Press release The real estate value of Intervest Retail continues to grow Antwerp, 31 October 2007 - Public property investment fund Intervest Retail releases today its results on 30 September 2007. (comparable figures 30 September 2006 between brackets) 1 The growing demand for commercial real estate on the rental and investment market persists. Rental renewals in the commercial portfolio of Intervest Retail are hence concluded at higher rents. Consequently, the real estate portfolio of the property investment fund knows during the first nine months of 2007 a revaluation of 15 million of 5 %. 2 On 30 September 2007, the total occupancy rate of the portfolio amounts to 96,2 % (95,5 % end 2006). Without taking into account Factory Shopping Messancy the occupancy rate amounts to 99,1 %. The sale of Factory Shopping Messancy has been further organised during the third quarter of 2007. Negotiations are ongoing with several interested parties. During the first nine months of 2007, the net rental income decreases to 12,6 million ( 14,1 million) as a result of the sale of properties mid 2006, the increase of the financials compensations for the tenants of Factory Shopping Messancy, the growing number of doubtful debtors in Factory Shopping Messancy and the one-time indemnity in the third quarter of prior year from the property developer of Factory Shopping Messancy ( 0,8 million related to rental income). The property charges amount to 2,9 million ( 2,6 million). The rise is due to the increasing operating costs in Factory Shopping Messancy. It concerns principally marketing and service charges which, from a commercial point of view, can not be charged to the tenants. The general costs decrease to 0,7 million during the first nine months of 2007 ( 0,9 million). The operating result before the result on the portfolio amounts to 8,8 million ( 10,7 million). The decrease of 1,9 million is the direct result of the lower net rental income and the increasing property charges. During the third quarter of 2007, Intervest Retail has sold a inner-city shop located in Charleroi with a surface area of 948 m², with a gain in value of 0,6 million compared to the fair value of 2,4 million. The positive change of the fair value of the entire real estate portfolio of the investment property fund amounts to 15,5 million on 30 September 2007 compared to 3,4 million on 30 September 2006. The financial result amounts to - 3,3 million (- 2,8 million) due to the increase of the interest charges as a result of the rise of the short-term interest rates. Besides, the property investment fund received as a result of the arbitrational judgment against the property developer of Factory Shopping Messancy in the third quarter of 2006 a one-time amount of 0,1 million moratory interests. The net result of the first nine months of 2007 amounts to 21,4 million ( 10,1 million). The important increase of the net result is due to the revaluation of the real estate portfolio in 2007 with 15,5 million compared to 2006 ( 3,4 million). The net result can be divided in a distributable operating result of 5,5 million ( 7,9 million) and the result on the portfolio of 15,9 million ( 2,2 million). On 30 September 2007 this means distributable earnings per share of 1,10 ( 1,56). The fair value of the portfolio on 30 September 2007 amounts to 296 million ( 281 million on 31 December 2006). This rise is mainly the combined effect of the increase in value of the commercial portfolio ( 15 million), the investment in the Julianus project in Tongeren ( 3 million) and the sale of three non strategic properties in 2007 (- 4 million). 1 Intervest Retail is a public property investment fund listed on Euronext Brussels in the Next Prime Segment. 2 The occupancy rate is calculated as the ratio of the actual rental income to the same rental income plus the estimated rental value of the vacant locations for rent. 1
Press release On 30 September 2007 the net asset value (fair value) of the share amounts to 36,51 ( 34,21 on 31 December 2006). Given that the share price on 30 September 2007 is 30,60, the Intervest Retail share is quoted with a discount of 16 % compared to this net asset value (fair value). In accordance with the calculation method of article 6 of the RD of 21 June 2006, the debt ratio amounts to 38 % on 30 September 2007 (39% on 31 December 2006). The net result of the financial year 2007 is negatively influenced by the financial situation in Factory Shopping Messancy. Hence, it is expected for 2007 that the earnings per share will be significantly lower than in 2006. On the basis of the forecast published in the half-year brochure of 2007, the company expects for the entire year 2007 distributable earnings per share around 1,45 (gross dividend). Indeed, the result of 2006 had a one-time positive effect due to the indemnity received from the arbitrational procedure against the property developer of Factory Shopping Messancy ( 1 million). Note to the editors: for more information, please contact: INTERVEST RETAIL SA, Jean-Paul Sols - CEO or Inge Tas - CFO, tel. 03/287.67.87, www.intervest.be 2
Financial accounts 3 CONSOLIDATED INCOME STATEMENT (in 000) 30.09.2007 30.09.2006 Rental income 13.108 14.129 Rental related expenses -557-57 NET RENTAL INCOME 12.551 14.072 Recovery property expenses 0 86 Recovery of charges and taxes normally payable by tenants on let properties 3.465 3.930 Charges and taxes normally payable by tenants on let properties -3.500-3.932 Other rental-related income and expenses -24-3 PROPERTY RESULT 12.492 14.153 Technical costs -233-455 Commercial costs -46-83 Charges and taxes on unlet properties -1.763-1.378 Property management costs -892-728 Other property charges -1-2 PROPERTY CHARGES -2.935-2.646 OPERATING PROPERTY RESULT 9.557 11.507 General costs -749-870 Other current operating income and expenses 39 78 OPERATING RESULT BEFORE RESULT ON THE PORTFOLIO 8.847 10.715 Result on disposals of investment properties 408-1.151 Changes in fair value of investment properties and development projects 15.478 3.398 OPERATING RESULT 24.733 12.962 Financial income 58 121 Interest charges -3.372-2.947 Other financial charges -10-26 FINANCIAL RESULT -3.324-2.852 RESULT BEFORE TAXES 21.409 10.110 NET RESULT 21.409 10.110 Attributable to: Equity holders of the parent 21.409 10.110 Minority interest 0 0 Note: Operating distributable result 5.523 7.863 Result on portfolio 15.886 2.247 3 The figures as at 30 September 2007 are not audited by the statutory auditor. 3
Financial accounts GECONSOLIDATED BALANCE SHEET (in 000) 30.09.2007 31.12.2006 ASSETS Non-current assets 296.364 281.284 Intangible fixed assets 18 24 Investment properties 278.950 266.991 Development projects 16.803 13.851 Other tangible fixed assets 404 400 Financial fixed assets 171 0 Trade receivables and other non-current assets 18 18 Current assets 5.516 6.124 Assets held for sale 0 0 Trade receivables 1.027 1.094 Tax receivables and other current assets 2.946 3.812 Cash and cash equivalents 1.114 1.069 Deferred charges and accrued income 429 149 TOTAL ASSETS 301.880 287.408 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity 185.396 173.726 Shareholders equity attributable to the shareholders of the parent company 185.393 173.723 Capital 97.213 97.213 Share premium 4.183 4.183 Reserves 84.513 68.328 Result 6.401 10.882 Impact on the fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investments properties -7.088-6.789 Changes in fair value of financial assets and liabilities 171-94 Minority interests 3 3 Liabilities 116.484 113.682 Non-current liabilities 72.127 72.250 Provisions 195 195 Non-current financial debts 71.792 71.887 Credit institutions 71.766 71.860 Financial leasing 26 27 Other non-current liabilities 140 168 Current liabilities 44.357 41.432 Current financial debts 37.768 32.741 Credit institutions 37.764 32.728 Financial leasing 4 13 Trade debts and other current debts 2.228 5.110 Other current liabilities 2.608 2.358 Accrued charges and deferred income 1.753 1.223 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 301.880 287.408 4
Key figures 30.09.2007 31.12.2006 30.09.2006 Fair value of the properties ( 000) 295.753 280.842 277.098 Investment value of the properties ( 000) 302.841 287.631 284.025 Number of shares entitled to dividend 5.078.525 5.078.525 5.078.525 Basic earnings per ordinary share (9 months - resp. 1 year) ( ) 4,22 2,42 1,99 Diluted earnings per share (9 months - resp. 1 year) ( ) 4,22 2,42 1,99 Distributable earnings per share (9 months - resp. 1 year) ( ) 1,10 1,97 1,56 Net asset value (fair value) per share ( ) 36,51 34,21 33,74 Net asset value (investment value) per share ( ) 37,90 35,54 35,07 Share price on closing date ( ) 30,60 39,70 37,00 Discount to net asset value (fair value) (%) -16 % 16 % 10 % Debt ratio RD of 21 June 2006 (%) 38 % 39% 39 % 5