Cofinimmo N : Calculation details of the EPRA Key Performance Indicators at 30.06.2020

Calculation details of the EPRA performance indicators at 30.06.2020

EPRA Earnings (total amount and amount per share)

Definition: Current result from strategic operational activities.

Purpose: A key measure of a company's underlying operating results and an indication of the extent to which current dividend payments are supported by earnings.

(x 1,000 EUR)	30.06.2020		30.06.2019
Net earnings per financial statements	59,798	70,997
To exclude:
- Change in the fair value of investment properties and assets held	5,801		-26,711
for sale
(i) Change in the fair value of investment properties	-7,697		-35,073
(ii) Writeback of rents earned but not expired (other result on	9,141		1,750
the portfolio)
(iii) Others (other result on the portfolio)	4,357		6,612
- Gains or losses on disposals of investment properties and other	-3,350		-3,001
non-financial assets
- Losses on goodwill (other result on the portfolio)	10,120		0
- Change in the fair value of financial instruments	19,112		32,222
- Costs & interests on acquisitions and joint ventures	0		0
- Deferred taxes in respect of EPRA adjustments	1,469		568
(other result on the portfolio)
- Adjustments related to joint ventures	0		461
- Minority interests in respect of the adjustments above	-4,743	25
EPRA Earnings	88,206	74,560
Number of shares	25,934,821	23,094,406
EPRA Earnings per share (in EUR/share)	3.40	3.23

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EPRA Diluted Earnings (total amount and amount per share)

Definition: Current result from strategic operational activities, taking into account the financial instruments with a potential dilutive impact at the closing date.

Purpose: A key indicator of a company's underlying operating results, taking into account the financial instruments with a potential dilutive impact at the closing date, and an indicator of the extent to which dividend payments are corroborated by the results.

(x 1,000 EUR)	30.06.2020	30.06.2019
Net earnings per financial statements	59,798	70,997
To exclude:	0
- Change in the fair value of investment properties and assets held	5,801	-26,711
for sale
(i) Change in the fair value of investment properties	-7,697	-35,073
(ii) Writeback of rents earned but not expired (other result on	9,141	1,750
the portfolio)
(iii) Others (other result on the portfolio)	4,357	6,612
- Gains or losses on disposals of investment properties and other	-3,350	-3,001
non-financial assets
- Losses on goodwill (other result on the portfolio)	10,120	0
- Change in the fair value of financial instruments	19,112	32,222
- Costs & interests on acquisitions and joint ventures	0	0
- Deferred taxes in respect of EPRA adjustments	1,469	568
(other result on the portfolio)
- Adjustments related to joint ventures	0	461
- Minority interests in respect of the adjustments above	-4,743	25
EPRA Earnings	88,206	74,560
- Effect of the exercise of options, convertible debts or other	0	0
equity instruments
EPRA Diluted earnings	88,206	74,560
Diluted number of shares	25,951,741	23,115,248
EPRA Diluted Earnings per share (in EUR/share)	3.40	3.23

EPRA Net Asset Value metrics

Definition : Net Asset Value (NAV) adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 2020.

Utility: Makes adjustments to the NAV per the IFRS financial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, under three different scenarios:

• The EPRA Net Reinstatement Value assumes that entities never sell assets and provide an estimation of the value required to rebuild the entity.
• The EPRA Net Tangible Assets assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.
• The EPRA Net Disposal Value represents the value accruing to the company's shareholders under an

asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax.

For the sake of continuity and comparison with data published in the past, the EPRA NAV and EPRA NNNAV, concepts abandoned by the BPR Guidelines, will still be calculated and published quarterly in 2020.

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As at 30.06.2020:

(x 1,000 EUR)	EPRA NRV	EPRA NTA	EPRA NDV	EPRA NAV	EPRA
					NNNAV
IFRS Equity attributable to	2,511,326	2,511,326	2,511,326	2,511,326	2,511,326
shareholders
Include/Exclude:
i) Hybrid instruments	0	0	0	0	0
Diluted net asset value (NAV)	2,511,326	2,511,326	2,511,326	2,511,326	2,511,326
Include:
ii.a) Revaluation of IP (if IAS 40	0	0	0	0	0
cost option is used)
ii.b) Revaluation of IPUC (if IAS 40	0	0	0	0	0
cost option is used)
ii.c) Revaluation of other non-	0	0	0	0	0
current investments
iii) Revaluation of tenant leases	91,297	91,297	91,297	91,297	91,297
held as finance leases
iv) Revaluation of trading	0	0	0	0	0
properties
Diluted NAV at Fair Value	2,602,623	2,602,623	2,602,623	2,602,623	2,602,623
Exclude:
v) Deferred tax in relation to fair	44,086	44,086		44,086
value gains of IP
vi) Fair value of financial	87,322	87,322		87,322
instruments
vii) Goodwill as a result of	-35,782	-35,782	-35,782	-35,782
deferred tax
viii.a) Goodwill as per the IFRS		-11,045	-11,045
balance sheet
viii.b) Intangibles as per the IFRS		-1,156
balance sheet
Include:
ix) Fair value of fixed interest rate			-5,840		-5,840
debt
x) Revaluation of intangibles to	0
fair value
xi) Real estate transfer tax	187,924	0
NAV	2,886,174	2,686,050	2,549,956	2,698,250	2,596,783
Fully diluted number of shares	27,033,753	27,033,753	27,033,753	27,033,753	27,033,753
NAV per share (in EUR/share)	106.76	99.36	94.32	99.81	96.06

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As at 31.12.2019:

(x 1,000 EUR)	EPRA NRV	EPRA NTA	EPRA NDV	EPRA NAV	EPRA
					NNNAV
IFRS Equity attributable to	2,451,335	2,451,335	2,451,335	2,451,335	2,451,335
shareholders
Include/Exclude:
i) Hybrid instruments	0	0	0	0	0
Diluted net asset value (NAV)	2,451,335	2,451,335	2,451,335	2,451,335	2,451,335
Include:
ii.a) Revaluation of IP (if IAS 40	0	0	0	0	0
cost option is used)
ii.b) Revaluation of IPUC (if IAS 40	0	0	0	0	0
cost option is used)
ii.c) Revaluation of other non-	0	0	0	0	0
current investments
iii) Revaluation of tenant leases	78,349	78,349	78,349	78,349	78,349
held as finance leases
iv) Revaluation of trading	0	0	0	0	0
properties
Diluted NAV at Fair Value	2,529,684	2,529,684	2,529,684	2,529,684	2,529,684
Exclude:
v) Deferred tax in relation to fair	42,807	42,807		42,807
value gains of IP
vi) Fair value of financial	70,995	70,995		70,995
instruments
vii) Goodwill as a result of	-43,515	-43,515	-43,515	-43,515
deferred tax
viii.a) Goodwill as per the IFRS		-13,432	-13,432
balance sheet
viii.b) Intangibles as per the IFRS		-935
balance sheet
Include:
ix) Fair value of fixed interest rate			-10,317		-10,317
debt
x) Revaluation of intangibles to	0
fair value
xi) Real estate transfer tax	180,274	0
NAV	2,780,245	2,585,604	2,462,420	2,599,971	2,519,367
Fully diluted number of shares	25,822,662	25,822,662	25,822,662	25,822,662	25,822,662
NAV per share (in EUR/share)	107.67	100.13	95.36	100.69	97.56

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EPRA Net Initial Yield (NIY) and EPRA 'topped-up' NIY

Definition: Annualised gross rental income based on the passing dates at the closing date of the financial statements, less property charges, all divided by the market value of the portfolio, plus the estimated transfer costs and duties at the time of the hypothetical disposal of investment properties. The EPRA 'topped-up' NIY incorporates an adjustment compared to the EPRA NIY relating to the expiry of the rent-free periods and other incentives.

Purpose: This indicator should help investors to judge how the valuation of portfolio X compares with that of portfolio Y.

(x 1,000,000 EUR)	30.06.2020	31.12.2019
Investment properties at fair value	4,460	4,247
Assets held for sale	-6	-29
Development projects	-175	-122
Properties available for lease	4,279	4,097
Estimated transfer costs and rights resulting from the hypothetical	183	176
disposal of investment properties
Gross up completed property portfolio valuation	4,462	4,273
Annualised gross rental revenues	266	256
Property charges	-12	-15
Annualised net rental revenues	254	241
Rent-free periods expiring within 12 months and other lease incentives	0	0
Topped-up annualised net rental income	254	241
EPRA NIY	5.7%	5.6%
EPRA 'Topped-up' NIY	5.7%	5.6%

EPRA vacancy rate

Definition: Estimated Rental Value (ERV) of vacant space divided by the ERV of the total portfolio.

Purpose: A 'pure' indicator (%) of vacant space in investment property, based on the ERV.

(x 1,000 EUR)	30.06.2020	31.12.2019
Rental space (in m²)	2,055,165	1,964,785
Estimated Rental Value (ERV) of vacant space	6,801	7,904
ERV of the total portfolio	266,129	259,739
EPRA vacancy rate	2.6%	3.0%

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EPRA Cost ratios

Definition: Administrative/operational expenses per the IFRS financial results, including or not the direct costs of unlet properties, all divided by the gross rental revenues less ground rent costs.

Purpose: A key measure to enable meaningful measurement of the changes in a company's operating costs.

(x 1,000 EUR)	30.06.2020	31.12.2019
Administrative/operational expenses per financial statements	-25,137	-52,663
Cost of rent-free periods	-2,420	-4,483
Charges and taxes not recovered from the tenant on let properties	-2,093	-6,392
Of which:
- Charges and taxes not recovered from the tenant on let properties	-2,981	-6,392
according to the income statement
- IFRIC 21 effect	888	-
Net redecoration expenses	272	-1,001
Technical costs	-1,411	-5,939
Commercial costs	-1,265	-1,808
Taxes and charges on unlet properties	-1,599	-3,579
Of which:
- Taxes and charges on unlet properties according to the income	-2,457	-3,579
statement
- IFRIC 21 effect	858	-
Corporate management costs	-16,621	-29,460
Of which:
- Corporate management costs according to the income statement	-17,500	-29,460
- IFRIC 21 effect	879	-
Share of joint venture expenses	-17	-37
EPRA Costs (direct vacancy costs included)	-25,153	-52,699
Direct vacancy costs	3,692	9,971
EPRA Costs (direct vacancy costs excluded)	-21,461	-42,729
Gross rental income less ground rent costs	125,180	237,085
Share of joint venture rental revenues	295	713
Gross rental revenues	125,475	237,797
EPRA Cost ratio (direct vacancy costs included)	20.0%	22.2%
EPRA cost ratio (direct vacancy costs excluded)	17.1%	18.0%

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