Quarterly Report • Jul 30, 2013
Quarterly Report
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Oevel 3 - 5.000 m2
of the board of directors for the period 01.01.2013 to 30.06.2013
Antwerp, 30 July 2013
| Sale non-strategic building with a gain of 15 % |
|---|
| Extension logistic site in Oevel delivered in June 2013 |
| Higher rental activity in the first semester of 2013 and active pipeline |
| Stable occupancy rate: 86 % on 30 June 2013 (86 % on 31 December 2012) |
| Increase in fair value of existing real estate portfolio of 1 %1 in the first semester of 2013 |
| Operating distributable result per share: € 0, 85 in the first semester of 2013 (- 5 %2) |
| Change to 90 % dividend pay-out ratio |
| Expected gross dividend 2013 between € 1,44 and € 1,53 per share (pay-out ratio of 90 %) (€ 1,76 for financial year 2012 pay-out ratio of 100 %) |
The operating distributable result of Intervest Offices & Warehouses has decreased in the first semester of 2013 to € 12,2 million or a decline of 5 % compared to the first semester of 2012. This result derives primarily from the decrease in rental income through the start of the new lease contract with PwC in Woluwe Garden at lower rental prices (with a fixed duration of 9 years).
This means that the operating distributable result for the first semester of 2013 amounts to € 0,85 per share, compared to € 0,90 in the first semester of 2012. On the basis of the half-yearly results and the forecast on 30 June 2013 the gross dividend for financial year 2013 will be lower than previous year.
The property investment fund expects that the operating distributable result for financial year 2013 will be between € 1,60 and € 1,70 per share. In the currently competitive environment it is essential that Intervest Offices & Warehouses can pursue the realization of its strategy. Investments in quality and herewith in the lettability of its buildings is crucial to exploit in the long run the valuepotential of the property investment fund. Therefore Intervest Offices & Warehouses has concluded that it is essential to lower the current pay-out ratio of 100 % to keep enough liquidity for investments in the portfolio. Compensations and refurbishment fees, received from terminated lease contracts, will therefore not be distributed but used for later refurbishment works as well as future investments in the real estate portfolio. Taking into account a pay-out ratio of 90 %, a gross dividend between € 1,44 and € 1,53 per share (€ 1,76 for financial year 2012) will be proposed to the shareholders. Based on the closing share price on 30 June 2013 (€ 17,89) this represents a gross dividend yield between 8,0 % and 8,6 %.
In the first semester of 2013 Intervest Offices & Warehouses has pursued the development projects in its existing logistic portfolio:
Oevel 3 - 5.000 m2
As at 30 June 2013, the occupancy rate of Intervest Offices & Warehouses amounts to 86 %, remaining unchanged compared to 31 December 2012:
Intercity Industrial Park - 15.252 m2
3 The occupancy rate is calculated as the ratio of the commercial rental income to the same rental income plus the estimated rental value of the vacant locations for rent. The commercial rental income is the contractual rental income and the rental income of already signed lease contracts regarding locations which are contractually vacant on balance sheet date.
Already 27 lease contracts have been concluded with new or existing tenants in the first semester of 2013, which is more than in the first semester of 2012. Furthermore, there is still a very active pipeline, namely regarding extensions for existing tenants. The occupancy rate of the office portfolio remains nevertheless under pressure through the remaining difficult situation on the Belgian office market.
During the first semester of 2013 new lease contracts have been signed for a total surface of 2.511 m² in 7 transactions, compared to the 3.200 m² in the first semester of 2012.
In 2013, the most important transactions are:
In the office portfolio in the first semester of 2013, current lease contracts have been renegotiated or prolonged for a surface of 10.187 m² in 16 transactions (on a total office portfolio of approximately 231.000 m²). For the same period in 2012, 18 transactions for a surface of 14.571 m² were renegotiated.
In 2013, the most important transactions are:
De Arend - 7.424 m2
Due to the growth of Cochlear we needed additional space for our offices on Mechelen Campus. Given the constructive partnership with Intervest Offices & Warehouses we decided to extend the space by approximately 1.000 m² and to prolong our contract in its entirety. Intervest Offices & Warehouses thinks along with us and offers therefore an important added value through THE professional elaboration of the COMPLETE design of the extension
Carl Van Himbeeck, General Manager, Cochlear Technology Center Belgium
Mechelen Campus - 60.768 m2
In the logistic portfolio, 3 new lease contracts have been concluded in first semester of 2013 for a total surface of 16.885 m². For the same period in 2012, only 1 transaction was concluded for a space of 1.482 m².
In 2013 these transactions are:
In the logistic portfolio, one lease contract for a surface of 7.088 m² has been prolonged with ThyssenKrupp Otto Wolff in the first semester of 2013 for the Ragheno building located Dellingstraat in Malines. For the first semester of 2012, 2 transactions were concluded for a space of 9.517 m².
Peter Swinkels, Managing Director, ThyssenKrupp Otto Wolff
Ragheno - 7.088 m2
Intervest Offices & Warehouses has sold its semiindustrial building located in Kortenberg, Jan-Baptist Vinkstraat 2 for an amount of € 14,2 million.
The property is a semi-industrial building consisting of storage space for archives (8.297 m² on ground level, comprising a mezzanine on 2 floors with a total surface area of 11.419 m²) with limited office space (724 m²). The entire building is let to the European Commission for a fixed period till 2022 at an indexed rent of € 1,1 million a year.
As the building is not intended for large-scale logistic activities, it fits insufficiently into the property investment fund's policy of investing in modern logistic buildings. With its specific function as storage space for archives, the building can rather be considered as a semi-industrial building and is consequently not strategic for the property investment fund. Furthermore, it is assumed that given the high rental price combined with the decreasing remaining rental period, the value of the building will probably evolve negatively in the coming years.
The transaction offers an opportunity for the property investment fund to sell the building for an attractive price. The sales price is namely 15 % above the carrying amount on 31 December 2012 which amounted to € 12,4 million. The building represents approximately 2 % of the total fair value of the real estate portfolio of the property investment fund on 31 December 2012.
The transaction was subject to registration rights. Herewith, the sale provided a gross initial yield of 7,1 %. The final transfer took place at the end of May 2013.
Guldendelle - 11.419 m²
| REAL ESTATE PATRIMONY | 30.06.2013 | 31.12.2012 | 30.06.2012 |
|---|---|---|---|
| Fair value of investment properties (€ 000) | 577.895 | 581.280 | 594.824 |
| Investment value of investment properties (€ 000) | 592.215 | 595.812 | 609.773 |
| Occupancy rate (%) | 86 % | 86 % | 86 % |
| Total leasable space (m²) | 603.356 | 614.308 | 638.720 |
In the first semester of 2013, the fair value of the real estate portfolio of the property investment fund has decreased by € 3 million and amounts on 30 June 2013 to € 578 million (€ 581 million on 31 December 2012). This decrease is mainly the combined effect of:
In the second quarter of 2013, the property investment fund has changed its property expert for the valuation of its logistic portfolio, whereby Stadim has been appointed as new expert instead of Jones Lang LaSalle. This change results from the termination of the current contract with Jones Lang LaSalle. Stadim has been chosen for its large expertise and important position regarding valuations of logistic properties4.
4 Source: Annex to Expertise News 458 of 14 June 2013.
Intervest Offices & Warehouses focuses its investment policy on high-quality professional real estate respecting the principles of risk diversification in the real estate portfolio based on building type as well as geographic spread. On 30 June 2013 the risk spread is as follows.
On 30 June 2013, the real estate portfolio of Intervest Offices & Warehouses consists of 58 % offices and 42 % logistic properties (on 31 December 2012: 61 % offices and 39 % logistic properties).
a
The Antwerp-Brussels axis is still the most important and most liquid office region of Belgium. The entire office portfolio of Intervest Offices & Warehouses is located in this region.
a 50% E19 (incl. Malines) b 38% Brussels c 12% Antwerp
a 58% Offices b 42% Logistic properties
c
b
Logistic properties
92 % of the logistic portfolio is located on the Antwerp-Malines axis (primarily the E19 and A12) and Antwerp-Liège (primarily the E313) which are the most important logistic axes in Belgium. Only 8 % of the properties are in the centre of the country, in the area of Brussels.
Evolution of the portfolio
Average duration of the office lease contracts until the next expiry date
On 30 June 2013, the average remaining duration of the lease contracts in the office portfolio is 4,2 years, which is almost stable compared to the situation on 31 December 2012 (4,3 years). For spaces above 2.000 m² it is 4,8 years (5,0 years on 31 December 2012)
For offices, the average rental period (starting from 1 July 2013) until the next expiry date is 4,2 years compared to 4,3 years on 31 December 2012. For large office tenants (above 2.000 m²) comprising 67 % of the office portfolio and having a great impact on the recurring rental income, the next expiry date (starting from 1 July 2013) is only within about 4,8 years (5,0 years on 31 December 2012). The lease contracts, expiring in the period 2013 - 2015, are thus mainly smaller spaces, representing a more limited risk to the total rental income of Intervest Offices & Warehouses.
Average duration of the logistic lease contracts until the next expiry date
For the logistic portfolio, the average remaining duration of the lease contracts with a surface above 10.000 m² is 3,8 years
For logistic properties the average duration of the lease contract until the next expiry date is 3,8 years on 30 June 2013, which is a decrease compared to 31 December 2012 when it reached 4,7 years. This decrease is due mainly to the sale of the building in Kortenberg of which the lease contract had a remaining duration till 2022. For important tenants (above 10.000 m² in storage halls) the next expiry date is only within 3,8 years (4,9 years on 31 December 2012).
The expiry dates are well spread over the coming years. On 30 June 2013, 3 % of the contracts have their expiry date in 2013. Only 13 % of the lease contracts have an expiry date in the coming 3 years.
The peak for 2016 comprises 7 % for tenant Deloitte of whom the departure to another location is already certain.
As most contracts are of the type 3/6/9, these tenants have the possibility to end their lease contracts every three years. Because Intervest Offices & Warehouses has several long-term agreements, not all lease contracts can be terminated after three years. This graph gives the first expiry dates of all lease contracts (this can be the end expiry date or an interim expiry date) and shows the hypothetical scenario whereby every tenant would terminate his lease contract by the first interim expiry date.
On 31 December 2012, approximately 13 % of the lease contracts had their expiry date in 2013. On 30 June 2013 this has decreased to 5 % through the prolongation of a number of lease contracts. On the basis of contacts with tenants the property investment fund expects that at least half of the them will prolong the lease contract after the interim expiry date.
| Property expert | Valued properties | Fair value (€ 000) |
Investment value (€ 000) |
|---|---|---|---|
| Cushman & Wakefield | Office buildings | 337.825 | 346.270 |
| Stadim | Logistic properties | 240.070 | 245.945 |
| TOTAL | 577.895 | 592.215 |
Intercity Business Park - 42.112 m2
In the first semester of 2013 take-up of office space on the Belgian office market has reached approximately 271.000 m² (of which approximately 199.000 m² in Brussels (including the periphery)). This is slightly lower than the average of the last five years.
Prime rents are currently stable. Net rents, namely in the Brussels periphery, are still under pressure and certainly on secondary locations. Owners still have to grant considerable incentives, rental discounts and/ or rent free periods to attract new tenants. On the other hand moving decisions are often postponed due to the economic uncertainty.
At the end of the first semester of 2013 investments in office real estate have reached already € 900 million, which is largely above the average of the total of the last four previous years. Top yields remain largely stable. A lower volume of office transactions is expected for the second semester of 2013 as less important sales are projected.
During the first semester of 2013, the rental market of semi-industrial and logistic buildings has performed properly. The total take-up amounts in the first semester of 2013 to approximately 626.000 m², which is a reasonably level considering the fragile economic situation and the limited economic growth. The activity is mainly concentrated on the axis Antwerp-Brussels. Prime rents are showing an upward trend through the limited vacancy and the absence of speculative projects. The expectation is that this trend will be pursued next months as the demand for qualitative logistic real estate will not decrease.
The investment market for logistic and semi-industrial real estate has reached a volume of € 153 million during the first semester. The major transaction is the purchase by WDP of a 75.000 m² distribution centre on Cargovil Vilvorde for € 46,1 million. Prime yields are slightly sharpening due to the limited offer and the growing attention of investors for this segment.
5 Source: Belgium Q2 Marketbeat Country Snapshot Belgium - Cushman & Wakefield.
For the first semester of 2013, rental income of the property investment fund amounts to € 19,9 million. This is a decrease of € 0,5 million or 2 % compared to the first semester of 2012 (€ 20,4 million), as a result mainly of the new lease contract with PwC at lower rental prices with a fixed duration till end 2021 in the office building Woluwe Garden.
The recovery of property charges shows in the first semester of 2013 an income of € 0,8 million (€ 0,9 million) and comprises for € 0,5 million refurbishment fees received from leaving tenants.
On 30 June 2013, property charges of the property investment fund amount to € 2,1 million (€ 2,3 million). This decrease of € 0,2 million comes mainly from lower vacancy costs and less other property charges.
General costs amount to € 0,6 million in the first semester of 2013 and have thus slightly decreased compared to the first semester of 2012 (€ 0,7 million).
The decrease in rental income ensures that the operating result before result on portfolio decreases by 3 %, or € 0,5 million to € 17,7 million (€ 18,3 million).
The result on disposals of investment properties comprises in the first semester of 2013 the gain of € 1,5 million realized on the sale of the semi-industrial building in Kortenberg (after deduction of sales costs and VAT revision) and a gain of € 0,6 million on the sale of parcel of land located in Merchtem.
The changes in fair value of investment properties amount in the first semester of 2013 to € 6,2 million (- € 0,2 million). This increase in fair value is the combined effect of:
The financial result (excl. changes in fair value - IAS 39) for the first semester of 2013 amounts to - € 5,5 million and remains herewith stable compared to the first semester of 2012 (- € 5,5 million). The average interest rate of the property investment fund for the first semester of 2013 amounts to approximately 3,8 %, including bank margins (3,8 %).
The changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) include the reduction of the negative market value of interest rate swaps that, in line with IAS 39, cannot be classified as cash flow hedging instruments, for an amount of € 1,9 million (- € 1,9 million).
6 Between brackets comparable figures of the first semester of 2012.
The net result of Intervest Offices & Warehouses for the first semester of 2013 amounts to € 22,8 million (€ 10,4 million) and may be divided into:
This generates per share for the first semester of 2013 an operating distributable result of € 0,85 (€ 0,90).
On the consolidated balance sheet non-current assets comprise mainly the investment properties of the property investment fund. On 30 June 2013, the fair value of these investment properties amounts to € 578 million (€ 581 million on 31 December 2012).
Current assets amount to € 11 million (€ 12 million on 31 December 2012) and consist of € 4 million in trade receivables, mainly advance billing of rents for the third quarter of 2013 and invoicing of service charges and property tax to tenants, executed in June 2013, of € 3 million in tax receivables and other current assets and of € 2 million in deferred charges and accrued income.
| KEY FIGURES PER SHARE | 30.06.2013 | 31.12.2012 | 30.06.2012 |
|---|---|---|---|
| Number of shares entitled to dividend | 14.424.982 | 14.199.858 | 14.199.858 |
| Net result per share (6 months/1 year/6 months) (€) | 1,58 | 0,51 | 0,73 |
| Operating distributable result (6 months/1 year/6 months) (€) |
0,85 | 1,75 | 0,90 |
| Net asset value (fair value) (€) | 19,02 | 19,18 | 19,40 |
| Net asset value (investment value) (€) | 20,02 | 20,21 | 20,43 |
| Net asset value EPRA (€) | 19,40 | 19,73 | 19,87 |
| Share price on closing date (€) | 17,89 | 20,12 | 19,40 |
| Premium (+) / discount (-) to net asset value (fair value) (%) |
-6 % | 5 % | 0 % |
| Debt ratio (max. 65 %) (%) | 51,1 % | 51,2 % | 52,1 % |
On 30 June 2013, after payment of the dividend over 2012, the net asset value (fair value) of the share is € 19,02 (€ 19,18 on 31 December 2012). The share price on 30 June 2013 of the Intervest Offices & Warehouses share (INTO) is € 17,89. Herewith the share is quoted with a discount of 6 % compared to the net asset value (fair value).
For the dividend distribution of financial year 2012, the shareholders of Intervest Offices & Warehouses have chosen for 20,6 % of their shares for a contribution of their dividend rights in return for new shares instead of payment of the dividend in cash. This led on 23 May 2013 to a strengthening of the shareholders' equity of Intervest Offices & Warehouses by € 3,9 million (capital increase and share premium) through the creation of 225.124 new shares, bringing the total number of Intervest Offices & Warehouses' shares as from 23 May 2013 to 14.424.982 units. The new shares participate in the result of the property investment fund as of 1 January 2013.
Non-current liabilities mainly consist of non-current financial liabilities for an amount of € 234 million (€ 252 million on 31 December 2012). These comprise mainly € 160 million long-term bank financings of which the expiry date is situated after 30 June 2014 and of the bond loan issued in June 2010 for an amount of € 75 million.
Current liabilities amount to € 74 million (€ 61 million on 31 December 2012) and consist of € 62 million in current financial debts (bank loans with an expiry date before 30 June 2014), of € 4 million in trade debts and other current debts, and of € 8 million in accrued charges and deferred income.
The debt ratio of the property investment fund remains on 30 June 2013 almost stable compared to 31 December 2012 and amounts to 51,1 %7 (calculated in accordance with the Royal Decree of 7 December 2010).
The most important characteristics of the financial structure of Intervest Offices & Warehouses on 30 June 2013 are:
୭ 23 % short-term financings, consisting of financings with an unlimited duration and of 2 credit facilities for a total amount of € 25 million expiring within the year (December 2013 and January 2014) and which have to be refinanced.
a 77% Long-term credit facilities
୭ Spread of expiry dates of credit facilities between 2013 and 2022.
୭ Spread of financial debts over 5 European financial institutions and bondholders.
In order to guarantee a proactive policy of the debt ratio, a public property investment fund having a debt ratio higher than 50 %, should prepare a financial plan, pursuant to article 54 of the Royal Decree of 7 December 2010 relating to property investment funds. This plan contains an implementation scheme describing the measures to be taken to avoid that the debt ratio would exceed 65 % of the consolidated assets.
The policy of Intervest Offices & Warehouses consists in maintaining the debt ratio below 55 %.
On 30 June 2013 the consolidated debt ratio of Intervest Offices & Warehouses amounts to 51,1 %, exceeding herewith the threshold of 50 %. Such exceeding occurred the first time on 30 June 2012 with a debt ratio of 52,1 %. During its history the debt ratio of Intervest Offices & Warehouses has never transcended the threshold of 65 %.
The decrease of the debt ratio from 51,2 % on 31 December 2012 to 51,1 % on 30 June 2013 comes from the sale of a semi-industrial property in Kortenberg, the increase in value of the portfolio in the first semester of 2013 and the payment of the dividend of financial year 2012 in May 2013. The shareholders' equity of the property investment fund has at the moment of the dividend distribution been strengthened with approximately € 3,9 million as 20,6 % of the shareholders reinvested in new shares by means of the optional dividend.
On the basis of the current debt ratio of 51,1 % on 30 June 2013, Intervest Offices & Warehouses still has an additional investment capacity of approximately € 235 million8, without exceeding herewith the maximum debt ratio of 65 %. The capacity for further investments amounts to approximately € 131 million before exceeding the debt ratio of 60 %.
Valuations of the real estate portfolio also have an impact on the debt ratio. Taking into account the current capital structure, the maximum debt ratio of 65 % would only be transcended in case of a possible decrease in value of the investment properties by approximately € 126 million or 22 % compared to the real estate portfolio of € 578 million on 30 June 2013. In case of unchanged current rents, it means an increase of the yield, used for the valuation of the properties, of 2,1 % on average (from 7,4 % on average to 9,4 % on average). In case of unchanged yield used for the valuation of investment properties, it means a decrease of current rents of € 9,5 million or 22 %.
Wilrijk Neerland 1 and 2 29.168 m2
8 For this calculation the potentially realized investments are taken into account in the denominator of the fraction (debts for the calculation debt ratio/total assets).
Herentals Logistics 1 17.320 m2
Intervest Offices & Warehouses believes that the current debt ratio is at an acceptable level, offering a sufficient margin to absorb potential decreases in value of the investment properties.
On the basis of the current financial plan it is supposed that the debt ratio of Intervest Offices & Warehouses will fluctuate in the course of 2013 and 2014 between 49 % and 52 %, compared to 51,1 % on 30 June 2013.
This assessment takes into account the following elements:
This forecast can be influenced by unforeseen circumstances. In this respect reference is made specifically to the chapter "Major risk factors and internal control and risk management systems" of the Report of the board of directors of the Annual Report 2012.
The board of directors of Intervest Offices & Warehouses is of the opinion that the debt ratio will not exceed 65 % and that presently, given the current economic and real estate trend, the planned investments and the expected evolution of the shareholders' equity of the property investment fund, no additional measures have to be taken.
The property investment fund will follow the evolution of the debt ratio scrupulously, take necessary measures if an unforeseen event should occur having a relatively important impact on the forecast formulated in this plan and will if necessary communicate immediately.
Intervest Offices & Warehouses estimates the main risk factors and uncertainties for the remaining months of the financial year 2013 as follows:
As formulated in the Annual report 2012, the early prolongation of a number of important lease contracts in 2012 has resulted in increased guaranteed rental income in the long term. Many of these prolongations have been paired with lowering the rental price.
The property investment fund continues to focus in 2013 on keeping the stability of the occupancy rate (86 % on 31 December 2012) by prolonging existing lease contracts and attracting new tenants, however this being difficult due the precarious economic climate. Through the oversupply on the office market (certainly in the Brussels periphery) the number of transactions remains very limited and rents are still under pressure, whereby the occupancy rate of the office segment has decreased on 30 June 2013 to 82 %. Last months improvement has been observed in the number of demands and visits. In the logistic segment, the more limited offer of qualitative products is reflected in the occupancy rate of 93 % on 30 June 2013.
Besides the occupancy rate the property investment fund focusses on logistic developments in the existing portfolio. The extension project in Oevel has been delivered in the second quarter of 2013; meanwhile works in Wilrijk for the group PSA have started after obtaining the building permit in the second quarter of 2013 and will normally be finished in the fourth quarter of 2013. The commercialisation of the potential new construction in Herentals has started, for which the building permit has been obtained in the second quarter of 2013.
Furthermore, the property investment fund analyses investment opportunities for the expansion of its logistic portfolio and the sale of non-strategic buildings, namely in the office portfolio.
On the basis of the half-yearly results and the forecast on 30 June 2013 the gross dividend for financial year 2013 will be lower than previous year. The property investment fund expects that the operating distributable result for financial year 2013 will be between € 1,60 and € 1,70 per share. In the currently competitive environment it is essential that Intervest Offices & Warehouses can pursue the realization of its strategy. Investments in quality and herewith in the lettability of its buildings is crucial to exploit in the long run the valuepotential of the property investment fund. Therefore Intervest Offices & Warehouses has concluded that it is essential to lower the current pay-out ratio of 100 % to keep enough liquidity for investments in the portfolio. Compensations and refurbishment fees, received from terminated lease contracts, will therefore not be distributed but used for later refurbishment works as well as future investments in the real estate portfolio. Taking into account a pay-out ratio of 90 % a gross dividend between € 1,44 and € 1,53 per share (€ 1,76 for financial year 2012) will be proposed to the shareholders. Based on the closing share price on 30 June 2013 (€ 17,89) this represents a gross dividend yield between 8,0 % and 8,6 %.
| in thousands € | 30.06.2013 | 30.06.2012 |
|---|---|---|
| Rental income | 19.882 | 20.367 |
| Rental-related expenses | -31 | -29 |
| NET RENTAL INCOME | 19.851 | 20.338 |
| Recovery of property charges | 848 | 856 |
| Recovery of rental charges and taxes normally payable by tenants on let | ||
| properties | 3.241 | 4.513 |
| Costs payable by tenants and borne by the landlord for rental damage and | ||
| refurbishment | -262 | -221 |
| Rental charges and taxes normally payable by tenants on let properties | -3.241 | -4.514 |
| Other rental-related income and expenses | 43 | 244 |
| PROPERTY RESULT | 20.480 | 21.216 |
| Technical costs | -392 | -293 |
| Commercial costs | -82 | -136 |
| Charges and taxes on unlet properties | -383 | -507 |
| Property management costs | -1.214 | -1.174 |
| Other property charges | -56 | -152 |
| PROPERTY CHARGES | -2.127 | -2.262 |
| OPERATING PROPERTY RESULT | 18.353 | 18.954 |
| General costs | -630 | -700 |
| Other operating income and costs | 23 | 27 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 17.746 | 18.281 |
| Result on disposals of investment properties | 2.115 | 0 |
| Changes in fair value of investment properties | 6.245 | -165 |
| Other result on portfolio | 257 | -314 |
| OPERATING RESULT | 26.363 | 17.802 |
| in thousands € | 30.06.2013 | 30.06.2012 |
|---|---|---|
| OPERATING RESULT | 26.363 | 17.802 |
| Financial income | 100 | 5 |
| Net interest charges | -5.612 | -5.472 |
| Other financial charges | -2 | -7 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) |
1.937 | -1.945 |
| FINANCIAL RESULT | -3.577 | -7.419 |
| RESULT BEFORE TAXES | 22.786 | 10.383 |
| TAXES | -9 | -9 |
| NET RESULT | 22.777 | 10.374 |
| Note: | ||
| Operating distributable result | 12.223 | 12.798 |
| Result on portfolio | 8.617 | -479 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) |
1.937 | -1.945 |
| Attributable to: | ||
| Equity holders of the parent company | 22.778 | 10.375 |
| Minority interests | -1 | -1 |
| RESULT PER SHARE | 30.06.2013 | 30.06.2012 |
|---|---|---|
| Number of shares entitled to dividend | 14.424.982 | 14.199.858 |
| Net result (€) | 1,58 | 0,73 |
| Diluted net result (€) | 1,60 | 0,74 |
| in thousands € | 30.06.2013 | 30.06.2012 |
|---|---|---|
| NET RESULT | 22.777 | 10.374 |
| Changes in the effective part of fair value of authorised hedging instruments that are subject to hedge accounting |
293 | -58 |
| COMPREHENSIVE INCOME | 23.070 | 10.316 |
| Attributable to: | ||
| Equity holders of the parent company | 23.071 | 10.317 |
| Minority interests | -1 | -1 |
| ASSETS in thousands € | 30.06.2013 | 31.12.2012 |
|---|---|---|
| Non-current assets | 578.232 | 581.588 |
| Intangible assets | 40 | 45 |
| Investment properties | 577.895 | 581.280 |
| Other tangible assets | 282 | 248 |
| Trade receivables and other non-current assets | 15 | 15 |
| Current assets | 10.761 | 12.489 |
| Assets held for sale | 312 | 1.225 |
| Trade receivables | 3.941 | 4.860 |
| Tax receivables and other current assets | 3.427 | 3.211 |
| Cash and cash equivalents | 1.133 | 753 |
| Deferred charges and accrued income | 1.948 | 2.440 |
| SHAREHOLDERS' EQUITY AND LIABILITIES in thousands € | 30.06.2013 | 31.12.2012 |
|---|---|---|
| Shareholders' equity | 274.298 | 272.356 |
| Shareholders' equity attributable to the shareholders of the parent company | 274.261 | 272.318 |
| Share capital | 131.447 | 129.395 |
| Share premium | 65.190 | 63.378 |
| Reserves | 54.846 | 72.389 |
| Net result of the financial year | 22.778 | 7.156 |
| Minority interests | 37 | 38 |
| Liabilities | 314.695 | 321.721 |
| Non-current liabilities | 240.520 | 260.659 |
| Non-current financial debts | 234.417 | 252.253 |
| Credit institutions | 159.709 | 177.617 |
| Bond loan | 74.700 | 74.625 |
| Financial lease | 8 | 11 |
| Other non-current financial liabilities | 5.549 | 7.780 |
| Other non-current liabilities | 554 | 626 |
| Current liabilities | 74.175 | 61.062 |
| Provisions | 172 | 172 |
| Current financial debts | 61.719 | 48.018 |
| Credit institutions | 61.713 | 48.012 |
| Financial lease | 6 | 6 |
| Trade debts and other current debts | 3.853 | 2.822 |
| Other current liabilities | 190 | 354 |
| Accrued charges and deferred income | 8.241 | 9.696 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 588.993 | 594.077 |
| in thousands € | 30.06.2013 | 30.06.2012 |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR | 753 | 407 |
| 1. Cash flow from operating activities | 13.244 | 10.458 |
| Operating result | 26.363 | 17.802 |
| Interests paid | -7.391 | -6.814 |
| Other non-operating elements | 2.025 | -1.956 |
| Adjustment of result for non-cash flow transactions | -10.216 | 2.186 |
| Depreciations on intangible and other tangible assets ୭ |
81 | 77 |
| ୭ Result on disposals of investment properties |
-2.115 | 0 |
| ୭ Changes in fair value of investment properties |
-6.245 | 165 |
| Other result on portfolio ୭ |
-257 | 314 |
| ୭ Changes in fair value of financial assets and liabilities |
||
| (ineffective hedges - IAS 39) | -1.937 | 1.946 |
| ୭ Spread of rental discounts and rental benefits granted to tenants |
257 | -314 |
| Other non-cash flow transactions ୭ |
0 | -2 |
| Change in working capital | 2.463 | -760 |
| Movement of assets | 1.195 | -3.609 |
| Movement of liabilities | 1.268 | 2.849 |
| 2. Cash flow from investment activities | 12.548 | -9.657 |
| Acquisitions of investment properties | 0 | -7.966 |
| Investments in existing investment properties | -6 | -5.718 |
| Extensions of existing investment properties | -2.766 | 0 |
| Income from disposal of investment properties | 15.430 | 4.005 |
| Acquisitions of intangible and other tangible assets | -110 | 22 |
| 3. Cash flow from financing activities | -25.412 | -804 |
| Repayment of loans | -4.208 | -27.042 |
| Drawdown of loans | 0 | 45.000 |
| Repayment of financial lease liabilities | -3 | -3 |
| Receipts/repayments from non-current liabilities as guarantee | -72 | 90 |
| Dividend paid | -21.129 | -18.849 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE SEMESTER | 1.133 | 404 |
29
| Ne t re sul t of t he |
Tot al |
|||||
|---|---|---|---|---|---|---|
| Sh are |
Sh are |
fin ial anc |
Min orit y |
sha reh old ' ers |
||
| in t hou ds € san |
ital cap |
miu pre m |
Res erv es |
yea r |
inte ts res |
ity equ |
| 31 20 11 Ba lan at De ber ce cem |
12 6.7 29 |
60 .83 3 |
78 .39 8 |
18 .01 8 |
40 | 28 4.0 18 |
| Co reh ive inc f th e fi rst est 20 12 mp ens om e o sem er |
-58 | 10 .37 5 |
-1 | 10 .31 6 |
||
| Tra nsf th h r lt a lloc atio n 2 01 1: ers rou g esu |
||||||
| Tra nsf fro m t he ult tfo lio to the fo r th e b ala of ch er res on por re ser ves nce ang es in inv alu f re al e ties est nt v sta te me e o pro per |
1.2 45 |
-1. 24 5 |
0 | |||
| Tra nsf of imp fa ir v alu f e sti ted cti rig hts d c act tra ost er on e o ma nsa on an s ing fro eti di of in rtie ult m t he hyp oth cal sal tm ent res spo ves pr ope s |
-1. 36 5 |
1.3 65 |
0 | |||
| Tra nsf f c han in fair lue of fina nci al a ts a nd liab iliti to t he e fo er o ges va sse es res erv r the ba lan of c han in fair lue of hor ized he dg ing ins bje aut tru nts t su ct ce ges va me no |
||||||
| to hed tin ge acc oun g |
-4. 17 5 |
4.1 75 |
0 | |||
| All tio n t lts ried fo rd fro vio oca o r esu car rwa m pre us yea rs |
60 5 |
-60 5 |
0 | |||
| All tio n t the d m ino rity in ter est oca o o r re ser ves an s |
13 | -12 | -1 | 0 | ||
| Iss of sha fo tio nal di vid end fin ial r 2 01 1 ue res r o p anc yea |
2.6 66 |
2.5 45 |
5.2 11 |
|||
| Div ide nd fin ial r 2 01 1 anc yea |
-2. 36 4 |
-21 .69 6 |
-24 .06 0 |
|||
| Ba lan at 30 Ju 20 12 ce ne |
12 9.3 95 |
63 .37 8 |
72 .29 9 |
10 .37 5 |
38 | 27 5.4 85 |
| Ba lan 31 De ber 20 12 at ce cem |
12 9.3 95 |
63 .37 8 |
72 .38 9 |
7.1 56 |
38 | 27 2.3 56 |
| Co ive inc f th e fi 20 13 reh rst est mp ens om e o sem er |
29 3 |
22 8 .77 |
-1 | 23 .07 0 |
||
| Tra nsf th h r lt a lloc atio n 2 01 2: ers rou g esu |
||||||
| Tra nsf fro he ult tfo lio the fo r th e b ala of ch m t to er res on por re ser ves nce ang es in inv est nt v alu f re al e sta te ties me e o pro per |
-14 .62 5 |
14 .62 5 |
0 | |||
| Tra nsf of imp act fa ir v alu f e sti ted tra cti rig hts d c ost er on e o ma nsa on an s ult ing fro he hyp oth eti cal di sal of in rtie m t tm ent res spo ves pr ope s |
82 | -82 | 0 | |||
| Tra nsf of cha s in fa ir v alu f fi cia l as nd liab ilit ies the set to nge er e o nan s a re ser ve for th e b ala of ch in f air val of aut hor ize d h edg ing in str ent ot nce ang es ue um s n |
||||||
| sub jec he dge nti t to ac cou ng |
-3. 12 8 |
3.1 28 |
0 | |||
| All tio the d m ino rity in n t ter est oca o o r re ser ves an s |
-23 | 23 | 0 | |||
| of fo tio di vid fin ial r 2 01 2 Iss sha nal end ue res r o p anc yea |
2.0 51 |
1.8 12 |
3.8 63 |
|||
| Div ide nd fin ial r 2 01 2 anc yea |
-14 2 |
-24 .85 0 |
-24 .99 2 |
|||
| Ba lan 30 Ju 20 13 at ce ne |
13 1.4 47 |
65 .19 0 |
54 .84 6 |
22 .77 8 |
37 | 27 4.2 98 |
Condensed consolidated income statement by segment
30
| BU SIN ES S S EG ME NT |
Log | isti c |
||||||
|---|---|---|---|---|---|---|---|---|
| in t € hou ds san |
Offi | ces | pro | ties per |
Co rpo |
rat e |
Tot | al |
| 30 .06 .20 13 |
30 .06 .20 12 |
30 .06 .20 13 |
30 .06 .20 12 |
30 .06 .20 13 |
30 .06 .20 12 |
30 .06 .20 13 |
30 .06 .20 12 |
|
| Re nta l in com e |
12 .35 2 |
13 .04 1 |
7.5 30 |
7.3 26 |
19 .88 2 |
20 .36 7 |
||
| Re l-re late d e nta xpe nse s |
-13 | 1 | -18 | -30 | -31 | -29 | ||
| Pro d i ty ent sts per ma nag em co an nco me |
44 9 |
50 5 |
18 0 |
37 3 |
62 9 |
87 8 |
||
| OP SU PR ER TY RE LT |
12 .78 8 |
13 .54 7 |
7.6 92 |
7.6 69 |
20 .48 0 |
21 .21 6 |
||
| OP ER AT ING RE SU LT BE FO RE |
||||||||
| RE SU LT ON PO RT FO LIO |
12 .15 1 |
12 .92 2 |
7.4 57 |
7.2 62 |
-1. 86 2 |
-1. 90 3 |
17 .74 6 |
18 .28 1 |
| Res ult dis als of on pos inv ties est nt me pro per |
0 | 0 | 2.1 15 |
0 | 2.1 15 |
0 | ||
| Ch in f air val of ang es ue inv est nt ties me pro per |
-14 .19 3 |
-3. 16 2 |
20 .43 8 |
2.9 97 |
6.2 45 |
-16 5 |
||
| Oth ult tfo lio er res on por |
-60 | -12 3 |
31 7 |
-19 1 |
25 7 |
-31 4 |
||
| OP ER AT ING RE SU LT OF TH E SE GM EN T |
-2. 10 2 |
9.6 37 |
30 .32 7 |
10 .06 8 |
-1. 86 2 |
-1. 90 3 |
26 .36 3 |
17 .80 2 |
| Fin ial ult anc res |
-3. 57 7 |
-7. 41 9 |
-3. 57 7 |
-7. 41 9 |
||||
| Tax es |
-9 | -9 | -9 | -9 | ||||
| NE T R ES UL T |
-2. 10 2 |
9.6 37 |
30 .32 7 |
10 .06 8 |
-5. 44 8 |
-9. 33 1 |
22 .77 7 |
10 .37 4 |
| BU SIN ES S S EG ME NT : K EY FIG UR ES in t hou ds € Offi san ces |
Log isti c ties pro per |
Tot al |
||||
|---|---|---|---|---|---|---|
| 30 .06 .20 13 |
30 .06 .20 12 |
30 .06 .20 13 |
30 .06 .20 12 |
30 .06 .20 13 |
30 .06 .20 12 |
|
| Fai of in rtie lue tm ent r va ves pr ope s |
33 7.8 25 |
37 0.4 59 |
24 0.0 70 |
22 4.3 65 |
7.8 95 57 |
59 4.8 24 |
| Inv est nt v alu f in tm ent rtie me e o ves pr ope s |
34 6.2 70 |
37 9.7 20 |
24 5.9 45 |
23 0.0 53 |
59 2.2 15 |
60 9.7 73 |
| Tot al lea sab le s e ( m² ) pac |
23 1.1 09 |
23 1.1 09 |
37 2.2 47 |
40 7.6 11 |
60 3.3 56 |
63 8.7 20 |
| Oc of inv ties ( %) te est nt cup anc y ra me pro per |
82 % |
85 % |
93 % |
88 % |
86 % |
86 % |
The consolidated condensed half-yearly figures are prepared on the basis of the principles of financial reporting in accordance with IAS 34 "Interim financial reporting". In these condensed half-yearly figures the same principles and calculation methods are used as those used for the consolidated annual accounts as at 31 December 2012.
IFRS 13 - Fair Value Measurement is applicable on financial years starting from 1 January 2013 or later. This standard will modify the disclosure commitment of the property investment fund, depending on the classification of investment properties in level 1, 2 of 3. These disclosures will be recorded in the annual report regarding financial year 2013. IFRS 9 - Financial instruments is applicable on financial years starting from 1 January 2015 and will require additional disclosures in the annual report regarding financial year 2015.
| Investment properties | ||
|---|---|---|
| in thousands € | 30.06.2013 | 30.06.2012 |
| Amount at the end of the preceding financial year | 581.280 | 581.305 |
| Extensions of existing investment properties | 2.766 | 0 |
| Purchases of investment properties | 0 | 7.966 |
| Investments in existing investment properties | 6 | 5.718 |
| Disposals of investment properties | -12.402 | 0 |
| Changes in fair value of investment properties (+/-) | 6.245 | -165 |
| Amount at the end of the semester | 577.895 | 594.824 |
Extensions of existing investment properties in the first quarter of 2013 are related mainly to the extension of the logistic site in Oevel (€ 2,4 million). Disposals of investment properties comprise in the first semester of 2013 the sale of the semi-industrial building in Kortenberg, Jan-Baptist Vinkstraat 2.
For an update of the future minimum rental income as at 30 June 2013 is referred to the description of the evolution of the portfolio in paragraph 1.1. and 1.4 (supra) of the Interim management report.
An update of the financial structure of Intervest Offices & Warehouses as at 30 June 2013 is provided in paragraph 1.7. (supra) of the interim management report.
No new credit agreements or new hedging instruments/interest rate swaps have been concluded in the first semester of 2013.
In the first semester of 2013, there have been no changes in the off-balance sheet obligations of the property investment fund as described in note 25 of the Financial report of the Annual report 2012. In the case of the disputed assessments regarding the levy of exit tax on securisation premiums, the tax authorities have rejected one of the claims and the property investment fund prepares an appeal to the Court of First Instance. It is expected that this case can be pleaded in the course of 2014. Intervest Offices & Warehouses is currently waiting for the other claims to be processed further by the tax authorities.
There are no significant events to be mentioned that occurred after the closing of the accounts as at 30 June 2013.
INTERVEST OFFICES & WAREHOUSES SA, PUBLIC PROPERTY INVESTMENT FUND UNDER BELGIAN LAW LIMITED REVIEW REPORT ON THE CONSOLIDATED INTERIM FINANCIAL INFORMATION FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2013
We have performed a limited review of the accompanying consolidated condensed balance sheet, condensed income statement, condensed statement of comprehensive income, condensed cash flow statement, condensed statement of changes in equity and selective notes (jointly the "interim financial information") of Intervest Offices & Warehouses SA, public property investment fund under Belgian law ("the company") and its subsidiaries (jointly "the group") for the six-month period ended 30 June 2013.
The board of directors of the company is responsible for the preparation and fair presentation of this interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.
The interim financial information has been prepared in accordance with international financial reporting standard IAS 34 - Interim Financial Reporting as adopted by the European Union.
Our limited review of the interim financial information was conducted in accordance with international standard ISRE 2410 - Review of interim financial information performed by the independent auditor of the entity. A limited review consists of making inquiries of group management and applying analytical and other review procedures to the interim financial information and underlying financial data. A limited review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA). Accordingly, we do not express an audit opinion on the interim financial information.
Based on our limited review, nothing has come to our attention that causes us to believe that the interim financial information for the six-month period ended 30 June 2013 is not prepared, in all material respects, in accordance with IAS 34 - Interim Financial Reporting as adopted by the European Union.
Antwerp, 29 July 2013
The statutory auditor
DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises BV o.v.v.e. CVBA / SC s.f.d. SCRL
Represented by
Kathleen De Brabander
In accordance with article 13 § 2 of the Royal Decree of 14 November 2007, the board of directors, composed of Paul Christiaens (chairman), Nick van Ommen, EMSO sprl, permanently represented by Chris Peeters, Johan Buijs, Daniel van Dongen and Thomas Dijksman, declares that according to its knowledge,
These condensed half-yearly figures have been approved for publication by the board of directors of 29 July 2013.
Note to the editors: for more information, please contact:
INTERVEST OFFICES & WAREHOUSES SA, public property investment fund under Belgian law, Jean-Paul Sols - CEO or Inge Tas - CFO, T + 32 3 287 67 87, www.intervestoffices.be
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