Vitura — Earnings Release 2014

Feb 13, 2015

C e g e r e a l – A n n u a l R e s u l t s

2014: Strong growth in operating performance (+24%)

Solid operating performance

In 2014, EPRA earnings rose by 24% to €23.7 million, up from €19.1 million in 2013. This solid performance is mainly driven by a 12.9% growth in net rental income and an increase in the occupancy rate to 90%, leading to a fall in finance costs.

Creation of the first Garden Tower in La Défense

With its unique Garden Tower project in the heart of La Défense, Cegereal is reinventing the relationship between green spaces and office buildings by offering Europlaza users, as from spring 2015, an exceptional outdoor space and fully remodelled ground-floor common areas. Europlaza will give tenants and their visitors the opportunity to enjoy a more than 3,000-sq.m. private garden, as well as two internal gardens, all designed by architect Juan Trindade.

The interior creations, to be located in the building's entrance hall, are in the final phases of their development, while the outdoor space remodeling is ongoing.

Successful completion of the Go Green program, start of Upgreen Your Business

Cegereal completed its Go Green project, launched in 2012, thus becoming France's first fully "green" REIT with a portfolio that has been entirely certified for its environmental qualities.

Cegereal's environmentally responsible approach recently earned its Green Star status in the Global Real Estate Sustainability Benchmark (GRESB). The GRESB recognized Cegereal in its first appearance in the ranking as a benchmark property company in the areas of responsible management and sustainable development.

In January 2015, Cegereal demonstrated its continued commitment to CSR with the launch of the "Upgreen Your Business" collaborative program.

Increase in net rental income (up 12.9%)

In 2014, rental income calculated in accordance with IFRS totaled €44.7 million, up 3.3% compared with 2013. Expense recoveries and penalties received from tenants rose 25% on 2013 at €13.2 million. Building-related costs slightly decreased and amounted to €16.3 million. Overall, the net rental income increased from €36.8.million to €41.6 million.

The portfolio's overall occupancy rate was 90% at December 31, 2014, compared with 89% at end-2013.

Arcs de Seine: 97% occupancy rate

In 2014, Cegereal kept up its marketing strategy for Arcs de Seine, the standout property in Paris's Telecommunication Valley. Located on the banks of the Seine on Quai du Point du Jour in Boulogne-Billancourt, Arcs de Seine was entirely renovated in 2012.

In that year, 22,220 sq.m. were leased, followed by a further 7,800 sq.m. in 2013. In 2014:

• a new lease on 700 sq.m. was signed with a new tenant, BBC, which came into effect during the second quarter;
• Sagem leased an additional 700 sq.m. of space in April, bringing its leased surface area to 5,600 sq.m.;
• in September, Huawei leased an additional 1,400 sq.m. of space, increasing to 5,200 sq.m. the total surface area occupied by this fast-growing tenant.

In January 2015, Cegereal signed two new six-year leases on 4,200 sq.m. of office space. Amgen will occupy 2,800 sq.m. of space and Exclusive Networks 1,400 sq.m.

These new signings raise the property's occupancy rate to 97% at December 31, 2014 (compared with 81% at December 31, 2013), leaving just 1,400 sq.m. of the building's 45,000 sq.m. on the market.

Rives de Bercy: HQE and BREEAM In-Use Very Good certification

The new nine-year lease signed as part of the Go Green program in January 2013 with Crédit Foncier, the building's long-standing sole tenant, includes stringent mutual undertakings by the owner and the tenant to meet environmental targets.

In December 2014, Rives de Bercy (32,000 sq.m.) was officially granted HQE Exploitation environmental performance certification by Certivéa, an independent organization.

On January 20, 2015, the building also received the BREEAM In-Use International Very Good certification.

Europlaza: a buoyant rental activity

During the period, three tenants renewed their leases, with two of them leasing additional surface area, and two new tenants moved in:

• Galderma's lease on 4,000 sq.m. was renewed with effect from January 1, 2014 and a further 800 sq.m. were leased during the second quarter.
• The lease with Crédit Agricole/BforBank on 1,700 sq.m. was also renewed, with a further 1,300 sq.m. leased in the second quarter.
• The lease with NTT Europe on almost 1,300 sq.m. was renewed in May.
• 900 sq.m. were leased to Gas Natural, effective from May, and 600 sq.m. to Heinz France from July.

The Europlaza occupancy rate stood at 77% at December 31, 2014 versus 89% at end-2013.

Following the departure of Cap Gemini from the building's lower floors, Europlaza currently has 10,800 sq.m. of office space available for lease. This space overlooks the new gardens, which will be completed in spring 2015.

A healthy financial position

Cegereal refinanced all of its debt in 2012 and does not have any repayment obligations until August 2017. Its loan to value is stable at 46.5%.

This debt was refinanced at the competitive rate of 3.40%, reducing finance costs by around 20%. The rate is reduced to 3.15% as soon as the occupancy rate exceeds 90%.

Amount to be distributed in dividends in 2015: €1.65 per share

At the Annual Shareholders' Meeting on April 15, 2015, Cegereal intends to recommend paying a total of €1.65 in dividends per share in 2015. It will be paid on July 16, 2015, subject to shareholders' approval.

Key indicators

in millions of euros	2014	2013	Change
IFRS rental income	44.7	43.3	+3.3%
IFRS turnover	57.9	53.8	+7.7%
IFRS net rental income	41.6	36.8	+12.9%
IFRS net income	42.4	1.9	N/A
EPRA earnings	23.7	19.1	+24.1%
EPRA NNNAV per share excluding transfer costs (in €)	34.8	34.1	+2.1%
NAV per share including transfer costs (in €)	39.3	38.0	+3.4%
Portfolio value (excluding transfer costs)	871	849	+2.6%
Dividend (in € per share)	1.65	1.50	+10.0%

The portfolio was valued by DTZ Eurexi at €871 million excluding transfer costs (€928 million including transfer costs) as of December 31, 2014 versus €849 million excluding transfer costs as of December 31, 2013. The three properties' appraisal values, excluding transfer costs, are as follows:

• Arcs de Seine: €347 millions
• Europlaza: €333 millions
• Rives de Bercy: €191 millions

EPRA NNNAV excluding transfer costs stood at €34.8 per share at December 31, 2014, compared with €34.1 per share at the 2013 year-end. The decline over the period reflected dividend distributions (negative impact of €1.5 per share), consolidated earnings growth (positive impact of €1.6 per share), changes in the properties' appraisal values (positive impact of €1.6 per share), rent-free periods granted to new tenants (negative impact of €0.7 per share) and changes in the fair value of bank debt (negative impact of €0.4 per share).

Raphaël Tréguier, Cegereal's Chief Executive Officer, said:

"In 2014, we outperformed our targets with more than 20% growth in recurring net income per share. In addition to this achievement, we are delighted to report on the success of the Go Green program and the launch of Europlaza's transformation into a Garden Tower, both of which are central to our development. 2015 is set to be a promising year for Cegereal, as we look to actively engage in arbitrage opportunities and acquisition operations."

Cegereal's Board of Directors met on February 12, 2015 to approve the audited consolidated financial statements for the year ended December 31, 2014.

The annual results presentation and video can be viewed on the Company's website: www.cegereal.com.

Investor Calendar

• April 15, 2015 Annual Shareholders' Meeting
• April 16, 2015 First-quarter 2015 revenue
• July 16, 2015 Payment of the 2014 dividend
• July 24, 2015 First-half 2015 results
• October 22, 2015 Third-quarter 2015 revenue

About Cegereal (NYSE Euronext Paris – Compartment B - CGR)

Cegereal is a REIT-style property company ("SIIC") that invests in very large prime office properties. Its portfolio currently comprises three office buildings located in the near suburbs of Paris. The portfolio's appraisal value, as estimated by independent valuers DTZ Eurexi as of December 31, 2014, is €928 million including transfer costs.

Listed on Euronext since 2006, in compartment B, its market capitalization as of February 9, 2015 totaled €377 million.

www.cegereal.com.

alienor.miens@citigate.fr raphael.treguier@cegereal.com

Media relations Investor relations

Aliénor Miens / +33 (0)1 53 32 84 77 Raphaël Tréguier / +33 (0)1 42 25 76 36

IFRS Income Statement (consolidated)

In thousands of euros, except per share data

	2014	2013
Rental income	44,746	43,303
Income from other services	13,173	10,462
Building-related costs	(16,341)	(16,927)
Net rental income	41,579	36,838
Sale of building
Administrative costs	(3,057)	(2,754)
Other operating expenses	0	(4)
Other operating income
Increase in fair value of investment property	42,637	15,386
Decrease in fair value of investment property	(23,933)	(32,531)
Total change in fair value of investment property	18,704	(17,145)
Net operating income	57,226	16,935
Financial income	17	0
Financial expenses	(14,533)	(14,994)
Net financial expense	(14,515)	(14,994)
Corporate income tax	(312)	0
CONSOLIDATED NET INCOME	42,398	1,940
of which attributable to owners of the Company	42,398	1,940
of which attributable to non-controlling interests	0	0
Other comprehensive income
TOTAL COMPREHENSIVE INCOME	42,398	1,940
of which attributable to owners of the Company	42,398	1,940
of which attributable to non-controlling interests	0	0

Basic and diluted earnings per share (in euros) 3.18 0.15

IFRS Balance Sheet (consolidated)

In thousands of euros

	Dec. 31, 2014	Dec. 31, 2013
Non-current assets
Investment property	871,000	849,000
Non-current loans and receivables	30,941	29,331
Total non-current assets	901,941	878,330
Current assets
Trade accounts receivable	6,469	12,508
Other operating receivables	6,276	261
Prepaid expenses	107	68
Total receivables	12,852	12,837
Cash and cash equivalents	23,499	16,018
Total cash and cash equivalents	23,499	16,018
Total current assets	36,351	28,856
TOTAL ASSETS	938,292	907,186
Shareholders' equity
Share capital	160,470	160,470
Legal reserve and additional paid-in capital	21,436	31,465
Consolidated reserves and retained earnings	284,831	292,754
Net attributable income	42,398	1,940
Total shareholders' equity	509,135	486,629
Non-current liabilities
Non-current borrowings	401,889	395,797
Other non-current borrowings and debt	4,166	3,469
Non-current corporate income tax liability	0	0
Total non-current liabilities	406,055	399,266
Current liabilities
Current borrowings	1,716	1,776
Trade accounts payable	2,148	1,479
Corporate income tax liability	295	0
Other operating liabilities	5,045	3,762
Prepaid revenue	13,898	14,275
Total current liabilities	23,102	21,292
Total liabilities	429,157	420,557
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	938,292	907,186

IFRS Statement of Cash Flows (consolidated)

In thousands of euros

	2014	2013
OPERATING ACTIVITIES
Consolidated net income	42,398	1,940
Elimination of items related to the valuation of buildings:
Fair value adjustments to investment property	(18,704)	17,145
Indemnity received from lessees for the replacement of components
Elimination of other income/expense items with no cash impact:
Adjustments for loans at amortized cost	1,091	1,107
Cash flows from operations before tax and changes in working
capital requirements	24,785	20,192
Other changes in working capital requirements	(629)	(15,393)
Change in working capital requirements	(629)	(15,393)
Net cash flows from operating activities	24,156	4,799
INVESTING ACTIVITIES
Acquisition of fixed assets	(3,296)	(745)
Net increase/(decrease) in amounts due to fixed asset suppliers	874	(1,045)
Net cash flows used in investing activities	(2,422)	(1,790)
FINANCING ACTIVITIES
Increase in share capital
Change in bank debt	5,000
Refinancing transaction costs
Net increase in current borrowings	(60)
Net increase in other non-current borrowings and debt	697	796
Net decrease in other non-current borrowings and debt
Purchases and sales of treasury shares	134	(35)
Dividends paid	(20,025)	(8,674)
Net cash flows used in financing activities	(14,254)	(7,914)
Change in cash and cash equivalents	7,480	(4,904)
Cash and cash equivalents at beginning of year*	16,018	20,921
CASH AND CASH EQUIVALENTS AT END OF YEAR	23,499	16,018

*including the 2014 interim dividend of €0.75 per share paid by Cegereal (representing a total amount of €10,029 thousand euros).

French GAAP Income Statement

In euros

	France	Exports	2014	2013
			Total	Total
Sales of goods for resale Sales of manufactured products Sales of services
NET REVENUE	0	0	-	-
Change in finished goods and in-progress inventory In-house production Operating subsidies Reversal of depreciation and amortization charges, provisions for impairment and expense transfers Other revenue			21,208 1	37,757 39
Total operating revenue			21,209	37,796
Purchases of goods Change in inventories of goods held for resale Purchases of raw materials and other supplies Change in inventories (raw materials and other supplies) Other purchases and external charges Taxes, duties and other levies Wages and salaries Social security charges Fixed assets: depreciation and amortization Fixed assets: provisions for impairment Current assets: provisions for impairment Loss and contingency provisions Other expenses			1,488,996 50,810 258,734 121,105 127,967	1,406,634 51,165 265,545 111,548 92,898
Total operating expenses			2,047,612	1,927,789
OPERATING LOSS			(2,026,403)	(1,889,993)
Allocated income or transferred loss Loss incurred or transferred income Financial income from controlled entities Income from other securities and receivables Other interest income Reversal of provisions for impairment, other provisions and expense transfers Foreign exchange gains Net income on sale of short-term investment securities			68,300,000 0 4,797
Total financial income			68,304,797	-
Depreciation, amortization, provisions for impairment and other provisions Interest expenses Foreign exchange losses Net expenses on sales of short-term investment securities			5,956 499,078	140,647
Total financial expenses			505,034	140,647
NET FINANCIAL INCOME/(EXPENSE)			67,799,763	(140,647)
RECURRING INCOME/(LOSS) BEFORE TAX			65,773,360	(2,030,640)

In euros

	2014	2013
Non-recurring income on management transactions
Non-recurring income on capital transactions	78,336	153,570
Reversal of provisions for impairment, other provisions and expense transfers
Total non-recurring income	78,336	153,570
Non-recurring expenses on management transactions
Non-recurring expenses on capital transactions
Depreciation, amortization and provisions for impairment
Total non-recurring expenses	-	-
NET NON-RECURRING INCOME	78,336	153,570
Employee profit sharing
Corporate income tax	312,460
TOTAL INCOME	68,404,342	191,365
TOTAL EXPENSES	2,865,106	2,068,436
NET INCOME/(LOSS)	65,539,236	(1,877,070)

French GAAP Balance Sheet

In euros
ASSETS	Gross amount	Depr., amort. & prov.	Dec. 31, 2014	Dec. 31, 2013
Uncalled subscribed capital Intangible fixed assets Start-up costs Research and development costs Licenses, patents and similar concessions Goodwill Other intangible fixed assets Advances/down payments on intangible assets
Property, plant and equipment
Land Buildings Plant, machinery and equipment Other property, plant and equipment Property, plant and equipment in progress Advances and down payments
Financial fixed assets Receivables from controlled entities Other long-term investments Loans	387,709,685		387,709,685	349,301,810
Other financial fixed assets	794,802	5,956	788,846	716,466
FIXED ASSETS	388,504,487	5,956	388,498,531	350,018,276
Inventories and work in progress Raw materials and other supplies Manufactured products in progress Services in progress Semi-finished and finished goods Goods held for resale Advances/down payments on orders
Receivables Trade accounts receivable Other receivables Subscribed capital, called up but not paid	21,067		21,067	77,127
Short-term investment securities Cash and cash equivalents	460,028		460,028	1,580,482
CURRENT ASSETS	481,095	-	481,095	1,657,609
Prepaid expenses Adjustment accounts	87,792		87,792	23,691
	389,073,374	5,956	389,067,418	351,699,576

In euros

EQUITY AND LIABILITIES	Dec. 31, 2014	Dec. 31, 2013
Capital
Share capital (including paid-up capital: 160,470,000)	160,470,000	160,470,000
Additional paid-in capital	5,388,776	15,418,151
Revaluation reserve	152,341,864	152,341,864
Reserves
Legal reserve	16,047,000	16,047,000
Statutory or contractual reserves	0
Regulated reserves	0
Other reserves	0	8,423
Income
Retained earnings	(3,256,815)	(1,422,072)
Net income/(loss) for the year	65,539,236	(1,877,070)
Interim dividend	(10,029,375)
Investment subsidies Regulated provisions
SHAREHOLDERS' EQUITY	386,500,686	340,986,296
Income from the issue of equity
instruments
Contingent advances
OTHER EQUITY	-	-
Contingency provisions
Loss provisions
LOSS AND CONTINGENCY PROVISIONS	-	-
Non-current borrowings and debt
Convertible bonds
Other bonds
Bank borrowings
Miscellaneous borrowings and debt	1,806,957	10,174,731
Trade accounts payable and other
current liabilities
Advances/down payments received on orders in progress
Trade accounts payable	357,837	444,399
Tax and social liabilities	401,938	93,397
Amounts owed to fixed asset suppliers
Other liabilities		752
Prepaid revenue
LIABILITIES	2,566,732	10,713,280
Adjustment accounts
TOTAL EQUITY AND LIABILITIES	389,067,418	351,699,576