Quarterly Report • Sep 8, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
AS AT 30 JUNE 2022
| I. | INTERMEDIATE REPORT1 | |
|---|---|---|
| II. | Interim management report 2 | |
| A. | Highlights 2 | |
| B. | Project overview7 | |
| III. | Interim condensed consolidated financial statements10 | |
| A. | Condensed consolidated statement of profit and loss and other comprehensive income (in | |
| thousand EUR)10 | ||
| B. | Condensed consolidated statement of the financial position (in thousand EUR)11 | |
| C. | Condensed consolidated statement of cash flow (in thousand EUR) 12 | |
| D. | Condensed consolidated statement of changes in equity (in thousand EUR) 13 | |
| E. | Notes to the interim condensed consolidated financial statements13 | |
| IV. | Managers' statement 36 | |
| V. | Auditor's report37 |
AMIDST UNFAVORABLE GEOPOLITICAL CONDITIONS AND MACRO-ECONOMIC HEADWINDS, IMMOBEL MAINTAINED A ROBUST POSITION WITHIN THE REAL ESTATE SECTOR OVER THE FIRST HALF OF 2022.
1 Sales value or gross development value: the expected total future turnover of the respective projects
The table below provides the key consolidated figures for H1 2022 (in EUR million):
| Results | 30/06/22 | 30/06/21 | Difference |
|---|---|---|---|
| Revenues and other operating income | 130.8 | 183.8 | -28.8% |
| EBITDA2 | 16.6 | 36.7 | -54.7% |
| Net profit Group share | 9.1 | 29.9 | -69.4% |
| Net profit group share per share (EUR/share) | 0.9 | 3 | -69.5% |
| Balance sheet | 30/06/22 | 31/12/21 | Difference |
|---|---|---|---|
| Inventory3 | 1,315.2 | 1,261.9 | 4.2% |
| Equity Group share | 551.2 | 571.6 | -3.6% |
| Net debt4 | 646.5 | 593.3 | 9.0% |
| Portfolio GDV (in EUR billion)5 | 6.2 | 5.5 | 12.7% |
Revenues and Net profit group share for the half year to 30 June 2022 were EUR 130.8 million and EUR 9.1 million, a decrease of respectively 28.8% and 69.4%.
The decrease compared to the same period last year comes as no surprise, also given the fact that 2021 was Immobel's second-best year ever. The anticipated decline in revenues and earnings was due to residential permitting delays over the past few years, and the costs associated with the launch of Immobel Capital Partners as well as an operational loss for its French subsidiary. This was further impacted by the current macro-economic headwinds, characterised by high construction inflation, rising interest rates and issues with the construction material supply chain. This delayed the launch of several new projects and resulted in a softening in residential sales. Overall Immobel was able to protect its margins. While the economic uncertainty will probably continue for the foreseeable future, Immobel's office activity could contribute to an improvement of the net profit
The net debt position, GDV of the portfolio and inventory all grew proportionally following acquisitions during H1 2022.
Our strong balance sheet (debt ratio6 at 56.0%) and solid cash position of EUR 263.6 million will enable us to weather the current market conditions. In June, Immobel strengthened its balance sheet with the issuance of a EUR 125 million green bond. "The issuance of this bond will allow us to continue developing our projects with high sustainability requirements. The success of this transaction is a clear sign of continued investor interest in environmental concerns and shows the investor confidence in our company," explains Karel Breda, Chief Financial Officer.
2 EBITDA (Earnings Before Interest, Depreciation and Amortization) refers to the operating result (including share of result of associates and joint ventures, net of tax) before amortization, depreciation, and impairment of assets (as included in Administration Costs).
3 Inventory refers to Investment property, investments in joint ventures and associates, advances to joint ventures and associates, Inventories and Contract assets.
4 Net debt refers to the outstanding non-current and current financial debt offset by the cash and cash equivalents.
5 Sales value or gross development value: total expected future turnover (Group share) of a project or all projects in the current portfolio (including projects subject to conditions precedent for which the management judges there is a high likelyhood of closing).
6 Leverage refers to net debt / (net debt + equity – goodwill).
Despite the macro-economic backdrop, Immobel is well positioned in its residential and office markets.
The challenging environment was marked by declining market transactions with reduced liquidity in capital markets in the second quarter of 2022. Immobel's key projects are in European cities that are characterised by a low supply of Grade A sustainable office space with increasing rents. This remains a key driver of our business as these products remain attractive to investors and end users.
Our high-quality residential products sit mostly within the higher market segment that remains attractive in most key cities despite some softening in the wider sector.
In the first half of 2022 Immobel sold The Woods7 (10,000 m²) to a Belgian Family Office. The Woods is a modern redevelopment located in Hoeilaart (Flemish Brabant, BE).
Immobel also launched the commercialization of O'SEA phase 3 (Ostend, BE), Slachthuis (Antwerp, BE), Lalys (Astene, BE), Fort d'Aubervilier (FR) and Liewen (Mamer, LUX) during the first half of 2022. These residential developments strengthened Immobel's status as a leader in its core markets. Immobel develops high-quality buildings designed by internationally known architects to ensure that developed areas become a vibrant environment.
O'Sea is a sustainable residential complex (229 apartments) located in the Belgian sea-town of Ostend, near the seafront. Creating a new perfectly integrated urban district, the complex will offer a wide variety of made to measure living spaces from houses, apartments, serviced residences, to studios.
Slachthuis is a mixed-use residential neighborhood (240,000 m²) with space for leisure, creativity, innovation, local business, culture, and education. It is situated in a strategic district of the city of Antwerp in Belgium. The new sustainable, high-tech campus for AP University of Applied Sciences and Arts is the first of many projects that will be turning the entire area into a bustling, green city district.
Lalys will be a new, cozy village district in rural Astene in Belgium. The location is exceptional, mobility-friendly and will become a pleasant place to live. The project is geared towards young families, with all 161 homes having three bedrooms.
Fort d'Aubervilier in France, near the outskirts of Paris, will provide 413 contemporary and bright residential units which will be centered around several parks, shared gardens, school groups, sports halls, services, and spaces dedicated to culture.
Liewen is an intergenerational neighborhood in a calm and green location. On the edge of the town of Mamer in Luxembourg, the new Liewen neighborhood, spanning three hectares, is a human- and nature-centered project which offers high-quality individual and common spaces and comprises 79 new high-quality homes optimally integrated into the existing green environment.
Immobel submitted a building permit for the Lebeau project in the Brussels Sablon district in the city centre. The project aims to transform the existing vacant logistics and office complex into a 35,000 m² dynamic mixed-use building providing 24/7 uses, and where working, living and leisure all exist hand in hand. The new project design takes into account the feedback from the district with regard to renovation, heritage, building density and sustainability. Neighborhood information and co-creation will also play a significant role in the new approach for the project.
7 Through the sale of 2 SPV's holding title to the project.
Immobel also submitted the building permit to transform the PROXIMUS-TOWERS office building into a 120,000 m² future-oriented, and inclusive destination where people will live, work, study, relax, shop and play sports. The plans are in line with the new vision of the Brussels Region to transform the North Territory, including the North Quarter, into an accessible, safe, and connecting neighborhood for all its residents and users.
Following the suspension of the building permit for the redevelopment of the Brouck'R project by the Conseil d'Etat/Raad Van State, Immobel and BPI in consultation with Urban.BRUSSELS and the Secretary of State, decided to adapt the design of the project.
Permitting remains a challenge and certain projects, both in Belgium and in France, are subject to delays. To date, Immobel has obtained final permits for EUR 292 million over H1 2022.
Immobel's balance sheet is resilient, with EUR 263.6 million in cash available and a stable debt ratio of 56.0%.
To date, Immobel has closed deals in Brussels (BE) and Berlin (DE), bringing the total GDV of the portfolio to EUR 6.2 billion.
With the acquisition of the Commodore project in Evere (Brussels, BE), Immobel responds to the structural shortage of quality affordable housing in the city. Immobel is redeveloping a former peripheral office area into a pleasant and sustainable residential neighborhood with a pedestrian zone and cycle tracks in lush surroundings, creating three residential buildings with 115 apartments for about 300 families. Residents will benefit from a park with an orchard and a shared urban vegetable garden to promote biodiversity on-site. The buildings will be equipped with a rainwater recovery system, solar panels, green roofs, and a parking space for 229 bicycles to encourage soft mobility.
In Berlin Immobel finalized the acquisition of the Gutenbergstrasse project which consists of two high-rise apartment buildings with condominiums (in total about 220 apartments). An office building (5,855 m²) as well as a daycare centre and approx. 800 m² of commercial space will also be developed.
Over the first half of 2022, Immobel has taken a more prudent approach to new acquisitions. "In these very uncertain economic as well as geopolitical times, we will focus on the consolidation of our markets and on operational efficiency. Nevertheless, we are well positioned to create shareholder value, benefiting from our strong balance sheet and unique knowledge of our markets." Comments Marnix Galle, Executive Chair of Immobel Group.
Immobel has significantly strengthened its Real Estate Investment Management activity since Immobel Capital Partners was founded in January 2022. Duncan Owen has reinforced the team with the addition of Monica O'Neill (Head of Capital and Investor Relations), Maureen Mahr von Staszewski (Head of Pan European Office) and since the half year, Melinda Knatchbull (Chief Financial and Operating Officer) and Andrew MacDonald (Head of Finance and Joint Ventures). All four have extensive experience in the fund management industry. In early March Immobel Capital Partners announced its first acquisition, an office park in Leeds (UK), which aligns with its plan to create a 'Green' pan-European investment strategy in the office and residential sectors.
Over the first half of 2022, Immobel continued its efforts in the framework of its ESG strategy which resulted in various concrete actions.
With the goal to reduce the environmental footprint and to actively contribute to the vitality of the region, the Multi building, Immobel Brussels' headquarters developed together with Whitewood, is now set for a circular future thanks to Madaster's digital materials passport8 . Multi is the first renovation project in Belgium to receive a digital passport for materials in Madaster. Multi is also the first CO2-neutral office building to be commissioned in Brussels. Immobel's enhanced sustainability approach is being translated into action through various projects with the Proximus towers being one of the most recent examples.
In terms of social engagement, the devastating consequences of the war in Ukraine brought Immobel to join the global donation movement. Immobel has identified KBF ("King Baudouin Foundation") as a trusted partner to coordinate the allocation fund to support Ukraine through those four channels9 .
8 For more information : https://www.immobelgroup.com/en/news/the-materials-passport-used-for-the-first-time-in-a-major-renovation-project.
9 For more information : https://www.immobelgroup.com/en/news/immobel-joins-the-ukraine-donation-movement.
Overview of the main projects in the Immobel Group portfolio as at 30 June 2022 (in order of the project's surface area).
| Project | Surface (m²) | Location | Use | Construction | Completion | Share Immobel |
|---|---|---|---|---|---|---|
| Slachthuissite | 240,000 | Antwerp | Residential | Q2 2022 | 2030+ | 30% |
| SNCB / NMBS | 137,000 | Brussels | Mixed | Q1 2023 | 2030+ | 40% |
| Proximus | 118,000 | Brussels | Mixed | Q3 2024 | Q1 2027 | 100% |
| Cours Saint-Michel | 85,000 | Brussels | Mixed | Q3 2023 | Q3 2026 | 50% |
| Oxy | 70,000 | Brussels | Mixed | Q1 2023 | Q2 2025 | 50% |
| Key West | 61,000 | Brussels | Mixed | Q2 2023 | Q2 2029 | 50% |
| Panorama | 60,000 | Brussels | Mixed | Q3 2020 | Q2 2027 | 40% |
| Universalis Park 3 | 58,000 | Brussels | Mixed | Q4 2025 | 2030+ | 50% |
| Ciney | 47,000 | Ciney | Residential | Q4 2023 | 2030+ | 100% |
| Multi | 46,000 | Brussels | Offices | Q1 2019 | Q1 2022 | 50% |
| Theodore | 45,000 | Brussels | Mixed | Q1 2022 | Q3 2024 | 50% |
| Lebeau | 38,000 | Brussels | Mixed | Q1 2024 | Q3 2026 | 100% |
| Brouck'R | 37,000 | Brussels | Mixed | Q2 2024 | Q3 2026 | 50% |
| Isala | 34,000 | Brussels | Offices | Q3 2023 | Q3 2025 | 76% |
| Ilôt Saint-Roch | 32,000 | Nivelles | Residential | Q1 2022 | Q4 2025 | 100% |
| Lalys | 31,000 | Astene | Residential | Q3 2020 | Q1 2025 | 100% |
| Eghezée | 30,000 | Eghezée | Residential | Q1 2023 | Q4 2028 | 100% |
| 't Park | 29,000 | Tielt | Residential | Q4 2022 | Q1 2028 | 100% |
| Oostakker | 27,000 | Oostakker | Residential | Q2 2023 | Q2 2027 | 50% |
| O'Sea (phase 3) | 24,000 | Ostend | Residential | Q2 2022 | Q1 2025 | 100% |
| O'Sea (phase 2) | 24,000 | Ostend | Mixed | Q3 2019 | Q4 2022 | 100% |
| Cala | 20,000 | Liège | Offices | Q3 2018 | Q4 2020 | 30% |
| Plateau d'Erpent | 19,000 | Erpent | Residential | Q2 2018 | Q4 2022 | 50% |
| Beveren | 15,000 | Beveren | Residential | Q1 2023 | Q1 2025 | 50% |
| Commerce 46 | 14,000 | Brussels | Offices | Q2 2020 | Q4 2022 | 100% |
| Domaine du Fort | 13,000 | Barchon | Residential | Q3 2020 | Q4 2025 | 100% |
| Sabam | 9,000 | Brussels | Offices | Q3 2023 | Q3 2025 | 20% |
| Les Cinq Sapins | 9,000 | Wavre | Residential | Q1 2019 | Q1 2024 | 100% |
| Crown | 6,000 | Knokke | Residential | Q2 2020 | Q4 2022 | 50% |
| Project | Surface m² | Location | Use Construction |
Completion | Share Immobel |
|
|---|---|---|---|---|---|---|
| Rueil-Malmaison | 27,000 | Rueil-Malmaison | Mixed | Q4 2023 | Q2 2026 | 100% |
| AUBERVILLIERS ZAC DU FORT îlot A |
18,000 | Aubervilliers | Residential | Q4 2021 | Q4 2024 | 50% |
| SAVIGNY – SUR – ORGE -17/27 rue Chateaubriand |
14,000 | Savigny-sur-orge | Residential | Q4 2021 | Q4 2023 | 100% |
| AUBERVILLIERS ZAC DU FORT îlot B |
9,000 | Aubervilliers | Residential | Q4 2021 | Q2 2024 | 50% |
| Paris 14 / Montrouge | 9,000 | Paris | Offices | Q3 2025 | Q2 2027 | 100% |
| BUSSY ST GEORGES GOLF |
7,000 | Bussy saint georges | Residential | Q2 2022 | Q2 2024 | 100% |
| BESSANCOURT ZAC DES MEUNIERS - TRANCHE 2 |
7,000 | Bessancourt | Residential | Q1 2020 | Q4 2022 | 50% |
| Tati | 7,000 | Paris | Mixed | Q1 2023 | Q3 2024 | 100% |
| OSNY - 1 Rue de Cergy | 6,000 | Osny | Residential | Q3 2022 | Q3 2024 | 60% |
| LONGPONT-SUR-ORGE / Hauts Buarts |
6,000 | Longpont sur orge | Residential | Q3 2016 | Q4 2018 | 100% |
| AVON - 29 bis avenue du Général De Gaulle |
5,000 | Avon | Residential | Q3 2022 | Q3 2024 | 100% |
| BONDY CANAL | 5,000 | Bondy | Residential | Q4 2024 | Q4 2026 | 40% |
| CRETEIL T2 | 5,000 | Créteil | Residential | à définir | à définir | 50% |
| MONTEVRAIN - 144 av T de Champagne |
5,000 | Montevrain | Residential | Q3 2021 | Q3 2023 | 100% |
| PARIS 19 - Buttes Chaumont |
5,000 | Paris | Residential | Q2 2023 | Q2 2025 | 100% |
| Saint-Antoine | 5,000 | Paris | Mixed | Q3 2022 | Q2 2024 | 100% |
| Buttes Chaumont / Crimée | 5,000 | Paris | Mixed | Q4 2023 | Q4 2025 | 50% |
| Richelieu | 5,000 | Paris | Offices | n/a | n/a | 10% |
| Nanterre - 48 Boulevard de Pesaro |
4,000 | Nanterre | Residential | Q3 2024 | Q3 2026 | 100% |
| Issy les Moulineaux | 4,000 | Issy les moulineaux | Residential | Q3 2024 | Q3 2026 | 100% |
| OTHIS - La Jalaise | 4,000 | Othis | Residential | Q3 2022 | Q3 2024 | 100% |
| VAUJOURS 2 - 191/195 rue de Meaux |
4,000 | Vaujours | Residential | Q4 2022 | Q4 2024 | 100% |
| Pantin | 3,000 | Paris | Office | Q1 2023 | Q4 2024 | 100% |
| CRETEIL - ZAC de l'Echat - Phase 1 |
3,000 | Créteil | Residential | Q3 2024 | Q3 2026 | 50% |
| HOUILLES - Angle JJ Rousseau - Tivoli |
3,000 | Houilles | Residential | à définir | à définir | 50% |
| ST GERMAIN EN LAYE - 32 rue Saint Léger |
3,000 | ST Germain | Residential | Q1 2021 | Q2 2023 | 100% |
| St Honoré | 3,000 | Pars | Mixed | Q1 2023 | Q2 2024 | 10% |
| MONTLHERY 2 - Ch des Poutils / Route D'Orléans |
2,000 | Montlhery | Residential | Q1 2023 | Q1 2025 | 20% |
| Project | Surface m² | Location | Use | Construction | Completion | Share Immobel |
|---|---|---|---|---|---|---|
| Polvermillen | 27,000 | Luxembourg | Mixed | Q4 2022 | Q2 2026 | 100% |
| Kiem | 23,000 | Luxembourg | Mixed | Q2 2024 | Q1 2027 | 70% |
| Schoettermarial | 22,000 | Luxembourg | Mixed | Q1 2027 | Q2 2029 | 50% |
| Liewen | 14,000 | Mamer | Residential | Q4 2022 | Q4 2024 | 100% |
| Livingstone - Lot1 | 13,000 | Luxembourg | Mixed | Q3 2020 | Q2 2023 | 33% |
| Cat Club (Rue de Hollerich) |
12,000 | Luxembourg | Mixed | Q3 2024 | Q3 2027 | 100% |
| Total (Gasperich) | 10,000 | Luxembourg | Mixed | Q1 2025 | Q2 2027 | 100% |
| River Place | 8,000 | Luxembourg | Mixed | Q4 2023 | Q4 2025 | 100% |
| Godbrange | 7,000 | Godbrange | Residential | Q4 2024 | Q4 2026 | 100% |
| Canal 44 | 6,000 | Esch-sur-Alzette | Mixed | Q2 2021 | Q1 2025 | 100% |
| Thomas | 6,000 | Strassen | Offices | Q3 2027 | Q1 2029 | 100% |
| Nova | 4,000 | Luxembourg | Offices | Q1 2021 | Q2 2023 | 100% |
| Scorpio | 4,000 | Luxembourg | Offices | Q2 2025 | Q2 2027 | 20% |
| Project | Surface m² | Location | Use | Construction | Completion | Share Immobel |
|---|---|---|---|---|---|---|
| Granary Island | 76,000 | Gdansk | Mixed | Phase 1: Q1 2017 Phase 2: Q4 2020 |
Phase 1: Q4 2019 Phase 2: Q2 2024 |
90% |
| Central Point | 28,000 | Warsaw | Offices | Q2 2018 | Q3 2021 | 50% |
| Project | Surface m² | Location | Use | Construction | Completion | Share Immobel |
|---|---|---|---|---|---|---|
| Eden | 20,000 | Frankfurt | Residential | Q3 2019 | Q4 2022 | 90% |
| Project | Surface m² | Location | Use | Construction | Completion | Share Immobel |
|---|---|---|---|---|---|---|
| Four Seasons Marbella Resort | 73,000 | Marbella | Leisure | Q3 2023 | Q3 2028 | 50% |
| NOTES | 30/06/2022 | 30/06/2021 | |
|---|---|---|---|
| OPERATING INCOME | 130 795 | 183 769 | |
| Revenues | 7 | 124 614 | 178 447 |
| Rental income | 8 | 3 417 | 3 653 |
| Other operating income | 9 | 2 763 | 1 669 |
| OPERATING EXPENSES | -117 745 | -153 080 | |
| Cost of sales | 10 | -103 637 | -141 723 |
| Cost of commercialisation | 11 | - 184 | - 237 |
| Administration costs | 12 | -13 924 | -11 121 |
| OPERATING PROFIT | 13 050 | 30 689 | |
| SALE OF SUBSIDIARIES | 2 | ||
| Gain (loss) on sales of subsidiaries | 2 | ||
| JOINT VENTURES AND ASSOCIATES | 1 212 | 3 271 | |
| Share of result of joint ventures and associates, net of tax | 13 | 1 212 | 3 271 |
| OPERATING PROFIT AND SHARE OF RESULT OF ASSOCIATES AND JOINT VENTURES, NET OF TAX |
14 262 | 33 963 | |
| Interest income | 2 187 | 2 313 | |
| Interest expense | -3 644 | -2 590 | |
| Other financial income | 116 | 666 | |
| Other financial expenses | -2 729 | -3 184 | |
| NET FINANCIAL COSTS | 14 | -4 070 | -2 796 |
| PROFIT FROM OPERATIONS BEFORE TAXES | 10 192 | 31 167 | |
| Income taxes | 15 | -1 293 | - 693 |
| PROFIT OF THE PERIOD | 8 899 | 30 474 | |
| Share of non-controlling interests | - 240 | 561 | |
| SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 9 139 | 29 912 | |
| PROFIT FOR THE PERIOD | 8 899 | 30 474 | |
| Other comprehensive income - items that are or may be reclassified subsequently to profit or loss | 1 690 | - 183 | |
| Currency translation | - 204 | - 183 | |
| Cash flow hedging | 1 894 | ||
| TOTAL OTHER COMPREHENSIVE INCOME | 1 690 | - 183 | |
| COMPREHENSIVE INCOME OF THE PERIOD | 10 589 | 30 291 | |
| Share of non-controlling interests | 102 | 561 | |
| SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 10 487 | 29 729 | |
| EARNINGS PER SHARE (€) (BASIC/DILUTED) | 0,92 | 3,00 |
| ASSETS | NOTES | 30/06/2022 | 31/12/2021 |
|---|---|---|---|
| NON-CURRENT ASSETS | 499 821 | 506 259 | |
| Intangible assets | 204 | 246 | |
| Goodwill | 17 | 43 789 | 43 789 |
| Property, plant and equipment | 5 176 | 2 793 | |
| Right-of-use assets | 18 | 10 037 | 3 772 |
| Investment property | 19 | 172 553 | 173 999 |
| Investments in joint ventures and associates | 20 | 137 296 | 156 532 |
| Other investments | 0 | 1 015 | |
| Advances to joint ventures and associates | 106 111 | 101 670 | |
| Deferred tax assets | 21 | 23 649 | 21 292 |
| Cash guarantees and deposits | 1 006 | 1 151 | |
| CURRENT ASSETS | 1 258 337 | 1 178 890 | |
| Inventories | 22 | 743 268 | 698 623 |
| Trade receivables | 23 | 37 224 | 38 116 |
| Contract assets | 24 | 140 071 | 117 953 |
| Income Tax receivables | 1 297 | 1 369 | |
| Prepayments and other receivables | 25 | 54 996 | 36 240 |
| Advances to joint ventures and associates | 15 910 | 13 163 | |
| Other current financial assets | 1 992 | 49 | |
| Cash and cash equivalents | 26 | 263 580 | 273 377 |
| TOTAL ASSETS | 1 758 158 | 1 685 149 |
| EQUITY AND LIABILITIES | NOTES | 30/06/2022 | 31/12/2021 |
|---|---|---|---|
| TOTAL EQUITY | 563 137 | 582 919 | |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 551 154 | 571 567 | |
| Share capital | 97 257 | 97 257 | |
| Retained earnings | 452 720 | 472 629 | |
| Reserves | 1 178 | 1 681 | |
| NON-CONTROLLING INTERESTS | 11 982 | 11 352 | |
| NON-CURRENT LIABILITIES | 759 325 | 535 104 | |
| Employee benefit obligations | 1 003 | 996 | |
| Deferred tax liabilities | 21 | 27 926 | 26 352 |
| Financial debts | 26 | 730 397 | 507 596 |
| Derivative financial instruments | 26 | 0 | 160 |
| CURRENT LIABILITIES | 435 696 | 567 126 | |
| Provisions | 2 905 | 2 328 | |
| Financial debts | 26 | 179 729 | 359 094 |
| Trade payables | 27 | 129 413 | 83 546 |
| Contract liabilities | 28 | 13 823 | 21 969 |
| Income Tax liabilities | 13 435 | 13 770 | |
| Social debts, VAT and other tax payables | 17 780 | 16 430 | |
| Accrued charges and other amount payable | 35 111 | 31 165 | |
| Advances from joint venture and associates | 43 500 | 38 824 | |
| TOTAL EQUITY AND LIABILITIES | 1 758 158 | 1 685 149 |
| NOTES | 30/06/2022 | 30/06/2021 (represented *) |
|
|---|---|---|---|
| Operating income | 130 795 | 183 769 | |
| Operating expenses | -117 745 | -153 080 | |
| Amortisation, depreciation and impairment of assets | 12 | 2 371 | 2 726 |
| Change in provisions | 567 | - 527 | |
| CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL | 15 988 | 32 888 | |
| Change in working capital | 29 | -29 858 | -15 074 |
| CASH FLOW FROM OPERATIONS BEFORE PAID TAXES | -13 870 | 17 814 | |
| Paid taxes | -2 332 | -1 218 | |
| CASH FROM OPERATING ACTIVITIES | -16 202 | 16 596 | |
| Acquisitions of intangible, tangible and other investments | -3 034 | -3 626 | |
| Sale of intangible, tangible and other investments | 27 | - 47 | |
| Repayment of capital and advances by joint ventures | 105 685 | 13 850 | |
| Acquisitions, capital injections and loans to joint ventures and associates | 20 | -144 596 | -32 696 |
| Dividends received from joint ventures and associates | 20 | 45 501 | 3 896 |
| Interests received | 2 187 | 2 313 | |
| Disposal of subsidiaries | 2 | ||
| CASH FROM INVESTING ACTIVITIES | 5 770 | -16 308 | |
| Proceeds from financial debts | 26 | 234 217 | 78 374 |
| Repayment of financial debts | 26 | -195 180 | -57 765 |
| Paid interests | -8 061 | -8 490 | |
| Other financing cash flows | -2 518 | ||
| Sale of treasury shares | 68 | 16 416 | |
| Gross dividends paid | -30 409 | -28 417 | |
| CASH FROM FINANCING ACTIVITIES | 635 | -2 400 | |
| NET INCREASE OR DECREASE (-) IN CASH AND CASH EQUIVALENTS | -9 797 | -2 112 | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD | 273 377 | 148 059 | |
| CASH AND CASH EQUIVALENTS AT THE END OF PERIOD | 263 580 | 145 947 |
(*) Interest received has been transferred from the section "Cash from Operating activities" to "Cash from investment activities". Paid interest and other financing cash flow has been transferred from the section "Cash from Operating activities" to "Cash from financing activities".
| CAPITAL | RETAINED EARNINGS |
ACQUISITION RESERVE |
TREASURY SHARES RESERVE |
CURRENCY TRANSLATION RESERVE |
ACCUMULATED ACTUARIAL GAINS AND LOSSES |
HEDGING RESERVES |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY |
NON CONTROL LING INTERESTS |
TOTAL EQUITY | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | ||||||||||
| Balance as at 01-01-2022 | 97 256 | 349 109 | 124 869 | -1 204 | 1 326 | 434 | - 223 | 571 567 | 11 352 | 582 919 |
| Result for the period | 9 139 | 9 139 | - 240 | 8 899 | ||||||
| Other comprehensive income | - 204 | - 299 | 1 851 | 1 348 | 342 | 1 690 | ||||
| Comprehensive income for the period | 8 935 | - 299 | 1 851 | 10 487 | 102 | 10 589 | ||||
| Transactions on treasury shares | - 73 | 68 | - 5 | - 5 | ||||||
| Dividends and other beneficiaries paid | -30 409 | -30 409 | -30 409 | |||||||
| Scope changes | - 457 | - 457 | 528 | 71 | ||||||
| Other changes | - 27 | - 1 | - 28 | - 28 | ||||||
| Transactions with owners of the company | -30 966 | 67 | -30 899 | 528 | -30 371 | |||||
| Changes in the period | -22 031 | 67 | - 299 | 1 851 | -20 412 | 630 | -19 782 | |||
| Balance as at 30-06-2022 | 97 256 | 327 078 | 124 869 | -1 137 | 1 027 | 434 | 1 628 | 551 155 | 11 982 | 563 137 |
| CAPITAL | RETAINED EARNINGS |
ACQUISITION RESERVE |
TREASURY SHARES RESERVE |
CURRENCY TRANSLATION RESERVE |
ACCUMULATED ACTUARIAL GAINS AND LOSSES |
HEDGING RESERVES |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY |
NON CONTROL LING INTERESTS |
TOTAL EQUITY | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | ||||||||||
| Balance as at 01-01-2021 | 97 256 | 280 997 | 124 869 | -13 164 | 2 147 | 377 | - 560 | 491 922 | 2 568 | 494 490 |
| Result for the period | 29 912 | 29 912 | 561 | 30 474 | ||||||
| Other comprehensive income | - 183 | 63 | - 120 | - 120 | ||||||
| Comprehensive income for the period | 29 912 | - 183 | 63 | 29 792 | 561 | 30 354 | ||||
| Transactions on treasury shares | 4 545 | 11 871 | 16 416 | 16 416 | ||||||
| Dividends and other beneficiaries paid | -27 942 | -27 942 | - 477 | -28 419 | ||||||
| Scope changes | - 92 | - 92 | ||||||||
| Other changes | - 113 | 89 | 46 | 22 | 22 | |||||
| Transactions with owners of the company | -23 510 | 11 960 | 46 | -11 504 | - 569 | -12 073 | ||||
| Changes in the period | 6 402 | 11 960 | - 183 | 109 | 18 288 | - 8 | 18 281 | |||
| Balance as at 30-06-2021 | 97 256 | 287 399 | 124 869 | -1 204 | 1 964 | 377 | - 451 | 510 210 | 2 560 | 512 771 |
As approved by the General Meeting of 21 April 2022 a gross dividend of EUR 30 409 thousand (or EUR 3.05 per share excluding treasury shares) has been paid out to the shareholders. The share capital of Immobel SA is represented by 9 997 356 ordinary shares, including 25 434 treasury shares.
As at 30 June, 2022, 1 531 treasury shares have been sold during the current year, resulting in a decrease of EUR 68 thousand in the reserve for treasury shares.
In accordance with IAS 32, the reserve for own shares is presented by deducting the equity. These own shares have neither voting rights nor dividend rights. On 30 June 2022 the treasury shares, resulting from the merger with ALLFIN, were still valued at the share price on 29 June 2016, which was the date of the merger.
The currency translation adjustments are related to Polish and British entities for which the operating currencies are respectively in zloty and in pound sterling.
The changes in scope are mainly the result of the impact of a variation in the ownership percentage on several entities, without a change in control.
Immobel ("the Company") is incorporated in Belgium and its shares are publicly traded (Euronext – IMMO). The interim condensed consolidated financial statements of the Group comprise the Company, its subsidiaries, and the Group's interest in associates and joint arrangements (referred to as "The Group"). The Group is active in the real estate development business, with activities in Belgium, France, Luxemburg, Germany, Poland, Spain and the United Kingdom.
The interim condensed consolidated financial statements as at and for the six months ending 30 June 2022 have been prepared in accordance with accounting standard IAS 34, Interim Financial Reporting, as adopted in the European Union. They should be read in conjunction with the Group's latest annual consolidated financial statements as at and for the year ending 31 December 2021 ('latest annual financial statements'). They do not include all the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are important for understanding the changes in the Group's financial position and performance since the last annual financial statements.
These interim financial statements were authorised for issue by the Company's Board of Directors on 8 September 2022.
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ending 31 December 2021.
The following new standards or amendments to the IFRS are effective as from 1 January 2022 but are either immaterial or do not have a material impact on the Group's financial statements for the first half of 2022.
A number of new standards, amendments to standards and interpretations are not yet effective for annual periods ending 31 December 2022, and have not been applied in preparing these condensed interim consolidated financial statements:
The process of determining the potential impacts of these standards and interpretations on the consolidated financial statements of the Group is ongoing. The group does not expect any significant changes resulting from the application of these standards.
In February 2022, a number of countries (including the US, the UK and the EU) imposed sanctions against certain entities and individuals in Russia as a result of the official recognition of the Donetsk People's Republic and Lugansk People's Republic by the Russian Federation. Announcements of potential additional sanctions have been made following military operations initiated by Russia against the Ukraine on 24 February 2022. The situation, together with growing turmoil from fluctuations in commodity prices and interest rates, and the potential to impact global economies adversely, has driven a sharp increase in volatility across markets. Although there has been a moderate impact on the Group's performance, no significant impact on its ability to continue as a going concern or its operations is expected. The Board of Directors continues to monitor the evolving situation and its impact on the financial position of the Group.
Alongside the war in Ukraine, the inflation and the increase in the price of raw materials are currently having a moderate impact on the activity of the company and the sector as a whole.
In accordance with the provisions of IAS 36, the Group did not identify evidence or triggering events that would require goodwill impairment testing. Note that the goodwill that has arisen from the acquisition of Nafilyan & Partners is expected to be assessed for impairment by end of the year.
With regard to the inventories (projects to be developed), the assumptions used to assess the net realisable value of the projects under development have been consistently reviewed and updated based on the most recent market data (with respect to residential projects: expected sales prices and construction costs and with respect to the office project: expected exit yields, expected rental levels and construction costs). No write-downs have been identified as at 30 June 2022 as the respective net realisable value is higher than the cost assessed for each of the projects.
As at the end of June 2022, the company had an adequate level of liquidity available with a cash position of EUR 263 million, EUR 30 million of available corporate credit lines, EUR 27 million of non-issued Commercial Papers and EUR 134 million of undrawn project finance lines. Furthermore, the company continues to experience a supportive market environment for issuing new corporate and project financing facilities to finance new or existing projects.
Trends in interest rate and exchange rate markets have been reviewed and the associated information has been updated based on data available on 30 June 2022 – see note 26.
Immobel's deferred tax asset positions were reviewed in order to make sure they can be recovered through future taxable income. The Group also monitored changes to legislation, revisions to tax rates and other tax measures taken.
The main accounting judgements and estimates as at 30 June 2022 are identical to those given on pages 172 and 173 (Consolidated Accounts) of the Annual Report 2021. They mainly concern goodwill, investment properties, deferred tax assets and inventories. Each of these items is addressed in this report under notes 17, 19, 21 and 22 respectively.
The Immobel Group faces the risks and uncertainties inherent in the property development sector as well as those associated with the general economic and financial climate.
The Board of Directors believes that the main risks and uncertainties included on page 102 and following (Management Report) of the Annual Report 2021 and pages 172-173 are still relevant for the remaining months of 2022.
| The number of entities included in the scope of consolidation evolves as follows: | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Subsidiaries - Integral consolidation | 153 | 138 |
| Joint Ventures - Equity method | 59 | 55 |
| Associates - Equity method | 10 | 9 |
| TOTAL | 222 | 202 |
The following changes have been noted during the first half of 2022:
Entries within the scope of consolidation:
Avon, 100% owned
Issy-Les-Moulineaux 2, 100% owned
Exit from the scope of consolidation:
The segment reporting is presented based on the operational segments used by the Board of Directors to monitor the financial performance of the Group, being the geographical segments (by country). The choice made by the Board of Directors to focus on geographical segment rather than on other possible operating segments is motivated by local market characteristics (customers, product, regulation, culture, local network, political environment, etc.) as being the key business drivers.
The core business of the Group, real estate development, is carried out in Belgium, Luxemburg, France, Germany, Poland, Spain and the United Kingdom.
The breakdown of sales by country depends on the country where the activity is carried out.
The results and asset and liability items of the segments include items that can be attributed to a segment, either directly, or allocated through an allocation formula.
In accordance with the IFRS, the Company has been applying IFRS 11 since 1 January 2014, which substantially amends the reading of the Company's financial statements, but does not change the net income and shareholders' equity. However, the Board of Directors believes that the financial data in application of the proportional consolidated method (before IFRS 11) gives a better picture of the activities and financial statements. Therefore, the information reported to the Board of Directors and presented below includes the Group's interest in associates and joint ventures based on the proportionate consolidation method.
| INCOME STATEMENT | EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|---|
| OPERATING INCOME | 154 262 | 216 064 | |
| Revenues | 142 644 | 207 076 | |
| Rental income | 6 266 | 6 490 | |
| Other operating income | 5 352 | 2 498 | |
| OPERATING EXPENSES | -137 702 | -178 676 | |
| Cost of sales | -120 827 | -165 829 | |
| Cost of commercialisation | - 184 | - 378 | |
| Administration costs | -16 691 | -12 469 | |
| OPERATING PROFIT | 16 560 | 37 388 | |
| SALE OF SUBSIDIARIES | 2 | ||
| Gain (loss) on sales of subsidiaries | 2 | ||
| JOINT VENTURES AND ASSOCIATES | - 2 | 29 | |
| Share of result of joint ventures and associates, net of tax | - 2 | 29 | |
| OPERATING PROFIT AND SHARE OF RESULT OF ASSOCIATES AND JOINT VENTURES, NET OF TAX | 16 558 | 37 419 | |
| Interest income | 1 568 | 1 900 | |
| Interest expense | -4 833 | -4 888 | |
| Other financial income / expenses | -2 609 | -1 707 | |
| NET FINANCIAL COSTS | -5 874 | -4 695 | |
| PROFIT FROM OPERATIONS BEFORE TAXES | 10 684 | 32 724 | |
| Income taxes | -1 777 | -2 987 | |
| PROFIT OF THE PERIOD | 8 907 | 29 737 | |
| Share of non-controlling interests | - 232 | - 175 | |
| SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 9 139 | 29 912 |
| EUR ('000) | REVENUES | OPERATING RESULT |
REVENUES | OPERATING RESULT |
|---|---|---|---|---|
| 30/06/2022 | 30/06/2022 | 30/06/2021 | 30/06/2021 | |
| Belgium | 78 781 | 21 263 | 121 833 | 32 204 |
| Luxembourg | 16 661 | 2 062 | 14 559 | 4 179 |
| France | 32 344 | -2 214 | 42 688 | -2 950 |
| Germany | 14 350 | - 943 | 27 303 | 4 141 |
| Poland | 508 | - 761 | 693 | - 25 |
| Spain | - 62 | - 129 | ||
| United Kingdom | -2 787 | |||
| TOTAL CONSOLIDATED | 142 644 | 16 558 | 207 076 | 37 419 |
| STATEMENT OF FINANCIAL POSITION | EUR ('000) | 30/06/2022 | 31/12/2021 (represented*) |
|---|---|---|---|
| NON-CURRENT ASSETS | 459 817 | 428 873 | |
| Intangible and tangible assets | 5 380 | 3 102 | |
| Goodwill | 43 789 | 43 789 | |
| Right-of-use assets | 10 037 | 3 772 | |
| Investment property | 295 296 | 274 666 | |
| Investments and advances to joint ventures and associates | 65 085 | 63 555 | |
| Deferred tax assets | 28 616 | 25 656 | |
| Other non-current assets | 11 614 | 14 334 | |
| CURRENT ASSETS | 1 674 316 | 1 617 739 | |
| Inventories | 1 056 661 | 997 103 | |
| Trade receivables | 41 088 | 44 632 | |
| Contract assets | 162 247 | 138 985 | |
| Tax receivables and other current assets | 103 418 | 58 445 | |
| Advances to joint ventures and associates | 12 290 | 9 660 | |
| Cash and cash equivalents | 298 612 | 368 914 | |
| TOTAL ASSETS | 2 134 133 | 2 046 612 | |
| TOTAL EQUITY | EUR ('000) | 563 024 | 582 798 |
| NON-CURRENT LIABILITIES | 895 314 | 681 902 | |
| Financial debts | 863 531 | 651 775 | |
| Deferred tax liabilities | 30 780 | 28 972 | |
| Other non-current liabilities | 1 003 | 1 155 | |
| CURRENT LIABILITIES | 675 795 | 781 911 | |
| Financial debts | 290 573 | 453 077 | |
| Trade payables | 151 877 | 98 943 | |
| Contract liabilities | 26 990 | 32 876 | |
| Tax payables and other current liabilities | 182 520 | 175 243 | |
| Advances from joint venture and associates | 23 835 | 21 772 | |
| TOTAL EQUITY AND LIABILITIES | 2 134 133 | 2 046 612 |
(*) Some reclassifications without any impact on equity have been made in the presentation of the balance sheet as at 31 December 2021. It concerns the following captions: inventories (- EUR 20 872 thousand), deferred tax liabilities (- EUR 5 218 thousand) and tax payables and other current liabilities (- EUR 15 654 thousand).
| FINANCIAL POSITION ITEMS | EUR ('000) NON-CURRENT SEGMENT ASSETS |
CURRENT SEGMENT ASSETS |
UNALLOCATED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|---|
| Belgium | 212 203 | 998 064 | 1 210 267 | |
| Luxembourg | 30 138 | 226 106 | 256 244 | |
| France | 90 580 | 148 158 | 238 738 | |
| Germany | 7 845 | 7 845 | ||
| Poland | 40 | 38 138 | 38 178 | |
| Spain | 533 | 19 553 | 20 086 | |
| United Kingdom | 23 792 | 61 | 23 853 | |
| Unallocated items1 | 338 922 | 338 922 | ||
| TOTAL ASSETS | 357 286 | 1 437 925 | 338 922 | 2 134 133 |
| FINANCIAL POSITION ITEMS | EUR ('000) | SEGMENT LIABILITIES |
UNALLOCATED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|---|
| Belgium | 1 127 099 | 1 127 099 | ||
| Luxembourg | 134 734 | 134 734 | ||
| France | 171 550 | 171 550 | ||
| Germany | 12 949 | 12 949 | ||
| Poland | 64 298 | 64 298 | ||
| Spain | 6 777 | 6 777 | ||
| United Kingdom | 2 753 | 2 753 | ||
| Unallocated items1 | 50 949 | 50 949 | ||
| TOTAL LIABILITIES | 1 520 160 | 50 949 | 1 571 109 |
As at 31 December 2021 (represented*):
| FINANCIAL POSITION ITEMS | EUR ('000) | NON-CURRENT SEGMENT ASSETS |
CURRENT SEGMENT ASSETS |
UNALLOCATED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|---|---|
| Belgium | 207 677 | 1 029 503 | 1 237 180 | ||
| Luxembourg | 27 345 | 191 206 | 218 551 | ||
| France | 91 302 | 38 370 | 129 672 | ||
| Germany | 1 | 21 715 | 21 716 | ||
| Poland | - 11 | 26 234 | 26 223 | ||
| Spain | 5 | 2 880 | 2 885 | ||
| United Kingdom | |||||
| Unallocated items1 | 410 385 | 410 385 | |||
| TOTAL ASSETS | 326 319 | 1 309 908 | 410 385 | 2 046 612 |
| FINANCIAL POSITION ITEMS | EUR ('000) | SEGMENT LIABILITIES |
UNALLOCATED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|---|
| Belgium | 1 087 218 | 1 087 218 | ||
| Luxembourg | 130 033 | 130 033 | ||
| France | 123 693 | 123 693 | ||
| Germany | 18 476 | 18 476 | ||
| Poland | 46 773 | 46 773 | ||
| Spain | 7 754 | 7 754 | ||
| Unallocated items1 | 49 866 | 49 866 | ||
| TOTAL LIABILITIES | 1 413 947 | 49 866 | 1 463 813 |
(1) Unallocated items: Assets: Deferred tax assets - Other non-current financial assets - Other non-current assets - Tax receivables - Other current financial assets - Cash and equivalents - Liabilities: Provisions - Deferred tax liabilities - Financial debts - Tax liabilities - Derivative financial instruments.
To have a view on the size of the portfolio of projects in development by geographical segment, both inventories and investment properties should be taken into consideration, since the latter contain leased out property acquired with a view to being redeveloped.
| INVENTORIES AND INVESTMENT PROPERTY | EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|---|
| (represented*) | |||
| Belgium | 757 585 | 732 672 | |
| Luxembourg | 176 492 | 171 429 | |
| France | 239 674 | 223 811 | |
| Germany | 57 342 | 59 033 | |
| Poland | 81 578 | 70 435 | |
| Spain | 16 047 | 14 389 | |
| United Kingdom | 23 239 | ||
| TOTAL INVENTORIES AND INVESTMENT PROPERTY | 1 351 957 | 1 271 769 | |
| INVENTORIES AND INVESTMENT PROPERTY | 31/12/2021 | ||
| EUR ('000) | 30/06/2022 | (represented*) | |
| Offices | 668 930 | 632 508 | |
| Residential | 610 043 | 572 563 | |
| Landbanking | 72 984 | 66 698 | |
| TOTAL INVENTORIES AND INVESTMENT PROPERTY | 1 351 957 | 1 271 769 |
The main movements in inventories and investment property are driven by the acquisition of new projects (mainly Héros in Brussels), the exit of an office project (The Woods in Brussels) and the ongoing development of all projects in the portfolio (with main movements coming from Granaria in Poland, Eden in Germany and Rueil Malmaison in France).
(*) As previously mentioned, some reclassifications without any impact on equity have been made in the presentation of the balance sheet as at 31 December 2021, which includes a reclassification impacting the inventories (- EUR 20 872 thousand), and more specifically the inventories for residential projects in Spain.
| EUR ('000) | 30/06/2022 | ||||
|---|---|---|---|---|---|
| Operating | Adjustments | Published | |||
| Segment | Information | ||||
| Revenues | 142 644 | -18 030 | 124 614 | ||
| Operating result | 16 558 | -2 296 | 14 262 | ||
| Total balance sheet | 2 134 133 | -375 975 | 1 758 158 |
For segment information, joint ventures are consolidated using the proportional method. The adjustments arise from the application of IFRS 11, resulting in the consolidation of joint ventures using the equity method.
The Group generates its revenues through commercial contracts for the transfer of goods and services in the following main revenue categories:
| Cross-analysis by type of project and by geographical zone - EUR (000) | Offices | Residential | Landbanking | 30/06/2022 |
|---|---|---|---|---|
| Belgium | 40 106 | 29 578 | 2 393 | 72 077 |
| Luxembourg | 1 004 | 11 840 | 12 844 | |
| France | 10 | 24 921 | 24 931 | |
| Germany | 14 350 | 14 350 | ||
| Poland | 412 | 412 | ||
| Total | 41 120 | 81 101 | 2 393 | 124 614 |
| Cross-analysis by type of project and by geographical zone - EUR (000) | Offices | Residential | Landbanking | 30/06/2021 |
| Belgium | 63 514 | 34 673 | 9 794 | 107 981 |
| Luxembourg | 2 696 | 2 809 | 5 506 | |
| France | 767 | 36 063 | 36 830 | |
| Germany | 27 303 | 27 303 | ||
| Poland | 135 | 693 | 827 | |
| Total | 67 112 | 101 541 | 9 794 | 178 447 |
Revenues for Belgium are mainly driven by Commerce 46 and The Woods for Offices and O'Sea, Lalys and St Roch for Residential, for Luxembourg by Canal, for France by Savigny-sur-Orge and Bussy St Georges and for Germany by Eden Tower Frankfurt. Revenues from residential projects are lower mainly due to fewer projects in sales as a result of the lower permitting activity over recent years.
Revenues on commercial contracts are recognised when the customer obtains control of the goods or services sold for an amount that reflects what the entity expects to receive for those goods and services.
Residential units are invoiced over time, based on predefined milestones.
Payment terms for office sales are negotiated and stipulated in the individual contracts.
Landbanking sales are due at the time the notarial deed is issued.
The contractual analysis of the Group's sales contracts resulted in the application of the following recognition principles:
Revenues from office sale contracts are recognised after analysis on a case-by-case basis of the performance obligations stipulated in the contract. The revenue allocated to each performance obligation is recognised:
For "Residential" projects, revenues are recognised according to the contractual and legal provisions in force in each country for governing the transfer of control of the projects sold in the future state of completion.
Revenues are recorded when the asset is transferred.
The breakdown of sales according to these different principles of recognition is as follows:
| Point in time | Over time | 30/06/2022 | ||
|---|---|---|---|---|
| OFFICES | 18 584 | 22 536 | 41 120 | |
| RESIDENTIAL | 412 | 80 689 | 81 101 | |
| Residential unit per project - Breyne Act or equivalent | 80 689 | 80 689 | ||
| Residential unit per project - Other | 412 | 412 | ||
| Other project | ||||
| LANDBANKING | 2 393 | 2 393 | ||
| TOTAL REVENUE | 21 389 | 103 225 | 124 614 | |
| EUR ('000) | Timing of revenue recognition | |||
| Point in time | Over time | 30/06/2021 | ||
| OFFICES | 2 482 | 64 630 | 67 112 | |
| RESIDENTIAL | 693 | 100 848 | 101 541 | |
| Residential unit per project - Breyne Act or equivalent | 100 848 | 100 848 | ||
| Residential unit per project - Other | 693 | 693 | ||
| Other project | ||||
| LANDBANKING | 9 794 | 9 794 | ||
| TOTAL REVENUE | 12 969 | 165 478 | 178 447 |
With respect to offices, Commerce 46 is recognised over time as the Board of Directors believes the "alternative use" criterium for this sale has been met, while the sale of The Woods has been recognised at a certain point in time as the project had already been provisionally accepted at the time of the sale.
Break down is allocated as follows by geographical segment:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Belgium | 2 592 | 2 356 |
| Luxembourg | 825 | 1 297 |
| TOTAL RENTAL INCOME | 3 417 | 3 653 |
The main contributors are the projects Infinito in Belgium and Thomas in Luxembourg.
Break-down as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Other income (recoveries of taxes and withholdings, miscellaneous reinvoicing…) | 2 763 | 540 |
| TOTAL OTHER OPERATING INCOME | 2 763 | 540 |
The increase observed compared to the previous financial year is mainly driven by recharging fit-out works related to new offices as well as external advisory fees related to Immobel Belux Office Development Fund.
Cost of sales is allocated as follows by geographical segment:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Belgium | -53 792 | -77 978 |
| Luxembourg | -12 155 | -4 778 |
| France | -21 974 | -35 501 |
| Germany | -15 162 | -5 234 |
| Poland | - 554 | -20 140 |
| Spain | - 27 | |
| TOTAL COST OF SALES | -103 637 | -141 723 |
Cost of sales is driven by the same drivers as revenues (see note 7).
Cost of commercialization is allocated as follows by geographical segment:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Belgium | - 184 | - 268 |
| France | 31 | |
| TOTAL COST OF COMMERCIALISATION | - 184 | - 237 |
Break-down as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Personnel expenses | -4 546 | -4 380 |
| Amortisation, depreciation and impairment of assets | -2 371 | -2 726 |
| Other operating expenses | -7 007 | -4 014 |
| TOTAL ADMINISTRATION COSTS | -13 924 | -11 121 |
Personnel expenses:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Salaries and fees of personnel and members of the Exectuive Committee | -7 069 | -6 327 |
| Project monitoring costs capitalized under "inventories" | 5 756 | 4 526 |
| Salaries of the non-executive Directors | - 537 | - 595 |
| Social security charges | -1 703 | -1 806 |
| Pension costs | - 30 | - 69 |
| Other | - 963 | - 109 |
| TOTAL PERSONNEL EXPENSES | -4 546 | -4 380 |
Amortisation, depreciation and impairment of assets:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Amortisation of intangible and tangible assets, and of investment property | -2 223 | -2 726 |
| Write down on trade receivables | - 148 | |
| TOTAL AMORTISATION, DEPRECIATION AND IMPAIRMENT OF ASSETS | -2 371 | -2 726 |
Other operating expenses:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Services and other goods | -6 237 | -4 509 |
| Other operating expenses | - 203 | - 315 |
| Provisions | - 567 | 809 |
| TOTAL OTHER OPERATING EXPENSES | -7 007 | -4 014 |
Main components of services and other goods:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Service charges of the registered offices ¹ | - 796 | - 250 |
| Third party payment, including in particular the fees paid to third parties and related to the turnover | -4 577 | -2 555 |
| Other services and other goods, including company supplies, advertising, maintenance and repair expense of properties available for sale awaiting for development |
- 864 | -1 704 |
| TOTAL SERVICES AND OTHER GOODS | -6 237 | -4 509 |
In general, Administration Costs have increased as a result of Immobel Capital Partners' activities being launched in London.
The share in the net result of joint ventures and associates' breakdown is as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Operating result | 3 500 | 6 658 |
| Financial result | -1 804 | -1 953 |
| Income taxes | - 484 | -1 434 |
| RESULT OF THE PERIOD | 1 212 | 3 271 |
The decrease in the share of the result of joint ventures and associates is mainly driven by the lower result from project Livingstone in Luxembourg.
Further information relating to joint ventures and associates is provided in note 20.
The financial result breaks down as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Interest expense under the effective interest method | -8 061 | -8 490 |
| Capitalised interests on projects in development | 4 513 | 5 899 |
| Interest income | 2 187 | 2 313 |
| Other financial income and expenses | -2 709 | -2 518 |
| FINANCIAL RESULT | -4 070 | -2 796 |
The decrease in the financial result is mainly due to lower capitalisation of interest as a result of the revenue recognition of The Woods and Commerce 46.
Income tax is as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Current income taxes for the current year | -2 405 | -3 370 |
| Current income taxes for the previous financial years | 336 | 904 |
| Deferred taxes on temporary differences | 776 | 1 773 |
| TOTAL OF TAX EXPENSES RECOGNIZED IN THE STATEMENT OF COMPREHENSIVE INCOME | -1 293 | - 693 |
| Current taxes | -2 069 | -2 466 |
| Change in tax receivables / tax payables | - 263 | 1 248 |
| PAID INCOME TAXES ( STATEMENT OF CASH FLOW) | -2 332 | -1 218 |
Recognised tax expenses are higher, mainly driven by the lower recognition of deferred tax assets partially offset by a lower net result for the period.
The basic result per share is obtained by dividing the year's result (net result and comprehensive income) by the average number of shares. Computing the average number of shares is defined by IAS 33.
Basic earnings per share are determined using the following information:
| 30/06/2022 | 30/06/2021 | |
|---|---|---|
| Net result of the period attributable to owners of the company | 9 139 | 29 912 |
| Comprehensive income of the period | 10 487 | 29 729 |
| Weighted average share outstanding | ||
| Ordinary shares as at 1 January | 9 997 356 | 9 997 356 |
| Treasury shares as at 1 January | - 26 965 | - 292 527 |
| Treasury shares granted to a member of the executive committee | ||
| Treasury shares disposed | 1 531 | 265 562 |
| Ordinary shares as at 30 June | 9 971 922 | 9 970 391 |
| Weighted average ordinary shares outstanding | 9 970 986 | 9 961 154 |
| Net result per share | 0,917 | 3,003 |
Goodwill has arisen from the acquisition in 2019 of Nafilyan & Partners, an unlisted company based in France that specialises in real estate development.
The acquisition provided Immobel with 100% of the voting shares and control over Nafilyan & Partners. The acquisition qualified as a business combination as defined in IFRS 3. The Group has acquired Nafilyan & Partners to enlarge its coverage on the French market by sharing the know-how, expertise and potential synergies with Immobel France. At present, Nafilyan & Partners has been fully integrated into Immobel France's operations.
The reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period is as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 | |
|---|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 43 789 | 43 789 | |
| Acquisition of Immobel France | |||
| ACQUISITION COST AT THE PERIOD END | 43 789 | 43 789 | |
| IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | |||
| Impairment of the period | |||
| IMPAIRMENT AT THE PERIOD END | |||
| NET CARRYING AMOUNT AS AT 30 JUNE 2022 / 31 DECEMBER 2021 | 43 789 | 43 789 | |
| The carrying amount of the goodwill has been allocated to cash-generating units as follows: | |||
| EUR ('000) | 30/06/2022 | 31/12/2021 |
France 43 789 43 789 NET CARRYING AMOUNT AS AT 30 JUNE 2022 / 31 DECEMBER 2021 43 789 43 789
Immobel Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. Immobel Group identified neither evidence nor triggering events that would require asset impairment decisions and refers to the impairment test carried out as per note 13 of the Group's last annual consolidated Financial Statements as at and for the year ending 31 December 2021 and concluded that no impairment charge needs to be recognised in the current year against goodwill.
Following the implementation of IFRS 16 as of 1 January 2019, the right-of-use assets evolve as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 6 708 | 7 297 |
| Entry in consolidation scope | ||
| Acquisitions | 6 085 | 770 |
| Disposals | -2 158 | -1 359 |
| ACQUISITION COST AT THE END OF THE YEAR | 10 635 | 6 708 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | -2 936 | -2 907 |
| Entry in consolidation scope | ||
| Depreciations | - 599 | -1 388 |
| Depreciation cancelled on disposals | 2 937 | 1 359 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE YEAR | - 598 | -2 936 |
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 10 037 | 3 772 |
Three new offices have been included as right-of-use assets.
On 30 May 2022, Immobel headquarters moved to the Multitower building located in the city centre of Brussels .
Also under consideration are the new offices in the United Kingdom and Spain.
This heading includes leased-out property acquired with a view to redevelopment and generates rental income in anticipation of their future development. The investment property evolves as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS YEAR | 178 741 | 199 415 |
| Exit fom the consolidation scope | 89 | |
| Disposal/exit from the consolidation scope | -20 649 | |
| Net carrying value of investment property transferred from/to inventories | - 25 | |
| ACQUISITION COST AT THE END OF THE PERIOD | 178 830 | 178 741 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS YEAR | -4 742 | -2 266 |
| Depreciations | -1 406 | -2 747 |
| Depreciations and impairment cancelled following disposal/exit from the consolidation scope | - 129 | 271 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PERIOD | -6 277 | -4 742 |
| NET CARRYING AMOUNT AS AT 30 JUNE | 172 553 | 173 999 |
The carrying amount of the investment property as at 30 June 2022 amounts to EUR 172.6 million.
The key projects included in investment property are Total, Rueil Malmaison and Thomas.
The contributions of joint ventures and associates in the statement of the financial position and the statement of comprehensive income are as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Investments in joint ventures | 127 480 | 145 513 |
| Investments in associates | 9 816 | 11 019 |
| TOTAL INVESTMENTS INCLUDED IN THE STATEMENT OF FINANCIAL POSITION | 137 296 | 156 532 |
| EUR ('000) | 30/06/2022 | 31/12/2021 |
| Share in the net result of joint ventures | 2 069 | |
| Share in the net result of associates | - 857 | 47 471 -2 941 |
The book value of investments in joint ventures and associates has evolved as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| VALUE AS AT 1 JANUARY | 156 532 | 106 195 |
| Share in result | 1 212 | 44 531 |
| Acquisitions and capital injections | 23 458 | 14 096 |
| Scope changes | 2 160 | 1 831 |
| Dividends received from joint ventures and associates | -45 501 | -8 034 |
| Disposals or liquidation of joint ventures and associates | 4 | |
| Repayment of capital | - 252 | -2 079 |
| Currency translation | ||
| Other changes | - 313 | - 12 |
| CHANGES FOR THE PERIOD | -19 236 | 50 337 |
| VALUE AS AT 30 JUNE 2022 / 31 DECEMBER 2021 | 137 296 | 156 532 |
The book value of investments in joint ventures and associates has mainly decreased as a result of the distribution of a dividend by Möbius II following the result recognised as a result of the sale of the Möbius II office building in 2021.
Among the newly incorporated companies, Houilles Jean Jacques Rousseau, Oxy living and Munroe K Luxembourg are regarded as joint ventures and Arlon 75 as an associate. The shares held in Belux Office Development Feeder CV, previously 30.46% owned and now 26.93% owned have also impacted the percentage of financial rights of its related entities.
As there have been no indicators of impairment, no impairment testing has been carried out for the equity accounted investees.
The weighted average interest rate on loans to/from joint ventures and associates is 3.58% as at 30 June 2022 and 3.08% as at 30 June 2021. The repayment schedule for loans is defined at the end date of the projects.
The table below shows the contribution of joint ventures and associates in the statement of the financial position and the statement of comprehensive income.
| % INTEREST | BOOK VALUE OF THE INVESTMENTS - EUR (000) |
SHARE IN THE COMPREHENSIVE INCOME - EUR (000) |
||||
|---|---|---|---|---|---|---|
| NAME | 30/06/2022 | 31/12/2021 | 30/06/2022 | 31/12/2021 | 30/06/2022 | 31/12/2021 |
| Bella Vita | 50% | 50% | 48 | 48 | - 6 | |
| BONDY CANAL | 40% | 40% | - 37 | |||
| Boralina Investments, S.L. | 50% | 50% | 103 | -2 890 | - 6 | - 21 |
| Brouckère Tower Invest | 50% | 50% | 32 047 | 31 307 | 740 | 598 |
| CBD International | 50% | 50% | 94 | 122 | - 66 | - 150 |
| Château de Beggen | 50% | 50% | 13 | 16 | - 4 | - 1 |
| Cityzen Holding | 50% | 50% | - 23 | - 21 | - 1 | - 2 |
| Cityzen Hotel | 50% | 50% | 665 | 711 | - 46 | 147 |
| Cityzen Office | 50% | 50% | 1 248 | 1 411 | - 163 | - 135 |
| Cityzen Residence | 50% | 50% | 644 | 694 | - 50 | 133 |
| CP Development Sp. z o.o. | 50% | 50% | -1 555 | - 256 | - 421 | - 196 |
| CSM Development | 50% | 50% | - 12 | - 12 | - 36 | |
| CSM Properties | 50% | 50% | 3 865 | 3 852 | 13 | - 48 |
| Debrouckère Development | 50% 50% |
50% 50% |
477 90 |
497 90 |
- 20 | - 52 - 12 |
| Debrouckère Land (ex-Mobius I) Debrouckère Leisure |
50% | 50% | 2 268 | 2 283 | - 15 | - 27 |
| Debrouckère Office | 50% | 50% | 3 740 | 3 740 | - 30 | |
| Gateway | 50% | 50% | 318 | 319 | - 1 | - 3 |
| Goodways SA | 50% | 50% | 3 234 | 3 234 | - 3 | |
| HOUILLES JJ ROUSSEAU | 50% | 0% | 1 | |||
| Ilot Ecluse | 50% | 50% | 162 | 163 | - 2 | |
| Immo Marial SàRL | 50% | 50% | - 50 | - 50 | - 66 | |
| Immo PA 33 1 | 50% | 50% | 1 331 | 1 314 | 17 | 43 |
| Immo PA 44 1 | 50% | 50% | 691 | 682 | 10 | - 1 |
| Immo PA 44 2 | 50% | 50% | 2 449 | 2 423 | 25 | 39 |
| Key West Development | 50% | 50% | 342 | 387 | - 45 | - 84 |
| Les Deux Princes Develop. | 50% | 50% | -2 404 | -2 439 | 35 | 16 |
| M1 | 33% | 33% | 1 666 | 7 270 | 1 058 | 4 992 |
| M7 | 33% | 33% | - 8 | 42 | 1 | |
| Mobius II | 50% | 50% | 9 026 | 47 376 | 24 | 39 255 |
| Munroe K Luxembourg SA | 50% | 23 239 | ||||
| NP BONDY | 40% | 50% | -3 059 | |||
| NP_AUBER | 50% | 50% | - 108 | - 136 | 27 | - 47 |
| NP_AUBER_VH | 50% | 50% | - 204 | 140 | - 40 | 159 |
| NP_AUBERVIL | 50% | 50% | 1 014 | 324 | 691 | 340 |
| NP_BESSANC2 | 50% | 50% | 583 | 497 | 86 | 348 |
| NP_BESSANCOU | 50% | 50% | 112 | 102 | 9 | - 169 |
| NP_CHARENT1 | 50% | 50% | - 203 | 33 | - 237 | - 1 |
| NP_CRETEIL | 50% | 33% | - 1 21 |
- 1 121 |
||
| NP_EPINAY NP_VAIRES |
50% 50% |
33% 50% |
199 | 245 | 10 - 46 |
170 130 |
| ODD Construct | 50% | 50% | 1 317 | 1 164 | 153 | 482 |
| Oxy Living | 50% | 50% | 1 | |||
| PA_VILLA | 51% | 50% | 114 | - 40 | 154 | |
| Plateau d'Erpent | 50% | 50% | 2 120 | 1 823 | 296 | 986 |
| RAC3 | 40% | 50% | 3 427 | 3 403 | 25 | 139 |
| RAC4 | 40% | 50% | 1 328 | 1 321 | 7 | - 11 |
| RAC4 Developt | 40% | 40% | 1 558 | 1 567 | - 8 | - 20 |
| RAC5 | 40% | 40% | 5 709 | 5 651 | 58 | 200 |
| RAC6 | 40% | 40% | 2 195 | 2 182 | 13 | 15 |
| Surf Club Hospitality Group SL | 50% | 50% | 3 996 | 123 | - 5 | - 15 |
| Surf Club Marbella Beach, S.L. | 50% | 50% | 17 858 | 21 772 | - 37 | 132 |
| TRELAMET | 40% | 40% | 3 104 | 48 | 34 | 7 |
| Unipark | 50% | 50% | 4 090 | 4 066 | 24 | 3 |
| Universalis Park 2 | 50% | 50% | -1 181 | -1 122 | - 58 | 505 |
| Universalis Park 3 | 50% | 50% | -2 612 | -2 487 | - 125 | - 238 |
| Universalis Park 3AB Universalis Park 3C |
50% 50% |
50% 50% |
1 978 417 |
1 974 417 |
4 | 7 - 1 |
| TOTAL JOINT VENTURES | 127 480 | 145 513 | 2 069 | 47 471 | ||
| 277 SH | 10% | 10% | 4 350 | 4 445 | - 95 | |
| Arlon 75 | 20% | 0% | 80 | |||
| Beiestack SA | 20% | 22% | 1 324 | 1 498 | - 73 | |
| Belux Office Development Feeder CV | 26% | 22% | 45 | 57 | - 6 | - 83 |
| DHR Clos du Château | 33% | 33% | 24 | 26 | - 2 | 63 |
| Immobel Belux Office Development Fund SCSP | 19% | 22% | 681 | 1 152 | - 223 | - 206 |
| MONTLHERY 2 BIS | 20% | 20% | - 15 | - 15 | ||
| RICHELIEU | 10% | 10% | 1 001 | 1 001 | ||
| ULB Holding | 60% | 60% | -5 676 | -11 173 | - 104 | - 210 |
| Urban Living Belgium | 30% | 30% | 8 001 | 14 013 | - 411 | -2 431 |
| TOTAL ASSOCIATES | 9 816 | 11 019 | - 857 | -2 941 | ||
| TOTAL JOINT VENTURES AND ASSOCIATES | 137 296 | 156 532 | 1 212 | 44 531 |
Deferred tax assets or liabilities are recorded in the balance sheet on deductible or taxable temporary differences, tax losses and tax credits carried forward. Changes in deferred taxes on the balance sheet that have occurred over the financial year are recorded on the statement of income unless they refer to items directly recognised under other comprehensive income.
Deferred taxes on the balance sheet refer to the following temporary differences:
| EUR ('000) | DEFERRED TAX ASSETS | DEFERRED TAX LIABILITIES | |||
|---|---|---|---|---|---|
| 30/06/2022 | 31/12/2021 | 30/06/2022 | 31/12/2021 | ||
| Tax losses | 25 232 | 35 086 | |||
| Revenue recognition | 2 375 | 2 891 | 32 086 | 43 165 | |
| Financial debts | |||||
| Fair value of financial instruments | - 62 | 2 | |||
| Other items | 71 | 60 | - 69 | - 70 | |
| Netting (net tax position per entity) | -4 029 | -16 745 | -4 029 | -16 745 | |
| TOTAL | 23 649 | 21 292 | 27 926 | 26 352 |
| VALUE AS AT 1 JANUARY | 21 292 | 26 352 |
|---|---|---|
| Scope changes | 7 | |
| Deferred tax recognised in the consolidated statement of comprehensive income | 2 350 | 1 574 |
| VALUE AS AT 30 JUNE | 23 649 | 27 926 |
Immobel France is the main contributor to the change in deferred tax assets.
Inventories consist of buildings and land acquired for development and resale.
| Cross-analysis by type of project and by geographical zone - EUR (000) | Offices | Residential | Landbanking | 30/06/2022 |
|---|---|---|---|---|
| Belgium | 26 846 | 205 310 | 72 984 | 305 140 |
| Luxembourg | 772 | 148 918 | 149 690 | |
| France | 151 941 | 33 783 | 185 724 | |
| Germany | 57 342 | 57 342 | ||
| Poland | 43 920 | 43 920 | ||
| Spain | 1 452 | 1 452 | ||
| United Kingdom | ||||
| Total | 179 559 | 489 273 | 72 984 | 743 268 |
| Cross-analysis by type of project and by geographical zone - EUR (000) | Offices | Residential | Landbanking | 31/12/2021 |
| Belgium | 29 187 | 196 989 | 66 698 | 292 874 |
| Luxembourg | 581 | 143 220 | 143 801 | |
| France | 136 134 | 31 058 | 167 192 | |
| Germany | 59 033 | 59 033 | ||
| Poland | 34 735 | 34 735 | ||
| Spain | 988 | 988 | ||
| United Kingdom | ||||
| Total | 165 902 | 466 023 | 66 698 | 698 623 |
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| INVENTORIES AS AT 1 JANUARY | 698 623 | 683 121 |
| Net book value of investment property transferred from/to inventories | 25 | |
| Purchases of the year | 995 | 72 716 |
| Developments | 143 383 | 246 743 |
| Disposals of the year | -103 637 | -311 066 |
| Borrowing costs | 4 513 | 9 364 |
| Scope changes | - 139 | -1 588 |
| Write-off | - 471 | - 692 |
| CHANGES FOR THE PERIOD | 44 644 | 15 502 |
| INVENTORIES AS AT 30 JUNE 2022 / 31 DECEMBER 2021 | 743 268 | 698 623 |
Inventories increased driven mainly by the acquisition of an additional building for the Rueil Malmaison project in France, the development of the Granaria project in Poland, the acquisition of Héros in Belgium and the capitalisation of PM fees and borrowing costs in all countries, partially offset by selling down The Woods project in Belgium.
The main projects in inventories include O'Sea and Lebeau Sablon in Belgium, Polvermillen and Cat Club in Luxembourg, Saint-Antoine, Tati and Reuil Malmaison in France, Eden in Germany and Granaria Gdansk in Poland.
The weighted average interest rate on borrowing costs capitalised on Project Financing Credits and on Bonds was 2.7% as at 30 June 2022 and 2.2% as at 30 June 2021.
| Break down of the movements by geographical area : |
EUR ('000) | Purchases/ Developments |
Disposals | Borrowing costs | Scope changes | Write-off | Net |
|---|---|---|---|---|---|---|---|
| Belgium | 61 527 | -53 791 | 5 178 | - 177 | - 471 | 12 266 | |
| Luxembourg | 18 066 | -12 155 | - 22 | 5 889 | |||
| France | 40 838 | -21 974 | - 370 | 38 | 18 532 | ||
| Germany | 13 840 | -15 162 | - 370 | -1 692 | |||
| Poland | 9 642 | - 555 | 97 | 9 184 | |||
| Spain | 465 | 465 | |||||
| United Kingdom | |||||||
| Total | 144 378 | -103 637 | 4 513 | - 139 | - 471 | 44 644 |
The value of the stock to be recovered in:
| EUR ('000) | |
|---|---|
| 12 months | 163 820 |
| > 12 months | 579 447 |
| Breakdwon of the stock by type: | |
| Without permit | 440 879 |
| Permit obtained but not yet in development | |
| In development | 302 389 |
The book value of the Group's assets pledged for debt securities related to investment property and inventory as a whole was EUR 721 million compared to EUR 759 million at the end of 2021, representing a decrease of EUR 38 million.
As at 30 June 2022, Immobel acknowledged a commitment to acquire new projects for an amount of EUR 236 million for a number of projects in Belgium, Luxembourg and Germany.
Trade receivables refer to the following geographical segments:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Belgium | 13 809 | 13 405 |
| Luxembourg | 1 202 | 4 554 |
| France | 16 679 | 15 590 |
| Germany | 2 908 | 2 204 |
| Poland | 474 | 211 |
| Spain | 2 152 | 2 152 |
| TOTAL TRADE RECEIVABLES | 37 224 | 38 116 |
| The analysis of the delay of payment arises as follows: EUR ('000) |
30/06/2022 | 31/12/2021 |
| Due < 3 months | 777 | 11 622 |
| Due > 3 months < 6 months | 2 394 | 829 |
| Due > 6 months < 12 months | 723 | 2 021 |
| Due > 1 year | 1 972 | 1 482 |
Trade receivables mainly relate to receivables either for equity accounted investees or for customers. The credit risk for both types of receivables is considered as immaterial. Receivables towards equity accounted investees are typically backed by an asset under development. Receivables for customers are typically backed by the asset sold which serves as collateral.
Impairments recorded on trade receivables evolve as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| BALANCE AT 1 JANUARY | 627 | 542 |
| Additions | 15 | 85 |
| MOVEMENTS OF THE PERIOD | 15 | 85 |
| BALANCE AT 30 JUNE 2022 / 31 DECEMBER 2021 | 642 | 627 |
Contract assets arising from the application of IFRS 15 refer to the following geographical segments:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Belgium | 99 753 | 78 552 |
| Luxembourg | 5 149 | 1 403 |
| France | 23 027 | 25 367 |
| Germany | 12 142 | 12 631 |
| TOTAL CONTRACT ASSETS | 140 071 | 117 953 |
Contract assets include the amounts to which the entity is entitled in exchange for goods or services that it already has provided for a customer, but for which payment is not yet due or is subject to fulfilment of a specific condition provided for in the contract. When an amount becomes due, it is transferred to the receivables account. A trade receivable is recognised as soon as the entity has an unconditional right to collect a payment. This unconditional right exists from the moment in time when the payment becomes due.
Trade receivables, other receivables and contract assets are similarly subject to an impairment test in accordance with the provisions of IFRS 9 on expected credit losses. This test does not show any significant potential impact since these contract assets (and their related receivables) are generally covered by the underlying assets represented by the building to be transferred.
As at 30 June 2022, consideration of project Commerce 46 during the progress of completion is the main contributory factor to the change in contract assets as well as the Bussy St Georges and Savigny sur Orge in France projects and the Canal project in Luxembourg.
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Other receivables | 46 916 | 27 815 |
| of which : advances and guarantees paid | ||
| taxes (other than income taxes) and VAT receivable | 31 400 | 20 247 |
| prepayments and dividends receivable | 2 168 | 1 703 |
| other | 13 348 | 5 865 |
| Deferred charges and accrued income | 8 080 | 8 425 |
| of which: on projects in development | 190 | 190 |
| other | 7 890 | 8 235 |
| TOTAL OTHER CURRENT ASSETS | 54 996 | 36 240 |
The increase in other receivables mainly relates to the prepayments in Immobel and in Gasperich.
The Group's net financial debt is the balance between cash and cash equivalents and financial debts (current and non-current). It amounts to EUR -646 546 thousand as at 30 June 2022 compared to EUR -593 313 thousand as at 31 December 2021.
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Cash and cash equivalents | 263 580 | 273 377 |
| Non current financial debts | 730 397 | 507 596 |
| Current financial debts | 179 729 | 359 094 |
| NET FINANCIAL DEBT | -646 546 | -593 313 |
The Group's gearing ratio10 is 56.0% as at 30 June 2022, compared to 52.9% as at 31 December 2021. The increase in non-current financial debts and the decrease in current financial debts are mainly driven by the reimbursement of a 5-year EUR 100 million bond and the issuance of a new 4-year EUR 125 million bond in the first half of 2022.
Cash deposits and cash at bank and in hand amount to EUR 263 580 thousand compared to EUR 273 377 thousand at the end of 2021, representing a decrease of EUR 9 797 thousand.
The breakdown of cash and cash equivalents is as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Term deposits with an initial duration of maximum 3 months | ||
| Cash at bank and in hand | 263 580 | 273 377 |
| AVAILABLE CASH AND CASH EQUIVALENTS | 263 580 | 273 377 |
The explanation of the change in available cash is provided in the consolidated cash-flow statement. Cash and cash equivalents are available in full, either for distribution to the shareholders or to finance projects owned by the different companies.
Financial debts increased by EUR 43 436 thousand, from EUR 866 690 thousand as at 31 December 2021 to EUR 910 125 thousand as at 30 June 2022. The components of financial debts are as follows:
10 Gearing ratio is calculated by dividing net financial debt by the sum of net financial debt and equity group share with goodwill subtracted from the equity group share
Financial debts evolve as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Bond issues: | ||
| Bond issue maturity 31-05-2022 at 3.00% - nominal amount 100 MEUR | ||
| Bond issue maturity 17-10-2023 at 3.00% - nominal amount 50 MEUR | 50 000 | 49 903 |
| Bond issue maturity 17-10-2025 at 3.50% - nominal amount 50 MEUR | 50 000 | 50 000 |
| Bond issue maturity 14-04-2027 at 3.00% - nominal amount 75 MEUR | 75 000 | 75 000 |
| Bond issue maturity 12-05-2028 at 3.00% - nominal amount 125 MEUR | 125 000 | 125 000 |
| Bond issue maturity 29-06-2026 at 4,75% - nominal amount 125 MEUR | 125 000 | |
| Lease contracts | 8 128 | 2 130 |
| Credit institutions | 297 269 | 205 563 |
| NON CURRENT FINANCIAL DEBTS | 730 397 | 507 596 |
| Bond issues: | ||
| Bond issue maturity 31-05-2022 at 3.00% - nominal amount 100 MEUR | 100 000 | |
| Credit institutions | 172 297 | 257 463 |
| Lease contracts | 1 975 | 1 630 |
| Bonds - not yet due interest | 5 457 | |
| CURRENT FINANCIAL DEBTS | 179 729 | 359 094 |
| TOTAL FINANCIAL DEBTS | 910 125 | 866 690 |
| Financial debts at fixed rates | 425 000 | 399 903 |
| Financial debts at variable rates | 479 668 | 466 787 |
| Not yet due interest | 5 457 | 4 206 |
| Amount of debts guaranteed by securities | 449 566 | 438 301 |
| Book value of Group's assets pledged for debt securities | 669 606 | 446 766 |
In 2022, a new bond has been issued maturing in 2026. The bond does not have any additional or specific covenants compared to earlier bonds issued by the company. There are no embedded derivates, similar to the bonds issued earlier by the company. This is the same as for other issued bonds by the company.
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| FINANCIAL DEBTS AS AT 1 JANUARY | 866 690 | 751 949 |
| Liabilities related to lease contracts | 6 343 | -2 130 |
| Contracted debts | 234 217 | 249 033 |
| Repaid debts | -195 180 | -128 872 |
| Change in the fair value recognized in the statement of comprehensive income | ||
| Scope changes | -7 400 | |
| Movements bonds - - not yet due interest | 4 250 | 12 565 |
| Not yet due interest on other loans | 1 207 | 9 080 |
| Amortization of deferred debt issue expenses | 195 | |
| CHANGES FOR THE PERIOD | 43 437 | 139 871 |
| FINANCIAL DEBTS AS AT 30 JUNE / 31 DECEMBER 2021 | 910 126 | 891 820 |
All financial debts are denominated in EUR.
Except for the bonds, financing for the Group and financing for the Group's projects are provided based on a short-term rate, the 1 to 12-month Euribor, plus a commercial margin.
As at the end of June 2022, the company had available liquidity consisting of a cash position of EUR 263 million, EUR 30 million of available corporate credit lines, EUR 27 million of non-issued Commercial Papers and EUR 134 million of undrawn project finance lines.
As at 30 June 2022, the book value of the Group's assets pledged to secure corporate credit and the project financing credits amounted to EUR 669 million.
DUE IN THE PERIOD - EUR (000) UP TO 1 YEAR 1 TO 2 YEARS 2 TO 3 YEARS 3 TO 4 YEARS 4 TO 5 YEARS AFTER 5 YEARS Total Bonds 50 000 175 000 75 000 125 000 425 000 Project Financing Credits 148 997 175 320 78 753 15 695 418 766 Corporate Credit lines 2 000 2 500 23 000 27 500 Commercial paper 21 300 2 000 23 300 Lease contracts 1 975 8 128 10 103 Interests not yet due and amortized costs 5 457 5 457 TOTAL AMOUNT OF DEBTS 174 278 237 948 101 753 175 000 90 695 125 000 910 126
The table below is a summary of the Group's financial debts as they mature:
To hedge its variable interest-rate exposure, the company uses various types of financial instruments.
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||
| Interest rate swaps | ||
| DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | ||
| Interest rate swaps - cash flow hedges [Asset / Liability (-) ] | 1 943 | - 160 |
| TOTAL | 1 943 | - 160 |
| CHANGE IN FAIR VALUE OF THE DERIVATIVE FINANCIAL INSTRUMENTS | ||
| ASSET | ||
| SITUATION AT 1 JANUARY | ||
| Changes during the period in the consolidated result | ||
| Changes during the period in other comprehensive income | 1 943 | |
| SITUATION AT 30 JUNE / 31 DECEMBER 2021 | 1 943 | |
| LIABILITY | ||
| SITUATION AT 1 JANUARY | 160 | 560 |
| Changes during the period in the consolidated result | - 316 | |
| Changes during the period in other comprehensive income | - 160 | - 84 |
| SITUATION AT 30 JUNE / 31 DECEMBER 2021 | 160 |
The increase in the interest rate would result in an annual increase in the interest charge on debt of EUR 1 748 thousand per 1% increase for about 25% of the variable part of the debt and a maximum of EUR 2 622 thousand in total for about 75% of the variable part of the debt to the extent the applicable EURIBOR rate stands at 0%.
The following table lists the different classes of financial assets and liabilities with their carrying amounts in the balance sheet and their respective fair value and analysed by their measurement category.
The fair value of financial instruments is determined as follows:
For fixed-rate debts, based on discounted future cash flow, estimated based on market rates at closing,
For variable-rate debts, the fair value is assumed to be close to the amortised cost,
The fair value measurement of financial assets and financial liabilities can be characterised in one of the following ways:
| Amounts recognized in accordance with IFRS 9 | ||||||
|---|---|---|---|---|---|---|
| EUR ('000) | Level of the fair value |
Carrying amount 30/06/2022 |
Amortized cost | Fair value trough profit or loss |
Fair value 30/06/2022 |
Cash flow hedging 30/06/2022 |
| ASSETS | ||||||
| Cash and cash equivalents | 263 580 | 263 580 | 263 580 | |||
| Other non-current assets | Level 2 | 1 006 | 1 006 | 1 006 | ||
| Trade receivables | Level 2 | 37 224 | 37 224 | 37 224 | ||
| Other operating receivables | Level 2 | 178 315 | 178 315 | 178 315 | ||
| Other current financial assets | Level 1 | 1 992 | 1 992 | 49 | 1 943 | |
| TOTAL | 482 117 | 482 117 | 480 174 | 1 943 | ||
| LIABILITIES | ||||||
| Interest-bearing debt | Level 1 | 900 023 | 900 023 | 900 023 | ||
| Interest-bearing debt | Level 2 | 10 103 | 10 103 | 10 103 | ||
| Trade payables | Level 2 | 129 413 | 129 413 | 129 413 | ||
| Other operating payables | Level 2 | 109 825 | 109 825 | 109 825 | ||
| Derivative financial instruments | Level 2 | |||||
| TOTAL | 1 149 364 | 1 149 364 | 1 149 364 |
The company did not make any changes to its financial risk management policy in the first half of 2022.
The bank accounts are held by banks with 'investment grade' rating (Baa3/BBB- or better).
The Company starts new projects only in the event it has appropriate corporate financing, specific project financing or pre-sales. Therefore, the cash risk associated with the progress of a project is very limited.
The changes in foreign exchange rates are not considered to be a significant estimate.
The Group is subject, for the bonds and credit lines mentioned above, to a number of covenants.
These covenants take into account the equity, the net financial debt and its relation to the equity and the inventories. As at 30 June 2022, as for the previous years, the Group was complying with all these financial covenants.
The Group has limited hedging on the foreign exchange rates risks on its activities. The functional currency of projects currently being developed in Poland and of the activities in the UK are converted respectively from PLN to EUR (except for the Central Point managed in EUR) and from GBP to EUR, with an impact on other comprehensive income.
This account is allocated by geographical segment as follows:
| EUR ('000) | 30/06/2022 | 31/12/2021 | |
|---|---|---|---|
| Belgium | 55 350 | 41 548 | |
| Luxembourg | 22 434 | 10 920 | |
| France | 10 229 | 7 006 | |
| Germany | 9 322 | 7 980 | |
| Poland | 28 017 | 12 065 | |
| Spain | 4 061 | 4 027 | |
| TOTAL TRADE PAYABLES | 129 413 | 83 546 |
The trade payables are mainly related to the projects O'Sea and Commerce 46 in Belgium, Eden in Germany, Canal in Luxembourg and Granaria in Poland.
Contract liabilities arising from the application of IFRS 15 relate to the following geographical segments:
| EUR ('000) | 30/06/2022 | 31/12/2021 |
|---|---|---|
| Belgium | 3 455 | 10 427 |
| Luxembourg | ||
| France | 10 368 | 11 542 |
| Poland | ||
| Spain | ||
| TOTAL CONTRACT LIABILITIES | 13 823 | 21 969 |
The increase in contract liabilities is mainly due to the O'Sea projects in Belgium and La Garenne in France.
Contract liabilities include amounts received by the entity as compensation for goods or services that have not yet been provided for the customer. Contract liabilities are settled by "future" recognition of the revenue when the IFRS 15 criteria for revenue recognition have been met.
All amounts reflected in contract liabilities relate to residential activities for which revenue is recognised over time, thus creating discrepancies between payments and the realisation of benefits.
The change in working capital by nature is established as follows:
| EUR ('000) | 30/06/2022 | 30/06/2021 |
|---|---|---|
| Inventories, including the acquisition and sales of subsidiaries holding a dedicated project | -54 761 | 17 317 |
| Amounts receivable within one year | -49 469 | -64 002 |
| Deferred charges and accrued income | 10 172 | -15 012 |
| Disposal of financial fixed assets | 2 721 | 0 |
| Trade debts | 49 957 | 43 063 |
| Amounts payable regarding taxes and social security | 1 350 | -3 291 |
| Dividends payable | 0 | - 848 |
| Accrued charges and deferred income | 5 690 | - 524 |
| Other | 4 484 | 8 223 |
| CHANGE IN WORKING CAPITAL | -29 856 | -15 074 |
Changes in drivers for working capital are addressed in the respective notes earlier in this report.
Due to the intrinsic nature of its activity, real estate development, the results of the first half of 2022 cannot be extrapolated over the whole year. These results depend on the final transactions before 31 December 2022.
Actuals relating to the first half of 2022 and forecast for 2022 show that the management assessment relating to the company's going concern remains appropriate and confirms the Group's good prospects.
No significant event that may change the financial statements occurred from the reporting date on 30 June 2022 up to 8 September 2022 when the financial statements were approved by the Board of Directors.
The related party transactions described in Note 29 of the Notes to the Consolidated Financial Statements as at 31 December 2021 did not change significantly at the end of June 2022.
A³ Management bv, represented by Mr. Marnix Galle in his capacity as Executive Chairman of the Board of Directors and KB Financial Services bv, represented by Mr. Karel Breda in his capacity as Chief Financial Officer state that, to the best of their knowledge:
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.