Earnings Release • Feb 21, 2019
Earnings Release
Open in ViewerOpens in native device viewer
Regulated information Under embargo until 21/02/2019 5.40 PM
The fair value of the real estate portfolio exceeds the € 540 million threshold.
• Debt ratio of 50.16 % (RREC RD) and 48.90 % (IFRS) on 31st December 2018.
| The real estate portfolio 4 |
|---|
| Important events of the financial year 2018 5 |
| Consolidated income statement11 |
| Consolidated balance sheet 15 |
| Dividend & share price 18 |
| Shareholder structure on 31st December 2018 19 |
| Events after the closing of the financial year 20 |
| Outlook 20 |
| Statement of the auditor 20 |
| Shareholder's calendar 21 |
| Annex 1 22 |
Fair value of real estate portfolio
Gross dividend per share
The fair value of real estate portfolio was 543.51 million at 31st December 2018, compared with 457.87 million at 31st December 2017, or an increase of 18.7 %.
| REAL ESTATE PORTFOLIO | 31/12/2018 | 31/12/2017 |
|---|---|---|
| Fair value of the investment properties |
€ 524.51 m | € 457.87 m |
| Investment properties available for lease |
€ 490.36 m | € 423.11 m |
| Development projects | € 34.14 m | € 34.76 m |
| Investments in Associates and Joint Ventures equity method |
€ 19.00 m | € 0.00 m |
| Total | € 543.51 m | € 457.87 m |
The fair value of the investment properties available for lease amounts to € 490.36 million and consists of 52 sites.
The sum of the contractual rents on an annual basis and the estimate rental value on vacant spaces amounts to € 27.36 million on 31 December 2018. The investment properties available for lease are valued by the independent property experts at an average gross rental yield2 of 5.6 %.
On 31st December 2018 the investment properties available for lease are located for 64.6 % in the Brussels Capital Region, for 15.2 % in the Walloon Region, for 9.8 % in the Flemish Region and for 10.5 % in the Netherlands.
The investment properties available for lease consist of 87.8 % of residential property on 31st December 2018. The breakdown of the investment properties available for lease, calculated based on the fair value of the buildings, is as follow:
The real estate portfolio consists of (i) the investment properties and (ii) Investments in Associates and Joint Ventures equity method.
2 Gross rental yield = (contractual gross rents on an annual basis + estimated rental value on vacant spaces) / (fair value of the investment properties available for lease).
On 27st June 2018 Home Invest Belgium signed an agreement under conditions precedent for the takeover of the company Be Real Estate SA, owner of four buildings of the 'apart-hotel' type (furnished apartments, combined with hotel services such as reception, cleaning, laundry etc.), all located in Brussels.
Thanks to this this acquisition, Home Invest Belgium's portfolio will increase by 185 new units.
These buildings will be further operated by BEAPART, via a leasehold granted for 27 years, under the brand name B-Aparthotels. During the first year of the leasehold a profound renovation will be carried out by the operator, with no material impact on the exploitation.
It is expected that the conditions precedent will be fulfilled by the end of the fourth quarter of 2019. The conventional value of the property was defined at € 36 million, based on a fixed 'triple net'3 rent of € 1.84 million. The acquisition will be funded by credit lines.
Thanks to this acquisition Home Invest Belgium confirms the diversification of its strategy toward residential property in the broader sense of the term, among which the tourist accommodation sector. A first step towards this segment was already undertaken in 2016 via the acquisition of residential holiday homes in Center Parcs Port Zélande in the Netherlands. This time, Home Invest Belgium preferred urban hotel residences, suited for both tourists and business men.
Characterizing for these investments is their typology that is very close to the classic residential segment. This offers Home Invest Belgium different possibilities, such as a reconversion in the long term, or long-term triple net rental contracts that are concluded for this type of property.
3 The leaseholder is the only person responsible for the costs, charges and repairs to the building (including important repairs such as the roof) during the entire duration of the contract.
On 3rd October 2018 Home Invest Belgium acquired the exclusive control over the SA 'Immobilière Meyers-Hennau', owner of a building located in Laeken. This company also disposes of the permits and studies that enable, after demolition, the conversion of the existing building into a residential project consisting of 35 apartments, 11 houses and 51 parking plots for a total surface area of ± 5.000 m2. The total investment (acquisition, cost of the study and works) will amount to approximately € 12 million and the initial yield is expected to reach ± 5 % once the building is fully occupied. The preliminary reception of the works is foreseen in the course of the fourth quarter of 2020.
On 17th December 2018, via a newly created company 'De Haan Vakantiehuizen SA' of which it holds 50 % of the shares (the other 50 % being held by Belfius Insurance (25 %), the listed infrastructure investor TINC (12.5 %) and the infrastructure fund DG Infra Yield (12.5 %)), Home Invest Belgium has realized the acquisition of 51.43 % of the shares of the SA Sunparks De Haan. The balance of the shares in this company has been acquired by a French private fund, managed by Atream, a French real estate fund manager.
Sunparks De Haan SA owns a tourist leisure complex with common infrastructure located in De Haan. This complex benefits from a unique location near the sea. The leisure complex is operated for a fixed initial 15 yearperiod by Sunparks Leisure SA (part of the leisure group Pierre & Vacances) based on a 'triple net' agreement including an indexation mechanism.
The complex will be entirely renovated and will be upgraded to a Center Parcs village with 4 Birdies.
Development projects
The Pulse was delivered in the beginning of 2018 and was officially launched on 18th May 2018, in the presence of the municipal authorities and the first tenants of the site. This project relates to a redevelopment of an office site into a modern residential complex composed of 93 apartments, 3 houses and a space dedicated to a nursery.
The tenants benefit from a common inner courtyard with petanque stroll. Sustainaibility played an important role for this building: on the one hand, the building was equipped with solar panels, and on the other hand, this building records excellent energy performance scores. Currently, 79 of the 96 residential units are already let. More information can be found on the website www.the-pulse.be.
The construction works of the commercial spaces on the ground floor and the 40 apartments on the upper floors of the building continued throughout 2018. The reception is expected by the end of the first quarter of 2019.
The five retail units, among which a nursery and a bank branch, are already let.
The works on the Brunfaut site have started in the course of 2018 and progress according to planning. This project consists of a residential complex with 93 apartments, 66 parking plots and 1 443 m2 for offices or proximity services which meet the neigbourhood's needs. The reception is foreseen in the first quarter of 2020.
At the same time, in close cooperation with the commune of Molenbeek, the urban charges of the Brunfaut project will be spent on renovating the square. The intention is to bring new life to this district and let it grow into a real meeting place for locals.
The demolition works have started just before the yearend. The provisional reception of the works is foreseen in the course of the fourth quarter of 2020.
Acquisition of a project rue Jourdan in Brussels.
The permit request has been introduced. The negotiations with the local authorities are ongoing.
The building permit was obtained in August 2018. The predetermined start of this development is expected around the third quarter of 2019.
The permit demand for the refurbishment of the residential part was introduced. The permit is expected by the beginning of the third quarter of 2019.
In the course of the financial year 2018 Home Invest Belgium continued its arbitrage of part of its portfolio.
The past financial year, sales were realized for a net sales price totaling € 7.76 million. On these divestments a net capital gain of € 0.61 million was realized, compared to the latest fair value of the sold property, and a capital gain of € 3.32 million compared to the acquisition value (increased by activated investments). This capital gain contributes to the statutory distributable result of the company.
We wish to remind that, following the amendments to the IFRS standards implemented since 2018, sales can only be registered in the financial statements at the time of the recording of the notarial deed. Previously these sales were registered at the moment of the conclusion of the sales agreement or after fulfillment of the conditions precedent, if any.
As a consequence, this year, the 'effective' period of sales is shortened by ± 3 months (usual frametime between the sales agreement and the notarial deed). The majority of the notarial deeds, signed in the course of the first quarter of 2018 consists of sales agreements signed in 2017 and which were already booked in the distributal capital gains in 2017. This effect is temporary and limited to 2018.
Over the last year, 523 new rental contracts (on a total of 1,942 units) were signed, of which 122 new leases (first occupation) in the buildings The Inside and The Pulse and 401 leases related to existing buildings (new tenants). It goes without saying that the conclusion of these leases is only possible via an active management of the portfolio.
As main leases concluded and/or entered into force, the following ones can be listed:
The average occupancy rate4 of all investment properties available for rent remained stable in 2018 at 90.0 % (compared to 90.5 % in 2017). The total occupancy rate is calculated including buildings under renovation, buildings that are the subject of a first commercialization, buildings held for sale and furnished apartments let for a short term.
The average occupancy rate of the buildings in current operation5 remained at a high level (96.4 % in 2018 compared to 95.3 % in 2017).
The commercialization of the development projects only starts once the works have been completed, taking in account that candidate-tenants are only interested once a project has been finalized (unlike candidate-buyers). This explains the fluctuations in leases in the course of the first months after the delivery of a project.
By the company's active rental policy, Home Invest Belgium continues to present a high occupancy rate for the past financial year.
Home Invest Belgium currently renovates part of its property in Liège in order to respond to current market standards for residential property. These works are expected to be finalized by the third quarter of 2019. The builing Saint-Hubert is in study for full renovation.
Home Invest Belgium introduced a permit demand Home Invest Belgium introduced a permit demand in order to obtain a permit for the total renovation of the residential part of its property, Galerie de l'Ange in Namur. The permit is expected by the beginning of the third quarter of 2019.
Furthermore, the renovation plan relating to the building Scheldevleugel in Oudenaarde continued, the third phase having started. During this phase, 12 apartments and studios will be deeply renovated, together with the refurbishment of the communal parts of the building.
The portfolio of investment properties available for lease of Home Invest Belgium is substantially "younger" than market average. More than 75 % of the real estate portfolio is younger than 20 years or was profoundly renovated in the past 20 years.
4 The occupancy rate represents the average percentage over a certain period of the contractual rents of the leased spaces, in relation to the sum of the contractual rents
of the leased spaces and the estimated rental value of the vacant spaces. 5 The occupancy rate of the buildings in current operation represents the occupancy rate of the totality of the investments properties available for lease, excluding (i) the buildings under renovation, (ii) the buildings that are the subject of a first commercialization, (iii) the buildings for sale and (iv) the furnished apartments let for a short term.
CEO
On 10th July 2018 the collaboration with Mrs. Sophie Lambrighs, Chief Executive Officer, and Mr. Nicolas Vincent, Chief Investment Officer, ended.
The new Chief Executive Officer, Mr. Sven Janssens, started on 3rd December 2018. Sven Janssens (46) has studied architecture. After gaining experience as an architect and project manager, he dedicated his further career to property management for Trevi Services SA as from 2003. In 2006 he became Head of Property Management at Leasinvest Real Estate, and since 2016 he was Chief Operating Officer.
CFO
On 31st January 2019 Mr. Jean-Luc Colson, CFO, left the company. Mr. Preben Bruggeman has been appointed since 7th January 2019 as the new CFO of Home Invest Belgium.
Preben Bruggeman (34) has more than 10 years' experience in finance and started his career at Bank Degroof as an equity analyst, responsible for the real estate sector. Consequently he joined the corporate finance department where he played an important role in a number of capital market transactions (issue of shares, bonds and real estate certificates), launching 'private equity' funds and assisting companies in mergers and acquisitions in the real estate sector. Since 2015 he was CFO and effective leader of the public REIT Qrf City Retail.
On 12th December 2018 the merger by absorption of the companies of the consolidation scope Investers SA and Immobilière S et F was approved by the General Meeting of Shareholders of the absorbed companies and by the Board of Directors of Home Invest Belgium. These mergers by absorption took place with accounting and tax effect on 1st July 2018.
| 2018 | 2017* | |
|---|---|---|
| I. Rental Income | 24,286,604 | 22,683,114 |
| III. Rental-related expenses | -294,009 | -183,272 |
| NET RENTAL RESULT | 23,992,595 | 22,499,843 |
| IV. Recovery of property charges | 170,800 | 136,764 |
| V. Recovery of charges and taxes normally payable by the tenant on let properties | 577,974 | 598,574 |
| VII. Charges and taxes normally payable by the tenant on let properties | -3 016 662 | -2 769 775 |
| VIII. Other incomes and expenses related to letting | -650 | -30,000 |
| PROPERTY RESULT | 21,724,057 | 20,435,406 |
| IX. Technical costs | -1,099,527 | -1,086,011 |
| X. Commercial costs | -312,350 | -342,219 |
| XI. Taxes and charges on unlet properties | -340,659 | -289,436 |
| XII. Property management costs | -3,903,591 | -3,766,408 |
| XIII. Other property costs | -8,616 | 19,853 |
| PROPERTY COSTS | -5,664,743 | -5,464,220 |
| PROPERTY OPERATING RESULT | 16,059,314 | 14,971,186 |
| XIV. General corporate expenses | -887,977 | -1,066,763 |
| XV. Other operating incomes and expenses | 285,005 | -112,236 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 15,456,342 | 13,792,187 |
| XVI. Result sale investment properties | 610,185 | 719,633 |
| XVIII. Changes in fair value of investment properties2 | 59,413,636 | 824,629 |
| XIX. Other portfolio result | -171,278 | -774,669 |
| PORTFOLIO RESULT | 59,852,543 | 769,593 |
| OPERATING RESULT | 75,308,885 | 14,561,780 |
| XX. Financial income | 105,328 | 90,494 |
| XXI. Net interest charges | -4,672,338 | -3,548,571 |
| XXII. Other financial charges | -55,202 | -65,034 |
| XXIII. Changes in fair value of financial assets and liabilities | -1,613,701 | 1,226,658 |
| FINANCIAL RESULT | -6,235,914 | -2,296,453 |
| PRE-TAX RESULT | 69,072,971 | 12,265,327 |
| XXIV. Corporation tax | -295,246 | -361,199 |
| XXV. Exit tax | 0 | -81,555 |
| TAXES | -295,246 | -442,754 |
| NET RESULT | 68,777,725 | 11,822,573 |
| Exclusion of portfolio result | -59,852,543 | -769,593 |
| Exclusion of variation in real value of financial assets and liabilities | +1,613,701 | -1,226,658 |
| EPRA EARNINGS6 | 10,538,883 | 9,826,322 |
| Average number of shares7 | 3,288,146 | 3,190,318 |
| NET RESULT PER SHARE | 20.92 | 3.71 |
| EPRA EARNINGS PER SHARE | 3.21 | 3.08 |
| DISTRIBUTABLE RESULT PER SHARE8 | 4.28 | 4.66 |
* In accordance with IAS 8 the 2017 figures were restated to take in account the liabilities resulting from IAS12 deferred taxes. See Annex 1 for further explanation.
8 The statutory distributable result in the sense of article 13, §1, of the RREC RD.
6 The EPRA earnings = the net result (group share) excluding the portfolio result and the changes in fair value of the financial assets and liabilities. This term is used in accordance with the Best Practices Recommendations of EPRA.
7 The average number of shares was calculated excluding the 11,712 treasury shares held by the company.
The net rental result has increased from € 22.50 million in 2017 to € 23.99 million in 2018 (+6.6 %). The increase is mainly the result of the lease of the delivered internal development projects and investments realized in the course of 2017 that contributed for an entire financial year in 2018.
The rental charges and taxes normally paid by the tenant are mainly composed of property taxes paid by the RREC. Part of these charges and taxes could however be reinvoiced to certain tenants, according to the applicable legislation, such as for shops, offices and rest homes. After deduction of the non-recoverable costs, the property result has risen from € 20.44 million in 2017 to € 21.72 million in 2018.
The technical costs contain the maintenance costs, renovation costs and insurance premiums charged to the owner. For the past financial year they amounted to € 1.10 million.
The commercial costs have decreased to € 0.31 million. They include the commissions paid to the real estate agents for concluding new rental contracts, the shared cost of inventories, as well as the as the lawyers' fees appointed within the framework of a strict management of the leases of the portfolio.
The charges and taxes related to vacant buildings amount to € 0,34 million and relate to costs that have to be carried by the company for vacant buildings. That vacancy can be the consequence of the departure of a tenant or of the time needed to find a first tenant in the case of newly delivered projects or after a major renovation.
The property management costs represent the personnel costs and operating expenses, the remuneration of management, the attendance fees of the directors and the remuneration paid for outsourced management for a number of buildings, and result in an amount of € 3.90 million.
In total, the property charges increase by 3.7 % from € 5.46 million in 2017 to € 5.67 million in 2018.
The property operating result in 2018 reaches € 16.06 million, an increase of +7.3 % compared to 2017.
The corporate overheads and other operating charges and income of Home Invest Belgium contain all costs and revenues that are not directly related to the management of the buildings and the company. They contain among other things the costs related to the stock exchange listing and Home Invest Belgium's status as a REIT (Euronext Brussels, Financial Services and Markets Authority, subscription tax with the FPS Finance, etc.), the remuneration of the auditor, the consultants and accredited property experts of the RREC. These costs amounted to € 0.60 million in 2018, in decrease compared to 2017.
Consequently, an operating result before the portfolio result of € 15.46 million is recorded in 2018, compared to € 13.79 million by the end of 2017, an increase by 12.1 %.
In 2018 a positive portfolio result of € 59.82 million was recorded.
The result on the sale of investment properties amounted to € 0.61 million in 2018. This implies a realized capital gain compared to the last fair value of the sold buildings of 8.5 % (on a total net sales price of € 7.76 million).
In 2018 Home Invest Belgium recorded a positive change in the fair value of the investment properties totaling € 59.41 million, or 13.0 % compared to the fair value of the investment properties per 31st December 2017. This positive change is mainly the consequence of the adjustment of the rental yields by the independent property experts. On 31 December 2018 the investment properties available for lease are globally valued at a gross rental yield 1 of 5.6 %.
In order to control the external valuations, which might have an important impact on the non distributable results of the company, the Board of Directors had implemented an internal procedure and control system in the course of 2018.
The other portfolio result amounts to € -0.17 million. In this item, the changes in deferred taxes are recorded.
Gross rental yield = (contractual gross rents on an annual basis + estimated rental value on vacant spaces) / (fair value of the investment properties available for lease).
The net interest charges have increased from € 3.55 million in 2017 to € 4.67 million in 2018. This increase is the result of an increase of the average amount of outstanding financial debts. The average funding cost amounted to 2.20 % in 2018.
The changes in the fair value of the financial assets and liabilities amounted to € -1.61 million in 2018. These changes are the consequence of changes in the fair value of the interest rate swaps.
The taxes dropped from € 0.44 million in 2017 to € 0.29 million in 2018.
The net result (group share) of Home Invest Belgium amounted to € 68.78 million in 2018, or € 20.92 per share.
After adjustment of the net result before (i) the portfolio result and (ii) the changes in fair value of the financial assets and liabilities, the EPRA earnings amount to € 10.54 million for the financial year 2018, an increase by 7.3 % compared to € 9.83 million in 2017).
The EPRA earnings per share have increase by 4.1 % from € 3.08 in 2017 to € 3.21 in 2018.
The sales of investment properties realized in 2018 resulted in a capital gain of € 3.32 million compared to the acquisition value (augmented by the activated investments). These realized capital gains contribute to the statutory distributable result9, which is the basis for the dividend distribution.
Following the amendments to the IFRS standards implemented since 2018, sales can only be registered in the financial statements at the time of the recording of the deed. Previously these sales were registered at the moment of the conclusion of the preliminary sales agreement or after fulfillment of any possible conditions precedent contained in it.
As a consequence, this year, the "effective" period of sales is shortened by ± 3 months (usual frametime between the sales agreement and the notarial deed). The majority of the notarial deeds signed in the course of the first quarter of 2018 consists of sales agreements signed in 2017, which have already been booked in the distributable capital gains in 2017. This effect is temporary and limited to 2018.
Consequently, the statutory distributable result in 2018 has decreased to € 14.07 million, compared to € 14.87 million in 2017.
The distributable result per share has decreased from € 4.66 to € 4.28 over the same period.
| ASSETS I. Non-current assets |
31/12/2018 544,868,654 |
31/12/2017* 459,231,235 |
|---|---|---|
| B. Intangible assets | 462,356 | 416,024 |
| C. Investment properties | 524,506,117 | 457,864,921 |
| D. Other tangible assets | 353,420 | 391,371 |
| E. Non-current financial assets | 155,574 | 112,033 |
| F. Finance lease receivables | 391,187 | 446,887 |
| I. Investments in Associates and Joint Ventures equity method | 19,000,000 | 0 |
| II. Current assets | 6,237,370 | 11,058,584 |
| C. Finance lease receivables | 55,700 | 135,752 |
| D. Trade receivables | 1,036,607 | 3,326,818 |
| E. Tax receivables and other current assets | 1,881,629 | 376,707 |
| F. Cash and cash equivalents | 3,239,503 | 7,183,786 |
| G. Deferred charges and accrued income | 23,932 | 35,521 |
| TOTAL ASSETS | 551,106,024 | 470,289,820 |
| SHAREHOLDERS' EQUITY | ||
| I. Shareholders equity attributable to shareholders of parent company | 269,003,279 87,999,055 |
215,555,079 87,999,055 |
| A. Capital | ||
| B. Share premium account | 24,903,199 | 24,903,199 |
| C. Reserves | 99,653,847 | 102,796,510 |
| D. Net result of the financial year | 56,447,178 | -143,685 |
| SHAREHOLDERS' EQUITY | 269,003,279 | 215,555,079 |
| LIABILITIES | ||
| I. Non-current liabilities | 274,323,432 | 234,434,882 |
| A. Provisions | 173,625 | 0 |
| B. Non-current financial debts | 263,284,316 | 224,745,100 |
| a. Financial debts | 223,500,000 | 185,000,000 |
| c. Others | 39,784,316 | 39,745,100 |
| C. Other non-current financial liabilities | 9,667,059 | 8,060,644 |
| F. Deferred taxes and liabilities | 1,198,432 | 1,629,138 |
| a. Exit tax | 167,282 | 854,469 |
| b. Other | 1,031,150 | 774,669 |
| II. Current liabilities | 7 779 314 | 20 299 859 |
| B. Current financial debts | 749,596 | 10,673,829 |
| a. Financial debts | 0 | 10,000,000 |
| c. Others | 749,596 | 673,829 |
| D. Trade debts and other current debts | 5,301,051 | 8,106,746 |
| b. Others | 5,301,051 | 8,106,746 |
| E. Other current liabilities F. Accrued charges and deferred income |
151,225 1,577,442 |
62,656 1,456,627 |
| LIABILITIES | 282,102,746 | 254,734,741 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 551,106,024 | 470,289,820 |
| Number of shares at end of period10 | 3,288,146 | 3,288,146 |
| IFRS NAV per share11 | € 81.81 | € 65.56 |
| EPRA NAV per share12 | € 85.06 | € 68.24 |
| Debt ratio (RREC RD)13 | 50.16 % | 51.80 % |
| Debt ratio (IFRS)14 | 48.90 % | 51.80 % |
* In accordance with IAS 8 the 2017 figures were restated to take in account the liabilities resulting from IAS12 deferred taxes. See Annex 1 for further explanation.
10 The number of shares at closing date is calculated excluding the 11 712 treasury shares held by the company.
11 IFRS NAV per share = Net Asset Value or Net value per share according to IFRS. 12 EPRA NAV per share = Net Asset Value of Net value per share according to the Best Practices Recommendations of EPRA.
13 The debt ratio (RREC RD) is the debt ratio calculated in accordance with the RREC RD. This means that Investments in Associates and Joint Ventures are accounted for according to the proportional consolidation method, for calculating the debt ratio. 14 The debt ratio (IFRS) is calculated in the same way as the debt ratio (RREC RD), but based on and reconcilable with the consolidated balance sheet in accordance
with IFRS, in which Investments in Associates and Joint Ventures are accounted for via the equity method.
In the financial year 2018 the fair value of the investment properties (including the development projects) has risen by 66.64 million from € 457.87 million at 31st December 2017 to € 524.51 million at 31st December 2018, or vervangen door: being an increase of +14.6%.
Is due to an increase in the fair value of the investment properties (see comments to the consolidated income statement) and the extension of the real estate portfolio via new investments (mainly the realization of internal development projects).
On 17th December 2018, via the newly created company De Haan Vakantiehuizen SA, of which it holds 50 % of the shares, Home Invest Belgium realized the acquisition of 51.43 % of the shares of the SA Sunparks De Haan.
On 31st of December, Home Invest Belgium's participation amounted to € 19.00 million. This participation is being processed using the equity method.
On 31st December 2018, the group's shareholders' equity amounts to € 269.00 million, a rise by 24.8 % compared to 31st December 2017.
The IFRS NAV per share has risen in the financial year 2018 by 24.8 % to € 81.81.
The EPRA NAV per share has risen by 24.7 % over the same period to € 85.06.
TYPE OF DEBT
The debt ratio (RREC RD) amounts to 50.16 %.
The debt ratio (IFRS) amounts to 48.90 % at 31st December 2018.
Taking in account a maximum debt ratio of 65 %, as defined by the RREC Law, Home Invest Belgium still has a debt capacity of € 239.59 million to fund new investments.
Taking in account Home Invest Belgium's strategy to keep the debt ratio in the medium and long term below 55 %, and taking in account the bank covenants at 55 %, Home Invest Belgium still has a debt capacity of € 60.79 million to fund new investments.
On 31st December 2018, Home Invest Belgium had € 263.28 million of financial debts, composed of:
The weighted average remaining duration of the financial debts amounts to 4.3 years.
On 31st December 2018 Home Invest Belgium disposed of 9.5 million of undrawn available credit lines.
On 31st December 2018, 83.5 % of the financial debts (or an amount of € 220.0 million) had a fixed interest rate, among other things, through using Interest Rate Swaps as hedging instrument. The fixed interest rates have a weighted average remaining duration of 5.9 years.
Due to a decrease of the interest rates after the conclusion of the hedges, the total value of the hedges at closing date was negative for an amount of € 9.67 million.
Through its hedging policy, the Board of Directors wishes to protect the company to a maximum against potential interest rate rises.
The Home Invest Belgium share closed on 31st December 2018 at € 91,40 (compared to € 88,72 end of 2017).
The Board of directors will propose to the ordinary general meeting of 7th May 2019 to distribute a dividend for the financial year 2018 of € 4.75 gross per share15 (compared to € 4.50 gross per share for the financial year 2017).
On 6th December 2018 an interim dividend of € 3.75 gross per share was paid.
The financial statements of the financial year 2018 will be subject to approval by the ordinary general meeting of shareholders (to be held on Tuesday 7th May 2019, including the distribution of the balance of the dividend of € 1.00 gross per share will be proposed, which would result in a total dividend for the financial year 2018 of € 4.75 gross per share. The balance of the dividend will be payable on 17th May 2019 upon presentation of coupon 26.
The table below presents the key figures and the evolution of the share over the last financial years:
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| Share price (in €) | ||||||
| Highest | € 94.00 | € 97.75 | € 103.00 | € 95.50 | € 87.00 | € 82.35 |
| Lowest | € 83.20 | € 87.88 | € 91.81 | € 81.95 | € 73.50 | € 69.27 |
| On the last day of the financial year | € 91.40 | € 88.72 | € 94.74 | € 92.59 | € 85.10 | € 76.00 |
| Average price | € 87.96 | € 94.93 | € 98.40 | € 89.58 | € 80.91 | € 76.03 |
| Dividend (in €) | ||||||
| Gross | € 4.75 | € 4.50 | € 4.25 | € 4.00 | € 3.75 | € 3.50 |
| Net16 | € 3,3250 | € 3,1500 | € 3,0875 | € 3,3700 | € 3,1875 | € 2,9750 |
| Gross dividend return17 | 5.20 % | 5.07 % | 4.49 % | 4.32 % | 4.41 % | 4.61 % |
| Volume | ||||||
| Volume | ||||||
| Volume daily volume | 1,202 | 779 | 747 | 1,058 | 996 | 703 |
| Annual volume | 306,477 | 198,650 | 191,851 | 270,860 | 254,159 | 179,166 |
| Total number of shares on 31st December | 3,299,858 | 3,299,858 | 3,160,809 | 3,160,809 | 3,160,809 | 3,056,143 |
| Market capitalization on 31st December | € 302 million |
€ 293 million |
€ 311 million |
€ 293 million |
€ 269 million |
€ 232 million |
| Free float18 | 50.19 % | 50.19 % | 52.54 % | 49.21 % | 48.96 % | 50.24 % |
| Velocity19 | 18.50 % | 11.99 % | 11.55 % | 17.41 % | 16.42 % | 11.67 % |
| Pay out ratio (statutory)20 | 111.04 % | 96.54 % | 96.75 % | 95.81 % | 88.93 % | 93.03 % |
15 This corresponds to a net dividend of € 3.3250 per share after deduction of the current withholding tax of 30 %. 16 Since 1st January 2017 the withholding tax is 30 %.
17 Gross dividend yield = (Gross dividend of the financial year) / (Share price on the last listing day of the financial year) .
18 Free float = [(Total number of shares at closing of financial year) - (total number of shares held by parties having disclosed their participations through a transparency notification in accordance with the Law of 2nd May 2007)] / [Total number of shares at closing of financial year].
19 Velocity = (Annual volume) / (Number of shares considered as Free Float).
20 Pay-out ratio = (Total gross dividend for the financial year) / (Statutory distributable result in the sense of article 13, §1, of the RREC RD).
On 31st December 2018 the capital of Home Invest Belgium, (€ 89,949,294.75 million), is represented by 3,299,858 shares, of which 11,712 shares held by the company. Each of these shares entitles to one vote at the General Meeting and consequently these shares represent the denominator for purposes of notifications within the framework of the transparency regulation. No outstanding options or warrants entitling to shares have been issued.
Besides the legal thresholds, fixed at 5 % and multiples of 5 %, the company adopted a statutory threshold of 3 % for transparency notifications with regard to the application of the legal provisions relating to the disclosure of important participations in issuers of which shares are admitted to trading on a regulated market.
Based on the transparency notifications received until 31st December 2018, Home Invest Belgium's shareholder structure is as follows:
| SHAREHOLDERS21 | NUMBER OF SHARES | % OF CAPITAL |
|---|---|---|
| Van Overstraeten Group 22 | 880,965 | 26.70 % |
| AXA Belgium SA23 | 537,830 | 16.30 % |
| M. Antoon Van Overstraeten | 121,916 | 3.69 % |
| Spouses Van Overtveldt – Henry de Frahan | 102,792 | 3.12 % |
| Other shareholders | 1,656,355 | 50.19 % |
| General total | 3,299,858 | 100.00 % |
21 Shareholders who deposited a statement in accordance with the law of May 2nd, 2007 regarding transparency.
22 Stavos Luxemburg SA is 97% controlled by Burgerlijke Maatschap BMVO 2014. BMVO 2014 is 25% controlled by Stichting Administratiekantoor Stavos and 75% controlled by Burgerlijke Maatschap Van Overstraeten. Burgerlijke Maatschap Van Overstraeten is 99.9% controlled by Stichting Administratiekantoor Stavos. Stichting Administratiekantoor Stavos is controlled by Liévin, Hans, Johan en Bart Van Overstraeten. Cocky NV is 99.9% controlled by Burgerlijke Maatschap Van Overstraeten. VOP NV is 99.9% controlled by Stavos Luxemburg SA.
23 AXA Belgium is a subsidiary of AXA Holdings Belgium which is itself a subsidiary of AXA NV.
With the arrival of Mr. Sven Janssens and Mr. Preben Bruggeman, on respectively 3rd December 2018 and 7th January 2019, a new chapter starts for Home Invest
Belgium. Both have acquainted with the ins and outs of a regulated real estate company for years, and are therefore the ideal persons to take the company to the next level.
The Board of Directors confirms its confidence in the further evolution of the company's results.
The company's income comes on the one hand from the renting of its buildings and on the other hand from the regular selective arbitrage of a part of its portfolio.
The rental market is supported by population growth recorded in the big Belgian cities and is benefiting from increased inflation which results in the indexation of rents.
The acquisition market is supported by interest rates that remain at a historical low level and which favour the borrowing capacity of households.
In accordance with its dividend policy, the Board of Directors probably will announce, following the publication of the results of the third quarter, the amount of the interim dividend payable in cash in December 2019 at the occasion of publication Q3 results.
The auditor, Grant Thornton, represented by Mr. Philip Callens, has confirmed having finalized his audit in full, and that his audit has not shown any important
corrections that should be made to the accounting information recorded in this press release and that he will deliver a statement without reservation.
| 2019 | |
|---|---|
| Publication of the annual financial report on the website | Friday 29 March |
| Ordinary general meeting of the financial year 2018 | Tuesday 7 May |
| Interim statement: results on 31 March 2019 | Tuesday 7 May |
| Payment of the final dividend of the financial year 2018 | Friday 17 May |
| Half-year financial report: results on 30 June 2019 | Thursday 5 September |
| Interim statement: results on 30 September 2019 | Thursday 24 October |
| 2020 | |
| Annual press release on the financial year 2019 | Thursday 20 February |
| Publication of the annual financial report on the website | Friday 3 April |
| Ordinary general meeting of the financial year 2019 | Tuesday 5 May |
| Interim statement: results on 31 March 2020 | Tuesday 5 May |
| Payment of the dividend of the financial year 2019 | Friday 15 May |
| Half-year financial report: results on 30 June 2020 | Thursday 3 September |
| Interim statement: results on 30 September 2020 | Thursday 22 October |
Sven Janssens Chief Executive Officer Tel: +32.2.740.14.51 E-mail: [email protected]
Boulevard de la Woluwe 46/11 B – 1200 Brussels www.homeinvestbelgium.be
and specialized in residential real estate for the letting market. As the owner of a portfolio of over € 540 million, regular arbitration on a fraction of said portfolio. Exclusively operating in Belgium until in 2016, it has strengthened
In accordance with IAS 8 the item I.F. Deferred taxes was restated for an amount of € 1 629 k to take in account the liabilities resulting from IAS12 deferred taxes on the buildings of Port Zélande in the Netherlands (€ 775 k) as well as the exit tax liabilities relating to the participation S&F Immobilière (€ 228 k) and Investers SA (€ 625 k) .
The S&F Immobilière SA exit tax liability was recorded in the item C. Investment properties. The Investers SA exit tax liability was recorded in the item XVIII. Changes in fair value of the investment properties. The deferred taxes relating to the buildings of Port Zélande were recorded in the item XIX. Other portfolio result.
| 2017 (REWORKED) |
2017 | Δ | |
|---|---|---|---|
| I. Non-current assets | |||
| C. Investment properties | 457,864,921 | 457,636,191 | 228,730 |
| Shareholders' equity | |||
| D. Net result of the financial year | -143,685 | 1,256,723 | -1,400,408 |
| I. Non-current liabilities | |||
| F. Deferred taxes and liabilities | 1,629,138 | 0 | 1,629,138 |
| a. Exit tax | 854,469 | 0 | 854,469 |
| b. Other | 774,669 | 0 | 774,669 |
| Operating result | |||
| XVIII. Changes in fair value of investment properties | 824,629 | 1,450,369 | -625,740 |
| XIX. Other portfolio result | -774,669 | 0 | -774,669 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.