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Home Invest Belgium NV

Interim / Quarterly Report Sep 8, 2016

3958_ir_2016-09-08_e454e971-f3ef-4aeb-808a-f62944242aec.pdf

Interim / Quarterly Report

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HALF-YEAR FINANCIAL REPORT 2016

Growth of the portfolio

  • Acquisition of the shares of HBLC SPRL, owner of a former office site in Molenbeek which will be converted into a residential complex;
  • Acquisition of a residential building in Oudenaarde;
  • Delivery of The Horizon building in Woluwé-Saint-Lambert.

Excellent performance of the property portfolio

  • Value of investment properties increased by 5.9%1 ;
  • Occupancy rate of 93.15%.

Significant improvement of the results

  • Net current result excluding IAS 39 progressed by 23%2 ;
  • Distributable result increased by 5%2 .

Strengthened financial structure

  • Cost of funding reduced to 2.63%;

Under embargo till 08 September 2016 at 5.40 pm — Debt ratio limited to 43.2%. Regulated information

(1) In relation to 31 December 2015 (2) In relation to the results at 30 June 2015

SUMMARY

THE 1ST HALF-YEAR AT A GLANCE THE REAL ESTATE PORTFOLIO INTERIM MANAGEMENT REPORT SHARE AND SHAREHOLDERS ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS AUDITOR'S REPORT STATEMENT OF PERSON IN CHARGE SHAREHOLDERS' CALENDAR Acquisitions Sales Development projects Portfolio management

THE 1ST HALF-YEAR AT A GLANCE

In the first half of 2016 Home Invest Belgium made the following new achievements.

In April, our Regulated Real Estate Company (RREC) acquired a building in Oudenaarde, a new location on our investment map. The renovation of the building by our teams over the coming years will be a breath of fresh air for the inhabitants and will create value for our shareholders.

In late June, The Horizon building was receptioned. Since 1 August it has been able to welcome its first occupants. The building has 161 apartments for rent. It offers its occupants a unique life-style experience in Belgium: it offers quality private spaces as well as common areas that allow occupants to enjoy greater space and expand their horizons...

The traditional half-year financial report also has a new look: the paper version has given way to the electronic format and the layout has been adapted to meet the changing trends in terms of communication of listed companies.

Beside this, our financial performance has improved compared to the first half of 2015 with a 5.9%1 increase in the value of the portfolio, rental income increasing by 6%2 , a 23%2 increase in the net current result excluding IAS 39 and a 5%2 increase in the distributable profit. While at the same time limiting the debt ratio to 43.2%, leaving room for future development.

All in all an excellent start of the year, which will be revealed to you in the following pages.

(1) In relation to 31 December 2015 (2) In relation to the results at 30 June 2015

REAL ESTATE PORTFOLIO

At 30 June 2016, Home Invest Belgium has a portfolio of properties spread over 44 sites and 3 development projects whose total fair value is estimated at € 366.6 million. 302,50 351,25

Evolution of the portfolio 205,00

In the balance sheet, the fair value of the investment properties in operation1 and development projects amounted to € 366.6 million against € 346.1 million at the end of 2015, representing an increase of 5.9%. 10,00 58,75 107,50

The real estate report by Winssinger & Associates undertaken on 30 June 2016 certifies that the investment value of the operating assets (including those held for sale) amounted to € 380,467,000, this results therefore in a fair value under IFRS of € 345,366,000.

The fair value of investment properties in operation amounts to € 344.1 million against € 313.6 million six months earlier. This growth is explained by the delivery of The Horizon development project and the acquisition of Remparden, a building in Oudenaarde. At constant portfolio, the fair value of the portfolio increased slightly (+ 0.7%), in line with the trends observed in the market.

The investment properties situated in the Brussels-Capital Region now account for 67.7% of the portfolio, those in the Walloon Region 19.6% and in the Flemish Region 12.7%.

The breakdown of the portfolio, calculated on the basis of the fair value of the properties is as follows:

Breakdown by life-cycle stage

Breakdown of investment properties by destination

The residential share of the investment properties in operation amounts to 83.5%.

(1) Excluding properties for sale and development projects.

INTERIM MANAGEMENT REPORT

Half-year highlights

EVOLUTION OF PROPERTY PORTFOLIO

Acquisitions

Célidée – acquisition of a company that helds in its assets a development project in Molenbeek

On 10 February 2016, the company acquired all the shares of HBLC sprl, which is currently implementing a project for the redevelopment of a former office site located at 29-33 rue Célidée and 13 rue Joseph Schols, 1080 Molenbeek.

This is an ambitious redevelopment project consisting of, according to the architects A2RC, the construction of a building complex composed of 96 apartments and a nursery with a total gross floor space of 8,995 sqm.

Demolition work began once its tenant Toshiba left the site at the end of May.

Remparden – acquisition of a residential building in Oudenaarde

On 12 April 2016, the company acquired 80 studios, 15 apartments, 1 office space (rented long term to Solidariteit voor het Gezin) and 74 garage boxes in a residential building located at 12 Remparden, Oudenaarde, in the Province of East Flanders, outside the city centre, 200 meters from the banks of the river Scheldt.

The building will undergo a renovation program over the coming years.

Célidée

Remparden

Over the past six months, the RREC's development projects for own account experienced significant progress.

The Horizon project (formerly "Ariane"), 208 Avenue Marcel Thiry, 1200 Woluwé-Saint-Lambert – 165 apartments

With the work completed, the building was receptioned on 30 June 2016. The first tenants are in the building since 1 August. The commercialisation of the building will continue through the entire second semester. www.thehorizon.be

Marcel Thiry C1 project, 204 C Avenue Marcel Thiry, 1200 Woluwé-Saint-Lambert – 95 apartments

Work is continuing at a normal pace with the goal of taking delivery of the building in the first quarter of 2017.

The permit application to subdivide the land adjacent to the building has been pursued and an amending application has been introduced.

Reine Astrid project, 278 avenue Reine Astrid, 1950 Kraainem

On 19 April, the commune of Kraainem issued a permit with conditions attached. An appeal against this permit has been introduced by a neighbour. The decision regarding the appeal is expected early September. Once the permit becomes final, free of any appeal, the work will start.

Brunfaut project, Rue Brunfaut and Rue Fin, 1080 Molenbeek

The introduction of the building permit application for the Brunfaut project in Molenbeek is in progress (with acquisition dependent on obtaining the permit).

The Horizon

Reine Astrid

Brunfaut

Portfolio Management

Occupancy rate1

The average occupancy rate for the entire first half of the current financial year remains at a high level of 93.15%, quasi status quo compared to the financial year 2015 (93.89%). The slight decrease observed in the occupancy rate is related to the gradual commercialisation of properties developed for own account (Trône), the large-scale renovation projects (ArchView and Clos Saint-Géry) or those acquired new and empty (Livingstone) by the RREC. It should be noted that after the first phase of marketing, these buildings have a very high occupancy level. This decrease is therefore not due to a structural gap in the portfolio or a slowdown in the residential rental market.

Portfolio rejuvenation

Home Invest Belgium continued a large-scale renovation program in some of the buildings in its portfolio.

At Ghlin, the renovation of 20 houses in the Clos Saint-Géry was completed during the first quarter of 2016. To date, all houses are rented.

At Avenue de l'Yser, major renovation of the building (16 apartments), renamed ArchView, was completed and the building was receptioned in the first quarter of 2016. At this stage, 14 apartments are rented.

The renovation of the Charles Woeste residential building in Jette was also receptioned in the first quarter 2016.

In Liège, the permit for the significant renovation of the Leopold building was obtained. Studies are underway in order to begin work once its last occupants leave the building. The application for planning permission for the Saint-Hubert building is still in process.

Home Invest Belgium continued the individual resale activity of its assets.

In the first half of 2016, 14 apartments were sold, inter alia in Wetteren, Mélèzes, Van Haelen, Floréal and Birch House, as well as the remaining 4 houses at the Ryckmans site.

These sales resulted in a record distributable capital gain of € 2.3 million.

Clos Saint-Géry

Mélèzes

(1) The occupancy rate expresses the percentage of rental income generated by occupied properties compared to the sum of rents for occupied property and the estimated rental value (ERV) of unoccupied property. The calculation does not take account of assets held for sale, development projects nor buildings subject to major renovation.

STRENGTHENING OF THE FINANCIAL STRUCTURE

Renegotiation of hedging instruments

In the first half-year, Home Invest Belgium restructured an IRS (Interest Rate Swap) with Belfius Bank and concluded a new IRS with KBC Bank. These operations have allowed the company to benefit from the current very favourable market conditions.

Overview of the financial structure

Financing Confirmed credit lines Withdrawals
Bank financing € 125 million € 114.5 million
Bond issues € 40 million € 40 million
Total € 165 million € 154.5 million

The weighted average term of the financing is 4 years and 11 months at 30 June 2016, against 5 years and 5 months at 31 December 2015.

Active hedging instruments at
30 June 2016
IRS
Total € 85 million

The average duration of interest rate hedges has been increased to 6 years and 6 months at 30 June 2016, compared to 5 years and 7 months at 31 December 2015.

The average cost of financing during the first half of the year again improved and amounts to 2.63% (compared to 3.40% in 2015 and 3.63% in 2014).

The company's debt ratio stands at 43.2%, leaving the RREC with borrowing capacity of the order of € 50 million up to the 50% debt level, and € 230 million up to the allowable legal limit of 65%.

Ryckmans ArchView

Corporate governance

Current composition of the Board of Directors (from left to right): Wim Aurousseau, Eric Spiessens, Sophie Lambrighs, Johan Van Overstraeten, Liévin Van Overstraeten, Koen Dejonckheere, Laurence de Hemptinne.

The mandate of the independent director Mr Guillaume H. Botermans came to an end at the Annual General Meeting of 3 May 2016, and Mr Guillaume H. Botermans was appointed Honorary Chairman of the company following the proposal of the Board.

On 3 May 2016 the Board of Directors nominated Mr Lievin Van Overstraeten as Chairman of the Board and Mr Eric Spiessens as Vice-chairman.

During that same Annual General Meeting and with the approval of the FSMA, Mr Dirk Van den Broeck, in his capacity as representative of the company Grant Thornton, was appointed company auditor for a period of 3 years up the Annual General Meeting of 2019. His remuneration was set at € 28,000 per annum, excluding VAT and indexation.

There were no related party transactions in the current half-year within the meaning of IAS 34 and Article 8 of the Royal Decree of 13 July 2014.

Name Board of Directors Investment
Committee
Audit
Committee
Appointment and
Remuneration
Committee
Liévin Van Overstraeten Chairman, Director - Member Chairman
Eric Spiessens Vice-chairman,
Independant Director
- Chairman Member
Sophie Lambrighs Managing Director Member - -
Wim Aurousseau Director - Member -
Koen Dejonckheere Independant Director - - -
Laurence de Hemptinne Independant Director - - Member
Johan Van Overstraeten Director Chairman - -
Alain Verheulpen* - Member - -

Summary table of the current composition of the Board of Directors and Committees

* Representing Axa Belgium

Effective management

On 13 July, Mr Nicolas Vincent joined Home Invest Belgium as Chief Investment Officer (CIO). With the agreement of the FSMA, he became a member of the effective management of the company.

Events after the closing of the first half-year

Apart from routine business, there have been no significant events following the closing of the first half-year.

Outlook

The company's income derives on the one hand, from renting out its buildings and secondly, from regular selective selling of part (± 4%) of its portfolio.

The rental market is sustained by the population growth evident in the major Belgian cities, but suffers from low inflation. The acquisition market is supported by very low interest rates that assist the borrowing capacity of households.

Throughout the first half of 2016, the company continued working on new acquisitions, development projects, portfolio management and sales.

The Board of Directors confirms its confidence in the continued growth of the company's results. For the current year, the Board considers that the dividend for 2016 should be at least equal to the dividend of the previous year, except in the event of a sudden and significant deterioration in the housing market for sale and/or rent (which the Board does not expect at the moment this report is being drawn up) or other unforeseen events.

According to its policy regarding the distribution of dividends, Home Invest Belgium shall announce the amount of the interim-dividend in the publication of its results on the third quarter of 2016 (on 27 October). This interim-dividend shall be paid in the course of December 2016.

INFORMATION ON THE OUTLOOK

This half-year financial report contains forecasts based on current plans, estimates and projections made by the company and on reasonable expectations related to external events and factors. By their nature, these forecasts involve risks and uncertainties that could cause changes to the results, financial conditions, performance and current achievements. Given these uncertainties, statements regarding the future of the company cannot be guaranteed.

Principal risks and uncertainties

The Board considers that the main risk factors discussed on pages 5 to 13 of the 2015 annual financial report are relevant to this half-year report.

SHARES AND SHAREHOLDERS

Stock price performance

During the six months under review, Home Invest Belgium's closing share price fluctuated between a low of € 91.81 and a high of € 103. The share price shows

an increase of 8%, taking into account the closing price on the last trading day of the half-year, 30 June 2016 (€ 100) compared to 31 December 2015 (€ 92.59).

Evolution of the share price and gross dividend (in €)

Generally, the first six months of the financial year 2016 were characterised by a gradual increase in the share price from January to April (to its maximum of €103 on 22 April 2016) before experiencing fluctuations following market uncertainties.

The premium between the share price at 30 June 2016 (€ 100) and the net asset value that day (€ 64.48) amounted to 55.1% (compared to a premium of 45.6% on 31 December 2015). Expressed as net asset value excluding IAS 39 (€ 67.95), this premium is 47.2%. This premium reflects the confidence of shareholders in the significant performance generated by an investment in Home Invest Belgium shares and the general compression of yields seen in the financial markets.

Comparison with the stock market evolution: Home Invest Belgium - BEL 20 - Index EPRA Belgium

❙ Home Invest Belgium ❙ EPRA Belgium ❙ BEL 20

Shareholding structure at 30 June 2016

Based on transparency statements provided by the shareholders exceeding the statutory shareholding

threshold of 3%, the shareholding structure of the company is as follows:

Shareholders Number of shares As % of capital
Group Van Overstraeten* 737,553 23.33%
AXA Belgium SA* 537,830 17.02%
Mr Antoon Van Overstraeten* 121,916 3.86%
Mr and Mrs Van Overtveldt - Henry de Frahan* 102,792 3.25%
Other shareholders 1,660,718 52.54%
General total 3,160,809 100.00%

* Shareholders having made a declaration under the Law of 2 May 2007.

ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS

The Board of Directors met on 31 August 2016 to review the consolidated half-year financial statements as at 30 June 2016.

The accounting policies and valuation criteria used for the interim financial statements, as recorded in this half-year report, are identical to those used for the preparation of the annual financial statements closed on 31 December 2015.

This half-year report applies the IAS 34 standard, which prescribes the minimum content of this interim financial report and the applicable accounting and valuation principles.

Taking into account the company's activities, the figures presented below do not have a seasonal or cyclical nature.

Finally, the percentages quoted in the comments below are calculated on the basis of non-rounded figures from the income statement or from the balance sheet and can therefore deviate from those, which were calculated on the basis of the rounded figures presented below.

As the company has not applied any new standards or amendments to existing standards in an anticipatory manner, they consequently have no impact on the financial statements under review.

Ryckmans

Income statement

30/06/2016 30/06/2015
I. Rental income (+) 9,209,374 8,688,827
III. Rental-related expenses (±) -66,162 -111,277
NET RENTAL RESULT 9,143,212 8,577,550
IV. Recovery of property charges (+) 26,752 37,663
V. Recovery of charges and taxes normally borne by the tenant on let properties (+) 539,195 587,960
VII. Charges and taxes normally borne by the tenant on let properties (-) -2,296,362 -1,797,413
PROPERTY RESULT 7,412,797 7,405,760
IX. Technical costs (-) -418,681 -742,811
X. Commercial costs (-) -173,261 -149,213
XI. Charges and taxes on un-let properties (-) -200,712 -156,400
XII. Property management costs (-) -1,300,569 -1,367,449
XIII. Other property costs (-) -21,994 -57,503
PROPERTY COSTS -2,115,217 -2,473,377
PROPERTY OPERATING RESULT 5,297,580 4,932,383
XIV. General corporate expenses (-) -516,531 -479,670
XV. Other income and operating charges (±) -70,059 0
OPERATING RESULT BEFORE PORTFOLIO RESULT 4,710,990 4,452,713
XVI. Result of sale of investment properties (±) 181,944 365,578
XVIII. Changes in fair value of investment properties (±) 4,180,848 2,653,986
OPERATING RESULT 9,073,783 7,472,277
XX. Financial income (+) 27,452 31,200
XXI. Net interest charges (-) -1,484,966 -1,847,703
XXII. Other financial charges (-) -28,284 -30,154
XXIII. Changes in fair value of financial assets and liabilities (±) -3,320,576 1,762,778
FINANCIAL RESULT -4,806,374 -83,879
PRE-TAX RESULT 4,267,409 7,388,398
XXIV. Corporation tax (-) -32,100 -17,367
TAXES -32,100 -17,367
NET RESULT 4,235,309 7,371,031
NET RESULT ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 4,235,309 7,371,031
NET RESULT PER SHARE 1.35 2.34
Average number of shares1 3,147,897 3,147,897
NET CURRENT RESULT (excluding the items XVI. XVII. XVIII. et XIX.) -127,484 4,351,467
NET CURRENT RESULT PER SHARE (excluding the items XVI. XVII. XVIII. et XIX.) -0.04 1.38
NET CURRENT RESULT EXCLUDING IAS 39 (excluding the items XVI. XVII. XVIII. XIX. 3,193,093 2,588,689
Et XXIII.)
NET CURRENT RESULT EXCLUDING IAS.39 PER SHARE
(excluding the items XVI. XVII. XVIII. XIX. and XXIII.)
1.01 0.82
PORTFOLIO RESULT (XVI. à XIX.) 4,362,792 3,019,564
PORTFOLIO RESULT PER SHARE (XVI. to XIX.) 1.39 0.96
DISTRIBUTABLE RESULT 5,555,100 5,286,502
DISTRIBUTABLE RESULT PER SHARE 1.76 1.68
Operating margin (Operating result before portfolio result / Property result) 63.55% 60.12%
Operating margin before taxes (Pre-tax result before taxes excl. portfolio result /
Property result -1.29% 58.99%
Net current margin (Net result excl. portfolio result/ Property result -1.72% 58.76%
STATEMENT OF COMPREHENSIVE INCOME 30/06/2016 30/06/2015
I. NET RESULT 4,235,309 7,371,031
II. OTHER ITEMS OF COMPREHENSIVE INCOME
B. Changes in the efficient part of the fair value of hedging instruments authorised as -644,664 143,966
cash flow as defined in IFRS
1. Effective hedging instruments -644,664 143,966
COMPREHENSIVE INCOME (I + II) 3,590,645 7,514,997

(1) The number of shares at the end of the period is calculated excluding the 12 912 shares held under auto-control.

Net rental income

Rental income amounted to € 9.2 million against € 8.7 million in June 2015 (+ 6.0%), under the positive impact of new acquisitions and the delivery of buildings under construction.

Charges relating to renting decreased to € 0.1 million, particularly under the influence of write-downs on trade receivables, which tend to fall.

Net rental income was € 9.1 million against € 8.6 million a year earlier, an increase of 6.6%.

The property result

Rental charges and taxes normally payable by tenants consist mainly of property withholding taxes paid by the RREC and amounted to € 2.3 million. A portion of these prepayments (€ 0.5 million), however, could be passed on to certain tenants, in accordance with the applicable legislation (shops, offices, nursing homes). Consequently, the property result amounts to € 7.4 million, unchanged from its level a year ago.

The property operating result

The property operating result amounts to € 5.3 million, up by 7.4% compared to the result of € 4.9 million recorded in June 2015.

The technical costs decreased following a change in certain expenses from section IX to section VII. Marketing expenses amounted to € 0.2 million, slightly above the previous year and resulting from the marketing of recently rented buildings.

The operating result before the portfolio result

The general corporate expenses of the RREC include all expenses that are not directly related to the management of the portfolio and the management of the company. They increased by 7.7% to stand at € 0.5 million mainly due to costs incurred in the examination of new projects.

This results in an operating result before portfolio result of € 4.7 million, compared to the result recorded in late June 2015 of € 4.5 million, an increase of 5.8%.

Operating income

The portfolio result is once again positive and amounted to € 4.4 million. This result is partly explained by the positive change in the fair value of investment property, amounting to € 4.2 million, but also by the capital gains realised compared to the last fair value, amounting to € 0.2 million in 2016.

This important achievement demonstrates once again the resilience of Home Invest Belgium's portfolio values and its ability to generate recurring gains in the interest of its shareholders.

Operating income, after taking into account the portfolio result, amounted to € 9.1 million, compared to € 7.5 million in June 2015.

The financial result

As in 2015, Home Invest Belgium continued to optimise its hedging instruments and loans, resulting in a decrease of 19.6% in financial costs from € 1.8 million in June 2015 to € 1.5 million at 30 June 2016.

Also can be noticed a negative fair value for our hedging instruments of € 3.3 million, which is a purely latent amount that is excluded from distributable income.

Net result - net current result - the net current result excluding IAS 39 - distributable result

After taking into account financial expenses and taxes, Home Invest Belgium's net result amounts to € 4.2 million. The net current result excluding IAS 39 reflects the operational profitability of the company, excluding purely latent factors, and reached € 3.2 million, a 23% increase compared to June 2015 (€ 2.6 million). Distributable result rose meanwhile by 5%, from € 5.3 million in June 2015 to € 5.6 million in June 2016.

Balance sheet

ASSETS 30/06/2016 31/12/2015
I. Non-current assets 367,571,124 347,049,162
B. Intangible assets 77,389 7,733
C. Investment properties 366,579,119 346,100,301
D. Other tangible assets 123,626 149,060
E. Non-current financial assets 73,108 74,186
F. Finance lease receivables 717,882 717,882
II. Current assets 10,618,486 16,012,906
A. Assets held for sale 1,561,737 2,484,525
C. Finance lease receivables 88,211 127,147
D. Trade receivables 5,769,384 10,343,536
E. Tax receivables and other current assets 162,052 275,869
F. Cash and cash equivalents 2,575,484 2,487,426
G. Deferred charges and accrued income 461,616 294,403
TOTAL ASSETS 378,189,610 363,062,069
SHAREHOLDERS' EQUITY ATTIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY
A. Capital 75,999,055 75,999,055
B. Share premium 24,903,199 24,903,199
C. Reserves 97,857,740 95,782,145
D. Net result for the period 4,235,309 3,507,233
SHAREHOLDERS' EQUITY 202,995,303 200,191,632
LIABILITIES
I. Non-current liabilities 165,102,783 154,617,936
B. Non-current financial debts 154,186,277 147,666,669
a. Credit institutions 114,500,000 108,000,000
c. Other 39,686,277 39,666,669
C. Other non-current financial liabilities 10,916,506 6,951,266
II. Current liabilities 10,091,523 8,252,501
B. Current financial debts 609,527 605,651
c. Other 609,527 605,651
D. Trade debts and other current debts 8,528,205 6,026,535
b. Other 8,528,205 6,026,535
E. Other current liabilities 92,223 85,861
F. Accrued charges and deferred income 861,568 1,534,454
LIABILITIES 175,194,307 162,870,436
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 378,189,610 363,062,069
Number of shares at end of period1 3,147,897 3,147,897
Net asset value 202,995,303 200,191,632
Net asset value per share 64.49 63.60
EPRA NAV2 67.95 65.80
Indebtedness 163,416,233 154,384,716
Debt ratio 43.21% 42.52%

(1) The number of shares at the end of the period is calculated excluding the 12 912 shares held under auto-control. (2) «EPRA NAV» is the value of the Net Assets adjusted to exclude, inter alia, the fair value of hedging instruments.

Assets

The investment properties amounted to € 366.6 million against € 346.1 million in 2015 (+ 5.9%), and this subsequent to the expansion of the portfolio mentioned above and notwithstanding the sales undertaken. In this regard, it may be noted that almost all of the € 5.8 million included in trade receivables relates to property sold subject to a sales contract (compromis de vente) and of which the funds should be received in the second half of 2016 when the deed transfers are completed.

Equity

Equity increased by 1.4% from € 200.2 million (€ 63.60 per share) in 2015 to € 203.0 million (€ 64.49 per share) in June 2016.

Indebtedness

With the financing of new assets being undertaken exclusively by debt, financial debt rose from € 147.7 million to € 154.2 million in June 2016. The debt ratio thus amounts to 43.21% (compared to 42.52% in 2015).

Fair value

Regarding the fair value of the financial instruments and the applied hierarchy, we refer to the annual accounts of 2015.

Charles Woeste Birch House

Cash flow

30/06/2016 30/06/2015
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,487,426 4,925,898
1. Cash flow from operating activities 8,969,099 2,279,809
Result for the period 4,235,309 7,371,031
Result for the period before interest and taxes 9,073,783 7,472,277
Interest received 27,452 31,200
Interest paid -1,513,249 -1,877,857
Changes in fair value of financial assets and liabilities -3,320,576 1,762,778
Taxes -32,100 -17,367
Adjustment of profit for non-current transactions -1,003,706 -4,743,105
Depreciation and write-downs 38,510 39,237
- Depreciation and write-downs on non-current assets 38,510 39,237
Other non monetary elements -860,272 -4,416,764
-Changes in fair value of investment properties (+/-) -4,180,848 -2,653,986
-Other non-current transactions 3,320,576 -1,762,778
Gain on the realisation of assets -181,944 -365,578
- Valued added through the sale of non-current assets -181,944 -365,578
Change in working capital requirements 5,737,496 -348,117
Movement in asset items 4,752,771 -1,649,642
-Current financial assets 38,936 36,174
-Trade receivables 4,766,498 -1,404,466
-Tax receivables and other short term assets 113,817 -5,238
-Deferred charges and accrued income -166,480 -276,112
Movement of liabilities items 984,726 1,301,525
-Trade and other current debts 2,185,372 1,998,516
-Other current liabilities -527,760 -692
-Accrued charges and deferred income -672,886 -696,299
2. Cash flow from investment activity -14,610,641 -17,498,371
Investment properties – capitalised investments -1,133,278 -2,286,532
Investment properties – new acquisitions -5,954,469 -14,767,277
Divestments 6,240,147 6,605,370
Development projects -12,511,490 -7,033,805
Other non-tangible assets -71,735 0
Other tangible assets -10,997 -20,890
Non-current financial assets 1,079 4,764
Subsidiaries acquisitions -1,169,897 0
3. Cash flow from financing activities 5,729,600 11,884,706
Changes in financial liabilities and debts
Increase (+) / Decrease (-) in financial debts 6,519,608 23,519,608
Dividend of the previous period -790,008 -11,634,901
CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,575,484 1,592,042
Note A Subsidiaries acquisitions HBLC
Cash and cash equivalents 87,136
Investment properties 1,834,148
Trade receivables 192,347
Deferred charges and accrued income of the asset 733
Other non-current financial debts -537,157
Trade debts -320,174
Total of the acquisitions 1,257,033
Cash flow of the subsidiaries -87,136
CASH FLOW ON ACQUISITION OF SUBSIDIARIES 1,169,897

Changes in shareholders' equity

Capital Capital
increase
expenses
Share
premium
Legal
reserve
Reserve from
the balance
of changes in
fair value of
investment
properties
Reserve from
estimated
transfer costs
and rights
BALANCE AT 31/12/2014 76,949,295 -950,240 24,903,199 98,778 103,516,959 -27,561,611
Transfer
Changes resulting from
the sale of a building
-4,049,458 779,974
Dividend distribution
Result for the period
Changes in fair value of
hedges
Changes in fair value of
buildings
8,543,550 -1,553,471
BALANCE AT 30/06/2015 76,949,295 -950,240 24,903,199 98,778 108,011,051 -28,335,108
BALANCE AT 31/12/2015 76,949,295 -950,240 24,903,199 98,778 105,544,309 -27,453,339
Transfer
Changes resulting from
the sale of a building
-7,765,138 743,048
Dividend distribution
Interim dividend
distributed in previous
period
Result for the period
Changes in fair value of
hedges
Reclassification of hedges
Changes in fair value of
buildings
10,105,545 -4,113,677
BALANCE AT 30/06/2016 76,949,295 -950,240 24,903,199 98,778 107,884,716 -30,823,968
Reserve from
the balance of
changes in the
fair value of
hedges
Reserve
for treasury
shares
Other
reserves
Result
carried
forward
from
previous
period
Net result
for period
Total
BALANCE AT 31/12/2014 -1,098,342 -757,323 1,259,467 15,926,094 15,937,954 208,224,230
Transfer -2,683,611 2,683,611 0
Changes resulting from
the sale of a building
3,269,484 0
Dividend distribution -11,631,485 -11,631,485
Result for the period 7,371,031 7,371,031
Changes in fair value of
hedges
143,966 143,966
Changes in fair value of
buildings
-6,990,080 0
BALANCE AT 30/06/2015 -954,376 -757,323 1,259,467 16,511,967 7,371,031 204,107,742
BALANCE AT 31/12/2015 -1,006,688 -757,323 1,259,467 18,096,940 3,507,233 200,191,632
Transfer -3,271,610 3,271,610 0
Changes resulting from
the sale of a building
7,022,090 0
Dividend distribution -12,591,588 -12,591,588
Interim dividend
distributed in previous
period
11,804,614 11,804,614
Result for the period 4,235,309 4,235,309
Changes in fair value of
hedges
-644,664 -644,664
Reclassification of hedges -5,944,578 5,944,578 0
Changes in fair value of
buildings
-5,991,869 0
BALANCE AT 30/06/2016 -7,595,930 -757,323 1,259,467 27,791,999 4,235,309 202,995,303

Segment information

Home Invest Belgium has chosen to fully focus its investment strategy on residential property (apartment buildings and houses). Its investment strategy is largely determined by the geographical location of the buildings concerned. Accordingly, the following segmentation used is based on geographical location.

Income statement by region

30/06/2016 Total
Consoli
dated
Brussels
Capital
Region
Flemish
Region
Walloon
Region
Unallocated
I. Rental income (+) 9,209,374 5,624,245 1,089,501 2,495,627
OPERATING RESULT BEFORE PORTFOLIO RESULT 4,710,990 5,205,569 1,007,624 2,221,241 -3,723,444
XVI. Result on sale of investment properties (+/-) 181,944 79,311 128,762 -3,583 -22,545
XVIII. Changes in fair value of investment properties (+/-) 4,180,848 4,153,198 181,284 -153,633
FINANCIAL RESULT -4,806,374 25,525 -4,831,898
30/06/2015 Total
Consoli
dated
Brussels
Capital
Region
Flemish
Region
Walloon
Region
Unallocated
I. Rental income (+) 8,688,827 5,125,998 1,023,797 2,539,032
OPERATING RESULT BEFORE PORTFOLIO RESULT 5,241,062 4,710,873 934,980 2,433,210 -2,838,000
XVI. Result on sale of investment properties (+/-) 365,578 122,168 297,985 -54,575
XVIII. Changes in fair value of investment properties (+/-) 2,653,986
FINANCIAL RESULT -83,879 28,547 -112,426

KEY FIGURES1

30/06/2016 Total
Consolidated
Brussels
Capital Region
Flemish
Region
Walloon
Region
Fair value 344,120,654 233,160,396 43,706,231 67,254,027
Rental surface 160,263 95,772 19,479 45,012
Number of units 1,754 1,065 275 414
Occupancy rate 93.2% 91.6% 88.8% 96.2%
30/06/2015 Total
Consolidé
Région
Bruxelloise
Région
Flamande
Région
Wallonne
Fair value 305,145,630 202,439,525 36,775,698 65,930,407
Rental surface 147,566 88,525 14,029 45,012
Number of units 1,359 818 146 395
Occupancy rate 92.2% 91.5% 91.9% 93.6%

(1) Excluding development projects and assets held exclusively for sale.

Explanatory notes

30/06/2016 30/06/2015
Investment properties, balance at beginning of the period 346,100,301 316,492,961
Development projects
Balance at the beginning of the period 32,465,174 33,935,640
Investments – development projects 10,018,704 7,033,805
Contributions - Purchases 4,326,934
Development projects receptioned -24,352,346 -6,143,417
Balance at the end of the period 22,458,466 34,826,029
Investment properties in operation
Balance at the beginning of the period 313,635,127 282,557,321
Completion of buildings under construction 24,352,346 6,143,417
Acquisition of buildings 5,954,469 14,767,277
Capitalised subsequent expenses 1,133,278 2,286,532
Profits (losses) resulting from change in value fair 4,180,848 2,653,986
Disposals (-) -5,135,415 -3,262,903
Balance at the end of the period 344,120,654 305,145,630
Investment properties, balance at the end of the period 366,579,119 339,971,658

Scope of consolidation

The scope of consolidation at 30 June 2016 has changed compared to 31 December 2015, following the acquisition of all the shares of HBLC sprl on 10 February 2016 (it should be recalled, this company has in its assets a former office site located in 1080 Molenbeek. This site will be converted into a residential property). The scope now includes Home Invest Belgium SA (0420.767.885), Home Invest Development SA (0466.151.118),

Distributed dividend

The Annual General Meeting of 3 May 2016 approved the distribution of results proposed by the Board of Directors. A gross dividend of € 4.00 per share has thus been distributed. Given the interim dividend paid in December 2015 of € 3.75 (coupon No. 19), the remaining part of the dividend for the 2015 financial year of € 0.25 (coupon No. 20) was paid on 13 May 2016.

Since 1 January 2016, this dividend has been subject to a withholding tax of 27% so that the net dividend for the year 2015 amounted to € 3.37 per share.

Conditional assets and liabilities at 30 June 2016

At 30 June 2016, Home Invest Belgium had no conditional assets or liabilities.

Charlent 53 Freehold SPRL (0536.280.237) and HBLC SPRL (0541.863.576).

AUDITOR'S REPORT

REPORT ON THE LIMITED REVIEW OF THE INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED ON 30 JUNE 2016

Introduction

We conducted a limited review of the interim consolidated balance sheet of Home Invest Belgium at 30 June 2016 and the interim consolidated statements of income, changes in equity and cash flows for the six months ending on that date, and notes comprising a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim consolidated financial information in accordance with International Financial Reporting Standards Repository, as approved by the European Union, applicable to the communication of interim financial reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim consolidated financial information based on our limited review.

Scope of the limited review

We conducted our limited review in accordance with IRSE Standard 2410, "Limited review of Interim Financial Information Performed by the Independent Auditor of the Entity". A limited review of interim financial information consists of making inquiries, primarily with persons responsible for financial and accounting matters and applying analytical procedures and other limited review procedures. The scope of a review is substantially less than that of an audit conducted in accordance with ISA standards and consequently does not enable us to obtain assurance that we would become aware of all significant facts that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial information does not present fairly, in all material respects, the consolidated financial position of the entity at 30 June 2016, and its financial performance and cash flows for the six month period ending on that date, in accordance with the International Financial Reporting Standards, as approved by the European Union.

Antwerp, 31 August 2016

Grant Thornton, auditors, represented by Dirk Van den Broeck Company auditor and auditor approved by the FSMA for UCI's Statutory Auditor

STATEMENT OF PERSON IN CHARGE

In accordance with Article 13 §2, 3 ° of the Royal Decree of 14 November 2007, Sophie Lambrighs, Chief Executive Officer of the RREC, attests that to her knowledge:

  • a) the summary financial statements prepared in accordance with applicable accounting standards, present a fair view of the assets, the financial situation and the results of the RREC and the companies included in the consolidation;
  • b) the interim management report includes a fair presentation of the mandatory information, particularly those listed in § 5 and 6 of Article 13 of the Royal Decree of 14 November 2007.

SHAREHOLDERS' CALENDAR

2016
Interim statement: results on 30 September 2016 and announcement
of the advance payment on dividend
Thursday 27 October 2016
2017
Annual press release for the 2016 financial year Thursday 23 February 2017
Posting of annual financial report on the website Friday 31 March 2017
Annual General Meeting for the 2016 financial year Tuesday 2 May 2017
Interim statement: results on 31 March 2017 Tuesday 2 May 2017
Payment of the remaining part of the dividend for the 2016 financial year Friday 12 May 2017
Half-year financial statement: results on 30 June 2017 Thursday 7 September 2017
Interim statement: results on 30 September 2017 Thursday 26 October 2017

For further information:

Sophie Lambrighs Home Invest Belgium SA E-mail: [email protected] B – 1200 Brussels

Chief Executive Officer Public RREC under Belgian law Tel: +32.2.740.14.50 Boulevard de la Woluwe 60, Bte 4 RPM : 0420.767.885 | ISIN BE 003760742 www.homeinvestbelgium.be

Home Invest Belgium is a residential public RREC. As a pure player, it makes quality residential property available to its 1,750 tenants and enables them to benefit from professional management. At 30 June 2016, the fair value of its property portfolio stood at EUR 366.6 million. Home Invest Belgium has 44 operating sites (a total surface area of ± 160,000 sqm) and 3 development projects (about 250 units). Since its creation in June 1999, Home Invest Belgium has been listed on the Euronext Brussels stock market. At 30 June 2016, its market capitalisation stood at € 316 million.

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