Ascencio — Earnings Release 2022

Nov 24, 2022

Press release — Annual Results 2021/2022

EXCELLENT ANNUAL RESULTS & P RO P O S E D D I V I D E N D I N C R E A S E D BY 6.8% TO €3.95 PER SHARE

O P E R AT I N G R E S U LT S

� RENTAL INCOME: €47.8 million, up by 3.4% compared with €46.3 million at 30/09/2021

� EPRA EARNINGS: €33.8 million, up by 10.5% compared with €30.6 million at 30/09/2021

� EPRA EARNINGS PER SHARE: €5.12, compared with €4.63 at 30/09/2021

� NET RESULT: €90.7 million compared with €45.7 million at 30/09/2021, a significant increase of 99%

BAL ANCE SHEET INFORMATION

� FAIR VALUE OF THE PORTFOLIO: €738.9 million compared with €713.6 million at 30/09/2021

• � DEBT RATIO1: 44.9%, down significantly from 47.6% at 30/09/2021
• � EPRA NTA PER SHARE: €62.35 compared with €57.37 at 30/09/2021

DIVIDEND

� INCREASED DIVIDEND FOR THE EIGHTH CONSECUTIVE YEAR: proposed distribution of a gross dividend of €3.95 per share, up by 6.8% on the previous financial year (€3.70 per share)

1 Debt ratio calculated in accordance with the Royal Decree of 28 April 2018 on Regulated Real Estate Companies.

R EG U L AT E D I N FO R M AT I O N 24 November 2022 Under embargo until 5.40 p.m.

50,7€ S H A R E PRICE

96,5% E P R A O CC U PA N C Y R AT E

6,43% G RO S S Y I E L D ON THE PORTFOLIO

115 EUR/M² AV E R AG E RENT

7,8% G RO S S D I V I D E N D YIELD

HIGHLIGHTS OF THE YEAR

STRONG GROWTH IN OPERATING RESULTS

MACROECONOMIC CONTEXT

During the past financial year, the health crisis had only a minor impact on Ascencio's operating activities but the conflict between Russia and Ukraine broke out. It has major repercussions, notably a significant increase in inflation in the euro zone countries, with annual rates of around 12% for Belgium, 6% for France and 7% for Spain in October 2022.

In order to combat this rise in inflation, Central Banks have gradually ended their accommodative monetary policies by progressively raising their reference interest rates, which impacts the financing conditions and the companies' stock market valuations.

In this context, the food retail and out-of-town property market in which Ascencio operates has performed well. Indeed, after having suffered, at the time of the outbreak of the Covid-19 health crisis, from the negative perception of the commercial property market as a whole, Ascencio was able to demonstrate the resilience of its portfolio, which has the specificity of offering solutions to the primary needs of consumers (food, home furnishings, sports and leisure, etc.).

The type of commercial property proposed by Ascencio offers low rents to its tenants and high yields in its valuations; it is therefore less quickly and less strongly impacted in a context of inflation and significantly rising interest rates.

This is illustrated and commented on below in Ascencio's presentation of strong growth in its annual results 2021/2022. This growth can be seen both in the operating results, which are up by 10.5% or €3.1 million on the previous financial year, and in the valuations of its property portfolio (up by 3.3% or €23.8 million) and its financial hedging instruments (up by €38.1 million).

OPERATIONAL ACTIVITY

Ascencio experienced sustained rental activity, once again confirming the attraction of retailers for out-of-town sites. In all, 38 transactions were concluded (20 new leases signed and 18 leases renewed), representing a total of approximately 31,500 m2, about 7% of the real estate portfolio's surface area, at rents on average about 6% higher than the estimated rental value and 3% higher than previous rents for the units concerned.

This rental activity was carried out in particular:

• in Belgium:
  • in Couillet "Bellefleur": 8 leases were renewed and one new lease was signed (Pro Duo);
• in Genval: 5 new leases were concluded (Okaïdi, Fox&Cie, Batopin, Madame Charlotte and Bombay Pékin);
• in Gosselies: 2 new leases (Aforest and Agrivaux) and an extension (BeOne) were signed;
• in Hannut: 3 new leases were signed (Pro Duo, Pronti and Bio Planet);
• in Messancy: 2 new leases signed (Baby Kid for two commercial units and Cuisines Morel);
• in Morlanwelz: 1 new lease (Moon Coffee) and two renewals signed.
• in France:
  • in Chalon: 1 new lease (Comme j'aime) and a renewal signed;
  • in Crèches: 3 new leases signed (Piwi'z, Vertbaudet and Deichmann);
  • in Chanas: 1 new lease signed (Sport 2000);
• in Rots: 3 renewals concluded ;
• in Saint-Aunès: 3 renewals concluded.

In addition, Ascencio concluded 12 short-term leases, mainly to maintain occupancy flexibility in buildings affected in the short term by renovation or redevelopment projects.

This high level of leasing activity enabled the Company to consolidate its property portfolio EPRA occupancy rate, which stood at 96.5% at 30 September 2022, compared to 96.0% at the end of the previous financial year.

In terms of investments, Ascencio carried out €1.5 million worth of works, mainly corresponding to the completion of the renovation programme for the Messancy (Belgium) façades, the start of the extension programme for the Ottignies (Belgium) supermarket and the work to fit out areas to accommodate new tenants there.

Ascencio also finalised the disposal of its building in Sint-Niklaas (Belgium) for €1.5 million, for which a sales agreement had been signed in the course of the financial year 2020/2021. This sale, carried out in line with the fair value of the building, generated a realised loss of around €0.2 million, taking into account the transaction costs.

The client portfolio was marked by an important event, namely the takeover of SA Mestdagh by the Les Mousquetaires group, a major player in food retailing representing, among others, the Intermarché brand. The 23 Mestdagh supermarkets in Ascencio's portfolio will therefore be brought under this banner from 2023. Ascencio enthusiastically welcomes this new tenant that will eventually represent nearly 10% of the Company's consolidated rental income.

In terms of real estate valuations, the sustained rental activity in the retail property sector and the increased interest of investors in this type of real estate, which benefits from comfortable market parameters (low rents and high yields), generate a significant positive impact on the value of Ascencio's consolidated portfolio. Ascencio's consolidated portfolio experienced a positive change in value of €23.8 million (+3.3%) during the past financial year, compared with an increase of €9.8 million (+1.4%) in the previous financial year. It should be noted that these cumulative increases in value more than offset the decrease in value (-€20.5 million or -2.9%) that occurred in the 2019/2020 financial year as a result of the Covid-19 health crisis.

ESG POLICY

Aware of the importance of further integrating environmental issues into its real estate strategy, Ascencio has worked to structure its ESG policy around its three constituent pillars, namely the environmental, societal and governance aspects of its activities.

The successful implementation of this policy will also go hand in hand with the digital transformation of the Company, a process that started during this past financial year.

Ascencio's desire to develop and communicate this policy has already been illustrated by the publication in June 2022 of an initial report on performance indicators for the ESG aspects according to the EPRA sBPR guidelines, for which Ascencio has won several distinctions (Silver Award and Most improved Award) granted by the EPRA, the European Public Real Estate Association.

In the past year, Ascencio also took the following initiatives:

• At the environmental level:
  • 1. Starting with its French portfolio, the Company has started the process of installing a tool to collect energy consumption measurements from its buildings,. The systematic recording and analysis of these measurements will provide the Company with a more objective view of the energy performance of its properties.
  • 1. Several programmes to install electric vehicle charging stations have been launched by Ascencio, both within its real estate portfolio in the retail parks of Messancy (Belgium) and Saint-Aunès (France) and at its head office in Gosselies (Belgium), to serve its tenants, staff and visitors to its sites.
  • 1. The Company has developed a programme to install photovoltaic panels on the roofs of buildings, which will enable the production of green electricity for use by its tenants, at levels below the current energy cost.
• At the societal level:
  • 1. The organisation of a teleworking policy for its team;
  • 1. The implementation of a mobility policy for the team favouring electro-mobility: company vehicles are now hybrid or electric and the Company provides appropriate recharging solutions for team members, both at the office and at home;
  • 1. The implementation of an internal and external training programme aimed at developing the skills of the employees. This particular attention paid by Ascencio to training was also illustrated by the reception during the past financial year of a business trainee as part of her end-of-study work.
  • At the governance level:
    • 1. The adaptation of the remuneration policy for members of the Company's executive committee, including in particular criteria relating to the implementation of the ESG policy within the Company.
    • 1. The creation of the position of Operations & ESG Director to support the development and implementation of the ESG policy within the property portfolio.

FINANCIAL ACTIVITY

Ascencio continued to strengthen its debt structure by concluding several financing operations:

• the conclusion in December 2021 of a new 'Term loan' bank credit line, for an amount of €10 million, with the Caisse d'Epargne Hauts de France, for a period of 5 years;
• the successful completion in March 2022 of a first bond issue in the form of a private placement for a total amount of €25 million with an average duration of four years. This transaction constitutes an important event for the Company as it allows it to further diversify its funding sources with major institutional investors and to illustrate their confidence in Ascencio's real estate strategy and in the performance of its portfolio.
• the conclusion in September 2022 of two renewals of 'revolving' type bank facilities for amounts of €20 million and €15 million respectively with BNP Paribas Fortis and ING, for terms of 7 years and 5.25 years.

Consequently, Ascencio had unused and therefore available financing lines totalling €78.3 million at 30 September 2022, enabling the Company to finance the dividend to be distributed during the first quarter of 2023, to cover its operating needs and the investments to be made within its portfolio, and finally to have sufficient financial capacity to participate in the financing of investment operations that may come to fruition. At 30 September 2022, the conclusion of these financing transactions gives the Company a debt structure with an average residual term of 3.3 years, compared with 3.7 years at 30 September 2021.

In the context of the management of its interest rate hedging, the Company restructured its derivative portfolio several times during the past financial year, enabling it to have a hedging ratio of 95.5% at 30 September 2022, which is higher than the minimum hedging objective that the Company has set itself.

Thanks to its debt and interest rate hedging structures, the average cost of financing for the past financial year was 1.80%, stable compared to the 1.81% recorded in the previous financial year.

CONSOLIDATED RESULTS FOR FINANCIAL YEAR 2021/2022

CONSOLIDATED RESULTS (€000S)	30/09/2022	30/09/2021
RENTAL INCOME	47,849	46,285
Write-downs on trade receivables	684	-1,371
Recovery of property charges	681	602 *
Charges not recovered	-108	-89 *
Other revenue and charges for letting	-239	32 *
PROPERTY RESULT	48,867	45,460
Property charges	-4,004	-4,154 *
Corporate overheads	-4,481	-4,057
Other income and operating costs	-1	-12
OPERATING RESULT BEFORE RESULT ON PORTFOLIO	40,381	37,236
Operating margin2	84.4%	80.4%
Financial income	134	0
Interest charges	-5,710	-5,881
Other financial charges	-554	-427
Taxes	-477	-372
EPRA EARNINGS	33,773	30,555
Net gains and losses on disposals of investment properties	-159	0
Change in the fair value of investment properties	23,800	9,835
Portfolio result	23,641	9,835
Change in fair value of financial assets and liabilities	38,135	5,704
Deferred tax	-4,896	-443
NET RESULT	90,653	45,652
EPRA Earnings per share (EUR)	5.12	4.63
Earnings per share (EPS) (EUR)	13.74	6.92

Number of shares 6,595,985 6,595,985

Ascencio made a number of reclassifications within several income statement headings in the 2021/2022 financial year. For comparability purposes, these reclassifications have also been recorded in FY 2020/2021 without impacting on either EPRA Earnings or Net Result.

Rental income for the year, before the COVID impact, amounted to €47.85 million, up by 3.4% on the €46.29 million of financial year 2020/2021.

The following table shows rental income by country:

RENTAL INCOME (€000S)	30/09/2022		30/09/2021
Belgium	26,152	55%	25,011	54%
France	19,781	41%	19,314	42%
Spain	1,917	4%	1,960	4%
TOTAL	47,849	100%	46,285	100%

² Alternative Performance Measure (APM). See glossary at the end of this press release.

The growth in income, in both Belgium and France, is the result of the combined effect of high inflation, which is gradually being reflected in the indexation of rents, and good rental management of the properties, enabling them to be maintained at a high level of occupancy. The decrease in rental income in Spain is the result of the vacant space in the Valencia building, covered by a rental guarantee until 30 June 2022 but no longer generated income in the last quarter of the financial year. Excluding changes in the scope of consolidation, the like-for-like growth in rental income was 2.4% compared to the previous year.

Rental-related charges were negative during the year (-€0.7 million), compared with a positive total expense of €1.4 million in the previous financial year. This heading of the income statement mainly records:

• the impact of rent rebates selectively granted to tenants who were severely affected by the mandatory closures imposed as part of the management of the COVID pandemic. While allowances had been effectively granted during the previous financial year or prudently estimated for current or future discussions (€1.3 million in all), this impact turned out to be less than initially expected, thus generating reversals of provisions during the past year (€0.5 million);
• the impact of impairments and reversals of impairments on trade receivables, the net balance of which for the year to 30 September 2022 amounted to income of €0.2 million (compared with a charge of €0.1 million in the previous financial year).

These various elements, together with the recovery of property charges and rental charges and taxes not reinvoiced, mean that the property result for the year to 30 September 2022 was €48.87 million, up by 7.5% on the previous year's figure of €45.46 million.

Property charges decreased slightly compared to the previous year (-3.6%), mainly due to lower technical costs compared to the previous year.

Corporate overheads increased by 10.5% compared to the previous year. This increase is mainly due to the combined effect of (i) the strengthening of the team over the last two financial years, (ii) the increase in travel costs due to a return to normal frequency of business trips after the health crisis period and (iii) the increase in fees incurred in the study of investment projects that have not materialised and in the process of obtaining Socimi tax status in Spain.

After deducting these property and general costs, the operating result before result on portfolio was €40.38 million, up by 8.5% on the previous year's €37.24 million. The operating margin³ was 84.4% (previous year: 80.4%).

Financial income includes realised gains totalling €0.1 million (compared to €0,0 million for the previous financial year) after the resale of derivative instruments at values higher than their carrying amounts as part of the restructuring of the portfolio of hedging instruments.

Interest and other financial charges, including commitment fees and cash flows generated by interest rate hedging instruments, totalled €6.26 million at 30 September 2022, stable compared to the €6.31 million of the previous year. This stability is the result of the combined effect of constant average indebtedness (€329.5 million compared to €334.1 million for the previous financial year) and average cost of financing³ (1.80% compared with 1.81%) during the two financial years considered.

³ Alternative Performance Measure (APM). See glossary at the end of this press release.

On this basis, EPRA Earnings came to €33.77 million for the year to 30 September 2022, up by 10.5% on the €30.56 million generated in the previous financial year. EPRA Earnings per share therefore increased to €5.12, compared to €4.63 at 30 September 2021.

The past financial year has been very favourable in terms of revaluations for the Company, both in terms of the fair value of the properties, which increased significantly excluding investments by €23.8 million (compared to €9.8 million at 30 September 2021), and in terms of the fair value of hedging instruments (€38.1 million compared with €5.7 million for the previous year). In addition, the Company made a reassessment of its deferred tax liabilities in both its French and Spanish operations, resulting in an additional charge of €4.9 million (previous year: €0.4 million).

Taking into account these revaluations and the loss realised on the disposal of the Sint-Niklaas asset, the consolidated net result for the year amounted to €90.65 million, a significant increase of 99% compared with the €45.65 million for the year ended 30 September 2021.

CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2022

CONSOLIDATED BALANCE SHEET (€000S)	30/09/2022	30/09/2021
ASSETS	783,312	728,076
Intangible assets	24	0
Investment properties	738,933	713,601
Other non-current assets	31,549	1,400
Assets held for sale	0	1,360
Current financial assets	885
Trade receivables	4,956	5,773
Cash and cash equivalents	4,356	3,707
Other current assets	2,611	2,236
EQUITY AND LIABILITIES	783,312	728,076
Equity	437,011	370,353
Non-current financial debts	268,677	278,822
Other non-current liabilities	2,476	10,275
Deferred tax	6,170	1,275
Current financial debts	58,038	55,060
Other current liabilities	10,939	12,291

ASSETS

Investment properties accounts for 94% of the Company's assets. Its total fair value (including investments and development projects) amounted to €738.9 million at 30 September 2022, compared with €713.6 million at the end of the previous financial year. It should be noted that, in accordance with IFRS 16, this heading includes the rights of use held by the Company in the form of emphyteuses, for a revalued amount of €4.1 million.

Investment properties	Fair value 30/09/2022 (€000s)	(%)	EPRA occupancy rate 30/09/2022 (%)	Fair value 30/09/2021 (€000s)	(%)	EPRA occupancy rate 30/09/2021 (%)
Belgium	394,146	53.3%	96.1%	384,011	53.8%	94.3%
France	313,936	42.5%	98.3%	300,790	42.3%	99.6%
Spain	30,850	4.2%	83.5%	28,800	4.0%	82.8%
TOTAL	738,932	100.0%	96.5%	713,601	100.1%	96.0%

This portfolio value is broken down by country in which the Company is active as follows:

The value of the portfolio is evolving positively in all three countries, due to the investments made there but above all due to the positive changes in value recorded; these amounted to +2.2%, +4.4% and +7.1% respectively for the Belgian, French and Spanish portfolios. This overall positive trend once again illustrates the pertinence of Ascencio's investment strategy in resilient commercial property in markets with sufficient depth.

At 30 September 2022, the portfolio EPRA occupancy rate was 96.5%, up from 96.0% at 30 September 2021. Looking at this overall development by country, the following trends can be observed:

• 1. In Belgium, the EPRA occupancy rate rose from 94.3% to 96.1%, due to new rentals in Messancy, Jodoigne, Gosselies, Hannut and Genval.
• 1. In France, the EPRA occupancy rate decreased from 99.6% to 98.3% due to the departure of two tenants in the Chanas and Bourgoin-Jallieu buildings; the vacant space in Chanas has already been re-let and the effective date is expected to be in the next few weeks.
• 1. In Spain, the EPRA occupancy rate increased from 82.8% to 83.5% due to a change in valuation parameters, despite the fact that the rental situation remained unchanged during the year with a vacancy of approximately 3,900 m² in the Valencia building. However, this area had been subject to a revenue guarantee until 30 June 2022 and has therefore only affected the Company's results since the beginning of the last quarter of the past financial year.

In terms of investments within its investment property portfolio, Ascencio carried out €1.5 million of works, mainly corresponding to:

• the completion (€0.6 million) of the façade modernisation program for the retail park in Messancy (Belgium). The completion of these works has enabled Ascencio to increase the occupancy rate of this park by welcoming several tenants.
• The start-up (€0.4 million) of the Ottignies supermarket extension program, with a total budget of €1.5 million and an expected completion date in the second quarter of the 2022/2023 financial year. The extended building is already the subject of a new occupancy agreement with Carrefour-Mestdagh (soon to be Intermarché).
• the development of areas to accommodate new tenants, notably in Gerpinnes (Vanden Borre Kitchen), Gosselies (Aforest and Agrivaux) and Hannut.

No new acquisitions or disposals were made within the investment property portfolio during the past financial year.

Other non-current assets mainly comprise hedging instruments maturing in more than one year and benefiting from positive valuations, which have increased significantly over the past year. Thus, the total value of these instruments reached €31.0 million at 30 September 2022, compared to €0.9 million at 30 September 2021. These increases in the value of the hedging instruments were generated by the significant increase in interest rates during the past year.

At 30 September 2021, assets held for sale included the building in Sint-Niklaas (Belgium), which was in the process of being sold at that date. Since this transaction was finalised during the past financial year, the asset was removed from the balance sheet and therefore no longer appears in the accounts at closing date.

Current financial assets include the positive fair values of hedging instruments with maturities within the next financial year.

The balance of trade receivables at 30 September 2022 was €4.9 million, down on the figure of €5.8 million at the end of the previous financial year. This decrease is mainly due to the resumption of normal payment behaviour by tenants after the Covid period.

The headings of cash and other current assets remain relatively stable and do not call for any specific comments.

EQUITY AND LIABILITIES

At 30 September 2022, equity stood at €437.0 million, significantly up from the €370.4 million at the end of the previous financial year, taking into account the €24.4 million dividend paid to shareholders during the first half of the year under review. This significant increase is linked to the excellent net result (€90.7 million) generated by the Company during the past year. On this basis, the IFRS NAV per share amounted to €66.25 (as against €56.15 at 30 September 2021), while the EPRA NTA per share amounted to €62.35, compared to €57.37 at the end of the previous financial year.

On the liabilities side, financial debts (non-current and current) amounted to €326.7 million, compared to €333.9 million at 30 September 2021. In addition to the financing lines actually used, amounting to €323.1 million, including outstanding bank loans but also issued institutional debts (treasury notes, medium term notes and bonds), financial debts include lease liabilities amounting to €3.9 million recorded under IFRS 16, as well as financing structuring fees for an amount still to be amortised of €0.3 million.

The balance of other non-current financial liabilities decreased significantly compared to the previous year (from €10.3 million to €2.5 million). This change is linked to the significant increase in value of the hedging instruments during the past financial year; all of them now have positive values and have been reclassified as assets on the Company's balance sheet.

As explained above, the item deferred tax liabilities increased significantly compared to the previous year (€6.2 million compared to €1.3 million).

The consolidated debt ratio is 44.9% at 30 September 2022, down significantly from 47.6% at 30 September 2021. This ratio allows the Company to benefit from a solid balance sheet structure enabling it to finance its operations and even to have an appreciable margin to consider new investments.

CONSOLIDATED DATA PER SHARE

NUMBER OF SHARES	30/09/2022	30/09/2021
Weighted average number of shares	6,595,985	6,595,985
Total number of shares issued	6,595,985	6,595,985
CONSOLIDATED RESULT PER SHARE (EUR)	30/09/2022	30/09/2021
EPRA Earnings per share	5.12	4.63
Earnings per share (EPS)	13.74	6.92
	30/09/2022	30/09/2021
Net asset value (NAV) IFRS (€000S)	437,011	370,353
NAV IFRS per share (EUR)	66.25	56.15
Restatements:
Deferred tax (€000S)	6,170	1,275
Fair value of financial instruments (€000S)	-31,928	6,779
EPRA NTA (€000S)	411,254	378,406
Number of shares	6,595,985	6,595,985
EPRA NTA per share (EUR)	62.35	57.37

STATUTORY AUDITOR'S STATEMENT

The statutory auditor has confirmed that his audit work, which was substantially completed, did not reveal any significant corrections that should be made to the accounting information included in this press release.

REGULATORY ASPECTS

At the regulatory level, Ascencio took an important step in June 2022 by opting for Socimi status in Spain, applicable from the beginning of the last financial year. This status, equivalent to that of SIR in Belgium and SIIC in France, which Ascencio has already enjoyed for several years, will enable the Company, from the beginning of the 2021/2022 financial year, to avoid being subject to tax friction within its Spanish activities. This new status should eventually favour the development of its activities in this market.

During the next financial year, Ascencio will revise its articles of association to comply with the new Companies and Associations Code.

CORPORATE GOVERNANCE

Ascencio is pleased to announce that Mr. Gérard Lavinay has joined its Board of Directors as an independent director. With more than 40 years of experience within the Carrefour Group, he will bring to Ascencio even more expertise, particularly in the food sector. During the past financial year, Ascencio also renewed the mandates of three of its directors, namely Ms Stéphanie Boniface, Ms Alexandra Leunen and Mr Olivier Beguin. Finally, Ascencio would like to thank Mr Amand-Benoît D'hondt, whose term of office has come to an end, for his contribution to the development of the Company over the past years.

Ascencio also announced the arrival of Bernard Sergeant as Manager of Operations & ESG on the executive committee. He will be responsible for dynamizing the transformation of our portfolio and putting in place Ascencio's ESG strategy.

APPROPRIATION OF THE RESULT FOR FINANCIAL YEAR 2021/2022

In view of the results for the financial year 2021/2022, the statutory manager Ascencio SA will propose to the general meeting of 31 January 2023 to distribute a gross dividend of €3.95 per share (€2.765 net per share), an increase of 6.8% compared to the previous financial year.

The ex-dividend and dividend cash payment dates are set out in the shareholder financial calendar below.

OUTLOOK

After being strongly impacted for many months by the Covid-19 pandemic, the global macroeconomic context has been affected since the middle of the last financial year by the geopolitical conflict in Ukraine, with appreciable increases in inflation, interest rates and energy costs leading to a significant slowdown in economic activity.

In this turbulent environment, Ascencio's short-term priority remains to maintain its current excellent operational performance. This means continuing to proactively manage its property portfolio and its tenant-clients. By staying close to them and striving to meet their needs, the Company has demonstrated the resilience of its portfolio and its activities during this succession of crises.

This portfolio management also involves implementing a policy of active transformation of its buildings, particularly from a technical point of view, to enable them to better meet the environmental challenges of tomorrow. Having defined its ESG policy over the past year, the Company now intends to accelerate the pace of ESG actions within its portfolio and team.

Finally, with its resilient portfolio and strong balance sheet, Ascencio is confident that investment opportunities will arise, both in the markets in which it is already active and in new markets. Ascencio must therefore be able to seize these opportunities if they arise.

Based on these elements and taking into account the current valuation of the Company, Ascencio offers attractive long-term investment and dividend growth prospects.

SHAREHOLDER'S FINANCIAL CALENDAR⁴

.

Ordinary general meeting 2021/2022	31 January 2023 (2.30 p.m.)
Coupon payment date (ex-date)	6 February 2023
Record date	8 February 2023
Payment of dividend	9 February 2023
Interim statement at 31 December 2022	23 February 2023 (5.40 p.m.)
Interim financial report at 31 March 2023	25 May 2023 (5.40 p.m.)
Interim statement at 30 June 2023	17 August 2023 (5.40 p.m.)
Annual press release at 30 September 2023	23 November 2023 (5.40 p.m.)
Ordinary general meeting 2022/2023	31 January 2024 (2.30 p.m.)

For more detailed information, this press release must be read in conjunction with the annual report for the year ended 30 September 2022, which will be available on our website www.ascencio.be not later than one month before the ordinary general meeting of shareholders of 31 January 2023.

⁴ These dates are subject to change, which will be communicated to shareholders by press release or on the Ascencio website (www.ascencio.be).

AURORE ANBERGEN

Head of IR, Marketing & Communication

Tél : +32 (0)71.91.95.23 aurore.anbergen@ascencio.be

CÉDRIC BIQUET Chief Financial Officer

Tél: +32 (0)71.91.95.00

VINCENT H. QUERTON

Chief Executive Officer

Tél: +32 (0)71.91.95.00

ABOUT ASCENCIO

Active in Belgium, France and Spain, Ascencio is a Société Immobilière Réglementée Publique (Public Regulated Property Company or "Belgian REIT")

specialising in investment in commercial premises located out of town.

Ascencio is characterised by its hybrid portfolio, consisting mainly of supermarkets and retail parks.

Listed on Euronext Brussels since 2007, Ascencio pursues a coherent policy aimed at optimising its results over time and ensuring stable profits for all its shareholders.

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (APMS)

Following the coming into force of the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures (APMs), the APMs used in this press release are identified by an asterisk(*).

The definition of the APMs and the use made of them can be found at the end of the 2021/2022 Annual Report, which will soon be available on Ascencio's website (www.ascencio.be).

Operating margin

		30/09/2022	30/09/2021
Operating result before result on portfolio (€000S)	= A	40,381	37,236
Rental income (€000S)	= B	47,849	46,285
OPERATING MARGIN	= A / B	84.4%	80.4%

Average cost of debt

	30/09/2022	30/09/2021
Net interest charges (heading XXI) (€000S)	5,550	5,738
Commissions on undrawn balances under credit facilities	416	330
Opening commission and charges for credit facilities	68	44
Change in fair value of caps	0	8
TOTAL COST OF FINANCIAL DEBTS = A	6,033	6,120
WEIGHTED AVERAGE DEBT FOR THE PERIOD = B	334,551	338,491
AVERAGE COST OF DEBT = A / B	1.80%	1.81%

Hedging ratio

(€000S)		30/09/2022	30/09/2021
Fixed-rate financial debts	130,720	96,517
Variable-rate financial debts converted into fixed-rate debts by means of IRS		178,000	173,000
Variable-rate financial debts converted into capped-rate debts by means of caps.		0	10,000
TOTAL FIXED RATE OR CAPPED FINANCIAL DEBTS	= A	308,720	279,517
TOTAL VARIABLE RATE FINANCIAL DEBTS	14,395	50,152
TOTAL FINANCIAL DEBTS	= B	323,115	329,669
HEDGING RATIO	= A / B	95.5%	84.8%

EPRA PERFORMANCE INDICATORS

			30/09/2022	30/09/2021
1	EPRA Earnings (000 EUR)	Earnings from operational activities.	33,773	30,555
	EPRA Earnings per share (EUR)		5.12	4.63
2	EPRA NAV (000 EUR)	Net Asset Value adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model.	411,254	378,406
	EPRA NAV per share (EUR)		62.35	57.37
3	EPRA NNNAV (000 EUR)	EPRA NAV adjusted to include the fair values of financial instruments, debt and deferred taxes.	438,708	369,501
	EPRA NNNAV per share (EUR)		66.51	56.02
	EPRA NRV (000 EUR)	The EPRA NRV assumes that entities never sell	443,699	408,775
4	EPRA NRV per share (EUR)	assets and provide an estimation of the value required to rebuild the entity.	67.27	61.97
	EPRA NTA (000 EUR)	The EPRA NTA assumes that entities buy and	411,254	378,406
5	EPRA NTA per share (EUR)	sell assets, thereby crystallising certain levels of unavoidable deferred tax.	62.35	57.37
6	EPRA NDV (000 EUR)	The EPRA NDV represents the value accruing to the company's shareholders under an asset disposal scenario, resulting in the settlement of	438,708	369,501
	EPRA NDV per share (EUR)	deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax.	66.51	56.02
7	EPRA Net Inital Yield (NIY)	Annualised rental income based on the cash rents passing at the balance sheet date, less non recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchaser's costs.	6.06%	5.99%
8	EPRA Topped-up NIY	This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods or other unexpired lease incentives such as discounted rent periods and step rents.	6.12%	6.08%
9	EPRA Vacancy Rate	Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio.	3.46%	3.95%
10	EPRA Cost Ratio (including direct vacancy costs)	Administrative & operating costs (including costs of direct vacancy) divided by gross rental income.	15.61%	19.55%
11	EPRA Cost Ratio (excluding direct vacancy costs)	Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income.	14.68%	18.64%
12	EPRA LTV	The EPRA LTV aims to represent the company's indebtedness compared to the market value of its assets	44.38%	47.11%