Cofinimmo : 2023 Half-year financial report

PRESS RELEASE

REGULATED INFORMATION

Brussels, 28.07.2023, 7:30 a.m. CET

Half-Year Financial Report

Solid results, further divestments and strengthening of equity

within the framework of portfolio transformation

Solid results from a portfolio in transformation showing a 5% increase in the net result from core activities

• group share:

• Net result from core activities - group share of Cofinimmo (Euronext Brussels: COFB) at 114 million EUR (109 million EUR as at 30.06.2022)
• Gross dividend outlook for the 2023 financial year confirmed at 6.20 EUR per share

The cumulative amount of divestments carried out and those already signed and expected to be closed by the end of the financial year amounts to nearly 200 million EUR

• 128 million EUR divestments already completed in the first half-year (in line with the outlook), mainly in office buildings

Investments in healthcare real estate:

• 151 million EUR investments in healthcare real estate in Europe (in line with the outlook)
• With 4.5 billion EUR, healthcare real estate accounts for 73% of the group's consolidated portfolio which reaches 6.2 billion EUR

ESG:

• Cofinimmo is part of the 'Top SBTi 1.5°C ESG Bond Issuers' (selected by Euronext in January 2023) and is included in the new Euronext Bel ESG Index
• Cofinimmo is the only real estate player, among 8 Belgian companies, listed in the 500 Europe's Climate Leaders by the Financial Times
• Two BREEAM certifications obtained in healthcare real estate in Spain
• Renewal of several ESG labels

Solid operational performance:

• Gross rental revenues up 8.8%
• High occupancy rate: 98.5%
• Particularly long residual lease length: 13 years

Efficient management of the financial structure:

• Interest rate risk hedged at 99 % as at 30.06.2023 (and expected to range between 85% and 100% in 2023- 2027)
• Average cost of debt: 1.4% over the first half-year, and currently expected to remain at this level throughout the financial year
• Debt-to-assetsratio: 47.6% as at 30.06.2023 (including the seasonal effect of the dividend payment), and currently expected to reach approximately 45.6% as at 31.12.2023
• Rating BBB/Stable/A-2 confirmed by S&P on 21.03.2023 (report published on 03.05.2023)
• Capital increases (non-budgeted) for nearly 80 million EUR (optional dividend in the 2nd quarter and contributions in kind in the 3rd quarter)
• No long-term debt maturities in 2023
• Headroom on committed credit lines of approximately 686 million EUR as at 30.06.2023, after deduction of the backup of the commercial paper programme

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PRESS RELEASE

REGULATED INFORMATION

Brussels, 28.07.2023, 7:30 a.m. CET

Jean-PierreHanin, CEO of Cofinimmo: "Cofinimmo delivered solid results for the first half-year of 2023. These results are ahead of the outlook issued at the beginning of the year, and have as background the active management of our balance sheet and of our portfolio in transformation, with particular attention paid to asset rotation, enhanced by the strengthening of our equity. By doing so, we continue to actively participate in the expansion and renewal of the healthcare real estate portfolio in Europe while pursuing measures to achieve our ESG objectives."

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PRESS RELEASE

REGULATED INFORMATION

Brussels, 28.07.2023, 7:30 a.m. CET

1. Interim management report	5
1.1. Summary of activity since 01.01.2023	5
1.2. Consolidated key figures	7
Global figures	7
Data per share - group share	8
Performance indicators based on the EPRA standard	9
1.3. Evolution of the consolidated portfolio	9
1.4. Major events occurring in the first half-year of 2023	11
Healthcare real estate in Belgium	11
Healthcare real estate in France	11
Healthcare real estate in the Netherlands	12
Healthcare real estate in Germany	13
Healthcare real estate in Spain	14
Healthcare real estate in Finland	15
Healthcare real estate in Ireland	15
Healthcare real estate in Italy	16
Healthcare real estate in the United Kingdom	16
Property of distribution networks	16
Offices	18
1.5. Events after 30.06.2023	20
Healthcare real estate in Belgium	20
Healthcare real estate in Spain	20
Healthcare real estate in Ireland	21
1.6. Operating results	22
Occupancy rate (calculated based on rental income)	22
Main tenants	22
Weighted average residual lease length	23
Portfolio maturity	23
Changes in gross rental revenues on a like-for-like basis	24
1.7. Financial resources management	24
Capital increases since 01.01.2023	25
Other financing operations since 01.01.2023	26
Debt structure	26
Non-current financial debt	26
Current financial debts	27
Availabilities	27
Consolidated debt-to-assets ratio	27
Weighted average residual maturity of financial debts	28
Average cost of debt and hedging of the interest rate	28
Financial rating	29
Treasury shares	29
1.8. Consolidated portfolio as at 30.06.2023	31
1.9. Outlook for 2023	33
Investment programme	33
Net results from core activities and dividend per share	36
1.10. Information on shares and bonds	36
Share performance	36
Dividend for the 2023 fiscal year	37
Shareholding	37
1.11. Environmental, Social and Governance (ESG)	38
Initiatives adopted in response to climate change	38
References, notations and certifications	38
Developments in the situation of some healthcare operators	38
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PRESS RELEASE

REGULATED INFORMATION

Brussels, 28.07.2023, 7:30 a.m. CET

	1.12.	Corporate governance	39
		Ordinary general meeting of 10.05.2023	39
		Extraordinary general meeting of 10.05.2023	40
	1.13. Main risks and uncertainties	40
	1.14.	2023 shareholder calendar	41
2.	Condensed financial statements	42
	2.1. Condensed consolidated comprehensive result - Royal decree of 13.07.2014 form (x 1,000 EUR)	42
	2.2. Condensed consolidated income statement - Analytical form (x 1,000 EUR)	44
	2.3. Condensed consolidated balance sheet (x 1,000 EUR)	47
	2.4. Consolidated debt-to-assets ratio	48
	2.5. Condensed consolidated cash flow statement	49
	2.6. Condensed consolidated statement of changes in equity	50
	2.7. Selected notes to the interim condensed financial statements	52
3.	Statement of compliance	69
4.	Information on forecast statements	70
5.	Appendices	71
	5.1. Appendix 1: Independent real estate valuers' report	71
	5.2. Appendix 2: Statutory auditor's report	78

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PRESS RELEASE

REGULATED INFORMATION

Brussels, 28.07.2023, 7:30 a.m. CET

1. Interim management report

1.1. Summary of activity since 01.01.2023

Cofinimmo has been acquiring, developing and managing rental properties for almost 40 years. Attentive to societal changes, Cofinimmo's permanent objective is to offer high-quality care, living and working spaces ('Caring, Living and Working - Together in Real Estate'). Capitalising on its expertise, Cofinimmo consolidates its leadership in European healthcare real estate.

The pandemic that the world has been experiencing in recent years has highlighted the importance of the healthcare segment for each and every one of us. Through its investments, Cofinimmo is actively participating in the operation, maintenance, extension and renewal of the healthcare property portfolio in nine countries.

During the first half-year, Cofinimmo made several investments (for 177 million EUR), in line with the outlook1, mainly in various healthcare real estate sub-segments in Europe. Thanks to these operations, healthcare real estate assets (4.5 billion EUR) account for 73% of the group's consolidated portfolio as at 30.06.2023, which reaches 6.2 billion EUR.

Cofinimmo constantly evaluates its assets portfolio based on the key points of its strategy and the available market opportunities. In this context, the group carried out disposals for 128 million EUR, in line with the outlook, contributing to the reduction by 1.0% of the debt-to-assets ratio. These are noticeable in the office and property of distribution networks segments (where the Cofinimur I portfolio of insurance agencies in France represents only 0.03% of the consolidated portfolio as at 30.06.2023, after disposals of more than 15 million EUR in 2023 and nearly 110 million EUR cumulatively since the process was launched in 2021). The cumulative amount of divestments carried out since 01.01.2023 and those already signed and expected to be closed by the end of the financial year amounts to nearly 200 million EUR.

Cofinimmo has been adopting a proactive ESG policy for almost 15 years now. This is a real priority for the group, which once again distinguished itself in 2023. At the beginning of the year, Cofinimmo was selected to be one of the 'Top SBTi 1.5°C ESG Bond Issuers' and was included in the new Euronext Bel ESG Index. On 20.04.2023, Cofinimmo's ESG efforts were praised by the international financial press (Financial Times), with the group being the only real estate company, among 8 Belgian groups, listed in the 500 Europe's Climate Leaders. In addition, during the half-year, Cofinimmo further improved its ESG performance with two new BREEAM certifications in Spain and the renewal of several ESG labels.

In terms of financing, Cofinimmo reinforced its financial resources and its balance sheet structure during the last two financial years (cumulative capital increases of 565 million EUR in 2021 and 114 million EUR in 2022), and again during this financial year (non-budgeted capital increases through optional dividend in the 2nd quarter and contributions in kind in the 3rd quarter, totalling nearly 80 million EUR). The financing operations during this period enabled the group to improve the maturity timetable of its financial debts, to increase the amount of available financing and to maintain an average cost of debt at particularly low levels. In this respect, Cofinimmo carried out in January the last early refinancing for 2023 (90 million EUR), to bring its maturity to 2030; there are therefore no further long-term debt maturities in 2023. The interest rate risk is hedged at 99% as at 30.06.2023 through the use of IRS and caps; the expected ratio for the period 2023-2027 is also high, ranging from 85% to 100% depending on the year. As at 30.06.2023, Cofinimmo had 686 million EUR of headroom on committed credit lines, after deduction of the backup of the commercial paper programme.

1 i.e. the quarterly outlook derived from the annual outlook presented in the 2022 universal registration document, published on 06.04.2023, and confirmed in section 11.2 of the press release dated 28.04.2023.

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