Leasinvest Real Estate ends 1st Quarter in line with budget.

 

The accounts to 30/09/2002 and to 30/06/2003 in this press release are consolidated accounts and the figures to 30/09/2003 are individual figures after the merger following the take-over of its subsidiaries Brussimmo SA and Ekiport SA by Leasinvest Real Estate SCA. This merger has been approved by the Extraordinary General Meeting of shareholders of 28 November 2003 and has retroactive effect on the accounts as from 1 July 2003.

Following the approval of this merger by the Extraordinary General Meeting of shareholders, 5 additional shares have been issued. The value per share and data relating to the number of shares, mentioned in this press release, still take into account the number of shares before the merger.

 

 

			First quarter	Financial year 2002-2003	First quarter
			2003-2004		2002-2003
			01/07/2003	01/07/2002	01/07/2002
			30.09.2003	30.06.2003	30.09.2002
Portfolio (x 1.000 EUR)
	Estimated investment value		263,579	266,079	268,508
Rents (x 1.000 EUR)			5,252	20,872	5,206
Debt ratio (%) (2)			40.91	42.33	41.26
Net asset value per share (EUR) (3)			53.94	53.45	54.77
Operating result per share (EUR)			1.51	5.99	1.60
Profit for appropriation per share (EUR)			1.24	4.51	1.19
Occupancy rate (%)
	Including rental guarantees		96.74	97.77	98.15
	Excluding rental guarantees		96.70	96.24	96.92
Rental yield (%)
	Including rental guarantees		7.95	7.97	7.90
	Excluding rental guarantees		7.95	7.85	7.81
Number of shares			2,830,366	2,830,366	2,830,366
(1) After deduction of 13% costs
(2) Including provisions exit tax
(3) Including dividend on 30/09/2002 and on 30/09/2003; excluding dividend on 30/06/2003

 

 

 

 

			First quarter	Financial year 2002-03	First quarter
			2003-2004		2002-2003
			1/07/2003	01/07/2002	01/07/2002
			30.09.2003	30.06.2003	30.09.2002
ASSETS
FIXED ASSETS			263,579	266,079	268,508
Tangible assets			263,579	266,079	268,508
CURRENT ASSETS			7,361	8,972	6,059
Amounts receivable after more than 1 year			111	131	187
Amounts receivable within 1 year			2,673	3,501	4,660
Investments, cash in hand and at bank			4,344	5,200	614
Deferred charges and accrued income			233	140	598
TOTAL ASSETS			270,940	275,051	274,567
LIABILITIES
CAPITAL AND RESERVES			152,666	151,287	155,025
PROVISIONS			1,837	4,173	2,658
DEBTS			116,437	119,591	116,884
Financial debts after more than 1 year			45,000	0	7,475
Financial debts within 1 year			47,240	98,180	88,633
Trade debts and taxes			6,158	3,422	3,080
Other debts			12,456	12,476	11,835
Accrued charges and deferred income			5,583	5,513	5,861
TOTAL LIABILITIES			270,940	275,051	274,567
Solvency (%)			56.35	55.00	56.46
Debt ratio (%) (1)			40.91	42.33	41.26
(1) Including provisions exit tax

 

 

 

 

	First quarter	Fiancial year 2002-2003	First quarter
	2003-2004		2002-2003
	01/07/2003	01/07/2002	01/07/2002
	30.09.2003	30.06.2003	30.09.2002
NET CURRENT RESULT
Operating income	6,032	23,954	5,854
Operating charges	-1,745	-7,007	-1,335
Operating result	4,287	16,947	4,519
Financial income (1)	32	101	54
Financial charges (1)	-831	-4,164	-1,200
Taxation	-44	-142	-5
Net current result	3,444	12,742	3,368
PORTFOLIO RESULT
Change in market value of elements of the portfolio	-1,991	-2,702	-1,163
Gain or loss on disposal of elements of the portfolio	56	25
Portfolio result	-1,935	-2,677	-1,163
EXTRAORDINARY RESULT
Extraordinary income	0	7	0
RESULT FOR APPROPRIATION
Profit of the financial year	1,509	10,072	2,205
Appropriation of the change in market value of the portfolio
Transfer to the non-distributable reserves (-)
Withdrawal from the non-distributable reserves (+)	1,991	2,702	1,163
Profit for the financial year for appropriation	3,500	12,774	3,368
(1) Net coverage result

 

 

 

 

In the consolidated accounts to 30/06/2003, the Brussimmo SA and Ekiport SA subsidiaries were fully consolidated (minority interests were minimal (<1%)) so that the individual accounts to 30/09/2003, that are taking into account the merger, can be validly compared with the consolidated accounts to 30/09/2003 and 30/06/2003 before the merger.

 

The operating income during the first quarter was 6.03 million EUR (compared with 5.85 million EUR in the first quarter of last year).  The operating result was 4.29 million EUR, a decrease of 5% compared with 30/09/2002 because more maintenance and renovation work was carried out.  Low interest rates improved the financial result by 30% in comparison with a year ago.  Consequently, the net current result was 3.44 million EUR, or 2.2% up on the 3.37 million EUR to 30/09/02.

 

The portfolio result was characterised by a relatively slight reduction in value, amounting to
-0.75% (-1.99 million EUR), compared with the estimated values on 30 June 2003[1] (mainly due to the Riverside Business Park in Anderlecht: - 1.2%[2], the Axxes Business Park in Ghent-Merelbeke: -2.2%2, Extensa Square in Evere: -0.9%2 and avenue Louise 66: -2,4%2), as established by independent valuers, and a capital gain of 56,000 EUR realized on the sale on 16/09/2003 of the building at Britse Lei 3-5-7 in Antwerp.

 

The profit for appropriation in the past quarter amounted to 3.50 million EUR, compared with 3.37 million EUR during the same quarter of the previous financial year, i.e. an improvement of 3.9%.

 

The estimated investment value of the real estate portfolio on 30 September 2003 amounted to 263.6 million EUR[3], a slight decline (0.93%) compared with the 266.1 million EUR at the end of the previous financial year (30 June 2003).

 

The net asset value of the portfolio rose to 152.67 million EUR (up 1% compared with the end of the previous financial year).  Net asset value per share including dividend amounted to 53.94 EUR compared with 53.45 EUR to 30 June 2003 (excluding dividend).

 

During the last quarter, 45 million EUR in short-term debt was consolidated into long-term, with the interest rate risk being almost entirely covered by interest rate swaps (20 million EUR at 3.15% and 20 million EUR at 3.37%).

 

The debt ratio fell from 42.33% as of 30/06/2003 to 40.91%.  The occupancy rate of the portfolio remains high, at 96.70% excluding rental guarantees; the rental yield including rental guarantees was 7.95% compared with 7.90% as of 30/09/02.  The rental guarantees were negligible as of 30/09/2003 (8,300 EUR).

 

 

 

The merger between Leasinvest Real Estate SCA (acquiring company) and its 2 subsidiaries Brussimmo SA and Ekiport SA (companies taken-over), which has been approved by the extraordinary general meeting of shareholders held on 28/11/2003, is, in accounting terms, retroactive from 01/07/2003. The merger gave rise to the creation of 5 new Leasinvest Real Estate SCA shares, and a capital increase of 54.98 EUR.

 

 

In July 2002, Leasinvest Real Estate signed an in-principle agreement for the sale of the office building in the Britselei 3-5-7 in Antwerp.  The deed by which the real estate fund sold the office building for 0.56 million EUR, was recorded in September 2003, and the capital gain realized was 56,000 EUR in relation to the estimated investment value as of 30/06/03. The transaction was part of Leasinvest Real Estate's divestment policy, under which it will dispose of a number of smaller buildings with a view to optimise the management of the portfolio.

 

 

On 1 September 2003, the sale option was exercised, which means that ownership of the building will be transferred definitively to the purchaser by 31/12/2003.  The sales price was 1,010,000 EUR, excluding registration fees and deed costs, which corresponds to the estimated value on 30 June 2003.

 

Leasinvest Real Estate forecasts a net current result of 13.09 million EUR or 4.63 EUR per share, for the financial year 2003/2004.  The figures for the past quarter are entirely in line with the budget.

 

 

Real estate fund Leasinvest Real Estate SCA (www.leasinvest-realestate.com) manages a portfolio of high quality portfolio of office and semi-industrial buildings, with an estimated investment value of 263.6 million EUR (value on 30 September 2003).  The buildings are located in the Brussels/Ghent/Antwerp triangle.

 

The portfolio has a total surface of over 190,000 m2, situated in 14 different locations.

 

The major investments of the real estate fund include

• Brussels: the business parks Brixton Business Park in Zaventem (36,042 m2), the Riverside Business Park (26,931 m2) and Route de Lennik 451/Erasmus Science Park (15,132 m2) in Anderlecht and Extensa Square in Evere (12,218 m2)
• Ghent: the Axxes Business Park in Merelbeke (23,447 m2)
• Antwerp: the distribution centre Prins Boudewijnlaan 7 in Kontich (27,589 m2).

Leasinvest Real Estate is listed on Euronext and is a member of the NextPrime segment since January 2002.

 

 

Shareholder structure

On 4 July 2003, the lock-up of the Euro Crossroads Business Park SA lapsed, which meant that since that date, 100,250 additional shares are traded on the stock market.  This led to the shareholder structure on 04/07/2003 shown below:

 

 

 

	Number of shares	%
Leasinvest SA Apollo Development SA Free float Total	1,154,047 104,742 1,571,577 2,830,366	40.77 3.70 55.53 100

 

 

 

 

 

***The press release can be downloaded from the following link***