Cofinimmo - Annual Financial Report 2015

Jean-Edouard Carbonnelle

Managing Director

André Bergen

Chairman of the Board of Directors

What are Cofinimmo’s ambitions in healthcare real estate in

Germany and the Netherlands?

Our strategy in the healthcare real estate segment is to diversify our

portfolio by country, by operator and by care specialty. At the geo-

graphical level, we first made our investments in Belgium and France,

followed in 2012 and 2014 by the Netherlands and Germany. We believe

that these last two countries offer the most attractive possibilities for

growth in healthcare real estate. In Belgium and France, the markets

are mature and characterised by consolidation among operators and

declining rental yields. Conversely, in the Netherlands and in Germany,

there is currently a greater fragmentation of the market and better

yields.

In addition, the demographic evolution and budget constraints of

countries are leading to new trends in this sector. In the Netherlands,

the segment of “Zelfbestandige BehandelCentra”, or private clinics

specialising in uncomplicated medical disciplines, is booming. Today,

Cofinimmo is the leading investor in healthcare real estate in the

Netherlands with a portfolio of more than 100 million EUR.

With regard to the dividend for FY 2016 (payable in June 2017),

Cofinimmo announces a target of 5.50 EUR gross per ordinary share.

We propose to our shareholders a gross dividend of 5.50 EUR for

FY 2015, i.e. 6.2% of the net asset value of the Cofinimmo share at

31.12.2015 and 5.5% of the average share price over the year. The com-

pany’s capital increase resulted in the early detachment of the coupon

relating to the 2015 prorated dividend (from 01.01.2015 to 11.05.2015) of

1.96 EUR, which will be payable simultaneously with the payment of the

remaining dividend amount for 2015.

For FY 2016 (dividend payable in 2017), our objective is to have a net

current result per share of 6.19 EUR and a gross dividend per ordinary

share of 5.50 EUR, i.e. a pay-out ratio of 88.9%

, barring any unforeseen

events that may arise throughout the year.

What are the challenges for Cofinimmo in 2016?

The first challenge for the company is to roll out the funds collected as

part of the capital increase.

Cofinimmo committed 250 million EUR in investments for the 2016-

2018 period, dedicated to our office building renovation programme

and investment in healthcare assets, all pre-let. In addition to this

ambitious programme, additional amounts will be devoted to new

investments, mainly in healthcare real estate in Germany and the

Netherlands. Our goal is to increase our healthcare real estate portfolio

from 42% to 47% by 2017. In healthcare, we favour modern, durable

buildings, comfortable for the people who live and work there.

The same strategy applies to offices. The use of office spaces is

changing around the world with fewer square metres used per person,

the increase in working at home and “hot-desking” (flexible offices).

The solution is to construct high-quality buildings with flexible interior

fixtures for tenants and excellent energy performance.

“IN 2015, THANKS TO THE CONFIDENCE OF

OUR SHAREHOLDERS, WE RAISED 285 MILLION EUR

IN CAPITAL TO CONTINUE OUR GROWTH.”

Vs. 85.1% at 31.12.2015.