Earnings Release • Feb 22, 2018
Earnings Release
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Regulated information
The fair value of the investment properties grows from € 408.8 million to more than € 450 million.
Investment properties in operation Development projects Buildings held for sale
Net asset value after adjustment for the interim dividend (before distribution)
| Summary of consolidated financial statements 3 |
|---|
| The property portfolio 4 |
| Important events of the financial year 5 |
| Evolution of the property portfolio7 |
| Consolidated income statement13 |
| Consolidated balance sheet16 |
| Dividend and share price 18 |
| Shareholder structure 20 |
| Events after the closing of the financial year 21 |
| Outlook 21 |
| Statement of the auditor21 |
| Shareholder's calendar 22 |
Return for the shareholder in 2017
Fair value of the
investment properties
distribuable result
The net rental income amounts to € 22.5 million compared to € 18.8 million in 2016 (+ 19.7%). This increase is the result of new acquisitions and the full commercialization of development projects delivered in 2016.
At the end of 2017 Home Invest Belgium generated an operating result before the portfolio result of € 13.8 million. The net result amounts to € 13.2 million, the net result from core activities reaches € 9.8 million, a rise by 17.6% in comparison with 2016.
The portfolio result – which comprises the realized capital gains and the changes (positive and negative) of the fair value of the buildings in operation – stands at € 2.2 million. We would like to remind that this item is composed, amongst others, of the changes in the investment values of the properties in portfolio (for 2017 this amount is € 7.3 million) of which the amount of the changes of the rights of the buildings in portfolio have been deducted (€ 5.9 million in 2017). The result of this item is linked to the sales in the course of the financial year.
The distributable result – comprising the distributable capital gains realized during the financial year – shows an increase by 7.0%, passing from € 13.9 million in 2016 to € 14.8 million in 2017.
In the course of the financial year 2017 the net asset value per share recorded an increase of 1.2% in comparison with its level at the beginning of the financial year, passing from € 65.19 to € 65.98 on 31 December 2017. This net value, adjusted for the negative impact of the hedges amounts to € 68.43.
Taking into account the good results of the past financial year, the Board of directors has decided to propose to the General meeting of shareholders that will be held next 8 May a global dividend for the year of € 4.50 gross per share compared to € 4.25 gross a year ago, or a growth per share of 5.9%.
On a statutory basis, this remuneration corresponds to a pay-out ratio of 96.54% (96.75% in 2016).
On 31 December 2017 Home Invest Belgium holds a portfolio of properties spread across 51 sites and 5 development projects.
On the balance sheet the fair value of the investment properties in operation and the development projects amounts to € 457.6 million on 31 December 2017 compared to € 408.8 million on 31 December 2016, or a progression of 11.9%. The book value of the development projects is € 34.5 million.
The fair value of the investment properties in operation1 reaches € 423.1 million compared to € 381.3 million a year ago. This growth by 11.0% is explained by the acquisition of the additional cottages and apartments at the site Port Zélande, the acquisition of a subsidiary "Investers" holding 3 property assets, the acquisition of the building Liberty's, the reception of the building The Inside, and this, notwithstanding the realized sales.
The sum of the current gross rents and the estimated rental value on vacant spaces amounts to € 26.1 million compared to € 23.8 million a year earlier.
The investment properties in operation located in the Brussels-Capital Region currently represent 62.97% of the portfolio, those in the Walloon Region 16.12%, those in the Flemish Region 9.31% and those in the Netherlands 11.61%.
The breakdown of the investment property portfolio, calculated on the basis of the fair value of the buildings, is as follows:
The average occupancy rate for the entire financial year 2017 amounts to 90.49%, to compare to 90.18% for the financial year 2016. The occupancy rate of the residential properties currently in operation remains at a very high level of 95.33%, which indicates both a solid rental market and the suitability of the assets of the BE-REIT (SIR/GVV) in this market.
1 Excluding development projects.
2 The occupancy rate expresses the percentage of the rents collected from let buildings, augmented by the rental guarantees on vacant spaces, compared to the sum of the rents of the let buildings and the estimated rental value (ERV) on vacant spaces.
Thanks to the renegotiation of different IRS (Interest Rate Swaps) in 2016 and in 2017 on the one hand, and the funding of the acquisitions of the financial year through new credit lines granted at very interesting conditions on the other hand, the average funding cost (after converting the debts at variable interest rates in debts at fixed interest rates through those IRS) has again considerably decreased to 2.09% (in comparison with 2.53% in 2016 and 3.40% in 2015).
Following the different acquisitions, the debt ratio of the company stands at 51.8%, which leaves the BE-REIT (SIR/GVV) an investment capacity by debt of € 34 million before reaching a debt ratio of 55%, and of € 180 million before reaching the legal threshold of 65%.
| Funding | Confirmed credit lines |
Withdrawals |
|---|---|---|
| Bank funding | € 208 million | € 195 million |
| Bond issue | € 40 million | € 40 million |
| Total | € 248 million | € 235 million |
The weighted average duration of the funding amounts to 5 years on 31 December 2017, compared to 5 years and 3 months on 31 December 2016. On 31 December 2017 an amount of €13 million of the credit lines could still be withdrawn.
| Active hedges on 31 December 2017 | IRS |
|---|---|
| Total | € 143 million |
The average duration of the hedges is 6 years and 11 months on 31 December 2017, compared to 5 years and 7 months on 31 December 2016.
In line with the decision taken in 2015, the company distributed, on 6 December 2017, an interim dividend payable in cash. Coupon 23 entitled shareholders to an interim dividend of € 3.75 gross or € 2.6250 net per share (after deduction of the withholding tax of 30% in force at that date).
On 15 September 2017 Mr. Toon Haverals, Chief Development Officer (CDO) of the BE-REIT (SIR/GVV) left the company.
Since last 7 July Home Invest Belgium's offices are located in "la Maison de l'Automobile" at Boulevard de la Woluwe no 46. The BE-REIT (SIR/GVV) occupies the first floor of the building. The space was entirely renovated in order to correspond to the company's needs, being a spacious and flexible working environment, open spaces with cafeteria and break room, different meeting rooms and multiple "bubbles" for people looking for tranquility and a confidential environment.
On 17 January 2017 the company has acquired a building of ± 5 800 m2 and 69 parking spaces, located in 1060 Brussels (Saint-Gilles), rue Jourdan 89/103, in the immediate vicinity of the Louise district. The current office building will be subject to a reconversion into a residential building. The company has appointed the bureau Studio Farris to conduct the reconversion study and has introduced an urban permit demand at the beginning of the second semester 2017. The concertation committee that met in December has granted a favourable advice subject to conditions. The permit should be delivered in the course of the first semester of 2018. Once completed, the building that should comprise approximately 55 apartments, will be included in the cluster already owned by the company in this district (composed of the three buildings Bosquet-Jourdan, Jourdan 85 and Jourdan-Munt). The preliminary reception of the works is foreseen in the course of 2020.
Port Zélande
Op 11 April in Amsterdam, the company has acquired 7 cottages and 40 apartments in the complex Center Parcs Port Zélande situated in Ouddorp (province of Zeeland). In November 2016 the company had already acquired 241 cottages at the same site. That way, the company strengthens its position as main owner of cottages in the complex. The newly acquired apartments and cottages benefit from a unique location in the complex, on the water's edge and in front of the marina. The conditions of the transaction are identical to those obtained within the framework of the previous transaction:
On 31 August 2017 the company acquired the entirety of the shares of the company Investers SA, owner of 27 apartments, 4 retail spaces and 2 office spaces, spread across three buildings in Brussels.
The first building is located in Saint-Gilles (Chaussée de Waterloo 41-43), and it includes 12 units, among which 9 apartments, 2 offices and a retail space, for a total surface area of 1 008 m2.
The second building is located in Uccle, at the angle of the commercial center rue Xavier de Bue and chaussée d'Alsemberg. Investers SA is the owner of part of this building, namely 8 apartments and 3 retail spaces, for a total surface area of 1 029 m2.
Finally, the third building is in its turn located in Schaerbeek (rue F.-J. Navez 81-85) and comprises 10 apartments for a total surface area of 626 m2.
Within the framework of a partial demerger of the company V.O.P., the company has acquired the full ownership of a building located place de l'Amitié in Auderghem (1160 Brussels) that comprises 3 718 m2 gross, or 3 391 m2 net, and is composed of 40 apartments, 41 basements and 40 parking spaces. The location of the building, on a little square and in a small isle, in the immediate vicinity of the European school of Brussels III, the campus de la Plaine and less than 500 m away from two metro stations, is excellent.
The apartments' finishing corresponds to current market standards for newly constructed apartments and the energy performance certificates requested are all A or B level.
The building was completed at the beginning of 2017 and is launched on the letting market since March 2017. At present, occupiers were found for 38 apartments and 23 parking spaces (95% occupancy rate for the apartments).
On 9 November 2017 Home Invest Belgium has acquired all shares of the SA "Immobilière S et F", owner of a semi-industrial building, previously used by les imprimeries Hayez, and located rue Brunfaut 13 to 29 and rue Fin 4 to 12 in 1080 Molenbeek, at a couple of hundreds of meters from the renowned MIMA museum and from the canal. This transaction, announced in 2015, has become final since the conditions precedent were met (i.e., obtaining the permits). In the course of 2016 the BE-REIT (SIR/GVV) had also acquired the house located at the angle of the rue Fin and the rue Brunfaut, in view of developing a larger project on the site. The buildings were completely demolished and will make room for a project with a total surface area of over 10 000 m2, or 93 apartments, 66 parking spaces and 1 443 m2 surfaces reserved to offices or local services that respond to the district's demand. The reception of the building is foreseen end 2019.
In the course of the year, the development projects for own account of the BE-REIT (SIR/GVV) progressed substantially.
Avenue Marcel Thiry 204 in 1200 Woluwe-Saint- Lambert
The building was delivered in June 2017. The first tenants entered the building in July 2017. Just as it was the case for the neighbouring building The Horizon, The Inside benefits from ample interest among tenants. 70 of the 94 units are let, resulting in an occupancy rate of over 70%. www.theinside.be
Rue de la Célidée 29 - 33 and rue Joseph Schols 13 in 1080 Molenbeek-Saint-Jean
Previously known under the name of 'Célidée', the project The Pulse's objective is to revive the Karreveld district in which the project is located. The reception of the works of the first phase, comprising 40 apartments, has taken place in December 2017 and the first tenants entered the building in January 2018. The two following phases will be delivered in February and March. The site comprises 93 apartments and 3 houses, a garden and a communal square with a petanque playing area. A daycare center should soon establish itself at the ground floor of the building. At present, 10 of the 96 units have already been let. www.the-pulse.be.
Avenue Reine Astrid 278 à 1950 Kraainem
The works on the shell structure continued throughout 2017. The building will comprise 40 units, commercial spaces and a daycare center at the ground floor. The reception of the works is foreseen in the last quarter of 2018.
Avenue Marcel Thiry, 204 in 1200 Woluwe-Saint- Lambert
Based on the success in the letting of the two neighbouring buildings The Horizon & The Inside, the BE-REIT (SIR/GVV) has introduced an urban permit demand for the neighbouring land of the latter. The permit demand relates to a building of 47 apartments. The concertation committee that met in December, has granted a favourable advice, subject to conditions. The permit is expected in the course of the first semester of 2018.
We refer to the aforementioned chapter "Acquisitions".
The average occupancy1 rate for the entire financial year 2017 amounts to 90.49%, an improvement compared to the financial year 2016 (90.18%). As the company actively manages its portfolio, the portfolio is made up of buildings with very different occupancy rates:
The occupancy rates of the different categories are listed in the table underneath:
| TOTAL 2017 | |
|---|---|
| Buildings currently in operation | 95.33% |
| Contract LT | 100.00% |
| Furnished ST | 73.92% |
| Sales | 84.66% |
| Refurbishment | 42.67% |
| 1st Occupation | 69.93% |
| Total | 90.49% |
As a reminder, lettings for the development projects only start once the works are fully finalized (candidatetenants, opposite to candidate-buyers, do not anticipate their future needs), and the situation of the
rental market (sustained demand, but without tension) explains the spread across several months of the first lettings.
For the future, taking into account the constants part of the delivered developments in portfolio, the BE-REIT (SIR/GVV) expects the occupancy rate to stabilize at its 2017 level.
593 new lease agreements were concluded in 2017, amongst which 177 leases related to first occupations in buildings The Inside, The Horizon and Liberty's. 416 lease agreements were signed in existing buildings (rental turnovers).
The main renovation efforts of the portfolio of the BE-REIT (SIR/GVV) are currently focused on its Liège portfolio. Two of the four buildings held in this city are subject to a substantial transformation aiming at improving them to market standards. The works in the buildings Leopold and Saint-Hubert should be finished by the end of 2018.
1 The occupancy rate expresses the percentage of the rents collected from let buildings, augmented by the rental guarantees on vacant spaces, compared to the sum of the rents of the let buildings and the estimated rental value (ERV) on vacant spaces.
On the other hand, the vacant apartments of the Scheldevleugel building in Oudenaarde are also subject to a thorough, phased renovation. The works of the first phase related to 29 apartments have been finalized in the fall. The second phase, 30 apartments, will be delivered at the end of February. The last apartments will be renovated following the exit of current tenants.
The portfolio of investment properties in operation of Home Invest Belgium is substantially 'younger' than market average, as less than 20% of the buildings have not been thoroughly renovated in the course of the past 20 years.
The internal teams vouch for the technical, administrative and accounting management of the majority of the buildings in the Brussels-Capital Region and in the two Brabant provinces, management of other buildings being outsourced to external managers and syndics, carefully chosen and strictly supervised.
In conformity with its 4th strategic axis, aiming at a selective arbitrage on its portfolio, Home Invest Belgium has also continued its activities of sale per unit of its assets (in general apartment buildings). This arbitrage activity has allowed, also this year, to improve the liquidity of the portfolio of the company, and to ensure the relevance of the estimated values.
Except for the buildings Mélèzes (Woluwé-Saint-Lambert) and Birch house (Etterbeek), already up for sale in 2016, two new buildings were subject to the arbitrage program in 2017. These were Bosquet-Jourdan in Saint-Gilles comprising 26 apartments and a retail space, and "Jardins de la Cambre" in Ixelles composed of 24 apartments and 4 offices.
For 2017, in total, the arbitrage activity represented a volume of 41 units, or 2.57% of the fair value of the investment properties on op 31 December 2016. The different sales of the financial year 2017 have permitted to book a net realized capital gain of € 0.7 million in comparison with the last fair value of the sold buildings, and a distributable result of € 4.9 million.
| Summary of sales | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|
| Number of sites affected by sales | 6 | 7 | 10 | 9 | 13 |
| Net sales price (excluding transaction costs) | € 11.3 mio | € 18.2 mio | € 18.5 mio | € 31.6 mio | € 10.3 mio |
| 31/12/17 | 31/12/16 | |
|---|---|---|
| I. Rental Income | 22 683 114 | 18 979 691 |
| III. Rental-related expenses | -183 272 | -178 922 |
| NET RENTAL RESULT | 22 499 843 | 18 800 769 |
| IV. Recovery of property charges | 136 764 | 86 482 |
| V. Recovery of charges and taxes normally payable by the tenant on let properties | 598 574 | 660 864 |
| VII. Charges and taxes normally payable by the tenant on let properties | -2 769 775 | -2 705 975 |
| VIII. Other incomes and expenses related to letting | -30 000 | 0 |
| PROPERTY RESULT | 20 435 406 | 16 842 140 |
| IX. Technical costs | -1 086 011 | -843 970 |
| X. Commercial costs | -342 219 | -406 804 |
| XI. Taxes and charges on unlet properties | -289 436 | -392 488 |
| XII. Property management costs | -3 766 408 | -2 780 000 |
| XIII. Other property costs | 19 853 | -81 388 |
| PROPERTY COSTS | -5 464 220 | -4 504 650 |
| PROPERTY OPERATING RESULT | 14 971 186 | 12 337 491 |
| XIV. General corporate expenses | -1 066 763 | -845 488 |
| XV. Other operating incomes and expenses | -112 236 | -29 448 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 13 792 187 | 11 462 554 |
| XVI. Result sale investment properties | 719 633 | 279 654 |
| XVIII. Changes in fair value of investment properties2 | 1 450 369 | 11 295 322 |
| OPERATING RESULT | 15 962 188 | 23 037 530 |
| XX. Financial income | 90 494 | 78 701 |
| XXI. Net interest charges | -3 548 571 | -3 048 453 |
| XXII. Other financial charges | -65 034 | -65 705 |
| XXIII. Changes in fair value of financial assets and liabilities | 1 226 658 | -2 025 345 |
| FINANCIAL RESULT | -2 296 453 | -5 060 803 |
| PRE-TAX RESULT | 13 665 735 | 17 976 727 |
| XXIV. Corporation tax | -361 199 | -71 034 |
| XXV. Exit tax | -81 555 | 0 |
| TAXES | -442 754 | -71 034 |
| NET RESULT | 13 222 981 | 17 905 693 |
| NET RESULT ATTRIBUTABLE TO THE PARENT COMPANY | 13 222 981 | 17 905 693 |
| NET RESULT PER SHARE | 4,14 | 5,69 |
| Average number of shares1 | 3 190 318 | 3 147 897 |
| NET RESULT FROM CORE ACTIVITIES | 9 826 322 | 8 356 062 |
| NET RESULT FROM CORE ACTIVITIES PER SHARE | 3.08 | 2.65 |
| DISTRIBUTABLE RESULT | 14 829 888 | 13 856 552 |
| DISTRIBUTABLE RESULT PER SHARE | 4.65 | 4.40 |
1 The number of shares at the end of period was calculated without the 11 712 shares held in auto-control.
The rental income amounts to € 22.7 million compared to € 19.0 million in 2016 (+19.5%). The increase results from the acquisitions and the full operation of the development projects completed in 2016.
The rental-related expenses are nearly identical to those of 2016 at € 0.2 million.
The net rental result thus amounts to € 22.5 million compared to € 18.8 million a year earlier, a rise by 19.7%.
The rental charges and taxes normally borne by the tenant are mainly composed of property taxes paid by the BE-REIT (SIR/GVV) and amount to € 2.8 million.
Part of these taxes (€ 0.6 million) could however be charged to certain tenants, in accordance with the applicable legislation (retail spaces, offices, rest homes).
The recovery of property charges corresponds to the rental damage charged at the end of rental contracts; this item rises by 58.1% in comparison with 2016.
Consequently, the property result reaches € 20.4 million compared to € 16.8 million a year ago, an increase by 21.3%.
The technical costs comprise the maintenance costs at the owner's expense and the renovation costs. They total € 1.1 million, an increase in comparison with 2016, a year in which proportionally little technical costs were recorded.
The commercial costs drop by 15.9% and amount to € 0.3 million. They comprise commissions paid to real estate agents for the conclusion of new rental contracts, the shared cost of property inspections (états des lieux), publicity costs, as well as legal fees incurred in the context of strict rental portfolio management.
The costs and taxes of un-let buildings amount to € 0.3 million and represent the costs borne by the BE-REIT (SIR/GVV) in the case of rental vacancy; this vacancy may be linked to the time required to find a new tenant for a property that became vacant, but also to the time lag until the first commercialization of newly delivered buildings, and also to the buildings that became vacant in view of major renovation works.
The property management costs represent the personnel and operating costs, remuneration of Management, as well as the remuneration of directors and fees paid for external management of different residences. They amount to € 3.8 million, an increase in comparison with 2016 following the growth of the portfolio.
In total, property charges went up by 21.3% to reach € 5.5 million compared to € 4.5 million in 2016.
The property operating result amounts to € 15.0 million, an increase by 21.3% compared to the result of € 12.3 million recorded in 2016.
The general corporate expenses of the BE-REIT (SIR/ GVV) include all expenses that are not directly related to the operation of buildings and the management of the company. They mainly comprise the costs related to the stock exchange listing and the special legal status of the BE-REIT (SIR/GVV) (Euronext Brussels, supervisory authority, subscription tax with the FPS Finance, etc.), the fees of the statutory auditor, consultants and the appointed real estate expert of the BE-REIT (SIR/GVV). They rise in comparison with 2016 and amount to € 1.1 million, and this, a/o following extraordinary costs for publication and fees paid for studies relating to newly acquired dossiers.
This results in an operating result before the portfolio result of € 13.8 million in comparison with the result recorded end 2016, of € 11.5 million, a nice progress by 20.3%.
The result on the portfolio is again positive and amounts to € 2.2 million. It consists, on the one hand, of the capital gains realized compared to the latest fair value of €0,7 million and, on the other hand, of the positive change in fair value of the investment properties. The investment value defined by our experts progresses again, for an amount of some €7.3 million; amount we adjust by deducting the mutation rights in order to obtain the fair value.
The financial income of € 0.1 million comprises interest received and finance-lease receivables. The interest charges increase by 16.4%, and this, following the rise of debt that evolves from € 203.4 million end 2016 to € 243.4 million end 2017.
The changes in fair value of financial assets and liabilities represent a purely latent profit that comes from the evolution of the fair value of the hedges that are considered as being ineffective according to IFRS standards. The unrealized capital loss has decreased by € 1.2 million.
In total, the financial result (negative) amounts to € 2.3 million.
Taxes increased due to The Netherlands which were integrated into the portfolio and for which Home Invest Belgium needs to pay a non-residents tax. Moreover, due to the merger of the subsidiary Home Invest Development, an exit tax of € 81,555 has been paid.
After taking account of the financial charges and taxes, the net result of Home Invest Belgium amounts to € 13.2 million.
The net result from core activities reflects the operational profitability of the company excluding purely latent factors and the realization of capital gains and amounts to € 9.8 million in comparison with € 8.4 million for the financial year 2016.
The distributable result progresses by 7% and amounts to € 14.8 million compared to € 13.9 million a year earlier.
The share of the net result from core activities in the distributable result is 66.3%, a substantial improvement compared to 2016 (60.3%).
The Horizon
| ASSETS | 31/12/17 | 31/12/16 |
|---|---|---|
| I. Non-current assets | 459 002 506 | 409 872 451 |
| B. Intangible assets | 416 024.01 | 278 118 |
| C. Investment properties | 457 636 191 | 408 833 729 |
| D. Other tangible assets | 391 371 | 102 316 |
| E. Non-current financial assets | 112 033 | 75 649 |
| F. Finance lease receivables | 446 887 | 582 639 |
| II. Current assets | 11 058 584 | 9 429 070 |
| A. Assets held for sale | 0 | 1 457 192 |
| C. Finance lease receivables | 135 752 | 135 243 |
| D. Trade receivables | 3 326 818 | 3 169 636 |
| E. Tax receivables and other current assets | 376 707 | 842 449 |
| F. Cash and cash equivalents | 7 183 786 | 3 437 814 |
| G. Deferred charges and accrued income | 35 521 | 386 735 |
| TOTAL ASSETS | 470 061 090 | 419 301 520 |
| SHAREHOLDERS' EQUITY | ||
| A. Capital | 87 999 055 | 75 999 055 |
| B. Share premium account | 24 903 199 | 24 903 199 |
| C. Reserves | 102 796 510 | 98 202 791 |
| D. Net result of the financial year | 1 256 723 | 6 097 288 |
| SHAREHOLDERS' EQUITY | 216 955 487 | 205 202 333 |
| LIABILITIES | ||
| I. Non-current liabilities | 232 805 745 | 201 485 901 |
| B. Non-current financial debts | 224 745 100 | 192 205 885 |
| a. Financial debts | 185 000 000 | 152 500 000 |
| c. Others | 39 745 100 | 39 705 885 |
| C. Other non-current financial liabilities | 8 060 644 | 9 280 017 |
| II. Current liabilities | 20 299 859 | 12 613 287 |
| B. Current financial debts | 10 673 829 | 712 226 |
| a. Financial debts | 10 000 000 | 0 |
| c. Others | 673 829 | 712 226 |
| D. Trade debts and other current debts | 8 106 746 | 10 385 458 |
| b. Others | 8 106 746 | 10 385 458 |
| E. Other current liabilities | 62 656 | 90 680 |
| F. Accrued charges and deferred income | 1 456 627 | 1 424 923 |
| LIABILITIES | 253 105 603 | 214 099 188 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 470 061 090 | 419 301 520 |
| Number of shares at end of period1 | 3 288 146 | 3 147 897 |
| Net asset value | 216 955 487 | 205 202 333 |
| Net asset value per share | 65.98 | 65.19 |
| Adjusted net asset value per share2 | 68.43 | 68.14 |
| Indebtedness | 243 588 331 | 203 394 248 |
| Debt ratio | 51.82% | 48.51% |
1 The number of shares at the end of the period is calculated excluding of the 11 712 own shares held by the company.
2 Corresponds to the adjusted net value to exclude the real value of the financial hedging instruments.
In the course of the financial year the fair value of the investment properties has evolved from € 408.8 million on 31 December 2016 to € 457.6 million on 31 December 2017, including the development projects; or a rise by 11.9%, mainly following:
On 31 December 2017 the investment properties in operation represent a total of € 423.1 million, while the current development projects amount to € 34.5 million (compared to respectively € 381.3 million and € 27.5 million on 31 December 2016).
We note that the RREC will not make a reference to the section "assets held for sale" for buildings which are sold by unit.
On 31 December 2017 the capital of Home Invest Belgium, for an amount of € 88.0 million, is represented by 3 299 858 shares, of which 11 712 shares held under auto-control and consequently not taken into account for calculating the data per share.
The reserves progress by 4.8% to € 102.9 million compared to € 98.2 million a year earlier, following the appropriation of the result 2016. On the other hand, we need to point out that the result carried forward from previous financial years amounts to € 25.4 million at present, or € 7.69 per share, in comparison to € 25.9 million the previous year (-1.8%). This decrease is mainly explained by the reclassification of the hedges that were considered as effective in 2016 and became ineffective in 2017, for an amount of € 1.2 million.
Finally, the net result of the financial year amounts to € 1.3 million. This corresponds to the net result of the financial year before appropriation, or € 13.2 million minus the interim dividend paid in December 2017.
The debt ratio has evolved from 48.51% in 2016 to 51.82% in 2017. This increase is the consequence, on the one hand, of the funding of the new investment properties (risen from € 408.8 million in 2016 to € 457.6 million in 2017) and, on the other hand, the funding of the interim dividend paid in December 2017, and this notwithstanding the net rental income generated and the arbitrage on the portfolio.
The share price of the Home Invest Belgium share on Euronext Brussels amounted to € 88.72 on 29 December 2017, last listing day of the financial year, compared to the closing price end 2016 that was € 94.74.
The Board of directors will propose to the Ordinary general meeting of shareholders of 8 May 2018 to distribute a dividend of € 4.50 gross per share1 . This distribution represents once more an increase by 5.9% in comparison with the gross dividend of € 4.25 paid out for the financial year 2016, resulting in a statutory pay-out ratio for 2017 of 96.54%.
An interim dividend, payable in cash, of € 3.75 gross has been distributed on December 6 2017.
During the Ordinary general meeting of shareholders that will be held on Tuesday 8 May 2018, that has to approve the financial statements of the financial year 2017, the distribution of the closing dividend of € 0.75 gross per share will be presented, which will result in a total dividend for the financial year 2017 of € 4.50 gross per share. The balance of the dividend will be payable as of 18 May 2018 against coupon 24.
| In (€)2 | Net value per share excluding dividend |
Increase in value |
Gross Dividend |
Return per share3 |
Return as % for shareholder4 |
|
|---|---|---|---|---|---|---|
| 2017 | € 65.23 | € 1.88 | € 4.50 | € 6.38 | 10.07% | |
| 2016 | € 64.69 | € 2.30 | € 4.25 | € 6.55 | 10.50% | |
| 2015 | € 63.35 | € 0.96 | € 4.00 | € 4.96 | 7.95% | |
| 2014 | € 62.39 | € 1.79 | € 3.75 | € 5.54 | 9.14% | |
| 2013 | € 60.60 | € 5.12 | € 3.50 | € 8.62 | 15.54% | |
| Consolidated | 2012 | € 55.48 | € 0.90 | € 3.25 | € 4.15 | 7.60% |
| accounts in IFRS |
2011 | € 54.58 | € 2.65 | € 3.00 | € 5.65 | 10.88% |
| 2010 | € 51.93 | € 1.42 | € 2.75 | € 4.17 | 8.26% | |
| 2009 | € 50.51 | € 0.16 | € 2.43 | € 2.59 | 5.14% | |
| 2008 | € 50.35 | € -2.17 | € 2.36 | € 0.19 | 0.36% | |
| 2007 | € 52.52 | € 3.21 | € 2.30 | € 5.51 | 11.17% | |
| 2006 | € 49.31 | € 3.35 | € 2.24 | € 5.59 | 12.16% | |
| 2005 | € 45.96 | € 4.17 | € 2.19 | € 6.36 | 14.47% | |
| 2005 | € 46.91 | € 4.24 | € 3.47 | € 7.71 | 11.41%5 | |
| 2004 | € 42.67 | € 4.13 | € 2.16 | € 6.29 | 16.32% | |
| Statutory accounts in |
2003 | € 38.54 | € 1.15 | € 2.13 | € 3.28 | 8.77% |
| 2002 | € 37.39 | € 0.44 | € 2.07 | € 2.51 | 6.79% | |
| Belgian GAAP | 2001 | € 36.95 | € 1.19 | € 2.02 | € 3.21 | 8.98% |
| 2000 | € 35.76 | € 1.30 | € 1.96 | € 3.26 | 9.46% | |
| 1999 | € 34.46 |
1 Or € 3.15 net after deduction of the current withholding tax.
2 Based on the consolidated figures as of 2005.
3 Dividend of the financial year plus increase of the net value of the share during the financial year.
4 Idem, divided by the net value per share at the beginning of the financial year.
5 Restated to 12 months (12/19ths).
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|---|---|---|
| Share price (in €) | ||||||||
| Highest | € 97.75 | € 103.00 | € 95.50 | € 87.00 | € 82.35 | € 72.00 | € 67.99 | € 61.50 |
| Lowest | € 87.88 | € 91.81 | € 81.95 | € 73.50 | € 69.27 | € 62.90 | € 58.87 | € 53.00 |
| On the last day of the financial year | € 88.72 | € 94.74 | € 92.59 | € 85.10 | € 76.00 | € 71.00 | € 64.05 | € 60.50 |
| Average price | € 94.93 | € 98.40 | € 89.58 | € 80.91 | € 76.03 | € 68.59 | € 62.99 | € 56.60 |
| Gross dividend return1 | 5.07% | 4.49% | 4.32% | 4.41% | 4.61% | 4.58% | 4.68% | 5.45% |
| Dividend (in €) | ||||||||
| Gross | € 4.50 | € 4.25 | € 4.00 | € 3.75 | € 3.50 | € 3.25 | € 3.00 | € 2.75 |
| Net2 | € 3.1500 | € 3.0875 | € 3.3700 | € 3.1875 | € 2.9750 | € 2.7625 | € 3.00 | € 2.75 |
| Volume | ||||||||
| Volume daily volume | 779 | 747 | 1058 | 996 | 703 | 1 136 | 902 | 833 |
| Annual volume | 198 650 | 191 851 | 270 860 | 254 159 | 179 166 | 289 644 | 222 912 | 201 493 |
| Total number of shares on 31 December | 3 299 858 | 3 160 809 | 3 160 809 | 3 160 809 | 3 056 143 | 3 056 143 | 3 056 143 | 2 931 334 |
| Market capitalization on 31 December | € 293 million |
€ 311 million |
€ 293 million |
€ 269 million |
€ 232 million |
€ 217 million |
€ 197 million |
€ 171 million |
| Free float | 50.19% | 52.54% | 49.21% | 48.96% | 50.24% | 47.01% | 46.83% | 49.65% |
| Velocity3 | 12.09% | 11.55% | 17.41% | 16.42% | 11.67% | 20.16% | 15.40% | 13.85% |
| Pay out ratio (statutory) | 96.54% | 96.75% | 95.81% | 88.93% | 93.03% | 88.37% | 84.61% | 89.06% |
1 Gross dividend of the financial year divided by the last share price of the financial year.
2 As of 1 January 2017 the withholding tax amounted to 30%.
The company has a statutory 3% threshold covering transparency notifications with regard to the legal provisions relating to the disclosure of major shareholdings in issuers whose shares are admitted to trading on a regulated market.
According to the transparency notifications received up to 31 December 2017 the shareholding structure of Home Invest Belgium is as follows since 14 September 2017:
| SHAREHOLDERS | NUMBER OF SHARES | % OF CAPITAL |
|---|---|---|
| Van Overstraeten Group1 | 880 965 | 26.70% |
| BMVO 2014 Burgerlijke Maatschap | 510 960 | 15.48% |
| Stavos Luxembourg | 257 462 | 7.80% |
| VOP SA | 102 575 | 3.11% |
| M. Hans Van Overstraeten | 6 640 | 0.20% |
| M. Johan Van Overstraeten | 1 231 | 0.04% |
| M. Bart Van Overstraeten | 1 095 | 0.03% |
| M. Liévin Van Overstraeten | 871 | 0.03% |
| AXA Belgium SA1,2 | 537 830 | 16.30% |
| M. Antoon Van Overstraeten1 | 121 916 | 3.69% |
| Spouses Van Overtveldt - Henry de Frahan1 | 102 792 | 3.12% |
| M. S. Van Overtveldt | 51 396 | 1.56% |
| Mrs P. Henry de Frahan | 51 396 | 1.56% |
| Other shareholders | 1 656 355 | 50.19% |
| GENERAL TOTAL | 3 299 858 | 100.00% |
The major shareholders in the company do not have different voting rights.
1 Shareholders having issued a notification according to the transparency legislation of 2 May 2007.
2 AXA Belgium is a subsidiary of AXA Holdings Belgium, itself a subsidiary of AXA SA.
At the beginning of 2018, the company continued its work searching for new acquisitions, for developing and managing of its portfolio and for divestment. The last Audit committee has taken notice of adjustments to some IFRS standards as of 2018. One of these changes relates to the date at which sales are booked; as of the financial year 2018, the realized sales will have to
be booked at the date of signing the notarial deed instead of at the date of signing the sales agreement. This adjustment could have a transitory impact on the volume of the realized capital gains in the course of 2018. No major events took place which could influence whatsoever the outlook of the results of the RREC for the coming year.
The Board of directors confirms its confidence in the continued growth 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 in the large 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 historically low levels and which favour the borrowing capacity of households.
In accordance with its dividend policy, the Board of Directors will announce, following the publication of the results of the 3rd quarter (25/10/2018), the amount of the interim dividend payable in cash in December 2018. The balance of the dividend will be decided in May 2019 by the Ordinary general meeting of the company, upon the proposal of the Board of directors.
The auditor, Grant Thornton, represented by Dirk Van den Broeck, has finalized his audit activities and has confirmed that the accounting information recorded
in this press release requires no reservation on his part and that he will deliver a statement without reservation.
"APM" is a financial indicator, hsitorical or future, of the performance, financial condition or cash flows other than a financial indicator definied or specified in the applicable financial reporting framework.
The net asset value or instrinsic value, in total or per share, is the value of the net assets, in total or per share, taking into account the latest fair value of the property portfolio, as defined by the real estate surveyor of the RREC.
The Adjusted Net asset value is the value of the net assets adjusted to exclude the fair value of financial hedging instruments.
The net result of core activities is the net result adjusted for the following income statement items:
XVI. Result of sales of investment properties XVIII Changes in fair value of investment properties XXIII. Change in fair value of financial assets and liabilities
Net income from core activities per share is calculated based on the average number of shares during the period.
The average cost of financial debt is calculated by dividing the financial debt of the year by the weighted average debt of the year. The numerator corresponds to the sum of the net interest costs included in item XXI of the profit and loss account adjusted for the activated inflows. The denominator corresponds to the average financial debt calculated over 365 days.
1 This declaration may not be considered as pertaining an opinion on the character of completeness and sufficiency of the infrmation plublished in this press release.
| 2018 | |
|---|---|
| Publication of the annual financial report on the website | Friday 30 March |
| Ordinary general meeting of the financial year 2017 | Tuesday 8 May |
| Interim statement: results on 31 March 2018 | Tuesday 8 May |
| Payment of the dividend of the financial year 2017 | Friday 18 May |
| Half-year financial report: results on 30 June 2018 | Thursday 6 September |
| Interim statement: results on 30 September 2018 | Thursday 25 October |
| 2019 | |
| Annual press release on the financial year 2018 | Thursday 21 February |
| Publication of the annual financial report on the website | Friday 29 March |
| Ordinary general meeting of the financial year 2018 | Tuesday 6 May |
| Interim statement: results on 31 March 2019 | Tuesday 6 May |
| Payment of the 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 |
Sophie Lambrighs Chief Executive Officer Tél: +32.2.740.14.51 E-mail: [email protected]
Boulevard de la Woluwe 46/11 B – 1200 Brussels www.homeinvestbelgium.be
Since its creation in 1999, Home Invest Belgium has been a Belgian real estate company listed on the stock Netherlands. Home Invest Belgium is listed on the Euronext Brussels continuous market (HOMI) and enjoys
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