Trading update first 9 months of the financial year 2005-2006 (01/07/2005-31/03/2006) (*)

- Regulated press release

Fair value of real estate portfolio rises by 54.3% compared to 31/12/2005 from
272.2 million EUR to 420.3 million EUR due to the acquisition of a controlling interest in the Luxembourg sicav Dexia Immo Lux[1]
Increase of occupancy rate to 94.7% (compared to 93% on 31/12/2005)
1. Dexia Immo Lux
Acquisition of controlling interest
On 22 March 2006 Leasinvest Real Estate (LRE) acquired the joint controlling interest of Dexia Bank Belgium and Ethias group of in total 51.13% in the listed sicav Dexia Immo Lux (DIL) and their share of 100% in Dexia Immo Lux Conseil SA (DIL Conseil). This acquisition for an amount of approximately 111 million EUR has been entirely paid in cash. The capitalisation and distribution shares of DIL are listed on the Luxembourg stock market and on Euronext Brussels. The global transaction price is based on a price, for 100% of the DIL and DIL Conseil shares, of 177.3 million EUR.
Public takeover bid
Since 15 May a voluntary public takeover bid has started, at the same conditions, in Belgium and in the Grand Duchy of Luxembourg, on all remaining capitalisation and distribution shares of DIL for respectively EUR 3,150.20 and EUR 1,467.57 (coupon number 15, equal to a gross dividend of EUR 70, detached)[2].
The offer is subject to the suspensive condition that Leasinvest Real Estate acquires, after the end of the takeover bid, directly or indirectly, at least 67% of the shares issued by DIL and more than 50% of the distribution shares of DIL. In case of acquisition of 100% of the remaining shares of DIL, the total investment, within the framework of the abovementioned public takeover bid, amounts to 66.3 million EUR.
Dexia Immo Lux
Dexia Immo Lux (DIL) is a real estate investment fund with variable capital (sicav) established in the Grand Duchy of Luxembourg. DIL owns 13 buildings, exclusively situated in the Grand Duchy of Luxembourg. Most of the buildings are multi-tenant and they consist of offices (78%), 1 semi-industrial building (14%) and two supermarkets (8%). Geographically the buildings are well spread across the City of Luxemburg (78%) and the periphery (22%). The occupancy rate is 94.39% and the total surface amounts to 48,651 sqm. The actual rental yield compared to the fair value is 7.04% and compared to the investment value is 6.87%; the weighed average duration of the leases is 2.66 years.
2. Acquisition Leasinvest-Extensa group portfolio

Direct acquisition by LRE of a semi-industrial building located in Forest
On 29 March Leasinvest Real Estate acquired, directly from Leasinvest SA, at a price of 2.7 million EUR in cash, a semi-industrial building composed of offices and storage and situated at the Lusambostreet in Forest (Brussels) and also the long lease on the ground. The fair value amounts to 2.65 million EUR; the estimated investment value of the building is 2.72 million EUR. The occupancy rate is 100% and the remaining duration of the lease is 7.6 years.
Foreseen contribution in kind by AXA Belgium SA
Also on 29 March 2006 AXA Belgium SA acquired 100% of the shares of the 3 subsidiaries of Leasinvest SA (Leasinvest-Extensa group), the promoter of Leasinvest Real Estate SCA (LRE), which will be contributed in kind[3] into LRE against newly created LRE shares, of the same type as the existing shares[4]. This capital increase will be submitted for approval to the general meeting of shareholders of LRE foreseen on 29 May.
This contribution in kind fits within the framework agreement signed in July 2004 by AXA Belgium SA, Leasinvest Real Estate Management SA, LRE and Leasinvest SA, in which has been agreed that AXA Belgium SA would subscribe to 1,154,047 new LRE shares by the contribution in kind of real estate or real estate companies. It is expected that with this contribution in kind AXA Belgium SA will entirely of for the major part fulfill its foreseen commitment in the aforementioned investment agreement.
Ackermans & van Haaren group and AXA Belgium SA will both own an equally important participation in LRE of approximately 29% each.
The total Shareholder's Equity of LRE will increase by 47.7 million EUR through this transaction.
The foreseen contribution in kind represents a real estate portfolio with a fair value of 46.4 million EUR. As a consequence, the fair value of the consolidated real estate portfolio of Leasinvest Real Estate will further increase to 466.8 million EUR.
Composition of the portfolio for acquisition
The portfolio consists of an office building and a logistics centre in Malines of 14,000 sqm and 6,000 sqm respectively. The office building is leased and the logistics centre is rented, both to Wolters Kluwer België SA. Further, the portfolio consists of a distribution centre with storage halls and offices, situated in Tongres, Heesterveldweg, with a total surface of approximately 26,000 sqm. For this building a sale & rent back transaction has been concluded with SKF SA. All buildings are occupied for 100% and the duration of the portfolio is 9 years[5].
3. Key figures
At the end of the third Quarter of the financial year 2005-2006 the capital and reserves, part of the group, amount to 185.4 million EUR, which corresponds to an intrinsic value per share (dividend included) of 57.07[6] EUR. The intrinsic value per share on 31/03/2005 amounted to 53.94[7] EUR.
The debt ratio of Leasinvest Real Estate has risen compared to 31/12/2005 (31.43%) and amounts to 42.97%[8], mainly due to the acquisition of 51.13% of DIL through debts[9].  The debt ratio in accordance with article 52 of the RD of 10/04/1995 amounts to 42.05%[10].
The rental income for the past 9 months amounts to 13.9 million EUR compared to 14.9 million EUR on 31/03/2005.
The fair value[11] of the real estate portfolio amounts to 420.3 million EUR and represents an increase of 148.10 million EUR compared to 31/12/2005.  The investment value[12] of the real estate portfolio, as estimated by the real estate experts Cushman & Wakefield, has increased by 151.8 million EUR compared to the investment value on 31/12/2005 of 279.2 million EUR.  The increase is mainly due to the acquisition (and integral consolidation) of the Dexia Immo Lux portfolio and of the building in Forest (Alcan).

The occupancy rate[13] amounted to 94.66% and has increased compared to 31/12/2005, or 92,97%. The rental yield in fair value amounted to 7.29% (equal on 31/12/2005) and 7.11% based on the investment value (7.10% on 31/12/05).
Leasinvest Real Estate SCA
 Real estate fund Leasinvest Real Estate SCA invests in high-quality and well situated office, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg. The sicafi is listed on Euronext Brussels in the NextPrime segment. Leasinvest Real Estate SCA has a market capitalisation of 216.9 million EUR (on 16 May 2006).

(*) The financial year runs from 1 July till 30 June; the figures mentioned in this press release are unaudited and under IFRS.
[1] Including the acquisition of a semi-industrial building in Forest on 29/03/2006 (see point 2.) with a fair value of 2.65 million EUR and taking into account an integral consolidation of the 51.13% participation in DIL.
[2] The announcement required by article 21 of the RD of 08/11/1989 and of article 13 of the Law of 22 April 2003 concerning public takeover bids has been published in the Belgian financial press on 13/05/2006.
The public can obtain the prospectus at Dexia Banque Internationale à Luxembourg SA (tel : + 352 45 901) in the Grand Duchy of Luxembourg and at Dexia (tel : +32 800 97 269) in Belgium, and at their respective branches. The text of the prospectus will also, only by means of information, be available via internet at the following addresses and, under "Investors information".
[3] 100% minus 1 share. AXA will sell 1 share to an LRE subsidiary; subsequently LRE will own 100% directly and indirectly.
[4] The current participation of AXA in LRE amounts to 12.31%.
[5] Duration, calculated as of today, on the publication date of the trading update.
[6] The number of shares on 31/03/2006 amounts to 3,249,221.
[7] The number of shares on 31/03/2005 amounted to 3,249,221.
[8] Calculated under IFRS.
[9] The participation in DIL of 51.13% is consolidated through the integral consolidation method.
[10] The calculation in accordance with article 52 of the RD of 10/04/1995 corresponds to the calculation used until now.
[11] The fair value: the investment value as defined by an independent real estate expert and of which the transaction costs have been deducted; the fair value is the accounting value under IFRS.
[12] 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 have not yet been deducted.
[13] The occupancy rate has been calculated based on the estimated rental value (all buildings of the Leasinvest Real Estate portfolio have been taken into account).  The DIL buildings are taken into account for 100% for the calculation of the occupancy rate, despite the fact that the participation of LRE in DIL amounts to 51.13%.