Immobel NV

Quarterly Report • Sep 17, 2019

CONTENTS

1.	Interim management report 2
2.	Interim condensed consolidated financial statements21
2.a.	Consolidated statement of comprehensive income (in thousand EUR)21
2.b.	Consolidated statement of financial position (in thousand EUR)22
2.c.	Consolidated statement of cash flow position (in thousand EUR) 23
2.d.	Consolidated statement of changes in equity (in thousand EUR) 24
2.e.	Notes to the interim condensed consolidated financial statements25
3.	Statement of the responsible persons 45
4.	Auditor's report 46

1. INTERIM MANAGEMENT REPORT

Highlights

IMMOBEL's revenues in the first half of 2019 increased by 44.1% to EUR 140.8 million while its EBITDA¹ and net profit (Group share) amounted to EUR 67.2 million and EUR 56.4 million respectively. This results in a net profit of EUR 6.43/share compared to EUR 1.71/share during the same period last year. This means that in the first six months alone it achieves a result equal to the annual result for the record year 2018.

The company's balance sheet, with equity of EUR 380.7 million and net debt of EUR 446.9 million as at the end of June 2019, remains strong with a gearing ratio of 54%.

IMMOBEL acquired in the first semester 91,600 m² of new projects in Belgium, Germany and France with an expected sales value² of more than EUR 550 million, strengthening its portfolio in both residential and office segments. With expected sales value of its entire portfolio now standing at EUR 4.4 billion, the company is expected to continue to deliver strong recurrent results in the coming years, influenced by exceptional transactions, as is the case for 2019, which should become more frequent.

IMMOBEL acquired 100% of Nafilyan & Partners, its subsidiary for residential development in France after closing date.

As of 23 September IMMOBEL will be included in the BEL Mid index, the Mid-Cap stock Index of Euronext Brussels, reflecting the increased interest from investors in our company.

Exceptional financial results…

The table below provides the key consolidated figures for the first six months of the year (EUR million):

Results	30/06/2019	30/06/2018	Variance
Revenues	140.8	97.7	+ 44%
EBITDA	67.2	22.1	+ 204%
Net profit Group share	56.4	15.0	+ 276%
Net profit per share (EUR/share)	6.43	1.71	+ 276%

Balance sheet	30/06/2019	31/12/2018	Variance
Inventory3	879.6	744.0	+ 18%
Equity	380.7	344.7	+ 10%
Net debt	446.9	344.9	+ 30%

¹ EBITDA (Earnings Before Interest, Depreciation and Amortization) refers to the operating result before amortization, depreciation and impairment of assets (as included in Administration Costs)

² Expected sales value is the total expected future turnover (Group Share) of all projects in portfolio

³ Inventory refers to Investment property, investments in joint ventures and associates, advances to joint ventures and associates, Inventories and Contract assets

Revenues in the first half-year were mainly driven by residential sales in Belgium and Luxembourg (EUR 68 million), landbanking (EUR 14 million) and the sale of an office building (Nova) in Luxembourg (EUR 51.4 million). The key contributors to the residential sales are O'Sea (EUR 13.6 million), Parc Seny (EUR 8.7 million) and Royal Louise (EUR 7.0 million) in Belgium and Infinity (EUR 16.2 million) in Luxembourg.

Growth in EBITDA and net result was mainly driven by operating revenues and the sale of 50% of Möbius II in Brussels.

Inventory increased by EUR 135.6 million following acquisitions of new projects in Germany, France and Belgium, increasing the expected sales value of IMMOBEL's portfolio by more than EUR 550 million up to EUR 4.4 billion.

The increase in net debt of EUR 102 million is mostly the result of new acquisitions completed in the first half-year, payment of the yearly dividend and reimbursement of a EUR 35.6 million bond. This results in a reduction in cash of EUR 47 million and an increase in gross debt of EUR 55 million.

1.A. … DRIVEN BY STRONG PERFORMANCE OF ITS PORTFOLIO AND EXCEPTIONAL TRANSACTIONS

The development portfolio at the end of June 2019 included more than 1,000,000 m² (including Nafilyan & Partners) spread out over six countries (Belgium, Luxembourg, Poland, France, Spain and Germany) with an expected sales value of EUR 4.4 billion.

BELGIUM

In Belgium, in addition to 10 residential projects already operational in 2018 and three operational projects acquired as part of the acquisition of Urban Living Belgium last year, IMMOBEL launched three new residential projects and realized a turnover of EUR 66.2 million. In April 2019, 50% of the shares of Möbius II were sold to Fidentia, a Belgian real estate investment fund manager.

Various major residential projects are currently being commercialized and are in the construction phase. The table below illustrates the sales performance of IMMOBEL's teams:

Project	m²	% sold	Construction	Completion
Universalis Park	110,000 (Phase 1: 15,000)	98% (of phase 1)	started Q4 2015	Q4 2018
O'Sea	88,500 (Phase 1: 18,000)	84% (of phase 1)	started Q1 2017	Q3 2019
	(Phase 2: 24,000)	13% (of phase 2)	started Q2 2019	Q2 2022
Vaartkom	14,000	100%	started Q2 2018	Q4 2020
Ernest	50,000 (Phase 1: 23,800)	100% (of phase 1)	started in 2014	2016
	(Phase 2: 26,200)	89% (of phase 2)	started Q4 2017	Q2 2020
Lake Front	12,000 (Phase 1: 7,000)	100% (of phase 1)	started Q3 2014	Q3 2016
	(Phase 2: 5,000)	96% (of phase 2)	started Q2 2016	Q3 2018

Riverview	11,000	100%	started Q3 2015	Q4 2017
Parc Seny	13,200	87%	started Q4 2017	Q1 2020
Royal Louise	8,000	96%	started Q1 2018	Q4 2020
Greenhill Park	6,000	84%	started Q3 2017	Q4 2019
't Zout	4,700	89%	started Q4 2017	Q4 2019
Tunnelplaats	26,000	40%	started Q3 2018	Q4 2019
Jambes	28,400 (Phase I: 10,000)	49%	started Q2 2017	Q4 2019
Bree	30,000	19%	started Q2 2019	Q4 2025
Kattendijkdok	5,400	91%	started Q2 2015	Q2 2018
Erpent	17,000	24%	started Q3 2018	Q2 2021
Wavre	8,800	28%	started Q1 2019	Q4 2023

Landbanking (370 hectares) sold 107 plots.

The following office projects are under construction: Möbius I (28,000 m², 100% sold) and Möbius II (32,000 m²) in Brussels CBD and Cala (20,000 m²) in Liège.

Permit applications have been submitted for various projects in or nearby Brussels such as Universalis Park (57,000 m²), De Brouckère (43,800 m²), Îlot Saint-Roch (26,000 m²), Lebeau (41,000 m²), Panorama (RAC 4) (57,000 m²), Commerce 46 (13,800 m²) and Key West (61,000 m²).

IMMOBEL acquired Centre Monnaie (62,000 m²) in Brussels, the current headquarters of Bpost and the City of Brussels administrative services, together with Whitewood, a property and asset manager, and DW Partners, a US-based private equity group. , iIt increased its stake in the Key West project (62,000 m²) in Anderlecht to 50%.

LUXEMBOURG

In Luxembourg, IMMOBEL realized a turnover of EUR 67.9 million in the first half of 2019 following the sale of the Nova office building and the ongoing commercialization of residential projects under development.

The table below indicates various major residential projects that are currently pre-sold:

Project	m²	% sold	Construction	Completion
Livingstone	36,000	100% (of phase 1)	started Q3 2018	Q4 2020
		100% (of phase 2)	started Q4 2018	Q1 2021
Infinity	21,500	99% (Living)	started Q4 2017	Q2 2020
Fuussbann	8,100	100%	started Q1 2017	Q2 2019

Infinity Living project is fully sold out.

IMMOBEL Luxembourg sold 100% of its shares in Centre Étoile S.à.r.l, which owns the NOVA office building (formerly Centre Étoile) located on Place de l'Étoile in Luxembourg, to the French mutual insurance group Monceau Assurances. Furthermore, it will sell Infinity Working & Shopping (13,300 m² ) by the end of 2019 upon delivery of the project to REAL I.S., a German real estate asset manager. The sale is expected to have a significant impact on the net result for the second half of 2019.

The Polvermillen project (26,600 m²) is in permitting application stage.

POLAND

In Poland, IMMOBEL finished construction works on the first phase of Granary Island, which is 92.6% presold. Provisional acceptance of the apartments has started. A building permit application has been submitted for the subsequent phases of Granary Island (41,700 m²).

IMMOBEL Poland continued construction on Central Point, an office project and a Warsaw flagship. It will ultimately provide 19,000 m² of floor space, including 18,000 m² of office space and 1,100 m² of commercial space. WeWork, a global provider of flexible and modern office spaces, is continuing its expansion across Poland and has secured 5,500 m² through leasing in Central Point.

FRANCE

In France, IMMOBEL acquired 100% of Nafilyan & Partners, its subsidiary for residential development. Initially contemplated in 2017 as a gradual acquisition over a 3-year period, IMMOBEL decided to accelerate the acquisition by increasing in 2019 its stake from its 50%-milestone to 100%, ahead of schedule. It allows IMMOBEL to take control over the management of the company as the business performance has been lagging behind the initially foreseen business plan in December 2017. The transaction price amounted to about 40% of the contractually capped price of EUR 130 million, in line with a lower level of activities and lower profitability.

Turnover of Nafilyan & Partners amounted to EUR 40.9 million⁴ for the first six months of 2019, with 25 projects under commercialization and/or construction.

IMMOBEL France acquired its first office project, Saint-Antoine (5,000 m²), located in the iconic Le Marais area in Paris, and is currently in the process of purchasing a second project. IMMOBEL France holds an exclusive right to purchase for a third project.

GERMANY

In Germany, IMMOBEL acquired its first project (Eden) in Frankfurt's city centre, located between the central business district, the station and the exhibition centre. The project already holds a permit and construction is expected to start in the second half of 2019. Commercialization has been launched very successfully.

⁴ Under IFRS. Turnover under French GAAP amounts to EUR 61.9 million in the first semester of 2019 compared to EUR 57.5 million in the first semester of 2018 (increase of 7.6%). We point out that figures included in our press release dated 02.07.2019 are also under French GAAP.

SPAIN

In Spain, IMMOBEL's leisure project (65,000 m²) at the Marbella seaside made significant progress with the conclusion of an agreement with "Four Seasons" Hotel group and the general permitting procedure having reached the final stages.

For more information about the projects, please click here.

HUMAN RESOURCES AND COMPLIANCE

IMMOBEL has fine-tuned its governance and human resources management trajectory to adapt to the next stages in its growth path. In doing so, it has been able to attract top international talent. As a result, several persons have been hired.

Fabien Acerbis has joined IMMOBEL as General Director of IMMOBEL France and thus of Nafilyan & Partners. Fabien Acerbis leaves Bouygues Immobilier where he served as General Director of all residential developments for the full Parisian Area (Île-de-France).

IMMOBEL decided to appoint a CEO for its German business, who will take up his duties on 1 October.

IMMOBEL is delighted with the arrival of its Parisian and German leadership, both people who were at the absolute top in their market. The proof that top European talent sees IMMOBEL as a high-quality brand to which they are willing to link their future.

Marnix Galle, Executive Chairman of the Board of Directors, has been combining since 1 July his duties as Executive Chairman with those of Group CEO. The outgoing CEO, Alexander Hodac, left the Group on 30 June.

The governance structure of IMMOBEL has been further strengthened in line with its internationalization strategy and the development of its internal checks & balances process as follows:

• o Johan Bohets, former Chief Risk Officer and Executive Member of the Board of Directors of Dexia, joined the IMMOBEL team on 17 June as General Counsel.
• o Filip Depaz, former COO and Member of the NN Insurance Belgium Board of Directors, joined the IMMOBEL team on 1 August as Chief Operating Officer.
• o Alexis Prevot, Senior Portfolio Manager in the Real Estate & Infrastructure Department of the Abu Dhabi Investment Authority (ADIA), joined the IMMOBEL team on 1 September as Chief Investment Officer.
• o The Investment Committee will be strengthened by a specialist external member, Thierry Vanden Hende, a former Managing Director of Morgan Stanley Real Estate Fund.

***

The Board of Directors of IMMOBEL has been saddened by the death of Mr. Manfred Loeb, Honorary Chairman of the Company. Mr Loeb passed away on September 14, 2019. With great dedication, he has played an active role in the development of the Company since January 29, 1990 until June 28, 2007. He was a highly appreciated Director and Chairman of the Board of Directors.

Overview of the principal projects in the portfolio

Here is an overview of the principal projects in the IMMOBEL Group's portfolio as at 30 June 2019 (in order of the project's surface area).

BELGIUM

SLACHTHUISSITE – 240,000 m² - Antwerp, Belgium (IMMOBEL share: 30 %)
Status as at 30 June 2019	Design in progress.
Project's features	240,000 m² of land to build on. Predominantly residential project. Qualitative mix with public functions comprised within the project.
Residential units	± 2,000 units
Programme	Design in progress.
Permit obtained	Planning permission: No – Environmental permit: No
Construction period	Q3 2020 / To be determined

UNIVERSALIS PARK – 110,000 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	Phase 1 ABC: 15,000 m² - 90 % sold. Phase 1 DE: 16.000 m² - permit request submitted Q1 2018 Phase 2: ± 40,000 m² - submission of planning permission and environmental permit Q4 2018.
Project's features	The Universalis Park project is a large-scale development, mainly residential, situated on the la Plaine site (ULB/VUB -Delta) and which will be completed in several phases. This project will be made up of a great residential mix, combining apartments with student housing, care homes/assisted living facilities and kindergartens. An office component could also be integrated into the development.
Residential units	Phase 1ABC : 161 apartments Phase 1 DE: ± 170 apartments Phase 2: - Lot A: ± 30 subsidised housing - Lot B: care home ± 60 beds, serviced residences ± 64 rooms and ± 64 student studios - Lot C: 120 apartments - Lot D: ± 314 student rooms
Programme	± 600 apartments ± 650 student accommodations 2 care homes 1 kindergarten A few commercial units
Permit obtained	Phase 1 (UP1 ABC): Planning permission: Yes - Environmental permit: Yes Phase 1 (UP1 DE): Planning permission and environmental permit in consideration (expected Q4 2019/Q1 2020) Phase 2 (UP2 ABCD): Planning permission and environmental permit were submitted in Q4 2018
Construction period	Q4 2015 / Q4 2025
O'SEA – 88,500 m² - Ostend, Belgium
Status as at 30 June 2019	Phase 1 (O'Sea Charme): Ongoing - 88 % sold.

	Phase 2 (O'Sea Beach): Ongoing - 15% sold.
Project's features	In a well located district of Ostend – close to the seafront – this sustainable residential complex project is being developed in several phases. Creating a new perfectly integrated district, it will offer a choice of made to measure living spaces: houses, apartments, serviced residences, studios…
Residential units	Phase 1 (O'Sea Charme): 10 houses - 18 studios - 50 accommodations in assisted living facilities - 32 larger apartments - 56 apartments (tower with 15 levels) Phase 2 (O'Sea Beach): 102 serviced residences - 134 apartments (spread over 3 towers)
Programme	88,500 m² of residential spaces in 4 phases (8 years). Phase 1 – 19,000 m²: 166 residential units - 3 retail businesses - 1 restaurant - 1 kindergarten Phase 2 – 24,000 m²: 236 residential units
Permit obtained	Phase 1: Planning permission: Yes – Environmental permit: Yes Phase 2: Planning permission: Yes – Environmental permit: Yes
Construction period	Phase 1: Q1 2017 / Q3 2019 Total: Q1 2017 / Q2 2025

COURS SAINT-MICHEL – 70,000 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	The purchase deed was signed on 22 March 2018. Leaseback by ING for 5 to 7 years starting from this date. Program in development.
Project's features	The Cours Saint-Michel project will completely redesign and redevelop the former headquarters of ING in Etterbeek. It's a mixed use, user-friendly area oriented towards economic actors, active in European matters. This ambitious project of more than 70,000 m² has many advantages: its highly strategic location, in a green setting, close to the train and underground stations Mérode and Thieffry and very close to the European district.
Residential units	To be determined
Programme	To be determined
Permit obtained	Planning permission: No - Environmental permit: No
Construction period	2023 / 2030

CENTRE MONNAIE – 62,000 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	The purchase deed was signed on 16 May 2019. Rented to Bpost until Q1 2021 and to the City of Brussels until Q1 2022. Program in development.
Project's features	The project delivers the total refurbishment of one of the major buildings in the city centre: the Centre Monnaie. Situated opposite the Théâtre Royal de la Monnaie and with direct access to strategic arteries such as rue Neuve and place de Brouckère, the future mixed use complex will house dwellings, offices and a hotel. This gigantic restoration involves the largest part of the Centre Monnaie, excluding the major portion of the underground car park and the multi-storey shopping centre, which belong to other owners. It enjoys complete accessibility in terms of public transport, and a setting that offers an exceptional variety of uses, combining culture, relaxation, shopping, excursions and work, to meet every urban need.

Residential units	To be determined
Programme	To be determined
Permit obtained	Planning permission: No - Environmental permit: No
Construction period	2022 / 2024

KEY WEST – 61,300 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	Permit request submitted in July 2019. Architects Henning Larsen and A2RC.The planning permit is expected to be granted Q2
Project's features	2020. Mixed project composed of tall housing blocks located at the top of the Biestebroeck quay, with an exceptional view onto the canal. It comes as part of the Brussels region's Canal Plan, and will offer very high quality architecture with interior areas for residents, as well as a new square by the water.
Residential units	524 apartments
Programme	50,000 m² of residential space – 2,700 m² of commercial space – 3,600 m² of productive activities – 5,000 m² SEI
Permit obtained	Planning permission: No – Environmental permit: No
Construction period	Q4 2020 / To be determined

MÖBIUS – 60,000 m² - Brussels, Belgium
Status as at 30 June 2019	Permits obtained in December 2017. Tower I (fully occupied by Allianz): The definitive program has been developed. Tower II: Contacts with potential occupants have been made, without concrete discussions yet.
Project's features	The project comprises two elegant elliptical towers in the north of Brussels, in the very heart of the business district, within walking distance of an important train station of the capital These totally passive buildings offer a breathtaking panoramic view and make full use of natural light. Set around a central core, the office floors benefit from a pure design and from a terrace on the 22nd floor.
Programme	2 office buildings
Permit obtained	Planning permit: Yes - Environmental permit: Yes
Construction period	Tower I: Q1 2018 / Q4 2019 Tower II: Q4 2018 / Q2 2021

PANORAMA (RAC 4) – 58,100 m² - Brussels, Belgium (IMMOBEL share: 40 %)
Status as at 30 June 2019	The planning permit was obtained in Q3 2019, but the environmental permit is still pending. Project based on a design by Max Dudler.
Project's features	The remaining portion of the gigantic redevelopment of the former city administrative centre schedules a substantial residential complex, which will also have retail space and public facilities.

Residential units	443 apartments
Programme	3,600 m² of commercial space – 8,700 m² of public facilities – 45,800 m² of residential space (traditional and subsidised housing units)
Permit obtained	Planning permission: yes - Environmental permit: No
Construction period	Q1 2020 / Q4 2025

ERNEST – 50,000 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	Phase 1: Residence for students and the elderly - 100 % sold and delivered in full. Residential spaces: 100 % sold and delivered in full. Phase 2: Apartments for sale (more than 90 % sold), retail, kindergartens and liberal professions on sale. Construction site ongoing. Hotel part - 100 % sold. Parking "Keyenveld" - 70 % sold.
Project's features	Between the Avenue Louise and the European District, in a trendy area, this prestigious urban rehabilitation project (former Solvay headquarters), is a mixed-use complex in several phases. It is made up of high class apartments and several other facilities which encourage a diverse array of lifestyles (senior citizens, families, students, hotel).
Residential units	Phase 1: 110 apartments & penthouses – 95 student rooms ("The Place to") - 1 rest home (114 beds) Phase 2: 198 apartments & penthouses - 1 kindergarten - 1 hotel – 3 retail spaces – 4 liberal professions
Programme	50,000 m² comprising residential spaces, a residence for students, a care home, a kindergarten, a hotel, a few commercial spaces and offices.
Permit obtained	Planning permission: Yes - Environmental permit: Yes
Construction period	Phase 1: Completed (2014 - 2016) Phase 2: Q4 2017 / Q4 2020

DE BROUCKÈRE – 41,000 m² - Brussels, Belgium (IMMOBEL share: 50 %)
Status as at 30 June 2019	Architect Henning Larsen and A2RC. Development of the plans is under way. Permit request submitted in Q2 2019. The planning permission should be obtained by the end of 2020.
Project's features	Situated in the heart of Brussels and a stone's throw from the Grand Place, the project involves the demolition-reconstruction (and renovation of the listed parts) of the head office of the insurance company Allianz to make way for a mixed, mainly residential block. It is still possible for stand-alone and/or build-to-suit office or hotel solutions to be incorporated into the programme currently under consideration. The ground floors will be redesigned to liven up the streets and the Place de Brouckère through shops and services.
Residential units	311 apartments and student housing
Programme	18,000 m² of residential space - 4,500 m² of student housing - 8,900 m² of offices - 4,300 m² of retail - 5,300 m² of hotel
Permit obtained	Planning permission: No - Environmental permit: No
Construction period	Demolition and asbestos removal works to begin in 2020, after Allianz has moved into its new head office, built by IMMOBEL (Möbius)

LEBEAU – 41,500 m² - Brussels, Belgium
Status as at 30 June 2019	The architects MLA+ and KSA were appointed following the international competition. The program is defined and the building permit plans will be submitted at the beginning of July.
Project's features	The "Lebeau - Sablon" project is a unique, mixed-use complex situated on Place du Grand Sablon, one of the most exclusive districts in Brussels. The project offers very high-end residential apartments, retail outlets, a hotel with 150 rooms and offices. It is located right next to the most popular restaurants, the smartest shops and the Brussels Central railway station.
Residential units	± 210 apartments
Programme	21,500 m² of residential space - 8,000 m² of hotel - 10,000 m² offices - 2,000 m² retail
Permit obtained	Planning permission: No – Environmental permit: No
Construction period	Q2 2020 / Q3 2023

DOMAINE DES VALLÉES – 37,000 m² - Grez-Doiceau, Belgium (IMMOBEL share : 50 %)
Status as at 30 June 2019	96 % sold.
Project's features	Located right next to a train station and a few kilometres from Wavre, this friendly new neighbourhood blends harmoniously into a beautiful sloped 10 ha site, offering plenty of ventilation and beautiful views to most of the properties. Quality public spaces, a playground and a number of shops complete this new neighbourhood.
Residential units	203 houses and apartments
Programme	Public Private Partnership (PPP) comprising 203 residential units (158 2- or 3-façade houses and 45 apartments) including 37 units sold to the APIBW (Agence de promotion immobilière du Brabant Wallon) - 6 commercial units - 1 kindergarten
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q4 2015 / Q4 2019

ÎLOT SAINT-ROCH – 26,000 m² - Nivelles, Belgium
Status as at 30 June 2019	First phase of remediation finalized and approved. Optimization of the program. An agreement with the town hall was reached in Q3 2018 for a denser and more dwelling focused project. Permit request submitted on 28/06/2019. Permit granted for Q4 2019.
Project's features	In the centre of Nivelles, between the railway station and the Collegiate, the project schedules the transformation of an industrial eyesore into an ecologically-responsible district. This new concept is set to include residential accommodation and shops, within a garden setting and including pleasant common areas (terraces, rooftops…).
Residential units	± 315 houses and apartments
Programme	18 residential blocks, comprising ± 314 dwellings, ± 1 single-family house, retail and possibly offices
Permit obtained	Planning permission: No – Environmental permit: No
Construction period	Q2 2020 / Q2 2024

CALA – 20,000 m² - Liège, Belgium (IMMOBEL share: 30 %)
Status as at 30 June 2019	Construction began at the beginning of August 2018, and the end is scheduled Q4 2020. Tenancy agreements 65 % signed - early negotiations 35 %.
Project's features	Major refurbishment of a 20,000 m2 building in Liège, with a view to lease to regional public partners only.
Programme	20,000 m² of office space - 155 underground parking spaces
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q3 2018 / Q4 2020

VUE VERTE – 17,500 m² - Jambes, Belgium (IMMOBEL share: 30 %)
Status as at 30 June 2019	Phase 1: 93 apartments – 50 % sold. Phase 2 et 3: 98 apartments - forseen in 2020.
Project's features	The "Vue Verte" project will soon come to life in Jambes (Namur), at the confluence of the Sambre and Meuse rivers. Its new and contemporary-style apartments, built in a sustainable development, will speak to customers looking for quality of life, services and green spaces.
Residential units	Phase 1: 93 apartments Phase 2 and 3: 98 apartments
Programme	17,500 m² of residential space
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Phase 1: 2017 – 2019 Phase 2: To be determined
COMMERCE 46 – 13,800 m² - Brussels, Belgium

Status as at 30 June 2019	Design in progress.
Project's features	Belliard will be an office building, a new development, and a true flagship building where high performance will take precedence in the architectural, technical and energy efficiency domains. A new reference in the Léopold neighbourhood.
Programme	13,800 m² of office space – 70 parking spaces
Permit obtained	Planning permission: No – Environmental permit: No
Construction period	Q4 2020 / Q3 2022

VAARTKOM – 13,500 m² - Leuven, Belgium
Status as at 30 June 2019	Obtention of a planning permission in Q4 2017. Construction works started Q2 2018. Renovation works started. Cooperation agreement concluded with an operator of serviced residences. All service flats were sold to an international investor Q4 2018.
Project's features	This mixed-use residential complex enjoys an exceptional location with views over the canal and offer residential apartments, serviced studios and an office building.
Residential units	111 serviced residences
Programme	10,500 m² serviced residences – 3,000 m² offices
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q2 2018 / Q3 2020

PARC SENY – 13,200 m² - Auderghem, Belgium
Status as at 30 June 2019	Construction works ongoing. Definitive amending permit obtained Q4 2017. Marketing started in June 2017 – 75 % sold.
Project's features	At Auderghem, just back from the Boulevard du Souverain, and very close to Herrmann Debroux metro station, this project benefits from an extremely green setting with trees. The project consists of transforming a 1970's building into a sustainable residential complex of high quality and next to the Parc Seny.
Residential units	120 apartments
Programme	120 apartments, including studios, 1-, 2- and 3-bedroom apartments and penthouses 156 underground car parking spaces 128 underground bicycle parking spaces 16 underground motorbike parking spaces 137 storages
Permit obtained	Planning permission: Yes - Environmental permit: Yes
onstruction period	Q4 2017 / Q1 2020

LES CINQ SAPINS – 8,800 m² - Wavre, Belgium
Status as at 30 June 2019	All permits have been obtained. Construction began in March 2019.

	80 % of apartments sold. 10 % of houses sold. 40 % of plots of land sold.
Project's features	'Les Cinq Sapins' is a new complex comprising houses and apartments built on the edge of agricultural land, a few minutes away from the centre of Wavre. The human scale architecture respects both the location and its inhabitants.
Residential units	31 houses, 20 apartments and 9 plots of land
Programme	40 single-family houses and 2 buildings comprising 10 apartments
Permit obtained	Planning permission: Yes
Construction period	Infrastructures completed - buildings Q2 2019 / Q4 2023

ROYAL LOUISE – 8,000 m² - Brussels, Belgium
Status as at 30 June 2019	Executable planning permission obtained in Q3 2017. Works have started Q1 2018. Sales have started and all the apartments have been sold. Only one commercial space and some underground parking spaces remain available.
Project's features	Just a few dozen metres from the Place Stéphanie, this residential complex offers exclusive apartments with terraces overlooking the garden at the centre of the lot. Its exceptional location, in the immediate vicinity of the best restaurants and boutiques Brussels has to offer, represents the best in an urban lifestyle.
Residential units	77 apartments
Programme	8,000 m² of residential space
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q1 2018 / Q3 2020

GREENHILL PARK – 6,000 m² - Brussels, Belgium
Status as at 30 June 2019	Construction started Q3 2017. 26 units out of 31 sold - 84 %.
Project's features	Set in the heart of a tree-lined site alongside the Woluwe Park, this luxury residence comprises two elegant buildings featuring timeless architecture. The top of the range residences offer an open view over the private garden, and benefit from a complete range of residential services.
Residential units	31 apartments and penthouses
Programme	6,000 m² of residential space
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q3 2017 / Q3 2019

CROWN – 5,300 m² - Knokke-Heist, Belgium (IMMOBEL share : 50 %)
Status as at 30 June 2019	Permit issued in March 2018, appeal of residents in consideration at the Raad voor Vergunningsbetwistingen.

Project's features	This high-quality apartment complex offers immediate proximity to the waterfront and the center of Knokke-Heist. The project also includes a horeca surfaceout of the ground floor.
Residential units	43 apartments
Programme	43 apartments among which 10 duplexes – 1 retail space of 320 m² – 43 parking spaces – 106 bicycle stands
Permit obtained	Planning permission: Yes - Environmental permit: N/A
Construction period	Q1 2020 / Q4 2020

'T ZOUT – 4,700 m² - Koksijde, Belgium
Status as at 30 June 2019	Start of commercialization in Q3 2017. Start of construction Q4 2017. 48 units out of 54 sold – 89 %.
Project's features	The 't Zout project is a unique residential complex of serviced apartments situated in Coxyde (Sint-Idesbald), between the magnificent town centre and the sea. This human scale project offers a pleasant, easy lifestyle in this very attractive Belgian seaside resort.
Residential units	54 serviced residences
Programme	4,700 m² of serviced residences and common areas
Permit obtained	Planning permission: Yes – Environmental permit: Yes
Construction period	Q4 2017 / Q4 2019

LUXEMBOURG

LIVINGSTONE – 36,000 m² - City of Luxembourg, Grand Duchy of Luxembourg (IMMOBEL share: 33 %)
Status as at 30 June 2019	Receipt of the project execution agreement on 26 June 2018. Phase 1: - Planning permission received on 15 October 2018. - All residential units are reserved (131). - A long-term lease contract was concluded on the most important commercial surface. - All deeds signed except for the construction of the social housing component (14 flats) and three retail units. Phase 2: - Planning permission received on 15 October 2018. - Marketing started mid-October 2017. - All residential units are reserved (116). - All deeds signed except for one penthouse, the construction of the social housing component (11 flats) and the retail unit. Phase 3: - New residential program with 102 apartments, plus 11 co-living units (49 rooms). - New planning permission expected in Q2 2020.
Project's features	Right in the heart of a dynamic district of the capital and close to the Parc de Cessange and to motorway connections, Livingstone benefits from all facilities by integrating a city market into its ground floor. Designed in the form of a half block, almost all the apartments and co-living units of the residence have balconies or loggias, and there is a tree-lined interior courtyard.

Residential units	349 apartments, plus 11 co-living units (49 rooms)
Programme	30,400 m² residential spaces – 2,600 m² co-living – 3,000 m² retail
Permit secured	Phase 1: Planning permission: Yes - Environmental permit: No Phase 2: Planning permission: Yes - Environmental permit: No Phase 3: Planning permission: No - Environmental permit: No
Construction period	Phase 1: Q3 2018 / Q4 2020 Phase 2: Q4 2018 / Q1 2021 Phase 3: Est. Q2 2020 / Q3 2022

INFINITY – 33,300 m² - City of Luxembourg, Grand Duchy of Luxembourg

Status as at 30 June 2019	Start of construction in October 2017. - Housing: The construction of all the floors above ground is completed and façade installation has begun (60 % completed). - Offices: construction is almost complete (99 %). - Shops: construction is almost complete (95 %). All 165 units are reserved; all deeds signed except for three apartments. 100 % of the commercial and office areas are already rented.
Project's features	Located at the entrance to Kirchberg, ideally served by transport modes and in the immediate proximity of the European Institutions, the INFINITY buildings complex offers a prestigious address with unique visibility in Luxembourg. Designed by architect Bernardo Fort-Brescia in collaboration with M3 Architects, the INFINITY project is characterised by two sculptural towers linked together by a retail gallery featuring a planted roof.
Residential units	165 apartments, penthouses and studios
Programme	33,300 m² mixed-use spaces: 165 residential units - 6,500 m² commercial spaces (23 boutiques, cafés and restaurants) - 6,800 m² of office space
Permit secured	Planning permission: Yes - Environmental permit: No
Construction period	Working & Shopping: Q4 2017 / Q4 2019 Living: Q4 2017 / Q2 2020

POLVERMILLEN – 26,600 m² - City of Luxembourg, Grand Duchy of Luxembourg
Status as at 30 June 2019	Asbestos removal and demolition completed in 2018. 90% of the site is complete. The site should be cleaned up by mid-2020.
Project's features	This complex on the banks of the Alzette River offers a totally new working environment situated between the city and nature. Located in the immediate vicinity of the City Centre of Luxembourg, it will comprise a very mixed-use ensemble: offices along with apartments, houses, lofts and studios, designed according to a sustainable approach. It aims to rehabilitate and redesign a whole new district in a particularly green setting while respecting the soul and history of the site.
Residential units	214 apartments and houses
Programme	25,000 m² of residential spaces (3 apartments in 1 mansion, 17 houses, 16 lofts, 176 apartments) - 1,600 m² of office space
Permit secured	Planning permission: No (phase 1) - Environmental permit: No (phase 1)
Construction period	Phase 1: Q3 2021 / Q3 2023

Phase 2: Q2 2022 / Q4 2023
Phase 3: Q3 2022 / Q4 2023

LAANGFUR – 22,600 m² - Luxembourg City, Grand Duchy of Luxembourg
Status as at 30 June 2019	Acquisition of plots of land in the PAP (Plan d'Aménagement Particulier) Laangfur area in October and December 2018. PAP to be developed in collaboration with other owners (24 ha site). The land is currently farmland.
Project's features	The piece of a puzzle perfectly integrated into the urban fabric of the Kirchberg plateau in Luxembourg, the new mixed neighbourhood of Laangfur will offer an innovative urban concept featuring an intergenerational and environmentally-friendly approach.
Programme	Mixed neighbourhood with a preponderance of housing (about 160 units)
Permit secured	Planning permission: No - Environmental permits: No
Construction period	To be determined

MAMER – 13,800 m² - Mamer, Grand Duchy of Luxembourg
Status as at 30 June 2019	Acquisition of land in December 2018. Land is currently agricultural land. Programme to be determined based on the new PAP (Plan d'Aménagement Particulier).
Project's features	Development of a residential neighbourhood that will offer a mix of single-family houses and small residences designed in line with the current environment.
Programme	Single-family houses and small residences (about 70 units)
Permit secured	Planning permission: No - Environmental permits: No
Construction period	To be determined

RUE DE HOLLERICH – 10,000 m² - Luxembourg City, Grand Duchy of Luxembourg
Status as at 30 June 2019	Acquisition of land in December 2018. The site is currently occupied by several shops, restaurants and offices. Programme to be determined based on a PAP (Plan d'Aménagement Particulier).
Project's features	Creation of a new mixed and dynamic district in the heart of the city. This project complements and enriches the redevelopment of the Hollerich and Luxembourg railway districts.
Programme	Mixed building totalling 10,000 m², including one hundred units
Permit secured	Planning permission: No - Environmental permits: No
Construction period	To be determined

FUUSSBANN – 8,100 m² - Differdange, Grand Duchy of Luxembourg (IMMOBEL share: 33 %)
Status as at 30 June 2019	The construction of the building was completed in Q2 2019.
	All 43 residential units and all 3 commercial areas have been sold and delivered.

Project's features	A stone's throw from the city centre and with local shops at the foot of the building, the Fuussbann residence benefits from all the conveniences of urban life without compromising on tranquillity. Resolutely contemporary and bathed in natural light, Fuussbann offers optimal and functional apartments overlooking large terraces or gardens, along with a landscaped interior courtyard.
Residential units	48 apartments
Programme	5,900 m² of residential space - 2,200 m² of commercial space
Permit secured	Planning permission: Yes - Environmental permit: Yes
Construction period	Q1 2017 / Q2 2019

THOMAS – 5,700 m² - Strassen, Grand Duchy of Luxembourg
Status as at 30 June 2019	Acquisition of the company Thomas SA in July 2018. The building is currently rented until July 2027.
Project's features	The Thomas administrative building is 90 % occupied. Located at the entrance to Strassen, near Route d'Arlon and Luxembourg's city centre, the building benefits from excellent visibility coupled with remarkable accessibility thanks to a direct connection to the country's main roads, as well as the future new tram line. Numerous public and tertiary projects are in the process of reviving the area and are reinforcing its appeal.
Programme	Renovation into offices, to be defined depending on the termination of the leases
Permit secured	Planning permission: No - Environmental permits: No
Construction period	To be determined

NOVA (FORMER CENTRE ETOILE) – 4,200 m² - Luxembourg-Ville, Grand Duchy of Luxembourg

Status as at 30 June 2019	The building is currently leased until 2020. The permit to redevelop the building was obtained in December 2018 and amended in April 2019. The shares of Centre Etoile Sàrl were sold to Monceau Assurances on 15 May 2019. A development agreement was concluded on the same day.
Project's features	The NOVA project envisions the complete redevelopment of an office building dating from 1992. Located on Place de l'Étoile, NOVA benefits from a strategic implantation in the heart of the capital and in the immediate vicinity of Kirchberg and of motorway connections.
Programme	The 4,200 m2 office building's refurbishment is to start at the end of the current lease
Permit secured	Planning permission: Yes - Environmental permit: No
Construction period	Q1 2021 / Q4 2022

POLAND

GRANARY ISLAND – 62,000 m² - Gdansk, Poland (IMMOBEL share: 90 %)
Status as at 30 June 2019	Phase 1: - Start of construction works of footbridge in April 2018.

	- Construction works of apartments, apart-hotels and hotel are ongoing. - Hotel's plot sold to UBM in May. - Apart hotel: 82 units out of 94 are reserved/sold. - Apartments: 15 units reserved/sold out of 26. - Retail units on ground floor: 100 % sold. - Retail units on 2nd/3rd floor: 100 % sold. - Parking: 115 units out of 133 are reserved/sold. Phase 2: In development.
Project's features	The project involves maintaining the historical remains of granaries, enriching them with modern, functional housing with public space. Together with commercial object construction; footbridge over Motława River, reconstruction and adding the new lifting mechanism to Stągiewny bridge and expansion of the marina will be executed. Chmielna Street and its connection to Podwale Przedmiejskie will be upgraded –improving transportation system and infrastructure. Długie Pobrzeże will be modernised. In the underground car park there is more parking space planned than needed for housing.
Residential units	Phase 1: 120 apartments Phase 2: 556 apartments
Programme	62,000 m² in 4 phases: residential spaces - 2 hotels - commercial spaces
Permit secured	Planning permission: Yes (phase 1) - Environmental permit: Yes (phase 1)
Construction period	Q1 2017 / Q1 2023

CEDET – 22,300 m² - Warsaw, Poland
Status as at 30 June 2019	In November 2018 the CEDET building was sold to a fund managed by GLL Real Estate Partners on behalf of Korean investors for EUR 129.5 million.
Project's features	Cedet is a unique project of restoration and expansion of a historic building located at 50 Krucza Street – a modernistic pearl of Polish post-war architecture. The Cedet building that combines retail functions and highest class of office space will consist of two parts: a carefully revitalized department store and a completely new building located at intersection of Bracka and Krucza streets.
Programme	22,300 m² office and retail space
Permit secured	Planning permission: Yes - Environmental permit: Yes Operating permit for main building: Yes
Construction period	Q1 2015 / Q2 2018

CENTRAL POINT – 19,100 m² - Warsaw, Poland (IMMOBEL share: 50 %)
Status as at 30 June 2019	Construction started on 16 May 2018 with deep foundation works. General contractor agreement signed in December 2018.
Project's features	Central Point will be a visionary building offering occupants a refined mix of superlative office, service, retail and car parking space. And offering it where it counts – right in the business heart of Warsaw. Ideally located at the corner of Marszałkowska and Świętokrzyska Streets and atop the intersection of the only two metro lines in Warsaw. Central Point offers occupiers fast and convenient access to any part of the capital. A profusion of neighbouring restaurants, hotels, cinemas, theatres, fitness clubs and spas can be found either on the doorstep or within easy reach. And cultural history is just next

	door. Warsaw's PAST building is adjacent and Poland's Palace of Culture and Science is nearby.
Programme	18,000 m² office space - 1,100 m² retail space
Permit secured	Planning permission: Yes - Amended building permit obtained. New amended building permit to be prepared by Strabag (including structural changes implemented during tender phase)
Construction period	Q2 2018 / Q2 2021

2. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2.A. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IN THOUSAND EUR)

	NOTES	30/06/201 9	30/06/201 8
OPERATING INCOME		1 40 821	97 726
Turnover	7	135 398	95 789
Other operating income	8	5 423	1 937
OPERATING EXPENSES		-1 01 1 06	-78 21 1
Cost of sales	9	-86 477	-70 118
Cost of commercialisation	10	- 271	- 708
Administration costs	11	-14 358	-7 385
SALE OF SUBSIDIARIES		1 9 702
Gain on sale of subsidiaries	12	19 702
JOINT VENTURES AND ASSOCIATES		3 324	2 428
Share in the net result of joint ventures and associates	13	3 324	2 428
OPERATING RESULT		62 741	21 943
Interest income		1 371	637
Interest expense		-3 184	-1 010
Other financial income		295	906
Other financial expenses		- 791	-1 110
FINANCIAL RESULT	14	-2 309	- 577
RESULT FROM CONTINUING OPERATIONS BEFORE TAXES		60 432	21 366
Income taxes	15	-4 040	-6 353
RESULT FROM CONTINUING OPERATIONS		56 392	15 013
RESULT OF THE YEAR		56 392	15 013
Share of non-controlling interests		- 46	18
SHARE OF IMMOBEL		56 438	1 4 995
RESULT OF THE YEAR		56 392	1 5 01 3
Other comprehensive income - items subject to subsequent recycling in the income statement			49
Currency translation			49
Other comprehensive income - items that are not subject to subsequent recycling in the income statement
Actuarial gains and losses (-) on defined benefit pension plans
Deferred taxes			-
TOTAL OTHER COMPREHENSIVE INCOME			49
COMPREHENSIVE INCOME OF THE YEAR		56 392	1 5 062
Share of non-controlling interests		- 46	18
SHARE OF IMMOBEL		56 438	1 5 044
NET RESULT PER SHARE (€) (BASIC AND DILUTED)	1 6	6,43	1 ,71
COMPREHENSIVE INCOME PER SHARE (€) (BASIC AND DILUTED)	1 6	6,43	1 ,72

2.B. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN THOUSAND EUR)

ASSETS	NOTES	30/06/201 9	31 /1 2/201 8
NON-CURRENT ASSETS		169 505	181 670
Intangible assets		419	427
Property, plant and equipment		916	947
Assets under capital lease obligations		3 539
Investment property	17	82 871	104 290
Investments in joint ventures and associates	18	60 132	46 451
Advances to joint ventures and associates		16 370	24 151
Other non-current financial assets		408	806
Deferred tax assets	19	4 641	4 501
Other non-current assets		209	97
CURRENT ASSETS		900 935	784 700
Inventories	20	631 866	511 837
Trade receivables	21	29 199	20 734
Contract assets	22	24 696	10 954
Tax receivables		818	921
Other current assets	23	26 396	22 562
Advances to joint ventures and associates		63 684	46 328
Other current financial assets		478	478
Cash and cash equivalents	24	123 798	170 886
TOTAL ASSETS		1 070 440	966 370

EQUITY AND LIABILITIES	NOTES	30/06/201 9	31 /1 2/201 8
TOTAL EQUITY		380 680	344 749
EQUITY SHARE OF IMMOBEL		380 61 0	344 633
Share capital		97 256	97 256
Retained earnings		283 151	247 174
Reserves		203	203
NON-CONTROLLING INTERESTS		70	1 1 6
NON-CURRENT LIABILITIES		412 662	332 875
Employee benefit obligations		618	618
Deferred tax liabilities	19	13 189	9 681
Financial debts	24	398 564	322 040
Derivative financial instruments	24	291	536
CURRENT LIABILITIES		277 098	288 746
Provisions		1 572	1 896
Financial debts	24	172 167	193 749
Trade payables	25	44 752	48 470
Contract liabilities	26	6 818	7 259
Tax liabilities		1 454	5 303
Other current liabilities	27	50 335	32 069
TOTAL EQUITY AND LIABILITIES		1 070 440	966 370

2.C. CONSOLIDATED STATEMENT OF CASH FLOW POSITION (IN THOUSAND EUR)

		NOTES 30/06/201 9 30/06/201 8
Operating income		140 821	97 726
Operating expenses		-101 106	-78 211
Amortisation, depreciation and impairment of assets		2 656	209
Change in provisions		- 196	152
Dividends received from joint ventures and associates		2 630	756
Disposal of subsidiaries		28 508
Repayment of capital and advances by joint ventures		13 604	2 257
Acquisitions, capital injections and loans to joint ventures and associates		-29 273	-21 989
CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL		57 644	900
Change in working capital	28	-142 181	-30 331
CASH FLOW FROM OPERATIONS BEFORE PAID INTERESTS AND PAID TAXES		-84 537	-29 431
Paid interests		-5 928	-5 610
Interest received		1 266	637
Other financing cash flows		- 835	- 326
Paid taxes		-4 416	-3 485
CASH FROM OPERATING ACTIVITIES		-94 450	-38 21 5
Acquisitions of intangible, tangible and other non-current assets		- 176	- 196
Sale of intangible, tangible and other non-current assets
CASH FROM INVESTING ACTIVITIES		- 1 76	- 1 96
Increase in financial debts		108 014	78 971
Repayment of financial debts		-39 236	-100 731
Gross dividends paid		-21 240	-19 298
CASH FROM FINANCING ACTIVITIES		47 538	-41 058
NET INCREASE OR DECREASE (-) IN CASH AND CASH EQUIVALENTS		-47 088	-79 469
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		1 70 886	1 47 926
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		1 23 798	68 457

Acquisitions and sales of projects, either directly or indirectly through the acquisition or the sale of project company (subsidiaries, joint ventures and associates), are not considered as investing activities and are directly included in the cash flows from the operating activities.

2.D. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IN THOUSAND EUR)

	CAPITAL	RETAINED EARNINGS	ACQUISI TION RESERVE	CURRENCY TRANSLATION	RESERVE FOR DEFINED BENEFIT PLANS	EQUITY TO BE ALLOCATED TO THE GROUP	NON CONTROL LING INTERESTS	TOTAL EQUITY
2018
Balance as at 01-01-2018 (before restatement IFRS 15)	97 256	136 481	69 715	- 22	131	303 561	17	303 578
Before treasury shares	97 256	136 481	124 869	- 22	131	358 715	17	358 732
Treasury shares	-	-	-55 154	-	-	-55 154	-	-55 154
Restatement IFRS 15 on opening balance	-	3 379	-	-	-	3 379	-	3 379
Comprehensive income for the year	-	14 995	-	49	-	15 044	18	15 062
Dividendes paids	-	-19 298	-	-	-	-19 298	-	-19 298
Other changes	-	-	-	-	-		-
Adjustment fair value treasury shares	-	-	-	-	-		-
Changes in the year		- 924		49		- 875	18	- 857
Balance as at 30-06-2018	97 256	135 557	69 715	27	131	302 686	35	302 721
Before treasury shares	97 256	135 557	124 869	27	131	357 840	35	357 875
Treasury shares			-55 154			-55 154		-55 154
	CAPITAL	RETAINED EARNINGS	ACQUISI TION RESERVE	CURRENCY TRANSLATION	RESERVE FOR DEFINED BENEFIT PLANS	EQUITY TO BE ALLOCATED TO THE GROUP	NON CONTROL LING INTERESTS	TOTAL EQUITY
2019
Balance as at 01-01-2019	97 256	177 187	69 960	55	176	344 634	116	344 750
Before treasury shares	97 256	177 187	124 869	55	176	399 543	116	399 659
Treasury shares	-	-	-54 909	-	-	-54 909	-	-54 909
Comprehensive income for the year		56 438				56 438	- 46	56 392
Dividendes paids		-21 240				-21 240		-21 240

Adjustment fair value treasury shares

Changes in the year		35 726	250			35 976	- 46	35 930
Balance as at 30-06-2019	97 256	212 913	70 210	55	176	380 610	70	380 680
Before treasury shares	97 256	212 913	124 869	55	176	435 269	70	435 339
Treasury shares			-54 659			-54 659		-54 659

Other changes 528 250 778 778

The share capital of IMMOBEL SA is represented by 9.997.356 ordinary shares, including 1.214.637 treasury shares⁵ .

In accordance with IAS 32, these own shares are presented after deduction of the equity. These own shares have neither voting rights nor dividend rights.

At December 31, 2017, the balance of treasury shares acquired through the merger with ALLFIN is valued at the market price on 29 June 2016, the date of the transaction, and this valuation base will no longer be modified in the future.

⁵ This number of own shares differs by 113 shares from the number of own shares disclosed in the press release dated 1st April 2019 (1.214.750), which was miscalculated.

2.E. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Basis of preparation

The interim condensed consolidated financial statements have been prepared in accordance with accounting standard IAS 34, Interim Financial Reporting, as adopted in the European Union.

Note 2. Accounting principles and methods

The accounting principles used are the same as those used in the preparation of the annual consolidated financial statements for the financial year ending 31 December 2018, except for the impact of the IFRS 16 standards applicable from 1 January 2019, which is detailed below:

Standards and interpretations applicable for the annual period beginning on or after 1 January 2019

• IFRS 16 Leases
• IFRIC 23 Uncertainty over Income Tax Treatments
• Amendments to IAS 19 Plan Amendment, Curtailment or Settlement
• Amendments to IAS 28 Long term interests in Associates and Joint Ventures
• Amendments to IFRS 9 Prepayment Features with Negative Compensation
• Annual improvements to IFRS Standards 2015-2017 Cycle

Standards and interpretations issued but not yet applicable for the annual period beginning on or after 1 January 2019

The Group has not anticipated the following standards and interpretations, which are not mandatory as at 30 June 2019:

• Amendments to IAS 1 and IAS 8 Definition of Material (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)

• Amendments to IFRS 3 Business Combinations (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)

• Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (the effective date has been deferred indefinitely, and therefore the endorsement in the EU has been postponed)

• Amendments to references to the Conceptual Framework in IFRS standards (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)

• IFRS 14 Regulatory Deferral Accounts (applicable for annual periods beginning on or after 1 January 2016, but not yet endorsed in the EU)

• IFRS 17 Insurance Contracts (applicable for annual periods beginning on or after 1 January 2021, but not yet endorsed in the EU)

The process of determining the potential impacts of these standards and interpretations on the consolidated financial statements of the Group is ongoing. The Group does not anticipate any changes resulting from the application of these standards.

Impacts of new Standards and amendments

As of January 1, 2019, the Group applied, for the first time, IFRS 16 "Leases", as part of the annual improvements to IFRS standards 2015–2017 cycle. As required by IAS 34 for condensed consolidated interim financial statements, the nature and effect of these changes are disclosed below.

Several other amendments and interpretations apply for the first time in 2019, but do not have a significant impact on the condensed consolidated interim financial statements of the Group.

IFRS 16 "Leases"

IFRS 16 is applicable for annual periods beginning on or after January 1, 2019.

As from January 1, 2019, the Group no longer applies IAS 17 "Leases", IFRC 4 "Determining whether an Arrangement contains a Lease", SIC-15 "Operating Leases – Incentives" and SIC-27 "Evaluating the Substance of Transactions Involving a Legal Form of a Lease", all these standards and interpretations being replaced by IFRS 16 as from January 1, 2019.

IFRS 16 sets out the principles for the recognition, measurement, presentation, and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model, similar to the accounting for finance leases under IAS 17.

At the commencement date of a lease, lessees recognize a lease liability (i.e. a liability to make lease payments), and a right-of-use asset (i.e. an asset representing the right to use the underlying asset over the lease term). The Group's leased assets relate mainly to buildings and transportation equipment. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.

On January 1, 2019, the Group:

• adopted IFRS 16, using the modified retrospective approach as proposed by the transitional provisions of the standard, by recognizing the cumulative effect of the application of this standard as an adjustment to the opening balance, and did not restate comparative information;
• measured the lease liability for leases previously classified as an operating lease at the present value of the remaining lease payments, discounted using the borrowing rate as of January 1, 2019. The lease liability amounted to EUR 3 891 thousand, as further detailed in the table below. The borrowing rate was 3% for the buildings and 5% for the transportation equipment.
• measured the right-of-use assets for leases previously classified as an operating lease at an amount equal to the lease liability. The right-of-use assets amounted to EUR 3 891 thousand.

The following reconciliation to the opening balance for the lease liability as at January 1, 2019 is based upon the operating lease obligations as at December 31, 2018:

	1/01/2019
Total of future minimum lease payments under non-cancellable operating leases (undiscounted) at December 31, 2018	4.222
Discounting	- 331
Lease liabilities as a result of the initial application of IFRS 16 as at January 1, 2019	3 891

The impact of the IFRS 16 adoption as per January 1, 2019 on the consolidated statement of financial position is as follows:

ASSETS	31 /1 2/201 8	Impact of the adoption of IFRS 1 6 as per 01 /01 /201 9	01 /01 /201 9 (restated IFRS 1 6)
NON-CURRENT ASSETS	181 670	3 891	185 561
Intangible assets	427		427
Property, plant and equipment	947		947
Assets under capital lease obligations		3 891
Investment property	104 290		104 290
Investments in joint ventures and associates	46 451		46 451
Advances to joint ventures and associates	24 151		24 151
Other non-current financial assets	806		806
Deferred tax assets	4 501		4 501
Other non-current assets	97		97
CURRENT ASSETS	784 700		784 700
Inventories	511 837		511 837
Trade receivables	20 734		20 734
Contract assets	10 954		10 954
Tax receivables	921		921
Other current assets	22 562		22 562
Advances to joint ventures and associates	46 328		46 328
Other current financial assets	478		478
Cash and cash equivalents	170 886		170 886
TOTAL ASSETS	966 370	3 891	970 261

EQUITY AND LIABILITIES	31 /1 2/201 8	Impact of the adoption of IFRS 1 6 as per 01 /01 /201 9	01 /01 /201 9 (restated IFRS 1 6)
TOTAL EQUITY	344 749		344 749
EQUITY SHARE OF IMMOBEL	344 633		344 633
Share capital	97 256		97 256
Retained earnings	247 174		247 174
Reserves	203		203
NON-CONTROLLING INTERESTS	1 1 6		1 1 6
NON-CURRENT LIABILITIES	332 875	2 974	335 849
Employee benefit obligations	618		618
Deferred tax liabilities	9 681		9 681
Financial debts	322 040	2 974	325 014
Derivative financial instruments	536		536
CURRENT LIABILITIES	288 746	917	289 663
Provisions	1 896		1 896
Financial debts	193 749	917	194 666
Trade payables	48 470		48 470
Contract liabilities	7 259		7 259
Tax liabilities	5 303		5 303
Other current liabilities	32 069		32 069
TOTAL EQUITY AND LIABILITIES	966 370	3 891	970 261

As a result of the adoption of IFRS 16, for the first half of 2019, depreciation and finance expense increased respectively by EUR 436 thousand and EUR 62 thousand, while operating expenses decreased by EUR - 472 thousand. In addition, operating cash flows increased by EUR 472 thousand, against a decrease of the financing cash flow.

Note 3. Main accounting judgments and estimates

The main accounting judgments and estimates are identical to those given on page 76 (Consolidated Accounts) of the Annual Report 2018. They mainly concern the deferred tax assets, investment property, impairment of assets, provisions, projects in inventory and construction contracts.

Note 4. Main risks and uncertainties

The IMMOBEL Group faces the risks and uncertainties inherent to the property development sector as well as those associated with the economic situation and the financial world.

The Board of Directors considers that the main risks and uncertainties included in page 31 and following (Management Report) of the Annual Report 2018 are still relevant for the remaining months of 2019.

Note 5. Scope of consolidation

The number of entities included in the scope of consolidation evolves as follows:	30/06/2019	31/12/2018
Subsidiaries - Global method of consolidation	69	68
Joint Ventures - Equity method	35	28
Associates - Equity method	5	5
TOTAL	109	101

The following changes have been noted during the first half of the year 2019:

• o Liquidation of the company Cedet Development, previously held at 100%
• o Disposal of the company Centre Etoile, previously held at 100%
• o Disposal of 50% of the shares of the company Möbius II, previously held at 100%, leading to a change in consolidation method
• o Entry in the consolidation scope of the following companies :

Cityzen Holding - 50% Cityzen Hotel - 50% Cityzen Office - 50% Cityzen Residence - 50% IMMOBEL Germany - 100% Eden Tower Frankfurt GmbH - 100% IMMOBEL PM Spain - 100% Surf Club Spain Invest Property SL - 50% SCI Saint-Antoine de Béarn - 100% Goodways SA - 68,82%

Note 6. Operating segment – Financial information by business segment

The segment reporting is presented in respect of the operational segments. The results and asset and liability items of the segment include items that can be attributed to a sector, either directly, or allocated on an allocation formula.

The core business of the Company, real estate development, includes the activities of "offices", "residential development" and "land development".

There are no transactions between the different sectors. The Group's activity is carried out in Belgium, Grand Duchy of Luxemburg, Poland, France and Germany. A new project in Spain is under study.

The breakdown of sales by country depends on the country where the activity is executed.

In accordance with IFRS, the Company applied since 1st January 2014, IFRS 11, which strongly amends the reading of the financial statements of the Company but does not change the net income and shareholders'equity.

The Board of Directors believes that the financial data in application of the proportional consolidated method (before IFRS 11) give a better picture of the activities and financial statements.

INCOME STATEMENT	30/06/201 9	30/06/201 8
OPERATING INCOME	1 79 008	1 1 7 471
Turnover	172 111	115 444
Other operating income	6 897	2 027
OPERATING EXPENSES	-1 30 570	-94 571
Cost of sales	-114 386	-86 300
Cost of commercialisation	- 439	- 802
Administration costs	-15 745	-7 469
SALE OF SUBSIDIARIES	1 9 702
Gain on sale of subsidiaries	19 702
JOINT VENTURES AND ASSOCIATES	-1 755	- 1 70
Share in the net result of joint ventures and associates	-1 755	- 170
OPERATING RESULT	66 385	22 730
Interest income	884	550
Interest expense	-4 653	-1 521
Other financial income / expenses	- 569	- 202
FINANCIAL RESULT	-4 338	-1 1 73
RESULT FROM CONTINUING OPERATIONS BEFORE TAXES	62 047	21 557
Income taxes	-5 655	-6 544
RESULT FROM CONTINUING OPERATIONS	56 392	1 5 01 3
RESULT OF THE YEAR	56 392	1 5 01 3
Share of non-controlling interests	- 46	18
SHARE OF IMMOBEL	56 438	1 4 995

SUMMARY OF THE CONSOLIDATED FINANCIAL STATEMENTS (INTERNAL VIEW)

SUMMARY OF THE CONSOLIDATED FINANCIAL STATEMENTS (INTERNAL VIEW)

	TURNOVER	OPERATING RESULT	TURNOVER	OPERATING RESULT
	30/06/201 9	30/06/201 9	30/06/201 8	30/06/201 8
OFFICES
Belgium	328	20 575		391
Grand-Duchy of Luwemburg	51 382	24 203
Poland	1 205	- 415
SUBTOTAL OFFICES	52 91 5	44 363		391
RESIDENTIAL
Belgium	67 658	12 397	67 298	11 876
Grand-Duchy of Luxemburg	37 545	8 529	38 132	7 951
Poland			5 706	1 239
France		-1 750
SUBTOTAL RESIDENTIAL	1 05 203	1 9 1 76	1 1 1 1 36	21 066
LANDBANKING
Belgium	13 993	2 846	4 308	1 273
SUBTOTAL LANDBANKING	1 3 993	2 846	4 308	1 273
TOTAL CONSOLIDATED	1 72 1 1 1	66 385	1 1 5 444	22 730
Belgium	81 979	35 818	71 606	13 540
Grand-Duchy of Luxemburg	88 927	32 732	38 132	7 951
Poland	1 205	- 415	5 706	1 239
France		-1 750
STATEMENT OF FINANCIAL POSITION			30/06/201 9	31 /1 2/201 8
NON-CURRENT ASSETS			202 01 9	1 87 279
Investments in joint ventures and associates			8 881	21 224
Investment property			181 910	158 284
Other non-current assets			11 228	7 771
CURRENT ASSETS			1 085 060	896 035
Inventories			785 813	598 057
Trade receivables and other current assets			151 784	111 885
Cash and cash equivalents			147 463	186 093
TOTAL ASSETS			1 287 079	1 083 31 4

TOTAL EQUITY	380 680	344 749
NON-CURRENT LIABILITIES	550 1 22	41 4 877
Financial debts	531 685	403 805
Other non-current liabilities	18 437	11 072
CURRENT LIABILITIES	356 277	323 688
Financial debts	173 385	194 522
Trade payables and other current liabilities	182 892	129 166
TOTAL EQUITY AND LIABILITIES	1 287 079	1 083 31 4

SUMMARY OF THE CONSOLIDATED FINANCIAL STATEMENTS (INTERNAL VIEW)

FINANCIAL POSITION ITEMS		OFFICES	RESIDENTIAL	LAND-BANKING	CONSOLIDATED
Segment assets		281 318	747 399	103 086	1 1 31 803
Unallocated items1					155 276
TOTAL ASSETS					1 287 079
Segment liabilities		232 045	566 678	83 227	881 950
Unallocated items1					24 449
TOTAL LIABILITIES					906 399
		BELGIUM GRAND-DUCHY OF LUXEMBURG	POLAND	FRANCE	GERMANY	SPAIN	CONSOLIDATED
Segment assets	717 778	248 220	54 088	44 205	62 037	5 476	1 131 804
Non-current segment assets	161 756	24 844	280	8 436	321	28	195 665

(1) Unallocated items: Assets: Deferred tax assets - Other non-current financial assets - Other non-current assets - Tax receivables -Other current financial assets - Cash and equivalents - Liabilities: Provisions - Deferred tax liabilities - Financial debts - Tax liabilities - Derivative financial instruments. The non-current assets are allocated to segments based on an allocation formula.

For the analysis of projects in progress by segment and by geographical area, inventories should be taken into consideration, as well as investment property, since the latter contains leased out property acquired with a view to be redeveloped.

INVENTORIES AND INVESTMENT PROPERTY	30/06/201 9	31 /1 2/201 8
Allocation of inventories by segment is as follows:
Offices	257 488	192 522
Residential Development	612 589	463 925
Land Development	97 646	99 894
TOTAL INVENTORIES AND INVESTMENT PROPERTY	967 723	756 341
Allocation of inventories by geographical area is as follows:
Belgium	614 530	498 156
Grand-Duchy of Luxemburg	212 194	225 818
Poland	42 781	32 367
France	34 803
Germany	59 886
Spain	3 529
TOTAL INVENTORIES AND INVESTMENT PROPERTY	967 723	756 341

RECONCILIATION TABLE

	30/06/201 9
	Operating	Adjustments	Published
	Segment		Information
Turnover	172 111	-36 713	135 398
Operating result	66 385	-3 644	62 741
Total balance sheet	1287 079	-216 639	1070 440

For segment information, joint ventures are consolidated using the proportional method. The adjustments result from the application of IFRS 11, resulting in the consolidation of joint ventures using the equity method.

Note 7. Turnover

The group generates its revenues through commercial contracts for the transfer of goods and services in the following main revenue categories:

Cross-analysis by segment and geographical zone	Belgium	Grand-Duchy of Luxemburg	Poland	30/06/201 9
Offices	669	51 382	1 205	53 256
Residential	51 619	16 531		68 150
Landbanking	13 993			13 993
Total	66 281	67 913	1 205	135 399
Cross-analysis by segment and geographical zone	Belgium	Grand-Duchy of Luxemburg	Poland	30/06/201 8
Offices
Residential	49 268	36 507	5 706	91 481
Landbanking	4 308			4 308
Total		36 507	5 706	95 789

As outlined in the interim management report, revenues in the first half-year were mainly driven by residential sales in Belgium and Luxembourg, land banking and the sale of an office building (Nova) in Luxembourg. The key contributors to the residential sales are O'Sea, Parc Seny, Royal Louise and Infinity.

Revenue on commercial contracts is recognized when the customer obtains control of the goods or services sold for an amount that reflects what the entity expects to receive for those goods and services.

The contractual analysis of the Group's sales contracts led to the application of the following recognition principles:

Sales of office buildings

The revenue from office sale contracts is recognized after analysis on a case-by-case basis of the performance obligations stipulated in the contract (land, buildings, commercialisation). The revenue allocated to each performance obligation is recognized:

• either upon progress of completion when the goods or services are the subject to a gradual transfer of control;
• or at the transfer of control of goods or services rendered.

As of June 30, 2019, no "Office" contract organizing a gradual transfer of control is in progress.

Residential project sales

For "Residential" projects, revenue is recognized according to the contractual and legal provisions in force in each country to govern the transfer of control of projects sold in the future state of completion.

• Belgium / Luxembourg: upon progress of completion based on costs incurred (Breyne Act or equivalent);
• Poland: when the performance obligation is fulfilled (at the signing of the final act, once the sold unit has been delivered).

Landbanking

The sales revenue is generally recorded when the asset is transferred.

The breakdown of sales according to these different recognition principles is as follows:

	Timing of revenue recognition
	Point in time	Over time	Total
OFFICES	53 256		53 256
Land
Building
Other project	53 256		53 256
RESIDENTIAL		68 149	68 149
Residential unit per project - Law Breyne		68 149	68 149
Residential unit per project - Other
Other project
LANDBANKING	13 993		13 993
TOTAL TURNOVER	67 249	68 149	135 398

Note 8. Other operating income

TOTAL OTHER OPERATING INCOME	5 423	1 937
Other income (recoveries of taxes and withholdings, miscellaneous reinvoicing…)	2 161	1 937
Rental income on properties available for sale	3 262	-
	30/06/2019	30/06/2018
Break down as follows :

Rental income fully relates to leased properties awaiting future development and which are presented as investment properties.

Note 9. Cost of sales

Cost of sales is allocated as follows per segment:
	30/06/201 9	30/06/201 8
Offices	-23 526	501
Land Development	-52 351	-67 945
Lotissement	-10 600	-2 674
TOTAL COST OF SALES	-86 477	-70 1 1 8
and are related to the turnover and the projects mentioned in note 7.

Cost of sales is allocated as follows per geographical area:

	30/06/201 9	30/06/201 8
Belgium	-50 932	-39 439
Grand-Duchy of Luxemburg	-34 558	-26 561
Poland	- 987	-4 118
TOTAL COST OF SALES	-86 477	-70 1 1 8

and are related to the turnover and the projects mentioned in note 7.

Note 10. Cost of commercialisation

This caption includes the fees paid to third parties in relation to the turnover, which are not capitalized under "Inventories" heading.

Note 11. Administration costs

Break down as follows :

	30/06/201 9	30/06/201 8
Salaries and fees of personnel, members of the Executive Committee and
non-executive directors	-9 095	-7 184
Project monitoring costs capitalized under "Inventories" heading	3 836	3 641
Amortisation, depreciation and impairment of assets	-2 460	- 361
Other operating expenses (property taxes, other miscellaneous taxes, …)
which are not capitalized under "Inventories" heading	-1 662	- 430
Services and other goods (Including mainly charges for the headoffice,
maintenance of buildings for sale or awaiting for development,
supplies, advertising, …)	-4 977	-3 051
TOTAL ADMINISTRATION COSTS	-1 4 358	-7 385

Note 12. Gain on sale of subsidiaries

The net gain realized concerns the sale of 50% of the shares of Möbius II, as well as the liquidation of Cedet Development in Poland, and breaks down as follows:

	30/06/2019
Sale price of subsidiaries	28 508
Book value of sold or liquidated investments	-8 806
Net gain on sales of subsidiaries	19 702

Note 13. Joint ventures and associates

The share in the net result of joint ventures and associates break down as follows

	30/06/201 9	30/06/201 8
Operating result	6 968	3 215
Financial result	-2 029	- 596
Income taxes	-1 615	- 191
RESULT OF THE PERIOD	3 324	2 428

Further information related to joint ventures and associates are described in note 18.

Note 14. Financial result

The financial result breaks down as follows:
	30/06/201 9	30/06/201 8
Cost of gross financial debt at amortised cost	-5 928	-5 610
Activated interests on projects in development	2 943	4 461
Fair value changes	245	817
Interest income	1 266	637
Gains and losses on sales of financial assets		-
Other financial income and expense	- 835	- 882
FINANCIAL RESULT	-2 309	- 577

Note 15. Income taxes

Income taxes are as follows:
	30-06-2019	30-06-2018
Current income taxes for the current year	- 671	- 905
Deferred taxes	-3 369	-5 448
TOTAL OF TAX EXPENSES RECOGNIZED IN THE STATEMENT OF COMPREHENSIVE INCOME	-4 040	-6 353

Based on the situation per 30 June 2019, each change in tax rate of 1% involves an increase or decrease of taxes of EUR 342 thousand - see note 19.

Note 16. Earnings per share

The basic result per share is obtained by dividing the result of the year (net result and comprehensive income) by the average number of shares. The computation of average number of shares is defined by IAS 33.

Basic earnings per share are determined using the following information:

30/06/201 9
56 438
56 438
9 997 356
-1 220 190
5 553
8 782 719
8 779 973
6,428
6,428

Note 17. Investment property

This heading includes leased out property acquired with a view to be redeveloped. Investment property evolve as follows:

	30/06/201 9
Acquisition cost at the end of the previous period	108 465
Disposal/exit from the consolidation scope	-20 627
Acquisition cost as at 30 June	87 838
Depreciations and impairment at the end of previous period	-4 175
Depreciations of the period	-1 748
Depreciations and impairment cancelled following disposal/exit from the consolidation scope	956
Depreciations and impairment as at 30 June	-4 967
Net carrying amount as at 30 June	82 871

The disposal relates to an office building in Luxembourg.

Note 18. Investments in joint ventures and associates

The contributions of joint ventures and associates in the statement of financial position and the statement of comprehensive income is as follows:

CONSOLIDATED STATEMENT OF FINANCIAL POSITION	30/06/201 9	31 /1 2/201 8
Investments in associates	19 616	21 224
Investments in joint ventures	40 516	25 227
TOTAL INVESTMENTS INCLUDED IN THE STATEMENT OF FINANCIAL POSITION	60 1 32	46 451
The book value of investments in joint ventures and associates evolve as follows:
	30/06/201 9
VALUE AS AT 1 JANUARY	46 451
Share in result	3 324
Acquisitions and capital injections	4 779
Dividends received from joint ventures and associates	-2 630
Disposals of joint ventures and associates
Repayment of capital
Scope changes	8 208
Currency translation
CHANGES FOR THE YEAR	1 3 681
VALUE AS AT 30 JUNE	60 1 32
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	30/06/201 9
Share in the net result of joint ventures	4 929
Share in the net result of associates	-1 605
SHARE OF JOINT VENTURES AND ASSOCIATES IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	3 324

The table below shows the contribution of joint ventures and associates in the statement of financial position and the statement of comprehensive income.

	% INTEREST		BOOK VALUE OF THE INVESTMENTS		SHARE IN THE COMPREHENSIVE INCOME
NAME	30/06/201 9	31 /1 2/201 8	30/06/201 9	31 /1 2/201 8	30/06/201 9	30/06/201 8
Bella Vita	50,0%	50,0%	104	112	- 8	- 41
CBD International	50,0%	50,0%	-1 914	-1 798	- 118	- 180
Château de Beggen	50,0%	50,0%	597	577	19
Cityzen Holding	50,0%		- 7		- 7
Cityzen Hotel	50,0%		425		- 18
Cityzen Office	50,0%		1 172		- 47
Cityzen Residence	50,0%		425		- 19
CSM Development	50,0%	50,0%	15	31	- 16
CSM Properties	50,0%	50,0%	3 439	3 533	- 94	- 4
Debrouckère Development	50,0%	50,0%	588	625	- 37
Foncière du Parc						- 2
Gateway	50,0%	50,0%	325	326	- 1	- 2
Goodways	68,8%		2 862		191
Ilot Ecluse	50,0%	50,0%	172	174	- 2
Immo Keyenveld 1	50,0%	50,0%	36	88	- 7	- 6
Immo Keyenveld 2	50,0%	50,0%	33	85	- 7	- 6
Immo PA 33 1	50,0%	50,0%	1 349	1 595	44	- 229
Immo PA 44 1	50,0%	50,0%	709	658	81	173
Immo PA 44 2	50,0%	50,0%	2 239	2 262	307	576
Les Deux Princes Developement	50,0%	50,0%	698	2 204	385	548
M 1	33,3%	33,3%	3 013	-1 112	4 125	- 260
M 7	33,3%	33,3%	701	476	225	180
Möbius II	50,0%		8 091
ODD Construct	50,0%	50,0%	21	26	- 5	- 1
Plateau d'Erpent	50,0%	50,0%	- 22	12	- 34	- 4
RAC 3	40,0%	40,0%	3 065	3 003	61	1
RAC 4	40,0%	40,0%	2 933	3 103	- 170	- 162
RAC4 Developement	40,0%	40,0%	1 172	1 201	- 29	6
RAC 5	40,0%	40,0%	5 172	5 126	46	118
SPV WW 13	50,0%	50,0%	- 14		- 14	- 2
Surf Club Invest Property SL	50,0%		2
Unipark	50,0%	50,0%	4 059	3 873	186	593
Universalis Park 2	50,0%	50,0%	-1 397	-1 324	- 73	- 8
Universalis Park 3	50,0%	50,0%	-1 961	-1 866	- 95
Universalis Park 3AB	50,0%	50,0%	1 884	1 689	195	1 044
Universalis Park 3C	50,0%	50,0%	530	548	- 18	266
TOTAL JOINT VENTURES			40 51 6	25 227	4 929	2 598
DHR Clos du Château	33,3%	33,3%	20	26	- 6
Elba Advies	60,0%	60,0%	271	2 946	151
Graspa Development		25,0%				- 170
Nafilyan	15,0%	15,0%	8 250	10 000	-1 750
ULB Holding	60,0%	60,0%	- 176	-4 792	- 209
Urban Living Belgium	30,0%	30,0%	11 251	13 044	206
TOTAL ASSOCIATES			1 9 61 6	21 224	-1 605	- 1 70
TOTAL JOINT VENTURES AND ASSOCIATES			60 1 32	46 451	3 324	2 428

Note 19. Deferred Taxes

Deferred tax assets or liabilities are recorded in the balance sheet on deductible or taxable temporary differences, tax losses and tax credits carried forward. Changes in the deferred taxes in the balance sheet having occurred over the financial year are recorded in the statement of income unless they refer to items directly recognised under other comprehensive income.

Deferred taxes on the balance sheet refer to the following temporary differences:

	DEFERRED TAX ASSETS		DEFERRED TAX LIABILITIES
	30/06/201 9	31 /1 2/201 8	30/06/201 9	31 /1 2/201 8
Tax losses	5 005	4 329
Revenue recognition	1 350	1 734	15 050	11 476
Fair value of financial instruments	73	134
Other items			- 74	- 99
Netting (net tax position per entity)	-1 787	-1 696	-1 787	-1 696
TOTAL	4 641	4 501	1 3 1 89	9 681
VALUE AS AT 1 JANUARY	4 501		9 681
Deferred tax recognised in the consolidated statement of comprehensive income	140		3 508
VALUE AS AT 30 JUNE	4 641		1 3 1 89

Based on the situation per 30 June 2019, each change in tax rate of 1% involves an increase or decrease of taxes of EUR 342 thousand.

Note 20. Inventories

Inventories consist of buildings and land acquired for development and resale.

Allocation of inventories by segment is as follows:
				30/06/201 9	31 /1 2/201 8
Offices				172 534	128 039
Residential Development				361 780	283 962
Land Development				97 552	99 836
TOTAL INVENTORIES				631 866	51 1 837
Allocation of inventories by geographical area is as follows:
				30/06/201 9	31 /1 2/201 8
Belgium				329 691	330 187
Grand-Duchy of Luxemburg				178 406	162 496
Poland				28 953	19 154
France				34 803
Germany				59 886
Spain				127
TOTAL INVENTORIES				631 866	51 1 837
Break down of the movements of the year per segment:				30/06/201 9
INVENTORIES AS AT 1 JANUARY				51 1 837
Purchases/Developments/Disposals of the year				125 297
Borrowing costs				2 943
Scope changes				-8 211
CHANGES FOR THE YEAR				1 20 029
INVENTORIES AS AT 30 JUNE				631 866
Break down of the movements of the	Purchases/	Borrowing costs	Net write-offs	Net
	Developments/
year per segment:	Disposals
Offices	43 613	882		44 495
Residential Development	76 140	1 678		77 818
Land Development	-2 667	383		-2 284
Total	1 1 7 086	2 943		1 20 029
Break down of the movements of the	Purchases/	Borrowing costs	Net write-offs	Net
year per geographical area :	Developments/ Disposals
Belgium	-2 386	1 890		- 496
Grand-Duchy of Luxemburg	15 416	494		15 910
Poland	9 470	329		9 799
France	34 650	153		34 803
Germany	59 842	44		59 886
Spain	94	33		127
Total	1 1 7 086	2 943		1 20 029

As outlined hereabove, the increase of inventories is mainly due to new investments in Germany and France.

Note 21. Trade receivables

Trade receivables refer to the following segments:
	30/06/201 9	31 /1 2/201 8
Offices	11 923	1 538
Residential Development	15 370	15 943
Land Development	1 906	3 253
TOTAL TRADE RECEIVABLES	29 1 99	20 734

Note 22. Contract assets

Contract assets, arising from the application of IFRS 15, refer to the following segments:

	30/06/201 9	31 /1 2/201 8
Offices
Residential Development	24 696	10 954
Land Development
TOTAL CONTRACT ASSETS	24 696	1 0 954

Upon initial recognition, the Group measures trade receivables at their transaction price as defined by IFRS 15. Contract assets include the amounts to which the entity is entitled in exchange for goods or services that it already has provided to a customer but for which the payment is not yet due or is subject to the fulfilment of a specific condition provided for in the contract.

When an amount becomes due, it is transferred to the receivable account.

A trade receivable is recognized as soon as the entity has an unconditional right to collect a payment. This unconditional right exists from the moment in time which makes the payment due.

In the same way as trade receivables and other receivables, contract assets are subject to an impairment test in accordance with the provisions of IFRS 9 on expected credit losses. This test does not show any significant potential impact since these contract assets (and their related receivables) are generally covered by the underlying assets represented by the building to be transferred.

Note 23. Other current assets

The components of this line item are:
	30/06/201 9	31 /1 2/201 8
Other receivable	20 279	20 232
of which : advances and guarantees paid	1 602	1 399
taxes (other than income taxes) and VAT receivable	11 748	11 674
receivable upon sale (escrow account)	1 000	1 000
advances and guarantees paid	461
rental income for projects in development
other	5 468	6 159
Deferred charges and accrued income	6 117	2 330
of which: on projects in development
other	6 117	2 330
TOTAL OTHER CURRENT ASSETS	26 396	22 562
The other current assets are related to the following segments:	30/06/201 9	31 /1 2/201 8
Offices	9 969	11 479
Residential Development	16 378	10 022
Land Development	49	1 061
TOTAL OTHER CURRENT ASSETS	26 396	22 562

Note 24. Information related to the net financial debt

The Group's net financial debt is the balance between the cash and cash equivalents and the financial debts (current and non-current). It amounts to EUR -446 933 thousand as at 30 June 2019 compared to EUR -344 903 thousand as at 31 December 2018.

	30/06/2019	31/12/2018
Cash and cash equivalents	123 798	170 886
Non current financial debts	398 564	322 040
Current financial debts	172 167	193 749
NET FINANCIAL DEBT	-446 933	-344 903

The Group's gearing ratio (net financial debt / total of net financial debt and equity) amounts to 54 % as at 30 June 2019, compared to 50 % as at 31 December 2018.

Cash and cash equivalents

Cash deposits and cash at bank and in hand amount to EUR 123 798 thousand compared to EUR 170 886 thousand at the end of 2018, representing a decrease of EUR 47 088 thousand. The breakdown of cash and cash equivalents is as follows:

	30/06/2019	31/12/2018
Term deposits with an initial duration of maximum 3 months
Cash at bank and in hand	123 798	170 886
AVAILABLE CASH AND CASH EQUIVALENTS	123 798	170 886

The explanation of the change in available cash is given in the consolidated cash flow statement. Cash and cash equivalents are fully available, either for distribution to the shareholders or to finance projects owned by the different companies.

Financial debts

Financial debts increase with EUR 54 942 thousand, from EUR 515 789 thousand at 31 December 2018 to EUR 570 731 thousand at 30 June 2019. The components of financial debts are as follows:

	30/06/2019	31/12/2018
Bond issues:
Bond issue malurity 31-05-2022 at 3.00% - nominal amount 100 MEUR	99 515	99 885
Bond issue maturity 17-10-2023 at 3.00% - nominal annount 50 MEUR	50 000	50 000
Bond issue malurity 17-10-2025 at 3.50% - nominal annount 50 MEUR	50 000	50 000
Credit institutions	196 494	122 155
Lease contracts	2 555
NON CURRENT FINANCIAL DEBTS	398 564	322 040
Bond issues:
Bond issue maturity 27-06-2019 at 6.75% - nominal amount 36.65 MEUR		35 517
Credit institutions	168 605	154 665
l ease contrack	1 010
Bonds -not yet due interest	2 552	3 566
CURRENT FINANCIAL DEBTS	172 167	193 749
TOTAL FINANCIAL DEBTS	570 731	515 789
Financial debits at fixed rates	199 515	235 402
Financial debits at variable rates		276 821
	368 664
Bonds -not yet due interest	2 552	3 566
Annount of debts quaranteed by securities	368 664	241 715
Book value of Group's assets pledged for debt securities	555 085	370 776
Financial debts evolve as follows	30/06/2019	31/12/2018
FINANCIAL DEBTS AS AT 1 JANUARY	515 789	398 906
Liabilities resuling from the implementation of IFRS 16 (pease contracts) as per 1st of January 2019	3 891
Contracted debis	108 014	239 485
Repaid debts	-39 236	-20 600
Change in the fair value recognized in the statement of comprehensive income		-330
Scope changes	-16 500
Bonds - paid interest	-5 406	-5 476
Bonds -not yet due interest	3 943	3 392
Other loans -not yet due interest	157	174
Amorization of deferred debt issue expenses	79	238
CHANGES FOR THE YEAR	54 942	116 883
FINANCIAL DERTS AS PER FIND OF THE PERSON	570 731	515 789

All the financial debts are denominated in EUR.

Except for the bonds, the financing of the Group and the financing of the Group's projects are provided based on a short-term rate, the 1 to 12 month Euribor, increased by commercial margin. As of June 30, 2019, IMMOBEL is entitled to use a Corporate credit line of EUR 10 million, which has not been used so far, and EUR 488 million of confirmed credit lines of which EUR 365 million were used at the end of June 2019. These credit lines (Project Financing Credits) are specific for the development of certain projects.

At June 30, 2019, the book value of Group's assets pledged to secure the corporate credit and the project financing credits amounts to EUR 555 million.

The table below summarizes the maturity of the financial liabilities of the Group:

DUE IN THE PERIOD	UP TO 1 YEAR	1 TO 2 YEARS	2 TO 3 YEARS	3 TO 4 YEARS	4 TO 5 YEARS	AFTER 5 YEARS	Total
Bonds (*)			100 000		50 000	50 000	200 000 *
Project Financing Credits (*)	121 147	143 140	23 700		58 950	18 005	364 942
Interets payable	12 137	9 128	7 717	4 404	3 990	4 085	41 461
TOTAL AMOUNT OF DEBTS	133 284	152 268	131 417	4 404	112 940	72 090	606 403

(*) The amount on the balance sheet, EUR 199 515 thousand, includes EUR 485 thousand charges to be amortized until maturity in 2022.

Interest rate risk

Based on the situation as per 30 June 2019, each change in interest rate of 1% involves an annual increase or decrease of the interest charge on debts at variable rate of EUR 3 649 thousand. In the frame of the availability of long term credits, Corporate or Project Financing, the Group uses financial instruments mainly for the hedging of interest rates.

At 30 June 2019, the derivative financial instruments which have been concluded to hedge future risks are the following:

Period	Instruments	Strike	Notional amounts
09/2014 - 12/2019	IRS bought	0,86%	57 370
		Total	57 370

The fair value of derivatives is determined based on valuation models and future interest rates ("level 2"). The change in fair value of financial instruments is recognized through the statement of income as those have not been designated as cash flow hedges.

	30/06/201 9	31 /1 2/201 8
FAIR VALUE OF FINANCIAL INSTRUMENTS
Hedging instruments:
- Bought IRS Options	291	536
TOTAL	291	536
CHANGE IN FAIR VALUE OF THE DERIVATIVE FINANCIAL INSTRUMENTS
SITUATION AT 1 JANUARY	536
Changes during the period:	- 245
SITUATION AT 30 JUNE	291

No instrument has been documented as hedge accounting at 30 June 2019.

Information on fair value of financial instruments

The following table list the different classes of financial assets and liabilities with their carrying amounts in the balance sheet and their respective fair value and analysed by their measurement category.

The fair value of financial instruments is determined as follows:

• If their maturity is short-term (eg: trade receivables and payables), the fair value is assumed to be similar at amortized cost,
• For fixed rate debts, based on discounted future cash flows estimated based on market rates at closing,
• For variable rate debts, the fair value is assumed to be similar at amortized cost,
• For derivative financial instruments, the fair value is determined on the basis of discounted future cash flows estimated based on curves of forward interest rates. This value is mentioned by the counterparty financial institution,
• For quoted bonds, on the basis of the quotation at the closing.

The fair value measurement of financial assets and financial liabilities can be characterized in one of the following ways:

• Level 1: the fair values of financial assets and liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices in active markets for identical assets and liabilities,
• Level 2: the fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments. This mainly relates to derivative financial instruments,
• Level 3: the fair values of the remaining financial assets and financial liabilities are derived from valuation techniques which include inputs which are not based on observable market data.

			Amounts recognized in balance sheet in accordance with IFRS 9
	Level of the fair value	Carrying amount 30-06-201 9	Amortized cost	Fair value trough profit or loss	Fair value 30-06-201 9
ASSETS
Cash and cash equivalents	Level 1	123 798	123 798		123 798
Other non-current financial assets	Level 2	408		408	408
Other non-current assets	Level 2	209	209		209
Trade receivables	Level 2	29 199	29 199		29 199
Contract assets	Level 2	24 696	24 696		24 696
Other operating receivables	Level 2	107 268	107 268		107 268
Other current financial assets	Level 2	478		478	478
TOTAL		286 056	285 1 70	886	286 056
LIABILITIES
Interest-bearing debt	Level 1 & 2	570 731	570 731		570 731
Trade payables	Level 2	44 752	44 752		44 752
Contract liabilities	Level 2	6 818	6 818		6 818
Other operating payables	Level 2	51 789	51 789		51 789
Derivative financial instruments	Level 2	291		291	291
TOTAL		674 381	674 090	291	674 381

Note 25. Trade payables

This account is allocated by segment as follows:
	30/06/201 9	31 /1 2/201 8
Offices	11 567	16 627
Residential Development	28 182	30 636
Land Development	5 003	1 207
TOTAL TRADE PAYABLES	44 752	48 470

Note 26. Contract liabilities

The contract liabilities, arising from the application of IFRS 15, relate to following segments:

	30/06/201 9	31 /1 2/201 8
Offices
Residential Development	6 818	7 259
Land Development
TOTAL CONTRACT LIABILITIES	6 81 8	7 259

Contract liabilities include amounts received by the entity as compensation for goods or services that have not yet been provided to the customer. The contract liabilities are settled by the recognition of the turnover.

Current contract liabilities include prepaid income of EUR 6 818 thousand at 30 June 2019.

All amounts reflected in contract liabilities are related to residential activities for which revenue is recognized as a percentage of progress, thus creating discrepancies between payments and the realization of benefits.

Other advances and down payments received for EUR 18 751 thousand remain presented in other current liabilities (see Note 25).

Note 27. Other current liabilities

The components of this account are:
	30/06/201 9	31 /1 2/201 8
Personnel debts	396	450
Taxes (other than income taxes) and VAT payable	6 362	5 004
Advances on sales	18 751	10 999
Advances from joint ventures and associates	13 000	8 254
Accrued charges and deferred income	2 591	3 421
Operating grants
Sales price Tractim (Polvermillen)	2 038
Other	7 197	3 941
TOTAL OTHER CURRENT LIABILITIES	50 335	32 069
Other current liabilities are related to the following segments:	30/06/201 9	31 /1 2/201 8
Offices	686	390
Residential Development	49 420	31 460
Land Development	229	219
TOTAL OTHER CURRENT LIABILITIES	50 335	32 069

Other current liabilities mainly consist of the non-eliminated balance of advances received from joint ventures and associates, as well as advances received from customers under commercial contracts for which revenue recognition is expected at a specific point in time.

Note 28. Change in working capital

The change in working capital by nature is established as follows:

	30/06/201 9	30/06/201 8
Inventories, including acquisition and sales of entities that are not considered as
investing activities	-128 240	3 742
Other current assets	-26 010	-20 901
Other current liabilities	12 069	-13 172
CHANGE IN WORKING CAPITAL	-1 42 1 81	-30 331

Note 29. Seasonal character of the results

Due to intrinsic character of its activity, Real Estate Development, the results of the first half year 2019 cannot be extrapolated over the whole year.

These results depend from the final transactions before 31 December 2019.

Note 30. Major events that took place after the end of the interim reporting date

IMMOBEL acquired 100% of Nafilyan & Partners, its subsidiary for residential development in France, after closing date.

No other significant event that may change the financial statements occurred from the reporting date on 30 June 2019 up to 17 September 2019 when the financial statements were approved by the Board of Directors.

Note 31. Related parties

The related party transactions described in Note 29 of the Notes to the Consolidated Financial Statements as at 31 December 2018 have not changed significantly at the end of June 2019.

3. STATEMENT OF THE RESPONSIBLE PERSONS

A³ Management bvba, represented by Mr. Marnix Galle, in his capacity of Executive Chairman of the Board of Directors and KB Financial Services bvba, represented by Mr. Karel Breda, in his capacity of Chief Financial Officer state that, to the best of their knowledge:

• The interim report contains a true representation of the major events and, where appropriate, of the main transactions between the parties involved that took place during the first 6 months of the financial year and of their impact on the set of summarised accounts, as well as a description of the main risks and uncertainties for the remaining months of the financial year.
• the set of summarised financial statement, which have been drawn up in accordance with applicable accounting regulations, and which have been the subject of a limited review by the auditor, give a true representation of the financial situation and profits and losses of the IMMOBEL Group and of its subsidiaries.

4. AUDITOR'S REPORT