Intervest Offices confirms its operating result for 2007

Antwerp, 31 October 2007 - Public property investment fund Intervest Offices[1] releases today its results on 30 September 2007. (comparable figures 30 September 2006 between brackets) The property investment fund Intervest Offices shows a considerable revaluation of Eur 12,8 million (Eur 15,4 million) during the first nine months of 2007. With the sale at the end of 2006 of five office buildings with important vacancy and a semi-industrial property, the rental income of the property investment fund decreases during the first nine months of 2007 by 3,7 % to Eur 30,7 million (Eur 31,8 million). The occupancy rate[2] on 30 September 2007 amounts to 92 % (92% end 2006). On 30 September 2007, the property charges amount to Eur 3,2 million (Eur 2,6 million). This rise is mainly due, on the one hand, to the increase of the technical costs resulting from maintenance works to semi-industrial buildings and the buildings in Mechelen and, on the other hand, from the increase of the management cost of the properties related to the commercial efforts of the property investment fund. The general costs amount to Eur 1,1 million which is Eur 0,1 million lower than in the same period of prior year. The financial result improves considerably to - Eur 7,2 million (- Eur 8,9 million) due to the significant decrease in credit facility withdrawal as a result of the above mentioned sale transaction end 2006. Furthermore, in spite of the important rise of the short-term interest rates, Intervest Offices has maintained its average interest rate stable by the refinancing of its credit facilities at the beginning of 2007 at considerable more attractive conditions and by the use of interest rate swaps. Finally, the property investment fund received during the first half of 2007 moratory interests from the sale transaction of its five office buildings for an amount of Eur 0,8 million. Hence, the settlement of this sale transaction has in totality a one-time positive effect on the net result of the investment property fund of Eur 0,2 million. For the first nine months of 2007, the net result of the property investment fund amounts to Eur 32,2 million (Eur 34,9 million) and can be divided in Eur 19,7 million distributable operating result (Eur 19,6 million) and Eur 12,8 million result on the portfolio (Eur 15,4 million). The above mentioned net result gives distributable earnings per share of Eur 1,42 compared to Eur 1,41 for the same period of prior year. On 30 September 2007, the fair value of the portfolio amounts to Eur 556 million (Eur 507 million as at 31 December 2006). This rise is due to the increase in value of Eur 13 million for the existing buildings and additionally there is the acquisition of the Exiten building for Eur 8 million, the Mechelen Campus Tower building for Eur 27 million as well as the realised investments on the portfolio. On 30 September 2007 the net asset value (fair value) of the share amounts to Eur 24,55 (Eur 23,99 on 31 December 2006). Given that the share price on 30 September 2007 is Eur 28,80, the Intervest Offices share is quoted with a premium of 17 % compared to this net asset value (fair value). According to the calculation method of article 6 of the RD of 21 June 2006, the debt ratio amounts to 39 % on 30 September 2007 (45 % on 31 December 2006). On 18 October 2007, the extraordinary general meeting of shareholders approved the merger by acquisition by Intervest Offices of two limited liability companies, i.e. Mechelen Campus 3 (owner of the 'Mechelen Campus Tower' building) and Zuidinvest (owner of the 'Exiten' building). The merger of Mechelen Campus 3 is realised through the issue of 17.093 new shares Intervest Offices. The merger of Zuidinvest is realised through the issue of 1.147 new shares Intervest Offices. The new shares are entitled to dividend from 1 January 2007. All 18.240 new shares are allocated to Belle Etoile sa, a subsidiary of VastNed Offices/Industrial. After the merger, the share capital of Intervest Offices is represented by 13.900.902 shares and amounts to Eur 126.725.150,79. This merger can be seen as a formal and logical step as Intervest Offices has already previously acquired approximately 95 % of the shares of the companies Mechelen Campus 3 and Zuidinvest and this as a part of the further extension of the real estate patrimony of Intervest Offices. On the basis of the forecast published in the half-year brochure of 30 June 2007, Intervest Offices expects that for 2007 the distributable earnings per share will be around Eur 1,90. For the financial year 2007, the gross dividend per share will herewith be higher than prior year (Eur 1,87). Indeed, through the sale end 2006 of a number of properties with a low occupancy rate and the reinvestment of the liberated financial means in office buildings as Exiten and Mechelen Campus Tower in 2007, distributable earnings increase. Note to the editors: for more information, please contact: Intervest OFFICES SA, Jean-Paul Sols - CEO or Inge Tas - CFO, tel. 03/287.67.87, 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 commercial rental income to the same rental income plus the estimated rental value of the vacant locations for rent. For the entire pdf-version with figures of this press release, please click on the link below: