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Home Invest Belgium NV

Interim / Quarterly Report Aug 30, 2013

3958_ir_2013-08-30_efd0e962-fb41-4c56-a878-4471741644fd.pdf

Interim / Quarterly Report

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Under embargo until 30 August 2013, 5.40 pm

Regulated information

Housing life

DEVELOPMENT PROJECT IN PROGRESS Pépinière-Brederode - 1000 Brussels

PROFILE

Home Invest Belgium is a residential Sicafi , created in June 1999 and listed on the NYSE Euronext Brussels stock exchange.

Its property portfolio is spread over town centers in Belgium (63.3% of which in Brussels, 24.2% in the Walloon region and 12.5% in the Flemish region).

On 30 June 2013, its operating portfolio consisted of 75 buildings on 44 sites, with a total surface area of +/- 149 000 m² and a fair value of +/- € 279 million, excluding development projects and properties held for sale.

Its activities are controlled by the Financial Services and Markets Authority (FSMA).

On 30 June 2013, the total market capitalization of Home Invest Belgium amounted to € 229 million.

Established 14 years ago, Home Invest Belgium develops a coherent strategy, aiming at the creation of value and the increase of dividend, for the benefi t of all shareholders, while contributing to one of the basic rights and needs of the population: the right to decent housing (art. 23 of the Constitution).

Home Invest Belgium covers the 4 areas of the real-estate life cycle:

  • Acquisition
  • Development
  • Administrative, commercial and technical management
  • Sales

CONTENTS

  • 4 Interim management report
  • 10 Home Invest Belgium on the stock exchange
  • 13 Property report
  • 17 Abridged consolidated fi nancial statements
  • 28 Report of the Auditor
  • 29 Statement of the responsible persons

The Board of Directors of Home Invest Belgium gathered on 26 August 2013 in order to draw up the report on the consolidated half yearly fi nancial statements of Home Invest Belgium, ended on 30 June 2013.

HIGHLIGHTS

Distributable result per share progresses by 21%1

Growth in fair value of the property portfolio by 17.9%2

Consolidated rental income progresses by 14.4%2

Stable average occupancy rate of 94.8%3

Inclusion of the Home Invest Belgium share in the BEL Mid index

Net asset value per share reaches € 58.744

Debt ratio of 39.6%

4 As compared to € 56.53 on 31 March 2013 and € 56.87 on 30 June 2012. These are figures calculated after the elimination of 12 912 treasury shares (IAS 33, paragraph 20).

1 Distributable result on consolidated basis. For the same period, the increase of the distributable result calculated on a statutory basis as stipulated by the RD of 7 December, 2010, amounts up to 21%.

2 Compared to the situation on 30 June 2012, excluding properties held for sale and development projects that amounted up to € 12 876 279 on 30 June 2012 and to € 0 on 30 June 2013.

3 The occupancy rate expresses the percentage of rents generated by the occupied properties, including the rental guarantees on the unoccupied properties, in comparison to the total rents of the occupied properties and the estimated rental value of the unoccupied properties. The calculation takes no properties held for sale into account, nor development projects.

INTERIM MANAGEMENT REPORT

1 Activities and highlights of the first half year XEVOLUTION OF THE PROPERTY PORTFOLIO

Acquisition

The most signifi cant event of the fi rst half year is without any doubt the acquisition of the property rights by Home Investment Belgium of three buildings ('CV10', 'CV18' and a portion1 of 'CV9'), located in the heart of Louvain-la-Neuve, by authentic purchase deed on January 25, 2013.

As a reminder, this transaction relates to +/- 23 000 m² of rental space, of which 40% is intended for housing, 36% for commercial purposes, and the remainder for offi ces and auditoria. The transaction has the particular feature of transferring a leasehold on the related plots, granted by the UCL for a term of 50 years expiring in 2026, and the sale of the buildings built on these plots based on the leasehold. In 2026, UCL will become the owner of the buildings, with the obligation:

  • either to pay the market value on the buildings;
  • or to grant a 49 year long lease after which the UCL becomes full owner of the constructions free of charge.

The results of this major investment are visible for the fi rst time in the accounts of the fi rst half year 2013, and refl ect notably in the signifi cant increase of the rental income of the Sicafi (+14.4%) and of the fair value of its property portfolio (+17.9%), which infl uences the increase of the debt ratio of the company (going from 30.9% on 31 December 2012 to 39.6% on 30 June 2013 – cfr infra).

LOUVAIN-LA-NEUVE

1 The building 'CV9' is part of a co-ownership. Home Invest Belgium has acquired ownership of 447.75/1 000ths of the common parts, in addition to the private parts concerned, including the leasehold.

Development

    1. The provisional acceptance of the 6 apartments located at 1000 Brussels, Rue Belliard 21, took place on 18 February 2013 and made an end to the renovation of an old mansion by the group Nexity IG on behalf of Home Invest Belgium.
    1. In relation to the development projects for its own account:
  • The study on the conversion from offi ce space into residential units of the building Marcel Thiry1 , located at Woluwe-Saint-Lambert, has been completed and has resulted in the fi ling of a building permit demand which is currently under investigation.
  • The study of the conversion of the offi ce building Montoyer 25 in 1000 Brussels into residential units, was initiated as well.

As a reminder, on 10 April 2013, the Greek Fund ('Hellenic Republic Asset Development Fund') charged with the sale of this building, retained Home Invest Belgium as 'Preferred Bidder'. The condition precedent submitting the sale to the approval of the offer made by Home Invest Belgium to the Court of Auditors, was fulfi lled during the course of the concerned half year, so that the execution of the deed may be expected during the next half year. The building on rue Montoyer 25 is located in the heart of the quartier Léopold in Brussels and comprises of +/- 2 900 m² of offi ce space; its location is excellent, in immediate vicinity to the Place du Luxembourg.

  • the acquisition of the real estate project Pépinière-Brederode in 1000 Brussels can now be considered as fi nal (cfr infra – the transfer of ownership took place on 8 July) and hence the company has initiated for its own account the development project which consists of 14 luxury apartments and 2 offi ces, as well as 15 parking lots. Home Invest Belgium acquired hereto 3 houses to be demolished, located at an exceptional location; behind the Royal Palace, just before the Place du Trône.

DEVELOPMENT PROJECT IN PROGRESS PÉPINIÈRE-BREDERODE (BRUSSELS)

1 For futher details, see press release on 27 August 2012.

Administrative, commercial, and technical management

As announced, the company has gradually insourced the technical management of the majority of its buildings situated in the Brussels-Capital region while leaving the management of other properties in the hands of carefully selected external managers and syndics. During this half year, except for the extension of the existing team (cfr infra), new management and follow up procedures have been implemented in order to initiate this new aspect in the administrative, commercial, technical and fi nancial management of the portfolio of the company.

Sales

In the fi rst half year Home Invest Belgium proceeded with its program of lot per lot sales of various assets.

The various sales during the fi rst half year have allowed a net realized capital gain of € 1.8 million, in respect of the last fair value of the sold properties.

This selective arbitrage of buildings held for sale contributes signifi cantly and on a regular basis to the increase of the profi tability of the investments, through the substantial realized gains which reinforce the distributable result to the shareholders for the period concerned.

LEBEAU (BRUSSELS) LEBEAU (BRUSSELS)

XSTRENGTHENING OF THE FINANCIAL STRUCTURE

During the fi rst half year of 2013, Home Invest Belgium increased its funding sources and extended the average maturity of its credit lines and interest rate hedges.

Thereby, the company contracted two new credit lines of respectively € 25 million from Belfi us bank with maturity expiring on January 31, 2019 and € 10 million from Degroof bank with maturity expiring on April 18, 2018.

Thanks to these agreements and as indicated by the table below,

  • the average weighted maturity of the credit lines has been extended to 3 years and 2 months on June 30, 2013, compared to 2 years and 10 months on December 31, 2012;
  • the average maturity of the interest rate hedges has been maintained at 3 years and 6 months compared to 3 years and 8 months on December 31, 2012.
Bank Amount of credit
lines (€)
Amounts
drawn (€)
Average duration Lines maturing
in the second half year
of 2013 (€)
BELFIUS 45 750 000 45 750 000 3 years and 9 month
BNP 54 030 000 48 500 000 2 years and 10 month 12 500 000
ING 18 000 000 8 000 000 1 an 6 000 000
LBLUX 15 000 000 15 000 000 4 years and 5 month
DEGROOF 10 000 000 4 years and 10 month
TOTAL 142 780 000 117 250 000 3 years and 2 month 18 500 000

Credit lines as of June 30, 2013

Hedging instruments as of June 30, 2013

Bank Amount of
active hedging
instruments (€)
Amount of
hedging
instruments
«forward» (€)
Average duration Hedging maturing
in the second half year
of 2013 (€)
BELFIUS 36 750 000 20 000 000 2 years and 8 month 10 000 000
BNP 25 000 000 4 years and 11 month
ING 40 000 000 3 years and 9 month
TOTAL 101 750 000 20 000 000 3 years and 6 month 10 000 000

The average debt ratio of the fi rst half year of 2013 amounts to 3.66%.

XCORPORATE RESPONSIBILITY

Home Invest Belgium has continued to pay particular attention, at the level of its Board of Directors as well as at the level of its executive management, to the social, environmental and ethical criteria with regard to its decisions related to the management of fi nancial resources as well as the implementation of rights related to the shares in its portfolio. It is in this context that Home Invest Belgium pays particular attention to technological evolutions in the domain of construction as well as energy performances of its property portfolio and development projects, like, for example, the property project Pépinière-Brederode, of which it became owner on 8 July (cfr supra). The project shall be internally developed with particular attention to the present requirements in terms of durable development, in particular regarding the energy performances.

2 Events after the closing of the first half year

2.1. The acquisition of the property project Pépinière-Brederode in 1000 Brussels (behind the Royal Palace and in front of the Place du Trône) has been fi nalized through signing of the original deed of purchase on this last July 8.

As detailed above, Home Invest Belgium will implement this development project for its own account, comprising 14 luxury apartments, 2 smaller offi ce spaces as well as 15 parking lots.

2.2. Furthermore, the company is in a well advanced negotiation stage with regard to two new acquisition fi les, concerning the take-over, by way of progressive transfer of shares, of buildings to convert or already converted, into residential housing for students. Besides, the company continues to actively look for investment opportunities or development opportunities for its own account, which will generate value for its shareholders, by actively managing its existing portfolio by rejuvenating and improving it and permanently listening to the needs of its tenants.

2.3. Finally, the arbitrage through lot per lot sales continues at a normal pace and several agreements have been concluded, some of these already being subject of a signed sales agreement.

The signature of these agreements and the realization of these expected sales at the moment of the preparation of this report should represent an additional realized capital gain amounting to € 0.3 million.

3 Outlook

Ever since the stock exchange listing in June 1999, i.e. 14 years ago, the dividends distributed by the company could be increased substantially every year.

For the current fi nancial year, and except in case of unforeseen events, nothing is likely to change this upward curve. In these conditions, the Board of Directors estimates that the dividend for the year 2013 should once again be higher than the one of previous fi nancial year, except in case of sudden and substantial degradation of the residential real estate market in respect to rentals and/or sales, which the Board does not expect at the time of the preparation of this report.

The Board recalls at last that the dividend growth is partly due to the increase in volume of the arbitrage on the portfolio (see the yearly report 2012, p.67); in this regard, attention needs to be drawn to the fact that the company has no infl uence on the market price fl uctuations and that it has no absolute control on the precise planning of sales, since the potential buyer is free to decide until the time of signature.

4 Main risks and uncertainties

The Board of Directors considers, that the main risk factors, summarized on pages 8 to 17 of the fi nancial report of 2012, remain relevant to this present half year report.

5 Strategy

Home Invest Belgium pursues a strategy of 'pure player' with regard to residential buildings (apartments and houses), located in Belgium and mainly in Brussels.

In this context, following the evaluations and the needs of the residential real estate market, the company also follows the housing segment for students and young professionals; this segment effectively offers a response to the increase of needs of students and young professionals who are searching for quality accommodation, complying with the current standards in terms of durability, accessibility and attractive environment.

6 Corporate governance

6.1. Composition of the executive management

Since 1 August 2013, Alexander Hodac1 has joined the company in the capacity of Chief Commercial Offi cer (CCO). He will specifi cally be in charge of identifying and analyzing opportunities in respect to property investment. On the condition precedent of the approval by the FSMA, he will join the executive management of the company– which today consists of the CEO, the Chief Finance Offi cer (CFO) and the Chief Operating Offi cer (COO) – that will from that moment on be composed of 4 effective members.

6.2. Composition of the team

In the framework of the new strategy decided by the Board of Directors during the fi rst half year of 2012, the team has been highly expanded. Today, it comprises 23 persons (not including the executive management), compared to 13 persons on 31 December 2012. This development has allowed the company to integrate new activities, as the technical management of the majority of its buildings in the Brussels-Capital region, which was insourced during the fi rst half year of 2013, as well as the development of projects for its own account through its daughter company Home Invest Development2 , without forgetting the impact of the new acquisitions, such as the buildings of the certifi cate 'Louvain-la-Neuve 1976'.

6.3. Renewal of the auditors mandate

On May 7, 2013, with the approval of the FSMA, the general meeting of Home Invest Belgium renewed the auditors mandate of Mr. Karel Nijs, company auditor, established in 2600 Antwerp, Potvlietlaan 6, for a term period of 3 years ending after the ordinary general meeting of the shareholders of 2016 and has fi xed his remuneration at € 26 800 on an annual basis, to be increased with VAT and subject to the index.

6.4. Related parties

There were no transactions with related parties during the current quarter, as referred to in Article 13 of the Royal Decree of November 14 2007.

1 In his capacity of permanent representative of SPRL AHO Consulting.

2 Previously named "Home Invest Management".

HOME INVEST BELGIUM ON THE STOCK EXCHANGE

Evolution of the shares

Since last June 24, the shares of Home Invest Belgium have been included in the BEL Mid Index1 .

During the half year concerned, the closing price of the Home Invest Belgium share has fl uctuated between a lowest share price of € 69.27 on January 3, and a highest share price of € 82.35 on May 13, also the highest one ever.

The share experienced a growth of 5.7%, taking the closing price of 30 June 2013 (€ 75.05) into account, compared to the closing price of 31 December 2012 (€ 71).

The very good performance of the Home Invest Belgium share during the course of the half year under review is also apparent in respect to the BEL20, which only progressed by 0.43% during this period, in comparison to the sector of the Belgian sector of Sicafi as expressed by the EPRA Belgium index, which shows a decline of 4.6% for the concerned half year.

Comparaison of the stock exchange evolution: Home Invest Belgium – BEL 20 – EPRA Belgium indices since the stock market fl otation

Globally, the fi rst six months of the fi nancial year 2013 were characterized by the growth of the stock market price which was fairly constant until mid-May, when it leveled before going up again towards the end of June; it is also noticeable that the detachment of the coupon on May 14 has only slightly infl uenced the market price of the share, since it quoted the

1 The BEL Mid index is made up of stocks not included in the BEL20 index, having a higher free float market capitalisation than the level of the BEL 20 index multiplied by EUR 55 000 and a free-float velocity of at least 15%.

day before (13 May) at € 82.35, reduced the day after to € 80.40 (14 May), and then quickly went up again during the following days (€ 81.90 on May 17).

It must also be noted that the liquidity of the share declines after the signifi cant high increase in 2012, with a daily average of 795 shares per trading session, in comparison to an average of 1 066 during the 1st half year of 2012 and of 1 136 for the total fi nancial year of 2012.

Shareholding on June 30, 2013

Mainly based on the transparency declarations of the shareholders which surpass the statutory threshold of 3% of the capital, and based on the register of nominative shareholders, the shareholder status of Home Invest Belgium on June 30, 2013, compared to the situation on December 31, The premium between the market price of June 28, 2013, the last day of trading of the half year (€ 75.05) and the net asset value on that same day (€ 58.74), amounted to 27.77% (in comparison to a premium of 23.1% on June 30, 2012, and a premium of 20.9% on December 31, 2012). This premium refl ects the confi dence of the shareholder in the signifi cant performance arising from an investment in shares of Home Invest Belgium.

2012, as recorded in the fi nancial annual report of 2012 (page 70) refl ects the acquisition by the Group Van Overstraeten of a part of the participation that was previously held by SCRL Arcopar of the Arco Group.

Shareholders Number of shares In% of capital
Van Overstraeten Group 802 692 26.26%
COCKY S.A. 110 0.00%
Mr Liévin Van Overstraeten 128 671 4.21%
Mr Antoon Van Overstraeten 127 714 4.18%
Mr Hans Van Overstraeten 130 605 4.27%
Mr Johan Van Overstraeten 128 569 4.21%
Mr Bart Van Overstraeten 128 568 4.21%
Stavos Luxembourg 118 455 3.88%
VOP N.V. 40 000 1.31%
AXA Belgium 433 164 14.17%
Federal Insurance 105 296 3.45%
Van Overtveldt - Henry de Frahan 102 792 3.36%
Mr S. Van Overtveldt 51 396 1.68%
Mme P. Henry de Frahan 51 396 1.68%
ARCO group 62 575 2.05%
Arcopar S.C.R.L. 37 575 1.23%
Auxipar S.A. 25 000 0.82%
Other registered shareholders 75 653 2.48%
Total known 1 582 172 51.77%
Free Float 1 473 971 48.23%
General total 3 056 143 100.00%

Shareholders'calendar

2013
Interim statement: results on September 30, 2013 Friday November 15, 2013
2014
Annual statement for the 2013 financial year Friday February 28, 2014
Online publication of the financial annual results on the website Thursday April 3rd, 2014
Ordinary general meeting of the 2013 financial year Tuesday May 6th, 2014
Interim statement : results on March 31, 2014 Tuesday May 6th, 2014
Payment of the dividend for the 2013 financial year Friday May 16th, 2014

YSER (ETTERBEEK)

ADAGIO ACCESS BRUSSELS EUROPE (BRUSSELS)

PROPERTY REPORT

Property portfolio1 - Occupancy rate

On 30 June 2013, Home Invest Belgium owned 75 buildings on 44 sites with a built up surface area of +/- 149 000 m² and 1 340 rental units.

Calculated on the basis of the valuation report of Winssinger & Associates, the Sicafi 's independent surveyor, the fair value of the property portfolio1 amounts to € 278.6 million, an increase of 17.9% compared to June 30, 2012, and of 15.2% compared to December 31, 2012, and this mainly as a result of the incorporation (for the fi rst time) of the buildings of the certifi cate 'Louvain-la-Neuve 1976'. The investment value of the property portfolio in its turn amounts to € 261.5 million.

In relation to the destination of the properties of the property portfolio of the company, the portfolio is spread as follows:

Those percentages allow us to ascertain that at closing of the current half year, the portfolio consists out of 71.5% of buildings allocated to or intended exclusively for accommodation. Since the legislation dated December 27, 2012, at least 80% of the total value of the assets must be directly invested in real estate located in a member state of the European Economic Area and allocated to or intended exclusively for accommodation.

The residential Sicafi 's – amongst which Home Invest Belgium – dispose, nonetheless, of a transition period of 2 years before complying with the new threshold of 80%, considering the fact that the threshold used before the legislation of December 27, 2012, was 60% of the total value of the portfolio.

Home Invest Belgium will therefore draw particular attention to attaining the 80% threshold before the end of the transition period of 2 years.

Furthermore, the regulations applicable to the sector of the Sicafi 's impose them to diversify their risks. Hence, Home Invest Belgium cannot, in its capacity of Sicafi , invest more than 20% of its assets into 1 and the same property complex.

Since the most important site – consisting of 3 buildings located in Louvain-la-Neuve – only represents 12.1% of the total property portfolio, followed by the Lambermont complex at Schaerbeek representing 9.6%, the diversity is clearly assured.

In terms of geographical breakdown, the property portfolio is located for 63.3% in the Brussels-Capital region, this region is regarded by the company as the priority region for investment, the reason for this being the high liquidity of its market as well as the prospect for capital gains in mid-term to long-term basis. The presence of the company in the Walloon region amounts to 24.2% and in the Flemish region to 12.5%.

The geographic breakdown in the Walloon region is indeed increased by 10.4%, in comparison to the situation on June 30, 2012, thanks to the incorporation of the buildings of the certifi cate 'Louvain-la-Neuve 1976'. As a result, the share of the portfolio of Home Invest Belgium located in the Flemish region has become smaller and amounts to 12.5% on June 30 of 2013, in comparison to 15.7% on June 30, 2012.

• Brussels-Capital region 63.3% • Flemish region 12.5% • Walloon region 24.2%

Classifi ed by age, the buildings of 10 years or less represent 45.4% of the portfolio, of which half has an age of less than 5 years at the time of closing of the half-year.

The average occupancy rate1 of the property portfolio in the full fi rst half year of the current fi nancial year, remains stable at 94.8%, which is slightly higher in comparison to 94.2% for the complete fi nancial year 2012. In a market that remains diffi cult due to weak economical activity, this stability originates from the dynamic marketing policy of the properties of the portfolio and the constant follow-up dedicated to optimization of the rental situation.

RÉSIDENCES DU QUARTIER EUROPÉEN (BRUSSELS)

RÉSIDENCES DU QUARTIER EUROPÉEN (BRUSSELS)

1 The occupancy rate expresses the percentage of the rents generated by the occupied properties, including the rental guarantees on the unoccupied properties, in respect to the sum of rents of the occupied properties and of the estimated rental value of the vacant properties. The calculation does not take properties held for sale nor development projects into account.

Details of the property portfolio

Situation of the
property portfolio
on 30 june 2013(1)
Address Main
destination
Year(2) Units Surface Gross
rents(3)
ERV(4) Effective
rents(5)
Occu
pancy
rate((6)
Name Commune Nb %
Brussels-Capital Region 776 88 162 11 798 291 10 292 774 11 298 569 94.7%
Adagio Access Brussels Europe Brussels Rue de l'Industrie, 12 Hotel 2012 1 3 840 757 000 663 913 757 000 100.0%
Belliard 205 Brussels Rue Belliard, 205 Office 1937 18 2 256 369 552 289 452 361 552 95.3%
Belliard 21 Brussels Rue Belliard, 21 Residential 2013 6 278 47 875 47 875 0 100.0%
Clos de la Pépinière Brussels Rue de la Pépinière, 6-14 -
Avenue Thérésienne, 5-9
Residential - Office 1993 25 3 275 454 120 414 837 372 032 89.9%
Lebeau Brussels Rue Lebeau, 55-57 Residential 1998 12 1 153 251 268 182 740 251 268 96.9%
Résidences du Quartier
Européen
Brussels Rue Joseph II, 82-84 - Rue
Lebon, 6-10 - Rue Stevin, 21
Residential 1997 50 4 290 747 326 524 906 747 326 84.4%
Birch House Etterbeek Cours Saint Michel, 96 Residential 2001 32 3 438 504 145 448 986 494 904 97.6%
Erainn Etterbeek Rue des Ménapiens, 29 Residential 2001 12 1 252 203 571 182 953 202 603 96.0%
Yser Etterbeek Avenue de l'Yser, 13 Residential 1974 15 1 961 302 084 261 685 281 897 95.0%
Giotto Evere Avenue du Frioul, 2-10 Residential 2005 85 8 647 1 201 032 1 064 687 1 147 923 94.2%
Belgrade Forest Rue de Belgrade, 78-84 Residential 1999 1 1 368 - - - 100.0%
Les Jardins de la Cambre Ixelles Avenue de l'Hippodrome, 96
- Rue des Echevins, 75
Residential 1992 28 3 552 478 734 410 005 437 492 94.2%
Charles Woeste (appartements) Jette Avenue Charles Woeste,
296-306
Residential 1998 92 5 091 570 707 486 354 552 261 95.6%
Charles Woeste (Retails) Jette Avenue Charles Woeste,
290
Retail 1996 14 2 995 413 110 329 717 413 110 100.0%
Odon Warland - Bulins Jette Rue Odon Warland, 205 -
Rue Bulins, 2-4
Residential 2012 35 3 123 381 993 366 596 327 560 85.3%
Baeck Molenbeek-St-Jean Rue Joseph Baeck, 22-46 Residential 2001 28 2 652 237 839 236 724 229 661 94.3%
Lemaire Molenbeek-St-Jean Rue Joseph Lemaire, 13-15 Nursing home 1990 1 754 - - - 100.0%
La Toque d'Argent Molenbeek-St-Jean Rue Van Kalcq, 30-32 Nursing home 1990 1 1 618 197 598 160 465 197 598 100.0%
Sippelberg Molenbeek-St
Jean
Avenue du Sippelberg, 3-5 Residential 2003 33 3 290 391 700 353 315 381 503 94.5%
Bosquet - Jourdan Saint-Gilles Rue Bosquet, 72 - Rue
Jourdan, 71
Residential 1997 27 2 326 283 961 266 055 283 961 98.3%
Jourdan - Monnaies Saint-Gilles Rue Jourdan, 121-125 Residential 2002 26 2 814 357 510 326 030 352 927 97.5%
Jourdan 85 Saint-Gilles Rue Jourdan, 85 Residential 2010 24 2 430 373 188 347 524 356 295 96.9%
Lambermont Schaerbeek Boulevard du Lambermont,
210-222 - Rue Desenfans
13-15,
Residential 2008 131 14 110 1 672 109 1 581 355 1 624 071 97.7%
Melkriek Uccle Rue du Melkriek, 100 Nursing home 1998 1 1 971 302 770 210 578 302 770 100.0%
Ryckmans Uccle Avenue Rijkmans, 5-19 Residential 1990 8 2 196 275 034 241 560 275 034 100.0%
Les Erables Woluwé-St-Lambert Avenue de Calabre, 30-32 Residential 2001 24 2 202 294 639 263 838 274 709 92.4%
Les Mélèzes Woluwé-St-Lambert Avenue de Calabre, 34-38 Residential 1995 37 4 357 584 397 497 616 549 165 93.3%
Voisin Woluwé-St-Pierre Rue Montagne au
Chaudron, 13
Residential 1996 9 923 145 029 133 008 123 946 85.4%
Flemish Region 146 14 029 2 162 216 2 079 117 2 074 593 96.5%
Nieuwpoort (Retails) Nieuport Albert I-laan, 136 Retail 1997 1 296 29 603 64 000 29 603 100.0%
Grote Markt Saint Nicolas Grote Markt, 32 Residential - Office 2004 17 2 752 391 878 361 891 380 542 97.5%
City Gardens Louvain Petermannenstraat, 2A-2B
Riddersstraat, 112-120
Residential 2010 106 5 236 1 068 732 1 025 484 1 018 820 97.0%
Haverwerf Malines Haverwerf, 1-10 Retail 2002 4 3 399 454 851 424 450 428 476 92.6%
Gent Zuid Gand Woodrow Wilsonplein, 4 Residential 2000 18 2 346 217 152 203 292 217 152 100.0%
Walloon Region 418 46 774 5 528 373 5 165 594 5 308 088 93.7%
Clos Saint-Géry Ghlin Rue de Tournai, 4 Residential 1993 1 4 140 296 431 190 000 296 431 79.3%
Place du Jeu de Balle Lasne Place du Jeu de Balle, 1 Residential 1999 7 1 198 168 652 154 528 166 852 98.9%
Quai de Compiègne Huy Quai de Compiègne, 55 Office 1971 1 2 479 250 000 161 135 250 000 100.0%
Galerie de l'Ange
(appartements)
Namur Rue de la Monnaie, 4-14 Residential 1995 50 1 880 246 336 223 956 246 336 93.7%
Galerie de l'Ange (Retails) Namur Rue de la Monnaie, 4-14 Retail 2002 12 2 552 591 991 543 095 591 991 93.0%
Léopold Liège Rue Leopold, 2-8 Residential 1988 53 3 080 318 821 303 580 272 226 87.5%
Mont Saint Martin Liège Mont Saint Martin, 1 Residential 1988 6 335 30 738 35 635 30 738 76.1%
Quai de Rome Liège Quai de Rome, 46 Residential 1953 27 2 490 194 037 202 340 117 617 67.6%
Saint Hubert 4 Liège Rue Saint Hubert, 4 Residential 1988 14 910 71 737 89 750 52 487 60.6%
Saint Hubert 51 Liège Rue Saint Hubert, 51 Residential 1988 4 360 26 774 42 480 22 154 42.1%
Louvain La Neuve CV9
Louvain La Neuve CV10&18
Louvain-La-Neuve Angle de Rue des Wallons et
Grand Rue
Louvain-La-Neuve Rue Charlemagne,
Office - Retail
Residential -
1977
1977
16
176
7 091
16 519
739 678
2 177 147
719 900
2 117 400
739 678
2 167 647
100.0%
100.0%
Grand Rue, Robelais,
Grand Place, Agora
Office - Retail
Colombus Jambes Rue de l'Orjo, 52-56 Residential 2007 51 3 740 416 031 381 795 353 930 87.6%
Total 1 340 148 965 19 488 880 17 537 485 18 681 250 94.8%

1 Not including buildings currently being sold and development projects.

2 Year of construction or last complete renovation.

3 Annual gross rents in force on 30/06/2013, including rental guarantees

and the estimated rental value on unoccupied surfaces.

4 Estimated rental value by the independent expert.

5 Gross rents in force on 30/06/2013, annualised. 6 Average rent over the first half year, including rental guarantees.

Report of the real estate expert1

Ladies and Gentlemen,

Re: Valuation on 30 June 2013

In compliance with legal and statutory provisions, we are proud to provide you with our opinion on the investment value of the portfolio belonging to the Sicafi HOME INVEST BELGIUM as of 30 June 2013.

We have carried out our valuations using the NPV-method of the rental income and in compliance with International Valuation Standards (IVS) and RICS ('Royal Institution of Chartered Surveyors').

As is customary, our mission is executed on the basis of information provided by HOME INVEST BELGIUM regarding the rental status, charges and taxes to be paid by the lessor, the works to be done, together with any other factors infl uencing property values. We presume this information to be exact and complete.

As stated explicitly in our valuation reports, these do not include any structural or technical examination of properties or any analysis of the possible presence of harmful materials. These elements are well known by HOME INVEST BELGIUM which manages its assets in a professional manner and proceeds with due-diligence in technical as well as legal respect before the purchase of any property.

The investment value is defi ned as the value most likely to be reasonably obtained under normal selling conditions between consenting and well-informed parties, before deduction of transfer costs.

The fair value can be obtained as follows:

  • for residential or mixed-purpose properties which are by nature and conception appropriate for resale by separate units: by deducting from the investment value the transfer rights (amounting to 10% in Flanders and 12.5% in the Brussels-Capital region and Wallonia);
  • for the other properties contained in the portfolio: by deducting from the investment value a rate of 2.5% when this value exceeds € 2 500 000, or the total transfer rights, set at the above-mentioned rates of 10% and 12.5%, if the investment value is below € 2 500 000.

An analysis of sales realised on the Belgian market in the 2003 – 2005 period shows an average rate of 2.5% for transfer rights for properties sold 'en bloc' with an investment value exceeding € 2 500 000.

This 2.5% rate will be reviewed periodically and adjusted insofar as the gap shown for the institutional market exceeds +/- 0.5%.

In our analysis of Home Invest Belgium's portfolio, we have arrived at the following fi ndings:

  • 1) the portfolio consists of 73.27% residential buildings of which 1.95% nursing homes, 3.76% hotels, 17.38% commercial spaces and 5.60% offi ce space2 .
  • 2) the rate of occupancy of the property portfolio on 30 June 2013 amounts to 94.08%3 .

3) the average level of collected or guaranteed rents is 8.33% higher compared to the currently estimated value for the property.

Based on the remarks made in the previous paragraphs, we hereby confi rm that the Investment Value of HOME INVEST BELGIUM's property portfolio on 30 June 2013 amounts to EUR 319 273 000 (three hundred nineteen million two hundred and seventy three thousand Euros).

The likely realisable value of HOME INVEST BELGIUM's property portfolio on 30 June 2013 corresponding to its Fair value in the sense of IAS/IFRS, is set at EUR 291 350 000 (two hundred ninety one million three hundred and fi fty thousand Euros).

Yours faithfully,

Brussels, 15 July 2013 WINSSINGER & ASSOCIES S.A.

Geoffroy REGOUT * Director (*) sprl/bvba

1 Letter from the real estate expert, dated July 15, 2013, literally reproduced with his approval.

2 These calculations were made based on parameters that differ from those used by Home Invest Belgium; that way, they are based on the investment value of the buildings of the portfolio and comprise the buildings held for sale.

3 The occupancy rate differs from the one published by Home Invest Belgium, which is an average occupancy rate over the entire half-year of the financial year, excluding the buildings held for sale.

ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS

The accounting and valuation criteria used for the interim fi nancial statements, as recorded in the current half year report, are identical to those used for the yearly fi nancial statements closed on December 31, 2012.

This half year report applies the IAS 34 standard, which prescribes the minimum content of this interim fi nancial statement, as well as the applicable accounting and evaluation principles.

Taking into account the company activities, the fi gures presented hereafter do not have a cyclic or seasonal nature.

Finally, the percentages quoted in the comments below, are calculated on the basis of non-rounded fi gures from the income statement or from the balance sheet and can therefore deviate from those which were calculated on the basis of the rounded fi gures recorded hereafter.

The company has not applied any new standards or any amendments to existing standards in an anticipatory manner; consequently, these have no impact on the following fi nancial statements.

JOURDAN 85 (SAINT-GILLES)

ALLIÉS-VAN HAELEN (FOREST)

LÉOPOLD (LIÈGE)

Consolidated income statement on 30 June 2013

In comparison with the results of the fi rst half year of 2012, the main results of the fi rst half year of 2013 are as follows:

30/06/2013 30/06/2012
I. Rental income (+) 9 582 481 8 373 628
III.Rental-related expenses (+/-) -95 594 -174 274
NET RENTAL RESULT 9 486 887 8 199 354
IV. Recovery of property charges (+) 39 543 14 203
V. Recovery of charges and taxes normally borne by the tenant on let properties (+) 33 905 69 298
VII. Charges and taxes normally borne by the tenant on let properties (-) -731 878 -666 914
VIII. Other revenues and expenditures related to the renting (+/-) -662 1 458
PROPERTY RESULT 8 827 796 7 617 400
IX. Technical costs (-) -633 842 -563 827
X. Commercial costs (-) -251 662 -162 085
XI. Taxes and charges on unlet properties (-) -229 046 -31 144
XII. Property management costs (-) -1 182 625 -930 931
PROPERTY COSTS -2 297 175 -1 687 987
PROPERTY OPERATING RESULT 6 530 620 5 929 413
XIV. General corporate expenses (-) -307 425 -338 533
XV. Other income and operating charges (+/-) -114 080
OPERATING RESULT BEFORE PORTFOLIO RESULT 6 109 116 5 590 879
XVI. Result on sale of investment properties (+/-) 1 807 814 669 285
XVIII. Changes in fair value of investment properties (+/-) 1 499 483 2 385 713
OPERATING RESULT 9 416 413 8 645 877
XX.Financial income (+) 42 123 53 033
XXI. Net interest charges (-) -1 999 827 -1 292 355
XXII. Other financial charges (-) -44 427 -31 747
XXIII. Changes in fair value of financial assets and liabilities 1 692 780 -1 747 657
FINANCIAL RESULT -309 351 -3 018 726
PRE-TAX RESULT 9 107 062 5 627 151
XXIV. Corporation tax (-) 2 208 -10 106
TAXES 2 208 -10 106
NET RESULT 9 109 271 5 617 046
NET RESULT PER SHARE 2.99 1.85
Average number of shares (1) 3 043 231 3 043 231
NET CURRENT RESULT (excluding the items XVI. XVII. XVIII and XIX.) 5 801 973 2 562 048
NET CURRENT RESULT PER SHARE (excluding the items XVI. XVII. XVIII and
XIX.)
1.91 0.84
NET CURRENT RESULT EXCLUDING IAS 39 (excluding the items XVI. XVII. XVIII XIX.
and XXIII.)
4 109 194 4 309 705
NET CURRENT RESULT EXCLUDING IAS 39 PER SHARE (excluding the items
XVI. XVII. XVIII XIX. and XXIII.)
1.35 1.42
PORTFOLIO RESULT (XVI. to XIX.) 3 307 297 3 054 998
PORTFOLIO RESULT PER SHARE (XVI. to XIX.) 1.09 1.00
DISTRIBUTABLE RESULT 6 018 084 4 967 149
DISTRIBUTABLE RESULT PER SHARE 1.98 1.63
Operating margin (Operating result before the portfolio result) / Property result 69.20% 73.40%
Operating margin before tax (Pre-tax result – portfolio result) / Property result 65.70% 33.77%
Net current margin (Net result – portfolio result) / Property result 65.72% 33.63%

1 Calculated excluding the 12 912 Home Invest Belgium treasury shares.

30/06/2013 30/06/2012
Statement of comprehensive income
I. Net result 9 109 271 5 617 046
II. Other items of comprehensive income:
A. Impact on the fair value of transfer rights and costs estimated to arise on the
hypothetical disposal of investment properties
B. Changes in the efficient part of the fair value of hedging instruments authorised as cash
flow as defined in IFRS
824 360 945 526
1. Effective hedging instruments 515 598 -222 408
2. Requalification according to IAS 39 para. 101 308 762 1 167 935
COMPREHENSIVE INCOME (I + II) 9 933 630 6 562 572

The net rental result progresses by 15.7 %, in comparison to the fi rst half year of 2012, thanks to the incorporation of the buildings of the certifi cate of 'Louvain-la-Neuve 1976', during the fi rst half year of 2013. The property result amounts to 15.9 %, in line with the increase of the rental result.

The property charges indicate a net increase of 36.1%, in comparison to the fi rst half year of 2012; mainly under the brief infl uence of the item taxes and charges on unlet properties that amounts to € 0.2 million compared to the amount of € 0.03 million, a year ago. Even though it can be noticed that this item was unusually low during the fi rst half year 2012, it is just as unusually high during the fi rst half year 2013. Indeed, it includes taxes and charges on unlet properties related to previous fi nancial years, that only appeared now that Home Invest Belgium insourced the management of the properties in the Brussels-Capital region. Most probably other charges related to previous fi nancial years may appear during the half year to come in the framework of the completion of this insourcing. However, it has to be mentioned that, at half year book year, the item real estate charges is globally in line with the outlook for the whole book year.

The general corporate expenses decrease by 9.2 %, in comparison to the fi rst half year of 2012.

The operating result before the portfolio result progresses by 9.3% and amounts to € 6.1 million. The operating margin1 amounts to 69.2%, lower than the 73.4% which was recorded for the fi rst half year of 2012 and compared to the 71.1% registered on December 31, 2012 as result of the increase of the previously mentioned real estate charges and the item other operational charges of € 0.1 million. Half of this amount includes a compensation resulting from a litigation and for the remaining part include exceptional fees related to the insourcing of the management of properties in Brussels-Capital region, previously assured by external property managers.

The result on the sale of investment properties, calculated with respect to the last fair value, minus the investments of the year, amounts to € 1.8 million and shows a spectacular increase in comparison to the result of € 0.7 million during the fi rst half year of 2012 ; the distributable amount on those sales is equal to € 1.9 million.

The changes in fair value of investment properties is positive and amounts to € 1.5 million, in comparison to € 2.4 million in the fi rst half year of 2012.

The operating result therefore amounts to € 9.4 million in comparison to € 8.6 million on 30 June 2012, this being an increase of +8.9%.

The fi nancial result shows a signifi cant improvement. It amounts to € - 0.3 million in comparison to € - 3 million on 30 June 2012, which represents a reduction of 90%, explained by the latent positive change in the fair value of the fi nancial assets and liabilities after several years of negative changes.

The net result amounts to € 9.1 million, a major growth (+62,2 %) in comparison to € 5.6 million on 30 June 2012.

The net current result2 increases from € 2.6 million on 30 June 2012 to € 5.8 million, or an increase of 126.5%. Per share this amounts to € 1.91, compared to € 0.84 for the fi rst half year of 2012, an increase of 126.5%.

The net current result excluding IAS 39 reduces slightly, from € 4.3 million to € 4.1 million, under the brief infl uence of the increase of the real estate charges related to the insourcing of the management of property previously assured by external property managers and the item other operational charges (see here above). Per share this amounts to € 1.35, compared to € 1.42 a year ago (-4,7%).

The distributable result progresses well and amounts to € 6 million compared to € 5 million a year ago, which is slightly higher than the expectations for the fi rst half year. Per share it amounts to € 1.98 compared to € 1.63 on 30 June 2012 (+21.2%). It must be mentioned that this amount takes into account the gains realized during the fi rst half year. The Board is confi dent in the continuation at a normal pace of the sales in the course of the coming second half year.

1 The Operating margin is the operating result before the portfolio result /property result.

2 The net current profit is equal to the net income of the period, after deduction

of the result of the portfolio (lines XVI, XVII and XVIII of the income statement).

Consolidated balance sheet as of 30 June 2013

30/06/2013 31/12/2012
ASSETS
I. Non-current assets 279 963 351 244 014 260
B. Intangible assets 14 251 5 808
C. Investment properties 278 617 698 242 718 208
D. Other tangible assets 147 573 161 975
E. Non-current financial assets 107 076 51 517
F. Finance lease receivables 1 076 752 1 076 752
II. Current assets 25 347 096 26 378 591
A. Assets held for sale 12 732 727 17 349 556
C. Finance lease receivables 74 259 105 379
D. Trade receivables 5 473 305 4 779 961
E. Tax receivables and other current assets 981 633 1 306 827
F. Cash and cash equivalents 5 324 093 2 634 188
G. Deferred charges and accrued income 761 078 202 681
TOTAL ASSETS 305 310 447 270 392 851
SHAREHOLDERS' EQUITY
A. Capital 73 469 670 73 469 670
B. Share premium account 19 093 664 19 093 664
C. Reserves
a. Legal reserve (+) 98 778 98 778
b. Reserve from the balance of changes in fair value of investment properties
(+/-)
94 352 931 89 588 625
c. Reserve from estimated transfer costs and rights resulting from hypothetical
disposal of investment properties (-)
-26 096 817 -25 133 105
d. Reserve from the balance of changes in fair value of allowed hedges to
which hedge accounting according to IFRS is applied (+/-)
-1 134 415 -1 958 774
h. Reserve for treasury shares (-) -757 323 -757 323
m. Other reserves (+/-) 1 259 467 1 259 467
n. Result carried forward from previous financial years (+/-) 9 369 300 11 428 410
D. Net result of the financial year 9 109 271 11 631 985
SHAREHOLDERS' EQUITY 178 764 526 178 721 397
LIABILITIES
I. Non-current liabilities 109 536 828 71 810 647
B. Non-current financial debts 104 750 000 64 550 000
C. Other non-current financial liabilities 4 786 828 7 260 647
II. Current liabilities 17 009 094 19 860 808
B. Current financial debts 12 971 083 16 162 666
D. Trade debts and other current debts 2 933 020 2 486 593
E. Other current liabilities 368 186 554 506
F. Accrued charges and deferred income 736 804 657 043
LIABILITIES 126 545 921 91 671 455
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 305 310 447 270 392 851
Number of shares at end of period(1) 3 043 231 3 043 231
Net asset value 178 764 526 178 721 397
Net asset value per share 58.74 58.73
EPRA NAV(2) 60.30 61.11
Indebtedness 121 022 289 83 753 765
Debt ratio 39.64% 30.97%

1 Number of shares at end of period is calculated with the exclusion of 12 912 treasury shares.

2 "EPRA NAV" corresponds to the net asset value, adjusted in order to exclude, among others, the fair value of the financial hedging instruments.

Under the assets on the balance sheet we mainly note, amongst the non-current assets, the item investment properties, which refl ects the fair value of the property portfolio of Home Invest Belgium (including the development projects). On 30 June 2013, the fair value amounts to € 278.6 million, compared to € 242.7 million on 31 December 2012.

The current assets include, under the section of assets held for sale, the investment properties retained for resale by the Board and of which the fair value amounts to € 12.7 million.

The liabilities remain stable (+ 0.02%), compared to the situation on 31 December 2012, that still included the total results of the fi nancial year 2012, including dividends, in conformity with the IAS-IFRS norms.

On 30 June 2013, the debt ratio of Home Invest Belgium amounted to 39,6%, compared to 31% on 31 December 2012; hence it remains considerably lower than the legal limit of 65%, which constitutes a precious advantage in the context of the current unstable fi nancial and capital markets situation. Furthermore, this low debt ratio allows for a capacity for additional debt of the company up to € 220 million; it consists of € 63 million for a debt ratio which does not exceed 50 %, the limit retained by the Board of Directors.

Based on the fair value of the investment properties, as defi ned in the report of the real estate expert, and taking into account the cumulative result in the course of the past six months, the net asset value of the Home Invest Belgium share1 on 30 June 2013 amounts to € 58.74, which is an increase of 3.3 % in comparison to the fi gures of 30 June 2012 (€ 56.87), and is stable compared to the fi gures of 31 December 2012 (€ 58.73), this last fi gure still including the total result of the fi nancial year of 2012.

SIPPELBERG (MOLENBEEK-SAINT-JEAN)

SIPPELBERG (MOLENBEEK-SAINT-JEAN)

1 After elimination of the 12 912 treasury shares.

Cash flow statement

IN € 30/06/2013 30/06/2012
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2 634 188 1 701 118
1. Cash flow from operating activities 3 786 147 2 059 943
Result for the financial year 9 109 271 5 617 046
Result for the financial year before interest and taxes 9 416 413 8 645 877
Interest received 42 123 53 033
Interest paid -351 474 -3 071 759
Taxes 2 208 -10 106
Adjustment of profit for non-current transactions -4 962 301 -1 274 342
Depreciation and write-downs 37 158 32 999
- Depreciation and write-downs on non-current assets 37 158 32 999
Other non-monetary elements -3 191 645 -638 056
- Changes in fair value of investment properties (+/-) -1 499 483 -2 385 713
- Other non-current transactions -1 692 162 1 747 657
Gain on realization of assets -1 807 814 -669 285
- Capital gains realized on the sale of non-current assets -1 807 814 -669 285
Change in working capital needs -360 823 -2 282 761
Movements in asset items : -895 428 2 121 021
- Current financial assets 31 120 28 811
- Trade receivables -693 344 1 548 797
- Tax receivables and other short-term assets 325 194 656 842
- Deferred charges and accrued income -558 398 -113 428
Movements of liabilities items : 534 605 -4 403 782
- Trade and other current debts 446 427 -4 492 633
- Other current liabilities 8 417 20 263
- Accrued charges and deferred income 79 761 68 588
2. Cash flow from investment activities -28 019 421 1 645 256
Investment properties - capitalized investments -261 652 -279 018
Investment properties - new acquisitions -34 375 000 0
Divestments 6 663 710 2 584 882
Development projects -2 422 -642 683
Other tangible assets -31 200 -14 087
Other non-current financial assets -12 857 -3 838
3. Cash flow from financing activities 26 923 180 -3 238 678
Changes in financial liabilities and debts 37 000 000 5 517 500
Increase (+) / Decrease (-) in financial debts 37 000 000 5 517 500
Dividend of the previous financial year -10 076 820 -8 756 178
CASH AND CASH EQUIVALENTS AT END OF PERIOD 5 324 093 2 167 640

22 HOME INVEST BELGIUM HALF YEAR FINANCIAL REPORT 2013

LOUVAIN-LA-NEUVE

  • 2-3 BELLIARD 21 (BRUSSELS)
  • BELLIARD 205 (BRUSSELS)
  • LAMBERMONT (SCHAERBEEK)

Changes in shareholders'equity

Capital Capital
increase
expenses
Share
premium
Legal
reserve
BALANCE ON 31/12/2011 74 401 222 -931 552 19 093 664 98 778
Transfer
Changes resulting from the sale of a building
Dividend distribution
Result of the financial year
Changes in fair value of hedges
Other increase (decrease)
BALANCE ON 30/06/2012 74 401 222 -931 552 19 093 664 98 778
BALANCE ON 31/12/2012 74 401 222 -931 552 19 093 664 98 778
Transfer
Changes resulting from the sale of a building
Dividend distribution
Result of the financial year
Changes in fair value of hedges
Changes in fair value of property
Other increase (decrease)
BALANCE ON 30/06/2013 74 401 222 -931 552 19 093 664 98 778

Segment information

As a residential Sicafi , Home Invest Belgium has chosen to focus its investment strategy entirely on residential property

(apartment buildings, other residential complexes and houses).

Its investment strategy is thus largely determined by the geographical location of the buildings concerned.

As a consequence, the segmentation below is based on these geographical locations.

Segment of activity Consolidated total
30/06/2013 30/06/2012
Rental income (+) 9 582 481 8 373 628
OPERATING RESULT BEFORE PORTFOLIO RESULT 6 109 116 5 590 879
Result on sale of investment properties (+/-) 1 807 814 669 285
Changes in fair value of investment properties (+/-) 1 499 483 2 385 713
Financial income -309 351 -3 018 726
Segment of activity - Key figures 1
Consolidated total
30/6/2013 31/12/2012
Fair value of investment properties 278 617 698 241 835 640
Rental surface of investment properties 148 965 125 077
Number of units 1 340 1 142
Occupancy rate 94.8% 94.2%

1 Is not taken into account properties held for sale and development projects.

Reserve from
the
balance of
changes
in fair value
of investment
properties
Reserve from
estimated
transfer costs
and rights
Reserve from
the balance
of changes
in fair
value of
hedges
Reserve for
treasury
shares
Other
reserves
Result
carried
forward from
previous
financial
years
Net result
of the
financial
year
Total
85 457 148 -23 441 309 -2 549 147 -757 323 1 259 467 7 773 304 14 833 588 175 237 840
9 279 527 -2 830 280 2 357 717 -8 806 965
-2 951 488 239 311 2 712 177
-8 738 800 -8 738 800
5 617 046 5 617 046
945 526 945 526
91 785 187 -26 032 278 -1 603 620 -757 323 1 259 467 10 131 021 5 617 046 173 061 612
89 588 625 -25 133 105 -1 958 774 -757 323 1 259 467 11 428 410 11 631 985 178 721 397
5 427 646 -1 570 699 -2 059 109 -1 797 837
-663 340 606 987 56 353
-9 890 501 -9 890 501
9 109 271 9 109 271
824 360 824 360
94 352 931 -26 096 817 -1 134 415 -757 323 1 259 467 9 369 300 9 109 270 178 764 526
Brussels Capital Region Flemish Region Walloon Region Unattributed
30/06/2013 30/06/2012 30/06/2013 30/06/2012 30/06/2013 30/06/2012 30/06/2013 30/06/2012
6 070 290 5 898 901 1 054 454 1 095 378 2 457 738 1 379 350
5 104 572 4 712 294 978 568 955 562 2 282 030 1 221 246 -2 256 054 -1 298 223
1 710 235 669 285 97 580
1 320 069 2 132 204 407 840 200 084 -228 426 53 425
-309 351 -3 018 726
Brussels Capital Region Flemish Region Walloon Region
30/6/2013 31/12/2012 30/6/2013 31/12/2012 30/6/2013 31/12/2012
176 275 805 174 027 927 35 023 237 34 605 654 67 318 656 33 202 060
88 162 87 884 14 029 14 029 46 774 23 164
776 770 146 146 418 226
94.7% 94.3% 93.2% 96.6% 94.9% 93.6%

Explanatory notes

1. Investment properties– item I.C. of the assets (in €)

30/06/2013 31/12/2012
Investment properties, balance at the beginning of the financial year 242 718 208 256 558 091
Development projects
Investments – development projects 2 422 1 122 412
Other withdrawals -30 000
Completion of development projects -884 990 -18 314 764
Investment properties
Completion of buildings under construction 884 990 18 314 764
Acquisition of buildings 34 375 000
Capitalized subsequent expenses 261 652 664 629
Gains (losses) from fair value adjustments 1 499 483 3 856 947
Disposals (-) -4 855 896 -9 627 122
Transfer to assets held for sale 4 616 828 -9 826 748
Other increase (decrease)
Investment properties, closing balance at the end of the financial year 278 617 698 242 718 209

2. Consolidation scope

The consolidation scope on June 30, 2013, has changed in respect to June 30, 2012. It now includes the SA Home Invest Belgium (0420.767.885) and the SA Home Invest Development1 (0466.151.118).

Belliard 21 SA (0807.568.451) has been absorbed by Home Invest Belgium SA by notarial deed of October 9, 2012.

3. Distributed dividends

The general meeting of May 7, 2013, approved the appropriation of results proposed by the Board of Directors. A gross dividend of € 3.25 per share2 has since then been paid on May 17, 2013 (against coupon n°16) for a total amount of € 9 932 464,753 .

As a reminder, since January 1, 2013, the distributed dividends by the residential Sicafi 's (which includes Home Invest Belgium) are subject to a 15% withholding tax.

4. Conditional Assets and liabilities on June 30, 2013

On June 30, 2013, Home Invest Belgium had no conditional assets or liabilities, excepted those taken according to the contribution agreement signed on 5 July 2012 with the company AXA Belgium regarding the building Marcel Thiry 208 in Woluwé-Saint-Lambert. This agreement is indeed subject to the fulfi llment of various conditions precedent, as specifi ed in our press release of 27 August 2012.

3 Dividend calculated on statutory basis, in conformity with the RD of December 7, 2010, and thus without the elimination of the treasury shares, held by Home Invest Development (previously known as 'Home Invest Management').

1 Previously known as « Home Invest Management ».

2 Corresponds to a net dividend of € 2.7625, after the deduction of the withholding tax of 15%.

ERAINN (ETTERBEEK) 5 3

8

  • LES ÉRABLES (WOLUWÉ-SAINT-LAMBERT)
  • JOURDAN 85 (SAINT-GILLES)
  • GIOTTO (EVERE)
  • CLOS DE LA PÉPINIÈRE (BRUSSELS)
  • FLORIDA (WATERLOO)
  • ERAINN (ETTERBEEK)
  • LOUVAIN-LA-NEUVE

AUDITOR'S REPORT

REPORT ON THE LIMITED REVIEW OF INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX-MONTHS PERIOD ENDED ON JUNE 30, 2013

Introduction

We have reviewed the related interim consolidated balance sheet of Home Invest Belgium as of June 30, 2013 and the related consolidated statements of income, changes in equity and cash fl ows for the six-month period then ended, and a summary of signifi cant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim consolidated fi nancial information in accordance with the International Financial Reporting Standards as approved by the European Union, applicable to the communication of interim fi nancial information ("IAS 34"). Our responsibility is to express a conclusion on this interim fi nancial information based on our limited review.

Scope of the limited review

We conducted our review in accordance with International Standards on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A limited review of interim fi nancial information consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures of limited review. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all signifi cant matters that might be identifi ed in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated fi nancial information does not present fairly, in all material respects the consolidated fi nancial position of the entity as at June 30, 2013, and of its fi nancial performance and its cash fl ows for the six-month period then ended in accordance with the International Financial Reporting Standards as approved by the European Union.

Antwerp, 26 August 2013

Karel Nijs

Company auditor and auditor certifi ed by the FSMA for UCI's Statutory auditor

STATEMENT OF RESPONSIBLE PERSONS

in accordance with article 13§2 of the Royal Decree of 14 November 2007

Xavier Mertens, Managing Director of the Sicafi , states that to his knowledge:

  • a) The abridged fi nancial statements, established in accordance with the applicable accounting principles, present a fair view of the assets, fi nancial situation and results of the Sicafi and the companies included in the consolidation;
  • b) The interim management report contains a fair presentation of the mandatory information, and particularly the information recorded in §5 and §6 of article 13 of the Royal Decree of 14 November 2007.

26 August 2013

The Board of Directors

Eric Spiessens Independent Director

Koen Dejonckheere Independent Director

Guillaume Botermans Independent Director 1 3 5 7

Liévin Van Overstraeten Director 2 4 6 8

Xavier Mertens Managing Director

Guy Van Wymersch-Moons Chairman of the Board of Directors

Luc Delfosse Independent Director

Johan Van Overstraeten Director

Shareholders' calendar

2013
Interim statement: results on 30 September 2013 Friday 15 November 2013
2014
Annual statement for the 2013 financial year Friday 28 February 2014
Posting of the annual report on the website Thursday 3 April 2014
Ordinary General Meeting of the 2013 financial year Tuesday 6 May 2014
Interim statement: results on 31 March 2014 Tuesday 6 May 2014
Payment of the dividend for the 2013 financial year Friday 16 May 2014

Investor relations

The present half year fi nancial report is available on the website of the company or can be sent by mail on simple request at the registered offi ce.

ADAGIO ACCESS BRUSSELS EUROPE (BRUSSELS)

Home Invest Belgium SA

Belgian Sicafi Boulevard de la Woluwe 60/4, B -1200 Brussels

T +32 2 740 14 50 - F +32 2 740 14 59 [email protected] www.homeinvestbelgium.be RPM : 0420.767.885 | ISIN BE 003760742

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