Beni Stabili Siiq: 9-Month 2018 Rents Pursuit of the good dynamic in Milan

Beni Stabili Siiq: 9-Month 2018 Rents

Pursuit of the good dynamic in Milan

Milan: 24 October, 2018

Good operating performance supported by Milan's portfolio 23 new contracts for €9.2 million annualized rents (17,900 sqm) +2.2% L-f-L rental growth in Milan non-TI offices 97.1% financial occupancy1 on office portfolio (95.6% offices non-TI)	Increasing development pipeline in Milan Committed development pipeline increased at €424m (50% pre-let -approx. €27 million annualized rents) Commitment of Milan, Dante 7 (4,800 sqm for €55 million total cost)
Merger with Covivio approved EGM on Sep. 5th approved the Merger with Covivio - European Group with ca. €23bn real estate, listed in Paris and Milan Strategy focused on Milan offices, client centricity and developments confirmed	Comit Fund litigation successfully closed Rejection by the judges of the request for refund filed by the Comit Pension Fund against Beni Stabili in April 2017

1 Group share data

9M2018 RENTAL INCOME: €158.1 MILLION

The gross rental income amounts to €158.1 million in 3Q 2018 (vs €152.4 million in 3Q 2017). This change is primarily due to the following main events:

+€5.5 million increase due to acquisition of properties;

-€4.8 million reduction due to 2017 assets sold or under preliminary agreements;

+€2.8 million net impact from rental activities;

+€2.2 million from other impacts mainly referred to indexation.

On the like-for-like basis, the gross accounting rents on the office portfolio increase by +1.5%2 (+1.8% LfL on Office Non-TI). On Milan, the increase reaches +2.2% LfL (Non-TI Offices).

23 new contracts for €9.2 million annualized rents (17,900 sqm), 19 renewals for €6.5 million annualized rents (22,000 sqm) and 5 pre-lettings for €4.7 million annualized rents have been executed in the first 9 months 2018.

The financial occupancy rate on group share office portfolio (excluding Development) is 97.1%. The occupancy rate of Non-TI office portfolio stands at 95.6% compared to 95.3% at the end of 2017 and 87.5% at the end of 2015.

The average maturity of lease agreements considering break options moved to 6.9 years group share on offices.

ACCELERATION OF DEVELOPMENT PIPELINE IN MILAN

Beni Stabili has committed as development project the office portion of the asset in Milan, via Dante 7,a historical trophy building built at the end of the 19th century positioned right in the city centre, between P.zza Cordusio and P.zza Castello. The redevelopment on the office portion and extension of the surface (+ ca. 400

2 The like-for-like rental growth is calculated on the stabilized portfolio as the growth rate coming from i) the effect of indexation to inflation; ii) the effect of an increase or reduction in the vacancy rate of the stabilized portfolio and iii) the effect of renegotiating expiring rents or of new rents. The stabilized portfolio is the portfolio adjusted by sales, acquisitions and development.

sqm reaching 4,800 sqm of office spaces) will have a total cost of €55 million (ca. €13 million of capex) and around 4.8% target yield. Milan, via Dante, to be delivered end of 2019, could be the first site in Italy for Wellio, Covivio's co-working brand. The refurbishment project refers to the office portion only; the retail portion is currently fully let.

On October 1st, Beni Stabili delivered the first building of the Symbiosis business district. The asset of 20,500 sqm, situated in front of the Prada Fundation, is let at 86% to Fastweb for 10.5 years and Cir Food for around 15 yrs and has been developed with a total cost of €94 million. Considering the yield on cost of 7.2%, the expected value creation should exceed 20%.

Beni Stabili can today leverage on a €828 million development pipeline, of which 90% in Milan, encompassing €424 million of committed projects (vs €368 million as at 30/06/2018), as well as circa €404 million managed projects in Milan. Circa €118 million capex3 are going to be spent on committed projects.

The committed development pipeline is 50% pre-let, includes 7 projects mainly in Milan and targets a 6.3% yield.

LITIGATION WITH THE COMIT PENSION FUND IN LIQUIDATION

The arbitration commenced by the Comit Pension Fund against Beni Stabili in April 2017 - by which the Fund claimed reimbursement of the amount (€55.2 million) it paid to the Agenzia delle Entrate as part of the settlement reached in December 2016 - has been successfully closed with the rejection of all reciprocal claims and the decision that nothing is due by either party to the other.

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As previously announced, Beni Stabili, in light of recent legislative changes in Italy, will no longer publish its third quarter interim management report. The Company will publish rental revenues for the three-month periods ended March 31, along with the continued publication of full year results for the twelve-month periods ended December 31 and half year results for the six-month periods ended June 30.

"The director responsible for preparing corporate accounting documents, Barbara Pivetta declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this statement corresponds to the documented results, books and accounting records."

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3 Includes construction costs, technical costs, urbanization fees, capitalised financial costs, home technical costs and various fees.

For more information:

Beni Stabili Siiq

Investor Relations - Barbara Pivetta - +39.02.3666.4630 [e-mail]

Media Contact - Barbara Ciocca - + 39.02.3666.4695 [e-mail]

SEC and partners Srl

Matteo Steinbach - +39.346.1063989 [e-mail]

Michele Calcaterra - + 39. 335.461985 [e-mail]

Beni Stabili Siiq, a leading property company in the Italian real estate sector

Beni Stabili is the leading property player in the Italian real estate market with total assets of over 4bn euro. Our assets portfolio is sited in key locations of North and Central Italy's major cities and consists mainly of offices. We pursue the appreciation of our assets to increase profitability and create value for our clients, partners and shareholders.

As a major player in office investment and development, we foster pioneering solutions to improve the environmental performance of our buildings for the well-being of our clients' employees. With this in mind we are developing in Milan a new business area dedicated to smart working: Symbiosis.

Beni Stabili is listed on the Milan and Paris Stock Exchanges and operates through its main offices of Milan and Rome. Beni Stabili belongs to Covivio reference in the European real estate market with a portfolio of € 23bn in office, hotel and residential assets, located in the most dynamic European cities.