Covivio Hotels — Earnings Release 2011

Feb 9, 2012

9 February 2012

deleverage due to sales : LTV down to 48,4% in rental income and values

	31 December 2011	Change (%)
Ä
Ä Rental income in million	203,6	203,5	+3,4% like-for-like
EPRA net recurring result in million	Ä 120,8	Ä 107,2	+12.6%
EPRA net recurring result per share	2,14	2,10	+1.9%*
Net income, group share	141,3	260,7	ns

* increase in the average number of shares between 2010 and 2011 as a result of the capital increase in the second half of 2010.

	31 December 2011	Change
Ä Portfolio valuation	2 949	3 124	+3,8% like-for-like
EPRA NAV ( millions)	1 523,2	1 409,4	+8,1%
EPRA NAV per share	27,0	25,0	+8,1%
LTV	48,4%	54,3%	-590 bps

asset management FonciËre

des Murs, subsidiary of FonciËre des RÈgions, is showing strong rental performances and appraisal values despite the economic context, demonstrating the relevance of its position. -

Rental income up 3.4% on ^a like-for-like basis The

increase in rental income on ^a like-for-like basis is due to the following items: -

• Good performances of our tenants : variable rents (+4,3% on ^a like-for-like basis on Accor portfolio), on- going adaptation of retail brands to their markets -2.25% indexation of fixed rents in health and retailpremises sectors
• Occupancy rate 100%

^{Ä 422} million in sales and sales commitments In

2011, FonciËre des Murs decided to set up ^a disposals plan with two goals, asset turnover and deleverage: by selling ³⁰ assets for ^a net sale value of Ä359 million, by signing memorandums of understanding on the sales of ¹² assets in the total amount of ^{Ä 63} million, generating

an overall margin of 3.7% over the appraisal values at ³¹ December 2010. Sales

and sale agreements of assets were completed on behalf of institutional investors, private investors as well asoperators.

of FonciËre des Murs hotel partners In

2011, FonciËre des Murs finalised the acquisition of ¹⁸ B&B hotels in Germany, in accordance with the memorandum of understanding signed in July 2010. These hotels have ^a total value of Ä67 million. The rents are fixedand indexed. During

the first half of 2011, FonciËre des Murs also completed the acquisition of ^a portfolio of ³² Campanile hotels in France from the Louvre HÙtels Group, at lease payments varying according to revenue. The transaction was for ^a total amount of Ä170.4 million (including works), 80.1% of it carried by Predica and Pacificaand 19.9% by FonciËre des Murs. These

transactions show an average yield of 7%.

(-14%) allowing ^a decrease in LTV to 48,4%

financial structure of FonciËre des Murs was significantly strengthened, reflecting the impact of the increases in value and the disposals completed. After incorporating sales commitments, net debt represents 48.4% of the valueof assets, compared to 54.3% at ³¹ December 2010. The

average debt rate also declined to 4.39%, compared to 4.43% at ³¹ December 2010. ICRwas 2.58 at ³¹ December 2011, compared to 2.31 at ³¹ December 2010.

results growth -

Net EPRA recurring income of Ä120.8 million, up 12.6% EPRA

recurring net income was Ä120.8 million, compared to Ä107.2 million at ³¹ December 2010, an increase of 12.6%. Based on the average number of shares over the year, EPRA recurring net income per share was Ä2.14at ³¹ december 2011, compared to Ä2.10 at ³¹ December 2010, an increase of 1.9%.

NAV of ^{Ä 1 523} million, up 8.1%: At

³¹ December 2011, FonciËre des Murs wholly owned assets were valued at Ä2 ⁹⁴⁹ million excluding transfer duties, compared to ^{Ä 3 124} million at ³¹ December 2010. This decrease is due to the impact of the sales plan. On ^a like-for-like basis, the portfolio was up +3.8% compared to ³¹ December 2010. These assets show ^a yield of 6.3%excluding transfer duties.

NAV was Ä1 523.2 million or Ä27/share, compared to Ä1,409.4 million or Ä25.0/share at ³¹ December 2010,an increase of 8.1%. EPRA

NNNAV was Ä1,278 million or Ä22.6/share, compared to Ä1,221.5 million or Ä21.6/share at ³¹ December 2010, an increase of 4.6%. -

Dividend up 3.4%, to 1,50 Ä/action For

fiscal year 2011, ^a proposal will be made to the General Shareholdersí Meeting to pay ^a dividend of ^Ä 1.50/share, i.e., ^a total dividend of ^Ä 84.6 million, up 3.4% over the ²⁰¹⁰ dividend of ^Ä 81.8 million, or ^Ä 1.45/share. Thetotal proposed dividend represents 70% of net recurring result.

²⁰¹² FonciËre

des Murs aims to continue improving its financial structure and to profit from growth opportunities in the businesspremises sector.

FonciËre des Murs FonciËre

des Murs SCA, ^a subsidiary of FonciËre des RÈgions, is specialised in business premises, especially in the hotel, healthcare and retail premises sectors. At ³¹ December 2011, the companyís assets were valued at Ä2.9 billion. The average length of leases was ⁸ years and the occupancy rate was 100% with top-tier tenants. Partner of leading companies of the business premises sector, FonciËre des Murs is headed by Dominique Ozanne, General Manager

and Member of the Board of Directors of FonciËre des RÈgions.

FonciËre des Murs CÈcile

Boyer ^ñ General Secretary Tel.: ^{01 58 97 54 47} cecile.boyer@fdr.fr

this press release at www.foncieredesmurs.fr.