Nextensa SA — Audit Report / Information 2023

Feb 21, 2024

ANNUAL RESULTS 2023

REGULATED INFORMATION

Brussels, 21 February 2024, 5:40 PM

ANNUAL RESULTS 2023

Highlights

INVESTMENT PROPERTIES

• Nextensa realises a higher rental income (+€ 3.1 M) in 2023 compared to 2022, i.e. a like-for-like rental growth of +12%.
• Property costs decrease by € 0.9 M due to higher occupancy rate.
• The revaluation of the investment properties at the end of 2023 has a limited negative impact of -0.9%.
• A profit of € 2.1 M was realised on the sale in early April 2023 of the Treesquare office building in Brussels.

DEVELOPMENT PROJECTS

• • Tour & Taxis: Higher development result (€ 4.4 M margin recognised) in Belgium due to successful sales at Tour & Taxis. Of the 346 apartments of Park Lane phase II 64% have already been sold or reserved.
• • Cloche d'Or: 100% letting of the delivered office buildings Emerald and White House. Slower sales of apartments and office buildings lead to a lower contribution in the 2023 result (contribution of € 13.8 M in 2023 vs contribution of€ 19,8 M in 2022).

OPERATIONAL EFFICIENCY

Decrease in overhead costs compared to the same period last year (€ -2.1 M), despite the inflationary environment.

ACTIVE FINANCIAL MANAGEMENT

The average cost of funding increases slightly from 2.18% to 2.67%, thanks to the hedging policy. At the end of 2023, the hedge ratio was 79% and a headroom existed of € 88 M on the existing credit lines.

NET RESULT

Net result (group share) amounts to € 24.49M or € 2.45 per share.

The lower result compared to the exceptional year 2022 (net result of € 71.3 M) is mainly due to:

• Limited activity in the institutional real estate market in 2023, where in 2022 profits were realised on sales of the Monnet and Titanium buildings (€ 28.3 M vs € 2.1 M in 2023).
• The negative revaluation of the financial assets and liabilities in 2023 (€ -7.3 M) versus the positive revaluation in 2022 (€ +15.6 M).

SALE OF THE RETAIL PROPERTY IN FOETZ

Sale in early February 2024 at fair value as at 31/12/2023 (€ 9.23 M).

DIVIDEND

Proposal to pay a gross dividend of €1.50 per share, which will be offered as an optional dividend if appropriate.

CLEAR CHOICE FOR A FOSSIL-FREE PORTFOLIO

In 2023, the decision was taken to align all new developments with the criteria of the EU taxonomy (within the climate mitigation objective) and an action plan was drawn up to move towards a fossil-free portfolio.

"After the exceptional result of 2022, which was boosted by one-off profits and positive revaluation results, Nextensa was still able to deliver a decent result in 2023 in difficult market conditions. The strength of our hybrid model is mainly demonstrated by the higher rental income combined with the lower property costs and the smooth sale of the apartments at Tour & Taxis. Our performance underlines the resilience of our business model and our ability to stand firm in changing circumstances. I wish to thank the Nextensa team and board of directors for their hard work over the past year."

MICHEL VAN GEYTE, CEO NEXTENSA

1. ACTIVITY REPORT

CLOCHE D'OR RESIDENTIAL LUXEMBOURG ⁴

BUILDING THE FUTURE AND RESHAPING CITIES

CITY

Tour & Taxis:

More than one million visitors in 2023 coming to work, shop, live and enjoy the many activities in this 5-minute neighbourhood.

• The occupancy rate of the offices and the retail spaces at the Tour & Taxis site continues to rise. For the retail spaces at Gare Maritime, new leases were signed in 2023 for a total of 4,045 sqm. This brings the occupancy rate of the retail at Gare Maritime to 72% at the end of 2023.

New leases for offices were furthermore signed for the Depot des Colis building, part of the Gare Maritime, for a total of 582 m². This brings the occupancy rate of the offices at Tour & Taxis to 92,19%.

• The higher occupancy is not only visible in terms of retail and office rentals, but also in terms of events on site, both in the Sheds and Gare Maritime, and in the conference centre, Maison de la Poste.

• Part of the Sheds, the site's event hall totalling 28,000 m², was given a permanent occupation in 2023 with the signing of lease agreements with the Tour & Taxis padel club (2,380 m²), with exhibition organiser Tempora (2,700 m²) and with the indoor karting Battle Kart (1,780 m²). Discussions are also ongoing for an additional permanent occupation of 1,650 m². Some 9,500 m² of the Sheds will remain available for temporary events.
• In the course of 2024, another 6,500 m² of available office space will be added to the site with the completion of the Hôtel des Douanes. This building, which originally served as the administrative centre for customs matters at the Tour & Taxis site, will once again become a showcase of sustainability. The renovation focuses on preserving the individuality of the historic building and installing sustainable techniques such as a geothermal system and solar panels. The renovation is aligned with the EU taxonomy criteria. The project has also been nominated for the RES (Real Estate Society) Awards 2023 in the 'Commercial Development' category. The commercialisation of this building is ongoing.
• Nextensa submitted the permit application for the Lake Side project, the final phase of urban development on the Tour & Taxis site, at the end of Q1 2023. More specifically, it involves the development of some 140,000 m², with a largely residential programme, of some 800 new homes, as well as 37,000 m² of offices, 2,800 m² of shops and 3,800 m² of public facilities. The new district will be completely free of fossil fuels, while also aiming for a lower ecological footprint through a well-founded choice of building materials. Lake Side will thus become one of the most sustainable neighbourhoods in Brussels. For the office buildings a BREEAM Outstanding certification is aimed for, the highest level of an internationally recognised quality label promoting sustainable construction.

The completeness certificate for this permit application was obtained at the end of September. The environmental impact study is currently ongoing. If everything goes according to plan, the works could start in mid-2025, ensuring the continuity of the development activities at Tour & Taxis. Until mid-2025, Nextensa will complete the Park Lane residential area, which comprises some 800 residential units, with the second phase currently under construction.

• Sales of the second phase of the Park Lane project, comprising 346 apartments, continue to run smoothly. At the end of 2023, the Imperial building was sold to Quares Residential Investment, bringing the number of apartments sold or reserved to 64%. The site is on track to start the first deliveries by the end of 2024.

HÔTEL DES DOUANES

LAKE SIDE

CITY

The further development of an urban district in Luxembourg City in joint venture with Luxembourg developer Promobe.

OFFICE BUILDINGS

Project	Status	Details	Letting
Darwin II office building	Delivered March 2022 - sold end October 2023 to Luxembourg state following exercise of pur chase option	Approx. 5,000 m²: 6 above-ground and 2 underground floors	100% leased to Luxembourg state, with the Ministry of Health as main user
Emerald office building	Delivered Q4 2023	Approx. 7,000 m²: 6 above-ground and 1 underground floor	100% let: Intertrust and Stibbe - LOI signed for last 2 available floors
White House office building	Delivered Q1 2024	Approx. 7,000 m²: 6 above-ground and 1 underground floor	100% leased: Intertrust
Lofthouse office building	In planning phase	Approx. 5,000 m²: 5 above-ground and 1 underground floor	Discussions ongoing with potential tenants
Stairs office building	In planning phase	Approx. 8,500 m²: 10 above ground and 1 underground floor	Discussions ongoing with potential tenants

RESIDENTIAL DEVELOPMENTS

Project	Status	Details	Letting
D-Nord	Delivered in Q1 2023	194 apartments	186/194 apartments reserved/sold
D5-D10	Under construction - delivery of first phase expected in Q2 2024	185 apartments (117 apartments under construction)	90/117 apartments reserved/sold
B&B HOTELS	Under construction - delivery expected in Q2 2025	Hotel of approx. 4,500 sqm with 150 rooms - lease signed with B&B HOTELS in 2022
D-Tours	In planning phase	Approx. 374 apartments

The developments at Cloche d'Or of both office and residential projects make a positive contribution of € 13,8 M to the 2023 results.

INVESTING IN THE FUTURE

• Montimmo was rebranded as 'Hygge'. Located on Avenue Monterey 35 in Luxembourg City and built in 2009, the office building returned to the market in 2023 with a new identity after a short period of renovation and upgrading. The building consists of a total area of 1,600 m² spread over 7 floors and 15 underground parking spaces. Five floors have already been let (total approx. 1,068 sqm). Discussions are ongoing for the letting of the remaining floors.
• The Moonar site, located near Luxembourg airport, is undergoing extensive redevelopment to make these buildings modern and future-proof. The office park consists of 5 buildings (about 21,000 m² in total), of which buildings 'D' (3,546 m²) and 'B' (3,620 m²) were delivered in 2023. The redevelopment of the remaining buildings will be completed in the course of 2024.

Nextensa aims to make this site attractive and vibrant by providing all kinds of facilities, such as a library, a gym, a coffee corner, several meeting rooms and by appointing a community manager.

Already 69% of the available surface (about 21,500 m²) has been leased at a prime rent of EUR 32/month/m², which is new for the Luxembourg Airport District and represents a significant increase compared to the previous rent of EUR 24/month/m².

• At the end of August, Nextensa acquired the leasehold rights of the office building located at 24 Rue Montoyer in Brussels from Fedustria, the sectoral federation of the Belgian textile, woodworking and furniture industries.

The office building is located in the Leopold district, one of the most sought-after office locations in Brussels, just a few metres from the Monteco building and is currently leased to several European associations.

Nextensa plans to develop an carbon-neutral wooden office building of some 2,800 sqm, called 'TreeMont', on this site. The permit application was submitted at the end of September and has in the meantime been declared complete. Through the use of energy-efficient systems, preservation and reuse of part of the existing structure and a new wooden structure, the building aims to achieve a 'BREEAM excellent' certification upon completion of the works and to be aligned with the criteria of the EU taxonomy.

• The permit application for the new building 'MonTree', the redevelopment of the office building located at 20 Avenue Monterey together with the building acquired in 2023 located at 18 Avenue Monterey in Luxembourg City is in full preparation. Current tenant CVC will vacate the Monterey 20 building at the end of Q2 2024, after which both buildings will also be redeveloped into one new CO2-neutral office building in wood following the example of Monteco and Treemont in Brussels.

TOWARDS A MORE SUSTAINABLE FUTURE

• The Monteco office building won the public's prize in the Belgian edition of the Green Solutions Awards 2022-2023 in the 'Building' category. The Green Solutions Awards are organised annually by the international trade organisation Construction 21 with the aim of applying innovation and sustainability on a large scale. In addition, the building was also nominated for the MIPIM awards 2024 in the Best Office & Business Project category.
• • Renewable energy in the investment portfolio: by 2023, the total number of solar panels on the roofs was increased to 26,904 (+ 2,311 panels in 2023), accounting for 8,898 kWp of installed capacity on the roofs of the entire investment portfolio. An average of 7,500 MWh of green electricity will be generated annually, the equivalent consumption of nearly 2,200 households.
• In addition, a 425-kWp (780-panel) mobile solar farm was installed at Tour & Taxis to power the site of Park Lane phase II, the residential neighbourhood at Tour & Taxis currently under construction, as much as possible with locally generated green electricity.
• Since 1 May 2023, apartment residents on Park Lane can also enjoy locally generated electricity by joining a new energy community. The creation of the Energy Community at Tour & Taxis is a pilot project with the aim of offering the production surplus from the solar panels installed on neighbouring buildings to neighbourhood consumers at an advantageous rate.
• • Additional charging infrastructure: 153 additional charging points were installed in 2023 to further accelerate the transition to electrified mobility. This brings the total in the Nextensa portfolio to 279 charging points. In Belgium, 537 MWh was charged at these charging points, or a reduction of 715.5 tonnes of CO2.

LUXEMBOURG IS KEY

The main part of Nextensa's business consists of investment, rental and development activities in Luxembourg.

• The occupancy rate of the offices in Luxembourg is rising, partly due to new leases signed for buildings such as Hygge and High 5.
• Visitor numbers at Knauf Shopping centres rose sharply in 2023 compared to 2022. The Knauf Shopping in Pommerloch welcomed more than 2.4 M visitors, which is an all-time high in the centre's history. The Knauf Shopping in Schmiede saw an increase in visitor numbers of 10.32% and also welcomed more than 2 M visitors.

Underlying this success are Nextensa's investments, the attractiveness and quality of the retail offered and the management and animation of the centres.

The Knauf Shopping Schmiede opened the new catering concept, consisting of a Grand Café and a Food Village, at the end of the summer. The additional rental income resulting from the 8 new shops in the extension of about 8,500 m², which was completed last year, is increasingly noticeable in these results (+10%).

The Knauf Shopping Pommerloch is 100% let.

STABLE DIVERSIFICATION IN AUSTRIA

The Austrian investment portfolio includes 5 retail parks, whose occupancy rate remains consistently at 100%.

• In 2023, the renovation of the Vösendorf 16 retail park was completed. In the last quarter of 2023, the last tenants moved into the renovated spaces. This had a positive impact on the Austrian rental income.
• Several lease renewals and new leases keep the occupancy rate in Austria at 100%.

2. EVENTS AFTER THE END OF THE FINANCIAL YEAR 2023

Retail property Foetz

Early February 2024 Nextensa sold its retail property of about 4,200 m² on rue du Brill in Foetz, Luxembourg to a local investor for a price of € 9.23 M. The buyer also owns the adjacent Cora hypermarket, which is located on the same retail site. The property is currently leased to clothing retailer Adler until February 2032. The sale price is in line with the valuation, as recorded on 31/12.

The sale is part of Nextensa's planned divestment programme.

3. CONSOLIDATED KEY FIGURES

KEY FIGURES INVESTMENT PORTFOLIO	31/12/2023	31/12/2022
Fair value investment portfolio (€ 1,000)	1,298,074	1,278,716
Fair value investment properties, incl. participation Retail Estates (€ 1,000)	1,385,369	1,362,499
Rental yield based on fair value	5.74%	5.30%

KEY FIGURES BALANCE SHEET	31/12/2023	31/12/2022
Net asset value group share (€ 1,000)	834,048	838,798
Net asset value group share per share	83.39	83.86
Financial debt ratio (financial debts/total assets)	44.80%	42.56%
Net financial debt position	786,820	721,516
Average duration credit lines (years) - investment portfolio	2.31	2.85
Average funding cost - investment portfolio	2.67%	2.18%
Average duration hedges (years)	2.95	3.52
Hedge ratio (investment portfolio)	79%	74%

KEY FIGURES INCOME STATEMENT	31/12/2023	31/12/2022
Rental income (€ 1,000)	70,522	67,400
Result development projects (€ 1,000)	18,136	22,243
Net result group share (€ 1,000)	24,.492	71,310
Net result group share per share (number of shares at closing date)	2.45	7.13

As the real estate market largely came to a standstill during 2023, fewer buildings could be sold than desired. This leads to an increase in the net debt position and related financial debt ratio. However, the sale of the building in Foetz (Luxembourg) will again slightly reduce this debt position. The available headroom still amounted to € 88 M on 31 December 2023.

The average funding cost slightly increased from 2.18% at the end of 2022 to 2.67% at the end of 2023. Although interest rates continued to rise significantly during 2023, hedging with derivatives ensures that this increase only has a limited impact on the average funding cost. Due to the active management of the derivatives portfolio, the hedging ratio increased to 79% at 31 December 2023 with an average remaining duration of 2.95 years.

The equity (part of the group) amounts to €834M, or €83.39/ share. The closing price of €48.85 on 31 December 2023 thus implies a 41% discount.

The value of investment properties increased compared to last year despite the sale of the Treesquare building during 2023. Indeed, investments were made through the acquisition of the buildings Montoyer 24 in Brussels (the future "TreeMont") and Monterey 18 in Luxembourg CBD (the future "MonTree"). In addition, further investments were made in the renovation of the Knauf shopping centre at Schmiede and in the conversion of the old EBBC office park at Luxembourg Airport into the new Moonar project.

4. CONSOLIDATED FINANCIAL STATEMENTS

TOUR & TAXIS, PARK LANE PHASE II BELGIUM ¹⁶

Consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (€ 1,000)	31/12/2023	31/12/2022		%
Net rental income from investment properties	70,522	67,400	3,122	5%
Real estate charges	-13,189	-14,079	890	-6%
Result on disposal of investment properties	2,074	28,346	-26,272	-93%
Changes in the fair value of investment properties	-11,202	-11,620	418	-4%
Other charges/income related to investment properties	778	1.598	-820	-105%
OPERATIONAL RESULT INVESTMENT PROPERTIES	48,982	71,645	-22,662	-32%
Revenue from development projects	51,024	65,215	-14,191	-22%
Costs of development projects	-46,650	-62,793	16,143	-26%
Other results of development projects	4,858	3,383	1,475	44%
Share of profit/loss of investees accounted for using the equity method	8,904	16,437	-7,533	-46%
OPERATING RESULT OF DEVELOPMENT PROJECTS	18,136	22,243	-4,107	-18%
RESULT OF INVESTMENT PROPERTIES & DEVELOPMENT PROJECTS	67,118	93,888	-26,769	-29%
Corporate operating charges	-11,255	-13,718	2,462	-18%
Other operating charges and income	-672	-265	-407	153%
OPERATIONAL RESULT	55,191	79,905	-24,714	-31%
Financial income	11,080	9,609	1,471	15%
Net interest charges and other financial charges	-25,252	-18,267	-6,985	38%
Changes in fair value of financial assets and liabilities	-7,286	15,582	-22,868	-147%
FINANCIAL RESULT	-21,458	6,924	-28,382	-410%
RESULT BEFORE TAXES	33,733	86,828	-53,096	-61%
Deferred taxes	5,771	-9,548	15,320	-160%
Corporate taxes	-15,300	-6,073	-9,228	152%
TAXES	-9,529	-15,621	6,092	-39%
NET RESULT	24,204	71,208	-47,004	-66%
Minority interests	-288	-102	-187	183%
NET RESULT (GROUP SHARE)	24,492	71,310	-46,817	-66%

Consolidated balance sheet

ASSETS (€ 1,000)	31/12/2023	31/12/2022
NON-CURRENT ASSETS	1,486,064	1,471,663
Intangible fixed assets	624	855
Investment properties	1,288,844	1,278,716
Other tangible assets	8,.697	6,719
Investees accounted for using the equity method	69,706	59,109
Trade receivables and other non-current assets	6,250	6,250
Non-current financial assets	108,194	116,761
Finance lease receivables	0	1,660
Deferred tax assets	3,750	1,592
CURRENT ASSETS	295.225	296,738
Assets held for sale	9,230	0
Inventories	102,079	98,257
Work in progress	75,118	85,047
Finance lease receivables	0	0
Trade receivables	22,777	15,371
Tax receivables and other current assets	71,636	64,182
Cash and cash equivalents	11,129	31,106
Deferred charges and accrued income	3,257	2,774
TOTAL ASSETS	1,781,289	1,768,401

LIABILITIES (€ 1,000)	31/12/2023	31/12/2022
TOTAL SHAREHOLDERS' EQUITY	844,516	849,516
I. SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY	834,048	838,798
Capital	109,997	109,997
Share premium account	442,803	442,803
Purchase of treasury shares	-4,608	-4,608
Reserves	261,085	219,014
Exchange rate differences	280	283
Net result of the financial year	24,492	71,310
II. MINORITY INTERESTS	10,468	10,718
LIABILITIES	936,773	918,885
I. NON-CURRENT LIABILITIES	618,568	693,493
Provisions	2,264	1,822
Non-current financial debts	562,159	634,932
Credit institutions	457,345	491,538
Other	102,497	141,147
Lease liabilities (IFRS 16)	2,318	2,247
Other non-current financial liabilities	436	23
Other non-current liabilities	0	0
Deferred tax liabilities	53,709	56,716
II. CURRENT LIABILITIES	318,204	225,393
Provisions	350	1,158
Current financial debts	235,790	117,668
Credit institutions	109,493	44,500
Other	126,297	73,168
Other current financial liabilities	0	0
Trade debts and other current debts	39,565	55,152
Trade payables	26,046	34,841
Tax payables	13,519	20,311
Other current liabilities	11,570	14,570
Deferred charges and accrued income	30,930	36,846
TOTAL EQUITY AND LIABILITIES	1,781,289	1,768,401
FINANCIAL DEBT RATIO (financial debts / total assets)	44.80%	42.56%

Consolidated cash flow statement

CONSOLIDATED CASH FLOW STATEMENT (€ 1,000)	31/12/2023
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FIN. YEAR	31,106
1. CASH FLOW FROM OPERATING ACTIVITIES	6,043
Net result	24,453
Share in the result of associated companies and joint ventures	-8,904
Adjustment of the profit for non-cash and non-operating elements	20,596
Depreciation, amortisation, impairment losses and taxes	10,585
Depreciation, amortisation and impairment of intangible assets and property, plant and equipment (+/-)	1,060
Impairment of current assets (-)	-3
Taxes	14,622
Other non-cash elements	-3,837
Changes in fair value of investment properties (+/-)	-11,202
Distribution of gratuities (+/-)
Increase (+) / Decrease (-) in fair value of financial assets and liabilities	7,286
Other non-recurrent transactions	80
Non-operating elements	13,847
Gains on disposals of non-current assets	-2,074
Dividends received	-6,621
Write-back of financial income and financial charges	22,542
Change in working capital requirements	-22,663
Movements in asset items	-4,677
Movement of liabilities	-17,985
Movements on provisions (+/-)	0
Tax paid	-12,532
2. CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES	-31,292
Investments
Investment properties	-37,341
Development projects	-34,677
Intangible assets and property, plant & equipment	-2,806
Non-current financial assets	0
Divestments	43,532

CONSOLIDATED CASH FLOW STATEMENT (€ 1,000)	31/12/2023
3. CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES	5,270
Change in financial liabilities and financial debts
Increase (+) / Decrease (-) of financial debts	45,279
Increase (+) / Decrease (-) of other financial liabilities	-1,749
Financial income received	4,459
Financial charges paid	-23,503
Dividends received	6,621
Change in other liabilities
Increase (+) / Decrease (-) in other liabilities	0
Changes in equity
Changes in capital and issue premiums (+/-)	0
Costs of capital increases	0
Increase (+) / Decrease (-) in own shares	0
Dividend of the previous financial year	-25,836
Cash and cash equivalents before impact of fluctuations in quoted prices	11,128
Cash and cash equivalents acquired by means of business combinations	0
Impact of fluctuations in quoted prices on cash and cash equivalents	0
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR	11,128

The net rental income from the investment properties is € 3.1 M higher compared to last year, despite the sale of several properties. The indexation and the increased occupancy resulted in a like-for-like rental growth of 12% compared to 2022. In addition, the increased number of events at the Tour & Taxis site generate positive side effects such as higher revenue of the parking and higher sales for the Food Market at the Gare Maritime.

In addition, property costs decreased due to the increased occupancy rate of the properties but also because some maintenance-intensive buildings were sold in 2022.

The sale of the Treesquare building generated a profit of € 2.1 M. In addition, a negative revaluation of € 11.2 M was recorded on the existing real estate portfolio, corresponding to -0.9% on fair value at 31/12/2023. In early February 2024, the Foetz building was sold at a value in line with the fair value on 31/12/2023.

Other costs and revenues of the investment properties mainly include the net revenues from solar panels. These were lower than in 2022 as electricity prices fell back to more normal levels in 2023 after the extremely high prices in 2022.

The operating result of the investment properties thus amounts to € 49.0 M.

The sum of the lines "Revenue from development projects" and "Costs of development projects" reflect the contribution (€4.4 M) of the Belgian development projects, which in 2023 mainly consisted of phase II of the Park Lane project at Tour & Taxis. In addition, some units from phase I and 2 more retail units from the Riva project (on the right bank of the canal opposite the T&T site) were also sold.

The lines 'Other results of development projects' and 'Share of profit/loss of investees accounted for using the equity method' largely cover the contribution from Cloche d'Or (€ 13.8 M). Both office buildings Emerald and White House are now 100% let. Construction works on the B&B HOTELS project have started, with an expected delivery date in mid-2025. Construction work on the D5-D10 residential project is on schedule and more than half of the apartments have already been sold or reserved.

The company's overhead costs are significantly lower (-18%) compared to 2022, despite inflation.

The financial income is € 1.5 M higher compared to last year, on the one hand due to higher working capital requirements of the joint venture on Cloche d'Or in Luxembourg and on the other hand due to a higher dividend received from Retail Estates. The financial costs are €7 M higher than last year due to the generally rising interest rate environment. However, this increase was restrained by the derivatives portfolio, which ensures that the average financing cost associated with the investment properties increases only slightly from 2.18% last year to 2.67% over 2023.

The changes in fair value of the financial assets and liabilities are negative and amount to € -7.3 M. On the one hand, the derivatives portfolio was revalued downwards by € 10.6 M. On the other hand, there was a positive revaluation on the stake in Retail Estates with an amount of €3.5 M. This stake has to be valued every balance sheet date at the Retail Estates share price on that date.

The result before tax is thus € 33.7 M. After deduction of taxes of € 9.5 M, this results in a net result of € 24.2 M, or € 24.5 M net result (group share). In terms of result per share, this corresponds to € 2.45 on the total number of shares and to € 2.46 per share entitled to dividend taking into account the 65,000 treasury shares held by Nextensa.

STATEMENT FROM THE STATUTORY AUDITOR

The statutory auditor Ernst & Young Bedrijfsrevisoren, represented by Mr Christophe Boschmans, has confirmed that its audit of the consolidated financial statements, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, has been substantially completed and that it has not revealed material adjustments which would have to be made to the accounting data extracted from the consolidated financial statements and included in this press release.

5. DIVIDEND

MONTREE LUXEMBOURG ²³ The board of directors proposes to the ordinary general meeting of shareholders to distribute a dividend to the shares entitled to dividends of gross €1.50 and net, free of withholding tax of 30%, €1.05 per share.

The board of directors plans to offer this dividend as an optional dividend, which will allow Nextensa to react to new opportunities in the future. The final decision on the timing of the payment and the terms and modalities of the optional dividend will be taken by the board of directors further to the shareholders' meeting of 21 May 2024 in the light of the market conditions prevailing at that time.

6. OUTLOOK 2024

TREEMONT BELGIUM ²⁵ In 2023, macroeconomic conditions and the geopolitical environment were challenging, resulting in a sharp rise in interest rates, tighter credit conditions, higher financing costs and a significant drop in transaction volume. Whereas 2023 was characterised by this total standstill, we think that in 2024 the first signs of cautious recovery will be felt.

Nextensa's goal in 2024 remains to further reduce its debt ratio by selling some of its non-strategic investment properties. This sale programme is under preparation and will be carried out under the right conditions.

In any case, Nextensa will in 2024 and in subsequent years be fully dedicated to making its investments and developments more sustainable. In 2023, the decision was taken to align all new developments with the criteria of the EU taxonomy (within the climate mitigation objective) and an action plan was drawn up to move towards a fossil-free portfolio. This will continue to be worked on in 2024.

The coming year already has a lot planned in terms of (re) developments. The developments at the Cloche d'Or and at Tour & Taxis are progressing steadily, the redevelopment of the Moonar project will be finished and the redevelopments of office buildings such as TreeMont and MonTree will be started. In addition, we are already looking to the farther future: the Lake Side project is in full preparation and new projects are also being planned at Cloche d'Or.

In terms of residential developments in Luxembourg, the fiscal measures announced by the new Luxembourg government to support the residential market send a good signal. These measures should help turn around the slowing residential market.

As for the office market in Belgium and Luxembourg, we see that the letting of sustainable offices at prime locations continues to do well. Companies continue to focus on prime offices to provide employees with a positive work experience and to meet the stricter sustainability standards. The goal in 2024 remains to maintain high occupancy rates for the investment portfolio and to continue offering our tenants a pleasant rental experience.

Due to the structural imbalance between demand and qualitative supply of residential real estate and prime offices in both Belgium and Luxembourg, Nextensa is convinced that its strategy, as a developer and investor, is the right one. The investment properties have helped absorb the slowdown in development activities in 2023.

ABOUT NEXTENSA

Nextensa is a mixed-use real estate investor and developer.

The company's investment portfolio is divided between the Grand Duchy of Luxembourg (43%), Belgium (42%) and Austria (15%); its total value as at 31/12/2023 was approximately € 1.3 billion.

As a developer, Nextensa is primarily active in shaping large urban developments. At Tour & Taxis (development of over 350,000 sqm) in Brussels, Nextensa is building a mixed real estate portfolio consisting of a revaluation of iconic buildings and new constructions. In Luxembourg (Cloche d'Or), it is working in partnership on a major urban extension of more than 400,000 sqm consisting of offices, retail and residential buildings.

The company is listed on Euronext Brussels and has a market capitalisation of € 488.6 M (value 31/12/2023).

For more information

Tim Rens | Chief Financial Officer

Gare Maritime, Rue Picard 11, B505, 1000 Brussels +32 2 882 10 08 | investor.relations@nextensa.eu

www.nextensa.eu

ANNEX

ALTERNATIVE PERFORMANCE MEASURES

NET RESULT - GROUP SHARE (AMOUNT PER SHARE)	31/12/2023	31/12/2022
Net Result - group share (€ 1,000)	24,492	71,310
Number of registered shares in circulation at closing date	10,002,102	10,002,102
Net result - group share per number of shares at closing date	2.45	7.13
Number of dividend bearing shares in circulation at closing date	9,937,102	9,937,102
Net result - group share per number of dividend bearing shares at closing date	2.46	7.18

NET ASSET VALUE BASED ON FAIR VALUE (AMOUNT PER SHARE)	31/12/2023	31/12/2022
Equity attributable to the shareholders of the parent company (€ 1,000)	834,048	838,798
Number of registered shares in circulation at closing date	10,002,102	10,002,102
Net asset value (RW) group share per number of shares at closing date	83.39	83.86

NET ASSET VALUE BASED ON INVESTMENT VALUE (AMOUNT PER SHARE)	31/12/2023	31/12/2022
Equity attributable to the shareholders of the parent company (€ 1,000)	834,048	838,798
Investment value of the investment properties at 31/12 (€ 1,000)	1,323,221	1,294,968
Fair value of the investment properties at 31/12 (€ 1,000)	1,298,074	1,278,716
Difference investment value - fair value at 31/12 (€ 1,000)	25,147	16,252
TOTAL	859,195	855,050
Number of registered shares in circulation at closing date	10,002,102	10,002,102
Net asset value (IV) group share per number of shares at closing date	85.90	85.49

AVERAGE FUNDING COST IN %	31/12/2023	31/12/2022
Interest costs on an annual basis (€ 1,000)	-17,756	-16,492
Commitment fees on an annual basis (€ 1,000)	-383	-519
Interest paid incl. commitment fees on an annual basis (€ 1,000)	-18,138	-17,011
Average weighted outstanding debt (€ 1,000)	678,820	783,217
Average funding cost in %	2.67%	2.18%

FINANCIAL DEBT RATIO IN %	31/12/2023	31/12/2022
Financial debts	797,949	752,600
Total assets	1,781,289	1,768,401
Financial debt ratio in %	44.80%	42.56%