Cofinimmo : Third quarter 2023 interim report

PRESS RELEASE

REGULATED INFORMATION

Brussels, 27.10.2023, 7:30 a.m. CET

Quarterly information

3rd quarter of 2023

Solid results, further divestments and strengthening of equity

as part 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 177 million EUR (169 million EUR as at 30.09.2022)
• Net result from core activities - group share outlook reviewed to 6.95 EUR per share (6.85 EUR per share previously)
• 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 approximately 255 million EUR

• Divestments already carried out over the first nine months amount to 195 million EUR (in line with the outlook), mainly in offices

Investments in healthcare:

• 241 million EUR investments in healthcare real estate in Europe over the first nine months (in line with the outlook)
• With 4.7 billion EUR, healthcare real estate accounts for 74% of the group's consolidated portfolio which reaches 6.3 billion EUR

ESG:

• EPRA Sustainability Best Practices Recommendations Gold Award for the 10th consecutive year
• Renewal and improvement of several ESG labels
• Several BREEAM certifications both for offices and healthcare real estate

Solid operational performance:

• Gross rental revenues up 8.7%
• High occupancy rate: 98.5%
• Particularly long residual lease length: 13 years

Efficient management of the financial structure:

• Interest rate risk hedged at 100% until 2026 and up to 95% in 2027
• Average cost of debt: 1.4% as at 30.09.2023, and currently expected to remain at this level throughout the financial year
• Debt-to-assetsratio: 47.0% as at 30.09.2023 (including the seasonal effect of the dividend payment at the end of the 2nd quarter), or 44.5% pro forma taking into account the ABB carried out in October 2023
• Rating BBB /Stable/A-2 confirmed by S&P on 21.03.2023 (report published on 03.05.2023 followed by an update on 09.10.2023)
• Capital increases (non-budgeted) for 247 million EUR (optional dividend in the 2nd quarter, contributions in kind in the 3rd quarter, and ABB in the 4th quarter)
• Headroom on committed credit lines of approximately 750 million EUR as at 30.09.2023, after deduction of the backup of the commercial paper programme, or 915 million EUR pro forma taking into account the ABB carried out in October 2023

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Brussels, 27.10.2023, 7:30 a.m. CET

Jean-PierreHanin, CEO of Cofinimmo: "Cofinimmo delivered resilient results for the 3rd quarter 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. Underpinned by conservative financial management, our focus is on executing our strategy and protecting our balance sheet and cash flows in a context where interest rates and macroeconomic factors dominate the debate, while the underlying fundamentals of the healthcare sector remain solid."

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Brussels, 27.10.2023, 7:30 a.m. CET

1.	Summary of activity	4
2.	Consolidated key figures	6
	2.1. Global figures	6
	2.2. Data per share - group share	7
	2.3. Performance indicators based on the EPRA standard	8
3. Evolution of the consolidated portfolio	8
4. Major events occurring in the 3rd quarter of 2023	10
	4.1. Healthcare real estate in Belgium	10
	4.2. Healthcare real estate in France	11
	4.3. Healthcare real estate in the Netherlands	12
	4.4. Healthcare real estate in Germany	13
	4.5. Healthcare real estate in Spain	14
	4.6. Healthcare real estate in Finland	15
	4.7. Healthcare real estate in Ireland	15
	4.8. Healthcare real estate in Italy	16
	4.9. Healthcare real estate in the United Kingdom	16
	4.10.Property of distribution networks	16
	4.10.1. Pubstone	17
	4.10.2. Cofinimur I	17
	4.10.3. Other - Belgium	18
	4.11.Offices	18
5.	Operating results	20
	5.1. Occupancy rate (calculated based on rental income)	20
	5.2. Main tenants	20
	5.3. Weighted average residual lease length	21
	5.4. Portfolio maturity	21
	5.5. Changes in gross rental revenues on a like-for-like basis	22
6.	Financial resources management	22
	6.1. Capital increases since 01.01.2023	22
	6.1.1.	Optional dividend	22
	6.1.2. Capital increases through contribution in kind	23
	6.1.3. Capital increase in cash via accelerated bookbuilding	23
	6.2. Other financing operations since 01.07.2023	23
	6.2.1. Overall evolution of the financing operation	23
	6.2.2.	Interest rate hedging	24
	6.3. Availabilities	24
	6.4. Consolidated debt-to-assets ratio	24
	6.5. Weighted average residual maturity of financial debts	24
	6.6. Average cost of debt and hedging of the interest rate	25
	6.7. Financial rating	26
7. Condensed consolidated income statement - Analytical form (x 1,000 EUR)	27
8. Condensed consolidated balance sheet (x 1,000 EUR)	30
9. Consolidated portfolio as at 30.09.2023	31
10. Outlook for 2023	33
	10.1.Investment programme	33
	10.2.Net results from core activities and dividend per share	36
11. Environment, Social and Governance (ESG)	37
	11.1.Initiatives adopted in response to climate change	37
	11.2.References, notations and certifications	37
	11.3.Developments in the situation of some healthcare operators	37
12. Corporate governance	38
	12.1.Shareholding	38
13. Main risks and uncertainties	38
14. Shareholder calendar	39
15. Appendix: Consolidated comprehensive result - Royal decree of 13.07.2014 form (x 1,000 EUR)	40

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Brussels, 27.10.2023, 7:30 a.m. CET

1. Summary of activity

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, expansion and renewal of the healthcare property portfolio in nine countries.

During the first nine months, Cofinimmo made several investments (for 278 million EUR, i.e. 240 million EUR excluding contributions in kind, in line with the outlook1), mainly in various healthcare real estate subsegments in Europe. Thanks to these operations, healthcare real estate assets (4.7 billion EUR) account for 74% of the group's consolidated portfolio as at 30.09.2023, which reaches 6.3 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 195 million EUR, in line with the outlook, contributing to the reduction by 1.6% of the debt-to-assets ratio. These are noticeable in the three sectors of activity. 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 approximately 255 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 the 3rd quarter of 2023. First of all, several ESG labels previously granted were renewed and improved (GRESB Real Estate Assessment, Sustainalytics, and S&P Global CSA score). In addition, Cofinimmo was granted several new BREEAM certifications both in the office and healthcare real estate segments. Finally, Cofinimmo was granted a new EPRA Sustainability Best Practices Recommendations Gold Award for the tenth consecutive year.

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, contributions in kind in the 3rd quarter, and contribution in cash through accelerated bookbuilding - "ABB" - in the 4th quarter, totalling nearly 247 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; since then there are no further long-term debt maturities in 2023. The interest rate risk is hedged at 100% until 2026 and up to 95% in 2027. As at 30.09.2023, Cofinimmo had approximately 750 million EUR headroom on committed credit lines, after deduction of the backup of the commercial paper programme, or 915 million EUR pro forma taking into account the ABB carried out in October 2023.

The group's momentum in terms of investments, divestments and financing (average cost of debt at 1.4%), coupled with efficient management of the existing portfolio in transformation (occupancy rate of 98.5%, gross rental income up 5.8% on a like-for-like basis due to recent indexations, which usually take place on the anniversary date of the contract, operating margin at 82.5%), enabled the company to realise a net result from core activities - group share of 177 million EUR as at 30.09.2023, ahead of the outlook (compared to the 169 million EUR that were made as at 30.09.2022, i.e. a 5% increase), mainly due to the investments made, higher than the scope effect of disposals as well as the positive effect of contracts indexation. The net

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 1.9.2. of the press release dated 28.07.2023.

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Brussels, 27.10.2023, 7:30 a.m. CET

result from core activities - group share amounts to 5.33 EUR per share (ahead of the outlook, compared to

5.29 EUR as at 30.09.2022), taking into account the issuance of shares in 2022 and 2023. The effect of disposals and capital increases on this indicator is -0.19 EUR per share and -0.23 EUR per share respectively, i.e. -0.42 EUR per share in total over the first nine months of 2023.

The net result - group share amounted to 39 million EUR (i.e. 1.16 EUR per share) as at 30.09.2023, compared to 473 million EUR (i.e. 14.82 EUR per share) as at 30.09.2022. This change is due to the fact that the increase in the net result from core activities - group share is lower than the negative change in the fair value of hedging instruments and investment properties - non-cash items - between the first nine months of 2022 and the first nine months of 2023.

With a debt-to-assets ratio of 47.0% as at 30.09.2023 (including the seasonal effect of the dividend payment at the end of the 1st half-year, to be compared with 45.6% as at 31.12.2022 and 47.6% as at 30.06.2023), or 44.5% pro forma taking into account the ABB caried out in October 2023, Cofinimmo's consolidated balance sheet (whose BBB/Stable/A-2 rating was confirmed on 21.03.2023 and was the subject of a report published on 03.05.2023 and an update on 09.10.2023) shows a strong solvency (information on main risks and uncertainties are stated in section 13).

Given the state of progress of ongoing projects, the net investment budget for 2023 published on 17.02.2023 and confirmed on 28.04.2023 (detailed in the annual financial report, i.e. gross investments of 300 million EUR and divestments of 300 million EUR, these net investments having a neutral effect on the debt-to-assets ratio) remains the objective, but do not take into account the investments carried out through contribution in kind (which have a favourable impact on the debt-to-assets ratio). Based on the information currently available, and barring major unforeseen events, Cofinimmo reviews its outlook with a net result from core activities - group share at 6.95 EUR per share for the 2023 financial year (vs 6.85 EUR per share previously1), taking into account the prorata temporis dilutive effects of the 2022 and 2023 capital increases (approximately 0.39 EUR per share) and the disposals carried out in 2022 and budgeted in 2023 (approximately 0.28 EUR per share). The gross dividend outlook for the 2023 financial year, payable in 2024, can therefore be confirmed at 6.20 EUR per share. This outlook is provided subject to the main risks and uncertainties stated below (see section 13).

1 See press release dated 04.10.2033 relating to the ABB carried out in October 2023.

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Brussels, 27.10.2023, 7:30 a.m. CET

2. Consolidated key figures

2.1. Global figures

(x 1,000,000 EUR)	30.09.2023	31.12.2022
Portfolio of investment properties (in fair value)	6,346	6,200
(x 1,000 EUR)	30.09.2023	30.09.2022
Property result	252,417	236,681
Operating result before result on the portfolio	207,586	193,110
Net result from core activities - group share*	177,132	168,767
Result on financial instruments - group share*	-8,857	211,412
Result on the portfolio - group share*	-129,744	92,739
Net result - group share	38,530	472,918
Operating margin*	82.5%	82.0%
	30.09.2023	31.12.2022
Operating costs/average value of the portfolio under management*1	0.94%	1.00%
Weighted average residual lease length2 (in years)	13	13
Occupancy rate3	98.5%	98.7%
Gross rental yield at 100% occupancy4	5.8%	5.6%
Net rental yield at 100% occupancy5	5.4%	5.3%
Debt-to-assets ratio6	47.0%	45.6%
Average cost of debt*7	1.4%	1.2%
Weighted average residual maturity of financial debts (in years)	4	5

The Alternative Performance Measures (APM), as defined by the European Securities and Markets Authority (ESMA), are identified with an asterisk (*) the first time they appear in the body of this press release. Their definition and calculation details are available on Cofinimmo's website (http://www.cofinimmo.com/investors/reports-and-presentations).

1. Average value of the portfolio to which are added the receivables transferred for the buildings whose maintenance costs payable by the owner are still met by the group through total cover insurance premiums.
2. Until the first break option for the lessee.
3. Calculated based on actual rents (excluding development projects and assets held for sale) and, for vacant space, the rental value estimated by the independent real estate valuers.
4. Passing rents, increased by the estimated rental value of vacant space, divided by the investment value of the portfolio (including transaction costs), excluding development projects and assets held for sale.
5. Passing rents, increased by the estimated rental value of vacant space, minus direct costs, divided by the investment value of the portfolio (including transaction costs), excluding development projects and assets held for sale.
6. Legal ratio calculated in accordance with the legislation on RRECs such as financial and other debt divided by total assets.
7. Including bank margins.

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Brussels, 27.10.2023, 7:30 a.m. CET

2.2. Data per share - group share

(in EUR)	30.09.2023	30.09.2022
Net result from core activities per share - group share*	5.33	5.29
Result on financial instruments per share - group share*	-0.27	6.63
Result on portfolio per share - group share*	-3.90	2.91
Net result per share - group share	1.16	14.82
Net Asset Value per share (in EUR)	30.09.2023	31.12.2022
Revalued net assets per share in fair value1 after dividend distribution	104.64	104.54
for the 2022 financial year*
Revalued net assets per share in investment value2 after dividend	112.02	111.95
distribution for the 2022 financial year*
Diluted Net Asset Value per share (in EUR)	30.09.2023	31.12.2022
Revalued diluted net assets per share in fair value1 after dividend	103.04	103.02
distribution for the 2022 financial year
Revalued diluted net assets per share in investment value2 after	110.30	110.30
dividend distribution for the 2022 financial year

The Mandatory Convertible Bonds (MCB) issued in 2011 and 11,300 treasury shares of the stock option plan have been taken into account in the calculation of the diluted net assets per share as at 30.09.2023 because they have a dilutive impact.

The Mandatory Convertible Bonds (MCB) issued in 2011 and 14,975 treasury shares of the stock option plan have been taken into account in the calculation of the diluted net assets per share as at 31.12.2022 because they have a dilutive impact.

1

2

Fair value: after deduction of transaction costs (primarily transfer taxes) from the value of the investment properties.

Investment value: before deduction of transaction costs.

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Brussels, 27.10.2023, 7:30 a.m. CET

2.3. Performance indicators based on the EPRA standard1

(in EUR per share)	30.09.2023	30.09.2022
EPRA earnings*	5.33	5.29
EPRA diluted earnings*	5.33	5.29
(in EUR per share)	30.09.2023	31.12.2022
EPRA Net Reinstatement Value (NRV)*	110.46	115.99
EPRA Net Tangible Assets (NTA)*	101.09	106.83
EPRA Net Disposal Value (NDV)*	111.31	117.88
	30.09.2023	31.12.2022
EPRA net initial yield (NIY)*	5.5%	5.3%
EPRA 'topped-up' NIY*	5.5%	5.3%
EPRA vacancy rate*	1.6%	1.4%
EPRA cost ratio (direct vacancy costs included)*	20.6%	22.2%
EPRA cost ratio (direct vacancy costs excluded)*	17.7%	19.5%

The MCBs issued in 2011 have not been taken into account as at 30.09.2023, 31.12.2022 nor as at 30.09.2022 in the calculation of the EPRA diluted earnings, the EPRA NVR, the EPRA NTA and the EPRA NDV, concepts defined by the EPRA Best Practice Recommendations.

3. Evolution of the consolidated portfolio

Segment	Investments	Divestments in the	Investments in the	Divestments in the	Fair value as at	Reference
	during the first	first nine months	3rd quarter of 2023	3nd quarter of 2023	30.09.2023
	nine months of	of 2023
	2023
Healthcare real	241 million EUR2	27 million EUR	90 million EUR3	27 million EUR	4.7 billion EUR	4.1. to 4.9
estate
Distribution	3 million EUR	21 million EUR	1 million EUR	1 million EUR	0.5 billion EUR	4.10
networks
Offices	34 million EUR	147 million EUR	10 million EUR	38 million EUR	1.2 billion EUR	4.11
TOTAL	278 million EUR	195 million EUR	101 million EUR	67 million EUR	6.3 billion EUR	/

1. Data not required by the RREC regulations and not subject to control by public authorities.
2. Of which 409 million EUR in investment properties, 2 million EUR in changes in non-current financial assets, and -4 million EUR in changes in participations and receivables in associates due to the consolidation in the 1st quarter of 2023 of two companies previously accounted for under the equity method (in the context of the construction of eco-friendly care campuses in the Land of North Rhine-Westphalia - see section 4.4). It should be noted that the consolidation in the 3rd quarter of 2023 of SCI Foncière CRF (see section 4.2), which was previously accounted for under the equity method, resulted in the following main changes: a negative change in participations in associates, the recognition of minority interests and the consolidation of a financial liability. The net impact of these elements and the recognition of the investment properties of SCI Foncière CRF amounts to approximately 13 million EUR.
3. Of which 249 million EUR in investment properties, 1 million EUR of change in non-current financial assets, and 6 million EUR of change in participations and receivables in associates. The impact of the consolidation of SCI Foncière CRF is identical to that described in the footnote on page 2.

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The portfolio breakdown per segment and sub-segment is as follows:

Segment / Sub-segment	Number of beds (rounded up)	Fair value (%)
Healthcare real estate		74%
Cure centres1	3,500	10%
Primary care2	-	2%
Care centres3	27,000	60%
Others4	-	2%
Property of distribution networks5		7%
Offices		19%
Brussels CBD	-	12%
Brussels decentralised	-	4%
Brussels periphery	-	1%
Other regions	-	2%

The portfolio geographical breakdown is as follows:

Country	Fair value (%)
Belgium	51%
France	11%
The Netherlands	10%
Germany	14%
Spain	6%
Finland	2%
Ireland	2%
Italy	3%
United Kingdom	1%

1

2

3

4

5

Specialised acute care clinics, rehabilitation clinics and psychiatric clinics. Medical office buildings.

Nursing and care homes, assisted -living and disabled care facilities. Mainly sport & wellness centres.

As the Cofinimur I portfolio of insurance agencies in France only represents 0.03% of the consolidated portfolio as at 30.09.2023, all sub-segments of property of distribution networks are now merged into one line, mainly (93%) consisting of the Pubstone portfolio.

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Brussels, 27.10.2023, 7:30 a.m. CET

4. Major events occurring in the 3rd quarter of 2023 4.1. Healthcare real estate in Belgium

• Investments in the first nine months of 2023: 44 million EUR
• Investments in the 3rd quarter of 2023: 33 million EUR
• Divestments in the first nine months of 2023: 27 million EUR
• Divestments in the 3rd quarter of 2023: 27 million EUR
• Healthcare real estate portfolio in Belgium at 30.09.2023: 1,706 million EUR (91 operational sites)

In Belgium, Cofinimmo holds investments properties in healthcare real estate for a fair value of 1.7 billion EUR, 19 million EUR in participations in associates, and 15 million EUR in finance lease receivables. During the first nine months of 2023, Cofinimmo invested 44 million EUR (of which 33 million EUR during the 3rd quarter) in investment properties and divested 27 million EUR.

Main accomplishments:

• Provisional acceptance of a nursing and care home in Oudenburg

On 06.07.2023, and as announced in October 2021, Cofinimmo proceeded with the provisional acceptance of a nursing and care home located in the municipality of Oudenburg, in the province of West Flanders. The new nursing and care home offers 68 beds, spread over a surface area of approximately 4,500 m². The building meets all the current energy standards and sustainability requirements. Modern and sustainable materials as well as the latest techniques (LED-lighting, reuse of rainwater, D ventilation system in common areas) have been used for this site. The investment budget (plot of land and works included) amounted to approximately 11 million EUR. Korian Belgium (Clariane group) operates the new nursing and care home. In this context, a triple-net1 lease has been concluded for a fix term of 20 years. The rent will be indexed according to the Belgian health-index.

• Investment in a nursing and care home in Oupeye

On 07.07.2023, Cofinimmo acquired a nursing and care home (Les Jardins d'Ameline) in Oupeye (province of Liège/Luik) through a contribution in kind of all the shares of the company owning the site. The conventional value of this asset for the calculation of the share price amounted to approximately 30 million EUR. In this context, 400,472 new shares were issued on the day of the transaction, within the framework of the authorised capital, and have been transferred to the contributors.

The site's energy performance is outstanding, which is fully in line with Cofinimmo's ESG strategy. Les Jardins d'Ameline are located in Oupeye, a municipality 9 km north of the city of Liège/Luik, which has a population of approximately 195,000 inhabitants. The nursing and care home is located in a green area in the heart of the municipality, close to shops and public transport (bus stop 20 metres away).

The complex, built in 2017 and expanded with a new wing in 2020, is operational and combines modernity and conviviality. It consists of a 111-bed nursing and care home, 43 assisted-living apartments, as well as 5 day-care beds, spread over a total surface area of approximately 10,400 m². This modular and flexible site has an excellent A-level energy performance. It is equipped with, amongst other things, 400 photovoltaic panels for electricity, a cogeneration system for heating, and two rainwater harvesting tanks.

1 Insurances, taxes and maintenance are born by the tenant.

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