Befimmo : Half-Yearly Financial Report 2020

July 28, 2020 at 03:30 am EDT

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Friday 24 July 2020 I 8.00 AM I Regulated information

Half-yearly accounts for the period from 01.01.2020 to 30.06.2020

Solid operational performance in the first half of fiscal year 2020 despite the COVID-19 crisis
Financial results:

Stability (+0.01%) of the fair value of the portfolio at constant perimeter (excluding the amount of investments)

The consolidated net asset value of €59.32 per share (group share)

Net result of €0.91 per share (group share)

1. Consolidated EPRA earnings of €1.53 per share (group share)
Real-estateoperator (94% of rental income):
1. Dynamic and growing rental activity: 33,500 m² let since the beginning of the year, an increase compared to the 20,000 m² (excluding ZIN) signed in the first half of 2019

Occupancy rate of 93.6% and weighted average duration of leases (up to next break) of 7.2 years

Operating portfolio:

Extension of the lease for the Poelaert building (Brussels, centre) for a fixed term of 9 years with reorganisation of the duration of leases of 10 Fedimmo building located in Belgian provinces, generating an economic result for the quarter of €14 million

Ongoing developments (±15% fair value) - office pre-letting rate amounts: 81%:
- Brederode Corner (Brussels centre): delivery and lease started in June 2020
- ZIN (Brussels, North area): building and environmental permits delivered in March 2020
- Quatuor (Brussels, North area): after closure of the half-year, signature of an additional lease of 3,950 m² with a major corporate client, actually pre-let for 49%
- Paradis Express (Liège): 100% pre-let more than a year before delivery

1. Acquisition:
2. - After the close of the half-year, integration in the portfolio of the Loi 52 building ( 6,800 m², Brussels, Leopold district) to complete the redevelopment project of the Joseph 2 - Loi 44 site
Coworking (6% of rental income):
1. Opening of coworking space Bailli (Brussels, centre)

1. Occupancy rate of mature spaces of 79%
Financial structure:
1. Stable and solid Loan-to-Value ratio of 40.2%

1. Financing needs covered until the end of the year 2021
EPRA earnings outlook and dividend forecast:
1. Little impact of the COVID-19 pandemic crisis on the results of the first half of the 2020 fiscal year

Increase of the outlook of EPRA earnings for the year: estimated at around €2.80 per share

Dividend forecast for the year: based on EPRA earnings estimated at €2.80 per share, a minimum of €2.24 per share

EXECUTIVE SUMMARY ...............................................................................................................................................................................................	1
INTERIM MANAGEMENT REPORT ......................................................................................................................................	7
PROPERTY REPORT ....................................................................................................................................................................................................	8
OFFICE PROPERTY MARKETS ...................................................................................................................................................................................	18
FINANCIAL REPORT ................................................................................................................................................................................................	22
EPRA BEST PRACTICES .........................................................................................................................................................................................	28
BEFIMMO ON THE STOCK MARKET ........................................................................................................................................................................	30
INFORMATION TO THE SHAREHOLDERS ................................................................................................................................................................	32
CONDENSED FINANCIAL STATEMENTS .............................................................................................................................	34
STATUTORY AUDITOR'S REPORT ......................................................................................................................................	48
STATEMENT .....................................................................................................................................................................	50
STATEMENT BY PERSONS RESPONSIBLE .................................................................................................................................................................	51
RISK FACTORS ..................................................................................................................................................................	52
APPENDICES.....................................................................................................................................................................	69
APPENDIX 1: CONCLUSIONS OF THEREAL-ESTATEEXPERT COORDINATOR ........................................................................................................	70
ANNEXE 2 : GLOSSARY OF THEREAL-ESTATEINDICATORS ..................................................................................................................................	72
ANNEXE 3 : ALTERNATIVE PERFORMANCE MEASURES ........................................................................................................................................	73
ANNEXE 4 : TABLES OF THE EPRAINDICATORS ..................................................................................................................................................	77

The Board of Directors met on 23 July 2020 to prepare the consolidated half-yearly financial statements as at 30 June 2020.

Consolidation basis:

The Befimmo businesses are presented in this Half-yearly Financial Report by business sector (real-estate operator and coworking). The results presented in € per share are calculated based on the average number of shares not held by the group as at 30 June 2020. It concerns 27,052,443 shares.

Real-estate and financial indicators:

The definitions of Befimmo's real-estate indicators are described in Appendix 2 to the Half-yearly Financial Report 2020. They are identified in a footnote the first time they occur. Befimmo has fully committed to standardising its financial and social-responsibility reporting - with a view to improving the quality and comparability of the information - by adopting the EPRA reporting guidelines.

Alternative Performance Measures :

The Alternative Performance Measures (APM) guidelines of the European Securities Markets Authority (ESMA) have been applicable since 3 July 2016. The APMs used in this press release are identified in a footnote the first time they occur. The full list of APMs, with their definitions, purpose and relevant reconciliation tables are set out in Appendix 3 and Appendix 4 to this press release and are published on Befimmo's website (www.befimmo.be).

The first half of fiscal year 2020 was marked by the COVID-19 pandemic, which affected the whole world at all levels.

In these exceptional circumstances, Befimmo's attention is focused first and foremost on the health and safety of its staff, customers and all other stakeholders, while safeguarding the Group's business and the continuity of the services it provides to its customers. Since the beginning of March, Befimmo has regularly informed its customers and implemented measures to protect their health and safety. After a period of compulsory teleworking, customers have been returning to their offices in increasing numbers since mid-May.

The results for the first half of 2020, scarcely impacted by the COVID-19 crisis, indicate a robustness and a good performance. This Half-Yearly Financial Report includes an inventory of the current estimated impact of the crisis on Befimmo's various activities. In these times of crisis, Befimmo's fundamentals (a high occupancy rate, long duration of leases and first-class tenants) provide a solid operational base.

This unprecedented crisis is accelerating the evolution of the world of work. In future, office environments will be used in a different way, mainly for collective efficiency. After the world's largest teleworking experiment, there will be an increasing need for a new attractive, flexible and adaptable working environment.

The long-term impact on office demand is still uncertain and it is likely that many companies will be looking more carefully at their costs and at flexibility. A new balance between an increase in the number of m² needed for social distancing and a reduction in the number of m² linked to the increase in teleworking has yet to be defined. Befimmo is ready to respond to these two contradictory trends thanks to the quality of its assets and its range of offers covering solutions going from long term leases to flexible contracts.

A global study by Cushman and Wakefield1 confirms these trends and concludes that, in future, 50% of the workforce will work in an ecosystem of workplaces with a balance between the office, home and other places. The central hub of a company will always

remain the heart of its activities. Decentralised secondary hubs will complement its ecosystem.

Therefore, the joint offer or "hybrid offer" of Befimmo and Silversquare, ranging from the traditional office to the full coworking building and a mix of both solutions, meets these needs and allows customers to combine several innovative workspace solutions that promote creativity and networking in a BeLux network. Users will benefit from flexibility in terms of duration of their contract, workspace (they will easily occupy less or more space depending on their needs) and meeting facilities. They will be able to move from place to place according to their preferences and work schedule. In fact, in recent months the commercial teams of Befimmo have noticed growing interest among customers in this kind of solution, and Befimmo and Silversquare are well placed to respond to it.

The crisis has also demonstrated the importance of digitisation. This digital transformation is one of the priorities of Befimmo's R&D activities, with the goal of providing new tools to improve the user experience.

To continue this evolution and transformation, Befimmo concluded a partnership with Co.Station in June 2020 and has become its privileged real-estate partner and will lead the innovative "smart building" track. Co.station is a unique platform for innovation and entrepreneurship.

The real-estate operator business was scarcely impacted by the COVID-19 crisis during the first half.

Indeed, Befimmo let or renegotiated nearly

33,500 m², an increase on the 20,000 m² signed in 2019 (excluding the ZIN transaction which involved 70,000 m² of office space).

Befimmo has concluded an agreement with the Buildings Agency for the extension of the lease of the Poelaert building (Brussels centre) for a fixed 9-year term from 19 December 2021. The agreement also provides for the early termination (full or partial) of 10

1 The Future of Workplace, Cushman & Wakefield, May 2020.

leases in small Fedimmo buildings located in Belgian provinces (in 2020 and in 2021), in return for compensations. As planned in its strategy and outlook, Befimmo will sell these buildings. The economic results on this operation during the quarter amounts to some €14 million. The impact of this operation on EPRA earnings in 2020, 2021 and 2022 is neutral. The IRR of the Poelaert building at 30 June 2020 is 7.1%.

In these times of crisis, Befimmo's fundamentals provide a solid operational base. Accordingly, the spot occupancy rate of the properties available for lease is 93.6% at 30 June 2020 (compared with 94.4% at the end of 2019). The weighted average duration of the leases (until the next expiry) is 7.2 years, and 59% of income comes from long leases with Belgian and European public institutions. The remainder is spread among tenants from various sectors, including large companies, while a very limited share comes from the retail sector (1% of consolidated rental income).

Befimmo is aware of the challenges that some of its customers are facing and is monitoring the situation responsibly on a case-by-case basis, granting rent deferrals in some cases. At 15 July 2020, 98% of the rent due for the first half of the fiscal year has been collected, this percentage is in line with last year's percentage at the same date, and a limited proportion of the arrears is directly related to the COVID-19 crisis.

A full overview of rent collection and deferrals can be found on page 11 of the Report.

As proven in the past, Befimmo has always attached importance to the management of its development pipeline. Particular attention is paid to the analysis of the market before launching projects at risk of occupancy and to maximizing the pre-let rate before work begins. Currently, the pre-lettingrateof office projects amounted to 81%.

In Liège, construction of the Paradis Express eco- neighbourhood continues. Marketing of the project has been a great success. In 2020, Befimmo pre-let 3,100 m² to ONEM and 2,540 m² to Deloitte. All the office space under construction (21,000 m²) is therefore pre-let, after the residential part was sold in 2019. Paradis Express is scheduled for hand-over in

2021. The capital gain over the quarter as a result of these leases amounts to €15.3 million.

In the Quatuor building (Brussels North area), under construction, Befimmo signed (after the close of the half-year) a lease for 3,950 m² with a major corporate client. The Quatuor building is currently 49% pre-let. Even though no marketing visits could take place during lockdown, they resumed very quickly from mid-May and clear signs of interest in the building are being confirmed.

In June 2020, the Brederode Corner building

(6,700 m², Brussels centre) was handed over and the lease has commenced, generating an increase in value of approximately €5 million since the departure of the previous tenant.

After the sale of the Pavilion building in 2019, Befimmo intends to pursue during fiscal years 2020 and 2021 an active rotation policy of certain assets that have reached maturity, with a good prospect of crystallization of value, for an amount of at least €220 million.

After the closing of the first half, Befimmo acquired the Loi 52 building, intended to host, in the form of an Instit. BE-REIT, the entire project consisting of the buildings "Joseph 2", "Loi 52" (6,700 m², Brussels, Leopold district) and "Loi 44" (see page 13 of the Report).

The new "Bailli" space (7,200 m²) opened on

1 June 2020 in the Platinum building, located in the Brussels CBD (Louise district). The space, designed by a two Brussels artists, has four floors in this iconic building with an internal garden of 500 m². Even though the centre opened in the midst of the crisis, its occupancy rate is already 13%, far better than forecast.

Silversquare now operates seven coworking spaces in Brussels and the Grand Duchy of Luxembourg, with a total space of 26,000 m².

Because of some of the waivers received during lockdown, the occupancy rate of the mature spaces was 79% as at 30 June 2020. Since June, members are returning gradually, and Silversquare estimates that it can return to normal occupancy by the end of the

year. The growing need for flexibility among corporate customers will support demand.

In the first half of 2020, Silversquare's turnover was €4.0 million.

The recovery rate for monthly invoices issued for the first half of the year was 99%.

Befimmo and Silversquare are continuing to develop the Belux network of connected working environments. The expansion of the Europe space (from 2,800 m² to 4,600 m²) is currently under way. The expansion of the Stéphanie space (from 2,100 m² to 3,800 m²) is also planned in 2020. Before expansion, these spaces were fully occupied.

The pipeline is presented on page 16 of this Report.

Thanks to Silversquare's activity, still low in consolidated revenues until 2023, Befimmo has been able to complete its range of offers and services and thus meet the demands for flexibility and community that will be crucial in tomorrow's world of work. Silversquare's contribution to consolidated revenues will increase in line with the development plan.

The consolidated net asset value (group share)was €59.32 as at 30 June 2020. The fair value of the portfolio amounts to € 2,863.0 million compared to the value of € 2,788.6 million on 31 December 2019. Overall, values have not been impacted by the COVID-19 crisis. Historically, and due to the presence of the Belgian and European institutions, the Brussels office market is more stable in times of crisis compared to other European cities.

The loan-to-value (LTV) ratio was 40.2%at

30 June 2020. Befimmo intends to maintain its LTV ratio to a level below 50% throughout the implementation of its development pipeline. In addition to value crystallization, asset rotation should make it possible to fund projects in progress, ensure a capacity for growth, and even absorb any exceptional falls in value linked to the COVID-19 crisis.

The EPRA earnings of the real estate operator businessamounts to €1.57 per share, compared to

€1.71 per share as at 30 June 2019, mainly due to the effect of the private placement of shares carried out in December 2019 (see page 24 for a detailed analysis of the result).

The consolidated EPRA earnings (group share)amounts to € 1.53per share.

Following the uncertainties related to the consequences of the COVID-19 pandemic, the Board of Directors of Befimmo decided, in May 2020, to withdraw the three-year EPRA earnings forecasts published in the 2019 Annual Financial Report. These uncertainties persist to this day.

The Board had also revised the EPRA earnings forecast for the 2020 financial year to an amount above € 2.70 per share. At constant perimeter and on the basis of the information known at the date of publication of this Report, Befimmo is confident to be able to announce that the projected EPRA earnings should amount to about € 2.80 per share.

Befimmo will propose a dividend of at least 80% of the EPRA earnings for the year, supplemented, as the case may be, by realised capital gains during the financial year in the framework of its asset rotation policy, i.e. for the 2020 financial year a minimum of €2.24 per share. The financial resources retained in the Company will contribute to ensuring the capital requirements useful for the development of its activities.

Befimmo has the intention to propose the distribution of the dividend in two phases (interim dividend in December and final dividend in May) and, as the case may be, in optional form.

The current crisis is characterised in particular by a significant fall in share prices.

The Befimmo share price is at a historically low level. At 30 June 2020, the Befimmo share closed at €39.85, a discount of 33% in relation to the net asset value.

This share price movement is in line with the average evolution of listed European office REIT's. As at

30 June 2020, the return on the Befimmo share price (-24.7%) since the year opened is in line with the movement of the EPRA office index (-24.3%).

None

2 In the sense that there are no events with an impact on the condensed consolidated financial statements as at 30 June 2020.

BEFIMMO

AT A GLANCE.

Beﬁmmo, a Belgian Real-Estate Investment Trust (SIR-GVV),

is an investor and real-estate operator specialising in quality workspaces. These "Beﬁmmo Environments" are located in Brussels, in the main Belgian towns and cities and in the Grand Duchy of Luxembourg.

With its subsidiary, Silversquare, Beﬁmmo develops a BeLux network of interconnected and ﬂexible workspaces.

As a Company that is human, a corporate citizen, and responsible, Beﬁmmo oﬀers its users inspiring workspaces and related services in buildings that are sustainable in terms of architecture, location and respect for the environment.

Its portfolio is worth some €2.9 billion and comprises 78 oﬃce buildings with space of about 1,000,000 m².

Beﬁmmo is listed on Euronext Brussels. At 30 June 2020, its market capitalisation was €1.1 billion. Beﬁmmo oﬀers its shareholders a solid dividend and a yield in line with its risk proﬁle.

By creating added value for its users,

Beﬁmmo also creates value for its shareholders.

TRENDS

Changing ways of working and living

Emergence of new technologies and digital revolution		Homeworking

Environment concerns	Mobility	Metropolisation	Flexibility
Work-life balance and well-being	Talent attraction
AXES	INTEGRATION	WORLD	USE OF
OUR 6 STRATEGIC
INTO THE CITY	OF WORK	RESSOURCES
MOBILITY	DIALOGUE	SETTING
			AN EXAMPLE

BEFIMMO'S BUSINESS MODEL

Providing, places to work, meet, share and live

REAL-ESTATE OPERATORCOWORKING

Asset management	Asset	Workspace
& rotation	development	as a service

Proactive management	Future proof developments	Offering ﬂexibility
of quality workspace	to create value	community
with city center focus	in a low yielding	& services
in a Belux network	environment

SUSTAINABLE, INNOVATIVE APPROACH AND TENANT'S EMPOWERMENT ARE AT THE CENTER OF OUR STRATEGY

.INTERIM MANAGEMENT REPORT

During the first half of the fiscal year, Befimmo contracted new leases and renewals for a surface area of 33,492 m², compared to the 19,830 m² contracted during the same period in fiscal year 2019 (excluding rental of the office part of the 70,000 m² ZIN project).

▪

Poelaert (Brussels, centre) : agreement with the Buildings Agency for the extension of the lease of the Poelaert building for a fixed 9-year term from 19 December 2021. The agreement also provides for the early termination (full or partial) of 10 leases in small Fedimmo buildings located in Belgian provinces (in 2020 and in 2021), with compensation. As planned in its strategy and outlook, Befimmo will sell these buildings. The economic result on this operation during the quarter amounts to some €14 million. The impact of this operation on EPRA earnings in 2020, 2021 and

2022 is neutral. The IRR of the Poelaert building at 30 June 2020 is 7.1%.

Axento (Grand Duchy de Luxembourg, Luxembourg, Kirchberg) : signature of several lease extensions (5,000 m²);

1. Blue Tower (Brussels, Louise district) : signature of lease renewals (1,000 m²) and new leases (1,300 m²);
1. Paradis Express (Liège) : 3,100 m² pre-let to the ONEM and 2,540 m² to Deloitte. The project is therefore entirely pre-let, one year before delivery. The capital gain over the quarter as a result of these leases for the quarter amounts to €15.3 million;

Quatuor (Brussels, North area) : 3,950 m² pre-let to a major corporate client. The Quatuor is currently pre-let for 49%.

On account of the lockdown, new expressions of interest were limited during the first half of fiscal year 2020. Sales visits have resumed since mid-May and some negotiations already under way before the lockdown have been concluded. The take-up of space was generally not impacted by the COVID-19 crisis over the half-year. However, prospective tenants are even more demanding in terms of quality, location, services and flexibility. Given the quality of its portfolio and the flexibility of the "hybrid offering", Befimmo and Silversquare are well placed to meet those needs.

3 In accordance with the definitions, leases are not reflected in the real estate indicators until the lease has started.

	30.06.2020	31.12.2019

"Spot" occupancy rate of properties available for lease(a)	93.6%	94.4%
EPRA Vacancy Rate(b)	3.6%	4.1%

This is a real-estate indicator. For more information, please refer to Appendix 2 of this Report.
This is an EPRA indicator. For more information, please consult the chapter "EPRA Best Practices"

The change in the occupancy rate is mainly related to a "one off" item (i.e. the reclassification of the 6 Fedimmo buildings in the "properties held for sale" category) and the termination of leases in the Central Gate building. These floors are currently being renovated and 80% is already pre-let. In accordance with the definitions, future signed leases are not taken into account in the calculation of the occupancy rate.

	30.06.2020	31.12.2019

Weighted average duration of current leases up to next break(a)	7.2 years	7.1 years
Weighted average duration of current leases up to final expiry(a)	7.9 years	7.8 years

This is a real-estate indicator. For more information, please refer to Appendix 2 of this Report.

In accordance with the definitions, future signed leases are not taken into account in the calculation of the occupancy rate.

4 The proportions are expressed on the basis of the gross current rent from lease agreements as at 30 June 2020.

	Weighted	Percentage of the
Public sector	average duration	gross current rent	Rating
up to next break	from lease

	(in years)	agreements (in %)
Federal		47.8%	AA (rating S&P)


Flemish Region		2.1%	AA (rating Fitch)


Belgian public sector	8.8	49.9%

European Commission		3.6%	AAA (Rating S&P)

European Parliament		3.9%	AAA (Rating S&P)

Representations		1.5%	-

European public sector	4.6	9.0%

Total public-sector tenants	8.2	58.9%


	Weighted	Percentage of the	Rating S&P
Private sector - top 5	average duration	gross current rent
up to next break	from lease

	(in years)	agreements (in %)
Deloitte Services & Investments NV		5.7%	-

BNP Paribas and affiliated companies		5.0%	A+

Beobank (Crédit Mutuel Nord Europe)		2.5%	A+

Docler Holding		2.2%	-

McKinsey & Company		1.5%	-

Total private-sectortop-5 tenants	8.4	16.8%


	Weighted	Percentage of the
Other tenants	average duration	gross current rent
up to next break	from lease

	(in years)	agreements (in %)
±255 tenants	3.8	24.2%

Total of portfolio	7.2	100%

5 Rents for future years calculated on the basis of the present situation, assuming that each tenant leaves at the first break and that no further lease is agreed in relation to the current rent as at 30 June 2020.

Befimmo is aware of the challenges that some of its customers are facing and is monitoring the situation responsibly on a case-by-case basis. For tenants in the retail sector (accounting for some 1% of consolidated rental income), rent rebates were granted for the duration of the lockdown. For around 30 office tenants seriously affected by the crisis linked to the COVID-19 pandemic, deferred payments were allowed for the second quarter and the rents were monthlyized. These rent deferrals currently amount to around €1.4 million.

As at 15 July 2020, some 98% of rents due for the first half of the fiscal year have been collected; this percentage is in line with the figure for the same date last year, and a limited proportion of late payments are directly related to the COVID-19 crisis.

As at 30 June 2020, the fair value of the portfolio was €2,863.0 million, as against €2,788.6 million as at 31 December 2019.

This change in value (excluding rights of use IFRS 16) incorporates:

the renovation or redevelopment (investments) works carried out in the portfolio;
the changes in fair value booked to the income statement (IAS 40).

At constant perimeter, the value of the portfolio (excluding the amount of investments) was stable during the first half of the fiscal year (change of +0.01% or €0.2 million).

Overall, values have not been impacted by the COVID-19 crisis. The change in value of -42.1% in the category "Properties held for sale" is related to the early termination of Fedimmo leases in return for compensation, which is more than offset by the capital gain of €24 million on the extension of the lease in the Poelaert building.

The experts point out that the valuations as at 30 June 2020 are reported on the basis of "significant valuation uncertainty" as provided for in the RICS guidelines7.

These values are established in application of the IAS 40 standard which requires investment properties to be booked at "fair value". The fair value of a building is its investment value, including registration fees and other transaction costs (also known as "deed-in-hands value") as calculated by an independent expert, minus a standard allowance of 10% (Flanders) or 12.5% (Wallonia and Brussels) for buildings with an investment value of less than €2.5 million, and 2.5% for buildings with an investment value of more than €2.5 million. This 2.5% allowance represents the average transaction costs actually paid in these transactions and is derived from an analysis by independent experts of a large number of transactions observed on the market. This accounting treatment is detailed in the press release issued by BeAMA on 8 February 2006 and confirmed in the press release of the BE-REIT Association of 10 November 2016. This rule is also applied for determining the fair value of property located in the Grand Duchy of Luxembourg

Royal Institute For Chartered Surveyors.

		Proportion of
Offices	Change over the	portfolio(b)	Fair value	Fair value
half-year(a)	(30.06.2020)	(30.06.2020)	(31.12.2019)

	(in %)	(in %)	(in € million)	(in € million)
Brussels CBD and similar(c)	1.1%	49.19%	1 408.2	1 346.1
Brussels decentralised	-1.3%	2.9%	82.9	83.2

Brussels periphery	-0.9%	4.2%	120.6	121.1

Flanders	-3.0%	15.4%	441.6	474.9

Wallonia	0.9%	8.1%	232.5	230.6

Luxembourg city	2.1%	4.9%	141.5	138.6

Properties available for lease	0.1%	84.8%	2 427.4	2 394.5

Properties that are being constructed or
developed for own account in order to be	1.2%	14.8%	424.4	394.1
leased
Investment properties(d)	0.3%	99.6%	2 851.7	2 788.6
Properties held for sale	-42.1%(e)	0.4%	11.2	0.0
Total	0.0%	100.0%	2 863.0	2 788.6

1. The change over the semester is the change in fair value between 1 January 2020 and 30 June 2020 (excluding the amount of investments).
The proportion of portfolio is calculated on the basis of the fair value of the portfolio as at 30 June 2020.
Including the Brussels airport zone, in which the Gateway building is situated.
Excluding rights of use IFRS 16.
The change in value of -42.1% in the category "Properties held for sale" is related to the early termination of Fedimmo leases in return for compensation, which is more than offset by the capital gain of €24 million on the extension of the lease in the Poelaert building.

	30.06.2020	31.12.2019

Gross initial yield on properties available for lease (a)	5.2%	5.4%
Gross potential yield on properties available for lease (a)	5.5%	5.6%
Gross initial yield on investment properties	4.5%	4.6%

EPRA Net Initial Yield (NIY)	4.7%	4.9%

EPRA Topped-up NIY	5.0%	5.1%

Taking into account the properties that are being constructed or developed for own account in order to be leased, but excluding the IFRS 16 rights of use.

8 The proportions are expressed on the basis of the fair value of the investment properties as at 30 June 2020.

Over the first half of the fiscal year, Befimmo invested €74.1 millionin its portfolio. The main renovation and construction projects are listed in the table below. All projects have a BREEAM "Excellent" or "Outstanding" certification in the Design phase.

	Projected return		Occupied	Total investment	%		Completion
	on investment			(in € million)	Completion(a)		date
	(including land)
Committed ongoing main projects

Paradis Express	> 6%			100% pre-let	54	29%		2021
		3 800 m² coworking

Quatuor	> 5.3%			49% pre-let	170(b)	51%		2021
		7 000 m² coworking

ZIN	±4.3%				411	14%
(on all functions)

Offices				100% pre-let				2023

Coworking & sport				5 000 m² coworking				2024

Hotel				Negotiation in progress				2024

Residential				Commercialisation in 2023				2024

Ongoing main projects to be committed

PLXL	Targeted return of	-	49	-	2023
±6%

(re)development	Targeted return of	-	60	-	2024
Joseph 2 - Loi 44 & 52	±5%

(re)development	Targeted return of	-	37	-	2024
Pachéco	±5%

WTC 4	- Development in case of pre-letting	140	-		Implementation
	of the permit

Costs spent/total investment (excluding land).
The increase in the estimated cost of the Quatuor project corresponds mainly to additional investments to enhance the qualities of the building that will lead to an improved rental situation.

For more information on these projects, please consult pages 57 and 58 of the Annual Financial Report 2019 (www.befimmo.be).

Since the publication of the Annual Financial Report, Befimmo has completed preparations for the expiry of the leases10 in the Joseph 2 building (12,820 m², Brussels CBD, Léopold) and Pachéco building (5,770 m², Brussels CBD, centre). Befimmo is preparing two new innovative projects for these strategic locations.

In 2019, it bought the Loi 44 building (6,290 m²) and recently acquired the Loi 52 building (6,800 m²) in its portfolio. The location of these buildings, adjoining the Joseph 2 building, offers significant potential for value creation. On the site, a new complex (approx. 30,000 m²) will be developed, with an address on Rue de la Loi, which will be able to meet the needs of institutional occupants looking for quality new working environments by 2024.

The redevelopment project for the Pachéco building will be multifunctional (approx. 12,500 m²) in an exceptional city- centre location.

These projects are in line with Befimmo's six strategic axes including mobility, integration in the city, use of resources, etc.

Befimmo pays particular attention to the decrease of the weight of its portfolio in the North area of Brussels, now that a firm 18-year lease has been signed and the permits have been delivered for the ZIN project. The construction of the ZIN project will be able to start very soon.

Calculated on the office portion of ongoing committed projects, excluding coworking.
Expiry of the lease on the Joseph 2 building in 2021 and expiry of the lease on the Pachéco building in 2021 at the earliest.

COVID-19 is having a delayed effect on Befimmo's EPRA earnings (up to 2022-2024) since the hand-over of the Quatuor, ZIN and Paradis Express projects will suffer a delay, currently estimated at around 6 months, and an increase of their cost.

Spaces	Surface	Location

Silversquare Bailli	7 200 m²	Louise district, Brussels CDB

Silversquare Europe	4 100 m²	Leopold district, Brussels CDB

Silversquare Louise	3 300 m²	Louise district, Brussels CDB

Silversquare Luxembourg	2 200 m²	Railway station district,
Luxembourg city, Grand Duchy of Luxembourg

Silversquare Stéphanie	2 100 m²	Leopold district, Brussels CDB

Silversquare Triomphe	4 300 m²	University district, Brussels decentralised

Silversquare Zaventem	2 600 m²	Brussels periphery

Total	26 000 m²

The new "Bailli" space (7,200 m²) has opened on 1 June 2020 in the Platinum building, located in the Brussels CBD (Louise district). The space, designed by a two Brussels artists, occupies four floors in this iconic building with an internal garden of 500 m² available for coworking. Even though the Bailli centre opened in the midst of the crisis, its occupancy rate is already 13%, way better than forecast.

Silversquare now operates seven coworking spaces in Brussels and the Grand Duchy of Luxembourg.

The coworking business accounted for about 6% of Befimmo's consolidated rental income as at 30 June 2020. While the proportion of coworking activity in consolidated income will remain relatively low by 2023, the attractiveness and flexibility of the Befimmo and Silversquare "hybrid offering" are essential elements of tomorrow's world of work.

	Base 100
Turnover	100

Rent	-32

Taxes/charges	-18

Human ressources	-10

Operating expenses	-13

EBITDA	27

Investments (annualised)	-10

Contribution (before structure costs)	17

The implementation of Silversquare's development plan should lead to a positive contribution to EPRA earnings from 2022 onwards.

	Number of	Number of	Occupancy rate
	occupied desks	available desks
	(A/B)
	(A)	(B)

« Mature » coworking spaces a)	511	645	79%
All coworking spaces	1 443	2 848	51%

A space is considered as mature after 3 years of existence.

After a boost to its reputation during lockdown, the occupancy rate of the mature spaces was 79% as at 30 June 2020. The recent openings of the "Zaventem" and "Bailli" centres have an impact on the occupancy rate of all coworking spaces, which stood at 51% as at 30 June 2020. It should be noted that the perimeter of mature and total spaces changes from period to period due to the fact that Silversquare is in a period of development.

Since June, members are returning gradually, and Silversquare estimates that it can return to normal occupancy by the end of the year. The growing need for flexibility among corporate customers will sustain demand.

With the aim of cementing members' loyalty, the membership fees for "fully flex" and for "dedicated desks" in the "open space" of the coworking centres (0.4% of consolidated rental income) were cancelled for the month of April. Furthermore, specific concessions are granted on a case-by-case basis according to the situation of the members concerned.

The recovery rate for monthly invoices issued for the first half is 99%.

69% of revenues for the half-year are generated in "private offices" used by small and medium sized companies which have a higher resilience potential than "flex desks".

Befimmo and Silversquare continue the development of the Belux network of connected work environments.

The coworking spaces planned in the buildings of the Befimmo portfolio are generally fitted out by Befimmo (as real- estate operator) and handed over to Silversquare as "turnkey" premises. Silversquare (as coworking operator) invests in the furniture and IT for these spaces. For the spaces provided in third-party buildings, Silversquare invests in the fitting-out as well as in furniture and IT.

In the first half of 2020, Silversquare invested € 3.0 million in its spaces. Befimmo (real estate operator) has invested €0.3 million in 2020 in the ongoing project (Central Gate) delivered turnkey.

The extension of the Europe space (from 2,300 m² to 4,600 m²) is currently ongoing. The extension of the "Stéphanie" space (from 2,100 m² to 3,800 m²) is also planned for 2020. Before extensions, these spaces were 100% occupied.

Current pipeline until 2022

Spaces		Surface - committed	Surface - not	Total surface
	committed

Extensions 2020		+ 2 000 m²

Portfolio end 2020		28 000 m²		28 000 m²
New openings 2021		+ 20 000 m²(a)	+ 4 100 m²
Portfolio end 2021		48 000 m²	4 100 m²	52 100 m²

New openings 2022		+ 3 800 m²(b)	+ 10 000 m²
Portfolio end 2022		51 800 m²	14 100 m²	65 900 m²

Quatuor, Central Gate and Flanders.
Paradis Express

PARTNERSHIP WITH CO.STATION

In June 2020, Beﬁmmo announced its new partnership with Co.Station

and becomes its privileged real-estate partner. Co.Station is a unique innovation and entrepreneurship platform. Beﬁmmo will also be one of the founding partners

of the "co.building" innovation ecosystem, to be launched by Co.Station later this year.

This ecosystem will support more than 30 companies in designing intelligent and sustainable buildings together, placing environmental quality at the heart of housing and the workplace. This dialogue will bring many opportunities with it for Beﬁmmo, because it is going to be a cutting-edge ecosystem open to themes, such as mobility, integration in the city, use of resources, etc., that have been built into our strategy since long.

www.beﬁmmo.be/en/news/beﬁmmo-partnering-costation

www.co-station.com

COVID 19 : EXCEPTIONAL TIMES ASK

FOR EXCEPTIONAL MEASURES

1 TEAM

1. Change management and well-being Regular virtual contacts Increased digital communication tools

Tips & tricks and protocols for WFH and WLB

Additional virtual social activities

Training

Additional IT and logistics support for home oﬃces Speciﬁc integration process for new recruits

2. Crisis team

Crisis management and crisis communication team to ensure daily/weekly follow-up of the business impact of the crisis

2 CLIENTS

1. Increased virtual contacts

2. Regular mailings

Protocols
(COVID- 19 case detection)
Safety measures and guidelines
Responsible and case by case monitoring
of the ﬁnancial situation

3 OTHER STAKEHOLDERS

1. Investor community :

Regular updates on business impact and measures taken

Monitoring of share price

2. Sponsoring :

Fund raising for the Red Cross of Auderghem (€7,000)

with sport challenge to replace their annual sticker sale

4 LESSONS LEARNED

1. Resilience and ﬂexibility of the Beﬁmmo team. | 2. Strategy: acceleration of the evolution of our ways of working and living, the further development of Beﬁmmo's current positioning and 6 strategic axes is key. | 3. Agility

and Change Management. | 4. Acceleration of team training to support/boost the business & digital transformation. | 5. Continuous improvement of the internal team functioning van het interne team. | 6. Internal questionnaire regarding COVID-19 to continue to innovate and improve.

All of the following information, covering Brussels and Luxembourg, comes from Cushman & Wakefield's databases, analyses and market reports on 30 June 2020.

The Brussels office market relates to the area covered by the Brussels-Capital Region in the administrative sense of the term, along with part of Flemish Brabant and part of Walloon Brabant, which form the economic hinterland of Brussels. This area has a population of some 1,850,000 and provides more than a million jobs.

Take-up during the first half of the year amounted to 128,000 m², a sharp drop in relation to the 344,000 m² recorded for the first half of 2019. 2020 has also seen a drop in the number of transactions in relation to last year. So far in 2020, there have been 136 transactions on the Brussels office market, as against 187 in the first half of 2019. We would recall that a drop in rental activity was expected this year after the remarkable take-up in 2019, but the drop was exacerbated by the COVID-19 pandemic and the containment measures that ensued.

The major transactions so far include:

30,000 m² taken up by the European Commission in The One (Leopold district);
14,200 m² taken up in Commerce 46 (Leopold district) by ING Bank;
5,900 m² rented by ACP in the MCE Center (Louise district).

The public sector (European Union, Belgian federal, regional and local governments) contributed about 55,000 m² of take-up this year, 50% down on the first half of 2019. The European Union is so far contributing more than 23% of take-up following the lease in The One tower, the largest transaction of 2020. The private sector accounts for nearly 57% of take-up, compared with 66% in the first half of 2019 and 68% in 2018.

The take-up from coworking is falling back after dynamic growth over the past three years. Only one transaction was recorded in 2020; the lease of 2,300 m² by Frame 21 in the G building of the Corporate Village (Airport periphery). While the business began to develop in 2017, it was in 2018 and 2019 that the sector grew strongly in Brussels, owing partly to the arrival of new providers (national and international). Specifically, more than 78,000 m² were let (in 17 transactions) in 2018 and more than 60,000 m² (a further 17 transactions) in 2019. Note that most of the transactions that took place in 2018 and 2019 were in the form of pre-letting. This, combined with the effects of the COVID-19 pandemic, could explain the slowdown in take-up this year.

With its multiple coworking brands, the IWG group (approx. 58,000 m² in Brussels) is the largest operator in Brussels, followed by Silversquare (approx. 43,000 m² in Brussels). The coworking market in Brussels currently accounts for some 1.3% of office stock, a proportion that is in line with the European average (excluding the United Kingdom).

Since the start of the year, some 94,000 m² of office space have been handed over onto the Brussels market. Recent hand-overs include the Manhattan Center (45% occupied) in the North area, the Allianz Tower (Mobius I) (100%

occupied) in the North area, the Spectrum (approx. 80% occupied) in the city centre and the Brederode Corner (100% occupied) also in the city centre.

Some 556,000 m² of new developments (speculative and pre-let) are currently under construction with an expected hand-over date between 2020 and 2022. The biggest developments partly at risk launched in 2020 and 2021 include the Multi-Tower (42,000 m² in the city centre, 17,000 m² of which are pre-let), the Gare Maritime building (45,000 m², 50% of which are pre-let in the Tour & Taxis district), the Copernicus (13,000 m² in the Leopold district), Mobius II² in the North area) and the Quatuor (62,000 m² in the North area) where Beobank has already pre-let 22,000 m² and Silversquare 7,000 m².

Other developments will join them in the coming years; the Networks NOR building (13,000 m² in the North area), Bel 9 (7,000 m² in the Leopold district), and the TVR building (23,000 m² in the North area).

All of these developments are attracting interest from tenants and should be at least partially pre-let before hand- over. This confirms that tenants are seeking quality and accessibility.

Vacancies are continuing to fall, to 7.6% in the first half of the year, from 7.98% at the end of 2018. The vacancy rate is currently at one of its lowest levels on record. Despite stabilising between 2019 and 2020, the vacancy rate on the market could see a slight increase in the near future when new partially empty office space is handed over. The rate of vacancies in Grade A buildings (less than 5 years old) is 8% and are found mainly in the Manhattan Center, Phoenix and Allianz Tower buildings.

Prime rents rose at the end of 2018 and again during the second quarter of 2019, reaching a record high of €320/m²/year. The scarcity of available quality space and the confidence of some owners in being able to earn high rents contributed to this significant price rise. Prime rents were not affected by the economic slowdown (owing to COVID-19) and are holding at €320/m²/year. Weighted average rents, on the other hand, are at the highest level ever seen (around €190/m²/year across the entire Brussels market). This is partly explained by the lack of transactions and by major transactions in Grade A buildings (The One and Commerce 46, for example). Prime rent in the North area has remained stable this year at €220/m²/year. It is interesting that the gap between the CBD sub-markets (outside the Midi district) is narrowing.

As a consequence of the buildings recently coming onto the market or being handed over, and the scarce availability of Grade A space, prime rents could reach €325/m²/year by the end of 2021.

Investments in offices attained a volume of €2.4 billion in Brussels so far for the year 2020. This is the highest investment volume ever recorded. This includes the historic transaction on the Finance Tower (sold for around €1.3 billion). Nevertheless, 45 transactions, the largest number of transactions ever recorded in a single half-year, were recorded in the first half of 2020. Note that most of the transactions were initiated before the pandemic and were completed in the first half, again reflecting the strong momentum observed over the past two years. The effect of the epidemic on the investment market was felt mainly during the second quarter, in which there were 16 transactions totalling €340 million, including the sale of the Silver Tower for more than €200 million. Note, however, that most (80%) of the volume of investment in the Brussels office market comes from foreign investors. This means that Brussels is maintaining its strong position as a more stable investment choice for major foreign investors in relation to cities such as London, Paris and Frankfurt. We find not only that the appetite of foreign investors for the Brussels market remains high, but that there is still interest in all types of office products, both buildings with long-term leases and value-added products, although these are the preference of local investors. Investor profiles obviously differ, but there is still clear interest everywhere.

Investments in office buildings in Brussels and the region together account for almost 70% of total investment volumes in 2020 in Belgium. In second place came retirement homes, with investments of more than 300 million euros, followed by the industrial segment (8%) and then retail (7%).

Prime yields continue to be compressed as a result of the European Central Bank's policy of low interest rates and of competition among investors for the best products. At present, prime yields for buildings with 6/9-year leases are around 4.00% as a result of strong demand and activity before the COVID-19 pandemic. Long-term prime yield has been slightly compressed at 3.50%. There are still many investment transactions in the pipeline, but activity could slow as banks are more cautious about lending, which could entail a higher borrowing cost and lower LTV, resulting in a slight increase in yields.

During the first half of 2020, there were 117,000 m² of take-up (88 transactions), slightly below the average of

120,000 m² over 3 years. It may be too early to be certain, but so far the health crisis has had a limited effect on rental activity on the Luxembourg office market.

The most significant transactions of the year include:

16,700 m² by the Ministry of Finance in the Ikaros building (Airport district);
10,500 m² taken up by Intesa Sanpaolo (new HQ) in the Cloche d'Or;
9,600 m² taken up by Baloise in the Wooden building in Leudelange;
8,000 m² purchased for own occupation by Schroders & Associés in the Cloche d'Or;
8,000 m² purchased for own occupation by Arendt Services (new HQ) in Hamm.

The private sector accounted for about 85% of take-up, stimulated by the banking and financial sector (31%) and business services (20%).

In 2020, some 207,000 m² have so far been handed over in Luxembourg, notably thanks to the hand-overs of the KAD - Phase II project (160,000 m²) in the Kirchberg, the Luxite park in Leudelange (12,000 m²) and the Altitude - La Paz building (8,000 m²) also in Leudelange.

For the rest of 2020 and 2021, more than 202,000 m² of space is under construction in Luxembourg. Over 128,000 m² of these projects are already pre-let. There is a relatively limited number of speculative projects since they account for only 74,000 m² in a particularly dynamic market.

Note however that almost 300,000 m² are on the drawing board (with hand-over expected by 2024), and could fill up the speculative pipeline in the coming months, owing in particular to the healthy market in Luxembourg.

The Luxembourg market has one of the lowest vacancy rates in Europe, at around 3,2% at the end of the first half of 2020. The vacancy rate has been in constant decline since 2010, when it was close to 8%.

Today, there are significant differences between districts, since the CBD, the Kirchberg, Esch-Belval and Hamm have a vacancy rate below 2% while in the decentralised districts it is around 7.5%.

Despite the pandemic and the arrival of new partially empty office buildings, the vacancy rate in the whole of Luxembourg should stay very low over the coming months.

With the combined effect of a low vacancy rate and rising take-up, prime rents are logically under pressure. Occupants are seeking the best locations and buildings. These factors have driven up prime rents to €51/m²/month (over €600/m²/year) in the CBD, the highest level ever seen in Luxembourg. And future rises cannot be ruled out. The Kirchberg has also seen an increase in prime rents; from €37 to €38/m²/month. Prime rents held stable at €31/m²/month in the Cloche d'Or, €28.5/m²/month in the Decentralised area and €25.5/m²/ month in the periphery.

The office investment market was worth €350 million in the first half of 2020, more or less in line with the 5-year average. Most transactions in 2020 were already planned before the health crisis. Although the effects of the COVID- 19 pandemic on the office market are not yet fully measurable, they appear to be relatively moderate, and there is still a clear demand for investment.

All sectors combined, the Luxembourg investment market attracted more than €455 million. The office sector dominates the investment market and accounts for nearly 77% of investment volume.

Prime rates held steady at 3.75% (in the CBD) after compression in most sub-markets in the first half (which reflected strong demand and activity before lockdown), but could further increase as a result of adverse financing conditions.

	30.06.2020	31.12.2019
Number of shares issued	28 445 971	28 445 971
Number of shares not held by the group	27 052 443	27 052 443
Average number of shares not held by the group during the period = calculation basis	27 052 443	25 676 219

	(in € per share)	(in € million)	Number of shares not
			held by the group
Net asset value as at 31 December 2019 (group share)	59.29	1 603.9	27 052 443

Final dividend of the 2019 fiscal year (distributed in May 2020)		-23.3

Net result (group share) as at 30 June 2020		24.7

Other elements of comprehensive income -		-.3
actuarial gains and losses on pension obligations


Valuation of the put option held by minority shareholders, net of		- 0.4
profit attributable to non-controlling interests

Net asset value as at 30 June 2020 (group share)	59.32	1 604.7	27 052 443


	30.06.2020	31.12.2019
EPRA NAV (in € per share) (groupshare)	61.42	60.80
EPRA NNNAV (in € per share) (groupshare)	58.33	58.54

The calculation methods of the EPRA NAV and NNNAV are detailed on page 80 of this Report.

(in € million)	30.06.2020	31.12.2019
Investment and held for sale properties	2 909.5	2 814.8
Other assets	103.0	97.4

Total assets	3 012.5	2 912.3

Shareholders' equity	1 604.7	1 603.9
Financial debts	1 203.6	1 134.7
non current	908.3	637.6

current(a)	295.3	497.2
Other debts	204.2	173.6

Total equity & liabilities	3 012.5	2 912.3


LTV	40.2%	39.0%

According to IAS 1, the commercial paper needs to be recorded as a current liability. It is important to note that the Company has confirmed bank lines in excess of one year as a back-up for the commercial paper.

Compared with the first half-year of 2019, the scope changed mainly following the granting of a leasehold on the Pavilion building in April 2019, the private placement and the optional stock dividend of December 2019, and the resulting increase of 1,473,229 in the number of shares outstanding. The average number of shares not held by the group amounts to 27,052,443 as at 30 June 2020.

(in € thousand)	30.06.2020	30.06.2019

Net rental result	69 384	69 482

Net rental result excluding spreading	69 205	68 541

Spreading of gratuities/concessions	179	941

Net property charges(a)	-7 523	-6 689
Property operating result	61 861	62 793

Corporate overheads	-8 473	-7 078

Other operating income & charges	- 179	- 917

Operating result before result on portfolio	53 209	54 798

Operating margin(a)	76.7%	78.9%
Gains or losses on disposals of investment properties	-	10 317

Net property result(a)	53 209	65 116
Financial result (excl. changes in fair value of financial assets and liabilities)(a)	-10 177	-12 907
Taxes	- 839	- 762

Net result before changes in fair value of investment properties and financial assets	42 192	51 446
and liabilities(a)


Changes in fair value of investment properties	73	77 430

Changes in fair value of financial assets and liabilities	-16 673	-28 322

Changes in fair value of investment properties & financial assets and liabilities	-16 601	49 108


Net result	25 591	100 555


Net result (in € per share)	0.95	3.93

EPRA earnings (in € per share)	1.57	1.71

(a) This is an Alternative Performance Measure. For more information, please consult Appendix 3 to this Report.

The total net rental result is stable (-0.1%) in relation to the same period last year. This is explained by the combined effect of the receipt of compensation and rent increases, offset by the absence of compensation received in 2019 and the loss of income linked to the granting in 2019 of a 99-year leasehold on the Pavilion building. The like-for-like net rental result is down -2.8% compared with last year, following renegotiations and the expiry of leases in various buildings, notably in the CBD. Note that two floors in the Central Gate building were vacated during the first half. Renovation work on these floors is under way and 80% of this floor space is already pre-let.

Net real-estate charges are up by €0.8 million. This rise is explained by an increase in agency commissions related to leases agreed during the half-year, and by an increase in rental charges and taxes.

EPRA like-for-like net rental growth was -1.2% as at 30 June 2020.

Overheads were €8.5 million as against €7.1 million for the same period last year. This change is due mainly to higher ICT costs and the expansion of the teams.

The operating result before result on portfolio was €53.2 million compared with €54.8 million the same period last year.

The financial result (excluding changes in the fair value of the financial assets and liabilities) was -€10.2 million as against -€12.9 million for the same period last year. The decrease in financial charges is related mainly to a capital loss on the restructuring of an assignment of credit linked to the sale of the Pavilion building recorded in 2019. The average (annualised) financing cost remains stable at 2.0% after it was secured over time.

The drop in the net result, to €25.6 million at 30 June 2020 from €100.6 million at 30 June 2019, is explained mainly by the stability of the fair value of the investment properties (€0.07 million) compared to a positive variation of €77.4 million in the first half of last year.

EPRA earnings were €42.5 million as against €43.8 million for the same period last year. EPRA earnings per share were €1.57 in relation to €1.71 as at 30 June 2019, mainly due to the dilutive effect of the private placement of 1,266,300 shares completed in December 2019. The net result per share amounted to €0.95, compared with €3.93 per share for the same period last year.

The turnover of the coworking business was €4.0 million over the half-year, compared to €3.4 million for the same period last year. Due to the impact of COVID-19, the growth in turnover at the end of June is below expectations. The contribution of the coworking activity to the consolidated EPRA earnings is negative at € 0.04 per share. This is explained by the fact that the activity is in a development phase in an economic context penalized by the COVID-19 crisis.

Consolidated net rental result was €72.9 million, stable compared to the same period last year. The net result (group share) was €24.7 million. The consolidated EPRA earnings per share were €1.53 per share as against €1.72 at

30 June 2019.

Confirmed credit facilities for a total amount of €1,457 million (72% of which were bank loans), €1,152 million of which were in use. The volume of unused lines is determined on the basis of the Company's liquidity criteria, taking account of the maturities of the financing agreements and commitments planned for the coming years;
Use of the short-term commercial paper programme up to €280 million;
94% of total borrowings at fixed rates (including IRS);
An average (annualised) financing cost (including hedging margin and costs) of 2.0% for the first 6 months of the year, stable compared to 2.0% as at 31 December 2019;
A weighted average duration of the debt of 4.8 years (as against 4.4 years as at 31 December 2019);
A debt ratio of 43.9% (compared with 42.7% as at 31 December 2019);
An LTV ratio of 40.2% (compared with 39.0% as at 31 December 2019);
A hedge ratio11 of 95.7% (compared with 102.3% as at 31 December 2019).
Renewal of financing for €75 million for a 6 year period;
Extension of bank financing of €100 million for a year, with annual extension options for up to 3 additional years;
Extension of bank financing of €35 million for a 6 year period, starting in June 2021;
New bank financing of €100 million for a 4 year period;
Increase by €30 million of a bank line for managing short-term needs, arranged for an indefinite period but which can be terminated with 23 months' notice.

In this uncertain context due to the COVID-19 pandemic, the Company continued working to strengthen its financial structure. All other things being equal, the Company has covered its financing needs until the end of the year 2021.

The COVID-19 pandemic has caused tensions on the financial markets. Spreads on the debt markets have increased significantly. The impact of this development on Befimmo is limited by means of the duration of the financing in place.

Moreover, the short-term commercial paper market is also experiencing tensions resulting in lower volumes of investment and higher margins. All of Befimmo's short-term commercial paper is covered by long-term bank back-up lines.

11 Hedge ratio = (nominal fixed-rate borrowings + notional rate of IRS and CAPs)/total borrowings. This ratio takes into account CAP-type optional hedging instruments that are close to maturity (July 2020) and that have become off-market as a result of the fall in interest rates (i.e. two CAP positions for a total notional amount of €55 million at hedging interest rates of 0.50% and 0.85%). Excluding these instruments, the hedge ratio would be 97.2% as at 31 December 2019.

To reduce its financing costs, Befimmo has a commercial paper programme of a maximum amount of €600 million, €280 million of which was in use as at 30 Jun 2019 for short-term issues and €101.3 million for long-term issues. For short-term issues, this programme has back-up facilities consisting of the various credit lines arranged. The documentation for this programme also covers the European private placements of debt.

Befimmo holds a portfolio of instruments to hedge (i) the interest-rate risk, consisting of IRS, CAPs and COLLARs12.

Befimmo has extended the maximum duration of its hedging policy, with maturities of up to 20 years.

Operations carried out:

arrangement of two new payer IRSs with a total amount of €50 million and a total maturity of 18 years from
January 2022;

The package of instruments in place gives the Company a hedging ratio of 95.7% as at 30 June 2019. The hedge ratio remains above 70% until the third quarter of 2022 and above 50% until the fourth quarter of 2025 inclusive.

12 Subscription to a COLLAR places a ceiling on the rise in interest rates (CAP), but also involves an undertaking to pay a minimum rate (FLOOR).

(a) Average fixed rate excluding credit margin,

Befimmo has the intention to propose the distribution of the dividend in two phases (interim dividend in December and final dividend in May) and, as the case may be, in optional form.

(in €/share)	2015	2016	2017	2018	2019

Dividend in € per share	3.45	3.45	3.45	3.45	3.45

EPRA earnings in € per share	3.89	3.68	3.74	3.68	3.29

Dividend/EPRA earnings	89%	94%	92%	94%	105%

Net result in € per share	4.41	3.82	5.32	3.24	6.95

Dividend/net result	78%	90%	65%	107%	50%

The Statutory Auditor verified that the EPRA ratios were calculated in accordance with the definitions and that the financial data used for the calculation of these ratios correspond with the accountancy data, as included in the consolidated financial statements.

EPRA	EPRA definition (a)	EPRA use(a)	30.06.2020	30.06.2019
indicators

		A key measure of a company's
EPRA		underlying operating results and
Earnings from operational activities.	an indication of the extent to
earnings
	which current dividend payments

		are supported by earnings.

in € thousand	42 477	43 776
in € per share	1.57	1.71

	Administrative & operating costs	A key measure to enable	Incl. vacancy	23.3%	19.8%
EPRA Cost	(including & excluding costs of direct	meaningful measurement of the	costs

Ratio	vacancy) divided by gross rental	changes in a company's	Excl. vacancy	20.5%	17.7%
	income.	operating costs.	costs

	Like-for-like net rental growth	Provide information (in %) on the
	compares the growth of the net	growth in net rental income
EPRA Like-	rental income of the portfolio that	(property charges deducted) at
for-Like Net	has been consistently in operation,	constant perimeter of the	in %	-1.2%	5.8%
Rental Growth	and not under development, during	portfolio (excluding the impact
	the two full preceding periods that	of acquisitions and disposals)(b).
	are described.
EPRA	EPRA definition (a)	EPRA use(a)		30.06.2020	31.12.2019
indicators

	Annualised rental income(d) based on
	the cash rents passing at the balance
(i) EPRA Net	sheet date, less non-recoverable
Initial Yield	property operating expenses, divided
(NIY)	by the market value(c) of the property,
	increased with (estimated)
	purchasers' costs.

	This measure incorporates an
(ii) EPRA	adjustment to the EPRA NIY in
respect of the expiration of rent-free
Topped-up
periods (or other unexpired lease
NIY
incentives such as discounted rent

	periods and step rents).

A comparable measure for portfolio valuations.

This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y.

in %

4.7%

4.9%

in %

5.0%

5.1%

EPRA Vacancy	Estimated Market Rental Value (ERV)
of vacant space divided by ERV of the
Rate
whole portfolio.

A "pure" (%) measure of
investment property space that is	in %	3.6%	4.1%
vacant, based on ERV.

Source: EPRA Best Practices (www.epra.com).
Because EPRA doesn't publish the use of the EPRA Like-for-Like, Befimmo wrote it.
According to the BE-REIT legislation, the buildings of the portfolio of Befimmo are booked at their fair value.
For Befimmo, the annualised rental income is equivalent to the gross annual current rent at the closing date plus future rent on leases signed, as reviewed by the real-estate experts.

EPRA	EPRA definition (a)	EPRA use(a)	30.06.2020	30.06.2019
indicators

		A key measure of a company's
EPRA		underlying operating results and
Earnings from operational activities.	an indication of the extent to
earnings
	which current dividend payments

		are supported by earnings.

in € thousand	41 498	44 107
in € per share	1.53	1.72

EPRA	EPRA definition (a)	EPRA use(a)			30.06.2020	31.12.2019
indicators


	Net Asset Value adjusted to include	Makes adjustments to IFRS NAV	in €	thousand	1 661 601	1 644 662
	to provide stakeholders with the
	properties and other investment
	most relevant information on the
	interests at fair value(b) and to exclude
EPRA NAV	fair value of the assets and
certain items not expected to	in €	per share	61.42	60.80
	liabilities within a true real estate
	crystallise in a long-term investment
	investment company with a
	property business model.
	long-term investment strategy.


		Makes adjustments to EPRA NAV	in €	thousand	1 578 062	1 583 604
	EPRA NAV adjusted to include the fair	to provide stakeholders with the
	most relevant information on the
EPRA NNNAV values of (i) financial instruments, (ii)
current fair value of all the assets	in €	per share	58.33	58.54
	debt and (iii) deferred taxes.
	and liabilities within a real-estate

company.

Source: EPRA Best Practices (www.epra.com).
According to the BE-REIT legislation, the buildings of the portfolio of Befimmo are booked at their fair value.

	30.06.2020	31.12.2019
	(6 months)	(12 months)
Number of shares issued	28 445 971	28 445 971

Number of shares not held by the group	27 052 443	27 052 443

Average number of shares not held by the group during the period	27 052 443	25 676 219

Highest share price (in €)	57.00	59.40

Lowest share price (in €)	35.40	47.35

Closing share price (in €)	39.85	54.10

Number of shares traded(a)	13 344 391	17 395 988
Average daily turnover(a)	105 908	67 953
Free float velocity(a)	67%	87%
Distribution ratio (in relation to the EPRA earnings)	80%	106% (realised)

Gross dividend(b) (in € per share)	2.24 (projected)	3.45 (realised)
Gross yield(c)	5.4% (projected)	6.4%
Return on share price(d)	-15.15%	18.7%

Source: Kempen & Co. Based on trading on all platforms.
Subject to a withholding tax of 30%.
Gross dividend divided by the closing share price.
Calculated over a 12-month period ending at the closing of the fiscal year, taking into account the gross dividend reinvestment, if any, and the optional dividend participation.

The Befimmo share closed at €39.85 on 30 June 2020, as against €54.10 at 31 December 2019. Befimmo's market capitalisation stood at €1.1 billion at 30 June 2020. During the first half of the fiscal year, the average daily trading volume was around 105,908 shares.

The current crisis is characterised in particular by a significant fall in share prices. The Befimmo share price is at a historically low level. At 30 June 2020, the Befimmo share closed at €39.85, a discount of 33% in relation to the net asset value.

This share price movement is in line with the average evolution of listed European office REIT's. As at 30 June 2020, the return on the Befimmo share price (-24.7%) since the year opened is in line with the movement of the EPRA office index (-24.3%).

20%
10%
0%
-10%
-20%
-30%
-40%
06/2010	06/2011	06/2012	06/2013	06/2014	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020

13 Source : EPRA.

The renewal of the following mandates has been proposed and approved during the Ordinary General Meeting of

28 April 2020:

Renewal of the mandate of Ms Anne-Marie Baeyaert, as an independent Director, for a period of 3 years, ending at the Ordinary General Meeting of 2023;
Renewal of the mandate of Mr Wim Aurousseau, as a Director, for a period of 2 years, ending at the Ordinary General Meeting of 2022;
Renewal of the mandate of Mr Kurt De Schepper, as a Director, for a period of 4 years, ending at the Ordinary General Meeting of 2024.

La composition of the Board is as follows:

Position on the Board	Directorship expiry date

Alain Devos	Ordinary General Meeting 2021
Chairman, non-executive Director


Benoît De Blieck	Ordinary General Meeting 2022
Managing Director


Anne-Marie Baeyaert	Ordinary General Meeting 2023
non-executive Director, independent


Sophie Goblet	Ordinary General Meeting 2021
non-executive Director , independent


Sophie Malarme-Lecloux	Ordinary General Meeting 2021
non-executive Director , independent


Wim Aurousseau	Ordinary General Meeting 2022
non-executive Director, linked to a shareholder


Kurt De Schepper	Ordinary General Meeting 2024
non-executive Director, linked to a shareholder


Etienne Dewulf	Ordinary General Meeting 2022
non-executive Director , independent


Benoît Godts	Ordinary General Meeting 2021
non-executive Director, linked to a shareholder


Vincent Querton	Ordinary General Meeting 2021
non-executive Director , independent

Interim statement as at 30 September 2020	Thursday 28 October 2020(a)
Payment of the interim(b) dividend of the 2020 fiscal year on presentation of coupon No
40
- Ex-date	Wednesday 16 December 2020
- Record date	Thursday 17 December 2020
- Payment date	Friday 18 December 2020
Publication of the annual results as at 31 December 2020	Thursday 18 February 2021(a)
Online publication of the Annual Financial Report 2020	Friday 26 March 2021

Ordinary General Meeting of the fiscal year closing as at 31 December 2020	Tuesday 27 April 2021
Payment of the final(c) dividend of the 2020 fiscal year on presentation of coupon No 41
- Ex-date	Wednesday 5 May 2021

- Record date	Thursday 6 May 2021
- Payment date	Friday 7 May 2021

1. Publication after closing of the stock exchange.
Subject to a decision of the Board of Directors.
Subject to a decision of Ordinary General Meeting.

The Company introduced a statutory declaration threshold of 3% for the application of the legal rules relating to notification of large holdings in issuers whose shares are admitted for trading on a regulated market.

According to the transparency notifications received or based on the information received from the shareholder, the share ownership of Befimmo SA is structured as follows:

	Number of	Based on the transparency	(in %)
	shares (declared)	declarations or based on the
	the day of the	information received from the
	statement	shareholder

Declarants

AXA Belgium SA	2 741 438	30.04.2019	9.6%

Ageas and affiliated companies	2 641 047	30.04.2019	9.3%

Norges Bank	855 804	10.12.2019	3.0%

BlackRock Inc.	848 297	20.11.2019	3.0%


Own shares

Befimmo SA	1 393 528	04.12.2019	4.9%


Other shareholders under the statutory threshold	19 965 857	20.12.2019	70.2%

Total	28 445 971		100%

.CONDENSED FINANCIAL STATEMENTS

		Notes		30.06.20		30.06.19
I.	(+) Rental income			73 166		72 871
III.	(+/-) Charges linked to letting			- 251		- 28
NET RENTAL RESULT			72 916		72 843
IV.	(+) Recovery of property charges			10 727		4 457
V.	(+) Recovery of rental charges and taxes normally paid by tenants on let			22 547		21 999
	properties

VII.	(-) Rental charges and taxes normally paid by tenants on let			-26 983		-24 804
	properties

VIII.	(+/-) Other revenue and charges for letting			159		332
PROPERTY RESULT			79 366		74 826
IX.	(-) Technical costs			-10 644		-4 348
X.	(-) Commercial costs			- 460		- 145
XI.	(-) Charges and taxes on unlet properties			-1 978		-1 434
XII.	(-) Property management costs			-1 558		-1 383
XIII.	(-) Other property charges			-3 459		-3 447
	(+/-) Property charges			-18 099		-10 758
PROPERTY OPERATING RESULT			61 267		64 068
XIV.	(-) Corporate overheads			-9 732		-7 943
XV.	(+/-) Other operating income and charges			274		- 917
OPERATING RESULT BEFORE RESULT ON PORTFOLIO			51 809		55 208
XVI.	(+/-) Gains and losses on disposals of investment properties			-		10 317
XVIII.	(+/-) Changes in fair value of investment properties			897		78 305
OPERATING RESULT			52 706		143 830
XX.	(+) Financial income	5		414		302
XXI.	(-) Net interest charges	5		-10 049		-9 749
XXII.	(-) Other financial charges	5		-1 222		-3 595
XXIII.	(+/-) Changes in fair value of financial assets and liabilities	5		-16 673		-28 322
	(+/-) Financial result			-27 531		-41 364
PRE-TAX RESULT			25 175		102 467
XXV.	(-) Corporation tax			- 843		- 815
	(+/-) Taxes			- 843		- 815
NET RESULT			24 333		101 652
TOTAL COMPREHENSIVE INCOME (group share)			24 733		101 229
NON-CONTROLLING INTERESTS			- 401		423

BASIC NET RESULT AND DILUTED (in € per share)			0.91		3.96

Other comprehensive income - actuarial gains and losses			- 323		-1 671
- pension liabilities

TOTAL COMPREHENSIVE INCOME			24 010		99 981
TOTAL COMPREHENSIVE INCOME (group share)			24 410		99 557
NON-CONTROLLING INTERESTS			- 401		423

ASSETS	Notes	30.06.2020	31.12.2019

I.	Non-current assets		2 949 134	2 861 689
A.	Goodwill	6	23 629	23 629
B.	Intangible assets		2 247	1 729
C.	Investment properties	7	2 898 234	2 814 822
	Fair value of portfolio (Silversquare excluded)		2 853 779	2 790 778
	Right of use - Fair value of Silversquare leases		44 456	24 044
D.	Other property, plant and equipment		13 018	10 948
E.	Non-current financial assets	8	8 633	7 296
F.	Finance lease receivables		3 374	3 265
II.	Current assets		63 365	50 563
A.	Assets held for sale	7	11 230	-
B.	Current financial assets	8	30	12 763
C.	Finance lease receivables		144	142
D.	Trade receivables		49 606	31 535
E.	Tax receivables and other current assets		16	1 060
F.	Cash and cash equivalents		575	2 878
G.	Deferred charges and accrued income		1 763	2 184
TOTAL ASSETS		3 012 499	2 912 251

SHAREHOLDERS' EQUITY AND LIABILITIES	Notes	30.06.2020	31.12.2019

TOTAL SHAREHOLDERS' EQUITY		1 604 653	1 603 872
I.	Equity attributable to shareholders of the parent company		1 604 653	1 603 872
A.	Capital		398 356	398 320
B.	Share premium account		861 905	861 905
C.	Reserves		319 658	231 434
D.	Net result for the fiscal year		24 733	112 213
II.	Non controlling interests		-	-
LIABILITIES		1 407 846	1 308 379
I.	Non-current liabilities		984 784	696 157
A.	Provisions		1 855	1 471
B.	Non-current financial debts	8	908 272	637 567
	a. Credit institution		452 329	201 446
	c. Other		455 943	436 121
C.	Other non-current financial liabilities		63 707	46 455
D.	Trade debts and other non-current debts		9 974	9 974
F.	Deferred tax - liabilities		976	691
II.	Current liabilities		423 062	612 222
A.	Provisions		2 326	3 155
B.	Current financial debts	8	295 329	497 167
	a. Credit institution		11 499	61 448
	c. Other		283 830	435 719
D.	Trade debts and other current debts		101 774	85 596
E.	Other current liabilities		2 470	3 872
F.	Accrued charges and deferred income		21 163	22 432
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		3 012 499	2 912 251

	30.06.20	30.06.19

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR	2 878	591

Operating activities (+/-)
Net result for the period (6 months)	24 333	101 652
Variations in operating lease commitments (IFRS 16)	-	781
Result on disposal of investment properties	-	-10 317
Financial result (excl. changes in fair value of financial assets and liabilites)	10 857	13 042
Interest paid (incl. Financial charges IFRS 16)	-12 691	-14 858

Taxes	843	815
Taxes paid	- 193	- 165

Items with no effect on cash flow to be extracted from earnings
Fair value adjustment for investment buildings (+/-)	- 897	-78 305
Fair value adjustment on non-current financial assets/liabilities booked to earnings (+/-)	16 673	28 322
Loss of (gain in) value on trade receivables (+/-)	133	- 236
Amortisation / Loss of (gain in) value on property, plant and equipment (+/-)	1 057	859
Adjustments of provisions (+/-)	- 870	- 380

CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL	39 244	41 209
REQUIREMENTS


Change in assets items	-16 948	-15 991
Change in liabilities items	21 957	-6 619
CHANGE IN WORKING CAPITAL REQUIREMENTS	5 009	-22 609

CASH FLOW FROM OPERATING ACTIVITIES	44 253	18 600

Investments (-) / Disposals (+)
Investment properties
Investments	-79 901	-23 357
Disposals	-	93 937
Other acquisitions (redevelopment projects, stake,…)	- 534	- 305
Other property, plant and equipment and intangible assets	-3 668	- 852
CASH FLOW FROM INVESTMENT ACTIVITIES	-84 103	69 424

Financing (+/-)
Increase (+) / Decrease (-) in financial debts	129 739	17 136
Reimbursement USPP May 2019 and May 2020	-67 494	-82 769
Reimbursement financial debt IFRS 16	- 934	- 662
Increase (+) / Decrease (-) in financial debts IFRS 16	- 240	325
Hedging instruments and other financial assets	- 294	656

Final dividend previous fiscal year	-23 265	-21 998
Cost capital increase	36	- 87
CASH FLOW FROM FINANCING ACTIVITIES	37 548	-87 400

NET CHANGE IN CASH AND CASH EQUIVALENTS	-2 302	624
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (6 MONTHS)	575	1 214

				Net
				result of
		Share		the	Equity:	Non	Total
		premium		fiscal	group	controlling	shareholders'
	Capital	account	Reserves	year	share	interests	equity
EQUITY AS AT 31.12.18	357 871	792 641	276 104	16 597	1 443 214	-	1 443 214
Appropriation of the result			16 597	-16 597	-		-
Dividend distributed			-21 998		-21 998		-21 998
Final dividend of the 2018 fiscal year Befimmo			-21 998		-21 998		-21 998
Capital increase - merger Beway SA	38 454	61 015	-99 627		- 159		- 159
Other elements of comprehensive income			-1 671		-1 671		-1 671

Valuation of the put option held by minority
shareholders, net of profit attributable to non-			-5 405		-5 405		-5 405
controlling interests
Total comprehensive income (6 months)				101 229	101 229		101 229

EQUITY AS AT 30.06.19	396 325	853 656	164 000	101 229	1 515 209	-	1 515 209
Interim dividend	2 915	8 249		-66 250	-55,087		-55 087
Befimmo 2019 interim dividend				-66 250	-66,250		-66 250

Capital increase	2 915	8 249			11,163		11 163

Private placement of own shares on 3 December 2019			68 982		68,982		68 982

Adjustment writing - Merger Beway SA	- 919	1			-919		- 919

Valuation of the put option held by minority
shareholders, net of profit attributable to non-			-1 634		-1,634		-1 634
controlling interests
Other elements of comprehensive income			86		86		86

Total comprehensive income (6 months)				77 234	77 234		77 234


EQUITY AS AT 31.12.19	398 320	861 905	231 434	112 213	1 603 872	-	1 603 872

Appropriation of the result			112 213	-112 213	0		-

Dividend distributed			-23 265		-23 265		-23 265

Final dividend of the 2019 fiscal year Befimmo			-23 265		-23 265		-23 265

Private placement of own shares on 3 December 2019	36				36		36

Other elements of comprehensive income			- 323		- 323		- 323

Valuation of the put option held by minority
shareholders, net of profit attributable to non-			- 401		- 401		- 401
controlling interests
Total comprehensive income (6 months)				24 733	24 733		24 733


EQUITY AS AT 30.06.20	398 356	861 905	319 658	24 733	1 604 653	-	1 604 653

Befimmo ("the Company", registered with banque carrefour des entrerprises under number 0455.835.167) is a Public Regulated Real-Estate Investment Trust under Belgian law (public BE-REIT). It is organised as a "Société Anonyme" (Limited-Liability Company). Its registered office is at Chaussée de Wavre 1945, 1160 Brussels (Belgium).

The Company and its subsidiaires close their fiscal year at 31 December. Befimmo has a 100% direct or indirect interest in its subsidiaries Axento SA (registered with the Luxembourg trade and companies register under number B 121993 in the Grand Duchy of Luxembourg), Befimmo Property Services SA (registered with banque carrefour des entreprises under number 0444.052.241), Fedimmo SA (registered with banque carrefour des entreprises under number 0886.003.839), Meirfree SA (registered with banque carrefour des entreprises under number 0889.229.788), Vitalfree SA (registered with the banque carrefour des entreprises under number 0899.063.306) and Zin in Noord SA (registered with the banque carrefour des entreprises under number 0742.736.225). Befimmo holds a 68.16% stake in Silversquare Belgium SA (registered with the Banque Carrefour des Entreprises under number 0806.423.356). Befimmo holds a stake of 12.5% in the capital of Co.Station Belgium SA (registered with the banque carrefour des entreprises under number 0599.786.434).

The Company is presenting consolidated financial statements as at 30 June 2020. The Board of Directors of Befimmo SA adopted and authorised the publication of the financial statements on 23 July 2020.

The Company's business consists of providing office buildings, meeting rooms and coworking spaces and associated services.

At 30 June 2020, the premises provided consisted of quality office buildings in Belgium, mainly in Brussels, the main Belgian cities and the Grand Duchy of Luxembourg, about 60% of which are let to public institutions and the remainder to multinationals and Belgian companies.

The Company is listed on Euronext Brussels.

The condensed consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted within the European Union. They should be read in conjunction with the consolidated financial statements closed at 31 December 2019 included in the 2019 Annual Financial Report.

The main accounting methods are identical to those used in the 2019 Annual Financial Report (pages 156 to 163), which is available on the Company's website (www.befimmo.be), except for the adjustment below concerning free rentals:

Section 2. 14 "Income" is completed by the following paragraph:

Rental reductions granted exceptionally during periods of economic crisis, such as the crisis related to the COVID-19 pandemic and the related lockdown, are accounted for as a reduction in income, in accordance with IFRS 9 ("impairment loss").

The significant accounting judgments and main sources of uncertainty regarding estimates are identical to those set out in the Annual Financial Report 2019 (page 163) which can be found on the Company's website (www.befimmo.be).

The description of Befimmo's consolidated portfolio is set out in the chapter "Property report".

Befimmo's sectors of activity are the real estate operator activity and the coworking activity.

					Asset manager

	Brussels CBD and	Brussels	Brussels periphery
	similar	decentralised		Wallonia


	30.06.20	30.06.19	30.06.20		30.06.19	30.06.20	30.06.19	30.06.20	30.06.19
(in thousand €)	(6	(6	(6		(6	(6	(6	(6	(6
	months)	months)	months)		months)	months)	months)	months)	months)

INCOME STATEMENT
A. Rental income	35 737	38 773	3 385		3 092	4 408	4 596	5 526	5 367
B. Property operating result	30 957	36 086	3 089		1 889	3 965	3 818	4 821	4 693
C. Change in fair value of investment	13 659	61 669	- 1 103		- 1 404	- 1 117	- 137	8 043	2 442
properties

D. Gains and losses on disposal of buildings	-	10 027	-		-	-	-	-	-

E. SEGMENT RESULT (= B+C+D)	44 616	107 782	1 986		485	2 847	3 682	12 864	7 135
Percentage by segment	71.8%	70.6%	3.2%		0.3%	4.6%	2.4%	20.7%	4.7%
F. Corporate overheads
G. Other operating income and charges
H. Financial result
I. Income tax
NET RESULT (= E+F+G+H+I)
Net result (group share)
Non controlling interests

	30.06.20	31.12.19	30.06.20		31.12.19	30.06.20	31.12.19	30.06.20	31.12.19

BALANCE SHEET
Assets
Goodwill	7 391	7 391	-		-	-	-	1 329	1 329
Investment properties and assets held for	1 794 211	1 716 835	82 946		83 180	120 585	121 093	272 938	256 193
sale

of which investments and acquisitions during	63 718	91 648	869		- 1 474	610	7 348	8 702	11 128
the year

Other assets	2 359	2 178	-		-	-	-	1 158	1 229
TOTAL ASSETS	1 803 961	1 726 404	82 946		83 180	120 585	121 093	275 426	258 751
Percentage by segment	59.9%	59.3%	2.8%		2.9%	4.0%	4.2%	9.1%	8.9%
TOTAL LIABILITIES
TOTAL SHAREHOLDERS' EQUITY

Equity attributable to shareholders of the parent company

Non controlling interests

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY

	Real-estate operator
						Coworking	Unallocated amounts
			Luxembourg	Total

Flanders		city

30.06.20	30.06.19		30.06.20		30.06.19	30.06.20	30.06.19	30.06.20	30.06.19	30.06.20	30.06.19
(6 months)	(6 months)		(6 months)		(6 months)	(6 months)	(6 months)	(6 months)	(6 months)	(6 months)	(6 months)


18 044	15 128		2 525		2 553	4 042	3 361	-502	-	73 166	72 871
16 811	14 048		2 219		2 258	- 588	1 275	-6	-	61 267	64 068

- 22 352	2 352		2 943		12 508	825	874	-	-	897	78 305

0	291		-		-	-	-	-	-	-	10 317

- 5 541	16 691		5 162		14 766	237	2 150	-6	-	62 164	152 690
-8.9%	10.9%		8.3%		9.7%	0.4%	1.4%	-0.0%	-	100.0%	100%
								- 9 732	- 7 943	- 9 732	- 7 943
								274	- 917	274	- 917
								- 27 531	- 41 364	- 27 531	- 41 364
								- 843	- 815	- 843	- 815
										24 333	101 652
										24 733	101 229
										- 401	423

30.06.20	31.12.19		30.06.20		31.12.19	30.06.20	31.12.19	30.06.20	31.12.19	30.06.20	31.12.19



5 308	5 308		-		-	9 600	9 600	-	-	23 629	23 629
452 816	474 911		141 512		138 566	44 456	24 044	-	-	2 909 465	2 814 822

257	3 087		3		- 37	-	-	-	-	74 158	111 699

-	-		-		-	-	-	75 888	70 393	79 406	73 801
458 124	480 219		141 512		138 566	54 056	33 645	75 888	70 393	3 012 499	2 912 251
15.2%	16.5%		4.7%		4.8%	1.8%	1.1%	2.5%	2.4%	100%	100%
								1 407 846	1 308 379	1 407 846	1 308 379
								1 604 653	1 603 872	1 604 653	1 603 872
								1 604 653	1 603 872	1 604 653	1 603 872

								-	-	-	-
								3 012 499	2 912 251	3 012 499	2 912 251

The financial result (excluding changes in fair value of financial assets and liabilities) was -€10.9 million in the first half of 2020 as against -€13.0 million in the first half of 2019.

"Financial income" includes mainly the compensation paid by investors on their commercial paper investments issued by Befimmo.

The decrease in the charge of €2.3 million for "nominal interest on loans" as well as the decrease in income earned from hedging instruments (heading "Proceeds of permitted hedging instruments") of an equivalent amount, is explained mainly by the maturity, in May 2019, of part of a US Private Placement (USPP), hedged against exchange and interest rate risks by a Cross Currency Swap (CCS). The sub-heading "Other interest charges" includes the interest charge on leases, recognised as per IFRS 16, amounting to -€0.7 million over the first six months of 2020 and to -€0.1 million over the first six months of 2019.

The decrease in "Other financial charges" of €2.4 million is due to the main component of the exceptional charge related to the termination of a fixed-rate sale of receivables on the Pavilion building sold in May 2019.

The change in fair value of the financial assets and liabilities is -€16.7 million as against -€28.3 million in the first six months of 2019.

(in € thousand)		30.06.20		30.06.19
	(6 months)		(6 months)


(+)	XX. Financial income		414		302
(+)	Interests and dividends received		304		244
(+)	Fees for finance leases and similar		109		57
(+/-)	XXI. Net interest charges		-10 049		-9 749
(-)	Nominal interest on loans		-5 744		-8 010
(-)	Reconstitution of the face value of financial debts		- 128		- 101
(-)	Other interest charges		- 734		- 148
(+)	Proceeds of authorised hedging instruments		2 697		4 969
	Authorised hedging instruments not qualifying for hedge accounting under		2 697		4 969
	IFRS

(-)	Charges of authorised hedging instruments		-6 139		-6 459
	Authorised hedging instruments not qualifying for hedge accounting under		-6 139		-6 459
	IFRS

(-)	XXII. Other financial charges		-1 222		-3 595
(-)	Bank charges and other commissions		-1 222		-1 151
(-)	Net losses realised on sale of financial assets		-		0
(-)	Net capital losses realised on sale of finance lease receivables and similar		-		-2 443
(+/-)	XXIII. Changes in fair value of financial assets and liabilities		-16 673		-28 322
(+/-)	Authorised hedging instruments		-29 394		-34 179
	Authorised hedging instruments not qualifying for hedge accounting under		-29 394		-34 179
	IFRS

(+/-)	Others		12 720		5 857
(+/-)	Financial result		-27 531		-41 364

Befimmo's acquisition of Fedimmo in 2006 generated goodwill from the positive difference between the acquisition cost (including transaction costs) and Befimmo's share of the fair value of the net asset acquired. The method of recording this goodwill is described in the Annual Financial Report 2019 (page 173).

At 30 June 2020, the goodwill was subject to an impairment test, in accordance with the method described in the Annual Financial Report 2019 (page 174). The result of this test shows that no impairment needs be recorded.

The consolidation of Silversquare since 1 January 2019 generated goodwill for Befimmo as a result of the difference between the acquisition cost and Befimmo's share in the fair value of the net assets acquired. The method of recording this goodwill is described in the 2019 Annual Financial Report (pages 174 and 199).

At 30 June 2020, Silversquare's goodwill was subject to an impairment test in accordance with the method described in the 2019 Annual Financial Report (page 174). The result of this test indicates that no impairment should be recorded.

(in € thousand)

Carrying value as at 31.12.2018	2 655 324
of which: - Investment properties	2 655 324
of which: - Assets held for sale		-
Acquisitions	17 289
Other investments	94 410
Disposals	- 88 627
Changes in fair value	110 195
IFRS 16 - Silversquare leases (right of use)	24 044
Recognition right of use as from 1 January 2019	17 265
New leases contracted since 1 January 2019	6 548
Changes in fair value		231
IFRS 16 - rights of use of lands	2 187
Recognition right of use as from 1 January 2019	2 500
Changes in fair value	-	313
Carrying value as at 31.12.2019	2 814 822
of which: - Investment properties	2 814 822
Fair value of the portfolio excluding Silversqure	2 790 778
Fair value of the Silversquare leases (right of use)	24 044
of which: - Assets held for sale		-
Acquisitions		84
Other investments	74 075
Changes in fair value		223
IFRS 16 - Silversquare leases (right of use)	20 411
New leases contracted since 1 January 2020	19 587
Changes in fair value		825
IFRS 16 - rights of use of lands	-	150
Changes in fair value	-	150
Carrying value as at 30.06.2020	2 909 465
of which: - Investment properties	2 898 234
Fair value of the portfolio excluding Silversqure	2 853 779
Fair value of the Silversquare leases (right of use)	44 456
of which: - Assets held for sale	11 230

At the end of 2019, Befimmo acquired the Loi 44 building, located in Quartier Léopold - CBD. During the year 2019, Fedimmo acquired a parcel of land as part of the Paradis Express project.

In the first half of 2020, Befimmo invested €74.1 million in its portfolio. The investments were mainly in the Quatuor project (€33.0 million), the ZIN project (€19.6 million), the Paradis Express project (€8.7 million) and the renovation of the Brederode Corner building (€5.0 million).

In 2019, €94.4 million were invested in building work. The main investments were in the Quatuor project

(€32.1 million), the ZIN project (€23.1 million), the renovation of the Brederode Corner building (€12.5 million), the Paradis Express project (€7.7 million), the Ikaros buildings (€8.9 million) and phase 2 of the construction work in the Eupen Courthouse (€3.1 million).

In 2019, Befimmo granted a 99-year leasehold on the Pavilion complex, located in the Brussels CBD, and sold the Eagle Building, located in Diegem in the Brussels periphery. In 2019, Fedimmo completed the sale of three buildings in Flanders: Ijzerkaai 26 in Kortrijk, Grote Markt 10 in Menen and Kasteelstraat 15 in Izegem.

IFRS 16 came into effect on 1 January 2019. The rights to use in leases as a tenant of office space are valued at fair value (see Significant accounting policies). The sub-heading "other rights to use" includes the right to use land.

The heading "Assets held for sale" includes six buildings in the Fedimmo portfolio located in Flanders.

On a like-for-like basis, and all other things being equal, the Company has covered its financing needs until the end of the year 2021. The chapter "Financial structure and hedging policy" on page 25 of this Report contains detailed information on the subject.

In order to limit the risks related to changes in interest and exchange rates, the Company buys hedging instruments. At 30 June 2020, the hedging ratio was 95.7%. The following table lists all the hedging instruments owned by the Company at 30 June 2020.

	Level	Class in	Notional				Reference interest
	in	amount	Interest rate	Period of hedge
	IFRS	rate
	IFRS	(millions)


CAP bought	2	Option	20	1.15%	Jan. 2016	Jan. 2022	Euribor 3 month
FLOOR(a) sold	2	Option	20	0.55%	Jan. 2016	Jan. 2022	Euribor 3 month

Payer's IRS	2	Forward	20	1.58%	Jan. 2018	July 2022	Euribor 3 month
Payer's IRS	2	Forward	25	1.41%	Dec. 2017	Sept. 2022	Euribor 3 month
Payer's IRS	2	Forward	25	1.57%	Dec. 2017	Sept. 2022	Euribor 3 month
Payer's IRS	2	Forward	15	1.40%	July 2014	Jan. 2024	Euribor 3 month
Payer's IRS	2	Forward	25	0.72%	Jan. 2016	Jan 2024	Euribor 3 month
Payer's IRS	2	Forward	15	1.08%	Sept. 2015	Sept. 2024	Euribor 3 month
Payer's IRS	2	Forward	20	0.84%	Oct. 2015	Oct. 2024	Euribor 3 month
Payer's IRS	2	Forward	20	0.81%	Oct. 2015	Oct. 2024	Euribor 3 month
Payer's IRS	2	Forward	25	0.17%	June 2018	Dec. 2024	Euribor 3 month
Payer's IRS	2	Forward	25	0.71%	April 2018	Jan. 2025	Euribor 3 month
Payer's IRS	2	Forward	25	0.80%	April 2018	Jan. 2025	Euribor 3 month
Payer's IRS	2	Forward	25	0.65%	April 2018	Jan. 2025	Euribor 3 month
Payer's IRS	2	Forward	30	0.66%	April 2018	Jan. 2025	Euribor 3 month
Payer's IRS	2	Forward	25	0.71%	Aug. 2018	Feb. 2025	Euribor 3 month
Payer's IRS	2	Forward	20	0.93%	Aug. 2018	Feb. 2025	Euribor 3 month
Payer's IRS	2	Forward	30	0.91%	Oct. 2015	Oct. 2025	Euribor 3 month
Payer's IRS	2	Forward	30	0.85%	Feb. 2016	Feb. 2026	Euribor 3 month
Payer's IRS	2	Forward	20	0.92%	Feb. 2025	Aug. 2026	Euribor 3 month
Payer's IRS	2	Forward	25	0.82%	Feb. 2017	Feb. 2027	Euribor 3 month
Payer's IRS	2	Forward	25	0.95%	April 2018	Oct. 2027	Euribor 3 month
Payer's IRS	2	Forward	15	0.88%	Nov. 2017	Nov. 2027	Euribor 3 month
Payer's IRS	2	Forward	25	0.77%	Oct. 2017	Jan. 2028	Euribor 3 month
Payer's IRS	2	Forward	25	0.82%	Oct. 2017	Jan. 2028	Euribor 3 month
Payer's IRS	2	Forward	25	1.10%	Jan. 2025	Jan. 2028	Euribor 3 month
Payer's IRS	2	Forward	30	1.14%	Jan. 2025	Jan. 2028	Euribor 3 month
Payer's IRS	2	Forward	30	0.75%	July 2019	Jan. 2028	Euribor 3 month
Payer's IRS	2	Forward	25	1.25%	Feb. 2025	Feb. 2028	Euribor 3 month
Payer's IRS	2	Forward	25	1.21%	Jan. 2025	April 2028	Euribor 3 month
Payer's IRS	2	Forward	25	1.21%	Dec. 2024	June 2028	Euribor 3 month
Payer's IRS	2	Forward	25	1.12%	Jan. 2025	July 2028	Euribor 3 month
Payer's IRS	2	Forward	50	0.87%	Dec. 2018	Dec. 2028	Euribor 3 month
Payer's IRS	2	Forward	50	0.65%	July 2019	July 2029	Euribor 3 month
Payer's IRS	2	Forward	20	0.37%	Jan. 2020	Jan. 2022	Euribor 3 month
Payer's IRS	2	Forward	20	0.54%	Jan. 2022	Jan. 2023	Euribor 3 month
Payer's IRS	2	Forward	20	0.74%	Jan. 2023	Jan. 2038	Euribor 3 month
Payer's IRS	2	Forward	30	0.37%	Jan. 2020	Jan. 2022	Euribor 3 month
Payer's IRS	2	Forward	30	0.54%	Jan. 2022	Jan. 2023	Euribor 3 month
Payer's IRS	2	Forward	30	0.94%	Jan. 2023	Jan. 2038	Euribor 3 month
Payer's IRS	2	Forward	25	0.70%	Sept. 2019	July 2039	Euribor 3 month
Payer's IRS	2	Forward	25	0.67%	Jan . 2022	Jan. 2040	Euribor 3 month
Payer's IRS	2	Forward	25	0.045%	Jan . 2022	Jan. 2040	Euribor 3 month

Payer's IRS	2	Forward	25	1.51%	July 2012	July 2021	Euribor 1 month
Receiver's IRS	2	Forward	25	1.51%	March 2017	July 2021	Euribor 1 month
Payer's IRS	2	Forward	30	2.99%	Jan. 2018	Jan. 2022	Euribor 3 month
Receiver's IRS	2	Forward	30	2.99%	Jan. 2018	Jan. 2022	Euribor 3 month
Payer's IRS	2	Forward	25	0.42%	Jan. 2016	July 2024	Euribor 3 month
Receiver's IRS	2	Forward	25	0.42%	Oct. 2017	July 2024	Euribor 3 month
Receiver's IRS	2	Forward	65	0.81%	March 2018	March 2026	Euribor 3 month

The sale of a FLOOR implies a commitment to pay a minimum interest rate. A FLOOR is sold only at the same time as a CAP is purchased, for the same notional amount and equivalent maturity. The combined purchase of a CAP and sale of a FLOOR is a COLLAR.

Befimmo does not practice hedge accounting for the financial hedging instruments it holds. These instruments are therefore regarded as trading instruments under IFRS, changes in their fair value are booked therefore directly and entirely to the income statement. Although the instruments in question are considered trading instruments under IFRS, they are intended solely for hedging the risk of rising interest and exchange rates, and not for speculative purposes.

The fair value of hedging instruments is defined using data that are indirectly observable, but which are not prices quoted on an active market. The IRS, CCS, CAP and COLLAR contracts therefore belong to level 2 of the fair-value hierarchy, as defined in standard IFRS 13 - Fair Value Measurement.

These contracts are measured at fair value at the balance sheet date and include the credit value adjustment (CVA) and the debit value adjustment (DVA) in accordance with IFRS 13. The CVAs and DVAs of the financial hedging instruments are calculated on the basis of listed bonds or, alternatively, credit default swaps of counterparty banks and listed Befimmo bonds.

Befimmo receives this information from an independent specialist company. The Company also verifies it using checks of consistency with the valuations received from counterparty financial institutions (fair value excluding CVAs and DVAs).

The fair values of the various classes of hedging instruments are set out below:

(in € thousand)		Balance sheet item as of 30.06.2020

Classification by IFRS	Level in	I.E.b. Assets at fair value	I.C. & II.C.Other current and
through the result	non current financial liabilities
	IFRS

Option	2	-	- 313
Forward	2	7 849	-63 394
CCS	2	-	-
		7 849	-63 707

(in € thousand)		Balance sheet item as of 31.12.2019

Classification by IFRS	Level in	I.E.b. Assets at fair value	I.C. & II.C.Other current and
through the result	non current financial liabilities

	IFRS
Option	2	-	- 359
Forward	2	7 274	-46 096
CCS	2	12 715	-
		19 989	-46 455

The Company does not offset the value of its financial instruments booked to the assets and liabilities in the balance sheet. The financial assets and financial liabilities shown in the financial situation are therefore gross amounts.

As mentioned under Significant Accounting Policies, as set out in the Annual Financial Report 2019 (pages 160 to 162), the book value of the assets and liabilities approximates to their fair value, except for:

the financing relating to the sales of receivables from future rents/future usufruct fees, structured at fixed rates, for a residual total at 30 June 2020 of €48.7 million;
various fixed-rate European private placements (EUPP) totalling €362.8 million.

The fixed rates and margins set for these long-term borrowings may no longer correspond to the current market rates and margins, giving rise to a difference between the carrying amount of the liabilities on the face of the balance sheet and their fair values. The table below compares, for information purposes, the carrying amount of the fixed-rate borrowings with their fair value at the end of the first half of 2020.

The fair value of the sales of receivables for future rents/future usufruct fees and for the European private debt placement is estimated by updating the future expected cash flows using the 0-coupon yield curve as at

30 June 2020, plus a margin to take account of the Company's credit risk (level 2).

The fair value of this financing is given in the table below as an indication.

(in € thousand)	Level	Fair value	Book value

EUPP	2	385 344	362 018
Assignment of receivables from future rents/ future usufruct fees	2	52 094	48 714

.AUDITOR'S REPORT

Introduction

We have reviewed the accompanying consolidated condensed statement of financial position of Befimmo SA (the "Company"), and its subsidiaries as at 30 June 2020 the related consolidated condensed statement of comprehensive income, the consolidated condensed cash flow statement, the consolidated condensed statement of changes in equity, for the six month period then ended and the notes to the consolidated condensed financial statements, collectively, the "Consolidated Condensed Financial Statements". These statements show a consolidated balance sheet total of

3.012.499 thousand and the consolidated condensed of comprehensive income shows a net result for the six month period then ended of € 24.333 thousand. The board of directors is responsible for the preparation and presentation of these Consolidated Condensed Financial Statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting as adopted by the European Union. Our responsibility is to express a conclusion on these Interim Condensed Consolidated Financial Statements based on our review.

Scope of Review

We conducted our review in accordance the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying Consolidated Condensed Financial Statements are not prepared, in all material aspects, in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union.

Brussels, 23 July 2020

EY Réviseurs d'Entreprises SRL Statutory auditor represented by

Christel Weymeersch* Partner

* Acting on behalf of a SRL

.STATEM ENT

Mr Benoît De Blieck, Managing Director, and Mr Laurent Carlier, Chief Financial Officer of the Company, declare for and on behalf of Befimmo SA, that to the best of their knowledge:

the intermediary financial statements, prepared in accordance with the applicable accounting standards, give an accurate picture of the assets, financial situation and the results of the Company and the businesses included in the consolidation;
the condensed management report contains an accurate account of the development of the business, results and situation of the Company and the businesses included in the consolidation, and a description of the main risks and uncertainties they face.

.RISK FACTORS

This chapter covers the risks identified as potentially affecting the Company, including a description of the measures it has taken to anticipate them, mitigate their potential impact and turn them into opportunities. Note that doing business involves taking risks and so it is not possible to eliminate the potential impact of all the risks identified, nor of any residual risk that therefore has to be borne by the Company and, indirectly, by its shareholders.

The global economic and financial climate and the current geopolitical context may accentuate certain risks related to Befimmo's business.

This list of risks is based on information known (including from dialogue with all stakeholders) at the time of writing this Report. The risks in the different categories are ranked in order of importance according to the 'gross' risk (without taking into account mitigation measures or Befimmo's positioning). The risk level mentioned (high, medium or low) takes into account Befimmo's positioning in relation to the risk and the mitigation measures. The list of risks in this chapter is therefore not exhaustive: other risks, which may be unknown, improbable, non-specific or unlikely to have an adverse effect on the Company, its business or its financial situation, may of course exist.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
RISK RELATED TO A CRISIS RESULTING FROM A PANDEMIC - Medium (Low in the short term)
The management of the Covid-19	Lower demand for office space.	Befimmo is aware that the crisis may
global pandemic has led, and could		accelerate the evolution of the world of
lead in future, to businesses being	The interruption or slow-down of	work. For years Befimmo has been
shut down, as well as lockdowns	work on construction sites for	following trends that have an impact on
imposed by the government that	redevelopment projects.	the development of the world of work.
are more or less mandatory.		With Silversquare (the coworking
The crisis may accelerate the	Financial difficulties of the most	business), it can offer greater flexibility
evolution of the world of work.	affected tenants, with an impact	(in terms of contract duration, use of
	on the company's income and	workspaces and the type of equipment
	cash flow.	required for current needs) and make a
		"hybrid"14 offering, which allows
	Less easy access to financing	corporate customers to combine several
	and/or increased credit margins	space solutions in a BeLux network.
	required by banks and financial
	markets, with a potential impact	The Company has a solid base of
	on liquidity.	tenants, with 59% of income (as a real-
		estate operator) provided by long leases
	Liquidity risk.	with Belgian and European public
		institutions. The remainder is spread
	Lower projected EPRA earnings,	among tenants from various sectors,
	along with a delay in the	including large companies, while a very
	contribution of the various	limited share comes from the retail
	development projects.	sector (1% of consolidated rental
		income). The top 5 corporate clients
	A more volatile share price.	account for 17% of revenues (real estate
		operator).
		The Silversquare coworking business
		accounted for about 6% of consolidated
		rental income as at 30 June 2020. 69% of
		revenues for the half-year are generated
		in "private offices" used by small and
		medium sized companies which have a

14 Befimmo will offer a variety of workspace solutions in a hybrid-office model, ranging from conventional offices to buildings devoted entirely to coworking, or a mix of both solutions. Users will enjoy flexibility in terms of time (duration of their contract), workspace (they can easily occupy more or less space depending on their needs) and meeting facilities. They will be able to move from one place to another, according to their preferences and working hours

higher resilience potential than "flex desks".

The weighted average duration of current leases (as a real-estate operator) until the next expiry was 7.2 years at

30 June 2020, and 7.9 years until final expiry.

The occupancy rate (as a real-estate operator) was 93.6% as at 30 June 2020.

81% of ongoing office development projects in the pipeline are already pre- let.

Financing needs are currently covered until the end of the year 2021. Loan-to- Value (LTV) was 40.2% as at

30 June 2020.

As a precaution, the Company has reduced the dividend forecast for fiscal year 2020 to no less than the statutory level.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
RISK RELATED TO THE NEW WAYS OF WORKING - Medium
Office space is being used in	The ratio of the number of	The Company is committed to this new
increasingly flexible and mobile	square metres used per	world of work:
ways. New technology is facilitating	employee is falling and may lead	- a redesigned world of work;
a transformation within businesses:	to a decline in buildings'	workspaces are organised according
from a static and "sequential"	occupancy rates.	to the type of activity and the profile
mode of operation to more		of the users.
dynamic environments.	Conventional office environments	- acquisition of a majority
	no longer meet expectations.	shareholding in the Silversquare
Businesses are looking for pleasant		coworking company.
and flexible working environments	The coworking business model is	- plans to develop (with Silversquare)
to attract talent. They are setting	still developing.	a Belux network of hybrid offices .
up for Smart Ways of Working and		- a mix of functions in the new
moving to Activity-Based Working.		projects to ensure that the
		environment is conducive to the
		development of a genuine
		community life.
		- projects that integrate into the city;
		the buildings become an ecosystem
		open to their urban environment,
		bringing together a mix of functions.

RISK ASSOCIATED WITH CHANGING INTEREST RATES
Financial charges, the Company's	Increase in financial charges and	Implement a policy of hedging the
main expense item, are largely	drop of EPRA earnings and net	interest-rate risk: finance part of
influenced by interest rates	result.	borrowings at fixed rates and arrange
prevailing on the financial markets.		IRS financial instruments or cap and floor

In the context of current interest rates, the practice of some banks to set a 0% floor on Euribor, used as reference in financing contracts, has an adverse impact on financial charges. This practice can also create distortion between the floating rates used in financing contracts and IRS type hedging contracts.

A change in interest rates could also have an impact, with a delayed effect, on valuations of the properties in the portfolio.

options on part of borrowings at floating rates.

Total borrowings as at 30 June 2020:

borrowings of €1,082.7 million (94.0% of total debt) are financed at fixed rates (fixed rates specified in agreements or rates fixed by IRS);
The remainder of the debt,
€69.1 million, is financed at floating rates, €20.0 million of which is hedged against rising interest rates by means of optional instruments (caps and collars15). The remaining 4.3% of the total borrowings is therefore unhedged.

Without any hedging, the impact of a rise in market rates of 0.25% would entail an increase in financial charges estimated at €1.5 million (annual amount calculated based on the debt structure as at 30 June 2020).

With the hedging arranged at

30 June 2020, the impact of a rise in market rates of 0.25% would entail a decrease in financial charges estimated at -€0.3 million (annual amount calculated based on the debt structure as at 30 June 2020.

The debt ratio is 43.9% as at

30 June 2019, the LTV ratio is 40.2%.

The Standard & Poor's rating agency confirmed on 1 July 2020 the rating of BBB/outlook stable for Befimmo's long- term borrowings and A-2 for its short- term borrowings.

RISK RELATED TO CHANGING CREDIT MARGINS - Medium

The Company's financing cost also	An increase in financial charges	Spread the maturities of financing over
depends on the credit margins	and hence an adverse effect on	time and diversify sources of financing.
charged by the banks and the	EPRA earnings and the net result.
financial markets. These financing		Optimise the use of financing by giving
margins change in line with risk		preference to financing with the lowest
appetite in financial markets and		margins (e.g., depending on market
regulations, particularly in the		conditions, a short-term commercial
banking sector (the "Basel IV"		paper programme associated with long-
requirements) and the insurance		term back-up lines or assignments of
sector (known as "CRD IV"). They		receivables from future rents).
also evolve according to the

15 Buying a collar (buying a cap and selling a floor) places a ceiling (cap) on the impact of a rise in interest rates, but also involves an undertaking to pay a minimum rate (floor).

perception of the Company's credit risk profile.

RISK OF INFLATION AND DEFLATION - Low

Risk of deflation on income, as	The impact of the adjustment of	95.7%16 of the leases in Befimmo's
Befimmo leases contain clauses	rents can be estimated at	consolidated portfolio are covered, in
indexing rents to changes in the	€1.4 million on an annual basis	line with general practice, against the
health index.	(not including protection) per	effect of any negative indexing.
	percentage point change in the	- 41.7% provide for a ceiling on the
Risk of the costs the Company has	health index.	basic rent.
to bear being indexed on a basis			- 54% contain a clause that sets the
that changes faster than the health			minimum at the level of the last rent
index.			paid.
			The remaining 4.3% of the leases do not
			provide for any minimum rent.
			Contractual agreements put in place in
			relations with contractors.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
RISKS RELATED TO RENTAL VACANCY - Medium
Overall, the office property market	Decline in spot occupancy rates	The Company has an investment
is currently characterised by higher	and a reduction in the operating	strategy focused on:
supply than demand, and changing	result of the portfolio.	- quality office buildings, with a good
types of demand.		location, good accessibility and a
	On an annual basis at	sufficient critical size, among other
The Company is exposed to the	30 June 2020, a 1% fluctuation in	factors.
risks of its tenants leaving, and of	the spot occupancy rate of the	- buildings that are well equipped and
renegotiating their leases:	Company's portfolio would have	flexible, in an appropriate rental
- Risk of loss of and/or reduced	an impact of some €2.1 million on	situation and with potential for value
income.	the property operating result,	creation.
- Risk of negative reversion of	-€0.08 on the net asset value per
rents.	share and +0.07% on the debt	The Company is committed to the new
- Risk of pressure on the renewal	ratio.	world of work:
conditions and to grant rental		- a redesigned world of work;
gratuities.	Direct costs related to rental	workspaces are organised according
- Risk of loss of fair value of	vacancies, namely charges and	to the type of activity and the profile
properties, etc.	taxes on unlet properties.	of the users.
		- expansion of the offering and
	They are estimated on an annual	potential targets with the acquisition
	basis at €2.8 million, equivalent to	of a majority shareholding in the
	around 2.1% of total rental	Silversquare coworking company.
	income.	- plans to develop (with Silversquare)
		a Belux hybrid office network.
	Higher expenses in connection	- extensive and personalised range of
	with the marketing of properties	services to make life easier for its
	available for lease.	tenants.
		- a mix of functions in the new
	Fall in the value of buildings.	projects to ensure that the

16 Based on the gross current rent as at 30 June 2020.

			environment is conducive to the
			development of a genuine
			community life.
			- projects that integrate into the city;
			the buildings become an ecosystem
			open to their urban environment,
			bringing together a mix of functions.
			The Company has a professional
			commercial team dedicated to finding
			new tenants and actively managing the
			relationship with its customers.
			Steady cash flow depends mainly on
			rental income being secured. The
			Company therefore strives to ensure that
			a large proportion of its portfolio is let
			on long-term leases and/or to multiple
			tenants, which helps to spread the rental
			risks.
			At 30 June 2020, the weighted average
			duration of Befimmo's current leases
			until the next break was 7.2 years.
			The spot occupancy rate of the
			properties available for lease at
			30 June 2020 was 93.6%, compared with
			94.4% at 31 December 2019.
			The major projects in the North area are
			an opportunity for the Company to
			address the lack of Grade A17 in Brussels.

RISK RELATED TO THE COMPANY'S REPUTATION - Medium
Reputational risk in relation to	Reputational damage to the	Corporate Governance Charter and Code
stakeholders (current and	Company could have adverse	of Ethics drafted by the Board of
prospective tenants, local residents,	repercussions, notably when	Directors.
public authorities, current and	negotiating lease agreements,
potential investors, financial and	seeking financing and/or the	Code of Ethics requiring ethical values to
other analysts, suppliers, etc.).	value of the share.	be observed in relations with customers,
			staff, partners and shareholders.
Reputation is influenced by
information disseminated by the		In addition to its reporting requirements
media and on social networks.		as a listed company and a BE-REIT,
			Befimmo communicates transparently
			and proactively in order to best meet the
			expectations of its stakeholders.
			The Company has a communication plan
			(internal and external) and a crisis
			communication plan. It commissions
			reputation analyses from specialist
			agencies.

17 A new building (new build or major renovation) meeting the latest environmental, technical and spatial layout standards (notably efficient floor space). Generally, a building that is new or less than 5 years old.

			The media are monitored daily and any
			necessary corrections or clarifications are
			issued.

RISKS RELATED TO (RE)DEVELOPMENT ACTIVITIES - Medium
Risk associated with the renovation	Construction and/or operating	Design innovative, sustainable and
or construction of buildings.	costs overrunning the budget.	quality projects (incorporating the latest
			technologies) to satisfy market needs.
In preparation for a new life cycle,	Absence of rental income on
the buildings in the portfolio must	completion of the works and	Ongoing analysis of market needs:
under-go a major renovation or be	costs related to the vacancy.	- a redesigned world of work;
rebuilt.		workspaces are organized according
		Pressure on marketing conditions	to the users' type of business and
In this context Befimmo is exposed	and for granting of rental	their profile.
to risks related to:	gratuities.	- wide and personalised range of
- the choice of service providers		services to make life easier for its
	(architects, contractors,	Negative impact on the	tenants.
	specialist	occupancy rate of the portfolio.	- a mix of functions in the new
-	lawyers).		projects to ensure that the
- choice of use format.		environment is conducive to the
-	obtaining permits (difficulties,		development of a genuine
	delays, changes in the law,		community life.
	etc.).		- projects that integrate into the city;
-	construction (costs, delays,		the buildings become an ecosystem
	compliance,		open to their urban environment,
-	etc.).		bringing together a mix of functions.

commercialisation

Proactive and repeated dialogue with the public authorities for permit applications.

		Choice of quality partners.
		Professional commercial team dedicated
		to finding new occupants.

RISKS RELATED TO MERGERS, DEMERGERS, ACQUISITIONS AND JOINT VENTURES - Medium
Risk that the value of certain assets	Realisation of the need to revalue	Take the usual precautions in operations
may have been over-estimated or	certain assets or record certain	of this type, mainly by carrying out full
that hidden liabilities have been	liabilities that could entail a	due-diligence exercises (real-estate,
transferred to the Company during	financial loss to the Company.	accounts, taxation, etc.) on properties
mergers, spin-offs or acquisitions,		contributed and on absorbed or merged
or joint ventures.		companies, that may involve obtaining
		guarantees.
		Take similar precautions in case of joint
		ventures.

RISKS OF SEGMENTAL CONCENTRATION - Medium
The portfolio is almost entirely	Sensitivity to the evolution of the	The Company has an investment
composed of office buildings (with	office property market.	strategy focused on:
the exception of a few shops on		- quality office buildings, with a good
the ground floor of some		location, good accessibility and a
buildings).		sufficient critical size, among other
		factors.
		- buildings that are well equipped and
		flexible, in an appropriate rental
		situation and with potential for value
		creation.

The Company is committed to the new world of work:

- a redesigned world of work; workspaces are organised according to the type of activity and the profile of the users.

- expansion of the offering and potential targets with the acquisition of a majority shareholding in the Silversquare coworking company.

- plans to develop (with Silversquare) a Belux hybrid office network.

- a mix of functions in the new projects to ensure that the environment is conducive to the development of a genuine community life.

- projects that integrate into the city; the buildings become an ecosystem open to their urban environment, bringing together a mix of functions.

RISKS ASSOCIATED WITH TENANTS - Low

Risks related to the insolvency of its	Loss of rental income, an increase	Prior review of the financial health of
tenants.	in property charges where rental	potential customers.
	charges cannot be recovered,
	and the emergence of	Private-sector tenants18 are required to
	unexpected rental vacancies.	provide a rental guarantee.
	Risk of pressure on the renewal	There is a procedure for regularly
	conditions and to grant rental	monitoring outstanding receivables.
	gratuities, etc.

RISKS OF GEOGRAPHICAL CONCENTRATION - Medium
The portfolio is not very diversified	Sensitivity to developments in the	Under its investment strategy, the
in terms of geography. It consists	Brussels office property market,	Company seeks to avoid excessive
of office buildings, mainly located	which is characterised in	concentration of the portfolio in a single
in Brussels and its economic	particular by a significant	area or asset.
hinterland (70% of the portfolio as	presence of European institutions
at 30 June 2020).	and related activities.	As a matter of interest, the AMCA
		building in Antwerp, the Paradis tower in
		Liège, the Gateway building at Brussels
		airport and WTC Tower 3 in Brussels
		each account for between 5 and 10% of
		the fair value of the portfolio as at
		30 June 2020.

RISKS RELATED TO THE COWORKING MARKET - Medium
Risks related to the entry into a	Profitability linked to the success	Taking a majority stake in a company
new and fast-developing market	of the underlying activity.	(Silversquare) with broad experience in
(control of the key factors of		coworking.
success, competition, etc.).
		The impact is relatively limited on
		Befimmo as it is developing this business
		gradually.

18 The public sector tenants (Belgian Federal State, Flemish Region and European institutions), which occupy a significant part of the Company's portfolio (58.9% at 30 June 2020), calculated on the basis of the gross current rent at 30 June 2020, generally do not provide rental guarantees but have a more limited risk profile.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
RISK RELATED TO THE FAIR VALUE OF THE PROPERTIES - Medium
Risk of a negative change in the fair	Impact on the Company's net	The Company has an investment
value of the portfolio.	result, equity, debt20 and LTV21	strategy focused on:
	ratios.	- quality office buildings, with a good
Risk of the real-estate experts		location, good accessibility and an
overvaluing or under-valuing	Impact on the Company's ability	adequate critical size, among other
properties in relation to their true	to distribute a dividend22 if the	factors.
market value. This risk is	cumulative negative changes in	- buildings that are well equipped and
accentuated in the market	fair value were to exceed the total	flexible, in an appropriate rental
segments in which the limited	value of distributable and non-	situation and with potential for value
number of transactions gives the	distributable reserves and the	creation.
experts few points of comparison,	distributable portion of the share
which still holds true to some	premiums.	The Company is committed to the new
extent for the decentralised areas		world of work:
and periphery of Brussels (7.46%19	On the basis of the data as at 30	- a redesigned world of work;
of the portfolio), and more	June 2020, a 1% decline in the	workspaces are organised according
generally in the Belgian provincial	value of the property assets	to the type of activity and the profile
towns.	would have an impact of around	of the users.
	-€28.6 million on the net result,	- expansion of the offering and
	entailing a change of around -€1.1	potential targets with the acquisition
	in the net asset value per share,	of a majority shareholding in the
	around +0.4% in the debt ratio	Silversquare coworking company.
	and around +0.4% in the LTV	- plans to develop (with Silversquare)
	ratio.	a Belux hybrid office network.
		- extensive and personalised range of
		services to make life easier for its
		tenants.
		- a mix of functions in the new
		projects to ensure that the
		environment is conducive to the
		development of a genuine
		community life.
		- projects that integrate into the city;
		the buildings become an ecosystem
		open to their urban environment,
		bringing together a mix of functions.
		Statutory rotation of independent
		experts. They are systematically informed
		of changes in the situation of the
		buildings, and regularly visit buildings.

RISKS RELATED TO INADEQUATE INSURANCE COVER - Low
Risk of occurrence of a major loss	Costs of refurbishing the affected	Buildings are covered by a number of
affecting the buildings, with	building.	insurance policies (risk of fire, storm
insufficient cover.		damage, water damage, etc.) covering
	Fall in the operating result of the	loss of rent for a limited period (in
	portfolio and in the fair value of	principle for the time needed for
	the building following the	reconstruction) and the cost of

Calculated on the basis of the fair value of investment properties at 30 June 2020.
The debt ratio is calculated in accordance with the Royal Decree of 13 July 2014.
Loan-to-value("LTV") = [(nominal financial debts - cash)/fair value of the portfolio].
Please refer to the chapter "Appropriation of earnings (statutory accounts)" on page 83 of the Annual Financial Report.

	termination of the lease through	reconstruction, for a total sum (new
	frustration, and therefore an	reconstruction value, excluding the value
	unexpected rental vacancy.	of the land) of €2.155,5 million as at
		31 December 2019.
		Buildings are covered by a policy
		insuring against acts of terrorism.

RISK OF DETERIORATION AND OBSOLESCENCE OF BUILDINGS - Medium
Risk of wear and tear and	Rental vacancies.	Property kept in a good state of repair
obsolescence, relating to		and maintained in line with good
increasingly stringent requirements	Investments required to bring the	practice in terms of energy, technical and
(legislative, societal or	building into compliance with	other performance criteria, by making an
environmental).	regulatory requirements and	inventory of preventive and corrective
	tenants' expectations.	maintenance work to be carried out, and
		establishing a works programme.
		Most of the buildings are covered by
		"total guarantee" maintenance contracts.
		At 30 June 2020, 86% of the
		consolidated portfolio was covered by
		such a "total guarantee" contract.
		Close monitoring of developments in
		existing environmental legislation,
		anticipation of new measures, and
		analysis of sector studies, with a view to
		incorporating new technologies and
		management tools as soon as possible
		into renovation projects.
		Use of resources: Befimmo adopts an
		eco-responsible approach at every stage
		of a building's life, making optimal use of
		energy and natural resources.

RISKS RELATED TO THE REALISATION OF WORKS - Medium
Risks of delays, budget	Adverse impact on the	Site communication plan, dialogue with
overspending, environmental	Company's results owing to a loss	local residents, etc.
damage and organisational	of rental income and/or an
problems when erecting,	increase in charges.	Monitoring of technical, budgetary and
redeveloping and carrying out		planning aspects has been introduced to
major works in the buildings in the	Adverse impact on the	manage the risks associated with this
portfolio.	Company's reputation.	work.
Risk of insolvency and non-		Contracts with building contractors
compliance with specifications by		generally provide for a number of
the contractors responsible for the		measures to mitigate such risks (price
works.		ceilings, delay penalties, etc.).
		Regarding environmental issues, specific
		measures are incorporated into the
		specifications and contracts applying to
		successful tenderers.
		Monitoring of compliance with these
		environmental measures while the works

			are in progress (notably by external
			environ-mental coordinators, ISO 14001
			procedures, site audits, BREEAM
			assessors, etc.).
			Regular assessment of main suppliers
			and service providers, and checks that
			co-contractors have no unpaid social
			contributions or taxes.

ENVIRONMENTAL RISKS - Medium
Environmental risks in terms of	Adverse environmental impact.	A responsible approach, under which, for
pollution of soil, water and air (high			many years, the necessary action has
CO2 emissions) and also noise	High costs for Befimmo.	gradually been taken to reduce the
pollution.			environmental impact of the activities
	Adverse impact on Befimmo's	that the Company controls and
Risk of not achieving the	reputation with its stakeholders.	influences directly.
Company's targets for improving
its environmental performance and	In some cases, an adverse impact	The implementation of the
of losing the certifications	on the fair value of the portfolio.	Environmental Management System
(BREEAM, ISO 14001, etc.) that it			(EMS), which is ISO 14001 compliant,
has obtained.			helps to anticipate environmental risks at
			both strategic level (acquisitions, major
			renovations, etc.) and operational level
			(building maintenance, use of buildings,
			etc.).
			An analysis was conducted of the
			environmental performance and the
			potential for improvement of the
			portfolio, and compliance with the
			requirements associated with
			certifications obtained.
			Use of resources: Befimmo adopts an
			eco-responsible approach at every stage
			of a building's life, making optimal use of
			energy and natural resources.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
FINANCIAL LIQUIDITY RISK - Medium
Befimmo is exposed to a liquidity	New financing arranged at a	Adoption of a financial policy which in
risk related to the renewal of its	higher cost.	particular diversifies the sources and
financing as it reaches maturity or		maturities of its financing. At
for any additional funding needed	Sale of certain assets under less	30 June 2020, the ratio of debt provided
to meet its commitments. The	than ideal conditions.	by financing from 8 banking institutions
Company could also be exposed to		was 72.0%. The remainder is provided by
this risk if its financing agreements		various bond issues (one private bond
were terminated.		placement in the United States (USPP)
		and a number of private placements in
		Europe).

		At 30 June 2020, the Company had
		confirmed un-used lines of €306.1 million
		including cash. The Company aims to
		continually anticipate its financing needs
		(notably for its investments) and keep a
		defined amount in confirmed unused
		lines at all times so as to hedge this risk
		over a time frame of at least 12 months.
		The debt ratio (as per the Royal Decree)
		amounts to 43.9% at 30 June 2020 (the
		statutory limit is 65%) compared to
		42.7% as at 31 December 2019.

RISK RELATED TO A CHANGE IN THE COMPANY'S RATING - Medium
The Company's financing cost is	Any downgrade of the rating	Regular review of the criteria (ratios)
influenced mainly by Standard &	would make it harder to obtain	used to determine its rating, analysis of
Poor's rating.	new financing and, if the rating	the potential impact of the Company's
	were reduced by one notch from	decisions on any changes in the rating,
	BBB to BBB-, would entail an	and the forecast changes in those ratios.
	additional financing cost
	estimated at €0.8 million, based	The Standard & Poor's rating agency
	on the debt structure and current	confirmed on 1 July 2020 the rating of
	contracts as at 30 June 2020.	BBB/outlook stable for Befimmo's long-
		term borrowings and A-2 for its short-
	Adverse impact on the	term borrowings.
	Company's image with investors.

RISK RELATED TO COUNTERPARTY BANKS - Low
Arranging finance or a hedging	The Company could find itself in	Diversifying its banking relationships and
instrument with a financial	a situation where it is unable to	working with banks that have an
institution creates a counterparty	access the financing arranged or	adequate rating or an acceptable level of
risk of that institution defaulting.	the cash flows to which it is	risk. As at 30 June 2020, the Company
	entitled through hedging	had a business relationship with several
	instruments.	banks:
		- at 30 June 2020, Befimmo had credit
		lines of €1,049.6 million. Banks
		providing this financing: Agricultural
		Bank of China Luxembourg, Banque
		Degroof Petercam, BECM (CM-CIC
		group), Belfius, BNP Paribas Fortis,
		ING, KBC and Société Générale
		- the counterparty banks for the
		hedging instruments are BECM (CM-
		CIC group), Belfius, BNP Paribas
		Fortis, ING, KBC and Natwest
		Markets PLC (RBS Group).
		The financial model is based on
		structural borrowing: the amount of
		cash deposited with financial institutions
		is structurally very limited. It was
		€0.6 million as at 30 June 2020
		compared with €2.9 million at
		31 December 2019.

RISK OF A CHANGE IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUE - Low

A change in the interest and	A change in the interest and	A change in the interest and exchange
exchange rates alters the value of	exchange rates alters the value of	rates alters the value of the financial
the financial assets and liabilities	the financial assets and liabilities	assets and liabilities carried at fair value.
carried at fair value.	carried at fair value.

RISK RELATED TO OBLIGATIONS CONTAINED IN FINANCING AGREEMENTS - Low
Risk of financing agreements being	Any challenge to a financing	The Company negotiates covenants with
cancelled, renegotiated or	agreement would expose the	its counterparties at levels consistent
terminated early should the	Company to having to arrange	with its estimated forecasts of changes in
Company fail to abide by the	additional financing at a	those indicators, and regularly analyses
covenants it made when signing	potentially higher cost or sell	any changes in those forecasts.
those agreements, notably	certain assets under less than
regarding certain financial ratios.	ideal conditions.
Risk of a penalty if agreements are
terminated prematurely.
When the Company carries out a
financing transaction on a foreign
market, it is subject to laws and
counterparties with which it is less
familiar.

RISK LINKED TO VOLATILITY AND SHARE PRICE - Medium

The Company is exposed to a	More difficult access to new	Devise and implement a value-creation
significant discrepancy between the	equity may limit development	strategy.
share price and the Company's net	capacity.
asset value.		Publish outlook and dividend forecast.
	Adverse impact on the
	Company's reputation.	Regular, transparent and proactive
		communication to financial analysts and
		current and prospective investors.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
RISKS RELATED TO NON-COMPLIANCE OF THE BUILDINGS WITH THE APPLICABLE REGULATIONS - Low
The Company runs the risk that	Additional investments which	Introduce the necessary procedures to:
one or more of its properties does	entail higher costs for the	-	anticipate new standards and
not immediately meet all the	Company and/or delays in		regulations (legislative and
applicable new standards and	ongoing projects (renovations,		regulatory watch),
regulations.	etc.).	-	- check the compliance of buildings
			newly acquired (technical due
	Fall in the fair value of a building.		diligence) and in the portfolio
			(product manager in charge of
	The Company is liable for civil,		regulatory compliance, checks on
	administrative or criminal fines.		compliance with standards and
			regulations, notably related to the
	Liability of the Company for non-		environment),
	compliance (e.g. in case of fire for	-	bring the building concerned
	failing to comply with safety		immediately into compliance by
	standards).		adopting these new standards and
			regulations (project management).
	An adverse impact on the
	Company's reputation, business	Tenants are made aware of their
	and results.	obligations in this regard by a clause in
		the standard lease.

RISKS RELATED TO THE BE-REIT STATUS - Low
Risk of non-compliance with the	Loss of approval for the BE-REIT	A legal team with the necessary skills
BE-REIT regime.	status, and no longer qualifying	ensures strict compliance with current
	for the transparent tax regime	regulations and, as far as possible,
Risk of future adverse changes to	applicable to BE-REITs.	anticipates changes in the law
that regime.		(legislation watch).
	Early repayment by acceleration
	of payment of loans taken out by	The Company also calls upon external
	the Company.	consultants.

Any future adverse changes in the BE-REIT regime could lead to a decline in results or net asset value, increase the debt ratio (e.g. by applying new accounting rules), reduce the maximum debt ratio, or affect the extent to which

BE-REITmust distribute dividends to shareholders.

RISK RELATED TO REGULATION - Medium

The Company is exposed to	Risk of the Company being held	A legal team with the necessary skills
changes in (Belgian, European and	liable, civil, criminal or	ensures strict compliance with current
international) law and increasingly	administrative convictions, and	regulations and, as far as possible,
numerous and complex	the risk of not obtaining or the	anticipates changes in the law
regulations, and to possible	non-renewal of permits. This	(legislation watch).
changes in their interpretation or	could adversely affect the
application by the authorities or	Company's business, its results,	The Company also calls upon external
the courts, notably accounting,	profitability, financial situation	consultants.
reporting, fiscal, environmental,	and/or outlook.

23 But this does not apply to its subsidiaries which are not institutional BE-REITs.

The Company also calls upon external consultants.

At the time of writing, Befimmo is involved in a number of legal proceedings which, on the whole (according to the information available to the Company at the date of this registration document), are unlikely to have a major impact on Befimmo, as the potential losses are highly unlikely to materialise and/or are of insignificant amounts.

A legal team with the necessary skills ensures strict compliance with current regulations and, as far as possible, proactively anticipates changes in the law (legislation watch).

The exit tax is calculated as per circular Ci.RH.423/567.729 of 23.12.2004, the interpretation or practical application of which is liable to change. The real value of a property, as referred to in that circular, is calculated after deducting the registration fees or VAT. This real value differs from (and so may be less than) the fair value of the property as set out in the BE-REIT'sIFRS balance sheet. Any change to this circular could potentially entail an increase in the basis on which the exit tax is calculated. Befimmo complies in all respects with the regulations in force, and the provisions of the above-mentionedcircular, for the calculation of exit taxes it owes in connection with the transactions on which the tax is due.

RISK OF LEGAL PROCEEDINGS - Low

The Company is a party to legal proceedings and may be involved in others in future.

urban-developmentand public- procurement regulations.

TAX REGIME - Low

As a BE-REIT,the Company enjoys a specific tax regime. The legislator intended the BE-REITto ensure a high degree of transparency for real-estateinvestments and distribute as much cash flow as possible while enjoying certain advantages. In particular, BE-REITspay a reduced rate of corporation tax as long as at least 80% of its cash flows are distributed (calculated on the basis of Article 13 of the Royal Decree of 13.07.2014). BE-REITsare exempt from corporation tax on the results (rental income and capital gains realised minus operating costs and financial charges)23.

DESCRIPTION OF RISK	POTENTIAL IMPACT	BEFIMMO'S POSITION
OPERATIONAL RISK - Medium
Risk of loss or loss of earnings	The Company is exposed to the	Corporate Governance Charter and Code
resulting from inadequate or failed	risk of the loss or theft of	of Ethics drafted by the Board of
internal processes, people and	sensitive data, financial loss, and	Directors.
systems or from external events	interruption of business in the
(natural disasters, human error,	event of a failure of systems or	Code of Ethics requiring ethical values to
etc.).	processes.	be observed in relations with customers,
		staff, partners and shareholders.
		A business continuity plan has been
		devised, consisting of measures which,
		in the event of a crisis, allow essential
		operations and services to continue,
		possibly in degraded mode, and a
		planned resumption of business. It
		covers both functional and IT aspects.

RISK RELATED TO THE INTEGRITY OF INFORMATION SYSTEMS AND DATA - Medium
Failure of information systems and	The Company is exposed to the	A business continuity plan has been
cyber-crime that could jeopardise	risk of disruption of its business in	devised, consisting of measures which, in
business continuity.	the event of a failure of	the event of a crisis, allow essential
	information systems or cyber-	operations and services to continue,
	crime.	possibly in degraded mode, and a
		planned resumption of business. It
		covers both functional and IT aspects.
		Depending on the type of data, back-
		ups are organised using a variety of
		techniques (redundant infrastructure,
		daily back-ups online and on cassette).
		Measures taken to secure access to the
		Company's data. Outsourced IT support
		provided by two partners under a
		service level agreement (SLA).
		Awareness actions for the team to the
		risks of cybercriminality and fraud.

RISK RELATED TO TEAM MEMBERS -	Medium
Risk of departure of certain key	A loss of key skills in the	Special attention is paid to staff
members of staff.	Company could lead to a delay in	wellbeing and motivation.
	achieving some of its objectives.
		Pay is in line with market rates
		(benchmarking).
		Importance of managing the skills of the
		team members.
		Importance of dialogue with the team.
		New procedure for the induction of new
		employees (mentoring system, etc.).

		As far as possible, Befimmo prepares for
		departures and ensures that know-how
		is passed on.
RISK OF FRAUD- Medium
Misappropriation of Company	The Company is exposed to the	Corporate Governance Charter and Code
assets for own account or for third	risk of loss or theft of sensitive	of Ethics drafted by the Board of
parties.	data, and financial loss as a result	Directors.
	of fraud.
		Code of Ethics requiring ethical values to
		be observed in relations with customers,
		staff, partners and shareholders.
		Procedures for controlling sensitive data.
		Awareness actions for the team to the
		risks of cybercriminality and fraud.

.APPEN DICES

To the Board of Directors Befimmo SA Parc Goemaere

Chaussée de Wavre 1945 1160 Brussels

Dear Mesdames,

Dear Sirs,

Re : Valuation of the real-estate portfolio of Befimmo as at 30th June 2020.

Context

In accordance with Chapter III, Section F of the law of 12th of May 2014 on B-REITs, Befimmo has instructed an independent valuer to provide an opinion of value for its portfolio as at 30th June 2020. We have been mandated to value part of the Befimmo and Fedimmo portfolios while Cushman and Wakefield have been mandated to value another part of the Befimmo and Fedimmo portfolios. The part valued by Jones Lang LaSalle is the part leased on multiple short term leases mainly in Brussels and its hinterland. Furthermore we have consolidated the results of the valuation of which the main conclusions are listed hereunder. As requested by Befimmo, Cushman and Wakefield is also responsible for determining the fair value of the right of use arising from leases under which Befimmo and/or Silversquare have obligations in their capacity as lessee. This request arises from the publication by the International Accounting Standards Board (IASB) of IFRS 16, effective for annual reporting periods beginning on or after 1 January 2019, which requires the lessee to recognise in the balance sheet a right-of-use asset and lease liability representing its obligation to make lease payments. This fair value, as defined in IFRS 16, is obtained by updating rent flows remaining until the end of the agreement, taking account of gratuities, benefits and other adjustments. As at 30th June 2020, the cumulative fair value of the right-of-use asset amounts to €44,455,807. The fair value of the right of use of land amounts to €2,036,559.

Jones Lang LaSalle has been active in Belgium since 1965 and has a long track record in valuing professional real estate. Cushman & Wakefield also indicate that they benefit from sufficient knowledge of the property markets in which Befimmo and Fedimmo are active, as well as the required professional qualifications and recognition to fulfil this assignment. The mission of the valuers has been carried out in full independence.

Consistently with market practice, our mission has been carried out on the basis of information provided by Befimmo, in particular relating to tenancy situation, costs and taxes borne by the landlord, works to be carried out, as well as any other element which could have an influence on the assets' value. We have assumed this information to be correct and complete. As specifically mentioned in our reports, our valuation does not constitute in any way a quality or technical survey of the properties, nor an analysis of the possible presence of deleterious materials. These elements are well known by Befimmo, which carries out a technical and legal due diligence prior to the acquisition of each property.

We are obliged to inform you that as at the date of 30th of June 2020 the outbreak of the Coronavirus (COVID-19) declared by the World Health Organisation as a "Global Pandemic" on the 11th March 2020 has impacted global financial markets . A number of countries have put travel restrictions in place with confinement measures implemented in several cases at a national level. The economy has been impacted across various sectors, including sectors of the property market.

In the context of the valuation of the subject property we consider that the comparable transaction evidence adopted in our analysis took place prior to the current events of the COVID-19 crisis and therefore does not allow us to conclude our Market Value with the same certainty at the valuation date. Indeed the impacts (social, labour, political, health, economic) linked to the COVID-19 are exceptional in modern times and result in circumstances that impact our judgement. Our valuation is therefore reported on the basis of a material uncertainty of valuation, as stipulated in the VGPA 10 of the RICS Valuation-Global Standards. As a consequence the valuation of the subject property is subject to the potential impacts on the real estate market which remain uncertain at this stage. Uncertainty clauses are therefore to be taken into consideration in reviewing the conclusions of this valuation report. Generally in an uncertain climate the liquidity of assets can be impacted and the number of transactions more restricted which impacts market transparency. While the French commercial real estate market fundamentals remain solid we cannot exclude contagion effects on the investment and leasing markets in a short term period.

As at the valuation date it is too premature to estimate the potential impact on the valuation with too few transactions signed and as such we do not have sufficient evidence to draw reliable conclusions as to the impact if any on the real estate investment market and on yields in particular.

We therefore recommend that you review the Market Valuation assessment of the subject property on a regular basis given the valuation date of 30/06/2020 and based on new elements that may be brought to our attention as the situation evolves.

Opinion

The investment value is defined as the most likely value that could reasonably be obtained on the date of valuation in normal sales conditions between willing and well-informed parties before deduction of transaction costs.

As our principal valuation method we have adopted a static capitalisation approach and also carried out a simple "sanity check" in terms of price per square meter.

The static capitalisation is carried out in the form of a "Term and Reversion" valuation, with the current income based on contractual rents capitalised until the end of the current contract, and the ERV capitalised in perpetuity and brought to a net present value. It should be noted that this method

of valuation applies a multiplier to the current and future expected rent that is based on analysis of sales of comparable properties in the market. The multiplier depends on the yield that investors require when acquiring in this market. The yield reflects the risks intrinsic to the sector (future voids, credit risk, maintenance obligations, etc.). Where there are unusual factors specific to the property, then an explicit correction is made either, for example:

Non-recoveredcharges or taxes in a market where recovery from the tenant is usual;
Renovation work or deferred repairs necessary at the date of valuation in order to continue to receive the rent;
Unusual outgoing costs.

It is important to understand the distinction between this "capitalisation" approach and the discounted cash flow method where future growth and inflation are explicit. This difference is why discount rates in a discounted cash flow valuation are higher than yields in a static capitalisation approach. The yields used are based on the valuer's judgement in comparison with evidence of comparable sales. Factors in the market that determine yield are numerous, and different factors are of importance to different buyers. The following criteria are often taken into account : the quality of the tenant and duration of the lease, the location, the state of repair, the age and the architectural quality of the building and also the efficiency of the building (gross to net ratio/parking ratio).

Ultimately it is supply and demand in the investment market that determines the price. For the financial accounting of a B-REIT and in accordance with the IAS/IFRS norms it is common practice to use the fair value. Following a press release of the Belgian Association of Asset Managers (BEAMA), dated 8 February 2006 and as confirmed in the press release of the BE-REIT Association dated 10 November 2016, the fair value can be obtained by subtracting 2.5% transaction costs from properties with an investment value of more than € 2,500,000. For properties with an investment value under € 2,500,000 registration duties of 10% or 12.5% should be subtracted, depending on the region where they are situated.

In the light of all comments mentioned above, we confirm that the investment value of the consolidated Befimmo property portfolio as at 30th June 2020 amounts to a total of

€ 2,935,569,000

(Two billion nine hundred thirty five million five hundred sixty nine thousand Euros);

this amount includes the valuation of the buildings which have been carried out by Cushman & Wakefield Valuation Services.

The most likely sale value corresponding to the fair value of the consolidated Befimmo property portfolio as at 30th June 2020 amounts to a total of

€ 2,862,972,382

(Two billion eight hundred sixty two million nine hundred seventy two thousand three hundred eighty two Euros);

this amount includes the valuation of the buildings which have been carried out by Cushman & Wakefield Valuations services.

On this basis, the initial yield of the portfolio with properties available for lease stood at 5.22%. Should the vacant accommodation be fully let at estimated rental value, the initial yield is 5.55% for the same portfolio.

The occupation rate of the portfolio with properties available for lease is 93.62%. The property portfolio comprises:

Offices	Fair Value (€ million)	%

Properties available for lease	2 427.4	84.8%

Brussels CBD and similar	1 408.2	49.2%

Brussels decentralised	82.9	2.9%

Brussels periphery	120.6	4.2%

Wallonia	232.5	8.1%

Flanders	441.6	15.4%

Luxembourg city	141.5	4.9%

Properties that are being constructed or developed for own account in order to be leased	424.4	14.8%

Properties held for sale	11.2	0.4%

Total buildings	2 863.0	100.0%

Right of use of leased offices (IFRS 16)	44.5

Right of use of land (IFRS 16)*	2.0

Total of investment property	46.5

Total	2 909.5

*A debt related to these rights of use has been recognized in the balance sheet liabilities. Yours sincerely,

Brussels, 16th July 2020

R.P. Scrivener FRICS

Head of Valuation and Consulting

On behalf of Jones Lang LaSalle

The annualised total of the rents of current leases at the balance sheet date, not taking account of current gratuities or rents under leases commencing after the balance sheet date concerned.

The ratio between the gross current rent from lease agreements and the "deed-in-hands" value of properties available for lease.

The ratio between the gross current rent from lease agreements and the "deed-in-hands" value of investment properties.

The ratio between the potential rent and the "deed-in-hands" value of properties available for lease.

The gross current rent from lease agreements as defined above, plus the estimated rental value of unoccupied space at the balance sheet date.

Le rapport entre la valeur locative estimée des surfaces occupées à la date de clôture et la valeur locative estimée totale des immeubles disponibles à la location.

The ratio of (i) the sum of the gross current rents from lease agreements for each lease of properties available for lease multiplied by their respective remaining duration from the balance sheet date to their next break and (ii) the total gross current rent from lease agreements of properties available for lease.

The ratio of (i) the sum of the gross current rents from lease agreements for each lease of properties available for lease multiplied by their respective remaining duration from the balance sheet date to their final expiry date and (ii) the total gross current rent from lease agreements of properties available for lease.

		"

Alternative Performance	Definition	Use
Measure

Net property charges	The sum of various property charges, net of amounts	Gives an overview of all net property
	recoverable from tenants (corresponds to the sum of	charges.
	headings IV to XIII of the consolidated statement of total
	comprehensive income).
Other operating income	Heading XV 'Other operating income and charges' minus any	Used to compare forecasts and actual
and charges (excluding	goodwill impairment.	figures in heading XV 'Other
goodwill impairment)		operating income and charges'. Any
		goodwill impairment is not budgeted.
Operating margin	'Operating result before result on portfolio' divided by 'Net	Used to assess the Company's
	rental result'.	operating performance.
Net property result	'Operating result before result on portfolio' plus heading XVI	Used to identify the operating profit
	'Gains and losses on disposals of investment properties'.	before changes in the fair value of
		investment property.
Financial result (excluding	'Financial result' minus heading XXIII 'Changes in fair value of	Used to compare forecasts and actual
changes in fair value of	financial assets and liabilities'.	figures in the financial results.
financial assets and
liabilities)
Net result before changes	'Net result' minus heading XVIII 'Changes in fair value of	Used to identify the net result before
in fair value of investment	investment property' and heading XXIII 'Changes in fair value	changes in the fair value of
properties and financial	of financial assets and liabilities'.	investment property and of the
assets and liabilities		financial assets and liabilities.
"Like-for-Like" net rental	Net rental result of properties available for lease at constant	Used to measure the change in rental
result	perimeter for two consecutive periods. The 'Like-for-Like'	income of properties available for
	scope is calculated on the basis of the EPRA definition.	lease at constant floor area for two
		consecutive periods.

(in thousand €)	30.06.2020	30.06.2019
Net rental result (A)	69 384	69 482

Net rental result linked to changes in perimeter (B)	4 401	2 502
Net rental result on properties not available for lease (C)	- 65	2 933
Non-recurring element to extract from the "Like-for-Like" (D)	3 154	394
Net rental result in « Like-for-Like » (A-B-C-D)	61 895	63 652

(in thousand €)	30.06.2020	30.06.2019
Net result (A)	29 483	100 555

XVIII. Changes in fair value of investment properties (B)	73	77 430
XXIII. Changes in fair value of financial assets and liabilities (C)	-16 673	-28 322
Net result before changes in fair value of investment properties and financial	46 084	51 446
assets and liabilities (A-B-C)

(in thousand €)	30.06.2020	30.06.2019
Financial result (A)	-26 851	-41 229

XXIII. Changes in fair value of financial assets and liabilities (B)	-16 673	-28 322
Financial result (excl. the changes in fair value of the financial assets and	-10 177	-12 907
liabilities) (A-B)

(in thousand €)	30.06.2020	30.06.2019
Operating result before result on portfolio	53 209	54 798

XVI. Gains or losses on disposals of investment properties	-	10 317
Net property result	53 209	65 115

(in thousand €)	30.06.2020	30.06.2019
Operating result before result on portfolio (A)	53 209	54 798
Net rental result (B)	69 384	69 482
Operating margin (A/B)	76.7%	78.9%

(in thousand €)	30.06.2020	30.06.2019
XV. Other operating income and charges (A)	-179	-917
Goodwill impairment (B)	-	-
Other operating income and charges (excluding goodwill impairment) (A-B)	-179	917

(in thousand €)	30.06.2020	30.06.2019
IV. Recovery of property charges	10 727	4 457

V. Recovery of rental charges and taxes normally paid by tenants on let properties	22 820	21 732

VI. Costs payable by the tenant and borne by the landlord on rental damage and	-	-
redecoration at end of lease

VII. Rental charges and taxes normally paid by tenants on let properties	-23 136	-22 489

VIII. Other revenue and charges for letting	159	332
IX. Technical costs	-10 644	-4 348
X. Commercial costs	-460	-142
XI. Charges and taxes on unlet properties	-1 978	-1 434
XII. Property management costs	-1 558	-1 383
XIII. Other property charges	-3 453	-3 413


Net property charges	-7 523	-6 689

Alternative Performance	Definition	Use
Measure

Loan-to-value ("LTV")	Nominal financial debt minus balance sheet heading II.F.	This is the debt ratio calculated on
	'Cash and cash equivalents', divided by the sum of balance	the basis of the fair value of the
	sheet headings I.C. "Investment property" and II.A.	property portfolio.
	'Properties held for sale'. Nominal financial debts are the
	accounting financial debts excluding IFRS adjustments, in
	other words excluding the reassessment at fair value of
	financial assets and liabilities and the smoothing of debt
	issuance costs.
Average (annualised)	Annualised interest paid over the reporting period,	Used to measure the average cost of
financing cost	including the credit margin, the cost of the hedging	the Company's financial debt.
	instruments and liquidity cost, divided by the average
	nominal financial debt over the period concerned.
Return on shareholders'	The return obtained by an investor over a 12-month period	Used to measure the profitability
equity (in € per share)	ending at the close of the period, assuming the	over 12 months (in €/share) of a
	reinvestment of dividends and the participation in	shareholder's investment on the
	operations to strengthen the Company's capital. The	basis of the value of shareholders'
	calculation is based on the average number of shares not	equity.
	held by the group over a 12-month period.
Return on shareholders'	The internal rate of return earned by an investor over a 12-	Used to measure the profitability
equity (in %)	month period ending at the close of the period, assuming	over 12 months (in %) of a
	the reinvestment of dividends and the participation in	shareholder's investment on the
	operations to strengthen the Company's capital. The	basis of the value of shareholders'
	calculation is based on the average number of shares not	equity.
	held by the group over a 12-month period.

(in thousand €)	30.06.2020	31.12.2019
Nominal financial debts (A)	1 151 838	1 090 344
II. F. Cash and cash equivalents (B)	-575	-2 878

I. C. Investment properties (D)	2 851 742	2 788 591

II. A. Assets held for sale (E)	11 230	-
Fair value of portfolio at the closing date (C = D+E)	2 862 972	2 788 591

Loan-to-value(A-B)/C	40.2%	39.0%

(in thousand €)	30.06.2020	30.06.2019
Interest paid	11 503	11 332
Annualised interest paid (A)	23 005	22 665
Annualised nominal financial debts (B)	1 125 502	1 145 196
Average (annualised) financing cost (A/B)	2.04%	1.98%

	30.06.2020	31.12.2019
Return on shareholders' equity (in € per share)	3.66	6.47
Return on shareholders' equity (in %)	6.3%	11.6%

(in € thousand)	30.06.2020	30.06.2019
Net result IFRS	25 591	100 555

Net result IFRS (in € per share)	0.95	3.93
Adjustments to calculate EPRA earnings
To exclude:
I. Changes in fair value of investment properties and properties held for sale	-73	-77 430

II. Result on disposals of investment properties	-	- 10 317
VI. Changes in fair value of financial assets and liabilities and close-out costs	16 673	30 766
VIII. Deferred tax in respect to EPRA adjustments	285	203
EPRA earnings	42 477	43 776

EPRA earnings (in € per share)	1.57	1.71

(in € thousand)	30.06.2020	31.12.2019
Estimated rental value (ERV) on vacant space (A)	4 470	5 166
Estimated rental value (ERV) (B)	125 465	124 846
EPRA Vacancy rate of properties available for lease (A)/(B)	3.6%	4.1%

24 The definitions of the EPRA indicators are published on pages 28 and 29 of this Report. Source: EPRA Best Practices (www.epra.com).

(in € thousand)	30.06.2020	31.12.2019
Investment properties and properties held for sale	2 862 972	2 788 591

To exclude:
Properties that are being constructed or developed for own account in order to be	-424 389	-394 130
leased

Properties held for sale	-11 230	-
Properties available for lease	2 427 353	2 394 461
To include:
Allowance for estimated purchasers' cost	61 250	60 089
Investment value of properties available for lease (B)	2 488 603	2 454 550
Annualised cash passing rental income	122 740	128 033

To exclude:
Property charges(a)	-5 460	-6 915
Annualised net rents (A)	117 280	121 118
To include:
Notional rent expiration of rent free periods or other lease incentives	6 349	3 383
Topped-up annualised net rents (C)	123 629	124 501

(in %)
EPRA Net Initial Yield (A/B)	4.7%	4.9%

EPRA Topped-up Net Initial Yield (C/B)	5.0%	5.1%

The scope of the property charges to be excluded for calculating the EPRA Net Initial Yield is defined in the EPRA Best Practices and does not correspond to "property charges" as presented in the consolidated IFRS accounts.

(in € thousand)	30.06.2020	30.06.2019
Net administrative and operating expenses in the income statement	-16 238	-13 770

III. (+/-) Rental charges	- 241	- 28
Net property charges	-7 523	-6 689
XIV. (-) Corporate overheads	-8 473	-7 078
XV. (+/-) Other operating income and charges	- 179	- 917
Exclude:
i. Impact of the spreading of gratuities	179	941

EPRA costs (including direct vacancy costs) (A)	-16 238	-13 770
XI. (-) Charges and taxes on unlet properties	1 978	1 434
EPRA costs (excluding direct vacancy costs) (B)	-14 260	-12 336
I. (+) Rental income	69 626	69 509
Gross rental income (C)	69 626	69 509
EPRA Cost ratio (including direct vacancy costs) (A/C)	23.3%	19.8%

EPRA Cost ratio (excluding direct vacancy costs) (B/C)	20.5%	17.7%

Segment

30.06.2020

30.06.2019

Evolution

Properties

Acquisitions

Disposals

Properties

Properties that

Total net

Properties

Acquisitions

Disposals

Properties

Properties that

Total net

Properties

owned

held for

are being

rental

owned

held for

are being

rental

owned

throughout

sale

constructed or

income(b)

throughout 2

sale

constructed or

income(b)

throughout

developed(a)

consecutive

developed(a)

(in € thousand)

consecutive

years

consecutive

years

Brussels CBD and similar	30 683	361			178		31 222	32 815		1 536		1 711	36 062	-6.5%
Brussels decentralised	3 235						3 235	2 012					2 012	60.8%
Brussels periphery	4 148						4 148	3 672		80			3 752	13.0%

Wallonia	5 389				- 97		5 292	5 180				- 1	5 179	4.0%
Flanders	13 653			-220			13 433	13 991		- 9	772		14 755	-2.4%
Luxembourg city	2 320						2 320	2 466					2 466	-5.9%
Total	59 429	361	-	-220	81		59 651	60 135	-	1 607	772	1 711	64 226	-1.2%
Reconciliation to the
consolidated IFRS
income statement
Net rental income
related to:
- Properties booked as
financial leases							-6						-4
(IFRS 16)
- Non recurring element:							7 191						3 244
Other property charges							-4 975						-4 673
Property operating
result in the
						61 861						62 793
consolidated IFRS

income statement

These are properties that are being constructed or developed for own account in order to be leased.
The total "Net rental income" defined in EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the "Property operating result" of the consolidated IFRS accounts.

(in € thousand)	30.06.2020	30.06.2019
Net result IFRS (group share)	24 733	101 229
Net result IFRS (in € per share) (group share)	0.91	3.96
Adjustments to calculate EPRA earnings	16 764	57336
To exclude:
I. Changes in fair value of investment properties and properties held for sale	- 251	-77 988

II. Result on disposals of investment properties	-	-10 317

VI. Changes in fair value of financial assets and liabilities and close-out costs	16 673	30 766
VIII. Deferred tax in respect of EPRA adjustments	285	203
X. Adjustments for non-controlling interests	57	215
EPRA earnings (group share)	41 498	44 107
EPRA earnings (in € per share) (group share)	1.53	1.72

(in € thousand)	30.06.2020	31.12.2019
Net asset value (group share)	1 604 653	1 603 872
Net asset value (in € per share) (group share)	59.32	59.29

To include:
II. Revaluation at fair value of finance lease credit	114	115
To exclude:
IV. Fair value of financial instruments	55 859	39 984
V. a. Deferred tax	976	691
To include/exclude :

Adjustments in respect of non-controlling interests	-	-
EPRA NAV (group share)	1 661 601	1 644 662
EPRA NAV (in € per share) (group share)	61.42	60.80
To include:
I. Fair value of financial instruments	-55 859	-39 984
II. Revaluations at fair value of fixed-rate loans(a)	-26 705	-20 383
III. Deferred tax	- 976	-691
To include/exclude :
Adjustments in respect of non-controlling interests	-	-
EPRA NNNAV (group share)	1 578 062	1 583 604
EPRA NNNAV (in € per share) (group share)	58.33	58.54

Excluding financial debt linked to IFRS 16.

Befimmo SA I Chaussée de Wavre 1945 I 1160 Brussels

+32 2 679 38 13 Icontact@befimmo.beI www.befimmo.be

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