Ascencio : Annual Press Release

STATEMENT OF THE STATUTORY MANAGER

CONSOLIDATED RESULTS FOR FINANCIAL YEAR 2019-2020

Regulated information

27 November 2020 - Under embargo until 5.40 p.m.

GROWTH AND RESILIENCE OF ASCENCIO'S HYBRID PORTFOLIO

• SUPERMARKETS & RETAIL PARKS - EPRA EARNINGS UP BY 2.8% DIVIDEND UP BY 4.3%

OPERATING RESULTS







Rental income: €44.55 million, up by 7.1% (before Covid impact)

EPRA Earnings: €29.42 million, up by 2.8%

Average cost of borrowing: down : from 1.87% at 30/09/2019 to 1.84%

EARNINGS PER SHARE





EPRA Earnings: €4.46 per share, compared with €4.34 per share at 30/09/2019

EPRA NAV: €54.95 per share, compared with €57.13 per share at 30/09/2019

PROPERTY PORTFOLIO (EXCLUDING THE EFFECT OF IFRS 16)





Fair value: sharp rise: €690.5 million compared with €622.9 million at 30/09/2019

Occupancy rate: up: 97.7% compared with 97.3% at 30/09/2019

FINANCIAL STRUCTURE

• Debt ratio1: 48.7 % at 30/09/2020

DIVIDEND FOR THE 2019/2020 FINANCIAL YEAR

 Proposed distribution of a gross dividend of €3.65 per share, up 4.3%

1 Debt ratio calculated in accordance with the Royal Decree of 28 April 2018 on Regulated Real Estate Companies.

Avenue Jean Mermoz, 1 bte 4 - 6041 Gosselies ⏐ BE 0881.334.476 - Registered with the Charleroi Companies

Registry ⏐ www.ascencio.be

27 November 2020 Embargoed until 5.40 p.m.

Summary of activity in 2019/2020 marked by Covid-19

The first half of the financial year played out in a climate that gradually deteriorated due to the health crisis, which started in December 2019 in China.

For Ascencio, it was marked by a substantial investment of €91 million, inclusive of costs, involving the acquisition of 5 assets in the food sector in the south-east of France. Completion of this transaction shows Ascencio's desire to strengthen its exposure to the food sector. This is a part of its DNA and an essential and strategic component of its portfolio.

The share of the food sector in the Ascencio portfolio rose from 33% at 30/09/2019 to 40% at 30/09/2020.

This investment, financed entirely by debt, generates annual rental income of €4.7 million, taking current lease rentals from €42.4 million per year at 30/09/2019 to €47.2 million at 30/09/2020. It was conducted with the help of Ascencio's traditional bankers and with new major financial partners on the French market.

Mid-March 2020, the health crisis obliged the governments of most European countries to enforce shop closures, with the exception of those selling food and certain other essential goods and services.

During May, shops gradually reopened depending on their sector of activity, first garden centres, DIY stores, and haberdasheries, followed by all except for hotels, restaurants and catering.

The health crisis did not affect the results of the first half-year ended 31/03/2020. Since rentals are invoiced and payable in advance, overdue payments at 31 March 2020 caused by the Covid-19 crisis were not significant, and did not lead to any reduction in value at that date.

From 1 April many retailers in sectors other than food have suspended payment of their rentals due to the closure of their business.

Ascencio initiated a responsible dialogue with each of its non-food retailers, with a view to helping them face the challenges of the crisis, case by case depending on the specific difficulties they faced and their own financial capacity. Ascencio offered to stagger and/or partly cancel rent payments for April and May for its non-food clients whose business has been badly affected by the crisis. However, retailers that were unaffected or affected only slightly did not receive any support measures. Such was the case in particular of the supermarkets and shops selling basic necessities, which remained open throughout the lockdown.

By 30/09/2020, Ascencio had reached agreement with all of its Belgian and Spanish tenants. In France, an agreement was signed with a large number of tenants.

At this time, agreement has been reached on 94% of the rents in the French portfolio.

At 30/09/2020, Ascencio estimated that the impact of the Covid-19 crisis on its rental revenue for the financial year amounts to €1.64 million, corresponding to partial cancellations of rent for April and May 2020 for certain retailers, i.e. an amount lower than the impact estimated at 30/06/2020 (€2.04 million).

This amount of €1.64 million comprises €1.08 million in credit notes already issued on 30/09/2020 and €0.56 million in credit notes still to be issued (estimated amount based on negotiations in progress at 30/09/2020).

The health crisis also exacerbated the difficulties of certain brands which are now in administration or were declared bankrupt, including Orchestra and Brantano. Reductions in value of trade receivables recorded during the financial year stand at €0.58 million (compared with €0.22 million the previous year).

However, the impact of retailers in difficulty on the Company's results was greatly limited due to the positioning of Ascencio's portfolio in out-of-town retail.

2

27 November 2020 Embargoed until 5.40 p.m.

In fact, out-of-town retail has a "corona-safe" profile for consumers. This has allowed retailers active in the out-of-town sector to rapidly resume activities, and make up for non-seasonal spending, particularly in the DIY, home and sport sectors.

What's more, thanks to their location, ample parking, attractive rent, and flexible commercial space, out-of-town retail assets give retailers the edge they need in terms of financial and operational agility in order to develop their omnichannel strategy.

These two characteristics put out-of-town retail in a commanding position compared with downtown and shopping centres.

With the exception of 6 sites out of the 370 in Ascencio's portfolio, all the tenants in administration have decided, as part of their continuity plans, to continue operating the shops in the Ascencio portfolio. In particular, 4 of Ascencio's 5 Orchestra stores are continuing their activities. As regards Brantano, Ascencio owns only one of the chain's stores, and the commercial unit has already been re-let to another brand.

The resilience and robust nature of Ascencio's portfolio shone through in the context of the health crisis.

The food retail sector was able to continue its activities during the crisis and accounts for 40% of Ascencio's annual contractual rental revenue. Food has proved resilient in the face of the pandemic, confirming the limited impact of e-commerce on its activities.

The DIY, garden centre, electronic and multi-media sectors also represent an important base of the portfolio, with 16.1% of annual rental revenue. These sectors suffered relatively little from the crisis.

Despite the health crisis, Ascencio ended the 2019/2020 financial year with improved results, both in terms of rental income (+7.1% before Covid impact) and EPRA result (+2.8%).

3

Consolidated results for financial year 2019/2020

CONSOLIDATED RESULTS (€000S)	30/09/2020	30/09/2019
RENTAL INCOME	44.555	41.585
Rental related charges	-2.224	-225
Taxes and charges not recovered	-183	-162
PROPERTY RESULT	42.148	41.198
Property charges	-2.711	-3.585
Corporate overheads	-3.881	-3.807
Other income and operating costs	-4	73
OPERATING RESULT BEFORE RESULT ON PORTFOLIO	35.551	33.879
Operating margin (*)	79,8%	81,5%
Financial income	0	0
Net interest charges	-5.308	-4.376
Other financial charges	-334	-388
Taxes	-489	-488
EPRA EARNINGS	29.420	28.628
Net gains and losses on disposals of investment properties	-41	963
Change in the fair value of investment properties	-20.520	-399
Other result on the portfolio	0	0
Portfolio result	-20.561	564
Change in fair value of financial assets and liabilities	316	-8.570
Exit Tax	0	969
Taxes on net gains and losses on disposals of investment properties	0	0
Deferred tax	71	-242
NET RESULT	9.246	21.348

(*) Alternative Performance Measure (APM). See pages 11 and 12.

As a result of the acquisition of 5 Casino supermarkets on 6 March 2020, rental income for the year was up by 7.1% at €44.55 million (before Covid impact) compared with €41.58 million for the previous financial year.

The following table shows rental income by country:

RENTAL INCOME (€000S)	30/09/2020	30/09/2019
Belgium	25.567	57%	25.435	61%
France	17.033	38%	14.224	34%
Spain	1.955	4%	1.926	5%
TOTAL	44.555	100%	41.585	100%

On a like-for-like basis rental income on the whole portfolio was up by 0.65% (before Covid impact).

Avenue Jean Mermoz, 1 bte 4 - 6041 Gosselies ⏐ BE 0881.334.476 - Registered with the Charleroi Companies

Registry ⏐ www.ascencio.be