Nextensa SA — Interim / Quarterly Report 2020

Aug 19, 2020

Half-year financial report 2020

Regulated information – Under embargo till 19/08/2020 at 18.30h

MISSION

"Leasinvest is an out-of-the-box real estate investor driven by a diverse team of passionate professionals, managing a high-quality portfolio in sustainable markets. By creating inspiring environments, we generate added value and consistent returns for all of our stakeholders."

COMPANY PROFILE

Leasinvest Real Estate SCA is a public regulated real estate company (BE-REIT) that invests in high quality and well-located retail and office buildings in the Grand Duchy of Luxembourg, in Belgium and in Austria.

At present the total fair value of the directly held real estate portfolio of Leasinvest amounts to € 1.11 billion spread across the Grand Duchy of Luxembourg (53%), Belgium (31%) and Austria (16%).

Moreover, Leasinvest is one of the largest real estate investors in the Grand Duchy of Luxembourg.

The real estate portfolio consists of offices (46%), retail (48%) and logistics (6%).

The public RREC is listed on Euronext Brussels and has a market capitalization of approximately € 480 million (value 18 August 2020).

ALTERNATIVE PERFORMANCE MEASURES

Following the entry into force of the 'ESMA directives on Alternative Performance Measures' of the European Securities and Market Authority (ESMA), the Alternative Performance Measures (APM) in this half-year financial report are indicated by the symbol (*). For the definition and the detailed calculation of the Alternative Performance Measures used, we refer to page 63 et seq of this half-year financial report.

CONTENTS

Statement of responsible persons	4
Key figures	8
Interim annual report	11
Leasinvest Real Estate on the stock exchange	26
Real estate report
Market information	30
Composition and analysis of the real estate portfolio	34
Conclusions of the real estate expert	39
Condensed financial statements	41
Report of the auditor	61
Annexes	63

STATEMENT IN ACCORDANCE WITH ARTICLE 13, § 2, 3° OF THE RD OF 14 NOVEMBER 2007

Leasinvest Real Estate Management SA, statutory manager of the Company, represented by Mr Michel Van Geyte, permanent representative, declares that, to its knowledge:

(i) the condensed financial statements, established in accordance with the applicable accounting standards for annual accounts, present a fair view of the assets, financial situation and the results of the Company and those included in the consolidation;

(ii) the interim management report presents a fair overview of the development, the results and the position of the Company and the companies included in the consolidation, and also comprises a description of the main risks and uncertainties which they are confronted with.

MICHEL VAN GEYTE Permanent representative Leasinvest Real Estate Management SA Schermersstraat 42 BE-2000 Antwerp Statutory manager

PREFACE OF THE CEO, MICHEL VAN GEYTE

In our update of 30 March 2020 on the impact of Covid-19 on our operations, we already gave an overview of the main consequences on the company's results. The figures per 30/06/2020 confirm that trend.

Leasinvest has always employed a diversification strategy with investing in different asset classes and in different countries. As a result, the effect of the Covid-19 pandemic was still limited in the first half of the year.

Austria had a short lockdown of 6 weeks, the office buildings in Luxembourg and also in Brussels have maintained themselves relatively well, except for the catering part of Tour&Taxis. The retail part in Austria, Belgium and in a part of Luxembourg is located in the retail parks sector that have shown the most resilience during the pandemic, partly because funshopping (inner city and shopping centers) has become runshopping (retail parks). The Knauf shopping centers in Luxembourg suffered the most during and after the lockdown partly because of the closure of the borders with Belgium.

The decrease in the share price of Retail Estates, where Leasinvest owns 10% of the capital, has had a decisive effect on the evolution of the debt ratio, which has now increased to 58%.

Given the strong diversification of Leasinvest's real estate portfolio, we can summarize the country-by-country impact of the Covid-19 measures taken, as follows on the date of publication of this report:

AUSTRIA

The assets in Austria are mainly retail. Just as it was the case in Belgium, all necessary stores, such as supermarkets, pharmacies, etc. remained open at all times (31% of our Austrian rental turnover). Since 14 April the DIY and smaller shops (below 400 m² ) were allowed to open, in their turn representing 24%. The other stores were opened on 1 May, and since 15 May the catering sector could open as last on the list. The footfall in Frunpark Asten in March and April reached 65% on average compared to 2019 while it even exceeded by 6% the figures reached in May 2019; in June we recorded the same level as in June 2019.

The most recent strengthening of the measures in Austria mainly concerns the reintroduction of the obligation to wear face masks in shops, consequently, without any impact on our activities.

GRAND DUCHY OF LUXEMBOURG

The impact on our Luxembourg real estate portfolio is mainly situated in the retail segment, of which however more than 30% concerns food distribution (incl. animal foods) and DIY. As it was the case in Belgium, DIY stores could reopen as of 20 April, representing 19% of the Luxembourg rental retail turnover. The rest of the shops could also reopen as of 11 May, and catering finally on 29 May. However, the country borders remained closed implying that mainly our Knauf shopping centers located in the North close to the border did not reach cruising speed until 30 May, date at which an agreement was communicated between the Belgian and Luxembourg ministers of foreign affairs. Since that date, commercial activities fully resumed, and both our shopping centers recorded a decent footfall with an increase in the average shopping basket and less frequent visits.

The most recent measures in Luxembourg are higher fines for non-respect of the measures, thus also without any impact on Leasinvest's activities.

BELGIUM

Our real estate portfolio in Belgium mainly comprises office buildings, less impacted by the lockdown measures, at the exception of the retail part on the ground floor of the Royal Depot on Tour&Taxis.

The impact is the most important on the valuation of the 10.7% participation that Leasinvest holds in Retail Estates, a BE-REIT (GVV/SIR), 100% invested in retail parks in Belgium and the Netherlands. This participation is valued at the closing prices of each quarter, which led to a reduction in value of € 32.4 million per 30/06/2020. In an update of 17/07/2020 Retail Estates confirmed a faster than expected resuming of retail activities in the periphery, the core segment in which its assets are located, and the finalization of agreements with practically all of its tenants. Potentially, the current strengthened government measures can have another negative impact on shops, but also in this case we expect retail parks to perform better than shopping centers or innercity centers where funshopping is currently replaced by runshopping.

As far as the impact on the rental result is concerned, our teams have made every effort to answer the questions of our tenants as quickly as possible and individually. The negotiations have largely been concluded and allow us to determine the impact of Covid-19 on the first half of the year's rental result, which has been limited, but we must remain cautious about the impact of the already emerging second wave.

Despite this challenging period, our strong IT infrastructure has ensured that we did not encounter any inconvenience at an operating level.

Our teams (commercial, finance, legal, property) immediately made every effort to ensure the continuity of our activities and those of our tenants: security measures were implemented in all buildings, questions from tenants were answered as quickly as possible and individually, and our financial department followed up the financial situation of the company at any time.

Furthermore, we also wish to emphasize that Leasinvest Real Estate has solid fixed shareholders, a qualitative real estate portfolio, confirmed and sufficient lines of credit (headroom of approximately € 65 million (including cash) on 30 June 2020) and good relations with its banks to be able to bridge this period.

KEY FIGURES

KEY FIGURES REAL ESTATE PORTFOLIO (1)	30/06/2020	31/12/2019
Fair value real estate portfolio (€ 1,000) (2)	1 113 402	1 110 249
Fair value investment properties, incl. participation Retail Estates (€ 1,000) (2)	1 194 346	1 223 625
Investment value investment properties (€ 1,000) (3)	1 137 058	1 133 836
Rental yield based on fair value (4) (5)	5.90%	5.84%
Rental yield based on investment value (4) (5)	5.78%	5.72%
Occupancy rate (5) (6)	91.05%	90.46%
Average duration of leases (years)	4.26	4.28

(1) The real estate portfolio comprises the buildings in operation, the development projects, the assets held for sale, as well as the buildings presented as financial leasing under IFRS.

(2) 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. The fair value of Retail Estates has been defined based on the share price on 30/06/2020.

(3) 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.

(4) Fair value and investment value estimated by real estate experts Cushman & Wakefield, Stadim (BeLux) and Oerag (Austria).

(5) For the calculation of the rental yield and the occupancy rate only the buildings in operation are taken account of, excluding the assets held for sale and the development projects.

(6) The occupancy rate has been calculated based on the estimated rental value.

KEY FIGURES INCOME STATEMENT	30/06/2020	30/06/2019
Rental income (€ 1,000)	29 141	32 377
Net rental result per share	4.92	5.46
EPRA Earnings* (1)	13 103	22 124
EPRA Earnings* per share (1)	2.21	3.73
Net result group share (€ 1,000)	-30 684	25 306
Net result group share per share	-5.18	4.27
Comprehensive income group share (€ 1,000)	-33 022	15 113
Comprehensive income group share per share	-5.57	2.55

(1) EPRA Earnings*, previously the net current result, consists of the net result excluding the portfolio result* and the changes in fair value of the ineffective hedges..

KEY FIGURES BALANCE SHEET	30/06/2020	31/12/2019
Net asset value group share (€ 1,000)	428 439	492 577
Number of shares at closing date	5 926 644	5 926 644
Net asset value group share per share	72.3	83.1
Net asset value group share per share based on inv. value	76.3	87.1
Net asset value group share per share EPRA	84.0	93.4
Total assets (€ 1,000)	1 216 082	1 248 012
Financial debt	683 050	659 100
Financial debt ratio (in accordance with BE-REIT/GVV-SIR RD)	58.07%	54.78%
Average duration credit lines (years)	3.51	3.88
Average funding cost (excl. fair value changes financial instru-ments)	2.30%	2.14%
Average duration hedges (years)	5.01	5.54

1 EPRA PERFORMANCE MEASURES*	30/06/2020	30/06/2019
EPRA Earnings* (in € per share) (1)	2.21	3.73
EPRA NAV* (in € per share) (2)	83.98	89.07
EPRA NNNAV* (in € per share) (3)	74.1	80.3
EPRA Net Initial Yield* (in %) (4)	4.77%	5.32%
EPRA Topped up Net Initial Yield* (in %) (5)	4.78%	5.33%
EPRA Vacancy* (in %) (6)	8.96%	5.16%
EPRA Cost ratio* (incl. direct vacancy costs) (in %) (7)	23.36%	24.49%
EPRA Cost ratio* (excl. direct vacancy costs) (in %) (7)	21.62%	21.90%

(1) The EPRA Earnings*, previously net current result, consists of the net result excluding the portfolio result* and the changes in fair value of the ineffective hedges.

(2) EPRA Net Asset Value* (NAV) consists of the adjusted Net Asset Value*, excluding certain elements that do not fit within a financial model of longterm real estate investments; see also www.epra.com.

(3) EPRA NNNAV* (triple Net Asset Value*): consists of the EPRA NAV*, adjusted to take account of the fair value of the financial instruments, the debts and the deferred taxes; see also www.epra.com.

(4) EPRA Net Initial Yield* comprises the annualized gross rental income based on the current rents at the closing date of the financial statements, excluding the property charges, divided by the market value of the portfolio, increased by the estimated transfer rights and costs for hypothetical disposal of investment properties; see also www.epra.com.

(5) EPRA Topped up Net Initial Yield* corrects the EPRA Net Initial Yield* with regard to the ending of gratuities and other rental incentives granted; see also www.epra.com.

(6) EPRA Vacancy* is calculated on the basis of the Estimated Rental Value (ERV) of vacant surfaces divided by the ERV of the total portfolio; see also www.epra.com.

(7) EPRA Cost ratio* consists of the relation of the operating and general charges versus the gross rental income (including and excluding direct vacancy costs); see also www.epra.com.

¹ Deze cijfers werden niet geauditeerd door de commissaris.

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INTERIM ANNUAL REPORT

Highlights first half-year 2020

For the first half-year of the financial year 2020 we record the following key data:

• The EPRA earnings*decrease from € 22.1 million at the end of H1 2019 (however including the dividend from Retail Estates of € 5.1 million) to € 13,1 million (excluding this dividend of € 5.9 million received in July 2020)
• The net result amounts to € -30.7 million end H1 2020 (vs € 25.3 million or € 4.27 per share end H1 2019) and comprises nearly exclusively the impairment on the participation in Retail Estates, recorded at closing price of the Retail Estates share on 30/06/2020

• The debt ratio increases temporarily from 54.78% to 58.07% following the payment on 25/05/2020 of the dividend over the financial year 2019

• Building permit received for the development project Monteco in the European district in Brussels

• Current redevelopments in Belgium and Luxembourg remain on schedule: in shopping center Schmiede the new Delhaize and H&M stores and the new panoramic restaurant were opened

Activity report for the period 01/01/2020- 30/06/2020

Developments

Mid-March, the construction sites of our redevelopment projects were all put to a halt because of the lockdown following Covid-19. In the course of the month of April they could gradually restart taking into account the necessary safety measures in the scope of social distancing. Consequently, a certain delay in their reception has to be anticipated.

GRAND DUCHY OF LUXEMBOURG

Shopping center Knauf Pommerloch

For the Knauf shopping center Pommerloch located in the North of the Grand Duchy of Luxembourg, nearby the Belgian border, the opening of the new parking (Bastogne entrance) evolves as planned, despite the fact that the construction site was closed for 3 weeks because of Covid-19.

The final reception of the building shell is expected in September 2020 with the delivery of two commercial units that will open end-October. A part of the new parking was already opened during the holiday period of the construction sector in order to welcome tourists visiting the region.

Shopping center Knauf Schmiede

For the Shopping center Knauf Schmiede the renovation was continued, and the works nearly evolve as planned, as the construction sites have only been closed for 3 weeks following the Covid-19 crisis.

The important renovation works, including an extension of ca. 7,000 m², are carried out in 2 main phases, of which the first phase has been completed, and the spaces were opened to the public. The reception of the extension is foreseen in Q3 2021. The works comprise an extended commercial offer, a new catering concept and a zone for activities and leisure for families.

The first phase of the extension of the renovation project and expansion of the shopping center has now been inaugurated. This phase represents 150 m² of office space and approximately 400 m² of commercial area extra which allows the relocation of 6 stores to start the 2nd phase of the renovation. At the same time, the Delhaize supermarket was expanded by 500 m² under their latest retail concept, making this Delhaize the largest in the Benelux with a sales area of 3,500 m².

H&M finalized its expansion at the beginning of August and opened a second floor in order to increase its offering.

Two new brands further enrich the commercial mix: "La maison du thé" with a tea room and "Du pareil au même", for children's clothing.

As far as catering is concerned, the snack was renovated with an extensive offer for on-site consumption, snacks or take-away. The food court was temporarily moved to a partially covered roof terrace with stunning views over the green surroundings.

EBBC business park

For the het EBBC business park the strategic exercise for the repositioning of this business park was finalized and the first preliminary works have been planned as of September 2020; first of all, the communal and vacant spaces will be renewed. The renovation budget is estimated at € 28 million, and the final reception is foreseen at the end of 2023. The vacant spaces are temporarily no longer presented to the rental market in order to allow room for planning and starting the phased renovation.

BELGIUM

Office building Monteco (Montoyer 14): smart building in timber frame construction

The office building Monteco will become a project that will differentiate itself as to smart technology in combination with a timber frame construction.

It is Leasinvest's ambition to build, together with the Brussels' authorities, the first high building with a timber frame construction, and to become the reference for the new generation of sustainable "recyclable buildings".

In the meantime, the building permit has been received and the demolition of the existing building can begin in August. The underground part of the project is subsequently realized before the end of the year. At the beginning of 2021, the effective above-ground timber frame construction and further finishing of techniques can be started.

In the meantime, the marketing of this project is being prepared.

Hangar 26/27 Antwerp

In the meantime, the Danish architectural firm CF Moller has been appointed by Leasinvest Real Estate as the architects for developing a high-end mixed project, with extension of offices and retail, and a particular attention to the accessibility between the private spaces and the public space of the quays. The Covid-19 crisis has led to the fact that all permit requests with the Flemish government are currently on hold, reason why the building permit request foreseen in April-May 2020 has not yet been introduced.

Leases

EVOLUTION OCCUPANCY RATE

The occupancy rate has slightly increased to 91.05% (90.46% per end 2019). The Covid-19 crisis has indeed led to the fact that a number of negotiations with potential tenants have been put on hold.

LEASES

Grand Duchy of Luxembourg

For the office building Mercator the negotiations with potential tenants have been actively resumed. An in-principle agreement is expected for the hiring of the 4th floor (1,557 m²) in September 2020. In the meantime, however, an additional lease of 461 m² could be signed for an existing customer.

For the building CFM Titanium a rental contract was concluded for the surfaces on the second floor, relating to a 6/9 year rental contract taking effect on 01/01/2020 for 1,129 m² of offices + parking and archives. A rental contract was also signed with regard to the surfaces on the ground floor (back): a 6/9 rental contract taking effect on 1 May 2020 for 549 m² of offices + parking. Negotiations relating to the lease of additional space at garden level are ongoing.

For the Office Building Esch 25, an agreement was reached for the hiring in the form of the extension of an existing lease, for the balance of the available area (433 m² on the 3rd floor); the amendment of the contract is in the phase of signing.

Given the temporary lower occupancy rate of the Luxembourg offices portfolio, mainly due to the vacancy of a number of surfaces that will be redeveloped, such as on the EBBC site, additional initiatives were taken to support the lease of the other Luxembourg office buildings.

In the Shopping centers Knauf Pommerloch and Schmiede a number of new rental contracts and extensions of current rental contracts could be concluded, despite the crisis.

Belgium

For Hangar 26/27 in Antwerp a new lease for a surface of 500 m² was concluded.

For Tour & Taxis Royal Depot, despite the current crisis, 2 extensions of leases were recorded and a lease agreement could also be concluded for a retail space around the ground floor (223 m²).

In The Crescent Anderlecht an important new lease of 900 m² was recorded, increasing the total occupancy rate of the building from 70% to 80%.

Consolidated results period 01/01/2020- 30/06/2020

The first half of 2020 is characterized by a sharp decrease in net result and EPRA earnings compared to the same period last year. This is due, on the one hand, to the time effect of the dividend of the stake in Retail Estates. Last year this was paid in June and this year in July and will therefore be recognized in Q3 2020. On the other hand, a lower rental turnover was realized which was largely caused by the Covid-19 crisis as well as by the sale of Riverside Business Park.

Rental income decreased compared to the first half of last year: € 29.1 million in H1 2020 vs € 32.4 million in H1 2019. On the one hand, the like-for-like decrease amounts to -€ 2.8 million which can largely be explained by the Covid-19 impact, on the other hand the divestments result in a decrease of -€ 0.8 million.

Gross rental yields increased slightly compared to the end of 2019 and amounted to 5.90% (5.84% at the end of 2019) based on fair value and 5.78% (5.72% at the end of 2019) based on the investment value; the occupancy rate increased from 90.46% at the end of 2019 to 91.05% on 30/06/2020.

The property charges have remained almost constant (- € 0.1 million) from - € 5.0 million H1 2019 to - € 4.9 million H1 2020. The general operating charges decrease by - € 0.3 million, mainly due to lower consultant fees that have been paid. The operating margin (operating result before portfolio result/rental income) decreases from 75% at the end of June 2019 to 74% at 30 June 2020.

The changes in fair value of investment properties on 30/06/2020 amount to - € 6.3 million (30/06/2019: € 214 thousand). This loss relates mainly to both Knauf shopping centers in the North of the Grand Duchy of Luxembourg.

The financial result (excluding revaluations of financial assets and liabilities) amounts to € - 8.0 million at 30/06/2020 compared to € -1.7 million for H1 2019. The main difference with H1 last year is largely due to the fact that last year the dividend of Retail Estates (€ 5.1 million) was already received in Q2 2019. This year the dividend was received in July 2020, which means that this will only be recognized in Q3 in the result (€ 5.9 million). In addition, financial costs increased by + € 1.2 million, mainly due to the increase in credit withdrawals. The funding cost decreased slightly from 2.34% at the end of June 2019 to 2.30% at the end of June 2020.

The changes in fair value of financial assets and liabilities (-€ 37.5 million) include both the revaluation of the stake in Retail Estates (-€ 32.4 million) and that of the derivatives portfolio (-€ 5.1 million).

The net result for H1 2020 was -€ 30.7 million compared to € 25.3 million at 30/06/2019. In terms of net result per share, this result represents a ratio of -€ 5.18 per share on 30/06/2020 compared to € 4.27 on 30/06/20.

The EPRA Earnings* at the end of June 2020 amount to € 13.1 million (€ 2.21 per share), which represents a decrease from 30/06/19 (€ 22.1 million or € 3.73 per share).

At the end of the second quarter of the 2020 financial year, shareholders' equity group share (based on the fair value of the investment properties) amounts to € 428.4 million (year-end 2019 € 492.6 million).

On 30 June 2020, there was a decrease in shareholders' equity of € 64.1 million as a dividend was paid for an amount of € 31.1 million and a negative net result for the first half of 2020 of -€ 30.7 million was recorded. Furthermore, there was a negative revaluation of derivatives amounting to -€ 2.3 million which was directly recorded in shareholders' equity.

Net asset value per share excluding the impact of fair value adjustments on financial instruments (EPRA NAV) was € 84.0 at the end of June 2020 compared to € 93.4 at the end of 2019.

At the end of June 2020, the net asset value including the impact of fair value adjustments on financial instruments (IAS 39) is € 72.3 per share (31/12/19: € 83.1). The closing price of leasinvest Real Estate shares on 30 June 2020 was € 91.60.

By the end of June 2020, the debt ratio had increased to 58.07% compared to 54.78% at the end of 2019, mainly due to a combination of the dividend payment and the write-down on Retail Estates.

Management of financial resources

As of 30/06/2020, the nominal financial debt included in the balance sheet amounts to € 683.1 million compared to € 659.1 million at 31/12/2019. This increase is mainly due to the distribution of the dividend for the past financial year 2019.

These financial debts amounting to € 683.1 million on 30/06/2020 include € 401.3 million in bank lines of credit with variable interest, € 80.0 million in fixed-rate bank lines of credit, €120.0 million in bonds and € 81.8 million in commercial paper withdrawals.

The breakdown of the portfolio of credits by type funding of sources and by number of credit institutions (currently spread over 8 different credit institutions) is an important element to be able to count on a continuous financing basis, limiting to a maximum extent concentrations and counterparty risks. The listed withdrawals below are graphically presented in combination with a representation of the maturity dates of the credit lines.

Credit lines 30/06/2020

Credit withdrawals 30/06/2020

The use of commercial paper fell sharply in the first half of the year because of the Covid-19 crisis and the resulting rising credit margins. Given the short-term nature of this funding source, available, undrawn bank lines of credit are provided at any time for the outstanding amount in the commercial paper program. After deducting this buffer, Leasinvest Real Estate still has more than € 61 million of undrawn lines of credit available on 30/06/2020.

No new lines of credit were entered into during the first half of 2020. However, 3 lines of credit that would expire in 2020 and 2021 were extended to 2024, 2025 and 2027 respectively.

In addition, the retail bond of € 20 million will come to maturity in December 2020. This amount will not be refinanced as this is included in the € 100 million retail bond that was issued at the end of last year.

The weighted average duration of the credit lines awarded amounts to 3.54 years per 30/06/2020.

Maturity credit lines 30/06/2020

The hedge ratio at 30/06/2020 amounts to 85% and is calculated on the basis of the collectively nominally outstanding hedging amount of the Interest Rate Swaps and Interest caps (€ 382.5 million), plus the fixed rate credits incl. bonds (€ 200.0 million) on the total outstanding amount of financial debts as at 30 June 2020 (€ 683.1 million). The weighted average duration of hedging is 5.01 years at 30/06/2020, which is lower than the 5.45 years at 31 December 2019. Leasinvest closely monitors interest rate markets and in the course of July 2020 some restructurings of existing instruments were carried out with a view to reducing the average funding cost.

As of 30 June 2020, the weighted average funding cost remained almost constant at 2.30%, compared with 2.34% for the first half of 2019.

Important events after the closing of the period 01/01/2020-30/06/2020

No important events took place after the closing of the first half-year of 2020.

Corporate Governance

COMPOSITION OF THE BOARD OF DIRECTORS OF THE STATUTORY MANAGER

At the general meeting of Leasinvest Real Estate Management SA, statutory manager of Leasinvest Real Estate SCA, which took place on 18 May 2020, it was decided to reappoint Jean-Louis Appelmans as non-executive director for a period of 1 year, i.e. until after the general meeting of May 2021.

At the same general meeting it was decided to appoint Wim Aurousseau as a non-executive director, on the proposal of AXA, for a period of 2 years, i.e. until after the general meeting of May 2022.

The Board of Directors of the Company's statutory manager is consequently composed as follows:

Mandate in the Board of directors	Date at which the mandate ends
Jan Suykens Chairman, non-executive director, on proposal of Ackermans & van Haaren	16/05/2022
Michel Van Geyte Managing director, on proposal of Ackermans & van Haaren	16/05/2022
Dirk Adriaenssen Non-executive director, independent	16/05/2022
Jean-Louis Appelmans Non-executive director, on proposal of Ackermans & van Haaren	17/05/2021
Wim Aurousseau Non-executive director, on proposal of Axa	16/05/2022
Piet Dejonghe Non-executive director, on proposal of Ackermans & van Haaren	16/05/2022
Marcia De Wachter Non-executive director, independent	15/05/2023
Colette Dierick Non-executive director, independent	15/05/2023

Sigrid Hermans Non-executive director, independent 15/05/2023

Eric Van Dyck Non-executive director, independent

Overview of main related-party transactions

In the period 01/01/2020-30/06/2020 no related-party transactions, which had material consequences with regard to the financial position or the results of Leasinvest Real Estate, took place.

Main risks and uncertainties

For an overview of the main risks and uncertainties, please refer to the risks described in the 2019 annual financial report that will continue to apply during the remaining months of the financial year 2020 and to the additional information contained in the press releases of May 18 and 2 July 2020 encompassing an update of Covid-19.

The first six months of the 2020 financial year are characterized by the Covid-19 crisis and, among other things, the lockdown measures taken by the various national authorities and the associated risks, which are already largely set off in the figures as of 30 June 2020. The rental income took into account the compensation already granted (€ 1.5 million) to the tenants as well as the expected concessions (€ 1.0 million) that we as owners will have to make to our tenants with regard to rental income for the first half of 2020.

In addition, some valuations within the retail segment were revised downwards, although this was limited to 0.5% of the portfolio and this can be reduced to our two Knauf shopping centers in the North of the Grand Duchy of Luxembourg. In this context, we point out that the report of the independent valuation experts states that it was prepared, taking into account the "material valuation uncertainty" as determined by the RICS standards.

Finally, the valuation of the participation in Retail Estates has also sharply decreased (-€ 32.4 million) due to the Covid-19 crisis and resulting negative price pressures on the Retail Estates share price, although we observe a significant recovery in the share price after the low of mid-March 2020, at the beginning of the first lockdown measures. Moreover, Retail

Estates is mainly invested in retail parks that have shown themselves to be the most resilient during the pandemic, because of the shift from funshopping (inner city and shopping centers) to runshopping.

Outlook financial year 2020

The lockdown measures following the Covid-19 pandemic, that were taken in the first halfyear of 2020, impacted Leasinvest in the 3 geographical markets in which the company operates, and this mainly in the retail segment. We realize that the Covid-19 pandemic will also continue to impact the second half-year of 2020 and probably even the period after that. Under the strict condition of a strong resurgence of the pandemic with similar measures compared to the first half-year of 2020, we expect being well on our way to be able to distribute a dividend over 2020 which is in line with the dividend distributed for the financial year 2019.

LEASINVEST REAL ESTATE ON THE STOCK EXCHANGE

Shareholder structure

The Leasinvest Real Estate shares are listed in Belgium on Euronext Brussels (BEL MID).

Extensa Group SA (Ackermans & van Haaren Group) was the founder and promoter of the public BE-REIT (GVV/SIR). Ackermans & van Haaren SA holds 100% of the shares of the statutory manager, Leasinvest Real Estate Management SA.

Number of listed shares (5,926,644)

On the basis of the transparency notifications received or the information obtained from the shareholders, the structure of the Company's shareholding is as follows:

	Percentage of participation
Ackermans & van Haaren	30.01%
AXA SA	26.58%
AG Insurance	7.36%
Free float	36.05%
Niet-uitvoerend bestuurder, op voordracht van Ackermans Total & van Haaren	100%
Niet-uitvoerend bestuurder, op voordracht van Axa

Key figures

	30/06/2020	31/12/2019
Number of listed shares (#)	5 926 644	5 926 644
Number of issued shares (#)	5 926 644	5 926 644
Market capitalisation based on closing price (€ million)	542	670
Free float (%)	36.05%	36.05%
Closing price (€) (1)	91.60	113.00
Highest price (€) (1)	129.00	125.50
Lowest price (€) (1)	69.80	87.00
Average monthly volume (#) (1)	64 614	44 142
Velocity (%) (1) (2)	13.08%	8.94%
Free float velocity (%) (1) (3)	36.29%	24.79%
Premium based on closing price vs NAV (fair value)	27%	36%

(1) For the financial year 31/12/2019 the data are calculated over a period of 12 months and for 30/06/2020 over a period of 6 months.

(2) Number of traded shares / total number of listed shares.

(3) Number of traded shares / (total number of listed shares * free float).

Price premium/discount Leasinvest RE share price versus net asset values

Share price LRE NAV LRE (EPRA) NAV LRE (fair value)

Comparison of return on Leasinvest RE share versus return BEL MID²

Return LRE Return BEL MID

Comparison of return on the Leasinvest Real Estate share versus the return on the EPRA indices (www.epra.com) 3

Share price LRE EPRA Eurozone index EPRA Belgium index

2 Indices to consult in the financial papers or on the internet.

3 Information from EPRA, not verified by any authority.

_

In the first half of 2020, leasinvest Real Estate's share price reached a record price of € 129.00, two weeks before the outbreak of the Covid-19 crisis. The share price experienced virtually no impact from the payment of the dividend for the 2019 financial year, in May 2020, and continued to recover to € 91.60. The premium to the net asset value (based on closing price / fair value) was +27% at 30/06/2020.

The average monthly transaction volume of the share for the first half of 2020 increased substantially and amounted to 64 614 shares (31/12/2019: 44 142). The velocity or turnover rate for 6 months (13.08% over the first half of 2020) also increased; given the free float of 36.05%, the free float velocity for six months is 36.29% for the first half of 2020.

Since the beginning of 2016 (31/03/2016: inclusion of the Leasinvest Real Estate share in the BEL Mid index), the stock recorded a permanently higher return compared to the index, until the end of 2017. Since the beginning of 2019, the return of the Leasinvest Real Estate stock has again kept pace with the BEL MID return, with a higher return for the BEL MID index since the depths of the Covid-19 crisis.

Both EPRA indexes (Belgium and Eurozone) have clearly felt the impact of the Covid-19 crisis, resulting in a sharp decline at the height of the crisis. Since then, both indexes have been slowly recovering with a permanently higher return for the EPRA Eurozone index. The return of the Leasinvest Real Estate share was still slightly lower than that of the EPRA Belgium index.

Financial calendar

Half-year financial report 2020	19/08/2020
Interim statement Q3 (30/09/2020)	17/11/2020
Annual results 2020 (31/12/2020)	10/02/2021
Annual financial report 2020	31/03/2021
Interim statement Q1 (31/03/2021)	17/05/2021
Annual meeting of shareholders	17/05/2021
Dividend payment	25/05/2021
Half-year financial report 2021	19/08/2021

REAL ESTATE REPORT

Real estate market over the first half-year of 2020

The information on the real estate market below comprises extracts from the real estate market reports of Cushman & Wakefield for the Grand Duchy of Luxembourg and Belgium, and of CBRE for Austria, reproduced with their consent, and of which the contents have not been verified.

GRAND DUCHY OF LUXEMBOURG

Office market

Rental market: solid activity thanks to megadeals

Take-up in 1H 2020 recorded 117,000 m² , as the market shrugs off any concern about a slowdown of office activity in the first half of the year. Two mega deals of more than 10,000 m² helped drive activity in Q2 (a/o Ministry of Finance letting 16,742 m² ). This highlights two aspects about the market today. One is that most markets are viable for large occupiers, showing the market's strength through its breadth. The other is the shortage of available space where those seeking substantial space must consider more peripheral markets.

Approximately 155,000 m² of office space is considered vacant out of a total stock of 4.40 million m² . This is less than a year's worth of take-up, indicating a shortage of available space. The result is a very tight market with a vacancy rate of just 3.5%. The CBD, Kirchberg, Strassen and Station markets count vacancy under 2.0%.

The overall strong letting market and supply and demand dynamics are such that rental values are well-supported. This has led to an increase in prime rent to a record 52 €/m² /month (excl VAT) in the CBD.

Elsewhere, Cloche d'Or has also experienced a strong increase in prime rent to 34 €/m² /month (excl VAT) just like Kirchberg to 42 €/m²/month (excl VAT). Station prime rents remain

38 €/m² /month (excl VAT). All other major markets remain unchanged through Q2 2020. Investment market: strong first quarter, but weaker Q2

While investment was strong in Q1, it was much more modest in Q2. € 270 million of deals in the second quarter brings the mid year total to € 1 billion and setting the potential for another € 2 billion year.

Most of the transactions in 2020 were already planned before the outbreak, putting some pressure on the investment activity for the following quarters. Although the effects of the Covid-19 pandemic on the office market are not fully measurable yet, they seem to be relatively moderate and investment demand remains clearly present. Prime yields remained stable following a compression in most submarkets in Q1 (which reflected the high demand and strong activity before the outbreak) but could potentially increase again due to unfavourable financing conditions.

Retail market

Rental market: maintaining the date of the sales has proved to be a success factor

The Covid-19 crisis accelerates the reshaping previously observed in the retail sector. The growing shift towards the online retail and the lockdown observed during most of the second quarter led to a strong decrease of the activity (both in number of deals and surfaces) in H1 2020 where a low 8,500 m² of take-up was recorded, below the 5 years average (excluding the exceptional 2019). Main streets and shopping centres suffered more than the out of town retail though encouraging signs are recently observed with footfalls on a slight upward.

A decrease of the prime rents is observed in the shopping centres while the prime rents in the out of town segment remain stable. The trend for the coming months is to a stabilization at these levels. However, depending on the evolution of the sanitary crisis, the situation could be very different before the end of the year.

Nevertheless, Luxembourg seems to recover slightly better than expected, supported by its strong economy and highlighting once again its historical resilience.

Overall, footfall has experienced a negative impact of the Covid-19 pandemic because of shoppers' fear of the virus, and on the other hand, the absence of shoppers in certain districts as a result of teleworking.

However, maintaining the date of the start of the sales on 26 June 2020 proved to be a successful strategy, with footfall comparable to last year's, depending on the location. The residents know the timing, but also the non-residents from Belgium, France and Germany have bought a lot, since the sales started there only later.

The retailers have mainly reached their objective, namely: have the necessary liquidity for purchasing the next collection.

Investment market: low activity, few opportunities

€ 51 million have been invested in retail assets since the beginning of the year. Few opportunities currently exist in the market and the Covid-19 crisis could negatively weigh on investors' appetite and therefore limit the investment activity.

Prime yields in the high streets are to be found at 3.25%, 5.25% in the shopping centres and 6% in the out of town retail.

However, if the situation should last in the coming months and if investors' appetite remain low, we could observe a slight increase of the prime yields in the different segments before the end of the year.

BELGIUM

Office market

Rental market: weaker half-year following a combination of the mega-take-up in 2019 and Covid-19 pandemic

Letting activity on the Brussels office market during 1H reached 128,000 m² . Indeed, this is one of the weakest semesters ever recorded. As a reminder, activity in the letting market was expected to decrease following a remarkable take-up level in 2019, but the weak activity was strongly amplified by the Covid-19 outbreak and the subsequent lockdown measures. The take up level this semester was boosted by a/o the expected move of the EU Commission.

Prime rents have not been affected by the economic downturn and remain at € 320 /m² /year. The weighted average rents, on the other hand are higher at around € 190/m² /year. The vacancy rate for the overall market is still at a low 7.60% but a slight uptick is expected due to the delivery of some new office schemes.

Homeworking would therefore be part of the equation of the future of work, but not as the single solution. Besides, the social distancing processed amid sanitary measures may to some extent be structural. In our view, this puts an end on the densification of workplaces. As always, vacancy in the CBD is way below at 3.4% (was 2.9% in Q4 2019 and 3.3% a year ago) while remaining high in the Decentralised (9.4%) and the Periphery (19.2%). Take-up in regional markets was pretty solid, but mainly in Wallonia. Although things have

been quieter in Flanders, some large transactions were recorded. Prime rents have remained stable, where Flanders is led by Antwerp (€ 165/m²

Investment market: highest volume ever on the Brussels office market

The first half of the year saw the highest investment volume ever recorded on the Brussels office market with € 2.4 billion invested (including the historical transaction of the Finance Tower / € 1.3 billion). Nevertheless, H1 2020 recorded 45 transactions, the highest number of deals ever recorded in a single semester. Most of the transactions were launched before the outbreak and closed during the first quarter of the year, still reflecting the strong momentum observed over the last couple of years. The effect of the outbreak on the investment market has mainly been felt during Q2 which recorded 16 transactions and a total of € 340 million, including the sale of the Silver Tower for more than € 200 million.

/year).

Prime yields did not change since last quarter and are at 4.0% following a high demand and strong activity before Covid-19. The long-term prime yield saw a slight compression to 3.50%.

As to the regional markets, € 75 million was invested in Flanders (a/o MG Business Center in Ghent). The prime yield remains at 5.50%, albeit closely monitored due to strong interest in regional office markets.

Retail market

Rental market: out of town retail is most resilient

The Covid-19 crisis accelerates the reshaping previously observed in the retail sector. The growing shift towards online retail and the lockdown observed during most of the second quarter led to a 15% decrease of the activity (both in number of deals and surfaces) in H1 2020 where 140,000 m² of take up was recorded. Main streets and shopping centres suffered more than the out of town retail though encouraging signs are currently observed with footfalls on the upward (despite remaining between 20% and 30% lower than last year).

One of the key trends observed during this unprecedented period is the increasing frequentation of neighbouring shops for ethical and environmental considerations but also to promote the local economy.

A slight correction of the prime rents has been observed almost everywhere in Belgium over the last quarter, even if already felt before the sanitary crisis. As observed in the take up figures, high streets and shopping centres are more impacted than the out of town retail where prime rents remain more stable, though observing a slight decrease. Further corrections are expected in the coming months as the market has still to adapt to this new reality.

Investment market: stable yields for out of town retail

Around € 300 million of investment volumes are recorded so far this year, a downward movement compared to the same period last year. Most of the deals were already initiated prior to the sanitary crisis and it could be more difficult to create new deals in this current context. As a result, investment volumes should be down compared to previous years.

Due to less attractive financial conditions, prime yields observed a slight correction with a 25 bps increase on average with the exception of out of town where they remain stable. As a result, they now stand at 3.75% in the best high streets of the country and at 4.25% in the prime shopping centres. In the out of town segment, prime yields currently stand at 5.25%.

AUSTRIA

Investment market

The total investment volume in Austrian commercial real estate amounted to € 1 billion (- 20% compared to 1H 2019) of which retail represented 2%.

Composition & analysis of the real estate portfolio

GEOGRAPHICAL BREAKDOWN GRAND DUCHY OF LUXEMBOURG – BELGIUM - AUSTRIA

	Fair value (€ M)	Investment value (€ M)	Share in portfolio (%) < fair value	Contractual rent (€ M/y)	Rental yield < fair value (%)	Rental yield < investment value (%)	Occupancy rate (%)	Duration
Grand Duchy of Luxembourg	563.24	573.02	50.78	33.27	5.91	5.81	93.87	3.39
Belgium	328.46	336.90	29.61	20.13	6.13	5.97	92.79	5.00
Austria	181.01	185.54	16.32	9.92	5.48	5.35	100.00	5.30
Real estate available for lease	1 072.71	1 095.46	96.71	63.31	5.90	5.78	91.05	4.26
Assets held for sale	0.00	0.00	0.00	0.00
Projects Luxembourg	23.68	24.27	2.13	0.00
Projects Belgium	12.79	13.11	1.15	0.00
Total investment properties	1 109.18	1 132.84	97.87	63.31
IFRS 16 Right of use	4.23	0.00	0.00	0.00
Total investment properties (Incl. IFRS 16)	1 113.41	1 132.84	97.87	63.31

BREAKDOWN ACCORDING TO ASSET CLASSES

	Fair value (€ M)	Investment value (€ M)	Share in portfolio (%) < fair value	Contractual rent (€ M/y)	Rental yield < fair value (%)	Rental yield < investment value (%)	Occupancy rate (%)	Duration
Retail
Retail Grand Duchy of Luxembourg Luxemburg	299.88	303.09	27.04%	19.11	6.92%	6.30%	91.65%	4.01
Retail Belgium	50.41	51.67	4.54%	3.51	6.37%	6.76%	98.37%	1.21
Retail Austria	181.01	185.54	16.32%	9.92	5.48%	5.34%	100.00%	5.30
Total retail	531.30	540.30	47.90%	32.54	6.12%	6.02%	94.71%	4.16
Offices
Offices Grand Duchy of Luxembourg	241.00	247.01	21.73%	12.75	5.29%	5.16%	79.94%	3.16
Offices Brussels	192.08	196.88	17.32%	10.76	5.60%	5.46%	94.91%	5.50
Offices rest of Belgium	46.50	47.66	4.19%	3.07	6.60%	6.44%	85.32%	2.98
Total Offices	479.58	491.55	43.24%	26.58	5.54%	5.41%	85.84%	4.76
Logistics/Semi-industrial
Logistics/Semi-industrial Belgium	39.47	40.69	3.56%	2.79	7.07%	6.86%	98.22%	9.72
Logistics/Semi-industrial Grand Duchy of Luxembourg	22.36	22.92	2.02%	1.41	6.54%	6.38%	100.00%	2.69
Total Logistics/Semi industrial	61.83	63.61	5.57%	4.19	6.80%	6.61%	98.79%	7.46
Investment properties	1 072.71	1 095.46	96.71%	63.31	5.90%	5.78%	91.05%	4.26
Assets held for sale	0.00	0.00	0.00%	0.00	0.00%	0.00%	0.00%	0.00
Real estate available for lease	1 072.71	1 095.46	96.71%	63.31	5.90%	5.78%	91.05%	4.26
Right of use IFRS 16	4.23	0.00	0.00%	0.00	0.00%	0.00%	0.00%	0.00
Projects Belgium	12.79	13.11	1.15%	0.00	0.00%	0.00%	0.00%	0.00
Projects Grand Duchy of Luxembourg	23.68	24.27	2.13%	0.00	0.00%	0.00%	0.00%	0.00
Total investment properties	1 113.41	1 132.84	100.00%	63.31	5.71%	5.59%	91.05%	4.26

EVOLUTION OF REAL ESTATE PORTFOLIO BASED ON FAIR VALUE

Belgium Luxembourg Switzerland Austria

ASSET CLASSES

Retail Offices Logistics

OCCUPANCY RATE

Occupancy rate Moving average (1)

(1) A moving average is a type of average value based on a weight of the current occupancy rate and the previous occupancy rates.

RENTAL BREAKS (FIRST BREAK DATE)

TYPE OF TENANTS

• Retail & wholesale
• Services
• Financial sector
• ICT
• Industry
• Medical & Pharma
• Government & Non-profit
• Transport & Distribution

Conclusions of the real estate expert⁴

VALUATION UPDATE AS AT 30 JUNE 2020 OF THE LEASINVEST REAL ESTATE SCA PORTFOLIO

REPORT BY THE EXTERNAL VALUER CUSHMAN & WAKEFIELD

We are pleased to report our valuation of the investment and fair values of the Leasinvest Real Estate SCA portfolio as at 30 June 2020.

Our valuation has been prepared on the basis of the information provided by Leasinvest Real Estate SCA. We assume this information is correct and complete.

Our valuation methodology is the capitalisation of the market rent with corrections to take account of the difference between the current rent and the market rent. We have also based ourselves on comparables that were available at the date of valuation.

The values were determined taking current market parameters into account.

We would like to draw your attention on the following points:

1. The portfolio consists of business parks, offices and semi-industrial buildings, distribution centres and shops, located in Belgium, in the Grand Duchy of Luxembourg and in Austria.

2. The total occupancy rate⁵ of the portfolio (including the projects) is 91.05% (respectively 94.23%, 86.95% and 100% for the Belgian, the Luxembourg and the Austrian portfolios).

3. The total occupancy rate of the portfolio (excluding the projects) is 91.05% (respectively 94.23%, 86.95% and 100% for the Belgian, the Luxembourg and the Austrian portfolios).

4. The remaining weighted average duration of the current leases for the whole portfolio equals to 17.03 quarters or 4.26 years. The projects and assets 'to be sold' were not taken into account in this parameter.

A total investment value of € 1,132,840,000 (one billion one hundred and thirty-two million eight hundred forty thousand euro) has been determined, with respectively € 350,010,000, € 597,290,000 and € 185,540,000 as investment values for the Belgian, Luxembourg and Austrian portfolios.

_

⁴ The conclusions of the valuation report were reproduced with the agreement of Cushman & Wakefield.

⁵ The occupancy rate is valid on the date of the valuation and does not take into account future availability (already known or not) nor with future new contracts (signed or not). This figure is calculated on the basis of the following formula: (market rent of all let areas)/ (market rent of the complete portfolio).

1. A total fair value of € 1,109,180,000 (one billion one hundred and nine million one hundred eighty thousand euro) has been determined, with respectively € 341,250,000, € 586,920,000 and € 181,010,000 as fair values for the Belgian, Luxembourg and Austrian portfolios.

2. IFRS 16: the value of 'the right of use/lease liability of 2 Belgian buildings to which this principle applies, namely The Crescent in Anderlecht and Hangar 26/27 in Antwerp, is respectively € 1,852,475 and € 2,366,935. We refer to the annexes for details on these calculations.

3. Covid-19: following the material uncertainty clause, a provision of 1 month rental loss was foreseen on the basis of the information received (requests for rent deferral or demand for suspension of rent payments from various retailers), this for all retail properties in the portfolio in Belgium and Luxembourg, excluding food retailers (e.g. Match branches Luxembourg, Carrefour Strassen and Delhaize in Schmiede and Pommerloch Shopping). The situation is closely monitored by the valuer and additional corrections will be re-evaluated in the next quarter (Q2 2020).

On this basis, the initial yield of the complete portfolio (including the Projects and assets 'to be sold') in terms of investment value is 5.59% (respectively 5.75%, 5.57% and 5.34% for the Belgian, Luxembourg and Austrian portfolios) and the initial yield of the complete portfolio in terms of fair value is 5.71% (respectively 5.90%, 5.67% and 5.48% for the Belgian, Luxembourg and Austrian portfolios).

CONDENSED FINANCIAL STATEMENTS

The condensed consolidated financial statements of Leasinvest Real Estate have been approved for publication by the board of directors on 19 August 2020.

The half-year report of the board of directors should be read jointly with the condensed financial statements of Leasinvest Real Estate. The condensed financial statements have been subject to a limited review by the auditor.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in € 1 000)	30/06/2020	30/06/2019
Rental income	29 141	32 377
Write-back of lease payments sold and discounted	0	0
Related-rental expenses	-948	-202
NET RENTAL INCOME	28 193	32 175
Recovery of property charges	44	2
Recovery income of charges and taxes normally payable by tenants on let properties	1 449	2 856
Costs payable by tenants and borne by the landlord for rental damage and refurbishment at end of lease	0	0
Charges and taxes normally payable by tenants on let properties	-1 449	-2 856
Other rental-related income and expenditure	-1 043	-1 170
PROPERTY RESULT	27 194	31 007
Technical costs	-524	-469
Commercial costs	-600	-478
Charges and taxes on un-let properties	-506	-838
Property management costs	-3 106	-2 905
Other property charges	-241	-348
PROPERTY CHARGES	-4 976	-5 037
PROPERTY OPERATING RESULT	22 217	25 969
Corporate operating charges	-1 426	-1 716
Other operating charges and income	640	-7
OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO	21 431	24 246
Result on disposal of investment properties	0	795
Changes in fair value of investment properties	-6 254	214
OPERATING RESULT	15 177	25 255
Financial income	0	5 167
Net interest charges	-7 402	-6 238
Other financial charges	-642	-656
Changes in fair value of financial assets and liabilities	-37 533	2 173
FINANCIAL RESULT	-45 577	446
PRE-TAX RESULT	-30 400	25 701
Corporate taxes	-285	-396
Exit tax
TAXES	-285	-396
NET RESULT	-30 685	25 305
Attributable to:
Minority interests	0	0
Net result - Group share	-30 685	25 305

OTHER ELEMENTS OF COMPREHENSIVE INCOME

(in € 1 000)	30/06/2020	30/06/2019
Changes in the effective part of the fair value of authorized cash flow hedges according to IFRS	-2 338	-10 193
Other elements of comprehensive income	-2 338	-10 193
Minority interests
Other elements of comprehensive income – Group share	-2 338	-10 193
COMPREHENSIVE INCOME	-33 022	15 113
Attributable to:
Minority interests	0	0
Comprehensive income – Group share	-33 022	15 113
NET RESULT	-30 685	25 305
To be eliminated
- Result on disposal of investment properties	0	795
- Changes in fair value of investment properties	-6 254	214
- Changes in fair value of financial assets and liabilities	-37 533	2 173
EPRA earnings	13 103	22 124
	30/06/2020	30/06/2019
RESULTS PER SHARE (in €) (1)	(6 months)	(6 months)
Comprehensive income per share, group share (1)	-5.57	2.55
Comprehensive income per entitled share	-5.57	2.55
Net result per share, group share (1)	-5.18	4.27
Net result per entitled share	-5.18	4.27
EPRA Earnings* per share	2.21	3.73

(1) Based on the number of shares at closing date (30/06/2020).

CONSOLIDATED BALANCE SHEET

(in € 1 000)	30/06/2020	31/12/2019
ASSETS
I. NON-CURRENT ASSETS	1 196 190	1 226 032
Intangible assets	0	0
Investment properties	1 095 730	1 092 529
Other tangible assets	1 219	1 133
Non-current financial assets	81 569	114 650
Finance lease receivables	17 672	17 720
II. CURRENT ASSETS	19 892	21 981
Assets held for sale	0	0
Trade receivables	11 511	13 945
Tax receivables and other current assets	2 051	2 000
Cash and cash equivalents	4 706	5 013
Deferred charges and accrued income	1 624	1 023
TOTAL ASSETS	1 216 082	1 248 013

(in € 1 000)	30/06/2020	31/12/2019
LIABILITIES
TOTAL SHAREHOLDERS' EQUITY	428 440	492 576
I. SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY	428 440	492 576
Capital	65 178	65 178
Share premium account	194 189	194 189
Purchase of treasury shares	-12	-12
Reserves	199 769	183 321
Net result of the financial year	-30 684	49 900
Translation differences	0	0
II. MINORITY INTERESTS	0	0
LIABILITIES	787 642	755 438
I. NON-CURRENT LIABILITIES	632 883	492 019
Provisions	11	11
Non-current financial debts	558 768	425 771
- Credit institutions	456 386	324 381
- Other	102 382	101 390
Other non-current financial liabilities	58 827	51 831
Deferred taxes - liabilities	15 278	14 406
II. CURRENT LIABILITIES	154 758	263 418
Provisions	0	0
Current financial debts	127 514	235 149
- Credit institutions	25 145	15 028
- Other	102 369	220 121
Other current financial liabilities	0	0
Trade debts and other current debts	13 677	16 061
- Exit tax	273	273
- Other	13 404	15 788
Other current liabilities	1 510	1 564
Accrued charges and deferred income	12 058	10 643
TOTAL EQUITY AND LIABILITIES	1 216 082	1 248 013

CONSOLIDATED CASH FLOW STATEMENT

(in € 1 000)	30/06/2020 (6 months)	30/06/2019 (6 months)
CASH AND CASH EQUIV. START FINANCIAL YEAR
1. Cash flow from operating activities	5 013 22 833	7 403 15 871
Net result	-30 685	25 305
Adjustment of the profit for non-cash and non-operating elements	52 525	-1 620
Depreciations, write-downs and taxes	694	-168
- Depreciations and write-downs on intangible and other tangible assets (+/-)	31	27
- Write-downs on current assets (-)	948	201
- Taxes	-165	-296
- Taxes paid	-120	-100
Other non-cash items	43 787	-2 385
- Changes in fair value of investment properties (+/-)	6 254	-214
- Increase (+) / Decrease (-) in fair value of financial assets and liabilities	37 533	-2 171
Non-operating elements	8 044	933
- Gains on disposals of non-current assets	0	-794
- Dividends received	0	-5 068
- Write-back of financial income and financial charges	8 044	6 795
Change in working capital requirements	992	-7 814
Movements in asset items	2 017	-2 915
Movements in liability items	-1 025	-4 899
2. Cash flow from investment activities	-8 352	-1 809
Investments	-8 352	-17 654
Investment properties in operation	-8 352	-13 498
Development projects
Intangible and other tangible assets
Non-current financial assets	0	-4 155
Divestments	0	15 845
3. Cash flow from financing activities	-14 788	-17 287
Change in financial liabilities and financial debts	24 370	16 000
Increase (+) / Decrease (-) of financial debts	24 370	16 000
Increase (+) / Decrease (-) of other financial liabilities	0	0
Financial income received	0	99
Financial charges paid	-8 044	-6 894
Change in shareholders' equity	-31 114	-26 492
Changes in reserves	0	0
Increase (+) / Decrease (-) of treasury shares	0	0
Dividend of the previous financial year	-31 114	-26 492
CASH AND CASH EQUIVALENTS END OF PERIOD	4 706	4 178

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL AND RESERVES

(in € 1 000)	Capital	Share premium	Reserves	Net result of the financial year	Shareholders ' equity attributable to the shareholders of the parent company	Minority interests	Total shareholders' equity
IFRS Balance sheet on 31/12/19	65 178	194 189	183 311	49 900	492 577	0	492 577
Distribution dividend previous financial year			-31 115		-31 115		-31 115
Transfer net result 2019 to reserves			49 900	-49 900	0		0
Comprehensive income of the financial year 2020 (6 months)			-2 338	-30 684	-33 022		-33 022
IFRS Balance sheet on 30/06/20	65 178	194 189	199 758	-30 684	428 440	0	428 440

End June 2020 shareholders' equity, group share (based on the fair value of the investment properties) amounts to € 428.44 million (31/12/2019: € 492.58 million) or € 72.3 per share (31/12/2019: € 83.1).

The decrease in shareholders' equity in comparison with end 2019 is attributable to the dividend distribution over 2019, in May 2020, for an amount of € 31.11 million and the negative net result of € 30.68 million over the first half year of 2020. Furthermore, there was a negative revaluation of the derivatives held within the framework of effective hedging, of € 2.34 million. That revaluation is booked directly in shareholders' equity in conformity with IAS 39.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 Basis for presentation

These interim condensed consolidated financial statements have been established in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. These interim condensed consolidated financial statements are in accordance with IAS 34 'Interim financial reporting'.

For establishing the interim condensed consolidated financial statements, the same accounting standards and methods have been used as for the financial statements per 31 December 2019, as described in note 2 to the financial statements in the Annual financial report 2019, to be consulted on the website www.leasinvest.be.

The following paragraph is added to Section 3 Net rental result: Rental discounts exceptionally granted in times of economic crisis, such as the Covid-19 pandemic crisis and the related lockdown, are treated as a reduction in income in accordance with IFRS 9 (impairment loss).

1 Segment reporting

Condensed consolidated income statement (geographical segmentation)

		Belgium	Luxembourg		Austria		Corporate		TOTAL
(in € 1 000)	30/06/202 0	30/06/201 9	30/06/202 0	30/06/201 9	30/06/202 0	30/06/201 9	30/06/202 0	30/06/201 9	30/06/202 0 (6 maand)	30/06/201 9 (6 maand)
(+) Rental income	9 808	11 254	14 723	18 088	4 609	3 034			29 141	32 376
(+) Write-back of lease payments sold and discounted
(+/-) Related-rental	-27	-202	-157		-764				-948	-202
expenses NET RENTAL INCOME	9 781	11 052	14 566	18 088	3 845	3 034	0	0	28 193	32 174
(+) Recovery of property charges	28	2	16						44	2
(+) Recovery income of charges and taxes normally payable by tenants on let properties	781	2 485	182	131	485	239			1 449	2 855
(-) Costs payable by tenants and borne by the landlord for rental damage and refurbishment at end of lease	0	0	0	0	0	0	0		0	0
(-) Charges and taxes normally payable by tenants on let properties	-781	-2 485	-182	-131	-485	-239			-1 449	-2 855
(+/-) Other rental-related income and expenditure	-594	-805	-445	-328	-5	-38			-1 043	-1 171
PROPERTY RESULT	9 215	10 249	14 138	17 761	3 840	2 996	0	0	27 194	31 006
(-) Technical costs	-344	-280	-67	-104	-112	-84			-524	-468
(-) Commercial costs	-111	-183	-430	-257	-58	-37			-600	-477
(-) Charges and taxes on un let properties	-164	-422	-343	-417	0	0			-506	-839
(-) Property management costs (1)	-2 702	-2 579	-255	-278	-149	-48			-3 106	-2 905
(-) Other property charges	-130	-212	-81	-92	-29	-43			-241	-347
PROPERTY CHARGES	-3 451	-3 676	-1 176	-1 148	-348	-212	0	0	-4 976	-5 036

PROPERTY OPERATING RESULT	5 764	6 573	12 962	16 613	3 492	2 784	0	0	22 217	25 970
(-) Corporate operating charges	-939	-1 264	-272	-330	-215	-122			-1 426	-1 716
(+/-) Other operating charges and income	1 713	-63	-868	78	-205	-22			640	-7
OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO	6 539	5 247	11 821	16 360	3 071	2 639	0	0	21 431	24 246
(+/-) Result on disposal of investment properties				795					0	795
(+/-) Changes in fair value of investment properties	-45	-2 901	-6 781	2 882	572	233			-6 254	214
OPERATING RESULT	6 494	2 346	5 040	20 037	3 643	2 872	0	0	15 177	25 255
(+) Financial income							0	5 167	0	5 167
(-) Interest charges							-7 402	-6 238	-7 402	-6 238
(-) Other financial charges							-642	-656	-642	-656
(+/-) Changes in fair value of financial assets and liabilities							-37 533	2 173	-37 533	2 173
FINANCIAL RESULT	0	0	0	0	0	0	-45 577	446	-45 577	446
PRE-TAX RESULT	6 494	2 346	5 040	20 037	3 643	2 872	-45 577	446	-30 400	25 701
(+/-) Corporate taxes							-285	-396	-285	-396
(+/-) Exit tax									0	0
TAXES	0	0	0	0	0	0	-285	-396	-285	-396
NET RESULT	6 494	2 346	5 040	20 037	3 643	2 872	-45 861	50	-30 684	25 305
Attributable to:
Minority interests									0	0
Group share									-30 684	25 305

(1) The property management costs consist a/o of the fee paid by Leasinvest Real Estate and its Belgian subsidiaries to the statutory manager Leasinvest Real Estate Management SA. Of the total fee paid by Leasinvest Real Estate for the first 6 months of the financial year 2020 (€ 2.5 million) € 1.2 million is related to the Luxembourg real estate portfolio. The fee is however fully recorded in the Belgian segment because Leasinvest Real Estate is the actual debtor.

Condensed consolidated balance sheet (geographical segmentation)

		Belgium	Luxembourg			Austria	Corporate		TOTAL
(in € 1 000)	30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019
ASSETS
Intangible assets	0	0							0	0
Investment properties (incl. devel-opment projects, excl. financial leasing)	327 793	325 827	586 922	587 042	181 015	179 660			1 095 730	1 092 529
Assets held for sale									0	0
Other assets	108 132	142 783	8 544	10 312	3 676	2 389			120 353	155 484
ASSETS PER SEGMENT	435 925	468 610	595 466	597 354	184 691	182 049	0	0	1 216 083	1 248 013
LIABILITIES
Non-current financial debts							558 769	425 771	558 769	425 771
Current financial debts							127 514	235 149	127 514	235 149
Other liabilities							101 631	94 517	101 631	94 517
LIABILITIES PER SEGMENT							787 914	755 437	787 914	755 437
SHAREHOLDERS' EQUITY									428 440	492 576

Segmentation per asset class (main key figures)

The real estate portfolio comprises both the buildings in operation and the development projects and the rights of use for certain concessions, recognized at the beginning of 2019 following the adoption of IFRS 16. For the calculation of the other key figures (rental income, rental yield, occupancy rate and weighted average duration of the leases) only the buildings in operation are taken into account.

		Retail Offices			Logistics (and semi industrial)		TOTAL
(in € 1 000)	30/06/2020	30/06/2019	30/06/2020	30/06/2019	30/06/2020	30/06/2019	30/06/2020	30/06/2019
Rental income (incl. fee and leasing and excl. compensation for termination and incentives)	13 734	14 542	13 516	15 694	1 891	2 141	29 141	32 377
Fair value of the real estate portfolio	531 301	452 755	520 269	537 437	61 832	64 902	1 113 402	1 055 094
Investment value of the real estate portfolio	540 297	459 812	533 149	550 791	63 611	66 261	1 137 057	1 076 864
Occupancy rate	94.71%	96.58%	85.84%	92.87%	95.21%	94.82%	91.05%	94.66%
Rental yield (in fair value) of the segment	6.12%	6.52%	5.54%	6.24%	7.12%	6.59%	5.90%	6.39%
Rental yield (in investment value) of the segment	6.02%	6.42%	5.41%	6.09%	6.89%	6.46%	5.78%	6.26%
Weighted average duration till first break (# years)	10.11	4.04	4.09	3.35	3.84	8.28	4.26	3.97

3 Net rental result

The rental income has decreased to € 28.5 million compared to € 31.7 million on 30 June 2019. The main reason for this is the Covid-19 crisis for which allowances were made to tenants during the period of the complete lockdown. In addition, there is also a decrease in rental income due to the asset rotation during the course of the previous financial year.

(in € 1 000)	30/06/2020	30/06/2019
Rental income
Rents	28 548	31 729
Guaranteed income	0	0
Rent-free periods	-6	73
Rental incentives	-95	-152
Indemnities for early termination of the leases	10	53
Income from finance leases and comparable items	683	674
TOTAL	29 140	32 377
Write-back of lease payments sold and discounted	0	0
Rental-related expenses
Rent payable on rented premises	0	0
Write-downs on trade receivables	-947	-202
Write-backs of write-downs on trade receivables	0	0
TOTAL	-947	-202
NET RENTAL RESULT	28 193	32 175

4 Investment properties and assets held for sale

The fair value⁶ of the directly held real estate portfolio has increased and amounts to € 1 113.4 million end June 2020 compared to € 1 110.2 million end December 2019.

	Real estate available for lease		Development projects		Total Investment properties
(in € 1 000)	30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019
Balance end previous financial year	1 080 207	992 510	12 322	11 727	1 092 529	1 004 237
Investments	7 791	16 275	561	323	8 352	16 598
Divestments	0	-54 668			0	-54 668
Translation effects	0				0	0
Acquisitions of real estate	0	121 274			0	121 274
Transfer from/(to) other items	-23 740	0	23 740		0	0
Increase/(decrease) in fair value	-4 986	584	-153	272	-5 139	856
Rights of use (IFRS 16)	-12	4 231			-12	4 231
Balance at end of period	1 059 260	1 080 207	36 470	12 322	1 095 730	1 092 529

Finance lease receivables		Total investment properties and finance lease recei		Assets held for sale		Total investment properties, finance lease receivables and assets held for sale
30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019	30/06/2020	31/12/2019
17 720	17 796	1 110 248	1 022 033	0	0	1 110 248	1 022 033
		8 352	16 598			8 352	16 598
		0	-54 668			0	-54 668
		0	0			0	0
		0	121 274			0	121 274
		0	0			0	0
-48	-76	-5 187	780			-5 187	780
		-12	4 231			-12	4 231
17 672	17 720	1 113 401	1 110 248	0	0	1 113 401	1 110 248

⁶ Reële waarde ('fair value'): de investeringswaarde zoals bepaald door een onafhankelijke vastgoeddeskundige en waarvan de mutatiekosten zijn afgetrokken. De reële waarde is de boekwaarde onder IFRS.

_

5 Information on the financial debt

On 30/06/2020 the financial debts of € 24.4 million have increased in comparison with end 2019. This increase can mainly be explained by the dividend distribution in May 2020 (€ 31.1 million).

The item other loans (non-current and current) comprises for € 120.9 million the bond loans issued by Leasinvest Real Estate in 2013 and 2019.

The confirmed credit lines (excl. the € 120.9 million bond loans and € 81.8 million of commercial paper) amount to € 624 million (end 2019: € 624 million) at the end of June 2020.

6 Calculation and further comments on the debt ratio

In accordance with art 24 of the RD of 13 July 2014, the public RREC has to establish a financial plan with an execution calendar, whenever the consolidated debt ratio exceeds 50%. Herein it describes the measures that will be taken to prevent the consolidated debt ratio from exceeding 65% of the consolidated assets.

On the financial plan, a special report is drawn up by the auditor, in which is confirmed that the latter has verified the way the plan has been drawn up, namely with regard to its economic fundamentals, and that the figures comprised in this plan correspond to those of the accounts of the public RREC.

The general guidelines of the financial plan are recorded in the annual and half-year financial reports. In the annual and half-year financial reports is described and justified how the financial plan was executed in the course of the relevant period and how the public RREC will execute the plan in the future.

Debt ratio overview

As commented in the table below, historically, Leasinvest Real Estate's debt ratio has in general remained below 50% till 2011, but crossed the 50%-threshold as of 2012 as a consequence of the investment programme that was executed over the past years (more specifically within the framework of the development and later sale of the Bian office building in Luxembourg, the investment in the real estate certificates issued by Porte des Ardennes Schmiede SA and Porte des Ardennes Pommerlach SA for the refinancing of the shopping centers Knauf located in Schmiede and in Pommerloch, the acquisition of the building Tour & Taxis Royal Depot, the development of the completed project Royal20, the acquisition of the Mercator building, the acquisition of the buildings in Stadlau and the additional investment in the BE-REIT (GVV/SIR) Retail Estates and the development projects Montoyer 63, Treesquare and retail park Strassen). In 2018 there was a capital increase of € 84 million, which had a positive effect on the debt ratio. However, additional investments were realized with the acquisitions of Montoyer 14, EBBC A&C, Hangar 26/27, the underlying buildings of "Immo Lux Airport" and the two retail parks in Vösendorf in Austria. On the other hand, the buildings Kennedy in Luxembourg and Riverside in Belgium were sold in the course of 2019.

In turn, the first half of 2020 was marked by the Covid-19 crisis, which also affected Leasinvest to a significant extent. On the one hand, we were forced to make a number of concessions to our tenants in terms of rental income, which resulted in less EPRA Earnings (and therefore cash income) than expected. On the other hand, GVV Retail Estates was hit much more heavily than Leasinvest, which caused the share price to take a big hit on the Euronext Brussels stock exchange. As Leasinvest holds a 10.7% stake in Retail Estates and this participation is valued at the share price at the balance sheet date, a € 32 million impairment had to be recorded on this stake, which increased the debt ratio. Combined with the distribution of the dividend for the 2019 financial year in May in the course of Q2 2020, the debt ratio has therefore risen to 58.07%.

Financial year	Debt ratio	Note
2020	58,07%	(*)
2019	54,78%
2018	53,53%
2017	57,14%
2016	58,05%
2015	58,03%
2014	54,27%
2013	53,53%
2012	56,19%
2011	47,29%
2010	44,13%
2009	47,61%
2008	52,06%
2007	40,93%	(*)
2006	44,15%	(*)
2005	32,23%	(*)
2004	41,06%	(*)
2003	41,38%	(*)
2002	44,94%	(*)

(*) Closing at 30/06

Evolution of the debt ratio in the long term

The board of directors considers a debt ratio of maximum 50%-55% as being optimal for, and in the interest of the shareholders of Leasinvest Real Estate, and this both with regard to return, net result per share and to mitigating the liquidity and solvency risks.

For each investment the impact on the debt ratio is analysed, and the investment is potentially not selected should it unilaterally influence the debt ratio in a too negative way.

Based on the debt ratio of 58,07% on 30 June 20120 Leasinvest Real Estate has a proportional investment potential based on debt financing of € 240 million without exceeding the 65%-debt ratio, and an investment potential of € 59 million without exceeding the 60%-debt ratio.

Evolution of the debt ratio in the short term

Each quarter a projection of the debt ratio is presented to the board of directors in the scope of the presentation of the budget, in function of the forecasted results and the planned acquisitions and sales. Based on these elements, a projection is made for the coming years.

In the coming months we expect a decrease of the debt ratio.

Other elements influencing the debt ratio

The valuation of the real estate portfolio has a direct impact on the debt ratio. At present there are no indications in the market of strong negative evolutions, although we are vigilant about the possible consequences of the Covid-19 crisis, primarily in the retail segment. Through the diversification of the portfolio of Leasinvest Real Estate, both in terms of assets as geographically, the risk is also mitigated. Should substantial value decreases take place in the real estate portfolio, with the risk that the debt ratio would exceed 65%, Leasinvest Real Estate can proceed to the sale of a number of its buildings to solve that issue.

It is the opinion of the board of directors that no additional measures are necessary to avoid the debt ratio from exceeding 65%.

7 Definition of the fair value of assets and liabilities per level

Assets and liabilities valued at fair value after their initial booking can be presented in three levels (1-3), that each correspond to a different input level to observe the fair value:

• Level 1 inputs are (non-adjusted) quoted prices in active markets for identical assets or liabilities;

• Level 2 inputs are inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. deducted from prices);

• Level 3 inputs are unobservable inputs for the asset or liability based on valuations techniques comprising data for the asset or liability.

Concretely, the company appeals to comparable market data for the valuation of the credits, such as an approximation of the applied reference rate and an approximation of the evolution of the credit margin based on recent comparable observations.

With regard to the financial derivatives, the valuations of the different counterparty banks have been recorded, meaning that a detailed description of these data, as required by level 3, is not possible. However, these instruments were classified under level 2 as we calculate a CVA or a DVA on these received valuations, and this on the basis of data, that are an approximation of the underlying credit risk. The valuation of the private bond is based on an approximation of an observable CDS spread and the evolution of the corresponding Euribor rate.

The financial leasing is valued based on a discounted cash flow principle.

Fair value disclosures:

There were no transfers between items in 2020 in comparison with 31/12/2019.

per 30 June 2020 (in € 1 000)	Level 1	Level 2	Level 3	Fair value	Book value
Non-current financial assets
- Participations in other BE-REIT (GVV/SIR)/real estate certificates	80 944			80 944	80 944
- Other derivative instruments qualified as fair value hedge		182		182	182
Finance-lease receivables			17 672	17 672	17 672
-Other	443			443	443
Current financial assets
Trade receivables		11 511		11 511	11 511
Tax receivables and other current assets		2 051		2 051	2 051
Cash and cash equivalents	4 706			4 706	4 706
Deferred charges and accrued income		1 624		1 624	1 624
Non-current financial debts
- Credit institutions		456 386		456 386	456 386
- Other		102 382		102 382	102 382
Other non-current financial liabilities
- Other financial derivatives through the income statement
- Other financial derivatives through other equity components		54 204		54 204	54 204
- IFRS 16		4 623		4 623	4 623
Current financial debts
- Credit institutions		25 145		25 145	25 145
- Other		102 369		102 369	102 369
Other current financial liabilities
- Other financial derivatives through other equity components
Trade debts and other current debts
- Exit tax		273		273	273
- Other		13 404		13 404	13 404
Other current liabilities		1 510		1 510	1 510
Accrued charges and deferred income		12 058		12 058	12 058

per end 2019 (in € 1 000)	Level 1	Level 2	Level 3	Fair value	Book value
Non-current financial assets
- Participations in other BE-REIT (GVV/SIR)/real estate certificates	113 376	0		113 376	113 376
- Other derivative instruments qualified as fair value hedge		832		832	832
Finance-lease receivables			17 720	17 720	17 720
- Other	443			443	443
Current financial assets
Trade receivables		13 945		13 945	13 945
Tax receivables and other current assets		2 000		2 000	2 000
Cash and cash equivalents	5 013			5 013	5 013
Deferred charges and accrued income		1 023		1 023	1 023
Non-current financial debts
- Credit institutions		324 381		324 381	324 381
- Other		101 390		101 390	101 390
Other non-current financial liabilities
- Other financial derivatives through the income statement
- Other financial derivatives through other equity components		47 196		47 196	47 196
-IFRS 16		4 636		4 636	4 636
Current financial debts
- Credit institutions		15 028		15 028	15 028
- Other		220 121		220 121	220 121
Other current financial liabilities
Trade debts and other current debts
- Exit tax		273		273	273
- Other		15 788		15 788	15 788
Other current liabilities		1 564		1 564	1 564
Accrued charges and deferred income		10 643		10 643	10 643

Report of the statutory auditor to the shareholders of Leasinvest Real Estate SCA on the review of the Interim Condensed Consolidated Financial Statements as of 30 June 2020 and for the six-month period then ended

Introduction

We have reviewed the accompanying interim condensed consolidated balance sheet of Leasinvest Real Estate SCA (the "Company"), and its subsidiaries (collectively referred to as "the Group") as at 30 June 2020 and the related interim condensed consolidated income statement, the statement of comprehensive income, the statement of changes in shareholders' equity and the cash flow statement for the six-month period then ended, and explanatory notes, collectively, the "Interim Condensed Consolidated Financial Statements". These statements show a consolidated balance sheet total of € 1.216.082 thousand and a consolidated loss for the six-month period of € 30.685 thousand. The board of directors is responsible for the preparation and presentation of these Interim Condensed Consolidated Financial Statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ("IAS 34") as adopted by the European Union. Our responsibility is to express a conclusion on these Interim Condensed Consolidated Financial Statements based on our review.

Scope of Review

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying Interim Condensed Consolidated Financial Statements are not prepared, in all material aspects, in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union.

Half-year financial report – Regulated information – Under embargo till 19/08/2020 at 18.30h

Emphasis matter – Covid-19

Without qualifying our review opinion, we draw your attention to the disclosures of the Half-Year Financial Report with regards to the consequences on the result of the Group, of the measures taken relating to the Covid-19 virus. The continuous evolution around the Covid-19 virus, creates an important uncertainty. The impact of these developments on the Group is disclosed in the Half-Year Financial Report and more specifically described in the Chapter "Main risk and uncertainties" regarding the risks and uncertainties for the Group as a consequence of the measures taken relating to the Covid-19 virus.

Brussels, 19 August 2020

EY Bedrijfsrevisoren bv/EY Réviseurs d'Entreprises srl Statutory auditor represented by

Joeri Klaykens* Partner * Acting on behalf of a bv/srl

ANNEX I:

Detail of the calculations of the EPRA performance indicators per 30/06/2020⁷

EPRA EARNINGS

EPRA earnings (€ 1 000)	30/06/2020	30/06/2019
Net Result – Group share as mentioned in the financial statements	-30 684	25 305
Net Result per share - Group share as mentioned in the financial statements (in €)	-5.18	4.27
Adjustments to calculate the EPRA Earnings	-43 787	3 182
To exclude:
(i) Changes in fair value of investment properties and assets held for sale	-6 254	214
(ii) Result on the sale of investment properties	0	795
(iii) Result on the sale of other real estate	0	0
(vi) Changes in fair value of financial instruments and non-current financial assets	-37 533	2 173
EPRA Earnings	13 103	22 124
Number of registered shares result of the period	5 926 644	5 926 644
EPRA Earnings per share (in €)	2.21	3.73

⁷ These figures were not audited by the auditor.

_

EPRA NAV

EPRA NAV (€ 1 000)	30/06/2020	31/12/2019
NAV according to the financial statements	428 439	492 577
NAV per share according to the financial statements (in €)	72.3	83.1
To exclude
(i) Fair value of the financial instruments	54 022	46 364
(v.a) Deferred tax	15 278	14 406
EPRA NAV	497 739	553 347
Number of registered shares result of the period	5 926 644	5 926 644
EPRA NAV per share (in €)	83.98	93.37

EPRA TRIPLE NET ASSET VALUE

EPRA Triple Net Asset Value (€ 1 000)	30/06/2020	31/12/2019
EPRA NAV	497 739	553 347
Adjustments:
(i) Fair value of the financial instruments	-54 022	-46 364
(ii) Revaluation of debts at FV	-4 499	-3 177
EPRA NNAV	439 218	503 806
Number of registered shares result of the period	5 926 644	5 926 644
EPRA NNAV per share (in €)	74.1	85.0

EPRA NIY & EPRA TOPPED UP NIY

EPRA Net Initial Yield (NIY) and Topped up Net Initial Yield (topped up NIY) (€ 1 000)		30/06/2020	31/12/2019
Investment properties and assets held for sale		1 113 402	1 110 249
To exclude:
Development projects		-36 470	-12 322
Real estate available for lease		1 076 932	1 097 927
Impact FV of estimated transfer rights and costs from disposal of investment properties		-	-
Estimated transfer rights and costs resulting from hypothetical disposal of investment properties		22 746	23 279
Investment value of properties available for lease	B	1 099 678	1 121 206
Annualized gross rental income		63 311	63 840
Annualized property charges		-10 840	-11 410
Annualized net rental income	A	52 471	52 430
Gratuities expiring within 12 months and other lease incentives		85	-224
Annualized and adjusted net rental income	C	52 556	52 206
EPRA NIY	A/B	4.77%	4.68%
EPRA Topped up NIY	C/B	4.78%	4.66%

EPRA VACANCY*

EPRA Vacancy* (€ 1 000)	30/06/2020
		Offices	Logistics	Retail	Total
Rental surface (in m²)		152 132	104 025	215 568	471 725
Estimated Rental Value of va cant spaces	A	4.18	0.05	1.77	6.00
ERV of total portfolio	B	29.53	4.06	33.35	66.94
EPRA Vacancy*	A/B	14.16%	1.23%	5.31%	8.96%

EPRA Vacancy* (€ 1 000)	31/12/2019
		Offices	Logistics	Retail	Total
Rental surface (in m²)		156 390	104 025	215 568	475 983
Estimated Rental Value of va cant spaces	A	5.53	0.12	0.86	6.51
ERV of total portfolio	B	31.12	4.04	33.17	68.33
EPRA Vacancy*	A/B	17.77%	2.97%	2.59%	9.53%

EPRA COST RATIO

EPRA cost ratio (€ 1 000)		30/06/2020	30/06/2019
Other rental-related income and expenses		-1 043	-1 170
Property charges		-4 977	-5 037
General corporate overhead		-1 426	-1 716
Other operating charges and income		640	-7
EPRA costs including rental vacancy costs	A	-6 806	-7 930
Direct costs of rental vacancy		506	838
EPRA costs excluding rental vacancy costs	B	-6 300	-7 092
Rental income	C	29 141	32 377
EPRA Cost ratio (including direct vacancy)	A/C	-23.36%	-24.49%
EPRA Cost ratio (excluding direct vacancy)	B/C	-21.62%	-21.90%

ANNEX II: Detail of the calculations of the other Alternative Performance Measures per 30/06/2020⁸

RESULT ON THE PORTFOLIO

Result on the portfolio (€ 1 000)	30/06/2020	30/06/2019
Result on sale of investment properties	0	795
Changes in fair value of investment properties	-5 383	37
Latent taxes on portfolio result	-872	177
Result on the Portfolio	-6 255	1 009

NET RESULT – GROUP SHARE (AMOUNT PER SHARE)

Net result – group share (amount per share)	30/06/2020	30/06/2019
Net Result - group share (€ 1 000)	-30 684	25 306
Number of registered shares in circulation	5 926 644	5 926 644
Net Result - group share per share	-5.18	4.27

NET ASSET VALUE BASED ON FAIR VALUE (AMOUNT PER SHARE)

Net Asset value based on fair value (amount per share)	30/06/2020	31/12/2019
Shareholders' equity attributable to the shareholders of the parent company (€ 1 000)	428 439	492 577
Number of registered shares in circulation	5 926 644	5 926 644
Net Asset Value (FV) group share per share	72.3	83.1

8 These figures were not audited by the auditor.

_

NET ASSET VALUE BASED ON INVESTMENT VALUE (AMOUNT PER SHARE)

Net Asset Value based on investment value (amount per share)	30/06/2020	31/12/2019
Shareholders' equity attributable to the shareholders of the parent company (€ 1 000)	428 439	492 577
Investment value of the investment properties per 30/06 (€ 1 000)	1 137 058	1 133 836
Fair value of the investment properties per 30/06 (€ 1 000)	1 113 402	1 110 249
Difference Investment value – Fair value per 30/06 (€ 1 000)	23 656	23 587
TOTAL	452 095	516 164
Number of registered shares in circulation	5 926 644	5 926 644
Net Asset Value (IV) group share per share	76.3	87.1

CHANGES IN GROSS RENTAL INCOME AT CONSTANT PORTFOLIO (LIKE-FOR-LIKE)

Changes in gross rental income at constant portfolio (like-for like)	30/06/2020 vs. 30/06/2019	30/06/2019 vs. 30/06/2018
Gross rental income at the end of the previous reporting period (€ 1 000)	32 402	27 911
Changes 2019 – 2020 to be excluded	-336	2 111
- Changes following acquisitions	2 697	2 447
- Changes following divestments	-3 033	-336
Gross rental income at closing date reporting period (€ 1000)	29 232	32 402
Change like for like (€ 1 000)	-2 834	2 380
Change like for like (%)	-8.7%	8.5%

AVERAGE FUNDING COST IN %

Average funding cost in %	30/06/2020	31/12/2019
Interest charges on an annual basis (€ 1 000)	-13 442	-12 214
Commitment fees on an annual basis (€ 1 000)	-1 065	-1 156
Interest paid incl. commitment fees on an annual basis (€ 1 000)	-14 507	-13 370
Weighted average drawn debt (€ 1 000)	631 762	625 042
Average funding cost in %	2.30%	2.14%

COMPREHENSIVE INCOME – GROUP SHARE (AMOUNT PER SHARE)

Comprehensive income – Group share (amount per share)	30/06/2020	30/06/2019
Net result - Group share (€ 1 000)	-30 684	25 305
Other elements of comprehensive income	-2 338	-10 193
Changes in the effective part of the fair value of authorized cash flow hedges according to IFRS	-2 338	-10 193
Comprehensive income – Group share	-33 022	15 113
Number of registered shares in circulation	5 926 644	5 926 644
Comprehensive income – Group share per share	-5.57	2.55

Identity card Leasinvest Real Estate

Public REIT (SIR/GVV) under Belgian Law	Leasinvest Real Estate SCA
Legal entity	Limited partnership by shares
Registered office	Route de Lennik 451, 1070 Brussels, Belgium
Administrative office	Schermersstraat 42, 2000 Antwerp, Belgium
Contact	T +32 3 238 98 77 – F +32 3 237 52 99
E-mail	investor.relations@leasinvest.be
Web	http://www.leasinvest.be
Register of legal entities	Brussels
VAT	BE 0436.323.915
Established	8 June 1999, publication MB 26 June 1999 (conversion into real estate investment trust) (nr. 990626-330) 6 November, publication Official Belgian Gazette 3 December 2014 (change into a BE-REIT (SIR/GVV)) (no 20141203-14216372)
Term	Unspecified
Financial year	1 January – 31 December
Listing	Euronext Brussels, BEL MID
Liquidity provider	Bank Degroof Petercam
Financial service	Main paying agent Bank Delen
Auditor	Ernst & Young Réviseurs d'entreprises, represented by Joeri Klaykens
Real estate experts	Cushman & Wakefield – Stadim – Oerag
Supervision	FSMA

This half-year financial report is available on www.leasinvest.be. You can request a printed copy via registration on www.leasinvest.be.

Registered office The Crescent Route de Lennik 451 BE-1070 Brussels

Administrative office Schermersstraat 42 BE-2000 Antwerp T +32 3 238 98 77 F +32 3 237 52 99 E investor.relations@leasinvest.be W www.leasinvest.be Register of legal entities: 0436.323.915

ISIN code BE0003770840 LEI 549300BPHBCHEODTG670