Paris Realty Fund

Earnings Release • Jul 31, 2012

First half-year 2012 revenue: € 12.7 million

• 2.3% decline in rental income on constant group structure; rental income down 12.6% due to selective disposals in 2011 and 2012
• Continued improvement in the rental situation
• SCPI fundraising maintained at a high level: € 28 million

SIIC PAREF, a property company with the dual business of property investment and management on behalf of third parties, announces revenue of € 12.7 million for the first 6 months of the 2012 financial year, a decline of 11.3% compared to the first half of 2011.

Revenue (€ millions)	HY1 2012	HY1 2011	% change	FY 2011
Rent and costs recovered	9.4	10.7	(12.58%)	21.2
residential	1.5	1.6	(4.72%)	3.2
commercial	7.9	9.1	(13.92%)	18.0
Management fees	3.3	3.6	(7.38%)	9.2
Total recurring operations	12.7	14.3	(11.27%)	30.4
Consolidated IFRS revenue	12.7	14.3	(11.27%)	30.4

Property investment: improvement in rental situation

• Rent (and costs recovered) for the first half of 2012 represented € 9.4 million, which was a decrease of 2.3% on a like-for-like basis (compared to a decline of 12.6% as reported). Movements were due to:
• Sales of buildings in 2011 and 2012, which had a negative impact of € 1 million (Roule, Rivoli, Les Ulis and Parmentier buildings sold in 2011 and Berger building sold in the 1st half of 2012), and
• Rental renegotiations, which had a € 0.3 million negative impact (particularly affecting the Vaux le Pénil and Croissy Beaubourg buildings), accompanied with extended lease terms.
• The occupancy rate was 88% at 30 June, stable compared to 31 March. After restatement for properties for which an undertaking to sell has been signed (Fontenay, Gentilly and Rueil Malmaison), this rate was 93%.
• The property portfolio and its tenant structure continued to improve: 15 new commercial leases were signed by SIIC PAREF and SCPI Interpierre during the 1st half of the year. In that respect, the Bondy and Lognes Campanules buildings now post an occupancy rate of 100%. A new unit has been leased in Cauffry. Lastly, in April, a new lease was renegotiated with Original VD in Croissy-Beaubourg in exchange for a firm commitment of 12 years.

The situation with La Houssaye property, for which an undertaking to sell had previously been signed, has changed. A new 6-year firm lease has been signed with the tenant with effect from 1 September. This new lease relates to the entire surface area of this property (up to this point, the tenant only rented under a tenancyat-will contract); a purchase option which may be exercised in 2014 has also been granted to the lessee.

Management on behalf of third parties: SCPI fundraising maintained at a high level

Fundraising levels have remained high. During the first 6 months of the 2012 financial year, SCPIs managed by PAREF GESTION (Pierre 48, Novapierre and Interpierre) collected nearly € 28 million, compared to the record € 35 million collected in the 1st half of 2011.

SCPI subscription fees (excluding Interpierre which is consolidated) represented € 1.9 million (compared to € 2.5 million for the same period of 2011). Recurring SCPI management fees grew in excess of 28% to € 1.0 million, due to the growth in managed assets resulting from significant fundraising in 2011 and at the end of 2010.

OPCI management fees (Vivapierre and Naos, excluding Polypierre which is consolidated) totalled € 0.4 million (compared to € 0.3 million at 30 June 2011).

Furthermore, Naos' shareholders have asked to be transferred to a different management company. Pending approval of this new company by the custodian, Paref Gestion continues to manage this OPCI on a provisional basis. Recurring management fees from Naos were € 0.1 million in 2011.

New developments

Management on behalf of third parties

At its last Annual General Meeting, SCPI Capiforce Pierre selected Paref Gestion as its management company to replace its former manager. This new commission will take effect as of 1 January 2013. Paref Gestion thus expands its range of services and intends to develop Capiforce Pierre, which has a market capitalisation of € 50 million, in the best interest of its partners. In the 2011 financial year, SCPI Capiforce Pierre paid recurring management fees of € 0.3 million to its management company.

Investment

The capital increase with retention of the pre-emption right completed on 22 June enabled Paref to raise € 7.5 million in equity.

The funds raised will allow the Paref Group to participate in calls for tenders for the creation and management of OPCIs, both as a management company and as an investor, thus strengthening its competitive advantages, as exemplified by the transaction carried out by Vivapierre.

By generating synergies between its 2 businesses, the Paref Group therefore intends to significantly increase the value of both assets under management and its own investment, while maintaining total consolidated net debt below 50%.

Shareholders' agenda:

Publication of half-year results on 12 September before start of trading, followed by a presentation meeting at 11.30am.

About PAREF

PAREF Group operates in two major complementary areas:

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

At 30 June 2012, PAREF Group managed more than € 745 million in property assets, € 612 million of which is 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 Olivier DELISLE Member of the Management Board

Tel: +33 1 40 29 86 86

Agnès VILLERET Analyst/investor relations

Lucie LARGUIER Financial press relations

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

For further information, please visit www.paref.com