Nextensa SA — Investor Presentation 2019

Nov 5, 2019

Leasinvest Real Estate

Investor Presentation

5 November 2019

Disclaimer

2

This presentation has been prepared by Leasinvest Real Estate Comm. VA, a partnership limited by shares under Belgian law (the "Company"), solely for your information and background and is subject to updating, completion, revision and amendment and such information may change materially. This Presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results, condition, performance, prospects, growth, strategies and the industry in which the Company operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results, condition, performance, prospects, growth or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forwardlooking statements. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results and condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if the Company's results, condition, and growth and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company and each of its directors, officers and employees expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this Presentation or any change in the Company's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based.

No person is under any obligation to update or keep current the information contained in this document and any opinions expressed in relation thereto are subject to change without notice (including the forward looking statements). "Presentation" means this document, and any oral presentation, the question and answer session and any written or oral material discussed or distributed during the "road show presentation". The Presentation comprises written material/slides which provide information on the Company and its subsidiaries. The information contained in this Presentation has not been independently verified by any independent third party. The Company gives no representation or warranty, express or implied, relating to the fairness, accuracy, reasonableness or completeness of the information contained in this Presentation. Neither the Company nor any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this Presentation or its contents.

This Presentation or any part of it does not form the basis of, and should not be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to invest in the Bonds in the framework of the offering must be based on your own research in respect of the Company, the Information Memorandum and the Conditions of the Bonds, including, but not limited to, the associated benefits and risks thereof, as well as the conditions of the private placement of the Bonds. Investors must themselves assess, together with their advisors whether the Bonds are suitable for them, considering their personal income and financial situation. In case of doubt with respect to the risks involved in purchasing the Bonds, investors must abstain from investing in the Bonds.

This Presentation does not constitute an offer or invitation to proceed to an acquisition of or subscription for the Company's securities, nor an offer or invitation to proceed to an acquisition of or subscription for the Company's securities in the United States of America, Switzerland, Canada, Australia, Japan, South-Africa or in any other jurisdiction where such offer or invitation is not allowed without registration or qualification under the applicable legislation of the relevant jurisdiction, or where such offer or invitation does not meet the required conditions under the applicable legislation of the relevant jurisdiction.

This Presentation and any materials distributed in connection with this Presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in the United States of America, Switzerland, Canada, Australia, Japan, South-Africa or any other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Any failure to comply with these restrictions may constitute a violation of the laws or regulations of the United States of America, Switzerland, Canada, Australia, Japan, South-Africa or any other jurisdiction. The distribution of the Presentation in other jurisdictions than Belgium, may be restricted by laws or regulations applicable in such jurisdictions. All persons in possession of this Presentation must inform themselves about, and comply with, any such restrictions.

This Presentation and any materials distributed in connection with this Presentation does not constitute or form part of an offer of securities in the United States of America, or a solicitation to purchase securities in the United States of America. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), or under the securities law of any state or jurisdiction in the United States of America and may not be offered, sold, resold, transferred or delivered, directly or indirectly within the United States of America without prior registration under the US Securities Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and any applicable state securities laws.

Table of contents

1. Key investment highlights	p.	5
2. Company profile & strategic vision	p.	7
3. Activity overview	p.	15
4. Corporate governance	p.	32
5. Portfolio overview	p.	35
6. Highlights 1H 2019	p.	44
7. Financials & outlook	p.	46
8. Bond issue offering	p.	54
Appendices	p.	59

Key investment highlights

Key investment highlights

Company profile & strategic vision

Company profile

€ 1.13 bn Fair value portfolio (> 29/08/2019) € 1.23 bn (incl. participation in Retail Estates) (id)

~ € 717 m Market capitalization 27/10/2019

Shareholders

• Ackermans & van Haaren 30.01%
• AXA Belgium 26.58%
• AG Insurance 7.36%
• Free float 38.42%

Indices:

7

• BEL MID
• EPRA BELGIUM
• EPRA Eurozone

Listed on Euronext Brussels

Investment strategy – Opportunity driven

Investment strategy – Opportunity driven

Development strategy – Organic (re)developments

Montoyer Brussels CBD (BE) Reconstruction by 2018 2016: 21y usufruct with EP

Boomerang Strassen (LU) 2017-2020: redevelopment Strassen

Development strategy – Organic (re)developments

Royal 20 CBD (LU) Reconstruction by 2015 Let to China Merchant's bank Sold with capital gain of > € 20 m on investment

Treesquare (BE) Reconstruction by 2018 Building of ~ 6,500 m² Let to high end occupants

Commercial strategy – Maximizing lease duration & occupancy rates

Dividend

Gross dividend 2018 increased +2% to € 5.10 over 2018 (2017: € 5.00)

Net dividend 2018 amounts to € 3.57 (excl. 30% WHT), vs 2017 € 3.50 (excl. 30% WHT)

Gross dividend yield of 5.84% (31/12/2018)

Consolidated pay-out ratio 2018: 84.58% (2017: 89.77%)

6,5

Activity overview

Investments

15

Agreement with Immo Lux-Airport SA for the acquisition of the EEBC buildings B and E in the EBBC Business Park in Luxembourg

After closing of the first half-year 2019:

Acquisition 2 retail parks near Shopping City Süd in Vösendorf close to Vienna, in Austria

Optional dividend & extra shares Retail Estates

Agreement Immo Lux Airport

EBBC B & E (LU)

LRE is also redeveloping the site to build a stronger business community with advanced services to occupants (restauration, kinder garden + add fitness, co-working, etc.) & shared IT services,

LRE now owns 5 of 6 buildings on total EBBC site

Rebranding

Investment price buildings B & E (were already investment properties through 69.8% stake in Lux Airport certificates: € 47.3 m

benefit from new infrastructures around the site (Tram, Airport, Hotels)

Acquisition

Nordring 2-10 & 16 (AT)

Total investment

€ 71.8 m

Retailpark Nordring 16, Vösendorf 11,350 m² and 202 parking spaces

235,000 m² - 330 shops - footfall +/- 20 million/y

Retail park close to SCS Vösendorf

Tenants: Lidl, Pittarello, Action, Bipa and Farben-Partner

Retailpark Nordring 2-10, Vösendorf

14,800 m² and 278 parking spaces

Tenants: Conrad Electronic, TK Maxx, Swiss Sense, Brendon/Betten Reiter (in 2020), Fit-One, Art-X, Kinderspielwelt,

Fully leased Annual rental income of circa € 4 m

Retail Estates (BE)

Leasinvest (LRE) holds 10.49% share in BE-REIT

Retail Estates (FV € 107.3 m at 30/06/2019)

€ 9.2 m investment in optional dividend and 75,000 extra shares to keep >10% stake

Real estate portfolio of € 1.5 bn (30/06/2019)

Focus = clusters & retail parks (82% of total portfolio)

Portfolio breakdown: BE 77% - NL 23%

LRE must hold minimum 10% stake for fiscal reasons (otherwise 30% withholding tax deducted)

Developments

21

Montoyer 14 CBD Brussels (BE)

Redevelopment Montoyer 14 in the European Quarter

Investment Price: € 23.5 m

First higher wooden construction

C0² neutral passive building

New generation of 'recyclable buildings

Objective: Breaam Excellent

Building permit request introduced end May

Delivery: 16 months Q1/Q2 2021

Design: Archi2000 Architects

Expected Rent Price € 275/m²

Antwerp (BE) Hangar 26/27

Retail and offices 9,395 m²

Investment Price: € 23 m

Danish architects CF Moller have been appointed to design a high -end mixed projects with extension of offices and retail

Building permit request will be introduced beginning of 2020

Construction works foreseen to start in Q4 2020

Redevelopment Knauf shopping center Schmiede (LU)

26

Strengthening position as largest shopping center in the

Leasinvest Leasinvest.be

Strictly confidential - Bond issue offering |

27

Opening C&A Family store of 976 m2

Foreseen Capex: € 30 m

Reception Q3 2021

Finalization interior redesign: end 2019

Redevelopment Knauf shopping center Pommerloch (LU)

28

Extension of parking

additional commercial & office space (both 850 m²)

Extension of Leonidas Chaqwa coffee formula

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Works evolve as scheduled (March 2019 – April 2020)

Monnet, EBBC and Esch: new leases signed in coming months, solving rental vacancy

Frun® Park Asten & Gewerbepark Stadlau: 100% occupancy (extension & renewals)

Mercator: advanced negotiations with potential tenant who would like to lease the space that CSSF will leave end of August

Tour & Taxis Royal Depot: high occupancy thanks to a number of renegotiations and extensions

Brixton Business Park, Riverside Business Park and The Crescent Anderlecht: renegotiations and extensions

Hangar 26/27: new lease at € 165/m²/y

Leases

Treesquare: 100% leased

Knauf Schmiede: opening C&A family store of 976 m² and an extension by 500 m² to a total surface of 760 m² of Selexion shop

Corporate governance

Directors nominated by AvH

Jan Suykens Chairman

CEO & chairman Executive Committee Ackermans & van Haaren

Piet Dejonghe Director member Executive Committee Ackermans & van Haaren

Michel Van Geyte Executive director CEO Leasinvest Real Estate

Jean-Louis Appelmans Director

non-executive director (ex-CEO Leasinvest Real Estate)

Board of Directors & Management

as per 20/05/2019

Independent directors

Wachter Independent director considering INED and/or senior advisory positions in the financial services

Sigrid Hermans Independent director

LIFE group Antwerp, CFO

Michel Van Geyte Chief Executive Officer

25 years of real estate experience of which 3 years as managing partner at Knight Frank Belgium and of which 13 years as COO/CIO with LRE

Dirk Adriaenssen Independent director Managing director Redevco Switzerland Asset Management Services AG

Eric Van Dyck Independent director

Cushman & Wakefield London – Chairman Capital Markets EMEA/ ex-CIO Redevco B.V.

Tim Rens Chief Financial Officer

12 years of audit experience at Deloitte of which 4 years as Senior Audit Manager - Joined LRE in 05/2017 – effective officer

Executive committee

(as of 1 December 2018)

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Colette Dierick Independent director

CEO ING Luxembourg S.A.

Board of Directors & subcommittees

	BoD	AC	BRC
Jan Suykens	Chairman, non-executive director		X (chairman)
Michel Van Geyte	Managing director
Piet Dejonghe	non-executive director	X
Jean-Louis Appelmans*	non-executive director
Dirk Adriaenssen	Independent director
Eric Van Dyck	Independent director		X
Marcia De Wachter**	Independent director	X
Colette Dierick**	Independent director
Sigrid Hermans**	Independent director	X (chairman)	X

* Till annual meeting of 2020

** Till annual meeting of 2023

Remuneration of independent directors and Jean-Louis Appelmans: € 2,500 per meeting of the board of directors and the committee they are a member of, on top of the annual fixed remuneration (€ 20,000 for the BoD and € 4,000 per committee).

01 Focused on two segments in three countries

Excluding stake in Retail Estates

02 A unique combination of market segments and geographical diversification

03 Demonstrating long term growth through a focused approach

Focus on three countries

• i.e. Luxembourg Belgium Austria
• sale of Swiss portfolio in 2017

Focus on two asset classes

• i.e. retail and offices
• sale of largest part of logistics portfolio in 2017

04 On the back of solid occupancy rates

Occupancy rates per 30 June 2019 Duration leases till first break per 30 June 2019 (in years)

Strictly confidential - Bond issue offering | Leasinvest

Leasinvest.be

Office Market (1H 2019)

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Luxembourg

Vacancy rate ~ 3.6%

Take-up: 41,334 m²(down due to global context)

Prime rent ~ € 52/m²/month

Prime yield ~ 3.75%

Belgium

Take-up Brussels (+120% YoY) of which 55% in projects

Vacancy rate: 7.6% (CBD 3.3%)

Prime rent CBD: 315€/m²/y (Treesquare at € 330/m² /y)

Investments: € 1.2 bn (+7% YoY)

Prime yield: 4.15% (LT 3.5%)

Retail Market (1H 2019)

Luxembourg

Rental market: take-up 14,261 m² shopping centers +50% vs 5-y 1H average & representing 50% of total, due to completion of several projects (e.g. Cloche d'Or – 70,000 m² )

Stable prime rents

Austria

Increasing online sales lead to a stagnation of retail spaces

Retail sales and retail space per capita among highest in Europe

Turnover and sales expected to be supported by population and income growth over next 5years

Luxembourg is a key intermediary of global capital flow with more than € 4 .16 tn of assets under management

Luxembourg has been an employment magnet for neighboring countries and beyond

Economic performance has remained strong in 2018, with a GDP growth of 3.6%, with 4.0% forecasted for 2019

The external position of Luxembourg has remained in surplus 5.5% to GDP

Financial sector performance remained strong

Luxembourg's compliancy with international anti-tax avoidance and transparency initiatives is progressing

While demand for retail properties remains high, supply is limited, weighting on yields

The production of new space for retail parks and shopping centres has basically come to a standstill

Most of the attractive development locations are occupied

Shopping centres are focusing more on quality improvements instead of further expansion

	2017	2018	2019
GDP growth (%yoy)	2.6	2.7	1.6
Headline inflation (%yoy)	2.2	2.1	2.0

Vienna confirmed as best place to live worldwide

Austria's economy is powering ahead

42

Highlights 1H 2019

Highlights 1H 2019

Dividend 2018 +2% € 5.10/share

EPRA earnings increase by 5.3% to € 14.0 M lease term of 3.97 years

from € 13.3 M (H1 2017)

Important rise of net

(H1 2017, € 3.16/share)

result

(+26%) to € 19.7 M (€ 3.99/share) from € Real estate portfolio of € 1.162 bn including Retail Estates

Funding cost drops to 2.34% from 2.59% (2018)

Net result € 25.3 m (€ 4.27/share) vs € 19.7 m (1H 2018, € 3.99/share)

rise by 58% to ~ € 22.1 m from ~ € 14.0 m (1H 2018 & including dividend from RE)

EPRA earnings

Debt ratio at Weighted average 55.70%

Financials & outlook

Key consolidated financials

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

	Key figures balance sheet	30/06/2019	31/12/2018
	Net asset value group share (€ 1,000)	464 431	475 811
	Weighted average number of shares after capital increase on 04/10/2018	5 926 644	5 179 724
	Number of shares at closing date	5 926 644	5 926 644
	Net asset value group share per share (€)	78.4	80.3
	Net asset value group share per share based on investment value (€)	82.0	83.9
	Net asset value group share per share EPRA (€)	89.1	88.7
	Total assets (€ 1,000)	1 216 969	1 156 107
	Financial debt (€ 1,000)	609 950	595 400
Key	Financial debt ratio (in accordance with RD 13/07/2014)	55.70%	53.53%
	Average duration credit lines (years)	2.96	3.11
consolidated	Average funding cost (excluding fair value adjustments fin. instruments)	2.34%	2.59%
financials	Average duration hedges (years)	6.61	5.35
1H 2019	Key figures income statement	30/06/2019	30/06/2018
	Rental income (€ 1,000)	32 377	27 858
	Net rental result per share (€)	5.46	5.64
	EPRA Earnings (1) (€ 1,000)	22 124	13 968
	EPRA Earnings per share (1) (€)	3.73	2.83
	Net result group share (€ 1,000)	25 305	19 683
	Net result group share per share (€)	4.27	3.99
	Comprehensive income group share (€ 1,000)	15 113	19 082
	Comprehensive income group share per share (€)	2.55	3.86

(1) De 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.

EPRA KPIs 1H 2019

(1) The 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.

(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 long-term 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 correct 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

EPRA performance measures	30/06/2019	30/06/2018
EPRA Earnings* (in € per share) (1)	3.73	2.83
EPRA NAV* (in € per share) (2)	89.07	82.84
EPRA NNNAV* (in € per share) (3)	80.3	75.46
EPRA Net Initial Yield* (in %) (4)	5.32%	5.49%
EPRA Topped up Net Initial Yield* (in %) (5)	5.33%	5.50%
EPRA Vacancy* (in %) (6)	5.16%	5.54%
EPRA Cost ratio* (incl. direct vacancy costs) (in %) (7)	24.49%	22.96%
EPRA Cost ratio* (excl. direct vacancy costs) (in %) (7)	21.90%	21.09%

Consolidated

income statement

Sixth year in a row

	Consolidated statement of realized and unrealized results (in 1,000 €)		30/06/2018
(+)	Rental income	32 377	27 858
(+)	Write-back of lease payments sold and discounted	0	0
(+/-)	Related-rental expenses	-202	0
NET RENTAL INCOME		32 175	27 858
(+)	Recovery of property charges	2	76
(+)	Recovery income of charges and taxes normally payable by tenants on let properties	2 856	1 524
(-)	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	-2 856	-1 524
(+/-)	Other rental related income and expenditure	-1 170	-903
	PROPERTY RESULT	31 006	27 031
(-)	Technical costs	-469	-508
(-)	Commercial costs	-478	-371
(-)	Charges and taxes on un-let properties	-838	-520
(-)	Property management costs	-2 905	-2 555
(-)	Other property charges	-348	-222
PROPERTY CHARGES		-5 037	-4 176
	PROPERTY OPERATING RESULT	25 969	22 855
(-)	Corporate operating charges	-1 716	-1 438
(+/-)	Other operating charges and income	-7 24 246	122
	OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO		21 539
(+/-)	Result on disposal of investment properties	795	0
(+/-)	Changes in fair value of investment properties	214	25
OPERATING RESULT		25 255	21 564
(+)	Financial income	5 167	59
(-)	Net interest charges	-6 238	-6 803
(-)	Other financial charges	-656	-563
(+/-)	Changes in fair value of financial assets and liabilities	2 173	5 690
	FINANCIAL RESULT		-1 617
PRE-TAX RESULT		25 702	19 947
(+/-)	Corporate taxes	-396	-264
(+/-)	Exit tax	0 -396	0
TAXES			-264
NET RESULT		25 305	19 683

Consolidated balance sheet

(€ 1,000)	30/06/2019	31/12/2018
ASSETS
I. NON-CURRENT ASSETS	1 192 663	1 116 270
Intangible assets	0	0
Investment properties	1 037 334	1 004 237
Other tangible assets	1 036	1 263
Non-current financial assets	136 527	92 974
Finance lease receivables	17 765	17 796
II. CURRENT ASSETS	24 306	39 837
Assets held for sale	0	15 050
Trade receivables	15 545	13 166
Tax receivables and other current assets	3 316	3 303
Cash and cash equivalents	4 178	7 403
Deferred charges and accrued income	1 268	915
TOTAL ASSETS	1 216 969	1 156 107

(€ 1,000)	30/06/2019	31/12/2018
LIABILITIES
TOTAL SHAREHOLDERS' EQUITY	464 431	475 811
I. SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY	464 431	475 811
Capital	65 178	65 178
Share premium account	194 189	194 189
Purchase of treasury shares	-12	-12
Reserves	179 770	178 262
Translation differences	0	0
Net result of the financial year	25 305	38 194
II. MINORITY INTERESTS		0
LIABILITIES	752 538	680 296
I. NON-CURRENT LIABILITIES	393 968	385 013
Provisions - other	11	11
Non-current financial debts	325 723	334 509
- Credit institutions	304 384	312 359
- Other	21 339	22 150
Other non-current financial liabilities	53 549	35 625
Other non-current liabilities
Deferred taxes	14 686	14 868
II. CURRENT LIABILITIES	358 569	295 283
Provisions
Current financial debts	288 173	264 198
- Credit institutions	47 500	47 533
- Other	240 673	216 665
Other current liabilities	0	0
Trade debts and other current debts	14 339	17 698
- Exit tax	0	0
- Other	14 339	17 698
Other current liabilities	44 938	2 048
Accrued charges and deferred income	11 119	11 339
TOTAL EQUITY AND LIABILITIES	1 216 969	1 156 107

Funding

Cost of debt: decrease from 2.59% (2018) to 2.34% (1H 2019)

Total committed lines (incl. bonds) of € 651.5 m (30/06) (on 29/8/19 extended to € 716,5 m)

Duration credit facilities decreased from 3.11y (2018) to 2.96y (1H 2019)

Available headroom credit facilities € 41 m

50

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Rental yield vs funding cost

Rental yield Funding cost

0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 180 000 2019 2020 2021 2022 2023 2024 2025 2026

Funding diversification

• Bilateral floating rate Bilateral fixed rate
• Bonds
• Commercial paper

Hedging

Debt financing – 52% fixed ratio Hedge ratio (30/06/2019) – 81% Fixed rate debt, incl. bonds (29%) and interest rate swaps (52%)

Duration hedges: 6.61y vs 5.35y (2018)

New forward starting derivatives purchased (Interest Rate Swaps and CAP-options) < low interest rates

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Hedge ratio

Outlook FY 2019

As already mentioned in the annual financial report 2018, subject to extraordinary circumstances, LRE expects a higher rental income in comparison with 2018, while the financial costs are expected to be in line with those of the previous year. However, we have to take into account that the number of shares has increased after the capital increase of October 2018, the results of 2019 having to be divided over 5.9 million shares vs 5.2 million shares in 2018, being the weighted average number of shares throughout 2018.

Within this scope, a dividend is forecasted that will at least be equal to the dividend over the financial year 2018, namely € 5.10 gross per share.

Bond Issue Offering

Key investment highlights

1 Operations subject to a defensive umbrella of BE-REIT Regime

Unique exposure to the growing retail and office markets in Luxembourg, topped up with positions in Belgium and Austria

3 Proactive commercial approach translating into a high quality tenant base

4 Successful diversification in terms of asset type and geography

5 Experienced management team with proven track record

Conservative funding strategy with a smooth debt maturity profile, stable capital structure and solid debt coverage metrics

7 Earnings resilience with recurring income and cash flow visibility

8 Strong dividend track record

Terms and conditions of the offering

Issuer	Leasinvest Real Estate SCA/Comm. VA
Currency	EUR
Issue amount	n.a.
Denomination	EUR 100,000 plus EUR 100,000
Tenor	[7 to 8 years]
Interest	Fixed interest rate, payable [annually] on each payment date
Status	Senior unsecured
Form	Dematerialised
Use of proceeds	Diversify financial resources and execute current investment strategy
Financial covenants	Debt ratio of max. 65%, interest cover ratio of min. 2.0x
Listing	Euronext Growth Brussels
Paying agent	KBC Bank
Redemption	At maturity, change of control
Law	Belgian
Global Coordinator	Bank Degroof Petercam and BNP Paribas Fortis
Bookrunners	Bank Degroof Petercam, BNP Paribas Fortis, KBC Bank
Negative pledge	Yes
Events of default	Non-payment, breach of other obligations/undertakings, cross-acceleration, enforcement, insolvency/reorganization, loss of status, delisting, unlawfulness

Bond covenants

Bond covenants

Debt ratio(1)

• For the duration of the bonds and until the effective and full redemption in principal and interest, the Issuer ensures that the consolidated debt ratio will not exceed 65%
• The 65% maximum is also imposed on BE-REITs by Belgian Law. A debt ratio exceeding 65% leads to the loss of the BE-REIT status

Interest cover(2)

For the duration of the bonds and until the effective and full redemption in principal and interest, the Issuer ensures that the interest coverage ratio is above 2.0x

Negative pledge

• The Issuer shall only be entitled to create a Security over the shares issued by Leasinvest Real Estate to: Debt ratio related maximum debt ratio of 65%
  • secure relevant financial debt (of any nature whatsoever) of itself, or any other person, or
  • secure any guarantee or indemnity in respect of relevant financial debt (of any nature whatsoever) of itself, or any other party,

unless the Issuer establishes, at the latest at the same time, the same Security in equal rank in respect of the Bonds

Pari passu

The bonds rank equally amongst themselves and with all existing and future unsubordinated and unsecured obligations of the issuer

Change of Control

Change of Control (CoC) covenant allows investors to put (sell) their bonds back to the company when a specified event has changed the ownership/control of the company

Existing LRE's debt facilities covenants

The concluded bank credits hold classic covenants mainly related to maintaining the REIT (SIR/GVV) status and the

(1) Debt ratio = (Total liabilities – provisions – authorized hedges recorded in liabilities – deferred taxes, charges and accrued income) / (Total assets – authorized hedges recorded in the assets) (2) Interest cover ratio = EBIT/interest expenses

Use of proceeds

The bond issue will support diversification of financial resources and further growth of LRE's portfolio

• LRE will use the proceeds to :
  • further expand its portfolio base through acquisitions in retail and office markets across Luxembourg, Belgium and Austria
  • redevelop its existing core assets using 'smart and green building' technologies
  • execute LRE's current investment strategy
  • diversify its financial resources(1)
• LRE aims to achieve economies of scale through strategic acquisitions, divestments of non-core assets and sufficient diversification per geography, per asset type
• Furthermore, the bond issue will also contribute to an increase of the average duration of the total debt given its relatively long term

Focus on prime retail and CBD office sectors Divestment of non-strategic buildings

Leasinvest.be ⁵⁷

Strictly confidential - Bond issue offering | Leasinvest

(1) The € 75m public bond has just come to maturity on 9/10/2019, therefore it is a good timing for the issuance of a new bond to maintain debt diversification

Appendices

Share price performance

share price LRE EPRA Eurozone Index EPRA Belgium Index

Share performance

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Figures till 25 October 2019 included

Share performance

61

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

Figures till 9 September 2019 included

Share performance

Performance report August 2019

Investor relations team

Michel Van Geyte Chief Executive Officer

Michel Van Geyte (53) joined Leasinvest Real Estate in August 2004. He is CEO and executive director of Leasinvest Real Estate and Leasinvest Immo Lux.

michel.vangeyte@leasinvest.be

Tim Rens Chief Financial Officer

Tim Rens (38) joined Leasinvest Real Estate as CFO in May 2017.

tim.rens@leasinvest.be

Structure & Corporate governance

Corporate Structure (as of 29/08/2019)

Strictly confidential – Bond issue offering | Leasinvest

Leasinvest Immo Austria and subsequently owns 10% of the abovementioned Austrian SPV's (remaining 90% ownded by Leasinvest Immo Austria)

= building Hangar 26-27

Main assets

RETAIL Shopping center Knauf Pommerloch North of Luxembourg Acquisition: 2013

OFFICES & WAREHOUSE CFM

3,600 m² Offices en 10,000 m² Warehouse

RETAIL Batiself & Siemes Diekirch Acquisition: 2008

Montimmo Avenue Monterey, CBD Acquisition: 2008

OFFICE

Main assets in Luxembourg

RETAIL Shopping center Knauf Schmiede North of Luxembourg / Acquisition: 2012 RETAIL Strassen 2 phase renovation 2017-2020 Route d'Arlon Acquisition: 2008

EBBC Airport

Acquisition: part of initial portfolio 2006 + 2017, 2018 & 2019

OFFICE Monnet Kirchberg Acquisition: part of initial portfolio 2006

OFFICE Mercator Route d'Arlon Acquisition:

2017

67

Strictly confidential – Bond issue offering | Leasinvest Leasinvest.be

RETAIL

Motstraat 30, Acquisition: 2002 OFFICE The Crescent Anderlecht Lenniksebaan 451, Anderlecht Acquisition: 2004

OFFICE / RETAIL

Brixton Business Park Brixtonlaan 1-30, Zaventem Acquisition: 1999

OFFICE

Montoyer Riverside Business Park Internationalelaan 55, Anderlecht Acquisition: 1992-96

Main assets in Belgium

OFFICE / RETAIL Tour & Taxis Avenue du Port 86C, Brussels Acquisition: 2015

OFFICE / RETAIL Hangar 26/27 Rijnkaai, Antwerp Acquisition:

Strictly confidential – 2018 Bond issue offering | Leasinvest Leasinvest.be

OFFICE Treesquare Square de Meeûs 5-6, Brussels Acquisition: 2005

Frun Park Asten Linz - 200 KM from Vienna

Acquisition: 2016

Main assets in Austria

Hornbach Baumarkt (Stadlau 22nd district Vienna)

Acquisition: 2017

Gewerbepark Stadlau (Stadlau 22nd district Vienna) Acquisition: 2017