Leasinvest Real Estate: Trading update / Important investments

 

1. Valuation of the portfolio.The investment value of the portfolio, as estimated by the real estate valuers Cushman & Wakefield Healey & Baker and Winssinger & Associates, amounted to € 255.9 million on 30/09/2004, which results in a slight decrease of 0.62% compared to the investment value on 30/06/2004.

The occupancy rate (1) amounted to 92.3% on 30/09/2004 and is lower than a quarter earlier, i.e. 94.1%, due to the departure of a few tenants in the Axxes Business Park and in the Brixton Business Park. The rental yield was 7.51% (7.70% on 30/06/2004).

 

The first quarter of the financial year 2004-2005, ended with capital and reserves of € 150.5 million, which corresponds to a net asset value per share (including dividend) of € 53.17. The net asset value per share on 30/09/2003 amounted to € 53.94.

The debt ratio of Leasinvest Real Estate is only 39.31%, which offers an extra investment capacity via debt financing of € 53.4 million before obtaining the maximum debt ratio allowed of 50%.

The rents of the past first quarter amounted to € 4.5 million (€ 5 million for the first quarter of the previous financial year). This evolution is explained by the combination of the divestments during the past financial year and the decrease of the occupancy rate.

 

Leasinvest Real Estate has acquired, after the closing of the first quarter, via the take-over of the majority of the shares of the 'Société Anonyme' Square de Meeûs 5-6, a very well situated office building in the Central Business District in Brussels. The building is entirely let to a diplomatic Representation with the European Union and an international association.

Leasinvest Real Estate acquires, jointly with partner AXA Belgium SA, with whom a collaboration agreement has been signed on 16 July 2004 in order to support the growth of the real estate fund, immediately 80% of the shares (50.07% for Leasinvest Real Estate and 29.93% for Axa Belgium). The other 20% of the shares remain, at present, in the hands of the sellers.

The office building consists of 5,971 m2 of offices, 120 m2 of archives and 87 parking spaces. The building was constructed in 1974 and has been substantially renovated in different phases (period 1996-2002). The building has been valued at € 15.63 million by the real estate valuers.

 

Subject to the decision of approval by the extraordinary general meeting of shareholders, which will be held on 23 December 2004 at 14.30h, Leasinvest Real Estate will also acquire a second office building in the Central Business District, i.e. the building situated Rue Montoyer 63 in 1000 Brussels. This building is entirely let to the European Parliament. The building will be acquired by Leasinvest Real Estate as the result of the partial splitting-up of Leasinvest SA against the creation of 418.850 new shares of Leasinvest Real Estate.

The office building Rue Montoyer 63 consists of 6,684 m2 of offices, 61 m2 of archives and 56 single and 6 double inside parking spaces. It was constructed in 1974 and partially renovated in 2003. The real estate valuers have estimated the building at € 23,820,000.

Both investments will bring the current investment value of the portfolio to € 295.35 million (basis 30/09/2004). This reinforces the presence of Leasinvest Real Estate in the Central Business District, which will as a result represent 21.2% of the total portfolio, compared to 9% before. The office part of the portfolio will increase from 75.6% to 78.9% and the importance of Brussels and its surroundings will grow from 75.4% to 78.6% (2).

 

 

Real estate fund Leasinvest Real Estate SCA invests in high-quality and well-situated office buildings (Brussels / Ghent / Antwerp), as well as in logistic buildings and retail premises.

The investment value on 30 September 2004 was € 255.9 million.The portfolio represents an area of more than 192,000 m2, in 16 different locations and spread across 39 buildings.

The real estate fund is listed on the Euronext and was included in January 2002 in the Next Prime segment. Leasinvest Real Estate SCA has a market capitalisation of € 158.4 million (value on 8 November 2004).

 

(1) The occupancy rate is based upon the estimated rental value (all buildings of the Leasinvest Real Estate portfolio) have been taken into account.

(2) For the calculation of the percentages, Square the Meeûs has been taken into account for 100%.