Immobel NV

Earnings Release • Aug 31, 2012

Brussels, 31st August 2012 – 8.40 a.m. Regulated information

PRESS RELEASE

In spite of the difficult economic environment, IMMOBEL continues to invest in growth

• Consolidated operating profit: 8.8 MEUR (11 MEUR at 30th June 2011).
• Significant investments in its three fields of activity (65 MEUR).
• First major operations in Poland.
• Sound financial structure and net debt to equity ratio limited to 83 %.

Market conditions in IMMOBEL geographical areas

A. BELGIUM

In the office sector in Brussels, the total take-up for the first six months amounts to 206,000 m². Based on this, the take-up for 2012 is expected to exceed the 350,000 m² of 2011.

At 11.1 % the average vacancy rate is down 50 bps compared to the first quarter. There is a significant disparity between the CBD areas and decentralized and peripheric areas.

Total stock comes to just over 13 million m² (of which only 13 % is less than 5 years old). New products are rare.

"Prime" rents are unchanged, at 285 EUR/m²/year. The capitalization rate for "prime" buildings with 6/9 year leases remains unchanged at 6 %, while long term leases are being negotiated at 5.25 %.

In the residential sector, the average price of houses and apartments is generally unchanged; low financing rates and growing interest from private investors in the residential sector compensate for the climate of uncertainty in the Eurozone.

B. GRAND DUCHY OF LUXEMBOURG

In the Grand Duchy take-up of offices for the first half year came to 73,000 m², which is the best figure in the last 4 years.

At 6.2 %, the vacancy rate has increased slightly. There is a significant gap between the central areas and the suburbs.

The total inventory comes to nearly 3.5 million m², of which 31 % consists of buildings less than 5 years old.

"Prime" rents are unchanged at 40 EUR/m²/month. The capitalisation rate of "prime" buildings is around 5.75 % for 6/9 year leases.

The residential sector shows either stable or slightly increased prices depending on the location and the type of housing. Apart from the traditional owner-occupier market, demand from private investors is particularly high.

C. POLAND

Take-up in Warsaw's office market was almost 300,000 m² in the first half of 2012, confirming a marked increase in activity in comparison with the average take-up of 445,000 m² over the last 5 years. The vacancy rate remained unchanged compared to the previous quarter at 7.4 % in the CBD. The total office stock is around 3.7 million m 2 .

"Prime" headline rents in Warsaw remained stable and can be secured from 22-25 EUR/m² / month.

In Poznan the office market comprises a stock of 251,700 m² . The vacancy rate remained stable in H1 2012 at 10.3 %. "Prime" headline rents remained stable

within a range of 14-16 EUR/m² /month. Take-up in Poznan in H1 2012 was around 12,600 m²

The current situation on the Warsaw residential market is characterized by stable demand and a large volume of units sold. The average sale price in Warsaw has decreased to around 2,000 EUR/m 2 incl. VAT.

.

IMMOBEL in this market

A. BELGIUM

Sales and deliveries:

• Residential:
• During the first half of 2012, IMMOBEL continued to sell apartments in the Jardins des Sittelles in Brussels (Woluwe), Résidence Saint-Hubert in Liège (50 % stake) and Résidence Vallée du Maelbeek in Brussels (50 % stake) projects.
• Marketing of the intergenerational Bella Vita project in Waterloo (50 % stake) started last May. In just under 7 weeks, nearly 40 % of the 269 housing units for sale were reserved by potential buyers.
• Landbanking: During the first half year the Landbanking department sold 88 plots.

Finance:

In the first half of 2012, the Group obtained or renewed 8 credit lines and guarantees for a total of 473 MEUR (IMMOBEL' share equals 241 MEUR).

Once again this confirms the confidence the Group's banks in the company and its projects.

In mid-February 2012 IMMOBEL also raised an extra 10 MEUR over and above the 30 MEUR raised by the private bond placement issued in December 2011, with the collaboration of BNP Paribas Fortis and under the same conditions.

As a consequence of the development of the different growth projects, the net financial debt/equity ratio increased and could still increase.

B. GRAND DUCHY OF LUXEMBOURG

Sales of apartments in the Green Hill (participation (50 %) project continue at a good pace (74 units on 127 apartments for sale).

C. POLAND

Sales: In March 2012, IMMOBEL sold a non-strategic plot for a residential development in the order of 5,000 m² in Warsaw, as well as 80 % of its stake (50 %) in the company, Bitra Enterprise Sp. z o.o. It retained a plot situated in Warsaw for the development of approximately 65,000 m² of offices.

Permits and work: last June IMMOBEL obtained an "occupancy permit" for the Okraglak office project in Poznan.

Furthermore, following the acquisition of new projects, IMMOBEL has reinforced its development team.

Events since 1st July 2012

There have been no significant events since 1st July 2012 that are likely to alter the financial statements.

■

Outlook for the financial year 2012

Unfavourable conditions persist in the office market in Brussels and IMMOBEL considers that there will be no fundamental change in this market in the short term. IMMOBEL profits otherwise from its presence in both the residential and landbanking markets in Belgium and in Grand Duchy of Luxembourg, as well as from its increasing activities in Poland.

The full year results 2012 are depending on the conclusion of some major contracts which the Company expects to conclude before the end of the year or in the first semester of next year.

In view of its portfolio of good quality projects and the negotiations currently underway, the Board of IMMOBEL is confident of the Company's profitable development.

■

Gaëtan Piret, the CEO, commented: "IMMOBEL'S results in this first half year are positive, thanks to the contributions of its three business lines and, in particular, the office sector in Poland. This confirms that recent investments were well-founded."

■

Half-yearly financial report

IMMOBEL has drawn up a half-yearly financial report in accordance with IAS 34 "Interim financial reporting". The Auditor has issued a limited review report on the consolidated interim financial information for the six-month period ended 30 June 2012.

On the basis of this limited review, the Statutory Auditor concluded that: "Nothing has come to our attention that causes us to believe that the consolidated interim financial information for the sixmonth period ended 30 June 2012 is not prepared, in all material respects, in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union".

This half-yearly report and the Auditor's report are available at www.immobel.be (on the "Press Release" page).

For more information: Gaëtan PIRET*, Managing Director T. +32(0)2 422 53 23 * SPRL gaetan.piret@immobel.be

About IMMOBEL:

IMMOBEL has been a major player in property development in Belgium for over 145 years. It is also active in the Grand Duchy of Luxembourg and is currently developing a new growth pole in promotion projects in Central Europe, particularly in Poland. Its business covers the office, residential and landbanking sectors, as well as, when the opportunity arises, retail, ensuring the diversification of its portfolio of projects. Its vision of the market and its expertise allow it to design, promote and manage ambitious real estate projects that create long-term value, while respecting the environment and integrating the main issues facing society.

IMMOBEL is listed on Euronext Brussels as «IMMOBEL». For further information see: www.immobel.be

Consolidated figures in MEUR	31/12/2011	30/06/2012	30/06/2011
Sales	79.22	42.09	38.31
Operating result	22.59	8.84	11.04
Net financial costs	-5.42	-3.18	-1.70
Operating result after deduction of net financial costs	17.17	5.66	9.34
Share in the results of investments in associates	0.30	0.01	0.17
Result before taxes	17.47	5.67	9.51
Taxes	-1.30	-0.65	0.19
Result for the period	16.17	5.02	9.70
Group's share of the result for the period	16.18	5.02	9.71
Net cash flow (*)	13.96	4.12	9.42

Consolidated figures in EUR	31/12/2011	30/06/2012	30/06/2011
Basic earnings per share	3.93	1.22	2.35
Gross dividend per share	1.75	NA	NA
Number of shares	4,121,934	4,121,987	4,121,934

(*) Net result corrected for non-cash expenses (amortisation, depreciation, provisions etc.) and non-cash income (fair value etc.).

Consolidated results

On 30th June 2012 IMMOBEL booked sales of 42.09 MEUR, which generated an operating profit of 8.84 MEUR, compared to sales of 38.31 MEUR and an operating profit of 11.04 MEUR at 30th June 2011.

The Office business line booked sales of 21.43 MEUR, compared to 9.82 at 30th June 2011. Residential sales came to 14.62 MEUR as against 12.70 MEUR in 2011; landbanking sales amounted to 6.04 MEUR as against 15.79 in 2011.

Net financial costs came to - 3.18 MEUR as against - 1.70 at 30th June 2011. The increase in net financial costs was mainly due to the 40 MEUR bond issue at a rate of 7 % in December 2011 and February 2012.

The net result for the period comes to 5 MEUR compared to 9.7 MEUR at 30th June 2011.

Consolidated balance sheet

Consolidated balance sheet in thousands of EUR	30-06-2012	31-12-2011
Inventories	361 213	327 863
Participations	2 435	1 331
Trade receivables and other assets	31 392	30 640
Cash	29 171	46 964
TOTAL ASSETS	424 211	406 798
Shareholder equity	181 157	182 792
Provisions	4 735	4 775
Long-term financial debt	100 572	109 348
Short-term financial debt	78 121	74 330
Trade payables and other liabilities	59 626	35 553
TOTAL LIABILITIES	424 211	406 798

At 30th June 2012 shareholder equity amounted to 181.16 MEUR, representing 43 % of the total assets, with a value of 43.95 EUR per share.

The net cash position of the Group, the balance between financial liabilities and long and short term available cash came to - 149.5 MEUR at 30th June 2012 as against - 136.7 at the end of 2011.

The ratio of net debt to equity stood at 83 % compared to 75 % at the end of 2011. Inventories increased by 33.3 MEUR to 361.2 MEUR, compared to 327.9 MEUR at 31st December 2011.

Consolidated income statement

in thousands of EUR	30-06-2012	30-06-2011
OPERATING INCOME	42 811	39 177
Sales	42 093	38 307
Other operating income	718	870
OPERATING EXPENSES	-33 972	-28 138
Cost of sales	-25 205	-19 047
Personnel expenses	-3 611	-3 253
Amortisation and depreciation of assets	- 138	- 212
Other operating expenses	-5 018	-5 626
OPERATING RESULT	8 839	11 039
Interest income	530	312
Interest expenses	-3 360	-2 393
Other financial income	4	656
Other financial expenses	- 352	- 273
FINANCIAL RESULT	-3 178	-1 698
Share in the result of associates	10	172
RESULT FROM CONTINUING OPERATIONS BEFORE TAXES	5 671	9 513
Income taxes	- 653	191
RESULT FROM CONTINUING OPERATIONS	5 018	9 704
RESULT FOR THE PERIOD	5 018	9 704
Share of minority interests	- 5	- 7
IMMOBEL'S SHARE	5 023	9 711
BASIC EARNINGS AND DILUTED EARNINGS PER SHARE (IN EUR)
Result of continuing operations / Result of the period	1.22	2.35

Consolidated statement of comprehensive income

in thousands of EUR	30-06-2012	30-06-2011
Result for the period	5 018	9 704
Currency translation	560	0
Other comprehensive income	560	0
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	5 578	9 704
Share of minority interests	- 5	- 7
IMMOBEL'S SHARE	5 583	9 711