NSI N : Announcement - Business update following the Corona outbreak

FINANCING AND LIQUIDITY

On the 6th of March NSI irrevocably agreed on the acquisition of a €34 million office asset in Amsterdam-Sloterdijk. Transfer of the asset is expected to complete before the quarter end, at which time we will provide more detailed information.

NSI has also agreed to issue a new €40 million 10-year note next week to a new US institutional investor at a margin in line with earlier issues. This will extend the average maturity of our debt, lower the average cost of debt and diversify the maturity profile and investor base.

We continue to move forward with the preparatory works on the development pipeline. The costs related to this are limited in 2020. It is worth highlighting that at this stage none of the large development capex plans are committed. The refurbishments at Lange Voorhout in The Hague and Donauweg in Amsterdam are progressing according to plan. The remaining cash out on these two projects is circa € 5 million.

The net effect of the above acquisition, the disposal of all three assets held-for-sale (as per year-end) during the current quarter and the Q1 earnings will result in a very comfortable LTV of circa 28% at the end of March.

The liquidity position at the end of March will be even better in comparison with the end of 2019, with circa €280 million of cash and committed undrawn credit lines available for the business. We have no major loan maturities until 2023. A small €25 million secured loan is due in July 2020. As planned, subject to AGM approval, on 19 May we will pay the earlier communicated final dividend of € 1.12 per share. As usual, we are offering shareholders the option to take the dividend in shares.