Paris Realty Fund

Earnings Release • Jul 13, 2011

First half-year 2011 revenue: € 14.3 million

• Growth in recurring operations (excluding property dealings): 12.8%
• 2.9% decline in rental income on a constant group structure basis
• Strong growth in management fees: up 130%

Revenues (€ thousands)	HY1 2011	HY1 2010	% Change	FY 2010
Rent and costs recovered	10,707	11,126	(3.8%)	22,969
residential	1,563	1,538	1.6%	3,159
commercial	9,144	9,588	(4.6%)	19,810
Management fees	3,608	1,566	130.4%	4,140
Total recurring activities	14,315	12,692	12.8%	27,109
Property dealings	0	900	ns	946
Consolidated IFRS revenue	14,315	13,592	5.3%	28,055

Moderate decline in rental income

• Rent (and costs recovered) for the first half of 2011 represented € 10.71 million, which was a decrease of 2.9% on a like-for-like basis (compared to 3.8% as reported). Movements related to changes in group structure accounted for a decline of € 94 thousand and were due to:
• an increase in rent (and costs recovered) of € 443 thousand, related to the change in the consolidation scope resulting from the contribution to SCPI Interpierre (implemented on 1 July 2010), and
• the sale of buildings, as confirmed in the press release dated 5 May 2011 (building of the Parmentier private hospital and Rivoli and Roule buildings), which resulted in a reduction of € 537 thousand in rent (and costs recovered).

After restatement for these two items, the decline in rent (and costs recovered) was € 324 thousand, primarily due to the review of the rent of the Pantin building (with effect from 1 June 2010).

The occupancy rate was 89% at 30 June 2011, unchanged compared to 31 March but down one percentage point compared to the end of 2010; this change was primarily due to the effect of arbitrations and tenants vacating smaller premises in Clichy and Vitry.

Management on behalf of third parties: increased momentum for the trend initiated in 2010

SCPI

During the first six months of the 2011 financial year, the various SCPIs management by PAREF GESTION collected a total of almost € 35 million (note that excluding the contribution to SCPI Interpierre, for the full 2010 financial year a total of € 31.3 million was collected). The subscription fees of SCPI Novapierre (stores) and Pierre 48 (residential property in Paris and the Paris region) represented € 1.66 million and € 0.45 million, respectively. Furthermore, management fees on current subscriptions grew by 8.3% on a like-for-like basis, owing to strong collections since the second half of 2010.

OPCIs

The management of OPCIs (Vivapierre, Naos and Polypierre) also generated recurring fees of € 274 thousand, an increase of 14% compared to the 1st half of 2010.

The environment is favourable for the launch of new investment vehicles, in particular in making use of the SIIC regime.

New development: Acquisition of Watford

Following the announcement made in its quarterly report dated 5 May 2011, on 7 July 2011 PAREF finalised the full acquisition of Watford Eurl from its own resources. The purpose of this transaction is to own a building site located in Nanterre (92), which benefits from an 11,000 m² planning permission, free and clear of any appeal. This acquisition enables PAREF to give a new impetus to its investment policy, with the planned construction of a HQE/BBC (High Environmental Quality) office building.

Shareholders' agenda:

Publication of half year results 9 September 2011 before start of trading and presentation meeting at 11.30am.

About Paref

PAREF Group operates in two major complementary areas:

• Commercial and residential investments: PAREF owns various commercial buildings in and out of the Paris region. The Group also owns the temporary usufruct of residential properties in Paris.
• Management on behalf of third parties: PAREF Gestion, an AMF-certified subsidiary of PAREF manages 3 SCPIs and 3 OPCIs.

At 30 June 2011, PAREF Group managed a property portfolio of € 677 million, of which € 525 million managed on behalf of third parties.

PAREF shares have been listed on Eurolist Compartment C of the Euronext Paris Stock Exchange since December 2005 ISIN code: FR00110263202 - Ticker: PAR

Alain PERROLLAZ Chairman of the Management Board

Pascal KOSKAS Member of the Management Board

Tel: +33 (0)1 40 29 86 86

Agnès VILLERET Analyst – Investor Relations

Lucie LARGUIER Financial Press Relations

Tel.: +33 (0)1 53 32 78 89 / 95 agnes.villeret@citigate.fr / lucie.larguier@citigate.fr

For further information, please visit the PAREF Group website: www.paref.com