Leasinvest Real Estate - Results (1) 3rd Quarter of Financial Year 2003/2004 (period from 1 July 2003 to 31 March 2004)

The rental income including the third quarter remained nearly stable, but the operating income decreased slightly due to the termination of rental guarantees. The net current result slightly declined mainly as a result of provisions for renovation.

 

 

			2003-2004	2002-2003	2002-2003
			31/03/2004	31/03/2003	30/06/2003
Portfolio (x 1,000 EUR)
	Investment value		264,338	267,925	266,079
	Liquidation value (1)		233,927	237,102	235,468
Debt ratio (%) (2)			37.47	38.03	42.33
Net asset value per share (EUR) (3)			56.15	57.18	53.45
Occupancy rate (%) (4)
	Including rental guarantees		93.45	98.30	97.77
	Excluding rental guarantees		93.45	96.85	96.24
Rental yield (%)
	Including rental guarantees		7.63	7.94	7.97
	Excluding rental guarantees		7.63	7.84	7.85
Number of shares			2,830,371	2,830,366	2,830,366
(1) Investment value minus theoretical discount of 13%
(2) Including provision exit tax
(3) Including dividend, except for 30/06/2003 (annual figures)
(4) Occupancy rate = (ERV - ((current rent + ERV on empty) - current rent)) / ERV
	ERV = estimated rental value
	Current rent = rental income
	Empty = vacancy
			2003-2004	2002-2003	2003-2004	2002-2003	2002-2003
			3 months (Q3)	3 months (Q3)	9 months	9 months	12 months
			31/03/2004	31/03/2003	31/03/2004	31/03/2003	30/06/2003
Rental income (x 1,000 EUR)			5,036	5,223	15,442	15,681	20,872
Rental income per share (EUR)			1.78	1.85	5.46	5.54	7.37
Net current result per share (EUR)			0.87	1.14	3.18	3.46	4.50
Net result per share (EUR)			0.36	1.60	2.74	3.19	3.56

 

 

			2003-2004	2002-2003	fy. 2002-2003
			31/03/2004	31/03/2003	30/06/2003
ASSETS
FIXED ASSETS			264,338	267,925	266,079
Tangible assets			264,338	267,925	266,079
CURRENT ASSETS			3,922	3,406	8,972
Amounts receivable after more than 1 year			86	150	131
Amounts receivable within 1 year			2,608	2,230	3,501
Investments, cash in hand and at bank			841	890	5,200
Deferred charges and accrued income			387	136	140
TOTAL ASSETS			268,260	271,331	275,051
LIABILITIES
CAPITAL AND RESERVES			158,915	161,849	151,287
PROVISIONS			3,136	3,258	4,173
DEBTS			106,209	106,224	119,591
Financial debts after more than 1 year			45,000
Financial debts within 1 year			50,074	97,776	98,180
Trade debts and taxes			4,481	2,186	3,422
Other debts			955	938	12,476
Accrued charges and deferred income			5,699	5,324	5,513
TOTAL LIABILITIES			268,260	271,331	275,051

 

 

			2003-2004	2002-2003	2003-2004	2002-2003	2002-2003
			3 months (Q3)	3 months (Q3)	9 months	9 months	12 months
			31/03/2004	31/03/2003	31/03/2004	31/03/2003	30/06/2003
NET CURRENT RESULT
Operating income			5,202	5,502	16,798	17,773	23,954
Operating charges			-1,720	-1,167	-4,965	-4,571	-7,007
Operating result			3,482	4,335	11,833	13,202	16,947
Financial income			400	344	935	1,190	1,363
Financial charges			-1,422	-1,337	-3,671	-4,395	-5,426
Taxation			-4	-101	-98	-208	-142
Net current result			2,456	3,241	8,999	9,789	12,742
PORTFOLIO RESULT
Change in market value of elements			-1,432	1,171	-1,458	-871	-2,702
	of the portfolio
Gain or loss on disposal of elements				105	217	105	25
	of the portfolio
Portfolio result			-1,432	1,276	-1,241	-766	-2,677
EXTRAORDINARY RESULT
Extraordinary income						7	7
RESULT FOR APPROPRIATION
Profit of the financial year			1,024	4,517	7,758	9,030	10,072
Appropriation of the change in market value of
	the portfolio
		Transfer to the non-distributable reserves (-)		-1,171
		Withdrawal from the non-distributable reserves (+)	1,432		1,458	871	2,702
Profit of the financial year for appropriation			2,456	3,346	9,216	9,901	12,774

 

 

The rental income to 31 March 2004 remained nearly at the same level as during the first 9 months of the previous financial year, i.e. 15.4 million EUR. However, operating income fell by almost 1 million EUR, on the one hand due to the lapse of the rental guarantees and on the other hand, due to a temporary reduction in the re-invoiced charges.

 

In order to foresee at present the costs for future renovation, due to the possible departure of a number of tenants, additional provisions were made (525,000 EUR).

 

As a consequence the operating result reached 11.8 million EUR or 90% of the operating result for the comparable period of last year (13.2 million EUR).

Due to a further decline in interest charges, the financial result improved from -3.20 million EUR on 31/03/2003 to -2.74 million EUR on 31/03/2004.

 

The net current result ended at 9.00 million EUR compared with 9.79 million EUR or a relative fall of 8%.

 

The portfolio result fell by 1.59 million EUR compared with 31/12/2003 (from 0.13 million EUR to -1.46 million EUR). This result is the consequence of falls in value of the business parks in the decentralised zone of Brussels.

 

The aforementioned leads to the profit after 9 months being 7.76 million EUR, compared with 9.03 million EUR on 31/03/2003, or a decrease of 14%.

 

On 31/03/2004, the portfolio represented an estimated investment value of 264.3 million EUR or 1.4 million EUR lower compared with a quarter earlier (31/12/2003).

The net asset value ended at 158.9 million EUR, or 56.15 EUR per share (including the result for the period) compared with 57.18 EUR on 31/03/2003.

 

The debt ratio was 37.47%. Given that the maximum debt ratio is 50%, almost an additional 60 million EUR could be invested. The occupancy rate of the total portfolio was 93.45% and the rental yield 7.63%.

 

 

The building at Kontichsesteenweg 38 in Aartselaar was sold, as well as the building at Mechelsesteenweg 30-34 in Antwerp.

These divestments will result in a limited initial capital loss of 0.35 million EUR compared with the estimated value, but in view of the under-occupation and the maintenance costs, they will no longer have a negative influence on the current result.

 

 

 

 

Real estate fund Leasinvest Real Estate SCA invests in high-quality offices and semi-industrial buildings located in the Brussels/Ghent/Antwerp triangle.

The current investment value on 31 March 2004 is 264.34 million EUR. The portfolio represents an area of more than 190,000 m2, at 14 different locations and spread across 38 buildings.

The real estate fund is listed on Euronext and was included in January 2002 in the Next Prime segment. Leasinvest Real Estate SCA has a market capitalisation of 157.08 million EUR (value 31 March 2004).

 

 

Announcement of annual results (30/06/2004): week 35 2004

General meeting of shareholders: 18 October 2004

Dividend pay-out (coupon no. 5): 25 October 2004

Trading update (30/09/2004): week 48 2004

Announcement of half-yearly results (31/12/2004): week 9 2005

 

 

The shareholder structure is unchanged since 31/12/2003:

 

	Number of shares	%
Leasinvest Group	1,154,047	40.77
Free float	1,676,324	59.23
Total	2,830,371	100.00

 

 

(1) Unaudited results.

(2) The figures to 31/03/2004 (statutory) are entirely comparable with the figures to 31/03/2003 (consolidated), as a result of the merger via take-over of Leasinvest Real Estate SCA with its subsidiaries Brussimmo SA and Ekiport SA, which was approved during the Extraordinary General Meeting of Shareholders on 28/11/2003, with accounting retroactivity from 01/07/2003. Leasinvest Real Estate held nearly 100% of the shares in Brussimmo SA and Ekiport SA.