Leasinvest Real Estate - Half-year results financial year 2006/2007 (period of 01/07/06 - 31/12/06)

 

 

	31/12/06	31/12/05
Real estate portfolio in fair value (1) (3) (in 1,000 EUR)	476,302	272,238
Real estate portfolio in investment value (2) (3) (in 1,000 EUR)	488,510	279,210
Occupancy rate (4)	96.97%	92.97%
Rental yield based on fair value	7.45%	7.32%
Rental yield based on investment value	7.27%	7.14%
Number of issued shares	4,012,832	3,249,221
Number of shares participating in the result	4,012,832	3,249,221
Number of listed shares	4,012,628	3,249,221
Rental income (in 1,000 EUR)	17,014	9,375
Rental income per share	4.24	2.89
Net current result, share of the group (in 1,000 EUR) (5)	9,043	5,429
Net current result per share, share of the group	2.25	1.67
Net result, share of the group (in 1,000 EUR)	17,959	8,619
Net result per share, share of the group	4.48	2.65

 

(1) fair value: the investment value as defined by an independent real estate expert and of which the transaction costs, as defined on p. 75 of the annual brochure 2005/2006, are deducted; the fair value is the accounting value under IFRS

(2) the investment value corresponds to the previously used term "investment value" and is the value as defined by an independent real estate expert and of which the transaction costs, as defined on p. 75 of the annual brochure 2005/2006, have not yet been deducted

(3) takes into account the headings "investment properties" under the non-current assets and "assets available for sale" (4) the occupancy rate takes into account all buildings and is calculated based on the estimated rental value as follows: (estimated rental value - estimated rental value on vacancy) / estimated rental value

(5) net result minus portfolio result

 

 

 

The condensed consolidated interim financial statements will be drawn up according to IAS 34 and will be incorporated in the half-year report.

 

in 1,000 EUR		Period	Period
		31/12/06	31/12/05
RESULTS		IFRS	IFRS
(+)	Rental income	17,014	9,375
(+)	Writeback of lease payments sold and discounted
(+/-)	Related rental expenses	0	-14
NET RENTAL INCOME		17,014	9,361
(+)	Recovery of property charges	0	0
(+)	Recovery income of charges and taxes normally payable by tenants on	903	1,451
	let properties
(-)	Charges and taxes normally payable by tenants on let properties	-903	-1,451
PROPERTY RESULT		17,014	9,361
(-)	Technical costs	-618	-548
(-)	Commercial costs	-226	-92
(-)	Charges and taxes on unlet properties	-453	-347
(-)	Property management costs	-1,166	-578
(-)	Other property charges	-188	-132
PROPERTY CHARGES		-2,651	-1,697
PROPERTY OPERATING RESULT		14,363	7,665
(-)	General corporate costs	-538	-450
(-)	Other operating charges and income	1,088
OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO		14,913	7,215
(+/-)	Changes in fair value of investment properties	9,091	3,180
OPERATING RESULT		24,004	10,395
(+)	Financial income	1,314	515
(-)	Interest charges	-5,308	-1,625
(-)	Other financial charges	-506	-257
FINANCIAL RESULT		-4,500	-1,368
PRE-TAX RESULT		19,504	9,027
(+/-)	Corporate taxes	-1,020	-227
(+/-)	Exit tax	0	0
TAXES		-1,020	-227
NET RESULT		18,484	8,800
	Attributable to:
	Minority interests	525	181
	Group shares	17,959	8,619

 

The rental income amounted to 17 million EUR on 31/12/06, or an increase of 81.48% compared to 31/12/05 (9.38 million EUR), resulting from the important growth of the real estate portfolio realized during the second half of the previous financial year 2005/2006, namely the acquisition of Leasinvest Immo Lux (ex-Dexia Immo Lux) and of a part of the real estate portfolio of Extensa Group.

Excluding these acquisitions the rental income amounted to 9.92 million EUR, or an increase of 5.77% compared to 31/12/05. The occupancy rate under a constant perimeter has risen from 92.97% to 96.42%.

 

The property charges amount to 2.65 million EUR on 31/12/06 and have increased by 0.95 million EUR compared to the previous year and take into account the management fee of Leasinvest Real Estate Management SA, the statutory manager of the real estate fund, calculated on the entire real estate portfolio[1] and the higher rental commissions paid to the real estate agents.

The other operating income of 1.1 million EUR consists mainly of badwill[2] realized for an amount of 0.99 million EUR mainly resulting from the acquisition of the remaining shares of its subsidiary Square de Meeûs SA (0.7 million EUR).

 

The "operating result before result on the portfolio" has risen by 106.69% from 7.2 million EUR to 14.91 million EUR. Under a constant perimeter 31/12/05 versus 31/12/06, in other words, making abstraction of the acquisitions, the operating result before result on the portfolio amounts to 8.34 million EUR, or + 15.63% compared to 7.2 million EUR on 31/12/05.

 

The changes in the fair value of investment properties were 5.91 million EUR higher on 31/12/06 than the half-year ending on 31/12/05 and amounted to 9.09 million EUR (31/12/05: 3.18 million EUR). 

 

The financial result has increased from -1,37 million EUR to - 4.5 million EUR due to the important acquisitions mentioned above, which were mainly financed by bank debts.

 

The corporate taxes were higher than during the first half of the previous financial year and amounted to 1 million EUR, on the one hand, caused by the provision for exit tax resulting from the merger of Square de Meeûs SA with the real estate fund and, on the other hand, the foreseen corporate taxes to be paid within the acquired real estate companies of Extensa Group.

 

The net current result, share of the group, ended at 9.04 million EUR compared to 5.43 million EUR for the half-year 31/12/05, a rise of 66.57 %. Per share this results in a net current result, share of the group, of 2.25 EUR on 31/12/06 and 1.67 EUR[3] on 31/12/05.

 

The net result, share of the group, has more than doubled and amounts to 17.96 million EUR (31/12/05: 8.62 million EUR).  In terms of net result per share this gives 4.48 EUR for 31/12/06 compared to 2.65 EUR a year before, or an increase of 69.06%.

 

 

 

in 1,000 EUR			31/12/06	30/06/06
ASSETS
NON-CURRENT ASSETS			451,247	469,946
Investment properties			448,605	467,182
Development projects			106	101
Other non-current assets			35	54
Non-current financial assets			2,501	2,609
CURRENT ASSETS			39,897	13,713
Assets available for sale			27,697
Current financial assets			2,635	2,615
Trade receivables			3,000	4,697
Tax receivables and other current assets			830	357
Cash and cash equivalents			4,705	5,518
Deferred charges and accrued income			1,030	526
TOTAL ASSETS			491,144	483,659
LIABILITIES
TOTAL SHAREHOLDER'S EQUITY			254,556	262,555
Shareholder's equity attributable to the shareholders of the mother company			243,386	237,849
Capital			44,128	44,126
	Issued capital		44,128	44,126
Share premium account			70,622	70,611
Reserves			99,051	99,050
Result			36,112	30,597
Impact on fair value of estimated transaction costs resulting from			-7,126	-6,910
hypothetical disposal of investment properties
Change in fair value of financial assets and liabilities			599	375
- On hedging instruments			599	375
MINORITY INTERESTS			11,170	24,706
LIABILITIES			236,588	221,104
NON-CURRENT LIABILITIES			112,584	95,581
	Provisions		26	27
	Non-current financial debts		111,800	94,800
	a	Credit institutions	111,800	94,800
	Other non-current financial debts		81	82
	Other non-current liabilities		677	672
CURRENT LIABILITIES			124,004	125,523
	Provisions		0	0
	Current financial debts		109,227	108,524
	c	Other	109,227	108,524
	Trade debts and other current debts		5,903	8,529
		Exit tax	2,251	2,450
		Other	3,652	6,079
	Other current liabilities		1,302	1,004
	Accrued charges and deferred income		7,572	7,466
TOTAL SHAREHOLDER'S EQUITY, MINORITY INTERESTS AND LIABILITIES			491,144	483,659

 

On 29 December 2006 Square de Meeûs SA was incorporated by Leasinvest Real Estate through a merger by absorption resulting in 204[4] new issued shares, bringing the total number of shares to 4,012,832.

 

The real estate portfolio on 31/12/06 in fair value amounted to 476.30 million EUR[5] compared to 467.18 million EUR on 30/06/06. The fair value is recorded in the consolidated balance sheet in application of the IAS 40 norm (investment properties). The transaction costs of 7.13 million EUR have been deducted of the investment value.

 

The investment value of the portfolio is the value as defined by independent real estate experts, before deduction of the transaction costs. In terms of investment value the real estate amounted to 488.51 million EUR4 compared to 479.17 million EUR on 30/06/06.

 

On 31/12/06 the net asset value per share, share of the group, reached 60.65 EUR (59.28 EUR on 30/06/06) based on a valuation of the portfolio at the fair value, which results in an increase of 2.31%. Based on the investment value, the revaluated net asset value amounts to 63.69 EUR per share (62.10 EUR on 30/06/06), or an increase of 2.56%.

 

The shareholder's equity, share of the group, has risen to 243.4 million EUR (fair value) compared to 237.8 million EUR on 30/06/06. This increase is a consequence of the acquisition of the remaining shares in Square de Meeûs SA during the first quarter of the financial year and of the further increase of our participation in Leasinvest Immo Lux SA (ex-Dexia Immo Lux).

 

The debt ratio, calculated according to the RD of 21/06/06, increased from 44.15 % (30/06/06) to 46.61% on 31/12/06. Leasinvest Real Estate still has an investment capacity of 258 million EUR based on a maximum allowed debt ratio of 65%.

 

 

 

Leasinvest Real Estate has reached an in principle agreement to divest 2 office buildings which are part of "Extensa Square" in Brussels  and 1 building situated in Wommelgem, and this during the second half-year of 2006/2007.

The transaction regarding Extensa Square has been concluded subject to a number of  conditions precedent, among other things, the obtaining of a fiscal ruling by the buyer.

 

Leasinvest Real Estate has also reached an agreement regarding the acquisition, during the third quarter, of a castle-farm called "Torenhof ", mainly used as an office building with restaurant, and this, for an amount of 1.5 million EUR. This building with character will be an added-value to the facility services for our neighboring phase I of the Axxes Business Park in Merelbeke (Ghent).

 

 

 

Except unforeseen circumstances a good net result, before portfolio result is expected for the financial year 2006/2007, and this, without taking into account extraordinary transactions (e.g. badwill).

 

 

Trading update 3rd quarter (31/03/07)                   18/05/07

Announcement of year results (30/06/07)             24/08/07

General meeting of shareholders                         15/10/07

Press and analyst's meeting year results             15/10/07

Dividend payment                                               22/10/07

 

Trading update 1st quarter (30/09/07)                    23/11/07           

Announcement of half-year results (31/12/07)        22/02/08

 

 

 

We have compared the accounting data presented in the semi-annual communiqué of Leasinvest Real Estate SCA with the interim condensed consolidated financial statements as at 31 December 2006,  which show a balance sheet total of 491,143,902.86 EUR and net income (group share) for the period of 17,958,688.41 EUR. We confirm that these accounting data do not show any significant discrepancies with the interim condensed consolidated financial statements.

 

We have issued a review report on these interim condensed consolidated financial statements, in which we declare that, based on our review, nothing has come to our attention that causes us to believe that these interim condensed consolidated financial statements are not prepared, in all material aspects, in accordance with IAS 34 Interim Financial Reporting, as adopted for use in the European Union.

 

Brussels, 22 February 2007

 

Ernst & Young Reviseurs d'Entreprises SCC

Statutory Auditor

represented by

 

Christel Weymeersch

Partner

 

 

 

Real estate fund Leasinvest Real Estate SCA mainly invests in high-quality and well-situated office, logistics and retail buildings in Belgium and in the Grand Duchy of Luxembourg.

The real estate fund is listed on Euronext Brussels in the NextPrime segment. Leasinvest Real Estate has a market capitalisation of 303 million EUR (value on 21 February 2007).

 

 

For more information, contact:

 

Leasinvest Real Estate

Investor Relations

T: +32 3 238 98 77

E: jeanlouis.appelmans@leasinvest.be