Befimmo : Presentation - Kempen & Co Virtual European Property Seminar (discovery)

2

4

5

5% 18%

9%

17%19%

3%

4% 13%

4%7%

Brussels Leopold district

Brussels North area

Brussels Centre

Brussels airport

Brussels Louise district

Brussels periphery

Brussels decentralised

Flanders

Wallonia Luxembourg city

City centre assets

Coworking

Decentralised, peripheral and regional assets

6

	2019	2018
EPRA BPR	Gold	Gold
EPRA sBPR	Gold	Gold
CDP	Awareness C	A- Leadership
GRESB	83% Green Star	81% Green Star
MSCI	A	A
OEKOM*	-	Prime C+
VIGEO EIRIS	Not publicly	Not publicly
available	available
Standard Ethics*	-	EE-
Sustainalytics	56/100	64/100

*Befimmo hasn't received a OEKOM questionnaire in 2019. Befimmo wasn't contacted by Standard Ethics

in 2019. Other participation on voluntary basis.

7

December 2019 | Increase in equity

€80 million increase in equity to strengthen investment strategy in quality offices in BeLux and further develop the network of flexible office solutions

Investments being studied, not committed

9

March 2020 - April 2020 | Covid-19 pandemic

Impact on real-estate operator business:

• Offices remain open but homeworking is the norm
• Construction sites halted → resumed in May 2020, impact on delivery will depend on pace
• Commercialisation slowed, no site visits allowed → resumed on 11 May 2020
• Monitoring tenants' situation on a case-by-case basis:
• • retail sector (1% of consolidated rental income) rent rebates granted for duration of the lockdown
  • deferral of payments for office tenants seriously affected by the crisis (currently €1.4 million)
• Asset rotation slowed down

10

March 2020 - April 2020 | Covid-19 pandemic

Impact on coworking business:

• Coworking spaces open and operational, members encouraged to work from home
• Normal services provided, apart from catering and events
• Fully flex and Dedicated desk membership fees (0.8% of consolidated rental income) were suspended for April

11

May 2020 | Covid-19 pandemic

Outlook & dividend forecast:

• Withdrawal of the outlook and the dividend forecast published in the 2019 Annual Financial Report
• Q1 results relatively unaffected while having controlled financial expenses in 2020
• At constant perimeter and on the basis of the information available, 2020 EPRA earnings forecast reviewed to around €2.70 per share (from €2.88 per share)
• Out of prudence, the dividend for fiscal year 2020 is reduced to at least the regulatory level (80%)
• A revised dividend policy will be announced in due course

12

May 2020 | Publication Q1 2020 results

▪	Strong letting activity	9,700 m² of lettings
▪	Developments	ZIN (Brussels, North area): building and environmental permits delivered in March 2020
		78% of office pipeline pre-let
▪	Solid occupancy rate	Occupancy stable at 94.3%
▪ High duration of leases	7.0 years weighted average duration of leases (up to next break)
▪	Rental growth	EPRA like-for-like rental growth at 2.8%
▪	Coworking	94% occupancy for mature spaces

• Fair value (inv. properties) €2.8 billion, stable compared to 31.12.2019

▪	NAV	€59.65 per share (consolidated, group share)
▪	EPRA earnings	€0.77 per share (consolidated, group share)

▪	Debt ratio (LTV)	38.7%, stable compared to 31.12.2019
▪	Financing cost	2.0%, stable compared to 31.12.2019

• Strengthening of financing Financing needs covered until the end of 2021

▪ Debt maturity

4.8 years

13

• Brussels is a stable office market
• Very low vacancy rate: 7.60%
• Almost no grade A vacancy: 0.57% (as at 31.12.2019)
• Limited speculative development pipeline: 212,000 m² for 2020 and 2021
• Tenants committing in state of future completion (examples in Befimmo portfolio: Brederode Corner, ZIN, Quatuor, etc.)

Sources: Cushman & Wakefield | JLL	15
Figures at 31 March 2020

600 000

500 000

400 000

300 000

200 000

100 000

-

2010	2011	2012	2013	2014		2015	2016	2017	2018	2019	Q1 2020
Belgian administration			EU Institutions						Embassies & Representations
Corporate < 2,500 m²			Corporate > 2,500 m²

Sources: Cushman & Wakefield | JLL

20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Central districts	Decentralised districts	Periphery	Brussels market
330
300
270
240
210
180
150
120

Prime Central		Prime Decentralised		Prime Periphery

16

1.800.000												14%
1.600.000												12%
1.400.000												10%
1.200.000
1.000.000												8%
800.000												6%
600.000												4%
400.000
200.000												2%
0												0%
	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Q1
			Grade A	Grade B		Grade C	Vacancy rate2020
3
2
1
0
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Q1 2020

	Brussels office		Regional office

Sources: Cushman & Wakefield

400	Completed
350	Under construction | Available
Under construction | Pre-let
300	Project With Building Permit
250
200
150
100
50
0

17

Sources: Cushman & Wakefield	18
Figures at 31 December 2019

Market trends

Sound positioning

Changing ways of working and living

Network of flexible offices solution

Accelerating factor

Impact of COVID-19 pandemic on the future use of office space, mobility and flexibilty in time and space

19

21

							Public sector	Weighted average duration	Rating
							up to next break (in years)
							Federal		AA (rating S&P)
							Flemish Region		AA (rating Fitch)
							Belgian public sector	8.5	Fitch Rating
							European Commission		AAA
							European Parliament		AAA
							Representations		-
							European public sector	4.9
							Total public-sector	8.0
							tenants
							Private sector - top 5	Weighted average duration	S&P Rating
							up to next break (in years)
							Deloitte Services &		-
							Investments NV
							BNP Paribas and affiliated		A+
							companies
							Beobank (Crédit Mutuel		A
							Nord Europe)
							Docler Services S.à.r.l.		-
							KPMG Luxembourg		-
							Total private-sectortop-5	8.2
							tenants
							Other tenants	Weighted average duration
							up to next break (in years)
							+/- 230 tenants	3.7
							Total of portfolio	7.0

58.4%

gross

current leases

16.3%

gross

current leases

25.3%

gross

current leases

22

100%

94.3%

95%

90%

85%

80%

75%

70%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1

2020

In m²

1. 000

1. 000

1. 000

1. 000

1. 000

1. 000

1. 000
   0

Q1 2020 new lettings & renegociations

New lettings (single tenant > 5 000 m²)

Renegociations

	Other new lettings		ZIN
				70 000 m²
				Paradis Express
				10 900 m²
		Quatuor			Brederode
		22 000 m²			Corner
		Eupen			7 000 m²
		7 000 m²

						9,800 m²
2014	2015	2016	2017	2018	2019	Q1 2020

1 year

3 months

23

24

▪	Brussels CBD, Centre		▪	Brussels CBD, North
▪	Delivery 2020		▪	Delivery Q1 2021
▪	Total construction cost: €22 M		▪	Total construction cost: €158 M
▪	Yield: ±5.5%		▪	Yield: >5.3%

▪	Liège Guillemins		▪	Brussels CBD, North
▪	Delivery 2021		▪	Delivery June 2023
▪	Total construction cost: €51 M (offices)		▪	Total construction cost: €375 M
▪	Yield: >6%		▪	Yield on all functions: 4.5%

• Brussels decentralised
• Delivery in 2023
• Total construction cost to be committed: €50 M

*Based on committed ongoing projects.	25
Yields calculated on total investment cost.
Delivery dates and investment amounts excluding COVID-19 impact.

26

27

▪	Brussels CBD		▪	Brussels CBD		▪	Brussels CBD
▪	2,300 m²		▪	3,300 m²		▪	2,100 m²
▪	Open since Q1 2013		▪	Open since Q4 2014		▪	Open since Q4 2016

▪	GD of Luxembourg		▪	Brussels decentralized
		▪	Brussels periphery
▪	2,200 m²		▪	4,300 m²		▪	2,600 m²
▪	Open since Q2 2018		▪	Open since Q2 2018		▪	Open since Q4 2019

* A space is considered as mature after 3 years of existence.	28

▪	Brussels CBD		▪	Brussels CBD		▪	Brussels CBD
▪	7,200 m²		▪	9,000 m²		▪	+ 1.700 m²
▪	Opening in 2020		▪	Opening in 2021		▪	Opening in 2020

▪	Liège		▪	Brussels CBD		▪	Brussels CBD
▪	4,300 m²		▪	10,000 m²		▪	+ 1.800 m²
▪	Opening in 2021		▪	Opening in 2021		▪	Opening in 2020

* The coworking spaces planned in the Befimmo buildings are generally fitted out by Befimmo (real-estate operator) and handed over to Silversquare as "turnkey" premises.	29
Silversquare (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.
Delivery dates and investment amounts excluding COVID-19 impact.

Offices as at 31.03.2020	Fair value	% of the	like-for-like	Gross intial
	(in € million)	portfolio	change	yield
			(change over
			the quarter)
Brussels CBD and similar	1 345.1	47.5%	-0.30%	4.9%
Brussels decentralised	83.6	3.0%	0.06%	8.2%
Brussels periphery	121.0	4.3%	-0.29%	7.9%
Flanders	472.1	16.7%	-0.62%	6.3%
Wallonia	231.9	8.2%	0.37%	4.7%
Luxembourg city	143.2	5.1%	3.34%	3.9%
Properties available for	2 396.9	84.6%	-0.08%	5.4%
lease
Properties that are being
constructed or developed	437.3	15.4%	0.76%
for own account in order to
be leased
Investment properties	2 834.2	100.0%	0.05%
Total	2 834.2	100.0%

* Experts point out that valuations as at 31 March 2020 are reported on the basis of "material valuation uncertainty" as provided for in the RICS guidelines	31

50%

38.7%

40%

30%

20%

2015

2016

2017

2018

2019

Q1 2020

3%
					2%
2%
1%
0%
2015	2016	2017	2018	2019	Q1 2020

32

		Covered USPP/EUPP maturity		Covered banking debt maturity
200		Banking debt		USPP/EUPP
180

160

140

120

100

80

60

40

20

0

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Q2 2026

Q3 2026

Q4 2026

Q1 2027

Q2 2027

Q3 2027

Q4 2027

Q1 2028

1.600
1.400	USPP/EUPP	Sales of receivables
Bilateral bank lines (used)	Commercial paper*
	Bilateral bank lines (back up CP)	Bilateral bank lines (reserve)	317	Financing
1.200	Amortizing loans		reserve
1.000		CP with full
317	back-up	317
800		bank lines
600	256		256
	50		50
400				34% of
200	475		475	total
				financing
0
	Debt		Financing

• Financing needs covered until the end of 2021 (at constant perimeter)
• Weighted average duration of financing:
  4.8 years
• Confirmed credit facilities:
  €1,416 million (of which 66% in use)
• Large remaining headroom to covenants
• BBB/Stable/A-2rating by S&P (Sept. '19)
• Extension of hedging policy up to 20 years
• All of Befimmo's short-term commercial paper is covered by long-term bank back-up lines.

33

• With confirmed back-up bank lines in excess of one year. Information as at 31 March 2020 or most recent information.

• Belgian specialist in work environments (24 year track-record)
• High quality portfolio in Central Business District locations
• Network of a variety of workspace solutions - full flexibility in time, space and facilities
• Providing smart and sustainable places to work, meet, share and live
• Proactive asset management to maintain high occupancy
• Strong office development pipeline (78% pre-let)
• Strong Silversquare coworking pipeline to develop BeLux office network
• Portfolio rotation: disposals to maintain high quality portfolio and crystalize values value add investments with high redevelopment potential
• Ambition to be a front-runner and example in its business based on a client-centric approach
• Innovation: continuous tracking of business drivers
  (new technologies, digital revolution, talent attraction, work-life balance, well-being, metropolization, mobility and environmental concerns)
• CSR: fully integrated in 6 strategic axes, action plan with KPI's until 2030

▪ Future focused team

35

Thank you!

Happy to answer your questions!

36

BENOÎT DE BLIECK

• CEO of Befimmo since 1999
• Extensive experience (38 years) in various businesses across the real estate value chain (contracting, development, asset investment and management)
• Fellow member of the Royal Institution of Chartered Surveyors (RICS)
• Member of the board of the Belgian Professional Union of the Real-Estate Sector (UPSI)

LAURENT CARLIER

• CFO of Befimmo since 2006
• 20 years of experience as Finance Director
• President of the BE-REIT association (Belgian REITs)
• Member of the EPRA Reporting & Accounting Committee

CAROLINE KERREMANS

• Head of IR & Communication since 2013
• 11 years of experience in IR and communication (of which 9 years in real estate)
• Member of the EPRA IR Committee

37

• Building and environmental permit delivered in Q1 2020
• 70,000 m² of offices
• Offices 100% pre-let
• Multifunctional site (in addition to offices: 5,000 m² of coworking, 111 apartments, 240 hotel rooms, sports, leisure, restaurant, rooftop, etc.)
• Construction cost (all functions) of €375 million
• Yield on total investment of 4.5%
• Completion in 2023
• "be.exemplary award 2019" category "Big private projects"

39

• 60,000 m² of offices
• 50% to let
• Multifunctional site
• Construction cost (all functions) of €158 million
• Yield on total investment > 5.3%
• Completion in 2021
• Take a look =>

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• 21,000 m² of offices
• 85% pre-let
• Multifunctional site
• Construction cost (offices) of €51 million
• Yield on total investment > 6%
• Completion in 2021

41

Brussels office market	31.12.2019	31.12.18	31.12.2017	31.12.2016
Take-up (m²)	543 000	361 000	399 513	441 942
Vacancy rate (%)	7.57%	7.98%	8.78%	9.12%
Prime rent (€/m²/yr)	320	315	305	275
Investment volume offices (€)	2.1 billion	1.9 billion	1.4 billion	1.5 billion
Prime yield (%)	4.10%	4.25%	4.40%	4.50%

Liège

42

(in € thousand)	31.12.2019	31.12.2018
Net rental result	134 786	143 566
Net property charges	-14 347	-13 588
Property operating result	120 440	129 978
Corporate overheads	-14 559	-14 282
Other operating income & charges	-1 177	-447
Operating result before result on portfolio	104 703	115 249
Operating margin	77.7%	80.3%
Gains or losses on disposals of investment properties	12 961	343
Net property result	117 664	115 592
Financial result (excl. changes in fair value of financial assets and liabilities)	-22 801	-20 545
Corporate taxes	-741	-566
Deferred taxes	-472	-219
Net result before changes in fair value of investment properties and financial assets and	93 650	94 263
liabilities
Changes in fair value of investment properties	109 882	-5 514
Changes in fair value of financial assets and liabilities	-22 921	-5 901
Changes in fair value of investment properties & financial assets and liabilities	86 961	-11 415
Net result	180 611	82 628
EPRA earnings	83 605	94 139
Net result (in € per share)	7.03	3.24
EPRA earnings (in € per share)	3.26	3.68

• Net rental result -6.1% YoY: mainly expiry of lease in WTC 2
• Like-for-like+4.0% YoY:
  effect of new leases and indexation
• Mainly linked to expiry of gain on charges WTC 2
• Capital gain on disposals (mainly Pavilion)
• One off impact of restructuring of fixed rate sales of receivables of Pavilion to market rates
• Strong increase: thanks to capital gains and positive fair value change on investment properties (partially offset by negative fair value change of hedgings due to declining interest rates)
• In line with forecast

43

(in € thousand)	31.03.2020	31.03.2019
Net rental result	35 438	33 710
Net rental result excluding spreading	35 320	33 022
Spreading of gratuities/concessions	118	688
Net property charges	-3 906	-4 943

Property operating result	31 532	28 767
Corporate overheads	-4 613	-4 015
Other operating income & charges	-107	-688
Operating result before result on portfolio	26 812	24 064
Operating margin	75.7%	71.4%
Gains or losses on disposals of investment properties	-	292
Net property result	26 812	24 356
Financial result (excl. changes in fair value of financial assets and liabilities)	-5 026	-5 387
Corporate taxes	-284	-248
Deferred taxes	-197	-408
Net result before changes in fair value of investment properties and financial assets and	21 305	18 313
liabilities
Changes in fair value of investment properties	1 487	68 357
Changes in fair value of financial assets and liabilities	-11 547	-14 075
Changes in fair value of investment properties & financial assets and liabilities	-10 061	54 281
Net result	11 244	72 595
EPRA earnings	21 502	18 430
Net result (in € per share)	0.42	2.84
EPRA earnings (in € per share)	0.79	0.72

44

(in € million)	31.12.2019	31.12.2018
Investment and held for sale properties	2 814.8	2 655.3
Other assets	97.4	79.8
Total assets	2 912.3	2 735.1
Shareholders' equity	1 603.9	1 443.2
Financial debts	1 134.7	1 178.5
non current	637.6	735.5
current(a)	497.2	443.0
Other debts	173.6	113.4
Total equity & liabilities	2 912.3	2 735.1
LTV	39.0%	43.6%

(a) 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	45
paper.

• Extension of hedging policy up to 20 years

Annual average		2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031	2039
	Notional	47	20	0	0	0	0	0	0	0	0	0	0	0
	(€ million)
CAP
Average rate (a)	0.9%	1.2%	1.2%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
	(in %)
	Notional	20	20	0	0	0	0	0	0	0	0	0	0	0
	(€ million)
FLOOR
Average rate (a)	0.5%	0.5%	0.5%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
	(in %)
Fixed-rating	Notional	1109	1072	1083	1025	958	881	741	545	252	150	125	125	62
(€ million)
financing
(incl. IRS)	Average rate (a)	0.8%	0.8%	0.8%	0.8%	0.8%	0.8%	0.8%	0.8%	0.7%	0.6%	0.6%	0.6%	0.4%
	(in %)

(a) Average fixed rate excluding credit margin and including options on swaps (SWAPTIONS) considered at the maximum rate.

46

Publication of the half-yearly results and online publication of the Half-Yearly Financial Report 2020	Friday 24 July 2020(a)
Interim statement as at 30 September 2020	Thursday 28 October 2020(b)
Payment of the interim(c) dividend of the 2019 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(b)
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(d) dividend of the 2019 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

(a) Publication before opening of the stock exchange.
(b) Publication after closing of the stock exchange.	47
(c) Subject to a decision of the Board of Directors.

1. Subject to a decision of the Ordinary General Meeting.

• Specific regulation and high degree of transparency, accounts in IFRS
• Real-estateassets quarterly valued by independent real-estate experts
• Controlled by the Financial Services and Markets Authority (FSMA)
• Risk diversification: maximum 20% of portfolio invested in one property unit
• Listing on stock exchange, minimum free float of 30%
• Debt ratio <65% (internal target: Loan-To-Value ratio around 50%)
• Distribution of 80% of "cash flows" as dividend
• "Tax transparency": reduced base for corporation tax, taxation at investor level (withholding tax)
• Partnerships allowed

48

This presentation is made for the sole benefit of financial analysts and qualified institutional investors and is not to be considered as an incentive to invest or as an offer to acquire Befimmo shares under any laws of European countries or the USA or Canada.

The information provided herein is extracted from Befimmo's annual reports, half-yearly reports and press releases but does not reproduce the whole content of these documents, which prevail and ought to be analyzed before any recommendation or operation regarding Befimmo shares is made.

This presentation contains statements and estimates about anticipated future performances. These statements and estimates are not to be construed as implying a commitment from Befimmo to achieve them. Whether or not they will actually be achieved depends on a number of factors which are beyond the reach of Befimmo's control, such as developments in the real estate and financial markets.

Such statements and estimates are based on various assumptions and assessments of known and unknown risks, uncertainties and other factors, which were deemed reasonable when made but may or may not prove to be correct.

Actual events are difficult to predict and may depend upon factors that are beyond the Company's control. Therefore, actual results, financial condition, performances or achievements of Befimmo, or market results, may turn out to be materially different from any future results, performances or achievements expressed or implied by such statements and estimates.

Given these uncertainties, investors are invited not to unduly rely on these forward-looking statements and estimates. Furthermore, forward- looking statements and estimates only speak as of the date of this presentation.

Befimmo disclaims any obligation to update any such forward-looking statements or estimates to reflect any change in the Company's expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement or estimate is based , except to the extent required by the Belgian law and in particular the Royal Decree of November 14, 2007. In no event Befimmo may be held liable for obligations which are incumbent on financial analysts and disclaims any liability in that regard.

Any reference to the portfolio, assets, figures or activities of Befimmo should be understood on a consolidated basis, including those of its subsidiaries, unless it is clear from the context or expressly stated that the contrary is intended.

49

Befimmo SA

Chaussée de Wavre 1945, 1160 Brussels

[e-mail]

[e-mail]

[e-mail]

Tel.: [phone]

www.befimmo.be

50