Home Invest Belgium NV

Earnings Release • May 18, 2022

Under embargo until 18/05/2022 5:40 PM Regulated information

• Qualitative residential real estate portfolio

• Increase in the fair value of the real estate portfolio to € 734,35 million at 31 March 2022.
• The investment properties available for rent consist for 91.2% of residential real estate.
• More than 50% of the investment properties available for rent are younger than 10 years; more than 70% are younger than 20 years.

• Strong rental market results in record occupancy rate

• Further acceleration of the residential rental market with strong demand for quality housing.
• Increase of the average occupancy rate to 98.2% in the first three months of 2022 (compared to 96.6 % for the first three months of 2021).

• Increase in the EPRA earnings

• 13.2% increase in the EPRA earnings to € 2.68 million during the first three months of 2022 (compared to € 2.37 million during the first three months of 2021).
• 13.2% increase in the EPRA earnings per share to € 0.81 in the first three months of 2022 (compared to € 0.72 in the first three months of 2021).

• Increase in Net Asset Value per share (NAV)

• Increase in EPRA NTA per share to € 105.80 at 31 March 2022 (+ 0.8% compared to € 104,96 at 31 December 2021).

• Stable debt ratio and strong liquidity position

• Debt ratio of 53.83% (RREC Royal Decree) and 52.67% (IFRS) at 31 March 2022.
• The average cost of debt amounts to 1.66% in the first three months of 2022.
• Home Invest Belgium has € 40 million available credit lines.
• The company does not have credit lines or bonds maturing in 2022. The first coming maturity dates fall in the second half of 2023.

• Outlook 2022 and distribution to shareholders

• For 2022 Home Invest Belgium expects an increase of the EPRA earning per share to € 5.20.
• The General Meeting and Extraordinary General Meeting of shareholders of 3 May 2022 has approved a total distribution of € 5.31 per share, which implies an increase for the 22nd consecutive year. The distribution consists of the combination of a gross dividend of € 4.96 per share on the one hand and a capital decrease by € 0.35 per share on the other.
• For the coming years, the Board of Directors foresees a pay-out policy based on an annual increase equal to or higher than inflation.

1.		Real estate portfolio……………………………………………………………………………………………………………………………………………….	p.3
2.		Consolidated key figures……………………………………………………………………………………………………………………………………	p.4
3.	Notes to the consolidated key figures…………………………………………………………………………………………………………
	3.1.	Notes to the consolidated income statement………………………………………………………………………	p.6
	3.2.	Notes to the consolidated balance sheet………………………………………….……………………………………	p.7
	3.3.	Funding structure……………………………………………………………………….………………………………………………………	p.8
4.	Activities in the first three months of 2022…………………………………………………………………………………………….
	4.1.	Rental activities………………………………………………………………………………………………………………………………………	p.10
	4.2.	Development and refurbishment projects …………………………………………………………………………….	p.10
5.		Distribution to the shareholders……………………………………………………………………………………………………………………	p.11
6.	Outlook…………………………………………………………………………………………………………………………………………………………………………		p.12
7.	APM - Alternative Performance Measures…………………………………………………………………………………………………		p.13
8.		Shareholder's calendar……………………………………………………………………………………………………………………………………….	p.17

At 31 March 2022, Home Invest Belgium holds a real estate portfolio1 of € 734.35 million, compared to € 725.47 million at 31 December 2021, or an increase of 1.2%.

REAL ESTATE PORTFOLIO	31/03/2022	31/12/2021
Fair value of investment properties	€ 709,62 m	€ 702,23 m
Investment properties available for rent	€ 681,17 m	€ 659,81 m
Development projects	€ 28,44 m	€ 42,42 m
Investments in associated companies and joint ventures	€ 24,73 m	€ 23,23 m
TOTAL	€ 734,35 m	€ 725,47 m

The fair value of the investment properties available for rent amounts to € 681.17 million across 51 sites.

The total contractual annual rents and the estimated rental value of vacant space is € 32.68 million as at 31 March 2022.

The investment properties available for rent are valued by independent real estate experts at an average gross rental yield2 of 4.8%.

Residential properties accounted for 91.2% of investment properties available for rent at 31 March 2022.

68.1% of the investment properties available for rent are located in the Brussels Capital Region, 11.1% in the Walloon Region, 10.9% in the Flemish Region and 9.9% in the Netherlands.

¹ The real estate portfolio consists of (i) investment properties and (ii) investments in associated companies and joint ventures equity method.

² Gross rental yield = (contractual gross rents on a yearly basis + estimated rental value on vacant spaces) / (fair value of the investment properties available for rent).

CONSOLIDATED KEY FIGURES		(in k €)
INCOME STATEMENT	31/03/2022	31/03/2021
NET RENTAL INCOME	7.465	6.530
OPERATING RESULT BEFORE PORTFOLIO RESULT	3.700	3.165
OPERATING MARGIN3	49,6%	48,5%
XVI. Result on the sale of investment properties	-15	61
XVIII. Changes in fair value of investment properties	-656	7.001
XIX. Other portfolio result	-267	1.006
PORTFOLIO RESULT	-939	8.069
OPERATING RESULT	2.762	11.234
XX. Financial income	3	4
XXI. Net interest charges	-1.320	-1.087
XXII. Other financial charges	-20	-37
XXIII. Changes in fair value of financial assets and liabilities	11.926	1.187
FINANCIAL RESULT	10.590	68
XXIV. Share in the profit of associated companies and joint ventures	1.499	484
TAXES	-69	-61
NET RESULT	14.782	11.724
Exclusion of portfolio result	+939	-8.069
Exclusion of changes in fair value of financial assets and liabilities	-11.926	-1.187
Exclusion of non-EPRA elements of the share in the result of associated companies and joint ventures	-1.118	-103
EPRA EARNINGS4	2.676	2.365
Average number of shares5	3.286.786	3.288.146
NET RESULT PER SHARE (in €)	4,50	3,57
EPRA EARNINGS PER SHARE (in €)	0,81	0,72

³ Operating margin = (operating result before portfolio result) / (net rental income)

⁴ EPRA earning is the net result excluding the (i) portfolio result (ii) the changes in the fair value of financial assets and liabilities and (iii) the non-EPRA elements of the share in the result of associated companies and joint ventures. This term is used in accordance with the Best Practices Recommendations of EPRA.

⁵ The average number of shares is calculated excluding the 27.176 shares held by the company.

BALANCE	31/03/2022	31/12/2021
Shareholders' equity (attributable to shareholders of parent company)	355.995	342.950
Total assets	753.911	737.012
Debt ratio (RREC Royal Decree)6	53,83%	53,65%
Debt ratio (IFRS)7	52,67%	52,49%
PER SHARE	31/03/2022	31/12/2021
Number of shares at end of period8	3.272.682	3.286.786
Stock price at closing date	120,00	122,00
IFRS NAV per share9	108,78	104,34
Premium compared to IFRS NAV (at closing date)	10,3%	16,9%
EPRA NTA per share10	105,80	104,96
Premium compared to EPRA NTA (at closing date)	13,4%	16,2%

⁶ The debt ratio (RREC Royal Decree) is the debt ratio calculated in accordance with the RREC Royal Decree. This means that for the purposes of calculations of the debt ratio, participations in associated companies and joint ventures are processed following the proportionate consolidation method.

⁷ The debt ratio (IFRS) is calculated like the debt ratio (RREC Royal Decree) but based on and conciliating with a consolidated balance in accordance with IFRS where participations in joint ventures and associated companies are processed following the equity method.

⁸ The average number of shares is calculated excluding the 27.176 shares held by the company.

⁹ IFRS NAV per share = Net Asset Value or Net Value per share according to IFRS.

¹⁰ EPRA NTA per share = Net tangible assets per share following the Best Practices Recommendations of EPRA.

3.1. NOTES TO THE CONSOLIDATED INCOME STATEMENT

NET RENTAL INCOME

For the first three months of 2021, the net rental income amounted to € 7.47 million (compared to € 6.53 million during the first three months of 2021).

OPERATING RESULT BEFORE THE PORTFOLIO RESULT

The operating result before the portfolio result amounted to € 3.70 million during the first three months of 2022 (compared to € 3.17 million during the first three months of 2021).

The operating margin11 increased to 49.6 % in the three first months of 2022 (compared to 48.5 % during the first three months of 2021) due to cost control and economies of scale with the operating platform.

PORTFOLIO RESULT

During the first three months of 2022, Home Invest Belgium recorded a portfolio result of € -0.94 million.

The result on the sale of investment properties amounted to € -0.02 million during the first three months of 2022.

In addition, during the first three months of 2022, Home Invest Belgium recorded a negative change in the fair value of its investment properties amounting to € -0.66 million.

The other portfolio result amounts to € -0.27 million. This item includes the variations in deferred taxes.

¹¹ Operating margin = (operating result before portfolio result) / (net rental income)

FINANCIAL RESULT

The net interest charges amounted to € 1.32 million during the first three months of 2022. The average cost of debt12 amounted to 1.66 % during the same period.

The changes in the fair value of the financial assets and liabilities amounted to € 11.93 million in the first 3 months of 2022. These changes are the consequence of a change in the fair value of the interest rate swaps.

TAXES

Taxes remained stable at € -0.69 million during the first three months of 2022 (compared to € -0.61 million in 2021).

NET RESULT

The net result (group share) of Home Invest Belgium amounted to € 14.78 million in the first 3 months of 2022, or € 4.50 per share.

EPRA EARNINGS

After adjustment of the net result for (i) the portfolio result, (ii) the changes in the fair value of the financial assets and liabilities, and (iii) the non-EPRA elements of the share in the result of associated companies and joint ventures, the EPRA earnings amount to € 2.68 million during the first three months of 2022, an increase of 13.2% (compared to € 2.37 million during the first three months of 2021).

EPRA earnings per share increased by 13.2% from € 0.72 during the first three months of 2021 to € 0.81 during the first three months of 2022.

3.2. NOTES TO THE CONSOLIDATED BALANCE SHEET

SHAREHOLDER'S EQUITY AND NAV PER SHARE

ON 31 March 2022, the shareholder's equity of the group stood at € 356.00 million, which is an increase of 3.8% compared to 31 December 2021.

The IFRS NAV per share has risen by 4.3% to stand at € 108.78 at 31 March 2022 (compared to € 104.34 at 31 December 2021).

EPRA NTA per share has risen by 0.8% to stand at € 105.80 at 31 March 2022 (compared to € 104.96 at 31 December 2021).

¹² The average funding cost is the interest costs including the credit margin and the cost of hedge instruments and increased by capitalised interests divided by the weighted average financial debt over the period in question.

3.3. FUNDING STRUCTURE

DEBT RATIO

The debt ratio (RREC Royal Decree) amounted to 53.83% at 31 March 2022. The debt ratio (IFRS) amounted to 52.67%.

Considering a maximum permitted debt ratio of 65%, Home Invest Belgium still has a debt capacity of € 242.96 million, as defined by the RREC Royal Decree, in order to fund new investments.

Considering Home Invest Belgium's strategy to keep the debt ratio in the medium and long term below 55%, Home Invest Belgium still has a debt capacity of € 19.81 million to fund new investments.

DEBT COMPOSITION

At 31 March 2022, Home Invest Belgium had € 382.00 million in financial debts composed of:

• Bilateral credit lines drawn for an amount of € 253.00 million with 7 different financial institutions, with well spread maturity dates until 2029. There are no maturities in 2022. The first coming maturity date is in the second half of 2023;
• Bonds for an amount of € 89.00 million, maturing in 2023;
• Short term treasury notes ("commercial paper") for an amount of € 40.00 million. Notwithstanding the short-term nature of the outstanding commercial paper, the outstanding amount is fully covered by available long-term credit lines (back-up lines).

MATURITY OF DEBTS (€ MIO)

The weighted average remaining duration of the financial debts amounts to 5.1 years.

At 31 March 2022, Home Invest Belgium disposed of € 80.00 million of undrawn available credit lines, of which:

• € 40.00 million long term back-up lines covering short-term outgoing treasury notes;
• € 40.00 million available credit lines.

HEDGES

At 31 March 2022, 92.1% of financial debts (for an amount of € 352.00 million) had a fixed interest rate, using Interest Rate Swaps as hedging instruments, among other things.

The fixed interest rates have a weighted average remaining duration of 6 years.

The total value of the hedges at closing date was positive for an amount of € 11.04 million due to a decrease in interest rates after conclusion of the hedges.

Through its hedging policy, the board of directors wishes to protect the company against potential increases in interest rate.

Type of debts Fixed/floating interest rates

3.1. RENTAL ACTIVITIES

Home Invest Belgium saw the residential rental market continue to accelerate in the first three months of 2022 with a strong demand for quality homes in the regions in which it is active. This resulted in a very high occupancy rate. The average occupancy rate13 of the investment properties available for lease increased to 98.2% in the first three months of 2022 (compared to 96.6% in the first three months of 2021).

3.2. DEVELOPMENT AND REFURBISHMENT PROJECTS

Delivery of The Fairview - Woluwe-Saint-Lambert (Brussels)

The Fairview project (avenue Marcel Thiry 204 in 1200 Woluwe-Saint-Lambert) was delivered in March 2022. It is a new construction project consisting of 42 spacious flats with parking. The project meets the strong demand for high-quality and sustainable homes in a pleasant living environment.

¹³ The average occupancy rate calculated as the average percentage over a certain period of the contractual rents of the rented spaces, in relation to the sum of the contractual rents of the rented spaces and the estimated rental value of the vacant spaces. The occupancy rate is calculated excluding (i) buildings being renovated (ii) building being commercialised for the first time and (iii) buildings being sold.

On 3 May 2022, the General Meeting and the Extraordinary General Meeting approved the total distribution to shareholders of €5.31 per share, an increase for the 22nd consecutive year.

The distribution to shareholders will consist of the combination of:

• a gross dividend of €4.96 per share. An interim dividend of €4.25 gross per share was already paid on 10 December 2021. The final dividend will be €0.71 gross per share.

• a reduction of shareholders' equity by €0.35 per share. This distribution will in turn consist of a part reduction of capital and a part distribution of reserves (in accordance with Article 18, paragraph 7 of the WIB/Income Tax Code.)

The amounts and dates of the distributions to the shareholders are presented below:

Payment to shareholders: Dividend	€ 4.96 gross	Calendar
Interim dividend financial year 2021 (coupon n°31) – Ex date		Wednesday 8 December 2021
Interim dividend financial year 2021 (coupon n°31) – Record date		Thursday 9 December 2021
Interim dividend financial year 2021 (coupon n°31) – Payment date	€ 4.25 gross	Friday 10 December 2021
Final dividend financial year 2021 (coupon n°32) – Ex date		Monday 9 May 2022
Final dividend financial year 2021 (coupon n°32) – Record date		Tuesday 10 May 2022
Final dividend financial year 2021 (coupon n°32) – Payment date	€ 0.71 gross	Wednesday 11 May 2022

Distribution to shareholders: Reduction of shareholders' equity	€ 0.35 gross	Calendar
Capital reduction (coupon n°33) – Ex date		Monday 9 May 2022
Capital reduction (coupon n°33) – Record date		Tuesday 10 May 2022
Capital reduction (coupon n°33) – Payment date	€ 0.30 gross	Monday 25 July 2022
Distribution from the reserves (coupon n°34) – Ex date		Monday 9 May 2022
Distribution from the reserves (coupon n°34) – Record date		Tuesday 10 May 2022
Distribution from the reserves (coupon n°34) – Payment date	€ 0.05 gross	Monday 25 July 2022

For the years to come, the Board of Directors anticipates a dividend policy based on an annual increase in dividends equal to or higher than inflation. This is based on:

• the constant indexed rent flow from existing investment properties;
• the control of the operational costs of the company;
• the company's hedging policy, which provides good visibility on interest charges and makes them assessable in the medium term;
• The existing pipeline of project developments;

The company also emphasises the significant reserves it has built up over the years as a safety buffer for the future.

During the first three months of 2022, the operational results of Home Invest Belgium continued to evolve positively.

The residential rental market continues to grow steadily in those cities where Home Invest Belgium is active, mostly thanks to:

• a long-term urbanization trend, marked by demographic growth in big cities, including both young and older people, leading to increased demand for housing;
• an increasing number of tenants in big cities, due to factors including an increasing need for flexibility and a change in attitudes to private property and concepts of urban sharing.

Home Invest Belgium owns a sustainable portfolio given its young age. More than 50% of the investment properties available for rent are younger than 10 years. Given the quality and the location of the properties in predominantly large urban areas, Home Invest Belgium is well positioned to take on a leading role in the favourable trends of the residential market.

Against this background, the board of directors confirms its confidence in the long-term prospects of the company.

For 2022 Home Invest Belgium expects an increase of the EPRA earning per share to € 5.20.

Home Invest Belgium has used Alternative Performance Measures (APM) within the meaning of the Guidelines issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 in its financial communication for many years. A number of these APMs are recommended by the European Public Real Estate Association, EPRA, while others were established by the sector or by Home Invest Belgium to provide the reader with a better understanding of the company's results and performances.

Performance indicators that are defined by IFRS or by law, and indicators that are not based on items in the income statement or the balance sheet, are not considered to be APMs.

HEDGING RATIO

Definition:

This is the percentage of financial debt with a fixed interest rate compared to the total financial debt. The numerator corresponds to the sum of fixed-rate borrowing plus floating-rate debts after conversion into fixed-rate debts via IRS contracts in for at the end of the financial year. The denominator corresponds to the total amount of financial debt drawn on the closing date.

Purpose:

A significant portion of the company's financial debts are concluded at floating rates. This APM is used to measure the risk associated with interest rate fluctuations and its potential impact on the results.

(in € k)	31/03/2022	31/12/2021
Fixed-rate financial debt	129.000	129.000
Floating rate financial debt converted into fixed-rate debt through IRS contracts	223.000	223.000
Total fixed-rate financial debt	352.000	352.000
Floating-rate financial debt	30.000	30.000
Total financial debt	382.000	382.000
Hedging ratio	92,15%	92,15%

AVERAGE FINANCING COST

Definition:

The interest costs (including the credit margin and the cost of the hedging instruments) divided by the weighted average financial debt over the period in question. The numerator corresponds to the sum of the net interest costs included in item XXI of the income statement adjusted to take account of the interim interest included in the assets. The denominator corresponds to the average financial debt calculated over the period in question.

Purpose:

The company is partly financed by debt. This APM is used to measure the average cost of the interest paid.

(in € k)	31/03/2022	31/03/2021
Net interest charges (heading XXI)	1.320	1.085
Capitalised interest costs	243	188
Total cost of financial debt	1.563	1.273
Weighted average debt	94.192	80.630
Average funding cost	1,66%	1,58%

EPRA NAV METRICS

Definition:

EPRA published the new Best Practice Recommendations for financial disclosures of listed real estate companies in October 2019. EPRA NAV is being replaced by three new Net Asset Value indicators: EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net Disposal Value (NDV). The EPRA NAV indicators are obtained by adjusting the IFRS NAV in such a way that any shareholders receive the most relevant information about the value of the company's assets and liabilities.

Purpose:

• EPRA NRV: displaying the resources required to reconstitute the company through the investment markets based on the current capital and financing structure, including transfer taxes;
• EPRA NTA: displaying a NAV in which the property and other investments have been revalued to their respective fair values, excluding certain items that are not expected to materialise into a long-term investment property business model;
• EPRA NDV: represents the NAV of the company in a scenario when all assets are being old, and this scenario results in the value of any deferred taxes, debts and financial instruments being realised.

		31/03/2022
(in € k)		EPRA NTA	EPRA NRV	EPRA NDV
IFRS NAV (shareholders of the group)		355.995	355.995	355.995
(v)	Deferred taxes in respect of increases in the fair value of investment properties	1.901	1.901
(vi)	Fair value of financial instruments	-11.036	-11.036
(viii.b)	Intangible fixed assets	-618
(x)	Fair value of fixed rate debt			-2.264
(xi)	Transfer taxes		21.046
NAV		346.241	367.905	353.730
	Number of shares	3.272.682	3.272.682	3.272.682
NAV per share		105,80	112,42	108,09

		31/12/2021
(in € k)		EPRA NTA	EPRA NRV	EPRA NDV
IFRS NAV (shareholders of the group)		342.950	342.950	342.950
(v)	Deferred taxes in respect of increases in the fair value of investment properties	1.634	1.634
(vi)	Fair value of financial instruments	890	890
(viii.b)	Intangible fixed assets	-493
(x)	Fair value of fixed rate debt			-2.264
(xi)	Transfer taxes		21.843
NAV		344.981	367.317	340.686
	Number of shares	3.286.786	3.286.786	3.286.786
NAV per share		104,96	111,76	103,65

EPRA EARNINGS (PER SHARE)

Definition:

The EPRA earnings is the net result (share group) excluding the (i) portfolio result, (ii) the changes in the fair value of financial assets and liabilities, and (iii) the non-EPRA elements of the share in the results of associated companies and joint ventures. The term is used in accordance with the Best Practices Recommendations of EPRA.

Purpose:

This APM measures the underlying operating result of the company, excluding the result resulting from any changes in the value of the assets or liabilities, capital gains or losses realized on the sale of investment properties and any other result of the portfolio.

Reconciliation:

(in € k)	31/03/2022	31/03/2021
NET RESULT (GROUP SHAREHOLDERS) (IFRS)	14.782	11.724
- Excluding: Result on sales of investment properties (ii)	+15	-61
- Excluding: Changes in the fair value of investment properties (i)	+656	-7.001
- Excluding: Other portfolio result (viii)	+267	-1.006
- Excluding: Changes in the fair value of financial assets and liabilities (vi)	-11.926	-1.187
- Excluding : non-EPRA elements in the share of the result of associated companies and joint ventures (ix)	-1.118	-103
EPRA EARNINGS	2.676	2.365
Average number of shares	3.286.786	3.288.146
EPRA EARNINGS PER SHARE	0,81	0,72

OPERATING MARGIN

Definition:

This alternative performance indicator measures the company's operational profitability as a percentage of rental income and is calculated by dividing the "operating result before the result on the portfolio" by "the net rental income".

Purpose:

This APM measures the operational profitability of the company.

(in € k)	31/03/2022	31/03/2021
Operating result before portfolio result	3.700	3.165
Net rental income	7.465	6.530
Operating margin	49,57%	48,47%

Calendar 2022
Annual press release on the financial year 2021	Thursday 24 February 2022
Publication of the annual financial report on the website	Friday 1 April 2022
Ordinary general meeting of the financial year 2021	Tuesday 3 May 2022
Extraordinary general meeting	Tuesday 3 May 2022
Interim statement: results at 31 March 2022	Wednesday 18 May 2022
Share split (1 existing for 5 new shares)	Wednesday 15 June 2022
Half-year financial report: results at 30 June 2022	Thursday 7 September 2022
Interim statement: results at 30 September 2022	Thursday 17 November 2022

FOR ADDITIONAL INFORMATION

Sven Janssens Chief Executive Officer Preben Bruggeman Chief Financial Officer

Tel: +32.2.740.14.51 E-Mail: investors@homeinvest.be www.homeinvestbelgium.be

Home Invest Belgium Boulevard de la Woluwe 46, Box 11 B – 1200 Brussel

About Home Invest Belgium

Home Invest Belgium is a Belgian public regulated real estate company (GVV/SIR) specialised in the acquisition, sale, development, letting and management of residential real estate. On 31 March 2022, Home Invest Belgium held a real estate portfolio worth €734 million in Belgium and The Netherlands.

Home Invest Belgium has been listed on Euronext Brussels [HOMI] since 1999. On 31 March 2022, the market capitalisation amounted to € 396 million.