Cofinimmo — Interim / Quarterly Report 2011

Aug 1, 2011

• Net currentresult(Group share, withoutregard to the impact ofIAS 39) of €3.75 per share,forthe 1 st half of 2011 versus €3.94 forthe 1 st half of 2010
• Net result (Group share) per share of €5.01 compared to €1.76 for the same periods
• The forecasts for the net current result (€7.33 per share) and the dividends (€6.50 gross for the ordinary share and €6.37 gross for the preference share) for the full year 2011 are confirmed
• Revalued net asset value of €97.87 per share at 30.06.2011 (properties booked at fair value)

Table of Contents

Interim Management Report	P.3
Summary of the results and outlook	P.3
Key figures	P.5
Evolution of the portfolio	P.7
Commercial results	P.14
Property portfolio	P.16
Investment programme 2011‐2012	P.18
Management of financial resources	P.20
Recognition of Pubstone as an institutional Sicafi	P.23
Information on shares and bonds	P.24
Events after 30.06.2011	P.27
Risk management	P.29
Corporate Governance	P.31
Summary of the Financial Statements	P.32
Comprehensive income statement – in accordance with the Royal Decree of 07.12.2010	P.33
Consolidated income statement – analytical format	P.35
Consolidated balance sheet	P.38
Calculation of debt ratio	P.39
Consolidated cash flow statement	P.40
Consolidated statement of changes in shareholders' equity	P.41
Notes to the consolidated accounts	P.46
Statement of Conformity
Appendices	P.59
Real estate expert's report	P.60 P.60

1. Interim Management Report

1.1. Summary of the results and outlook

a. Results

For the first 6 months of FY 2011, the Group's net current result, without taking into account the impact of IAS 39, reached €3.75 per share (compared to €3.94 for the first half of 2010). The Group's net result was €5.01 per share (compared to €1.76 for the first half of 2010). This result was favourably influenced by the recovery of deferred tax owing to the conversion of Pubstone into an institutional Sicafi, representing €2.59 per share.

During the first half of the year, Cofinimmo sold properties – essentially offices – for an amount of €41.1 million. On this occasion, it realised net capital gains of €4.9 million, representing €0.33 per share.

Investments were made in nursing homes totalling €112.2 million, including €67.7 million in nursing homes located in Belgium and €44.5 million in nursing homes and a psychiatric hospital situated in France. On the French market, besides Korian and Orpea, Cofinimmo works with a third operator‐client, the Medica Group. These 3 groups are listed. As of 30.06.2011, nursing homes and clinics represent 32.7% of the fair value of its consolidated portfolio. The Cofinimmo Group also acquired during the first half of the year, for €29.9 million, a newly built office building in Antwerp, the 'Avenue Building'.

In the first half of the year, Cofinimmo also capitalised on the new provisions of the Royal Decree of 07.12.2010:

• ‐ by issuing convertible bonds for an amount of €173.3 million, maturing in 2016 and bearing interest at a rate of 3.125% per annum;
• ‐ by allowing its shareholders to reinvest their net 2010 dividend in new shares, thus enabling the company to increase equity by €31.0 million;
• ‐ by obtaining recognition of its Pubstone subsidiary as an institutional Sicafi, effective 30.06.2011; and
• ‐ by preparing a request for recognition as an institutional Sicafi of FPR Leuze SA, its subsidiary awarded the Design‐Build‐Maintain‐Finance PPP for the construction of a new prison in Leuze‐en‐Hainaut (Belgium).

b. Outlook

Based on the trend in the results for this first half‐year, the Board of Directors meeting on 28.07.2011, is of the opinion that the Group's target net current result (Group share) of €7.33 per share for the year 2011, announced on 11.02.2011, is maintained. On this basis and barring the occurrence of unforeseen events, it also maintains the dividend targets for the current financial year, identical to those for the preceding financial year, namely €6.50 gross for the ordinary share and €6.37 gross for the preference shares.

1.2. Key figures

a. Aggregate figures

(x €1,000,000)	30.06.2011	31.12.2010
Portfolio of investment properties (fair value)	3,157.6	3,041.9
(x €1,000)	30.06.2011	30.06.2010
Property result	105,307	106,732
Operating result before result on portfolio	89,990	90,577
Financial result	‐28,733	‐48,308
Net current result (Group share)	56,113	38,888
Result on portfolio (Group share)	19,948	‐14,183
Net result (Group share)	76,061	24,705
(in %)	30.06.2011	31.12.2010
Operating costs/average value of the portfolio under management1	0.85%	0.80%
Operating margin	85.46%	86.32%
Weighted residual lease term2 (in years)	11.4	11.5
Occupancy rate3	95.20%	95.77%
Gross rental yield at 100% portfolio occupancy	6.99%	6.98%
Net rental yield at 100% portfolio occupancy	6.67%	6.52%
Average interest rate on borrowings4	4.31%	4.33%
Debt ratio5	52.07%	47.50%
Loan‐to‐Value ratio6	53.74%	50.26%

b. Figures per share (in €)

Results	30.06.2011	30.06.2010
Net current result – Group share – excluding IAS 39 impact	3.75	3.94
IAS 39 impact	‐0.06	‐1.17
Net current result – Group share	3.69	2.77
Realised result on portfolio	2.92	0.08
Unrealised result on portfolio7	‐1.60	‐1.09
Net result – Group share	5.01	1.76

Net Asset Value per share	30.06.2011	31.12.2010
Revalued net asset value in fair value8 after distribution of dividend for the year 2010	97.87	91.72
Revalued net asset value in investment value9 after distribution of dividend for the year 2010	102.43	96.07

¹ Average value of the assets plus the value of assigned receivables pertaining to buildings whose maintenance costs are still covered by the Group through insurance premiums.

² Until the date of the first break option for the lessee.

³ Calculated based on the actual rent for occupied buildings and estimated rental income for unlet buildings. For office buildings, the occupancy rate is 91.66%, compared to 87.86% for the Brussels Region in general (source: DTZ Research).

⁴ Including bank margins and amortisation costs of hedging instruments pertaining to the period.

⁵ Legal ratio defined in accordance with the Sicafi rules as borrowings and other liabilities divided by total assets.

⁶ Contractual ratio defined in the agreements with the banks as net borrowings divided by the fair value of the property portfolio and finance lease receivables.

⁷ Namely, changes in the fair value of investment properties and the exit tax.

⁸ Fair market value: after the deduction of transaction costs (mainly real property transfer taxes) from the value of investment properties.

⁹ Investment value: before the deduction of transaction costs.

Diluted Net Asset Value per share1	30.06.2011	31.12.2010
Diluted revalued net asset value in fair value2 after distribution of dividend for the year 2010	99.77	91.72
Diluted revalued net asset value in investment value3 after distribution of dividend for the year 2010	103.92	96.07

c. EPRA's key performance indicators4 (in € per share)

	30.06.2011	30.06.2010
EPRA Earnings	3.75	3.94
EPRA Net Asset Value (NAV)	120.89	120.52
EPRA Adjusted Net Asset Value (NNNAV)	105.90	91.83
EPRA Net Initial Yield (NIY)	6.65%	6.76%
EPRA 'Topped‐up' NIY	6.59%	6.73%
EPRA Vacancy Rate	4.99%	4.56%

¹ Linked to the theoretical conversion of the convertible bonds.

² Fair market value: after the deduction of transaction costs (mainly real property transfer taxes) from the value of investment properties.

³ Investment value: before the deduction of transaction costs.

⁴ Main financial performance indicators applicable to listed real estate companies according to the EPRA guidelines (www.epra.com).

1.3. Evolution of the portfolio

a. Acquisitions1

During the first 6 months of the year, Cofinimmo acquired several assets for a total of €142.0 million, exceeding the forecast in its 2010 Annual Financial Report² . These acquisitions are the result of its dynamic investment policy, intended to strengthen its flow of rental income. Its investment choices focus primarily on the healthcare sector, for the purpose of diversifying its portfolio, both in terms of classes of assets and their geographic spread and the composition of its portfolio of tenants.

The main acquisitions are:

Nursing homes/clinics (€112.2 million)

Belgium

Cofinimmo acquired all the shares of Hemera SA, the owner of the De Nieuwe Seigneurie nursing home in Rumbeke. This newly built nursing home, with a total area of 3,460m², comprises 75 beds. It has been valued at €7.4 million and provides a gross rental yield of 6.71% (double net lease equivalent³ ).

1 All acquisitions were realised at a price in line with or below the investment value determined by the independent real estate expert, with the exception of the acquisition of AMCA SA, as conditions on the property investment market changed considerably between the signing date of the acquisition agreement (in 2007) and the effective acquisition date and given that the vacancy rate of the properties was higher than initially expected. See also the press releases regarding the various acquisitions.

² See page 56 of the 2010 Annual Financial Report.

³ The yield in double net terms allows a comparison with the yield on office buildings.

Cofinimmo acquired all outstanding shares in Saint Charles Château des Moines SA, Gérigroep SA and Vert Buisson SA, the respective owners of the following nursing homes:

	Establishment	Location
1.	Saint‐Charles	Bouillon
2.	Le Chenoy	Ottignies
3.	Le Grand Cerf	Spa

The acquisition value of these 3 properties (9,300m² and 238 beds) amounted to €10.3 million. The nursing homes provide a gross rental yield of 6.86% (in double net terms).

These 4 nursing homes are operated by the Senior Assist Group, with which Cofinimmo has concluded triple net long leases with a term of 27 years.

* * *

Cofinimmo acquired all the shares of Dexia Immorent SA, a holding company which holds all the shares in Bethanie SA, Dewa Invest SA, Le Progrès SPRL, Paloke SA and Residentie De Nootelaer SPRL, the respective owners of the following nursing homes:

	Establishment	Location
1.	Bethanie	Saint‐Servais (Namur)
2.	Ten Prins	Anderlecht (Brussels)
3.	Le Progrès	Haine‐Saint‐Paul (La Louvière)
4.	Paloke	Molenbeek‐Saint‐Jean (Brussels)
5.	De Nootelaer	Keerbergen

This property portfolio totals 25,764m² and 592 beds. It has been valued at €47.0 million. The rental yield is consistent with that of the other Belgian nursing homes which Cofinimmo owns and which have similar characteristics.

The nursing homes are operated by Senior Living Group SA under triple net long leases with a residual term of 25 years.

Cofinimmo also acquired De Abdij SPRL, the owner of a vacant lot in Koksijde (near the coast). The land has been valued at €3.0 million. A 6,440m² nursing home with 87 beds will be built on this site. The building permit has already been issued. The budget for the works is estimated at €9.7 million. Handover is scheduled to take place in Q2 2013. The expected gross rental yield of the property is 6.35% in double net equivalent.

This home will be operated by Armonea, with which Cofinimmo will conclude a 27‐year triple net long lease.

France In France Cofinimmo acquired the following 6 nursing homes and care facilities:

	Type of	Location	Region
	institution
1.	EHPAD1	Cannes‐la‐Bocca	Provence‐Alpes‐Côte d'Azur
2.	EHPAD	Carnoux‐en‐Provence	Provence‐Alpes‐Côte d'Azur
3.	SSR2	Létra	Rhône‐Alpes
4.	EHPAD	Reims	Champagne‐Ardenne
5.	EHPAD	Sarzeau	Bretagne
6.	EHPAD	Villars‐les‐Dombes	Rhône‐Alpes

The properties have a total surface area of 21,653m² with 475 beds.

The total acquisition value of the 6 care facilities amounted to €44.5 million. They offer a gross rental yield in line with the average of Cofinimmo's investments in nursing homes and clinics in this country.

These homes are operated by various subsidiaries of the Medica Group, with which Cofinimmo has concluded triple net commercial leases with a term of 12 years.

¹ EHPAD : Etablissements d'Hébergement pour Personnes Agées Dépendantes : rest homes for elderly dependent persons.

² SSR : Soins de Suite et de Réadaptation : rehabilitation and post‐acute care centres.

Offices (€29.9 million)

Cofinimmo acquired all shares of AMCA SA, the owner of:

• 1. the Avenue Building office building; and
• 1. the office space in the neighbouring London Tower.

The acquired area totals approximately 13,000m² and over 200 parking spaces. The properties are located in Antwerp, between the city centre and the harbour.

The buildings are valued at €29.2 million. This price exceeds by €2.1 million or 7.7% the investment value determined by the independent real estate expert.

Cofinimmo also acquired 42 adjacent parking spaces for a total of €0.7 million.

The total occupancy rate of the properties is 32%; Cofinimmo is actively marketing the remainder. The target gross rental yield is expected to be in the range of 6.70% to 7.10%, depending on the type of lease concluded and the lease term, which should allow Cofinimmo to substantially narrow the gap between the actual acquisition value and the market value determined by the expert.

Both properties benefit from an excellent energy performance level (level E), compared to the allowable maximum in the Flemish Region (E 100): E 75 for the Avenue Building and E 74 for the London Tower. In addition, the 2 buildings are rated 'Good' under the BREEAM In‐Use certification scheme, with regard to both their design ('Asset Rating') and their operation ('Building Management Rating').

b. Divestments¹

In keeping with its asset arbitrage strategy, Cofinimmo sold assets during the first half of 2011 for a total gross amount of €41.1 million, generating a total net capital gain compared to the most recent investment values determined by the independent expert of €4.9 million or €0.33 per share. The sales proceeds have been reinvested in the framework of the company's investment program (see above).

The main properties sold were:

• 1. Da Vinci office building, located in the Leopold District in Brussels, with an area of 7,435m², acquired by the Compagnie de Manutention Groupe (CdMG);
• 1. Ledeberg 438 commercial building, located in Ghent, with an area of 4,234m², previously rented to the Delhaize Group, which exercised the purchase option provided for in its lease;
• 1. Royale 94 office building, located in the centre of Brussels, with an area of 1,917m², acquired by a Belgian company formed by a group of international charitable foundations.

c. Constructions and renovations

In order to maintain at all times a portfolio with high‐standard buildings, Cofinimmo regularly carries out (re)development projects. These projects aim to meet the needs of the occupants or to assist tenants in their expansion. For this purpose, the company uses techniques that are respectful of the urban environment.

Hence, in the first half of 2011, the company carried out constructions and renovations totalling €20.4 million, including €12.4 million in the nursing home sector, €4.0 million in the office sector, €0.6 million in the Pubstone portfolio, and €3.4 million in the 'Others'² segment.

The main projects managed by Cofinimmo's Project Management department are:

Property Type of works		Surface	End of
		area	works
Corner Building ‐ Brussels	Mid‐scale renovation	3,572m²	Q2 2011
Tervuren 270‐272 ‐ Brussels	Mid‐scale renovation (phase I)	3,747m²	Q2 2011

Offices

1 All disposals were realised at a price in line with or above the investment value determined by the independent real estate expert. See also the press releases relating to the various disposals.

² It concerns semi‐industrial and retail buildings as well as a leisure club.

Nursing homes/clinics

Property	Operator	Type of works	Number of (additional) beds	(Additional) surface area	(Scheduled) end of works
Heiberg ‐ Beerse	Armonea	Extension	+65 beds and +60 service flats	+7,009m²	Q3 2011
L'Orchidée ‐ Ittre	Armonea	Renovation and extension	+29 beds	+2,265m²	Q2 2011
't Smeedeshof ‐ Oud‐Turnhout	Armonea	Extension	+60 service flats	+8,400m²	Q3 2012
Wipstraat ‐ Antwerp	Armonea	New construction	95 beds	5,090m²	Q4 2012
Weverbos ‐ Gentbrugge	Calidus	New construction	100 rooms	5,387m²	Q2 2011
Zevenbronnen ‐ Walshoutem	Calidus	Extension	+68 beds and +26 service flats	+4,804m²	Q1 2012
Top Senior ‐ Tubize	Medibelge	Extension	+23 rooms	+1,496m²	Q3 2011
Hof ter Dennen ‐ Vosselaar	Senior Assist	Extension	‐	+955m²	Q3 2011
Prinsenpark ‐ Genk	Senior Living Group	Extension	+34 rooms +40 service flats	+4,250m²	Q4 2012

Public‐Private Partnerships

Property	Type of works	Surface area	Expected end of works
Police Station ‐ Dendermonde	Supervision of the quality of the executed works	9,500m²	Q1 2012

Others

Property	Type of works	Surface area	End of works
La Rasante ‐ Brussels	Conversion	1,050m²	Q2 2011

1.4. Commercial results

a. Rental portfolio

As of 30.06.2011, the occupancy rate was 95.2%1 for the total rental portfolio and 91.7% for the office segment alone, the latter outperforming by 3.8% the equivalent market rate of 87.9% (source: DTZ Research). The properties other than office buildings are wholly rented. Overall, during the first half of 2011, Cofinimmo signed leases for over 25,000m² of office space.

Offices – vacancy rate	Cofinimmo (in %)	Market (in %)
Antwerp	15.1%	11.5%
Brussels	8.3%	12.1%
Central Business District (CBD)	4.3%	9.3%
Decentralised	12.3%	16.5%
Periphery	7.8%	18.4%

Tenants Global portfolio	Contractual rents (in %)	Average residual lease term (in years)
AB InBev Group	13.2%	19.3
Building Agency (Belgian Federal Government)	11.4%	13.3
Korian	8.7%	8.4
Armonea	6.4%	22.9
International public sector	6.1%	6.3
Top 5 tenants	45.8%	14.5
Senior Living Group	5.2%	23.3
AXA Group	5.0%	6.0
Dexia Bank	3.0%	0.5
Senior Assist	2.8%	25.4
Méditer	2.5%	8.2
Top 10 tenants	64.3%	14.1
Top 20 tenants	75.5%	13.4
Other	24.5%	5.4
TOTAL	100.0%	11.4

b. Average residual lease term (in contractual rents)

The average remaining term of all leases in effect on 30.06.2011 is 11.4 years, if each tenant were to exercise its first termination option ('break option'). This period increases to 11.9 years if the break option is not exercised and the tenants remain in the leased premises until the contractual expiry of their leases.

¹ The occupancy rate applies only to properties in suitable rental condition on the calculation date (marketable properties).

Maturity of leases by segment (number of years until first break option)

Maturity of the portfolio

Leases > 9 years	60.7%
Offices (public sector)	15.2%
Nursing homes/clinics	28.3%
Pubstone	13.2%
Offices (private sector)	3.0%
Others	1.0%
Leases 6‐9 years	8.2%
Offices	8.2%
Leases < 6 years	31.0%
Offices	29.2%
Nursing homes/clinics	1.4%
Others	0.4%

Over 60% of the leases are long‐term leases (more than 9 years).

1.5. Property portfolio

GLOBAL PORTFOLIO OVERVIEW
Extract from the reports prepared by the independent real estate experts DTZ Winssinger & Associates
and PricewaterhouseCoopers based on the investment value
(x €1,000,000)	30.06.2011	31.12.2010
Total estimated investment value of the portfolio	3,273.59	3,153.17
Projects and land reserve	‐59.75	‐43.72
Total marketable properties	3,213.84	3,109.45
Contractual rents	213.74	207.93
Gross yield on marketable properties	6.65%	6.69%
Contractual rents and estimated rental value on unlet space on the
valuation date	224.52	217.12
Gross yield at 100% portfolio occupancy	6.99%	6.98%
Occupancy rate of marketable properties1	95.20%	95.77%

As of 30.06.2011, the item "Projects and land reserve" mainly includes projects or extensions in the nursing home segment, in particular in Beerse, Grez‐Doiceau and Weverbos.

Properties	Surface area (in m²)	Contractual rents	Occupancy rate (in %)	Rent + ERV on unlet	Estimated Rental
		(x €1,000)		premises	Value (ERV)
				(x €1,000)	(x €1,000)
Offices	620,342	96,041	91.1%	105,444	100,727
Reconstitution of lease payments sold and discounted ‐ offices	217,016	22,401	94.2%	23,774	23,774
Total offices & reconstitution of lease payments sold and discounted	837,358	118,442	91.7%	129,218	124,501
Nursing homes/ clinics	563,814	63,928	100.0%	63,928	62,717
Pubstone	343,324	28,474	100.0%	28,474	26,384
Others	22,758	2,895	100.0%	2,895	2,327
Total investment properties & reconstitution of lease payments sold and discounted	1,767,254	213,739	95.2%	224,514	215,929
Projects & renovations		309		309	306
Land reserve	3,200	134		134	165
GENERAL TOTAL PORTFOLIO	1,770,454	214,181		224,957	216,401

¹ Calculated on the basis of rental income.

Segment		Fair value		Property result after direct costs
	(in €1,000)	(in %)	Changes over the period	(in €1,000)	(in %)
Offices	1,684,580	53.4%	‐1.2%	54,483	54.1%
Brussels Leopold/Louise districts	418,366	13.2%	‐2.9%	14,016	13.9%
Brussels Centre/North	245,067	7.8%	+0.5%	8,213	8.2%
Brussels Decentralised	632,357	20.0%	‐0.6%	18,281	18.2%
Brussels Periphery & Satellites	143,815	4.6%	‐3.9%	4,906	9.0%
Antwerp	132,640	4.2%	‐2.1%	5,162	5.1%
Other Regions	112,335	3.6%	+2.4%	3,906	3.9%
Nursing homes/clinics	1,031,707	32.7%	+0.5%	29,492	29.3%
Belgium	631,968	20.0%	+0.6%	17,068	17.0%
France	399,739	12.7%	+0.2%	12,424	12.3%
Pubstone	395,853	12.5%	+0.0%	14,139	14.0%
Belgium	250,508	7.9%	+0.2%	9,528	9.5%
Netherlands	145,345	4.6%	‐0.3%	4,611	4.6%
Others	45,459	1.4%	+0.9%	2,579	2.6%
TOTAL PORTFOLIO	3,157,599	100.0%	‐0.5%	100,694	100.0%

In the first 6 months of 2011, the Cofinimmo portfolio recorded a negative change in fair value of 0.5%¹ or €15.9 million (€8.2 million during the first quarter and €7.7 million during the 2 nd quarter). This depreciation occurred almost solely in the 'Offices' segment, with the 'Nursing homes/clinics', 'Pubstone' and 'Others' segments confirming once again their resilience.

The negative change in the office segment can be mainly explained by the low level of activity in the rental market.

Geographic breakdown (in fair value)	(in %)
Belgium	82.7%
Brussels & Periphery	54.3%
Flemish Region	20.8%
Walloon Region	7.6%
France (nursing homes/clinics)	12.7%
Netherlands (Pubstone)	4.6%

Yield per segment	Offices	Nursing homes/clinics	Pubstone	Others	TOTAL
Gross rental yield at 100% occupancy	7.50%	6.28%	6.59%	7.29%	6.99%
Net rental yield at 100% occupancy	6.88%	6.32%	6.56%	7 .33%	6.67%

¹ Not adjusted for the properties bought or sold during the period (not 'like‐for‐like').

1.6. Investment programme 2011‐2012

Cofinimmo's 2011‐2012 investment programme totals €148 million, of which €52 million relates to the second half of 2011 and €96 million to 2012.

Of this total, €36 million is allocated to office buildings, in particular the construction of the Dendermonde Police Station (€13 million), which will be leased by the federal Buildings Agency (Belgian government) for a period of 18 years from the handover of the building (scheduled for Q1 2012); the remainder is allocated to the company's continuous renovation programme of its office portfolio, the most important projects being the Livingstone I‐II and Science 15‐17 buildings, which will be kicked off in 2012 (see below).

The second part of the investment programme, totalling €112 million, mainly relates to the construction of new nursing homes and extensions to homes already under management. All of these homes have been let, for 27 years in Belgium and 12 years in France.

In million €

Main future office renovation projects

The Livingstone I‐II building, situated in the European quarter between the Berlaymont building and the Marie‐Louise residential square, is currently occupied by DVV‐LAP (Dexia Group), which will vacate the premises in advance against the payment of a one‐time indemnity of €11.2 million in 2012. The current annual rent for the property is €6.2 million. A study is currently being carried out with a view to integrating into the building equipment and appliances which are both environmentally sustainable and energy efficient. A portion of the 35,000m² building will be kept as offices (±17,000m²). At the end of June, Cofinimmo applied for a permit to convert

part of the site into residential use, which will require approximately 2 years of work.

The Science 15‐17 building, a 17,700m² property which extends mainly along Rue Belliard, is let to the European Commission until 31.12.2011. The studies underway concerning its complete redevelopment emphasising sustainability and ecology. This project, for which a building permit was requested at the end of June, also adheres to the

recommendations issued by the zoning authorities in charge of the development of the Leopold District, as evidenced by the mixed use of the building and the creation of an interior courtyard, allowing public access to a significant part of the site and increasing pedestrian space. Moreover, particular care will be paid to the interior courtyard, which will feature an enlarged garden that will be rendered visible from the public area through a 5‐storey glazed atrium. Finally, areas adjoining neighbouring properties and the study of perspectives from the main nearby intersections are key priorities of the project. Objectives include obtaining 'Very Good' BREEAM certification and entering the building into the IBGE 'Exemplary Building 2011' contest. Cofinimmo studies the possibility of applying geothermal heating, which would render the building passive in terms of its heat consumption. Due to its visibility and qualities, the building will benefit from a premier position on the Brussels CBD market. Discussions with potential tenants are currently ongoing.

1.7. Management of financial resources

a. Debt structure

At 30.06.2011, the Cofinimmo Group's consolidated borrowings amounted to €1,687.97 million, comprising:

• · €787.90 million in bilateral medium‐ and long‐term loans from 8 banks, with an initial term of 3 to 10 years;
• · €158.25 million in commercial paper, including €143.25 million with a term of less than one year and €15 million with an initial term of more than 3 years;
• · €200.00 million in the form of a syndicated bank loan obtained in 2005 from 15 banks for an average initial term of 5.3 years, maturing in August 2011, and €90.00 million in the form of a second syndicated loan from 4 banks, maturing in 2012;
• · €255.62 million in the form of 3 debenture loans (bond issues), the first issued in 2004 by Cofinimmo Luxembourg SA and the second by Cofinimmo SA in 2009. Both issues mature in 2014 for a nominal amount of €100.00 million each. The third loan was issued by Cofinimmo SA in 2010 and matures in 2013 for a nominal amount of €50.00 million;
• · €169.61 million bond convertible into Cofinimmo shares, issued in April 2011 at a nominal amount of €173.31 million; this bond issue is booked at market value on the balance sheet;
• · €26.59 million in other loans and advances (account debits).

At 30.06.2011, Cofinimmo's consolidated short‐term borrowings amounted to €359.51 million, including:

• · €143.25 million in commercial paper with a term of less than one year;
• · €200.00 million of a portion of the long‐term syndicated loan maturing in August 2011;
• · €16.26 million in other loans and advances (account debits).

The short‐term borrowings (€359.51 million) are fully covered by the undrawn portions of long‐ term confirmed credit facilities totalling €611.50 million at 30.06.2011.

Repayment schedule of long‐term financial commitments1 at 30.06.2011 – €2,154.30 million (in million €)

¹ This repayment schedule includes principal but excludes interest (generally per month or per quarter) as well as projected cash flows on derivatives.

The long‐term financial commitments, with a total outstanding amount of €2,154.30 million at 30.06.2011, mature in a staggered manner up to 2019, with a maximum of 18.90% maturing in 2013. In the second half of 2011, 9.33% of the outstanding amount will mature, while 10.97% will mature in 2012. The average maturity of Cofinimmo's debt (excluding short‐term commercial paper, which is fully covered by the undrawn portions of long‐term credit facilities) dropped from 3.8 years at 31.12.2010 to 3.5 years at 30.06.2011.

The average interest rate on Cofinimmo's debt, including bank margins and the amortisation costs of hedging instruments for the period, decreased from 4.33% in 2010 to 4.31% for the first 6 months of 2011. The historically low Euribor rate is offset by the exercise of derivative instruments, in particular FLOORs and Interest Rate Swaps.

CAP options bought

Future interest rate risk coverage, as of 30.06.2011 (in million €)

IRS1

FLOOR options sold

	1,250	1,250	1,500	1,400	1,400	1.000	1,000
$\begin{array}{ll} & 3.5 \ & 6.8 \ & 2.0 \ & 3.0 \ & 50 \end{array}$
	1,000	1,250	1,500	1,400	1,409	1.600	1,000
				0 3.00% @ 3.00% @ 3.00% @ 3.00% @ 3.00% @ 3.00% @ 3.00%
2.5 1	250
	@ 2:50%
2.0
	2011	2012	2013	2014	2015	2016	2017	2018

Bank margins should be added to the above rates.

Assuming constant gearing, 84% of the interest rate risk is covered1 in 2011 and 2012, 99% in 2013, 93% in 2014 and 2015, and 69% in 2016 until 2017. Cofinimmo's bottom line remains sensitive to interest rates fluctuations.

1 Average of the Interest Rate Swaps with different strikes, and assuming that the IRS which can be cancelled prematurely by the bank are active until their final maturity.

At the time of writing, the Standard & Poor's rating is BBB for the long‐term debt and A‐2 for the short‐term debt.

b. New financing

In application of the Royal Decree on Sicafis of 07.12.2010, Cofinimmo successfully closed a placement of convertible bonds on 28.04.2011, having a total value of €173.31 million. The bonds mature on 28.04.2016 and are convertible into ordinary shares of the company. The bonds were issued and are redeemable upon maturity at 100% of their nominal value, which was set at €116.60 per bond. The coupon is fixed at 3.125%, payable annually in arrears.

The convertible bonds entitle their holders to receive Cofinimmo ordinary shares at an initial ratio of one share per bond. The initial conversion price equals the nominal value of €116.60, which was also the subscription price. The conversion price takes into account a premium of 15% on the reference price of the shares2 .

The bonds were initially offered and provisionally allocated (subject to clawback by the shareholders) to institutional investors, following an accelerated book‐building procedure, and subsequently offered to existing retail and institutional shareholders during a three‐day priority subscription period. These shareholders exercised their clawback right for 1.45% of the issue.

This transaction allowed the company to diversify its financing.

The issue and conversion conditions appear in the prospectus published on 18.04.2011, available at www.cofinimmo.com.

c. Increase in shareholders' equity

The shareholders' equity was increased by €31.0 million, further to a decision by the shareholders of Cofinimmo to reinvest their 2010 dividends, up to 37.7%, in new ordinary shares.

¹ Calculated based on derivative 'in‐the‐money' instruments: IRS and sold FLOORS.

² The reference share price of €101.39 corresponds to the volume‐weighted average price of the company's ordinary shares on Euronext Brussels from the opening of the offer until determination of the price.

1.8. Recognition of Pubstone as an institutional Sicafi

On 21.06.2011, the Financial Services and Markets Authority (FSMA), the Belgian financial regulator, recognised Pubstone SA as an institutional Sicafi, effective 30.06.2011.

Consequently, Pubstone SA became liable for an exit tax on the unrealised gains on its property portfolio, consisting of 820 properties in Belgium. The tax was estimated at €48.0 million. A provision was made for this exit tax in the company accounts as of 30.06.2011 and paid in July 2011.

In return, as from 01.07.2011 the rents of Pubstone SA are no longer included in the corporate income tax base of the company and capital gains that would be realised in connection with the sale of properties are also exempt. The corporate income tax paid by Pubstone SA for the full financial year 2010 amounted to €5.1 million.

The payment by Pubstone of the exit tax led to a recovery of excess deferred tax in the amount of €39.3 million, as explained below:

• Upon the acquisition in 2007 of the shares in Immobrew SA (the former name of Pubstone SA), subsidiaries of public Sicafis such as Cofinimmo were not allowed to opt for Sicafi status and it was not planned to merge Pubstone into Cofinimmo, insofar as AB InBev intended to perpetually maintain a stake of 10% in Pubstone. When the assets were booked in Cofinimmo's consolidated accounts at fair value, a deferred tax on the unrealised gain was recognised, at the full corporate tax rate of 33.99%. A goodwill was recognised in the amount of this deferred tax on the assets side of the balance sheet and was since subjected to impairment tests.
• The Royal Decree of 07.12.2010 authorised subsidiaries of public Sicafis to adopt the institutional Sicafi status, in which case they are liable to pay an exit tax at a rate of 16.995% on the effective recognition date. Pubstone SA converted effective 30.06.2011.
• The abovementioned deferred tax, calculated at a rate of 33.99%, totalled €87.3 million at the opening of FY2011, while the provision for the payment of the exit tax at the rate of 16.995% totalled €48.0 million at 30.06.2011.
• In the consolidated accounts drawn up on 30.06.2011, this difference was included under the heading "Result on portfolio – Other portfolio result"1 and forms a profit of the shareholders' equity, 90% allocated to the Group's share and 10% to minority interests. It follows that the net asset value of the Cofinimmo share was increased by €2.59 per share as a result.

¹ In the analytical financial statements. In the model provided for by the Royal Decree of 07.12.2010, which does not include all items of the result on portfolio, this item appears under the heading "Others".

1.9. Information on shares and bonds

a. Share performance

Ordinary share (COFB)

	30.06.2011	31.12.2010	31.12.2009
Share price (over 6/12 months, in €)
Highest	103.90	105.30	111.24
Lowest	95.15	90.25	71.17
At close	98.32	97.41	98.61
Average	99.30	97.59	89.58
Dividend yield1	6.63%	6.66%	7.26%
Gross return2 (over 12 months)	15.09%	5.37%	13.85%
Volume
(over 6/12 months, in number of shares) on Euronext
Average daily volume	33,331	31,087	34,917
Total volume	4,233,036	8,113,577	8,938,724
Number of outstanding ordinary shares	13,945,440	13,614,485	12,682,696
Market capitalisation at end of period (x €1,000)	1,371,116	1,326,187	1,250,641
Free float zone3	90%	90%	90%

Preference shares (COFP1 & COFP2)

	COFP1	COFP1	COFP2	COFP2
	30.06.2011	31.12.2010	30.06.2011	31.12.2010
Share price (over 6/12 months, in €)
At close	93.36	93.00	93.21	90.52
Average	107.95	94.17	93.12	92.83
Dividend yield1	6.11%	6.76%	6.94%	6.86%
Gross return2 (over 12 months)	7.24%	4.60%	22.92%	5.60%
Volume
(over 6/12 months, in number of shares)
Average daily volume4	65	2 453	38	150
Total volume	195	24 531	690	6,916
Number of shares	561,727	561,727	686,874	687,583
Market capitalisation at end of period (x €1,000)	52,443	52,241	64,024	62,240

¹ Gross dividend over the average annual share price (last 12 months).

² Increase in share price + dividend yield.

³ In accordance with the Euronext method.

⁴ Average based on the number of trading days on which a volume was registered.

Bonds
		CofinimmoLuxembourgSA	Cofinimmo SA
		€100 million – 2004‐2014		€100 million – 2009‐2014
		ISIN XS0193197505		ISIN BE0002171370
	30.06.2011	31.12.2010	30.06.2011	31.12.2010
Market price
(over 6/12 months, in % of nominal value)
At close	103.42%	103.77%	102.35%	102.82%
Average	102.50%	104.51%	101.60%	103.63%
Yield to maturity (12‐month average)	4.02%	4.01%	4.23%	4.07%
Effective yield at issue	5.06%	5.06%	4.54%	4.54%
Interest coupon
Gross	5.25%	5.25%	5.00%	5.00%
Net	4.46%	4.46%	4.25%	4.25%
Number of securities1	1,000,000	1,000,000	100,000	100,000

	Cofinimmo SA €50 million – 2010‐2013 ISIN BE6202995393			Cofinimmo SA Convertible bonds €173.31 million – 2011‐2016 ISIN BE0002176429
	30.06.2011	31.12.2010	30.06.2011	31.12.2010
Market price (over 6/12 months, in % of nominal value)
At close	98.03%	97.83%	97.87%	‐
Average	97.25%	97.80%	99.23%	‐
Yield to maturity (12‐month average)	3.52%	3.79%	NA	‐
Effective yield at issue	2.94%	2.94%	NA	‐
Interest coupon
Gross	2.94%	2.94%	3.125%	‐
Net	2.50%	2.50%	2.66%	‐
Number of securities1	1,000	1,000	1,486,379	‐

b. 2010 dividends

In application of the new Royal Decree on Sicafis, for FY 2010 dividends, the Board of Directors gave the holders of both ordinary and preference shares the option of receiving new ordinary shares2 or cash or a combination of the two.

At the end of the offer period, a total of 37.7% of the dividend coupons had been re‐contributed to the capital in return for new shares. This resulted in the issuance of 330,246 new ordinary shares, at a subscription price of €93.925, for a total amount of €31.0 million (also see the press release of 24.05.2011).

c. 2011 dividends

Barring the occurrence of unforeseen events, the 2011 dividend forecast issued on 11.02.2011 is maintained and amounts to €6.50 gross (€5.525 net) per ordinary share and €6.37 gross (€5.4145 net) per preference share. Dividends are subject to 15% withholding tax.

¹ Per tranche of €100 for the bond with ISIN code XS0193197505, €1,000 for the bond with ISIN code BE0002171370, €50,000 for the bond with ISIN code BE6202995393, and €116.60 for the bond with ISIN code BE0002176429.

² The newly issued ordinary shares are entitled to share in Cofinimmo's profits as of 01.01.2011 (first dividend payable in May 2012).

d. Shareholders

Company	Ordinary shares	Preference shares	Total number of shares (voting rights)	%
Dexia SA1	432,572	325,258	757,830	4.97%
Cofinimmo Group (own shares)	52,607	‐	52,607	0.35%
Total number of issued shares	13,998,047	1,248,601	15,246,648	100.0%

This information can also be consulted on the company's website (www.cofinimmo.com) under the heading "Investor Relations & Media/Share Information/Shareholder Structure".

e. Shareholders' calendar

Event	Date
Interim announcement: results at 30.09.2011	02.11.2011
Annual press release: results at 31.12.2011	10.02.2012
Publication of the 2011 Annual Report	30.03.2012
2011 Annual General Meeting	27.04.2012
Interim announcement: results at 31.03.2012	02.05.2012
Half‐yearly Financial Report: results at 30.06.2012	01.08.2012
Interim announcement: results at 30.09.2012	12.11.2012

f. Conversion preference shares

In accordance with Article 10bis of the company's articles of association, 2 new windows to convert Cofinimmo preference shares into Cofinimmo ordinary shares were opened during the first 6 months of the year. During this period, applications to convert 709 preference shares were received. Accordingly, since the opening of the conversion procedure (01.05.2009), 251,165 preference shares have been converted into ordinary shares. Hence, 1,248,601 preference shares are still outstanding. The resulting changes to the capital structure were disclosed to the press and in the company's articles of association, as well as under the heading "Investor Relations & Media/Share Information/Types of Share + Shareholder Structure" on the company's website (www.cofinimmo.com).

For the record, the next conversion period will be the last 10 calendar days of the next quarter, namely from 21.09.2011 until 30.09.2011.

¹ Based on the notifications received as of 07.07.2011.

1.10. Events after 30.06.2011

a. Acquisition of De Mouterij SA

Cofinimmo acquired all outstanding shares in De Mouterij SA, the owner of a vacant lot in Aalst (northwest of Brussels) as well as 25 parking spaces on a neighbouring site. The land and parking spaces are valued at €2.2 million.

Cofinimmo plans to build a nursing home with a surface area of 7,600m² (109 beds) and 16 service flats on this site. The building permit has already been issued. The provisional budget for the construction works is €11.6 million and handover is expected to occur in early 2014. The asset has a projected gross double net rental yield of 6.60%.

The nursing home will be operated by a subsidiary of the Senior Assist Group, with which Cofinimmo will enter into a triple net long lease for a term of 27 years.

b. Award of a public tender to build and maintain a new prison

On 14.07.2011 the Deputy Prime Minister and Minister of Finance, Mr Didier Reynders, and the Minister of Justice, Mr Stefaan De Clerck, signed a contract with the Future Prisons consortium, consisting of Cofinimmo, Cordeel Zetel Temse and Willemen, for the construction of a new prison in Leuze‐en‐Hainaut.

At present, the consortium is negotiating the final terms of this contract, which is based on the Design‐Build‐Finance‐Maintain model, with a view to financial close in early September.

Cofinimmo intends to set up an SPV (FPR Leuze SA). Cofinimmo will hold 50% of this entity, with the remainder being held by the other consortium members. The vehicle will be jointly controlled and accounted for using the equity method in Cofinimmo's consolidated financial statements.

Cofinimmo will acquire the remaining shares of FPR Leuze upon issuance of the certificate of availability for the building by the Buildings Agency (Belgian government), scheduled to occur in Q4 2013. From that time on, Cofinimmo will exercise exclusive control over the company, which will be consolidated by full integration.

The project, whose total cost is estimated at approximately €100 million, will be financed by FPR Leuze with equity and a short‐term loan. The loan will be reimbursed upon handover of the building, through the sale of 90% of the investment fee receivables which cover a 25‐year period. FPR Leuze will retain the remaining receivables as well as any other fees, which mainly concern maintenance and will be allocated to pay maintenance services subcontracted to specialised firms. FPR Leuze has already secured the short‐term loan and arranged for the sale of the receivables.

The Consortium opted for a concept intended to favour the quality of life of the inmates, provide the prison personnel with a functional workplace, and limit the environmental impact.

The internationally recognised BREEAM environmental certification method has been selected. The building should achieve a rating of 'Excellent', have outstanding energy consumption, and meet rigorous standards in terms of the materials used, comfort level, water consumption, waste production, etc.

By opting for an 'Excellent' rating, the Consortium wished to go beyond the minimum or statutory obligations. Sustainable development will be emphasised throughout all stages of the project: conception, construction and use.

1.11. Risk management

Below is an overview of the most significant risks to which Cofinimmo is exposed in its activities. Reference is made to pages 2 to 5 of the 2010 Annual Financial Report for a detailed account of the company's risk management strategy.

Risks associated with the economic climate

The activities of Cofinimmo are partially linked to the general economic climate. A decline in economic growth indirectly influences the occupancy rate of offices in the private sector as well as rent. It can also increase the risk of default by tenants. The impact on Cofinimmo's bottom line is however mitigated by the duration of its lease agreements (as of 30.06.2011, the average period until the first break option is 11.4 years), the diversification of its tenant portfolio (305 clients), and the fact that close to one third of its tenants are from the public sector. Thanks to its diversification into less volatile sectors such as nursing homes and clinics and the sale‐and‐leaseback with AB InBev, Cofinimmo's portfolio is less exposed to the risks posed by the current economic climate.

Risk of vacancy

For about 3 years, the vacancy rate on the Brussels office market has been increasing. As of 30.06.2011, the vacancy rate in Brussels is 12.04% (source : DTZ Research). For Cofinimmo's Brussels office portfolio, the vacancy rate is 8.34% as of 30.06.2011. Cofinimmo actively manages its client base in order to minimise vacancies and tenant turnover in the office segment. An internal property management team is responsible for swiftly resolving tenant complaints. The commercial team maintains regular contacts with existing tenants and actively seeks new ones.

The nursing homes are let on a long‐term basis, with an initial lease term of 27 years in Belgium and 12 years in France. As of 30.06.2011, the average remaining lease term was 24.0 years in Belgium and 8.7 years in France.

As of 30.06.2011, the entire pub portfolio is let to AB InBev with an average residual term of 19.3 years.

Risk of tenant insolvency

Cofinimmo is exposed to the risk of default by its tenants. As of 30.06.2011, the 5 most important clients accounted for 45.8% of its rental income. The 2 most important office tenants (17.5%) are from the public sector.

An advance deposit or bank guarantee corresponding to 6 months' rent is generally requested from private‐sector tenants.

Risks associated with investment and development

Cofinimmo engages in limited development activity for its own account, the maximum being set at 10% of the fair value of its portfolio.

When considering investments, Cofinimmo makes certain estimates as to economic, market and other conditions, including estimates relating to the value or potential value of a property and the potential return on investment. These estimates may prove to be incorrect, rendering Cofinimmo's investment strategy inappropriate with consequent negative effects for Cofinimmo's business, results of operation, financial conditions and prospects.

Before acquiring a building, Cofinimmo performs an internal assessment in order to determine a price for the building with a view to long‐term management. Moreover, an independent expert assesses each acquisition or sale of property.

Risks associated with deterioration and large‐scale works

Cofinimmo maintains and regularly renovates its properties in order to ensure that they remain attractive to tenants. The current trend towards sustainable, energy‐efficient buildings, both in terms of construction and use, may require additional investments.

Risks associated with fluctuations in the market value of real estate

The properties are valued quarterly by independent property experts. A fluctuation of 1% in the value of the portfolio can have an impact of around €31.6 million on the company's net result and of €2.08 on the intrinsic (book) value per share. It can also have an impact of approximately 0.5% on the debt ratio.

Liquidity and financing risks

Diverse financing sources, a stable and varied banking pool with good financial ratings (Cofinimmo has 21 banking partners), and staggered loan maturity dates favour appropriate financial conditions. Cofinimmo's borrowing capacity is limited by the maximum debt ratio authorised by the Sicafi rules and by the Loan‐to‐Value ratio agreed with the banks in the loan documents. As of 30.06.2011, the Sicafi debt ratio is 52.07%, significantly below the maximum of 65%. As of 30.06.2011, the Loan‐to‐ Value ratio is 53.74%. This ratio cannot exceed 60%. However, if a first threshold of 57.50% is passed, it has been agreed with the banks that the ratio must drop below this percentage within the next 6 months.

Cofinimmo has a medium‐term financial plan which is completely revised in the spring of each year and updated during the year on the occasion of each significant acquisition or disposal of property. The purpose of this type of plan is notably to position the consolidated debt ratio of Cofinimmo at an appropriate level, based on an assessment by the Board of Directors of the risks inherent in the company's portfolios of assets and leases1 .

Interest rate risks

Cofinimmo almost always borrows at a variable (floating) interest rate. Derivatives are used to hedge financing costs against rate increases and to ensure that interest rates remain within a certain margin, between a maximum and minimum rate. These instruments include more precisely Interest Rate Swaps and CAP options, partially financed by FLOOR options.

By using existing hedging mechanisms and assuming a constant level of indebtedness, a rise or fall in the interest rate of 0.5% should not significantly affect financing expenses of the current year.

The interest‐rate derivatives are marked to market at the end of each quarter. Future rate fluctuations thus impact the net asset value and the profit for the period.

1 See Article 54 of the Royal Decree of 07.12.2010.

1.12. Corporate Governance

Cofinimmo seeks to maintain high standards of corporate governance and continuously assesses its governance principles, practices and requirements. The practice of corporate governance by Cofinimmo is entirely in line with the Belgian Corporate Governance Code. The company's Corporate Governance Charter can be consulted on its website (www.cofinimmo.com), under the heading "Corporate Governance".

The composition of the Board of Directors is indicated on page 59 of this Report. A detailed description of the various board Committees, their respective roles and members appears in the chapter entitled "Corporate Governance Statement" of the 2010 Annual Financial Report. The Annual General Meeting of 29.04.2011 approved the appointment of Mr Xavier Denis as executive Director and the renewal of the terms of office of Mr Serge Fautré, as Managing Director, and Mr Robert Franssen, as non‐executive Director. Moreover, as the term of office of Mr André Dirckx ended in view of the applicable corporate governance provisions, the Board of Directors decided to appoint Mr André Bergen as Chairman (see the press release of 29.04.2011).

The Extraordinary General Meeting of 29.03.2011 approved the bringing into line of the articles of association with the new Royal Decree on Sicafis of 07.12.2010 and the Act of 25.11.2010 as well as the renewal of certain authorisations conferred on the Board of Directors (see the press release of 29.03.2011).

2. Summary of the Financial Statements

The accounting principles and methods used to draw up these interim financial statements are identical to those used to prepare the annual financial statements for FY 2010. These interim financial statements have been prepared using accounting methods that comply with IFRS and in particular IAS 34 on "Interim Financial Reporting".

	Notes	Q2 2011	Q2 2010	Year to date on 30.06.2011	Year to date on 30.06.2010
A. NET RESULT
Rental income	5	48,593	48,871	94,863	98,727
Writeback of lease payments sold and
discounted	5	5,234	4,414	10,468	8,749
Rental‐related expenses		168	155	166	‐57
Net rental income	4,5	53,995	53,440	105,497	107,419
Recovery of property charges		‐42	75	78	83
Recovery income of charges and taxes
normally payable by the tenant on let		8,107	10,579	20,525	18,715
properties
Costs payable by the tenant and borne
by the landlord on rental damage and		‐480	‐295	‐785	‐576
redecoration at end of lease
Charges and taxes normally payable by
the tenant on let properties		‐8,274	‐10,752	‐20,008	‐18,909
Property result		53,306	53,047	105,307	106,732
Technical costs		‐1,022	‐1,108	‐1,715	‐2,500
Commercial costs		‐549	‐244	‐751	‐716
Taxes and charges on unlet properties		‐1,001	‐1,365	‐2,147	‐2,371
Property management costs		‐3,323	‐3,370	‐7,022	‐7,383
Property charges		‐5,895	‐6,087	‐11,635	‐12,970
Property operating result		47,411	46,960	93,672	93,762
Corporate management costs		‐1,806	‐1,405	‐3,682	‐3,185
Operating result before result on		45,605	45,555	89,990	90,577
portfolio
Gains or losses on disposals of		446	617	4,946	1,135
investment properties
Changes in fair value of investment		‐7,722	‐10,509	‐15,915	‐14,892
properties
Other portfolio result		‐4,348		‐4,385
Operating result		33,981	35,663	74,636	76,820
Financial income	6	1,513	2,413	2,772	3,757
Net interest charges	7	‐16,330	‐17,128	‐30,368	‐31,808
Other financial charges	8	‐93	‐478	‐192	‐3,833
Changes in fair value of financial assets	9	105	‐10,590	‐945	‐16,424
and liabilities
Financial result		‐14,805	‐25,783	‐28,733	‐48,308
Pre‐tax result		19,176	9,880	45,903	28,512
Corporate tax		‐2,930	‐1,471	‐4,714	‐3,141
Exit tax		‐47,651	‐237	‐47,743	‐337
Other1		87,344		87,344
Taxes		36,763	‐1,708	34,887	‐3,478
Net result		55,939	8,172	80,790	25,034
Minority interests		‐4,184	‐210	‐4,729	‐329
Net result – Group share		51,755	7,962	76,061	24,705
Net current result – Group share		27,977	18,181	56,113	38,888
Result on portfolio – Group share		23,778	‐10,219	19,948	‐14,183

2.1. Comprehensive income statement – in accordance with the Royal Decree of 07.12.2010 (x €1,000)

¹ This item comprises the writeback of deferred taxes.

B. OTHER ELEMENTS OF THE COMPREHENSIVE RESULT
Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties	‐4,725	548	‐4,813	416
Change in the effective part of the fair value of authorised cash flow hedging instruments	‐11,581	‐21,420	21,832	‐47,783
Other elements of the comprehensive result	‐16,306	‐20,872	17,019	‐47,367
Minority interests	65	1	64	2
Other elements of the comprehensive result – Group share	‐16,241	‐20,871	17,083	‐47,365
C. COMPREHENSIVE RESULT	39,632	‐12,700	97,810	‐22,333
Minority interests	‐4,119	‐209	‐4,665	‐327
Comprehensive result – Group share	35,513	‐12,909	93,145	‐22,660

Result per share – Group share (in €)	30.06.2011	30.06.2010
Net current result per share – Group share	3.69	2.77
Result on portfolio per share – Group share	1.32	‐1.01
Net result per share – Group share	5.01	1.76

Diluted result per share – Group share (in €)1	30.06.2011	30.06.2010
Diluted number of shares	15,715,726	14,009,389
Diluted net result per share – Group share	4.86	1.76

¹ Linked to the theoretical conversion of the convertible bonds.

2.2. Consolidated income statement – analytical format (x €1,000)

	30.06.2011	30.06.2010
A. NET CURRENT RESULT
Rental income, net of rental‐related expenses	95,029	98,670
Writeback of lease payments sold and discounted (non‐cash)	10,468	8,749
Taxes and charges on rented properties not recovered	517	‐194
Redecoration costs, net of tenant compensation for damages	‐707	‐493
Property result	105,307	106,732
Technical costs	‐1,715	‐2,500
Commercial costs	‐751	‐716
Taxes and charges on unlet properties	‐2,147	‐2,371
Property result after direct property costs	100,694	101,145
Property management costs	‐7,022	‐7,383
Property operating result	93,672	93,762
Corporate management costs	‐3,682	‐3,185
Operating result (before result on portfolio)	89,990	90,577
Financial income (IAS 39 excluded)1	2,772	3,757
Financial charges (IAS 39 excluded)2	‐30,560	‐35,641
Revaluation of derivative financial instruments (IAS 39)	‐945	‐16,424
Taxes	‐4,714	‐3,141
Net current result3	56,543	39,128
Minority interests	‐430	‐240
Net current result – Group share	56,113	38,888
B. RESULT ON PORTFOLIO
Gains or losses on disposals of investment properties	4,946	1,135
Changes in fair value of investment properties	‐15,915	‐14,892
Other portfolio result4	35,216	‐337
Result on portfolio	24,247	‐14,094
Minority interests	‐4,299	‐89
Result on portfolio – Group share	19,948	‐14,183
C. NET RESULT
Net result – Group share	76,061	24,705

Number of shares	30.06.2011	30.06.2010
Number of ordinary shares issued (own shares included)	13,998,047	13,551,214
Number of preference shares issued and not converted	1,248,601	1,251,611
Number of ordinary shares entitled to share in the result of the period	13,945,440	12,771,107
Number of preference shares entitled to share in the result of the period	1,248,601	1,251,611
Total number of shares entitled to share in the result of the period	15,194,041	14,022,718

¹ Taking into account the impact of IAS 39, at 30.06.2011 and 30.06.2010, financial income stands at K€10,943 and K€3,757 respectively.

² Taking into account the impact of IAS 39, at 30.06.2011 and 30.06.2010, financial charges stand at K€‐39,676 and K€‐52,065 respectively.

³ Net result excluding gains or losses on disposals of investment properties, changes in fair value of investment properties, exit tax and recovery of deferred taxes.

⁴ Recovery of deferred taxes included.

Comments on the consolidated income statement – analytical format

Rental income for the first half of 2011 amounted to €95.0 million, compared to €98.6 million for the first half of 2010 or a drop of 3.7%, mainly due to the sale of properties over the past 12 months. On the basis of an unchanged portfolio (like‐for‐like), the level of rent rose by 0.66% over the last 12 months. As of 30.06.2011, the occupancy rate was 95.20% for the entire portfolio and 91.66% for the office portfolio alone.

Direct and indirect operating costs totalled €15.3 million on 30.06.2011, compared to €16.2 million on 30.06.2010 (‐5.2%). These costs represent 0.85% of the average value of the assets under management (versus 0.80% for the full year 2010).

The operating result (before result on portfolio) was €90.0 million, compared to €90.6 million for the first half of 2010.

The financial result rose from €‐48.3 million in the 1 st half of 2010 to €‐28.7 million for the first half of 2011. This improvement is attributable, on the one hand, to a drop in effective interest expenses for the period and, on the other hand, to the change, still negative but less so, in the fair value of the interest rate hedging instruments.

Interest charges totalled €‐30.4 million on 30.06.2011, compared to €‐31.8 million on 30.06.2010. This can be explained, on the one hand, by the drop in the average debt level (€1,524.4 million on 30.06.2011 versus €1,614.1 million on 30.06.2010) and, on the other hand, the reduction in the effective interest rate, including bank margins and depreciation costs of hedging instruments pertaining to the period: 4.31%¹ on 30.06.2011 versus 4.69% on 30.06.2010.

The revaluation of interest rate hedging instruments resulted in a net latent loss of €1.0 million2 for the first half of 2011, compared to a net latent loss of €16.4 million for the first half of 2010. The balance sheet item under shareholders' equity entitled "Reserve for the balance of changes in fair value of financial instruments" 3 , where fluctuations in the effective value of financial instruments, both optional and non‐ optional, are recorded, recovered from €‐60.1 million on 31.12.2010 to €‐46.6 million on 30.06.2011, due to the rise in future interest rates between these 2 dates. This variation of the period does not appear on the income statement but favourably affects shareholders' equity and the net asset value of the shares. Owing to the rise in interest rates and at the latest when the hedging instruments become active, this entry is progressively reversed.

Taxes (€‐4.7 million) included the tax on non‐deductible costs of a Sicafi (primarily the office tax in the Brussels‐Capital Region) and corporate income tax due by subsidiaries which do not benefit from the Sicafi tax regime. This concerns mainly Pubstone SA, which was however converted into an institutional Sicafi effective 30.06.2011.

The net current result (Group share) for the first half of 2011 amounted to €56.1 million, versus €38.8 million for the first half of 2010 (+44.5%). If the negative impact of IAS 39 is excluded, it amounted to €57.1 million compared to €55.3 million for the first half of 2010 (+3.3 %) and, per share, €3.75 versus €3.95 for the first half of 2010 (‐4.8%). The number of shares participating in earnings rose by 8.4% between 30.06.2010 and 30.06.2011.

¹ The average interest rate is determined by dividing, on an annual basis, the interest expenses on borrowing (€30.4 million) and the depreciation costs of hedging instruments (€2.5 million) by the average debt for the period (€1,524.4 million).

² This amount also includes €0.7 million, representing the positive change in the fair value of the debt made up of the convertible bonds issued by the company in April 2011. This debt is booked at market value on 30.06.2011, namely €169.6 million.

³ This entry appears under the "Reserves" heading on the balance sheet.

The result on portfolio – Group share was positive during the first half of 2011, rising from €‐14.2 million for the first half of 2010 to €19.9 million for the first half of 2011. The realised capital gains on property were €4.9 million, versus €1.1 million for the first half of 2010, while the negative change in fair value of the portfolio amounted to €15.9 million, compared to €14.9 million for the first half of 2010. The result on portfolio for the 1 st half of 2011 also included, under the sub‐heading "Other portfolio result", recovered deferred tax following the conversion of Pubstone SA into an institutional Sicafi, in the amount of €39.3 million (see the explanation on page 23). The Group's share of unrealised portfolio result amounted to €1.32 per share for the first half of 2011 compared to €‐1.01 per share for the same period in 2010.

The net income (Group share) for the first half of 2011 indicates a profit of €76.1 million, compared to €24.7 million for the first half of 2010. This amounted to earnings per share of €5.01, compared to €1.76 for the first half of 2010.

2.3. Consolidated balance sheet (x €1,000)

	Notes	30.06.2011	31.12.2010
Non‐current assets		3,409,469	3,304,794
Goodwill	4	164,356	164,012
Intangible assets		1,165	1,427
Investment properties	4,10	3,157,599	3,041,916
Other tangible assets		824	539
Non‐current financial assets		28,173	38,522
Finance lease receivables		57,322	58,349
Trade receivables and other non‐current assets		30	29
Current assets		107,466	77,112
Assets held for sale	4	170	170
Current financial assets		12,347	9,227
Finance lease receivables		3,030	2,780
Trade receivables		20,370	18,864
Tax receivables and other current assets		15,714	22,137
Cash and cash equivalents		2,487	3,265
Deferred charges and accrued income		53,348	20,669
TOTAL ASSETS		3,516,935	3,381,906
Shareholders' equity		1,498,722	1,466,878
Shareholders' equity attributable to shareholders of parent company		1,487,019	1,459,781
Capital	11	814,226	796,528
Share premium account	11	312,327	513,093
Reserves		284,405	66,364
Net result of the financial year	12	76,061	83,796
Minority interests		11,703	7,097
Liabilities		2,018,213	1,915,028
Non‐current liabilities		1,437,427	1,448,760
Provisions		17,862	19,234
Non‐current financial debts		1,328,457	1,226,815
Other non‐current financial liabilities		45,488	69,693
Deferred taxes		45,620	133,018
Current liabilities		580,786	466,268
Current financial debts		359,512	313,730
Other current financial liabilities		49,265	62,780
Trade debts and other current debts		142,121	62,631
Accrued charges and deferred income		29,888	27,127
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		3,516,935	3,381,906

Comments on the consolidated balance sheet

The fair value of the property portfolio¹ , as appears from the consolidated balance sheet, by application of IAS 40, is obtained by deducting transaction costs from the investment value. At 30.06.2011, the fair value stands at €3,157.6 million, compared to €3,041.9 million at 31.12.2010.

The investment value of the property portfolio¹ , as established by the independent real estate experts, is €3,273.6 million at 30.06.2011, compared to €3,153.2 million at 31.12.2010 (see also the table under "Property portfolio" on page 16).

The exit tax provision for Pubstone SA in the amount of €48.0 million is booked under "Trade debts and other current debts" at 30.06.2011.

¹ Including buildings for own use and development projects.

2.4. Calculation of debt ratio (x €1,000)

The debt ratio (debts to total assets) at 30.06.2011 comes to 52.07%. It should be recalled that the statutory maximum debt ratio for Sicafis is 65%.

		30.06.2011	31.12.2010
Non‐current financial debts		1,328,457	1,226,815
Other non‐current financial liabilities (except for hedging instruments)	+	1,137	3,373
Current financial debts	+	359,512	313,730
Other current financial liabilities (except for hedging instruments)	+
Trade debts and other current debts	+	142,121	62,631
Total debt	=	1,831,227	1,606,549
Total assets	/	3,516,935	3,381,906
DEBT RATIO	=	52.07%	47.50%

2.5. Consolidated cash flow statement (x €1,000)

	30.06.2011	30.06.2010
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	3,265	2,343
Operating activities
Net result of the period	76,061	24,705
Adjustments for interest charges and income	27,649	33,143
Adjustments for gains and losses on disposal of property assets	‐4,946	‐2,428
Adjustments for gains and losses on disposal of financial assets
Adjustments for non‐cash charges and income	‐26,522	25,417
Changes in working capital	2,816	1,328
CASH FLOW FROM OPERATING ACTIVITIES	75,058	82,165

Investment activities
Investments in intangible assets and other tangible assets	‐522	‐247
Acquisitions of investment properties	‐44,585	‐139
Extensions of investment properties	‐12,409
Investments in investment properties	‐16,656	‐21,722
Acquisitions of consolidated subsidiaries	‐20,238
Disposals of investment properties	41,095	37,558
Disposals of assets held for sale		2,153
Payment of exit tax
Disposal and reimbursement of finance lease receivables	1,452	7,800
Other cash flows from investment activities
NET CASH FROM INVESTING ACTIVITIES	‐55,863	25,403

Financing activities
Acquisition of own shares
Disposal of own shares		1,144
Dividends paid to shareholders	‐64,406	‐90,465
Reacquisition of minority interests		‐131
Increase in financial debts	230,364	32,807
Decrease in financial debts	‐144,363	‐20,203
Financial income received	15,511	1,953
Financial charges paid	‐39,138	‐32,157
Other cash flows from financing activities	‐17,941	139
CASH FLOW RESULTING FROM FINANCING ACTIVITIES	‐19,973	‐106,913
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	2,487	2,998

2.6. Consolidatedstatement of changes in shareholders' equity (x €1,000)

	l Ca ita p	ha S re ium p rem t ac co un	1 Re se rve s	lt o f Ne t r es u he t y ea r	Eq ity u Pa t ren co mp an y	M ino ity r int sts ere	ha S re‐ ho l de ' rs ity eq u
A T 0 1.0 1.2 01 0	7 5 0, 7 15	4 7 9, 5 4 1	8, 8 13 19	3 2, 4 5 0	1, 4 00 9 04 ,	8, 15 3	1, 4 09 05 7 ,
f t he lt Ap iat ion t r 20 09 p rop r o ne es u			3 2, 4 5 0	3 2, 4 5 0 ‐
lem d ly d ha ho l de ' e E ire ise in ity ts ct og en rec n s re rs q u			‐4 7, 9 13	24 7 05 ,	8 23 20 ‐ ,	22 9	22 9 7 9 ‐ ,
h f low he dg Ca e s			83 ‐4 7, 7		83 ‐4 7, 7		83 ‐4 7, 7
fa lue f e d lt Im ir v im ion ing act st ate tra act sts p on a o ns co res u fro hy he ica l d isp l o f inv ies ot t est nt ert m p os a me p rop			8 4 1		8 4 1		8 4 1
lt f t he d Re io o er su p				24 7 05 ,	24 7 05 ,	3 29	25 03 4 ,
ino ity int M sts r ere						‐10 0	10 0 ‐
fer Tra t tax t r ns o ‐ex em p ese rve s			6 ‐7 0		6 ‐7 0		6 ‐7 0
he Ot rs			8 15		8 15		8 15
SU B‐T OT AL	7 5 0, 7 15	4 7 9, 5 4 1	122 7 3 5 ,	24 7 05 ,	69 6 1, 3 7 7,	8, 82 3	8 6, 8 1, 3 07
f n ha Iss ue o ew s res
/ ls o f o ha Ac is it ion D isp q s os a wn s res u	7 15	4 3 0			1, 14 5		1, 14 5
de ds D iv i n			6 ‐9 1, 17		6 ‐9 1, 17		6 ‐9 1, 17
6.2 A T 3 0.0 01 0	7 5 1, 4 3 0	4 7 9, 9 7 1	3 1, 5 5 9	24 7 05 ,	87 6 65 1, 2 ,	8, 82 3	6, 1, 29 04 7
lem ly ha ho l ' e d ire ise d in de ity E ts ct en rec og re n s rs q u			80 3 4, 5	5 9, 09 1	89 6 9 3,	85 1, 2 ‐	61 9 2, 1
f h low he dg Ca s e			80 3 4, 4		80 3 4, 4		80 3 4, 4
fa lue f e lt ir v im d ion ing Im act st ate tra act sts on o co res p a ns u fro hy he ica l d isp l o f inv ies ot t est nt ert m p os a me p rop			‐8 61		‐8 61		‐8 61
f t lt he io d Re su o p er				9, 09 1 5	9, 09 1 5	3 13	9, 04 5 4
ino ity int M sts r ere						8 ‐1, 5 9	8 1, 5 9 ‐
fer Tra t tax t r ns o ‐ex em p ese rve s			‐8 81		‐8 81		‐8 81
he Ot rs			1, 7 4 3		1, 7 4 3		1, 7 4 3
SU B‐T OT AL	7 3 1, 4 3 0	4 7 9, 9 7 1	6 6, 64 3	83 6 7 9 ,	81 61 1, 3 5 ,	7, 09 7	8 8, 65 8 1, 3
f n ha Iss ue o ew s res	6, 09 0	4, 9 4 2			11, 03 2		11, 03 2
/ ls o f o ha Ac is it ion D isp q s os a wn s res u	8 3 9, 00	8, 80 2 1			67 8 8 1 ,		67 8 8 1 ,
A T 3 1.1 2.2 01 0	6, 8 7 9 5 2	5 13, 09 3	6 6, 64 3	83 6 7 9 ,	81 1, 4 5 9, 7	7, 09 7	6 6, 87 8 1, 4

The reserves are itemisedon the following pages.

	l Ca ita p	ha S re	1 Re se rve s	lt o f Ne t r es u	Eq ity u	M ino ity r	ha S re‐
		ium p rem		he t y ea r	Pa t ren	int sts ere	ho l de 's r
		t ac co un			co mp an y		ity eq u
A T 3 1.1 2.2 01 0	6, 8 7 9 5 2	5 13, 09 3	6 6, 64 3	83 6 7 9 ,	81 1, 4 5 9, 7	7, 09 7	6 6, 87 8 1, 4
f t he lt Ap iat ion t r 20 10 p rop r o ne es u			83 6 7 9 ,	83 6 7 9 ‐ ,
lem d ly d ha ho l de ' e E ire ise in ity ts ct og en rec n s re rs q u		87 214 0 ‐ ,	69 23 0, 7	6, 61 7 0	67 9 2, 1	60 6 4,	9 7, 27 7
h f low he dg Ca s e			83 21, 2		83 21, 2		83 21, 2
fa lue f e d lt Im ir v im ion ing act st ate tra act sts p on a o ns co res u fro f hy he ica l d isp l o inv ies ot t est nt ert m p os a me p rop			‐4, 3 7 2		‐4, 3 7 2		‐4, 3 7 2
lt f t he d Re io su o p er				6, 61 7 0	6, 61 7 0	4, 7 29	80 7 9 0 ,
ino ity int M sts ere r						80 2	80 2
Ot he rs		87 214 0 ‐ ,	213 23 7 ,		‐8 0 5	9 25 ‐	1, 7 7 5 ‐
SU B‐T OT AL	8 6, 7 9 5 2	6 29 9, 00	80 85 3 7 ,	6, 61 7 0	1, 5 5 2, 4 5 2	11, 7 03	64 1, 5 15 5 ,
f n ha Iss ue o ew s res	8 69 17,	13, 3 21			3 1, 01 9		3 1, 01 9
is it ion / isp ls o f o ha Ac D q u s os a wn s res
de ds D iv i n			6, ‐9 4 5 2		6, ‐9 4 5 2		6, ‐9 4 5 2
6.2 A T 3 0.0 01 1	81 6 4, 22	3 12, 3 27	84 2 4 05 ,	6, 61 7 0	87 1, 4 01 9 ,	11, 7 03	8, 1, 4 9 7 22

The reserves are itemisedon the following pages.

Itemisationof the reserves

	for Re ser ve	for Re ser ve	for Re ser ve	for Re ser ve	Dis tri bu b le ta	No n‐	Tax t ‐ex em p	l Leg a	TO TA L
	/ he osi tiv t e p	im d est ate	he ba lan t ce	he ba lan t ce	res erv es	dis tri bu b le ta	res erv es	res erv e	RE SE RV ES
	ati g ne ve	cti tra nsa on	f ha in ng o c es	f ha in ng o c es		res erv es
	ba lan f ce o	ltin ts g cos r esu	fai lue f v r a o	fai lue f v r a o
	ha in ng c es	fro m	ho d rise aut	ho d rise aut
	fai lue f v r a o	hyp he l tic ot a	he dg ing	he dg ing
	inv est nt me ies ert	dis l o f p osa inv est nt	ins tru nts me li for	ins tru nts me t
	p rop	me ies ert	fy ing qu a he dg e	no fy for li ing a
		p rop	nti ou ng acc	qu he dg e
			de fin d by as e	nti ng acc ou
			IFR S	de fin d by as e
				IFR S
A T 0 1.0 1.2 01 0	89 6 5 9 ,	‐64 5 10 ,	83 ‐4 7, 0		62 1 3 9 3 ,	1, 03 9	‐3, 27 2	3 5	8, 8 13 19
f t he lt iat ion Ap rop o 20 09 res p r u	8, ‐11 4 4 4	7 03			15 0, 00 2	89 1			3 2, 4 5 0
lem d ire ly ise d in ha ho l de ' e ity E ts ct og en rec n s re rs q u	23 1	5 4 0	82 ‐4 7, 7		8 ‐3 5	62 1	6 ‐7 0		‐4 7, 9 13
h f low he dg Ca s e			83 ‐4 7, 7						83 ‐4 7, 7
fa lue f e d lt fro Im ir v im ion ing act st ate tra act sts p on a o ns co res u m hy he l l o f ica d isp inv ies ot t est nt ert os me rop p a p		8 4 1							8 4 1
lt f t he Re io d o er su p
ino ity int M sts r ere
fer Tra t tax t r ns o ‐ex em p ese rve s							6 ‐7 0		6 ‐7 0
he Ot rs	23 1	122	1		8 ‐3 5	62 1			8 15
SU B‐T OT AL	8, 61 ‐2 7	‐63 67 2 ,	8 65 ‐9 4,		3 12, 03 7	1, 3 9 0	8 ‐3, 9 7	3 5	122 7 3 5 ,
f n ha Iss ue o ew s res
/ f o is it ion isp ls o ha Ac D q u s os a wn s res
iv i de ds D n					6 ‐9 1, 17				6 ‐9 1, 17

6.2 A T 3 0.0 01 0	8, 61 2 7 ‐	‐63 67 2 ,	8 6 6 ‐9 4,	8 61 22 0,	1, 3 9 0	8 ‐3, 9 7	3 5	3 1, 5 5 9
lem d ly d ha ho l de ' e E ire ise in ity ts ct og en rec n re rs q s u		‐8 61	80 3 4, 4	6 1, 5 7	67 1	‐8 81		80 3 4, 5
h f low he dg Ca s e			80 3 4, 4					80 3 4, 4
fa ir v lue f e im d ion lt ing fro Im act st ate tra act sts p on a o ns co res u m hy he l d l o f ica isp inv ies ot t est nt ert p os a me p rop		‐8 61						‐8 61
lt f t he d Re io su o p er
M ino ity int sts r ere
fer Tra t tax t r ns o ‐ex em p ese rve s						‐8 81		‐8 81
Ot he rs				6 1, 5 7	67 1			3 1, 7 4
SU B‐T OT AL	8, 61 ‐2 7	8 ‐64 12 ,	‐6 61 0, 0	22 2, 3 4 7	1, 5 5 7	85 9 ‐4,	3 5	6 6, 64 3
f n ha Iss ue o ew s res
/ ls o f o ha Ac is it ion D isp q s os a wn s res u
A T 3 1.1 2.2 01 0	8, 61 2 7 ‐	‐64 8 12 ,	‐6 61 0, 0	22 2, 4 3 7	1, 5 5 7	85 ‐4, 9	3 5	6 6, 64 3

	for Re ser ve he / osi tiv t p e	for Re ser ve d im est ate	for Re ser ve he ba lan t ce	for Re ser ve he ba lan t ce	bu b le Dis tri ta res erv es	No n‐ dis bu b le tri ta	Tax t ‐ex em p res erv es	l Leg a res erv e	TO TA L RE SE RV ES
	ati g ne ve	cti tra nsa on	f ha in ng o c es	f ha in ng o c es		res erv es
	f ba lan ce o	ltin ts g cos r esu	fai f lue r a o v	fai f lue r a o v
	ha in ng es c	fro m	ho rise d aut	ho rise d aut
	fai lue f v r a o	hyp he tic l ot a	he dg ing	he dg ing
	inv est nt me	dis l o f p osa inv	ins tru nts me li for	ins tru nts me
	ies ert p rop	est nt me ies ert p rop	fy ing qu a he dg e	t no li fy for ing qu a
			nti ng acc ou	he dg e
			fin de d by as e	nti ng acc ou
			IFR S	de fin d by as e
				IFR S
A T 0 1.0 1.2 01 1	8, 61 2 7 ‐	‐64 8 12 ,	‐6 61 0, 0	0	22 2, 4 3 7	1, 5 5 7	85 ‐4, 9	3 5	6 6, 64 3
f t he lt Ap iat ion p rop r o 20 10 res u	‐14 3, 4 14	‐9 04	‐7, 07 0	‐1, 3 12	23 5, 9 05	5 9 1			83 6 7 9 ,
' e lem d ire ly ise d in ha ho l de ity E ts ct en rec og re n s rs q u	6 ‐2	‐4, 3 7 2	83 21, 2		8, 63 20 1	6 ‐20	83 8 4,		69 23 0, 7
h f low he dg Ca s e			83 21, 2						83 21, 2
fa ir v lue f e im d ion lt ing fro Im act st ate tra act sts p on a o ns co res u m
hy he l d l o f ica isp inv ies ot t est nt ert p os a me p rop		‐4, 3 7 2							‐4, 3 7 2
lt f t he d Re io su o p er
M ino ity int sts r ere
he Ot rs	6 ‐2				8, 63 20 1	6 ‐20	83 8 4,		213 23 7 ,
SU OT B‐T AL	‐17 2, 05 7	‐6 9, 4 04	‐4 5, 29 9	‐1, 3 12	6 6 6, 9 7 3	1, 9 4 2	‐21	3 5	80 85 3 7 ,
f n ha Iss ue o ew s res
/ ls o f o ha Ac is it ion D isp q u s os a wn s res
de ds D iv i n					6, ‐9 4 5 2				6, ‐9 4 5 2
6.2 A T 3 0.0 01 1	17 2, 05 7 ‐	‐69 4 04 ,	‐4 5, 29 9	‐1, 3 12	5 7 0, 5 21	1, 9 4 2	‐21	3 5	84 2 4 05 ,

2.7. Notes on the consolidated accounts

Note 1. General information

Cofinimmo SA/NV (the 'Company') is a public Sicaf immobilière (Société d'Investissement Immobilière à Capital Fixe publique or public real estate investment trust) organised under Belgian law with its registered office at 58 Boulevard de la Woluwedal, 1200 Brussels.

The semi‐annual consolidated financial statements of Cofinimmo SA/NV for the period which ended on 30.06.2011 cover the Company and its subsidiaries (collectively referred to as 'the Group'). The scope of consolidation has been altered since 31.12.2010 (see Note 13).

The semi‐annual consolidated financial statements were drawn up by the Board of Directors on 28.07.2011. The audit firm of Deloitte, represented by Mr Frank Verhaegen, concluded its limited audit and confirmed that the accounting information contained in this half‐yearly report does not call for any reservations and is in compliance with the financial statements adopted by the Board of Directors.

Note 2. Significant accounting methods

The semi‐annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union, and IAS 34 on Interim Financial Reporting.

The accounting methods are identical to those mentioned in the 2010 Annual Report.

Certain figures in this half‐yearly report have been rounded up and, consequently, the overall totals in this report may differ slightly from the exact sum of the preceding figures.

Finally, certain reclassifications can still occur after publication of the results and of the annual and/or half‐yearly reports.

Note 3. Operational and financial risk management

As of 30.06.2011, the Group is facing substantially the same risks as those identified and mentioned in the 2010 Annual Financial Report. Risk management during the first half of 2011 was done using the same means and in accordance with the same criteria as those applied the previous year.

Note4. Segment information (x €1,000) – Global portfolio

I N C O M E S T A T E M E N T	f f O	ice s	ing Nu rs	ho / me s	bs Pu	to ne	Ot	he rs	l loc Un a	d ate	T O T	A L
			l in c	ics					am ou	nt s
A T 6 3 0.0	20 11	20 10 20 11 20 10		20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
l inc Ne t ta r en om e	87 9, 5 1	64 6 3 1 ,	29 5 4 1 ,	6, 2 3 7 5	3 19 14 ,	03 14 1 ,	6 6 1, 7	2, 3 19			10 9 5, 4 7	10 19 7, 4
lt a fte d ire Pr ty ct ty sts op er re su r p ro p er co	84 5 4, 4	8, 5 9 3 2	29 4 9 2 ,	6, 2 4 22	14 13 9 ,	13, 5 4 5	2, 5 7 9	6 2, 24			69 10 0, 4	10 1, 14 5
Pro ert t c ts g p y ma na em en os									‐7, 02 2	83 7, 3 ‐	‐7, 02 2	83 7, 3 ‐
Co ate t c ts g rp or ma na em en os									6 82 ‐3,	85 3, 1 ‐	6 82 ‐3,	85 3, 1 ‐
ins los d isp ls o f inv ies Ga tm t p ert o r se s o n os a es en ro p	6 4, 5 5	4 4 9 ‐	4 22	127	9 1	8 1, 15	123 ‐	3 3 4		‐3 5	6 4, 9 4	1, 13 5
ha in fa ir v lue f inv ies C tm t p ert ng es a o es en ro p	‐20 3 3 0 ,	84 23 4 ‐ ,	6 80 4,	9, 7 25	10 0 ‐	5 3 4 ‐	8 4 1	8 23 ‐	83 5 ‐	1 ‐	‐15 9 15 ,	89 14 2 ‐ ,
he fo l lt Ot io ort p r res u									6 3 5, 21	3 3 7 ‐	6 3 5, 21	3 3 7 ‐
ing lt Op at er re su											63 6 7 4,	6, 82 7 0
ina ia l lt F nc r es u									8, ‐2 7 3 3	8, 8 ‐4 3 0	8, ‐2 7 3 3	8, 8 4 3 0 ‐
Ta xe s									8 87 3 4,	8 3, 4 7 ‐	8 87 3 4,	8 3, 4 7
S N E T R E U L T									80 0 7 9 ,	03 25 4 ,	80 0 7 9 ,	03 25 4 ,
O N E T R E S U L T – G R U P S H A R E									6, 61 7 0	24 7 05 ,	6, 61 7 0	24 7 05 ,

B A L A N C E S H E E T	f f O	ice s	ing ho / Nu rs me s		bs Pu	to ne	Ot	he rs	l loc Un ate a	d ts a mo un	T O	T A L
			l in c	ics
/ A T 6 3 0.0 3 1.1 2	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
As ts se
dw l l Go i o			6, 2 9 29	6, 2 9 29	13 27 7, 4	83 13 0 7,					64 6 1 3 5 ,	64 1 01 2 ,
ies Inv tm t ert es en p ro p	83 6 63 1, 5 ,	83 69 1, 0, 9	1, 03 1, 7 07	8 89 9 10 ,	85 3 9 5, 3	3 9 5, 5 5 7	6, 4 4 04	87 4 4, 4			3, 15 7, 5 9 9	6 3, 04 1, 9 1
f hic h: lop O De roj nt ect w ve me p s	2, 3 4 9	4, 127	8, 8 4 24	61 3 4, 1			69 7, 9	6 8 4, 3			8, 6 5 29	65 6 4 2,
he ld for As set s ow n u se	9, 13 0	8, 8 81									9, 13 0	8, 8 81
he l d fo le As ts se r s a			17 0	17 0							17 0	17 0
he Ot ts a r sse									81 19 4, 0	80 8 17 5,	81 19 4, 0	80 8 17 5,
T O T A L A S S E T S											6, 3, 5 1 9 3 5	81, 6 3, 3 9 0
ha ho l de ' ity d ia b i l it ies S L re rs e q an u
ha ho l de ' ity S re rs e q u									8, 1, 4 9 7 22	6 6, 87 8 1, 4	8, 1, 4 9 7 22	6 6, 87 8 1, 4
ha ho l de ' ity i bu b le S att ta re rs e q u r
ha ho l de f to nt s re rs o p are									87 1, 4 01 9 ,	81 1, 4 5 9, 7	87 1, 4 01 9 ,	81 1, 4 5 9, 7
co an mp y
ino ity int M sts r ere									11, 7 03	7, 09 7	11, 7 03	7, 09 7
ia b i l it ies L									8, 2, 01 213	8 1, 9 15, 02	8, 2, 01 213	8 1, 9 15, 02
' T O T A L S H A R E H O L D E R S E Q U I T Y												6
A N D L I A B I L I T I E S											6, 3, 5 1 9 3 5	81, 3, 3 9 0

Note4. Segment information (x €1,000) – Offices

C O S I N M E T A T E M E N T	Br us	ls se	Br us	ls se	Br us	ls se	An tw	er p	he Ot r	ion Re g s	O T T	A L
	C B	1 D	De nt ce	l ise d ra	ip Pe r	he ry
6 A T 3 0.0	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
l inc Ne t ta r en om e	23 4 21 ,	6 3 1, 24	21, 15 5	65 21, 2	5, 5 7 5	89 5, 4	67 8 5,	2, 214	4, 04 2	4, 10 2	87 5 9, 1	64 6 3 1 ,
lt a fte d ire Pr ty ct ty sts op er re su r p ro p er co	22 23 0 ,	3 0, 09 7	8, 81 1 2	8, 8 1 4 2	6 4, 9 0	81 4, 2	61 5, 1	65 1, 4	6 3, 9 0	3, 9 4 1	84 5 4, 4	8, 5 9 3 2
Pro ert t c ts g p ma na em en os y
Co ate t c ts g rp or ma na em en os
los d ls o f Ga ins isp inv ies tm t p ert o se s o os es en ro p r n a	6 4, 5 5	15 4 ‐				‐7 1				‐22 4	6 4, 5 5	4 4 9 ‐
ha fa lue f C in ir v inv ies tm t p ert ng es a o es en ro p	83 6 ‐10 ,	9, 5 5 9 ‐	3, 9 23 ‐	69 13, 1 ‐	5, 5 4 7 ‐	20 0 ‐	82 6 2, ‐	85 4 ‐	64 2, 9	9 1	‐20 3 3 0 ,	84 ‐23 4 ,
fo Ot he l io lt ort p r res u
ing lt Op at er re su
ina ia l lt F nc r es u
Ta xe s
N E T R E S U L T
N E T R E S U L T – G R O U P S H A R E

B A L A N C E S H E E T	Br us	ls se	ls Br us se		Br us	ls se	An tw	er p	Ot he r	ion Re g s	O T	T A L
	C B	D	De nt ce	l ise d ra	ip Pe r	he ry
/ A T 6 3 0.0 3 1.1 2	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
As ts se
dw i l l Go o
ies Inv tm t ert es en p ro p	6 63 4 3 3 ,	69 64 2, 9	63 2, 3 5 7	63 3, 04 3	81 14 3, 4	14 9, 3 5 0	64 13 2, 0	8 10 7, 10	111 3 9 1 ,	8, 8 10 5 1	6 83 63 1, 5 ,	69 83 1, 0, 9
f hic h: lop roj O De nt ect w ve me p s	1, 4 01	1, 3 7 0	19 2	87 1	3 00	29 1	4 01	6 2, 22	5 5	5 3	2, 3 4 9	4, 127
he ld for As set ow se s n u			9, 13 0	8, 8 81							9, 13 0	8, 8 81
he l d fo le As ts se r s a
he Ot ts a r sse
O S S S T T A L A E T
ha ho l de ' d b l S ity ia i it ies L re rs e q u an
ha ho l de ' ity S re e rs q u
ha ho l de ' bu b le S ity i att ta to re rs e q u r
ha ho l de f nt s re rs o p are co mp an y
ino ity int M sts r ere
b l ia i it ies L
' T O T A L S H A R E H O L D E R S E Q U I T Y A N D
L I A B I L I T I E S

Central BusinessDistrict.

Note4. Segment information (x €1,000) – Nursing homes/clinics

I N C O M E S T A T E M E N T	lg ium Be		Fra nc e		O T T A L
6 A T 3 0.0	20 11	20 10	20 11	20 10	20 11	20 10
l inc Ne t ta r en om e	17, 110	14 7 7 0 ,	12, 4 3 1	83 11, 9	29 5 4 1 ,	6, 2 7 5 3
fte lt a d ire Pr ty ct ty sts op er re su r p ro p er co	6 8 17, 0	14 5 5 5 ,	12, 4 24	8 67 11,	29 4 9 2 ,	6, 2 4 22
Pro ert t c ts g p y ma na em en os
Co ate t c ts g rp or ma na em en os
los d ls o f Ga ins isp inv ies tm t p ert o r se s o n os a es en ro p	4 22	9 9		8 2	4 22	127
ha fa lue f C in ir v inv ies tm t p ert ng es a o es en ro p	8 3, 7 3	9, 7 10	9 4 2	15	6 80 4,	9, 7 25
he fo l lt Ot io ort p r res u
ing lt Op at er re su
l lt ina ia F nc r es u
Ta xe s
S N E T R E U L T
N E T R E S U L T – G R O U P S H A R E

B A L A N C E S H E E T	lg Be	ium	Fra	nc e	O T	T A L
/ A T 6 3 0.0 3 1.1 2	20 11	20 10	20 11	20 10	20 11	20 10
As ts se
dw i l l Go o			6, 2 9 29	6, 2 9 29	6, 2 9 29	6, 2 9 29
Inv ies tm t t es en ro er p p	63 6 8 1, 9	5 5 4, 09 7	3 9 9, 7 3 9	6, 81 3 5 0	1, 03 1, 7 07	8 89 9 10 ,
f hic h: lop O De roj nt ect w ve me p s	8, 8 4 24	61 3 4, 1			8, 8 4 24	61 3 4, 1
he ld for As set s ow n u se
he l d fo le As ts se r s a			17 0	17 0	17 0	17 0
O he t ts a r sse
T O T A L A S S E T S
ha ho l de ' i d ia b i l i ies S L ty t re rs e q an u
ha ho l de ' i S ty re rs e q u
ha ho l de ' bu b le ha ho l de f S i i ty t tr ta to t a ar re rs e q u s re rs o p en
co an mp y
ino ity int M sts r ere
b l ia i i ies L t
' O S R O D R S Q D B S T T A L H A E H L E E U I T Y A N L I A I L I T I E

Note4. Segment information (x €1,000) – Pubstone

I N C O M E S T A T E M E N T	lg ium Be		he lan ds Ne t r		T O T A L
6 A T 3 0.0	20 11	20 10	20 11	20 10	20 11	20 10
l inc Ne t ta r en om e	9, 5 7 3	60 9, 3	6 4, 7 4	67 4, 1	14 3 19 ,	14 03 1 ,
lt a fte d ire Pr ty ct ty sts op er re su r p ro p er co	8 9, 5 2	8 6 9, 0	61 4, 1	4, 4 5 9	14 13 9 ,	13, 5 4 5
Pro ert t c ts g p y ma na em en os
Co ate t c ts g rp or ma na em en os
los d ls o f Ga ins isp inv ies tm t p ert o r se s o n os a es en ro p	9 1	8 1, 15			9 1	8 1, 15
ha fa lue f C in ir v inv ies tm t p ert ng es o es en ro a p	6 3 9	1 7	6 9 4 ‐	60 5 ‐	‐10 0	3 5 4 ‐
he fo l lt Ot io ort p r res u
lt Op ing at er re su
ina ia l lt F nc r es u
Ta xe s
N E T R E S U L T
N E T R E S U L T – G R O U P S H A R E

B A L A N C E S H E E T	lg Be	ium	he Ne t	lan ds r	T O	T A L
/ A T 6 3 0.0 3 1.1 2	20 11	20 10	20 11	20 10	20 11	20 10
As ts se
dw i l l Go o	8, 9 17 7	83 9 7, 3	3 9, 25 0	3 9, 25 0	13 7, 4 27	83 13 7, 0
ies Inv tm t ert es en p ro p	25 0, 5 07	24 9, 9 5 4	6 14 5, 3 4	60 14 5, 3	85 3 9 5, 3	3 9 5, 5 5 7
f hic h: lop O De roj nt ect w ve me p s
he ld for As set s ow n u se
he l d fo le As ts se r s a
he Ot ts a r sse
T O T A L A S S E T S
ha ho l de ' ity d ia b i l it ies S L re rs e q u an
ha ho l de ' S ity re rs e q u
ha ho l de ' bu b le ha ho l de f S ity i att ta to nt re rs e q u r s re rs o p are
co mp an y
M ino ity int sts r ere
ia b i l it ies L
' T O T A L S H A R E H O L D E R S E Q U I T Y A N D L I A B I L I T I E S

Note4. Segment information (x €1,000) – Others

I N C O M E S T A T E M E N T	Br us	ls se	ls Br us se		ls Br us se		An tw er p		he ion Ot Re g r s		T O T A L
	C B	D	l d ise De nt ce ra		ip Pe r	he ry
A T 6 3 0.0	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
l inc Ne t ta r en om e			67 1, 0	1, 04 0	65 4	8 4 4		82 8	23 4	3	6 6 1, 7	2, 3 19
lt a fte d ire Pr ty ct ty sts op er re su r p ro p er co			64 1, 0	1, 02 7	63 4	4 3 9		82 2	1, 05 2	4 2 ‐	2, 5 7 9	6 2, 24
Pro ert t c ts g em en os p y ma na
Co ate t c ts g rp or ma na em en os
los d ls o f Ga ins isp inv ies tm t p ert o r se s o n os a es en ro p						80 2 ‐		61 4	123 ‐		‐12 3	3 3 4
fa f C ha in ir v lue inv ies tm t p ert ng es a o es en ro p			64 5	4 05 ‐	6 14 ‐	8 12				3 9	8 4 1	8 23 ‐
fo he l io lt Ot ort p r res u
ing lt Op at er re su
ina ia l lt F nc r es u
Ta xe s
N E T R E S U L T
N E T R E S U L T – G R O U P S H A R E

B A L A N C E S H E E T	Br us	ls se	ls Br us se		Br us	ls se	An tw	er p	he Ot r	ion Re g s	T O	T A L
	C	B D	De nt ce	l d ise ra	Pe ip r	he ry
/ A T 6 3 0.0 3 1.1 2	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10	20 11	20 10
As ts se
dw l l Go i o
Inv ies tm t ert es en p ro p			3 5, 120	3 2, 20 9	10 20 3 ,	10 3 4 9 ,	6 13	13 5	9 4 5	1, 7 9 4	6, 4 4 04	87 4 4, 4
f hic h: lop roj O De nt ect w ve me p s			81 8 4,	62 2, 4	6 1, 9 0	6 1, 9 0			9 4 5		6 69 7,	8 6 3 4,
he ld for As set s ow n u se
fo he l d le As ts se r s a
he Ot ts a r sse
T O T A L A S S E T S
ha ho l de ' ity d ia b i l it ies S L re rs e q an u
ha ho l de ' ity S re rs e q u
ha ho l de ' bu b le ha ho l de f S ity i att ta to nt re rs e q u r s re rs o p are
co an mp y
ino ity int M sts r ere
ia b i l it ies L
' T O T A L S H A R E H O L D E R S E Q U I T Y A N D L I A B I L I T I E S

Note 5. Rental income and rental‐related expenses (x €1,000)

	30.06.2011	30.06.2010
Rental income
Gross potential income	102,569	106,834
Vacancy	‐6,643	‐5,878
Rents1	95,926	100,956
Cost of rent free periods	‐440	‐2,185
Concessions granted to tenants	‐916	‐583
Indemnities for early termination of rental contracts	293	539
SUB‐TOTAL	94,863	98,727
Writeback of lease payments sold and discounted	10,468	8,749
Rental‐related expenses
Rent payable on rented premises	‐42	‐31
Writedowns on trade receivables	‐198	‐217
Writeback of writedowns on trade receivables	406	191
SUB‐TOTAL	166	‐57
TOTAL	105,497	107,419

The classification method and treatment of rental income and charges are detailed in the 2010 Annual Financial Report, on page 140.

¹ Including revenue guaranteed by developers in lieu of rent.

Note 6. Financial income (x €1,000)

	30.06.2011	30.06.2010
Interests and dividends received	1,251	995
Interest receipts in respect of finance lease receivables	1,488	1,463
Net realised gains on disposals of finance lease and similar receivables		1,259
Other financial income	33	40
TOTAL	2,772	3,757

Note 7. Net interest charges (x €1,000)

	30.06.2011	30.06.2010
Nominal interest on loans with amortised cost	‐14,857	‐9,786
Bilateral loans – floating rate	‐7,067	‐4,851
Syndicated loans – floating rate	‐2,010	‐1,997
Treasury bills – floating rate	‐1,027	‐639
Investment credits – floating or fixed rate	‐365	‐65
Debenture loan – fixed rate	‐4,388	‐2,234
Charges relating to authorised hedging instruments	‐13,851	‐20,559
Authorised hedging instruments qualifying for hedge accounting	‐11,669	‐16,415
Authorised hedging instruments not qualifying for hedge accounting	‐2,182	‐4,144
Income relating to authorised hedging instruments
Authorised hedging instruments qualifying for hedge accounting
Other interest charges	‐1,660	‐1,463
TOTAL	‐30,368	‐31,808

Note 8. Other financial charges (x €1,000)

	30.06.2011	30.06.2010
Bank costs and other commissions	‐115	‐464
Net realised losses on disposals of financial assets	‐3	‐3
Others	‐74	‐3,366
Restructuring costs of authorised hedging instruments		‐3,274
Others	‐74	‐92
TOTAL	‐192	‐3,833

Note 9. Changes in fair value of financial assets and liabilities (x €1,000)

	30.06.2011	30.06.2010
Authorised hedging instruments qualifying for hedge accounting	‐4,385	‐6,831
Authorised hedging instruments not qualifying for hedge accounting	2,744	‐9,593
Others (convertible bond)	696
TOTAL	‐945	‐16,424

Note 10. Investment properties (x €1,000)

	30.06.2011	31.12.2010
Properties available for lease	3,090,173	2,990,379
Development projects	58,296	42,656
Assets held for own use	9,130	8,881
TOTAL	3,157,599	3,041,916

Properties available for lease (x €1,000)

	30.06.2011	31.12.2010
AT 01.01	2,990,379	2,975,276
Capital expenditures	4,542	19,281
Acquisitions	133,8841	47,181
Transfers from/to Assets held for sale
Transfers from/to Development projects	‐53	44,734
Sales/Disposals (fair value of assets sold/disposed of)	‐35,122	‐90,986
Writeback of lease payments sold and discounted	10,468	21,108
Increase/Decrease in fair value	‐14,173	‐26,239
Others	248	24
AT 30.06/31.12	3,090,173	2,990,379

Development projects (x €1,000)

	30.06.2011	31.12.2010
AT 01.01	42,656	56,031
Capital expenditures	14,078	32,082
Acquisitions	2,917	697
Transfer from/to Properties available for lease	53	‐44,734
Sales/Disposals (fair value of assets sold/disposed of)		‐876
Writeback of lease payments sold and discounted
Increase/Decrease in fair value	‐1,408	‐544
AT 30.06/31.12	58,296	42,656

Assets held for own use (x €1,000)

	30.06.2011	31.12.2010
AT 01.01	8,881	9,429
Increase/Decrease in fair value	249	‐548
AT 30.06/31.12	9,130	8,881

¹ The main acquisitions of the period concern the properties held by the Group Dexia Immorent SA for an amount of €45.8 million, the 6 healthcare facilities acquired in France for a total amount of €42.0 million and the 2 office properties held by the company AMCA. For more details, reference is made to page 7 of this Report. The amounts indicated in this table are expressed in fair value.

Note11. Share capital and share premium

	Or d ina ry	ha s re s	Co nv er	b le i t	O T T	A L
			fe ha p re re nc e s re s
( ) in be nu m r	6.2 3 0.0 01 1	3 2.2 01 0 1.1	6.2 3 0.0 01 1	3 2.2 01 0 1.1	6.2 3 0.0 01 1	3 2.2 01 0 1.1
( ) be f s ha Nu A m o r re s
A T 0 1.0 1	6 67 13, 09 2 ,	12, 7 05 07 0 ,	1, 24 9, 3 10	6, 69 1, 3 2 3	6, 14 9 1 4 02 ,	63 14 03 1, 7 ,
d bu k d Iss ins i ion in in t c tr t g ue on a a	6 3 3 0, 24	113 5 7 7 ,			6 3 3 0, 24	113 5 7 7 ,
d bs d Iss in Gr i iar ies to rg ue me er s ou p su		62 7 7 1, 0				62 7 7 1, 0
f p fe ha d ha Co ion in ina to nv er s o re re nc e s re s or ry s re s	7 09	83 7 7, 3	7 09 ‐	83 7 7, 3 ‐
/ 6 A T 3 0.0 3 1.1 2	8, 13, 9 9 04 7	6 67 13, 09 2 ,	8, 60 1, 24 1	1, 24 9, 3 10	6, 64 8 15, 24	6, 14 9 1 4 02 ,
( ) ha he l by he Ow d t Gr B s n re s ou p
A T 0 1.0 1	60 5 2, 7	22 3 7 4 ,			60 5 2, 7	22 3 7 4 ,
d in bs i d iar ies Iss Gr to rg ue me er s ou p su		62 1, 0 7 7				62 1, 0 7 7
/ ha l d ha d – Ow t s n re s s o p ur c se ne		82 0, 9 7 4 ‐				82 0, 9 7 4 ‐
/ A T 6 3 0.0 3 1.1 2	60 5 2, 7	60 5 2, 7			60 5 2, 7	60 5 2, 7
( ) ha d ing S A‐ B ts ta re o s u n
A T 0 1.0 1	61 85 13, 4, 4	6 82 69 6 12, ,	1, 24 9, 3 10	6, 69 1, 3 2 3	8 63 14 7 9 5 , ,	89 14 00 9, 3 ,
/ A T 6 3 0.0 3 1.1 2	13, 9 4 5, 4 4 0	61 85 13, 4, 4	8, 60 1, 24 1	1, 24 9, 3 10	15, 19 4, 04 1	8 63 14 7 9 5 , ,

	d Or ina ry	ha s re s	Co nv	b le i t er	O T T	A L
		fe ha p re re nc e s re s
( ) x € 1, 00 0	6.2 3 0.0 01 1	3 1.1 2.2 01 0	6.2 3 0.0 01 1	3 1.1 2.2 01 0	6.2 3 0.0 01 1	3 1.1 2.2 01 0
i l Ca ta p
A T 0 1.0 1	7 29 9 09 ,	67 9, 9 7 0	6 6, 61 9	7 0, 7 4 5	8 6, 7 9 5 2	7 5 0, 7 15
d bu k d Iss ins i ion in in t c tr t g ue on a a	69 8 17,	6, 09 0			69 8 17,	6, 09 0
ha l d / ha d – Ow t s n re s s o p ur c se ne		3 9, 7 23				3 9, 7 23
f p fe ha d ha Co ion in ina to nv er s o re re nc e s re s or ry s re s	8 3	6 4, 12	8 3 ‐	6 4, 12 ‐
/ 6 A T 3 0.0 3 1.1 2	64 7 4 7, 5	7 29 9 09 ,	6 6, 81 5	6 6, 61 9	81 6 4, 22	6, 8 7 9 5 2
ha S ium t re p re m ac co un
A T 0 1.0 1	4 4 7, 215	82 4 09 5 ,	65 87 8 ,	69 9 5 9 ,	5 13, 09 3	4 7 9, 5 4 1
d ins i bu ion in k in d Iss t c tr t g ue a a on	13, 3 21	9 2 4, 4			13, 3 21	9 2 4, 4
/ ha l d ha d – Ow t s n re s s o p ur c se ne		8, 61 2 0				8, 61 2 0
las i f ica ion ds d is i bu b le Re t to tr ta c s wa r re se rve s	87 214 0 ‐ ,				87 ‐21 4, 0
f p fe ha d ha Co ion in ina to er o re re e s re or re nv s nc s ry s s	3 7	81 4, 0	3 7 ‐	81 4, 0 ‐
/ A T 6 3 0.0 3 1.1 2	6, 8 6 24 4	4 4 7, 215	65 84 1 ,	65 87 8 ,	3 12, 3 27	5 13, 09 3

Note 12. Result per share

	30.06.2011	30.06.2010
Result attributable to ordinary and preference shares (x €1,000)
Net current result attributable to ordinary and preference shares	56,113	38,888
Net current result for the period	56,543	39,128
Minority interests	‐430	‐240
Result on portfolio attributable to ordinary and preference shares	19,948	‐14,183
Result on portfolio for the period	24,247	‐14,094
Minority interests	‐4,299	‐89
Net result attributable to ordinary and preference shares	76,061	24,705
Net result for the period	80,790	25,034
Minority interests	‐4,729	‐329

Result per share (in €)
Number of ordinary and preference shares entitled to share in the result of the period	15,194,041	14,022,718
Net current result per share – Group share	3.69	2.77
Result on portfolio per share – Group share	1.32	‐1.01
Net result per share – Group share	5.01	1.76

Note 13. Consolidation scope and criteria

Scope of consolidation

ADMINISTRATIEF EN MARITIEM CENTRUM ANTWERPEN SA BE 435 522 377 100.00 Boulevard de la Woluwedal 58, 1200 Brussels BELLIARD I‐II PROPERTIES SA BE 832 136 571 100.00 Boulevard de la Woluwedal 58, 1200 Brussels BELLIARD III‐IV PROPERTIES SA BE 475 162 121 100.00 Boulevard de la Woluwedal 58, 1200 Brussels BOLIVAR PROPERTIES SA BE 878 423 981 100.00 Boulevard de la Woluwedal 58, 1200 Brussels COFINIMMO FRANCE SA FR 88 487 542 169 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SAS IS II FR 74 393 097 209 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI AC NAPOLI FR 71 428 295 695 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI BEAULIEU FR 50 444 644 553 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI CHAMTOU FR 11 347 555 203 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI CUXAC II FR 18 343 262 341 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI DE L'ORBIEU FR 14 383 174 380 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SA DOMAINE DE VONTES FR 67 654 800 135 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI DU DONJON FR 06 377 815 386 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SNC DU HAUT CLUZEAU FR 39 319 119 921 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SARL HYPOCRATE DE LA SALETTE not subject to VAT 100.00 Avenue de l'Opéra 27, 75001 Paris (France) NN 388 117 988 SCI LA NOUVELLE PINEDE FR 78 331 386 748 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI PRIVATEL INVESTISSEMENT FR 13 333 264 323 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI RESIDENCE FRONTENAC FR 80 348 939 901 100.00 Avenue de l'Opéra 27, 75001 Paris (France) SCI SOCIBLANC not subject to VAT 100.00 Avenue de l'Opéra 27, 75001 Paris (France) NN 328 781 844 COFINIMMO LUXEMBOURG SA not subject to VAT Boulevard Grande‐Duchesse Charlotte 65, 100.00 NN 100 044 1331 Luxembourg (Luxembourg) COFINIMMO SERVICES SA 100.00 BE 437 018 652 Boulevard de la Woluwedal 58, 1200 Brussels DE ABDIJ SPRL 100.00 BE 825 439 217 Boulevard de la Woluwedal 58, 1200 Brussels DEXIA IMMORENT SA 100.00 BE 893 787 296 Boulevard de la Woluwedal 58, 1200 Brussels BETHANIE SA BE 454 855 764 100.00 Boulevard de la Woluwedal 58, 1200 Brussels DEWA INVEST SA BE 443 353 445 100.00 Boulevard de la Woluwedal 58, 1200 Brussels LE PROGRES SPRL BE 458 308 469 100.00 Boulevard de la Woluwedal 58, 1200 Brussels PALOKE SA BE 452 486 093 100.00 Boulevard de la Woluwedal 58, 1200 Brussels RESIDENTIE DE NOOTELAER SPRL BE 436 580 568 100.00 Boulevard de la Woluwedal 58, 1200 Brussels	Name and address of registered office Fully consolidated enterprises	VAT or company number	Direct and indirect shareholdings and voting rights (in %)

EGMONT PROPERTIES SA
Boulevard de la Woluwedal 58, 1200 Brussels	BE 891 801 042	100.00
EPRIS SA
Boulevard de la Woluwedal 58, 1200 Brussels	BE 458 706 961	100.00
GALAXY PROPERTIES SA
Boulevard de la Woluwedal 58, 1200 Brussels	BE 872 615 562	100.00
GERIGROEP SA
Boulevard de la Woluwedal 58, 1200 Brussels	BE 451 720 981	90.00
HEMERA SA		100.00
Boulevard de la Woluwedal 58, 1200 Brussels	BE 474 356 823
LEOPOLD BASEMENT SA	BE 861 977 038	100.00
Boulevard de la Woluwedal 58, 1200 Brussels
LEOPOLD SQUARE SA	BE 465 387 588	100.00
Boulevard de la Woluwedal 58, 1200 Brussels
MAISON SAINT IGNACE SA	BE 452 711 074	100.00
Boulevard de la Woluwedal 58, 1200 Brussels
PRINSENPARK SA	BE 465 645 233	100.00
Boulevard de la Woluwedal 58, 1200 Brussels
PUBSTONE GROUP SA		89.90
Boulevard de la Woluwedal 58, 1200 Brussels	BE 878 010 643
PUBSTONE SA
Boulevard de la Woluwedal 58, 1200 Brussels	BE 405 819 096	89.66
PUBSTONE HOLDING BV	not subject to VAT	89.661
Prins Bernhardplein 200, 1097 JB Amsterdam (Netherlands)	NN 8185 89 723
PUBSTONE PROPERTIES I BV	NL 00.11.66.347.B.01	89.661
Prins Bernhardplein 200, 1097 JB Amsterdam (Netherlands)
PUBSTONE PROPERTIES II BV	NL 00.26.20.005.B.01	89.661
Prins Bernhardplein 200, 1097 JB Amsterdam (Netherlands)
SAINT CHARLES CHATEAU DES MOINES	BE 455 736 583	90.00
Boulevard de la Woluwedal 58, 1200 Brussels
VERT BUISSON SA	BE 466 624 834	90.00
Boulevard de la Woluwedal 58, 1200 Brussels

Consolidation criteria

The consolidation criteria indicated in the 2010 Annual Financial Report have not been changed and are still applied by the Cofinimmo Group.

Note 14. Transactions between related parties

During the first 6 months of the year, no transactions between related parties, within the meaning of the Royal Decree of 14.11.2007, took place.

¹ Economic interest.

3. Statement of Conformity (pursuant to Article 13 of the Royal Decree of 14.11.2007)

Mr André Bergen, in his capacity as Chairman of the Board of Directors,

Messrs Jean‐Edouard Carbonnelle, Xavier Denis, Xavier de Walque, Vincent Doumier, Serge Fautré, Robert Franssen, Gaëtan Hannecart, Alain Schockert, Gilbert van Marcke de Lummen, Baudouin Velge and Mrs Françoise Roels, in their capacity as Directors,

declare that to the best of their knowledge

• a. the interim management report contains a true and fair statement of the important events and, as the case may be, major transactions between related parties which occurred during the first 6 months of the year and the effect thereof on the financial statements;
• b. the financial statements, prepared in accordance with the applicable accounting standards, have been submitted to the statutory auditor for a limited review and give a true and fair view of the portfolio, financial situation and results of Cofinimmo and its subsidiaries included in the scope of consolidation; the interim management report provides moreover a perspective for the full year result as well as comments on the risks and uncertainties facing the company.

For more information: Ingrid Schabon Stéphanie Lempereur Corporate Communications Manager Business Analyst ‐ Consolidation Tel.: +32 2 777 08 77 Tel.: +32 2 777 08 08 ischabon@cofinimmo.be slempereur@cofinimmo.be

About Cofinimmo

Cofinimmo is the premier listed Belgian real estate company specialising in rental property. The company's property portfolio is valued at over €3 billion and represents a total surface area of 1,800,000m². Its main investment segments are offices and care facilities. Cofinimmo is an independent company which manages its properties in‐house. It is listed on Euronext Brussels (BEL20) and is recognised for tax purposes as a Sicafi in Belgium and a SIIC in France. As of 30.06.2011, its total market capitalisation was €1.5 billion.

www.cofinimmo.com

This Half‐yearly Financial Report contains regulated information.

This report is a translation from the French. Only the French version is officially valid. This English translation was prepared under the responsibility of Cofinimmo.

Appendices

1. Real estate expert's report

Brussels, 29 July 2011

To the Board of Cofinimmo n.v./s.a.

Re: Valuation as of 30 June 2011

Context

We have been engaged by Cofinimmo to value its real estate assets as of 30 June 2011 with a view to finalising its financial statements at that date.

DTZ Winssinger et Associés (DTZ) and the audit firm PricewaterhouseCoopers Entreprise Advisory cvba/scrl (PwC) have each separately valued approximately half the portfolio of offices and other1 properties.

DTZ Winssinger and PwC have each separately valued part of the portfolio of rest homes in Belgium.

DTZ Eurexi and Jones Lang LaSalle France have each separately valued part of the portfolio of rest homes in France.

The portfolios of cafés in Belgium and the Netherlands have been valued by DTZ Winssinger and DTZ Zadelhof, respectively.

DTZ and PwC have in-depth knowledge of the real estate markets on which Cofinimmo is active and have the necessary, recognised professional qualifications to perform this assessment. In conducting this assessment, we have acted with complete independence.

As is customary, our assignment has been carried out on the basis of information provided by Cofinimmo regarding tenancy schedules, charges and taxes borne by the landlord, works to be carried out and all other factors that could affect property values. We assume that the information provided is complete and accurate.

Our valuation reports do not in any way constitute an assessment of the structural or technical quality of the buildings or an in-depth analysis of their energy efficiency or of the potential presence of harmful substances. This information is well known to Cofinimmo, which manages its properties in a professional way and performs technical and legal due diligence before acquiring each property.

Opinion

We confirm that our valuation has been done in accordance with national and international standards (International Valuation Standards issued by the International Valuation Standards Council, the Red Book of the Royal Institute of Chartered Surveyors, 7th edition) and their application procedures, in particular for the assessment of real estate investment funds (sicafis/bevaks).

The Investment Value is defined as the amount most likely to be obtained at normal conditions of sale between willing and well-informed parties, after the deduction of transactions costs.

¹ Other properties: semi-industrial, retail, leisure and residential.

The Investment Value does not reflect the costs of future investments that could improve the property or the benefits associated with such costs.

The Investment Value is based on the discounted value of the net future rental income of each property, less the maintenance costs for which the owner is liable.

The discount rate depends primarily on the discount rates prevailing on the property investment market, having regard to the location and quality of the buildings and the tenants on the valuation date.

Future rent is estimated on the basis of existing contract rent and property market forecasts specific to each property for subsequent periods.

In theory, property sales attract a transfer duty charged by the State. For properties situated in Belgium, the amount of this duty mainly depends on the mode of transfer, the capacity in which the purchaser acts and the property's location. The first two variables, and therefore the amount of duty payable, are only known once the sale is contracted. Based on the study of the independent real estate experts dated 8 February 2006, the average transaction cost is assessed at 2.5%.

The probable fair value (as defined under IAS/IFRS) for properties over EUR 2,500,000 under deduction of duties can therefore be obtained by deducting 2.5% of duty from their investment value. This 2.5% figure will be reviewed periodically and adjusted where the variance on the institutional market exceeds +/- 0.5%. For properties under EUR 2,500,000, the registration duties have been deducted.

For properties with an investment value under € 2,500,000 registration duties of 10% or 12.5% should be subtracted, depending on the region of Belgium where they are situated.

The registration duties on properties in France and the Netherlands have been deducted in full.

Investment value and sale value (fair value)

Taking into account the two opinions, the investment value of the Cofinimmo's real estate as of 30 June 2011 stands at EUR 3,273,592,000.

Taking into account the two opinions, the likely sale value (subject to the deduction of transaction costs) of Cofinimmo's real estate portfolio as of 30 June 2011, corresponding to the fair market value under IAS/IFRS, stands at EUR 3,157,599,000.

On this basis, the yield on rent, received or contracted, including from assets that form the object of an assignment of receivables, but excluding projects, land and buildings undergoing refurbishment, and after the application of imputed rent to the premises occupied by Cofinimmo, amounts to 6.65% of the investment value.

If the properties were to be let in full, the yield would increase to 6.99%.

Investment properties have an occupancy rate of 95.20%.

The average level of contract rent (excluding projects, buildings undergoing refurbishment and assets that form the object of an assignment of receivables) is 3.98% above the estimated fair rental value for the portfolio at this date.

The assets are broken down as follows:

	Investment value	Fair value	% Fair value
Nursing homes/clinics	1,068,208,000	1,031,707,000	32.7%
Offices	1,726,695,000	1,684,580,000	53.4%
Others	46,595,000	45,458,000	1.4%
Pubstone	432,095,000	395,853,000	12.5%
Total	3,273,592,000	3,157,599,000	100.0%

PwC opinion

The investment value of the part of Cofinimmo's real estate portfolio valued by PwC is estimated as of 30 June 2011 at EUR 810,521,000 and the likely sale value (subject to the deduction of transaction costs) at EUR 790,752,000, corresponding to the fair market value under IAS/IFRS.

Jean-Paul DUCARME MRICS Ann SMOLDERS

Consultant to PwC For PwC, represented by special proxy Partner

DTZ Opinion

The investment value of the part of Cofinimmo's real estate portfolio valued by DTZ and by Jones Lang Lasalle is estimated as of 30 June 2011 at EUR 2.463.071.000 EUR and the likely sale value (subject to the deduction of transaction costs) at 2,366,847,000 EUR, corresponding to the fair market value under IAS/IFRS.

Fabian DAUBECHIES MRICS Benoit FORGEUR DTZ, Head of Valuation - Director DTZ, Managing Director

PRICEWATERHOUSECOOPERS Entreprise Advisory WINSSINGER & ASSOCIES

Woluwe Garden, Woluwedal 18 Chaussée de La Hulpe 166 1932 Sint-Stevens-Woluwe - Belgium 1170 Brussels - Belgium Tel: +32 (0)2 629 02 90/91 Tel: +32 (0) 710 42 11 Fax: +32 (0) 710 42 99 Fax: +32 (0)2 648 79 89 www.pwc.com www.dtz.com

Limited cooperative Public limited liability company Surveyors – Valuers

2. Statutory auditor's report

Free translation from the French

Cofinimmo SA/NV

Limited review report on the consolidated half-year financial information for the six-month period ended 30 June 2011

To the board of directors

We have performed a limited review of the accompanying consolidated condensed balance sheet, condensed statement of comprehensive income, condensed cash flow statement, condensed statement of changes in equity and selective notes 1 to 14 (jointly the "interim financial information") of Cofinimmo SA/NV ("the company") and its subsidiaries (jointly "the group") for the six-month period ended 30 June 2011. The board of directors of the company is responsible for the preparation and fair presentation of this interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.

The interim financial information has been prepared in accordance with International Financial Reporting Standards as executed by the Royal Decree of 7 December 2010 with respect to public real estate investment trusts and in accordance with IAS 34, "Interim Financial Reporting" as adopted by the EU.

Our limited review of the interim financial information was conducted in accordance with the recommended auditing standards on limited reviews applicable in Belgium, as issued by the "Institut des Réviseurs d'Entreprises/Instituut van de Bedrijfsrevisoren". A limited review consists of making inquiries of group management and applying analytical and other review procedures to the interim financial information and underlying financial data. A limited review is substantially less in scope than an audit performed in accordance with the auditing standards on consolidated annual accounts as issued by the "Institut des Réviseurs d'Entreprises/Instituut van de Bedrijfsrevisoren". Accordingly, we do not express an audit opinion.

The interim financial information of several entities included in the scope of consolidation which represent total assets of EUR 326.384 (000) and a total profit of EUR 7.582 (000) have been subject to a limited review by other auditors. Our conclusion on the accompanying interim financial information, insofar as it relates to the amounts contributed by those entities; is based solely upon the reports of those other auditors.

Based on our limited review and based, to the extent necessary upon the reports of other auditors, nothing has come to our attention that causes us to believe that the interim financial information for the six-month period ended 30 June 2011 is not prepared, in all material respects, in accordance with International Financial Reporting Standards as executed by the Royal Decree of 7 December 2010 with respect to public real estate investment trusts and in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU.

Diegem, 29 July 2011

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