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Regulated information under embargo till 17/05/2016 - 17.40h (5.40 PM)

Leasinvest Real Estate - Interim statement of the manager over the first quarter of the financial year 2016 (01/01/2016-31/03/2016) and report of the extraordinary and ordinary general meetings of 17 May 2016
  1. Interim statement over the first quarter of the financial year 2016
  1. Highlights
    • The outlook for 2016 is confirmed by the realized figures
    • Higher occupancy rate of the real estate portfolio at 97%
    • Increase of rental income over Q1 2016 to € 14.2 million (+12.7%)
    • Net current result Q1 2016 has increased to € 7.1 million (+26.4%)
    • Net result Q1 2016 rises to € 5 million (+38.9%)
    • Global real estate portfolio1 amounts to € 940 million
    • Net asset value (group share) per share EPRA € 82.2
    • Montoyer 63: successful signing of usufruct agreement for 21-year fixed term
  1. Activity report period 01/01/16- 31/03/16
  1. Sales and purchase agreement concluded for Zeutestraat Malines (Belgium)
  2. For the building Zeutestraat Malines Belgium) a sales and purchase agreement was concluded, based on which the building was sold to an end user for € 4.5 million, which is not lower than the fair value. This relates to a storage building with office space with a total surface of 7,363 m2.This sale fits within the divestment of non-strategic buildings.Extension of rental contract Strassen in the Grand Duchy of LuxembourgOn 17/03/16 the current rental contract with sitting tenant Roller was extended for a fixed term of 15 years in our retail site of 22,721 m² at the route d'Arlon in Strassen, that will be redeveloped into a shopping center concept,and will comprise, besides shops, a/o a restaurant. The redevelopment will take place in 2 phases in order to take into account the current tenants Adler Mode, Bâtiself and Roller. The reception of the first phase will take place in 2017; the reception of phase 2 is foreseen in 2020. This site will be the largest retail park in the Luxembourg periphery at the entrance of the city of Luxembourg.Further finishing of the under construction office project Royal 20 in LuxembourgOn 20 April 2015 Leasinvest Real Estate, via its 100% Luxembourg subsidiary, Leasinvest Immo Lux, has concluded a future sales agreement ("vente à terme"), subject to the completion of the building, that was confirmed by a notary deed dated 18 May 2015, for the under construction office project Royal20, located boulevard Royal in the center of the city of Luxembourg in the Grand Duchy of Luxembourg, for an amount of € 62.5 million (excluding VAT)2. The finishing of the office project Royal 20 evolves as planned. The final reception of the office building and the transfer of the property are expected to take place in the second quarter of 2016.End 2014 a rental contract for the entire building was already concluded with China Merchants Bank for a fixed period of 10 years that will start as of the preliminary reception of the building.The objective is to obtain a BREEAM 'very good' for this building.Inclusion of the Leasinvest Real Estate share in the BEL Mid indexSince 21/03/16 the Leasinvest Real Estate share is part of the BEL Mid on Euronext Brussels. In order to be part of this selection, the free float market capitalization of the company that is considered should be higher than the BEL 20 index level at the closing date of the review period, multiplied by 55,000 (cf.www.euronext.com - INDEX RULE BOOK BEL® Family).
  3. Important events after the closing of the period 01/01/2016- 31/03/2016
  4. Usufruct agreement concluded with European Parliament for to be redeveloped Montoyer building in 1000 Brussels

    On 27/04/2016 a usufruct agreement, for a fixed and irrevocable term of 21 years, was concluded with the European Parliament relating to the office building Montoyer 63 in 1000 Brussels that will be redeveloped. As of the date at which the current lease with the European Parliament ends, the building will be entirely demolished and rebuilt.

    The building will comprise 6,052 m2 state-of-the-art office space. Montoyer 63 is located in the Leopold district, amidst the European institutions, where there is currently a lack of new high-quality office buildings. The urban permit has been granted at the beginning of 2016 and the objective is to obtain a BREEAM 'excellent' certificate for this building at reception, foreseen in Q3 2018, date at which the usufruct agreement will enter into force.

    1. Key figures
    2. Key figures real estate portfolio
      31/03/2016
      31/03/2015
      Fair value real estate portfolio (€ 1,000)
      871,693
      758,151
      Fair value investment properties including participation Retail Estates (€ 1,000)
      941,227
      816,712
      Investment value investment properties (€ 1,000)
      888,796
      772,560
      Rental yield based on fair value
      6.88%
      7.30%
      Rental yield based on investment value
      6.75%
      7.17%
      Occupancy rate
      97.01%
      98.35%
      Average duration of leases (years)
      4.55
      5.04
      1. The real estate portfolio comprises the buildings in operation, the development projects, the assets held for sale, as well as the buildings presented as financial leasing under IFRS.
      2. Fair value: the investment value as defined by an independent real estate expert and of which the transfer rights have been deducted. The fair value is the accounting value under IFRS. The fair value of Retail Estates has been defined based on the share price on 31/03/2016.
      3. The investment value is the value as defined by an independent real estate expert and of which the transfer rights have not yet been deducted.
      4. Fair value and investment value estimated by real estate experts Cushman & Wakefield / DTZ Winssinger / Stadim / SPG Intercity.
      5. For the calculation of the rental yield and the occupancy rate only the buildings in operation are taken into account, excluding the assets held for sale.
      6. The occupancy rate has been calculated based on the estimated rental value.
      1. 31/03/2016
      31/03/2015
      Net asset value group share (€ 1,000)
      356,376
      343,796
      Net asset value group share per share
      72.2
      69.6
      Net asset value group share per share based on investment value
      75.7
      72.5
      Net asset value group share per share EPRA
      82.2
      78.8
      Total assets (€ 1,000)
      989,508
      845,696
      Financial debt
      539,557
      434,405
      Financial debt ratio (according to RREC legislation)
      57.68%
      52.92%
      Average duration credit lines (years)
      3.13
      3.02
      Average funding cost (excluding changes in fair value fin. instruments)
      2.89%
      3.47%
      Average duration hedges (years)
      6.46
      6.52
      31/03/2015
      31/03/2015
      Rental income (€ 1,000)
      14,217
      12,610
      Net rental result per share
      2.88
      2.55
      Net current result (€ 1,000) (1)
      7,056
      5,584
      Net current result per share (1)
      1.43
      1.13
      Net result group share (€ 1,000)
      5,032
      3,597
      Net result group share per share
      1.02
      0.73
      Comprehensive income group share (€ 1,000)3
      -6,029
      7,371
      Comprehensive income group share per share
      -1.22
      1.49
      1. (1) The net current result consists of the net result excluding the portfolio result and the changes in fair value of the ineffective hedges.
      2. Consolidated results period 01/01/16- 31/03/16
      3. The first quarter of 2016 is in line with the outlook for Leasinvest Real Estate.
        1. The rental income has substantially increased in comparison with the same period of last year (+ 12.7%) thanks to the acquisition of the building Tour & Taxis Royal Depot, and amounts to € 14,217 thousand end March 2016 in comparison with € 12,610 thousand end March 2015. At constant portfolio (excluding the impact of purchases and divestments) the rental income remains stable with + 0.6% or + € 73 thousand in comparison with the same period of last year (excl. rental incentives).The gross rental yields remain unchanged in comparison with end 2015 and amount to 6.88% based on fair value and to 6.75% based on investment value. The occupancy rate amounts to 97.01% (end 2015: 95.80%); an increase explained by the additional lettings of the building Monnet after the reception of the renovation works of end 2015 and a supplementary number of smaller rental contracts (a/o. in the building Riverside).The fair value4 of the direct real estate portfolio has remained nearly identical over the past quarter and amounts to€ 871.7 million end March 2016 compared to € 869.4 million end December 2015.The property charges have slightly increased from - € 2.0 million to - € 2.4 million due to increased external management costs on the one hand, and costs and taxes on un-let properties awaiting redevelopment on the other hand.The portfolio result end March 2016 amounts to - € 2.0 million in comparison with a positive portfolio result of € 4.2 million at the end of March of last year. Last year, the portfolio result at the end of the first quarter was namely positively influenced for € 6.0 million, mainly by the impact of the rise of the Swiss Franc conversion rate on the valuation of the Swiss buildings in the real estate portfolio at that moment. The financial result had equally increased causing that this increase in value was integrally compensated by the negative evolution of the fair value of the financial instruments hedging this exchange risk.3 Other Comprehensive Income: comprises the changes in Fair Value that are not settled via the income statement and that have an impact on the group's equity.4 Fair value: the investment value as defined by an independent real estate expert and of which the transfer rights have been deducted. The fair value is the accounting value under IFRS.

      LeasInvest Real Estate SCA published this content on 17 May 2016 and is solely responsible for the information contained herein.
      Distributed by Public, unedited and unaltered, on 17 May 2016 17:37:05 UTC.

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