INTERIM STATEMENT ON THE THIRD QUARTER 2009

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Cecily Floyd
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1 Regulated information embargo 02/11/2009, 17:45 INTERIM STATEMENT ON THE THIRD QUARTER 2009 of the board of directors for the period to Operating distributable result improves by 16 % 1 Positive change in fair value of the real estate portfolio of 0,6 % in the third quarter 2009 Expected gross dividend between 2,40 and 2,45 per share (gross dividend yield 6,5 % to 6,7 % compared to the share price on 30 September 2009) Antwerp, 2 November OPERATING ACTIVITIES OF THE THIRD QUARTER 2009 During the third quarter 2009, the real estate portfolio of Intervest Retail has known a positive change in fair value of 1,5 million or 0,6 %. The occupancy rate 2 of the real estate portfolio amounts to 99,3 % on 30 September 2009 and remains unchanged with regard to 31 December REAL ESTATE PATRIMONY Fair value of the portfolio ( 000) Investment value of the portfolio ( 000) Total lettable surface area (m²) Occupancy rate (%) 99,3 % 99,3 % 99,2 % On 30 September 2009, the fair value of the real estate portfolio amounts to 329,9 million ( 327,4 million on 31 December 2008). This increase by 2,5 million compared to 31 December 2008 is mainly the combined effect of 3,4 million investments in the existing portfolio (buildings in Andenne, Malines and Ghent), a limited negative change in fair value of the real estate portfolio ( 0,3 million for the first nine months of 2009) and the sale of two non-strategic buildings ( 0,6 million) 3. 1 Compared to the third quarter The occupancy rate is calculated as the ratio of the rental income to the same rental income plus the estimated rental value of the vacant locations for rent. 3 The buildings have been sold for 0,7 million, representing a gain of approximately 20 % compared to the fair value as at 31 December

2 2. FINANCIAL RESULTS 2.1. The third quarter 2009 RESULTS ( 000) Net rental income Property management costs and income 0-5 Property result Property charges General costs and other operating costs and income Operating property result before result on portfolio Result on portfolio Operating result Financial result (excl. revaluation IAS 39) Revaluation financial derivatives (IAS 39) Net profit Operating distributable result Result on portfolio Revaluation financial derivatives (IAS 39) and other non-distributable elements

3 Analysis of the results 4 During the third quarter 2009, the net rental income of Intervest Retail amounts to 5,1 million ( 4,9 million). This increase by 0,2 million results from rental renewals and indexations within the existing real estate portfolio. The property charges of the property investment fund increase slightly during the third quarter 2009 by 0,1 million to 0,6 million, mainly because of the commercial costs for Shopping Julianus in Tongeren. Through the growth of the net rental income, partly compensated by the increase of the property charges and general costs, the operating result before result on portfolio increases by 0,1 million to 4,3 million ( 4,2 million) during the third quarter For the third quarter 2009, the result on portfolio of the property investment fund amounts to 1,5 million ( 3,4 million) as a result of positive changes in the fair value in the commercial portfolio. The financial result (excluding the revaluation of financial derivatives) amounts to 1,2 million (- 1,5 million). The decrease of the financing cost results from the current low interest rates. For the third quarter 2009, the average interest rate of the property investment fund amounts to approximately 3,6 % (5,0 %). SHOPPING JULIANUS TONGEREN Currently, 63 % of the loan portfolio consist of credit facilities with a fixed interest rate or fixed by means of interest rate swaps with a remaining duration of 4 years in average. During the third quarter 2009, a credit facility of 20 million, expiring on 31 December 2009, has already been prolonged for a period of 2 years (till 31 December 2011) at market conditions, for an amount of 25 million. Therefore, on 30 September 2009, 68 % of the credit facilities are long-term financings, with an average remaining duration of 2,7 years. On 30 September 2009, the debt ratio of the property investment fund amounts to 40 % (39 % on 31 December 2008). The revaluation of financial derivatives comprises the change of the market value of the interest rate swap which, in accordance with IAS 39, can not be classified as a hedge instrument, for an amount of - 0,5 million ( 0,1 million). For the third quarter 2009, the net profit of the property investment fund Intervest Retail amounts to 4,0 million ( 6,0 million) and can be divided in: an operating distributable result 5 of 3,0 million compared to 2,6 million for the same period of prior year. This increase by 16 % comes from an improved operating result (before the result on portfolio) and lower financing costs. This represents for the third quarter an operating distributable result per share of 0,60 ( 0,52). a result on portfolio of 1,5 million compared to 3,4 million for the same period of prior year. This result comes mainly from the value increase of a building located on the Avenue Louise 7 in Brussels. Upon conclusion of a favourable lease contract, the value of the building increased by 18 % during the third quarter of a revaluation of financial derivatives in accordance with IAS 39 and other non-distributable elements for an amount of - 0,5 million. 4 Between brackets comparable figures for the third quarter 2008 ( ). 5 As legally speaking only the profit of the statutory annual accounts can be distributed and not the consolidated profit the profit distribution has been based on the statutory results, taking into account non-distributable elements. 3

4 2.2. Cumulative figures for the first nine months of 2009 RESULTS ( 000) Operating distributable result Result on portfolio Revaluation financial derivatives (IAS 39) and other non-distributable elements Net profit Result per share ( ) Number of shares entitled to dividend Net profit ( ) 1,71 5,41 Operating distributable result for the first nine months ( ) 1,84 1,58 During the first nine months of 2009, the operating distributable result of Intervest Retail increases to 9,3 million ( 8,0 million). This increase by 16 % gives per share for the first nine months of 2009 an operating distributable result of 1,84 compared to 1,58 for the same period of prior year, which is in accordance with the earlier formulated expectations for the financial year The result on portfolio for the first nine months of 2009 shows a lower positive change in fair value than during the same period of prior year as a result of the adjusted valuation by the independent property experts, reflecting the modified market circumstances on the real estate and financial markets. DATA PER SHARE Number of shares Net asset value (fair value) per share ( ) 38,56 39,23 40,93 Net asset value (investment value) per share ( ) 40,18 40,85 42,58 Share price on closing date ( ) 36,81 28,49 30,54 Discount to net asset value (fair value) (%) - 5 % - 27 % - 25 % On 30 September 2009, the net asset value (fair value) of the share amounts to 38,56 ( 39,23 on 31 December 2008). Given that the share price of Intervest Retail on 30 September 2009 amounts to 36,81, the share is quoted with a discount of 5 % compared to the net asset value (fair value). 4

3. OUTLOOK FOR 2009 As already mentioned in the half-yearly financial report of the property investment fund, Intervest Retail expects also on the basis of its financial results and forecasts as at

5 3. OUTLOOK FOR 2009 As already mentioned in the half-yearly financial report of the property investment fund, Intervest Retail expects also on the basis of its financial results and forecasts as at 30 September 2009 that, despite the current economic context, the dividend per share for the financial year 2009 will increase compared to the dividend of 2008 that amounted to 2,14 per share. The operating distributable result of Intervest Retail amounts for the first nine months of 2009 to 9,3 million or an increase of approximately 16 % compared to the first nine months of 2008 ( 8,0 million). Therefore, Intervest Retail expects to offer its shareholders for the financial year 2009 a gross dividend between 2,40 and 2,45 per share. This higher dividend results from a solid rental growth in the existing portfolio and from an interest rate policy where one third of the credit facilities has always a variable interest rate. Currently, Intervest Retail benefits to a large extent from historically low interest rates. RED MARKET RETAIL PARC ANDENNE Based on the share price on 30 September 2009 ( 36,81) this represents a gross dividend yield between 6,5 % and 6,7 %. Note to the editors: for more information, please contact: INTERVEST RETAIL SA, public property investment fund under Belgian law, Jean-Paul Sols - CEO or Inge Tas - CFO, tel: , 5

6 ANNEXES CONSOLIDATED INCOME STATEMENT (9 months) in thousands Rental income Rental-related expenses NET RENTAL INCOME Property management costs and income -1-7 PROPERTY RESULT Technical costs Commercial costs Charges and taxes on unlet properties Property management costs Other property charges -3-3 PROPERTY CHARGES OPERATING PROPERTY RESULT General costs Other operating income and costs OPERATING RESULT BEFORE RESULT ON PORTFOLIO Result on sales of investment properties Changes in fair value of investment properties and development projects OPERATING RESULT Financial income Interest charges Other financial charges Revaluation financial derivatives (IAS 39) FINANCIAL RESULT RESULT BEFORE TAXES TAXES 5-51 NET PROFIT Note: Operating distributable result Result on portfolio Revaluation financial derivatives (IAS 39) and other non-distributable elements Attributable to: Equity holders of the parent Minority interests 0 0 6

7 STATEMENT OF OTHER COMPREHENSIVE INCOME (9 months) in thousands NET PROFIT Changes in fair value of financial assets and liabilities Comprehensive income of the first nine months Attributable to: Equity holders of the parent Minority interests 0 0 7

8 CONSOLIDATED BALANCE SHEET ASSETS in thousands Non-current assets Intangible assets Investment properties Other tangible assets Trade receivables and other non-current assets Current assets Assets held for sale Trade receivables Tax receivables and other current assets Cash and cash equivalents Deferred charges and accrued income TOTAL ASSETS SHAREHOLDERS EQUITY AND LIABILITIES in thousands Shareholders equity Shareholders equity attributable to the shareholders of the parent company Share capital Share premium Reserves Result Impact on fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties Changes in fair value of financial assets and liabilities Minority interests 3 3 Liabilities Non-current liabilities Provisions Non-current financial debts Credit institutions Financial lease 24 4 Other non-current liabilities Current liabilities Current financial debts Credit institutions Financial lease 2 5 Trade debts and other current debts Other current liabilities Accrued charges and deferred income TOTAL SHAREHOLDERS EQUITY AND LIABILITIES Including development projects. 8

REAL ESTATE PATRIMONY Total lettable surface area (m²) Debt ratio RD 21 June 2006 (max. 65%) (%) 39 % 43 %

REAL ESTATE PATRIMONY Total lettable surface area (m²) Debt ratio RD 21 June 2006 (max. 65%) (%) 39 % 43 % Regulated information embargo 03/11/2008, 17:45 Interim statement for the third quarter of 2008 of the board of directors covering the period 01.07.2008 to 30.09.2008 Positive results for Intervest Retail