Patrimoine et Commerce — Earnings Release 2023

Feb 21, 2024

PRESS RELEASE

2023 ANNUAL RESULTS

Paris - February 21, 2024

At its meeting on February 20, 2024, the Patrimoine & Commerce Supervisory Board reviewed the Company's operations and approved the 2023 financial statements (1), prepared by Management.

• FFO per share growing by +5.2% at € 2.03/share
• Collection rate at 98% on rents and service charges
• Portfolio valuation of € 858m
• Dividend payment of € 1.35 per share, +3.8% vs. last year, implying a 7.7% yield on share price, as well as a 4.6% yield on NAV

Key figures

Key financials	31/12/2023 12 months	31/12/2022 12 months	Var. %
Gross Rental Income	€ 50.5m	€ 47.3m	+6.7%
Funds from operations	€ 30.7m	€ 29.3m	+4.8%
Group share of net profit	€ 29.0m	€ 47.8m	(39.3%)
Alternative Performance Measures	31/12/2023	31/12/2022	Var. %
Asset appraisal value (excluding transfer taxes) (2)	€ 858.3m	€ 841.3m	+2.0%
Capitalization rate (3)	7.3%	7.0%	n.a.
LTV ratio (4)	43.9%	44.0%	n.a.
NAV (excluding transfer taxes - €/share)	29.1 €	28.5 €	+2.2%

Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « This year again, the Company's results are solid, despite the persistence of a complex economic context marked by a general decline in the entire real estate investment sector (including commercial real estate). Less affected than other commercial real estate segments, the retail park remains a safe haven market with solid fundamentals (low vacancy rate, affordable rents). We are continuing our objective of proactive portfolio management with the sale of non-strategic assets, the strengthening of the rental mix around growing verticals (discount, catering, leisure, food), the development and valorization of our existing assets. We remain attentive to opportunities to acquire relevant retail properties. In line with our profit distribution policy, and driven by our confidence in pursuing sustainable growth, we will propose the distribution of a dividend of € 1.35 per share, up +3.8% compared to last year. »

FFO increasing by +4.8%

in millions of euros - 12 months	31/12/2023	31/12/2022	Var. %
Like-for-like	44.4	42.6	+4.2%
Acquisitions	4.4	2.8	n.a
Disposals	0.0	1.4	n.a
Properties under restructuring	1.7	0.5	n.a
Gross rental income	50.5	47.3	+6.7%

FFO increasing by +4.8%		Patrimoine & Commerce had a sustained leasing activity and signed 58 leases (of which 26 renewals). The financial occupancy rate is increasing and stands at 94.7% (5) on the portfolio. The collection rate on rents and service charges invoiced in 2023 stands at 98%.
In 2023, Patrimoine & Commerce continued to deliver a solid financial performance.
For the fiscal year ended December 31, 2023, Patrimoine & Commerce reported consolidated gross rental income of € 50.5m, against € 47.3m for the fiscal year ended December 31, 2022:
in millions of euros - 12 months	31/12/2023	31/12/2022
Like-for-like	44.4	42.6
Acquisitions	4.4	2.8
Disposals	0.0	1.4
Properties under restructuring	1.7	0.5
Gross rental income	50.5	47.3
Martinique in 2022 as well as the delivery of the restructuring works in La Ville-du-Bois in 2023 and (iii) the like-for-like increase, driven by contractual indexation (4.2% in average on the period) and the decrease in the amortization of rent free periods. Net rental income stands at 92% of gross rental income, mainly composed of unrecovered rental expenses and provisions for credit losses:
in millions of euros - 12 months Gross rental income	31/12/2023 50.5	31/12/2022 47.3
Entry fees	(0.0)	0.0
Gross rental revenue	50.5	47.4
Unrecovered rental expenses	(3.5)	(2.7)
Other building expenses Net rental income Operating expenses and other revenues remained under control at € 5.1m (vs. € 5.0m in 2022).	(0.3) 46.7	(0.6) 44.2

Restated current operational result	41.6	39.2	+6.1%
Restated net cost of debt	(10.8)	(9.5)	+13.3%
Current taxes	(0.1)	(0.4)	n.a.
Funds from operations (FFO) (6)	30.7	29.3	+4.8%
Diluted FFO per share	2.03	1.93	+5.2%

Decrease of the LTV ratio and increase of the NAV per share at € 29.1 (+2.2%)

in millions of euros - 12 months	31/12/2023	31/12/2022
Restated current operational result	41.6	39.2
Restated net cost of debt	(10.8)	(9.5)
Current taxes	(0.1)	(0.4)
Funds from operations (FFO) (6)	30.7	29.3
Diluted FFO per share	2.03	1.93
Including the fair value adjustment of the portfolio (+€ 0.2m), the share of the result of companies accounted for using the equity method (-€ 1.1m), other non-recurring revenues and charges (-€ 0.5m), and the contribution of hedging strategies on debt (-€ 1.2m), net profit amounted to € 28.2m for the fiscal year 2023 and € 29.0m in group share.
Decrease of the LTV ratio and increase of the NAV per share at € 29.1 (+2.2%)
The Group consolidated net debt of € 369.2m as of December 31, 2023, implies a Loan-to-Value ratio of 43.9%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.
in millions of euros - 12 months	31/12/2023	31/12/2022
Net Debt	369.2	360.9
(-) other lease liabilities	(0.6)	(0.6)
(-) financial instruments	1.0	2.2
Restated Net debt	369.6	362.4
Property valuation (excl. Transfer taxes)	842.8	823.9
Loan To Value ratio	43.9%
Net asset value per share amounted to € 29.12 (€ 439.2m) in 2023, an increase of +2.2% versus 2022. in millions of euros NAV, excl. Transfer taxes	31/12/2023
	439.2	44.0% 31/12/2022 431.2
NAV per share, excl. Transfer taxes (in euros) Number of shares (excl. Treasury shares)	29.12 15 085 647	28.48 15 144 241
Development and optimization of the portfolio As of December 31, 2023, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached € 858.3m, increasing by +2.0% compared to 2022. The capitalization rate of the properties in operation stands at 7.3%.
in millions of euros	Variation
Net balance as of January 1, 2023	841.3
Acquisitions	19.4
Disposals	(2.6)
Fair value impact	0.2
Net balance as of December 31, 2023	858.3
THE LOW-COST PARK SPECIALIST	RETAIL

in millions of euros	31/12/2023	31/12/2022
NAV, excl. Transfer taxes	439.2	431.2
NAV per share, excl. Transfer taxes (in euros)	29.12	28.48
Number of shares (excl. Treasury shares)	15 085 647	15 144 241

Development and optimization of the portfolio

in millions of euros	Variation
Net balance as of January 1, 2023	841.3
Acquisitions	19.4
Disposals	(2.6)
Fair value impact	0.2
Net balance as of December 31, 2023	858.3

4 Press release Over 2023, Patrimoine & Commerce continued its development through the acquisition, in April 2023, of a retail park of 7 500 sqm in Saint-Parres-aux-Tertres (Grand Est). The Company also continued its investments through the delivery of restructuring works in La Ville-du-Bois, a new building in Wittenheim as well as the delivery of two commercial units in Lexy. Those investments totalled € 19.4m in 2023.

Patrimoine & Commerce also completed the disposal of several assets in Vandoeuvre (Grand Est) and Salon-de-Provence (Provence-Alpes-Côte d'Azur), and an building plot in Lempdes (Auvergne- Rhône-Alpes), for a total consideration of € 2.6m, in line with external appraisers' valuations.

Dividend payment of € 1.35 per share

The distribution of a dividend of € 1.35 per share will be proposed to the Annual General Meeting of Patrimoine & Commerce. The proposed dividend is increasing by +3.8% compared to last year and implies a 4.6% yield on net asset value per share as of December 31, 2023, and of 7.7% on the stock price (7) .

Agenda

April 12, 2024 First-Quarter 2024 activity June 13, 2024 Annual General Meeting July 24, 2024 First-Half 2024 results October 11, 2024 Third-Quarter 2024 activity

THE LOW-COST RETAIL PARK SPECIALIST

About Patrimoine & Commerce

5 Press release --------------------------------------------------------------------------------------------------------------- Patrimoine & Commerce owns and operates a real estate portfolio, largely comprising retail property, covering a total surface area of more than 528,000 sqm. The assets are mainly located in retail parks near mid-sized towns throughout France. Patrimoine & Commerce benefits from a significant identified deal flow that will enable it to feed its growth, in terms of both assets under development and operating assets.

Notes :¹ The consolidated financial statements have been subject to audit procedures. The Statutory Auditors' report is to be issued shortly

• 2 Incl. Group share of Cherbourg and Studio Prod and assets held for sale.
• ³Based on annualized rents (or market rental value for vacant spaces) and on property valuation excl. transfer taxes
• 4 Adjusted for hedging instruments
• ⁵ Excluding strategic vacancy

⁶As of December 31, 2023, the current operational result and the net cost of debt are restated from operating expenses, other income and financial expenses of the real estate development activity (-€ 0.8m) ⁷Average 12 months as of December 31, 2023

Patrimoine & Commerce is listed on NYSE Euronext Paris. ISIN code: FR0011027135 – Mnémo code: PAT

For further information, go to : www.patrimoine-commerce.com

For information, please contact : PATRIMOINE & COMMERCE PRESS - INVESTORS RELATIONS Eric DUVAL Managing Director contact@patrimoine-commerce.com

CYLANS Tél. : +33 (0)7 88 09 17 29 patrimoine-commerce@cylans.fr

Recurring net result

Gross rental income Net rental income Operating expenses and other income	50.5 46.7	47.3	Var. %
			+6.7%
		44.2	+5.6%
	(5.1)	(5.0)	+2.2%
Adjusted EBITDA	41.6	39.2	+6.1%
Net cost of debt	(10.8)	(9.5)	+13.3%
Current taxes	(0.1)	(0.4)	n.a.
Funds from operations (FFO)	30.7	29.3	+4.8%
FFO per share	€ 2.03	€ 1.93	+5.2%
Change in fair value of properties	0.2	15.1	n.a.
Change in fair value of financial instruments	(1.2)	3.6	n.a.
Equity method investees	(1.1)	0.3	n.a.
Other income and expenses	(0.5)	(2.1)	n.a.
		46.1	(38.9%)
Net income	28.2
Minority interest Net profit, group share Consolidated Net debt in millions of euros	0.8 29.0 31/12/2023	1.7 47.8 31/12/2022
Bond loans		30.0	n.a. (39.3%) 30.0
Borrowings from financial institutions		347.7	355.2
Lease liabilities connected to finance leasing		27.2	34.6
Other lease liabilities		0.6	0.6
Accrued interest		1.8	1.8
Financial liabilities on hedging instruments		0.0	0.0
Bank overdraft		0.0	0.0
Financial liabilities - Partners' current accounts		8.3	8.5
Liabilities related to assets held for sale Total Financial Debt		0.0	3.3
		415.6	434.1
Cash and others		27.9 1.0	55.2 2.2
Financial assets on hedging instruments Financial assets - Partners' current accounts		17.5	15.8

Consolidated Net debt

in millions of euros	31/12/2023	31/12/2022
Bond loans	30.0	30.0
Borrowings from financial institutions	347.7	355.2
Lease liabilities connected to finance leasing	27.2	34.6
Other lease liabilities	0.6	0.6
Accrued interest	1.8	1.8
Financial liabilities on hedging instruments	0.0	0.0
Bank overdraft	0.0	0.0
Financial liabilities - Partners' current accounts	8.3	8.5
Liabilities related to assets held for sale	0.0	3.3
Total Financial Debt	415.6	434.1
Cash and others	27.9	55.2
Financial assets on hedging instruments	1.0	2.2
Financial assets - Partners' current accounts	17.5	15.8
Consolidated Net Debt	369.2	360.9

Assets
in millions of euros	31/12/2023	31/12/2022
Non current assets
Investment properties	840.6
Tangible and intangible assets	0.6
Investment in equity-accounted companies	5.6
Non-current financial assets	1.5
Non-current deferred tax assets	0.4
Total - Non current assets	848.8
Current assets
Current financial assets	0.6
Trade and other receivables	22.3
Other receivables	4.7
Cash and cash equivalents	27.9
Total - Current assets	55.6
Assets held for sale	2.2
Total assets	906.5
Equity and Liabilities
in millions of euros	31/12/2023	31/12/2022
Equity attributable to owners of the parent
Share capital	151.0
Additional paid-in capital	34.5
Legal reserves	4.0
Consolidated reserves	220.7
Consolidated earnings	29.0
Total - Equity attributable to owners of the parent	439.2
Equity attributable to non-controlling interests	11.5
Total equity	450.7
Non current liabilities
Non current financial liabilities	342.2
Deposits	8.1
Deferred tax liabilities	-
Other long-term liabilities	2.4
Total - Non current liabilities	352.7
Current liabilities
Current financial liabilities	73.4
Payroll and tax liabilities Trade payables	5.9 7.3
Other liabilities	16.5
Total - Current liabilities Liabilities related to assets held for sale	103.1 0.0
	906.5
Total Equity and Liabilities

in millions of euros - 12 months	12 mois	12 mois
Gross rental revenues	31/12/23 50.5	31/12/22 47.4
Service charge income	11.1	10.3
Service charge expenses	(14.6)	(12.9)
Other building expenses	(0.3)	(0.6)
Net rental income	46.7	44.2
External expenses and other taxes	(4.9)	(4.8)
Payroll expenses	(0.8)	(0.8)
Amortization and provisions	(0.1)	(0.1)
Other current operating income and expenses	(0.1)
Total - Operating income and expenses	(5.9)	(5.7)
Current operating income	40.8	38.5
Other operating income and expenses	0.1	(0.7)
Change in the fair value of investment properties	2.2	14.9
Share in earnings of equity-accounted companies	(3.1)
Operating income	40.0	53.1
Financial income	0.8
Financial expenses	(11.6)	(9.9)
Cost of net debt	(10.8)	(9.5)
Other financial income and expenses	(1.2)
Income tax benefit (expense)	0.1	(0.3)
Net income	28.2	46.1
Minority interests	(0.8)	(1.7)
Net profit, group share	29.0	47.8
Net income, per share	1.91	3.17
Diluted net income, per share	1.91	3.17
Net income	28.2	46.1
Items that will be reclassified subsequently to profit or loss	-
Items that will not be reclassified subsequently to profit or loss	-
Total comprehensive income	28.2	46.1
of which : - Group share	29.0	47.8
- Non controlling interest	(0.8)	(1.7)
Average number of shares outstanding	15 170 184	15 057 573

in millions of euros	31/12/2023	31/12/2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income from consolidated companies	28.2
Restatements :
Share in earnings of equity-accounted companies	3.1
Dividends received from equity-accounted companies	0.3
Depreciation, amortization and provisions	0.1
Change in value of investment properties	(2.2)
Change in value of other assets and liabilities	1.2
Capital gains and losses on asset disposals	(0.2)
Net cost of debt	10.8
Income tax benefit (including deferred tax)	(0.1)
Gross cash flow from consolidated companies	41.0
Income tax paid	(0.1)
Change in operating working capital	0.1
Net cash flow from operating activities	41.1
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of investment properties and other fixed assets	(19.2)
Proceeds from sales of investment properties	3.3
Movements in loans and other financial assets	0.0
Movements in current accounts of equity-accounted companies	(1.8)
Impact of changes in scope	0.0
Net cash flow from investing activities	(17.7)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to owners of the parent	(20.0)
Dividends paid to non-controlling interests	-
Acquisitions / disposals of treasury shares	(1.0)
New loans, borrowings and hedging instruments	16.1
Repayment of loans, borrowings, hedging instruments and lease liabilities	(33.5)
Repayment of loans, borrowings and hedging instruments on assets held for sale	(0.8)
Repayment linked to rental liabilities	(0.1)
Interest paid	(10.5)
Transactions with non-controlling interests	-
Changes in partner's current accounts	(0.9)
Net cash flow from financing activities	(50.7)
Change In Cash and Cash Equivalents	(27.3)
Cash and cash equivalents at beginning of period	55.2
Cash and cash equivalents at end of period	27.9
Change In Cash and Cash Equivalents	(27.3)