Leasinvest Real Estate : HALF-YEAR FINANCIAL REPORT 2017

Half-year

financial report

Regulated information

Under embargo till 24/08/2017 - 7.30 AM

2017

Public regulated real estate company (B-REIT) Leasinvest Real Estate SCA invests in high quality and well-located retail and office buildings in the Grand Duchy of Luxem- bourg, in Belgium, in Switzerland and in Austria.

At present the total fair value of the directly held real es- tate portfolio of Leasinvest amounts to nearly € 907 million spread across the Grand Duchy of Luxembourg (51%), Belgium (40%), Switzerland (5%) and Austria (4%).

Moreover, Leasinvest is the second largest foreign real

estate investor in the Grand Duchy of Luxembourg.

The real estate portfolio consists of retail (46%), offices (40%) and logistics (14%).

The public RREC is listed on Euronext Brussels and has a market capitalization of approximately € 505 million

(value 22 August 2017).

Following the entry into force of the 'ESMA directives on Alternative Performance Measures' of the European Securities and Market Authority (ESMA), the Alternative Performance Measures (APM) in this half-year financial report are indica- ted by an asterisk (*). For the definition and the detailed calculation of the Alternative Performance Measures used, we refer to page 47 et seq of this half-year financial report.

Mr Jean-Louis Appelmans, permanent representative of the statutory manager of Leasinvest Real Estate, declares, on behalf and for the account of the statutory manager, that, to his knowledge:

(i) the condensed financial statements, established in accordance with the applicable accounting standards for annual ac- counts, present a fair view of the assets, financial situation and the results of Leasinvest Real Estate and the companies included in the consolidation;

1. the interim management report presents a fair overview of the development and the results of Leasinvest Real Estate, and of the position of the company and the companies included in the consolidation, and also comprises a description of the main risks and uncertainties which the company is confronted with.

   JEAN-LOUIS APPELMANS

   Permanent representative

   Leasinvest Real Estate Management SA Schermersstraat 42

   BE-2000 Antwerp Statutory manager

   KEY FIGURES

   KEY FIGURES REAL ESTATE PORTFOLIO (1)	30/06/2017	31/12/2016
   Fair value real estate portfolio (€ 1,000) (2)	906,980	859,931
   Fair value investment properties, incl. participation Retail Estates (€ 1,000) (2)	982,068	930,689
   Investment value investment properties (€ 1,000) (3)	925,225	876,747
   Rental yield based on fair value (4) (5)	6.41%	6.78%
   Rental yield based on investment value (4) (5)	6.29%	6.65%
   Occupancy rate (5) (6)	91.80%	96.77%
   Average duration of leases (years)	4.49	4.37

2. 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.

3. 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 30/06/2017.

4. 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.

5. Fair value and investment value estimated by real estate experts Cushman & Wakefield and Stadim (BeLux), CBRE-SPG Intercity (Switzerland) en BAR bareal (Austria).

6. 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 and the development projects.

7. The occupancy rate has been calculated based on the estimated rental value.

8. KEY FIGURES INCOME STATEMENT	30/06/2017	30/06/2016
   Rental income (€ 1,000)	28,084	28,412
   Net rental result per share	5.69	5.75
   EPRA Earnings* (1)	13,261	14,349
   EPRA Earnings* per share (1)	2.69	2.91
   Net result group share (€ 1,000)	15,595	15,137
   Net result group share per share	3.16	3.07
   Comprehensive income group share (€ 1,000)	32,243	937
   Comprehensive income group share per share	6.53	0.19

   (1) EPRA Earnings*, previously the net current result, consists of the net result excluding the portfolio result* and the changes in fair value of the ineffective hedges.

   KEY FIGURES BALANCE SHEET	30/06/2017	31/12/2016
   Net asset value group share (€ 1,000)	362,754	356,407
   Number of issued shares	4,938,870	4,938,870
   Number of shares entitled to the result of the period	4,938,870	4,935,478
   Net asset value group share per share	73.4	72.2
   Net asset value group share per share based on investment value	77.1	75.6
   Net asset value group share per share EPRA	81.6	81.9
   Total assets (€ 1,000)	1,030,256	988,441
   Financial debt	585,443	541,064
   Financial debt ratio (in accordance with legal RREC regulation)	59.92%	58.05%
   Average duration credit lines (years)	3.44	3.94
   Average funding cost (excl. fair value changes financial instruments)	2.94%	2.90%
   Average duration hedges (years)	5.80	6.30

   EPRA PERFORMANCE MEASURES* (1)	30/06/2017	30/06/2016
   EPRA Earnings* (in € per share) (2)	2.69	2.91
   EPRA NAV* (in € per share) (3)	81.6	80.0
   EPRA NNNAV* (in € per share) (4)	73.1	68.92
   EPRA Net Initial Yield* (in %) (5)	5.39%	5.48%
   EPRA Topped up Net Initial Yield* (in %) (6)	5.41%	5.54%
   EPRA Vacancy* (in %) (7)	9.12%	2.53%
   EPRA Cost ratio* (incl. direct vacancy costs) (in %) (8)	24.26%	25.53%
   EPRA Cost ratio* (excl. direct vacancy costs) (in %) (8)	21.00%	23.60%

9. These figures were not subject to a review by the auditor.

10. The EPRA Earnings*, previously net current result, consists of the net result excluding the portfolio result* and the changes in fair value of the ineffective hedges.

11. 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.

12. EPRA NNNAV* (triple Net Asset Value*): consists of the EPRA NAV*, adjusted to take into account the fair value of the financial instruments, the debts and the deferred taxes; see also www.epra.com.

13. EPRA Net Initial Yield* comprises the annualized gross rental income based on the current rents at the closing date of the financial statements, excluding the property charges, divided by the market value of the portfolio, increased by the estimated transfer rights and costs for hypothetical disposal of investment properties; see also www.epra.com.

14. EPRA Topped up Net Initial Yield* corrects the EPRA Net Initial Yield* with regard to the ending of gratuities and other rental incentives granted; see also www.epra.com.

15. EPRA Vacancy* is calculated on the basis of the Estimated Rental Value (ERV) of vacant surfaces divided by the ERV of the total portfolio; see also www.epra.com.

16. EPRA Cost ratio* consists of the relation of the operating and general charges versus the gross rental income (including and excluding direct vacancy costs); see also www.epra.com.