Quarterly Report • Feb 18, 2014
Quarterly Report
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18 February 2014 – After closing of markets Under embargo until 17:40 CET
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Aedifica's investment strategy is built on two underlying demographic trends, namely population ageing and population growth in Belgium's main cities. These two trends have helped build market confidence in the Company as demonstrated by the evolution of the stock price over the 1st half, rising from €47.50 as (30 June 2013) to €51.53 per share (31 December 2013).
Since the capital increase of December 2012 Aedifica has announced a series of new investments totalling €145 million as of 31 December 2013 (see table below). These investments have been concentrated mainly in the senior housing segment, including acquisitions in the Belgian market and, beginning for the first time in 2013, beyond the country's borders as well.
| (in € mi llion ) |
Mar keta ble inve stm ent ties pro per |
Dev elop t men ject pro s |
Tot al |
|---|---|---|---|
| e Sp R esid enti park oren |
- | 17 | 17 |
| R ésid e Ch ux d 'Arg ent enc eve |
4 | 3 | 7 |
| ' t Ho ge |
3 | 5 | 8 |
| H elian thus |
4 | 3 | 7 |
| P ont d'Am our |
- | 8 | 8 |
| A u Bo n Vi Tem eux ps |
- | 10 | 10 |
| R ésid e l'A ir du Tem enc ps |
- | 6 | 6 |
| O p Ha anv en |
- | 3 | 3 |
| S Z AG O H erke nrat h, D resd Krei scha en, |
21 | - | 21 |
| S alve |
8 | 8 | 16 |
| P lant ijn |
8 | 8 | 16 |
| S teph anie 's C orne r |
10 | - | 10 |
| D e St iche l |
11 | - | 11 |
| H uize Lie ve M oen sse ns |
5 | - | 5 |
| Tota l as of 3 1 De ber 201 3 cem |
74 | 71 | 145 |
Not only is the completion of the acquisition of three rest homes in Germany during the 1st half 2013/2014 Aedifica's first investment abroad since the Company was created in 2005, it is also the first investment of any Belgian REIT in the German market. These investments are consistent with Aedifica's strategy in the senior housing segment, allowing for better diversification of tenants and extending the Company's operations in a market which tends to structure itself at a European level. This first operation abroad also follows changes in Belgian law, at the end of 2012, which opened to the European market to residential Belgian REITs, while fixing the rate of withholding tax on dividends they distribute at 15% (compared to 25% for dividends distributed by other types of REITs).
In Belgium, the half year under review was marked by the acquisition of four rest homes in Brasschaat, Kapellen, Dilsen-Stokkem and Vilvoorde. The acquisition of these marketable investment properties (€32 million) is only the beginning, with important renovation and expansion projects foreseen (budget of €16 million). Moreover, with completion of the 222-bed Wemmel site (approx. €22 million budget), the rest home is now the largest in Aedifica's portfolio. These projects fit perfectly with Aedifica's investment strategy in the senior housing segment, which aims to improve existing sites
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and develop new projects in partnership with tenants/operators. This strategy allows the Company to maintain a portfolio of high quality buildings that generate attractive net yields of approx. 6%. Moreover, Aedifica also acquired an apartment building ideally located in Brussels (at the heart of the Louise district). This is the first apartment building acquired in the last 2 years, generating an initial gross rental yield of over 5%.
The fair value of investment properties during the half year under review exceeded €700 million, reaching €728 million by 31 December 2013 (€643 million at the beginning of the period).
Along with its investment activities, Aedifica continues to manage its existing real estate portfolio in light of the unstable economic context that has remained since 2008. The Company's portfolio consists of:
This portfolio provides for excellent rental incomes, which amount to €19.5 million as of 31 December 2013. This income level is supported by occupancy rates of 96.7% for the unfurnished portion of the portfolio and 77.8% for the furnished portion, a stable EBIT margin of 77%, and well controlled financing costs.
Profit (excluding non-cash elements arising from application of accounting standards on financing instruments and investment property) has reached €9.2 million (compared to €8.2 million as of 31 December 2013), i.e. €0.93 per share (compared to €0.94 per share as of 31 December 2013). The decline of the profit per share excluding IAS 39 and IAS 40 originates in the dilution resulting from the capital increase of 7 December 2012. This result (in absolute terms and per share) is slightly better than the budget derived from the annual outlook for the 2013/2014 financial year as presented in the 2012/2013 annual financial report (section 11.2 of the consolidated Board of Directors' report).
Aedifica's consolidated debt-to-assets ratio amounts to 44.7% as of 31 December 2013 (36.0% as of 30 June 2013).
The dividend forecast for the current financial year remains unchanged at €1.86 gross per share.
In conclusion, note that new investment opportunities are currently under consideration, in both Belgium and Germany. These potential investments are fully aligned with the Company's investment strategy, which is highly favoured by the market.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Aedifica is a Belgian listed company investing in residential real estate. It develops a real estate portfolio around the following investment pillars:
Aedifica is listed on NYSE Euronext Brussels (continuous market). Its financial year ends on June 30th.
This interim Board of Directors' report is an update of the Board of Directors' report as of 30 June 2013, included in the 2012/2013 annual financial report (and comprising a glossary listing the definitions of the main technical terms used). Only the significant changes that have taken place since then are presented here.
3.1. During the 1st half of 2013/2014
Recall that Aedifica signed, in front of the notary, the purchase agreements for three rest homes in Germany on 20 June 2013 ("Seniorenzentrum AGO Herkenrath" in Bergisch Gladbach in North Rhine-Westphalia) and 12 September 2013 ("Seniorenzentrum AGO Dresden" and "Seniorenzentrum AGO Kreischa" in Saxony). These agreements were subject to the usual outstanding conditions in Germany (mainly of administrative nature). The conditions were lifted on 1 August 2013 for the rest home located in Bergisch Gladbach, on 22 November 2013 for the rest home located in Dresden and on 28 December 2013 for the rest home located in Kreischa. The purchase price (approx. €21 million) was paid, and the property and full use of the buildings were automatically acquired by Aedifica SA on those dates.
The "Seniorenzentrum AGO Herkenrath" is a recent construction which benefits from an excellent location and offers comfortable living spaces. It is located 20 km from Cologne (4th largest city in Germany in terms of inhabitants) in the centre of Herkenrath, part of the city of Bergisch Gladbach in North Rhine-Westphalia. Built in 2010, it contains 80 beds in 80 single rooms.
The "Seniorenzentrum AGO Dresden" is located in a residential area of the beautiful baroque city of Dresden, the capital of Saxony. It is close to shops and public transportation and a main artery of the Löbtau district. Built in 2012, it contains 116 beds in 107 rooms.
The "Seniorenzentrum AGO Kreischa" is located in a bucolic environment in the commune of Kreischa in Saxony, approx. ten kilometres from the city of Dresden. The rest home benefits from an excellent location along the Kurpark (the central park of Kreischa), close to shops, the town hall and the Klinik 77 rooms.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The "Plantijn" rest home is located in a residential district close to the centre of Kapellen. The rest home comprises 110 beds and is operated by the Armonea group under a 27-year triple net long lease (that began in June 2013). The contractual value amounts to approximately €8 million4 and generates an initial triple net yield of approximately 6%. In addition, a development project is planned for the site. This project includes the renovation of existing buildings (namely a building dating back to the beginning of the 20th century and more modern expansions added in 1972 and 1986) and the expansion of the site with construction of a new building on a plot of land next to the rest home. The development permit has already been obtained for this project. Exact plans, including the expected completion date, have not yet been finalised.
The total investment budget (specified in the contracts) for the renovation and expansion works at these two sites amounts to approximately €16 million. These additional investments will, upon completion, generate a triple net yield of approx. 6%.
Construction of the new "Hestia" rest home, located in Wemmel (in the province of Flemish Brabant), was completed on 29 August 2013.
The rest home is located in close proximity to Brussels in a residential area of Wemmel. With a total capacity of 222 beds, it is the largest rest home in Aedifica's portfolio. The site is operated by the
1 www.ago-sozialeinrichtungen.de 2
amounts to approx. €21 million2.
Bavaria (one of most important rehabilitation clinics in the country). Built in 2011, it contains 84 beds in
« Herkenrath » « Dresden » « Kreischa »
These three establishments are operated by subsidiaries of the AGO Betriebsgesellschaft für Sozialeinrichtungen mbH ("AGO group"1), a quality operator in the healthcare industry with an excellent reputation in the German market. It operates more than ten establishments and has its headquarters in Cologne. The contracts in place with the operator are irrevocable long term leases with double net structure, meaning the repair and maintenance of the roof, structure and facades of the building remains the responsibility of the owner. The average remaining lease maturity of the three leases is approx. 23 years. Given the good quality of the buildings, the initial gross rental yield (double net) for the three rest homes amounts to approx. 7.5%. The contractual value of the three buildings
The acquisitions were financed using Aedifica's credit facilities and by taking over existing credit
Aedifica (together with its subsidiary, Aedifica Invest SA) acquired all shares of the limited liability company Patrius Invest on 29 August 2013. Patrius Invest is the owner of two rest homes in the
The "Salve" rest home is located at the heart of a residential district in Brasschaat. This 120-bed rest home is operated by the Armonea group (a major player in the senior care market) under a 27-year triple net long lease (that began in June 2013). The contractual value amounts to approximately €8 million3 and generates an initial triple net yield of 6%. In addition, a 2-phase development project is in progress at the site, consisting of the demolition and reconstruction of the old section of the rest home (dating back to the beginning of the 20th century) and the complete renovation of the newer sections (two buildings dated 1979 and 1997). The delivery of phase I is expected in spring 2014.
facilities (granted by the Bank für Sozialwirtschaft) attached to the buildings. - Salve and Plantijn (Brasschaat and Kapellen, province of Antwerp)
province of Antwerp: "Salve" in Brasschaat and "Plantijn" in Kapellen.
4 The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs.
5 Illustration: © 2013 - Soprim@
The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs. 3
The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs.
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Soprim@ group under a 27-year triple net long lease. The contractual value amounts to approximately €22 million6 (including the land acquisition and building construction) and generates an initial triple net yield of approx. 6%.
The project was carried out by the Soprim@ group on behalf of Aedifica in the context of an agreement in principle signed on 21 February 2011.
Aedifica (together with its subsidiary, Aedifica Invest SA) acquired all shares of the limited liability company Immo Dejoncker on 21 October 2013. Immo Dejoncker is the owner of the "Stephanie's Corner" apartment building in Brussels.
"Stephanie's Corner" comprises 27 apartments, 3 commercial spaces and a 27-space underground parking lot. The building (dated 2007) is located between rue Jean Stas and rue Dejoncker. This is an excellent location at the heart of the Louise district in Brussels, near to shops and public transportation links (trams and metros). The apartments are rented to private persons on the basis of traditional residential leases while commercial spaces are rented under commercial leases. The contractual value of the building amounts to approximately €10 million7 (i.e. an acquisition value well below €3,000/m² for the apartments) and generates an initial gross rental yield above 5%.
"Stephanie's Corner"
Aedifica (together with its subsidiary, Aedifica Invest SA) acquired the control8 of the companies owning the "Huize Lieve Moenssens" rest home in Dilsen-Stokkem (Province of Limburg) and "De Stichel" rest home in Vilvoorde (Province of Flemish Brabant) on 16 December 2013.
The "De Stichel" rest home is located at the heart of a residential district (Koningslo) in Vilvoorde, close to the Military Hospital Queen Astrid and the Brussels Ring highway. The rest home benefits from a beautiful view of the surrounding fields with Brussels in the background. This 118-bed rest home was built in several phases between 1990 en 2006 and is operated by the Soprim@ group under a 27-year triple net long lease. The contractual value amounts to approximately €11 million9 and
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generates an initial triple net yield of approx. 6%. In addition, the actual building offers a significant potential to increase its capacity.
The "Huize Lieve Moenssens" rest home is located in Dilsen-Stokkem (a few kilometres of Maasmechelen Village) near to a residential district. The land on which the rest home is situated is owned by the commune but is subject to a long lease set in 1981 for a period of 99 years. The building was initially built in 1986 as a center for people with disabilities, then transformed to a rest home in two separate phases in 2002 and 2004. In 2007 a new wing was added to increase the capacity to its current 67 beds. The rest home is operated by the Soprim@ group under a 27-year triple net long lease. The contractual value amounts to approximately €5 million10 and generates an initial triple net yield of approx. 6.5%. In addition, the site offers significant potential for future expansion.
"Huize Lieve Moenssens"
The operation was financed using Aedifica's credit facilities and by taking over existing credit facilities (granted by BNP Paribas Fortis) attached to the buildings.
6 The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs.
7 The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs. 8
Through the acquisition of limited liability companies (Aedifica Invest Vilvoorde, Aedifica Invest Dilsen and De Stichel). 9 The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs.
10 The contractual value complies with the provisions of article 31 §1 of the Royal Decree of 7 December 2010 regarding Belgian REITs.
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As of 31 December 2013, the following development projects are in progress:
Taking into account credit facilities which reached maturity in July and August 2013, new credit facilities established since the beginning of the financial year, and credit facilities taken over as part of recent building acquisitions, the timetable shows the maturity of Aedifica's current credit facilities (in € million):
| - - |
20 17/ 20 18 : 20 18/ 20 19 : |
62 30 |
|---|---|---|
| - - |
20 19/ 202 0 : 202 0/2 021 : |
0 2 |
| - | > 2 022 /20 23 : |
21 370 |
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During the first half of the financial year, Aedifica increased its portfolio of marketable investment properties by €88 million, from a fair value of €614 million to €703 million (+14%) (€728 million for the total portfolio, including development projects). This growth is mainly attributed to the acquisitions that took place during the first half and the completion of a development project during the first half.
The changes in the fair value of marketable investment properties recognised in income (+€0.2 million, or +0.03% over the first half) is assessed by the independent experts and is broken down as follows:
Aedifica has 136 marketable investment properties, with a total surface area of approx. 357,000 m2, consisting mainly of:
The breakdown by sector is as follows (in terms of fair value):
The geographical breakdown is as follows (in terms of fair value):
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The occupancy rate11 of the total unfurnished portion of the portfolio (total less furnished apartments) amounts to 96.7% as of 31 December 2013. Though slightly under the record level reached at the end of the previous financial year (30 June 2013: 97.4%), this occupancy level remains very high, and covers 91% of the portfolio in terms of fair value.
The occupancy rate of the furnished portion of the Company's real estate portfolio (representing 9% of the portfolio in terms of fair value) reached 77.8% over the first six months of the financial year. This is a decrease as compared to the occupancy rate realised for the first six months of the previous financial year (80.8%) and for the full 2012/2013 financial year (82.6%). This reflects the amplified seasonality arising from the economic climate, as noted in the previous publications, and is also explained by the fact that Aedifica is currently taking advantage of the economic slowdown to renovate some of its furnished apartments (approx. 8% of the total). Hence, during the first half, 24 furnished apartments were unavailable for rental due to renovation.
Given the persistent high volatility in the furnished apartments market and the resulting on the net yield, have lead Aedifica has adapted the way it operates its apartments, in the short and medium terms, as follows:
In accordance with of the abovementioned elements, 14 of the 295 apartments located in buildings qualified as furnished apartment buildings are now operated under traditional "unfurnished" residential contracts. The number of apartments operated under "furnished" residential contracts has been reduced to 281.
The average remaining lease maturity for all buildings in the portfolio is 19 years, this is an increase compared to 30 June 2013 (18 years). According to the "Belgian REIT Overview", published each month by Bank Degroof, Aedifica is significantly ahead of the industry average in terms of its average remaining lease maturity. This impressive aggregate performance is explained by the large proportion of long term contracts (such as long leases) in the company's portfolio.
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The table below presents the gross yield of the portfolio by segment compared to the fair value of the marketable investment properties, increased by the goodwill and the carrying amount of the furniture (regarding furnished apartments).
| 31 D | mbe r 20 13 ece |
||||||
|---|---|---|---|---|---|---|---|
| (x € 0) 1,00 |
Sen ior hou sing |
Apa rtm ent bui ldin gs *** |
Hot els and oth er |
Mar keta ble inve stm ent ties pro per |
Dev elop t men ject pro |
Inve stm ent ties pro per |
|
| Fair val ue |
421 ,231 |
208 ,045 |
73,2 64 |
702 ,540 |
25,7 04 |
728 ,244 |
|
| Ann ual tual trac con rent s |
25,3 28 |
12,2 34 |
* | 4,70 1 |
42,2 63 |
- | 42,2 63 |
| Gro ield (%) ** ss y |
6.0% | 5.8% | 6.4% | 6.0% | - | - |
| 30 J 201 3 une |
|||||||
|---|---|---|---|---|---|---|---|
| (x € 1,00 0) |
Sen ior hou sing |
Apa rtm ent bui ldin gs *** |
Hot els and oth er |
Mar keta ble inve stm ent ties pro per |
Dev elop t men ject pro |
Inve stm ent ties pro per |
|
| Fair val ue |
343 ,550 |
197 ,689 |
72,9 72 |
614 ,211 |
28,6 33 |
642 ,844 |
|
| Ann ual tual trac con rent s |
20,4 04 |
12,1 77 |
* | 4,78 8 |
37,3 69 |
- | 37,3 69 |
| Gro ield (%) ** ss y |
5.9% | 6.1% | 6.6% | 6.1% | - | - |
| 31 D mbe r 20 12 ece |
||||||
|---|---|---|---|---|---|---|
| (x € 1,00 0) |
Sen ior hou sing |
Apa rtm ent bui ldin gs *** |
Hot els and oth er |
Mar keta ble inve stm ent ties pro per |
Dev elop t men ject pro |
Inve stm ent ties pro per |
| Fair val ue |
325 ,496 |
198 ,135 |
74,8 26 |
598 ,457 |
20,3 20 |
618 ,777 |
| Ann ual trac tual con rent s |
19,2 82 |
* 12,4 42 |
4,82 8 |
36,5 52 |
- | 36,5 52 |
| Gro ield (%) ** ss y |
5.9% | 6.2% | 6.5% | 6.1% | - | - |
* The amounts related to the furnished apartments correspond to the annualised rental income exl. VAT (of the period).
** Based on the fair value (re-assessed every 3 months, increased with the goodwill and the furniture for the furnished apartments). In the senior housing segment, the gross yield and the net yield are generally equal ("triple net" contracts), the operating charges, the maintenance costs and the rents on empty spaces related to the operations being, in Belgium, supported by the operator. It goes the same for the hotels.
*** Split respectively as follows (fair value, annual contractual rents and gross yield):
Unfurnished apartment buildings: 31 December 2013: €144,858 k; €7,118 k; 4.9%. 30 June 2013: €135,013 k; €6,908 k; 5.1%. 31 December 2012: €136,243 k; €7,116 k; 5.2%.
Furnished apartment buildings: 31 December 2013: €63,187 k; €5,116 k; 7.7%. 30 June 2013: €62,676 k; €5,269 k; 8.0%. 31 December 2012: €61,892 k; €5,326 k; 8.2%.
11 The occupancy rate is calculated as follows:
- For the total portfolio (excluding the furnished apartments): (contractual rents + guaranteed income) / (contractual rents + estimated rental value (ERV) on vacant areas of the property portfolio). We note that this occupancy rate includes the investment properties for which units are in renovation and hence temporarily not rentable.
- For the furnished apartments: % rented days during the financial year. This occupancy rate can thus not be compared to the one calculated on the rest of the portfolio, as the methodology is specific to this segment.
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The condensed financial statements prepared in accordance with IAS 34, is presented on page 39 of this half year financial report. The following sections of the interim Board of Directors' report analyse the financial statements using an analytical framework that conforms to the company's internal reporting structure.
| Con soli date d in e st atem ent alyt ical for mat com - an |
31 D mbe r 20 13 ece |
31 D mbe r 20 12 ece |
|---|---|---|
| (x € 1,00 0) |
||
| Ren tal i nco me |
19,4 53 |
18,0 37 |
| Ren tal-r elat ed c harg es |
-45 | -69 |
| Net rent al in com e |
19,4 08 |
17,9 68 |
| Ope ratin g ch s* arge |
-4,5 20 |
-4,1 52 |
| Ope ratin sult befo sult ortfo lio g re re re on p |
14,8 88 |
13,8 16 |
| EBI T m argi n** % |
77% | 77% |
| Fina ncia l res ult e xcl. IAS 39 |
-5,5 79 |
-5,5 97 |
| Cur rent tax |
-62 | -29 |
| IAS IAS Pro fit e xcl. 39 and 40 |
9,24 7 |
8,19 0 |
| Num ber of d ivide nd r ights *** |
9,90 3,40 0 |
8,71 5,11 3 |
| 13 ning S 39 IAS (€/s ) Ear r sh l. IA and 40 hare s pe are exc |
0.93 | 0.94 |
| Prof it ex cl. IA S 39 and IAS 40 |
9,24 7 |
8,19 0 |
| IAS 39 i han in fa ir va lue o f he dgin g in ct: c stru ts mpa ges men |
926 | -1,7 92 |
| IAS 40 i ct: c han in fa ir va lue o f inv estm ent ertie mpa ges prop s |
990 | 9,92 6 |
| IAS 40 i ains disp ls of inve ertie ct: g stm ent mpa on osa prop s |
0 | 54 |
| IAS 40 i ct: d efer red taxe mpa s |
193 | 0 |
| Pro fit (o f the ent) wne rs o par |
11,3 56 |
16,3 78 |
| r of (IAS 33) Wei ghte d av mbe sha outs tand ing erag e nu res |
9,90 3,14 8 |
7,55 8,30 1 |
| Ear ning r sh (ow of t he p t - IA S 33 - €/ sha re) s pe are ners aren |
1.15 | 2.17 |
* Items IV to XV of the income statement.
** Operating result before result on portfolio divided by the net rental income.
*** Calculated on the basis of the number of dividend rights expected at the end of the financial year.
The consolidated turnover (consolidated rental income) for the 1st half amounts to €19.5 million, an increase of 8% compare to the same period during the prior year. This is slightly above the budget.
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The changes by segment of the consolidated rental income are presented in the table below:
| Con soli date d re l inc nta ome (x € 1,00 0) |
31 D mbe r 20 13 ece |
31 D mbe r 20 12 ece |
Var . (% ) on a like -for -like bas is |
Var . (% ) |
|---|---|---|---|---|
| Sen ior h ing ous |
11,4 03 |
9,53 6 |
+2% | +20 % |
| Apa rtme nt b uildi ngs |
6,03 9 |
6,16 1 |
-4% | -2% |
| U nfur nish ed a part ts men |
3,48 1 |
3,49 6 |
-3% | 0% |
| F urni she d ap artm ents |
2,55 8 |
2,66 5 |
-4% | -4% |
| Hote ls an d ot her |
2,06 2 |
2,39 1 |
-14% | -14% |
| Inte nt r-se gme |
-51 | -51 | ||
| Tota l |
19,4 53 |
18,0 37 |
-2% | +8% |
The evolution of rental income in the senior housing segment (+20% compared to the same period of the previous financial year and +2% on a like-for-like basis) demonstrates the importance of Aedifica's investment strategy in this segment, which already generates already more than 60% of the turnover and more than 75% of the operating result before result on portfolio. In the other segments, as mentioned in previous publications, the negative changes come mainly from the reduced rents that occurred during the 2012/2013 financial year in order to preserve the rent to EBITDAR ratio of the concerned tenants, and therefore the cash flows and asset values.
After deducting rental-related charges, the net rental income amounts to €19.4 million (+8% as compared to 31 December 2012).
The property result is €18.6 million (31 December 2012: €17.2 million). This result, less other direct costs, provides a property operating result of €16.9 million (31 December 2012: €15.6 million), which represents an operating margin14 of 87% (31 December 2012: 86%).
After deducting overheads of €2.0 million (31 December 2012: €1.8 million) and taking into account other operating income and charges, the operating result before result on portfolio has increased by 8%, reaching €14.9 million. This result represents an EBIT margin of 77% (31 December 2012: 77%) and is slightly ahead of the budget.
The share of each segment in the operating result before result on portfolio (constituting the segment result under IFRS 8) is detailed in Note 3 of the condensed consolidated financial statements below.
After taking account of the cash flows generated by hedging instruments (described below), net interest charges amount to €5.3 million (31 December 2012: €5.4 million). The average effective interest rate (4.3% before capitalising interest on development projects) increased as compared that reported in 2012/2013 (4.0%) but is slightly below the budget. Taking into account other income and charges of a financial nature, and excluding the net impact of the revaluation of hedging instruments to their fair value (non-cash movements accounted for in accordance with IAS 39 are not included in the profit excluding IAS 39 and IAS 40 as explained below), the financial result excluding IAS 39 represents a net charge of €5.6 million (31 December 2012: €5.6 million), in line with the budget.
Taxes consist of both current taxes and deferred taxes. In conformity with the Company's tax status, current taxes (charge of €62 thousand; 31 December 2012: charge of €29 thousand) consists primarily
12 The consolidated income statement covers the 6 month period from 1 July 2013 to 31 December 2013. Acquisitions are accounted for on the date of the effective transfer of control. Therefore, these operations present different impacts on the income statement, depending on whether they took place at the beginning, during, or at the end of the period. 13 The decline of the profit excluding IAS 39 and IAS 40 per share presented here (calculated on the number of dividend rights
expected at the end of the financial year) originated in the dilution resulting from the capital increase of 7 December 2012.
14Operating result of the buildings divided by the net rental income.
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of Belgian taxes on Aedifica's non-deductible expenditures, taxes on the result generated abroad and taxes on the result of the Company's consolidated subsidiaries. Deferred taxes are explained below.
Profit excluding IAS 39 and IAS 40 reached €9.2 million for the half (31 December 2012: €8.2 million), or €0.93 per share (31 December 2012: €0.94 per share), computed on the basis of the number of dividend rights expected at the end of the financial year. The decrease in the profit excluding IAS 39 and IAS 40 per share can be attributed to the dilution resulting from the capital increase of 7 December 2012. This result (in absolute terms and per share) is slightly better than the budget.
The income statement includes, among others, three elements with no monetary impact (that is to say, non-cash) which vary as a function of market parameters. These consist of (1) the changes in the fair value of investment properties (accounted for in accordance with IAS 40), (2) changes in the fair value of financial instruments (accounted for in accordance with IAS 39) and (3) deferred taxes (arising from IAS 40):
Given the non-monetary elements described above, profit (attributable to owners of the parent) for the half amounts to €11.4 million (31 December 2012: €16.4 million). The earnings per share (basic earnings per share, as defined in IAS 33) is €1.15 (31 December 2012: €2.17).
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Con soli date d b alan hee t ce s |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| (x € 0) 1,00 |
||
| Inve stm ent ertie prop s |
728 ,244 |
642 ,844 |
| Oth sset s inc lude d in deb t-to- ts ra tio er a asse |
10,1 96 |
8,82 7 |
| Oth sset er a s |
301 | 526 |
| Tota l as sets |
738 ,741 |
652 ,197 |
| Equ ity |
||
| E xcl. IAS 39 i ct mpa |
406 ,532 |
414 ,662 |
| I AS 39 i ct* mpa |
-30, 084 |
-32, 503 |
| E quit y |
376 ,448 |
382 ,159 |
| Liab ilitie s inc lude d in deb t-to- ts ra tio asse |
329 ,804 |
234 ,821 |
| Oth er li abil ities |
32,4 89 |
35,2 17 |
| Tota l eq uity and liab ilitie s |
738 ,741 |
652 ,197 |
| Deb tio ( %) t-to- ts ra asse |
44.7 % |
36.0 % |
* Fair value of hedging instruments.
As of 31 December 2013, investment properties represent 99% (30 June 2013: 99%) of the assets recognised on Aedifica's balance sheet, valued in accordance with IAS 4017 at a value of €728 million (30 June 2013: €643 million). This heading includes:
"Other assets included in the debt-to-assets ratio" represent 1% of the total balance sheet (30 June 2013: 1%).
Since Aedifica's formation, its capital has evolved steadily along with its real estate activities (contributions, mergers, etc.) and thanks the capital increases in October 2010 and December 2012. It has increased to €254 million as of 31 December 201318 (30 June 2013: €254 million). Equity (also called net assets), which represents the intrinsic net value of Aedifica and takes into account the fair value of its investment portfolio, amounts to:
15 Corresponding to the sum of the positive and negative variations between that of 30 June 2013 or the time of entry of new buildings in the portfolio, and the fair value estimated by experts as of 31 December 2013. 16 Long term hedges permit a notable reduction in the interest rate risk on investment financing that generates revenues over
the long term, such as long leases; note once again that the average duration of Aedifica's leases is 19 years.
17 That is to say, accounted for at their fair value as determined by independent real estate experts (i.e. Stadim CVBA and de Crombrugghe & Partners NV). 18
Recall that IFRS requires that the costs incurred to raise capital are recognised as a decrease in the capital reserves.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
As of 31 December 2013, liabilities included in the debt-to-assets ratio (as defined in the Royal Decree of 7 December 2010 on Belgian REITs) reached €330 million (30 June 2013: €235 million), of which €319 million (30 June 2013: €227 million) represent amounts drawn on the company's credit facilities. The consolidated debt-to-assets ratio amounts to 44.7% (30 June 2013: 36.0%). The maximum ratio permitted for Belgian REITs is set at 65% of total assets, thus, Aedifica maintains an additional consolidated debt capacity of €150 million in constant assets19 or €429 million in variable assets20. Conversely, the balance sheet structure permits, all else equal, Aedifica to absorb a decrease of up to 31% in the fair value of its investment properties before reaching the maximum debtto-assets ratio. Given Aedifica's existing commitments with its banks, which further limit the maximum debt-to-assets ratio to 60%, the headroom available amounts to €113 million in constant assets, €283 million in variable assets, and -25% in the fair value of investment properties.
Other liabilities amount to €32 million (30 June 2013: €35 million) and consist mainly of the fair value of hedging instruments of €30 million (30 June 2013: €32 million).
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The table below presents the evolution of the net asset value per share.
Excluding the non-monetary impact (that is to say, non-cash) of IAS 3921 and after accounting for the payment of the 2012/2013 dividend in November 201322, the net assets per share based on the fair value of investment properties is €41.05 as of 31 December 2013, compared to €40.23 share on 30 June 2013.
| 31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|
| 41.0 | 40.2 |
| 5 | 3 |
| -3.0 | -3.2 |
| 4 | 8 |
| 38.0 | 36.9 |
| 1 | 5 |
| 9,90 | 9,90 |
| 3,65 | 2,99 |
| 6 | 8 |
| Num ber of sha res |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Num ber of s hare tsta ndin g* s ou |
9,90 3,65 6 |
9,90 2,99 8 |
| Tota l nu mbe r of sha res |
9,90 3,69 0 |
9,90 3,69 0 |
| Tota l nu mbe r of sha on t he s tock rket res ma |
9,90 3,69 0 |
9,87 4,98 5 |
| Wei ghte d av mbe r of sha tand ing (IAS 33) outs erag e nu res |
9,90 3,14 8 |
8,71 5,37 0 |
| Num ber of d ivide nd r ights ecte d at the end of t he f inan cial r** exp yea |
9,90 3,40 0 |
8,71 5,33 9 |
* After deduction of the treasury shares
** Based on the prorata temporis rights to the dividend for the shares issued during the year.
The Board of Directors continues to pay close attention to the evolution of the economic and financial context and the associated effects on the Company's activities.
In the current economic climate, Aedifica's key strengths include the following:
21 The IAS 39 impact of €-3.04 per share as of 31 December 2013 is the impact in equity of the fair value of hedging instruments, which is negative for €30 million, mainly booked in the liabilities on the balance sheet. 22 Recall that IFRS requires the presentation of the annual accounts before appropriation. Net assets in the amount of €38.59
per share as of 30 June 2013 thus included the dividend distributed in November 2013, and should be adjusted by €1.64 per share in order to compare with the value as of 31 December 2013. This amount corresponds to the amount of the total dividend (€16 million) divided by the total number of shares outstanding as of 30 June 2013 (9,902,998) and is less than the coupons No. 10 an No. 11 which amounted to €1.86 per share (certain shares held only rights to a prorata temporis dividend).
19 That is, excluding growth in the real estate portfolio. 20 That is, taking into account growth in the real estate portfolio.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
its leases (19 years) provides a very good view toward future income streams over the long term.
The dividend forecast for the current financial year, as published in the 2012/2013 annual financial report, remains unchanged at €1.86 per share, stable as compared to 30 June 2013.
According to the "Belgian REIT Overview", published each month by Bank Degroof, Aedifica is currently the 5th Belgian REIT in terms of the fair value of its investment properties portfolio (5th as of 30 June 2013). In addition, Aedifica holds the 4th place in terms of the average volume traded on the stock market, with an average daily volume of €570 thousand over the last 12 months (30 June 2012: 4th place with an average daily volume of €230 thousand).
Moreover, between 31 December 2006 and 31 December 2013, Aedifica rose successfully from 36th to 11th place in the ranking of the 100 largest real estate portfolios in Belgium (according to the "Investors Directory 2014", edited by Expertise BVBA in January 2014).
The Board of Directors considers that the key risk factors summarised in pages 2 to 7 of the 2012/2013 annual financial report remain relevant for the second half of the 2013/2014 financial year.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Related party transactions, as defined under IAS 24 and by the Belgian Companies Code, are the subject of Note 15 of the attached condensed financial statements. These transactions comprise the remuneration of Aedifica's directors and executive managers.
Moreover, certain types of transactions are covered by Article 18 of the Royal Decree of 7 December 2010 (with the exception of cases explicitly covered by Article 19 of the same Royal Decree). Over the course of the first half of the 2013/2014 financial year, no transactions covered by this article and outside of normal business transactions were executed between Aedifica and its regular service providers.
Recall that, at the Extraordinary General Meeting of 24 June 2013, Mr. Jean Franken was elected as new non-executive independent Director effective 1 July 2013 until the Annual General Meeting that will be held in 2016. The Board of Directors comprises eleven Directors, including five independent Directors.
As a reminder, at the Annual General Meeting on 25 October 2013, the office of Mr. Jean Kotarakos, acting as executive Director, and Mr. Olivier Lippens, acting as non-executive Director representing the shareholders, were renewed until October 2016.
Following the acquisitions realised by Aedifica in Germany over the course of the 1st half of 2013/2014, Aedifica has designated CBRE GmbH as independent real estate expert for the assessment of Aedifica's German portfolio. This appointment was made in accordance with the requirements of the Royal Decree of 7 December 2010 related to Belgian REITs; the mission will start as from the quarterly valuation as of 31 March 2014.
Brussels 17 February 2014. The Board of Directors.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Aedifica's shares were added to the "FTSE EPRA/NAREIT Developed Europe Index" on 18 March 2013. According to EPRA, Aedifica passed all eligibility criteria for inclusion in the indices during the March 2013 quarterly review.
The EPRA ("European Public Real Estate Association") is the voice of Europe's publicly traded real estate sector and the most widely used global benchmark for listed real estate. It represents more than 200 active members and over €250 billion in real estate assets. The European indices include more than 80 constituents, with a free-float market capitalisation of approximately €100 billion. The criteria for inclusion in the indices are publicly available on the EPRA website.
Aedifica is registered in the European Index with a weighting of approx. 0.4% and in the Belgian Index with a weighting of approx. 12%.
Aedifica supports this approach to reporting standardisation, which has been designed to improve the quality and comparability of information. The Company supplies its investors with the key performance indicators according to the EPRA principles, as follows:
| 31 D mbe r 20 13 ece |
|
|---|---|
| EPR A E arni (in € /sha re) ngs |
0.93 |
| EPR A N AV (in € /sha re) |
41.0 3 |
| V (in €/s ) EPR A N NNA hare |
37.8 4 |
| EPR A N et In itial Yiel d (N IY) ( in % ) |
5.2 |
| EPR A T ed-u p N IY (i n % ) opp |
5.2 |
| EPR A V Rate (in %) aca ncy |
3 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Aedifica's stock (AED) has been quoted on the NYSE Euronext Brussels continuous market since 23 October 2006. On 7 December 2012, Aedifica successfully completed its second capital increase in cash and with preferential right, to raise a gross amount of €99.8 million. In this context, Aedifica issued 2,697,777 new shares at an issue price of €37.00 per share.
Recall that on 15 October 2010, Aedifica successfully completed its first capital increase in cash and with preferential right, to raise a gross amount of €67 million. In this offering, Aedifica had issued 2,013,334 new shares at a subscription price of €33.45 per share.
On 31 December 2013, Aedifica was registered in the Bel Real Inv. Trusts (formerly known as Bel Real Estate) index with a weighting of 7.29% and in the Bel Mid Index24 with a weighting of 3.02%.
Based on the stock price as of 31 December 2013 (€51.53), Aedifica shares show:
Aedifica's stock price increased by 39% between the date of the IPO (after deduction of the coupons attached to preferential rights issued as part of the 15 October 2010 and 7 December 2012 capital increases) and 31 December 2013. This increase shows a very favourable contrast as compared to the Bel Mid Index and EPRA Europe25 indices, which fell by 3% and 40%, respectively, over the same period.
24 The Bel Mid index is composed of values which do not belong to the BEL20 index, with a floating market capitalisation above the BEL20 index level multiplied by €50,000, and a turnover of at least 10%. In addition, no value can represent more than 10% of the Bel Mid index.
25 For additional information on EPRA indice, refer to EPRA's website (www.EPRA.com).
23 The data in this chapter are not compulsory according to the Belgian REIT regulation.
| Aed ifica sha re |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Sha rice at c losin g (in €) re p |
51.5 3 |
47.5 0 |
| Net t va lue sha xcl. impa ct IA S 39 (in €) (b d on fair val ue) asse per re e ase |
41.0 5 |
40.2 3 4 |
| Prem ium (+) / Dis nt (- ) ex cl. im IAS 39 (bas ed o n fa ir va lue) pact cou |
25.5 % |
18.1 % |
| Net t va lue sha fter impa ct IA S 39 (in €) (b d on fair val ue) asse per re a ase |
38.0 1 |
36.9 5 4 |
| Prem ium (+) / Dis nt (- ) aft er im IAS 39 (bas ed o n fa ir va lue) pact cou |
35.6 % |
28.5 % |
| Mar ket italis atio n (in €) cap |
510 ,337 ,146 |
469 ,863 ,018 |
| t1 Free floa |
88.1 7% |
88.1 7% |
| Tota l nu mbe r of sha liste d res |
9,90 3,69 0 |
9,87 4,98 5 |
| Den omi nato r for the cal cula tion of t he n et a sset val hare ue p er s |
9,90 3,65 6 |
9,90 2,99 8 |
| e (in res) Ave dai ly vo lum sha rage |
7,11 0 |
10,5 08 |
| 2 Velo city |
25.0 % |
30.5 % |
| 3 Gro ss d ivide nd p hare (in €) er s |
1.86 | 1.86 |
| ield5 Gro ss d ivide nd y |
3.6% | 3.9% |
1 Pourcentage of the capital of a company held by the market, according to the definition of Euronext.
2 Total volume of share exchanged annualised divided by the total number of shares listed on the market, according to the definition of Euronext.
3 See section 7 of the interim Board of Directors' report here above.
4 After deduction of the dividend 2012/2013 paid in November 2013.
5 Gross dividend per share, before withholding tax of 15% (in accordance with the current fiscal law), divided by the share price at closing.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The stock prices cover the period between the IPO and 13 February 2014.
Aedifica's stock price evolution compared to indexes
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Aedifica shareholders holding more than 5% of the Company's total number of shares are listed in the table below (situation as of 15 October 2010)26.
| Sha reh olde rs |
In % of the ital cap |
|---|---|
| Jub eal Fon dati on |
6.37 % |
| Wul fsdo nck Inve stm ent SA |
5.46 % |
| Free Flo at |
88.1 7% |
| Tota l |
.00% 100 |
The total number of shares (including the treasury shares) is 9,903,690.
| Fina ncia l ca lend ar |
|||
|---|---|---|---|
| Inte rim stat nt eme |
13/0 5/20 14 |
||
| Ann ual leas e 30 .06. 201 4 pres s re |
2/09 /201 4 |
||
| Ann ual f inan cial rt 20 13/2 014 repo |
12/0 9/20 14 |
||
| Ann ual Gen eral Me etin g 20 14 |
24/1 0/20 14 |
||
| Divi den d - C elat ed t o th e 20 13/2 014 fina ncia l yea r ("e x-da te") oup on r |
29/1 0/20 14 |
||
| Divi den d - R rd d ate eco |
30/1 0/20 14 |
||
| Divi den d - C ent oup on p aym |
31/1 0/20 14 |
||
| Inte rim stat nt eme |
13/1 1/20 14 |
||
| Half ults 31.1 2.20 14 yea r res |
Feb y 20 15 ruar |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Sen ior hou sing |
Tot ale |
Res iden tial |
Num ber of |
% | Con l trac tua ts(3) |
Con l trac tua |
Est ima ted tal ren (5) |
|---|---|---|---|---|---|---|---|
| face sur (1) (m² ) |
face sur (m² ) |
iden tial res unit s |
Occ upa ncy (2) rate |
ren | ER V ts + ren mpt on e |
valu e (E RV) |
|
| y (4) spa ces |
|||||||
| Châ teau Ch is eno |
6,35 4 |
6,35 4 |
115 | 100 .0% |
856 ,600 |
856 ,600 |
1,05 3,80 0 |
| New Phi lip |
3,91 4 |
3,91 4 |
111 | 100 .0% |
469 ,000 |
469 ,000 |
569 ,300 |
| Jard ins d e Pr ove nce |
2,28 0 |
2,28 0 |
72 | 100 .0% |
385 ,000 |
385 ,000 |
372 ,300 |
| Bel Air |
5,35 0 |
5,35 0 |
161 | 100 .0% |
700 ,000 |
700 ,000 |
779 ,000 |
| Rés iden ce G e de s Ch rang amp s |
3,39 6 |
3,39 6 |
75 | 100 .0% |
414 ,200 |
414 ,200 |
483 ,800 |
| Rés iden ce A stin ugu |
4,83 2 |
4,83 2 |
94 | 100 .0% |
520 ,900 |
520 ,900 |
512 ,400 |
| Enn ea |
1,84 8 |
1,84 8 |
34 | .0% 100 |
186 ,700 |
186 ,700 |
172 ,100 |
| Kas teel hof |
3,50 0 |
3,50 0 |
81 | 100 .0% |
337 ,700 |
337 ,700 |
488 ,300 |
| Wie lant |
4,83 4 |
4,83 4 |
102 | 100 .0% |
518 ,600 |
518 ,600 |
580 ,000 |
| Rés iden ce P Pala arc ce |
6,71 9 |
6,71 9 |
162 | 100 .0% |
1,21 2,40 0 |
1,21 2,40 0 |
1,26 6,90 0 |
| Rés iden ce S ervi ce |
8,71 6 |
8,71 6 |
175 | 100 .0% |
1,24 7,00 0 |
1,24 7,00 0 |
994 ,600 |
| Rés iden ce d u Go lf |
6,42 4 |
6,42 4 |
194 | 100 .0% |
750 ,700 |
750 ,700 |
1,12 4,10 0 |
| Rés iden ce B put one |
2,99 3 |
2,99 3 |
78 | 100 .0% |
438 ,500 |
438 ,500 |
515 ,900 |
| Rés iden ce A ux D Parc eux s |
1,42 3 |
1,42 3 |
53 | .0% 100 |
222 ,000 |
222 ,000 |
280 ,900 |
| Rés iden ce L 'Air du T emp s |
2,76 3 |
2,76 3 |
88 | 100 .0% |
448 ,900 |
448 ,900 |
500 ,100 |
| Au B on V ieux Tem ps |
1,26 8 |
1,26 8 |
43 | 100 .0% |
196 ,000 |
196 ,000 |
173 ,600 |
| Op Haa nve n |
4,67 5 |
4,67 5 |
90 | 100 .0% |
400 ,100 |
400 ,100 |
431 ,400 |
| Rés iden ce E xclu siv |
4,25 3 |
4,25 3 |
104 | 100 .0% |
685 ,100 |
685 ,100 |
644 ,000 |
| Sén iorie Mé lopé e |
2,96 7 |
2,96 7 |
70 | 100 .0% |
476 ,100 |
476 ,100 |
378 ,100 |
| La B oule de Cris tal |
1,29 0 |
1,29 0 |
41 | 100 .0% |
90,9 00 |
90,9 00 |
157 ,300 |
| Cha Les Fam rme s en enn e |
3,16 5 |
3,16 5 |
96 | .0% 100 |
289 ,200 |
289 ,200 |
331 ,400 |
| Sen iore rie L a Pa irelle |
6,01 6 |
6,01 6 |
140 | 100 .0% |
736 ,900 |
736 ,900 |
668 ,000 |
| Res iden ce G eld aerv |
1,50 4 |
1,50 4 |
20 | 100 .0% |
163 ,300 |
163 ,300 |
162 ,400 |
| Rés iden ce d u Pl atea u |
8,06 9 |
8,06 9 |
143 | 100 .0% |
1,22 3,40 0 |
1,22 3,40 0 |
1,17 7,20 0 |
| Sen iorie de Mar etak |
5,68 4 |
5,68 4 |
122 | 100 .0% |
509 ,400 |
509 ,400 |
681 ,100 |
| De E delw eis |
6,23 5 |
6,23 5 |
96 | 100 .0% |
642 ,500 |
642 ,500 |
846 ,400 |
| Bois de la P ierre |
2,27 2 |
2,27 2 |
65 | 100 .0% |
428 ,600 |
428 ,600 |
409 ,700 |
| of Buit enh |
4,38 6 |
4,38 6 |
80 | .0% 100 |
533 ,300 |
533 ,300 |
624 ,200 |
| Klei n Ve ldek en |
3,36 3 |
3,36 3 |
41 | 100 .0% |
390 ,400 |
390 ,400 |
697 ,600 |
| Kon ing A lber t I |
4,85 3 |
4,85 3 |
67 | 100 .0% |
460 ,800 |
460 ,800 |
894 ,800 |
| Eyc ken borc h |
5,45 7 |
5,45 7 |
89 | 100 .0% |
427 ,600 |
427 ,600 |
839 ,900 |
| Riet dijk |
2,15 5 |
2,15 5 |
59 | 100 .0% |
323 ,800 |
323 ,800 |
335 ,400 |
| Mar ie-L ouis e |
1,95 9 |
1,95 9 |
59 | 100 .0% |
125 ,400 |
125 ,400 |
304 ,500 |
| Gae rveld |
6,99 4 |
6,99 4 |
135 | 100 .0% |
762 ,100 |
762 ,100 |
766 ,300 |
| Lare nsho f |
5,46 4 |
5,46 4 |
88 | 100 .0% |
837 ,700 |
837 ,700 |
732 ,800 |
| Ter Ven ne |
6,63 4 |
6,63 4 |
95 | 100 .0% |
957 ,400 |
957 ,400 |
998 ,300 |
| Pon t d'A mou r |
4,36 4 |
4,36 4 |
74 | 100 .0% |
492 ,400 |
492 ,400 |
367 ,700 |
| Rés iden ce L es C heve ux d 'Arg ent |
4,17 7 |
4,17 7 |
80 | 100 .0% |
240 ,300 |
240 ,300 |
317 ,200 |
| 't Ho ge |
2,05 5 |
2,05 5 |
62 | 100 .0% |
200 ,000 |
200 ,000 |
453 ,400 |
28 It is not in the interest of the shareholder to publish the values by building. The addresses of the buildings are available in the annual financial report 2012/2013. Addresses of the acquisitions since 1 July 2013 are available in the related press releases. The five following buildings are owned by a subsidiary: Salve and Plantijn (Patrius Invest SA), Stephanie's Corner (Immo Dejoncker SA), De Stichel (De Stichel SA, controlled by Aedifica Invest Vilvoorde SA) and Huize Lieve Moenssens (Aedifica Invest Dilsen SA, controlled by Aedifica Invest Vilvoorde SA). All other buildings are held by Aedifica SA.
26 Declarations of transparency and control strings are available on Aedifica's website. The Company has not received any additional declarations of transparency after those received on 15 October 2010. 27 These dates are subject to change.
| Heli anth us |
2,40 9 |
2,40 9 |
47 | 100 .0% |
230 ,000 |
230 ,000 |
440 ,600 |
|---|---|---|---|---|---|---|---|
| Hes tia |
12,6 82 |
12,6 82 |
222 | 100 .0% |
1,29 8,00 0 |
1,29 8,00 0 |
1,51 5,40 0 |
| Plan tijn |
5,95 8 |
5,95 8 |
110 | 100 .0% |
466 ,800 |
466 ,800 |
833 ,400 |
| Salv e |
6,73 0 |
6,73 0 |
120 | 100 .0% |
493 ,100 |
493 ,100 |
866 ,700 |
| AGO He rken rath |
4,00 0 |
4,00 0 |
80 | 100 .0% |
,000 575 |
,000 575 |
,000 575 |
| AGO Dre sde n |
5,09 8 |
5,09 8 |
116 | 100 .0% |
583 ,200 |
583 ,200 |
583 ,200 |
| De S tiche l |
6,25 7 |
6,25 7 |
118 | 100 .0% |
643 ,100 |
643 ,100 |
660 ,800 |
| Huiz e Li Moe eve nsse ns |
4,30 1 |
4,30 1 |
67 | 100 .0% |
321 ,650 |
321 ,650 |
348 ,400 |
| AGO Kre isch a |
3,67 0 |
3,67 0 |
84 | 100 .0% |
416 ,500 |
416 ,500 |
416 ,500 |
| Tota l of the t "S enio seg men r hou sing " |
215 ,710 |
215 ,710 |
4,51 8 |
100 .0% |
25,3 28,2 50 |
25,3 28,2 50 |
29,3 26,2 00 |
| Apa bui ldin rtm ent gs |
Tot ale face sur (1) (m² ) |
Res iden tial face sur (m² ) |
Num ber of iden tial res unit s |
% Occ upa ncy (2) rate |
Con l trac tua ts(3) ren |
Con l trac tua ts + ren ERV on pty em (4) spa ces |
Est ima ted tal ren (5) valu e (E RV) |
|---|---|---|---|---|---|---|---|
| Unf ishe d ap artm ents urn |
|||||||
| Terv n 13 A/B uere |
4,62 8 |
621 | 3 | 67.4 % |
394 ,859 |
585 ,844 |
622 ,975 |
| Sab lon |
4,65 5 |
3,34 2 |
30 | 81.5 % |
777 ,585 |
954 ,410 |
920 ,898 |
| Com plex e La eke n - P ont Neu f |
5,72 0 |
4,63 7 |
42 | 85.9 % |
556 ,382 |
647 ,584 |
663 ,945 |
| Le B on 2 4-28 |
1,66 6 |
1,66 6 |
15 | 93.7 % |
169 ,168 |
180 ,579 |
189 ,263 |
| Lom bard 32 |
1,43 1 |
1,09 5 |
13 | 88.6 % |
190 ,817 |
215 ,317 |
175 ,604 |
| Com plex e Lo uise 331 -333 |
4,87 1 |
1,50 9 |
9 | .0% 100 |
644 ,100 |
644 ,100 |
666 ,100 |
| Plac e du Sam edi 6-10 |
3,76 9 |
2,36 5 |
24 | 92.5 % |
304 ,229 |
329 ,054 |
303 ,695 |
| Broq ille 8 uev |
638 | 638 | 6 | 30.4 % |
21,2 26 |
69,7 53 |
70,3 08 |
| Bata 71 ves |
552 | 312 | 3 | 62.6 % |
36,1 20 |
57,7 20 |
57,4 80 |
| Terv n 10 3 uere |
881 | 410 | 6 | 89.4 % |
110 ,980 |
124 ,090 |
116 ,740 |
| Lou is H ap 1 28 |
688 | 688 | 7 | 85.2 % |
78,3 06 |
91,8 93 |
75,6 48 |
| Rue Ha ute |
2,63 0 |
1,38 0 |
20 | 31.0 % |
92,6 49 |
298 ,459 |
305 ,748 |
| Rés iden ce P alac e |
6,38 8 |
6,18 9 |
57 | 88.8 % |
550 ,900 |
620 ,600 |
693 ,100 |
| Chu rchi ll 15 7 |
2,21 0 |
1,95 5 |
22 | 88.1 % |
234 ,545 |
266 ,375 |
268 ,170 |
| Aud ergh 237 -239 -241 -266 -272 em |
1,73 9 |
1,73 9 |
22 | 89.6 % |
175 ,410 |
195 ,700 |
183 ,228 |
| Edis on |
2,02 9 |
758 | 7 | 76.8 % |
96,7 92 |
125 ,991 |
138 ,265 |
| Ver laine /Rim bau d/Ba ude laire |
2,79 5 |
1,51 8 |
21 | 93.4 % |
246 ,434 |
263 ,894 |
271 ,333 |
| Ione sco |
930 | 930 | 10 | 98.3 % |
94,8 85 |
96,5 05 |
100 ,740 |
| Mus set |
562 | 472 | 6 | 100 .0% |
51,3 27 |
51,3 27 |
50,2 00 |
| Gion o & Hug o |
1,41 2 |
1,41 2 |
15 | % 65.3 |
81,7 19 |
125 ,113 |
139 ,300 |
| Anta res |
439 | 439 | 7 | 100 .0% |
41,0 46 |
41,0 46 |
39,3 23 |
| Ring | 11,3 81 |
7,22 7 |
88 | 100 .0% |
677 ,200 |
677 ,200 |
860 ,100 |
| Rés iden ce G uin e t Ma net aug |
2,88 5 |
2,88 5 |
35 | 92.2 % |
294 ,722 |
319 ,655 |
306 ,825 |
| Rés iden ce d e G erla che |
6,79 4 |
6,17 4 |
75 | 85.4 % |
695 ,991 |
814 ,978 |
815 ,465 |
| Step han ie's Cor ner |
3,15 0 |
2,61 7 |
27 | 96.7 % |
501 ,214 |
518 ,254 |
526 ,238 |
| Tota l of the unfu rnis hed rtme nts apa |
74,8 42 |
52,9 77 |
570 | 85.6 % |
7,11 8,60 6 |
8,31 5,44 1 |
8,56 0,69 1 |
| Apa bui ldin rtm ent gs |
Tot ale face sur (1) (m² ) |
Res iden tial face sur (m² ) |
Num ber of iden tial res unit s |
% Occ upa ncy (2) rate |
Con l trac tua ts(3) ren |
Con l trac tua ts + ren ERV on pty em (4) spa ces |
Est ima ted tal ren (5) valu e (E RV) |
|
|---|---|---|---|---|---|---|---|---|
| Unf ishe d ap artm ents urn |
||||||||
| Com e So plex rain uve e |
11,8 47 |
11,3 54 |
116 | 72.8 % |
2,17 4,09 8 |
2,17 4,09 8 |
0 6 1,42 3,13 |
|
| Lou ise 130 |
1,11 0 |
694 | 9 | 71.3 % |
162 ,688 |
162 ,688 |
163 ,100 |
6 |
| Lou ise 135 (+ 2 king s Lo uise par 137 ) |
1,97 8 |
1,93 0 |
31 | 77.7 % |
551 ,106 |
551 ,106 |
343 ,000 |
6 |
| Lou ise 2 70 |
1,04 3 |
958 | 14 | 88.4 % |
264 ,281 |
264 ,281 |
146 ,500 |
6 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| 1,83 8 26,7 84 |
1,70 2 24,8 39 |
23 295 |
% 87.2 77.8 % |
475 ,132 5,11 5,62 7 |
475 ,132 5,11 5,62 7 |
355 ,290 0 6 3,53 0,62 |
6 |
|---|---|---|---|---|---|---|---|
| 324 | 324 | 6 | 75.9 % |
51,7 12 |
51,7 12 |
33,7 00 |
6 |
| 1,32 6 |
1,32 6 |
12 | 94.1 % |
337 ,524 |
337 ,524 |
185 ,700 |
6 |
| 1,49 3 |
1,22 3 |
25 | 86.7 % |
256 ,956 |
256 ,956 |
173 ,400 |
6 |
| 3,63 5 |
3,13 8 |
37 | 71.9 % |
372 ,784 |
372 ,784 |
357 ,600 |
6 |
| 1,56 7 |
1,56 7 |
16 | % 83.6 |
352 ,372 |
352 ,372 |
261 ,100 |
6 |
| 623 | 623 | 6 | 76.1 % |
116 ,975 |
116 ,975 |
88,1 00 |
6 |
| Hot els and oth er |
Tot ale face sur (1) (m² ) |
Res iden tial face sur (m² ) |
Num ber of iden tial res unit s |
% Occ upa ncy (2) rate |
Con l trac tua ts(3) ren |
Con l trac tua ER V ts + ren mpt on e y (4) spa ces |
Est ima ted tal ren (5) valu e (E RV) |
|
|---|---|---|---|---|---|---|---|---|
| Hote l Ma rtin's Bru gge |
11,3 69 |
0 | 0 | 100 .0% |
1,58 4,88 7 |
1,58 4,88 7 |
1,17 1,46 0 |
|
| Roy ale 35 |
1,81 3 |
0 | 0 | 100 .0% |
188 ,929 |
188 ,929 |
174 ,405 |
|
| Mar tin's Klo oste r |
6,93 5 |
0 | 0 | .0% 100 |
1,36 5,94 3 |
1,36 5,94 3 |
1,14 1,08 0 |
|
| Bara 124 -126 |
1,53 9 |
0 | 0 | 0.0% | 0 | 63,1 13 |
63,1 13 |
|
| Cor bais 18 |
292 | 292 | 1 | 100 .0% |
26,2 00 |
26,2 00 |
12,2 00 |
|
| Car bon |
5,71 5 |
0 | 0 | 100 .0% |
434 ,100 |
434 ,100 |
559 ,100 |
|
| Ebu ron |
4,01 6 |
0 | 0 | 100 .0% |
399 ,000 |
399 ,000 |
458 ,700 |
|
| Ecu | 1,96 0 |
0 | 0 | 100 .0% |
216 ,000 |
216 ,000 |
229 ,700 |
|
| Euro tel |
4,77 9 |
0 | 0 | 100 .0% |
361 ,400 |
361 ,400 |
373 ,500 |
|
| Villa Boi s de la P ierre |
320 | 160 | 4 | .0% 100 |
31,0 00 |
31,0 00 |
39,6 00 |
|
| Duy sbu rgh |
470 | 470 | 5 | 100 .0% |
62,8 00 |
62,8 00 |
40,3 00 |
|
| Rés iden ce d u La c |
0 | 0 | 0 | 100 .0% |
30,7 00 |
30,7 00 |
30,7 00 |
|
| Tota l of the t "H otel d seg men s an othe r" |
39,2 08 |
922 | 10 | 98.7 % |
4,70 0,95 9 |
4,76 4,07 2 |
4,29 3,85 8 |
|
| TOT AL inve stm ent pert ies pro |
356 ,543 |
294 ,448 |
5,39 3 |
n.a. | 42,2 63,4 42 |
43,5 23,3 90 |
45,7 11,3 69 |
6 |
1 Surface excluding ground and parking lots. The cellars are taken into consideration only in exceptional cases.
2 See Glossary in the 2012/2013 annual financial report. The occupancy rate of the buildings furnished apartments cannot be compared to the occupancy rate calculated on the rest of the portfolio, as the methodology is different. We also note that the occupancy rate of the unfurnished apartment buildings includes units in renovation and hence temporarily not rentable.
3 See Glossary in the 2012/2013 annual financial report. The amounts related to buildings with furnished apartments correspond to the annualised rental income excl. VAT.
4 For the buildings with furnished apartments, no estimated rented value (ERV) were added for vacancy.
5 See Glossary in the 2012/2013 annual financial report. The ERV is the value as assessed by the independent real estate experts. For the furnished apartment buildings, the experts do not take into account the furnished occupancy.
6 This ERV is not comparable to the contractual rents because (for the buildings with furnished apartments) it does not take into account the fact that the apartments are furnished.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Pro ject d re atio s an nov ns |
Add ress |
Est ima ted inv. |
Inv. of 3 1 as Dec emb er |
Fut ure inv. |
Dat e of plet ion com |
Com ts men |
|---|---|---|---|---|---|---|
| (in € mi llion ) |
201 3 |
|||||
| I. In pro gres s |
||||||
| Lare nsho f |
Laa rne |
3.1 | 0.0 | 3.1 | 201 3/20 14 |
Exte nsio n of st h a re ome |
| t I (p & III ) Kon ing A lber hase s II |
Dilb eek |
6.9 | 5.4 | 1.5 | 3/20 201 14 |
f a r Ren tion and ext ion o est hom ova ens e |
| Eyc ken borc h |
Goo ik |
9.9 | 4.4 | 5.5 | 201 4/20 15 |
Exte nsio n of st h a re ome |
| Salv e |
Bras scha at |
8.4 | 5.4 | 3.0 | 201 4/20 15 |
Ren tion and red lopm ent of a t ova eve res hom e |
| 't Ho ge |
Kort rijk |
4.9 | 0.8 | 4.1 | 201 4/20 15 |
Ren tion and ion o f a r hom ext est ova ens e |
| Res iden tie S rk pore npa |
Beri nge n |
17.4 | 3.4 | 14.0 | 201 4/20 15 |
Con stru ctio n of est hom a n ew r e |
| Rés iden ce P alac e - P arki ngs |
Brus sels |
0.2 | 0.2 | 0.0 | 4/20 201 15 |
f 6 p Acq uisit ion o arki s to be b uilt ng s pace |
| Ede lwei s II |
Beg ijnen dijk |
1.3 | 0.7 | 0.6 | 201 4/20 15 |
Exte nsio n of st h a re ome |
| Aux De ux P arcs |
Jett e |
0.7 | 0.0 | 0.7 | 201 4/20 15 |
Exte nsio n of st h a re ome |
| Rue Ha ute |
Brus sels |
1.9 | 0.2 | 1.7 | 201 4/20 15 |
Ren tion of a iden tial build ing w ith 2 0 ova res and 1 c erci al g dflo rtme nts apa omm roun or |
| Klei n Ve ldek en |
Ass e |
3.5 | 0.0 | 3.5 | 201 4/20 15 |
Exte nsio n of isted -livin g bu ildin an ass g |
| Heli anth us |
Mel le |
3.5 | 0.1 | 3.4 | 4/20 201 15 |
n of Exte nsio st h a re ome |
| Pon t d'A mou r |
Dina nt |
7.9 | 0.0 | 7.9 | 201 5/20 16 |
Exte nsio n of st h a re ome |
| Plan tijn |
Kap ellen |
7.6 | 0.0 | 7.6 | 201 6/20 17 |
Ren tion and ext ion o f a r est hom ova ens e |
| II. S ubje ding ct to out stan con |
ditio ns |
|||||
| Rés iden ce C hev d'Ar t eux gen |
Spa | 3.0 | 0.0 | 3.0 | 201 4/20 15 |
Exte nsio n of st h a re ome |
| Terv uren |
Terv uren |
24.0 | 0.0 | 24.0 | 201 5/20 16 |
Con stru ctio n of est hom a n ew r e |
| Rés iden ce d u La c |
Brus sels |
3.5 | 0.1 | 3.4 | 201 5/20 16 |
Con stru ctio n of rtme nt b uildi an apa ng |
| Au B on V ieux Tem ps |
Mon t-Sa int-G uibe rt |
9.8 | 0.2 | 9.6 | 201 5/20 16 |
Con stru ctio n of est hom a n ew r e |
| Mar ie-L ouis e |
Wem mel |
3.2 | 0.0 | 3.2 | 201 5/20 16 |
Ren tion and ersi f a r est hom ova rec onv on o e |
| Air d u Te mps |
Chê née |
5.8 | 0.1 | 5.7 | 6/20 201 17 |
n of Exte nsio st h a re ome |
| Op Haa nve n |
Vee rle-L aak dal |
2.9 | 0.0 | 2.9 | 201 6/20 17 |
Exte nsio n of st h a re ome |
| III. L and res erve s |
||||||
| Terr ain Bois de la P ierre |
Wav re |
1.8 | 1.8 | 0.0 | - L and res erve |
|
| Plat ane s |
Brus sels |
0.2 | 0.2 | 0.0 | - L and res erve |
|
| IV. A isiti sub ject to o cqu ons |
utst and ing ditio con ns |
|||||
| Kren tzen |
Olen | 18.0 | 0.0 | 18.0 | 201 4/20 15 |
New t ho with 122 uni ts res me |
| Ove rbek e |
Wet tere n |
13.0 | 0.0 | 13.0 | 201 4/20 15 |
New t ho with 113 uni ts res me |
| Tota l |
162 .4 |
23.0 | 139 .4 |
|||
| Cap italis ed c osts |
- | 0.4 | - | |||
| Cha s in fair valu nge e |
- | 2.0 | - | |||
| Rou ndin gs |
- | 0.3 | - | |||
| On bala she et nce |
25.7 |
Of these projects, 95% are already pre-let. It is expected that the total investment budget of €139 million will be paid in cash, except for €23 million relating the Olen and Wetteren projects for which new shares will be issued by Aedifica (as mentioned in Note 45 of the consolidated financial statements published in the 2012/2013 annual financial report).
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Bre akd by t (in fai lue) own seg men r va |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Sen ior h ing ous |
60% | 56% |
| Apa rtme nt b uildi ngs |
30% | 32% |
| U nfur nish ed a part ts men |
21% | 22% |
| F urni she d ap artm ents |
9% | 10% |
| Hote ls an d ot her |
10% | 12% |
| Geo phic al b kdo (in f air valu e) gra rea wn |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Belg ium |
97% | 100 % |
| Brus sels |
42% | 46% |
| Flan ders |
40% | 37% |
| Wal lonia |
15% | 17% |
| Ger man y |
3% | 0% |
| Bre akd by bui ldin g (i n fa ir va lue) own |
31 D mbe r 20 13 ece |
|---|---|
| Com plex e So rain e (a ts) part uve men |
4% |
| Hote l Ma rtin's Bru (ho tel) gge |
3% |
| tia ( ior) Hes sen |
3% |
| Mar tin's Klo oste r (ho tel) |
3% |
| Rés iden ce S ervi ce ( ior) sen |
3% |
| Rés iden ce d u Pl atea u (s enio r) |
3% |
| Rés iden ce P Pala ce ( ior) arc sen |
3% |
| Sab lon (apa nts) rtme |
3% |
| Buil ding 3% s < |
75% |
| Num ber of b uild ings nt pe r se gme |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Sen ior h ing ous |
48 | 40 |
| Apa nt b uildi rtme ngs |
76 | 75 |
| U nfur nish ed a part ts men |
46 | 45 |
| F urni she d ap artm ents |
30 | 30 |
| Hote ls an d ot her |
12 | 12 |
| Tota l |
136 | 127 |
| Age of bui ldin gs b f co y ty ntra ct pe o (fai lue) r va |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Trip le n et c ontr acts |
67% | 69% |
| Oth er le s 0- 10 y ase ears |
17% | 14% |
| Oth er le 10 y s > ase ears |
16% | 17% |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Bre akd by leas rity of atu trac ts own e m con (fai lue) r va |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| ≥ 15 yea rs |
71% | 69% |
| < 15 yea rs |
29% | 31% |
The average residual maturity of Aedifica's contracts is 19 years.
| Bre akd of ior hou sing al ntra ctu own sen co ts b lling leg al e ntit ies in ntro ren y gr oup co l re latio ith A edif ica trac tua con n w |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Sen ior h ing ous |
60% | 55% |
| S enio r Liv ing Gro up |
17% | 19% |
| O rpea |
16% | 17% |
| A rmo nea |
12% | 11% |
| m@ S opri |
9% | 5% |
| A GO |
4% | 0% |
| O ther rato ope rs |
2% | 3% |
| Hot els and oth er |
10% | 12% |
| M artin 's H otels |
7% | 8% |
| D iffer Hote l Gr ent oup |
3% | 4% |
| Oth er te ts nan |
30% | 33% |
| Tota l |
100 % |
100 % |
| Gro ield by t ss y seg men (bas ed o n fa ir va lue) |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Sen ior h ing ous |
6.0% | 5.9% |
| Apa rtme nt b uildi ngs |
5.8% | 6.1% |
| U nfur nish ed a part ts men |
4.9% | 5.1% |
| F urni she d ap artm ents |
7.7% | 8.0% |
| Hote ls an d ot her |
6.4% | 6.6% |
| Ave rage |
6.0% | 6.1% |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Occ es ( Fur nish ed a nt b uild ings rat tme upa ncy par |
) |
|---|---|
| Dec 201 3 |
% 77.8 |
| Dec 201 2 |
80.8 % |
| Occ rat upa ncy es (To tal tfol io e xclu din g fu rnis hed rtm ent por apa |
s) |
|---|---|
| Dec 201 3 |
96.7 % |
| Jun e 20 13 |
97.4 % |
| Dec 201 2 |
97.3 % |
Prices on the residential real estate market resisted pressures in 2013, but the activity declined. On the secondary market (i.e. sales that are subject to registration fees), the sales of single family dwellings had already decreased by 6% in 2012 and declined a further 5% in 2013 to approximately 77,000 transactions during the year. This decrease in the number of transactions is reflected in each of the three Belgian regions. We must go back to 2000-2001 to find similar figures. The average selling price of €227,500 represents a slight increase of approximately +1%. In Brussels, the few single family dwellings have shown a more significant increase (+5%), reaching an average selling price of a little more than €400,000.
The strict credit policy followed by banks is being felt on the market. A funding limit of 80% of the market price appears to be applied more frequently, which means that the buyer must dispose more own financial resources more than a third of the purchase price in order to purchase a property. Taking into account transaction and borrowing costs, this amounts to €75,000 on average.
The acquisition of apartments as a cheaper alternative to single family dwellings continued to generate interest in this segment in 2012 (+2% in number of transactions), but dropped off in 2013 (-4%). The average price still increased slightly in Wallonia (+1%) and in Brussels (+1.5%). Prices at the coast stagnated at their 2011 levels while the number of sales decreased by 9%. Elsewhere in Flanders, prices have risen by 4%.
29 The gross yield is calculated as follows:
- For the total portfolio (excluding furnished apartments): (contractual rents including the guaranteed income) / (fair value of the concerned buildings).
- For the furnished apartments: (Turnover as of 31 December 2013, annualized and excl. VAT) / (fair value of the concerned buildings + goodwill + furnishments).
30 The occupancy rate is calculated as follows:
- For the total portfolio (excluding the furnished apartments): (contractual rents + guaranteed income) / (contractual rents + estimated rental value (ERV) on vacant areas of the property portfolio). We note that this occupancy rate includes the investment properties for which units are in renovation and hence temporarily not rentable.
- For the furnished apartments: % rented days during the financial year. This occupancy rate can thus not be compared to the one calculated on the rest of the portfolio, as the methodology is specific to this segment. 31 Written on 10 January 2014 by Stadim CVBA, and reproduced with permission.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The biggest decline in the residential market was observed for building land: the units sold decreased by 10% to approximately 15,000 parcels, which is 43% less that the last peak in 2005, or barely a quarter of the 1973 historic peak. However, prices in each of the regions continue to increase by approximately 2%.
The contraction in the building land segment leads to a similar trend in the construction market. Less than 20,000 residential constructions (single family dwellings and apartment buildings) were started in 2013, 14% less than in 2012. The effective number of starts for single family dwellings decreased to about 17,000, which is 500 units less than in 1983 (a year of crisis) and a third less than the most recent peak in 2006. The number of apartments per building under construction has stalled at 9 units. The total number of units under construction declined to approximately 19,500 units (-14%), which is one third less than record set in 2006-2007.
The number of development permits approved in 2013 indicates a less dramatic perspective: approximately 20,700 units (-6%) for single family dwellings and 27.400 units (+10%) for apartments. However, not all of these permits will lead to effective starts in the short term.
The total amount of mortgage loans granted to families for home purchases provides an additional barometer for the residential real estate market. Total mortgage loans amounted to €27.5 billion in 2011 and stayed at that level in 2012. In 2013, this amount fell to €24 billion but remained stable on average throughout the year (approximately €6 billion per quarter). A further decrease is not expected, but rather stagnation at this low level.
Short-term forecasts for the residential market, with other things being equal from a fiscal and an economic perspective, indicate that the average age of the main group of buyers will gradually approach the 40-45 years range as the own financial resources requirement (1/3 of the purchase price) is simply too great for younger people.
The increasing life expectancy also has as consequence in delaying the infusion of capital through inheritance. In addition, elderly people increasingly draw down their savings as the interest generated thereon does not provide a sufficient supplement to their pensions to meet their financial needs.
The most expensive dwellings suffered a blow in 2012 following a change in taxation (tax on the benefit in kind for the provision of free or cheap housing); this has been further amplified by the inadequacy of villas to meet current needs and preferences in terms of maintenance and accessibility. In this segment, price reductions of up to 40% are not uncommon. Mid-range dwellings have resisted this downward pressure but the rate has slowed down significantly.
A dilemma arises for young families: they can either opt to purchase a dwelling in a cheaper segment depending on their available capital resources, or opt for higher quality on the rental market. This is where the biggest problem lies. Since 1996, the more spacious apartments and the mid-size dwellings have quickly disappeared from the rental market because tenants were not found and because they were purchased for owner occupation. Later, demand for such properties on the rental market increased very quickly. This segment now presents property owners with increased demand from financially stronger tenants and the perspective for more long term rental. We must remain reasonable, however in terms of the expected returns as compared to the low interests rates earned in the financial markets at present.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The presence of European institutions, NATO and headquarters of international corporations in Brussels has paved the way for the market for furnished apartments targeted at expatriates. Demand continues to grow along with the entry of new Member States in the European Union.
In this highly competitive sector, numerous small operators and private investors have entered the market over the last few years.
The leading actors have dramatically become more professional in order to provide their customers (such as businesspeople) with better services and build customer loyalty. Professionalisation of the sector is also evident in other major cities, like Antwerp. A new industry association was recently established, grouping together operators of "business flats" in Belgium (Vereniging van BusinessFlat uitbaters VZW, or VBF VZW – see ww.businessflats.org).
The Belgian market for "business flats" is characterised by the dispersion of operators and by a highly diversified product offering (ranging from basic furnished apartments rentals to rentals offering various services, from very short-term or daily rentals to classic monthly rental periods, etc.). Moreover, this segment is characterised by a lack of transparency. To the best of our knowledge, no independent market study has been carried out on this segment to date.
The demand for "business flats" and their rental values soared up to 2008. The global financial crisis halted this trend by the spring of 2009. After reaching its lowest point in the summer of 2009, the market began to bounce back in the 1st half of 2010, both in terms of occupancy rates and prices. The sector has again come under pressure since the beginning of 2012 with increasing volatility in these measures.
The business of renting out furnished apartments must not be confused with the hotel industry. The main activity is indeed the renting out of apartments, which include all necessary furnishings. The additional services provided are normally quite limited, usually consisting of a weekly cleaning service only.
In Flanders, furnished apartment rentals are subject to a specific regulation, the Decree of 10 July 2008 on Touristic Housing. In the Brussels region, a draft legislation has recently been proposed, whereby furnished apartments rentals with services would now be governed by the regulatory framework that will be applied to tourist accommodation.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
In 2013, the number of properties on the senior housing market stagnated at 1,537 (-2 compared to 2012) while the total number of beds increased by 2.2% (137,165 beds). The not-for-profit operators in Flanders and Brussels' private sector recorded the largest increase with 3.5% in both cases.
Occupancy rates remain very high and financial results stable. More and more institutional investors are entering the market, including insurance companies and pension funds for which the very long-term prospects and indexed revenues are essential.
These new entrants push the rental yields down and therefore drive the prices upward. The main challenges for the future are multiple: (1) the Government should continue to support care through an appropriate subsidy policy; (2) operators should be increasingly focused on efficiency as the model to adopt to continue providing the level of care required; (3) investors should not decrease the quality of buildings and infrastructure given the lower yields. Real estate in general, and related sectors involved in the operation of the sites (such as rest homes or hotels) will also have to respond to future changes in terms of both needs and regulations. The possibilities and flexibility offered by the properties are therefore required as a basis for the performance over the long term.
Population ageing and increasing life expectancies drive both the German and Belgium markets, but based on populations of very different size. Germany has approx. 81 million inhabitants, of which approx. 16 million (20%) are over 65 and an estimated 8 million (10%) are over 75 years. The Belgian market is much smaller; its total population of approx. 11 million includes approx. 2 million (18%) over 65 and 1 million (9%) over 75. Population ageing will be further augmented by the generation of baby boomers reaching 60 years of age over the next decade. Consequently, the need for senior housing will increase over the next decades.
When looking at the population by age cohorts, we note that approx. 0.5% of people below 60 years of age require long-term care. This percentage increases to 10% for those between 60 and 80 years and reaches 20% thereafter. The total capacity in rest homes in Germany will have to be expanded, given the number of persons in need. It is expected that this number will rise from approx. 2 million today to approx. 3 million by 2030.
Currently, there are approx. 800,000 beds in more than 11,000 rest homes in Germany. These are operated by not-for-profit operators (approx. 55%), private operators (approx. 40%) or public operators (approx. 5%), in a very fragmented market. The market share of the five biggest operators is estimated at approx. 8%.
According to some market studies, the capacity of rest homes should be increased by approximately 380,000 units by 2030. Thus, the ageing population offers significant growth potential and opportunities for consolidation in the collective senior housing sector in Germany.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Based on figures available up to end of November 2013, the Belgian hotel market presents a positive balance for 2013. Overall, the occupancy rate (at +/- 72%) and the RevPar (revenue per available room) have increased slightly. Average prices have remained relatively stable in the mid and high range segments (3 and 4 stars).
At the regional level, the Flemish art cities continue to perform well. The monthly occupancy rates of all cities up to the end of November 2013 were slightly above those of 2012. The occupancy rate of the hotels located in Leuven experienced a peak in September 2013 (+/-82% based on data covering 40% of hotels). Bruges experienced the highest occupancy rate in August (+/-86% based on data covering 61% of hotels). Both Leuven, through the exposure of Coxie at the Museum M, and Bruges, through the commemoration of the First World War (1914-1918), should be able to reinforce their attractiveness as tourist centres.
The inauguration of Het Tafelrond (4 stars, 44 rooms) in the Grote Markt in Leuven should take place end 2015. Furthermore, within the framework of the Zeventuinen project, works for a 26-room hotel are planned in 2014 in the old cigar factory Vander Elst, located Nobelstraat. In Bruges, no new hotel development projects are expected at present.
The occupancy rate of hotels in Limburg falls below the other Flemish provinces on average, although there are large differences between the various categories of hotels. 3 star and especially 4 star hotels reached considerable occupancy rates with record months of up to 70% (based on data covering 34% of 3 and 4 stars hotels).
In terms of investments, the Accor Group announced the sale of 4 Belgian hotels during the third quarter: Sofitel Le Louise in Brussels and three Formule 1 hotels. Furthermore, 2013 was a good year for investments on the global level, with an investment volume of +/- €10 billion in the EMEA.
32 Written on 10 January 2014 by Stadim CVBA, and reproduced with permission.
33 Written on 10 January 2014 by de Crombrugghe & Partners NV, and reproduced with permission. Source : Toerisme Vlaanderen, Fgov, MKG Hospitality
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Gentlemen,
We are pleased to send you our estimate of the value of investment properties held by Aedifica as of 31 December 2013.
Aedifica assigned to the experts the task of determining the investment value and the fair value of its portfolio of investment properties. Assessments are established taking into account the remarks and definitions contained in the reports and following the guidelines of the International Valuation Standards issued by the "IVSC".
We have acted as independent experts. The experts have a relevant and recognised qualification and have an ongoing experience for the location and the type of buildings assessed.
Properties are considered in the context of current leases and of all rights and obligations that these commitments entail. We have evaluated each entity individually. Assessments do not take into account a potential value that can be generated by offering the whole portfolio on the market. Assessments do not take into account selling costs applicable to a specific transaction, such as brokerage fees or advertising. Assessments are based on the inspection of real estate properties, information provided by the applicants (i.e. rental status and surface area, sketches or plans, rental charges and property taxes related to the property), and compliance and pollution matters. The information provided was considered accurate and complete. Assessments are made under the assumption that no non-communicated piece of information is likely to affect the value of the property.
The fair value of the portfolio amounted to €728,243,740 as of 31 December 2013, including €702,539,675 for marketable investment properties. Contractual rents amounted to €42,263,442 which corresponds to an initial rental yield of 6.02%35 compared to the fair value of marketable investment properties. Assuming that the marketable investment properties, except for furnished apartments, are 100% rented and that the currently vacant spaces are rented at market prices, contractual rents would amount to €43,523,390, i.e. an initial rental yield of 6.20%36 compared to the fair value of marketable investment properties.
In the context of a reporting in compliance with the International Financial Reporting Standards, our evaluations reflect the following fair value:
‐ The fair value defined by IAS 40 and IFRS 13 is the price that would be received from the sale of an asset or paid for the transfer of a liability, during a normal transaction between market participants at the assessment date. The "IVSC" considers that these conditions are met if the definition of the market value is respected. Moreover, the market value must also reflect the current lease contracts, the current cash flow and reasonable assumptions about potential income rentals and costs.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
‐ In this context the transfer costs require adaptation to the market costs. Based on the analysis of a large number of transactions, the experts acting at the request of publicly traded real estate companies, reunited in a working group, came to the following conclusion: the "fiscal engineering" which is largely used in various forms (also totally legal), implies that the impact of transfer costs on major investment properties, whose value exceed €2.5 million, is limited to 2.5%. The investment value corresponds therefore to the fair value plus 2.5% of transfer costs. The fair value is then calculated by dividing the investment value by 1.025.
Elements below the threshold of €2.5 million remain subject to usual transfer taxes. Their fair value corresponds thus to the value excluding transfer taxes which takes into account the current leases. In this specific case, for residential units, the fair value reflects the potential capital gain if sold per apartment.
Patrizia Tortolani, MRICS, de Crombrugghe & Partners SA, 14 February 2014 Céline Janssens, MRE, MRICS and Katrien Van Grieken, MRE, Stadim CVBA, 13 February 2014
34 The expert report was reproduced with the agreement of de Crombrugghe & Partners NV and Stadim CVBA.
35 5.99% compared to the fair value of marketable investment properties increased by the goodwill on furnished apartments and furnishings. 36 6.17% compared to the fair value of marketable investment properties increased by the goodwill on furnished apartments and
furnishings.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| I. Ren tal i 19,4 53 18,0 37 nco me f lea II. Writ eba ck o ents sold and dis nted 0 0 se p aym cou III. Ren tal-r elat ed c harg -45 -69 es Net rent al in 19,4 08 17,9 68 com e IV. Rec f pro pert y ch 14 24 ove ry o arge s V. Rec f ren tal c harg nd t lly p aid by te ts o n let pert ies 481 510 ove ry o es a axe s no rma nan pro VI. Cos ble by t he t nd b by the land lord al d nd 0 0 ts p nt a rent aya ena orne on ama ge a ir at end of l repa eas e VII. Ren tal c harg nd t lly p aid by t nts on l et p rties -481 -510 es a axe s no rma ena rope VIII. Oth ntal- rela ted inco and cha -779 -773 er re me rges Pro sult 18,6 43 17,2 19 pert y re IX. Tec hnic al co sts -440 -473 X. Com cial cost -246 -240 mer s XI. Cha and tax let p rties -73 -63 rges es o n un rope XII. Prop erty nt co sts -385 -339 ma nag eme XIII. Oth rty c harg -593 -539 er p rope es |
|---|
| Pro y ch -1,7 37 -1,6 54 pert arge s |
| Pro pert erat ing lt 16,9 06 15,5 65 y op resu |
| Ove XIV rhea ds -1,9 99 -1,7 64 |
| XV. Oth ting inc and cha -19 15 er o pera ome rges |
| Ope ratin sult bef lt on tfol io 14,8 88 13,8 16 g re ore resu por |
| XVI Gain d lo disp ls of inve stm ent ertie 0 54 s an sses on osa prop s |
| XVI I. Gain d lo disp ls of oth on-f inan cial ts 0 0 s an sses on osa er n asse |
| XVI II. Cha s in fair valu e of inve ertie 990 9,92 6 stm ent nge prop s |
| Ope ratin sult 15,8 78 23,7 96 g re |
| XX. Fina ncia l inc 128 190 ome |
| XXI Net inte rest cha -5,3 29 -5,4 27 rges |
| XXI I. Oth er fi cial cha -378 -360 nan rges |
| XXI II. Cha s in fair valu e of fina ncia l ass ets and liab ilitie 9 926 -1,7 92 nge s |
| Net fina ts -4,6 53 -7,3 89 nce cos |
| XXI V. Sha re in the fit o r los s of ciate d jo int v entu unte d fo ing 0 0 pro asso s an res acco r us the ity m etho d equ |
| Pro fit b efor e ta x (lo ss) 11,2 25 16,4 07 |
| XXV . C rate tax 131 -29 orpo |
| XXV I. E xit ta 0 0 x |
| Tax 131 -29 exp ens e |
| Pro fit ( loss ) 11,3 56 16,3 78 |
| Attr ibuta ble t o : |
| Non troll ing inte rest 0 0 -con s |
| Own of t he p 11,3 56 16,3 78 t ers aren |
| Bas ic ea rnin hare (€) 10 1.15 2.17 gs p er s |
| Dilu ted ings sha re (€ ) 10 1.15 2.17 earn per |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Half ded 31 Dec emb yea r en on er (x € 0) 1,00 |
31/1 2/20 |
13 31/1 2/20 12 |
|---|---|---|
| I. Prof it (lo ss) |
11,3 | 56 16,3 78 |
| Oth II. rehe nsiv e in er c omp com e |
||
| A. Imp act on f air v alue of e stim ated tran sact ion c osts inve stm ent ertie prop s |
ultin g fro m h thet ical disp l of -2,3 res ypo osa |
78 -209 |
| B. Cha s in the effe ctive t of the fair valu e of aut nge par defi ned und er IF RS |
hori sed cash flow hed ge i 1,49 nstr nts a ume s |
3 -2,7 95 |
| H. Oth rehe nsiv e in et o f tax er c omp com e, n es |
0 132 |
|
| Com preh ive inco ens me |
10,4 | 71 13,5 06 |
| Attr ibuta ble t o : |
||
| Non troll ing inte rest -con s |
0 0 |
|
| Own of th rent ers e pa |
10,4 | 71 13,5 06 |
| ASS | ETS Not |
31/1 2/20 13 es |
30/0 6/20 13 |
|---|---|---|---|
| (x € | 1,00 0) |
||
| I. | Non rent ets -cur ass |
||
| A. | Goo dwil l |
1,85 6 |
1,85 6 |
| B. | Inta ngib le as sets |
20 | 21 |
| C. | Inve ertie 6 stm ent prop s |
728 ,244 |
642 ,844 |
| D. | Oth er ta ngib le as sets |
1,82 3 |
1,84 9 |
| E. | fina Non rent ncia l ass ets -cur |
743 | 968 |
| F. | Fina leas ceiv able nce e re s |
0 | 0 |
| G. | Trad ceiv able d ot her rent ets e re s an non -cur ass |
0 | 0 |
| H. | Defe rred tax ets ass |
193 | 0 |
| I. | Equ ity-a nted inve stm ents ccou |
0 | 0 |
| Tota | l no t as sets n-cu rren |
732 ,879 |
,538 647 |
| II. | Cur rent ets ass |
||
| A. | Ass ets clas sifie d as hel d fo le r sa |
0 | 0 |
| B. | Cur rent fina ncia l ass ets |
0 | 0 |
| C. | Fina leas ceiv able nce e re s |
0 | 0 |
| D. | Trad ceiv able d ot her rent ets e re s an non -cur ass |
2,92 9 |
2,51 4 |
| E. | Tax eiva bles and oth nt a sset rec er c urre s |
843 | 893 |
| F. | Cas h an d ca sh e quiv alen ts 8 |
1,77 8 |
725 |
| G. | Defe rred cha and rued inco rges acc me |
312 | 527 |
| Tota | l cu t as sets rren |
5,86 2 |
4,65 9 |
| TOT | AL ASS ETS |
738 ,741 |
652 ,197 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| EQU ITY AND LIA BIL ITIE S |
Not es |
31/1 2/20 13 |
30/0 6/20 13 |
|---|---|---|---|
| (x € 1,00 |
|||
| I. Issu ed c apit al a nd r attr ibua ble to o f the ent ese rves wne rs o par |
|||
| A. Cap ital |
7 | 248 ,072 |
248 ,072 |
| B. Sha ium unt re p rem acco |
64,7 30 |
64,7 30 |
|
| C. Res erve s |
52,2 90 |
41,6 86 |
|
| D. Prof it (lo ss) of th e ye ar |
11,3 56 |
27,6 71 |
|
| Equ ity a ttrib uab le to of t he p t ow ners aren |
376 ,448 |
382 ,159 |
|
| 0) Non trol ling inte rest -con s EQU ITY rent liab ilitie -cur s ision s rent fina ncia l de bts -cur wing 8 orro s nt fi cial liabi lities 9 er n on-c urre nan e de bts a nd o ther rent deb ts non -cur nt lia biliti er n on-c urre es rred tax es li abil ities liab ilitie rent s liab ilitie rent s ision s rent fina ncia l de bts wing 8 orro s nt fi cial liabi lities 9 er c urre nan e de bts a nd o ther deb rent ts cur xit ta x ther nt lia biliti er c urre es def rued cha and d in rges erre com e t lia bilit ies rren |
0 | 0 | |
| TOT AL |
376 ,448 |
382 ,159 |
|
| I. Non |
|||
| A. Prov |
0 | 0 | |
| B. Non |
|||
| a. B | 275 ,951 |
171 ,484 |
|
| C. Oth |
29,8 04 |
32,3 73 |
|
| D. Trad |
0 | 0 | |
| E. Oth |
0 | 0 | |
| F. Defe |
0 | 0 | |
| Non -cur |
305 ,755 |
,857 203 |
|
| II. Cur |
|||
| A. Prov |
0 | 0 | |
| B. Cur |
|||
| a. B | 42,9 57 |
55,7 21 |
|
| C. Oth |
0 | 0 | |
| D. Trad |
|||
| a. E | 3,32 2 |
137 | |
| b. O | 7,57 4 |
7,47 9 |
|
| E. Oth |
0 | 0 | |
| F. Acc |
2,68 5 |
2,84 4 |
|
| Tota l cu |
56,5 38 |
66,1 81 |
|
| TOT AL LIA BIL ITIE S |
362 ,293 |
270 ,038 |
|
| TOT AL EQU ITY AND LIA BIL ITIE S |
738 ,741 |
652 ,197 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Half ded 31 Dec emb yea r en on er |
31/1 2/20 13 |
31/1 2/20 12 |
|---|---|---|
| (x € 1,00 0) |
||
| CAS H F LOW FR OM OP ERA TIN G A CTI VIT IES |
||
| Prof it (lo ss) |
11,3 56 |
16,3 78 |
| Non troll ing inte rest -con s |
0 | 0 |
| Cor te ta pora x |
-131 | 29 |
| Amo rtisa tion and dep recia tion |
293 | 278 |
| Writ e-do wns |
34 | 58 |
| Cha in f of i (+/- ) air v alue tme nt p rties nge nves rope |
-990 | -9,9 26 |
| Gain d lo disp ls of inve stm ent ertie s an sses on osa prop s |
0 | -54 |
| Net fina cost nce s |
4,65 3 |
7,38 9 |
| Cha s in trad ceiv able s (+ /-) nge e re |
-449 | 191 |
| Cha s in trax eiva bles and oth nt a sset s (+ /-) nge rec er c urre |
50 | 2,66 8 |
| Cha s in defe rred cha and rued inco (+/-) nge rges acc me |
215 | 308 |
| Cha s in trad yab les a nd o ther rent deb ts (e xcl. exit tax) (+/- ) nge e pa cur |
123 | 483 |
| Cha def e (+ /-) s in ued cha and d in nge accr rges erre com |
-158 | -449 |
| Cas h ge ted from ratio nera ope ns |
14,9 96 |
17,3 53 |
| Tax aid es p |
-90 | -54 |
| Net h fro ting iviti act cas m o pera es |
14,9 06 |
17,2 99 |
| Purc hase of i ntan gible ets ass |
-5 | -6 |
|---|---|---|
| of r Purc hase eal esta te c anie d m arke tabl e inv estm ent ertie omp s an prop s |
-30, 699 |
-1,7 88 |
| Purc hase of t ible ts ang asse |
-262 | -138 |
| Purc hase of d lopm ent proj ects eve |
-17, 008 |
-9,9 45 |
| Disp ls of inv estm ent ertie osa prop s |
0 | 248 |
| Net cha s in rent eiva bles nge non -cur rec |
0 | 0 |
| Net inve in o ther stm ents ets ass |
0 | 0 |
| Net h fro m in ting act ivite cas ves s |
-47, 974 |
-11, 629 |
| CAS H F LOW FR OM FIN ANC ING AC TIV ITIE S |
||
|---|---|---|
| Cap ital i t of cost ncre ase , ne s |
0 | 96,8 54 |
| Disp ls of sha trea osa sury res |
28 | 30 |
| Divi den d fo viou s fis cal y r pre ear |
-16, 211 |
-13, 305 |
| Net cha s in borr owin nge gs |
71,0 99 |
-83, 704 |
| Net cha s in othe r loa nge ns |
0 | 0 |
| Net fina cost id nce s pa |
-5,5 04 |
-5,5 43 |
| Rep ent of fi cial deb ts o f ac quir ed o rged ies aym nan r me com pan |
-10, 108 |
0 |
| Rep ent of w orki apit al of uire d or rged ies aym ng c acq me com pan |
-5,1 83 |
-834 |
| Net h fro m fi cing iviti act cas nan es |
34,1 21 |
-6,5 02 |
| TOT AL CAS H F LOW FO R T HE PER IOD |
||
| Tota l ca sh f low for the iod per |
1,05 3 |
-832 |
| REC ON CIL IAT ION WI TH BAL ANC E S HEE T |
||
| Cas h an d ca sh e quiv alen ts a t be ginn ing o f pe riod |
725 | 2,04 1 |
| Tota l cas h flo w fo r the iod per |
1,05 3 |
-832 |
Cash and cash equivalents at end of period 1,778 1,209
18 February 2014 – After closing of markets Under embargo until 17:40 CET
| Half ded 31 Dec emb yea r en on er (x € 1,0 00) |
01/0 7/20 12 |
Cap ital incr eas e in c ash |
Cap ital incr eas e in k ind |
s/ Acq uisi tion disp f ls o osa trea sur y sha res |
Con sol idat ed sive hen com pre inco me |
App ria rop tion of the ult res |
Rou ndi ngs |
31/1 2/20 12 |
|---|---|---|---|---|---|---|---|---|
| Cap ital |
180 ,873 |
66,3 85 |
800 | 0 | 0 | 0 | 0 | 248 ,058 |
| Sha ium unt re p rem acco |
34,2 61 |
30,4 69 |
0 | 0 | 0 | 0 | -1 | 64,7 29 |
| Res erve s |
37,1 04 |
0 | 0 | 30 | -2,8 72 |
2,03 3 |
1 | 36,2 96 |
| . Le gal a rese rve |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| b . Re e fo r the bal e of serv anc cha s in fair valu e of nge inve ertie stm ent prop s |
71,7 27 |
0 | 0 | 0 | 132 | 9,47 8 |
-1 | 81,3 36 |
| . Re e fo tima ted c serv r es tion sulti ng f tran cost sac s re rom hyp othe tical disp osal of inve ertie stm ent prop s |
-13, 430 |
0 | 0 | 0 | -209 | 0 | 0 | -13, 639 |
| d . Re e fo r the bal e of serv anc cha s in fair valu e of nge auth oris ed h edg ing instr nts ume lifyin g fo r he dge untin qua acco g as RS defi ned und er IF |
-17, 906 |
0 | 0 | 0 | -2,7 95 |
-75 | 0 | -20, 776 |
| . Re e fo r the bal e of e serv anc cha s in fair valu e of nge auth oris ed h edg ing instr nts ume lifyin g fo r he dge not qua def RS untin ined und er IF acco g as |
-8,0 82 |
0 | 0 | 0 | 0 | -9,3 85 |
1 | -17, 466 |
| h . Re e fo hare r tre serv asu ry s s |
-114 | 0 | 0 | 30 | 0 | 0 | 0 | -84 |
| . Ot her m rese rves |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| . Re sult brou ght forw ard from n ious prev yea rs |
4,90 9 |
0 | 0 | 0 | 0 | 2,0 15 |
1 | 6,92 5 |
| Prof it (lo ss) |
15,3 38 |
0 | 0 | 0 | 16,3 78 |
-15, 338 |
0 | 16,3 78 |
| uity ibua Tota l eq attr ble to o wne rs of th rent e pa |
267 ,576 |
96,8 54 |
800 | 30 | 13,5 06 |
-13, 305 |
0 | 365 ,461 |
| Non troll ing inte rest -con s |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| TOT AL EQU ITY |
267 ,576 |
96,8 54 |
800 | 30 | 13,5 06 |
-13, 305 |
0 | 365 ,461 |
| Half ded 31 Dec emb yea r en on er (x € 00) 1,0 |
01/0 7/20 13 |
Cap ital incr eas e in c ash |
Cap ital incr eas e in k ind |
Acq uisi tion s/ disp ls o f osa trea sur y sha res |
Con sol idat ed hen sive com pre inco me |
App ria rop tion of the ult res |
Rou ndi ngs |
3 1/12 /20 13 |
|---|---|---|---|---|---|---|---|---|
| Cap ital |
248 ,072 |
0 | 0 | 0 | 0 | 0 | 0 | 248 ,072 |
| Sha ium unt re p rem acco |
64,7 30 |
0 | 0 | 0 | 0 | 0 | 0 | 64,7 30 |
| Res erve s |
41,6 86 |
0 | 0 | 28 | -885 | 11,4 60 |
1 | 52,2 90 |
| . Le gal a rese rve |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| b . Re e fo r the bal e of serv anc cha s in fair valu e of nge inve stm ent ertie prop s |
82,7 98 |
0 | 0 | 0 | 0 | 9,06 7 |
0 | 91,8 65 |
| . Re e fo tima ted c serv r es tion sulti ng f tran cost sac s re rom hyp othe tical disp l of osa inve ertie stm ent prop s |
-13, 848 |
0 | 0 | 0 | -2,3 78 |
0 | 0 | -16, 226 |
| d . Re e fo r the bal e of serv anc cha s in fair valu e of nge auth oris ed h edg ing instr nts ume lifyin g fo r he dge untin qua acco g as d efin ed u nde r IFR S |
-16, 637 |
0 | 0 | 0 | 1,49 3 |
-137 | 0 | -15, 281 |
| . Re e fo r the bal e of e serv anc cha s in fair valu e of nge auth oris ed h edg ing instr nts ume not lifyin g fo r he dge qua untin def ined und er IF RS acco g as |
-17, 467 |
0 | 0 | 0 | 0 | 1,73 7 |
0 | -15, 730 |
| h . Re e fo hare r tre serv asu ry s s |
-84 | 0 | 0 | 28 | 0 | 0 | 0 | -56 |
| . Ot her m rese rves |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| . Re sult brou ght forw ard from n ious prev yea rs |
6,92 4 |
0 | 0 | 0 | 0 | 793 | 1 | 7,71 8 |
| Prof it (lo ss) |
27,6 71 |
0 | 0 | 0 | 11,3 56 |
-27, 671 |
0 | 11,3 56 |
| Tota l eq uity attr ibua ble to o wne rs of th rent e pa |
382 ,159 |
0 | 0 | 28 | 10,4 71 |
-16, 211 |
1 | 376 ,448 |
| Non troll ing inte rest -con s |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| TOT AL EQU ITY |
382 ,159 |
0 | 0 | 28 | 10,4 71 |
-16, 211 |
1 | 376 ,448 |
Aedifica SA (referred to in the financial statements as "the Company", "the Parent" or "the Group") is a limited liability company having opted for the status of public real estate investment company with fixed capital (REIT) under Belgian law. Its primary shareholders are listed in Note 7. The address of its registered office is the following:
Avenue Louise 331-333, B-1050 Brussels (telephone: +32 (0)2 626 07 70)
Aedifica is positioned as a leading Belgian listed company investing in residential real estate. Its strategy is aimed at creating a balanced portfolio of residential buildings that generates stable and recurring revenues and offers potential for capital gains. Aedifica's investment strategy is built on two underlying demographic trends, namely population ageing in Western Europe and population growth in Belgium's main cities.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
To attain its objectives, Aedifica has identified two strategic pillars in which it will concentrate investment activities: senior housing in Western Europe and apartment buildings in Belgium's main cities. The diversification sought by Aedifica centres on these two strategic pillars, which provide for easy adaptation of the Company's investment policy in response to shifting market opportunities and economic conditions. The two strategic poles are concentrated in two main segments (senior housing, apartment buildings). Hotels and other types of buildings constitute a residual, non-strategic segment.
The Company's shares are listed on the NYSE Euronext Brussels (continuous market), as they have been since October 2006.
Aedifica's financial year runs from 1 July to 30 June. The publication of the condensed consolidated financial statements was approved by the Board of Directors on 17 February 2014 to be published on 18 February 2014 (in accordance with the Company's financial calendar published in its previous annual financial report).
The condensed consolidated financial statements cover the period from 1 July to 31 December 2013. They have been prepared in conformity with International Financial Reporting Standards (IFRS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), issued as of 31 December 2013 and approved by the European Union (EU), as well as IAS 34 "Interim Financial Reporting". These correspond to the standards and interpretations published by the International Accounting Standards Board (IASB) applicable as of 31 December 2013; elements of IAS 39 that were rejected by the EU are not applicable for the Aedifica group. The condensed consolidated financial statements have also been prepared in accordance with the spirit and provisions of the Royal Decree of 7 December 2010 on Belgian REITs.
The condensed consolidated financial statements are prepared in Euros, and presented in thousands of Euros, as permitted under IAS 34. They must be read in combination with the condensed consolidated financial statements as of 30 June 2013, which are presented in the 2012/2013 annual financial report.
The condensed consolidated financial statements have been prepared with application of the historical cost convention, except for the following assets and liabilities, which are measured at fair value: investment properties, investment properties held for sale, and financial assets and liabilities held for hedging or held for trading (mainly derivatives).
The condensed consolidated financial statements have been prepared in accordance with accrual accounting principles on a going concern basis.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The new and amended standards and interpretations listed below are obligatory and have been applied by the group since 1 July 2013. They have no impact on the consolidated financial statements presented here:
The only effect of IFRS 13 "Fair Value Measurement" (which came into force for the group on 1 July 2013) was to take an amount (income of €1.5 million), which would previously have been booked directly to equity, in the income statement during the period (under line "XVIII. Changes in fair value of investment properties").
Aedifica has not opted for early adoption of standards, amendments and interpretations, which have been published but are not yet compulsory. These requirements are currently under review.
A summary of the Group's main significant accounting policies is provided in Note 2.2 of the 2012/2013 annual financial statements (see pages 118 to 122 of the 2012/2013 annual financial report). These methods were applied consistently to all previous financial years, with the exception of rule I.C 1.3. ("Treatment of differences at the time of acquisition"). This rule was adapted prospectively as of 1 July 2013 as of the entry into force of IFRS 13 "Fair Value Measurement":
If, for acquisitions such as those defined in section IC 1.1 ("Acquisition value") on page 117 of the 2012/2013 annual financial report, the investment value determined by the independent expert is different than the acquisition value defined in section IC 1.1, the difference (after subtracting the exit tax) is recognised as follows:
18 February 2014 – After closing of markets Under embargo until 17:40 CET
The following operating segments have been identified with application of IFRS 8:
These operating segments are consistent with the internal reporting provided to the Group's and its internal reporting structure.
| (x € 1,0 00) |
31/1 2/20 13 |
|||||||
|---|---|---|---|---|---|---|---|---|
| Sen ior hou sing |
Apa rtm ent bui ldin gs* |
Hot els and oth er |
Non allo d cate |
Inte r- seg t men item s |
Tot al |
|||
| SEG MEN T IN FOR MAT ION |
||||||||
| Ren tal i nco me |
11,4 03 |
6,03 9 |
2,06 2 |
0 | -51 | 19,4 53 |
||
| Net rent al in com e |
11,4 03 |
5,99 4 |
2,06 2 |
0 | -51 | 19,4 08 |
||
| Prop erty ult res |
11,4 03 |
5,23 0 |
2,06 1 |
0 | -51 | 18,6 43 |
||
| Prop erty ratin sult ope g re |
11,4 02 |
3,55 0 |
2,04 2 |
-37 | -51 | 16,9 06 |
||
| OPE RAT ING RE SUL T B EFO RE RES ULT ON POR TFO LIO |
11,4 02 |
3,54 2 |
2,04 1 |
-2,0 97 |
0 | 14,8 88 |
||
| SEG MEN T A SSE TS |
||||||||
| Mar keta ble inve stm ent ertie prop s |
421 ,231 |
208 ,045 |
73,2 64 |
0 | 0 | 702 ,540 |
||
| Dev elop t pro ject men s |
0 | 0 | 0 | 25,7 04 |
0 | 25,7 04 |
||
| INV EST MEN T P ROP ERT IES |
728 ,244 |
|||||||
| Oth sset er a s |
0 | 0 | 0 | 10,4 97 |
0 | 10,4 97 |
||
| TOT AL ASS ETS |
738 ,741 |
| (x € 1,0 00) |
||||||
|---|---|---|---|---|---|---|
| Sen ior hou sing |
Apa rtm ent bui ldin gs* |
Hot els and oth er |
Non allo cate d |
Inte r- seg t men item s |
Tot al |
|
| SEG MEN T IN FOR MAT ION |
||||||
| Ren tal i nco me |
9,53 6 |
6,16 1 |
2,39 1 |
0 | -51 | 18,0 37 |
| Net rent al in com e |
9,53 6 |
6,10 4 |
2,37 9 |
0 | -51 | 17,9 68 |
| Prop erty ult res |
9,53 6 |
5,35 6 |
2,37 9 |
0 | -51 | 17,2 20 |
| Prop ratin sult erty ope g re |
9,53 5 |
3,74 7 |
2,37 0 |
-37 | -51 | 15,5 64 |
| OPE RAT ING RE SUL T B EFO RE RES ULT ON POR TFO LIO |
9,53 6 |
3,74 2 |
2,36 4 |
-1,8 26 |
0 | 13,8 16 |
| SEG MEN T A SSE TS |
||||||
| Mar keta ble inve ertie stm ent prop s |
325 ,496 |
198 ,135 |
74,8 26 |
0 | 0 | 598 ,457 |
| Dev elop t pro ject men s |
0 | 0 | 0 | 20,3 20 |
0 | 20,3 20 |
| TOT AL ASS ETS |
627 ,855 |
|||||
|---|---|---|---|---|---|---|
| Oth sset er a s |
0 | 0 | 0 | 9,07 8 |
0 | 9,07 8 |
| EST IES INV MEN T P ROP ERT |
618 ,777 |
|||||
| Dev elop t pro ject men s |
0 | 0 | 0 | 20,3 20 |
0 | 20,3 20 |
* Split respectively as follows (rental income, net rental income, property result, property operating result, operating result before result on portfolio, marketable investment properties, development projects, other assets):
Unfurnished apartment buildings: 31 December 2013: €3,481 k; €3,442 k; €3,439 k; €2,510 k; €2,507 k; €144,858 k; €0 k; €0 k. 31 December 2012: €3,496 k; €3,448 k; €3,460 k; €2,600 k; €2,600 k; €136,243 k; €0 k; €0 k. Furnished apartment buildings: 31 December 2013: €2,558 k; €2,552 k; €1,791 k; €1,040 k; €1,035 k; €63,187 k; 0 k€; 0 k€.
31 December 2012: €2,665 k; €2,656 k; €1,896 k; €1,147 k; €1,142 k; €61,892 k; €0 k; €0 k.
Within Aedifica's three segments, only the apartment buildings segment exhibits a seasonal character, which has an impact on the turnover (traditionally higher in the spring and autumn than in summer and winter) and the operating result in particular for the furnished apartments. Any negative variation tends to be offset in periods of favourable economic conditions. In weak conditions, we note increased volatility during the low season.
The sensitivity of Aedifica's activities to economic cycles is presented in page 2 of the 2012/2013 annual financial report ("market risks" section).
No unusual operating items need to be disclosed for the six months ended 31 December 2013.
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| (x € 1,00 0) |
Mar keta ble inve stm ent ties pro per |
Dev elop t men ject pro s |
TOT AL |
|---|---|---|---|
| Car ryin t as of 0 1/07 /201 2 g am oun |
583 ,403 |
9,31 4 |
592 ,717 |
| Acq uisit ions |
13,9 12 |
1,29 7 |
15,2 09 |
| Disp ls osa |
-195 | 0 | -195 |
| Cap italis ed i nter est cha rges |
0 | 577 | 577 |
| Cap italis ed e mplo ben efits yee |
0 | 33 | 33 |
| Oth apit alise d ex er c pen ses |
2,37 1 |
23,6 76 |
26,0 47 |
| Tran sfer s du e to plet ion com |
9,02 9 |
-9,0 29 |
0 |
| Cha s in fair valu nge e |
6,24 8 |
2,76 5 |
9,01 3 |
| Oth boo ked in th e in e st atem ent er e xpe nses com |
0 | 0 | 0 |
| Tran sfer s to ity equ |
-557 | 0 | -557 |
| Car ryin of 3 0/06 /201 t as 3 g am oun |
614 ,211 |
28,6 33 |
642 ,844 |
| Car of 0 1/07 /201 |
|||
| ryin t as 3 g am oun |
614 ,211 |
28,6 33 |
642 ,844 |
| Acq uisit ions |
64,3 43 |
3,42 6 |
67,7 69 |
| Disp ls osa |
0 | 0 | 0 |
| Cap italis ed i cha nter est rges |
0 | 441 | 441 |
| Cap italis ed e mplo ben efits yee |
0 | 20 | 20 |
| Oth apit alise d ex er c pen ses |
1,14 3 |
15,0 37 |
16,1 80 |
| Tran sfer s du e to plet ion com |
22,6 00 |
-22, 600 |
0 |
| Cha s in fair valu nge e |
243 | 747 | 990 |
| Oth boo ked in th e in e st atem ent er e xpe nses com |
0 | 0 | 0 |
| Tran sfer s to ity equ |
0 | 0 | 0 |
| Car ryin of 3 1/12 /201 3 t as g am oun |
702 ,540 |
25,7 04 |
728 ,244 |
The main acquisition of investment property of the half is the following:
| Nam e |
Bus ines s t seg men |
Pro ties per atio valu n* |
Reg iste r of atio cor por ns |
Acq uisi tion date ** |
Acq uisi tion tho d me |
|---|---|---|---|---|---|
| (€ m illio n) |
|||||
| SZ A GO |
Sen ior h ing ous |
21 | - | 1/08 /201 3, |
Acq uisit ion o f bu ildin gs |
| 22/1 1/20 13, |
|||||
| 28/1 2/20 13 |
|||||
| t SA Patr ius I nves |
Sen ior h ing ous |
16 | 047 9.91 0.46 8 |
29/0 8/20 13 |
f sh Acq uisit ion o ares |
| Imm o De jonc ker SA |
Apa rtme nt |
10 | 086 2.08 4.43 1 |
21/1 0/20 13 |
Acq uisit ion o f sh ares |
| build ings |
|||||
| Aed ifica Inv est Dils en S A |
Sen ior h ing ous |
5 | 084 9.34 7.73 7 |
16/1 2/20 13 |
Acq uisit ion o f sh ares |
| De S tiche l SA |
Sen ior h ing ous |
11 | 043 6.37 7.36 3 |
16/1 2/20 13 |
Acq uisit ion o f sh ares |
| Tota l |
63 |
* in order to determine the number of shares issued, the exchange ratio and/or the value of the acquired shares. ** and consolidation date in income statement.
There has been no changes in Aedifica's capital over the first half of 2013/2014. The capital increases that occurred prior to 30 June 2013 are disclosed in the "standing documents" of the 2012/2013 annual financial report. All subscribed shares are fully paid- up, with no par value. The shares are
18 February 2014 – After closing of markets Under embargo until 17:40 CET
registered, bearer, or dematerialised shares and grant one vote each. All Aedifica shares are listed on the Euronext Brussels continuous market.
Aedifica shareholders holding more than 5 % of the Company's outstanding shares are disclosed below (based on declarations of transparency received by Aedifica as of 31/12/2013):
| Sha reh old ers |
Sha re i n ital cap |
|---|---|
| Jub eal Fon dati on |
6.37 % |
| Wul fsdo nck Inve SA (via Fina e SA ) stm ent sucr |
5.46 % |
| Free floa t |
88.1 7% |
| Tota l |
.00% 100 |
Aedifica SA holds 34 treasury shares.
| (x € 1,00 0) |
31/1 2/20 13 |
30/0 6/20 13 |
|---|---|---|
| Non fina ncia l de bts rent -cur |
||
| Borr owin gs |
275 ,951 |
171 ,484 |
| Cur fina ncia l de bts rent |
||
| Borr owin gs |
42,9 57 |
55,7 21 |
| TOT AL |
318 ,908 |
227 ,205 |
As of 31 December 2013, Aedifica has credit facilities (presented as current and non-current financial debts and being financial liabilities at amortised cost according to IAS 39) issued by six banks (Bank für Sozialwirtzchaft, Bank Degroof, Bank LBLux, BNP Paribas Fortis, ING, KBC Bank) in a total amount of €370 million:
The average interest rate, including the spread charged by the bank and the effect of the hedging instruments, was 4.0% after deduction of capitalised interest (4.0% in 2012/2013) and 4.3% before deduction of capitalised interest (4.2% in 2012/2013).
As of 31 December 2013, Aedifica has neither pledged any buildings as collateral for its debts, nor has it granted any other security to debt-holders, except for mortgages on buildings located in Germany in the amount of €14 million.
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The maturity table of Aedifica's credit facilities is as follows (in € million):
| - | 13/ 20 20 14 : |
30 |
|---|---|---|
| - | 20 14/ 20 15 : |
65 |
| - | 20 15/ 20 16 : |
85 |
| - | 20 16/ 20 17 : |
75 |
| - | 20 17/ 20 18 : |
62 |
| - | 20 18/ 20 19 : |
30 |
| - | 20 19/ 202 0 : |
0 |
| - | 202 0/2 021 : |
2 |
| - | > 2 022 /20 23 : |
21 |
| 370 |
Net financial debt is a non-GAAP measure, i.e. its definition is not included in IFRS. Aedifica uses the concept of net financial debt to reflect its indebtedness. It is measured as current and non-current financial debts less cash and cash equivalents. It excludes the fair value of hedging derivatives. The definition of financial debt may differ from that used in the financial statements of other companies .Net financial debt is not taken into account in the computation of the debt-to-assets ratio as defined by the Royal Decree of 7 December 2010.
| (x € 1,00 0) |
31/1 2/20 13 |
30/0 6/20 13 |
|---|---|---|
| Borr owin gs |
318 ,908 |
227 ,205 |
| Less : Ca sh a nd c ash ivale nts equ |
-1,7 78 |
-725 |
| NET FIN ANC IAL DEB T |
317 ,130 |
226 ,480 |
In order to limit the interest rate risk, Aedifica has put in place hedges that turn the floating rate debt into fixed rate debt (cash flow hedges). All hedges are related to existing or highly probable risks. Hedging instruments are either derivatives which meet the strict criteria set by IAS 39 to allow hedge accounting (interest rate swaps, or "IRS"), or derivatives which do not meet these criteria but provide economic hedging against interest rate risk nonetheless (mainly "multi-callable interest rate swaps", or "multi-callable IRS", caps and collars). All hedges are provided in the framework of the hedging policy set out in Note 44 of the 2012/2013 annual financial report. The fair value of hedges is computed by banks based on the present value of the estimated expected cash flows. The tables below list the Company's hedging instruments.
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| Ana lysi of 31 D mbe r 20 13 s as ece Inst ent rum |
Not iona l unt amo (x € 1,00 0) |
Beg inn ing |
Per iod icity (mo nth s) |
Init ial dur atio n (yea rs) |
Firs t da te sib le o f pos the call |
Max hed ged rate (in %) |
Fair val ue (x € 1,00 0) |
|---|---|---|---|---|---|---|---|
| Mult i-ca llabl e IR S* |
29,2 54 |
31/0 7/20 07 |
3 | 36 | 31/0 7/20 17 |
4.39 | -8,2 53 |
| IRS * |
10,6 11 |
1/04 /201 1 |
3 | 32 | - | 4.89 | -3,7 93 |
| Cap | 15,0 00 |
1/01 /201 2 |
3 | 2 | - | 4.02 | 0 |
| IRS | 25,0 00 |
1/10 /201 2 |
3 | 5 | - | 2.99 | -2,0 82 |
| IRS | 15,0 00 |
2/04 /201 3 |
3 | 9 | - | 3.50 | -2,1 23 |
| IRS | 12,0 00 |
3/06 /201 3 |
3 | 9 | - | 3.64 | -1,8 33 |
| IRS | 8,00 0 |
3/06 /201 3 |
3 | 9 | - | 3.67 | -1,2 47 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 3.23 | -2,5 71 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 2.97 | -2,2 70 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 2.70 | -1,9 58 |
| Coll ar |
25,0 00 |
1/10 /201 3 |
3 | 3 | - | 3.00 | -546 |
| Coll ar |
25,0 00 |
1/10 /201 3 |
3 | 3 | - | 3.00 | -398 |
| Cap | 25,0 00 |
1/10 /201 3 |
3 | 2 | - | 1.00 | 11 |
| Cap | 25,0 00 |
1/10 /201 3 |
3 | 1 | - | 1.25 | 0 |
| Cap | 25,0 00 |
1/11 /201 3 |
1 | 1 | - | 0.75 | 0 |
| IRS | 25,0 00 |
3/01 /201 4 |
3 | 7 | - | 3.10 | -2,7 29 |
| Cap | 25,0 00 |
1/10 /201 4 |
3 | 1 | - | 1.25 | 7 |
| Cap | 25,0 00 |
1/11 /201 4 |
3 | 1 | - | 1.00 | 16 |
| Cap | 25,0 00 |
1/11 /201 4 |
3 | 3 | - | 2.50 | 134 |
| Cap | 25,0 00 |
1/11 /201 5 |
3 | 2 | - | 2.50 | 132 |
| TOT AL |
439 ,865 |
-29, 503 |
* Notional amount depreciable over the duration of the swap. Aedifica and the bank may liquidate in advance these contracts every 10 years.
| Ana lysi of 30 J 201 3 s as une Inst ent rum |
Not iona l unt amo (x € 1,00 0) |
Beg inn ing |
Per iod icity (mo nth s) |
Init ial dur atio n (yea rs) |
Firs t da te sib le o f pos the call |
Max hed ged (in %) rate |
Fair val ue (x € 1,00 0) |
|---|---|---|---|---|---|---|---|
| IRS | 25,0 00 |
1/04 /200 7 |
3 | 10 | - | 3.97 | -3,0 04 |
| Mult i-ca llabl e IR S* |
29,7 46 |
31/0 7/20 07 |
3 | 36 | 31/0 7/20 17 |
4.39 | -9,1 15 |
| IRS | 12,0 00 |
1/11 /200 8 |
1 | 5 | - | 4.18 | -169 |
| IRS | 50,0 00 |
30/0 6/20 10 |
3 | 3 | - | 2.21 | -97 |
| IRS * |
10,6 93 |
1/04 /201 1 |
3 | 32 | - | 4.89 | -4,2 68 |
| Cap | 25,0 00 |
3/10 /201 1 |
1 | 2 | - | 2.25 | 0 |
| Cap | 25,0 00 |
1/11 /201 1 |
1 | 2 | - | 1.75 | 0 |
| Cap | 15,0 00 |
1/01 /201 2 |
3 | 2 | - | 4.02 | 0 |
| IRS | 25,0 00 |
1/10 /201 2 |
3 | 5 | - | 2.99 | -2,2 35 |
| IRS | 15,0 00 |
2/04 /201 3 |
3 | 9 | - | 3.50 | -2,3 05 |
| IRS | 25,0 00 |
2/04 /201 3 |
1 | 1 | - | 0.12 | 1 |
| IRS | 12,0 00 |
3/06 /201 3 |
3 | 9 | - | 3.64 | -1,9 85 |
| IRS | 8,00 0 |
3/06 /201 3 |
3 | 9 | - | 3.67 | -1,3 51 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 3.23 | -2,6 67 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 2.97 | -2,3 32 |
| IRS | 25,0 00 |
2/08 /201 3 |
3 | 5 | - | 2.70 | -2,0 02 |
| Coll ar |
25,0 00 |
1/10 /201 3 |
3 | 3 | - | 3.00 | -495 |
| Coll ar |
25,0 00 |
1/10 /201 3 |
3 | 3 | - | 3.00 | -347 |
| Cap | 25,0 00 |
1/10 /201 3 |
3 | 1 | - | 1.25 | 8 |
| Cap | 25,0 00 |
1/10 /201 3 |
3 | 2 | - | 1.00 | 66 |
| Cap | 25,0 00 |
1/11 /201 3 |
1 | 1 | - | 0.75 | 12 |
| Cap | 25,0 00 |
1/10 /201 4 |
3 | 1 | - | 1.25 | 45 |
| Cap | 25,0 00 |
1/11 /201 4 |
3 | 1 | - | 1.00 | 51 |
| Cap | 25,0 00 |
1/11 /201 4 |
3 | 1 | - | 1.00 | 181 |
| Cap | 25,0 00 |
1/11 /201 5 |
3 | 2 | - | 2.50 | 161 |
| TOT AL |
577 ,439 |
-31, 847 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
* Notional amount depreciable over the duration of the swap. Aedifica and the bank may liquidate in advance these contracts every 10 years.
The total notional amount of €440 million presented in the table above is broken down as follows:
The total of the fair value of the hedging instruments presented in the table above (€-29,503 thousand) can be broken down as follows: €301 thousand under line I.E. of the asset side of the consolidated balance sheet and €29,804 thousand under line I.C. of the liability side of the consolidated balance sheet. Taking into account the carrying amount of the upfront premiums paid for the caps and collars (€581 thousand), the IAS 39 impact on equity amounts to - €30,084 thousand.
The amounts recorded in equity will be transferred to net finance costs in line with the payment interest on the hedged financial debt, between 1 July 2013 and 31 July 2043.
As of 31 December 2013, the equity value includes the effective part (according to IAS 39) of the change in fair value (+€1,493 thousand) of the derivatives for which hedge accounting is applied, and the ineffective portion of the 2012/2013 financial year (charge of €137 thousand) that was appropriated by decision of the Annual General Meeting held in October 2013. These financial instruments are "level 2" derivatives (according to IFRS 13p81). The ineffective part (as defined in IAS 39) represents a charge of €123 thousand and is recognised in the financial result (under line "XXIII. Changes in fair value of financial assets and liabilities").
| (x € 0) 1,00 |
31/1 2/20 13 |
30/0 6/20 13 |
|---|---|---|
| Effe ctiv rt of the cha s in fair val f de riva tive e pa nge ue o s |
||
| g of Beg innin the yea r |
-16, 637 |
-17, 906 |
| Cha s in the effe ctive tion of t he f air v alue of h edg ing instr nts ( ac d in tere sts) nge por ume crue |
-1,9 48 |
-4,4 54 |
| Tran sfer to t he i stat nt o f int ts p aid on h edg ing instr nts nco me eme eres ume |
3,30 4 |
5,72 3 |
| AT END OF PE RIO D |
-15, 281 |
-16, 637 |
In addition to the aforementioned charge of €123 thousand, the financial result also includes an income of €1,049 thousand (31 December 2012: a charge of €1,650 thousand), arising from the change in fair value of the derivatives for which hedge accounting is not applied (in line with IAS 39, as listed in the aforementioned framework). These financial instruments are "level 2" derivatives (as defined in IFRS 13p81).
The fair value of hedging instruments is a function of the interest rates on the financial markets. Changes in market interest rates explain most of the change in the fair value of hedging instruments between 1 July 2013 and 31 December 2013, which led to the recognition of an income of €926 thousand in the income statement and of €1,493 thousand directly in equity.
18 February 2014 – After closing of markets Under embargo until 17:40 CET
A change in the interest rate curve would impact the fair value of IRSs for which hedge accounting is applied (in accordance with IAS 39), and recognised in equity (line "I.C.d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS"). All else being equal, a positive change of 10 bps of the interest rate curve at balance sheet date would have had a positive impact on equity in the amount of €803 thousand (30 June 2013: €786 thousand). A negative change of 10 bps of the interest rate curve at balance sheet date would have had a negative impact on equity in the same amount. The influence of a change in the interest rate curve on the fair value (instruments for which hedge accounting under IAS 39 is not applied), cannot be determined as precisely, since options are embedded within these instruments. The fair value of these options will change in a non-symmetric and non-linear pattern, and is a function of other parameters (e.g. volatility of interest rates). The sensitivity of the "mark-to-market" value of these instruments to an increase of 10 bps of the interest rate curve is estimated at + €792 thousand (30 June 2013: + €773 thousand) in the income statement. A decrease of 10 bps of the interest rate curve would have a negative impact on the income statement in the same range.
Earnings per share (« EPS » as defined by IAS 33) are calculated as follows:
| 31/1 2/20 13 |
31/1 2/20 12 |
|
|---|---|---|
| Prof it (lo ss) (Ow of t t) (x €1, 000 €) he p ners aren |
11,3 56 |
16,3 78 |
| Wei ghte d av mbe r of sha outs tand ing d urin g th riod erag e nu res e pe |
9,90 3,14 8 |
7,55 8,30 1 |
| Bas ic E PS (in € ) |
1.15 | 2.17 |
| Dilu ted EPS (in €) |
1.15 | 2.17 |
Aedifica uses profit excluding IAS 39 and 40 to measure its operational and financial performance; however, this performance measure is not defined under IFRS. Profit excluding IAS 39 and IAS 40 represents the profit (attributable to owners of the Parent) after removing changes in fair value of investment properties and hedging instruments. The definition of profit excluding IAS 39 and 40 as applied to the Aedifica financial statements may differ from that used in the financial statements of other companies.
| 31/1 2/20 13 |
31/1 2/20 12 |
|---|---|
| 11,3 56 |
16,3 78 |
| -990 | -9,9 26 |
| 0 | -54 |
| -193 | 0 |
| -926 | 1,79 2 |
| 9,24 7 |
8,19 0 |
| 9,90 3,40 0 |
8,71 5,11 3 |
| 0.93 | 0.94 |
* Based on the dividend rights expected at the end of the financial year.
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| Net alue r sh (in € ) et v ass pe are |
31 D mbe r 20 13 ece |
30 J 201 3 une |
|---|---|---|
| Bas ed o n fa ir va lue of in tme nt p rties ves rope |
||
| Net lue excl . IAS 39 t va asse |
41.0 5 |
40.2 3 |
| IAS 39 i ct mpa |
-3.0 4 |
-3.2 8 |
| Net lue t va asse |
38.0 1 |
36.9 5 |
| g (e s) Num ber of s hare tsta ndin xcl. tre hare s ou asu ry s |
9,90 3,65 6 |
9,90 2,99 8 |
Recall that IFRS requires the presentation of the annual accounts before appropriation. Net assets in the amount of €38.59 per share as of 30 June 2013 published in the 2012/2013 annual financial report thus still included the dividend subsequently distributed in November 2013, and should be adjusted by €1.64 per share in order to compare with the value as of 31 December 2013. This amount corresponds to the amount of the total dividend (€16.2 million) divided by the total number of shares outstanding as of 30 June 2013 (9,902,998) and is less than coupons No. 10 and No. 11 which amount to €1.86 per share (certain shares held only rights to a prorata temporis dividend).
A statement of contingencies and commitments as of 30 June 2013 is provided in Note 45 of the consolidated financial statements presented in the 2012/2013 annual financial report (see pages 140- 143). No significant changes are to be mentioned at the end of the first half of the current financial year, except for the items listed below.
In the framework of the long lease with Armonea, Aedifica committed to finance the renovation and redevelopment of the Salve rest home for a maximum budget of €8.4 million. The works are currently in progress.
In the framework of the long lease with Armonea, Aedifica committed to finance the renovation and extension of the Plantijn rest home for a maximum budget of €7.6 million. The development permit has been obtained and works are currently in progress.
The General Meeting of 25 October 2013 approved the distribution of the result proposed by the Board of Directors for the 2012/2013 financial year. A dividend of €1.86 was therefore granted for the shares entitled to the full dividend, and the payment was issued on 4 November 2013 (coupons No. 10 and No. 11). An adapted dividend was awarded to the shares which were temporarily not entitled to the full dividend. The total dividend distribution amounted to €16.2 million (corresponding to an average coupon of €1.64 per share).
18 February 2014 – After closing of markets Under embargo until 17:40 CET
No significant subsequent events require a mention in these condensed consolidated financial statements.
Related party transactions relate exclusively to the remuneration of the Company's Directors and Executive Managers (€0.6 million for the first half of the 2013/2014 financial year; €1.1 million for the 2012/2013 financial year).
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Report of the statutory auditor to the shareholders of Aedifica SA on the review of the interim condensed consolidated financial statements as of 31 December 2013 and for the six months then ended
We have reviewed the accompanying interim condensed consolidated balance sheet of Aedifica SA (the "Company") as at 31 December 2013 and the related interim condensed consolidated statements of income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ("IAS 34") as adopted for use in the European Union. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
We conducted our review ("revue limitée/beperkt nazicht") in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" applicable to review engagements. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing (ISA) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements do not present fairly, in all material respects, the financial position of the consolidated entity as at 31 December 2013, and of its financial performance and its cash flows for the six-month period then ended in accordance with IAS 34, as adopted for use in the European Union.
Brussels, 17 February 2014 Ernst & Young Reviseurs d'Entreprises sccrl Statutory auditor represented by Jean-François Hubin Partner
18 February 2014 – After closing of markets Under embargo until 17:40 CET
This half year financial report contains forward looking information involving risks and uncertainties, in particular statements concerning Aedifica's plans, objectives, expectations and intentions. It is brought to the attention of the reader that these statements may involve known or unknown risks and be subject to significant uncertainties on operational, economic and competitive plans many of which are outside the Company's control. In the event that some of these risks and uncertainties were to materialise, or should the assumptions prove incorrect, actual results may deviate significantly from those anticipated, expected, projected or estimated. In this context, Aedifica assumes no responsibility for the accuracy of the forward looking information provided.
Mr. Pierre Iserbyt, independent Director of Aedifica, and Mr. Stefaan Gielens, CEO of Aedifica, declare that to the best of their knowledge:
*****
The English version of this press release constitutes a free translation of the text in the French language, made for information purposes only. In case of inconsistency with the French version or inaccuracy of the English translation, the French text shall prevail.
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| I. | Inte rim Bo ard of Di tor s' r rt rec epo |
. 2 |
|---|---|---|
| 1. | st h Su of of 1 alf the tivi ties the mm ary ac |
2 |
| 2. | Intr odu ctio n |
4 |
| 3. | Imp orta nt e ts . ven |
4 |
| 4. | Po rtfo lio of 3 1 D mb er 2 013 as ece |
1 0 |
| 5. | Gro ield by ent ss y se gm |
1 2 |
| 6. | An aly sis of t he hal f ye olid ate d a unt ar c ons cco s |
1 3 |
| 7. | Ou tloo k |
18 |
| 8. | Ra nki Ae difi ng ca |
1 9 |
| 9. | Pri nci l ris ks and tain ties pa un cer |
19 |
| 10. | Re late d p arty tra ctio nsa ns . |
2 0 |
| 11. | Co rate rpo go ver nan ce . |
20 |
| 12. | Ind nde nt r eal tate t epe es ex per |
20 |
| II. | EP RA |
2 1 |
| III. | dif ica in Ae the st k m ark et . oc |
22 |
| 1. | Sto ck ice d v olu pr an me |
2 2 |
| 2. | Gra hic illu tion f A edi fica 's s k p rice stra toc p s o |
. 24 |
| 3. | Sh hol din truc ture are g s |
25 |
| 4. | Sh hol der s' c ale nda are r |
25 |
| IV. | Pro ty ort per rep |
2 6 |
| 1. | Co lida ted rty tfol io . nso pr ope por |
26 |
| 2. | ortf Ma rke tab le i stm ent rtie olio aly sis nve pr ope s p an |
30 |
| 3. | The al e ark sta te m et . re |
3 2 |
| 4. | Exp ' re erts t por |
3 7 |
| V. | Co nde d c lida ted fin ial sta tem ent nse on so anc s |
3 9 |
| 1. | Co lida ted inc tate nt . nso om e s me |
3 9 |
| 2. | Co lida ted sta tem ent of hen siv e in nso com pre com e |
4 0 |
| 3. | Co lida ted ba lan she et . nso ce |
40 |
| 4. | Co flow lida ted sh sta tem ent nso ca |
4 2 |
| 5. | Co lida ted of cha s in uity sta tem ent nso nge eq |
43 |
| 6. | No tes |
. 44 |
| 7. | Au dito rs' ort ( lim ited iew ) rep rev |
5 7 |
| VI. | Fo rd loo kin tat ent rwa g s em |
5 8 |
| VII | Re nsi ble sta tem ent spo pe rso ns |
58 |
18 February 2014 – After closing of markets Under embargo until 17:40 CET
Public REIT under Belgian law since 8 December 2005 Avenue Louise, 331 in 1050 Brussels Tel : +32.2.626.07.70 Fax : +32.2.626.07.71 VAT - BE 0877.248.501 – Registry of Legal Entities of Brussels www.aedifica.be
Auditor Ernst & Young Réviseurs d'Entreprises SCCRL, represented by Jean-François Hubin, Partner Real estate experts Stadim CVBA and de Crombrugghe & Partners NV Financial year 1 July - 30 June
Stefaan Gielens, CEO – [email protected] Jean Kotarakos, CFO – [email protected] Martina Carlsson, Control & Communication Manager – [email protected]
This half year financial report is also available in French and Dutch37.
37 The French version of this document has true value. The Dutch and English versions are translations and are written under the responsibility of Aedifica.
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