Patrimoine mmerce : 2016 First Half Results

• Gross rental income up by +24%

• Recurring net income up by +26%

• Asset valuation up by +5% to €662M

  Press release - 28th september 2016

• Successful payment of dividend in stocks

(The 2016 1st half financial report is being made available to investors on the Company's website at the same time this press release is issued)

Boulogne-Billancourt, September 28th 2016 - At its 27 September 2016 meeting, the Patrimoine & Commerce Supervisory Board reviewed the Company's operations and approved the financial statements for the first half of fiscal year 2016, prepared by Management. The financial statements for the period were audited by the Statutory Auditors.

Patrimoine & Commerce gross rental income as at 30 June 2016 came in at €20.5M versus €16.6M as at 30 June 2015, a +23.7% increase that was primarily driven by the acquisitions and projects delivered at the end of the previous year (La Ville-du-Bois (91), Epagny (74), La Rochelle (17), and Ecully (69)); the leasing of projects delivered at the beginning of 2016 (Salon-de-Provence (13), the first part of Cognac (16), and Champniers (16)); and the acquisitions made in the 1st half of 2016 (Clermont-Ferrand Lempdes (63), Loches (37), and Provins (77)).

As of 30 June 2016, the occupancy rate for all commercial assets, excluding strategic vacancy, remains unchanged versus the same period in 2015, at 96%5.

Press lease - 28th september 2016

EBITDA, excluding the development business, increased by more than +23% to reach

€17.5M (compared with €14.2M as at 30 June 2015), demonstrating the Company's ability to control its structural costs and resulting in an EBITDA/Rental Income ratio of 89%.

EPRA earnings for the period totaled €12.6M, an increase of +25.7% versus the first six months of 2015. Per share, EPRA earnings rose by +25.2%, from €0.82 as at 30 June 2015 to €1.02 per share as at 30 June 2016. The table above illustrates the passage from current operating income to recurring net income.

As of 30 June 2016, the appraised value of investment property (excluding transfer taxes and including assets held for sale) was €636M (€662M if the assets of equity method investees is included), an increase of +4.7% compared with 31 December 2015. This increase is due in particular to investments made in the course of the six months ended 30 June 2016 totaling €29.2M.

The change in the fair value of investment properties had a positive impact of €1.4M on net income. The capitalization rate of assets in use was unchanged at 7.4%.

The group's adjusted consolidated net debt came to €282.7M as at 30 June 2016 (compared with €266.7M as at 31 December 2015), giving the group a Loan-To-Value ratio (restated of assets held for sale) of 43.8%, in line with the medium-term objectives of Patrimoine & Commerce.

In addition, the Company continues to take advantage of the low interest rate environment to hedge its debt. Accordingly, 93% of the debt is now hedged with financial instruments or fixed-rate.

Lastly, the average rate of the debt is constantly improving and, for the six months ended 30 June 2016, is 3.2% (versus 3.5% as at 30 June 2015).

NAV excluding transfer taxes (or EPRA NNNAV) is €292.0M (or €23.7 per share), virtually unchanged compared with NAV for the year ended 31 December 2015.

Press lease - 28th september 2016

At their meeting on 21 June 2016, the shareholders approved the payment of a dividend of 1.0 euro per share, an increase of nearly +18% representing a global payout of

€12.6M.

The option of total or partial payment in the form of shares that was offered to shareholders was a great success and was more than 70% subscribed. Eric Duval, Managing Director and Founder of Patrimoine & Commerce, stated: "I wanted to thank the shareholders of Patrimoine & Commerce for their confidence, which demonstrates the wisdom of our development strategy."

A key player in French low cost retail parks, Patrimoine & Commerce is steadily strengthening its profile as a growth and yield retail real estate specialist. In light of the dynamic observed for the 1st six months of 2016, the Company has confidence in the full year 2016 performance.

Notes: 1 Groupe Sepric income and expenses have been reposted to net income

2 Alternative Performance Measures (Cap rate, LTV, NAV, etc.) defined in the Interim Financial Report published on 30 June 2016 on the Company's website.

3 Incl. Cherbourg and Studio Prod for the stake held and the assets held for sale.

4 Adjusted for security deposits, hedging instruments, and assets held for sale.

5 Calculated on the basis of rents (excluding strategic vacancy).

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About Patrimoine & Commerce

Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area of 383 000 m². The assets are mainly located in retail parks near mid-sized towns throughout France.

Patrimoine & Commerce is listed on NYSE Euronext Paris. ISIN code: FR0011027135 - Tag code: PAT

For further information, go to: www.patrimoine-commerce.com

For information, contact:

THE LOW COST RETAIL PARK SPECIALIST