Earnings Release • Oct 26, 2017
Earnings Release
Open in ViewerOpens in native device viewer
The Inside, Woluwe-Saint-Lambert
1 Compared to the value at 31st December 2016
2 Compared to 30th of September 2016
The fair value of the investment properties3 amounts to € 452.9 million at 30 September 2017 and increases by 10.8% compared to the situation at 31 December 2016 (€ 408.8 million).
The current gross rental income together with the estimated rental value (ERV) of vacant spaces amounts to € 23.4 million.
The investment properties located in the Brussels-Capital Region represent 63.4% of Home Invest Belgium's portfolio, those in Wallonia 16.1 %, those of the Flemish Region 9.0 % and those situated in The Netherlands 11.5%.
The breakdown of this portfolio of investment properties, calculated on the basis on the fair value of properties, is detailed in the illustrations below.
The delivery of the building The Inside on 30th of June has increased the share of properties in operation in the overall portfolio.
3 This fair value corresponds to the "Investment properties" section in the balance sheet, which also includes the development projects according to IAS 40 and does not take into account properties to be sold.
The average rate of occupation of properties in operation amounts to 90.36 % during the first three quarters of 2017, in line with the average occupancy rate over 2016 (90.18%).
This rate, which is slightly lower than the historical occupancy rate, is the result of the active portfolio management of the Regulated Real Estate Company (RREC):
The occupancy rate for the residential buildings currently in operation remains at a high level of 95.38%.
The Inside, 2-bedroom apartment, Woluwe-Saint-Lambert
The total value of the shareholders' equity of Home Invest Belgium amounts to € 227.5 million at 30 September 2017, compared to € 205.2 million at 31 December 2016, or a net value per share of € 69.20, against € 65.19 per share at the close of the previous year. Without the impact of the fair value of the financial instruments, the net asset value stands at € 71.58.
The debt ratio slightly increases compared to the situation at 31 December 2016 (49.03% at 30 September 2017 against 48.51% at 31 December 2016).
| CONSOLIDATED KEY RESULTS (IN €) 1 2 | From 1/1/2017 to 30/09/2017 |
From 1/1/2016 to 30/09/2016 |
|---|---|---|
| Net rental result | 16 517 317 | 13 840 918 |
| Property result | 14 639 284 | 12 032 680 |
| Operating result before the portfolio result | 10 002 326 | 8 093 891 |
| Portfolio result | ||
| - Result on sales (distributable capital gain) | 2 788 244 | 3 207 085 |
| - Changes in fair value | 3 089 266 | 10 949 491 |
| Financial result | ||
| - Financial result excluding changes in fair value of financial assets and liabilities |
-2 679 977 | -2 244 117 |
| - Changes in fair value of financial assets and liabilities 3 | 1 152 877 | -3 690 854 |
| Net result | 11 494 006 | 13 259 816 |
| Average number of shares 4 | 3 157 351 | 3 147 897 |
| Net result of core activities | 7 107 528 | 5 801 646 |
| Net result of core activities per share (4) | 2.25 | 1.84 |
| Distributable result | 9 950 390 | 9 010 253 |
| Distributable result per share (4) | 3.15 | 2.86 |
| On 30/09/2017 | On 30/12/2016 | |
| Net value per share | 69.20 | 65.19 |
1 IAS 34 has not been applied at the level of the content of the accounting data reproduced above.
2 Figures reviewed by the Auditor.
3 Relates to the changes in fair value of the hedges.
4 The total number of shares entitled to the full dividend amounts to 3 157 351 on 30 September 2017, after deduction of the 11 712 shares held under auto-control.
Over the first three quarters of 2017 the net rental income increased by 19.3% compared to the situation a year ago. This increase is the result of the contribution to revenues from acquisitions and projects delivered in the meantime.
The property result amounts to € 14.6 million, a progress of 21.7 % compared to last year.
The property charges and the overheads increase compared to the third quarter of 2016 to € 4.6 million (against € 3.9 million), but to a lesser extent than the rise of the property result (17.7% vs 21.7%).
Consequently, the operating result before the portfolio result rises significantly by 23.6% compared to the situation last year.
The portfolio result is composed of the valuation of the portfolio in operation (recording an unrealized capital gain of € 3.0 million) and the result on the sales (the distributable capital gain amounting to € 2.8 million).
The financial result, excluding the changes in fair value of the financial instruments, substantially increases (19.4%), but also less than the property result, and is the consequence of the new acquisitions. The average cost of funding amounted to 2.18% for the first 3 quarters (against 2.53% for the entire year 2016). The changes in fair value of our financial instruments are positive for an amount of € 1.2 million, but this purely a latent amount.
The net result of the core activities amounts to € 7.1 million compared to € 5.8 million at 30 September 2016, or a progress of 22.5%.
The distributable income – comprising the distributable capital gains realized in the course of the quarter – evolves from € 9.01 million at 30 September 2016 to € 9.95 million at 30 September 2017.
Important to mention is that the operating margin improves from 67.3% to 68.4% at 30 September 2017.
The Pulse, Molenbeek
On August 31st Home Invest Belgium SA has acquired the totality of the shares of the company Investers SA, owner of 27 apartments, 4 shops and 2 office spaces, spread across three Brussels buildings. The buildings are in good condition and all units are let. The total annual rent amounts to ± € 350,000.
Within the framework of the partial demerger, V.O.P. has transferred total ownership on 13th September of a building located Place de l'Amitié in Auderghem, that comprises 3,718 sqm gross, or, net 3,391 sqm, and is composed of 40 apartments, 41 basements and 40 parking spaces to Home Invest Belgium.
More information is available in the specific press releases on these transactions published by the company.
Libertys, Auderghem
The works on the projects The Pulse in Molenbeek (previously named Célidée), Scheldevleugel (previously named Remparden) in Audenarde, Reine Astrid in Kraainem, 'Léopold' and 'Saint-Hubert' in Liège continued.
The Pulse (Molenbeek) comprises 93 apartments, 3 houses and a nursery, spread across three different buildings (Blocs A, B and C). The works on bloc B are almost finished. The first apartments will soon be ready to be visited. The letting of the first apartments will start in November.
The renovation works on the project Scheldevleugel are carried out in different phases. The first renovation phase (29 first apartments) ends this month. The second phase (30 subsequent apartments) will be completed by the end of December. www.scheldevleugel.be
In Kraainem the project Reine Astrid relates to the construction of 40 apartments, shops and a nursery on the ground floor. The works on the building shell are ongoing and the completion of the works is foreseen in the course of the 3rd quarter of 2018.
In Liège the extensive renovation works on the buildings 'Léopold' and 'Saint-Hubert' also continued.
The urban planning permit for the project Brunfaut (Molenbeek) and the allotment permit for the project MTC2 (Woluwe-Saint-Lambert) were delivered. The works on the project Brunfaut, relating to the reconstruction of 93 apartments, spaces for collective equipments and a nursery, should start mid-November.
Scheldevleugel (Oudenaarde)
The rental activity of the first quarter was intense, with the renewal of 210 rental contracts and the conclusion of 62 new ones.
The management of the building The Horizon has reached cruising speed in the meanwhile, and the unique concept of the building still benefits from a huge success among the residents.
The neighbouring building, The Inside, is also very successful, as since the start of the letting at the beginning of July, already 60% of the apartments have been let. www.theinside.be
In the course of the first three quarters of 2017, Home Invest Belgium sold 33 apartments, unit per unit, in 6 different buildings. These sales have allowed to book a distributable capital gain of € 2.79 million.
Apart from routine management, no important events took place after closing the accounts.
Several new investment files under study are at an advanced stage of analysis. The Board believes that one or the other should be finalized by the end of the year.
The Board of Directors confirms its confidence in the further growth of the company's results. For the current financial year, the Board believes that the dividend over 2017 should at least be equal to that of the previous financial year (€4.25), except in the case of a sudden and substantial deterioration of the residential letting and/or sales property market (which the Board does not expect at the moment of editing this press release) or other unforeseen events.
In accordance with its dividend policy, the Board of directors has decided on 23 October 2017 to distribute an interim dividend payable in cash in December 2017. The interim dividend was set at € 3.75 per share. Consequently, coupon no 23 will entitle to an advance payment on the dividend of € 3.75 gross, or € 2.6250 net, per share (after deduction of the current withholding tax of 30%), payable on 6th of December 2017.
The final dividend will be decided in May by the General Annual Meeting of the company, based on the proposal of the Board.
| 2017 | ||
|---|---|---|
| Ex-dividend date of coupon n°23 related to the interim dividend |
Monday 4 December | |
| Record date | Tuesday 5 December | |
| Date of payment in cash of interim dividend | Wednesday 6 December | |
| 2018 | ||
| Annual press release for the financial year 1017 | Thursday 22 February | |
| Posting of the annual financial report on the website | Friday 30 March | |
| Annual General Meeting for the 2017 financial year | Tuesday 8 May | |
| Interim statement: results | Tuesday 8 May | |
| Payment of the remaining part of the dividend for the 2016 financial year |
Friday 18 May | |
| Half-year financial statement : results at 30 June 2017 | Thursday 6 September | |
| Interim financial statement : results at 30 September 2017 and announcement of interim dividend |
Thursday 25 October |
Sophie Lambrighs Home Invest Belgium Chief Executive Officer Boulevard de la Woluwe 46 Tel: +32.2.740.14.51 B – 1200 Brussels E-mail: [email protected] www.homeinvestbelgium.be
Since its creation in 1999, Home Invest Belgium has been a Belgian real estate company listed on the stock market and available to its tenants and provides them with professional management services. Home Invest Belgium also develops its Although exclusively present in Belgium until 2016, it strengthened the geographic diversification of its portfolio by also
Home Invest Belgium is listed on the Euronext Brussels continuous market (HOMI) and enjoys the Belgian tax status of an SIR (regulated real estate company).
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.