Leasinvest Real Estate - half-year results financial year 2003/2004 (period from 1 July to 31 December 2003)

Antwerpen, BELGIUM


Brussels, 20 February 2004
 
Executive summary
The half-year profits on 31/12/2003 amounted to 6.73 million EUR, which represents a rise of 49% compared with the half-year results for the previous financial year, due to the improved portfolio result. The net current result was in line with the budget forecast for the 2003-2004 financial year and amounted to 6.54 million EUR, nearly equal to the net current result on 31/12/2002. The value of the portfolio, taking account of the sale of the building at Kontichsesteenweg 17, Aartselaar in December 2003, rose by 0.83% compared with the previous quarter (30/09/2003), and amounted to 265,770,000 EUR.  Occupancy rate fell to 95.45% and the rental yield was 7.74% (incl. rental guarantees). The debt level fell to 38.90%, leaving an investment capacity of almost 50 million EUR.
 
Key results[1]
First semester
First semester
Financial year 02-03
 
fy. 2003-2004
fy. 2002-2003
 
 
1/7/2003-31/12/2003
1/7/2002-31/12/2002
1/7/2002-30/6/2003
 
 
 
Statutory
Consolidated
Consolidated
Portfolio (x 1,000 EUR)
 
 
 
 
Investment value
265,770
267,648
266,079
 
Liquidation value (1)
235,194
236,857
235,468
Rental income (x 1,000 EUR)
10,406
10,458
20,872
Debt ratio (%) (2)
38.90
40.01
42.33
Net asset value per share (EUR) (3)
55.78
55.59
53.45
Net current result per share (EUR)
2.31
2.31
4.50
Net result per share (EUR)
2.38
1.59
3.56
Occupancy rate (%)
 
 
 
 
including rental guarantees
95.45
98.07
97.77
 
excluding rental guarantees
95.21
96.66
96.24
Rental yield (%)
 
 
 
 
including rental guarantees
7.74
7.94
7.97
 
excluding rental guarantees
7.73
7.85
7.85
Number of shares
2,830,371
2,830,366
2,830,366
 
(1) Investment value minus theoretical discount of 13%
(2) Including provision exit tax
(3) Including dividend on 31/12/03 and on 31/12/02; excluding dividend on 30/06/2003
 
 
Balance sheet (x 1,000 EUR)1
2003-2004
2002-2003
Financial year 02-03
 
1/7/2003-31/12/2003
1/7/2002-31/12/2002
1/7/2002-30/6/2003
 
Statutory
Consolidated
Consolidated
ASSETS
 
 
 
FIXED ASSETS
265,770
267,648
266,079
Tangible assets
265,770
267,648
266,079
CURRENT ASSETS
4,244
4,378
8,972
Amounts receivable after more than 1 year
23
169
131
Amounts receivable within 1 year
2,226
3,373
3,501
Investments, cash in hand and at bank
1,749
575
5,200
Deferred charges and accrued income
246
261
140
TOTAL ASSETS
270,014
272,026
275,051
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
CAPITAL AND RESERVES
157,891
157,333
151,287
PROVISIONS
1,867
2,707
4,173
DEBTS
 
110,256
111,986
119,591
Financial debts after more than 1 year
45,000
 
 
Financial debts within 1 year
52,497
102,649
98,180
Trade debts and taxes
6,482
2,915
3,422
Other debts
1,045
986
12,476
Accrued charges and deferred income
5,232
5,436
5,513
TOTAL LIABILITIES
270,014
272,026
275,051
 
 
 
 
 
 
Debt ratio (%)
38.90
40.01
42.33
 
 
Results (x 1,000 EUR)1
2003-2004
2002-2003
Financial year 02-03
 
1/7/2003-31/12/2003
1/7/2002-31/12/2002
1/7/2002-30/6/2003
 
Statutory
Consolidated
Consolidated
NET CURRENT RESULT
 
 
 
Operating income
11,596
12,271
23,954
Rental income
10,406
10,458
20,872
Operating charges
-3,246
-3,404
-7,007
Operating result
8,350
8,867
16,947
Financial income (1)
52
77
101
Financial charges (1)
-1,765
-2,287
-4,164
Taxation
 
-95
-108
-142
Net current result
6,543
6,549
12,742
PORTFOLIO RESULT
 
 
 
Change in market value of elements of the
136
-2,043
-2,702
 
portfolio
 
 
 
Gain or loss on disposal of elements of the
56
 
25
 
portfolio
 
 
 
Portfolio result
192
-2,043
-2,677
EXTRAORDINARY RESULT
 
 
 
Extraordinary income
 
7
7
RESULT FOR APPROPRIATION
 
 
 
Profit of the financial year
6,735
4,513
10,072
Appropriation of the change in market value of the
 
 
 
 
portfolio
 
 
 
 
 
Transfer to the non-distributable reserves (-)
-136
 
 
 
 
Withdrawal from the non-distributable reserves (+)
 
2,043
2,702
Profit of the financial year for appropriation
6,599
6,556
12,774
 
(1) net hedging result
 
Notes on the results and the balance sheet for the first semester of financial year 2003/2004
 
The rental income after 6 months remained at the same level as for the first semester of the previous financial year, i.e. 10.4 million EUR. This is the net result, on the one hand, of the slightly lower occupancy rate and the loss of rental income due to the sale of the buildings at Britse Lei 15 and 3-5-7 in Antwerp during the past year, and on the other hand the indexation of the rental income.
 
The operating result on 31/12/2003 was 8.35 million EUR or 5.8% lower than the operating result on 31/12/2002, which was 8.87 million EUR. In view of the stable cost structure (excl. re-invoicing), the decrease results mainly from the expiry of the rental guarantees (other operating income).
 
The financial result developed favourably from - 2.21 million EUR on 31/12/2002 to
- 1.71 million EUR on 31/12/2003 thanks to lower interest rates and appropriate hedging.
 
The net current result was 6.54 million EUR, nearly like the semester ending on 31/12/2002.
 
The result on the portfolio after 6 months was + 0.19 million EUR compared with - 2.04 million EUR on 31/12/2002 and consists, on the one hand, of the capital gain of 56,000 EUR on the disposal of the building at Britse Lei 3-5-7 and on the other hand of 136,000 EUR of positive appreciation in the market value of the portfolio. 
The relatively low increase in value since the beginning of the financial year (01/07/2003) is a very good performance in the real estate sector, given the difficult market conditions.
The business parks declined in value in accordance with the overall downward trend in the real estate market. This was also compensated by positive fluctuations in the value of office buildings in the Brussels Leopold district and buildings with long-term lease contracts.
 
The positive portfolio result on 31/12/2003 brings the profit for the semester to 6.73 million EUR, in comparison with 4.51 million EUR on 31/12/2002, or an increase of 49%.
 
On 31/12/2003, the portfolio represented an estimated investment value of 265.8 million EUR, an increase of 2.2 million EUR or 0.83% compared with a quarter earlier (30/09/2003), taking account of the sale of the building at Kontichsesteenweg 17 in Aartselaar on 30 December 2003 (1.01 million EUR).
The net asset value ended at 157.9 million EUR, or 55.78 EUR per share (including half-yearly result) compared with 55.59 EUR on 31/12/2002.
 
The debt level was 38.90%, leaving an investment capacity of nearly 50 million EUR.  The occupancy rate of the portfolio was 95.45% and the rental yield 7.74% (both including rental guarantee, which was actually marginal (8,300 EUR)).
 
Important events in the first semester of 2003-2004
The building at Kontichsesteenweg 17 in Aartselaar was sold.
For the building in rue de Trèves in Brussels, currently let to EFTA (European Free Trade Organisation), an agreement was entered into with a view to sign a long term lease with the "Committee of the Regions", a European institution, which will start ultimately by 1 February 2005.
 
Outlook
The figures for the past semester are in line with the budget, and provided that the occupancy rate is maintained, and maintenance costs are kept under control, the forecast results for the 2003-2004 financial year are achievable.
 
About Leasinvest Real Estate
 
Real estate fund Leasinvest Real Estate SCA invests in high-quality offices and semi-industrial buildings located in the Brussels/Ghent/Antwerp triangle.
The current investment value on 31 December 2003 was 265.8 million EUR. The portfolio represents an area of more than 190,000 m2, at 14 different locations and spread across 38 buildings. 
The real estate fund is listed on the Euronext and was included in January 2002 in the Next Prime segment. Leasinvest Real Estate SCA has a market capitalisation of 152.7 million EUR (value 31 December 2003).
 
Financial calendar
Announcement of 3rd quarter results (31/03/2004): week 21 2004
Announcement of annual results (30/06/2004): week 35 2004
General meeting of shareholders: 18 October 2004
Dividend pay-out (coupon no. 5): 25 October 2004
 
Shareholder structure
On 14/12/2003, the lockup agreement on Apollo Development SA concerning 104,742 shares expired.  This brought the shareholder structure as of 31/12/2003 to:
 
Number of shares %
Leasinvest Group 1,154,047 40.77
Free float
1,676,324 59.23
Total
2,830,371 100.00
 
 
Statutory auditor's report for the limited review of the company Leasinvest Real Estate SCA over the period july 1, 2003 - december 31, 2003
 
We have performed a limited review of the interim figures of Leasinvest Real Estate SCA as at December 31, 2003, and for the six-month period then ended. These interim figures are the responsibility of the company's management and show a balance sheet total of 270.01 million EUR and a profit for the period of 6.73 million EUR.
 
Our review consisted principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. We conducted our review in accordance with standards established by the Institut des Reviseurs d'Entreprises / Instituut der Bedrijfsrevisoren. It is substantially less in scope than a full scope audit of the annual accounts. Based on our review, we are not aware of any material modifications that should be made to the interim figures.
 
Brussels, February 18, 2004
 
Ernst & Young Bedrijfsrevisoren BCV (B 160)
Statutory auditor
represented by
Pierre Anciaux
Partner
 
 
[1] The figures on 31/12/2003 (statutory) are entirely comparable with the figures on 31/12/2002 (consolidated), since the merger following the take-over by Leasinvest Real Estate SCA of its subsidiaries Brussimmo SA and Ekiport SA, approved by the extraordinary general meeting of shareholders of 28/11/2003, having retroactive effect on the accounts as from 1 July 2003. Leasinvest Real Estate owned almost 100% of the shares of Brussimmo SA and Ekiport SA.
 
 
The full report including tables can be downloaded from the following link:

Attachments

half-year results 2003/2004