Interim / Quarterly Report • Sep 8, 2016
Interim / Quarterly Report
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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
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
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
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
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:
The residential share of the investment properties in operation amounts to 83.5%.
(1) Excluding properties for sale and development projects.
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.
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.
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
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.
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.
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
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.
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.
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.
| 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
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 | - | - |
* Representing Axa Belgium
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.
Apart from routine business, there have been no significant events following the closing of the first half-year.
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.
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.
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.
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).
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.
❙ Home Invest Belgium ❙ EPRA Belgium ❙ BEL 20
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.
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
| 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.
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%.
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 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 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%.
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.
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.
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.
| 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.
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 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.
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).
Regarding the fair value of the financial instruments and the applied hierarchy, we refer to the annual accounts of 2015.
Charles Woeste Birch House
| 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 |
| 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 |
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.
| 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 |
| 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.
| 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 |
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),
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.
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).
REPORT ON THE LIMITED REVIEW OF THE INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED ON 30 JUNE 2016
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.
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.
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.
Grant Thornton, auditors, represented by Dirk Van den Broeck Company auditor and auditor approved by the FSMA for UCI's Statutory Auditor
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:
| 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 |
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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