FDL : Foncière des Régions - Reference Document 2016...

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REFERENCE DOCU ENT 2016

1

BUSINESS

A CTIVIT Y IN 2016

PAG E 2

1. Profile 4

2. 2016 Highlights 8

3. Record results in 2016: success

   of the European integrated model 10

4. Business analysis 14

5. Business analysis by segment 23

6. Financial information and comments 52

7. Financial Resources 60

8. EPRA reporting 65

9. Real estate appraisals 73

10. Risk factors 85

2

SUSTAINABLE DEVELOPMENT

PAG E 92

1. Editorial by Christophe Kullmann:

   "co‑inventing tomorrow's cities today" 94

2. Expertise in tune with markets and clients 95

3. Towards 100% green assets 111

4. A diverse, Europe‑wide portfolio of hotels 121

5. Proactively managing the residential portfolio 126

6. Beni Stabili, a CSR leader in Italy 133

7. Increasing our regional footprint 138

8. Human capital 144

9. Open and transparent governance 151

10. CSR Performance 158

11. Verification by an independent

third party auditor 200

3

FINANCIAL

INFORMATION

PAG E 203

1. Consolidated financial statements

   as at 31 December 2016 205

2. Notes to the consolidated financial statements 212

3. Statutory Auditors' report on the consolidated financial statements 279

4. Company financial statements

   as at 31 december 2016 281

5. Notes to the Company financial statements 285

6. Statutory Auditor's report

on the annual financial statements 319

4

GENERAL MEETING AND C ORPORATE GO VERNANCE

PAG E 32 1

1. Agenda and draft resolutions 322

2. Report of the Board of Directors on the draft resolutions submitted to the Combined

   General Meeting of 26 April 2017 334

3. Report by the Chairman of the Board of Directors on corporate governance

   and internal control 347

4. Statutory auditors' report, prepared in accordance with article L. 225‑235

   of the French Commercial Code on the report of the Chairman of the board of directors

   of Foncière des Régions 373

5. Statutory Auditors' Special report on

   related‑party agreements and commitments 374

6. Statutory Auditors' report

   on the capital reduction 378

7. Statutory Auditors' report on the issue of shares and/or securities giving access to the capital reserved for participants

   in a company savings plan 379

8. Statutory Auditors' report on the issue of shares and various securities with maintenance and/or

   waiver of the preferential subscription right 380

9. Parties responsible for auditing

the financial statements 382

5

INFORMATION

AND MANA GEMENT

PAG E 3 8 4

1. Presentation of the Company 386

2. General information concerning the issuer

   and its share capital 391

3. Shareholding structure 396

4. Stock market - Dividends 406

5. Executive corporate officers 409

6. Administration and management 435

7. Information about the Company

   and its interests 439

8. Information about social

   and environmental impact 441

9. Contracts and agreements 441

10. Person responsible for

the Reference Document 444

TABLE OF CONCORDANCE 447

GLOSSARY 451

REFERENCE

DOCUMENT

2 16

This Reference Document was filed with the Autorité des Marchés Financiers (AMF) on

22 March 2017 under the number D.17‑0202 in accordance with Article 212‑13 of the AMF's General Regulation. It may be used in connection with a financial transaction if it supported by a prospectus approved by the AMF. This document contains all information relating to the annual financial report.

It was prepared by the issuer and is binding upon its signatories.

1

BUSINESS‌

ACTIVITY IN 2016

1.1. PROFILE 4

1. BUSINESS ANALYSIS

   1.2.	2016 HIGHLIGHTS	8	1.5.1. 1.5.2.	France Offices Italy Offices	23 32
   1.5.3.	Hotels & Service Sector	38
   1.3.	RECORD RESULTS IN 2016:	1.5.4.	Germany Residential	45
   SUCCESS OF THE EUROPEAN	1.5.5.	France Residential	50
   INTEGRATED MODEL	10

   BY SEGMENT 23

   1.3.1. €1.5 billion in portfolio growth to €19 billion, focused on Paris,

   1.3.2.	Real-estate activity: the REIT	1.6.1.	Scope of consolidation	52
   of choice for our user partners	10	1.6.2.	Accounting standards	52
   1.3.3.	Strong growth in 2016 financial results	13	1.6.3.	Simplified income statements
   1.3.4.	2017 outlook: reinforcing the growth potential	13	1.6.4.	Group Share Simplified consolidated income statement	53 56

   Berlin and Milan 10

2. FINANCIAL INFORMATION

AND COMMENTS 52

1.4. BUSINESS ANALYSIS 14

1.6.5. Simplified consolidated balance sheet Group Share 57

1.4.1.	Recognised rental income: 4.5% growth	14	1.6.6.	Simplified consolidated balance sheet	58
1.4.2.	Lease expirations and occupancy rates	15	1.6.7.	Financial indicators of the main
1.4.3.	Breakdown of rental income - Group Share	16	activities	59

1. Cost to revenue by business 17

   €906 million Group Share	18	1.7.1.	Main debt characteristics	60
   1.4.6.	Asset acquisitions: €1.4 billion	1.7.2.	Debt by type	60
   in secured acquisitions Group Share	18	1.7.3.	Debt maturities	61
   1.4.7.	Development projects: €4.0 billion	1.7.4.	Main changes during the period	61

2. Disposals and disposal agreements:

1.7. FINANCIAL RESOURCES 60

(€3.1 billion Group Share) 19

1.7.5. Hedging profile 62

1.4.8. 1.4.9.	Portfolio List of major assets	21 22	1.7.6.	Average interest rate on the debt and sensitivity	62
1.7.7.	Reconcilation with consolidated accounts	63

REFERENCE DOCUMENT 2016 //// FONCIÈRE DES RÉGIONS 2