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Intervest Offices & Warehouses NV
Quarterly Report • Feb 8, 2024
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Quarterly Report
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ANNUAL RESULTS 2023
Regulated information, 08.02.2024, 8 am
Annual results 2023
Regulated information, 08.02.2024, 8 am
Annual results 2023
Highlights
-
Logistics share in the portfolio increases to 78% (73% end 2022) Share of offices: 22%
-
EPRA result amounts to € 37.4 million for the 2023 financial year (€ 45.4 million for 2022); EPRA result without taking into account the one-off elements linked to the TPG takeover bid and to the strategic transformation amounts to € 43.9 million
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Increase in fair value of total property portfolio by € 86 million or 6% compared to year-end 2022 to € 1.4 billion
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Divestments of 4 office buildings totalling € 28 million
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Rise in total occupancy rate by 3%-points to 93% (90% at year-end 2022)
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Increase hedging ratio: 93% of debt is hedged against long-term rising interest rates (average around 4.0 years) (72% at year-end 2022)
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Inclusion of Intervest share in BEL®ESG index of Euronext
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Proposed gross dividend of € 1.021 per share, taking into account minimum mandatory dividend distribution under RREC regime2
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Voluntary and conditional public takeover bid for all outstanding Intervest shares by TPG:
-
Announcement in October 2023
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Period for shareholders to tender their shares began on 18 January 2024 and will end on 21 February 2024 at 4 pm
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1 For shares entitled to dividend for a full year and subject to approval by the general meeting of shareholders held on 24 April 2024.
2 The amount eligible for distribution is determined in accordance with article 13 §1 of the RREC RD and Chapter III of annex C of the RREC RD: at least 80% of the sum of the adjusted result and net capital gains on the sale of real estate not exempted from the mandatory distribution must be distributed; however, the reduction in debt during the financial year may be deducted from the amount to be distributed.
Annual results 2023
Regulated information, 08.02.2024, 8 am
Key figures financial year 2023
€ 1.4 billion Fair value of the portfolio
53% Logistics BE 25% Logistics NL 22% Offices
93% Occupancy rate
96% Logistics BE 96% Logistics NL 85% Offices
4.4 years WALB
4.4 years Logistics BE 5.9 years Logistics NL 3.1 years Offices
6.4%Gross rental yield
5.6% Logistics BE 6.1% Logistics NL 8.6% Offices
€ 1.25 EPRA earningsper share
€ 22.24
EPRA NTA per share
3.1% Average financing interest rate
3.6 years Remaining duration of long-term credit lines
49.7% Debt ratio
93% Hedging ratio
STOCK MARKET
€ 638 million Market capitalisation
REAL ESTATE FINANCIAL SUSTAINABILITY
33% Green Buildings
100% Electricity from renewable sources
19% Green financing
88% of the logistics property portfolio equipped with solar panels: 48 MWp
366 operational charging points for electric cars
TEAM
58% 42%
Annual results 2023
Regulated information, 08.02.2024, 8 am
Comparative key figures
| in EUR x 1,000 | 31.12.2022 | |
|---|---|---|
| Real estate key figures | ||
| Fair value of real estate | 1,419,893 | 1,333,418 |
| Fair value of real estate available for lease | 1,339,223 | 1,233,799 |
| Gross lease yield on real estate available for lease (in %) | 6.4% | 6.0% |
| Gross lease yield on real estate available for lease at 100% occupancy rate (in %) | 6.9% | 6.7% |
| Average remaining duration of lease contracts (until first expiry date) (in years) | 4.4 | 4.9 |
| Average remaining duration of lease contracts logistics portfolio BE (until first expiry date) (in years) |
4.4 | 5.3 |
| Average remaining duration of lease contracts logistics portfolio NL (until first expiry date) (in years) |
5.9 | 6.5 |
| Average remaining duration of lease contracts offices portfolio (until first expiry date) (in years) |
3.1 | 2.9 |
| Occupancy rate total portfolio (in %) | 93% | 90% |
| Occupancy rate logistics portfolio NL (in %) | 96% | 100% |
| Occupancy rate logistics portfolio BE (in %) | 96% | 96% |
| Occupancy rate offices (in %) | 85% | 76% |
| Gross leasable surface area (in thousands of m²) | 1,430 | 1,259 |
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Financial key figures | ||
| EPRA earnings | 37,401 | 45,467 |
| Result on portfolio - Group share | -15,238 | -26,010 |
| Changes in fair value of _financial assets and liabilities - Group share | -16,245 | 32,257 |
| NET RESULT – GROUP SHARE | 5,918 | 51,714 |
| Number of shares entitled to dividend | 30,825,122 | 29,235,067 |
| Weighted average number of shares | 30,021,003 | 26,664,878 |
| Share price on closing date (in €/share) | 20.70 | 19.24 |
| Net value (in €/share) | 21.89 | 23.72 |
| Premium/Discount with respect to fair net value (in %) | -5.4% | -18.9% |
| Market capitalisation (in million €) | 638 | 562 |
| Debt ratio (max. 65%) | 49.7% | 48.0% |
| Average interest rate of the financing (in %) | 3.1% | 2.0% |
| Average duration of long term credit lines (in years) | 3.6 | 4.0 |
Annual results 2023
Regulated information, 08.02.2024, 8 am
| EPRA key figures | 31.12.2023 | 31.12.2022 |
|---|---|---|
| EPRA earnings (€ per share) (Group share) | 1.25 | 1.71 |
| EPRA NTA (€ per share) | 22.24 | 23.50 |
| EPRA NRV (€ per share) | 24.43 | 25.64 |
| EPRA NDV (€ per share) | 22.27 | 24.41 |
| EPRA NIY (Net Initial Yield) (%) | 5.1% | 4.8% |
| EPRA topped-up NIY (%) | 5.4% | 5.1% |
| EPRA vacancy rate (%) | 7.1% | 9.9% |
| EPRA cost ratio (including direct vacancy costs) (%) | 26.5% | 18.0% |
| EPRA cost ratio (excluding direct vacancy costs) (%) | 24.4% | 16.5% |
| EPRA LTV (Loan-to-value) (in %) | 49.3% | 47.9% |
| EPRA key figures (EXCLUDING one-off elements) | 31.12.2023 | 31.12.2022 |
| EPRA earnings (€ per share) (Group share) | 1.46 | 1.60 |
| EPRA NTA (€ per share) | 22.45 | 23.40 |
| EPRA NRV (€ per share) | 24.64 | 25.55 |
| EPRA NDV (€ per share) | 22.48 | 24.31 |
| EPRA cost ratio (including direct vacancy costs) (%) | 18.8% | 18.8% |
| EPRA cost ratio (excluding direct vacancy costs) (%) | 16.7% | 17.2% |
Alternative performance measures
Alternative performance measures are criteria used by Intervest to measure and monitor its operational performance. The measures are used in this press release, but they are not defined by an Act or in the generally accepted accounting principles (GAAP). The European Securities and Markets Authority (ESMA) issued guidelines which, as of 3 July 2016, apply on the use and explanation of the alternative performance measures. The concepts that Intervest considers to be alternative performance measures are included in a lexicon on the www.intervest.eu website, called "Terminology and alternative performance measures" and as annexes to this press release. The alternative performance measures are indicated with ★ and provided with a definition, objective and reconciliation as required by the ESMA guideline. EPRA (European Public Real Estate Association) is an organisation that promotes, helps develop and represents the European listed real estate sector in order to boost confidence in the sector and to increase investments in Europe's listed real estate. For more details, please visit www.epra.com.
PRESS RELEASE Annual results 2023 Regulated information, 08.02.2024, 8 am
1 Strategy and strategic targets 2023 - 2025
As a leading real estate player, Intervest Offices & Warehouses (Hereinafter Intervest) has made the strategic choice to focus on the logistics real estate segment, driven by changing consumer and business needs. These focus areas were described in detail in the Half-Year Financial Report 2023, which can be found under News > Half-Year Reports on the company's website. The following strategic targets were set:
3 Calculation based on lettable area and excluding offices with potential redevelopment into a logistics site or located on a logistics site.
Annual results 2023
Regulated information, 08.02.2024, 8 am
2 Property report
| KEY FIGURES | 31.12.2023 | 31.12.2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Logistics BE | Logistics NL | Offices BE | TOTAL | Logistics BE | Logistics NL | Offices BE | TOTAL | |
| Fair value of investment properties (in EUR x 1,000) |
757,947 | 348,154 | 313,792 | 1,419,893 | 628,450 | 347,277 | 357,691 | 1,333,418 |
| Fair value of investment properties (%) | 53% | 25% | 22% | 100% | 47% | 26% | 27% | 100% |
| Fair value of real estate available for lease (in EUR x 1,000) |
699,589 | 344,557 | 295,077 | 1,339,223 | 565,502 | 337,611 | 330,686 | 1,233,799 |
| Contractual rents (in EUR x 1,000) |
39,942 | 20,876 | 25,398 | 86,217 | 34,488 | 19,722 | 22,627 | 76,837 |
| Contractual rents increased by the estimated rental value on vacancy (in EUR x 1,000) |
41,617 | 21,746 | 29,441 | 92,803 | 35,845 | 19,722 | 29,287 | 84,854 |
| Gross lease yield on real estate available for lease (in %) |
5.6% | 6.1% | 8.6% | 6.4% | 5.8% | 5.7% | 6.8% | 6.0% |
| Gross lease yield (including estimated rental value of vacant properties) on real estate available for lease (in %) |
5.9% | 6.3% | 10.0% | 6.9% | 6.0% | 5.7% | 8.9% | 6.7% |
| Average remaining duration of lease agreements (until first expiry date) (in years) |
4.4 | 5.9 | 3.1 | 4.4 | 5.3 | 6.5 | 2.9 | 4.9 |
| Average remaining duration of lease agreements (until end of agreement) (in years) |
6.0 | 7.3 | 4.6 | 5.9 | 6.8 | 8.2 | 4.3 | 6.4 |
| Occupancy rate (EPRA) (in %) |
96% | 96% | 85% | 93% | 96% | 100% | 76% | 90% |
| Number of leasable buildings | 28 | 19 | 30 | 77 | 25 | 19 | 32 | 76 |
| Gross leasable surface area (in EUR x 1,000) |
871 | 359 | 200 | 1,430 | 698 | 353 | 208 | 1,259 |
* All concepts and their calculations are included in a lexicon on the www.intervest.eu website, called "Terminology and alternative performance measures" and as attachment to this press release.
2.1 Acquisitions in 2023
Ghent (BE): strategic logistics site in Ghent seaport
Early 2023, Intervest concluded a sale-and-lease-back operation with Plasman Belgium NV on concession property for an investment value of € 14.25 million. The 56,000 m² site, strategically located at Skaldenstraat in the Ghent seaport, comprises a 22,200 m² production site on which Plasman carries out its operational activities. Intervest has concluded a 10-year lease with Plasman, with two options to extend for 5 years each at market conditions.
A new concession agreement has been negotiated with North Sea Port Flanders until 2053, with a unilateral option to extend until 2083. This acquisition represents an important expansion of the already existing cluster with which Intervest further strengthens its position in port of Ghent.
Annual results 2023
Regulated information, 08.02.2024, 8 am
Liege (Herstal) (BE): strategic logistics site with future redevelopment potential of 70,000 m²
In the third quarter of 2023, an agreement was concluded for the phased acquisition of a strategic logistics site in Liège (Herstal) with a site area of approximately 15.5 ha, of which approximately 66,000 m² is lettable space. The site offers the possibility of sustainable redevelopment of approximately 70,000 m² in the future.
The site is fully leased upon acquisition, at an annual rent of € 1.27 million, with various maturities to allow flexibility in responding to the site's development potential. The overall investment value of the property is € 29 million, in line with the valuation by the company's real estate expert.
Saint-Georges-sur-Meuse (BE): strategic land position for sustainable logistics development
In the first quarter of 2023, Intervest acquired a site of approximately 5 hectares at a strategic location along the E42 motorway in Saint-Georges-sur-Meuse, near Liège airport, for an acquisition value of € 10.4 million. This acquisition provides Intervest with a strategic land position to develop a new sustainable logistics site.
2.2 Divestments in 2023
In 2023, 4 office buildings were sold for a total net sales price of € 28 million. The divestments of these office buildings are in line with the strategy of further reducing the office segment in favour of logistics properties. These buildings, with the exception of Zellik-Exiten, were already on the balance sheet as assets held for sale at year-end 2022.
| Location | Date of sale |
|---|---|
| Dilbeek - Inter Access Park | Q2 2023 |
| Hoeilaart - Park Rozendal | Q2 2023 |
| Antwerpen - Gateway | Q4 2023 |
| Zellik - Exiten | Q4 2023 |
A sales compromise was signed in December 2023 for the office building in Aartselaar. The deed will be executed in the first half of 2024. The sale price is € 3.2 million, in line with the current accounting value. This building appears on the balance sheet at year-end 2023 as an asset held for sale.
2.3 Projects under construction and development potential
Projects completed in 2023
| Segment | Type | GLA in m² | Delivery | BREEAM | |
|---|---|---|---|---|---|
| Herentals Green Logistics 1B | Logistics BE | Development | 10,000 | Q1 2023 | Excellent |
| 's-Hertogenbosch | Logistics NL | Development | 9,700 | Q2 2023 | Excellent |
| Genk Green Logistics unit 18/19 | Logistics BE | Development | 30,000 | Q2 2023 | Excellent |
Annual results 2023
Regulated information, 08.02.2024, 8 am
Overview of projects and land reserves
| (Potential) | Expected | ||||
|---|---|---|---|---|---|
| Segment | Type | GLA in m² | delivery | BREEAM | |
| Genk Green Logistics unit 7 | Logistics BE | Development | 12,850 | Q1 2024 | Excellent |
| PROJECTS | 12,850 | ||||
| Genk Green Logistics | Logistics BE | Development | 120,150 | 2024-2025 | Excellent |
| Puurs | Logistics BE | Development | 54,599 | 2024 | Excellent |
| 's-Hertogenbosch | Logistics NL | Development | 11,500 | 2025 | Excellent |
| Liège (Herstal) | Logistics BE | Development | 45,098 | 2025 | Excellent |
| Venlo | Logistics NL | Development | 10,000 | 2025 | Outstanding |
| LAND RESERVES | 241,347 | ||||
| TOTAL PROJECTS & LAND RESERVES | 254,197 |
2.4 Occupancy, leasing activity and duration of leases
The occupancy rate of the total portfolio available for lease increases by 3%-points to 93% at 31 December 2023 (90% at the end of 2022). For the Netherlands' logistics portfolio, the occupancy rate decreases by 4%-points to 96% at the end of 2023 (100% at the end of 2022). For Belgium's logistics portfolio, the occupancy rate remains stable at 96% at the end of 2023 compared to year-end 2022 (96%). The occupancy rate of the offices portfolio rises to 85%, up 9% points compared to year-end 2022 (76%).
A number of leasing transactions were recorded during the 2023 financial year. In the Belgian logistics segment, total leases for a lettable area of approximately 206,351 m² were recorded, with a combined gross annual rent of € 7.9 million, which represents 23% of the contractual annual rent at the end of 2022 for Belgium's logistics portfolio. The offices portfolio recorded a total of approximately 33,000 m², with a gross annual rent of € 4.9 million, representing 22% of the contractual annual rent at the end of 2022 for the offices portfolio.
The average remaining duration to the first expiry date (WALB) in the entire portfolio is 4.4 years at 31 December 2023 (4.9 years at the end of 2022). The logistics portfolio Belgium has an average remaining contract duration to the next expiry date of 4.4 years at 31 December 2023 (5.3 years at 31 December 2022). For the logistics portfolio Netherlands, the average remaining contract duration to the next expiry date is 5.9 years (6.5 years on 31 December 2022). For the offices portfolio, the average lease term to the next expiry date (WALB) is 3.1 years at the end of 2023 (2.9 years at 31 December 2022).
Annual results 2023
Regulated information, 08.02.2024, 8 am
3 Financial report
3.1 Comments on the results for the financial year 20234
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 | Δ | Δ % |
|---|---|---|---|---|
| Rental income - normal operations | 81,081 | 68,619 | 12,462 | 18% |
| Rental income - non-recurring items | 0 | 2,855 | -2,855 | -100% |
| Rental-related expenses | -76 | -19 | -57 | 297% |
| NET RENTAL RESULT | 81,005 | 71,455 | 9,550 | 13% |
| Recovery of property charges | 1,163 | 1,249 | -86 | -7% |
| Recovery of rental charges and taxes normally payable by tenants on let properties | 23,979 | 22,290 | 1,689 | 8% |
| Costs payable by tenants and borne by the landlord for rental damage and refurbishment |
-1,138 | -1,629 | 491 | -30% |
| Rental charges and taxes normally payable by tenants on let properties | -23,979 | -22,290 | -1,689 | 8% |
| Other rental-related income and expenses | 918 | 939 | -22 | -2% |
| PROPERTY RESULT | 81,947 | 72,014 | 9,933 | 14% |
| Technical costs | -1,112 | -931 | -181 | 19% |
| Commercial costs | -286 | -432 | 146 | -34% |
| Charges and taxes on unleased properties | -1,688 | -1,086 | -602 | 55% |
| Property management costs | -6,529 | -4,926 | -1,602 | 33% |
| Other property charges | -1,370 | -1,191 | -178 | 15% |
| Property charges | -10,984 | -8,566 | -2,418 | 28% |
| OPERATIONAL PROPERTY RESULT | 70,963 | 63,448 | 7,516 | 12% |
| General expenses - normal operations | -4,241 | -4,387 | -144 | -3% |
| General expenses - non-recurring items | -6,195 | 0 | -6,195 | |
| Other operating income and costs | -903 | -475 | -428 | 90% |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 59,624 | 58,586 | 1,038 | 2% |
| Result on disposals of investment properties | -4,733 | 478 | -5,211 | -1,089% |
| Changes in fair value of investment properties | -810 | -26,106 | 25,296 | -97% |
| Other result on portfolio | -2,793 | 3,920 | -6,713 | -171% |
| OPERATIONAL RESULT | 51,287 | 36,878 | 14,409 | 39% |
| Financial income | 1,612 | 69 | 1,543 | 2,242% |
| General expenses - normal operations | -20,205 | -10,655 | -9,550 | 90% |
| General expenses - non-recurring items | -332 | 0 | -332 | |
| Other financial charges | -627 | -291 | -336 | 116% |
| Changes in fair value of financial assets and liabilities | -16,860 | 32,257 | -49,118 | -152% |
| Financial result | -36,413 | 21,380 | -57,793 | -270% |
| RESULT BEFORE TAXES | 14,875 | 58,258 | -43,384 | -74% |
| Taxes | -1,399 | -978 | -421 | 43% |
| NET RESULT | 13,475 | 57,280 | -43,805 | -76% |
| Net result - share of non-recurring items | -6,527 | 2,855 | -9,382 | |
| Net result - normal operations | 20,002 | 54,425 | -34,423 | -63% |
4 The figures in brackets are the comparative figures for financial year 2022.
Annual results 2023
Regulated information, 08.02.2024, 8 am
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| NET RESULT | 13,475 | 57,280 |
| Attributable to: | ||
| Group Shareholders | 5,918 | 51,714 |
| Shareholders Group excluding non-recurring items | 12,445 | 48,859 |
| Third parties | 7,558 | 5,566 |
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
| NET RESULT – Shareholders Group | 5,918 | 51,714 |
| Adjustments to calculate EPRA earnings | ||
| To be excluded: | ||
| Result on disposals of investment properties | 4,733 | -478 |
| Changes in fair value of investment properties | 810 | 26,106 |
| Other result on portfolio | 2,793 | -3,920 |
| Changes in fair value of financial assets and liabilities | 16,860 | -32,257 |
| Minority interests with respect to the above | 6,286 | 4,302 |
The rental income of Intervest over 2023 amounts to € 81.1 million (€ 71.5 million). This represents an increase of € 9.6 million or 13% compared to the 2022 financial year, despite the severance payment included in the 2022 rental income in the amount of € 2.9 million received from tenant Enterprise Services Belgium at the beginning of the previous financial year as a result of the early return of part of their rented area in Mechelen Business Tower (to improve the basis for comparison, this severance payment is presented separately as a one-off element in the figures of 2022). The organic rental growth, without taking into account this severance payment amounts to € 11.1 million or 16% and is mainly driven, notably 10%, by the realised rental growth from the developments projects in Zeebrugge, Genk, Herentals and 's-Hertogenbosch delivered during 2022 and 2023 and by the indexation of the leases, 7%.
EPRA EARNINGS 37,401 45,467 EPRA EARNINGS excluding non-recurring items 43,928 42,612
The operating result before the portfolio result is € 59.6 million (€ 58.6 million). This is an increase of € 1.0 million or 2% compared to 31 December 2022 resulting from an increase in rental income partly offset by mainly an increase in property charges and general costs. The increase in property charges is caused by an increase in property management costs and price increases in utilities and other costs that cannot be recovered. The increase in general costs is explained, on the one hand, by the various fees of advisors in connection with the voluntary and conditional public takeover bid of European Real Estate Holdings NV (an entity controlled by TPG). Intervest is assisted by Allen & Overy as legal advisor and by Lazard as financial advisor. On the other hand, the company is currently undergoing a strategic transformation, aligning its organisation with its strategy. In that context, a number of severance payments were made in the first half of 2023, including the ex-ceo's severance payment. Moreover, the internal focus is on the divestment of the offices portfolio, as a result of which salary costs previously attributed to the acquisition and development pipeline now remain more at the expense of the EPRA earnings.
The operating result before the portfolio result without taking into account the one-off elements described above is € 65.8 million for financial year 2023 compared to € 55.7 million in 2022, representing a rise of € 10.14 million or 18%.
The operating margin is 74% for 2023, compared to 82% for the same period last year. Excluding the one-off elements already described, the operating margin is 81% in 2023 compared to 81% in the 2022 financial year.
Annual results 2023
Regulated information, 08.02.2024, 8 am
The result on sale of investment properties amounted to -€ 4.7 million. It concerns the result on the sale of four office sites, an office building in Antwerp (Gateway), an office building in Hoeilaart, two office buildings in Dilbeek and one in Zellik. The sites, with the exception of Zellik, were already recorded on the balance sheet as assets held for sale.
The changes in fair value of investment properties for the 2023 financial year amount to -€ 0.8 million (-€ 26.1 million).
The other result on portfolio at 31 December 2023 amounts to -€ 2.8 million (€ 3.9 million) and mainly includes the change in deferred taxes on unrealised capital gains on the investment properties owned by Intervest's perimeter companies in the Netherlands and Belgium and the change in fair value of the assets held for sale.
The financial result (excluding changes in fair value of financial assets and liabilities) for the 2023 financial year amounts to -€ 19.6 million compared to -€ 10.9 million at 31 December 2022. The increase of € 8.7 million is mainly a result of a higher average capital drawdown and the increase in euribor rates, as well as a lower drawdown in commercial paper partly offset by higher interest rate hedges.
The changes in fair value of financial assets and liabilities include the change in the market value of interest rate swaps that cannot be classified as cash-flow hedging instruments, for an amount of -€ 16.9 million (€ 32.3 million).
The net result for 2023 is € 13.5 million (€ 57.3 million). The net result - shareholders Group at 31 December 2023 is € 5.9 million (€ 51.7 million) and can be broken down into:
-
the EPRA earnings of € 37.4 million (€ 45.5 million) or a decrease of € 8.1 million or 18% are mainly a combination of a sharp increase in interest charges, higher general costs and higher property charges partially recovered by, despite the elimination of the one-off severance payment received in 2022, an increase in rental income due to rental growth from the development projects delivered during 2022 and 2023 and the indexation of the leases. The EPRA earnings without taking into account the one-off elements described earlier amount to € 43.9 million in 2023 compared to € 42.6 million in 2022.
-
the portfolio result - shareholders Group of -€ 15.2 million (-€ 26.0 million)
-
the changes in fair value of financial assets and liabilities shareholders Group in the amount of -€ 16.2 million (€ 32.3 million).
The EPRA earnings 2023 amount to € 37.4 million compared to € 45.5 million last year. Taking into account 30,021,003 weighted average number of shares, the EPRA earnings per share amount to € 1.25 compared to € 1.71 for 2022 with an average number of shares of 26,664,878.
The decrease of € 0.46 can be explained by:
-
-€ 0.22: costs and provisions of costs in function of the TPG takeover bid amounting to € 5.9 million
-
-€ 0.11: severance payment received of around € 3 million for Mechelen Business Tower in 2022
-
€ 0.47: increase in rental income due to rental growth from development projects, acquisitions and indexation of leases
-
-€ 0.33: increasing net interest charges by € 9.9 million, partly offset by € 1.6 million moratorium interest SIREF
-
-€ 0.09: increase in property charges of € 2.4 million due to lower capitalisation of salaries on projects, severance fees paid and an increase in vacancy and staff allowances due to high indexation rates
-
-€ 0.16: change in the number of shares due to the optional dividend, the contribution following the acquisition of ILWS and ABB executed in December 2022, where the weighted average number of shares increases more than 3 million
-
-€ 0.02: increase in taxes, mainly in the Netherlands due to higher rental income and adjustment in rates.
EPRA earnings per share excluding the one-off elements listed above amount to € 1.46 for 2023 compared to € 1.60 in 2022.
Regulated information, 08.02.2024, 8 am
3.2 Comments on the balance sheet for the financial year 2023
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 | Δ | Δ % |
|---|---|---|---|---|
| ACTIVA | ||||
| Non-current assets | 1,452,522 | 1,381,476 | 71,046 | 5% |
| Current assets | 21,653 | 47,304 | -25,651 | -54% |
| TOTAL ASSETS | 1,474,175 | 1,428,780 | 45,395 | 3% |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | 708,039 | 721,410 | -13,371 | -2% |
| Share capital | 278,375 | 264,026 | 14,349 | 5% |
| Share premiums | 228,247 | 219,354 | 8,893 | 4% |
| Reserves | 162,166 | 158,257 | 3,909 | 2% |
| Net result of financial year | 5,918 | 51,714 | -45,797 | -89% |
| Minority interests | 33,333 | 28,059 | 5,275 | 19% |
| Liabilities | 766,136 | 707,370 | 58,766 | 8% |
| Non-current liabilities | 642,834 | 564,849 | 77,985 | 14% |
| Current liabilities | 123,302 | 142,521 | -19,219 | -13% |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1,474,175 | 1,428,780 | 45,395 | 3% |
3.2.1 Assets
The non-current assets amount to € 1,453 million at 31 December 2023 (€ 1,381 million at 31 December 2022) and consist mainly of Intervest's investment properties. The fair value of the property portfolio at the end of 2023 is € 1,420 million (€ 1,333 million). This total fair value includes property available for lease of approximately € 1,339 million and development projects and land reserves of approximately € 81 million. The increase in the fair value of investment properties of € 86 million or 6% compared to 31 December 2022 can be explained as follows.
In Belgium's logistics portfolio - fair value increase of € 129 million or 21%
-
€ 58 million acquisition of investment properties and land reserves
-
€ 22 million investment in development projects and land reserves
-
€ 5 million investment in existing portfolio
-
Positive revaluation of € 44 million or 7%
In the Netherlands' logistics portfolio - fair value increase of € 1 million
-
€ 8 million investment in development projects and in existing portfolio
-
Negative revaluation of € 7 million or -2%
In the offices portfolio - decrease in fair value by -€ 44 million or -12%
-
€ 2 million investment in existing investment properties and projects
-
€ 4 million transfer from properties available for lease to available for sale
-
€ 5 million divestment
-
Negative revaluation of € 37 million or -11%
PRESS RELEASE Annual results 2023 Regulated information, 08.02.2024, 8 am
On 31 December 2023, the net value (fair value) of the share is € 21.89 (€ 23.72 on 31 December 2022). As the share price of the Intervest share (INTO:BB) on 31 December 2023 is € 20.70, the share is quoted at a discount of -5.4% to its net value (fair value) on the closing date.
EPRA NTA per share at the end of 2023 is € 22.24 (€ 23.50 at 31 December 2022).
3.2.2 Liabilities
The company's equity decreased by € 13 million in 2023 and amounts to € 708 million on 31 December 2023, represented by 30,825,122 shares (29,235,067 shares on 31 December 2022).
At the time a building is sold, previously accumulated accumulated unavailable reserves attributable to this building are realised and thus available for distribution. However, in some cases, these accumulated unavailable reserves can also be negative and thus negatively impact the balance of available reserves.
Thus, the current sale process of the offices portfolio and the timing of individual divestments could affect the future amount available for dividend distribution to a large extent and potentially even offset it entirely.
Non-current liabilities increased by € 78 million, this increase mainly on financial debts and an additional concession debt following the acquisition of Gent Skaldenstraat.
Current liabilities at 31 December 2023 amount to € 123 million, down € 19 million from 31 December 2022. Current liabilities at year-end include € 86 million in financial liabilities, € 24 million in trade debts and other current debts and € 13 million from deferred charges and accrued income.
3.3 Financial structure
The hedging ratio of the drawn down credits is 93% (72% at year-end 2022). These credits have fixed interest rates or are fixed by interest rate swaps. The average remaining duration is 4.0 years at 31 December 2023. The increase in the hedging ratio came about through the opening and extension in 2023 of IRSs through transactions with KBC Bank, ING Belgium, BNP Parisbas Fortis and Natixis. The notional amount is € 455 million (€ 280 million at year-end 2022).
On 31 December 2023, Intervest's total credit line amounts to € 823 million with an average remaining duration of the long-term credit lines of 3.6 years (4.0 years at year-end 2022), of which approximately € 147 million in undrawn committed credit lines (after hedging of issued commercial paper). These undrawn credit lines can be used to finance ongoing development projects. By the end of 2023, Intervest has € 155 million or 19% green financing. Per 31 December 2023, € 47 million or 5.7% of the financings have a maturity date within one year. Through the commercial paper programme, € 32 million has been drawn in the short term and € 8 million in the long term at year-end 2023.
The average interest rate of the financings is 3.1% including bank margins at 31 December 2023 (2.0% at 31 December 2022).
The debt ratio is 49.7% at the end of 2023.
Annual results 2023
Regulated information, 08.02.2024, 8 am
3.4 EPRA Awards – Gold
The Annual Report 2022 of Intervest has won yet another EPRA Gold Award during the annual conference of the European Public Real Estate Association (EPRA). It is the ninth time in a row that Intervest received a Gold Award for its Annual Report from this leading association that advocates the improvement of transparency and consistency in financial reporting. EPRA formulates recommendations in its BPR or Best Practice Recommendations that provide a framework of comparability in the real estate industry.
EPRA has also extended this to sustainability recommendations and reporting, namely the sBPR (sustainability BPR). The Intervest Sustainability Report 2022 received a second EPRA sBPR Gold Award, after two consecutive sBPR Silver Awards.
These Awards are a recognition of Intervest's continued efforts towards consistent and transparent reporting in the financial and sustainability areas.
3.5 Inclusion BEL®ESG index Euronext
The Intervest share was included in Euronext's BEL®ESG index, the top 20 companies in Belgium with a high performance in the field of environment, society and good governance (Environmental, Social, Governance - ESG).
4 Voluntary and conditional public takeover bid by TPG
On 17 October 2023, Intervest announced a voluntary and conditional public takeover bid for all its outstanding shares by European Real Estate Holdings NV, an entity wholly controlled by TPG. On 17 January 2024, the publication of the prospectus and response memorandum relating to this takeover bid was announced.
The main features of this takeover bid are:
-
Takeover offer in cash at a price of € 21.00 per share
-
52.2% premium to the closing price on 5 October 2023, the last day prior to the suspension of trading in the Intervest share by the FSMA on 6 October 2023
-
Unanimous support from Intervest's Supervisory Board and Management Board
-
The initial acceptance period for shareholders to tender their shares began on 18 January 2024 and will end on 21 February 2024 at 16:00 (4 pm) CET.
Intervest shareholders can find all necessary information about the Offer, including the prospectus, the response memorandum and the acceptance forms for offering their shares, on the following websites in Dutch, English and French:
-
Intervest's website, www.intervest.be/en/takeover-offer
-
TPG's microsite, www.bid-co-offer.be, under "Key Documents"
-
BNP Paribas Fortis' website, www.bnpparibasfortis.be/epargneretplacer (in French and English), www.bnpparibasfortis.be/sparenenbeleggen (in Dutch and English) and KBC's website, www.kbc.be/intervest (in Dutch, French and English).
Regulated information, 08.02.2024, 8 am
5 Financial calendar 2024
| 22 March 2024 | Publication annual report 2023 |
|---|---|
| 24 April 2024 | General meeting of shareholders |
| 29 April 2024 | Interim statement on the results as at 31 March 2024 |
| 3 May 2024 | Ex dividend date |
| 6 May 2024 | Record date dividend |
| 1 August 2024 | Half-yearly financial statement as at 30 June 2024 |
| 7 November 2024 | Interim statement on the results as at 30 September 2024 |
For potential changes, please refer to the financial calendar on the Intervest website: www.intervest.eu.
6 Corporate Governance
The first half of 2023 a number of organisational changes took place in the company. At the general meeting of shareholders on 26 April 2023, the co-optation by the Supervisory Board of Dirk Vanderschrick as a member of the Supervisory Board was ratified. Also at the same general meeting, Patricia Laureys was appointed as an independent member of the Supervisory Board.
Joël Gorsele was appointed as Intervest's new ceo on 26 April 2023, following the departure of Gunther Gielen. Joël has more than 15 years of real estate experience within various management, commercial and financial positions. As chief investment officer (CIO) of Intervest, Joël has led the investment team in recent years, resulting in the growth of the logistics property portfolio.
For more information on Intervest's decision-making bodies, we refer to the company's website under Intervest > Corporate governance > Management bodies.
Gereglementeerde informatie, 08.02.2024, 18u00
7 Annexes
7.1 Condensed consolidated figures
7.1.1 Condensed consolidated income statement
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 | Δ | Δ % |
|---|---|---|---|---|
| Rental income | 81,081 | 71,474 | 9,607 | 13% |
| Rental-related expenses | -76 | -19 | -57 | 297% |
| Property management costs and income | 942 | 559 | 383 | 69% |
| Property result | 81,947 | 72,014 | 9,933 | 14% |
| Property charges | -10,984 | -8,566 | -2,418 | 28% |
| General costs and other operating income and costs | -11,340 | -4,862 | -6,478 | 133% |
| Operating result before portfolio result | 59,624 | 58,586 | 1,038 | 2% |
| Result on disposals of investment properties | -4,733 | 478 | -5,211 | -1,089% |
| Changes in fair value of investment properties | -810 | -26,106 | 25,296 | -97% |
| Other result on portfolio | -2,793 | 3,920 | -6,713 | -171% |
| Operating result | 51,287 | 36,878 | 14,409 | 39% |
| Financial result (excl. changes in fair value of financial assets and liabilities) | -19,552 | -10,877 | -8,675 | 80% |
| Changes in fair value of financial assets and liabilities | -16,860 | 32,257 | -49,118 | -152% |
| Taxes | -1,399 | -978 | -421 | 43% |
| NET RESULT | 13,475 | 57,280 | -43,805 | -76% |
| Attributable to: | ||||
| Group Shareholders | 5,918 | 51,714 | -45,797 | -89% |
| Third parties | 7,558 | 5,566 | 1,992 | 36% |
| NET RESULT - Group share | 5,918 | 51,714 | -45,797 | -89% |
| Note: | ||||
| EPRA earnings | 37,401 | 45,467 | -8,066 | -18% |
| Result on portfolio - Group share | -15,238 | -26,010 | 10,771 | -41% |
| Changes in fair value of financial assets and liabilities - Group share | -16,245 | 32,257 | -48,502 | -150% |
| RESULT PER SHARE - GROUP | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Number of shares entitled to dividend | 30,825,122 | 29,235,067 |
| Weighted average number of shares | 30,021,003 | 26,664,878 |
| Net result (in EUR) | 0.20 | 1.94 |
| Diluted net result (in EUR) | 0.20 | 1.94 |
| EPRA earnings (in EUR) | 1.25 | 1.71 |
Regulated information, 08.02.2024, 8 am
7.1.2 Condensed consolidated statement of comprehensive income
| in EUR x 1,000 31.12.2023 |
|||
|---|---|---|---|
| NET RESULT | 13,475 | 57,280 | |
| Other components of comprehensive income | -4,103 | 5,486 | |
| Revaluation of other non-current tangible assets | -4,103 | 5,486 | |
| COMPREHENSIVE INCOME | 9,372 | 62,766 | |
| Attributable to: | |||
| Shareholders of the parent company | 2,836 | 55,448 | |
| Minority interests | 6,536 | 7,318 |
7.1.3 Condensed consolidated balance sheet
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 | Δ | Δ % |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | 1,452,522 | 1,381,476 | 71,046 | 5% |
| Current assets | 21,653 | 47,304 -25,651 | -54% | |
| TOTAL ASSETS | 1,474,175 | 1,428,780 | 45,395 | 3% |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | 708,039 | 721,410 | -13,371 | -2% |
| Share capital | 278,375 | 264,026 | 14,349 | 5% |
| Share premiums | 228,247 | 219,354 | 8,893 | 4% |
| Reserves | 162,166 | 158,257 | 3,909 | 2% |
| Net result of financial year | 5,918 | 51,714 -45,797 | -89% | |
| Minority interests | 33,333 | 28,059 | 5,275 | 19% |
| Liabilities | 766,136 | 707,370 | 58,766 | 8% |
| Non-current liabilities | 642,834 | 564,849 | 77,985 | 14% |
| Current liabilities | 123,302 | 142,521 -19,219 | -13% | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1,474,175 | 1,428,780 | 45,395 | 3% |
7.2 EPRA Key performance indicators
EPRA (European Public Real Estate Association) is an organisation that promotes, helps develop and represents the European listed real estate sector, both in order to boost confidence in the sector and increase investments in Europe's listed real estate.
EPRA earnings★
Definition – The EPRA earnings are the operating result before result on portfolio minus the financial result and taxes and excluding changes in fair value of financial derivatives (which are not treated as hedge accounting in accordance with IAS 39) and other non-distributable elements based on the statutory annual account of Intervest Offices & Warehouses NV. The EPRA earnings per share are the EPRA earnings divided by the weighted average number of shares. This alternative performance measure is calculated on the basis of the company's consolidated annual account.
Purpose – The EPRA earnings measure the result of the strategic operational activities, excluding (i) the changes in fair value of financial assets and liabilities, and (ii) the result on portfolio (the profit or loss on investment properties that may or may not have been realised). This amounts to the result that is directly influenced by the real estate and the financial management of the company, excluding the impact accompanying the volatility of the real estate and financial markets. The EPRA earnings per share measure the EPRA earnings per weighted average number of shares and make it possible to compare these with the gross dividend per share.
Annual results 2023
Regulated information, 08.02.2024, 8 am
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Net result IFRS (Group share) | 5,918 | 51,714 |
| Adjustments to calculate EPRA earnings | ||
| To be excluded: | ||
| Result on disposals of investment properties | -4,733 | 478 |
| Changes in fair value of investment properties | -810 | -26,106 |
| Other result on portfolio | -2,793 | 3,920 |
| Changes in fair value of financial assets and liabilities | -16,860 | 32,257 |
| Minority interests with respect to the above | -6,286 | -4,302 |
| EPRA earnings A |
37,401 | 45,467 |
| Weighted average number of shares B |
30,021,003 | 26,664,878 |
| EPRA earnings per share (in EUR) =A/B |
1.25 | 1.71 |
EPRA Net Asset Value (NAV) indicators★
Definition – Net Asset Value (NAV) adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 2020.
Purpose – Makes adjustments to the NAV per the IFRS financial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, under three different scenarios:
-
EPRA Net Reinstatement Value (NRV) provides an estimation of the value required to rebuild the company through the investment markets based on its current capital and financing structure, including real estate transfer taxes.
-
EPRA Net Tangible Assets (NTA) assumes that the company buys and sells assets, thereby crystallising certain levels of unavoidable deferred tax. > EPRA Net Disposal Value (NDV) represents the value accruing to the company's shareholders under an asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax.
| in EUR x 1,000 | 31.12.2023 | 31.12.2022 | |||||
|---|---|---|---|---|---|---|---|
| EPRA NRV | EPRA NTA | EPRA NDV | EPRA NRV | EPRA NTA | EPRA NDV | ||
| IFRS Equity attributable to shareholders of the parent company |
674,706 | 674,706 | 674,706 | 693,352 | 693,352 | 693,352 | |
| Diluted NAV at fair value | 674,706 | 674,706 | 674,706 | 693,352 | 693,352 | 693,352 | |
| To be excluded: | (-) | -14,522 | -10,933 | 6,039 | 6,337 | ||
| − Deferred taxes in respect of the revaluation at fair value of investment properties |
-25,536 | -22,222 | -21,775 | -21,761 | |||
| − Fair value of financial instruments | 11,014 | 11,014 | 27,814 | 27,814 | |||
| − Non-current intangible assets according to the IFRS balance sheet |
274 | 284 | |||||
| To be added: | (+) | 63,747 | 11,838 | 62,353 | 20,174 | ||
| + Fair value of debts with fixed interest rate | 11,838 | 20,174 | |||||
| + Real estate transfer tax | 63,747 | 62,353 | |||||
| NAV | 752,975 | 685,639 | 686,544 | 749,666 | 687,015 | 713,526 | |
| Diluted number of shares | 30,825,122 | 30,825,122 | 30,825,122 | 29,235,067 | 29,235,067 | 29,235,067 | |
| NAV per share (in EUR) | 24.43 | 22.24 | 22.27 | 25.64 | 23.50 | 24.41 |
Annual results 2023
Regulated information, 08.02.2024, 8 am
EPRA Net Initial Yield (NIY) and EPRA adjusted NIY★
Definition
-
The EPRA NIY is the annualised gross rental income based on the contractual rents at the closing date of the annual accounts, less the property charges, divided by the market value of the portfolio increased by the estimated transaction rights and costs in the event of hypothetical disposal of investment properties.
-
The EPRA adjusted NIY incorporates a correction to the EPRA NIY for the expiration of rent-free periods (or other unexpired rent incentives such as a discounted rent period and tiered rents).
Purpose - an indicator for comparing real estate portfolios on the basis of yield.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 | |
|---|---|---|---|
| Investment properties and properties held for sale | 1,423,093 | 1,360,696 | |
| To be excluded: | |||
| Development projects intended for lease | (-) | 80,670 | 99,619 |
| Real estate available for rental | 1,342,423 | 1,261,076 | |
| To be added: | |||
| Estimated transfer rights and costs resulting from the hypothetical disposal of investment properties |
(+) | 64,226 | 61,170 |
| Investment value of properties available for lease - including property held by right of use | (B) | 1,406,649 | 1,322,247 |
| Annualised gross rental income | 81,814 | 72,614 | |
| To be excluded: | |||
| Property charges | -9,788 | -9,194 | |
| Annualised net rental income | (A) | 72,027 | 63,421 |
| Adjustments: | |||
| Rent at expiration of rent free periods or other lease incentives | 3,802 | 3,996 | |
| Annualised "topped-up" net rental income | (C) | 75,828 | 67,417 |
| EPRA NET INITIAL YIELD (in %) | (A/B) | 5.1% | 4.8% |
| EPRA ADJUSTED NET INITIAL YIELD (in %) | (C/B) | 5.4% | 5.1% |
EPRA vacancy rate★
Definition - The EPRA vacancy rate is the estimated rental value (ERV) of vacant space divided by ERV of the portfolio in its entirety.
Purpose - The EPRA vacancy rate measures the vacancy of the investment properties portfolio based on estimated rental value (ERV).
| 31.12.2023 | 31.12.2022 | ||||
|---|---|---|---|---|---|
| Segment | Leasable space | Estimated rental value (ERV) on vacancy |
Estimated rental value (ERV) |
EPRA vacancy rate |
EPRA vacancy rate |
| (in m² x 1,000) | (in EUR x 1,000) | (in EUR x 1,000) | (in %) | (in %) | |
| Offices | 200 | 4,042 | 26,734 | 15% | 24% |
| Logistics real estate in Belgium | 871 | 1,674 | 41,837 | 4% | 4% |
| Logistics real estate in the Netherlands | 359 | 870 | 24,757 | 4% | 0% |
| TOTAL PROPERTIES available for lease | 1,430 | 6,586 | 93,328 | 7% | 10% |
EPRA cost ratios★
Definition - The EPRA cost ratios are the administrative and operational expenditures (IFRS) (including and excluding direct vacancy costs) divided by gross rental income less compensations for leasehold estate and long-lease rights.
Annual results 2023
Regulated information, 08.02.2024, 8 am
Purpose - The EPRA cost ratios measure significant changes in the company's general and operational costs.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Administrative and operational expenditures (IFRS) | 21,457 | 12,888 |
| Rental-related expenses | 76 | 19 |
| Recovery of property charges | -1,163 | -1,249 |
| Recovery of rental charges | ||
| Costs payable by tenants and borne by the landlord for rental damage and refurbishment |
1,138 | 1,629 |
| Other rental-related income and expenses | -918 | -939 |
| Property charges | 10,984 | 8,566 |
| General costs | 10,437 | 4,387 |
| Other operating income and costs | 903 | 475 |
| To be excluded: | ||
| − Compensations for leasehold estate and long-lease rights | -9 | -9 |
| EPRA costs (including direct vacancy costs) (A) |
21,448 | 12,879 |
| Vacancy costs | -1,688 | -1,086 |
| EPRA costs (excluding direct vacancy costs) (B) |
19,760 | 11,794 |
| Rental income less compensations for leasehold estate and long-lease rights (C) |
81,071 | 71,465 |
| EPRA cost ratio (including vacancy costs) (in %) (A/C) |
26.5% | 18.0% |
| EPRA cost ratio (excluding vacancy costs) (in %) (B/C) |
24.4% | 16.5% |
EPRA Loan-to-value (LTV) ★
Definition - The nominal financial debts, plus, where appropriate, the net debts/claims minus the cash and cash equivalents, constitutes the net debt (a). This is offset against the fair value of the property portfolio (including property held for sale) and intangible assets which together constitute the total property value (b).
The EPRA LTV provides some changes to IFRS reporting, the main concepts introduced are as follows:
-
in case of doubt, any capital that is not equity is considered as debt (regardless of its IFRS classification);
-
assets are recorded at fair value;
-
net debt is recorded at face value;
-
no adjustment related to IFRS16 is proposed, as these balances generally appear on both sides of the calculation;
-
the EPRA LTV is calculated on a proportional consolidation basis, i.e. the EPRA LTV includes the Group's share of net debt and net assets of joint ventures or material associates.
Purpose - The EPRA Loan-to-Value measures the ratio of debt to market value of the property portfolio. (a/b).
| in EUR x 1,000 | 31.12.2023 | |||
|---|---|---|---|---|
| Reported | Minority interest | Group share | ||
| To be added: | ||||
| − Loans from credit institutions | 540,591 | 33,805 | 506,786 | |
| − Commercial Paper | 40,000 | 40,000 | ||
| − Green Bond/USPP | 94,491 | 94,491 | ||
| − Net debts/receivables | 38,191 | 3,167 | 35,024 | |
| To be excluded: | ||||
| − Cash and cash equivalents | (-) | -3,123 | -202 | -2,922 |
| EPRA Net debt | (A) | 710,150 | 36,770 | 673,380 |
| To be added: | ||||
| − Property available for lease (incl. solar panels etc.) | 1,351,939 | 56,870 | 1,295,069 | |
| − Property available for sale | 3,200 | 3,200 | ||
| − Development projects and land reserves | 80,670 | 16,434 | 64,237 | |
| − Intangible assets | 274 | 1 | 273 | |
| − Financial assets | 4,103 | 2,052 | 2,052 | |
| EPRA Total property value | (B) | 1,440,187 | 75,357 | 1,364,830 |
| EPRA LTV | =(A/B) | 49.3% | 49.3% |
Annual results 2023
Regulated information, 08.02.2024, 8 am
| in EUR x 1,000 | 31.12.2022 | |||
|---|---|---|---|---|
| Reported | Minority interest | Group share | ||
| To be added: | ||||
| - Loans from credit institutions | 487,380 | 20,656 | 466,724 | |
| - Commercial Paper | 46,000 | 46,000 | ||
| - Green Bond/USPP | 94,382 | 94,382 | ||
| - Net debts/receivables | 35,600 | 8,021 | 27,579 | |
| To be excluded: | ||||
| - Cash and cash equivalents | (-) | -3,053 | -222 | -2,831 |
| EPRA Net debt | (A) | 660,309 | 28,455 | 631,854 |
| To be added: | ||||
| - Property available for lease (incl. solar panels etc.) | 1,248,391 | 40,617 | 1,207,774 | |
| - Property available for sale | 27,277 | 27,277 | ||
| - Development projects and land reserves | 99,619 | 14,598 | 85,021 | |
| - Intangible assets | 284 | 2 | 282 | |
| EPRA Total property value | (B) | 1,375,572 | 55,217 | 1,320,355 |
| EPRA LTV | =(A/B) | 48.0% | 47.9% |
7.3 Alternative performance measures
Alternative performance measures are criteria used by Intervest to measure and monitor its operational performance. The measures are used in the financial reporting, but they are not defined by an Act or in the generally accepted accounting principles (GAAP). The European Securities and Markets Authority (ESMA) issued guidelines which, as of 3 July 2016, apply to the use and explanation of the alternative performance measures. The alternative measures are indicated with ★ and include a definition, objective and reconciliation as required by the ESMA guidelines. The EPRA indicators that are considered as APM are included in the chapter "EPRA Key Performance Indicators".
Average interest rate of the financing★
Definition - The average interest rate of the financing of the company is calculated by the (annual) net interest charges and the capitalized intercalary interest, divided by the weighted average debt for the period (based on the daily withdrawal from the financing (credit facilities from financial institutions, bond loans, etc.)). This alternative performance measure is calculated on the basis of the company's consolidated annual accounts..
Purpose - The average interest rate of the financing measures the average financing cost of the debts and makes it possible to follow how it evolved in time, within the context of the developments of the company and of the financial markets.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 | |
|---|---|---|---|
| Net interest charges | (A) | 20,537 | 10,655 |
| Capitalized intercalary interests | (B) | 747 | 1,647 |
| Average debt for the period | (C) | 679,004 | 620,034 |
| Average interest rate of the financing (based on 360/365) (%) | =(A+B)/C | 3.1% | 2.0% |
Net debt/EBITDA★
Definition - The Net debt-EBITDA ratio is calculated by dividing long-term and short-term financial liabilities (less cash) by the operating result (before portfolio result) adjusted by depreciation.
Purpose - Net/debt / EBITDA indicates how many years it will take the company to repay its financial debt, assuming financial debt and EBITDA remain constant.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Financial debts | 676,014 | 628,826 |
| Cash and cash equivalents | -3,123 | -3,053 |
| Net debt (IFRS) A |
672,891 | 625,773 |
| Operating result before result on portfolio | 59,624 | 58,586 |
| Depreciations | 1,101 | 773 |
| EBITDA (IFRS) B |
60,725 | 59,359 |
| Net debt / EBITDA =(A/B) |
11.1 | 10.5 |
Annual results 2023
Regulated information, 08.02.2024, 8 am
Net result per share (Group share)★
Definition – The net result per share (Group share) is the net result as published in the income statement, divided by the weighted average number of shares (i.e. the total amount of issued shares less the own shares) during the financial year. This alternative performance measure is calculated on the basis of the company's consolidated annual accounts.
| Reconciliation | 31.12.2023 | 31.12.2022 | |
|---|---|---|---|
| Net result (Group share) (in EUR x 1,000) | (A) | 5,918 | 51,714 |
| Weighted average number of shares | (B) | 30,021,003 | 26,664,878 |
| Net result per share (Group share) (in EUR) | =(A/B) | 0.20 | 1.94 |
Net value per share★
Definition - Total shareholders' equity attributable to the equity holders of the parent company (therefore, after deduction of the minority interests) divided by the number of shares at the end of the year (possibly after deduction of own shares). This alternative performance measure is calculated on the basis of the company's consolidated annual accounts.
Purpose - The net value per share measures the value of the share based on the fair value of the investment properties and makes it possible to make a comparison with the stock exchange quotation.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 | |
|---|---|---|---|
| Shareholders' equity attributable to the shareholders of the parent company (in thousands EUR) | (A) | 674,706 | 693,352 |
| Number of shares at year-end | (B) | 30,825,122 | 29,235,067 |
| Net value per share (in EUR) | =(A/B) | 21.89 | 23.72 |
Operating margin★
Definition - The operating margin is the operating result before result on portfolio, divided by the rental income. This alternative performance measure is calculated on the basis of the company's consolidated annual accounts.
Purpose - The operating margin provides an indication of the company's possibility of generating profit from its operational activities, without taking the financial result, the taxes or the result on portfolio into account.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 | |
|---|---|---|---|
| Operating result before result on portfolio | (A) | 59,624 | 58,586 |
| Rental income | (B) | 81,081 | 71,474 |
| Operating margin (%) | =(A/B) | 74% | 82% |
Result on portfolio and result on portfolio (Group share)★
Definition - The result on portfolio comprises (i) the result on disposals of investment properties, (ii) the changes in fair value of investment properties, and (iii) the other result on portfolio. This alternative performance measure is calculated on the basis of the company's consolidated annual accounts.
Purpose - The result on portfolio measures the realised and non-realised profit and loss related to the investment properties, compared with the valuation of the independent property experts at the end of previous financial year.
| Reconciliation in EUR x 1,000 | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Result on disposals of investment properties | -4,733 | 478 |
| Changes in fair value of investment properties | -810 | -26,106 |
| Other result on portfolio | -2,793 | 3,920 |
| Result on portfolio | -8,336 | -21,708 |
| Minority interest | -6,902 | -4,302 |
| Result on portfolio (Group share) | -15,238 | -26,010 |
7.4 Terminology
Acquisition value of a real estate property
This term is used to refer to the value at the purchase or the acquisition of a real estate property. If transfer costs are paid, they are included in the acquisition value.
Annual results 2023
Regulated information, 08.02.2024, 8 am
Capitalization factor
The capitalisation factor is the required rate of return determined by the property expert in the valuation report of an investment property.
Contractual rents
These are the gross indexed annual rents, laid down contractually in the lease agreements, as at closing date, and before rental discounts or other benefits granted to tenants have been deducted.
Corporate governance
Corporate governance as such is an important instrument for the ongoing improvement of management of the real estate company and for the safeguarding of the shareholders' interest.
Debt ratio
The debt ratio is calculated as the ratio of all obligations (excluding provisions, deferred charges and accrued income) excluding the negative variations in the fair value of the hedging instruments in relation to the total of the assets. The calculation method of the debt ratio is in accordance with Article 13 §1 second subparagraph of the Royal Decree of 13 July 2014. In this Royal Decree, the maximum debt ratio for the real estate company is set at 65%.
Diluted net result per share
The diluted net result per share is the net result as published in the income statement, divided by the weighted average of the number of shares adapted before the effect of potential ordinary shares that result in dilution.
Estimated rental value (ERV)
The estimated rental value is the rental value determined by the independent property experts.
Fair value of an investment property
This is equal to the amount at which a building could be exchanged between well-informed parties, in agreement and acting in conditions of normal competition. From the seller's point of view, this must be understood as subject to deduction of registration fees and any costs. Specifically, this means that the fair value of the investment properties is equal to the investment value divided by 1,025 (for buildings with a value of more than € 2,5 million) or the investment value divided by 1,10/1,125 (for buildings with a value of less than € 2,5 million). For the investment properties of Intervest located in the Netherlands and kept through the Dutch subsidiaries, this means that the fair value of the investment properties is equal to the investment value divided by 1,09.
Free float
Free float is the percentage of shares owned by the public. According to the EPRA and Euronext definition it concerns all shareholders possessing individually less than 5% of the total number of shares.
Gross dividend yield
The gross dividend yield is the gross dividend divided by the share price on closing date.
Gross yield (at full letting)
Yield is calculated as the ratio of contractual rents (whether or not increased by the estimated rental value of unoccupied rental premises) and the fair value of investment properties available for rent. It concerns a gross yield, without taking into account the allocated costs.
Institutional regulated real estate company (IRREC)
The institutional RREC is stipulated in the Act of 12 May 2014 concerning regulated real estate companies, as amended from time to time (the RREC Act) and in the Royal Decree of 13 July 2014 concerning regulated real estate companies, as amended from time to time (the RREC Royal Decree). It is a lighter form of the public RREC. It offers the RREC the possibility to extend specific tax aspects of its system to its perimeter companies and to realise partnerships and specific projects with third parties.
Interest cover ratio
The interest cover ratio is the ratio between the operating result before result on portfolio and the financial result (excluding the changes in fair value of financial derivatives).
Intervest
Intervest is the abridged name for Intervest Offices & Warehouses, the full legal name of the company.
Investment value of a real estate property
This is the value of a building estimated by the independent property expert, and including the transfer costs without deduction of the registration fees. This value corresponds to the formerly used term "value deed in hand".
Annual results 2023
Regulated information, 08.02.2024, 8 am
Liquidity of the share
Ratio of the number of traded shares on one day and the number of shares.
Net dividend
The net dividend equals the gross dividend after deduction of 30% withholding tax. The withholding tax on dividends of public regulated real estate companies amounts to 30% (except in case of certain exemptions) as a result of the Programme Act of 25 December 2016, published in the Belgian Official Gazette of 29 December 2016.
Net dividend yield
The net dividend yield is equal to the net dividend divided by the share price on closing date.
Net value per share
Total shareholders' equity attributable to the equity holders of the parent company (therefore, after deduction of the minority interests) divided by the number of shares at the end of the year (possibly after deduction of own shares). It corresponds to the net value as defined in article 2, 23° of the RREC Act.
The net value per share measures the value of the share based on the fair value of the investment properties and makes it possible to make a comparison with the stock exchange quotation.
Net yield (at full letting)
The net yield is calculated as the ratio of the contractual rent (whether or not increased by estimated rental value on vacancy), less the allocated property charges, and the fair value of investment properties available for rent.
Occupancy rate
The occupancy rate is calculated as the ratio between the estimated rental value (ERV) of the rented space and the estimated rental value of the total portfolio available for rent as at closing date.
Organic Growth
The organic growth concerns the rental income growth of the existing portfolio, including the completed and leased projects, excluding acquisitions.
Regulated real estate company (RREC)
The status of regulated real estate company is regulated by the Act of 12 May 2014 on regulated real estate companies, as modified from time to time (RREC Act) and by the Royal Decree of 13 July 2014 on regulated real estate companies, as modified from time to time (RREC Royal Decree) in order to stimulate joint investments in real estate properties.
Return of a share
The return of a share in a certain period is equal to the gross return. This gross return is the sum of (i) the difference between the share price at the end and at the start of the period and (ii) the gross dividend (therefore, the dividend before deduction of the withholding tax).
RREC Act
The Act of 12 May 2014 on regulated real estate companies.
RREC Legislation
The RREC Act and the RREC Royal Decree.
RREC Royal Decree
The Royal Decree of 13 July 2014 on regulated real estate companies.
Specialised real estate investment fund (SREIF)
The Specialised Real Estate Investment Fund falls under the Royal Decree of 9 November 2016 with regard to specialised real estate investment funds. This system allows real estate investments in flexible and efficient funds.
Turnover rate
The turnover rate of a share is calculated as the ratio of the number of shares traded per year, divided by the total number of shares as at the end of the period.
Annual results 2023
Regulated information, 08.02.2024, 8 am
Disclaimer
Intervest Offices & Warehouses, having its registered office at Uitbreidingstraat 66, 2600 Antwerp (Belgium), is a public Regulated Real estate company, incorporated under Belgian law and listed on Euronext Brussels. This press release contains forward-looking information, forecasts, beliefs, opinions and estimates prepared by Intervest Offices & Warehouses, relating to the currently expected future performance of Intervest Offices & Warehouses and the market in which Intervest Offices & Warehouses operates. By their very nature, forward-looking statements involve inherent risks, uncertainties and assumptions, both general and specific, and risks exist that the forwardlooking statements will not be achieved. Investors should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in, or implied by, such forward looking statements. Such forwardlooking statements are based on various hypotheses and assessments of known and unknown risks, uncertainties and other factors which seemed sound at the time they were made, but which may or may not prove to be accurate. Some events are difficult to predict and can depend on factors on which Intervest Offices & Warehouses has no control. Statements contained in this press release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. This uncertainty is further increased due to financial, operational and regulatory risks and risks related to the economic outlook, which reduces the predictability
of any declaration, forecast or estimate made by Intervest Offices & Warehouses. Consequently, the reality of the earnings, financial situation, performance or achievements of Intervest Offices & Warehouses may prove substantially different from the guidance regarding the future earnings, financial situation,
performance or achievements set out in, or implied by, such forward-looking statements. Given these uncertainties, investors are advised not to place undue reliance on these forward-looking statements. Additionally, the forwardlooking statements only apply on the date of this press release. Intervest Offices & Warehouses expressly disclaims any obligation or undertaking, unless if required by applicable law, to release any update or revision in respect of any forward-looking statement, to reflect any changes in its expectations or any change in the events, conditions, assumptions or circumstances on which such forward looking statements are based. Neither Intervest Offices & Warehouses, nor its representatives, officers or advisers, guarantee that the assumptions underlying the forwardlooking statements are free from errors, and neither of them makes any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.
Intervest Offices & Warehouses NV (referred to hereafter as "Intervest") is a public regulated real estate company (RREC) under Belgian law, founded in 1996, of which the shares have been listed on Euronext Brussels (INTO) since 1999. Intervest invests in logistics real estate in Belgium and The Netherlands and in office buildings in Belgium. Investments are focused on up-to-date buildings and sustainable (re)development projects, located in strategic locations, with an eye on cluster formation and is aimed at first-rate tenants. The logistics segment of the portfolio in Belgium is located on the Antwerp - Brussels - Nivelles, Antwerp - Limburg - Liège, and Antwerp - Ghent - Bruges axes and, in the Netherlands, on the Moerdijk - 's Hertogenbosch - Nijmegen, Rotterdam - Gorinchem - Nijmegen and Bergen-op-Zoom - Eindhoven - Venlo axes. The office segment of the real estate portfolio focuses on the central cities with an important student population of Antwerp, Mechelen, Brussels and Leuven and their surroundings.
Intervest distinguishes itself in renting space by going beyond merely renting m². The company goes beyond real estate.
For more information: Intervest Offices & Warehouses NV, Joël Gorsele, ceo Vincent Macharis, cfo T. + 32 3 287 67 87
[email protected] https://www.intervest.eu/nl
VAT: BE0458623918 Register of legal entities Antwerpen