Half-year financial report 2021

Regulated information – Under embargo till 18/08/2021 at 17.40h

www.leasinvest.be

Please note that this half-year financial report comprises the results of the Company until 30 June 2021, at the moment a/o the business combination with Extensa Group NV was not yet approved by the extraordinary general meeting of 19 July 2021 and the Company therefore was still subject to the GVV/SIR status and was not yet converted into an NV. More details on these important changes that took place after 30 June 2021 can be found in this report.

MISSION

Since 19 July 2021, together with Extensa, Leasinvest has become a combined developer/real estate investor. Leasinvest 2.0, whose new name will be announced at the end of this year, will focus on developing mixed inner-city products combined with a qualitative portfolio that will generate a recurring return. The synergy makes it possible to create inspiring environments with added value and consistent returns for all our stakeholders with a diverse team of passionate professionals.

COMPANY PROFILE

Since 19 July 2021, Leasinvest Real Estate NV has been a mixed real estate investor and developer.

As of 19 July 2021 the total value of the investment portfolio is approximately EUR 1.4 billion, distributed among the Grand Duchy of Luxembourg (45%), Belgium (42%) and Austria (13%).

Leasinvest is one of the largest real estate investors in Luxembourg.

As of 19 July the total value of the development portfolio is approximately EUR 0.3 billion and is distributed among the Sites of Tour&Taxis and Cloche d'Or, on which mixed developments (residential and offices) are ongoing and on which new subprojects will be launched in the coming years.

The Company is listed on Euronext Brussels and has a market capitalisation of € 678 million (value 17 August 2021).

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

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 65 et seq of this half-year financial report.

Statement of responsible persons
Key figures	7
Interim annual report	10
Leasinvest Real Estate on the stock exchange	29
Real estate report
Market information	34
Composition and analysis of the real estate portfolio	38
Conclusions of the real estate expert	43
Condensed financial statements	45
Report of the auditor	63
Annexes	65

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

The Board of directors of Leasinvest Real Estate NV, 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.

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

Business combination with Extensa Group

On 19 July 2021, the extraordinary general meeting of shareholders of the Company (the "EGM") approved all decisions submitted to it, including the contribution in kind of the shares in Extensa and the shares in Leasinvest Real Estate Management NV ("LREM"), the former manager of the Company, by Ackermans & van Haaren. The contributions represent a combined contribution value of EUR 293,433,036 and were contributed in exchange for the issue of 4,075,458 new shares in Leasinvest Real Estate to Ackermans & van Haaren.

Since 21 July 2021 the new shares are listed on the regulated market of Euronext Brussels.

For more information regarding this transaction we refer to the press release https://leasinvest.be/media/documents/LRE_EGM_19_07_2021_ENG_Final.pdf.

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

KEY FIGURES

KEY FIGURES REAL ESTATE PORTFOLIO (1)	30/06/2021	31/12/2020
Fair value real estate portfolio (€ 1,000) (2)	1 131 102	1 141 190
Fair value investment properties, incl. participation Retail Estates (€ 1,000) (2)	1 223 668	1 221 053
Investment value investment properties (€ 1,000) (3)	1 155 599	1 165 816
Rental yield based on fair value (4) (5)	5.64%	5.63%
Rental yield based on investment value (4) (5)	5.52%	5.51%
Occupancy rate (5) (6)	92.57%	91.62%
Average duration of leases (years)	3.77	3.85

(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 30/06/2021.

(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	30/06/2021	30/06/2020
Rental income (€ 1,000)	30 393	29 141
Net rental result per share	5.10	4.92
EPRA Earnings* (1)	15 621	13 103
EPRA Earnings* per share	2.64	2.21
Net result group share (€ 1,000)	27 977	-30 684
Net result group share per share	4.72	-5.18
Comprehensive income group share (€ 1,000)	33 112	-33 022
Comprehensive income group share per share	5.59	-5.57

(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	30/06/2021	31/12/2020
Net asset value group share (€ 1,000)	489 208	487 211
Number of shares at closing date	5 926 644	5 926 644
Net asset value group share per share	82.5	82.2
Net asset value group share per share based on inv.	86.7	86.4
value Net asset value group share per share EPRA	90.6	91.3
Total assets (€ 1,000)	1 244 054	1 240 548
Financial debt	670 760	663 550
Financial debt ratio (in accordance with RD 13/07/2014)	56.04%	55.58%
Average duration credit lines (years)	3.07	3.36
Average funding cost (excl. fair value changes financial instruments)	2.09%	2.35%
Average duration hedges (years)	4.49	4.58

1 EPRA PERFORMANCE MEASURES *	30/06/2021	30/06/2020
EPRA Earnings* (in € per share) (1)	2.64	2.21
EPRA NRV* (in € per share) (2)	94.59	87.82
EPRA NTA* (in € per share) (3)	90.62	83.98
EPRA NDV* (in € per share) (4)	82.17	71.53
EPRA Net Initial Yield* (in %) (5)	4.45%	4.77%
EPRA Topped up Net Initial Yield* (in %) (6)	4.46%	4.78%
EPRA Vacancy* (in %) (7)	9.79%	8.96%
EPRA Cost ratio* (incl. direct vacancy costs) (in %) (8)	24.46%	23.36%
EPRA Cost ratio* (excl. direct vacancy costs) (in %) (8)	22.77%	21.62%

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

(2) EPRA NRV*: reflects what would be needed to reassemble the company through the investment market and on the basis of the current capital and financing structure, including real estate transfer taxes.

(3) EPRA NTA*: the NAV has been adjusted to include real estate and other investments at their fair value that excludes certain items that are not expected to materialise in a long-term business model with real estate investments.
(4) EPRA NDV*: EPRA Net Disposal Value reflects a scenario of the sale of the company's assets, leading to the realisation of deferred taxes and the liquidation of debt and financial instruments.
(5) 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.
(6) EPRA Topped up Net Initial Yield* corrects the EPRA Net Initial Yield* with regard to the ending of gratuities and other rental incentives granted.
(7) EPRA Vacancy* is calculated on the basis of the Estimated Rental Value (ERV) of vacant surfaces divided by the ERV of the total portfolio.
(8) EPRA Cost ratio* consists of the relation of the operating and general charges versus the gross rental income (including and excluding direct vacancy costs).

¹ These figures have not been audited by the auditor.

INTERIM ANNUAL REPORT

MICHEL VAN GEYTE CEO:

"We are pleased to be able to start with Leasinvest 2.0, with the new name being announced in the last quarter. The new structure offers us a wider spectrum of activities and opportunities to meet the future challenges of the real estate market."

Highlights first half-year 2021

For the first half-year of the financial year 2021 we record the following key data:

Foreseen business combination with Extensa approved during extraordinary general meeting of 19 July 2021 turning Leasinvest into a mixed real estate investor-developer as of that date
The EPRA earnings*rise from € 13.1 million end H1 2020 to € 15.6 million (or € 2.64 per share vs € 2.21 per share end H1 2020)
The net result amounts to € 28.0 million (€ 4.72 per share) end H1 2021 (vs € - 30.7 million or € -5.18 per share end H1 2020)
The funding cost decreases again to 2.09% (end 2020: 2.35%)
The occupancy rate increases to 92.57% (end 2020: 91.62%)
Important leases in Belgium and Luxembourg: full pre-lease of the office project Monteco in the CBD of Brussels and new rental contracts in Mercator-High 5 and in shopping center Pommerloch in Luxembourg

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

Activity report period 01/01/2021- 30/06/2021

Developments

GRAND DUCHY OF LUXEMBOURG

Shopping center Knauf Pommerloch

For the shopping center Knauf Pommerloch located in the north of the Grand Duchy of Luxembourg near the Belgian border, the new car park (partially), the entrance to the gallery Bastogne-side and the new commercial spaces were opened at the end of 2020 and were made available to visitors. The final delivery and the full opening of the parking took place in Q2 2021.

After the opening of the New Yorker store of 1,250 m², the company has concluded negotiations with 2 major retailers, namely: Foot Locker for 476 m², and Fressnapf for 600 m². Foot Locker will open the largest Foot Locker in Luxembourg end Q3. Fressnapf, a large German retail chain in Petfood will offer the visitors an offer that was not yet available in the shopping center. These leases prove once again the appeal of the shopping center.

Since the relaxation of the corona measures, the number of visitors has risen again and there are shopping days that even exceed the figures of 2019. The weather conditions, but also the up and down covid wave movements do not yet give the stable flow, but everything indicates that the store visitors are definitely back.

Shopping center Knauf Schmiede

The major renovation works, with an extension of approximately 8,500 m², take place in 2 phases, the first of which was finalized and opened to the public with a gallery whose interior was renewed and in which 2 new kiosks, Fred's and Leonidas, were opened, in addition to a children's play area. The completion of the extension and occupation of the commercial spaces is foreseen in Q2 2022. These works include a broader commercial offer, a new catering concept and a zone for activities and relaxation for families.

In the meantime, the demolition works for zone 2 have been completed. The new building part started in the course of Q1 2021 with the demolition works and the installation of the foundations for the building with a planned opening in Q2 2022.

In shopping center Schmiede we have noted an even larger increase in visitor numbers than for shopping center Knauf Pommerloch.

EBBC business park, currently Moonar

The EBBC business park renamed Moonar will be completely repositioned and will become the new Campus of Luxembourg. A concept with an emphasis on community, green and outdoor environment, various places-to-meet such as libraries, coffee bar, and a new pavilion. The estimated renovation budget is € 34 million and final completion is expected in the course of 2023. A number of vacant spaces are no longer offered on the market, in order to be able to start and continue the gradual renovation. In the meantime the first negotiations with potential tenants have started.

Mercator, Route d'Arlon, currently High 5!

Mercator is being renamed High 5! The building, which is currently 82% occupied, is being renovated and adapted to the needs of a young and dynamic audience. The vacant floors are completely stripped and renewed. In the meantime, the demolition works have started and the renovation is ongoing. Leasinvest Immo Lux occupies its new offices since the end of June.

In June, a new rental contract was concluded for the entire 3rd floor, with current tenant CHL – Centre Hospitalier de Luxembourg (see further the item 'Leases').

BELGIUM

Brussels – Office building Monteco (Montoyer 14)

The office building Monteco will be a project that will differentiate itself as to smart technology in combination with a timber frame construction. Leasinvest's ambition is to build the first high-rise building in a timber frame construction in Brussels and to be the reference for the new generation of sustainable "recyclable buildings".

After finalizing the demolition works, after the construction leave, the preparation of the new building was started, with first the underground floors in concrete, and then the superstructure in wood. The completion of the new building is planned for Q3 2022.

On 1 July 2021 a long-term lease was signed with Bank Nagelmackers NV for the entire building. The rental contract, that starts at the delivery of the building has been concluded for a period of 12 years, based on a rent of € 295/m².

Hangar 26/27 Antwerp

Together with the Danish architectural firm CF Moller 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, was designed, at this particular and unique location in the city.

After the last tenant has left the ground floor, the renovation of both the ground floor (1,000 m²) and the façade will start in September 2021, with foreseen completion in Feb/March 2022.

Leases

EVOLUTION OCCUPANCY RATE

The occupancy rate has further increased to 92.57% (91.62% per end 2020).

LEASES

Grand duchy of Luxembourg

As already mentioned above, the Mercator/High 5! office building is undergoing a rebranding at the moment, with renovation of the common areas and the vacant offices. Since 1 June a new rental contract was concluded for 1,933 m² (entire 3rd floor), with CHL – Centre Hospitalier de Luxembourg, current tenant of a floor since last year. At current, only three quarters of the 2nd floor remain available, or 1,456 m² (in renovation), which brings the occupancy of the building to 82%.

In Shopping center Knauf Pommerloch, besides the successful opening of the new New Yorker store, a new rental contract was concluded with Fressnapf, active in pet foods. Furthermore, at the end of August 2021 the works for the opening of the largest Foot Locker store in Luxembourg will start.

Belgium

More than a year before the reception of the building, a long-term lease was concluded with Bank Nagelmackers NV for the entire building Monteco. The rental contract, that starts at the reception of the building foreseen in Q3 2022, is concluded for a duration of 12 years based on a rent price of € 295/m².

As far as the retail part of the Brixton Business park is concerned, negotiations with potential tenants are ongoing for the space previously occupied by Megaworld.

For Tour & Taxis Royal Depot a number of new rental contracts were concluded for retail premises on the ground floor. Moreover, negotiations are ongoing for important rental renewals.

Austria

Two new leases were concluded for the Frun Park in Asten. On the one hand, electronics chain Hartlauer will further diversify the tenant mix, on the other hand there will be a new coffee bar, which will strengthen the catering offer now that it reopened after Corona. Both rentals ensure that the occupancy rate at frun park in Asten remains consistently at 100%.

Events within Extensa Group NV that are relevant for Leasinvest 2.0

Agreement with AB Inbev for the operation of the food court in Gare Maritime

Brewery AB InBev and project developer Extensa are joining forces for a brand new food concept. This autumn they will open a Food Market in Gare Maritime, the bustling commercial heart of Tour & Taxis. It will be an innovative culinary meeting place where everyone with a heart for tasty and healthy food can come and taste the richness of Belgian gastronomy. Sustainability and positive impact are paramount. The Gare Maritime Food Market will be the largest in Europe and will excel in qualitative details. The project offers space for 10 restaurants, cozy covered terraces and trendy food shops. The Victoria Flagship Bar will be responsible for the necessary drinks.

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

Consolidated results period 01/01/2021- 30/06/2021

The first half-year of 2021 is characterized by a strongly increased net result and EPRA result in comparison with the same period last year. This is due to the fact that the first half-year of 2020 was characterized by a lower rental turnover caused by the Covid-19 crisis. In the first half-year of 2021 this impact is way less important resulting in an increase in rental turnover.

The rental income has risen compared to the first half of last year: € 30.4 million in H1 2021 vs € 29.1 million in H1 2020. On the one hand, the like-for-like increase amounts to € 2,8 million which can largely be explained by the fact that the first half-year of 2020 was heavily impacted by the Covid-19 crisis.

The gross rental yields have slightly rise in comparison with end 2020 and amount to 5.64% (5,63% end 2020) based on the fair value and 5.52% (5.51% end 2020) based on the investment value; the occupancy rate has increased from 91.62% end 2020 to 92.57% on 30/06/2021.

The property charges have slightly decreased (- € 0.2 million) from - € 5.0 million in H1 2020 to - € 4,8 million in H1 2021. The operating margin (operating result before portfolio result/rental income) rises from 73.54% end June 2020 to 75.36% on 30 June 2021.

The result of the sale of investment properties amounts to + € 3.2 million and concerns the capital gain realised on the sale of Brixton Logistics in February 2021.

The changes in fair value of the investment properties on 30/06/2021 amount to - € 5.5 million (30/06/2020: - € 6.3 million). This impairment relates mainly to the Knauf shopping centers in the north of the Grand Duchy of Luxembourg and to the effect of deferred taxes on the revaluations of Luxembourg real estate.

The financial result (excluding revaluations of financial assets and liabilities) amounts to € 6.4 million on 30/06/2021 compared to - € 8.0 million for H1 2020. The decrease is mainly due to the decrease in hedging costs. The financing cost decreased from 2.35% at the end of December 2020 to 2.09% at the end of June 2021.

The changes in fair value of financial assets and liabilities (+€ 14.6 million) include a/o the revaluation of the participation in Retail Estates (+€ 12.7 million) and that of the derivatives portfolio (+€ 2.3 million).

The net result for H1 2021 amounts to +€ 28.0 million compared to -€ 30.7 million on 30/06/2020. In terms of net result per share, this result gives a ratio of € 4.72 per share on 30/06/2021 compared to -€ 5.18 on 30/06/2020.

The EPRA Earnings* at the end of June 2021 amount to € 15.6 million (€ 2.64 per share) which represents an increase of 19% compared to 30/06/20 (€ 13.1 million or € 2.21 per share).

At the end of the second quarter of the financial year 2021, the shareholders' equity, group share (based on the fair value of the investment properties) amounted to € 489.2 million (year-end 2020 € 487.2 million).

On 30 June 2021, there was an increase in equity of € 2.0 million due to a dividend of € 31.1 million paid out, offset by a positive net result for the first half of 2021 of € 28.0 million and a positive revaluation of the efficient derivatives amounting to € 5.1 million that was directly accounted for in equity.

The EPRA NTA (net tangible assets) excluding the impact of fair value adjustments on financial instruments amounts to € 90.6 per share at the end of June 2021 compared to € 91.3 per share at the end of 2020.

At the end of June 2021, the net asset value including the impact of the fair value adjustments on the financial instruments (IAS 39) amounts to € 82.5 per share (31/12/20: € 82.2). The closing price of the Leasinvest Real Estate share on 30 June 2021 was € 67.20.

By the end of June 2021, the debt ratio amounted to 56.04% compared to 55.58% at the end of 2020, mainly due to the dividend payment in May 2021.

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

Management of financial resources

As at 30/06/2021, the nominal financial debts included in the balance sheet amount to € 670.8 million compared to € 663.6 million on 31/12/2020. This increase is mainly due to the payment of the dividend for the past financial year 2020, partly offset by the proceeds from the sale of the Brixton Logistics Park.

On 30/06/2021, these financial debts amounting to € 670.8 million contained € 341.5 million in bank credit lines with variable interest, € 80.0 million in fixed-rate bank credit lines, € 100.0 million in bonds and € 149.3 million in commercial paper withdrawals.

The breakdown of the credit portfolio by type of financing sources and by number of lenders (currently spread over 8 different lenders) is an important element to be able to count on a continuous financing basis in which concentrations and counterparty risks are limited to the maximum. The withdrawals listed below are graphically presented in combination with a representation of the maturities of the credit lines.

Credit lines 30/06/2021

Variable rate Fixed rate Bonds Commercial paper

Credit withdrawals 30/06/2021

The use of commercial paper increased again in the first half of the year compared to the first half of 2020. Last year, the Covid-19 crisis had an impact on the use of commercial paper but given the resurgence of financial markets in the first half of 2021, we are seeing an increase in the use of commercial paper. Given the short-term nature of this source of financing, available, undrawn bank credit lines are provided at all times for the outstanding amount in the commercial paper program. After deducting this buffer, Leasinvest Real Estate still has more than € 58 million of available undrawn credits on 30/06/2021.

No new lines of credit were entered into during the first half-year of 2021. After 30 June 2021, another credit line due in 2021 of EUR 38 million was extended for 4 years.

The weighted average duration of the credit lines granted is 3.07 years as at 30/06/2021.

Maturities credit lines 30/06/2021

The hedge ratio at 30/06/2021 is 74% and is calculated on the basis of the joint nominal outstanding hedging amount of the Interest Rate Swaps and Interest Rate Caps (€ 333.0 million), plus the fixed rate credits incl. bonds (€ 180.0 million) on the total outstanding amount of financial debts as at 30 June 2021 (€ 670.8 million). The weighted average duration of the hedges at 30/06/2021 is 4.49 years, which is lower than the 4.58 years on 31 December 2020. Leasinvest closely follows the interest rate markets and in the course of the first quarter of 2021, following the sale of the Brixton Logistics Park, one more early repayment of an interest rate swap was made with a view to keeping the hedge ratio constant.

Partly because of this, the weighted average financing cost as of 30 June 2021 has decreased to 2.09% compared to 2.35% at the end of December 2020.

Important events after the closing of the period 01/01/2021-30/06/2021

BUSINESS COMBINATION WITH EXTENSA GROUP

The contribution of the shares in Extensa is part of the Company's intention to transform the Company into a listed mixed real estate player through a business combination with Extensa, which invests in real estate on the one hand and develops real estate on the other hand to either sell or hold in portfolio.

This new business model implies a number of fundamental changes from the framework in which the Company operated in the past. The EGM has therefore decided to voluntarily waive the status of public regulated real estate company (and the associated tax regime). In addition, the EGM has decided to transform the Company into a public limited company with (collegiate) board of directors under the CCA.

The main agenda items were the voluntary waiver by the Company of its REIT status and the contributions in kind of the shares in Extensa and the shares in Leasinvest Real Estate Management NV. For the other agenda items we refer to the minutes of the EGM held on 19 July 2021, available on the company website.

For more information on the new structure, we refer to the press release published on 19 July 2021: https://leasinvest.be/media/documents/LRE_EGM_19_07_2021_ENG_Final.pdf.

Due to the fact that the RREC status was waived, there was an immediate claimability of all bank credits, the bond and the commercial paper program concluded by Leasinvest Real Estate and its subsidiaries. The change in the shareholder structure also entitled certain creditors to terminate the relevant credit agreements and demand early repayment. The two main lenders of LRE and Extensa, BNP Paribas Fortis and Belfius, were the first to agree to renounce this claimability and to leave their credits in force after the transaction, whereby the financial covenants are adapted to the new structure. In the meantime, apart from € 15 million, all credit agreements remained in force as before, as nearly all banks agreed with a reformulation of the covenants related to these credits. Thes covenants are comparable to those that were already in force under the GVV/SIR status. BNPPF had granted the Company a credit line of EUR 250 million in the event that the other banks did not follow suit. Due to the agreement of the banks it is no longer necessary to have this back-up line, reason why it has already been terminated.

The waiver of the RREC status has also led to a claimability ground under the outstanding bond loan of Leasinvest Real Estate (with a total nominal amount of EUR 100 million, denominations of EUR 100,000, a fixed interest rate of 1.95% and maturing 28 November 2026) issued on 20 November 2019 by means of a private placement with investors. Upon waiving the RREC status,, every bondholder was granted the right, to declare the bonds he holds due and payableTo anticipate this, the Company has concluded a bridge financing with BNPPF amounting to EUR 100 million, so that any repayment cannot affect the Company. To date, no refund has been demanded. Meanwhile, the general meeting of bond holders was convened on August 9, 2021. Here, the required quorum was not met, resulting in a second general meeting of bond holders that will take place on 8 September 2021.

Currently, an update of the commercial paper programme is ongoing, in order to align it to the new structure.

RENTAL AGREEMENT FOR THE ENTIRE MONTECO BUILDING

On 1 July 2021, Leasinvest Real Estate signed a long-term lease agreement with Bank Nagelmackers NV for the entire Monteco building. The lease, which takes effect upon completion of the building foreseen in Q3 2022, has been entered into for a duration of 12 years on the basis of a rental price of € 295/m². This lease proves that this revolutionary ecological building perfectly meets the need of corporates to profile themselves in an ESG compliant building.

Corporate Governance

GENERAL MEETING OF 17/05/2021

At the ordinary general meeting of Leasinvest Real Estate SCA of 17 May 2021, the renewal of the mandate of Auditor Ernst & Young Bedrijfsrevisoren BV, represented by Mr. Joeri Klaykens, was a/o approved, and this for a period of 3 years until after the ordinary general meeting in 2024.

At the general meeting of the statutory manager of that same date, a/o the approval of the reappointment of Mr. Jean-Louis Appelmans as non-executive director was approved, until after the general meeting of May 2022.

EXTRAORDINARY GENERAL MEETING OF 19/07/2021

Following the extraordinary general meeting of 19/07/2021, a board of directors took place, appointing Mr. Jan Suykens as Chairman of the Board of Directors and Mr. Michel Van Geyte as managing director of the Leasinvest Real Estate NV. In addition, the various Committees were set up, which are now composed as follows:

The nomination and remuneration committee:

1. Mr. Jan Suykens (Chairman of this committee);
1. SoHo BV, permanently represented by Mrs. Sigrid Hermans;
1. Starboard BV, permanently represented by Mr. Eric Van Dyck.

The audit committee:

1. SoHo BV, permanently represented by Mrs. Sigrid Hermans (Chairman of this committee);
1. Brain@Trust BV, permanently represented by Mrs. Marcia De Wachter;
1. Mr. Piet Dejonghe.

The Corporate Governance Charter was also amended in view of the waiver of the GVV/SIR status, the transformation into an NV with a collegiate board of directors under the CCA and the other changes that the aforementioned EGM entailed. This adapted Charter can be found on https://leasinvest.be/en/about-us/corporate-governance/.

Overview of the main related-party transactions

In the period 01/01/2021-30/06/2021, application was made of Article 7:97 of the CCA. Since Ackermans & van Haaren controls the Company within the meaning of the old Companies Code ("CC") and is a related party within the meaning of the international accounting standards which have been approved in accordance with Regulation (EC) 1606/2002, the conflict of interest procedure of Article 657 juncto 524 CC and Article 7:97 of the Code of Companies and Associations ("CCA") has been applied to the LREM Contribution and the Extensa Contribution for governance reasons. For more information, we refer to the press release of 18/06/2021.

Main risks and uncertainties

For an overview of the main risks and uncertainties, we refer to the risks as described in the prospectus of 21 July 2021 as available on the Company's website.

The Covid-19 crisis has still had an impact on rental income as of 30 June 2021 (€ 1.0 million), spread over the various tenants in the different countries, but to a lesser extent than in the first half of 2020 (€ 2.5 million).

Outlook for the financial year 2021

The results of Leasinvest Real Estate NV, before the business combination realized per 19/07/2021, remain in a favorable evolution, assuming that the Covid-19 disruption is behind us. Due to the business combination with Extensa, the investment portfolio is significantly expanded by approximately 280 million euro through the integration of the Tour & Taxis site. Due to the opening of the food court at Gare Maritime, more visitors are expected in the autumn and the site can use its full potential from 2022.

As for the developments on Tour & Taxis, the sale of residential units (319 units) of Phase I will be completed before the end of the year. The start-up of the planned sale of Phase II (346 units), for which the building permit was obtained, is planned for October 2021.

The sale of the residential units at Cloche d'Or is going according to schedule. 209 units were sold on plan of the 463 units and we expect that 32% will be realized by the end of 2021. The lease of the Darwin II office building, which was built at risk, is progressing smoothly, so we expect the building to be fully leased by the end of this year.

In this context, the new proposed dividend policy of Leasinvest Real Estate will be based on a distribution of 40-60% of the EPRA Earnings linked to the investment portfolio. On this basis, Leasinvest Real Estate NV also aims to increase its dividend, partly thanks to the potential of exceptional realised capital gains on the sale of real estate investments or profits from development projects.

Leasinvest Real Estate NV has the ambition to keep its seat in the EPRA index and, as such, represent a unique investment opportunity in the Belgian EPRA universe.

LEASINVEST REAL ESTATE ON THE STOCK EXCHANGE

Shareholder structure

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

Where the capital of the Company per 30 June 2021 amounted to € 65,177,693.57, represented by 5,926,644 shares, it amounts to EUR 109,997,148.34 as of 19 July 2021 and is represented by 10,002,102 shares. The Extraordinary General Meeting of Leasinvest Real Estate of 19 July 2021 introduced, in accordance with Article 7:53 of the CCA, the double voting rights (loyalty voting right). The paid-up shares registered continuously in the register of registered shares in the name of the same shareholder for at least two years shall confer a double right to vote. The remaining shares entitle to one vote.

The term of two years starts as of the date of the registration of the nominative shares in the shareholders' register.

Leasinvest Real Estate NV uses the LIFO-method ("last in, first out") to calculate the period of two consecutive years. For the same nominative shareholder, the last acquired shares are the first shares that will be deducted in the event of a later transfer or dematerialization, of his total ownership of nominative shares of the Company, unless the request for dematerialization or transfer documentation expressly states otherwise.

At the date of the publication of this half-year financial report, 1,802,817 shares² in the Company entitle to double votings rights and the total number of voting rights amounts to 11,804,919, or the denominator within the framework of the transparency legislation.

Besides the legal thresholds, article 12.2 of the articles of association of the Company, in accordance with article 18, §1 of the Transparency law, foresees an additional notification _

² 204 of the 1,802,817 shares in the Company, that in principle entitle to double voting rights, are held by a subsidiary of the Company. The voting rights related to these 204 shares are consequently suspended.

threshold of 3%. There are no outstanding options or subscription rights that entitle to shares.

Following the adoption of the loyalty voting right, the Company received transparency notifications based on which the shareholder structure of the Company is now as follows:

Date	Company	Denominator at the moment of notification	Number of voting rights	Voting rights (%)
22/07/2021	Ackermans & van Haaren NV	11,804,919	7,632,584	64.66%
27/07/2021	Axa SA	11,804,919	1,586,646	13.44%
26/07/2021	AG Insurance	11,804,919	304,108	2.58%

Key figures

	30/06/2021	31/12/2020
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)	398	461
Free float (%)	36.05%	36.05%
Closing price (€) (1)	67.20	77.80
Highest price (€) (1)	82.00	129.00
Lowest price (€) (1)	67.20	66.20
Average monthly volume (#) (1)	45 348	51 252
Velocity (%) (1) (2)	9.18%	10.38%
Free float velocity (%) (1) (3)	25.47%	28.79%
Discount based on closing price vs NAV (fair value)	-18%	-15%

(1) For the financial year 31/12/2020 the data are calculated over a period of 12 months and for 30/06/2021 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 the Leasinvest Real Estate share versus the return on the EPRA indices³

Share price LRE EPRA Eurozone index EPRA Belgium index _

3 Information from EPRA, not verified by any authority – www.epra.com

In the first half-year of 2021, the share price of Leasinvest Real Estate fluctuated between € 82.00 and € 67.20. The impact of the Covid-19 crisis was also felt in the first half of the year. The discount to net asset value (based on closing price / fair value) was -18% at 30/06/2021.

Both EPRA indices (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 indices have recovered well with a permanently higher return for the EPRA Eurozone index. However, the return of the Leasinvest Real Estate has decreased compared to both indices.

HAL-YEAR FINANCIAL REPORT – Regulated information – Under embargo till 18/08/2021 at 17.40h

Financial calendar

Interim statement Q3 (30/09/2021)	16/11/2021
Annual results 2021 (31/12/2021)	16/02/2022
Annual financial report 2021	31/03/2021
Interim statement Q1 (31/03/2022)	16/05/2022
Annual meeting of shareholders	16/05/2022
Dividend payment	23/05/2022
Half-year financial report 2022	17/08/2022

REAL ESTATE REPORT

Real estate market over the first half-year of 2021

The information on the real estate market shown below contains extracts from Cushman & Wakefield's real estate market reports for Belgium, JLL for the Grand Duchy of Luxembourg, and CBRE for Austria, which are freely made available on their respective websites, and the content of which has not been verified.

GRAND DUCHY OF LUXEMBOURG

Office market

Rental market

The first half of 2021 was characterised by a set of exceptionally large transactions that boosted take-up by 136% to 271,494 m² . The European institutions represented 53% of the total volume. These impressive figures hide another reality; the recurring transaction flow has been slow to recover this year so far.

During the first half, speculative completions amounted to a shy 6,400 m² in two buildings. The quasi-absence of non-pre-committed deliveries in recent months compensates for the lack of occupier activity, so the vacancy rate fell back to 3.7% vs. 4.0% at the end of 2020. There is a sizeable development pipeline scheduled for the next 3 years in all districts, so the outlook is clearly higher.

Rental values logically were under upward pressure given the scarcity of prime office space available. In the CBD for example prime rents climbed from € 51 to € 54/m² /month. A more remarkable change was observed in the Station district with an 8.5% jump to € 38/m² /month as well as in Kirchberg (+5.5% also to € 38). The same applies to the Cloche d'Or district with a 4.7% upside to € 36/m² /month.

Investment market

The first semester was somewhat quieter than a year ago with a half yearly volume of € 664 million, i.e. 24% short of the same period last year. The office segment is dominant as witnessed by a volume of € 553 million that closed during the six-month period. We recorded a retail transaction (the Cora in Foetz), land sales and mixed-use deals, and

received interest from institutional investors for "Living" transactions. At this stage, residential opportunities are extremely scarce in Luxembourg; the same observation is valid for Logistics properties. Both assets are considered as safe havens by long term investors but are missing from the Luxembourg market.

Developers are actively searching and, as such, demonstrate confidence in the long-term prospects of the city.

Yields compressed by 25 bps to 3.5% during the second quarter.

Retail market

Rental market

On the retail rental market, rents are under pressure, though expected to remain relatively stable throughout 2021 after having experienced declines in 2020 in the high streets and shopping centres segments as activity and footfall were below average levels. However, letting activity was in line with the last year's average.

Investment market

On the retail investment market, out-of-town retail should continue to witness interest, especially where a food retailer is present.