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ATENOR
Quarterly Report • Sep 3, 2020
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Quarterly Report
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HALF YEAR FINANCIAL REPORT 2020
La Hulpe, 3 September 2020
A. Interim Management Report
The first half of 2020 closed with a consolidated net profit (group share) of 19.62 million Euro, an increase compared to a result of 6.30 million Euro registered for the first half of 2019.
In the first half of 2020, it is mainly margins generated on sold and pre-sold projects, both office and residential, both in Western Europe and in Central Europe that generated this result. The lease revenues of the Hermès Business Campus (HBC, Bucharest), University Business Campus (UBC, Warsaw) and Nysdam (La Hulpe, Belgium) buildings have also brought a significant contribution. Revenues in this semester has once again been diverse with 8 projects contributing to the results.
| Results | 30.06.2020 | 30.06.2019 |
|---|---|---|
| Net consolidated result (group share) | 19,624 | 6,297 |
| Profit per share (in Euro) | 3.69 | 1.18 |
| Number of shares | 7,038,845 | 5,631,076 |
| of which own shares | 313,427 | 313,427 |
| Balance sheet | 30.06.2020 | 31.12.2019 |
| Total assets | 979,461 | 837,975 |
| Cash position at the end of the period | 107,808 | 45,447 |
| Net indebtedness (-) | -492,113 | -494,530 |
| Total of consolidated equity | 260,313 | 187,048 |
Table of key consolidated figures ('000 Euro) - Limited review of the auditor
Revenue from ordinary activities and consolidated result
The revenues from ordinary activities as at 30 June 2020 amounted to 54.50 million Euro. They mainly consist of (a) revenues from the sale of apartments in residential projects (City Dox, The One, Au Fil des Grands Prés, La Sucrerie) for a total of 12.55 million Euro (b) the revenue earned from the sales in future state of completion of the BuzzCity (Leudelange) and Vaci Greens E (Budapest) projects (€31.93 M) as well as (c) lease revenues on the Hermes Business Campus (Bucharest), University Business Center (Warsaw) and Nysdam (La Hulpe) buildings totalling €7.71 million euros.
The other operating revenue (€27.82M) mainly includes an additional price relating to the disposal of the shareholding in The One Office SA, following the signing by the European Commission of the usufruct agreement on the building (€20.05M), the usufruct receivables (retroceded to Immo Beaulieu SA) on the Beaulieu building for the first half of 2020 (€3.47M) as well as the reinvoicing of service charges and miscellaneous costs of the leased buildings (€2.71M).
The operating result amounts to 27.74 million Euro. It is mainly influenced by the sale of apartments of the various residential projects referred to above (total of €2.91M), by results on the presold office buildings BuzzCity and Vaci Greens E (€8.58 M), by the rental revenue net of charges of the HBC, UBC and Nysdam buildings (total of €5.54M) as well as by the complementary net result relating to the disposal of The One Office SA (€14.54M).
The net financial result amounts to -4.53 million Euro compared with -5.54 million Euro for the first half of 2019. The decrease of net financial charges over the first half year is mainly due to the light drop in the Group's average net debt, coupled with a rise in interest capitalizations (IAS 23 – €+0.82M compared to 2019), relating to the developments in progress.
Taxes amounted to 3.01 million Euro on 30 June 2020 and are mainly composed of current tax and deferred tax liabilities mainly relating to the Vaci Greens, City Dox, BuzzCity and Au Fil des Grands Prés projects (total of €2.69M).
The net result (group share) of the first half of the financial year amounts to 19.62 million Euro.
Consolidated balance sheet
The consolidated shareholders' equity amounts to 260.31 million Euro, which represents 26.6 % of the balance sheet total, a rise of 73.27 million euros compared to 31 December 2019, due mainly to the capital increase realized on 30 June 2020.
As at 30 June 2020, the Group has a net consolidated indebtedness of 492.11 million Euro (excluding cash) compared with a net consolidated indebtedness of 494.53 million Euro as at 31 December 2019, thus remaining stable.
The "buildings held for sale" classified under "Inventories (Stock)" represent the real estate projects in portfolio and in the course of development. This item amounts to 665.92 million Euro, a net increase of 57.90 million Euro in comparison with 31 December 2019. This change is mainly due to (a) the continuation of works and studies of Vaci Greens, Arena Business Campus (Budapest), Com'Unity (Bezons), @Expo, Dacia, UP-site Bucharest and City Dox (Brussels) projects representing in total 93.36 million Euro, (b) the apartment sales of the City Dox, Au Fil des Grands Prés, La Sucrerie projects and the presold BuzzCity and Vaci Greens E office buildings, which have decreased the stock by 31.77 million Euro. The remaining balance of the net variation of this item (€-3.69M) comes from variations on the other projects in development.
Projects in our portfolio
In the course of the first half of the year, ATENOR continued to develop its business, with 29 projects in portfolio for a total of more than 1,270,000 m², taking particular care to make them part of an indisputably sustainable approach.
As a reminder, the relative shares of each region/city within the portfolio are calculated according to authorized effective surface areas (permits) or potentially buildable surfaces (under consideration or in the course of being approved).
The projects have seen the following developments:
➢ BRUSSELS REGION (22.43% of the portfolio):
THE ONE - European District, rue de la Loi, Brussels (offices and residential)
The agreement reached with the OIB in November 2019 on taking the whole building in usufruct was followed by the signing of the agreement on 29 June 2020, involving the payment of an additional price on the sale of the shares of The One Office company.
REALEX [90% ATENOR] – European District, between the rues de la Loi & de Lalaing, Brussels (58,400 m² of offices)
The permit application amended in line with the recommendations of the impact study completed in February 2020, was lodged in August 2020. The Conference Centre variant has been retained, in view of favourable developments in the contacts with the OIB in the context of a competitive dialogue on the acquisition of a conference centre replacing the current Borschette.
CITY DOX - Canal area, quai de Biestebroeck, Anderlecht (approx. 117,500 m² mixed)
The construction of phase 2 (including 181 residential units of which 99 subsidized) is continuing. Almost all the apartments (97%) have been sold. With regard to phase 3, the permit application, notably for 171 residential units, is under consideration. The winners of the architectural competition for the creation of a school and residential complex (phase 4) will be announced in September.
VICTOR [50% ATENOR] – Midi neighbourhood, opposite the South Station (Gare du Midi), Brussels (94,300 m² mixed)
This project has been reworked to fit into the main lines of the "Midi" PAD project, as governed by policy. The administration has again been tending to slow down the elaboration of the PAD, even though it is in a neighbourhood that direly needs development. Like other actors in the neighbourhood, we are waiting for the PAD to be submitted to a public enquiry in the near future. The Victor project includes 72,500 m² of offices and over a hundred affordable, passive apartments which have been selected by CityDev via a call for projects.
CCN [33% ATENOR] – Schaerbeek and St Josse districts, next to the North Station (Gare du Nord) (± 130,000 m² mixed)
Studies are moving satisfactorily towards the submission of a planning application for the whole site in the course of 2020.
BEAULIEU – Avenue Beaulieu, 5 to 11, Auderghem (around 24,500 m² of offices)
A short-term extension is under negotiation with the OIB, the current occupant of the premises. In parallel, ATENOR is studying a major renovation of these two buildings, in close collaboration with the neighbouring property owner, with a view to lodging a permit application before the end of 2020.
➢ FLANDERS (1.26 % of the portfolio):
DE MOLENS [50% ATENOR] – City Centre, Tolpoort road, Deinze (mixed residential & retail project of ± 32,000 m²)
An application for a first phase was lodged in April 2020 and the permit is expected for the fourth quarter of 2020. Marketing will be launched as soon as the permit is received.
➢ WALLONIA (7.41% of the portfolio):
LES BERGES DE L'ARGENTINE – La Hulpe (residential [80% ATENOR] 27.000 m² and offices[100% ATENOR] 4.000 m²) New studies are underway for the development of an overall project on the whole of the site, following the agreement reached in December 2019 with the neighbouring owner, aimed at putting forward a shared vision matching the requirements of the Municipality, reflected in the studies of the Communal Issue Zone. A new application will be submitted in the course of this year.
In parallel, the office building has now welcomed its fourth tenant.
LE NYSDAM – La Hulpe (15,575 m² office building)
The building has an occupancy rate of 100% since December 2019. ATENOR still intends to sell it as soon as the right market conditions are met.
AU FIL DES GRANDS PRÉS – "Les Grands Prés" shopping precinct district, Mons (approx. 53,000 m² mixed)
The permit for the office part (14,600 m²) has been obtained. Work will start shortly, since these buildings have been completely sold (2,900m² to the ONEM, 8,600m² to the Wallonia-Brussels Federation and 3,100m² to the TEC).
A permit application has been lodged for the first phase of 111 residential units. The permit is expected for the end of 2020.
LA SUCRERIE – Ath (183 residential units, 5 retail units, 1 nursery) The sale of the last apartments is continuing.
➢ NETHERLANDS (2.28% of the portfolio):
VERHEESKADE [50% ATENOR] – The Hague, Netherlands (Residential/commercial – 58,000m²)
On 2 July 2020, ATENOR reached an agreement, under the customary conditions, with a view to acquiring a 50% share alongside a prominent local actor, in a 58,000m² development project. The permit application is underway.
➢ LUXEMBOURG (6.88% of the portfolio) :
TWIST – Belval, Grand-Duchy of Luxembourg (offices, housing and retail units – 15,060 m²)
The building permit application was lodged at the end of 2019, and the granting of the permit is expected before the end of 2020. Marketing of the offices and dwellings will be launched as soon as the permit is received.
BUZZCITY – Leudelange, Grand-Duchy of Luxembourg (office building – 16,800m²)
Construction work is continuing according to plan. It may be recalled that in December 2018, the project was sold before completion. Marketing of the office building is in progress.
LANKELZ [50% ATENOR] - Esch-sur-Alzette, Grand-Duchy of Luxembourg (mixed: residential, retail and offices – 67,850 m²)
Studies are continuing and a permit application for the whole project will be submitted at the end of 2020.
SQUARE 42 – Central Square, Esch-sur-Alzette, Grand-Duchy of Luxembourg (21,600 m² mixed: offices & retail)
This project, acquired after a contest, comprises the development of a building with 20,343 m² of office and 1,238 m² of retail space. A permit application will be submitted in Q4-2020.
➢ PARIS (4.64% of the portfolio):
COM'UNITY 1 [99% ATENOR] – Bezons (Paris) – (33,800 m² of offices)
The construction work started up again after halting for a few weeks, but without affecting the scheduled completion date (third quarter of 2021). In a generally sluggish market, it is being marketed on the basis of differentiated sales pitches that offer a specific response to the work organization issues raised by the health crisis. Contacts are underway.
U'MAN – Bezons (Paris) – (25,450 m² of offices)
Located nearby Com'Unity, this project has had since end 2019 a permit free of all claims authorizing the construction of 25,500 m² of offices.
➢ DÜSSELDORF (1.44% of the portfolio):
AM WEHRHAHN – Shopping Street Am Wehrhahn in Düsseldorf city centre – (4,245 m² of housing and retail) The General Contractor started the construction work in April. It should take 21 months. Marketing is directed towards a block sale before completion.
HEINDRISCHSTRASSE – UNIVERSITY DISTRICT, Düsseldorf – (14.000m² of offices)
In July 2020, ATENOR signed, via a new subsidiary, a sale agreement for the acquisition of a second project in Düsseldorf. This will be the first office development that ATENOR will undertake in Germany. The start of marketing is planned for the near future, as the city of Düsseldorf has approved the implementation of this project by advanced decision.
➢ LISBON (2.29% of the portfolio):
WELLBE – District of the 1998 Universal Exhibition, Lisbon – (27,850 m² of offices and 1,250 m² of retail) The permit application was submitted in November 2019. It covers 27,850 m² of offices and 1,250 m² of retail space. The permit is expected to be granted at the end of 2020, enabling marketing to begin.
➢ WARSAW (24.14% of the portfolio):
UNIVERSITY BUSINESS CENTER – Mokotow quarter of Warsaw, Poland – (56,790 m² of offices)
A first permit application was submitted for the demolition of the first existing building (UBC I) and construction of the new class A building, with a leasable surface area of 24,000 m². The permit is expected to be granted at the end of 2020, enabling marketing to begin. In the meantime, the two buildings are generating an annual lease income of 2.7 million Euro.
FORT 7 – district of the Chopin airport, Warsaw – (250,000 m² of mixed use)
Discussions with the city concerning the adaptation of the master plan resumed as soon as the lockdown ended. Studies on the development of a first hotel-office phase have progressed.
➢ BUDAPEST (13.29% of the portfolio):
VACI GREENS – Vaci Corridor, Budapest (blocks E: 26,025 m² and F: 27.525 m² of offices)
The 5 th (E) and 6th (F) buildings of this campus are under construction and marketing. Building F has been delivered in the 2nd quarter of 2020, building E will be achieved in the 3rd quarter without any foreseen interference from the health crisis. As a reminder, building E has been sold in a future state of completion. The conclusion in April of a new lease on 7,500 m² brought the pre-lease rate up to 40%. The Vaci Greens F building is already 70% pre-leased and is on the market for sale.
ARENA BUSINESS CAMPUS – Boulevard Hungària, Budapest (80,400 m² of offices)
Construction of the first building (A) was completed in April, within the announced deadlines; the building is 15% pre-leased and marketing is continuing on a still active market.
In parallel, the foundation work for the second building ("B") is drawing to a close.
ROSEVILLE – Becsi Street 68-70 and 74-80, District 3 of Budapest (16,150 m² of offices and retail) The permit application was lodged in June and the permit is expected before the end of 2020. Meanwhile, it has been possible to start some foundation works.
BAKERSTREET – Hengermalonut 18, Buda South District, Budapest (18,750 m² of offices and retail) A permit application will be lodged in the third quarter of 2020. Granting of the permit is expected by the end of 2020, enabling marketing to begin.
➢ BUCHAREST (13.96% of the portfolio):
HERMES BUSINESS CAMPUS – Boulevard D. Pompeiu, Bucharest (75,130 m² of offices)
The buildings have been refinanced, long-term, for a sum of €80 million in August 2020. Given the attractive return on invested capital generated by this asset, and taking the new financing arrangements into account, ATENOR has at its disposal the flexibility needed in order to seek optimal sales conditions from investors, in an investment market that remains attractive in the long term but is currently going through a period of pause due to the health crisis.
In the meantime, these buildings have had their leases renewed and are generating rental income of approx. €10.3 million per year. The health crisis has not had any material impact on the rental income (impact of less than €0.1 million).
DACIA ONE – Intersection of Calea Victoria and Boulevard Dacia, CBD, Bucharest (16,300 m² of offices and retail))
Construction work began during February 2020 and should finish during the third quarter of 2021. As a reminder, the building is 100% pre-leased and is available for sale.
@EXPO – Avenue Expozitiei, Bucharest (54,720 m² of offices and retail)
Work on the first part was launched in February 2020. The first pre-lease, concluded with the multinational Gameloft for 3,000 m², has already been extended to a further 1,500m², bringing the prelease rate up to 20% of the part under construction.
UP-SITE BUCHAREST – Floreasca/Vacarescu district, Bucharest (2 towers for 31,250 m² residential and retail) The construction permit was obtained in June 2020. Pre-marketing is envisaged in a mid to high end residential market that is still active in Bucharest.
Other information – Capital increase
The public offering launched as part of the capital increase of €77,427,295 was completed successfully. The quotation of the 1,407,769 new shares in ATENOR began on 30 June 2020.
After successfully addressing the bond market and widely diversifying its sources of funding, ATENOR increased its equity in order to pursue its plan for growth and international diversification, based on a strong balance sheet.
The net proceeds of the capital increase (€76,289,701) will be assigned to the acquisition of new projects, with the aim of intensifying the diversification of the project portfolio.
The proceeds from the capital increase will also serve, if required, to finance construction work on the projects that have received a building permit.
Principal risks and uncertainties
The Board of Directors monitors the analysis and management of the various risks and uncertainties which ATENOR and its subsidiaries are confronted with as written in the annual report. As of 30 June 2020, ATENOR was not confronted with any litigation.
Impacts of the Covid-19 crisis and prospects for FY 2020 and 2021
As previously reported, ATENOR adopted a proactive, targeted attitude right from the first confirmed signs of the Covid-19 health crisis, thus protecting staff health and business continuity.
During the first half year, the essential development phases (studies, permit applications, permit examination, permit delivery, construction, renting and sales) did, to varying degrees, slow down and sometimes momentarily come to a standstill, but we have noted only a limited impact on the development of the projects and the earnings formation process (less than €0.5M) that could be attributable to the health crisis and the lockdown.
On the contrary, ATENOR experienced a number of highlights during the first half year, notably the signing of the usufruct contract with the OIB for the occupation of the office building The One and the sale before completion of the Grands Prés offices in Mons. The size of the half year results witnesses this.
That said, for several months now, a clear general economic slow-down has been settling in across Europe, more or less intensively depending of the country and the region.
This economic slow-down could have an impact on ATENOR's 2020 results and more probably on its 2021 results.
Several types of impact are possible:
- We can, however, rule out the occurrence of direct material costs due to the health crisis.
- Delays in the procedures for granting building permits, due to administrative slow-downs.
- In the case of sales before completion (offices and housing), obtaining authorizations is a prerequisite for including sales proceeds in the results. Thus some projects could lag from 2020 into 2021 and from 2021 into 2022, because of administrative delays.
- A clear slow-down in corporate decision-making on office rentals more so in Western Europe than in Central Europe. The drop in office space rental take-up recorded from the second quarter of 2020 onwards could delay sales of real estate projects. This situation might lead to a deferral of the 2020 result to 2021 and of the 2021 result to 2022.
As also previously reported, ATENOR's 2020 results rely on several income sources:
- Earnings already achieved on sales before completion (offices and residential) and progressively generated during construction, to which must be added the impact of the signing of the usufruct agreement for The One.
- Rental earnings from post- or pre-development projects.
On the basis of the transactions already concluded, ATENOR's annual result should amount to at least €20M.
Based on contacts in progress, with a view to market and sell projects in portfolio, the 2020 annual result should be comparable to that for 2019. This trend will, where appropriate, be confirmed through our communications over the coming months, as soon as the factors not yet taken into account at this stage have been definitively endorsed.
As regards cash management, given the capital increase in June 2020 and the refinancing of HBC put in place in August 2020, ATENOR has sufficient liquidity at its disposal, notwithstanding the economic slowdown and the implementation of new project disposals, to ensure the development of portfolio projects and the continuation of its policy of international growth, although certainly with more targeting and opportunism, reflecting the current economic situation. In this regard, ATENOR recently proceeded to two new major acquisitions: a first project in the Netherlands, and a first office project in Germany.
As part of its policy of diversified, recurrent financing, and following the recent strengthening of its equity, ATENOR envisages a return to the money market, but depending on the financial environment.
The state of the economy will have a great influence on the real estate market in 2021. ATENOR's presence in two segments of the property market, office and residential, and in 9 countries that react differently, should enable ATENOR to reduce the impact of an economic crisis whose effects are yet unknown. As mentioned above, however, it is not possible at this stage to rule out a slide towards 2022 in the conclusion of several project sales.
On the strategic side, it would be premature to draw conclusions on the impact of the health crisis on the property market, and particularly on that for offices and housing.
Just as with the advent of coworking in recent years, followed by its present downturn, the long-term impact of teleworking on offices and housing will certainly be more qualitative than quantitative in terms of conception and location.
Applying new trends is recognized to be one of ATENOR's great skills. So these changes are an interesting development and are part of a promising general environmental context.
Moreover, the search for European-level ways out of the crisis shows the relevance of ATENOR's European presence.
Dividend policy
ATENOR intends to maintain its dividend policy providing shareholders with an attractive and recurrent return. The gross amount of the last dividend paid, on 29 April 2020, was 2.31 Euro (as against 2.20 Euro in 2019).
Financial calendar
Intermediate declaration for third quarter 2020 Wednesday 18 November 2020 Publication of the annual results for 2020 Monday 8 March 2021 Annual General Meeting 2020 Friday 23 April 2021
Contact and Information
For more detailed information, please contact Stéphan Sonneville SA, CEO or Mr Sidney D. Bens, CFO.
+32-2-387.22.99 - 4 +32-2-387.23.16 - e-mail: [email protected] - www.atenor.eu
B. Summary Financial Statements
Consolidated statement of comprehensive income
| In thousands of EUR | |||
|---|---|---|---|
| Notes | 30.06.2020 | 30.06.2019 | |
| Operating revenue | 54.503 | 31.855 | |
| Turnover | 46.502 | 23.565 | |
| Property rental income | 8.001 | 8.290 | |
| Other operating income | 27.817 | 8.149 | |
| Gain (loss) on disposals of financial assets | 19.283 | 4.914 | |
| Other operating income | 8.543 | 3.224 | |
| Gain (loss) on disposals of non-financial assets | -9 | 1 1 |
|
| Operating expenses (-) | -54.579 | -26.797 | |
| Raw materials and consumables used (-) | -84.964 | -66.848 | |
| Changes in inventories of finished goods and work in progress | 67.554 | 60.509 | |
| Employee expenses (-) | -738 | -2.269 | |
| Depreciation and amortization (-) | -304 | -243 | |
| Impairments (-) | -8 | 853 | |
| Other operating expenses (-) | -36.119 | -18.799 | |
| RESULT FROM OPERATING ACTIVITIES - EBIT | 27.741 | 13.207 | |
| Financial expenses (-) | -5.304 | -5.640 | |
| Financial income | 774 | 9 6 |
|
| Share of profit (loss) from investments consolidated by the equity method | -677 | 1 8 |
|
| PROFIT (LOSS) BEFORE TAX | 22.534 | 7.681 | |
| Income tax expense (income) (-) | 7 | -3.013 | -1.456 |
| PROFIT (LOSS) AFTER TAX | 19.521 | 6.225 | |
| Post-tax profit (loss) of discontinued operations | 0 | 0 | |
| PROFIT (LOSS) OF THE PERIOD | 19.521 | 6.225 | |
| Non controlling interests | -103 | -72 | |
| Group profit (loss) | 19.624 | 6.297 |
EARNINGS PER SHARE
| 30.06.2020 | 30.06.2019 | ||
|---|---|---|---|
| Total number of issued shares | 7.038.845 | 5.631.076 | |
| of which own shares | 313.427 | 313.427 | |
| Weighted average number of shares (excluding own shares) | 5.325.384 | 5.350.260 | |
| Basic earnings | 3,69 | 1,18 | |
| Diluted earnings per share | 3,69 | 1,18 | |
| Other elements of the overall profit and losses | In thousands of EUR | ||
| 30.06.2020 | 30.06.2019 | ||
| Group share result | 19.624 | 6.297 | |
| Items not to be reclassified to profit or loss in subsequent periods : | |||
| Employee benefits | |||
| Items to be reclassified to profit or loss in subsequent periods : | |||
| Translation adjusments | -8.660 | -2.037 | |
| Cash flow hedge | 1 3 |
-52 | -488 |
| Tax | |||
| Overall total results of the group | 10.912 | 3.772 |
Overall profits and losses of the period attributable to third parties -103 -72
B. Summary Financial Statements (continued)
Consolidated statement of the financial position
ASSETS
| In thousands of EUR | ||||
|---|---|---|---|---|
| Notes | 30.06.2020 | 30.06.2019 | 31.12.2019 | |
| NON-CURRENT ASSETS | 111.239 | 48.269 | 118.690 | |
| Property, plant and equipment | 1 0 |
3.627 | 2.423 | 3.406 |
| Intangible assets | 5 1 |
139 | 8 7 |
|
| Investments consolidated by the equity method | 60.291 | 24.750 | 59.676 | |
| Deferred tax assets | 5.518 | 5.808 | 5.261 | |
| Other non-current financial assets | 13.601 | 12.177 | 12.503 | |
| Non-current trade and other receivables | 28.151 | 2.972 | 37.757 | |
| CURRENT ASSETS | 868.222 | 673.966 | 719.285 | |
| Inventories | 9 | 665.923 | 522.430 | 608.025 |
| Other current financial assets | 4 | 28.244 | 18.393 | 6.159 |
| Current tax assets | 1.816 | 819 | 776 | |
| Current trade and other receivables | 84.819 | 44.346 | 54.116 | |
| Current loans payments | 4 1 |
1 4 |
1 5 |
|
| Cash and cash equivalents | 4 | 80.010 | 80.966 | 43.745 |
| Other current assets | 7.369 | 6.998 | 6.449 | |
| TOTAL ASSETS | 979.461 | 722.235 | 837.975 |
LIABILITIES AND EQUITY
| 30.06.2020 | 30.06.2019 | 31.12.2019 | ||
|---|---|---|---|---|
| TOTAL EQUITY | 260.313 | 157.654 | 187.048 | |
| Group shareholders' equity | 257.603 | 154.780 | 184.251 | |
| Issued capital | 133.621 | 57.631 | 57.631 | |
| Reserves | 139.055 | 112.223 | 141.693 | |
| Treasury shares (-) | -15.073 | -15.074 | -15.073 | |
| Non controlling interest | 2.710 | 2.874 | 2.797 | |
| Non-current liabilities | 391.532 | 374.374 | 423.801 | |
| Non-current interest bearing borrowings | 5 | 329.277 | 368.896 | 364.888 |
| Non-current provisions | 5.433 | 480 | 4.792 | |
| Pension obligation | 701 | 455 | 701 | |
| Derivatives | 1 3 |
403 | 488 | 351 |
| Deferred tax liabilities | 2.793 | 1.506 | 3.967 | |
| Non-current trade and other payables | 50.382 | 1.149 | 47.034 | |
| Other non-current liabilities | 2.543 | 1.400 | 2.068 | |
| Current liabilities | 327.616 | 190.207 | 227.126 | |
| Current interest bearing debts | 5 | 270.644 | 141.895 | 175.089 |
| Current provisions | 724 | 1.895 | 1.352 | |
| Current tax payables | 4.647 | 2.703 | 2.262 | |
| Current trade and other payables | 43.817 | 30.481 | 40.296 | |
| Other current liabilities | 7.784 | 13.233 | 8.127 | |
| TOTAL EQUITY AND LIABILITIES | 979.461 | 722.235 | 837.975 |
B. Summary Financial Statements (continued)
Consolidated cash flow statement (indirect method)
| Notes | In thousands of EUR | |||
|---|---|---|---|---|
| 30.06.2020 | 30.06.2019 | 31.12.2019 | ||
| Operating activities | ||||
| - Net result | 19.624 | 6.297 | 37.777 | |
| - Result of non controlling interests | -103 | -72 | -149 | |
| - Result of Equity method Cies | 677 | -18 | 638 | |
| - Net finance cost | 4.546 | 4.628 | 9.602 | |
| - Income tax expense | 7 | 4.441 | 546 | 1.396 |
| - Result for the year | 29.185 | 11.381 | 49.264 | |
| - Depreciations | 304 | 243 | 532 | |
| - Impairment losses | 8 | -853 | -281 | |
| - Translation adjustments | 2.767 | 4 2 |
-14 | |
| - Provisions | 1 2 |
-3.314 | 466 | |
| - Deferred taxes | 7 | -1.428 | 910 | 3.919 |
| - (Profit)/Loss on disposal of fixed assets | -19.273 | -4.925 | -37.860 | |
| - SOP / IAS 19 | -1.266 | 471 | 773 | |
| - Adjustments for non cash items | -18.876 | -7.426 | -32.465 | |
| - Variation of inventories | -69.981 | -63.659 | -151.471 | |
| - Variation of trade and other amounts receivables | -1.526 | 15.836 | -16.884 | |
| - Variation of trade payables | 3.769 | -1.131 | 4.815 | |
| - Variation of amounts payable regarding wage taxes | -334 | -292 | 9 3 |
|
| - Variation of other receivables and payables | 4.439 | -4.683 | 9.672 | |
| - Net variation on working capital | -63.633 | -53.929 | -153.775 | |
| - Interests received | 98 | 95 | 191 | |
| - Income tax (paid) received | -3.103 | -590 | -1.828 | |
| Cash from operating activities (+/-) | -56.329 | -50.469 | -138.613 | |
| Investment activities | ||||
| - Acquisitions of intangible and tangible fixed assets | -538 | -1.008 | -2.187 | |
| - Acquisitions of financial investments | -1.291 | -10.003 | -14.206 | |
| - New loans | -1.099 | -310 | -807 | |
| - Subtotal of acquired investments | -2.928 | -11.321 | -17.200 | |
| - Disposals of intangible and tangible fixed assets | 11 | 11 | ||
| - Disposals of financial investments | 20.836 | |||
| - Reimbursement of loans | 0 | 2 | 177 | |
| - Subtotal of disinvestments | 0 | 1 3 |
21.024 | |
| Cash from investment activities (+/-) | -2.928 | -11.308 | 3.824 | |
| Financial activities | ||||
| - Increase in capital | 76.006 | 0 | 0 | |
| - Decrease in capital | 0 | 0 | 0 | |
| - Treasury shares | 0 | -5.068 | -5.067 | |
| - Proceeds from borrowings | 75.684 | 102.174 | 164.580 | |
| - Repayment of borrowings | -11.233 | -31.247 | -64.654 | |
| - Interests paid | -4.660 | -3.337 | -8.744 | |
| - Dividends paid to company's shareholders | 6 | -12.284 | -11.747 | -11.747 |
| - Directors' entitlements | -256 | -256 | -256 | |
| Cash from financial activities (+/-) | 123.257 | 50.519 | 74.112 | |
| Net variation ot the period | 64.000 | -11.258 | -60.677 | |
| - Cash and cash equivalent at the beginning of the year | 45.447 | 106.590 | 106.590 | |
| - Net variation in cash and cash equivalent | 64.000 | -11.258 | -60.677 | |
| - Non cash variations (Cur. conversion, chge in scope, etc) | -1.639 | -167 | -466 | |
| - Cash and cash equivalent at end of the year | 4 | 107.808 | 95.165 | 45.447 |
B. Summary Financial Statements (continued)
Consolidated statement of change in equity
| B. Summary Financial Statements (continued) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated statement of change in equity | ||||||||||
| Issued capital | share is sue premium |
Hedging reserves | Own shares | Consolidated reserves |
Profit/loss of the period |
IAS 19R reserves |
Cumulative translation |
Minority interests |
Total Equity | |
| In thousands of EUR | adjusments | |||||||||
| 2 0 1 9 | ||||||||||
| Balance as of 01.01.2019 | 57.631 | - | -10.006 | 135.992 | - | -402 | -15.863 | 2.946 | 170.298 | |
| Profit/loss of the period | - | - | - | - | 37.777 | - | - | -149 | 37.628 | |
| Other elements of the overall results Total comprehensive income |
- - |
- | -351 -351 |
- - |
- - |
- 37.777 |
-241 -241 |
-4.245 -4.245 |
- -149 |
-4.837 32.791 |
| Capital increase | ||||||||||
| Paid dividends | - - |
- - |
- - |
- - |
- -11.747 |
- - |
- - |
- - |
- - |
- -11.747 |
| Own shares | - | - | - | -5.067 | - | - | - | - | - | -5.067 |
| Share based payment | - | - | - | - | 773 | - | - | - | - | 773 |
| Other | - | - | - | - | - | - | - | - | 0 | |
| Balance as of 31.12.2019 | 57.631 | - | -351 | -15.073 | 125.018 | 37.777 | -643 | -20.108 | 2.797 | 187.048 |
| First semester 2 0 1 9 | ||||||||||
| Balance as of 01.01.2019 | 57.631 | - | - | -10.006 | 135.992 | - | -402 | -15.863 | 2.946 | 170.298 |
| Profit/loss of the period | - | - | - | - | - | 6.297 | - | - | -72 | 6.225 |
| Other elements of the overall results | - | - | -488 | - | - | - | - | -2.037 | - | -2.525 |
| Total comprehensive income | - | - | -488 | - | - | 6.297 | - | -2.037 | -72 | 3.700 |
| Capital increase | - | - | - | - | - | - | - | - | - | - |
| Paid dividends | - | - | - | - | -11.747 | - | - | - | - | -11.747 |
| Own shares | - | - | - | -5.068 | - | - | - | - | - | -5.068 |
| Share based payment | - | - | - | - | 471 | - | - | - | - | 471 |
| Other | - | - | - | - | - | - | - | - | - | - |
| Balance as of 30.06.2019 | 57.631 | - | -488 | -15.074 | 124.716 | 6.297 | -402 | -17.900 | 2.874 | 157.654 |
| First semester 2 0 2 0 | ||||||||||
| Balance as of 01.01.2020 | 57.631 | - | -351 | -15.073 | 162.795 | - | -643 | -20.108 | 2.797 | 187.048 |
| Profit/loss of the period | - | - | - | - | - | 19.624 | - | - | -87 | 19.537 |
| Other elements of the overall results | - | - | -52 | - | - | - | - | -8.660 | - | -8.712 |
| Total comprehensive income | - | -52 | - | - | 19.624 | - | -8.660 | -87 | 10.825 | |
| Capital increase | 14.408 | 61.582 | - | - | - | - | - | - | - | 75.990 |
| Paid dividends | - | - | - | - | -12.284 | - | - | - | - | -12.284 |
| Own shares | - | - | - | - | - | - | - | - | - | - |
| Share based payment / Valuation | - | - | - | - | -1.266 | - | - | - | - | -1.266 |
| Other | - | - | - | - | - | - | - | - | - | - |
| Balance as of 30.06.2020 | 72.039 | 61.582 | -403 | -15.073 | 149.245 | 19.624 | -643 | -28.768 | 2.710 | 260.313 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ON 30.06.2020
Note 1. Corporate information
The half-year consolidated financial statements of the Group on 30 June 2020 were adopted by the Board of Directors meeting on 2 September 2020.
Note 2. Principal accounting methods
1. Basis for preparation
The consolidated accounts of 30 June 2020 were prepared in conformity with the IAS 34 standard relating to intermediate financial information.
The intermediate financial accounts must be read alongside the annual report of 31 December 2019.
2. Consolidation principles and significant accounting principles
The evaluation rules adopted for the preparation of the consolidated financial situation of 30 June 2020 were not modified compared to the rules followed for the preparation of the annual report of 31 December 2019. The consolidated half-year financial statements were prepared in accordance with IFRS standards (International Financial Reporting Standards) as adopted in the European Union.
Comment on Covid-19
The Covid-19 pandemic has not had any influence on the evaluation rules, nor on management's judgements.
Furthermore, the impact on the half-year accounts in 2020 is essentially the consequence of a slip in recognized revenues from projects sold before completion, due to the temporary stoppages at a number of sites in March and April 2020. This slip should be made up by 31 December 2020.
As regards to the prospects and estimates of future impacts, please refer to the comments in the interim management report (above).
Note 3. Seasonal information
The life cycle of the real estate projects of ATENOR can be summarized in three major phases: the land purchase phase, the project development and construction phase, and the marketing and sales phase. The length and process of these phases are neither similar nor comparable from one project to another.
Follow-up and compliance with the planning of each of these projects are assured by the implementation of a regular communication system. Internal control is provided by:
- an executive committee that meets monthly for each of the projects and which is formalised by minutes.
As soon as a project reaches the construction phase, a monthly progress meeting is held with:
- the external specialists to ensure that the agreed deadlines are complied with and
- the General Contractor in charge of construction.
This communication system allows ATENOR to determine, monitor and resolve all potential operational risks well upfront.
Note 4. Other current financial assets, cash and cash equivalents
| In thousands of EUR | ||||||
|---|---|---|---|---|---|---|
| 30.06.2019 | 30.06.2019 | 31.12.2019 | ||||
| CASH AND CASH EQUIVALENTS | ||||||
| Short-term deposits | 27.798 | 14.199 | 1.702 | |||
| Bank balances | 80.004 | 80.963 | 43.739 | |||
| Cash at hand | 6 | 3 | 6 | |||
| Total cash and cash equivalents | 107.808 | 95.165 | 45.447 |
Read tables pages 9 and 10
Note 5. Financial Liabilities
| In thousands of EUR | ||||||
|---|---|---|---|---|---|---|
| Current | Non-current | TOTAL | ||||
| Up to 1 year | More than 1 year | |||||
| MOVEMENTS ON FINANCIAL LIABILITIES | ||||||
| On 31.12.2019 | 175.089 | 364.888 | 539.977 | |||
| Movements of the period | ||||||
| - New loans | 38.500 | 32.500 | 71.000 | |||
| - Reimbursement of loans | -11.100 | -11.100 | ||||
| - Rent debts (IFRS 16) | -94 | -94 | ||||
| - Variations from foreign currency exchange | -13 | 2 2 |
9 | |||
| - Short-term/long-term transfer | 68.262 | -68.262 | ||||
| - Other | 129 | 129 | ||||
| On 30.06.2020 | 270.644 | 329.277 | 599.921 |
See the comment on page 2 on the consolidated balance and the increase in indebtedness.
- The increase in indebtedness, to the amount of €71M, is due to:
- €25M in financing as part of the City Dox project; - two corporate financing packages of, respectively, €15M and €10M;
- the increase (+ €21M) in the CP/MTN outstandings.
Note 6. Paid Dividends
| In thousands of EUR | |||||
|---|---|---|---|---|---|
| 30.06.2020 | 30.06.2019 | 31.12.2019 | |||
| Dividends on ordinary shares declared and paid during the period: Final dividend for 2019: € 2.31 Final dividend for 2018: € 2.20 |
-12.284 | -11.747 | -11.747 |
ATENOR does not offer any interim dividend.
Note 7. Income taxes
| In thousands of EUR | |||||
|---|---|---|---|---|---|
| TAXES | 30.06.2020 | 30.06.2019 | 31.12.2019 | ||
| Income tax expense / Income - current | |||||
| Current period tax expense | -4.441 | -617 | -1.480 | ||
| Adjustments to tax expense/income of prior periods | 7 1 |
8 4 |
|||
| Total current tax expense, net | -4.441 | -546 | -1.396 | ||
| Income tax expense / Income - Deferred | |||||
| Related to the current period | 1.824 | 1.561 | -1.365 | ||
| Related to tax losses | -396 | -2.471 | -2.554 | ||
| Total deferred tax expense | 1.428 | -910 | -3.919 | ||
| Total current and deferred tax expense | -3.013 | -1.456 | -5.315 |
Read page 1
Note 8. Segment reporting
| In thousands of EUR | 30.06.2020 | 30.06.2019 | ||||
|---|---|---|---|---|---|---|
| Western | Central | Total | Western | Central | Total | |
| Europe | Europe | Europe | Europe | |||
| Operating revenue | 27.922 | 26.581 | 54.503 | 24.368 | 7.487 | 31.855 |
| Turnover | 27.216 | 19.286 | 46.502 | 23.537 | 2 8 |
23.565 |
| Property rental income | 706 | 7.295 | 8.001 | 831 | 7.459 | 8.290 |
| Other operating income | 24.302 | 3.515 | 27.817 | 5.447 | 2.702 | 8.149 |
| Gain (loss) on disposals of financial assets | 19.283 | 19.283 | 4.914 | 4.914 | ||
| Other operating income | 5.028 | 3.515 | 8.543 | 522 | 2.702 | 3.224 |
| Gain (loss) on disposals of non-financial assets | -9 | -9 | 1 1 |
1 1 |
||
| Operating expenses (-) | -35.155 | -19.424 | -54.579 | -22.952 | -3.845 | -26.797 |
| Raw materials and consumables used (-) | -28.537 | -56.427 | -84.964 | -42.615 | -24.233 | -66.848 |
| Changes in inventories of finished goods and work in | ||||||
| progress | 16.545 | 51.009 | 67.554 | 33.019 | 27.490 | 60.509 |
| Employee expenses (-) | -457 | -281 | -738 | -2.061 | -208 | -2.269 |
| Depreciation and amortization (-) | -208 | -96 | -304 | -153 | -90 | -243 |
| Impairments (-) | -8 | -8 | 846 | 7 | 853 | |
| Other operating expenses (-) | -22.498 | -13.621 | -36.119 | -11.988 | -6.811 | -18.799 |
| RESULT FROM OPERATING ACTIVITIES - EBIT | 17.069 | 10.672 | 27.741 | 6.863 | 6.344 | 13.207 |
| Financial expenses (-) | -5.624 | 320 | -5.304 | -5.275 | -365 | -5.640 |
| Financial income | 774 | 774 | 9 4 |
2 | 9 6 |
|
| Share of profit (loss) from investments consolidated by | ||||||
| the equity method | -677 | -677 | 1 8 |
1 8 |
||
| PROFIT (LOSS) BEFORE TAX | 11.542 | 10.992 | 22.534 | 1.700 | 5.981 | 7.681 |
| Income tax expense (income) (-) | -1.769 | -1.244 | -3.013 | -1.354 | -102 | -1.456 |
| PROFIT (LOSS) AFTER TAX | 9.773 | 9.748 | 19.521 | 346 | 5.879 | 6.225 |
| Post-tax profit (loss) of discontinued operations | ||||||
| PROFIT (LOSS) OF THE PERIOD | 9.773 | 9.748 | 19.521 | 346 | 5.879 | 6.225 |
| Intercompany elimination | 1.247 | -1.247 | 0 | 993 | -993 | 0 |
| CONSOLIDATED RESULT | 11.020 | 8.501 | 19.521 | 1.339 | 4.886 | 6.225 |
| Overall profits and losses of the period attributable | ||||||
| to third parties | -103 | -103 | -72 | -72 | ||
| Group share result | 11.123 | 8.501 | 19.624 | 1.411 | 4.886 | 6.297 |
Sectoral information is prepared, both for internal reporting and external disclosure, on a single sector of activity, i.e. real estate development projects (office and residential buildings, the retail activity being accessory to the first two mentioned). This activity is presented, managed and monitored on a project-by-project basis. The various project committees, the Executive Committee and the Board of Directors are responsible for monitoring the various projects and assessing their performances.
However, based on the location of the projects, two geographical segments are henceforth identifiable: on the one hand there is western Europe, covering Belgium, the Grand Duchy of Luxembourg, France, Germany and also Portugal and, on the other hand, there is Central Europe, covering Poland, Hungary and Romania.
Taken at 30 June 2020, this segmentation illustrates the contribution to the results of the projects in western Europe.
The ATENOR activity report provides more detailed information about the results and purchases and sales during the period reviewed.
| 30.06.2020 | 31.12.2019 | |||||
|---|---|---|---|---|---|---|
| Western | Central | Western | Central | |||
| In thousands of EUR | Europe | Europe | Total | Europe | Europe | Total |
| ASSETS | ||||||
| NON-CURRENT ASSETS | 110.598 | 641 | 111.239 | 117.935 | 755 | 118.690 |
| Property, plant and equipment | 3.026 | 601 | 3.627 | 2.715 | 691 | 3.406 |
| Investment property | ||||||
| Intangible assets | 1 9 |
3 2 |
5 1 |
3 2 |
5 5 |
8 7 |
| Investments in related parties | ||||||
| Investments consolidated by the equity | ||||||
| method | 60.291 | 60.291 | 59.676 | 59.676 | ||
| Deferred tax assets | 5.518 | 5.518 | 5.261 | 5.261 | ||
| Other non-current financial assets | 13.593 | 8 | 13.601 | 12.494 | 9 | 12.503 |
| Derivatives | ||||||
| Non-current trade and other receivables | 28.151 | 28.151 | 37.757 | 37.757 | ||
| Other non-current assets | ||||||
| CURRENT ASSETS | 481.688 | 386.534 | 868.222 | 382.225 | 337.060 | 719.285 |
| Assets held for sale | ||||||
| Inventories | 333.798 | 332.125 | 665.923 | 316.727 | 291.298 | 608.025 |
| Other current financial assets | 28.244 | 28.244 | 6.159 | 6.159 | ||
| Derivatives | ||||||
| Current tax receivables | 1.514 | 302 | 1.816 | 733 | 4 3 |
776 |
| Current trade and other receivables | 56.302 | 28.517 | 84.819 | 34.584 | 19.532 | 54.116 |
| Current loans payments | 4 1 |
4 1 |
1 5 |
1 5 |
||
| Cash and cash equivalents | 60.373 | 19.637 | 80.010 | 21.628 | 22.117 | 43.745 |
| Other current assets | 1.416 | 5.953 | 7.369 | 2.379 | 4.070 | 6.449 |
| TOTAL ASSETS | 592.286 | 387.175 | 979.461 | 500.160 | 337.815 | 837.975 |
| LIABILITIES AND EQUITY | ||||||
| TOTAL EQUITY | 255.943 | 4.370 | 260.313 | 188.840 | -1.792 | 187.048 |
| Group shareholders' equity | 253.233 | 4.370 | 257.603 | 186.043 | -1.792 | 184.251 |
| Issued capital | 133.621 | 133.621 | 57.631 | 57.631 | ||
| Reserves | 134.685 | 4.370 | 139.055 | 143.485 | -1.792 | 141.693 |
| Treasury shares (-) | -15.073 | -15.073 | -15.073 | -15.073 | ||
| Non controlling interest | 2.710 | 2.710 | 2.797 | 2.797 | ||
| Non-current liabilities | 335.487 | 56.045 | 391.532 | 367.952 | 55.849 | 423.801 |
| Non-current interest bearing borrowings | 296.793 | 32.484 | 329.277 | 330.066 | 34.822 | 364.888 |
| Non-current provisions | 2.345 | 3.088 | 5.433 | 2.607 | 2.185 | 4.792 |
| Pension obligation | 701 | 701 | 701 | 701 | ||
| Derivatives | 403 | 403 | 351 | 351 | ||
| Deferred tax liabilities | 716 | 2.077 | 2.793 | 2.994 | 973 | 3.967 |
| Non-current trade and other payables | 34.932 | 15.450 | 50.382 | 31.584 | 15.450 | 47.034 |
| Other non-current liabilities | 2.543 | 2.543 | 2.068 | 2.068 | ||
| Current liabilities | 856 | 326.760 | 327.616 | -56.632 | 283.758 | 227.126 |
| Current interest bearing debts | 261.038 | 9.606 | 270.644 | 165.488 | 9.601 | 175.089 |
| Current provisions | 724 | 724 | 1.352 | 1.352 | ||
| Deferred tax liabilities | 4.594 | 5 3 |
4.647 | 2.245 | 1 7 |
2.262 |
| Current trade and other payables | 30.643 | 13.174 | 43.817 | 28.402 | 11.894 | 40.296 |
| Other current liabilities | 4.705 | 3.079 | 7.784 | 4.752 | 3.375 | 8.127 |
| Intercompany elimination / not allocated | -300.848 | 300.848 | -258.871 | 258.871 | ||
| TOTAL EQUITIES AND LIABILITIES | 592.286 | 387.175 | 979.461 | 500.160 | 337.815 | 837.975 |
Note 9. Stocks
| In thousands of EUR | |||||
|---|---|---|---|---|---|
| 30.06.2020 | 30.06.2019 | 31.12.2019 | |||
| Buildings intended for sale, beginning balance | 608.025 | 459.202 | 459.202 | ||
| Activated costs | 100.857 | 81.357 | 216.204 | ||
| Disposals of the year | -32.678 | -18.681 | -66.275 | ||
| Reclassifications from/to the "Inventories" | 2 5 |
1.336 | 559 | ||
| Borrowing costs (IAS 23) | 1.803 -12.109 |
983 -2.037 |
2.319 -4.254 |
||
| Foreign currency exchange increase (decrease) Write-offs (written back) |
270 | 270 | |||
| Movements during the year | 57.898 | 63.228 | 148.823 | ||
| Buildings intended for sale, ending balance | 665.923 | 522.430 | 608.025 | ||
| Accounting value of inventories mortgaged (limited to granded loans) | 135.316 | 104.556 | 120.879 | ||
| See comments on page 2. | |||||
| Note 10. Property, plant and equipment | |||||
| This item mainly includes the interior developments made to the leased buildings and the rights of use recognised by application of IFRS 16. |
|||||
| The investments over the half year total 533,000 Euro. Depreciation over this period came to 285,000 Euro. | |||||
| Note 11. Stock option plans for employees and other payments based on shares | |||||
| No new stock option plan was proposed, during the first half of 2020, to Executive Committee members, staff or | |||||
| certain ATENOR service providers. | |||||
| Note 12. Related Parties | |||||
| In thousands of EUR | |||||
| Sums due to the | |||||
| Sums due to related parties |
group from related parties |
||||
| IMMOANGE | - | 634 | |||
| VICTOR ESTATES | - | 5.130 | |||
| VICTOR PROPERTIES | - | 277 | |||
| VICTOR BARA | - | 2.185 | |||
| VICTOR SPAAK | - | 3.885 | |||
| DOSSCHE IMMO | - | - | |||
| CCN DEVELOPMENT | - | 1.457 | |||
| DE MOLENS | - | - | |||
| ALTHEA FUND COMPARTIMENT IV | - | - | |||
| Within the framework of the Victor mixed project, the (50/50) joint-venture with BPI has led to the consolidation | |||||
| by the equity method of the companies Immoange, Victor Properties, Victor Estates, Victor Spaak and Victor | |||||
| Bara. | |||||
| In 2019, ATENOR acquired 50% of the shares of the company Dossche Immo, holder of a plot and buildings in | |||||
| Deinze (De Molens project). As at 8 May 2020, ATENOR took a 50% share in the establishment of the De Molens | |||||
| company, which will develop the project of the same name. | |||||
| Moreover, ATENOR subscribed to the establishment of Althea Fund Compartiment IV, with a share of 50%. This | |||||
| fund will shelter the land to be developed under the Lankelz project (Luxembourg). It should be recalled that, last year, ATENOR entered into a partnership (33%) with AGRE and AXA through CCN |
|||||
| Development as part of the CCN Brussels project. | |||||
| No other important change occurred concerning the related parties during the first half of 2020. | |||||
| Note 13. Derivatives | |||||
| ATENOR does not use derivative instruments for trading purposes. | |||||
| In the context of its €22 M of financing contracted in February 2019, ATENOR simultaneously concluded a rate | |||||
| hedging contract that covers 71% of the loan. The fair value of this financial instrument qualified as "cash flow | |||||
| hedge" (€-0.05 M) is booked directly in equity. | |||||
| Refer to the table on page 11 |
Note 10. Property, plant and equipment
This item mainly includes the interior developments made to the leased buildings and the rights of use recognised by application of IFRS 16.
Note 11. Stock option plans for employees and other payments based on shares
No new stock option plan was proposed, during the first half of 2020, to Executive Committee members, staff or certain ATENOR service providers.
Note 12. Related Parties
| In thousands of EUR | |||||
|---|---|---|---|---|---|
| Sums due to the | |||||
| Sums due to related | group from related | ||||
| parties | parties | ||||
| IMMOANGE | - | 634 | |||
| VICTOR ESTATES | - | 5.130 | |||
| VICTOR PROPERTIES | - | 277 | |||
| VICTOR BARA | - | 2.185 | |||
| VICTOR SPAAK | - | 3.885 | |||
| DOSSCHE IMMO | - | - | |||
| CCN DEVELOPMENT | - | 1.457 | |||
| DE MOLENS | - | - | |||
| ALTHEA FUND COMPARTIMENT IV | - | - |
Within the framework of the Victor mixed project, the (50/50) joint-venture with BPI has led to the consolidation by the equity method of the companies Immoange, Victor Properties, Victor Estates, Victor Spaak and Victor Bara.
In 2019, ATENOR acquired 50% of the shares of the company Dossche Immo, holder of a plot and buildings in Deinze (De Molens project). As at 8 May 2020, ATENOR took a 50% share in the establishment of the De Molens company, which will develop the project of the same name.
Moreover, ATENOR subscribed to the establishment of Althea Fund Compartiment IV, with a share of 50%. This fund will shelter the land to be developed under the Lankelz project (Luxembourg).
It should be recalled that, last year, ATENOR entered into a partnership (33%) with AGRE and AXA through CCN Development as part of the CCN Brussels project.
Note 13. Derivatives
In the context of its €22 M of financing contracted in February 2019, ATENOR simultaneously concluded a rate hedging contract that covers 71% of the loan. The fair value of this financial instrument qualified as "cash flow hedge" (€-0.05 M) is booked directly in equity.
Note 14. Own shares
| MOVEMENTS IN OWN SHARES | Amount (in thousands of €) |
Number of shares |
|---|---|---|
| On 01.01.2020 (average price € 48.09 per share) | 15.073 | 313.427 |
| Movements during the period - acquisitions - sales |
||
| On 30.06.2020 (average price € 48.09 per share) | 15.073 | 313.427 |
Note 15. Events after the closing date
- As already announced in the press release of 2 July 2020, ATENOR reached an agreement for the acquisition of 50% of the shares in the Dutch company TBMB. This company holds the property and development rights for a project located at the intersection of the streets Verheeskade and Lulof in The Hague (Netherlands).
- In July 2020, ATENOR signed, via a new subsidiary, a sales agreement for the acquisition of its 2nd project in Düsseldorf, a new office building of around 14,000 m².
- Via its Romanian subsidiary NGY Investment srl, ATENOR signed with Pbb Deutsche Pfandbriefbank and Erste Bank a financing package of €80 million for a duration of 5 years (2020 – 2025). It covers 3 buildings in the Hermès Business Campus complex.
There are no other important developments to report since 30 June 2020.
C. Statement by the Management
Stéphan SONNEVILLE s.a., CEO and President of the Executive Committee and the Members of the Executive Committee, including Mr Sidney D. BENS, CFO, acting in the name of and on behalf of ATENOR SA attest that to the best of their knowledge,
- The summary financial statements at 30 June 2020 were prepared in conformity with IFRS standards and provide a true and fair view of the assets, of the financial situation and of the profits of ATENOR and of the enterprises included in the consolidation;1
- The six month financial report contains a true reflection of the major events and of the principal transactions between related parties occurring during the first six months of the financial year and of their impact on the summary financial statements as well as a description of the main risks and uncertainties for the remaining months of the financial year (see page 6 of the present document).
1 Affiliated companies of ATENOR in the sense of article 11 of the Company Code
D. External audit
Statutory auditor's report on the review of the condensed consolidated interim financial information of ATENOR SA for the period ended 30 June 2020
Introduction
We have reviewed the condensed consolidated interim financial information of ATENOR SA as of June 30, 2020, and for the period of six months ended on that date, which comprises the condensed consolidated interim statement of profit or loss and other comprehensive income, the condensed consolidated interim statement of financial position, the condensed consolidated interim statement of cash flows, the condensed consolidated interim statement of changes in equity, the accounting policies, and a selection of explanatory notes.
The board of directors is responsible for the preparation and fair presentation of this condensed consolidated interim financial information in accordance with the international standard IAS 34 - Interim Financial Reporting as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of Review
We conducted our review in accordance with the international standard ISRE (International Standard on Review Engagements) 2410 ″Review of Interim Financial Information Performed by the Independent Auditor of the Entity″. 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 International Standards on Auditing 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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the preceding condensed consolidated interim financial information is not prepared, in all material respects, in accordance with the international standard IAS 34 - Interim Financial Reporting as adopted by the European Union.
Brussels, September 2, 2020
Mazars Réviseurs d'Entreprises SCRL Statutory Auditor Represented by Xavier DOYEN