Press release

Regulated information under embargo till 16/02/2017 - 7.30 AM

Leasinvest Real Estate - Note of the manager on the past financial year 2016

  • Outlook for 2016 confirmed by the 31/12 figures resulting in one of the best results since the creation of the company;

  • Addition of Austria as a 4thcountry;

  • Higher rental income from € 50.5 million to € 56.6 million (+12%);

  • Increase of EPRA Earnings*1(excluding changes in value on financial instruments and capital gains on real estate portfolio) to € 27.9 million or € 5.65 per share (+ 9%);

  • Increase of the net result from € 30.6 million to € 31.1 million or € 6.30 per share* (+ 2%);

  • High occupancy rate of the real estate portfolio at 96.8%;

  • Debt ratio amounts to 58% (also 58% at 31/12/2015) after capital recycling during the past year;

  • Average funding cost* has decreased from 3.38% to 2.90%

  • Increase of the gross dividend from € 4.70 to € 4.90 (+ 4.26%)

Jean-Louis Appelmans: "It is with pride that we announce that 2016 was one of the best years ever since the creation of Leasinvest Real Estate in 1999."

1 Alternative Performance Measures (APM) in the sense of the ESMA directive of 5 October 2015 in this press release are indicated with an asterisk (*) and are further explained at the end of this press release. As a consequence, the term net current result has been replaced by the term EPRA Earnings.

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www.leasinvest.be

Regulated information under embargo till 16/02/2017 - 7.30 AM

Introduction

Not only has the rental income since the inception quadrupled, the EPRA Earnings and the net result have also nearly tripled, together with the share price that has further more than doubled over this period, despite the 2008 financial and economic crisis which occurred in the meantime.

2016 was a very important year for Leasinvest Real Estate, not only because one of the best results were achieved, but also because our strategy of focus on retail and offices and geographical diversificationwas continued, with the acquisition of the Frun®retail park in Asten, Austria. Further on, existing buildings are being redeveloped in order to improve our portfolio so that it better corresponds to the current tenant and market demand. Examples are the retail park in Strassen in the Grand Duchy of Luxembourg, Treesquare and Montoyer 63 both in the Brussels CBD. Meanwhile the prestigious office building Royal20 located boulevard Royal in Luxembourg was also completed (ex-hotel Rix) and divested following a sales agreement concluded in 2015 resulting in an important capital gain.

Besides an increase of the EPRA Earnings*2(excluding changes in value on financial instruments and capital gains on real estate portfolio) to € 27.9 million, or € 5.65 per share, of 9% compared to 31/12/2015, we also record an increase of the net result of € 30.6 million to € 31.1 million or € 6.30 per share* (+ 2% compared to 31/12/2015).

These very strong results allow for an increase of the gross dividend from € 4.70 to € 4.90. Net, this results in € 3.43.

The occupancy rate of the portfolio has remained continuously high over the last years and currently stands at 96.8%. Together with the sustainable extension of the average duration of our real estate portfolio, this represents the essence of our commercial strategy.

Within the framework of our financial strategydifferent bank loans maturing in 2016 and also in the beginning of 2017 were renewed and renegotiated at lower margins, resulting in a funding cost of 2.90% versus 3.38% end 2015. At the end of 2016 Leasinvest Real Estate disposes of € 608 million of available credit lines with a headroom of € 90 million of undrawn available credit lines for additional investments.

Finally, the EPRA NAV3per share amounts to € 82.0 (31/12/15: € 81.3) end 2016 compared to a closing price of the Leasinvest Real Estate share of € 105.5, or a premium of 29%.

2 Alternative Performance Measures (APM) in the sense of the ESMA directive of 5 October 2015 in this press release are indicated with an asterisk (*) and are further explained at the end of this press release. As a consequence, the term net current result has been replaced by the term EPRA Earnings.

3 EPRA Net Asset Value (NAV) consists of the adjusted Net Asset Value, excluding certain elements that do not fit within a financial model of long-term real estate

investments; see also www.epra.com.

Regulated information under embargo till 16/02/2017 - 7.30 AM

1. Activity report

Acquisitions and disposals

Acquisitions

Austria

Acquisition important retail park in Austria and strengthening of geographical diversification

On 8/11/2016 Leasinvest Real Estate has acquired the Frun®retail park in Asten, Austria. The U-shaped park was launched end October 2013 and concerns an efficient concept that consists of a large, central, free parking area, surrounded by a mix of national and international brands, an approach that strengthens the commercial efficiency and sustainable development of the park.

The roof of the Frun®retail park in Asten was also equipped with solar panels in order to optimize the sustainability of the park, resulting in an annual on-site production of over 500.000 KWh of green energy and a reduction in CO² emission of 400 tons.

The Frun®retail park in Asten is located at 200 km of Vienna and nearby Linz and comprises 18,300 m² with 26 shops and 600 parking spaces, and it is very successful with a significant annual increase of the footfall. All shops are let to both international and local retailers such as C&A, Intersport, Spar, Action and Zeeman.

This acquisition represents a fair value of € 38 million with an annual rental income of € 2.3 million. The funding of this acquisition was entirely secured by using undrawn available credit lines.

Based on among other things the stable economy, the AAA rating, high GDP per capita and sound real estate sector Austria has become the 4thcountry in which Leasinvest Real Estate is active in.

Disposals

Grand Duchy of Luxembourg

Finalising sale of completed office building Royal20 in City of Luxembourg

As planned on 30/06/2016 the 2ndnotarial deed was passed with a private investor with regard to the future sale4of the delivered office building 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 (ex-VAT), which exceeds the fair value. The building was entirely prelet since end-2014.

This successful realisation is a perfect example of the Company's daring and calculated entrepreneurship to turn the old Hotel Rix into a new office and landmark building on the Boulevard Royal. The magnetism of this diamond-shaped new office building designed by the renowned French architectural firm Agences Elizabeth et Christian de Portzamparc will become a strong architectural reference for the City of Luxembourg.

4 For more information on the future sale, see press releases of 20/04/2015, 18/02/2016 and 17/05/2016.

Belgium

Sale to an end user of the building Zeutestraat Malines

Regulated information under embargo till 16/02/2017 - 7.30 AM

On 17/06/2016 the notarial deed for the sale of the building Zeutestraat in Malines was passed and sold to an end user for

€ 4.5 million, which corresponds to the fair value. This relates to a non-strategic storage building with office space with a total surface of 7,363 m2.

Projects under redevelopment

Grand Duchy of Luxembourg

Redevelopment retail park Strassen

The successful retail site located Route d'Arlon in Strassen, comprising 22,721 m², is being partially redeveloped into a retail park concept that will, besides the shops, a/o include a restaurant (see below). This site will be the largest retail park in the Luxembourg periphery at the entrance of the city of Luxembourg.

The redevelopment takes place in 2 phases in order to take into account the current tenants Adler Mode, Bâtiself and Roller, with regard to road works and redevelopment of the parking. The refurbishment works of the 1stphase will be completed in Q2 2017. For the 2ndphase the reception is foreseen in 2020.

Belgium

Redevelopment office building Montoyer 63 in Brussels CBD

This building, leased to the European Parliament until December 2016, after entire demolition and reconstruction, will comprise 6,052 m2state-of-the-art office space. Montoyer 63 is located in the Brussels Leopold district (CBD), amidst the European institutions, where there is still a lack of new high-quality office buildings. The urban planning permit has been granted at the beginning of 2016 and the objective is to obtain a BREEAM 'excellent' certificate for this building. The demolition works will start in Q1 2017 and its reception is foreseen in the second quarter of 2018.

As from its reception, the European Parliament will occupy the building within the framework of a signed usufruct agreement for a fixed period of 21 years.

Redevelopment Treesquare (Square de Meeûs) in Brussels CBD

The urban planning permit was delivered in January 2016 and the demolition works of the office building that became vacant since the second quarter of 2015, have in the meanwhile been finalized. The construction works have started in September 2016 and in the meantime the construction project was named Treesquarereferring to the green oasis located on the square. Treesquare benefits from a unique situation amidst the Brussels Leopold district (CBD), still considered to be the best office location of Belgium.

This building of 5,936 m2will be entirely rebuilt as an AAA building that will meet the highest technological and sustainable quality standards (BREEAM 'excellent' certificate expected). The reception of the new sustainable office building is foreseen in Q4 2017. Due to the scarcity in new quality buildings in the Leopold district we expect the building to be entirely let by its reception.

LeasInvest Real Estate SCA published this content on 16 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 February 2017 08:49:06 UTC.

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