BUSINESS FOR THE YEAR 2Business activity by region 2.2.7 Germany (3.9% of net rental income) 3 NRI & EPRA VACANCY RATE IN GERMANY Current-porfolio NRI Like-for-like portfolio NRI EPRA vacancy rate In €m 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 GERMANY 42.8 42.0 2.1% 42.1 42.0 0.1% 5.9% 6.4% The German economy remained robust in 2017, boosted by strong Like-for-like net rental income was flat in 2017 (+0.1%), with no domestic demand, economic recovery in the rest of the Eurozone and contribution from indexation. Reversion on new lettings and renewals dynamic international trade. GDP increased by 2.5% over the year. remained negative (-4.6%) as the Group continued to focus on Unemployment continued to shrink (3.7% in 2017 compared to 4.2% upgrading the tenant mix by introducing international retailers and in 2016). Economic sentiments remained very positive, pointing to a aligning rents with market conditions. Thanks to this, EPRA vacancy sustained expansion in the coming quarters. was further reduced from 6.4% in 2016 to 5.9% by the end of 2017. Retailer sales recorded 1.9% growth, led mainly by improved spending In 2017, 43 contracts were signed, among which 30 were renewals in the household equipment (+3.8%) and fashion (+1.0%) segments. and re-leasings. International retailers were introduced to the Centrum Galerie (Dresden) and Forum Duisburg (Duisburg) registered German portfolio: the popular Danish retail chain, Søstrene Grene, solid performances, especially in the last quarter, largely benefiting and L’Occitane signed new leasing contracts at Boulevard Berlin from Zara store openings in September and November, respectively. and Zara opened a 3,300-sq.m. store at Centrum Galerie (Dresden). Food & beverage sales rose by 5.1%, house equipment by 3.8%, and At Forum Duisburg, the renewals campaign went smoothly following culture & leisure and fashion advanced 1.3% and 1.0%, respectively. the successful opening of Zara and Only in November, new deals were also reached with JD Sports and Cosmo. At Arneken Galerie (Hildesheim), TK MAXX will open a 2,000-sq.m. store during the third quarter of 2018, re-anchoring the mall. 2.2.8 Other retail properties (2.4% of net rental income) 3 NRI & EPRA VACANCY RATE OF OTHER RETAIL PROPERTIES Current-porfolio NRI Like-for-like portfolio NRI EPRA vacancy rate In €m 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 Change 12/31/2017 12/31/2016 OTHER RETAIL PROPERTIES 27.1 29.3 -7.5% 26.0 25.9 0.2% 5.2% 2.6% This segment refers to standalone retail units located in France and On a current portfolio basis, the decrease in net rental income is mostly in the vicinity of large regional retail destinations. attributable to the disposals completed over the past 18 months (please refer to the “Investments, developments and disposals” section in this document). 52 KLÉPIERRE 2017 REGISTRATION DOCUMENT