Nextensa SA — Annual Report 2011

Feb 17, 2012

Regulated information

Under embargo till 17/02/12 – 7.30h

Press release

Leasinvest Real Estate – year results financial year 2011

• Strategic reorientation of the portfolio continued a.o. through divestments of offices in Belgium, and further growth to retail/logistics and further geographical diversification
• Canal Logistics phase 1 and 2 nearly entirely let
• Increase of dividend to 4.15 euro gross per share
• Offices part of portfolio (based on fair value) further drops to 54% (of which the largest part 27.4% is located in Grand Duchy of Luxembourg) due to the sale of the building in Zwijndrecht (Antwerp);
• Net result (group share) and Net current result (excl. Portfolio result and the changes in the fair value of the ineffective hedges ) evolve well in a challenging office market: respectively 3.15 euro per share (31/12/10: 3.57 euro) and 4.77 per share (31/12/10: 5.50 euro);
• Revalued net asset value (based on fair value of the real estate) per share: 65.51 euro (31/12/10: 68.92 euro) mainly as a consequence of important negative impact of the fair value on the effective hedges;
• Occupancy rate remains high: 92.57% (31/12/10: 97.45%);
• Renovated office building The Crescent let for nearly 50%.

1. Activity report for the period 01/01/11-31/12/11

1. 1 Investments and divestments

Take-over of retail contracts in Nossegem of Redevco Retail Belgium

Mid January 2011 the lease contract with Redevco Retail Belgium was ended by mutual consent. Leasinvest Real Estate leased a retail park situated in Nossegem to Redevco Retail Belgium, sub-let to different important retailers such as Brico, Leen Bakker, Blokker, Casa and Tony Mertens. These sub-lessees as a consequence became direct tenants of Leasinvest Real Estate. A cancellation fee of 6.8 million euro was paid to Redevco Retail Belgium. As a result Leasinvest Real Estate received since 01/01/11 2 million euro of rental income per year instead of 0.9 million previously.

Increase of the participation in Retail Estates

Within the framework of the capital increase realized by the real estate investment trust Retail Estates SA on 27/06/11, following the partial demerger of FUN Belgium SA, Leasinvest Real Estate has purchased a part of these newly created shares (i.e. 81,783 shares, or 1.41% of the current total share capital of Retail Estates SA). This acquisition has been realized at the issue price of the partial demerger, or 48.91 euro, defined based upon the average closing price of the Retail Estates share during the 30 days preceding the emission, minus the net amount of the dividend paid by Retail Estates on 5 July 2011 (2.295 euro).

On 08/07/11 Leasinvest Real Estate has taken over the existing shareholding of Extensa Participations II Sàrl (a 100% subsidiary of Extensa Group) of 3.21% in Retail Estates SA at the same price as mentioned above, of 48.91 euro per share.

Finally, on 09/08/11 25,966 additional Retail Estates shares were purchased on the stock exchange

Taking into account its current participation and the different aforementioned acquisitions, Leasinvest Real Estate currently holds a global stake of 7.39% in real estate investment trust Retail Estates SA.

Sale of office building in Zwijndrecht

On 19/12/11, through a transfer of a branch of economic activity, an office building located in the business park Alpha Campus in Zwijndrecht was sold to the company Integrale Immo Management SA, for an amount of 7.7 million euro (transfer costs excluded). On this transaction a limited capital gain of 0.5 million euro was realized in the financial year 2011.

This transaction relates to an office building of 3,487 m² with integrated workshops of 355 m², a warehouse of 639 m², and 125 outdoor parking spaces, the underlying land (approx. 6,725 m²), together with the real estate leasing contract concluded with the lessee occupying the building.

1. 2 Developments and redevelopments

Completion of a new store in Diekirch

In 05/2011, within the scheduled deadline and budget, the extension of the retail park in Diekirch was completed. It consists of a new construction of a 1,356 m² store, let for a fixed term of 12.5 years to the German Siemes Schuhcenter Group. For this building, an unrealized capital gain of 1.2 million euro was accounted for in the second quarter of 2011.

At the beginning of 2012 The Crescent will be completely converted into a 'green intelligent building', used as a business center with different facilities (catering, meeting rooms, etc.). The objective for this building is to improve the 'BREEAM inuse'-certificate with a 'good' score to a 'very good' score. Different services contracts have been signed in the meanwhile. Based on the current status, the occupancy rate nearly reached 50% at 31/12/11. For this building, a rental compensation from the previous owner of 1.15 million euro still ran till 11/11 (received as a one-off payment in 05/2011).

Evolution of the construction works for the State Archives in Bruges

The building project for the new State Archives in Bruges, started at the end of 2010, proceeds according to plan. The takeover of the project by Leasinvest Real Estate is foreseen by the end of October 2012 after the provisional acceptance of the State Archives and the start of the 25 year fixed lease with the federal government represented by the Buildings Agency.

Completion business center Torenhof in Merelbeke

The renovation of the castle-farm Torenhof located in Merelbeke has been completed in the course of the second quarter of 2011. A business center activity has been launched by the end of 2011. At latest at the end of 2012 this building will be sold at a fixed price of 3.3 million euro to the same buyer who took over our part of the Axxes Business Park in 2010.

1.3 Lettings

Conclusion of rental contracts with different major tenants for Canal Logistics Brussels

The contract with Cameleon/Famous Clothes SA on the 1st phase of Canal Logistics situated in Neder-over-Heembeek (Brussels) concerns a lease contract for 7,192 m² of storage space (with an option till 10,585 m²) and 588 m² of offices. The lease contract started on 30/09/11. Cameleon is a major player in the private sale of clothes, accessories and decoration items in the Benelux, and will use this building as a logistics platform for the supply of their e-commerce operations in Belgium.

A second rental contract for phase 1 has been concluded with MSF Supply (central supply of Doctors Without Borders) for 13,547 m 2 of storage space and 1,250 m² of offices, with a possibility to extend to 17,097 m 2 . This contract starts on 01/04/12. With 70 employees, MSF Supply realised in 2011 a turnover of 50 million euro for almost 6,675 orders. Should both tenants use their extension possibility, phase 1 of Canal Logistics would be let for 100%.

For the phase 2 of Canal Logistics a rental contract was concluded at the end of 10/2011 with Caterpillar for the entire storage space of 20,664 m² and for half of the offices, namely 623 m². This agreement has entered into force on 01/11/11. The construction works for phase 2 have been completed at the beginning of July 2011 and the building has been acquired in December 2011 based on concrete agreements with the property developer made in 2007.

By this important letting of nearly the entire phase 2 of Canal Logistics the occupancy rate of phase 1 and 2, including the lettings to Cameleon and MSF Supply, respectively amounts to 78.1% and 94%.

Extension of a rental contract in logistics in Antwerp

The current lease contract for the logistics site of approximately 23,700 m² in Kontich (Antwerp) and its accompanying offices has been extended in 07/2011 with the current tenant. This lease contract, which originally expired at the end of 12/2011 has been extended anticipatively for a fixed lease period till the end of 12/2016. This lease contract represents 3.04% of the consolidated real estate portfolio (including development projects).

2. Consolidated key figures

Key figures real estate portfolio (a)	31/12/2011	31/12/2010
Fair value (1,000 euro) (b)	504,443	494,203
Investment value (1,000 euro) (c)	517,488	506,550
Rental yield based on fair value (d)	7.23%	7.41%
Rental yield based on investment value (d)	7.05%	7.22%
Occupancy rate (d)	92.57%	97.45%

(a) The real estate portfolio comprises as well the buildings in operation, as the development projects and the assets held for sale.

(b) Fair value: the investment value as defined by an independent real estate expert and of which the

transfer rights have been deducted. The fair value is the accounting value under IFRS.

(c) The investment value is the value as defined by an independent real estate expert

and of which the transfer rights have not yet been deducted.

(d) For the calculation of the rental yield and the occupancy rate, only the buildings in operation are taken into account.

The consolidated real estate portfolio of Leasinvest Real Estate on 31/12/11 is composed of 53 buildings with a total surface of 367,661 m², of which 37 buildings are located in Belgium (55% of the fair value compared to 54.9% the previous financial year) and 16 in Luxembourg (45% compared to 45.1% the previous financial year). The breakdown according to asset class has changes compared to the situation on 31/12/10: 54% offices (previously 56%), 26% logistics and 20% retail.

The increase of the real estate portfolio by 2% since 31/12/10 is the result of the take-over of the rental contract of Redevco Belgium in the retail park in Nossegem (Zaventem), the completion of the store let to Siemes in Diekirch, the takeover of phase 2 of Canal Logistics, the sale of the office building located in Zwijndrecht (Antwerp) and of negative (noncash) changes in the value of the portfolio (- 6.6 million euro on 31/12/2011 compared to 31/12/10: - 10.0 million euro) which mainly related to the Belgian portfolio, and more specifically to the building L'Oréal/The Crescent (- 3.1 million euro), the second phase of Canal Logistics (- 2.5 million euro) and the storage building Vierwinden (- 0.6 million euro).

Notwithstanding the weaker offices rental market in Belgium the average occupancy rate of our buildings keeps up well: on 31/12/11 it was 92.57% compared to 97.45% on 31/12/10. The occupancy rate for Belgium amounted to 87.7% (31/12/10: 96.35%) and for the Grand Duchy of Luxembourg 99.3% (31/12/10: 99%).

The office building located at the Erasmus Campus in Anderlecht, entirely let to L'Oréal till end 05/11 and renovated into a business center, The Crescent, has in the meanwhile already been let for nearly 50%. The phases 1 and 2 of Canal Logistics, of which the rental guarantee for phase 1 expired in 04/11 and for phase 2 in 12/11 have found 3 new tenants, namely Caméleon, Caterpillar and MSF Supply. The part of the Vierwinden that is vacant since the beginning of 2011 has not been let yet.

The rental yield of the real estate in operation based on the fair value amounts to 7.23% (compared to 7.41% per 31/12/10), and based on the investment value to 7.05% (compared to 7.22% per 31/12/10).

Key results	31/12/2011	31/12/2010
Net current result, group share (1,000 euro)	19,070	21,965
Net current result, group share, per share (euro) (1) (2)	4.77	5.50
Net result, group share (1,000 euro)	12,587	14,267
Net result, group share, per share (euro) (2)	3.15	3.57

(1) The net current result consists of the net result excluding the portfolio result and the changes in the

fair value of the ineffective hedges.

(2) The resultats per share are calculated based on the number of shares participating in the result of the period.

Due to the important divestments in 2010, not entirely compensated by the investments realized in 2011, the net current result in 2011 decreased to 19 million euro (4.77 euro per share) compared to 22 million euro (5.50 euro per share) and the net result in 2011 to 12.6 million euro compared to 14.3 million euro in 2010.

General key figures	31/12/2011	31/12/2010
Net asset value, group share (NAV) (1,000 euro)	261,815	275,408
Number of issued shares	4,012,832	4,012,832
Number of shares participating in the result of the period (1)	3,996,294	3,996,294
Debt ratio RD 07/12/10 (%)	47.29%	44.13%
Net asset value, group share, per share (euro) (2)
- based on fair value	65.51	68.92
- based on investment value	68.78	72.08
Closing price (euro)	64.99	63.36
Discount closing price compared to net asset value per share (fair value)	-1%	-8%
Gross dividend (euro)	4.15	4.10
Gross dividend yield (%)	6.39%	6.47%

(1) The number of shares participating in the result of the period corresponds to the number of issued shares minus the number of treasury shares (including LRE shares held by subsidiaries). This way, on 31/12/11 LRE held a consolidated total of 16,538 treasury shares in portfolio, or 0.41% (idem 31/12/10).

(3) The net asset value per share is calculated based on the number of shares participating in the result of the period.

3. Outlook financial year 2012

In the course of the first half of 2012 Leasinvest Real Estate expects to realize different investments, mainly in the Grand Duchy of Luxembourg. Except for unforeseen circumstances and unexpected capital losses on its current real estate portfolio and hedges, the company expects to realize a better net result and a comparable net current result than in 2011. The board of directors expects to be able to maintain the 2012 dividend in line with that of 2011.

4. Financial review

CONSOLIDATED RESULTS

(in 1,000 euro)	31/12/2011	31/12/2010
	(12 months)	(12 months)
Rental income	36,647	38,438
Writeback of lrase payments sold and discounted	0	0
Related rental expenses	1 8	-17
NET RENTAL INCOME	36,664	38,420
Recovery of property charges	8 2	251
Recovery income of charges and taxes normally payable	2,633	3,299
by tenants on let properties
Costs payable by tenants and borne by landlord for	-4	-242
rental damage and refurbishment at end of lease
Charges and taxes normally payable by tenants on let properties	-2,633	-3,299
Other related rental expenses and income	-869	1 9
PROPERTY RESULT	35,873	38,448
Technical costs	-1,189	-1,352
Commercial costs	-699	-655
Charges and taxes on unlet properties	-558	-490
Property management costs	-2,832	-2,853
Other property charges	-278	-347
PROPERTY CHARGES	-5,557	-5,698
PROPERTY OPERATING RESULT	30,316	32,750
Corporate operating charges	-1,789	-1,982
Other operating charges and income	-22	121
OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO	28,505	30,889
Result on disposal of investment properties	534	688
Changes in fair value of investment properties	-6,566	-9,978
OPERATING RESULT	22,473	21,599
Financial income	1,753	675
Intrest charges	-8,936	-7,972
Other financial charges	-2,036	-1,891
Changes in fair value of financial assets & liabilities	-449	1,592
FINANCIAL RESULT	-9,668	-7,596
PRE-TAX RESULT	12,805	14,003
Corporate taxes	-216	-206
Exit tax	0	470
TAXES	-216	264
NET RESULT	12,589	14,267
Attributable to
Minority intrests	2	1
Group shares	12,587	14,266

(1) Following the dispositions of the RD of 7 december 2010 the financial income for the financial year 2010 has been adjusted, as the changes in fair value of the non-current financial assets are currently presented as a separate item.

Regulated information - Under embargo till 17/02/12 – 7.30h

OTHER ELEMENTS OF THE GLOBAL RESULT
Impact on fair value of estimated transaction costs resulting from
hypothetical disposal of investment properties		882
Change in the effective part of the fair value of authorised cash flow hedging
instruments	-10,187	836
Change in the fair value of financial assets available for sale	392	485
Other elements of the global result	-9,795	2,203
Non controlling interets	0	0
Other elements of the global result – Group share	-9,795	2,203
GLOBAL RESULT	2,794	16,470
Non controlling interets	2	1
Global result – Group share	2,792	16,469

Comments on the income statement

The rental income amounted to 36.6 million euro compared to 38.4 million euro a year earlier. The decrease originates from the loss of rental income due to the sale in 2010 of a number of buildings in Merelbeke (Ghent) and Brussels.

The property charges remained stable (5.6 million euro in 2011 compared to 5.7 million euro in 2010). The property management costs comprise the management fee paid to the statutory manager of the sicafi (Leasinvest Real Estate Management SA), and the costs of the personnel of Leasinvest Services SA, a 100% subsidiary of Leasinvest Real Estate, responsible for the technical management of the buildings.

The corporate operating charges decreased by 10% to 1.8 million euro compared to 2 million euro in 2010.

The result on disposal of investment properties (0.5 million euro) consists of the realized capital gain on the sale of the office building located in het Alpha Campus Park in Zwijndrecht (Antwerp).

The changes in fair value of investment properties of – 6.6 million euro (- 10.0 million euro per 31/12/10) are the consequence of a lower valuation of the buildings by the external real estate expert. The value decreases (non-cash) mainly relate to the Belgian portfolio (- 9 million euro). In Luxembourg an increase was recorded (2.4 million euro).

In the financial result the negative changes in the fair value (non-cash) of the ineffective hedges (in accordance with IAS 39) for an amount of - 0.45 million euro (31/12/10: + 1.6 million euro) are recorded on the one hand, and premiums paid for new hedges of 0.8 million euro on the other hand. Making abstraction of the impact of IAS 39 and the premiums paid, the total financing cost of Leasinvest Real Estate remained equal at 8.45 million euro compared to 8.4 million euro in 2010. Thanks to the hedging policy applied at the end of 2010 and the beginning of 2011 the average funding cost (not taking into account the spread of the premiums of the hedges) has increased from 3.43% to 3.83%.

The net current result, or the net result excluding the portfolio result and the changes in fair value of the ineffective hedges, decreased by 13.6% from 22 million euro (or 5.50 euro per share) per 31/12/10 to 19 million euro (or 4.77 euro per share).

The net result, group share, amounted to 12.5 million euro compared to 14.3 million euro in 2010. In terms of net result per share this results in 3.15 euro for 31/12/11 compared to 3.57 euro per 31/12/10. This decrease is mainly the consequence of a temporary decrease of the rental income.

CONSOLIDATED BALANCE SHEET

			(in 1,000 euro)
--	--	--	-----------------

(in 1,000 euro)	31/12/2011	31/12/2010

ASSETS
NON-CURRENT ASSETS	526,647	498,838
Intangible assets	3	4
Investment properties, incl development projects	501,584	494,203
Other tangible assets	1,316	2 5
Non-current financial assets	23,744	4,607
CURRENT ASSETS	11,770	15,137
Assets held for sale	2,859	0
Current financial assets	1	5,435
Trade receivables	5,685	5,685
Tax receivables and other current assets	854	960
Cash and cash equivalents	1,998	2,840
Deferred charges and accrued income	373	215
TOTAL ASSETS	538,417	513,975

LIABILITIES
TOTAL SHAREHOLDERS' EQUITY	261,821	275,411
SHAREHOLDER'S EQUITY ATTRIBUTABLE TO	261,815	275,408
THE SHAREHOLDERS OF THE PARENT COMPANY
Capital	44,128	44,128
Share premium account	70,622	70,622
Treasury shares (-)
Reserves (1)	134,478	146,391
Result	12,587	14,266
NON CONTROLLING INTEREST	5	3
LIABILITIES	276,596	238,564
NON-CURRENT LIABILITIES	177,560	142,360
Provisions	0	0
Non-current financial debts	163,724	137,999
Other non-current financial liabilities	13,836	3,986
Other non-current liabilities	0	374
CURRENT LIABILITIES	99,036	96,204
Provisions	0	0
Current financial debts	84,222	81,837
Trade debts and other current debts	5,200	4,517
Other current liabilities	1,449	2,091
Accred charges and deferred income	8,165	7,759
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	538,417	513,975

(1) Following the dispositions of the RD of 7 December 2010 in the figures of the financial years 2011 and 2010 the "reserve for treasury shares", the "impact on fair value of estimated transfer rights and costs on hypothetical disposal of investment properties" and the "changes in fair value of financial assets and liabilities" have been recorded in the "Reserves".

Comments on the balance sheet

Investment properties, valued at fair value, increased by 2%, from 494.2 million euro to 501.6 million euro and is mainly the consequence of the take-over of the Redevco rental contract in Nossegem (+ 6.8 million euro) and capital expenditure (11.6 million euro) essentially in the storage building Canal Logistics, the business center "The Crescent" and a new retail shop in Diekirch. This increase was compensated by the sale of the office building in Zwijndrecht (Antwerp) for 7.7 million euro, the presentation of "Torenhof" under the assets held for sale (2.8 million euro) and the negative (non-cash) changes of the value estimated by the independent real estate expert (- 6.6 million euro or 1.3% of the portfolio), mainly relating to the Belgian portfolio, and more specifically to the building The Crescent (- 3.1 million euro) and the 2 nd phase of Canal Logistics (- 2.5 million euro).

The non current financial assets increased from 4.6 million euro to 23.7 million euro due to the increased participation in Retail Estates and consequently a reclassification of the entire participation under the heading non current financial assets instead of current financial assets.

Notwithstanding the realized net result of 12.6 million euro in the financial year 2011, shareholders' equity, group share (based on the fair value of the investment properties) decreases by 13.6 million euro following the negative changes in fair value of the financial assets and liabilities (mainly marked-to-market of hedges of - 10.2 million euro) and the distributed dividend. Shareholders' equity amounts to 261.8 million euro per 31/12/11, or 65.51 per share, compared to 275.4 million euro per 31/12/10, or 68.92 per share.

Due to the balance of the different investments and divestments the financial debts have increased from 220 million euro per 31/12/10 to 247.9 million euro per 31/12/11. Consequently the debt ratio has increased from 44.13% (per 31/12/10) to 47.29%.

5. Important events and transactions after the closing of the financial year 2011

No important events took place after the closing of the financial year 2011.

6. Appropriation of the result – dividend payment

The board of directors of the statutory manager proposes to the ordinary general shareholders' meeting to pay a gross dividend of 4.15 euro, and net, free of withholding tax, 3.2785 euro (based on a withholding tax of 21%).

Subject to the approval of the ordinary general shareholders' meeting of 21/05/12, dividends will be paid out on presentation of coupon nr. 13 as from 28/05/12 at the financial institutions: Bank Delen (main paying agent), ING Bank, Dexia Bank, BNP Paribas Fortis Bank and Bank Degroof.

The Ex-date is 23/05/12 and the Record date is 25/05/12.

7. Statement without reservation of the auditor

The auditor has confirmed that his audit of the consolidated annual accounts, established according to the International Financial Reporting Standards as adopted by the European Union, has been fully completed and has not shown any important corrections, which should be made to the accounting data, adopted from the consolidated accounts, and presented in this press release.

8. Financial calendar

Year results (31/12/11)	17/02/12
Annual financial report 2010 (official Dutch version online)	30/03/12
Interim statement Q1 (31/03/12)	11/05/12
Annual meeting of shareholders	21/05/12
Dividend payment	28/05/12
Ex-date	23/05/12
Record date	25/05/12
Half-year financial report according to IAS 34	23/08/12
Interim statement Q3 (30/09/12)	14/11/12
Year results (31/12/11)	15/02/13

9. Annual financial report

The annual financial report regarding the financial year 2011 in the form of a brochure, which comprises the annual accounts, the annual report and the report of the auditor, is available as from 30/03/12 (official Dutch version online) and can be obtained, on simple demand, at the following address:

Leasinvest Real Estate SCA

Schermersstraat 42 (administrative office), 2000 Antwerp T +32 3 238 98 77 - F +32 3 237 52 99 E investor.relations@leasinvest.be W www.leasinvest.be (brochure download under investors information, financial reports)

For more information, contact:

Leasinvest Real Estate Jean-Louis Appelmans CEO T: +32 3 238 98 77 E: jeanlouis.appelmans@leasinvest.be

Leasinvest Real Estate SCA

Real estate investment trust (sicafi) Leasinvest Real Estate SCA invests in high quality and well-located offices, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg. At present the real estate portfolio of Leasinvest comprises 53 buildings, of which 37 are located in Belgium and 16 in the Grand Duchy of Luxembourg, with a total real estate value of over 500 million euro. The sicafi is listed on Euronext Brussels and has a market capitalization of approximately 261 million euro (value on 16 February 2012).