Company Presentation September 2016

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Disclaimer

This presentation has been prepared by Grivalia Properties REIC (the “Company”). The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company, shareholders or any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Unless otherwise stated, all financials contained herein are stated in accordance with International Financial Reporting Standards (‘IFRS’). This presentation does not constitute an offer or invitation to purchase or subscribe for any shares and neither it or any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The information included in this presentation may be subject to updating, completion, revision and amendment and such information may change materially. No person is under any obligation to update or keep current the information contained in the presentation and any opinions expressed in relation thereof are subject to change without notices. This presentation is subject to any future announcements of material information made by the Company in accordance with law. This presentation does not constitute a recommendation regarding the securities of the Company.

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Strong management team

Solid operational performance

REIT framework

Top quality shareholder base

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High quality property portfolio


A strong management team
Unprecedented learning curve
Whole spectrum of services in-house
Strong track record

Detailed curriculum vitae of the management team can be found on our website: www.grivalia.com http://grivalia.com/en/company/corporate-governance/management-team

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Greece

Cloud Hellas S.A.

Romania

Seferco Development S.A. Retail Development S.A. Eliade Tower S.A.

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Serbia

Reco Real Property A.D.

Luxembourg

Grivalia Hospitality S.A. Grivalia New Europe S.A.

87 Assets

≈

€827M

€56M in Debt

€76M in Cash

Weighted average cost of debt 2,59% Weighted average maturity 4 years Debt to total assets 6% Loan to value 7% Total balloon payments €38Μ

Occupancy rate 93,6% Land size 1.174.164 sqm Building size 746.897 sqm Remaining building coefficient 26.463 sqm

Loan maturity schedule 06.2016

Grivalia Properties

Actual balloon payments

13,6M

13,2M

11,5M

0,1M* 2016

2017

6 * Amount of €0,1M was paid on July 12th, 2016 from Grivalia Properties

2018

2019

2020

2021

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€ millions

€ millions

€ millions

€ millions

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€ millions

€ millions Adjusted EBITDA Operating profit Plus: Depreciation of property, plant and equipment Less : Gain from sale of Investment property Less: Valuation gain/ (loss) Adjusted EBITDA

06.2013 (10) 28 17

06.2014 22 (2) 20

06.2015 22 22

06.2016 7 12 19

FFO Profit after tax Less : Negative goodwill

06.2013

06.2014

06.2015

06.2016

(9)

24

20

5

-

(1)

-

-

28

(2)

-

12

19

21

20

17

Less: Valuation gain/ (loss) Funds from operations

in € thousands Investment property PPE, Goodwill and Intangible assets Deferred tax asset Other long term receivables Non-current assets

30.06.2016 827.140 3.551 312 3.262 834.265

31.12.2015 825.598 3.308 312 3.708 832.926

Trade and other receivables Cash and cash equivalents Current assets Total Assets

6.874 75.551 82.425 916.690

6.780 111.755 118.535 951.461

Bank Debt Current income tax liabilities Other Payables Total Liabilities

55.515 5.408 9.658 70.581

58.976 1.734 10.947 71.657

215.684 571.234 (21.081) 15.841 64.431 846.109 916.690

215.684 571.234 (12.493) 14.962 90.417 879.804 951.461

Share capital Share premium Own shares Other reserves Retained earnings Total Equity Total Liabilities & Equity

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Offices

Retail

Logistics

Mixed Use

Special Use

27 properties

31 properties

5 properties

18 properties

5 properties

238.453 sqm 37,8% of rents 92,1% leased

247.344 sqm 31,6% of rents 99,6% leased

85.167 sqm 7,0% of rents 96,2% leased

91.558 sqm 16,0% of rents 73,0% leased

84.375 sqm 7,6% of rents 100% leased

% of Total GLA by Sector Logistics 11,4% Special use 11,3%

Retail 33,1%

Office 31,9% Mixed use 12,3%

10 79,5% of total GLA is above ground and 20,5% is below ground

Geographical breakdown

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Tenant mix

Leases Overview

• • • •

Weighted average remaining term of 11,3 years 78,4% of the annual rental income comes from “guaranteed” leases Most of the retail contracts have an upside through turnover clauses All tenants responsible for ordinary maintenance expenses

Expiration profile (% of Annualized Rent) Lease expiration

Leases with guaranteed duration

100,0%

89,6% 76,5%

80,0% 60,0% 40,0% 20,0% 0,7%

0,1%

0,4%

0,3%

4,7%

0,7%

2,1% 0,8%

2,5%

0,0%

0,0% 2016

2017

2018

2019

2020

2021 and after

Contracted Indexation Profile Other 12,6%

CPI 25,0%

CPI max 3% 2,2%

Turnover rent 22,1%

CPI+0,25% 1,2% CPI+1,0% 6,2%

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HICP 30,7%

Total investments ≈ €297Μ, Value creation ≈ €36,6Μ Portfolio of four retail boxes / DIY stores Entry yield 12,9% / Completed in December 2013 ▪ Portfolio of four DIY stores with anchor tenant the largest and most successful DIY retailer in Greece, with total GLA of c. 65.100 sqm ▪ 100% occupancy rate, annual rental income of €5,57M ▪ Transaction price: €50,0M ▪ Value creation 30.06.2016: €14,4M Portfolio of two warehouses in Aspropyrgos Entry yield 11,7% / Completed in March 2014 ▪ Newly constructed assets with modern specs and total GLA of c. 32.000 sqm ▪ 100% occupancy rate, annual rental income of €1,21M ▪ Transaction price: €14,2M ▪ Value creation 30.06.2016: €2,6M Hellenic Republic, Sale & Leaseback 9,63% entry yield / Completed in May 2014

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▪

Portfolio of 14 assets in Athens and locations around Greece with c. 136.000 sqm of office areas

▪

100% occupancy rate, annual rental income of €14,07M

▪

Transaction price: €145,8M

▪

Value creation 30.06.2016: €0,6M

Praktiker retail boxes in Heraclio, Crete Island and Mandra, Western Attica Entry yield 9,5% / Completed in March & May 2015 ▪ Acquisition & Leaseback of two retail units of the largest and most successful DIY retailer in Greece, with GLA of c. 25.000 sqm ▪ 100% occupancy rate, annual rental income equal to 5% of net store sales with min. guaranteed rent €1,425M p.a. ▪ Transaction price: €15,0M ▪ Value creation 30.06.2016: €1,7M Mart Cash & Carry (ex Makro) portfolio of 9 stores around Greece Entry yield 9,5% / Completed in August 2015 ▪ Acquisition & Leaseback of Mart Cash & Carry (ex MAKRO) portfolio, one of the largest wholesalers in Greece, with GLA of c. 99.300 sqm ▪ 100% occupancy rate, annual rental income equal to 1,45% of net sales with min. guaranteed rent €5,7M p.a. ▪ Acquisition price: €60M ▪ Value creation 30.06.2016: €17,3M Office building in Athens CBD, 68 Vassilissis Sofias Avenue Entry yield c.6% / Completed in March 2016 ▪ State of the art, trophy building in prime location with GLA of c.3.990 sqm ▪ c.70% occupancy rate, with potential up to €0,85Μ under full occupancy ▪ Acquisition price: €11,6M

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€18M dividend pay out

11,00

€31M dividend pay out

€30M dividend pay out

10,32

10,00 9,00

8,27

31.03.2014

8,13*

8,17

8,30

8,43

30.06.2014

30.09.2014

31.12.2014

8,24

8,31

31.03.2015

30.06.2015

8,58

8,69

30.09.2015

31.12.2015

8,43

8,35

31.03.2016

30.06.2016

8,00 8,13*

7,00 6,00 5,00 4,00 3,00 2,00 31.12.2013

04.2014

01.2015 & 03.2015

* : €8,13 is the adjusted NAV 31.12.2013 taking into consideration the 101,26M shares vs. 61M shares. 15

03.2016

Shareholder Structure – 06.2016

Grivalia Properties vs Athex Composite Share Index

Share price information Total shares outstanding: Number of own shares: Price as at 30.06.2016: Market Cap as at 30.06.2016: NAV as at 30.06.2016: NAV per share as at 30.06.2016:

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101.260.000 3.342.973 € 7,00 € 709M € 846Μ € 8,35

Ranked 15 according to Company’s average annual market capitalization in the ATHEX

Tax implications from newly passed legislation

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Amendments on corporate tax framework Fiscal Law 4172/2013

Multi bill May 22, 2016

Results

• Annual tax on AUM: Based on formula: 10%*(ECB reference + 1%) As of 31/12/2015: 0,105% * AUM

The higher of: 10%*(ECB reference + 1%) or 0,75%

614% increase

Effective from June 1st, 2016

c.€0,96M

c.€6,7M

Δ €5,7Μ

• Real estate tax (ENFIA): Principal tax: Calculated on multiple characterizing each asset

Principal tax: parameters

Unchanged

Supplementary tax:

Supplementary taxes:

0,25% of the objective price1 of each IP directly owned by REICs

0,55% of the objective price1 Effective retroactively from January 1st, 2016

0,5% of the objective price1 of each IP indirectly owned through SPVs

c.€3,9M

c.€4,8M

120% increase of the supplementary real estate tax for IP directly owned by REICs 10% increase of the supplementary real estate tax for IP indirectly owned through SPVs

Δ€0,9M

• Foreign subsidiaries’ taxes: c.€1,06M

c.€1,06M

Δ€0

Total taxes: c.€5,92M 18

1:

c.€12,56M

TOTAL Fiscal burden: c.€6,6Μ

as reported from fiscal authorities NB: the adverse change in the tax calculation creates material negative effect on our liquidity but also on our vacant properties (occupancy rate 93,6%) which are heavily penalized

Invest in •

Invest through

Every commercial real estate sector including hospitality real estate business, marinas etc Residential assets Long- term concessions Property development (1)

• • •

• • • • •

Direct asset acquisition JVs for property development -minimum 25% share SPVs -minimum 80% share Holding companies – minimum 80% share Regulated mutual and alternative investment funds minimum 80% share

REICS are Entitled to: • Borrow up to 75% of their total assets • Set up special funding vehicles • Acquire assets from their shareholders through a highly regulated and transparent process held by the GSM Must: • Distribute at least 50% of net profits

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(1):

Certain restrictions: maximum cost of property development must be up to 40% of the total portfolio.

For further information please contact:  Mr George Chryssikos, Chief Executive Officer - telephone number: +30 210 8129677, e-mail: [email protected]  Mr Paris Varfis, Chief Financial Officer - telephone number: + 30 210 8129673, e-mail: [email protected]  Mrs Natalia Strafti, Chief Operating Officer - telephone number: + 30 210 8129674, e-mail: [email protected]

Company’s website: www.grivalia.com

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