Leasinvest Real Estate SCA: Interim statement of the manager over the first quarter of the financial year 2013 (01/01/13-31/03/13)
- Regulated press release
1. Activity report period 01/01/13- 31/03/13
Sale of office building Pasteur in the Grand Duchy of Luxembourg
Leasinvest Immo Lux SA, a 100% subsidiary of Leasinvest Real Estate SCA, has sold on 11/03/2013 an office building of 4,928 m² located at the Avenue Pasteur in the Limpertsberg District in the City of Luxembourg to one of the real estate funds of the German investment company aik Immobilien-Kapitalanlagegesellschaft mbH. for an amount of approximately 19.5 million euro, corresponding to the fair value of the building. The proceeds of this sale will be reinvested in the development of the recently acquired Hotel Rix located at the Boulevard Royal in Luxembourg City.
Sale of logistics building in Nossegem
At the beginning of January 2013 the front part of the Vierwinden site (located in Nossegem) was sold to Immobilière ASCO SA for a net amount of 3 million euro. On this sale, a limited capital gain was realized.
2. Key figures
| Key figures real estate portfolio (1) | 31/03/2013 | 31/03/2012 | 31/12/2012 |
| Fair value real estate portfolio (€ 1,000) (2) | 596,938 | 505,510 | 617,763 |
| Fair value investment properties including participation Retail Estates (€ 1,000) (2) | 630,749 | 528,751 | 649,254 |
| Investment value investment properties (€ 1,000) (3) | 610,200 | 518,650 | 633,301 |
| Rental yield based on fair value (4) (5) | 7.34% | 7.21% | 7.30% |
| Rental yield based on investment value (4) (5) | 7.18% | 7.04% | 7.14% |
| Occupancy rate (5) (6) | 95.45% | 92.26% | 94.9% |
| Average duration of leases (years) | 4.5 | 3.9 | 4.9 |
(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.
(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 / Winssinger and Associates.
(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.
| 31/03/2013 | 31/03/2012 | 31/12/2012 | |
| Net asset value group share (€ 1,000) | 266,112 | 263,930 | 256,005 |
| Net asset value group share, per share | 66.3 | 66.0 | 63.8 |
| Net asset value group share, per share (investment value) | 69.6 | 69.3 | 67.7 |
| Net asset value group share, per share, EPRA | 72.8 | 69.8 | 70.6 |
| Total assets (€ 1,000) | 648,244 | 539,636 | 667,026 |
| Financial debt | 339,301 | 245,992 | 364,409 |
| Financial debt ratio (according to RD 7/12/2010) | 53.69% | 46.71% | 56.19% |
| Average duration credit lines (years) | 3.13 | 3.35 | 2.64 |
| Average funding cost (excluding fair value adjustments financial instruments) | 3.01% | 3.24% | 3.04% |
| Average duration hedges (years) | 5.66 | 5.58 | 5.43 |
| 31/03/2013 | 31/03/2012 | 31/12/2012 | |
| Rental income (€ 1,000) | 10,500 | 8,636 | 37,959 |
| Net rental income per share | 2.62 | 2.16 | 9.46 |
| Net current result (€ 1,000) | 5,503 | 4,058 | 21,113 |
| Net current result per share | 1.37 | 1.00 | 5.26 |
| Net result group share (€ 1,000) | 6,542 | 3,964 | 20,508 |
| Net result group share, per share | 1.63 | 1.00 | 5.11 |
| Comprehensive income group share (€ 1,000) | 10,108 | 1,883 | 9,744 |
| Comprehensive income group share, per share | 2.52 | 0.47 | 2.43 |
(1) The net current result consists of the net result excluding the portfolio result and the changes in fair value of the ineffective hedges.
3. Consolidated results period 01/01/13- 31/03/13
For Leasinvest Real Estate the first quarter of 2013 is in line with expectations and the investments realized in 2012 have positively contributed to the results per 31/03/2013.
The rental income of Leasinvest Real Estate over the first quarter of 2013 has increased by 21.6% (+ 1,865 thousand euro) and amounts to 10,500 thousand euro in comparison with 8,636 thousand euro for the first quarter of 2012.
This evolution is mainly a consequence of the contribution of 3 months of rental income of the Knauf Shopping Center in Schmiede and of the leasing of the State Archives in Bruges.
At constant portfolio the rental income rises by 9% or 776 thousand euro in comparison with the same period of the previous year.
The average duration of the leases has slightly decreased to 4.45 years in comparison with 4.9 years end-2012.
The gross rental yields have increased compared to end-2012 and amount to 7.34% (end-2012: 7.30%) based on the fair value and to 7.18% (end-2012: 7.14%) based on the investment value.
The additional lettings in the business center The Crescent in Anderlecht contribute to a slightly higher occupancy rate[1] (95.45%) in comparison with end-2012 (94.9%).
The fair value[2] of the direct real estate portfolio stands at 597 million euro at the end of March 2013 compared to 617.8 million euro at the end of December 2012.
The decrease is explained by the sale of the Pasteur building and a logistics building in Nossegem in the course of the first quarter of 2013 ( -21.7 million euro), both buildings already being presented as assets held for sale end-2012.
The net current result[3] of the first quarter amounts to 5.5 million euro (or 1.37 euro per share[4]), in comparison with a net current result of 4 million euro (or 1 euro per share) for the comparable period of the previous year.
The financial results over the first quarter have been influenced by, probably non-recurrent, positive changes in fair value of the hedges (327 thousand euro) compared to negative changes over the first quarter of the previous year (-750 thousand euro).
At the end of the first quarter of the financial year 2013 shareholders' equity, group share (based on the fair value of the investment properties) amounts to 266.1 million euro (31/12/12: 256.01 million euro).
End-March 2013 the net asset value per share reaches 66.32 euro (31/12/12: 63.80 euro). At the end of March 2013 the closing price of the Leasinvest Real Estate share amounted to 72.4 euro, or 9% higher than the net asset value. The net asset value per share excluding fair value adjustments of financial instruments (EPRA) also increases and reaches 72.78 euro end-March 2013 in comparison with 70.62 euro at the end of 2012.
Following the divestments, the debt ratio decreased and amounts to 53.69% (56.19% end-2012).
The board of directors of the statutory manager has proposed to the ordinary general shareholders' meeting of Leasinvest Real Estate, to be held on Tuesday 21 May 2013, to pay a gross dividend of 4.40 euro, and net, free of 25% withholding tax, 3.30 euro, over the financial year 2012.
4. Outlook
In 2013 LRE expects to further realize its strategic reorientation. Except for unforeseen circumstances and unexpected capital losses on its current real estate portfolio and hedges, the company expects to realize a better net result and, taking into account the successful realization of the current negotiations for the acquisition of a number of new projects, a better net current result than in 2012.
5. Events after the closing of the period
Sale of two remaining floors in the Mercure building in the Grand Duchy of Luxembourg
At the end of April and the beginning of May Leasinvest Immo Lux SA (a 100% subsidiary of LRE) has sold the two remaining floors of the office building "Mercure" (located avenue de la Gare in the City of Luxembourg) held in co-ownership, for a net amount of 1.9 million euro.
On this sale a capital gain of 600 thousand euro was realized.
For more information, contact:
Leasinvest Real Estate
Jean-Louis Appelmans
CEO
T: +32 3 238 98 77
E: jeanlouis.appelmans@leasinvest.be
Leasinvest Real Estate SCA
Real estate investment trust (sicafi/vastgoedbevak) Leasinvest Real Estate SCA mainly invests in high quality and well-located offices, retail and logistics buildings in Belgium and the Grand Duchy of Luxembourg. At present, the real estate portfolio of Leasinvest comprises 53 buildings, of which 37 are located in Belgium and 16 in the Grand Duchy of Luxemburg, with a total value of the real estate of approximately 600 million euro.
The sicafi is listed on Euronext Brussels and has a market capitalization of 314 million euro (value 10 May 2013).
[1] The occupancy rate is calculated based on the estimated rental value. All buildings of the Leasinvest Real Estate portfolio are taken into account, including those for which a rental guarantee was received, but excluding the development projects.
[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.
[3] The net current result is calculated as the net result excluding the portfolio result on the one hand, and the changes in fair value of the ineffective hedges on the other hand.
[4] The data per share are calculated based on the number of shares entitled to the result of the period (4,012,832), i.e. the number of issued shares (4,012,832) minus the number of treasury shares on a consolidated basis (31/03/13 & 31/12/12: 0, previously: 16,538).
