 12 147
Non re-invoicable expenses 4 666 5 492 3 206
Depreciation 11 138 21 040 10 458
Depreciation for asset depreciation 2 103 3 694 2 922
Depreciation for contincenties and charges - - - Expenses on doubtful accounts 308 675 285
Other expenses 49 1 386 421

Operating expenses on financial leasing 13 862 20 736 15 033

Re-invoicable expenses 7 330 8 825 7 706
Non re-invoicable expenses 95 814 591
Depreciation 1 563 239 9
Expenses on doubtful accounts 1 912 6 404 3 149
Gain/loss on sales 2 332 4 293 1 662
Other expenses 630 161 1 915

Other operating expenses 11 477 9 657 4 871

Other hotel operating expenses 10 138 8 588 4 171
Depreciation and amortisation for the hotel activity 1 339 1 068 699

Other depreciation for contingencies and charges - - - General operating expenses 7 973 14 368 9 087

Payroll expenses 6 177 7 939 5 503
Other administrative expenses 613 3 845 2 138
Taxes and similar payments 969 1 379 698
Depreciation, amortisation and provisions 113 755 502
Other operating expenses 101 450 246

OPERATING PROFIT 29 882 61 016 28 227

Income from sale of investment properties 22 322 6 123 1 088

OPERATING INCOME AFTER SALE 52 204 67 140 29 315

PROFIT OR LOSS OF ASSOCIATED UNDERTAKINGS -1 516 4 415 1 943

Net debt cost -18 032 -42 047 -18 599
Dividends and 5 540 11 120 5 131
Changes in value of financial instruments 2 424 -6 138 -4 936

Discounting impact - - - Impact of discounts - - PRE-TAX INCOME 40 620 34 489 12 855
Taxes (including deferred tax) 259 -892 -1 211

NET INCOME/LOSS 40 879 33 598 11 644

Of which minority interest share - - 811

GROUP SHARE 40 879 33 598 10 834

Earnings per share 4,94 € 5,24 € 1,69 €

Diluted earnings per share 4,76 € 5,34 € 1,84 €

* restated data taking into account IFRIC 21 retrospective application.

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