Leasinvest Real Estate SCA: annual results 2013

18 februari 2014 Realisation of the further strategic reorientation of the portfolio towards a larger part of retail (42%) and the Grand Duchy of Luxembourg (60%); Rise of the direct property portfolio by 16% to € 718.2 million (based on fair value); Increase of the occupancy rate from 94.9% end-2012 to 96.9% end-2013; Growth of the net result per share from € 5.11 end-2012 to € 5.43 end-2013 Higher net result by 31% to € 26.9 million compared to € 20.5 million in 2012; Increase of the net current result pro rata[1] per share from € 5.26 end-2012 to € 5.37 end-2013; Increase of net current result by 14% to € 24.1 million compared to € 21.1 million in 2012; Growth of dividend by 2.27% to € 4.50 gross per share (net € 3.3375), in comparison with a gross dividend of € 4.40 in 2012. 1. Activity report period 01/01/13-31/12/13 Investments and divestments Investments Acquisition of economic property shopping center Knauf Pommerloch The in principle agreement signed in August 2012 with the owner of the two Knauf shopping centers located in the North of the Grand Duchy of Luxembourg has been fully realized on 10 September 2013, after the acquisition of the real estate certificates of the first Knauf shopping center Schmiede in September 2012, by the acquisition of the economic property of the second Knauf shopping center in Pommerloch. On 10 September 2013 Leasinvest Real Estate has acquired, in execution of this agreement, through its 100% subsidiary Leasinvest Immo Lux SA located in Luxembourg, the economic property of Knauf Pommerloch for a value of € 96.5 million (which is not higher than the fair value) through the 100% subscription of a private issue of real estate certificates. This shopping center consists of 60 shops with over 26,000 m² of commercial space and more than 1,000 parking spaces, and 2,700 m² of offices currently commercialized. The shopping center is entirely let to different renowned retailers and attracts since more than 10 years visitors from both Luxembourg and Belgium. With the acquisition of these 2 Knauf shopping centers, Leasinvest Immo Lux has a leading market position in the North of Luxembourg. The amount of the successful capital increase of end-June 2013 of € 60.7 million (see below), together with the available credit lines, has been used to finance this acquisition of € 96.5 million. Acquisition of a retail building of 12,000 m² in the Grand Duchy of Luxembour On 2 December 2013 Leasinvest Real Estate, via its 100% subsidiary Leasinvest Immo Lux, acquired 100% of the shares of a company owning a retail building of more than 12,000 m² with 475 parking spaces, located in the periphery of the city of Luxemburg. This very well located retail building is leased for a fixed term of 10 years to the German DIY group Hornbach, market leader in the Grand Duchy of Luxembourg and the only DIY-store of this size in Luxembourg. The acquisition value of the building amounted to € 25.5 million, which corresponds to the fair value based on an initial yield of 6.75%. Leasinvest Immo Lux owns in Luxembourg more than 100,000 m² of shops in 7 regions, namely Schmiede, Pommerloch, Diekirch, Strassen, Bertrange, Foetz and Dudelange. Subscription of capital increase Retail Estates At the end of June Leasinvest Real Estate has subscribed the public capital increase of Retail Estates through exercising its preferential subscription rights, and has acquired 145,721 shares at € 49.75 per share, for a total of € 7,249 thousand. Consequently, the share of Leasinvest Real Estate in the capital of Retail Estates remained unchanged at 10%. These new shares created through the capital increase entitle to a full dividend for its financial year starting as of 1 April 2013. Divestments 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 March 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 a net amount of approximately € 19.5 million, corresponding to the fair value of the building. The proceeds of this sale have been reinvested in the development of the former Hotel Rix located at the Boulevard Royal in Luxembourg City, where a new office building is constructed of which the reception if foreseen in the spring of 2015 (see below). 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, which is not lower than the fair value. On this sale, a limited capital gain was realized. Sale of the remaining two floors in the building Mercure in the Grand Duchy of Luxembourg At the end of April and at the beginning of May 2013 Leasinvest Immo Lux SA has sold, for a net amount of € 1.9 million, the two remaining floors of the office building "Mercure" held in co-ownership (located at the avenue de la Gare in the City of Luxembourg). On this sale, a capital gain of € 600 thousand was realized. Divestment office building Delta Business Park in Kontich On 13 September 2013 the office building of the Delta Business Park located at Kontichsesteenweg in the technology park Satenrozen in Kontich was sold for a net amount of € 2.2 million, or close to its fair value. Divestment of logistics building rue Lusambo in Forest On 9 October 2013 the semi-industrial building, consisting of offices and storage, located at rue Lusambo in Forest was sold, together with the underlying long lease of the BRDA (Brussels Regional Development Agency) for a net amount of € 1 million, reflecting its fair value. Developments and redevelopments Building permit for the building 'Royal 20' located Boulevard Royal in the Grand Duchy of Luxembourg On 9 October 2013 the building permit for the development of a new office project located Boulevard Royal in the City of Luxembourg was obtained. The demolition works of the former "Hotel Rix" have started and the completion of the building is foreseen in the spring of 2015. On this top location a new office building of approximately 5.000 m², named "Royal20", that will meet high energy performance standards, will be realised, and it will be designed by the renowned French architect firm Agences Elisabeth & Christian de Portzamparc. Lettings The further commercialization of the lettings evolved favourably in 2013, despite the still challenging market situation. The Crescent In The Crescent that was fully converted in 2012 into a 'green intelligent building' and is used as a business center with different facilities (catering, meeting rooms, etc.) different service contracts have been concluded in the meanwhile, resulting in an occupancy rate of 69% at the end of 2013. Canal Logistics Orchestra-Prémaman SA leases 5,550 m² in Canal Logistics Brussels as of 4 December 2013 for an 8-year period. The French group Orchestra founded in 1995, of which Prémaman became part since July 2012, is market leader in baby supplies, maternity fashion and children's wear, from birth till 14 years, and operates in a number of European countries. Orchéstra-Prémaman will use the Canal Logistics site as a logistics platform for the supply of its shops in the Brussels Region. Financing Public capital increase of € 60,655,489 At the beginning of June 2013 the manager of Leasinvest Real Estate proceeded to a successful capital increase within the framework of the authorized capital, respecting the preferential subscription rights, of Leasinvest Real Estate for an amount of € 60,655,489 (including share premium) and this, through a public offering of 926,038 new shares issued at € 65.50. Consequently, the total amount of shares amounts to 4,938,870 at the end of June, in comparison with 4,012,832 end-2012. The subscription period ran from 5 June 2013 till 19 June 2013 included and was fully subscribed after the sale of the scrips (91.5% through the exercise of preferential subscription rights and the balance through scrips). BNP Paribas Fortis acted as "Sole Global Coordinator and Sole Bookrunner"; ING Belgium and Belfius Bank as "Co-Lead Managers". Public issue of bonds for an amount of € 75 million On 27 September Leasinvest Real Estate raised, already after one day, the foreseen maximum amount of € 75 million through the issue of a public bond. The Joint Lead Managers (Belfius Bank NV/SA, BNP Paribas Fortis NV/SA and ING Bank NV, Belgian Branch) received subscriptions for a higher amount, subject to which the subscriptions were proportionally reduced. These bonds have a 6-year term. These bonds have been issued and have been admitted for trading on the regulated market of NYSE Euronext Brussels on 9 October 2013 and offer an annual gross coupon of 3.75%. This represents a gross actuarial yield of 3.399% on an annual basis and the net annual actuarial yield is 2.472% (after deduction of 25% withholding tax). This operation was coordinated by ING Bank NV acting as Arranger. Successful private placement of € 20 million On 4 December Leasinvest Real Estate proceeded to the early successful closing of a private placement for a total amount of € 20 million. The bonds have a 7- year term, are due 4 December 2020, and bear a fixed annual gross yield of 3.528%. The issue price of the bonds was equal to their nominal amount, being € 100,000. The bonds were placed with institutional investors. Bank Degroof NV/SA acted as Lead Manager. The net proceeds of these issues were used for realising the company's strategy and more specifically to fund the further growth and diversification of the real estate portfolio, to diversify the funding sources and to increase the average duration of the debt. New and extended credit lines Besides the successful bond issues described above, Leasinvest Real Estate has concluded additional credit lines in 2013 or has renewed existing credit lines. The credit lines (excl. the € 95 million of bonds) amount to € 448.7 million at the end of 2013 compared to € 386.7 million in 2012, an increase of € 62 million. This net increase is mainly (€ 40 million) the consequence of new credit lines with financial institutions which were not granting credits at the end of 2012, and which further indicates, besides the successful bond issues, to a better diversification of the financing resources. 2. Consolidated key figures Key figures real estate portfolio (1) 31/12/2013 31/12/2012 Fair value real estate portfolio  (€ 1,000) (2) 718,234 617,763 Fair value real estate portfolio, incl. participation 759,290 649,254 Retail Estates (€ 1,000) (2) Investment value real estate portfolio (€ 1,000) (3) 731,850 633,301 Rental yield based on fair value (4) (5) 7.31% 7.30% Rental yield based on investment value (4) (5) 7.18% 7.14% Occupancy rate (5) (6) 96.90% 94.9% Average duration of leases (years) 5.23 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. The fair value of Retail Estates has been defined based on the share price on 31/12/13. (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. The consolidated real estate portfolio of Leasinvest Real Estate at the end of 2013 is composed of 34 sites (including the assets held for sale & the development projects) with a total surface of 429,579 m², of which 18 are located in Luxembourg (60% compared to 53% the previous financial year) and 16 in Belgium (40% of the fair value compared to 47% the previous financial year). The breakdown according to asset class has changed with a strong increase of the asset class Retail compared to offices, as shown in the table below: Relative share 31/12/2013 31/12/2012 variation Offices Brussels 13% 16% -2.8% Offices rest of Belgium 4% 5% -1.3% Offices Grand Duchy of Luxembourg 19% 26% -6.5% Total offices 36% 47% -10.6% Logistics/Semi-industrial Belgium 19% 21% -2.2% Logistics/Semi-industrial Grand Duchy of 3% 3% -0.2% Luxembourg Total Logistics/Semi-industrial 22% 24% -2.4% Retail Belgium 5% 5% -0.5% Retail Grand Duchy of Luxembourg 38% 24% 13.5% Total retail 42% 29% 13.0% Total real estate portfolio 100% 100% The fair value of the real estate portfolio amounts to € 718.2 million end-2013 compared to € 617.8 million end-December 2012. The increase is mainly the consequence of the acquisition of the economic property of the shopping center Knauf Pommerloch in the third quarter of 2013 (€ 96.5 million). This investment was partially funded by the proceeds from the public capital increase realized at the end of June. In the fourth quarter a retail building was acquired in the Grand Duchy of Luxembourg, leased for a fixed term of 10 years to the German DIY-group Hornbach, acquired for € 25.5 million. In 2013 some less strategic buildings were also sold for approximately € 27 million (book value), among which the Pasteur office building (located in the Grand Duchy of Luxembourg). The global direct and indirect real estate portfolio (including the participation in Retail Estates SA) amounts to nearly € 760 million end-2013. By the realized transactions, the retail part increases to 42% and the offices part in the direct portfolio further decreases to 36%, of which 19% is located in the Grand Duchy of Luxembourg and 17% in Belgium, and also the part of the Grand Duchy of Luxembourg (60%) further increased in the direct portfolio compared to Belgium (40%). Notwithstanding the difficult letting market in Belgium, the average occupancy rate of the buildings increased under the impulse of the investments made and the successful lettings. End-2013 this rate amounted to 96.9% compared to 94.9% end-2012. The occupancy rate for Belgium increased to 93.32% (2012: 90.89%), while it remains at a constant very high level for the Grand Duchy of Luxembourg and even slightly increased to 99.43% in comparison with 99.28% end-2012. The rental yield of the real estate portfolio in operation based on the fair value amounts to 7.31% (compared to 7.30% end-2012), and based on the investment value to 7.18% (compared to 7.14% end-2012).   31/12/2013 31/12/2012 Rental income (€ 1,000) 45,186 37,959 Net rental result per share (€)  9.15 9.46 Net current result (€ 1,000) (1) 24,128 21,113 Net current result per share (€) (1) (2) 4.88 5.26 Net result group share (€ 1,000)  26,928 20,508 Net result group share per share (€) (2) 5.45 5.11 Global result group share (€ 1,000) 37,305 9,744 Global result group share per share (€) (2) 7.55 2.43 Net current result per share pro rata (2) 5.37 5.26 (1) The net current result consists of the net result excluding the portfolio result and the changes in fair value of the ineffective hedges. (2) The results per share are calculated based on the number of shares entitled to the result of the period. The net current result rose by 14% from € 21.1 million (or € 5.26 per share) end-2012 to € 24.1 million (or € 4.88 per share) end-2013. This increase is the consequence of a higher rental income. If we take into account the weighing of the part of the result compared to the number of outstanding shares, that increased at the end of June following the public capital increase, the net current result per share amounts to € 5.37 end-2013 in comparison with € 5.26 per share end-2012. The net result, group share, amounted to € 26.9 million compared to € 20.5 million in 2012, or a rise of 31%. In terms of net result per share, this results in € 5.45 end-2013 compared to € 5.11 end-2012. This increase is mainly the consequence, besides the higher rental income mentioned above, of a positive change in the fair value of the real estate portfolio and of the financial assets and liabilities in comparison with 2012.   31/12/2013 31/12/2012 Net asset value group share (€ 1,000) 335,334 256,005 Net asset value group share per share (1) 67.9 63.8 Net asset value group share per share based on 70.7 67.7 investment value (1) Net asset value group share per share EPRA (1) 71.5 70.6 Total assets (€ 1,000) 777,867 667,026 Financial debt 407,602 364,409 Financial debt ratio (pursuant RD 7/12/2010) 53.53% 56.19% Average duration credit lines (years) 3.7 2.64 Average funding cost (excl. fair value changes hedges) 3.29% 3.04% Average duration hedges (years) 5.63 5.43 (1) The net asset value per share is calculated based on the number of shares entitled to the result of the period. 3. Outlook financial year 2014 Leasinvest Real Estate has in 2013 realized its strategic reorientation and expects that 2014 will become a year where this strategic reorientation will further contribute positively to the results. As a consequence it is expected that unless exceptional circumstances and unforeseen capital losses on the existing real estate portfolio and interest rate hedges a better net result and better net current result will be achieved than in 2013. 4. Financial review       12 months (in 1,000 €)   2013 2012 (+) Rental income   45,186 37,959 (+) Writeback of lease payments sold and discounted 0 0 (+/-) Related-rental expenses   0 47 NET RENTAL RESULT   45,186 38,006 (+) Recovery of property charges   92 212 (+) Recovery income of charges and taxes normally payable 3,509 3,463   by tenants on let properties (-) Costs payable by tenants and borne by landlord for 0 0   rental damage and refurbishment at end of lease (-) Charges and taxes normally payable by tenants on let -3,509 -3,463 properties (+/-) Other related-rental expenses and income   1,617 -1,542 PROPERTY RESULT   43,661 36,676 (-) Technical costs   -1,559 -1,042 (-) Commercial costs   -696 -514 (-) Charges and taxes on unlet properties   -295 -507 (-) Property management costs   -3,639 -3,123 (-) Other property charges   -528 -363 PROPERTY CHARGES   -6,717 -5,549 PROPERTY OPERATING RESULT    36,944 31,127 (-) Corporate operating charges   -2,374 -1,824 (+/-) Other operating charges and income   -343 -302 OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO   34,227 29,001 (+/-) Result on disposal of investment properties   -146 153 (+/-) Charges in fair value of investment   1,978 1,342 properties OPERATING RESULT   36,059 30,496 (+) Financial income   2,254 2,203 (-) Net intrest charges   -10,810 -8,787 (-) Other financial charges   -1,365 -1,076 (+/-) Changes in fair value of financial assets   966 -2,101 FINANCIAL RESULT   -8,955 -9,761 PRE-TAX RESULT   27,104 20,735 (+/-) Corporate taxes   -178 -227 (+/-) Exit tax   0 0 TAXES   -178 -227 NET RESULT   26,926 20,508 Comments on the income statement The rental income amounted to € 45.2 million compared to € 37.96 million a year earlier, an increase by 19% or € 7.2 million. This evolution is mainly the result of, on the one hand, the investments realized in September 2012 in Knauf Shopping Center Schmiede and the State Archives in Bruges, and on the other hand, of the contribution of 4 months of income from Knauf Shopping Center Pommerloch and nearly 1 month of income from Hornbach following the investments realized at the end of 2013, or in total € 6.5 million. The divestment of the buildings Pasteur and Mercure in the Grand Duchy of Luxembourg and Delta Business Park (Satenrozen), a part of Vierwinden, Torenhof (The Crescent Ghent) and a building located rue Lusambo in Belgium had a negative impact on the rental income of € 1.5 million. At constant portfolio the rental income rises by 9% or € 1.6 million in comparison with the same period last year (excl. rental rebates € -0.4 million). Moreover, the rental result was positively influenced for nearly € 1 million due to  a settlement with a tenant for the early termination of its lease. The property charges have increased by 21% and amount to € 6.7 million in comparison with € 5.5 million end-2012, and this, mainly following higher technical costs. The property management costs comprise the management fee paid to the statutory manager of the sicafi (Leasinvest Real Estate Management SA), and the costs of the personnel of Leasinvest Services SA, a 100% subsidiary of Leasinvest Real Estate, responsible for the technical management of the buildings. The evolution of the property management costs is in proportion to the rise of the rental income. The corporate operating charges increased to € 2.4 million compared to € 1.8 million in 2012, explained by a higher subscription tax and due diligence costs. The result on disposal of investment properties (€ -0.1 million) consists of the limited realized capital loss on the divestment of the less strategic buildings that were however not sold below the fair value at the moment of the sale. Also, on a sale a rental guarantee of € -02 million was foreseen. The changes in fair value of the real estate portfolio of € 2 million (€ 1.3 million end-2012) are the consequence of an upward evaluation of the buildings by the external real estate expert. The financial result amounts to € - 9 million and is less negative than in 2012 (€ -9.8 million). This result is however positively influenced by the positive changes in fair value (non-cash) of the ineffective hedges and other fair value adjustments on financial assets and liabilities of € 0.9 million (2012: € -2.1 million). Making abstraction of the dividend received from Retail Estates, the impact of the changes in fair value of the hedges and other financial assets and liabilities, the financial result is more negative in 2013 than in 2012 (2013: € -10.5 million; 2012: € -7.7 million). This evolution is explained by a higher average debt taken up with a slightly higher funding cost (2013: 3.29% in comparison with 3.04% in 2012). The net current result rose by 14% from € 21.1 million (or € 5.26 per share) end-2012 to € 24.1 million (or € 4.88 per share) end-2013. If we take into account the weighing of the part of the result compared to the number of outstanding shares, that increased at the end of June following the public capital increase, the net current result per share amounts to € 5.37 end-2013 in comparison with € 5.26 per share end-2012. This increase is the consequence of a higher rental income. The net result, group share, amounted to € 26.9 million compared to € 20.5 million in 2012. In terms of net result per share, this results in € 5.45 end- 2013 compared to € 5.11 end-2012. This increase is mainly the consequence, besides the higher rental income mentioned above, of a positive change in the fair value of the real estate portfolio and of the financial assets and liabilities in comparison with 2012. (in 1,000 euro) Period Period   31/12/2013 31/12/2012 ASSETS I. NON-CURRENT ASSETS 757,058 634,775 Intangible assets 1 2 Investment properties 690,191 578,163 Other tangible assets 1,140 1,212 Non-current financial assets 47,827 37,499 Finance lease receivables 17,899 17,899 II. CURRENT ASSETS 20,809 32,251 Assets held for sale 10,144 21,701 Current financial assets 0 1 Trade receivables 5,427 6,605 Tax receivables and other current assets 1,197 1,253 Cash and cash equivalents 2,254 2,436 Deferred charges and accrued income 1,786 255 TOTAL ASSETS 777,867 667,026 LIABILITIES TOTAL SHAREHOLDERS' EQUITY 335,334 256,010 I. SHAREHOLDERS' EQUITY ATTRIBUTABLE TO 335,331 256,005 THE SHAREHOLDERS OF THE PARENT COMPANY Capital 54,315 44,128 Share premium account 121,091 70,622 Reserves 132,997 120,747 Net result of the financial year 26,928 20,508 II. MINORITY INTERESTS 4 5 LIABILITIES 442,533 411,016 I. NON-CURRENT LIABILITIES 301,299 256,591 Provisions 0 0 Non-current financial debts 282,731 228,674 - Credit institutions 186,776 228,467 - Other 95,955 207 Other non-current financial liabilities 18,568 27,917 Other non-current liabilities II. CURRENT LIABILITIES 141,234 154,425 Provisions Current financial debts 125,058 135,942 - Credit institutions 25,099 63,000 - Other 99,959 72,942 Trade debts and other current debts 6,077 7,723 - Exit tax - Other 6,077 7,723 Other current liabilities 2,203 2,180 Accred charges and deferred income 7,896 8,580 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 777,867 667,026 Comments on the balance sheet The fair value of the real estate portfolio, composed of the investment properties, finance lease receivables and assets held for sale, amounts to € 718.2 million end-2013 compared to € 617.8 million at the end of December 2012. The increase is mainly the consequence of the acquisition of the economic property of the shopping center Knauf Pommerloch in the third quarter of 2013 (€ 96.5 million). This investment was partially funded by the proceeds from the public capital increase realized at the end of June. In the fourth quarter a retail building was acquired in the Grand Duchy of Luxembourg, leased for a fixed term of 10 years to the German DIY-group Hornbach, acquired for € 25.5 million. In 2013 some less strategic buildings were also sold for approximately € 27 million (book value), among which the Pasteur building (offices located in the Grand Duchy of Luxembourg). The global direct and indirect real estate portfolio (including the participation in Retail Estates SA) amounts to nearly € 760 million end-2013. The non-current financial assets increased from € 37.5 million to € 47.8 million and mainly comprise the participation in Retail Estates. End-June Leasinvest Real Estate has subscribed the public capital increase of Retail Estates by exercising all its preferential subscription rights, and has acquired 145,721 shares at € 49.75 per share, i.e. € 7,249 thousand in total. Consequently, the share of Leasinvest in the capital of Retail Estates remained unchanged at 10%. These new shares created following the capital increase entitle to a full dividend. The account finance lease receivables for € 17.9 million comprises the State Archives in Bruges, presented as a financial leasing according to IFRS. At the end of the financial year 2013 shareholders' equity, group share (based on the fair value of the investment properties) amounts to € 335 million (end- 2012: € 256 million). The increase is due to the evolution of the global result, amounting to € 37.3 million end-2013 in comparison with € 9.7 million end-2012 and the capital increase realized in June 2013 for € 60.6 million before issue costs. End-2013 net asset value per share amounts to € 67.9 (end-2012: € 63.8). End- 2013 the closing price of the Leasinvest Real Estate share stood at € 73.6, or 8% higher than the net asset value; if we take into account the pro rata dividend of € 2.14, the premium would amount to 11.5%. The net asset value according to the EPRA best practices amounts to € 71.5 per share end-2013 in comparison with € 70.6 end-2012. An increase by € 0.9 per share despite the dilution following the capital increase. At the end of 2013, the share price amounted to € 73.6 per share which represents a premium of 3%. Due to the balance of the different investments and divestments the financial debt has increased from € 364.4 million end-2012 to € 407.6 million end-2013. However, following the successful public capital increase of € 60.6 million and the realized global result, the debt ratio has decreased from 56.19% end-2012 to 53.53% end-2013. 5. Important events after the closing of the financial year 2013 Sale office building Avenue Louise 66 in Brussels On 27 January 2014 Leasinvest Real Estate sold the office building located Avenue Louise 66 in Brussels to Immo Graanmarkt sprl for a net amount of € 10,350,000 which exceeds the fair value. This office complex located opposite the Steigenberger (ex-Conrad) hotel consists of 2 connected buildings and 1 commercial space (ground floor). It has a total rental surface of 3,398 m² and is entirely let. 6. Appropriation of the result - dividend payment The board of directors of the statutory manager proposes to the ordinary general shareholders' meeting to pay a gross dividend of € 4.50, and net, free of withholding tax of 25%, € 3.3375 on 26 May 2014, for all the shares existing before the public capital increase. The pro rata gross dividend for the shares existing before the capital increase amounts to € 2.14 gross, and the pro rata gross dividend for the new shares, created following the capital increase, amounts to € 2.36 gross (net € 1.77). Subject to the approval of the ordinary general shareholders' meeting of 19 May 2014, dividends will be paid out on presentation of coupon no 16, or € 2.14 gross, on 4 June 2013 (after closing of the stock exchange), detached from the shares existing before the capital increase, representing the pro rata dividend for the financial year 2013, calculated pro rata for the period between 1 January 2013 and the issue date of the new shares, i.e. 25 June 2013, and coupon no 17, or € 2.36 gross, representing the dividend for the period after the issue date of the new shares and 31 December 2013, as of 26 May 2014 at the financial institutions Bank Delen (main paying agent), ING Bank, Belfius Bank, BNP Paribas Fortis Bank and Bank Degroof. The Ex-date is 21/05/14 and the Record date is 23/05/14. 7. Statement of the auditor The auditor has confirmed that his audit of the consolidated annual accounts, established according to the International Financial Reporting Standards as adopted by the European Union, has been fully completed and has not shown any important corrections, which should be made to the accounting data, adopted from the consolidated accounts, and presented in this press release. 8. Financial calendar 18/02/14              Year results 2013 (31/12/13) 31/03/14              Annual financial report 2013 14/05/14              Interim statement Q1 (31/03/14) 19/05/14              Annual meeting of shareholders 26/05/14              Dividend payment                 21/05/14              Ex-date                 23/05/14              Record date 26/08/14              Half-year financial report 2014 17/11/14              Interim statement Q3 (30/09/14) 19/02/15              Year results 2014 (31/12/14) 9. Annual financial report The annual financial report regarding the financial year 2013 in the form of a brochure, which comprises the annual accounts, the annual report and the report of the auditor, is available as from 31/03/14 (PDF online) and can be obtained, on simple demand, at the following address: Leasinvest Real Estate SCA Schermersstraat 42 (administrative office), 2000 Antwerp T +32 3 238 98 77 - F +32 3 237 52 99 E investor.relations@leasinvest.be W www.leasinvest.be (brochure download under investors information, financial reports) 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) Leasinvest Real Estate SCA invests in high quality and well-located retail buildings, offices and logistics buildings in the Grand Duchy of Luxembourg and in Belgium. At present the real estate portfolio of Leasinvest comprises 34 sites of which 18 are located in the Grand Duchy of Luxembourg and 16 in Belgium, with a total real estate value of almost € 720 million. The sicafi is listed on Euronext Brussels and has a market capitalization of approximately € 366 million (value on 14 February 2014). -------------------------------------------------------------------------------- [1]Calculated by weighing the result realised before the public capital increase and after this operation, based on the number of shares before and after this capital increase. LRE year results 2013: http://hugin.info/134797/R/1762597/597103.pdf This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Leasinvest Real Estate Comm. VA via GlobeNewswire [HUG#1762597]