Home Invest Belgium : Results 1st half-year 2017

Half-year financial report 2017

properties in operation

11.9%

NETHERLANDS

9.3%

%

FLANDERS 62.2

BRUSSELS

Increase of the net result 2

16.6%

WALLONIA

Our team covers the entire property life cycle:

Highlights

Growth of the portfolio

• Acquisition of the Jourdan 95 project in Saint-Gilles;

• Acquisition of 40 apartments and 7 holiday homes in the Port Zélande complex;

• Completion of the The Inside building in Woluwe-Saint-Lambert.

Excellent performance of the real estate portfolio

Acquisitions

Sales

Development

Management

• Value of investment properties up by 5%1;

• Occupancy rate of 91.2%.

  Substantially improved results

• Net result from core activities up 31%2;

• Distributable income up 3.4%2.

  Strengthening

  the financial structure

• Decrease of financing costs to 2.23%;

• Debt ratio under control at 50.03%.

1 As compared to 31 December 2016.

2 As compared to the results at 30 June 2016.

Table of content

C

a

p

SALES

i

t

a

l

r

e

i

n

v

e

s

t

e

d

ACQUISITIONS

The 1st semester at a glance 2

The real estate portfolio 3

Interim management report 4

Share and shareholders 9

Abridged consolidated financial

statements 11

Statutory auditor's report 25

Statement of the persons responsible 25

Shareholder agenda 26

MANAGEMENT

DEVELOPMENT

THE 1st SEMESTER AT A GLANCE

Occupancy rate

The first semester of 2017 was characterised by excellent results: the RREC (Regulated Real Estate Company) con- tinued developing its portfolio and saw the net result from core activities grow rapidly thanks to the full contribution of past acquisitions and projects completed in 2016.

During this period, the teams have also been working on a major project: moving into our new offices by early July, along with a gradual phasing-out of paper and a move towards a mass digitisation of our processes.

The summer break will have been a short one: an Extraor- dinary General Meeting has been scheduled for 13th of Sep- tember (the required quorum was not met at the meeting of 23rd of August). The meeting will be invited to decide on the acquistion of a new building as part of a contribution in kind resulting from the partial demerger of the company VOP.

In addition, in late August, Home Invest Belgium acquired the shares of the company Investers SA which owns 27 apartments, 4 businesses and 2 office spaces in three buildings in Brussels.

Please find the details of our achievements in the following pages.

The real estate portfolio

At 30th of June 2017, Home Invest Belgium holds a portfolio of buildings spread across 45 sites, 2 ongoing development projects and 3 development projects under review whose total fair value is estimated at € 430.3 million.

PORTFOLIO EVOLUTION

In the balance sheet, the fair value of the investment prop- erties in operation and the development projects amounts to € 430.3 million against € 408.8 million in late 2016, i.e. an increase of 5.2%.

600 Mio

500 Mio

400 Mio

300 Mio

200 Mio

100 Mio

0 Mio

❚ Total portfolio

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017-Q2

E 2018-2019

Home Invest Belgium entrusted the valuation of its port- folio to two real estate experts: in a report dated 30th of June 2017, the real estate expert Winssinger & Associés in charge of valuing the entirety of the portfolio except for the Port Zélande site, stated that the investment value of the operated properties (including those intended for sale) amounts to €397,675,000, resulting in a fair value within the meaning of the IFRS standards of € 360,518,000.

The expert BNP Paribas Real Estate tasked with valu- ing the Port Zélande site, stated an investment value of

€ 49,695,000, i.e. a fair value of € 48,720,588.

The fair value of the investment properties in operation is

€ 408.6 million as compared to € 381.3 million 6 months earlier. This growth can be explained by the completion of the development project The Inside and the acquisition of apartments and holiday homes in the Port Zélande holiday village. On a constant portfolio basis, the fair value of the portfolio has increased slightly (+ 1%), in line with changes observed in the market.

The investment properties located in the Brussels-Capital Region currently represent 62.2% of the portfolio, those in the Walloon Region represent 16.6%, those in the Flem- ish Region represent 9.3% and those in the Netherlands represent 11.9%.

The breakdown of this portfolio, calculated on the basis of the fair value of the buildings, is as follows:

BREAKDOWN BY LIFE-CYCLE STAGE

0.54% 1.88% 6.59%

0.53%

90.46%

❚ Development projects being studied

❚ Development projects being implemented

❚ Investment buildings under renovation

❚ Investment buildings in operation

❚ Buildings for sale

BREAKDOWN OF INVESTMENT PROPERTIES BY DESTINATION

2.83%

10.51%

1.54%

13.86%

64.55%

6.71%

❚ Apartments

❚ Furnished apartments

❚ Houses

❚ Nursing homes

❚ Shops

❚ Offices

The residential portion of the investment properties in opera- tion therefore amounts to 86.7%.