PROPERTY FOCUSED ANNUAL REPORT

Transcription

1 PROPERTY FOCUSED ANNUAL REPORT

2 Gmp AT A GLANCE KEY OPERATING DATA NUMBER OF ASSETS BY AREA OF MADRID CBD / City Centre M30 N ,443 sq m 5,313 North Madrid East Madrid Number of assets Number of office buildings Gross leasable area above ground Parking spaces 3 A1 M40 90% ,105 sq m Occupancy at end of 2017 Number of clients Buildable area for future developments KEY FINANCIAL DATA 10 M30 3 A m 65.6m 2,046m Total revenues EBITDA GAV A5 805m 41% 1,190m A3 Net debt Adjusted LTV EPRA NAV A4 The image on the cover is of the Castellana 81 building AEO award for Best Renovation.

3 INDEX 0 1 MESSAGE FROM THE CHAIRMAN KEY ASPECTS OF COMPANY PORTFOLIO Milestones 1.2. Key data Description 4.2. Office buildings 4.3. Land portfolio 4.4. Las Colinas Golf & Country Club THE COMPANY 2.1. Mission, vision and core values 2.2. Business areas: strategy and business model Core business: property-owning business Other businesses: residential tourism development 2.3. Management team 2.4. Company structure 2.5. Financial structure COMPANY STRUCTURE Shareholders 5.2. Corporate governance BUSINESS PERFORMANCE IN THE FINANCIAL YEAR 3.1. Consolidated figures Income statement Valuation of portfolio 3.2. Core business: property-owning business Description of the client portfolio Occupancy Average rental revenue Projects/Investments EPRA ratios 3.3. Other businesses: residential tourism development CORPORATE SOCIAL RESPONSIBILITY 6.1. Human capital management 6.2. Innovation and sustainability as strategic values 6.3. Integrated management of quality, the environment and health and safety in the workplace 6.4. Gmp Foundation AUDIT REPORT AND FINANCIAL STATEMENTS

4 MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE CHAIRMAN Francisco Montoro Alemán Chairman - CEO Dear shareholders, clients, collaborators and employees, I am pleased to present our 2017 Annual Report, which highlights the key data and initiatives corresponding to a financial year during which the Company has obtained good results. Over 2017, the Spanish economy grew 3.1%, 0.7% above the European Union average, which indicates its considerable strength, chalking up three consecutive years of growth. The employment figures for Madrid showed a significant increase, up 4%, which is the highest rise across Spain, and this had a positive impact on hiring in the office market, reaching more than 560,000 m² of space, close to levels before the economic crisis and nearly 30% above the levels for In this positive backdrop, Gmp s operating income and EBITDA in 2017 grew by 22% and 27%, reaching million euros and 65.6 million euros respectively. Gmp closed leasing contracts for 50,000 m² in 2017, which represents 9% of office rental market in Madrid, where Gmp s portfolio accounts for 3% of the total As regards our core business, office space, revenues from leasing rose 9% and EBITDA by 12%. Successful commercial management of available space has proved decisive in achieving these results. This has enabled us to close new rental contracts covering a floor area of around 50,000 m², which represents 9% of office rental market in Madrid, in which Gmp s portfolio accounts for 3% of the total. The Company s occupancy rate at the close of the financial year was 90%. The leasing operation with Banco Sabadell should be highlighted, which doubled its space at the Castellana Norte business park, up to 16,000 m². This figure, together with 21,000 m² closed with Huawei in 2016, results in an occupancy rate of 84% at the business park and places it in an excellent position to deal with the expiry of the lease contract of its longstanding tenant, Vodafone, in In a market where there is a strong appetite for investment, high valuations and a major adjustment to yields over recent years, it is clear that Gmp identified the right moment in the cycle to intensify investment. As a result, the objective of the strategic investment plan was reached in 2015 and the value of assets surpassed 2 billion euros in 2017, 7.5% up on the previous financial year. The Company maintains its selective focus on nonopportunistic, long-term investments, both in new developments on land it owns and in value-added assets. In April 2017, Gmp acquired the building Manuel Cortina 2, occupied by Mapfre, covering a space of 16,383 m². This building has generated revenues since its acquisition to the end of the financial year and was pre-leased to Patrimonio del Estado before Mapfre left 15,141 m² free in December This leasing agreement was one of the biggest operations of the year in the office market in Madrid. As regards investment in new developments, significant progress was made in 2017 on construction work on Oxxeo, the project that was started in 2016 by the prestigious architecture firm Rafael de La-Hoz in Las Tablas. This singular, avantgarde building takes the load-bearing structure to outside, thereby leveraging the interior open-plan space without columns. This new building also incorporates the highest levels of sustainability and well-being for users. Special mention should also be made of the renovation of Gmp s two buildings on the Paseo de la Castellana, 81 and 77. In April of the last financial year, the former, Castellana 81, became the only building on the Paseo de la Castellana to hold the highest level of sustainability, Platinum LEED certification, and it has just been awarded the prize for best renovation by the AEO. We are confident that the focus on sustainability and innovation will drive significant progress in leasing this iconic building in Madrid over 2018, the centenary of its architect, Francisco Javier Sáenz de Oiza. In fact, by the close of the financial year, major advances had already been made, with 31% of the available floor space leased. As regards Castellana 77, full renovations were completed in May 2017, earning it the prize for best office architecture in Spain in the European Property Awards Architecture. Its complete transformation makes it stand out in the office landscape, as well as delivering high levels Gmp identified the right moment in the cycle to intensify investment of sustainability and comfort for occupants. This property has proved highly successful in the market, with 11,700 m² of floor area, 72%, leased by the end of the financial year. Further to Gmp s office rental business, the residential tourism development, Las Colinas Golf & Country Club, made an outstanding contribution to the Company s results over Revenues grew 85% year-on-year up to 30 million euros and the EBITDA tripled that of 2016, surpassing 12 million euros was a historic year for the development, not just because of these excellent results, which are the highest since it was opened 2010, but also for the many international accolades the resort has won for the third year running as Spain s Best Golf Course in 06 ANNUAL REPORT 2017 ANNUAL REPORT

5 MESSAGE FROM THE CHAIRMAN The group s LTV stood at 40.7%, as opposed to 42.3% for the previous financial year and recurring annual financial expenditure was halved down to 1.97% to initiate the WELL Building Standard certification process at the end of 2016, followed by Castellana 81 and Castellana 77, at the end of WELL is the first global certification focusing solely on human health and well-being and Castellana 81 aims to be the first WELL building in Spain in May In addition, both Castellana 81 and 77 achieved the top accessibility certification grade (DIGA). I would like to end by expressing my sincere gratitude from the Board of Directors to each and every one of you, for your support and confidence, and especially to the members of the Gmp team for their dedication, professionalism and commitment to the Company. Gmp has positioned itself as a pioneering property group in Spain, committed to the health and well-being of the people that work in its buildings the World Golf Awards and as Spain s Leading Villa Resort in the World Travel Awards. It also won the award for Europe s Leading Villa Resort in the latter. The Company s balance sheet, together with the current capital structure, places Gmp in a very solid financial position. At the close of 2017, the group s LTV stood at 40.7%, as opposed to 42.3% for the previous financial year, and, after refinancing the company debt in 2016 until 2023, recurring annual financial expenditure was halved down to 1.97%. Gmp s commitment to sustainability and energy efficiency, as a strategic pillar of the Company, has been backed by the fact that LEED certification has been awarded to most of its portfolio over the last 3 years. Further to sustainability, in 2017 Gmp has also positioned itself as the pioneering property group in terms of focusing on health and well-being of the occupants of its buildings. This commitment to people is manifest in the Company s recently renovated assets or new developments. For instance, Oxxeo is the first office building in Spain to install a dynamic lighting system adapted to people s circadian rhythms and was also the first in Madrid I would like to make special mention of the intense work on social actions aimed at supporting Intellectual Disability and Acquired Brain Injury developed by the Gmp Foundation in The Foundation supported 42 social initiatives through 17 projects and gained a high level of recognition and awards for its initiatives and achievements. After a highly satisfactory year, Gmp faces the future with optimism. In 2018, the Spanish economy is expected to grow around 2.6% and the outlook for the office market in Madrid is also positive. I am convinced that the Company will continue to grow in a sustainable way, creating value for shareholders, satisfaction for clients and consolidating its preeminent position in the office market in Madrid. The main challenges Gmp faces next year are reaching a high level of occupancy at Castellana 81 and Oxxeo, at income levels commensurate with the high quality and comfort standards for both properties, as well as continuing to move forwards in our pioneering people-centred focus by implementing innovative initiatives and cutting-edge technological solutions in our portfolio. Francisco Montoro Alemán Chairman - CEO 08 ANNUAL REPORT 2017 ANNUAL REPORT

6 KEY ASPECTS OF Milestones 1.2. Key data Castellana 77

7 1 KEY ASPECTS OF MILESTONES JANUARY Sale of the Puerto Somport 8 building. MARCH FEBRUARY Successful completion of the AENOR audit of the Integrated Management System for Quality, Environment and Health and Safety in the Workplace. OCTOBER Signing the lease contract for 8,030 m² in the Castellana Norte business park with Banco Sabadell. Recognition of the Castellana 77 building as Best Office Architecture Spain in the European Property Awards Architecture. Platinum LEED certification for the Castellana 81 building in the Core & Shell category. Adoption of a new Criminal Risk Management System and the approval of a Compliance and Code of Conduct Policy for the Gmp group. MAY Completion of the full renovation work on the Castellana 77 building. Renewal of EDP s lease contract in the Parque Norte business park. APRIL Acquisition of the Manuel Cortina 2 building. Start of marketing of the Oxxeo building and launch of an immersive 3D virtual tour with Oculus Rift technology, a pioneering tool in the real estate sector. NOVEMBER Signing of the first lease contract in the Castellana 77 building, for m² with Wework. Renewal of GFI s lease contract in the Parque Norte business park. Recognition of the Castellana 81 building with the 2017 Diga accessibility award. Recognition of Las Colinas Golf & Country Club as Spain s Best Golf Course in the World Golf Awards for the third year running Five-star DIGA Certification (DIGA = Distinction Indicating the Degree of Accessibility) for the Castellana 77 building. Gold LEED certification for the Condesa de Venadito 1 building in the Existing Building category. Recognition of the Eloy Gonzalo 10 building as the Best building renovation development in the 2017 ASPRIMA - SIMA awards. JULY Inauguration of the MEETING PLACE in Castellana 81. Completion of the adaptation of the Quality and Environment Management System to the new version of ISO Standards 9001:2015 and 14001:2015. JUNE Renewal of the lease contract with ADIF in the Titán 4 building. Five-star DIGA Certification (DIGA = Distinction Indicating the Degree of Accessibility) for the Castellana 81 building. SEPTEMBER Recognition of Gmp with the EPRA Best Practices Silver Award for excellence and transparency in financial communication. Recognition of Las Colinas Golf & Country Club as Spain s Leading Villa Resort, for the third year running and as Europe s Leading Villa Resort in the World Travel Awards. DECEMBER Signing of the lease contract for 15,141 m² in the Manuel Cortina 2 building with Patrimonio del Estado, the second largest lease transaction in the office market in 2017 in the area inside Madrid s M-30 ring road. Signing of the lease contract for 7,644 m² in the Castellana 81 building with the companies Savills Aguirre Newman and Elecnor. Signing of the lease contracts for m² in the Castellana 77 building with the companies Everis and Banco Santander. Increase in the scope of the joint venture for residential development set up in 2016, to respond to growing demand for home purchases at Las Colinas Golf & Country Club. Approval of a new procedures manual to prevent moneylaundering and terrorism financing for the Gmp group. 12 ANNUAL REPORT 2017 ANNUAL REPORT

8 1 KEY ASPECTS OF KEY DATA m 2016A 2017A OPERATING Occupancy rate at year end (1) 97.2% 90.0% Average rental ( /m 2 ) INCOME STATEMENT ITEMS Total revenues EBITDA Net profit BALANCE SHEET STATEMENT ITEMS GAV 1,903 2,046 Net debt Cost of debt at year end 1.98% 1.97% Adjusted LTV 42.3% 40.7% ICR 2.09x 3.77x EPRA RATIOS EPRA Earnings EPRA NAV 1,070 1,190 EPRA NNNAV 972 1,106 EPRA Net Initial Yield (NIY) (2) 5.4% / 4.5% 4.2% / 3.4% EPRA topped-up NIY (2) 5.5% / 4.4% 4.4% / 3.7% EPRA vacancy rate 2.6% 12.6% EPRA cost ratio (including vacancy costs) 20.0% 23.5% EPRA cost ratio (excluding vacancy costs) 19.5% 20.6% (1) Calculated on the basis of available space (in 2016A this excludes space being refurbished: Castellana 81 and Castellana 77) (2) Calculated on the basis of rents for the last 12 months / Calculated on the basis of passing rent. Luchana 23 - Gmp headquarters 14 ANNUAL REPORT 2017 Castellana 81

9 THE COMPANY Mission, vision and core values 2.2. Business areas: strategy and business model Core business: property-owning business Other businesses: residential tourism development 2.3. Management team 2.4. Company structure 2.5. Financial structure Castellana 81

10 2.1. MISSION, VISION AND CORE VALUES Gmp s mission, vision and core values focus on meeting the Company s strategic objectives and consolidating its position as a leader in the property market. MISSION Property-owning developer and investor in premium offices in Spain, which delivers high levels of satisfaction to clients and partners through sustainable business management. VISION To be the benchmark office property-owning developer and investor in Spain through the ability to attract and retain clients, anticipate market trends, optimise value and provide liquidity. STRATEGIC VALUES Quality. Client-led. Responsibility in all its human, social, environmental and corporate dimensions. Innovation. Commitment. Lobby Castellana 81 ANNUAL REPORT

11 2 THE COMPANY 2.2. BUSINESS AREAS: STRATEGY AND BUSINESS MODEL Gmp s business model concentrates on the following: Clear property-owning focus. Specialisation in the high-end office and business park segment in Madrid. This means Gmp s core business centres on the offices and business parks it owns in Madrid. In addition, and on an occasional basis, it operates in the residential tourism sector through the resort it owns. Active management of its assets CORE BUSINESS: PROPERTY-OWNING BUSINESS Gmp stands out for the vertical integration of its propertyowning business model with a 360 focus. This is possible thanks to its strong track record in terms of investment, technical and management capabilities. Luchana 23 - Gmp headquarters Investment capability: acquisition, rotation and land management Gmp s investment activity includes land and existing ties to complement its own development portfolio, ensure Management Capability 6 - Asset Management 7 - Commercialisation Property-owning Business Model specialised in Offices and Business Parks Investment Capability 1 - Adquisition 2 - Rotation 3 - Land Management buildings. Over the years, Gmp has known how to identify and position itself in advance in the business expansion areas in Madrid that have the greatest potential. From the 1980s, it gradually began to acquire strategic land plots for future third-party developments in north Madrid, which the Company has managed from the outset and where three business parks have been developed, covering a total area of 183,188 m². As is indicated in the next section, in 2016 Gmp started to develop a new office building, Oxxeo, on one of its plots for urban development in Las Tablas. This work is expected to be completed in mid satisfactory returns, have strong prospects and capitalize on the added value of its specialised management. In 2017, the Company acquired the Manuel Cortina 2 building in Madrid, with an area of m² occupied by Mapfre. The building was pre-leased to Patrimonio del Estado before Mapfre vacated 15,141 m² at the end of the year. This was one of the largest lease transactions in the Madrid office market in Gmp s investment activity is combined with the rotation of mature or non-strategic assets aimed at enhancing the efficiency and quality of its portfolio through new investments or developments. In 2017, the Company sold the Puerto Somport 8 building in the district of Las Tablas in Technical Capability It is currently managing its own land bank with 65,105 m² in buildable area for new office projects in Valdebebas, Madrid. 4 - Renovation 5 - Development Las Rozas and Las Tablas. Moreover, its experience and in-depth knowledge of the segment in which it operates enable it to identify and leverage investment opportuni- 20 ANNUAL REPORT 2017 ANNUAL REPORT

12 2 THE COMPANY Technical capability: renovation and development Gmp is one of the pioneering development groups with the most experience in Spain in the development and renovation of offices and business parks. Its technical capacity enables it to be involved in each project from its inception, guarantees high quality standards, minimizes the risks arising from deviations in costs and deadlines and guarantees optimal adaptation of the end product to market demand and, by extension, marketing success. Gmp has experience in turn-key developments aimed at company head offices and in multi-tenant buildings and business parks. The group s development business includes new developments with land acquired and managed by Gmp to this end and complete renovation of pre-existing buildings, mainly in prime areas which are already consolidated. In May 2017, Gmp completed an ambitious renovation of Castellana 77, a state-of-the-art building in terms of sustainability, whose emblematic aesthetics have made it a point of reference in Madrid s urban landscape. The building received the award for Best Office Architecture Spain in the European Property Awards Architecture. In December 2017 refurbishment was started on the Manuel Cortina 2 building. It is expected to be completed in the summer of 2018 and will subsequently be occupied by its new tenant, Patrimonio del Estado. In relation to new developments, in 2017 Gmp continued with the building of Oxxeo, an office building with a sustainable, cutting-edge design from the renowned architect s studio Rafael de La-Hoz, located on one of the plots for urban development in Las Tablas. With an area of 14,299 m² on five floors above grade and 450 garage spaces below grade, the property aims at the highest qualifications for sustainability, environment, accessibility and health and safety, and at the well-being of its tenants. At the time of preparing this report, Gmp is undertaking the renovation of the last five floors of the emblematic Castellana 81 building. This was started at the beginning of 2018, after its historic tenant, BBVA, left at the end of The 6,500 m² comprising this space constitutes one of the most exclusive, exceptional offers in the Madrid office market. Castellana 81 was recently recognized by the AEO (acronym for Asociación Española de Oficinas Spanish Office Association) with the 2017 award for the best renovation. As part of its management and aligned with its customerled focus, Gmp provides a full design service to fit out office spaces for tenants through IN-PLANIA. This service prioritises optimisation of space, the comfort of occupants and environmental sustainability. Gmp conducts annual satisfaction surveys on all its clients. The overall results obtained have displayed a high level of satisfaction year after year, from tenants who see Gmp as a company that is serious, professional, responsible and committed to continuous improvement. Titán 4 Specifically, in 2017 the score was 4.1 points out of 5. Gmp adopts a clear customer-driven approach to management, positioning it as one of the property-owning real estate groups with the highest levels of customer retention, occupancy and satisfaction in the market. Gmp is the only property owning real estate group in Spain with an integrated management system for Quality, the Environment and Health and Safety in the Workplace certified by International Standards ISO 9001, and OSHAS Management capability: property commercialisation and management The asset management of all buildings owned by Gmp is carried out by a highly committed and customer-led team of professionals. The commercial team focuses on fostering customer loyalty, both by renewing rental contracts and promoting vacant space. In 2017 Gmp renewed 47,000 m² and signed 28 new lease contracts for 49,569 m². The following transactions are worth highlighting: The lease of 8,000 m² to Banco Sabadell prior to the expiry of the contract with Vodafone, which is in force until The pre-lease to Patrimonio del Estado of 15,141 m² in the Manuel Cortina 2 building, before its previous tenant Mapfre leaves this same space. This lease was the second-largest transaction in Madrid inside the M-30 ring road. The marketing of 11,700 m² at Castellana 77, where renovation was completed in May This implied that the building had an occupancy rate of 72% at the end of the year. The Head of Client Management and his team are playing a key role in efficiently resolving incidents and in anticipating clients needs. All the properties managed by Gmp have a Property Manager and an on-site Facility Manager. 90% Occupancy at the end of ,000 sq m Renewed office space in ,000 sq m Rented office space in out of 5 Customer satisfaction level 22 ANNUAL REPORT 2017 ANNUAL REPORT

13 2 THE COMPANY OTHER BUSINESSES: DEVELOPMENT OF RESIDENTIAL TOURISM Apart from its core property-owning business in office space, Gmp owns and manages a 330-hectare residential tourist development near the coast, south of Alicante: Las Colinas Golf & Country Club. It comprises bespoke villas, apartments and plots of land for sale, as well as extensive sports and leisure amenities and a range of accommodation and restaurants. It features an 18-hole championship golf course and a private beach club on the seafront. It operates through three companies owned by Gmp: Colinas Golf Residencial SL, Colinas Green Golf SL and Campoamor Sun & Beach SL. Colinas Golf Residencial SL owns the Golf & Country Club s residential land. Its core business consists of marketing the land to other developers and developing homes for sale to end users. It performs the function of Master Developer, ensuring that the different residential projects meet the resort s strict quality and design standards. To this end, it applies a rigorous procedure to approve them before building is undertaken. Colinas Green Golf SL is the company which owns the golf course and the facilities at the clubhouse and in its immediate surroundings. The course, designed by Cabell B. Robinson, is one of the best in Continental Europe according to the ranking of the prestigious British publication Your Golf Travel. In 2017 it was recognized for the third year in succession as the best course in Spain in the World Golf Awards. It is managed by the world leader Troon Golf. It operates with the pay & play system, with a limited number of memberships renewable every year. In 2017 more than 42,000 games were played, with a green fee way above the average for the area. Lastly, Campoamor Sun & Beach SL owns the Golf & Country Club s hotel land, which is as yet undeveloped, and the beach club located in Campoamor, on the seafront at La Glea beach, some 10 kilometres from Las Colinas. In addition, Las Colinas Residences manages the resort s supply of accommodation, a selection of exclusive apartments and villas. The homes are fully equipped and their clients benefit from a wide range of services and mixed packages of accommodation and golf. In 2016, in response to growing demand from European clients, it intensified its development business through a joint venture with a local developer, with a view to the development and sale of 56 apartments. In 2017 the scope of this project was extended to include the development and marketing of a further 260 apartments. The total number of homes sold at Las Colinas Golf & Country Club in 2017, by both Colinas Golf Residencial SL and the other developers owning land, was 75 units: 48 villas and 27 apartments. Of the total of 1,671 homes projected at the Golf & Country Club, 298 had been sold and delivered at the year-end, 121 had been sold with different degrees of progress and 355 were under development and marketing. Las Colinas Golf & Country Club s master plan includes three plots for commercial use in different locations. They are also owned by Colinas Golf Residencial SL. 24 ANNUAL REPORT 2017 Las Colinas Golf & Country Club

14 2 THE COMPANY Las Colinas Golf & Country Golf Masterplan Natural park Mediterranean woodland Meeting Center San Miguel de Salinas Practice golf course Mini Market Clubhouse sports area Canyon entrance to Las Colinas CV-941 Sea at 4,5 km Campoamor (10 minutes to Las Colinas Beach Club) Mountain Bike trail Nature trail Las Colinas Short Game Facility designed by Miguel Ángel Jiménez Mediterranean river bed Las Colinas Golf & Country Club Natural park Natural protected area 18-hole championship golf course Plots and uses OWNER COMPANY USE PLOT SURFACE sq m BUILDABLE AREA sq m THIRD PARTIES RESIDENTIAL 453, , UNITS COLINAS GOLF RESIDENCIAL S.L. RESIDENTIAL 562, , COMMERCIAL 12,167 3,250 3 different commercial locations RESIDENTIAL USE HOTEL USE 574, , Land sold Built and delivered Under development CAMPOAMOR SUN & BEACH S.L. HOTEL 50,401 25, rooms approximately Land at Las Colinas Golf & Country Club COLINAS GREEN GOLF S.L. GOLF 1,012,057 6,000 Built and sold to end clients Under development Future development COMMERCIAL USE PUBLIC PROPERTY LAND CEDED PUBLIC USAGE 26,915 2,000 TOTAL URBAN DEVELOPMENT PLAN 2,118, ,620 1,671 (1) (1) Residential units. 26 ANNUAL REPORT 2017 ANNUAL REPORT

15 2 THE COMPANY 2.3. MANAGEMENT TEAM Gmp has a management team comprising specialised professionals with extensive experience and in-depth knowledge of the property market. The Company is managed by this group of experts through the Executive Committee and Steering Committee. Both bodies aim to project Gmp towards the future by taking decisions that are feasible and sustainable in the short, medium and long term. EXECUTIVE COMMITTEE Francisco Montoro Chairman and CEO Antonio Montoro Vice-president Ricardo Montoro Vice-president Xabier Barrondo Business General Manager José Luis García de la Calle Corporate General Manager STEERING COMMITTEE Xabier Barrondo Business General Manager José Luis García de la Calle Corporate General Manager Diego Valiente Head of Property Assets Juan García Head of Technical Property and IN-PLANIA Silvia Llanes Head of Residential, Marketing, Quality and Innovation Jorge Calvo CFO Antonio Gil Head of Legal José Luis García de la Calle Head of HR Cristóbal Guerrero Head of Las Colinas Golf & Country Club 28 ANNUAL REPORT 2017 Lobby Génova 27

16 2 THE COMPANY 2.4. COMPANY STRUCTURE Gmp Property SOCIMI S.A. Castellana 81 Iberia Mart I y II Alcalá 16 Hermosilla 3 Génova 27 Goya 14 Luchana 23 Eloy Gonzalo 10 Parque Norte Castellana Norte Oxxeo Manuel Cortina 2 Land bank Campoamor (Two parking spaces) PROPERTY-OWNING BUSINESS SUBSIDIARIES SUBSIDIARIES FOR OTHER BUSINESS Hermosila 3 100% Engage Inversiones 2014 S.L. Castellana 77 RESIDENTIAL TOURISM DEVELOPMENT Land El Ejido OTHERS 100% Gmp Nueva Residencial S.A. 100% IN-PLANIA Espacios Eficientes S.L FINANCIAL STRUCTURE 100% Renta Apartamentos S.L. Condesa de Venadito 1 100% Renta Gestión Fuencarral S.L. Llano Castellano 51 Barajas 1 100% Inmoaccess S.L. Titán 4 100% 100% Colinas Green Golf S.L. Golf course (Las Colinas Golf & Country Club) Campoamor Sun & Beach S.L. Beach Club Hotel plot of land (Las Colinas Golf & Country Club) On 22 June 2016 Gmp signed a new syndicated loan for 755m with a pool of 13 banks. This loan replaced in advance the previous one for 740m, signed on July 2007 which terminated in July This new loan comprises 3 tranches: Tranche A: 525m, with a mortgage guarantee for some of Gmp s real estate assets and bullet repayment in 7 years. Tranche B: 200m, with a mortgage guarantee, with annual amortization -except the first 2 years of grace worth 25m were cancelled, ii) the shareholder GIC made a payment of 88m corresponding to the last amount pending in the framework of its investment agreement with Gmp and iii) hedging portfolio was cancelled, resulting in a non-recurring financial cost of 55m. Refinancing brought a considerable reduction in financial expense. Financial year 2017 was the first year when the Company saw the benefits of the better terms of the syndicated loan throughout the whole year. The Group s financing cost at the year-end was of 1.97% and its average maturity is 5.4 years. 100% Edificio Velázquez 164 S.L. Parking space 100% Colinas Golf Residencial S.L. Land for residential and commercial use (Las Colinas Golf & Country Club) period- and repayment in 5 years with 55% amortization due that year. This tranche is extendable annually with prior approval from the banks for up to 2 further years. Tranche C: Credit line of 30m, without a mortgage guarantee and bullet repayment in 5 years. This tranche In financial year 2017, net debt remained similar to the 2016 level of 805m. Apart from this syndicated loan with 725m drawn down, the Group has bilateral loans with 152m drawn down. 50% Apartamentos UMA S.L. Joint venture development is extendable annually, with prior approval from the banks for up to 2 further years and is undrawn at the current time. In the context of refinancing: i) several bilateral loans 30 ANNUAL REPORT 2017 ANNUAL REPORT

17 2 THE COMPANY Key financial data m 2016A 2017A AMOUNTS Gross debt Syndicated loan Bilateral loans Cash and equivalents (70) (72) Net debt Undrawn balance COST Cost of debt at closing (%) 1.98% 1.97% % debt at fixed or covered rate 70% 70% Recurring cost MATURITY Average maturity (years) MEETING PLACE Castellana 81 INDEBTEDNESS RATIO Adjusted LTV 42.3% 40.7% Financing breakdown Debt amortization schedule 2017 ( m) 17% Bilateral loans 17% Bilateral loans m Gross debt m Gross debt % Syndicated loan 83% Syndicated loan >2023 Syndicated loan Others 32 ANNUAL REPORT 2017 ANNUAL REPORT

18 3BUSINESS PERFORMANCE IN THE FINANCIAL YEAR 3.1. Consolidated figures Income statement Valuation of portfolio 3.2. Core business: property-owning business Description of client portfolio Occupancy Average rental revenue Projects/Investments EPRA ratios 3.3. Other businesses: residential tourism development Lobby Iberia Mart I

19 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR 3.1. CONSOLIDATED FIGURES INCOME STATEMENT In 2017 revenues amounted to 114.1m, which was a 21.9% increase on the previous year s figure of 93.6m. EBITDA totalled 65.5m in the period, a 26.5% increase on the 51,8m of In the office property-owning business, revenues and EBITDA rose by 8.8% and 11.9% respectively, as a result of greater occupancy of the multi-tenant buildings, mainly Génova 27, Parque Norte and Condesa de Venadito 1, and of the acquisition of the Manuel Cortina 2 building, which started to generate revenues from the very moment it was purchased in April These results were achieved despite the reduction in revenues in 2017 from the Puerto Somport 8 building, which was sold in January. In respect of the other activities in the property-owning division: of 85% on the 16m in revenues the previous year. EBITDA grew substantially, rising from 4.1m to 12.1m. The main reason for this was the extension of the 50/50 joint venture set up in 2016 with a local developer for the development and sale of 56 apartments, which in 2017 acquired land for the development of a further 260 apartments. In the office fit-out business, IN-PLANIA, since there was a change in this business division s strategic focus two years ago, when it decided to prioritize providing internal services in improvement and renovation work for Gmp s portfolio and carrying out fitting-out work for the Company s tenants, over providing services for third parties. The figures from this business do not reflect intragroup revenues and, consequently, are insignificant. Performance of revenue and EBITDA by business area Condesa de Venadito 1 Las Colinas Golf & Country Club s residential business, including real estate development, the golf course, the accommodation business and others, generated total revenues of nearly 30m in 2017, which was an increase ` A 2017A %var. TOTAL REVENUE , % Property-owning business 77,410 84, % Offices 59,688 63, % Car parks 5,463 6, % Other revenue 12,259 14, % Other businesses 16,197 29, % Las Colinas Golf & Country Club 15,986 29, % IN-PLANIA % (-) Total operating costs (41,768) (48,553) 16.2% EBITDA 51,839 65, % Property-owning business 47,890 53, % Other businesses 3,949 12, % Las Colinas Golf & Country Club 4,108 12, % IN-PLANIA (159) (124) (21.9)% Luchana 23 - Gmp headquarters ANNUAL REPORT

20 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR VALUATION OF THE PORTFOLIO As of 31 st December 2017, the valuation of the portfolio, performed by an independent appraiser, amounted to 2,046m. The table below shows the breakdown of the valuation by asset type in 2017, compared to GAV performance in : breakdown by type of asset m 2016A 2017A %var. %var. like-for-like Office portfolio 1,735 1, % 3.1% (1) Land bank (25.0)% (2.5)% (2) Las Colinas and others (11.4)% 2.8% (3) Total 1,903 2, % 5.3% (4) The 2016 figures include the valuation of an asset sold during the year: Puerto de Somport, 8. In contrast, the 2017 figures include the valuation of an asset acquired during the year: Manuel Cortina 2. This explains the need to show a like-for-like comparison, which gives growth of 5.3%. In addition, another three aspects should be explained: First, in the valuation of the office portfolio, the valuations of Castellana 81 and Castellana 77 increase as a result of the investments in renovation (capex) and, consequently, the figure is not comparable with the previous year. In 2016 the land bank included the value of the plot for the construction of the Oxxeo building. In 2017 the value of the asset began to be considered in the office portfolio, although the increase in value is not considered for likefor-like purposes, as investments (capex) are made. Additionally, there is a reduction in the absolute value of Las Colinas Golf & Country Club, as plots were sold in The comparable value in /m 2 t increases by 2.8%. The chart below provides greater detail of the evolution of the valuation. Note: The decrease in the value of Las Colinas and others is due to land sales at Las Colinas. (1) Excluding developments, renovation, acquisitions and divestments. (2) Excluding the Oxxeo plot, which started to be developed, from the value of the 2016 land bank. (3) Change in the valuation of Las Colinas Golf & Country Club in /m 2 t. (4) Excluding acquisitions and divestments. Evolution of the comparable GAV ( m) (10) (41) 86 (2) 143 Total variation (increase) GAV 2016A Like-for-like offices Offices divested Offices acquired Offices renovated Like-for-like land Land development Residential and other GAV 2017A Infographic of the future rooftop terrace in the Oxxeo building ANNUAL REPORT

21 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR 3.2. CORE BUSINESS: PROPERTY-OWNING Breakdown of tenants by business sector (rental revenue) DESCRIPTION OF THE CLIENT PORTFOLIO Legal 11% Gmp develops a property-owning business model based on long-term leasing contracts with companies that have a strong track record of financial solvency and operate in a broad range of sectors. Moreover, historically it achieves high renewal figures as a result of client satisfaction with the quality, services and management of buildings leased. In general, Gmp s aim is to sign contracts for the longest possible time period. As of 31 December 2017, more than half the existing rental contracts had an end date of above five years. As of 31 st December 2017, more than half the lease contracts in force expired in more than five years. Industry and energy Public Administration 13% 13% 28% Telecom, ICT and Consulting Gmp s top 20 tenants Finance and Insurance 15% 20% Other services Termination dates for rental contracts by year (% sq m expired) Average expiry Mandatory period: 4.2 years Contracts: 5.7 years 38% 18% 13% 13% 9% 8% ANNUAL REPORT 2017 ANNUAL REPORT

22 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR OCCUPANCY Financial year 2017 was characterized by intense commercial activity as contracts for some 41,500 m² were signed. Outgoing tenants accounted for around 24,500 m², giving positive net absorption of 17,000 m². Moreover, contracts representing 47,000 m² were renewed, with some 8,000 m² of these tacit renewals. As a result of this, occupancy rose from 85% in 2016 to 90% in The chart below shows the detail of the evolution of occupancy of the Group s portfolio in financial year Evolution of occupancy in Gmp s office portfolio in 2017 (000 sq m) Occupancy rate Total: 85% Of total area available: 97% Occupancy rate Total: 90% Of total area available: 90% 54 (72) (9) 38 Manuel Cortina 2 47 The largest tenant movements include the following: December 2016 Potential departures Renewals New contracts Acquisitions Divestments December 2017 Occupied Vacant Incoming tenants: Patrimonio del Estado at Manuel Cortina 2. Savills Aguirre Newman and Elecnor at Castellana 81. Wework and Everis at Castellana 77. Although it is not shown in the chart, in 2017 a contract for increased space of some 8,000 m² at Castellana Norte was signed with Banco Sabadell. What is unusual about this new contract is that it was for an asset currently fully leased by Vodafone. Consequently, Banco Sabadell replaces Vodafone in the space and no new square metres of occupancy are added. Including this contract, during the year incoming tenants accounted for nearly m². Renewals: ADIF at Titán 4. EDP and GFI at Parque Norte. Outgoing tenants: Mapfre and the other tenants at Manuel Cortina 2 on 31 st December 2017, as was agreed when the building was acquired. BBVA on the last five floors of Castellana 81 on 31 st December ANNUAL REPORT 2017 ANNUAL REPORT

23 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR The evolution of occupancy by location of the asset is broken down in the charts below. Occupancy rates are calculated on the basis of available space. Thus, in 2016 the space being refurbished, i.e. Castellana 81 and Castellana 77, are excluded. This is not the case in PROJECTS / INVESTMENTS CASTELLANA 81 Evolution of the occupancy rate by location As planned, the refurbishment of the exclusive floor for services at Castellana 81 was completed at the end of addition, in November 2017, it was the first emblematic office building in Spain to obtain the top five-star degree Inside M-30 Outside M This floor has an auditorium for 188 people with an adjoining area to hold events in, a centre with 8 meeting in the DIGA certification (DIGA = Distinction Indicating the Degree of Accessibility), for which it won the 2017 DIGA rooms, equipped with the latest technology, a physiotherapy accessibility award. 97.7% 96.8% 83.6% 97.8% service, showers and changing rooms. BBVA, Castellana 81 s historical tenant, remained on the top five floors of the building, between floors 24 and 28 until 31 st December When the tenant left, the renovation of this space was undertaken and will be completed in On the date of writing this report, Castellana 81 is at the final stage in the WELL Building Standard certification process. This is the first worldwide certification for buildings which focuses exclusively on people s health and well-being. It aspires to being the first building in Spain to obtain it in the In March 2017, Castellana 81 obtained the Platinum first four months of The Spanish Office Association, LEED Core & Shell certification and became the first office AEO, recently recognized Castellana 81 with the 2017 building in Paseo de la Castellana to achieve the highest award for the best renovation. level of sustainability, according to the LEED certification 2016A 2017A 2016A 2017A granted by the US Green Building Council (USGBC). In CASTELLANA 77 The integral renovation work on Castellana 77, of both certification process, with formalities for this expected to the office floors and the car park, was completed in be completed in the first half of AVERAGE RENTAL REVENUE FOR OFFICES May In 2016 the building had obtained the LEED Core & Shell pre-certification but during the renovation In October 2017, the property was recognized with more work was done than initially planned, with a view to the Best Office Architecture Spain in the The average rental revenue over 2017 was 17.2 /m², which is similar to the previous financial year. A breakdown of the evolution of average rental income is given below, depending on the location of the property. achieving the Platinum level, which we hope to obtain in the first half of European Property Awards Architecture. Evolution of average revenue by location ( sq m) Inside M-30 Outside M-30 In May 2017, Castellana 77 became the first office block to be awarded the top 5-star level in the DIGA certification (DIGA = Distinction Indicating the Degree of Accessibility) in the category of Environment Built after Moreover, like Castellana 81, it was one of the first properties in Madrid to enter the WELL Building Standard OXXEO In August 2016, Gmp started work on this new deve- As of 31 st December 2017, the structure and façade of lopment located in Las Tablas in the north of Madrid. the building had been completed. 2016A 2017A 2016A 2017A This district is one of the areas of the capital with the greatest business prospects, it is constantly growing and is home to a large number of major national and international companies. In October 2017, the show floor was completed to show to potential clients. On the date of writing this report, work is being done on interior finishes, on the development of the ground floor and the roof. The work is expected to be finished in June ANNUAL REPORT 2017 ANNUAL REPORT

24 3 BUSINESS PERFORMANCE IN THE FINANCIAL YEAR EPRA RATIOS 3.3. OTHER BUSINESSES: DEVELOPMENT OF RESIDENTIAL TOURISM Gmp has been an associate member of EPRA since 2016, when it adopted the association s recommendations A breakdown of EPRA Performance Measures is shown below. on best practices in reporting. EPRA Performance Measures 2016A 2017A INDICATOR BRIEF DESCRIPTION M /% /SHARE M /% /SHARE EPRA Earnings Earnings from operating activities Las Colinas Golf & Country Club performed very well in the year. For the third year running, this business line generated positive EBITDA, which rose from 4.1m in 2016 to 12.1m in Residential real estate is the core business and this includes the sale of land and homes under development. It should be mentioned that the performance described below is regarded from the standpoint of sales and margins following a sale principle, although the income statement by business presented at the beginning of this section follows the accounting principle. Sales revenues grew by 37.5% to reach 19.0m and the sales margin rose by 32.3% to reach 9.5m. Financial year 2017 was exceptionally good, mainly as a result of the increase in the scope of the joint venture which was set up in 2016 with a local developer. Revenues from operations, i.e. the golf business, hospitality and accommodation, grew by 8.6% to nearly 5.0m. EBITDA rose by 5.6% to 367k. EPRA NAV EPRA NNNAV EPRA Net Initial Yield (NIY) (1) Net Asset Value adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model EPRA NAV adjusted to include the fair values of (i) financial instruments, (ii) debt and (iii) deferred taxes Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers costs 1, , , ,4% / 4,5% 4,2% / 3,4% Key financial data on Las Colinas Golf & Country Club Residential development Sales revenues ( k) 19,019 13,827 Gross margin ( k) 9,543 7,213 EPRA topped-up NIY (1) EPRA vacancy rate This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents) Percentage that reflects Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio 5.5% / 4.4% 4.4% / 3.7% 2.6% 12.6% 2016A 2017A Operations (golf, restaurants and accommodation) Revenues ( k) 4,972 4, A 348 EBITDA ( k) 2017A 367 EPRA cost ratio (including vacancy costs) Percentage that reflects administrative & operating costs divided by gross rental income 20.0% 23.5% EPRA cost ratio (excluding vacancy costs) EPRA cost ratio excluding administrative and operating costs associated with unleased properties 19.4% 20.6% 2016A 2017A 2016A 2017A (1) Calculated on the basis of rents for the last 12 months / Calculated on the basis of passing rent. 46 ANNUAL REPORT 2017 ANNUAL REPORT

25 4COMPANY PORTFOLIO 4.1. Description 4.2. Office buildings 4.3. Land portfolio 4.4. Las Colinas Golf & Country Club Oxxeo

26 4.2. OFFICE BUILDINGS Parque Norte Gmp has a diversified portfolio of office buildings and business parks, comprising both single tenant and multitenant properties. The assets located inside the M-30 ring road have very heavy weight and account for 75% of the valuation. Most of them are in prime locations in Madrid s Central Business District (CBD). Between 2014 and 2017 Gmp conducted intense investment activity which brought a significant increase in area in its office building portfolio. At the end of financial year 2017, the value of the new buildings acquired in the period accounted for 22% of GAV and 28% of total area. As of 31 st December 2917, the Company had one asset under development: Oxxeo, an office building project located in Las Tablas. This asset under development accounts for 4% of GLA and 2% of GAV. On the same date, the two major renovations Gmp undertook at the end of 2015, Castellana 81 one of the assets in its historical portfolio and Castellana 77 acquired in the same year had been completed. Only the top five floors of Castellana 81 were still to be renovated, as they were occupied by BBVA until 31 st December Work on them started in January DESCRIPTION Gross Leasable Area (GLA): 382,443 sq m As indicated above, the valuation of the Company s port- 3% of total. Finally, the valuation of the residential port- folio as of 31 December 2017, carried out by an indepen- folio, mainly comprising the residential tourism develop- dent property valuer, amounted to 2,046m. It principally comprises office properties for lease, worth ment Las Colinas Golf & Country Club, is 75m, 4% of the total value of the Company s assets. Type Location Incorporation Status 1,909 billion, accounting for 93% of total. The value of land bank for future office developments stands at 62m, 71% Multi-tenant 29% Single tenant 54% Inside M-30 46% Outside M-30 72% Historical portfolio 28% Acquisitions % In operation 4% Under development Breakdown of the total GAV by type of asset Value (GAV): 1,909m Offices 93% 2,046m 3% 4% Land bank Las Colinas and others Type Location Incorporation Status Total GAV 70% Multi-tenant 30% Single tenant 75% Inside M-30 25% Outside M-30 78% Historical portfolio 22% Acquisitions % In operation 2% Under development 50 ANNUAL REPORT 2017 ANNUAL REPORT

27 4 COMPANY PORTFOLIO LOCATION OF PORTFOLIO OF OFFICES FOR LEASE IN MADRID. CBD / City Centre CBD / City Centre M30 North Madrid East Madrid 1 Alcalá 16 2 Goya 14 3 Hermosilla 3 4 Génova 27 5 Luchana A M40 6 Manuel Cortina 2 7 Eloy Gonzalo 10 8 Castellana 81 9 Castellana Orense 34 Iberia Mart I y II M30 13 M A2 11 Titán 4 North Madrid 12 Condesa de Venadito 1 13 Serrano Galvache 56 Parque Norte A5 11 A3 14 Llano Castellano 51 East Madrid Isabel Colbrand 22 Castellana Norte Puerto Somport 9 Oxxeo N A4 52 ANNUAL REPORT 2017 ANNUAL REPORT Trespaderne 29 Barajas 1

28 4 COMPANY PORTFOLIO ALCALÁ 16 A listed building by the architect Ricardo Bastida, in the monument category, considered to be of special interest by the Madrid Regional Ministry of Education and Culture. It was originally the headquarters of the Banco de Bilbao. It stands out for its impressive facade, with sculptures by Quintin de la Torre, as well as for the master craftsmanship of the stainedglass windows and murals in its central rotunda, created by Aurelio Arteta. The two monumental quadrigas that crown the towers were sculpted in bronze by Higinio de Basterra. Between 1975 y 1981, the architect Pedro Bidagor Lasarte extended the building into calle de Sevilla, respecting the architectural design of the original building and its main facade. It was fully renovated in YEAR OF CONSTRUCTION 1920 ARCHITECT Ricardo Bastida AREA 20,827 sq m PARKING SPACES 155 TENANTS Comunidad de Madrid BBVA YEAR OF REFURBISHMENT 2001 OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

29 4 COMPANY PORTFOLIO GOYA 14 A building with a distinctive glass front. The street where the building is located was planned in the 19 th century when the Marquis of Salamanca, who owned 100 hectares in the area, promoted developments to the north, east and west of the capital, creating the Salamanca district. It is one of the most distinguished, central districts of Madrid, which boasts architectural unity through the building facades and a high concentration of designer boutiques. In 2011, Gmp fully refurbished the seven floors of this building to enhance the natural light and functionality of the space. Since 2012, it has housed the headquarters of the National Court (Audiencia Nacional), encompassing the Court, Administrative Courts and the Labour Chamber. YEAR OF CONSTRUCTION 1976 AREA sq m PARKING SPACES 100 TENANTS Audiencia Nacional BBVA OCCUPANCY 100% (31 st December 2017) YEAR OF REFURBISHMENT 2011 CERTIFICATIONS Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

30 4 COMPANY PORTFOLIO HERMOSILLA 3 The only business campus in Madrid s prime district. It comprises two buildings and was designed by the Rafael de La- Hoz architecture studio, its design prioritises the optimisation of energy consumption, exploitation of natural light, work rationalization, innovation and environmental protection. Notable for its glass facade and the central atrium with skylight, as well as its interior garden linking the two buildings on campus. It is the head offices of the legal services firm Garrigues. The business campus holds Gold LEED certification in the Existing Building category, awarded by the US Green Building Council (USGBC). YEAR OF REFURBISHMENT 2006 ARCHITECT Rafael de La-Hoz AREA sq m PARKING SPACES 121 TENANT Garrigues OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS LEED Oro Existing Building Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

31 4 COMPANY PORTFOLIO GÉNOVA 27 Since it was erected in 1973, the building has become a landmark in an area where nineteenth-century or novecentista buildings predominate. It is the living expression of a contemporary reality that opened up in one of the most elegant districts in twentieth century Madrid. YEAR OF CONSTRUCTION 1973 ARCHITECT Estudio Lamela YEAR OF REFURBISHMENT 2005 The thorough refurbishment of Genova 27, undertaken by Gmp in 2005, was conceived by the Lamela studio, the same architectural practice that originally designed the building. This studio reinterpreted the building, giving the exterior greater transparency, leveraging natural light and reducing acoustic transmission. The building received a special mention in the third edition of the Gaceta de los Negocios Real Estate Awards in the category of property refurbishment. In 2016 an improvement plan was implemented to modernise the common areas and deliver higher levels of comfort to occupants and visitors. Such actions included the renovation of the main and floor lobbies and toilets. In 2017 the process of obtaining the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was started and is expected to be completed in Created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. AREA sq m PARKING SPACES 188 TENANTS BDO Engel & Völkers H&M ING VIPS Vivus Finance OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS LEED Oro Existing Building In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

32 4 COMPANY PORTFOLIO LUCHANA 23 This was the first office building developed by Gmp and has housed the Company headquarters since its inception. It laid the foundations of Gmp s business strategy as a specialised property-owning real estate group in the premium office segment in Madrid. The building has straight lines and is entirely freestanding, hence most rooms are exterior and receive plenty of natural light. During the period an improvement plan was implemented to modernise the common areas and provide greater levels of comfort for occupants and visitors. The actions developed include refurbishing the lobbies on the different floors, as well as the toilets. In addition, in 2016, the building was equipped with a new space that can be rented out for meetings in order to provide clients with a function room where they can hold events such as company meetings, courses, seminars, presentations or press conferences. It holds the Gold LEED certification in the Existing Building category, awarded by the US Green Building Council (USGBC). In addition, Gmp s headquarters on the seventh floor is one of only three offices in Madrid to have obtained the Platinum LEED certification in the Commercial Interiors category. YEAR OF CONSTRUCTION 1979 AREA sq m PARKING SPACES 124 TENANTS Comunidad de Madrid Gfk Gmp HDI Seguros Interbrand Ketchum OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS LEED Oro Existing Building In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS In 2017 the process of obtaining the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was started and is expected to be completed in Created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. 62 ANNUAL REPORT 2017

33 4 COMPANY PORTFOLIO MANUEL CORTINA 2 Gmp acquired the property in April Its 16,383 m² were occupied by Mapfre, who remained in the building until December 2017, when it vacated 15,141 m² which had been pre-leased to Patrimonio del Estado before this. This was the second-largest lease transaction in the Madrid office market inside the M-30 ring road in The renovation and refurbishment work started on the building at the end of 2017 and is expected to be completed by summer Manuel Cortina 2 a free-standing building constructed on straight lines. Its extensive façades giving on to the calles Manuel Cortina, Luchana, Manuel Silvela and Francisco de Rojas makes it prominent in its surroundings. YEAR OF CONSTRUCTION 1980 AREA sq m PARKING SPACES 355 TENANTS Mapfre Patrimonio del Estado OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

34 4 COMPANY PORTFOLIO ELOY GONZALO 10 Gmp acquired the property In July 2014 and started a comprehensive renovation programme immediately. The building was fully pre-leased nine months before the completion of the renovation work. The architect s studio behind the project was the renowned international firm Luis Vidal + Architects. Their project enhanced the functionality of the floors and introduced a concept of an open façade with large sections of floor to ceiling glass, which takes maximum advantage of natural light and reduces the acoustic impact. It holds the Gold LEED certification in the Core & Shell category, awarded by the US Green Building Council (USGBC). In 2016 Eloy Gonzalo 10 received the Best renovation award granted by the Asociación Española de Oficinas (AEO) (Spanish Office Association). In 2017, Eloy Gonzalo 10 won the Best building renovation development in the ASPRIMA- SIMA awards, which recognize the best projects and initiatives in the sector. YEAR OF REFURBISHMENT 2015 ARCHITECT luis vidal + arquitectos AREA sq m PARKING SPACES 136 TENANTS Grupo Havas Restaurante Perrachica OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS LEED Oro Core & Shell Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

35 4 COMPANY PORTFOLIO CASTELLANA 81 YEAR OF CONSTRUCTION 1981 YEAR OF REFURBISHMENT 2017 The property, a masterpiece of Sáenz de Oiza and Spanish 20 th century architecture, is situated in the most prime location in Madrid s central financial district and, after ambitious renovation led by Ruiz Barbarín Arquitectos, looks to the future as a symbol of sustainability, accessibility and technology. At the end of 2016, work was completed in the inside of the 23 floors of offices which BBVA had vacated a year earlier. Renovation of the last five floors crowning the building, occupied by BBVA until 31 st December 2017, was undertaken immediately after the tenant vacated it and will be completed at the end of They are one of the most exclusive offers in the Madrid office market and have been christened with the name of ROOFTOP 5. In 2017 the work on the service floor was completed. This floor includes an auditorium for 188 people, equipped with the latest technology and an ad hoc zone for holding events, 8 meeting rooms with cutting-edge amenities, a physiotherapy service, showers and changing rooms. In March 2017 Castellana 81 became the first building on Paseo de la Castellana to obtain the Platinum LEED certification in the Core & Shell category, the highest distinction possible granted by the US Green Building Council (USGBC). At the time of writing this report, it was still the only property to boast it. At the end of 2017, it obtained the five-star DIGA certification (DIGA = Distinction Indicating the Degree of Accessibility). As a result of this, Castellana 81 became the first emblematic office building in Spain with the highest degree of accessibility granted by the Shangri-La Foundation. For this reason, it was granted the 2017 DIGA Accessibility Award. ARCHITECT Francisco J. Sáenz de Oiza Winner of the Spanish Architecture Prize. Gold Medal for Merit in the Fine Arts Prince of Asturias Award for the Arts AREA sq m PARKING SPACES 407 TENANTS Elecnor Faborit HAYS Savills Aguirre Newman Teka OCCUPANCY 31% (31 st December 2017) CERTIFICATIONS LEED Platino Core & Shell In the WELL certification process DIGA 5-stars Integrated Management System: ISO 9001 ISO OHSAS In addition to the above, on the date of preparing this report, the property is at the final stage in the process of obtaining the WELL Building Standard certification in the category of Core & Shell. WELL is the leading world certification for buildings and focuses exclusively on people s health and well-being. Castellana 81 aspires to being the first WELL building in Spain. Moreover, Castellana 81 was recently recognized by the AEO (Spanish Office Association) with the 2017 award for the best renovation. 68 ANNUAL REPORT 2017

36 4 COMPANY PORTFOLIO CASTELLANA 77 Located in AZCA, Madrid s central financial district, Gmp acquired the building in February 2015 and started thorough renovation in October the same year, completing it in May Renovation of Castellana 77 was conducted by the renowned international firm Luis Vidal + Architects and implied the complete transformation of the original building because of its highly-representative sustainable cutting-edge design. In fact, in 2017 it won the Best Office Architecture Spain award in the European Property Awards Architecture. The architectural proposal for the façade is notable, as its object is not only aesthetics but also efficiency and sustainability, as it includes slats protecting it from direct sunlight. The slats can be illuminated at night and this emphasizes the prominence and visibility of Castellana 77 in its surroundings. The property obtained the Gold LEED pre-certification in the Core & Shell category in However, the renovation work added more projects than those originally planned in order to surpass the gold level of pre-certification and aim for the Platinum, the maximum granted by the US Green Building Council (USGBC). At the time of writing this report, the Platinum LEED certification is being finalized and should be completed in the first half of In addition, it was one of the first properties in Madrid to enter the WELL Building Standard certification process. This is the leading worldwide building certification that exclusively focuses on people s health and well-being. It will be one of the first buildings in Spain to obtain it. YEAR OF REFURBISHMENT ARCHITECT luis vidal + arquitectos AREA sq m PARKING SPACES 190 TENANTS Banco Santander Everis WeWork OCCUPANCY 72 % (31 st December 2017) CERTIFICATIONS Pre-certificación LEED Oro Core & Shell In the WELL certification process DIGA 5-stars Integrated Management System: ISO 9001 ISO OHSAS In 2017 the building received recognition with the Best Office Architecture Spain award in the European Property Awards Architecture. 70 ANNUAL REPORT 2017

37 4 COMPANY PORTFOLIO ORENSE 34 IBERIA MART I AND II COMPLEX It was the first World Trade Center in Madrid and the first business complex with a Paddle Tennis Club. It comprises two buildings and the robustness of its finishes and spacious common areas are worth highlighting. It includes a meeting centre accommodating 100 people. During the period , a comprehensive renovation plan was implemented in order to modernise the common areas and deliver higher levels of comfort to occupants and visitors. This included refurbishing the main lobby areas, as well as the lobby on each floor, the toilets, car park and meeting rooms. Both buildings hold the Gold LEED certification in the Existing Building category, awarded by the US Green Building Council (USGBC). In 2017, the process for obtaining the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was undertaken and is expected to be completed in Created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. YEAR OF CONSTRUCTION 1975 AREA sq m PARKING SPACES 469 TENANTS Altia Consultores FECYT Fox Lego Mantequerías Aria OCCUPANCY 95% (31 st December 2017) CERTIFICATIONS LEED Oro Existing Building In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

38 4 COMPANY PORTFOLIO TITÁN 4 Property acquired by Gmp in August Located in the Mendez Alvaro area, the building enjoys excellent visibility from the M30. It is a freestanding building, surrounded by a private garden area, with natural light on all four facades and fitted with a modern and innovative building access system. The building holds BREEAM ES In-Use certification, with a rating of Very good and Excellent for management. YEAR OF CONSTRUCTION 2008 AREA sq m PARKING SPACES 218 TENANTS Adif OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS BREEAM ES en Uso Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

39 4 COMPANY PORTFOLIO CONDESA DE VENADITO 1 Building acquired by Gmp in March It is a freestanding building, surrounded by a private garden area. It houses large office spaces that are full of natural light. Its straight and sober architectural lines, as well as its solid structure, stand out in its location, next to the M30 and Barcelona A2 highway, in an established business area with many representative buildings that serve as company headquarters. Between a comprehensive renovation plan has been implemented to enhance the block s functionality, distinctive aesthetic and the levels of comfort it delivers to occupants and visitors. Such improvements have included refurbishing the main lobby and floor lobbies and modernising the outside areas and full renovation of the facade that included replacing the windows. It holds the Gold LEED certification in the Existing Building category, awarded by the US Green Building Council (USGBC). In 2017, the process for obtaining the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was undertaken and is expected to be completed in Created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. YEAR OF CONSTRUCTION 1975 AREA sq m PARKING SPACES 440 TENANTS Basic Fit El Economista FeuVert Just Eat 20 Minutos OCCUPANCY 98% (31 st December 2017) CERTIFICATIONS LEED Oro Existing Building In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

40 4 COMPANY PORTFOLIO SERRANO GALVACHE 56 PARQUE NORTE BUSINESS CENTRE Built at the end of the 2000s, it was the biggest urban business park in Madrid and the first business city project that united technology with a privileged location. The architectural concept, designed by Rafael de La-Hoz, focuses on a spirit of unity. The six buildings are situated on the perimeter around a central area that serves as the heart of the complex. It includes a meeting centre accommodating 100 people which was refurbished in Between , improvement work was implemented on the main lobbies including the installation of a LED luminary skylight, new HVAC systems and revolving doors. The toilets were also fully refurbished. The business park holds the Gold LEED certification in the Existing Building category, awarded by the US Green Building Council (USGBC). In 2017, an action plan was implemented to increase the range of value-added services for the park s clients. These measures included the installation of a guided parking system, 13 points for recharging electric vehicles and free WiFi services in common areas. Also in 2017, the process for obtaining the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was undertaken and is expected to be completed in Created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. YEAR OF CONSTRUCTION 2001 ARCHITECT Rafael de La-Hoz AREA sq m PARKING SPACES 812 TENANTS AstraZeneca EDP Renováveis Lenovo Novartis Thales Vestas OCCUPANCY 100% (31 st December 2017) CERTIFICACIONES LEED Oro Existing Building In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

41 4 COMPANY PORTFOLIO LLANO CASTELLANO 51 It has straight lines and is located in north Madrid in the district of Fuencarral, situated in one of the main avenues that connects to the Paseo de la Castellana. The entire building is occupied by the Cortefiel Group, leading company in its sector. YEAR OF CONSTRUCTION 1990 AREA sq m PARKING SPACES 145 TENANT Grupo Cortefiel OCCUPANCY 100% (31 st December 2017) 80 ANNUAL REPORT 2017

42 4 COMPANY PORTFOLIO ISABEL COLBRAND 22 BUSINESS PARK CASTELLANA NORTE This is the first business park on the prolongation of Paseo de la Castellana. Designed for the company Airtel, now Vodafone, it was and continues to be Madrid s biggest prelease of a business park to a single customer. The park comprises four buildings, two linked by a large lobby on the ground floor, while the other two are detached. The large capacity, spacious interiors have an open plan design and are full of natural light. In 2017, a complete plan of improvement works was implemented. This included updating installations and the renovation of the development, the common areas, the car park and the roofs. In addition, refurbishment work was carried out on the space leased to Huawei in 2016, a lease which was largest lease transaction in the Madrid office market that year. Last year the property started the process to obtain the LEED certification, granted by the US Green Building Council (USGBC) and the DIGA accessibility certification (DIGA = Distinction Indicating the Degree of Accessibility) was undertaken and is expected to be completed in In respect of the latter, created by the Shangri-La Foundation, the certification considers functional diversity criteria - physical, sensory and cognitive so that anyone, whatever their condition, can move around the building easily and safely. YEAR OF CONSTRUCTION 2002 ARCHITECT Rafael de La-Hoz AREA sq m PARKING SPACES 799 TENANTS Banco Sabadell Huawei Vodafone OCCUPANCY 100% (31 st December 2017) CERTIFICATIONS In the LEED certification process In the DIGA certification process Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

43 4 COMPANY PORTFOLIO PUERTO SOMPORT 9 OXXEO YEAR OF CONSTRUCTION In 2016 Gmp undertook the development of a new office building on one of its plots in Las Tablas: Oxxeo. The work is expected to be completed in mid It is a free-standing building with innovative architecture which leaves the building s supporting structure in view, forming a large trellis which, in turn, serves to protect the façade from the sun. As a result of this, both natural light and the amount of space inside the floors is maximized. Moreover, Oxxeo has a roof equipped with two singles paddle courts, a track for jogging, an exercise area in the open air and a rest area. Conceived with environmental responsibility in mind, the building has already obtained the prestigious Platinum LEED Core & Shell pre-certification, the highest distinction possible granted by the US Green Building Council and has started the process to obtain the WELL Building Standard certification in the category of Core & Shell, which guarantees a model of design and construction that encompasses people s health and well-being. It has also undertaken the process to obtain the DIGA certification (DIGA = DIGA = Distinction Indicating the Degree of Accessibility) created and granted by the Shangri-La Foundation, which vouches for high accessibility levels for the disabled, the elderly and pregnant women. ARCHITECT Rafael de La-Hoz AREA sq m PARKING SPACES 450 TENANTS In development CERTIFICATIONS Pre-certification LEED Platino Core & Shell In the WELL certification process In the DIGA certification process Oxxeo aspires to becoming a benchmark of comfort in the Madrid office market. In this respect, it is the first office building in Spain with dynamic illumination adapted to people s circadian rhythms. 84 ANNUAL REPORT 2017

44 4 COMPANY PORTFOLIO TRESPADERNE 29 BARAJAS 1 Comprising two interconnected buildings, with a modern design, it stands out for the curved facade, giving the building a unique geometry. It is located in a well-established office district close to Adolfo Suarez Madrid-Barajas Airport and Campo de las Naciones Convention and Congress Centre and 15 minutes from the city centre. YEAR OF CONSTRUCTION 1995 AREA sq m PARKING SPACES 204 TENANTS Amara SGS Word Currier OCCUPANCY 89% (31 st December 2017) CERTIFICATIONS Integrated Management System: ISO 9001 ISO OHSAS ANNUAL REPORT 2017

45 4 COMPANY PORTFOLIO 4.3. LAND PORTFOLIO The Gmp group owns a land bank for office projects covering a buildable area of 65,105 sq m. This portfolio is located in strategic areas of north Madrid that have developed the most in recent years: Las Tablas, Valdebebas and Las Rozas, three new business districts carefully planned with the objective of creating quality spaces. Distribution of land portfolio per area and sq m of buildable area Area of Madrid Buildable area sq m Las Tablas 20,833 Valdebebas 31,284 Las Rozas 12,988 Total 65,105 Las Rozas Las Tablas Valdebebas Land available in Las Tablas 88 ANNUAL REPORT 2017 Land available in Valdebebas

46 4 COMPANY PORTFOLIO 4.4. LAS COLINAS GOLF & COUNTRY CLUB Las Colinas Golf & Country Club is an exclusive residential community with low density housing, built around an 18- hole championship golf course. Out of the 6,000 units permitted by the Local Planning Scheme, development of less than 1,700 is planned. The development spreads across 330 hectares of beautiful countryside, near the coast and south of Alicante, nestling in a valley surrounded by hills that form a natural barrier. This ensures the privacy of the resort, enhanced by a single access road with 24-hour security service. It is surrounded by a nature reserve covering over 10,000 hectares where no residential development is permitted. Las Colinas Golf & Country Club enjoys an exceptional climate; it is well connected by road, rail and air and is an environmentally friendly resort. It complies with a comprehensive plan of environmental protection and sustainable development measures drawn up by the Polytechnic University of Valencia and the homes, golf course and other facilities all blend harmoniously into the surroundings. Moreover, it boasts a 200,000 m² nature reserve, with scenic trails and indigenous vegetation. It offers comprehensive sports, leisure, accommodation and restaurant facilities, including the golf course and a private Beach Club on the seafront. There are over 20 golf courses and many sailing clubs and marinas less than half an hour s drive away. In 2017, for the third year running, Las Colinas Golf & Country Club won the World Travel Awards and World Golf Awards in the categories of Spain s Leading Villa Resort and Spain s Best Golf Course respectively. These two distinctions were accompanied by the Europe s Leading Villa Resort award, further consolidating its exclusive high-quality differential positioning. Las Colinas Golf & Country Club The golf course Key data on Las Colinas Golf & Country Club Area 330 hectares Residential buildable area 232,304 sq m Hotel buildable area 25,000 sq m Commercial buildable area 3,250 sq m Golf buildable area 6,000 sq m Homes planned 1,671 Homes sold, built and delivered at year-end Homes sold at the design/construction stage at year-end Managed tourist homes 2017* 31 *Las Colinas Residences: accommodation offer, including villas and apartments. Holes 18 Par 71, with par 3,4 and 5 holes Designer Cabell B. Robinson Management Troon Golf Rounds Golf academy, practice area, Las Colinas Short Game Facility by Miguel Ángel Amenities Jiménez, Clubhouse with restaurants UNiK CAFÉ and enso sushibar, a golf shop and changing rooms. Customer rating 4.5 out of 5 Spain's Best Golf Course Europe's Leading Villa Resort Spain's Leading Villa Resort TOP 100 GOLF COURSES IN CONTINENTAL EUROPE ANNUAL REPORT 2017 ANNUAL REPORT

47 5COMPANY STRUCTURE 5.1. Shareholders 5.2. Corporate governance MEETING PLACE Castellana 81

48 5.1. SHAREHOLDERS The share capital of Gmp Property SOCIMI S.A. is represented by 19,124,270 shares, with a nominal value of 0.492, fully subscribed and paid. As of 31 st December 2017, the shareholding structure is as follows: 0,3% Others BOARD OF DIRECTORS Francisco Montoro Chairman and CEO Antonio Montoro Vice president Ricardo Montoro Vice president Christopher Morrish (Euro Lily Private Limited) Member Sebastién Abascal (Euro Fairview Private limited) Member Fernando Vara Member Rafael Nebreda Secretary - Non Member 32,9% GIC 66,8% Montoro Alemán Family AUDIT COMMITTEE Alberto Terol President (external) EXECUTIVE COMMITTEE Francisco Montoro Chairman and CEO APPOINTMENTS AND REMUNERATION COMMITTEE Fernando Vara President The company s shares started trading on the Mercado Alternativo Bursátil - MaB in the SOCIMI segment as of July Ignacio O Dogherty Member (external) Julio Díaz-Freijo Member (external) Antonio Montoro Vice president Ricardo Montoro Vice president Christopher Morrish Member Marta Montoro Member Sebastién Abascal Member Xabier Barrondo Business General Manager Rafael Nebreda Member (external) José Luis García de la Calle Corporate General Manager STEERING COMMITTEE 5.2. CORPORATE GOVERNANCE Gmp has adhered to the highest standards in Corporate Governance throughout its history as a Company. The Board of Directors of the Company comprise four representatives from the Montoro Aleman family and two representatives from GIC Singapore Sovereign Wealth Fund. The Board of Directors of Gmp has set up an Auditing Committee and Remuneration Committee, which meet at least twice a year. These consultative bodies are led by independent professionals. Xabier Barrondo Business General Manager Diego Valiente Head of Property Assets Juan García Head of Technical Property and IN-PLANIA Silvia Llanes Head of Residential, Marketing, Quality and Innovation Cristóbal Guerrero Head of Las Colinas Golf & Country Club José Luis García de la Calle Corporate General Manager Jorge Calvo CFO Antonio Gil Head of Legal José Luis García de la Calle Head of HR ANNUAL REPORT

49 6CORPORATE SOCIAL RESPONSIBILITY 6.1. Human capital management 6.2. Innovation and sustainability as strategic values 6.3. Integrated management of quality, the environment and health and safety in the workplace 6.4. Gmp Foundation Las Colinas Golf & Country Club

50 6 CORPORATE SOCIAL RESPONSIBILITY 6.1. HUMAN CAPITAL MANAGEMENT Training and professional development Human capital is the key competitive advantage that organisations can leverage in order to create added value within a global market. Gmp is fully aware of the importance of attracting and retaining the best professionals and having motivated and committed employees. Ongoing improvement is only possible through employee engagement, as everyone working at the Company needs to feel and understand that their actions can help create and change reality. Information and Internal Communication Management Improving the management of information and internal communication is one the main challenges at Gmp. Our management teams and the HR department work on fostering and enhancing communication among all the members of the Company. Examples of initiatives that have been consolidated in 2016 are as follows: Fortnightly Company breakfasts, at which a group of six employees from different departments enjoy an informal breakfast with the Business and Corporate Managing Directors in order to strengthen the relationship between participants and share initiatives, action plans, concerns and proposals for improvements. Barometer briefings, at which the Business Managing Director and Managers of Assets, Marketing, Communication, Quality and Innovation, IN-PLANIA and Las Colinas Golf & Country Club gauge monthly progress towards attaining objectives and share this information with their teams by representing the advances made graphically on charts or barometers designed for this purpose. In addition, the reasons for any deviations from targets are analysed and improvement initiatives and action plans are proposed. The Human Resources department at Gmp focuses its efforts on optimising information management and internal communications, clearly defining the role, responsibilities and objectives of each member of staff, as well as fostering professional development and a work-life balance among employees. Presentations to all members of the organisation on the main projects being rolled out, successes achieved, acquisitions carried out, results of the operations and future projects. These presentations improve interdepartmental communication and help ensure that all employees are informed about the Company s strategy and are actively involved in meeting its objectives. Gmp conducts a three-year internal insight survey to find out the interests, concerns and ratings of the members of the organisation with regard to aspects relating to different areas in the Company. The findings for 2015 showed an overall satisfaction level of 80 out of 100 and the levels of motivation, employee engagement and identification with the strategic values and principles of Gmp were particularly high. Employee satisfaction will be measured again in For Gmp it is essential to identify and retain talent. In this respect, training is a key pillar in talent management. Seeking to support change and reinforce the Company s strategy, every year Gmp draws up a training plan with the aim of delivering value to the Company through professional development of staff members. The Training Scheme aims to enhance employees competences and optimize the effectiveness and use of the seminars and courses planned. In 2017 over 30 training courses were held with a view to improving social skills, computer skills, languages and technical aspects related to each post. Of the total workforce, 95% received training during the year. Moreover, in coordination with Gmp INnova, the Creativity in Business Project, a creative route towards innovative products or services project was developed. In this project, two groups of employees from different departments learnt and used techniques to encourage creative thought aimed at innovation, understood as conceiving new products, services or procedures which contribute added value. Both groups worked on practical cases with specific Equal opportunities and non-discrimination Human capital management at Gmp is based strictly on professional criteria and ensures that no employee is discriminated against for reasons of race, religion or creed, political and trade union beliefs, nationality, language, sex, marital status, age or disability. For years Gmp has strived to promote the inclusion of disabled people in the workplace. The goodwill and awareness of our staff help ensure that the integration of disabled workers is a success in 100% of cases. targets marked by Company Management, with very positive results. The Human Resources Department update job descriptions every year, adapting them to the changes which have occurred during the year. It works on identifying opportunities, analysing areas for improvement and developing skills which contribute to personal and professional growth. In 2017 the talent development programme, started in 2014 and aimed at the Company s key profiles, continued to be applied. The programme has a time horizon of 2-3 years and it was reviewed and updated in The programme is based on the training, development and retention of employees through specific training programmes, which help to improve their competences and provide the tools necessary to take on Gmp s new challenges. In this area, Gmp holds an agreement with the PRODIS Foundation to promote the inclusion of young people with intellectual disability in society and in the workplace and foster the development of social and work skills. Gmp has three employees with different disabilities on its staff. 98 ANNUAL REPORT 2017 ANNUAL REPORT

51 6 CORPORATE SOCIAL RESPONSIBILITY 6.2. INNOVATION AND SUSTAINABILITY AS STRATEGIC VALUES Innovation Innovation, as a strategic value which aims to anticipate market trends, has been part of Gmp s ADN from its very origins. A forward-looking real estate company in the development of business parks at the end of the 1990s, Gmp was known for its turn-key developments at the beginning of the 2000s. In fact, at the time Parque Norte was the largest urban business park in Madrid and the first business city project to combine last generation technology with a prime location. In 2009 Gmp was the first Spanish property-owning real estate company to obtain the triple AENOR certification for an Integrated Management System for Quality, the Environment and Health and Safety in the Workplace. Today it still occupies a distinctive position in the market. Since 2011 the Company has had a vehicle designed to foster innovation amongst all the members of its organization: Gmp INnova. This is an instrument that drives innovation at all professional levels and encourages the generation of ideas, the practical application of which brings improvements to products, services, processes and business approaches. Gmp INnova regularly communicates with all employees and invites them to think of and propose resultsoriented innovation projects. It establishes a work framework so that each innovator can support their project with evidence of the improvement its application brings. At the end of 2017, Gmp INnova had received 218 projects since it was launched, 47% of which were approved and, of these, 64% were implemented with quantifiable improvements. It is worth highlighting some innovations applied to the Gmp s buildings in 2017: The installation of an advanced guidance system using cameras at Parque Norte car park, which offers a high degree of security, efficient guidance and separate control of each parking space. Moreover, this system indicates the exact place where a vehicle is parked, using its registration number or the parking ticket. The architectural proposal for the façade of Castellana 77, whose object is not only aesthetics but also efficiency and sustainability, as it includes slats protecting it from direct sunlight. The slats can be illuminated at night and this emphasizes the prominence and visibility of Castellana 77 in its surroundings. The avant-garde design of the Oxxeo building which brings the supporting structure of the floors to the outside. This maximizes the efficiency of the spaces inside, which are open and without columns. The pioneering bid in Spain for people s health and wellbeing with cutting-edge initiatives, such as the installation of a dynamic lighting system adapted to people s circadian rhythms in the Oxxeo building and the start of the process to obtain the WELL Building Standard certification in the Core & Shell category at its buildings Castellana 81, Castellana 77 and Oxxeo. As regards the first of these initiatives, Oxxeo is the first office building in Spain with a system of illumination with dynamic lighting which makes it possible to change the temperature of the light (colloquially, light colour) during the day to correctly regulate the circadian rhythms of the people working in the building. In respect of the WELL certification process, Oxxeo was the first office building in Madrid to start this process, followed by Castellana 81 and 77. In fact, Castellana 81 aspires to becoming the first WELL office building in Spain. WELL is the leading world certification for buildings exclusively focusing on people s health and well-being and it is based on seven years of scientific, medical and architectural research. It is an innovative system founded by Delos and directed by the international WELL Building Institute (IWBI), which was started in It certifies that the model for the design, construction and operation of buildings integrates people s health and well-being. It is based on in situ verification of the building in seven different areas: air, water, lighting, nutrition, promotion of physical exercise, comfort and the mind. 100 ANNUAL REPORT 2017 Castellana 77

52 6 CORPORATE SOCIAL RESPONSIBILITY Sustainability In its Business Plan, Gmp set the target of promoting the sustainability of office buildings to a maximum, with sustainability understood in a broad sense, encompassing respect for the environment, the economic viability of the properties and comfort for the people using them. The target took material shape in obtaining the LEED certification for the office buildings in its historical portfolio under management and for the properties it renovates, whether they be buildings from its portfolio or new acquisitions. Granted by the US Green Building Council (USGBC), the LEED certification is the one with the greatest international prestige in evaluating the sustainable behaviour of buildings. This ambitious project was implemented at the end of 2013 and has involved a range of actions in the buildings, such as those aimed at reducing water and energy consumption, the optimization of the environment inside, the creation of parking spaces for efficient vehicles, for carpooling and cycles and the addition of specific measures in respect of the materials used and waste management in all the renovation and improvement work on the buildings. In 2016 five buildings and a business park in Gmp s portfolio - Génova 27, Iberia Mart I and II, Luchana 23, Hermosilla 3 and Parque Norte obtained the Gold LEED certification in the Existing Building category. The Eloy Gonzalo 10 building, acquired in 2014 and with renovation completed in September 2015, also completed the process of its Gold Core & Shell LEED certification in the first quarter of In 2017, the Castellana 81 building obtained the Platinum Core & Shell LEED certification, the highest distinction possible granted by the US Green Building Council (USGBC). As a result, it became the first and only Platinum LEED office building on Paseo de la Castellana. The same year, the Condesa de Venadito 1 building obtained the Gold LEED certification in the Existing Building category and the LEED certification process was undertaken for the Castellana Norte business park. Castellana 77, whose complete renovation was finalized in May 2017, has the Gold LEED certification in the Core & Shell category. At the time of writing this report, the certification process is being finalized and the building aspires to surpassing the gold level obtained in the precertification and positioning itself as the second platinum LEED building on Paseo de la Castellana, a level so far only achieved by Castellana 81, as we mentioned above, another building owned by Gmp. The Oxxeo building, the new development, has the Platinum LEED pre-certification. In addition to the above, in GMP s commitment to achieving the highest levels of comfort for the users of its buildings, in 2016 the Company started the DIGA (Distinction Indicating the Degree of Accessibility) and WELL Building Standard certifications for its Castellana 81, Castellana 77 and Oxxeo buildings. Infographics of work space at Oxxeo The first of the two certifications is granted by the Shangri-La Foundation and guarantees total accessibility to the buildings for the disabled, the elderly and pregnant women. In respect of this, Castellana 81 and Castellana 77 obtained the highest five-star DIGA degree and became the first office buildings in Spain to boast the highest degree of accessibility. In 2017 Gmp started the DIGA certification process for five buildings and two business parks in its portfolio: Luchana 23, Génova 27, Iberia Mart I and II, Condesa de Venadito 1, Castellana Norte and Parque Norte. In relation to the WELL certification, as mentioned above, Gmp was the pioneer in Spain in implementing it in its Castellana 81, Castellana 77 and Oxxeo buildings, which were the first in Madrid to undertake the process of obtaining this certification. At the time of preparing this report, Castellana 81 was at the last stage of obtaining the WELL Building Standard certification and aspires to being the first office building in Spain to obtain it in the Core & Shell category. Castellana 81 and Castellana 77 ANNUAL REPORT

53 6 CORPORATE SOCIAL RESPONSIBILITY 6.3. INTEGRATED MANAGEMENT OF QUALITY, THE ENVIRONMENT AND HEALTH AND SAFETY IN THE WORKPLACE The Integrated Management System for Quality, the Environment and Health and Safety in the Workplace, annually certified by AENOR according to the UNE-EN- ISO 9001:2015 Quality Management Systems, UNE-EN- ISO 14001:2015 Environmental Management Systems and OHSAS 18001:2007 Management Systems for Health and Safety in the Workplace Standards, evidence Gmp s commitment to ongoing improvement as the Company s strategic value and management model. Gmp feels responsible for providing the necessary human and material resources and for: Meeting the legal requirements and regulations and the needs of the client, whose degree of satisfaction is measured periodically. Taking appropriate measures to prevent harm and deterioration of workers and clients health through a department specializing in the Prevention of Risks at Work. This department manages the health and safety of employees and clients, complying with the applicable legal requirements and anything else needed to prevent risks to the health and safety of everyone interacting with Gmp. Knowing the internal and external questions that might affect the context of the organization and could compromise the development of Gmp s activity. Analysing and reviewing the needs and expectations of the interested parties who interact directly and indirectly with Gmp s activity and fostering good ongoing communication with these parties. Fomenting the development and well-being of staff. Promoting sustainable environmental management between workers, clients and suppliers. Preventing pollution and contamination and maximizing the favourable impact of the Company s activities on the environment. Gmp is the only Spanish real estate company to boast the triple certification from AENOR for an Integrated Management System for Quality, the Environment and Health and Safety in the Workplace. In 2017, Gmp completed the process of adapting the Management System for Quality and the Environment to the new version of the ISO 9001:2015 and ISO 14001:2015 Standards. At the time of preparing this report, Gmp had renewed the three certifications until 2021 and keeps its distinctive position. Gmp s integrated policy, a cornerstone of the Integrated System, establishes that Environmental Management, Quality and the Prevention of Risks at Work is the responsibility of each and every person in the company, and should be included in any activity they perform or order and in any decision they make. The integrated policy can be consulted on the Company s webpage The Integrated Management System for Quality, the Environment and Health and Safety in the Workplace provides the appropriate information and communication channels and processes for the system, the integrated policy and the Company s targets to be known, shared and met by all Gmp s workers. Trying to ensure improvement in productivity and competitiveness. ER-0313/2009 UNE-EN-ISO 9001:2015 Quality Management Systems SST-0083/2009 OHSAS 18001:2007 Management Systems for Health and Safety at Work GA-2009/0184 UNE-EN-ISO 14001:2015 Environmental Management Systems 104 ANNUAL REPORT 2017 Parque Norte

54 6 CORPORATE SOCIAL RESPONSIBILITY Quality management Environmental management Gmp s buildings are managed every day by a team of The installation of an intelligent guided parking system Very much aware of its responsibility in preserving Communicate the environmental information related to professionals who are highly committed and oriented at Parque Norte. the environment and in the use of natural resources, Gmp to the relevant interested parties. towards the client. The Property Manager, a new post created in 2017, acts as the interlocuter between the client and Gmp. The Facility Manager at each building or business park provides personalized attention and channels the effective solution to the requests of the companies located there. This person is responsible for managing all the work teams in the property: surveillance and security, hostesses, maintenance and cleaning staff. The replacement of air curtains with more efficient ones in the lobby of Alcalá 16. The finalization of the process of sealing the joints on the façade of Barajas 1. An increase in the range of value added services for clients through the creation of a new MEETING PLACE at Castellana 81 formed by an auditorium and eight meeting rooms. since 2009 Gmp has been using an Environmental Management System in accordance with the UNE-EN ISO 14001:2015 Standard in it office buildings and business parks. This System aims to: Protect the environment, through the prevention or reduction of adverse effects on the environment stemming from Gmp s activity. Foment and promote sustainable environmental management amongst its workers, clients and suppliers. The buildings are strictly monitored for measuring energy consumption and controlling the emission of gases into the atmosphere. In 2017 annual savings of 2.2% and 3.0% were achieved in electricity and natural gas consumption with respect to the previous year. All the buildings have a management system for the waste generated by clients paper, containers and organic waste and for the waste generated by the activity of the property itself - electric and electronic waste, The Client Manager is responsible for managing and coordinating the property and facility managers to optimize relations with clients. In line with its quality policy, every year Gmp conducts surveys to measure the satisfaction of all its clients. The global results obtained in the past show a high level of satisfaction. In 2017, this stood at 4.1 point out of 5. Clients find Gmp is a serious, responsible, professional The replacement of the perimeter fence at Condesa de Venadito 1. The replacement of the marble on pedestrian ramps with a stone anti-slip material at Parque Norte. Asphalting all the storeys in the car park at Luchana 23 and the ground floor of the car park at Condesa de Venadito 1. Maximize the well-being of the occupants of its buildings. Comply with legal and other requirements in environmental matters. Foment the improvement in environmental work. fluorescent lighting, oils, etc. Moreover, the buildings have a management system to control emissions to the atmosphere, waste and noise, and to optimize consumption of natural resources and raw materials. company that is committed to ongoing improvement. More specifically, the figure of the Facility Manager came out very well, with their availability, efficiency in resolving The installation of informative screens in the lifts at Castellana 81. Evolution of energy consumption at Gmp buildings incidents, treatment, amiability and contribution to clients day-to-.day improvement, and obtained a score of 4.5 out of 5 in The installation of a free WiFi service in the common areas of Castellana 81, Parque Norte and Iberia Mart I and II. 6,725 6,574 In compliance with Gmp s quality standards, conservation, maintenance and improvement plans and actions are developed every year. The Company fully assumes the A new Building Management System (BMS) with more features at Alcalá 16. 5,812 5, investments required to carry these out. Notable amongst the actions taken in 2017 are: The installation of a large screen, with information of interest to users, in the lobby of Castellana % -3.0% 0.8% Evolution of electricity consumption (Thousands of kwh) Evolution of natural gas consumption (Thousands of kwh) Evolution of water consumption (Thousands m 3 ) 106 ANNUAL REPORT 2017 ANNUAL REPORT

55 6 CORPORATE SOCIAL RESPONSIBILITY Management of the prevention of risks and health and safety in the workplace Every year strategies and actions to improve the environment at the buildings are planned, prioritized and implemented. Notable amongst the actions taken in 2017 are: The installation of a system for monitoring consumption at Condesa de Venadito 1. This permits more exhaustive control of energy consumption and, by extension, its optimization. The installation of an electronic external air filter system in the main air-conditioner at Luchana 23. This guarantees an improvement in air quality. The installation of leak detectors in the technical floor at Genova 27 so that immediate action can be taken if any water leaks should occur in the installations on this floor. The replacement of the gasoil boilers at Iberia Mart II with natural gas boilers. This eliminates the potential environmental risk of gasoil spillage and reduces CO 2 emissions. The replacement of all conventional lighting with LED on the external stairs, in gardens and street lights at Parque Norte. Gmp makes every effort to be a responsible organization that guarantees appropriate health and safety conditions in the workplace. This commitment takes material shape at all the buildings it owns in the form of a system of prevention of risks at work certified according to the OHSAS 18001:2007 Management Systems for Health and Safety in the Workplace Standard. Last year, Gmp implemented different actions in this field to benefit its clients, suppliers and employees, notable amongst which are: Drawing up and reviewing Self-protection Plans. The renovation and improvement of collective protection measures at several buildings, such as lifelines, banisters Training in first aid for Gmp s employees. Practical fire training for new members of the Company. The implementation of a voluntary flu vaccination campaign for all employees. Keeping evacuation times of occupants of the buildings in fire drills within the recommended limits. The installation of 13 recharging points for electric vehicles in Parque Norte. Drawing up the Firefighter Intervention Plan for Castellana 81. Evolution of evacuation and drill times at Gmp buildings Evacuation time (min) Drill times (min) Lobby Castellana 77 ANNUAL REPORT

56 6 CORPORATE SOCIAL RESPONSIBILITY 6.4. Gmp FOUNDATION One of the priority lines of action of the Gmp Foundation is to develop actions aimed at providing direct support, whether it be through economic contributions or help of a different kind, for non-profit organizations which need resources to improve the life of intellectually impaired people and/or people with acquired brain injury (ABI) in Spain. Following these premises, in 2017 the Gmp Foundation provided its support for 43 social entities, through 15 projects that in turn directly benefitted a total of 2,191 people. In the twelve months, the foundation met challenges that will undoubtedly occupy an exceptional place in the history of the organization. An example of this is the organization, in conjunction with Down España and the photographer Cuco Cuervo, of the XTuMirada exhibition, a powerful tool for raising awareness about the reality of people with Down syndrome in Spain. This exhibition toured the main Spanish cities throughout the year and was visited by more than 150,000 people. Of equal importance was obtaining the Corresponsables Award for the Best Campaign on Social Networks for #ElProyectoDeMiVida, a pioneering project for people with acquired brain injury. In 2017, the Gmp Foundation received two distinctions. First, during the Annual Fundraising Congress, organized by the Asociación Española de Fundraising, the 2016 edition of Grandes Ilusiones was recognized as the Best Fundraising Event. Second, #ElProyectoDeMiVida, the beneficiary of the 17th Paddle Tennis Tournament in Solidarity for Businesses, received the Corresponsables Award for the Best Campaign on Social Networks from amongst over 400 candidates from Spain and Latin America. 7 th Madrid Down Syndrome Foundation Race, sponsored by the Gmp Foundation The Gmp Foundation s Main Actions in 2017: Sponsoring the ninth edition of the Prodis Foundation s Extraordinary Lyrical Recital, aimed at supporting the social and labour market integration programmes for intellectually impaired people. One-year extension of the framework agreement signed by the Gmp Foundation and Plena Inclusión Madrid initially in 2014 to support their collaboration, in order to provide early treatment for children of 0 to 6 years of age who are intellectually impaired or at risk of this and whose families have scant economic resources. At the end of 2017, the Gmp Foundation s collaboration had enabled over 160 families to take part in this programme. Sponsoring the Cantando de Cine con Garrigou Choral-Symphonic Gala for the benefit of the Garrigou Foundation. At the concert, fragments of different soundtracks from the history of the cinema were performed, such as pieces from Star Wars, Indiana Jones, The Lord of the Rings and some Walt Disney films. For the seventh year in succession, sponsoring the Race organized by the Madrid Down Syndrome Foundation. About 5,000 people took part in the race to support the organization s Sport and Leisure programme, in which over 500 intellectually impaired people take part. In addition, as it did in 2016, in 2017 the Gmp Foundation sponsored Madrid Down s 2nd Duathlon in Solidarity, in which nearly 1,000 people participated. The 8 th Training Course on Planning, Fundraising and Communication for non-profit entities. A total of 54 professionals attended from 27 Spanish organizations working on intellectual impairment and/or acquired brain injury. Receiving the Corresponsables Award for the Best Campaign on Social Networks for #ElProyectoDeMiVida ANNUAL REPORT

57 6 CORPORATE SOCIAL RESPONSIBILITY The object of the course, organized by the Gmp Foundation in conjunction with Plena Inclusión Madrid and the Asociación Española de Fundraising is to strengthen non-profit entities capacities to make them more effective and efficient in accomplishing their mission. Renewal for another year of free office space in the building owned by Gmp Iberia Mart to house the headquarters of the Federación Española de Daño Cerebral FEDACE. Participation in the commemorative events of National ABI Day. In the framework of the Spanish Platform for Acquired Brain Injury, on 26 th October National ABI Day was commemorated and the DosCAras photography exhibition was opened, with the collaboration of Cuco Cuervo to take snapshots, and of ADIP and the SEUR Foundation. The exhibition could be viewed at the Puerta de Atocha and Chamartín railway stations in Madrid and the stations in Jerez de la Frontera and Cadiz in Andalusia. At the same time, as has repeatedly occurred in recent years, the Atlético de Madrid Foundation collaborated with the Platform by lending one of its players to run an awareness-raising campaign. This time, Gabi, the team s captain, was the player chosen. Organization of the XTuMirada exhibition, in collaboration with Down España and the photographer Cuco Cuervo, with a view to raising awareness about the reality of people with Down Syndrome. The exhibition, in which over a hundred celebrities participated, was opened on 21 st March, World Down Syndrome Day, in the Castellana 81 building, to later tour the majority of Spanish cities all year. The tour round Spain will continue in Delivering the money raised in the 18 th edition of the Gmp Foundation s Paddle Tournament for Businesses Providing meeting rooms in Gmp buildings free of charge for 12 social entities which work in the field of intellectual impairment or acquired brain injury, to hold 45 events, training sessions or work meetings, with total attendance of around 1,500 people. Sponsoring ASSIDO Murcia s 2018 Charity Calendar. This calendar, featuring intellectually impaired people of all ages, aims to show the daily life of these people and their families. Holding the 18 th edition of the Gmp Foundation s Paddle Tournament for Businesses, for the benefit of the associations APADIS and Antares and their plans to create a multisensory classroom and implement an adapted sports programme, both directed at people with serious intellectual impairment. A total of 48,150 euros was raised, thanks to the participation of over 40 companies and nearly 200 players. Publication, in collaboration with the Asociación Ayuda Afasia and the company Las Palabras Perdidas, of the Down España guides, aimed at improving the communication of people with Down syndrome with speech defects. Holding Murcia s 8th International Magic Festival Grandes Ilusiones, this time to support ASTEAMUR and its project to create an Early Treatment Centre for autistic children. A total of euros was raised with the support of sponsors and collaborators, and the solidarity of the people from Murcia who bought tickets. XTuMirada exhibition in the Castellana 81 building ANNUAL REPORT

58 7AUDIT REPORT AND FINANCIAL STATEMENTS Eloy Gonzalo 10

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62 Note: Audit report taken from the annual accounts for 2017.

63 7 AUDIT REPORT AND FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2017_(thousands of euros) CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2017_(thousands of euros) ASSETS EQUITY AND LIABILITIES NON-CURRENT ASSETS 2,020,226 1,820,373 Intangible assets Property, plant and equipment 25,977 25,179 Investment property 1,966,229 1,772,740 Non-current investments in group companies and associates 5,626 1,704 Non-current financial assets 16,647 11,781 Deferred tax assets 5,533 8,789 CURRENT ASSETS 118, ,883 Non-current assets classified as held for sale Inventories 24,658 29,869 Trade and other receivables 17,476 12,426 Current financial assets 5,534 20,530 Current prepayments and accrued income 3,676 3,576 Cash and cash equivalents 66,869 50,122 TOTAL ASSETS 2,138,439 1,978,256 EQUITY 1,117, ,112 SHAREHOLDERS EQUITY 1,114, ,480 Share capital 9,409 9,409 Share premium 27,852 27,852 Reserves 943, ,027 Profit (Loss) attributable to the Parent 133, ,192 VALUATION ADJUSTMENTS 2,806 (1,368) NON-CURRENT LIABILITIES 955, ,698 Long-term provisions 1, Bank borrowings 835, ,446 Derivatives - 1,368 Tenant deposits and other financial liabilities 13,472 10,484 Non-current payables to fixed asset suppliers 28,800 - Deferred tax liabilities 75,608 82,417 CURRENT LIABILITIES 66,151 36,446 Current payables 37,225 1,952 Trade and others payables 28,926 30,382 Current accruals and deferred income - 4,112 TOTAL EQUITY AND LIABILITIES 2,138,439 1,978,256 Note: Annual accounts drawn up applying International Financial Reporting Standards (IFRS) adopted by the European Union. The Company s Annual Accounts can be consulted on Gmp s webpage: Note: Annual accounts drawn up applying International Financial Reporting Standards (IFRS) adopted by the European Union. The Company s Annual Accounts can be consulted on Gmp s webpage: ANNUAL REPORT 2017 ANNUAL REPORT

64 7 AUDIT REPORT AND FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT FOR 2017_(thousands of euros) CONTINUING OPERATIONS Revenue 98,781 80,219 Changes in inventories of finished goods and work in progress (6,100) (3,598) Procurements (5,278) (2,958) Other operating income 15,923 15,078 Staff costs (8,310) (7,963) Other operating expenses (30,107) (28,283) Depreciation and amortisation charge (1,171) (1,151) Impairment and gains or losses on disposals of non-current assets 890 1,161 PROFIT FROM OPERATIONS 64,628 52,505 Finance income 146 1,014 Finance costs (19,777) (75,700) Gains or losses on changes in market value of assets 88, ,944 Impairment and gains or losses on disposais of financial instruments - 25 FINAL RESULTS 68, ,283 Result of companies accounted for using the equity method (410) (32) PROFIT BEFORE TAX 132, ,756 Income tax 639 (564) PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 133, ,192 CONSOLIDATED PROFIT (LOSS) FOR YHE YEAR 133, ,192 PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO THE PARENT 133, ,192 Note: Annual accounts drawn up applying International Financial Reporting Standards (IFRS) adopted by the European Union. The Company s Annual Accounts can be consulted on Gmp s webpage: ANNUAL REPORT 2017

65 PROPERTY FOCUSED ANNUAL REPORT grupogmp.com Gmp is committed to the preservation of the environment and the rational use of natural resources. This report is only available in digital form.