ANF is a major real estate company in the city centers of Lyons and Marseilles, and has a portfolio of hotels in France. Valued at E1,504 million, ANF has 260,000 square meters of built structures, 130,000 square meters of projects and 166 hotels.

ANF’s prime location in city centers, with a predominance of commercial leases - in high potential cities - and the diversity of its tenant base make its rentals particularly resistant to declines in consumption and general economic hardship. The portfolio of hotel properties, spread throughout France, is leased for 12 year terms (expiring 2019), with fixed and indexed rents, ensuring both the security and the sustainability of rental income. The diversity of ANF’s assets therefore presents a strong and resistant profile that is particularly well suited to the current market environment.

The strategy to increase rental values relies on two key techniques:

• restructuring the Group’s built assets through renovation;
• making use of the Group’s land reserves, which has been an important development project for ANF.

Despite the tremendous turmoil in the economy, rents continued to rise in 2009, by 10% at a constant consolidation scope to E65 million. In Lyons and Marseilles, rents increased by 12%, reflecting the vitality of the two cities and the resilience of AN F. In addition, AN F continued the partnership it began with the B&B hotel chain in 2007. AN F has invested E35 million in this partnership, including E21 million for the acquisition of six new hotels.

The continuing rise in rents and the quality of the Group’s assets led experts to take account of a stabilization of rates during the second half, while the first half had seen a sharp increase in capitalization rates. The value of ANF’s assets as of December 31, 2009 was E1,504 million.

ANF also finished its first development project in Marseilles’ Euroméditerranée quarter in 2009, with the on-schedule delivery of a tourist residence to the Pierre & Vacances group in October. Two other projects are expected to be delivered in 2010. In 2010, ANF’s assets are expected to be increased by the installation, following that of Lyons, of the first Starbucks coffee shop in Marseilles, which is scheduled to open during the first half of 2010.

In addition, as part of its policy of regularly rotating its assets, ANF has initiated a program to divest a total of close to E100 million in properties over three years. The first year of this program was successful, with the effective transfer of two buildings at prices comparable to their appraised values of December 2008. A total of E55 million in assets were sold in 2009, generating a gain of E10 million.

In January 2006, AN F opted for the tax status of Société d’Investissement Immobilier Cotée (or SIIC, a French RE IT), which, subject to certain conditions, afforded it a tax exemption. In December 2009, Eurazeo, AN F’s main shareholder, satisfied the requirements imposed by this SIIC status, enabling AN F to expand its public float and enhance the attractiveness of its market profile. As of December 31, 2009, Eurazeo held 59.2% of ANF. This attempt to improve its market profile led the company to intensify its financial communication initiatives, with a focus on meeting with a large number of investors and financial analysts. These actions increased the stock’s liquidity considerably, as it nearly tripled in only twelve months.

The company’s objective is to increase rent by about E41 million in five years, at a constant consolidation scope, to bring them to about E106 million in 2014, excluding the impact of indexation.

Consolidated balance sheet as of December 31, 2009 (under IFRS)