Home Invest Belgium : Annual Results 2019

Under embargo until 20/02/2020 5.40 PM

Regulated information

1	ANNUAL RESULTS 2019

• • Portfolio growth
• Increase in the fair value of the real estate portfolio to € 629.92 million.
• Delivery of The Crow-n building in Kraainem.
• Acquisition of 4 apart-hotels in Brussels.
• Acquisition of a first development project in Antwerp.
• • Portfolio rejuvenation
• More than 50% of the investment properties are younger than 10 years old.
• More than 75% of the investment properties are younger than 20 years old.
• • Increase in the EPRA earnings
• 20.2% increase in the EPRA earnings to € 12.67 million in 2019 (compared with € 10.54 million in 2018).
• 20.2% increase in the EPRA earnings per share to € 3.85 in 2019 (compared with € 3.21 in 2018).
• Net result of € 55.49 million in 2019.
• Net result per share of € 16.88 in 2019.
• • Increase in the distributable result
• Increase of the distributable result per share to € 5.19 in 2019 (compared with € 4.28 in 2018).
• • Increase in the Net Asset Value per share (NAV)
• 12.9% increase in the EPRA NAV per share to € 96.00 on December 31st 2019
  (compared with € 85.06 on December 31st 2018).
• 15.1% increase in the IFRS NAV per share to € 94.16 on December 31st 2019
  (compared with € 81.81 on December 31st 2018).
• • Stable debt ratio
• Stable debt ratio of 51.41% (RREC Royal Decree) and 50.11% (IFRS) on December 31st 2019.
• • Dividend increase
• Increase of the gross dividend to € 4.85 per share, an increase for the 20th consecutive year.

2	ANNUAL RESULTS 2019

1. Real Estate Portfolio…………………………………………………………………………………………..4
2. Consolidated income statement…………………………………………………………..……………...6
3. Notes to the consolidated income statement………………………………………………………….8
4. 1. Notes to the consolidated income statement…………………………………………………….8
   2. Notes to the consolidated balance sheet……………………………………………………..…10
   3. Funding structure……………………………………………………………………………………….10
5. Activity Report………………………………………………………………………………………………..13
6. 1. Acquisitions………………………………………………………………………………………………13
   2. Development projects………………………………………………………………………………...15
   3. Sales……………………………………………………………………………………………………….18
   4. Portfolio Management………………………………………………………………………………..18
   5. Corporate Governance………………………………………………………………………………18
7. Stock market activity………………………………………………………………………………………..20
8. Statutory Auditor's Report……………………………………………………………………………….…24
9. Outlook……………………………………………………………………………………………………..….24
10. Consolidated Income Statement for the Financial Year 2019……………………………………...25
11. APM - Alternative Performance Measures……………………………………………………………...27
12. Shareholder's calendar……………………………………………………………………………………31

3	ANNUAL RESULTS 2019

At December 31st 2019, Home Invest Belgium holds a real estate portfolio1 of € 629.92 million, compared to

• 543.51 million on December 31st 2018, or an increase of 15.9%.

REAL ESTATE PORTFOLIO	31/12/2019	31/12/2018
Fair value of the investment	€ 609.59 m	€ 524.51 m
properties
Investment properties available for	€ 573.38 m	€ 490.36 m
lease
Development projects	€ 36.22 m	€ 34.14 m
Investments in associates and joint	€ 20.33 m	€ 19.00 m
ventures equity method
TOTAL	€ 629.92 m	€ 543.51 m

The fair value of the investment properties available for rent amounts to € 573.88 million across 53 sites.

The total contractual annual rents and the estimated rental value of vacant space is € 29.19 million as at December 31st 2019.

The investment properties available for rent are valued by independent real estate experts at an average gross rental yield2 of 5.1%.

Evolution of the fair value of the reale estate portfolio

1. The real estate portfolio includes (i) investment properties and (ii) investments in associated companies and joint ventures equity method.
2. Gross rental yield = (contractual rents on a yearly basis + estimated value on vacant spaces / (fair value of the investment properties available for rent).

4	ANNUAL RESULTS 2019

On December 31st 2019, 65.3% of the investment properties available for rent are located in the Brussels Capital Region, 14.0% in the Walloon region, 11.4% in the Flemish Region and 9.4% in The Netherlands.

Residential properties accounted for 89.1% of the investment properties available for rent on December 31st 2019.

Investment properties available for rent by type of property

Investment properties available for rent by geographical distribution

Netherlands

10%

Flemish

Region

11%

Walloon
Region		Brussels Capital
14%
	Region
		65%

5	ANNUAL RESULTS 2019

CONSOLIDATED KEY FIGURES		(in k €)
INCOME STATEMENT	2019	2018
NET RENTAL INCOME	25 122	23 993
OPERATING RESULT BEFORE PORTFOLIO RESULT	15 997	15 456
XVI. Result sale investment properties	123	610
XVIII. Changes in fair value of investment properties	48 473	59 414
XIX. Other portfolio result	-537	-171
PORTFOLIO RESULT	48 059	59 853
OPERATING RESULT	64 056	75 309
XX. Financial Income	53	105
XXI. Net Interest Charges	-4 335	-4 672
XXII. Other financial charges	-113	-55
XXIII. Changes in fair value of financial assets and liabilities	-5 412	-1 614
FINANCIAL RESULT	-9 808	-6 236
XXIV. Share in the profit of associated companies and joint ventures	1 329	0
TAXES	-88	-295
NET RESULT	55 490	68 778
Exclusion of portfolio result	-48 059	-59 853
Exclusion of changes in fair value of financial assets and liabilities	+5 412	+1 614
Exclusion of non EPRA elements of the share in the result of associated	-175	0
companies and joint ventures
EPRA RESULT3	12 668	10 539
Average number of shares4	3 288 146	3 288 146
NET RESULT PER SHARE	16.88	20.92
EPRA EARNINGS PER SHARE	3.85	3.21
DISTRIBUTABLE RESULT PER SHARE5	5.19	4.28

1. The EPRA result is the net result excluding the (i) portfolio result (ii) the changes in the fair value of financial assets and liabilities and (iii) the non EPRA elements of the proportion in the results of associated companies and joint ventures. This term is used in accordance with the Best Practices Recommendations of EPRA.
2. The average number of shares is calculated excluding the 11,712 own shares held by the company.
3. The distributable result in the sense of article 13, §1, of the RREC Royal Decree.

6	ANNUAL RESULTS 2019

BALANCE	2019	2018
Investment properties	609 594	524 506
Participations in associated companies and joint ventures equity method	20 329	19 000
Other assets	9 246	7 600
Total assets	639 169	551 106
Shareholders' equity attributable to shareholders of parent company	309 618	269 003
Debt ratio (RREC Royal Decree)6	51.41%	50.16%
Debt ratio (IFRS)7	50.11%	48.90%
PER SHARE		2019		2018
Number of shares at end of period8	3 288 146		3 288 146
Stock price at closing date	114.00		91.40
IFRS NAV per share9	94.16		81.81
Premium compared to IFRS NAV (at closing date)	21.1%		11.7%
EPRA NAV per share10	96.00		85.06
Premium compared to EPRA NAV (at closing date)	18.7%		7.4%

1. The debt ratio (RREC Royal Decree) is the debt ratio calculated in accordance with RREC Royal Decree. This means that for the purpose of calculating the debt ratio, participations in associated companies and joint ventures are accounted for following the proportionate consolidation method.
2. The debt ratio (IFRS) is calculated in the same manner as the debt ratio (RREC Royal Decree) but based on and conciliating with a consolidated balance sheet in accordance with IFRS where participations in joint ventures and associated companies are accounted for following the equity method.
3. The average number of shares is calculated excluding the 11, 712 own shares held by the company.
4. IFRS NAV per share = Net Asset Value or Net Value per share according to IFRS.
5. EPRA NAV per share = Net Asset Value or Net Value per share following the Best Practices Recommendations of EPRA.

7	ANNUAL RESULTS 2019

3.1. NOTES TO THE CONSOLIDATED INCOME STATEMENT NET RENTAL RESULT

The net rental result rose from € 23.99 million during 2018, to € 25.12 million in 2019 (+ 4.7%). The increase is mainly the result of the rental of delivered internal development projects and of investments realized in the course of 2018 that contributed for an entire financial year in 2019.

OPERATING RESULT BEFORE THE PORTFOLIO RESULT

The operating result before the portfolio result increased from € 15.47 million in 2018 to € 16.00 million in 2019 (+3.5%).

The operational margin11 decreased in 2019 compared to 2018 due to an increase in operating expenses. These are non-recurring costs concerning IT processes and streamlining of the internal management platform.

PORTFOLIO RESULT

In the course of 2019, a positive portfolio result of € 48.06 million was recorded.

The result of the sale of investment properties amounted to € 0.12 million in 2019.

In addition, during 2019, Home Invest Belgium recorded a positive change in the fair value of its investment properties amounting to € 48.47 million. This change is mainly a consequence of the adjustment for the first quarter of 201912 of assumptions in the accounting of transaction costs, in order to determine the fair value of investment properties. These adjustments had a positive effect on the changes in the fair value of the investment properties of € 34.18 million. Without this effect, the changes in the fair value of the investment properties stand at € 14.29 million. For additional information on the adjustments in the accounting of transaction costs we kindly refer to Note 3 "Investment properties" from the consolidated income statement of the half year financial report.

The other portfolio result amounts to € -0.54 million. In this item, the changes in deferred taxes are recorded.

1. Operational margin = (operating result before result portfolio) / (property result).
2. See press release "Results Q1 2019" of May 7th 2019 and note 3 "Investment Properties" of the consolidated income statement in the half year financial

report 2019.
8	ANNUAL RESULTS 2019

FINANCIAL RESULT

The net interest charges have decreased from € 4.67 million in 2018 to € 4.34 million in 2019. This positive evolution is the result of a decrease of the average funding costs13 to 1.95% in 2019 (compared to 2.20% in 2018).

The changes in the fair value of the financial assets and liabilities amounted to € -5.41 million in 2019. These changes are the consequence of a change in the fair value of the interest rate swaps.

TAXES

Taxes amounted to € -0.09 million during 2019 (compared to -0.29 million during 2018). This positive evolution is due to a correction of corporate tax provisions which were too high for the financial years 2017 and 2018, mainly related to the company's activities in The Netherlands.

NET RESULT

The net result (group share) of Home Invest Belgium amounted to € 55.49 million in 2019, or € 16.88 per share.

EPRA EARNINGS

After adjustment of the net result before (i) the portfolio result, (ii) the changes in the fair value of the financial assets and liabilities and (iii) non EPRA elements of the proportion of the result of associated companies and joint ventures, the EPRA earnings amount to € 12.67 million during 2019, an increase of 20.2% compared to the € 10.54 million in 2018.

EPRA earnings per share increased by 20.2% from € 3.21 during 2018 to € 3.85 in 2019.

DISTRIBUTABLE RESULT

The sale of investment properties realized in 2019 resulted in a capital gain of € 5.77 million compared to their acquisition value (increased by the activated investments). These realized capital gains contribute to the statutory distributable result which is the basis for the dividend distribution.

During 2019, the statutory distributable result14 increased to € 17.05 million, compared to € 14.07 million a year ago. The distributable result per share rose from € 4.28 to € 5.19 over the same period.

1. The average funding cost is = the interest costs including the margin and the cost of hedge instruments and increased by capitalized interest costs divided by the weighted average financial debt over the period in question.
2. The statutory distributable amount in the meaning of article 13, §1 of the RREC Royal Decree.

9	ANNUAL RESULTS 2019

3.2. NOTES TO THE CONSOLIDATED BALANCE SHEET FAIR VALUE OF THE INVESTMENT PROPERTIES

During 2019, the fair value of the investment properties (including development projects) rose by

• 85.09 million from € 524.51 million on December 31st 2018 to € 609.59 million on December 31st 2019, or an increase of +16.2%.

INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES EQUITY METHOD

On December 17th 2018, Home Invest Belgium, via the company De Haan Vakantiehuizen NV, of which it holds 50% of shares, realized the acquisition of 51.43% of the shares of SA Sunparks De Haan. This participation is accounted for in the consolidation, in accordance with the equity method.

The book value of the participation of Home Invest Belgium in De Haan Vakantiehuizen NV was € 20.33 million on December 31st 2019 (compared to € 19.00 million on December 31st 2018).

SHAREHOLDER'S EQUITY

On December 31st 2019, the group's shareholder's equity stood at € 309.62 million, a rise of 15.1% compared to December 31st 2018.

The IFRS NAV per share has risen by 15.1% to stand at € 94.16 on June 30th 2019 (compared to € 81.81 on December 31st 2018).

The EPRA NAV per share has risen by 12.9% to stand at € 96.00 on June 30th 2019 (compared to € 85.06 on December 31st 2018).

3.3. FUNDING STRUCTURE DEBT RATIO

The debt ratio (RREC Royal Decree) amounts to 51.41% on December 31st 2019. The debt ratio (IFRS) amounts to 50.11%.

Considering Home Invest Belgium's strategy to keep the debt ratio in the medium and long term below 55%, Home Invest Belgium still has a debt capacity of € 52.33 million available to fund new investments.

Taking into account a maximum permitted debt ratio of 65%, Home Invest Belgium still has a debt capacity of € 254.62 million, as defined by the RREC Royal Decree available to fund new investments.

10	ANNUAL RESULTS 2019

COMPOSITION OF THE FINANCIAL DEBT

On December 31st 2019, Home Invest Belgium had € 313.00 million in financial debts, composed of:

• Bilateral credit lines drawn for an amount of € 253.00 million with 6 different financial institutions, maturity dates well spread between 2020 and 2027. A credit line for an amount of € 20.00 million is maturing in 2020.
  In 2019, Home Invest Belgium has entered into new long-term credit lines to refinance this short-term creditline;
• A bond for an amount of € 40.00 million, maturing in June 2024;
• Commercial paper for an amount of € 20.00 million. Notwithstanding the short-term nature of the outstanding commercial paper (with maturity date in 2020), the outstanding amount is fully covered by available long-term credit lines (back-uplines).

Maturity of debts (€ mio)

120

100

									7
80
							28
60									45
40
												15
	20						57				58
20											40
					35					28	15
20
											10
0
			0
2020	2021	2022	2023	2024	2025	2026	2027
							Maturity dates of bonds			Maturity dates of used credit lines
							Maturity dates of available credit lines		Maturity dates of commercial paper

11	ANNUAL RESULTS 2019

The weighted average duration of the financial debts amounts to 4.4 years.

On December 31st 2019, Home Invest Belgium disposed of € 65.00 million of undrawn available credit lines of which:

• € 20.00 million long-termback-up lines covering short-term outgoing commercial paper bills;
• € 45.00 million available credit lines.

HEDGES

On December 31st 2019, 77.6% of financial debts (243.00 € million) had a fixed interest rate, using Interest Rate Swaps as hedging instruments, among other things.

The fixed interest rates have a weighted average remaining duration of 5.6 years.

The total value of the hedges at closing date was negative for an amount of € 4.36 million due to a decrease in interest rates after conclusion of the hedges.

Through its hedging policy, the board of directors wishes to protect the company against potential increases in interest rate.

Type of debt

Fixed/floating interest rate

		Commercial paper
		6.4%		Floating
Bond loans
			interest rate
12.8%				22.4%

		Fixed interest
Bank loans
	rate
80.8%
	77.6%

12	ANNUAL RESULTS 2019

4.1. ACQUISITIONS

Samberstraat (Antwerp)

On November 26th 2019, Home Invest Belgium made its first steps into the Antwerp residential real estate market with the acquisition of a residential development project.

The project includes the construction of 37 apartments, 1 office space, 39 parking spots and 36 bike spaces. Meta Architecten created a contemporary and sustainable design which meets the latest requirements of the rental market. All apartments are gathered around an inner courtyard and have a private outdoor space.

The project is located in the Samberstraat, in the "Dam" district, which is located in the North of the city and which is surrounded by "het Eilandje", "Park Spoor Noord" and the Slaughterhouse site. This district, which used to be known for its slaughterhouses, is flourishing. Both the new park "Park Spoor Noord" and the extension of "het Eilandje" contribute to a revival of this part of the city.

The transaction was achieved through the acquisition of the company DG Development, owner of the buildings which will be demolished, and the final building permit. The seller is ISTATE, a developer located in Antwerp.

Home Invest Belgium plans to start the construction works at the beginning of 2022. The total investment (acquisition, studies and construction works) represents more or less € 8 million. The expected initial gross yield will reach around 5%, once the building will be fully operational. The acquisition has been financed with existing credit lines from the RREC.

13	ANNUAL RESULTS 2019

(www.b-aparthotels.com).

Be Real Estate (Brussels)

On November 4th 2019, Home Invest Belgium has completed the acquisition of the company BE REAL ESTATE, owner of four apart-hotel buildings in the center of Brussels.

The real estate portfolio of BE REAL ESTATE comprises 4 buildings of the apart-hotel type, with a total of 185 residential units. The acquisition price of the company has been determined based on the investment value of the property of € 36 million. Home Invest Belgium retains an amount of approximately € 6 million on the payment of the share price which will become payable over a period of 3 years, subject to the realization of certain conditions.

All buildings are located on strategic locations in Brussels. The first building is located at the heart of the European district, square Ambiorix n°28; the second is located in the vicinity of the Grand-Place, rue des Dominicains n°25. A third building is located avenue de Tervueren n°149 on the Montgomery roundabout. The last building is on boulevard du Régent, close to the Madou place and the Cirque Royal.

All four buildings will be operated by the company BEAPART trough a long lease agreement (erfpachtrecht) for a duration of 27 years under the brand name B-aparthotels

The annual rents amount to € 1.85 million and are triple net rents unaffected by the performances of the operations. The annual rents of BEAPART will represent 7% of the total contractual rents.

B-aparthotels Ambiorix

B-aparthotels Grand-
	B-aparthotels Regent
Place

B-aparthotels Montgomery

14	ANNUAL RESULTS 2019

4.2. DEVELOPMENT PROJECTS

Brunfaut (Molenbeek)

Works on the Brunfaut site (rue Brunfaut n°13-29 and rue Fin n°4-12 in 1080 Molenbeek-Saint-Jean) are progressing according to plan. The project is a residential complex of 93 apartments, 66 parking spots and 1,443 m² of office space. Techniques and inside finishings are ongoing. The project is expected to be delivered in the course of the second quarter of 2020. In addition, and in agreement with the municipality of Molenbeek, the adjacent square "Place d'Or" will also be totally refurbished.

Meyers-Hennau (Brussels)

The structural works of the project Meyers-Hennau(Meyers-Hennau5-17 in 1020 Brussels) are completed up to the ground floor. Completion of the project, comprising 37 apartments, 11 houses and 51 parking spots, is expected in the fourth quarter of 2020.

15	ANNUAL RESULTS 2019

Marcel Thiry C2 (Woluwe-Saint-Lambert)

The preparatory works for the Marcel Thiry C2 project (Marcel Thiry street n°204 in 1200 Woluwe-Saint- Lambert) have started at the end of 2019. Soil and land preparation works are starting in the course of the first quarter of 2020. The project comprises 42 apartments.

Jourdan 95 (Saint-Gilles)

The building permit for the development of a building located rue Jourdan (rue Jourdan 95 in 1060 Saint-Gilles) is ongoing. Works to remove asbestos have also started recently.

16	ANNUAL RESULTS 2019

REFURBISHMENTS AND REDEVELOPMENT PROJECTS WITHIN THE EXISTING PORTFOLIO

Galerie de l'Ange (Namur)

Home Invest Belgium has submitted an application for a permit for the total renovation of the residential part of Galerie de l'Ange in Namur (rue de la Monnaie 4-20 in 5000 Namur) (surface area 4,239 m²). The permit is expected to be delivered around the second quarter of 2020. Altogether, 57 units are to be refurbished.

Le Mosan (Liège)

Home Invest Belgium is currently renovating the Leopold building in Liège (rue Léopold 2-8 in 4000 Liège), in order to meet current residential market standards. The building comprises 29 apartments for a total surface area of 2,791 m² and the works will be finished in the beginning of 2020, except for the retail spaces.

Scheldevleugel (Oudenaarde)

The renovation of the Scheldevleugel building in Oudenaarde (Remparden 12 in 9700 Oudenaarde) continued. The third and final phase (refurbishment of common areas and studios) is finished. The building includes 95 units and 75 garage boxes for a total surface area of 6,000 m².

17	ANNUAL RESULTS 2019

4.3. SALES

In 2019, Home Invest Belgium has sold property for a total net amount of € 12.84 million (compared to

• 7.76 million in 2018).

A net capital gain of € 0.12 million was realised on these sales, compared to the latest fair value and a capital gain of € 5.77 million compared to the acquisition value (increased by activated investments).

The realised capital gain in relation to the acquisition value (increased by the activated investments) contributes to the statutory distributable result of the company, which forms the basis for the distribution of the dividend.

4.4. PORTFOLIO MANAGEMENT

With its portfolio of more than 2,400 units, Home Invest Belgium had a good level of occupancy in 2019. The average occupancy rate15 of the investment properties available for rent, amounted to 95.4%.

4.5. CORPORATE GOVERNANCE

Composition of the executive management

Changes within the management team

On January 31st 2019, Mr. Jean-Luc Colson, Chief Financial Officer, has left the company. On Feburary 28th 2019, the collaboration with Mr. Filip Van Wijnendaele, Chief Operation Officer, ended. Sven Janssens, started as the new Chief Executive Officer of the company on December 3rd 2018. On January 7th 2019, Preben Bruggeman started as the new CFO.

Completion of the management team with the recruitment of two experienced profiles

During the 2nd half of 2019, the management team was completed with the arrival of Ingrid Quinet as Chief Legal Officer and Jan Opdecam as Head of Portfolio Management.

Composition of the Board of Directors

Confirmation of the appointment of the Chief ExecutiveOfficer and reappointment of directors

At the Annual General Meeting of May 7th 2019, Mr Sven Janssens was permanently appointed as Chief Executive Officer until the Annual General Meeting of 2022.

At the Annual General Meeting of May 7th 2019, the following mandates as directors were renewed, each for a period of 4 years until the 2023 Annual General Meeting:

15 The average occupancy rate represents the average percentage over a certain period of the rented spaces, in relation to the sum of the contractual rents

of the rented spaces and the estimated rental value of the vacant spaces.
18	ANNUAL RESULTS 2019

• Mr Eric Spiessens, as non-executive independent director;
• Mr Koen Dejonckheere, as non-executive independent director;
• Mr Wim Aurousseau, as non-executive director;
• Mr Johan Van Overstraeten, as non-executive director.

Appointment of new directors

Additionally, at the General Annual Meeting of May 7th 2019, the following directors were appointed as independent directors, each for a period of 4 years until the 2023 Annual General Meeting:

• Ms Christel Gijsbrechts;
• Ms Hélène Bostoen;
• Ms Suzy Denys.

Appointment of auditor

At the 2019 Annual General Meeting, Ernst & Young auditors CVBA, permanently represented by Mr Joeri Klaykens, were appointed as the company's auditor for a period of three years, until the 2022 Annual General Meeting.

19	ANNUAL RESULTS 2019

EVOLUTION OF THE SHARE PRICE

Home Invest Belgium's shares have been listed on the Euronext Brussels continuous market since June 16th 1999 and are part of the BEL Small Index.

On December 31st 2019, Home Invest Belgium shares closed at € 114.00 (compared to € 91.40 on December 31st 2018).

The liquidity of the shares rose with an average of 1,223 share transactions per trading day, during 2019 (compared to 1,202 shares during 2018).

DIVIDEND

The Board of Directors will propose to the ordinary general meeting of May 5th 2020 to distribute a gross dividend for the financial year 2019 of € 4.85 per share16 (compared to gross € 4.75 per share for the 2018 financial year).

On December 19, 2019, an interim dividend of € 3.75 gross per share was paid.

During the ordinary general meeting of shareholders that will be held on Tuesday May 5th 2020, which should approve the financial statements for the financial year 2019, the distribution of the gross dividend of € 1.10 per share will be proposed, which would result in a total gross dividend for financial year 2019 of

• 4.85 per share. The balance of the dividend will be payable on May 14th 2020 against submission of coupon 28.

16 This corresponds to a net dividend of € 3.3950 per share after deduction of the current withholding tax of 30%.

20	ANNUAL RESULTS 2019

EVOLUTION OF THE SHARE 2014-2019

	2019	2018	2017	2016	2015	2014
Share price (in €)
Highest	€ 119.00	€ 94.00	€ 97.75	€ 103.00	€ 95.50	€ 87.00
Lowest	€ 91.60	€ 83.20	€ 87.88	€ 91.81	€ 81.95	€ 73.50
On the last day of the financial year	€ 114.00	€ 91.40	€ 88.72	€ 94.74	€ 92.59	€ 85.10
Average price	€ 102.95	€ 87.96	€ 94.93	€ 98.40	€ 89.58	€ 80.91
Dividend (in €)
Gross	€ 4.85	€ 4.75	€ 4.50	€ 4.25	€ 4.00	€ 3.75
Net17	€ 3,3950	€ 3.3250	€ 3.1500	€ 3.0875	€ 3.3700	€ 3.1875
Gross dividend yield18	4.25%	5.20%	5.07%	4.49%	4.32%	4.41%
Volume
Average daily volume	1 223	1 202	779	747	1 058	996
Annual volume	313 180	306 477	198 650	191 851	270 860	254 159
Total number of shares on Dec 31st	3 299 858	3 299 858	3 299 858	3 160 809	3 160 809	3 160 809
Market capitalization on Dec 31st	€ 376	€ 302	€ 293	€ 311	€ 293	€ 269
	million	million	million	million	million	million
Free float19	54.37%	50.19%	50.19%	52.54%	49.21%	48.96%
Velocity20	17.46%	18.50%	11.99%	11.55%	17.41%	16.42%
Payout ratio21	93.52%	111.04%	96.54%	96.75%	95.81%	88.93%

17 Since January 1st 2017, the real estate withholding tax amounts to 30%.

18 Gross dividend yield = (Gross dividend for the financial year )/ (Share price on the last day of trading of the financial year).

19 Free Float = [(Total number of shares at the close of the financial year) - (total number of shares held by parties who made themselves known through a transparency notice in accordance with the law of 2nd May 2007)] / [Total number of shares at the close of the financial year].

20 Velocity = (Total volume of shares traded during the financial year) / (total number of shares).

21 Pay-out ratio = (Total gross dividend for the financial year) / statutory distributable result in the sense of art. 13, §1 of the RREC Royal Decree).

21	ANNUAL RESULTS 2019

TOTAL RETURN OF HOME INVEST BELGIUM COMPARED TO THE BEL 20 AND EPRA EUROZONE INDEX

EVOLUTION OF THE SHARE PRICE AND GROSS DIVIDEND (IN €)

135,0	6,0
	5,5
120,0
	5,0
105,0
	4,5
90,0
	4,0
75,0	3,5
60,0	3,0
45,0	2,5
30,0	2,0
15,0	1,5

Gross dividend

Share price HOMI

22	ANNUAL RESULTS 2019

SHAREHOLDER STRUCTURE

The table below lists the shareholders of Home Invest Belgium who hold more than 3% of the company's shares. Notifications under the Belgian Transparency Law (Law of May 2nd 2007 regarding the disclosure of major holdings) can be found on the company's website.

Based on the transparency notifications received until 31st of December 2019, Home Invest Belgium's shareholder structure is as follows:

SHAREHOLDERS22	NUMBER OF SHARES	% OF THE CAPITAL
Group Van Overstraeten23	880 965	26,7%
AXA SA24	521 830	15,8%
Spouses Van Overtveldt - Henry de Frahan	102 792	3,1%
Other shareholders	1 794 271	54,4%
Total	3 299 858	100,00%

1. Shareholders who deposited a statement in accordance with the Law of May 2nd 2007 regarding transparency.
2. Stavos Real Estate BV is 97% controlled by partnership BMVO 2014. Partnership BMVO 2014 is controlled for 25% by Stichting Administratiekantoor Stavos and 75% by partnership Burgerlijke Maatschap Van Overstraeten. Partnership Burgerlijke Maatschap Van Overstraeten is 99.9% controlled by Stichting Administratiekantoor Stavos. Stichting Administratiekantoor Stavos is controlled by Liévin, Hans, Johan and Bart Van Overstraeten. Cocky NV is 99.9% controlled by partnership Burgerlijke Maatschap Van Overstraeten. V.O.P. NV is 99.9% controlled by Stavos Real Etate BV.
3. AXA Belgium SA is 94.93% controlled by AXA Holdings Belgium SA and 5.07% controlled by AXA SA. AXA Holdings Belgium SA is 100% controlled by AXA SA.

AXA SA is not a controlled entity.
23	ANNUAL RESULTS 2019

The statutory auditor EY, represented by Mr Joeri Klaykens, has confirmed that the control of the consolidated financial statements, which have been drafted in accordance with the international Financial Reporting Standards as accepted within the European Union, are entirely finished and did not lead to substantial corrections which would have appeared regarding accounting details, integrated into the consolidated financial statements and in the present press release, and which would have led to changes.

During 2019, the main financial indicators of Home Invest Belgium have developed positively compared to the previous year.

The residential rental market continues to grow steadily in those cities where Home Invest Belgium is active, mostly thanks to:

• A long-term urbanisation trend, marked by demographic growth in big cities, including both young and older people, leading to increased demand for homes;
• An increasing number of tenants in big cities, due to factors including an increasing need for flexibility and a change in attitudes to private property and concepts of urban sharing;

Current trends in the housing market are dominated by rising prices and the positive impact of very low long-term interest rates.

Home Invest Belgium has a sustainable real estate portfolio given its young age. More than 50% of its buildings are younger than 10 years. Based on this undeniable asset, and the geographical location of the buildings which are predominantly located in urban centres, Home Invest Belgium is well positioned to play a leading role in favourable market conditions.

Home Invest Belgium considers expanding its activities internationally within its positioning as the specialist in the residential rental market.

Against this background, the board of directors confirms its confidence in the further evolution of the company's results in 2020.

24	ANNUAL RESULTS 2019

CONSOLIDATED RESULTS

	2019	2018
I. Rental Income	25 185	24 287
III. Rental-related expenses	-63	-294
NET RENTAL RESULT	25 122	23 993
IV. Recovery of property charges	182	171
V. Recovery of charges and taxes normally payable by the tenant on let properties	817	578
VII. Charges and taxes normally payable by the tenant on let properties	-2 992	-3 017
VIII. Other incomes and expenses related to letting	0	-1
PROPERTY RESULT	23 129	21 724
IX. Technical costs	-1 150	-1 100
X. Commercial costs	-471	-313
XI. taxes and charges on unlet properties	-213	-341
XII. Property management costs	-2 432	-3 904
XIII. Other property costs	0	-9
PROPERTY COSTS	-4 265	-5 665
PROPERTY OPERATING RESULT	18 864	16 059
XIV. General corporate expenses	-2 877	-888
XV. other operating incomes and expenses	10	285
OPERATING RESULT BEFORE PORTFOLIO RESULT	15 997	15 456
XVI. Result sale investment properties	123	610
XVIII. Changes in fair value of investment properties	48 473	59 414
XIX. Other portfolio result	-537	-171
PORTFOLIO RESULT	48 059	59 853
OPERATING RESULT	64 056	75 309
XX. Financial income	53	105
XXI. Net interedt charges	-4 335	-4 672
XXII. other financial charges	-113	-55
XXIII. Changes in fair value of financial assets and liabilities	-5 412	-1 614
FINANCIAL RESULT	-9 808	-6 236
XXIV. Share in the result of associates and joint ventures	1 329
PRE-TAX RESULT	55 578	69 073
XXV. Corporation Tax	-88	-295
XXVI. Exit tax		0
TAXES	-88	-295
NET RESULT	55 490	68 778
NET RESULT ATTRIBUTABLE TO THE PARENT COMPANY	55 490	68 778
Exclusive portfolio result	-48 059	-59 853
Exclusive changes in the fair value of the financial assets	+5 412	+1 614
Exclusive non EPRA results in the share of the result of associates and joint ventures	-175
EPRA RESULT	12 668	10 539
Average number of shares25	3 288 146	3 288 146
NET RESULT PER SHARE	16.88	20.92
EPRA RESULT PER SHARE (in €)	3.,85	3.21
EPRA RESULT PER SHARE	5.19	4.28

25 The average number of shares was calculated excluding the 11.712 own shares held by the company.

25	ANNUAL RESULTS 2019

BALANCE SHEET

(in € k)	31/12/2019		31/12/2018	2018
ASSETS
I. Non-current assets	633 429		544 869
	B. Intangible assets	375		462
	C. Investment properties	609 594		524 506
	D. Other tangible assets	700		353
	E. Non-current financial assets	2 097		156
	F. Lease receivables	333		391
	I. Investments in associated companies and joint ventures	20 329		19 000
II. Current assets	5 740		6 237
	C. Lease receivables	58		55
	D. Trade receivables	978		1 037
	E. Tax receivables and other current assets	463		1 882
	F. Cash and cash equivalents	4 201		3 240
	G. Deferred charges and accrued income	40		24
TOTAL ASSETS	639 169		551 106
SHAREHOLDER'S EQUITY		309 618		269 003
I. Shareholders' equity attributable to shareholders of parent company	309 618		269 003
	A. Capital	87 999		87 999
	B. Share premium account	24 903		24 903
	C. Reserves	152 817		99 654
	D. Net result of the financial year	43 899		56 447
II. Minority interests	-		-
LIABILITIES	329 552		282 103
I. Non-current liabilities	281 548		274 323
	A. Provisions	0	174
	B. Non-current financial debts	273 189		263 284
		a. Financial debts	233 000		223 500
		b. Financial leasing	277		0
		c. Others	39 912		39 784
	C.Other non-current financial liabilities	6 300		9 667
	F. Deferred taxes - liabilities	2 059		1 198
		a. Exit tax	367		167
		b. Others	1 692		1 031
II.Current liabilities	48 004		7 779
	B. Current financial debts	20 609		750
		a. Financial debts	20 000		0
		b. Financial leasing	108		0
		c. Others	20 501		750
	D. Trade debts and other current debts	5 368		5 301
		b. Others	5 368		5 301
	E. Other current liabilities	155		151
	F. Accrued charges and deferred income	1 872		1 577
TOTAL SHAREHOLDERS4 EQUITY AND LIABILITIES	639 169		551 106

26	ANNUAL RESULTS 2019

Home Invest Belgium has used Alternative Performance Measures (APM) within the meaning of the Guidelines issued by the European Securities and Markets Authority (ESMA) on October 5th 2015 in its financial communication for many years. A number of these APMs are recommended by the European Public Real Estate Association, EPRA, while others were established by the sector or by Home Invest Belgium to provide the reader with a better understanding of the company's results and performances.

Performance indicators that are defined by the IFRS or by law, and indicators that are not based on items in the income statement or the balance sheet, are not considered to be APMs.

All information related to the APMs is included in this report and has been approved by the Auditor.

COVERAGE RATIO

Definition:

This is the percentage of financial debt with a fixed interest rate compared to the total financial debt.

The numerator corresponds to the sum of fixed-rate borrowing plus floating-rate debts after conversion into fixed-rate debts via IRS contracts in for at the end of the financial year. The denominator corresponds to the total amount of financial debt drawn on the closing date.

Purpose:

A significant portion of the company's financial debts are concluded at floating rates. This APM is used to measure the risk associated with interest rate fluctuations and its potential impact on the results.

Reconciliation:

	31/12/2019	31/12/2018
Fixed-rate financial debt	40 000	40 000
Floating rate debt converted into fixed-rate debt via IRS	203 000	180 000
Total fixed-rate debt	243 000	220 000
Total floating-rate debt	70 000	43 500
Total debt	313 000	263 500
Coverage rate	77.64%	83.49%

27	ANNUAL RESULTS 2019

AVERAGE INTEREST COST

Definition:

The interest costs (including the credit margin and the cost of the hedging instruments) divided by the weighted average financial debt over the period in question. The numerator corresponds to the sum of the net interest costs included in item XXI of the income statement adjusted to take account of the capitalised interest costs included in the assets. The denominator corresponds to the average financial debt calculated over the period in question.

Purpose:

The company is partly financed by debt. This APM is used to measure the average cost of the interest paid.

Reconciliation:

	31/12/2019	31/12/ 2018
Net interest charges (heading XXI)	4 335	4 672
Capitalised interest costs	895	497
Total cost of financial debt	5 230	5 169
Weighted average debt	268 357	235 015
Average funding cost	1.95%	2.20%

EPRA NAV

Definition:

NAV in accordance with the Best Practices and Recommandations of EPRA. It is the Net Asset Value adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long term investment property business model.

Purpose:

This APM is used to calculate the net asset value per share in the interest of a longterm investment property business model.

Reconciliation:

		31/12/2019	31/12/2018
	Value of net assets (IFRS)	309 618	269 003
	Number of shares at the end of the period (excl. own shares)	3 288 146	3 288 146
	IFRS NAV per share (in €)	94.16	81.81
28		ANNUAL RESULTS 2019

	31/12/2019	31/12/2018
Value of net assets (IFRS)	309 618	269 003
Fair value of financial instruments	4 358	9 667
Deferred taxes	1 692	1 031
EPRA NAV	315 667	279 701
Number of shares at the end of the period (excl. own shares)	3 288 146	3 288 146
EPRA NAV per share	96.00	85.06

EPRA RESULT (PER SHARE)

Definition:

The EPRA result is the net result excluding the (i) portfolio result (ii) the changes in the fair value of financial assets and liabilities and (iii) the non EPRA elements of the proportion share in the results of associated companies and joint ventures.

The term is used in accordance with the Best Practices Recommendations of EPRA.

Purpose:

This APM measures the profitability of the company, without regard to the result of the change in the value of the assets or liabilities on the portfolio and gains or losses on the sale of investment properties and the other result of the portfolio and without regard to the arbitration of the portfolio.

Reconciliation:

		2019	2018
	NET RESULT (GROUP SHAREHOLDERS) (IFRS)	55 490	68 778
	- Excluding: Result of sales of investment properties (ii)	-123	-610
	- Excluding: Variations in the fair value of properties (i)	-48 473	-21 422 816
	- Excluding: Other portfolio result (viii)	537	771
	Excluding: Variations in the fair value of financial assets and liabilities (vi)	5 412	1 614
	- Excluding : non-EPRA elements in the share of the result of associated companies
	and joint ventures (ix)	175	0
	EPRA RESULT	12 668	10 539
	Average number of shares	3 288 146	3 288 146
	EPRA RESULT PER SHARE	3.85	3.21
29		ANNUAL RESULTS 2019

OPERATING MARGIN

Definition:

This alternative performance indicator measures the company's operational profitability as a percentage of rental income and is calculated by dividing the "operating profit before the result on the portfolio" by "the real estate result".

Purpose:

This APM is used to assess the operating performance of the company.

Reconciliation :

	2019	2018
Operating result before portfolio result	15 997	15 456
Property result	23 129	21 724
OPERATING MARGIN	69,16%	71,15%

30	ANNUAL RESULTS 2019

2020
Annual press release on financial year 2019	Thursday February 20th 2020
Publication of the annual financial report on the website	Friday April 3rd 2020
Ordinary General Meeting of the financial year 2019	Tuesday May 5th 2020
Final dividend for the financial year 2019	- Ex-date	Tuesday May 12th 2020
Final dividend for the financial year 2019	- Record-date	Wednesday May 13th 2020
Final dividend for the financial year 2019	- Payment-date	Thursday May 14th 2020
Interim statement: results at March 31st 2020	Tuesday May 19th 2020
Half-yearly financial report: resultst at June 30th 2020	Thursday September 3rd 2020
Interim statement: results at September 30th 2020	Friday November 13th 2020

31	ANNUAL RESULTS 2019

FOR ADDITIONAL INFORMATION

Sven Janssens	Preben Bruggeman
Chief Executive Officer	Chief Financial Officer
Tel: [phone]	Home Invest Belgium
E-mail:[e-mail]	Woluwedal 46, box 11
www.homeinvestbelgium.be	B - 1200 Brussels

ABOUT HOME INVEST BELGIUM

Home Invest Belgium is a Belgian REIT (BE-REIT) specializing in the purchase, development, rental and management of residential real estate. At December 31st 2019, Home Invest Belgium held a real estate portfolio worth over € 630 million in Belgium and the Netherlands.

Home Invest Belgium has been listed on Euronext Brussels since 1999 [HOMI]. As at December 31st 2019, the market capitalization stood at € 376 million.