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Leasinvest Real Estate Comm. VA (EBR:LEAS) As Leasinvest Real Estate makes the transfer towards a financial year running from 1 January until 31 December, the current financial year has been extended to 31/12/08. Consequently, the figures in this press release refer to the period 01/07/07 - 30/06/08 (12 months).
Increase of the net result, share of the group, by 5% to 9.20 euros per share[1] and growth of the fair value of the real estate portfolio up to 486.8 million euros (+9%) compared to 30 June 2007
- increase, compared to 30 June 2007, of the real estate portfolio in operation (fair value) by 41 million euros till 486.8 million euros, also thanks to 3 acquisitions (23.7 million euros) and the completion of the successful redevelopment of the CFM site in Luxembourg (change in fair value of 14.4 million euros); - increase of the net current result, share of the group, of 4.26 euros per share on 30/06/07 to 4.60 euros per share on 30/06/08 (+8%); - distribution of gross interim dividend of 3.85 euros per share following the extension of the financial year.
Activity report for the period 01/07/07-30/06/08
Sale of the building Aubépines in Luxembourg
On 04/07/07 Leasinvest Immo Lux has sold the building Aubépines realizing a gain of 3.6 million euros.
Further acquisitions in logistics and storage[2]
On 29/02/08 Leasinvest Real Estate acquired, directly and indirectly, 100% of two companies, owning the following buildings: a storage and distribution site in Wommelgem of nearly 28,000 m² (including 4,200 m² offices), two warehouses of a total of 13,000 m² located in the transport zone Meer and a retail building of 4,800 m² in Merksem. Meanwhile the latter retail building has been contributed in kind into real estate investment trust Retail Estates through a partial split-up against a contribution value of 3.5 million euros in exchange for 83,632 new shares, which represents a participation of 2.2% in Retail Estates.
Leasinvest Real Estate has furthermore concluded an agreement for the acquisition of, if a number of suspensive conditions are realized, 100% of the company Canal Logistics Brussels in the second half of 2009. With this acquisition Leasinvest Real Estate will acquire an important future warehouse and distribution site in Neder-over-Heembeek near Brussels, of over 50,000 m2 of storage and 2,500 m2 of offices, of which the completion is foreseen by mid-2009.
Tailor-made development projects
In the Grand Duchy of Luxembourg, the current CFM site has been renovated and extended by 4,000 m2 of storage space and 1,200 m2 of offices, at the demand of the current tenant CFM (subsidiary of Wolseley Plc.). Both extensions are let for a fixed period of 10 years, with a gross initial yield (before increase of the fair value) of 8.9%. Thanks to its knowledge of the Luxembourg market and its in-house building expertise, Leasinvest Real Estate has succeeded in realizing, on this redevelopment project, a substantial increase of the fair value of 14.4 million euros, or 3.6 euros per share.
Furthermore, the Bian site is entirely renovated and extended to 5.500 m2 in the Grand Duchy of Luxembourg. The provisional completion is expected by the end of March 2009.
In Belgium Leasinvest Real Estate has concluded a real estate leasing agreement for a fixed period of 15 years, with its former tenant Cegelec NV, for the construction and the financing of its new regional branch of 3,500 m2 offices with 1,000 m2 workplace and warehouses, located at the business park 'Alpha Campus' (12 ha business park alongside the E17 Antwerp-Ghent) in Zwijndrecht-Antwerp. The completion of the building is foreseen by 31/12/09. An initial yield of 7.5% will be realized on the entire project of a value of approximately 6.2 million euros.
Finally the new parking of the Axxes Business Park in Ghent, consisting of 193 additional parking spaces, has been opened in Januari 2008 and is highly appreciated by the tenants.
Important events after 30/06/08
Montimmo S.A.
Leasinvest Immo Lux, a 96.5% subsidiary of Leasinvest Real Estate, has acquired an office project at the Avenue Monterey 35 in the City of Luxembourg, through the take over of 100% of the Luxembourg company Montimmo SA for an amount of 3.1 million euros. The constructed building comprises 1,585 m² office space and 15 underground parking spaces, and will be further completed by Leasinvest Immo Lux through Montimmo SA. The completion is expected by mid-2009. Given the strategic location, there is already a large interest from potential tenants. The Grand Duchy of Luxembourg is, after Belgium, the second home market for Leasinvest Real Estate and represents approximately 32% of its consolidated real estate portfolio.
Key figures on 30/06/08[3]
The fair value of the real estate portfolio in operation amounts to 486.8 million euros on 30/06/08 compared to 445.9 million euros on 30/06/07 (468.9 million euro on 31/03/08). The acquisitions in the Antwerp region and the completion of the CFM project, mentioned above, explain, to a large extent, the increase by 9%. The real estate portfolio in operation consists of 52 buildings, of which 41 buildings in Belgium and 11 in the Grand Duchy of Luxembourg.
The shareholders' equity, share of the group (based on the fair value of the real estate portfolio), amounts to 281.2 million euros on 30/06/08 (30/06/07: 262.1 million euros), which corresponds to an increased net asset value per share of 70.37 euros (30/06/07: 65.31 euros), or an increase of 7.8%.
The debt ratio, calculated according to the RD of 21/06/06, amounts to 41.97% compared to 40.93% on 30/06/07.
The occupancy rate[4] amounts to 97.06% on 30/06/08 (30/06/07: 97.01%).
The rental yield based on the fair value on 30/06/08 is 7.15% (30/06/07: 7.22%); based on the investment value, it amounts to 6.97% (30/06/07: 7.04%).
ABBREVIATED CONSOLIDATED RESULTS (in 1,000 euros) 30/06/2008 30/06/2007 (12 months) (12 months) Net rental income 31,683 33,154 Property result 32,045 33,003 Property charges -5,020 -5,893 Property operating result 27,025 27,110 Operating result before result on the 24,670 25,583 portfolio Gains or losses on disposals of investment 3,600 1,486 properties Changes in fair value of investment 15,500 16,609 properties Operating result 43,770 43,678 Financial result -7,351 -8,233 Revaluation of (derivative) financial 1,643 959 instruments (IAS 39) Pre-tax result 38,062 36,404 Taxes -247 -884 Net result 37,815 35,520 Minority interests -1,034 -586 Net result (share of the group) 36,781 34,934
The net rental income (31.7 million euros) recorded a temporary decrease of 4% compared to 30/06/07 (33.2 million euros) due, on the one hand, to the sale of 3 buildings in the previous financial year and the sale of the 'Aubépines' building in Luxembourg at the beginning of this financial year and, on the other hand, the vacancy of the 'Bian' building in Luxembourg due to its complete renovation. The provisional completion of the 'Bian' building is foreseen at the end of March 2009.
The decrease of the property charges of 5.9 million euros on 30/06/07 to 5.0 million euros on 30/06/08 is mainly due to a decrease of the maintenance and renovation costs in combination with lower vacancy costs.
The gain on the disposal of investment properties consists of the realized gain on the sale of the 'Aubépines' building in Luxembourg at the beginning of July 2007.
The impact of the renovation and extension of the CFM site (14.4 million euros), in use since the beginning of June 2008, is recorded in the item changes in fair value of investment properties.
Despite the increased market interest rates, the financial result, excluding the impact of the revaluation of (derivative) financial instruments in application of IAS 39, has improved over 12 months, from -8.2 million euros on 30/06/07 to -7.4 million euros on 30/06/08.
Thanks to the evolutions mentioned above, the net result, share of the group, increased by 5% to 36.8 million euros (or 9.20 euros per share), compared to 34.9 million euros (or 8.71 euros per share) on 30/06/07.
The net current result[5], share of the group, closed at 18.4 million euros (or 4.60 euros per share[6]) compared to 17.1 million euros (or 4.26 euros per share) the previous year.
Outlook for the financial year (18 months)[7]
Thanks to the completion of the renovation and extension of the CFM site the property result for the last 6 months of the current (extended) financial year will again reach last year's level.
Interim dividend
The board of directors of the statutory manager has decided on 18 August to distribute, on the result of the previous 12 months (01/07/07-30/06/08) next 15 October, an interim dividend, and in May 2009 a (closing) dividend on the remaining 6 months of the extended financial year (01/07/07-31/12/08). Consequently, the gross interim dividend amounts to 3.85 euros compared to 3.80 euros for the dividend of the past financial year and net, free of withholding tax to 3.27 euros compared to 3.23 euros the previous financial year. The interim dividend will be paid out upon presentation of coupon nr 9 as from 15 October 2008 according to the formalities which will be published on the website (www.leasinvest.be).
Interim report according to IAS 34
The official Dutch version of the interim report for the period 01/07/07-30/06/08, which comprises, next to the abbreviated financial statements, all information according to IAS 34, the interim management report, a statement of the responsible persons and information on the audit, will be available on the website www.leasinvest.be as from 29/08/08 after closing of the stock market. Translations in English and French will be available, at latest, as from 15/09/08. Anyone can obtain a free copy upon request at the administrative office of the company: Leasinvest Real Estate SCA, Schermersstraat 42, 2000 Antwerp, T +32 3 238 98 77; E investor.relations@leasinvest.be.
Financial calendar
Following the extension of the financial year the financial calendar has been adapted as follows:
Leasinvest Real Estate Comm. VA Real estate investment trust Leasinvest Real Estate SCA invests in high-quality and well-located office, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg. Currently, the real estate portfolio comprises 52 buildings in operation, of which 41 in Belgium and 11 in the Grand Duchy of Luxembourg, covering a total surface of nearly 310,000 m². The real estate investment trust is listed on NYSE Eurosnext Brussels and has a market capitalization of approximately 280 million euros.
[1] The net result per share on 30/6/08, as any other result per share on 30/6/08, is calculated based on the number of the shares participating in the result of the period (3,996,294); this is the number of issued shares (4,012,832) minus the number of treasury shares. On 30/06/08 Leasinvest Real Estate had 16,538 treasury shares in portfolio (30/06/07: 204 treasury shares). [2] For more information on the transactions mentioned, as on the agreement with Cegelec NV and the acquisition of Montimmo SA, we refer to the related press releases, published on the Leasinvest Real Estate website. [3] The figures in this press release are submitted to a limited review by the auditor. [4] The occupancy rate has been calculated based on the estimated rental value of the investment properties in operation. [5] The net current result consists of the net result minus the portfolio result. [6] The net current result per share is calculated based on the number of shares participating in the result of the period. [7] At the extraordinary general meeting of shareholders of 27/06/08 the change of the financial year, in order to make it correspond to the civil year as from now on, has been approved, and consequently also the extension of the current financial year of Leasinvest Real Estate till 31/12/08.
