PATRIMOINE ET COMMERCE: 2024 ANNUAL RESULTS

PRESS RELEASE

2024 ANNUAL RESULTS

Paris - February 19, 2025

At its meeting on February 18, 2025, the Patrimoine & Commerce Supervisory Board reviewed the Company’s operations and approved the 2024 financial statements (1), prepared by Management.

• Groupe share of net profit growing by +41.1%
• Portfolio valuation of € 904m (+5.3%)
• Dividend payment of € 1.35 per share, implying a 6.6% yield on share price, as well as a 4.5% yield on NAV

Key figures

Eric Duval, Managing Director and Founder of Patrimoine & Commerce declared: « Patrimoine & Commerce continues its growth with solid results. The entry of Crédit Agricole Centre France into the capital of the Company demonstrates the relevance of our value creation strategy, which we pursue in the promising segment of low-cost retail parks, a resilient segment in a complex economic and real estate context thanks to its economic model (low vacancy rate, affordable rents). This operation marks an important growth step with the goal of reaching a property value exceeding one billion euros. We continue our proactive portfolio management strategy and asset valuation while supporting the energy transition (e.g., installation of charging stations, development of photovoltaic projects). True to our profit distribution policy, and driven by our confidence in continuing sustainable growth, we will propose a dividend distribution of €1.35 per share. »

Operational performance

Patrimoine & Commerce had a sustained leasing activity and signed 82 leases (of which 34 renewals). The financial occupancy rate is increasing and stands at 95.4% (5) on the portfolio. The collection rate on rents and service charges invoiced in 2024 stands at 99%.

Group share of net profit growing by +41.1%

In 2024, Patrimoine & Commerce continued to deliver a solid financial performance.

For the fiscal year ended December 31, 2024, Patrimoine & Commerce reported consolidated gross rental income of € 52.6m, against € 50.5m for the fiscal year ended December 31, 2023:

The increase of gross rental income is mainly explained by (i) the effect of the acquisitions and disposals made in 2023 and 2024 (ii) the delivery of the restructuring works in La Ville-du-Bois in 2023 and (iii) the like-for-like increase, driven by contractual indexation and the decrease in the amortization of rent free periods.

Net rental income stands at 93% of gross rental income, mainly composed of unrecovered rental expenses and provisions for credit losses:

Operating expenses and other revenues are increasing over the period (€6.0m in 2024 vs. €5.1m in 2023), mainly explained by a rise in management fees due to higher rents and an increase in IT expenses.

Net cost of debt amounted to € 12.2m in 2024, an increase of +13,3% compared to last year, driven by the tightening of financing conditions. The Company continues to benefit from the hedging of its debt portfolio, with 78% of the debt either at fixed rate or at hedged variable rate. The average interest rate on debt is 3.12% for the 12 months ending December 31, 2024 (versus 2.76% in 2023).

Recurring net result (FFO) amounted to € 30.7m in 2024, stable compared to 2023:

Including the fair value adjustment of the portfolio (+€ 1.1m), the share of the result of companies accounted for using the equity method (+€ 9.4m), other non-recurring revenues and charges
(+€ 0.4m), and the contribution of hedging strategies on debt (-€ 0.8m), net profit amounted to
€ 40.8m for the fiscal year 2024 and € 41.0m in group share, an increase of +41.1% vs. 2023.

Decrease of the LTV ratio and increase of the NAV per share at € 30.1 (+3.3%)

The Group consolidated net debt of € 387.3m as of December 31, 2024, implies a Loan-to-Value ratio of 43.1%, leaving a significant investment capacity compared to the target of 50% set by Patrimoine & Commerce.

Net asset value per share amounted to € 30.1 (€ 478.5m) in 2024, an increase of +3.3% versus 2023.

Development and optimization of the portfolio

As of December 31, 2024, the portfolio valuation (excluding transfer taxes and including properties accounted for using the equity method), reached € 903.8m, increasing by +5.3% compared to 2023. The capitalization rate of the properties in operation stands at 7.6%.

During the fiscal year ended December 31, 2024, Patrimoine & Commerce continued its development with the acquisition of a portfolio of 13 assets. The portfolio, representing an area of 27,000 sqm, consists of 25 units and has an occupancy rate of 100%. The company also acquired, at the end of 2024, a commercial property in Saint-Egrève (Auvergne-Rhône-Alpes) with a total area of approximately 6,100 sqm, and continued its investments in the construction of a new building in Wittenheim. The total amount of these investments amounted to €46.8m in 2024.

Furthermore, Patrimoine & Commerce continued its asset rotation policy with the disposal of four assets at amounts close to their appraisal values. These include an asset in Chambly (Hauts-de-France), an asset in Renazé (Pays de la Loire), a unit in Saint-Gaudens (Occitanie), and an asset in Gaillon (Normandie). These disposals represent a total amount of €2.4m.

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 implies a 4.5% yield on net asset value per sh