What happened in 2007?

2007 was a very active year for ANF.

Much has been done, which enabled us to increase the value of our assets by more than 40%. This included successful marketing of the first part of Rue de la République in Marseilles; delivery of the first development projects (Mazenod car park and 5 Place de la Joliette); a first acquisition; and a €335 million capital increase completed in October 2007 in difficult market conditions. The market transaction showed ANF’s attractiveness to prestigious investors.

However, much remains to be done and there is still very considerable potential for value creation.

In 2008, we shall continue with our strategy of upgrading our existing properties and speeding up the implementation of all development projects. These will ensure ANF’s growth over the next four years.

 The value of ANF’s assets increased by 40% between 31 December 2006 and 31 December 2007. Where is future value creation likely to come from?

The value of our historical assets, meaning those in Lyon and Marseilles, did indeed increase by 40% in 2007. However, the average value per square metre came out at €2,760 excluding transfer taxes, which is substantially below values in the two cities. The increase was mainly achieved thanks to the work of ANF’s people. Nonetheless, there are still many sources of value: many leases are below the market price and residential vacancy rates are high in Marseilles. 2008 will bring the end of marketing of the first tranche of Rue de la République in Marseilles and development of further tranches. Finally, the various development projects only have a small impact on the valuation of our assets. You can see that there are many possible ways for us to create value for shareholders.

 One particular feature of ANF is that the company has internal growth opportunities. What is happening in these various projects?

ANF is one of the few property companies to have internal opportunities with the ability to ensure growth over the next four years. There are 15 such projects involving more than 136,000 m2, mainly in Marseilles, but also in Lyon. At the end of 2007, we delivered two of the 15 projects in Marseilles: a 446-space car park opened in October 2007 that was fully-let at the end of 2007, and a totally renovated building offering 2,638 m2 of offices and 530 m2 of retail space, that is already occupied. The other projects involve construction of office and retail space plus residential property, delivery of which is to take place over the next four years, mainly in 2009 and 2010. Building permission is required for all of these projects. This has been sought in most cases and already obtained for some. Future tenants have been identified for the majority of the projects. We can therefore say that the development of this 136,000 m2 of buildings is very secure.

 You completed an acquisition. What is your strategy in this respect?

From the start, we have indicated that we wished to expand ANF both by developing the property reserves owned by the company and by acquisitions. Acquisition of the 159 B&B hotels has enabled ANF immediately to double rental income. This is in addition to the particularly secure income currently received by the company. Our gearing is low, with a debt ratio of 18% of asset value. We are therefore looking to take advantage of any new acquisition opportunities that might present themselves, which are consistent with ANF’s strategy.

 What are your views on the company's share price?

In 2007, ANF’s share price rose by nearly 22%, while the EPRA property company index fell by more than 25%.

At the beginning of 2008, ANF’s share price was affected by general stock market conditions. This was further exacerbated for ANF by a reaction to 2007’s sharp rise. In January 2008, the market retreated from small and medium capitalisation stocks to virtually the same extent as in the whole of 2007. ANF was not spared by these market trends but, given the substantial upside potential for the company's assets, I am entirely confident that the share price will reflect this value creation sooner or later.