GLOSSARY ICC (Indice du coût de la construction) – Mid-sized unit French Cost of Construction index A retail outlet whose sales area covers more than 750 sq.m. This is one of two reference indices used to adjust the rents on retail properties. It is published quarterly by INSEE and calculated on the NAV (Net Asset Value) basis of data emerging from the quarterly survey on the trend in the cost price of new housing (PRLN). Using a representative sample of NAV is an indicator that measures the break-up value of a real estate building permits, this survey provides information on markets trends, company. Schematically, it represents the difference between the value the characteristics of construction, as well as factors that can be of the Company’s assets (as estimated by independent appraisers) used to derive land expenses (price of land, any demolitions, various and the total sum of its debts or liabilities. More information on the taxes, etc.). It is also currently the reference index used to make methodology and on the calculation of this indicator is available in adjustments to office rents. chapter 2 “Business for the year” of the present registration document. ILC (Indice des loyers commerciaux) – Net current cash-flow French Commercial Rent Index This indicator corresponds to the amounts generated by the routine The ILC is published monthly by INSEE and is composed of the ICC operations and business of the Company, after taking interest and tax (25%), the ICAV (retail trade sales index, expressed in value, for 25%), expense into account. More information on the methodology and on and the IPC (consumer price index, for 50%). The ICAV, published the calculation of this indicator is available in chapter 2 “Business for monthly by INSEE, is calculated on the basis of a sample of sales the year” of the present registration document. revenue reports filed by 31,000 businesses. The IPC, published monthly in the Official Gazette, is an indicator that is commonly Net rent used to measure inflation. The use of the ILC for retail rental price adjustments is possible since the August 4, 2008 law on economic Gross rent less fees, non-recovered rental charges (in particular due modernization went into effect and the application decree dated to vacancies), expenses chargeable to the owner and, if applicable, November 6, 2008. expenses related to the land on which the rental unit sits. ISO 14001 Occupancy cost ratio International environmental certification that acknowledges the The occupancy cost ratio is the ratio of rent and tenant charges (taxes implementation of an Environmental Management System (EMS). excluded) to revenues (taxes excluded). Klépierre University Renewable energies The Group’s corporate university, whose objectives are to share Energies exploited by humans in such a way that reserves are not knowhow inside the Company and promote the emergence of a exhausted. In other words, they form faster than they can be used. common culture. Late payment Rentable floor area Late payment (rent, utilities and taxes, including VAT sales tax) Gross leasable area owned by Klépierre and on which Klépierre corresponds to any payment that has not been received on the due collects rents. date, and integrated into reporting as of the first day the past due payment is observed. Considering that most unpaid amounts in fact Re-tenanting correspond to late payments, Klépierre discloses a late payment rate on a 12-month rolling basis. Leasing action aiming at proactively replacing existing tenants by more appealing and dynamic ones thus enhancing the whole Let’s Play® merchandizing mix of the center. Name given to the Group’s marketing strategy aiming at positioning Reversion its shopping centers as fun places. Additional Minimum Guaranteed Rent (MGR) obtained as a result of LTV (Loan-to-Value) re-letting or when a lease is renewed with the same tenant (excluding additional MGR obtained when a property is leased for the first time). Consolidated net debt divided by the total valuation of the Group’s Reversion can be negative if the new rent is inferior to the previous property portfolio as determined by independent appraisers (total one. share, including duties). Sale and purchase promissory agreement MGR A contractual instrument signed by and between a seller and a buyer, The minimum guaranteed rent payable under the terms of the lease. according to which both parties undertake to proceed to the sale of Also referred to as base rent. an asset at a given price and before a defined date, indicated in the same instrument. KLÉPIERRE 2017 REGISTRATION DOCUMENT 305