COVID-19

COVID-19 AND ITS EXPECTED IMPACT ON CARE PROPERTY INVEST

The outbreak of the coronavirus in early 2020 and the related measures to contain the virus could potentially have an impact on the financial performance in 2020 and the valuation of certain assets and liabilities in the medium term. As a result, the Company may need to include material adjustments in its figures during the financial year 2020.

1.IMPACT ON THE GLOBAL RESULT STATEMENT

1.1 Rental income

The entire portfolio, measured at fair value, consists of healthcare real estate located in Belgium (90%) and The Netherlands (10%).

Despite the application of additional measures to combat the COVID-19 virus, the residential care centres and service flats/ assisted living apartments are still able to provide services and pay the contractually due rent or ground rent (canon) to Care Property Invest. Care Property Invest enters into frequent dialogue with the operators and is also spontaneously informed of the impact of the COVID-19 crisis. For residential care centres, a support package has been developed by the Flemish government to combat the impact of increased vacancy or additional costs for the purchase of protective equipment by the operators. Similar measures were also taken in The Netherlands. For the service flats of the historical portfolio, which represents about half of the rental income of Care Property Invest, the Company foresees a more limited impact.

Care Property Invest currently has no backlog of contractual rent payments due as a result of the COVID-19 crisis, nor any rent- free periods or rent reductions granted to its tenants, precisely because of these ongoing activities.

1.2 Result and dividend per share

Despite the outbreak of the virus, Care Property Invest increases the guidance it provided for its adjusted EPRA earnings per share to €0.96 (instead of €0.93) as announced in the press release of 18 March 2020 for the 2020 financial year. The dividend remains unchanged at €0.80. The Company recalls that the dividend for the financial year 2020 has been split into 2 coupons: coupon nr. 12 (representing an amount of €0.32) and coupon nr. 13 (representing an amount of €0.58).

2. IMPACT ON THE BALANCE SHEET

2.1 Valuation of the property portfolio

The valuation reports of the external independent valuation experts over the second quarter for the entire portfolio of investment properties show a global upward trend. Therefore, there is no downward revaluation on the portfolio of investment properties as a result of the COVID-19 crisis in the second quarter at all. On the other hand, the report of the independent valuation expert states that it was drawn up taking into account the ‘material valuation uncertainty’ as defined by the RICS standards (VPS3 and VPGA 10 of RICS Red Book Global).

2.2 Debt ratio

As at 30 June 2020, the debt ratio of Care Property Invest was 47.36%. The available space up to a debt ratio of 60%, which Care Property Invest has agreed upon in covenants with its credit providers as the maximum debt ratio, amounts to €232.5 million. The principal amount of loans still to be repaid in 2020 only amounts to €51.1 million.

Care Property Invest has an MTN programme, which was increased to €200 million in April. As at 30 June 2020, Care Property Invest had €98.7 million outstanding as commercial paper, more than 100% of which was covered by specific, associated back- up lines. Care Property Invest would like to point out that it can still roll over commercial paper, even though it has noticed a disruption in this market.

As at 30 June 2020, Care Property Invest has approximately €200 million of confirmed undrawn credit lines and cash and cash equivalents at its disposal. The fact that Care Property Invest continues to have access to additional credit facilities proves the confidence that credit providers have in Care Property Invest, its activities and its management.

2.3 Developments included in the balance sheet

The Company’s development pipeline only concerns projects in The Netherlands.

Construction activities have continued in The Netherlands since the outbreak while respecting the measures imposed by the Dutch government to contain the COVID-19 virus. The delays specifically caused by the COVID-19 crisis remain difficult to quantify but seem rather limited.

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COVID-19