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2014-05-14

Leasinvest Real Estate SCA: Interim statement of the manager over the first quarter of the financial year 2014 (01/01/14-31/03/14)

1. Activity report period 01/01/14- 31/03/14

Sale office building avenue Louise 66 in Brussels

On 27 January 2014 Leasinvest Real Estate sold the office building located
Avenue Louise 66 in Brussels to Immo Graanmarkt sprl for a net amount of
10,350,000 euro, which exceeds the fair value end 2013. This office complex
located opposite the Steigenberger (ex-Conrad) hotel consists of 2 connected
buildings and 1 commercial space (ground floor). It has a total rental
surface of 3,398 m² and is entirely let.

This sale fits the strategy of Leasinvest Real Estate to divest smaller, less
strategic buildings. As a consequence of this divestment, the offices part in
Belgium slightly decreased to 16%.

Lettings

SKF, of which the real estate leasing contract would expire at the end of
2016, has opted for a further extension till end 2025. The site comprises a
logistics building of 25,000 m² in Tongres, and is used as a European
logistics hub for the Swedish multinational.

The tenant Caterpillar has cancelled its rental contract that expires on
30/10/2014, at our site Canal Logistics site in Neder-over-Heenbeek
(Brussels). The tenant Sal. Oppenheim has also cancelled its rental contract
for the office building located at Kirchberg (Luxembourg) that expires on
31/12/2014. Given the very good situation of both buildings and the low
vacancy rate at both locations, re-letting is expected to take place within a
normal term frame.

2. Key figures

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|Key figures real estate portfolio (1) 31/03/2014 31/03/2013 |
|Fair value real estate portfolio (€ 1,000) (2) 710,674 596,938 |
|Fair value real estate portfolio, incl. participation Retail Estates (€ 1,000) 753,633 630,749 |
|(2) |
|Investment value real estate portfolio (€ 1,000) (3) 724,070 610,200 |
|Rental yield based on fair value (4) (5) 7.33% 7.34% |
|Rental yield based on investment value (4) (5) 7.20% 7.18% |
|Occupancy rate (5) (6) 96.81% 95.45% |
|Average duration of leases (years) 4.96 4.45 |
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(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 31/03/2014.
(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 / Winssinger and Associates / Stadim.
(5) For the calculation of the rental yield and the occupancy rate only the
buildings in operation are taken into account, excluding the assets held for
sale.
(6) The occupancy rate has been calculated based on the estimated rental value

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| 31/03/2014 31/03/2013 |
|Net asset value group share (€ 1,000) 339,830 266,112 |
|Net asset value group share per share 68.8 66.3 |
|Net asset value group share per share based on investment value 71.5 69.6 |
|Net asset value group share per share EPRA 73.4 72.8 |
|Total assets (€ 1,000) 782,411 648,244 |
|Financial debt 402,863 339,301 |
|Financial debt ratio (pursuant RD 7/12/2010) 52.66% 53.69% |
|Average duration credit lines (years) 3.44 3.13 |
|Average funding cost (excl. fair value changes hedges) 3.66% 3.01% |
|Average duration hedges (years) 5.59 5.66 |
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| 31/03/2014 31/03/2013 |
|Rental income (€ 1,000) 12,523 10,500 |
|Net rental result per share (€) 2.54 2.62 |
|Net current result (€ 1,000) (1) 5,857 5,503 |
|Net current result per share (€) (1) 1.19 1.37 |
|Net result group share (€ 1,000) 7,508 6,542 |
|Net result group share per share (€) 1.52 1.63 |
|Global result group share (€ 1,000) 4,499 10,108 |
|Global result group share per share (€) 0.91 2.52 |
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(1) The net current result consists of the net result excluding the portfolio
result and the changes in fair value of the ineffective hedges.

3.
Consolidated results period 01/01/14- 31/03/14

The first quarter of 2014 is in line with the outlook for Leasinvest Real
Estate.

Therental income
of Leasinvest Real Estate over the first quarter of 2014 has risen by 19.3% (+
2,022 thousand euro) and amounts to 12,523 thousand euro in comparison with
10,500 thousand euro for the first quarter of 2013.

This evolution is mainly the consequence of the investments realised at the
end of the previous year, i.e. the contribution of 3 months of rental income
from the Knauf Shopping Center in Pommerloch and from the building located in
Bertrange, let to Hornbach.

At constant portfolio, the rental income increases by 3.8% or 410 thousand
euro in comparison with the same period last year.

The average duration of the rental contracts has slightly decreased to 4.96
years in comparison with 5.23 years end 2013.

The gross rental yields have increased in comparison with end 2013 and amount
to 7.33% (end 2013: 7.31%) based on the fair value and to 7.20% (end 2013:
7.18%) based on the investment value.

Theoccupancy rate[1]end March 2014 (96.81%) is almost identical to end 2013
(96.9%).

The fair value[2]of the direct real estate portfolio amounts to 711 million
euro end March 2014 compared to 718 million euro end December 2013.

The decrease is explained by the sale of the building located Avenue Louise 66
(Brussels) in the first quarter of 2013 (-8.2 million euro).

Thenet current result
[3]of the first quarter amounts to 5.9 million euro (or 1.19 euro per
share[4]), in comparison with the net current result of 5.5 million euro (or
1.37 euro per share) for the comparable period of last year. The decrease can
mainly be explained by the full recognition of the increased subscription tax
in the first quarter following the amended legislation of end June 2013. In
2013 this amount was entirely recognized in the second quarter of 2013.

Thenet result
, group share, amounts to 7.5 million euro end March 2014 compared to 6.5
million euro in comparison with the same period last year.

In terms of net result per share, this gives 1.52 euro end March 2014 compared
to 1.63 euro end March 2013. This increase is mainly the consequence of the
aforementioned higher rental income and a positive capital gain in comparison
with the same period last year.

Thefinancial resultover the first quarter of 2014 amounts to -3.9 million euro
in comparison with -2.1 million euro for the same period in 2013, and was
also negatively impacted by fair value adjustments on financial assets and
liabilities of -300 thousand euro in comparison with 327 thousand euro for
the same period last year. The funding cost has increased to 3.66% as a
consequence of more fixed rate outstanding credits and public and private
bond loans issued last year.

At the end of the first quarter of the financial year 2014 shareholders'
equity, group share (based on the fair value of the investment properties)
amounts to 339.9 million euro (2013: 335.3 million euro).

End March 2014 the net asset value per share stands at 68.8 euro (31/12/13:
67.9 euro). End March 2014 the closing price of the Leasinvest Real Estate
share amounted to 80.17 euro, or 16.5% higher than the net asset value. The
net asset value per share excl. the influence of the fair value adjustments
on financial derivatives (EPRA) also increases and stands at 73.4 euro end
March 2014 in comparison with 71.5 euro end 2013.

Following the divestment, the debt ratio has decreased and stands at 52.66%
(53.53% end 2013).

The board of directors of the statutory manager has proposed to the ordinary
general shareholders' meeting of Leasinvest Real Estate, that will be held on
19 May 2013, to distribute over the financial year 2013 a dividend of 4.50
euro gross and net, free of withholding tax, 3.375 euro (based on 25%
withholding tax).

Subject to the approval of the ordinary general shareholders' meeting of 19
May 2014, dividends will be paid out on presentation of coupon no 16, or 2.14
euro gross, on 4 June 2013 (after closing of the Stock Exchange), detached
from the shares existing before the capital increase, representing the pro
rata dividend for the financial year 2013, calculated pro rata for the period
between 1 January 2013 and the issue date of the new shares, i.e. 25 June
2013, and coupon no 17, or 2.36 euro gross, representing the dividend for the
period after the issue date of the new shares and 31 December 2013, as of 26
May 2014 at the financial institutions Bank Delen (main paying agent), ING
Bank, Belfius Bank, BNP Paribas Fortis Bank and Bank Degroof.

4. Outlook

It is expected that unless exceptional circumstances and unforeseen capital
losses on the existing real estate portfolio and interest rate hedges a
better net result and better net current result will be achieved than in
2013.

For more information, contact:

Leasinvest Real Estate

Jean-Louis Appelmans

CEO

T: +32 3 238 98 77

E: jeanlouis.appelmans@leasinvest.be

Leasinvest Real Estate Comm.VA

Real estate investment trust (sicafi) Leasinvest Real Estate SCA invests in
high quality and well-located retail buildings, offices and logistics
buildings in the Grand Duchy o...

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