1. Brussels, 22 November 2005 The Belgian SICAFIs: A Success Story and Challenges Pol R. Tansens

2. 2 The Belgian SICAFIs: A Success Story and Challenges n Introduction n Today’s Key Facts and Figures n Main Characteristics of a Belgian SICAFI n No Corporate Tax if a Number of Conditions are Met n Major Topics

3. 3 The Belgian SICAFIs: A Success Story and Challenges n SICAFIs and the Stock Exchange n Excellent Returns n Why are SICAFIs so Popular ? n Increasing Daily Volumes n SICAFIs and Portfolio Theory n Limited Correlation with Other Shares

4. 4 The Belgian SICAFIs: A Success Story and Challenges n Upcoming Challenges n Growth Strategy Necessary? n International REIT in the Pipeline ? n What about Raising Interest Rates ?

5. 5 Introduction 1 n Today’s Key Facts and Figures

6. 6 Introduction 1 n Today’s Key Facts and Figures

7. 7 Introduction 1 n Today’s Key Facts and Figures

8. 8 Introduction 1 n Today’s Key Facts and Figures

9. 9 Main Characteristics of a Belgian SICAFI n No Corporate Tax if a Number of Conditions are Met n Some Major Topics: n Activities n Portfolio Diversification n Profit Distribution n Valuation of Assets 2

10. 10 Main Characteristics of a Belgian SICAFI n Valuation of Assets n RICS (Royal Institution of Chartered Surveyors) n International Valuation Standards Committee (IVSC) n European Group of Valuer’s Associations (TEGoVA) n RICS believes that IVSC is in best position to define a general valuation framework world-wide n IVSC Standards incorporated into RICS’s “Red Book” n Assets valued at “market value” n Key issue in Belgium n Market value including or excluding transaction costs? n Vrij op naam/Acte en main vs. Kosten Koper... 2

11. 11 SICAFIs and the Stock Exchange 3 n Excellent Returns

12. 12 SICAFIs and the Stock Exchange 3 n Why are SICAFIs so Popular ? n Still a spread of some 200 basis points between treasury bonds and dividend yields

13. 13 SICAFIs and the Stock Exchange 3 n Why are SICAFIs so Popular ?

14. 14 SICAFIs and the Stock Exchange 3 n Why are SICAFIs so Popular ?

15. 15 SICAFIs and the Stock Exchange 3 n Increasing Daily Volumes

16. 16 SICAFIs and the Stock Exchange 3 n Increasing Daily Volumes

17. 17 SICAFIs and Portfolio Theory 4 n Limited Correlation with Other Shares

18. 18 Upcoming Challenges 5 n Growth Strategy Necessary ? n Market cap. of EUR 1 bn ? n Difficult Market Conditions for Investments ?

19. 19 Upcoming Challenges 5 n International REIT in the Pipeline ? n Harmonisation of Tax Rules within Europe ? n Focus vs. Diversification ? n Management Issues

20. 20 Upcoming Challenges 5 n Public Real Estate n If nominal rates   return  (share prices  + dividend) n If nominal rates   return  (share prices  + dividend) n This has been the case so far: prices driven by lack of investment alternatives and spread between A+ bond yields and dividend yields n If nominal rates =  return = dividend n Examples

21. 21 n Thank you, and Success ! n pol.tansens@be.meespierson.com 6