A unique Way to invest in Apartments

A unique Way to invest in Apartments

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & Conclusion 2

Topics 1.Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & conclusion 3

Company profile RREC (SIR/GVV) listed on Euronext since 1999 Offering yearly increasing dividend The specialist in residential real estate Focus on Belgium 40 professionals managing the full cycle of property Portfolio of over 450 mio 4

A strategy based on four pillars - Managing the full cycle of real estate Maximisation of capital gains Continuous rejuvenation Regular «cleaning up» Acquisitions of big sites Advantage of exit tax Acquisitions in shares Service to tenants Continuous refurbishment Acquisitions at cost Life Cycle Cost Efficiency of buildings 5

A strategy based on four pillars - Managing the full cycle of real estate Investor Unique positioning on the market Active disposal process Developer 6

A strategy in line with a world full of changes Cities Sustainability Housing Connectivity Mobility 7

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & conclusion 8

Context of dynamic demographic growth Bron: FOD Economie 9

Context of dynamic demographic growth Growth of population period 2015-2030 (11,9 mio): Brussels: +10 % Flanders: + 5% Wallonia: + 7% Number of households period 2015-2030 (5,3 mio): Brussels: +9 % Flanders: + 10% Wallonia: + 13% 10

Belgian residential market 2016 Investment Market Still cheaper credits (- 15 à -50 bp) Less return on alternative investments Growth of population Strong activity : record year with +8,2 % (2015) 115,000 transactions Prices rising (especially for new apartments) 11

Belgian residential market in 2016 Evolution of the average price per house per region, in EUR Source: Statbel Evolution of the average price per apartment per region, in EUR Source: Statbel 2016 Evolution 2016-2015 Evolution 2016-2012 2016 Evolution 2016-2015 Evolution 2016-2012 Flanders 226,850 2,6% 9,1% Wallonia 156,300 1,2% 6,7% Brussels 404,400 0,4% 13,9% Belgium 210,800 3,6% 8,9% Flanders 227,200-1,5% 10,0% Wallonia 173,600 1,9% 7,6% Brussels 233,100 1,7% 7,0% Belgium 220,500 0,0% 9,1% Only for transactions submitted to registration fees. Regarding houses: mansions, villas and rooming houses not included 12

Brussels Letting Market Cf. Observatiecentrum van huurprijzen 2016 (Brussels) Sample of 5,000 units out of 300,000 Average rent : 710 EUR/month (709 in 2015) Median rent: 660 EUR/month (650 in 2015) 13

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 Portfolio Acquisitions (Re)Development Property Management Sales Key Figures & Financial Results 4. Stock & conclusion 14

Portfolio 15

Portfolio properties in operation 16

Portfolio spread over Belgium & The Netherlands 17

Acquisitions 18

Acquisitions 2017 Development Projects Jourdan (Saint-Gilles) 5,800 m² 69 parking spaces Office building to be converted into a residential building 55 units Provisional acceptance of works mid-2020 Immediate expected yield of +/- 5.25% 19

Acquisitions 2017 Existing buildings Port Zélande Strenghtening the position in the Center Parcs Port Zélande Acquisition of 7 additional cottages & 40 apartments Leased for a period of 15 years Initial rent of 43,000 indexed annually 20

Acquisitions 2017 Existing buildings Investers SA Acquisition of all the shares of company Investers SA on August 31 st 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and Saint-Gilles (9 apartments, 2 offices, 1 retail space) Uccle Saint-Gilles Schaerbeek 21

Acquisitions 2017 Existing buildings Libertys, Auderghem VOP transferred the ownership of a building located Place de l Amitié in Auderghem Acquisition on September 13 th 40 apartments, 41 basements and 40 parking spaces 22

Development projects Brunfaut- Molenbeek 93 apartments Demolition works starting in the coming weeks Delivery expected Q42019 23

(Re)Developments 24

Development projects The Inside 95 units Building accepted on June 1 st 2017 First tenants since July 1 st 2017 So far, more than 60% of the apartments have been rented www.theinside.be 25

Development projects The Pulse - Molenbeek 96 units (93 apartments & 3 houses) Delivery in 3 phases: Building C : November 2017 Buildings A&B : January 2018 Own development Urban renewal 26

Development projects Reine Astrid, Kraainem 40 residential units Retail/offices units on ground floor Delivery expected H2 2018 27

Development projects MTC2, Woluwe-Saint-Lambert Building permit introduced expected Q2 2018 47 apartments 28

Refurbishment projects Scheldevleugel,Oudenaarde 95 units 80 studios, 15 apartments 75 garage boxes Renovation of the first faze (empty apartments) finished www.scheldevleugel.be 29

Refurbishment projects Léopold & Saint-Hubert, Liège Works started in both buildings Léopold Saint-Hubert 30

(Re)Development Already a solid track record : 400 new units & 36 renovated Name # units Delivery Description Galerie de l Ange 6 2014 New apartments in existing building of portfolio Trône 16 2015 New Building - Iconic location Fully let The Link 123 2015 Office reconversion- Student House Fully let Ghlin 20 2016 Refurbishment of existing houses Fully let Arch View 16 2016 Refurbishment of existing building Fully let The Horizon 160 2016 Office reconversion New way of living Fully let The Inside 95 Q2 2017 Office reconversion 50% let 31

(Re)Development Coming soon 330 new units & 135 renovated Name # units Delivery Description Célidée 96 Q4 2017 - Q1 2018 Urban renewal Scheldevleugel Oudenaarde Saint-Hubert 51 - Liège Reine Astrid - Kraainem 40 / 95 Q3 2017 / 2018-2019 Asset Management - Value add strategy 6 2018 Asset Management urban renewal 40 2018 New building Leopold - Liège 29 + 7 2019 Asset Management urban renewal Brunfaut 96 2019 New building - Urban Renewal MTC2 47 2020 New building Jourdan 95 50 2020 New building 32

Property Management 33

Property Management A unique expertise on the market 34

Sales 35

Disposal process Maximization of capital gains Regular «cleaning up» of less performing assets in the portfolio Continuous rejuvenation of the portfolio Ongoing sales of the buildings Mélèzes (Woluwe-Saint- Lambert) Birch house (Etterbeek) Bosquet-Jourdan (Saint-Gilles) Jardins de la Cambre (Ixelles). Jardin de la Cambre Bosquet Jourdan 36

Financial Results CONSOLIDATED KEY RESULTS (IN ) 1 2 From 1/1/2017 to From 1/1/2016 to 30/09/2017 30/09/2016 Net rental result 16 517 317 13 840 918 Property result 14 639 284 12 032 680 Operating result before the portfolio result 10 002 326 8 093 891 Portfolio result - Result on sales (distributable capital gain) 2 788 244 3 207 085 - Changes in fair value 3 089 266 10 949 491 Financial result - Financial result excluding changes in fair value of financial assets and liabilities -2 679 977-2 244 117 - Changes in fair value of financial assets and 1 152 877-3 690 854 liabilities 3 Net result 11 494 006 13 259 816 Average number of shares 4 3 157 351 3 147 897 Net result of core activities 7 107 528 5 801 646 Net result of core activities per share (4) 2.25 1.84 Distributable result 9 950 390 9 010 253 Distributable result per share (4) 3.15 2.86 On 30/09/2017 On 30/12/2016 Net value per share 69.20 65.19 37

Topics 1. Company profile & strategy 2. Key achievements in 2017 3. Belgian residential market 4. Stock & conclusion 38

Evolution of the stock price & dividend 39

Comparison return 40

The HIB team without whom all of this wouldn t be possible 41

Thank you for your attention! Visit our stand n 106! 42