BUSINESS FOR THE YEAR Portfolio valuation 2 3 VALUATION OF THE PROPERTY PORTFOLIO (ON A GROUP-SHARE BASIS, EXCLUDING TRANSFER TAXES) In % of total Change over 6 months Change over 12 months In €m 12/31/2017 portfolio 06/30/2017 Current LfL* 12/31/2016 Current LfL* France 7,073 34.9% 6,954 1.7% 1.0% 6,880 2.8% 1.9% Belgium 432 2.1% 403 7.2% 7.4% 385 12.1% 11.2% France-Belgium 7,504 37.0% 7,356 2.0% 1.3% 7,265 3.3% 2.4% Italy 3,900 19.3% 3,806 2.5% 2.7% 3,665 6.4% 6.9% Norway 819 4.0% 819 -0.1% 2.2% 895 -8.5% 4.5% Sweden 726 3.6% 725 0.2% 3.4% 738 -1.6% 4.8% Denmark 638 3.2% 623 2.4% 2.4% 616 3.7% 3.6% Scandinavia 2,183 10.8% 2,168 0.7% 2.7% 2,249 -2.9% 4.3% Spain 1,870 9.2% 1,736 7.7% 4.0% 1,444 29.4% 7.8% Portugal 389 1.9% 366 6.2% 5.4% 346 12.3% 11.4% Iberia 2,258 11.1% 2,102 7.4% 4.3% 1,791 26.1% 8.5% Poland 403 2.0% 416 -2.9% -3.1% 423 -4.8% -5.2% Hungary 248 1.2% 243 2.2% 5.6% 227 9.4% 12.9% Czech Republic 622 3.1% 559 11.4% 6.2% 509 22.3% 16.6% Turkey 417 2.1% 490 -14.9% -2.3% 540 -22.8% -5.5% Others 25 0.1% 33 -24.4% -13.0% 33 -23.3% -14.2% CEE and Turkey 1,715 8.5% 1,740 -1.4% 1.2% 1,732 -0.9% 3.8% Netherlands 1,330 6.6% 1,280 3.9% 2.9% 1,234 7.8% 3.2% Germany 1,012 5.0% 1,009 0.3% -1.5% 1,021 -0.8% -5.1% Total shopping centers 19,904 98.2% 19,461 2.3% 2.0% 18,956 5.0% 3.9% Total other retail properties 355 1.8% 362 -1.8% -1.5% 399 -10.9% -2.5% TOTAL PORTFOLIO 20,259 100.0% 19,823 2.2% 2.0% 19,354 4.7% 3.8% * Like-for-like change. For Scandinavia and Turkey, change is indicated on a constant forex basis. Central European assets are valued in euros. 3 VALUATION RECONCILIATION WITH THE BALANCE SHEET 3 12-MONTH SHOPPING CENTER PORTFOLIO FIGURE (ON A TOTAL-SHARE BASIS) VALUATION BRIDGE (ON A GROUP-SHARE BASIS, EXCLUDING TRANSFER TAXES) In €m In €m Investment property at fair value 21,494 (a) 123 Shopping center portfolio at 12/31/2016 18,956 + Investment property at cost + Fair value of property held for sale 296 Disposals -113 + Leasehold & lease incentives 36 Acquisitions/developments 312 + Transfer taxes optimization 433 Like for like growth 376 + Partners’ share in assets consolidated under the Forex -70 equity method (incl. receivables) 1,389 Shopping center portfolio at 06/30/2017 19,461 TOTAL PORTFOLIO 23,770 Disposals -47 (a) Including IPUC (Investment property under construction). Acquisitions/developments 155 Like-for-like growth 391 2.6.2.1.1 Shopping center portfolio valuation Forex -56 Excluding transfer taxes, the value of the shopping center portfolio SHOPPING CENTER PORTFOLIO AT 12/31/2017 19,904 was €23,415 million on a Total-Share basis (€19,904 million, on a Group-Share basis) on December 31, 2017, an increase of €997 million As of December 31, 2017, the average EPRA NIY rate(2) of the portfolio(3) compared to December 31, 2016 (+€948 million on a Group-Share stood at 4.8% (including transfer taxes), down by 10 basis points over basis). 12 months. (1) This change is mostly attributable to the like-for-like increase in the portfolio valuation for 4.0% (+3.9% in Group share), with the largest contributors to growth on a regional basis being Iberia (+8.5%), Italy (+6.8%), and Scandinavia (+4.3%). A 10-bp change in the average EPRA net initial yield would result in a 386-million euros change in the Group-Share portfolio valuation. (1) Excluding foreign exchange impacts, assets disposed of during the period (mainly consisting of five retail galleries in Spain and stakes in four Scandinavian shopping centers), investment properties under construction (including Prado), acquisitions (Nueva Condomina, Blagnac additional spaces), and works expensed during the period as well as other capitalized costs (financial interests, fees, eviction indemnities). Regarding investments in assets consolidated under the equity method, effects other than those related to property value changes are excluded. (2) The EPRA Net Initial Yield is calculated as the annualized rental income based on the passing cash rents, less non-recoverable property operating expenses, divided by the market value of the property (including transfer taxes). (3) Group share for the shopping center portfolio appraised (i.e., excluding retail parks and cinemas). KLÉPIERRE 2017 REGISTRATION DOCUMENT 61