2016 Annual ResultsTertiary in Paris 139,228 1,677 64 3.8 % o/w Paris CBD 113,002 1,496 55 3.7 % ... 31 December 2016 31 December 2015 Buildings 1,944 1,712 o/w Tertiary Paris 1,677

la foncière parisienne

2016 Annual Results

March 8, 2017

2


Content

I. Introduction

II. Portfolio

III. Rental business

IV. Financial results

V. Outlook


3


2016: key figures

• EPRA liquidation NAV

• Rental income Parisian Tertiary

• Revalued portfolio

• % of assets within Paris

• LTV ratio

• 2016 Dividend*

* To be approved by the General Meeting of Shareholders

€45.08 € per share (+21.4 %)

€57.0m (+7.4 %)

€1,944m (+13.5 %)

95 % (+5 pts)

39 % (-5 pts)

€0.79 per share (+3.9 %)

4


Content

I. Introduction

II. Portfolio



V. Outlook


5


2016 : a new year of strong growth of portfolio

End of2016

Acquisitions + Capex

RevaluationsDisposals (Value 2015)

End of2015

End of 2016 before

revaluations

Refocusing strategy on Prime Parisian

Tertiary

In € millionPortfolio: + 13.5 %

* Sales price: €89m

1,944

+109

+211

-88*

1,712 1,733

2,088

End of2016

Lfl: +12.2 %Replacement

value

6


Sq.m.Value excl.

duties

Rentalincome

€m

Yield / Value

€/sq.m.

Tertiary in Paris 139,228 1,677 64 3.8 %

o/w Paris CBD 113,002 1,496 55 3.7 %

Residential 17,160 162 4 €9,457 €9,361

4.4 %

4.3 %

2015

2016

Renewed compression of yields in 2016

7


Acquisition of three buildings to CNCin the middle of Paris CBD for €101m

• Office buildings at 11, 32/34 rue Galilée et 10/12 rue de Lübeck (Paris 16e)

• Rental area: 8,316 sq.m.

• CNC tenant > end of Q1 2018

• Annual yield of around 4.60 % after refurbishment and re-commercialisation

8


2016 disposals: €89.4m*Net book gain: €31.8m

* Sales price. Appraisal value: €88m

Residential in Paris

• 2016 disposals: €34.8m • Average price of €10 642/sq.m.• Net book gain: €19.2m

Paris area and Regions

• 2016 disposals: €54.6m• Net book gain: €12.6m

Continuation of sales of non strategic assets for €89m

9


Concentration on Prime parisian Tertiary

41 avenue de Friedland, 8e

Purchase incl. duties 2014: €75.1m

Appraisal value excl. duties at 31 Dec. 2016: €97.7m

11 bis rue Roquépine | 14 rue Cambacérès, 8e



10



31-39 boulevard Sébastopol, 1er



14-16 boulevard Poissonnière, 9e



11



50-52 boulevard Haussmann, Paris 9e



17 avenue George V, 8e



12


0.2

1.2

0.7 1.95

0.15

End of 2008

End of 2016

(0.3)

Acquisitions

Merger A&I

Reval.Disposals

+€1.8Bn

40%

50%

10%

Revaluations

Acquisitions

less disposals

Merger A&I

Increase over 8 years

Billion of euros

Portfolio growth drivers 2009 - 2016

13


92%

2011 2016

78% 95%

2011 2016

77% 88%

2011 2016

92%82 %

92 %

92%92%78 %

95 %

78% 95%92%92%77 %

88 %

Focusing on Tertiary assets within the Paris CBD

€1,1 billion €1.9 billion

…on the Tertiaryvs Residential

€1.1 billion €1.9 billion

…on Paris vs regions

€0.9 billion €1.7 billion

…on Paris CBD vs Paris out of CBD

A continuing strategy of focusing the assets portfolio…

Basis 100 % total assets

Basis 100 % total assets

Basis 100 % Tertiary parisian

assets

14


Content

I. Introduction

II. Portfolio



V. Outlook


15


2.4

70.7

Acquisitions less

disposals

1.6 (2.9)

Residential (0.5)

Improvementof financialoccupancy

rate 66.7

(4.5)

Disposals

Leasemanagement

Parisian Tertiary rental income: +€3.9m (-€4.0m globally)

Parisian Tertiary: +€3.9m

Total rental income (€m)

Other Tertiary: - €7.4m

2015 2016

16


Paris Paris

55.847.6

435461

2016 key indicators for Parisian Tertiary assets (excl. Retail)

Potential revenues (€m)

ParisCBD

Rental income (€/sq.m.)

Paris CBD

17


€41.5m

€7.7m

145

70

49,2 M€ 215

Secured Parisian Tertiary portfolio by a high number of leases

296 sq.m.

583 sq.m.

Paris CBD

Paris excl. CBD

Number of leases

Average area / lease

Paris Tertiary rental income

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18


2014 2015 2016 2014 2015 2016

8.0 % 9.2 %

Relocations: Rues Galilée, St Lazare et Lafayette (under restructuration in 2015) Rue Chaptal and avenue de Friedland

6.0 % 5.8 %6.8 %

4.4 %

Decrease in EPRA vacancy rate

Based on leasable portfolio

Total portfolio Paris Tertiary

19


29 %41 %

5 %

€8.0m

25 %

2016 investments on portfolio

Maintenance and repair (reinvoiced to tenants)

Refurbishing and valuation works

Works related to acquisitions

Works related to disposals

20


BREEAM Certification process of parisian Tertiary

Target: 77 % of

parisian Tertiary

assets being

certified at the end

of 2017

Certifications

at the end of 2016:

40% Very Good

ou GoodCertifications

planned in 2017:

37%, o/w 29%

on process

21


Content

I. Introduction

II. Portfolio



V. Outlook


22


66.7

(1.1)(5.3)(0.8)

(28.8)(0.8)

29.9

2016 2015

-5.6 %

-10.6 %

Change %

70.7

(1.1)(5.7)(0.8)

(28.8)(0.8)

33.5

EPRA Earnings

Rental income

Rental expenses incurred and othersSG&AOther operating revenues and chargesFinancial resultTaxes

EPRA Earnings

(In € million)

23


29.9

(29.7)(3.2)31.8(1.2)(4.4)

23.2

2016 2015

-10.6 %

+39.0 %

Change %

33.5

(32.0)(11.9)

27.1--

16.7

Net result

EPRA Earnings

Amortisation on investment propertiesDepreciation on investment propertiesProfit on disposalsFair value of financial instrumentsTermination cost of Issy swap

Net result

(In € million)

24


31.83

End of

2014

37.12

End of

2015

+21.4 %

45.08

End of

2016

Renewed growth of EPRA liquidation NAV: +21.4 %

Two leverages for growth:

Strategy of focusing of assetson Paris CBD

Mechanical effect of the reimbursement of annuallyredeemable loans

€ per share

25


Breakdown of NAV

(€m)31 December

201631 December

2015

Buildings 1,944 1,712

o/w Tertiary Paris 1,677 1,353

o/w Tertiary Ile-de-France and regions 105 165

o/w Residential 162 194

Net debt -761 -746

Others -26 -13

EPRA Liquidation NAV 1,157 953

Acquisition costs 145 106

Replacement NAV 1,301 1,059

Number of shares (diluted, net of own control) 25,660,210 25,663,444

EPRA Liquidation NAV per share €45.08 €37.12

Replacement NAV per share €50.71 €41.26

26


€1,712m

€746m

44 %

€1,944m

€761m

39 %

Comfortable level for LTV ratio

Revalued portfolio Net debt LTV ratio

End of 2016End of 2015

27


2017 2019 2021 2023 2025 2027 2029 2031

€120m

€40m

68 %

20 %

11 % €761m

1 %

Secured long term financing

Net debt breakdown as of 31 December 2016

• 2016 weighted average cost of debt: 3.65 %

• 100 % redeemable loans

• In fine

• Credit lines

• Corporate financing

Maturities per year (In €m)Situation as of 31 December 2016

28


En €/action

2008 2009 2010 2011 2012 2013 2014 2015 2016

+3.9 %

0.39

0.40

0.79*

A sustained growth policy for the dividend

Complement to total dividend

Interim dividend

+ 8.0% on a yearly average

* To be approved by General Meeting of Shareholders on May 10, 2017

0.21

0.43

0.23

0.460.26

0.30

0.220.27

0.61

0.220.24

0,30

0.310.49

0.57

0.32

0.32

0.64

0.34

0.36

0.70

0.38

0.38

0.76

29


Content

I. Introduction

II. Portfolio



V. Outlook


30


2009 2010 2011 2012 2013 2014 2015 2016

25,1 26,0

85,665,0

91,0

118,0 115,8

211,0 Continuous search for quality assets in Paris on strict criteria (multi-tenancy, occupancy rates, etc)

Acquisitions on optimal conditions

Valuation gain realized at the acquisition

€737m of value created over 2009-2016 (o/w €211m in 2016)

Clear positioning of long-term and proactive investor

In €m

Value created as measured by experts

revaluations

31


2017 outlook

• Goal: keep focusing on Paris CBD

• TERREÏS will continue to seek investment opportunities which come available in the prime Paris Tertiary sector

• Will pursue to optimize the resale of its residential, and tertiary assets regional and Paris area in optimal conditions

• Net proceeds from disposals will be reinvested in tertiary assets within Paris CBD

32


Residential €162m

Regions€22m

Paris area€83m€267m

of assets on sale, or

14 % of total portfolio

€267m of assets on sale

Net proceeds from disposals to be reinvested in tertiary assets within Paris CBD

Tertiary within Paris

33


• Sale price: €44m

• Net book gain: €23m

Tertiary assets in the Paris area: Antony, sold in January 2017

34


Tertiary assets in the Paris area: Ivry sur Seine

60-61 Quai Auguste Deshaies

13,000 sq.m., vacant since mid-February 2016

Relocation or conversion into hotel residence

35


Residential assets in Paris

25-27 rue MarbeufParis 8e

43 rue de LilleParis 7e

10-12 avenue de Messine Paris 8e

36


Assets in the regions

Shopping arcade,

downtownChartres

Tours (4,500 sq.m.)

Thiers TowerNancy

(4,300 sq.m., 20%)

37


TERREÏS’ Model key aspects

• Property investment company focused on tertiary assets in Paris CBD with diluted tenant risk and high occupancy rates

• Strong capacity to create value from the moment of acquisition and through optimal and inexpensive management conditions

• Financing through fixed rates mortgaged-redeemable loans

• Dividend partly provided by non-strategic assets disposals programme

• Mechanical improvement of NAV through annual reimbursement of debt

38


NAV and net debt long term trends

Net debt

Liquidation NAV

• Everything being equal, the regular reimbursement of a 100% mortgaged-redeemable debt mechanically improves NAV and mechanically reduces LTV ratio

Time

39


2011 2012 2013 2014 2015 2016

8,75 €/share

Global value creation 2011 - 2016

Gain on NAV/share (Year N NAV – Year N-1 NAV) €/share

Dividend (€/share)

Gain on NAV + dividend / NAV at the begining of period

* To be approved by the General Meeting of Shareholders

7.96

0.79*

4.574.16

3.56

5.27 €/share4.77 €/share

4.13 €/share 4.04 €/share

0.700.640.610.57

3.40

5.29

0.76

6,05 €/share

25,6 %24,2 %

16,9 %19,3 % 19,0 %

23,6 %

APPENDIX


41


66.7

2.1(2.5)(0.7)

65.6

(5.4)

60.2

(30.5)

29.7

-5.7 %

-5.6 %

-

-4.6 %

-4.5 %

2016 Change %2015

100.0 %

98.4 %

90.3 %

44.5 %

70.7

2.0(2,5)(0.7)

69.5

(6.4)

63.1

(32.0)

31.1

100.0 %

98.4 %

89.3 %

44.0

Profit and loss account (1/2)

(In € million)

In % of rental income

In %of rental income

Rental income

Other revenuesReinvoiced chargesManagement and rental fees

Net revenue income

Operating charges

EBITDA

Depreciation

Current operating income

42


29.7

31.6(2.7)

58.6

(34.5)(0.8)

23.2

22.60.6

€0.88

2016 2015

-4.5 %

+26.6 %

+38.9 %

+39.7 %

31.1

27.1(11.9)

46.3

(28.8)(0.8)

16.7

16.10.6

€0.63

(In € million) Change %

Current operating income

Margin on assets disposalsOthers

Operating income

Financial incomeTaxes

Net income

Group shareMinority interests

Net income per share

Profit and loss account (2/2)

43


1,0167

698

1,100

223

745702

13268

1,100

2016 2015

1,03213

1810

1,073

216

722674

13589

1,073

Consolidated balance sheet

(In € million)

ASSETS

BuidingsOther non current assets

Current assetsCash

Total

Shareholders equity

Non current liabilitieso/w financial debt

Current liabilitieso/w financial liabilities

Total

44


54 %

Float

46 %

(€410m)*

Ovalto

Investissement44 % 56 %

* Size of Float at March 1, 2017

TERREÏS shareholding basis as of 31 December 2016

Institutional

shareholders

(60 % France,

40 % International)

Individual

shareholders

45


Disclaimer

The present document contains projections and descriptions of TERREÏS’ future strategy, objectives and prospects.

These projections and descriptions may be affected by known or unknown risks, uncertainty and other random factors that could ensure that TERREÏS’ future results, performance and achievements are significantly different from what is envisaged or suggested in the present document. These risks are described in the « Risks Factors » part of the Document de Référence registered with AMF on April 6, 2016 with the number D.16-0290.

TERREÏS makes no commitment and extends no guarantee that it will fulfil or meet its future strategy, objectives and prospects.

Unless the law states otherwise, TERREÏS makes no commitment to update or revise the projections and descriptions contained in the present document.

The present document does not constitute in any way a solicitation to sell, buy or subscribe to TERREÏS shares.

Documents

2016 Annual ResultsTertiary in Paris 139,228 1,677 64 3.8 % o/w Paris CBD 113,002 1,496 55 3.7 % ... 31 December 2016 31 December 2015 Buildings 1,944 1,712 o/w Tertiary Paris 1,677