Earnings Release • Aug 17, 2023
Earnings Release
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Press release - Regulated information from the sole director for the period from 01/01/2023 to 30/06/2023
Montea realises Track'24 a year ahead of schedule. Montea expects to close 2023 with an EPRA result of € 4.60 per share, consisting of € 4.40 linked to its recurring activities and € 0.20 as a one-off result further to Montea's recognition as FBI in the Netherlands for the financial year 2021.
Concomitantly, Montea increases the EPS ambition from its recurring operations for 2024 to € 4.50 per share. With this, Montea expects to achieve EPS growth of almost 30% over the period 2021-2024. A significantly better performance of the growth program Track'24 under which the EPS growth ambition over the 4-year period was 20%.
This strengthens Montea's conviction that it also meets all conditions for claiming the FBI status for the subsequent years (up to 2024). Given the uncertain nature for the years after 2021, accrued tax provisions for these years were not reversed for the time being, resulting in a potential additional future positive effect on the EPRA result
Access to the FBI regime for the period 2015 to 2020, as a result of which € 11.7 million will be recovered1
Increase 2023 guidance above the 2024 EPS target of Track'24
1 This recovery has no impact on the EPRA result, for more info see section "1.3 Important events and transactions during Q2 2023". On the date of publication of this press release, an amount of € 9.1 million has already been recovered.
2 Excluding solar panels.
| 1 | Management report5 | ||
|---|---|---|---|
| 1.1 | Key figures35 | ||
| 1.2 | Status Track'24 (at portfolio level)8 | ||
| 1.3 | Outlook Track'24 13 | ||
| 1.4 | Important events and transactions during the first half of 2023 15 | ||
| 1.5 | Financial results for the first half of the year closed on 30/06/202326 | ||
| 1.6 | Performance of the Montea share on the stock market exchange37 | ||
| 1.7 | Significant events after balance sheet date37 | ||
| 1.8 | Transactions between related parties39 | ||
| 1.9 | Main risks and uncertainties39 | ||
| 2 | Statement pursuant to article 13 of the Royal Decree of 14 November 2007 40 | ||
| 3 | Forward-looking statements41 | ||
| 4 | Financial calendar42 | ||
| Annexes 43 | |||
| ANNEX 1: EPRA Performance measures43 | |||
| ANNEX 2: Details on the calculation of APM's used by Montea48 | |||
| Annex 3: Consolidated overview of the profit & loss statement on 30/06/202352 | |||
| Annex 4: Consolidated overview of the balance sheet on 30/06/202353 | |||
| Annex 5: Consolidated overview of the changes in shareholders' equity on 30/06/2023 54 | |||
| Annex 6: Overview of the consolidated comprehensive income on 30/06/2023 55 | |||
| Annex 7: Overview of the consolidated cash flow statement 56 | |||
| Annex 8: Segment report: Consolidated overview of the profit & loss statement on 30/06/2023 per geographic region 57 |
|||
| region | Annex 9: Segment report: Consolidated overview of the balance sheet on 30/06/2023 per geographic 58 |
||
| Annex 10: Report of the independent real estate expert on 30/06/202359 | |||
| Annex 11: Report of the statutory auditor63 |
| 30/06/2023 | 31/12/2022 | 30/06/2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| BE | FR | NL | DE | 6 months | 12 months | 6 months | ||
| PROPERTY PORTFOLIO | ||||||||
| Property portfolio - buildings 1 | ||||||||
| Number of sites | $\frac{0}{0}$ | 40 | 18 | 34 | $\overline{2}$ | 94 | 92 99.4 |
87 99.9 |
| Occupancy rate 2 Total surface - property portfolio 3 |
m 2 | 100.0 858,353 |
100.0 213,293 |
100.0 813,561 |
100.0 35,965 |
100.0 1,921,172 |
1,890,029 | 1,750,947 |
| Investment value 4 | K€ | 940,879 | 249,221 | 959,527 | 35,023 | 2,184,650 | 2,151,050 | 2,009,918 |
| Fair value of the property portfolio 5 | K€ | 1,003,699 | 247,621 | 905,217 | 32,758 | 2,189,295 | 2,171,024 | 2,046,315 |
| Real estate | K€ | 919,752 | 232,839 | 865,941 | 32,758 | 2,051,290 | 2,019,489 | 1,897,246 |
| Projects under construction | K€ | 57,669 | 11,415 | 17,159 | 0 | 86,243 | 102,338 | 112,978 |
| Solar panels | K€ | 26,278 | 3,368 | 22,116 | 0 | 51,762 | 49,197 | 36,091 |
| Total surface - landbank | m 2 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2,345,238 | 2,401,318 | 1,943,662 |
| Acquired. valued in property portfolio | m 2 | ÷, | $\sim$ | $\overline{\phantom{0}}$ | 1,632,072 | 1,688,152 | 1,465,964 | |
| of which income generating | $\frac{0}{0}$ | ÷ | i. | i. | 72 | 73 | 67 | |
| Under control. not valued in property | ||||||||
| portfolio | m 2 | ٠ | 713,166 | 713,166 | 477,698 | |||
| CONSOLIDATED RESULTS | ||||||||
| Net rental result | K€ | $\overline{\phantom{0}}$ | $\bar{ }$ | $\overline{\phantom{a}}$ | ÷, | 52,031 | 90,889 | 42,693 |
| Property result | K€ | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\frac{1}{2}$ | 56,154 | 99,913 | 46,461 |
| Operating result before the portfolio result K€ | $\qquad \qquad -$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\frac{1}{2}$ | 49,452 | 91,020 | 41,891 | |
| Operating margin 6* | $\%$ | ÷ | $\overline{\phantom{a}}$ | i, | i, | 88.1 | 91.1 | 90.2 |
| Financial results (excl. changes in fair value of the financial instruments]" |
K€ | $-9,725$ | $-17,948$ | $-6,954$ | ||||
| EPRA RESULT8 | K€ | 67,738 | ||||||
| Weighted average number of shares | 42,288 18,059,302 |
16,538,273 | 32,513 16,239,519 |
|||||
| EPRA result per share 9* | € | $\overline{a}$ | $\blacksquare$ | $\overline{a}$ | 2.34 | 4.10 | 2.00 | |
| Result on disposals of investment | ||||||||
| properties | K€ | $\theta$ | 19 | 19 | ||||
| Changes in fair value of investment properties |
K€ | $-9,547$ | 92,864 | 121,481 | ||||
| Deferred taxes on the result on the portfolio |
K€ | 20,747 | $-14,570$ | $-17,523$ | ||||
| Result on the portfolio 10* | K€ | $\overline{a}$ | $\blacksquare$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | 11,200 | 78,312 | 103,976 |
| Changes in fair value of the financial instruments 11 |
K€ | $-1,572$ | 58,408 | 42,264 | ||||
| NET RESULT (IFRS) | K€ | 51,915 | 204,458 | 178,753 | ||||
| Net result per share | € | ÷. | ä, | $\blacksquare$ | ÷ | 2.87 | 12.36 | 11.01 |
| CONSOLIDATED BALANCE SHEET | ||||||||
| Balance sheet total | K€ | 2,280,386 | 2,327,712 | 2,148,053 | ||||
| Debts and liabilities for calculation of debt ratio |
K€ | 923,430 | 963,636 | 925,145 | ||||
| EPRA LTV 12* | $\%$ | 40.5 | 39.7 | 41.9 | ||||
| Debt ratio 13 | $\frac{0}{0}$ | $\overline{a}$ | ÷, | $\overline{\phantom{0}}$ | 41.2 | 42.1 | 43.6 | |
| Net debt / EBITDA (adjusted) 14 | x | 8.2 | 8.4 | 8.7 | ||||
| Hedge ratio | $\%$ | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | $\overline{a}$ | - | 97.2 | 96.0 | 88.1 |
| Average cost of debt | $\%$ | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\frac{1}{2}$ | 2.1 | 1.9 | 1.8 |
| Weighted average maturity of financial debt Y | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | 6.9 | 6.9 | 6.5 | |
| Weighted average maturity hedging contracts |
Υ | $\overline{a}$ | ÷ | 7.4 | 7.6 | 8.0 | ||
| IFRS NAV per share 15* | € | $\qquad \qquad -$ | $\overline{\phantom{a}}$ | $\omega$ | i, | 71.83 | 72.32 | 70.70 |
| EPRA NRV per share 16* | € | $\frac{1}{2}$ | i, | $\overline{\phantom{a}}$ | i, | 77.86 | 79.33 | 78.68 |
| EPRA NTA per share 17* | € | L, | $\overline{\phantom{a}}$ | i. | i, | 70.22 | 71.72 | 71.42 |
| EPRA NDV per share 18* | € | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\frac{1}{2}$ | 66.91 | 66.75 | 67.54 | |
| Share price 19 | € | $\overline{\phantom{0}}$ | $\overline{\phantom{m}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | 70.60 | 66.60 | 91.30 |
| Premium/discount | $\%$ | $\overline{\phantom{0}}$ | $\overline{a}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | $-1.7$ | $-7.9$ | 29.1 |
3 In accordance with the guidelines issued by the ESMA (European Securities and Markets Authority), the APMs (Alternative Performance Measures) used by Montea, including the EPRA performance indicators, are indicated in this press release with an asterisk (*), informing the reader that the definition concerns an APM. Performance indicators defined by IFRS rules or by law, as well as those that are not based on balance sheet or income statement headings, are not considered APMs. The detailed calculation of EPRA performance indicators and other APMs used by Montea is set out in appendix to this press release.
| 30/06/2023 | 30/06/2022 | ||
|---|---|---|---|
| EPRA earnings | $\epsilon$ /share | 2.34 | 2.00 |
| EPRA Net Reinstatement Value | €/share | 77.86 | 78.68 |
| EPRA Net Tangible Assets | $\epsilon$ /share | 70.22 | 71.42 |
| EPRA Net Disposal Value | €/share | 66.91 | 67.54 |
| EPRA cost ratio (incl. vacancy charges) | $\%$ | 13.1 | 10.4 |
| EPRA cost ratio (excl. vacancy charges) | $\%$ | 12.7 | 9.5 |
| 30/06/2023 | 31/12/2022 | ||
|---|---|---|---|
| EPRA Loan to value | $\%$ | 40.5 | 39.7 |
| EPRA Vacancy rate | $\%$ | 0.0 | 0.8 |
| EPRA Net Initial Yield | $\%$ | 5.03 | 4.83 |
| EPRA "Topped-up" Net Initial Yield | $\%$ | 5.03 | 4.85 |
Despite increased market volatility, a weakening macroeconomic outlook and higher interest rates, profitability, a controlled balance sheet and a strong liquidity position remain the focus in the further roll-out of Track'24. By bringing part of its spacious land bank of ca 2.3 million m² into development, Montea has a substantial in-house potential that can be developed at an average initial yield of at least 6% based on current construction and rental prices. Profitable investments into making our property portfolio even more sustainable are also at the core of our investment policy.
At the end of the second quarter 2023 Montea is ahead of schedule to achieve the targeted investment volume of more than € 800 million over the period from 2021 to 2024. Montea has an identified4 investment volume of € 671 million, € 559 million already realised and € 112 million in execution, at an average net initial yield of 5.6%, excluding the land bank5 :
At the end of 2022, Montea has signed a purchase promise for a development site of ca. 545,000 m² in Toury, located between Orléans and the Île de France region. Montea expects to purchase the site in the second half of 2023. The investment budget for this site is ca. € 21.5 million. Montea expects to start developing the site in the course of 2024.
5 Including land bank the net initial yield is 5.0%. 6 Included in the investment volume "in execution" on 30/06/2023.
4 The identified investment volume consists of the invested amount in the course of 2021, 2022 and the first half of 2023 and projects in execution. The identified investment volume does not yet include the development in Tiel for Intergamma as not all suspensive conditions have been met yet.
In the course of the first half of 2023 an area of ca. 31,000 m² of pre-let projects was delivered for a total investment amount of ca. € 31 million.
In the fourth quarter of 2022, in the context of the second phase under the structural cooperation with Cordeel, Montea acquired a site of ca. 187,000 m² in Tongeren. During the second quarter of 2023, the development of a first building of ca. 20,500 m² was delivered:
In addition, at the end of 2022, a land of ca. 22.000 m² was acquired in Vilvoorde, on which the development of a building of ca. 10,500 m² was started in the course of 2022. Montea could deliver this development in the second quarter of 2023:
In the course of the first half of 2023, Montea started the construction of a second distribution centre of ca. 33,500 m² in Tongeren (phase 2). In addition, Montea obtained the environmental permit for a sustainable redevelopment of ca. 20,000 m² located in Vorst, close to the centre of Brussels, and Montea started the preparations of a sustainable state-of-the-art cooling and freezing distribution centre in in Waddinxveen of ca. 50,000 m². The total investment budget for these developments amounts to ca. € 110 million with an average net initial yield of ca. 6.5%.
7 Included in the invested investment volume on 30/06/2023.
8 See press release of 04/01/2022 or www.montea.com for more information. 9 Partly included in the invested investment volume on 30/06/2023 and partly included in the investment volume "in execution" on 30/06/2023.
In a second phase under the structural cooperation with Cordeel, Montea acquired in the fourth quarter of 2022 a site of ca. 187,000 m² in Tongeren. A first building of ca. 20,500 m² was already delivered in the second quarter of 2023 (cfr. 1.2.2.1). Montea expects to deliver during the fourth quarter of 2023, the development of a second building of ca. 33,500 m²:
During the second quarter of 2023, Montea obtained the environmental permit for the redevelopment of its site located in Forest, close to the centre of Brussels. On this brownfield Montea will realise a sustainable development of approximately 20,000 m². During the third quarter of 2023, the remediation of the contaminated soil on the site will start:
In August 2020 Montea acquired a site of a total area of ca. 120,000 m² in Waddinxveen. In a first phase, Montea realised a distribution centre of ca. 50,000 m² leased to HBM Machines. In a second phase, Montea will develop a new sustainable state-of-the-art cooling and freezing distribution centre of ca. 50,000 m² for Lekkerland, part of the German REWE, provider of innovative retail solutions and logistics services. Montea expects to deliver this development in the course of the third quarter of 2024.
10 See press release of 04/01/2022 or www.montea.com for more information. 11 See press release of 17/07/2023 or www.montea.com for more information.
Montea puts sustainability high on its agenda. In 2023, Montea has the ambition to make € 30 million of sustainability investments, by, among other things, fully focusing on solar panels and energy-saving measures in the existing portfolio. These investments are part of Track'24 and were partly included in the invested investment volume on 30/06/2023 and partly included in the investment volume 'in execution' on 30/06/2023. These sustainability measures are further explained in the ESG section of this financial press release (cfr.1.4.4).
At the first half of 2023, Montea has a land bank of ca. 2,345,000 m², a large reserve to further realise its ambitions during the coming years. During the first half of 2023, the development of a second building on a site in Tongeren of ca. 56,000 m² was started in Belgium (cfr. 1.2.2.1).
| Country | Location | Land- bank |
Land (sqm) | GLA(sqm) | Delivery | Tenant | Lease duration |
CAPEX TRACK '24 2021-2024 |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BE | Antwerp | $13.000 \text{ m}^2$ | $4.300 \text{ m}^2$ | Q1 '21 | DHL Express | 15y | 11 M€ | ||||
| NL | Schiphol | $4.400 \; \mathrm{m}^2$ | $4.400 \text{ m}^2$ | Q1 '21 | Amazon Logistics | 10y | 1 M€ | ||||
| BE | Willebroek | $7.500 \; \mathrm{m}^2$ | $2.000 \, \text{m}^2$ | Q4 '21 | Dachser | 15 y | 3 M€ | ||||
| NL | Waddinxveen | $60.000 \; \text{m}^2$ | $50.000 \text{ m}^2$ | Q1 '22 | HBM Machines | 10y | 28 M€ | ||||
| NL | Waddinxveen | $60.000$ m 2 | $50.000 \text{ m}^2$ | Q3 '24 | Lekkerland Nederland B.V. | 15y | 34 M€ | ||||
| NL | Tiel | 31.800 m 2 | $9.700 \text{ m}^2$ | Q1 '22 | Re-Match | 20y | 9 M€ | ||||
| NL | Etten-Leur | 37.520 m 2 | $26.500$ m 2 | Q2 '22 | Raben Netherlands B.V. | 8 y | 15 M€ | ||||
| Developments & Land Positions |
BE | Antwerp | 38.000 m 2 | $8.500 \text{ m}^2$ | Q3 '22 | Amazon Logistics | 15y | 41 M€ | |||
| BE | Vorst | 54.600 m 2 | $20.000 \text{ m}^2$ | Q3 '24 | Confidential | 15y | 26 M€ | 48% | |||
| DE | Mannheim | X | 83.000 m 2 | FDT Flachdach | 9 y | 34 M€ | |||||
| DE | Leverkusen | X | $28.000 \text{ m}^2$ | TMD Friction Services | 2 y | 10 M€ | |||||
| BE | Tongeren | X | $95.000 \text{ m}^2$ | tbc | N.A. | 11 M€ | |||||
| BE | Tongeren | Χ | 89.000 m 2 | tbc | N.A. | 11 M€ | |||||
| BE | Lembeek | Χ | $55.000$ m 2 | tbc | N.A. | 10 M€ | |||||
| BE | Vorst | X | $6.000 \, \text{m}^2$ | tbc | N.A. | 2 M€ | |||||
| FR | St - Priest | X | $70.000 \; \text{m}^2$ | tbc | N.A. | 7 M€ | |||||
| FR | Toury | X | 545.000 m 2 | tbc | N.A. | 27 M€ | |||||
| Solar panels | 30 M€ | ||||||||||
| Other | 17 M€ | ||||||||||
| NL | Ridderkerk | $12.400 \text{ m}^2$ | $6.800 \; \mathrm{m}^2$ | Q2 '21 | VDH Forwarding & Warehousing 7 y | 11 M€ | |||||
| BE | Brussels | $35.000 \text{ m}^2$ | $20.000 \text{ m}^2$ | Q2 '21 | Van Moer Logistics | 10y | 10 M€ | ||||
| BE | Ghent | 15.500 m 2 | $9.400 \text{ m}^2$ | Q4 '21 | Publiganda | 3y | 8 M€ | ||||
| BE | Tongeren | 40.000 m 2 | $20.000$ m 2 | Q4 '21 | XPO | 3y | 20 M€ | ||||
| BE | Tongeren | 44.000 m 2 | $20.000 \text{ m}^2$ | Q4 '22 | Tailormade Logistics | 6 y | 24 M€ | ||||
| BE | Tongeren | 42.000 m 2 | 20.500 m 2 | Q1 '23 | Confidential | 6 y | 18 M€ | ||||
| BE | Tongeren | $56.000 \; \text{m}^2$ | 33.500 m 2 | Q4 '23 | BayWa r.e. Solar Systems | 6 y | 26 M€ | ||||
| nvestments | BE | Vilvoorde | 22.000 m 2 | 10.000 m 2 | Q1 '23 | Storopack Benelux | 10y | 12,9 M€ | |||
| Standing | NL | Zwolle | $60.000$ m 2 | $33.000 \text{ m}^2$ | Q1 '22 | PostNL | 8 y | 35 M€ | 52% | ||
| NL | 's Hertogenbosch | $50.000$ m 2 | $27.000 \text{ m}^2$ | Q1 '22 | PostNL | 4 y | 30 M€ | ||||
| NL | Tilburg | 20.000 m 2 | $6.000 \, \text{m}^2$ | Q1 '22 | Barsan | 9 y | 9 M€ | ||||
| NL | Alkmaar | $8.000 \; \mathrm{m}^2$ | $6.000 \, \text{m}^2$ | Q1 '22 | GVT Transport & Logistics | 10y | 7 M€ | ||||
| BE | Ghent | $46.000 \text{ m}^2$ | 27.000 m 2 | Q1 '22 | TransUniverse Forwarding | 6 y | 17 M€ | ||||
| NL | Berkel & Rodenrijs | $9.000 \, \text{m}^2$ | $4.000 \; \mathrm{m}^2$ | Q2 '22 | GVT Transport & Logistics | 10y | 7 M€ | ||||
| NL | Almere | 35.800 m 2 | 25.800 m 2 | Q2 '22 | Confidential | 18 y | |||||
| NL | Catharijne | $7.500 \; \text{m}^2$ | $4.000 \; \text{m}^2$ | Q2 '22 | Confidential | 10y | 62 M€ | ||||
| NL | Zeewolde | $54.000$ m 2 | 36.600 m 2 | Q2 '22 | Confidential | 10y | |||||
| NL | Echt | $13.000 \text{ m}^2$ | $6.000 \; \mathrm{m}^2$ | Q3 '22 | GVT Transport & Logistics | 10y | 8 M€ | ||||
| NL | Zwijndrecht | $64.000 \; \text{m}^2$ | 25.700 m 2 | Q3 '22 | Jiffy Products International | 14y | 30 M€ | ||||
| FR | Avignon | 26.500 m 2 | 12.700 m 2 | Q3 '22 | Rozenbal | 3y | 10 M€ | ||||
| Total | $1.938.520 \, \text{m}^2$ | 529.400 m 2 | 671 M€ |
Since the beginning of 2021 Montea has an identified12 investment volume of € 671 million, € 559 million already realised and € 112 million in execution, at an average net initial yield of 5.6% excluding the land bank13:
12 The identified investment volume consists of the invested amount in the course of 2021, 2022 and the first half of 2023 and projects in execution. The identified investment volume does not yet include the development in Tiel for Intergamma because not all conditions precedent have been fulfilled yet.
13 Including land bank, the net initial yield amounts to 5.0%.
Montea aims to uphold its strong fundamentals. Thanks to its focus on the type of customers and their activity, as well as on strategic locations with high added value, Montea succeeds in developing its real estate in an optimal fashion.
Demand for additional storage space is high. Logistics is gaining in importance due to key trends such as the uncertain global supply chain, building larger strategic inventories and reshoring. Demand is also compounded by the continued growth of the e-commerce sector. Montea tries to respond to these challenges by offering innovative real estate solutions. Furthermore, we also notice upward pressure on market rents due to land scarcity in various markets.
Profitability, a controlled balance sheet and a strong liquidity position remain the focus in the further roll-out of Track'24 despite increased market volatility, a weakening macroeconomic outlook and higher interest rates. By bringing part of its spacious land bank of ca. 2.3 million m² into development, Montea has a substantial in-house potential that can be developed at an average initial yield of at least 6% based on current construction and rental prices. Profitable investments into making our property portfolio even more sustainable are also at the core of our investment policy.
Montea is convinced it can play a crucial role in reducing the carbon footprint and energy costs of its customers. For this reason, sustainability investments are also part of the investment volume to be realised under Track'24. More than half of these planned sustainability investments consists of PV installations. On the other hand, Montea is also investing in energy improvements to the existing portfolio, for example by disconnecting the sites from the gas grid and switching to heat pumps, renewing and adding insulation to roofs and installing (additional) charging points.
Press Release: interim statement – Regulated information
As was the case on 31 March 2023, the occupancy rate remains at 100% on 30 June 2023 compared to 99.4% at year-end 2022. The calculation of this occupancy rate does not consider the unlet m² intended for redevelopment and the land bank.
Of the 9% of lease contracts that expire in 2023, 73% have already been extended or renewed.
No divestments took place during the first half of 2023.
Concerning the realisation of its real estate investments in the Netherlands, Montea, already back in 2013, submitted a request for the application of the 'Fiscale Beleggingsinstelling' (FBI) regime (as referred to in article 28 of the Corporate Tax Act of 1969) for Montea Nederland N.V. and its subsidiaries. Recently, for the financial years 2015 to 2021, the Dutch tax authorities recognized that Montea met the FBI requirements and therefore had no corporate tax liability for this period.
Montea Nederland N.V. 14 has taken the position in its corporate tax returns 2015 through 2020 that it qualifies for the FBI status as a result of which the corporate tax owed by it is zero. However, the Dutch inspector imposed (provisional) assessments based on the regular corporate tax rate. Given the applicable tax interest rate (in principle 8%), Montea has opted to pay these provisional assessments (being a total of € 11.7 million for these 6 years). Despite the fact that Montea did not (yet) have the FBI status, it kept its accounts for that period as if it already had FBI status.
Meanwhile, Montea Nederland N.V. was recognized as FBI for this period. This decision thus has no impact on the EPRA result. The total amount paid of €11.7 million can, however, be recovered.
As of 2021, Montea has, for the sake of caution, taken into account in the income statement the possibility that the FBI status could be refused, on account of the withdrawal of the tax ruling granted as of 1 January 2021 in the case of sufficiently similar Belgian REITs. As such, an extra tax provision, namely the difference between the fiscally FBI status and the regular taxed sphere, was booked in 2021.
Recently, Montea Nederland N.V. also received recognition as an FBI for 2021. As a result, the provision made in 2021 was reversed in the 2023 results, with a positive impact on the EPRA result of €3.6 million (€0.20 per share15). In addition, a deferred tax provision on property of € 21.2 million (€ 1.17 per share) was also reversed via the portfolio result (no EPRA result impact). The regular corporate income tax paid for 2021 will be recovered.
In 2022, and also in the provisions for 2023 and 2024, Montea takes into account, for the sake of caution, the possibility that the FBI status could be refused. In this sense, additional tax provisions were included in the (estimated) EPRA result from 2022 to 2024, being in each case the difference between the tax status of FBI
14 Including its Dutch subsidiaries.
15 Based on a weighted average number of shares of 18,059,302 for the first 6 months of 2023.
and the regularly taxed sphere. Initially created provisions were reduced in Q2 2023 to € 3.3 million for financial year 2022, € 3.4 million for financial year 2023 and € 4.4 million for financial year 2024 (previously € 4.4 million, € 5.8 million & € 6.1 million respectively) due to the reduction in the recurring tax burden on the Dutch activities following rising interest rates.
Because Montea has recently been granted FBI status for the period 2015 to 2021, Montea is strengthened in its conviction that it also meets all the conditions for claiming FBI status for the period 2022 to 2024. Such granting of FBI status would result in a future additional positive impact on the EPRA result for the amounts corresponding to the provisions made (total amount of € 11.1 million or € 0.61 per share). In addition, a positive impact of € 15.2 million on the portfolio result would also follow via reversal of the anticipated deferred tax on the property. Hence, should Montea not be granted the FBI status , there would be no impact on the estimated EPRA result for the period 2023-2024.
Supported by European law and granting of the status for the years 2015 to 2021, Montea's efforts remain focused on being granted the FBI status in the Netherlands from 2022 as well. The tax return will therefore be submitted as FBI (at least until 2024) since Montea continues to believe that it fulfils all the conditions to be able to claim FBI status.
Due to the announcement that a so-called real estate measure will be introduced in the corporate income tax, FBIs would no longer be able to invest directly in real estate as of 2025. Montea Nederland N.V. and its subsidiaries would therefore no longer be able to claim FBI status as from 2025. Real estate FBIs are expected to restructure before 2025. The cabinet response also indicated that flanking measures will be taken in 2024 to facilitate the restructuring of real estate FBIs.
| FBI OVERVIEW | 2015-2020 | 2021 | 2022-2023 | 2024 | 2025 | |||
|---|---|---|---|---|---|---|---|---|
| FBI status accounted for in financial accounts of Montea? | $\checkmark$ | $\checkmark$ | $\boldsymbol{\mathsf{x}}$ | $\boldsymbol{\mathsf{x}}$ | N/A | |||
| Withholding tax rate in financial accounts | 5% | 5% | 5% | 5% | N/A | |||
| Corporate Income tax rate in financial accounts/budget | 25.0% | 25.0% | 25% & 25.8% | 25.8% | 25.8% | |||
| Withholding tax | M€ | 2,3€ | $1,2 \in$ | $1,9 \in$ | $1,1 \in$ | |||
| 'Delta' to Corporate Income tax | M€ | $\overline{\phantom{m}}$ | $3,6 \in$ | $6.7 \in$ | $4,4 \in$ | |||
| Total Tax charges NL 1 in EPRA result (accounted/provisionned) |
M€ | 2,3€ | 4,8€ | 8,6€ | $5,5 \in$ | |||
| Potential EPRA result | GRANTED M€ | 3.6E | 6.7E | 4,4€ | ||||
| EPRA result | impact if FBI status is | NOT GRANTED M€ | N/A | N/A | ||||
| Portfolio | Potential Net result impact | GRANTED M€ | N/A | 21,2€ | 15,2€ | N/A | ||
| result | Ideferred taxes) if FBI status is | NOT GRANTED M€ | N/A | N/A | ||||
| Potential cash reimbursement | GRANTED | M€ | 11,7€ | 4,8€ | ||||
| Cash | if FBI status is | NOT GRANTED M€ | N/A | N/A |
We are looking ahead and making space for the future. Sustainability has been embedded in our DNA far longer than today: of course, we want to - and will - reduce our environmental footprint and are constantly collecting relevant data to that end. We want to use available space optimally and efficiently. This is ultimately the lynchpin of our business. In this way, we stay one step ahead of the market and ever-changing legislation and standards, striking a healthy balance with our relentless profit ambitions.
Based on the identified priority themes from the materiality matrix, our sustainable growth balance is inextricably linked to our overarching long-term strategy, that rests on three pillars:
Logistics real estate is who we are and what we do. Making it sustainable and versatile is essential to ensure our long-term growth. We invest in strategic locations conducive to multifunctional and multimodal solutions. In addition, we construct multifunctional and multimodal buildings that take into account the life cycle and circularity of materials, avoid construction waste and at the same time watch over the well-being of the employees of our customers. Finally, we are very much aware of the current scarcity of land. We therefore want to make maximum use of the available space. Before taking on new sites, we look for land that has already had an industrial use in the past and, if necessary, needs to be thoroughly remediated.
Ambitions and targets for 2030 and 2050 are obviously necessary, but we do not want to lose sight of value creation either. That is why in 2021 we proposed Track '24: a growth plan to attain a number of intermediate targets in terms of financial value creation in the years 2021 to 2024, always with sustainability targets in mind, in order to get a head start on the road to 2030.
In 1.2 Status Track'24 an overview is included of all acquisitions, development and extension projects already realised in the first half of 2023.
In accordance with its Green Finance Framework, Montea reports on the progress and, where possible, the impact of sustainable projects (as defined in the Green Finance Framework) for which a green finance instrument was used. On 26 April 2023 Montea published an update on the "Green Finance Allocation and Impact report" which includes both the € 235 million of 2021 and the € 380 million of green bonds issued in 2022 under the Green Finance Framework through a US private placement. The proceeds of this private placement were used exclusively to refinance sustainable projects such as sustainable buildings and renewable energy. With the investments of both green bond issues, we are saving 28,112 tCO2e of GHG emissions per year (equivalent to the annual CO2 uptake of 1,802 Ha of trees).
We offer energy-efficient solutions and promote the use of renewable energy at Montea itself and in our portfolio.
We reduce Montea's direct and indirect carbon footprint by restricting the number of greenhouse gas emissions from our operations, our logistics property and our suppliers.
Montea is convinced it can play a crucial role in reducing the carbon footprint and energy costs of its customers. For this reason, sustainability investments are also part of the investment volume to be realised under Track'24. More than half of these planned sustainability investments consist of PV installations. On the other hand, Montea is also investing in energy improvements to the existing portfolio, for example by disconnecting the sites from the gas grid and switching to heat pumps, renewing and adding insulation to roofs and providing (additional) charging points.
With its generally flat roofs, logistics real estate is an ideal building form for installing solar panels. Montea is convinced it can play a crucial role in reducing the carbon footprint and the energy costs of its customers by installing solar panels. Therefore, Montea also foresees the necessary investment budgets for PV installations during 2023.
In 2023 Montea has the ambition to bring the total capacity of the PV installations in Belgium, the Netherlands and France to a level of 79 MWp. For this, Montea anticipates an investment budget of ca. € 17.3 million at an average IRR of 10%.
In Belgium, Montea expects to increase the capacity of the PV installations by 14 MWp, bringing the total future capacity to 48 MWp. For this, Montea anticipates an investment budget of ca. € 8.8 million.
In addition, Montea expects to increase the capacity of the PV installations in the Netherlands by 12 MWp, bringing the total future capacity to 29 MWp. By the completion of two new PV installations during the first half of 2023, 7 MWp of this could already be realised. Montea has planned an annual investment budget of around € 8.0 million for solar panels in the Netherlands.
Finally, Montea expects to increase the capacity of PV installations in France to a total capacity of 2 MWp. Due to completions during the first quarter of 2023, this ambition for 2023 could already be realised through the additional investment of around € 0.5 million.
| 1 MWh $1$ MWh € 0,5 Mio investment budget |
||||
|---|---|---|---|---|
| The Netherlands | ||||
| $14$ MWh | $3$ MWh | $12$ MWh | ||
| € 8,0 Mio investment budget |
||||
| Belgium | ||||
| $29$ MWh | 5 www | $14$ MWh | ||
| € 8,8 Mio |
In addition, Montea also takes action where she can at existing sites to save as much energy as possible. This will not only provide an economic benefit in the long term, Montea is convinced that it will also have a positive impact in other areas, such as an improved working environment, cost savings and thus more satisfied tenants. For 2023 an investment budget is allocated to this end of ca. € 13.0 million.
Heat pumps allow buildings to be heated and/or cooled in a more sustainable way (without fossil fuels). It is envisaged to disconnect half the sites in the portfolio from the gas grid and switch to heat pumps by 2030.
Meanwhile, Montea is continuing the relighting program in the warehouses. Lighting in all older buildings is replaced with energy-efficient LEDs. At the end of 2022, 23% of the sites had energy-efficient lighting. The goal is to increase this to 100% by 2030.
Because of the energy efficiency benefits, Montea considers it important to also invest in the facades and roofs of the buildings in our portfolio. A well-insulated roof helps to optimise the indoor climate and reduce our customers' energy bills, so Montea puts a high priority on replacing roofs and installing (more) insulation.
At the end of 2022, 44% of the sites had EV charging capabilities. Montea installs charging points at all new construction projects, but investments in EV-charging are also being made at the existing portfolio to support customers in their energy transition. Montea aims to equip at least 60% of the sites with charging capabilities by the end of 2023. Options are also explored for installing charging facilities for electric trucks.
Europe is in full transition to a carbon-neutral economy by 2050, for which an extensive electrification of carbon-intensive activities is crucial. The activities in and around our buildings at the Hulst are no exception. A complex ecosystem such as that of Hulst Park requires a multifaceted approach with various technological solutions that takes into account the wishes and aspirations of all companies involved.
Montea, Quares and Toyota Material Handling, with support from the VUB (University of Brussels) and Flux 50, joined forces to make this business park a frontrunner on the way to carbon neutrality, and to examine how to achieve this objective through cooperation in the fields of renewable energy, mobility and logistics. At this moment the feasibility study is being carried out, to study and optimize the possible scenarios for the energy transition of the Hulst. Several commercially available technical solutions are being studied: local renewable energy generation, locally produced green hydrogen, energy storage systems, battery electric vehicles and fuel cell electric vehicles.
The energy transition megatrend means we need to prepare for scarcity of supply, but also for rising electricity demand by using more electric heat pumps and providing charging points for cars, vans and trucks. The integration and management of all renewable energy streams (solar and hydrogen, and battery storage) and of newer trends such as energy sharing also pose challenges.
In this context, Montea is entering into a partnership with Bnewable for the realisation and operation of a hybrid solar and battery solution at several Montea sites. The project includes the development of a hybrid solar and battery system on four sites in Belgium, for which Bnewable will draw up an installation plan after conducting the necessary technical analyses. In addition, thanks to its Energy Management System (EMS), Bnewable will valorise batteries in the market and research the various options for managing and smartly steering existing charging points and the possibility of installing additional carports with steerable charging points. In time, the collaboration could also provide international optimisation, provided that the elaborated model is applicable and configurable for the different types of sites and tenants within Montea's portfolio.
In the context of the grid congestion issue in the Netherlands, Montea is looking at the ongoing research into the realisation of an energy cooperative on an industrial estate of one of its tenants in the Amsterdam region. The results of such a realisation could, after all, also be implemented in other business parks where Montea's tenants are active and are facing grid congestion.
Because not every company in the business park immediately gets the desired electricity connection due to underutilisation of the substation, the local area developer suggests setting up a unique local virtual power network. After all, companies do not use the full contracted power at the same time; sometimes there are future extensions for which more capacity was already reserved. Solar panels also ensure that power consumption is often lower than what was contracted. This all leads to the availability of free space on the grid, which could be used by companies that could not obtain the required electricity connection. Matching supply and demand require a centralized control.
By uniting in an energy cooperative, businesses in the business park can operate smarter (everyone gets the electricity they want), cheaper (collectively sharing investments in generators or batteries) and more sustainable (no unnecessary CO2 emissions).
Montea and Lekkerland, part of the German REWE, provider of innovative retail solutions and logistics services, signed an agreement for the development of a sustainable state-ofthe-art cooling and freezing distribution where we aim for the highest possible GPR-score. (cfr. 1.2.2.2).
The building is a textbook example of our Montea Blue Label building regulations:
A smart LED lighting system will be installed, with motion and daylight sensors, high-tech heat pumps will also be installed and the entire building will be full-electric (no gas connection). The roof will be used to install solar panels, good for a production of as much as 4,500 MWh, comparable to the amount of energy consumed by 1,600 households on average every year.
In addition, provisions are also made to reuse rainwater, residual heat from the refrigeration plant is used to heat the offices and floor of the freezer cell, as well as to defrost the coolers.
These applications result in a distribution centre with very low energy consumption and, hence, low CO2 emissions.
| Multifunctional spaces with standard dimensions and large spans allow for flexible use of the building. |
|
|---|---|
| A building with sufficient free height, making it suitable for multiple solutions. | |
| Rainwater collection and reuse saves water and promotes sustainability. |
16 See press release of 17/07/2023 or www.montea.com for more information.
| SMART USE OF SPACE | ||
|---|---|---|
| Optimal use of floor space promotes efficient logistics. | 4 | $\checkmark$ |
| Multi-storey design saves square metres of land. | 6 | V |
| Efficient parking through the use of parking garages. | 6 | |
| Redeveloped brownfield combines environmental benefits with economic development and social improvement. | 0 | |
| Located on a strategic and multimodal location. | 8 | V |
| Waiting zones for trucks limit nuisance in the wider vicinity of the site. | $\bullet$ | $\checkmark$ |
| ENERGY EFFICIENT AND LOW CO. | ||
| Monitoring of all major energy consumers ensures more | $^{\circ}$ | V |
| efficient use of energy and awareness. | ||
| High-yield solar panels combined with energy storage ensure optimal use of renewable energy. |
⊕ | |
| High-tech heat pumps generate renewable energy. In this way, our sites | $^{\circ}$ | √ |
| are disconnected from the gas grid and therefore are fossil-free. | ||
| SMART LEDs with motion and daylight sensors reduce energy consumption. | $^\circledR$ | V |
| Super-insulated dock levellers reduce energy consumption. | $^\circledR$ | V |
| High insulation value and improved airtightness reduces energy consumption and improves comfort. | $\mathbb G$ | $\checkmark$ |
| Use of low-CO 2 materials drastically reduce embodied carbon. | ⊕ | |
| Electric charging points for cars, e-vans, trucks and forklifts encourage electric driving and contribute to reducing overall emissions. |
$^\circledR$ | $\checkmark$ |
| WELL-BEING | ||
| Bicycle parking with electric charging stations promote movement and health of employees. | 18 | Л |
| Sports facilities promote health, performance and recovery of employees. | 19 | |
| Atmospheric coffee corners are a social place to relax | 20 | V |
| Green walls reduce stress and promote well-being and productivity. | 21 | V |
| Underfloor heating is comfortable and energy efficient. | 22 | V |
| Ventilation and cooling is energy-efficient, comfortable and promotes the health of employees. | 23 | Л |
| Smart skylights or façade lights bring in natural daylight and | ||
| create a pleasant and healthy working environment. | 24 | V |
| Waiting rooms and sanitary facilities for drivers ensure a pleasant environment for everyone. | 25 | Л |
| BIODIVERSITY | ||
| Flower meadows, beehives, water buffer basins improve biodiversity. | ಡಿ | V |
| Green car parks promote natural infiltration of rainwater, thermal regulation and water regulation. | ☎ | |
| Green roofs absorb rainwater, provide a haven for birds and insects. | ෂ | v |
| lower the ambient temperature and promote clean air. | ||
| CIRCULAR CONSTRUCTION | ||
| We determine the total environmental impact of a material throughout its life cycle using the LCA method. | ☎ | V |
| The facades are built up in multiple layers and with non-adhesive materials. | ☜ | |
| The design takes into account circular building principles with respect to the implementation of building nodes and materials. |
⊕ | √ |
| The use of PUR and PIR foams is avoided as much as possible because they are very harmful to the environment. | ® | V |
| Cradle to Cradle (C2C) materials are given preference when choosing finishing materials. | ⊛ | V |
| ENVIRONMENT | ||
| Separating waste contributes to a better environment and circular economy. | $\overline{34}$ | V |
| Parking zones and loading docks for trucks are provided with an oil and petrol separator. | 35 | V |
| The use of coolants is limited by providing a hybrid system. | 36 | |
| Biological purification of company wastewater reduces water consumption. | 37 |
We provide a safe and healthy working environment for our employees. We are a company that grows and our Monteaneers grow with us. We are therefore firmly committed to the professional and personal growth of each and every employee.
At the same time, as a company, we are also aware of the societal role we carry. We are part of the local community and make various commitments. In so doing, we fully encourage our Monteaneers to get involved in socially relevant projects.
Montea is constantly building an organisation that is "Fit for growth", starting from the country-specific core structures in which the business functions are embedded with full responsibility. This is done through an agile and lean structure aimed at a performance-oriented, goal-oriented organisation.
Both Patrick Abel, our new country director Germany, and Xavier Van Reeth, our new country director Belgium, joined the Montea team to add the necessary gravitas to our international growth story. Reporting to the CEO, and with P&L responsibility, Patrick & Xavier will provide leadership and management to the "tobe-built" and existing team while directing internal and external parties to achieve agreed return expectations.
We are also building out the corporate functions organised from the headquarters that support the activities in the member countries.
We have completed the search for two key functions within Montea that are directly linked to our strategic needs.
First and foremost, qualitative entrepreneurship and growth, with an eye for the wider environment in which we operate, has always been in Montea's DNA. Montea is serious about making these ambitions concrete and tangible. With this in mind, Montea secured the position of Chief Sustainability Officer (CSO) with Samia Robbins. The CSO will represent Montea in sustainability-related industry initiatives & trade associations and manage relationships with academia and consultants. The CSO will work with a broad set of internal teams, including commercial, development, finance, HR, communications, etc. with a clear goal of embedding sustainability in everything we do and say, and ensuring that the sustainability roadmap is translated into bestin-class projects to significantly improve our performance and achieve our ambition. This includes continuous exploration of external partnerships and screening the market for best practices.
On 17 March 2023, Montea organised an exclusive event for customers and connections in Belgium, in collaboration with Studio 100, a customer (tenant) of Montea at the building in Puurs. The exclusive preview of the Red Star Line show was fully in line with our values, focus and entrepreneurship. As a customer-oriented company, Montea wanted to express its gratitude for the trust and loyalty of our customers, while we also wanted to position ourselves as a great team and expert in the real estate sector.
The event provided the perfect opportunity to connect with clients and give them the attention they deserve. We believe that building strong relationships with our clients is essential to position ourselves as a trusted leader in the real estate industry.
We believe the event was a success and we would like to thank our clients for attending. We look forward to continuing our client-centric approach and working with our clients and connections to further their success.
Montea has been nominated for the prestigious Corporate Well-being Award by ZigZagHR in Belgium, one of the leading HR forums in Belgium. This recognition highlights Montea's unique approach to wellbeing, which goes beyond a mere HR project and is deeply embedded in the organisation's culture. After a rigorous selection procedure, Montea emerged as one of four companies from a large pool of entries, alongside other major companies. Montea's CHRO passionately presented the case for the company through a well-structured business case and an engaging video, which highlighted the organisation's commitment to wellbeing.
Although Montea did not achieve the overall win, its nomination for this award is a remarkable achievement in itself. It highlights the importance of wellbeing in the company culture and demonstrates Montea's commitment to creating a supportive and nurturing working environment for and by its employees. The recognition from ZigZagHR reinforces our commitment to go one step further in promoting the well-being of the people in our workplace. Monteaneers are truly proud of this achievement and all contribute to making Montea's culture the thriving, supportive community it is today.
Montea is also proud to announce that its finance team was nominated for the esteemed 'Best Finance Team of the Year' award in the Belgian financial community. The team's achievements and collective efforts were recognised at the competition's gala event. The 'Best Finance Team of the Year' award recognises the contributions of the CFO and team and focuses on finance as a team effort. Montea's finance team understands that success would not be possible without the dedication and exceptional teamwork of each team member. They recognise that financial achievements are a collective initiative and only achievable through the effort of the entire team, and this spirit shines through in everything they do.
Despite the fact that Montea did not ultimately win the award, Montea's finance team is proud of the nomination and values its culture of teamwork. The company's genuine commitment to teamwork and inclusiveness has created an environment conducive to achieving remarkable performance. Montea is delighted to share this recognition with its finance team and is happy to acknowledge the value of a collaborative atmosphere and its impact on the company's success.
Since 2020 Montea is active in the German market through a partnership with the German IMPEC Group GmbH which led to the purchase of two development sites at strategic locations in Mannheim and Leverkusen.
Since January 2023 Patrick Abel is appointed as Country Director Germany. Patrick Abel has 20 years of experience in the German real estate sector. For the past 5 years, he was a member of the board of directors of Palmira Capital Partners with a clear focus on the Pan-European logistics sector. Patrick studied economics and business administration and earned a postgraduate degree in Real Estate Asset Management. He is well established in the sector and can build on a network of developers, property owners, brokers, lawyers and consultancies.
The new Country Director Germany performs his duties as of January from Frankfurt, where he will build up a local Montea team and help support the Track'24 growth plan.
17 See press release of 03/01/2023 or www.montea.com for more information.
Since April Xavier Van Reeth strengthens Montea team in the function of Country Director Belgium. In this role, he will lead the Belgian team that's responsible for managing existing clients as well as the further growth of the property portfolio in Belgium.
With the arrival of Xavier Van Reeth, Montea brings on board more than 15 years of experience in the logistics real estate sector. For the past 10 years, Xavier has worked as Head of Industrial & Logistics at CBRE, which will continue to be a leading real estate partner. Xavier has an excellent reputation as a team player and has a vast experience in servicing logistics players. This makes him a perfect fit with Montea's DNA and reputation.
Since the listing on the stock exchange in 2006, Montea's property portfolio grew from € 100 million to € 2.2 billion. In order to provide optimal support to its financial stakeholders, Montea appointed Herman van der Loos as Investor Relations Manager. In this position, Herman will maintain relations with existing investors and attract new investors to support the continued growth story.
Herman van der Loos has more than 30 years' experience as sell-side analyst in listed real estate and as fund manager at several leading financial institutions in the Benelux. The last 9 years he was active as Senior Equity Analyst at Degroof Petercam. Herman is commercial engineer (Haute Ecole ICHEC-ECAM-ISFSC) and has been a CFA Charterholder since 2003.
To support its further growth, Montea once again offered its shareholders an optional dividend. A total of 51% of coupons no. 25 (representing the dividend for the 2022 financial year) were exchanged for new shares. This capital increase will be used to further roll-out the Track'24 growth plan. 293,750 new shares were issued for a total issue amount of € 21,035,437.50 (€ 5,986,625.00 in capital and € 15,048,812.50 in share premium) under the authorized capital. The newly created shares were admitted to trading on Euronext Brussels and Euronext Paris as of 14 June 2023. Following this transaction, the Montea share capital is represented by 18,318,970 shares.
18 See press release of 02/03/2023 or www.montea.com for more information.
19 See press release of 02/06/2023 or www.montea.com for more information. 20 See press release of 08/06/2023 or www.montea.com for more information.
| CONDENSED CONSOLIDATED INCOME STATEMENT (EUR x 1.000) ANALYTICAL |
30/06/2023 6 months |
30/06/2022 6 months |
|---|---|---|
| CONSOLIDATED RESULTS | ||
| Net rental result | 52.031 | 42,693 |
| Property result | 56,154 | 46,461 |
| % compared to net rental result | 107.9% | 108.8% |
| Total property charges | $-1,679$ | $-1,313$ |
| Operating property result | 54,476 | 45,148 |
| General corporate expenses | $-5.023$ | $-3.257$ |
| Operating result before the portfolio result | 49,452 | 41,891 |
| % compared to net rental result | 95.0% | 98.1% |
| Financial result excl. changes in fair value of the hedging instruments | $-9.725$ | $-6.954$ |
| EPRA result before taxes | 39,727 | 34,937 |
| Taxes | 2,560 | $-2.425$ |
| ERPA EARNINGS | 42,288 | 32,513 |
| EPRA EARNINGS PER SHARE | 2.34 | 2.00 |
| Result on disposal of investment properties | 0 | 19 |
| Result on disposal of other non-financial assets | 0 | $\theta$ |
| Changes in fair value of investment properties | $-9,547$ | 121,481 |
| Deferred taxes on portfolio result | 20,747 | $-17,523$ |
| Other portfolio result | 0 | n |
| PORTFOLIO RESULT | 11,200 | 103,976 |
| Changes in fair value of financial assets and liabilities | $-1,572$ | 42,264 |
| net result | 51,915 | 178,753 |
| NET RESULT PER SHARE | 2.87 | 11.01 |
| KEY RATIOS (in EUR) | 30/06/2023 | 31/12/2022 | 30/06/2022 |
|---|---|---|---|
| EPRA result per share 1 | 2.34 | 4.10 | 2.00 |
| Result on the portfolio per share 1 | 0.62 | 4.74 | 6.40 |
| Changes in the fair value of financial instruments per share 1 | $-0.09$ | 3.53 | 2.60 |
| Net result (IFRS) per share 1 | 2.87 | 12.36 | 11.01 |
| EPRA result per share 2 | 2.31 | 3.76 | 1.98 |
| Proposed distribution | |||
| Gross dividend per share | 3.30 | ||
| Net dividend per share | 2.31 | ||
| Weighted average number of shares | 18,059,302 | 16,538,273 | 16,239,519 |
| Number of shares outstanding at period end | 18,318,970 | 18,025,220 | 16.422,856 |
The net rental income amounted to € 52.0 million for the first half of 2023, up by 22% (or € 9.3 million) compared to the same period in 2022 (€ 42.7 million). This increase is mainly due to the acquisitions of new properties, leased land and completed projects, which generate additional rental income. With an unchanged portfolio (and therefore excluding new purchases, sales and project developments between both comparative periods) rental income increased by 5.9%, mainly driven by indexation of leases (5.5%) and the reletting of vacant units and renegotiations with existing tenants (0.4%).
Logistics real estate is one of the few sectors that is able to pass on a large part of the current inflation to the customers through the automatic indexation of lease agreements. With a weighted average inflation forecast of 4.4 % in 2023, Montea expects to be able to pass on ca. 5.6% to customers on average and this following a deferred indexation effect due to leases not indexing until anniversary. The effect of passing on indexation in the Q2 2023 (5.9%) like-for-like rental income is 5.5%.
The property result amounts to € 56.2 million for the first half of 2023, an increase by € 9.7 million (or 21%) compared to the same period of last year (€ 46.5 million). The € 9.3 million increase in net rental income is supplemented by a slight increase in other rent-related revenues compared to 2022 following the structural cooperation with Cordeel.
The property costs and overhead costs of the company, which are part of the operating result before the result on property portfolio, were up by € 2.1 million in the first 6 months of 2023 compared to the same period in 2022. This is due to the growth of the portfolio and the team. Nevertheless, the increase in the property result continued in an increase in the operating property result before the result on the portfolio of 18% compared to the same period last year (from € 41.9 million in 2022 to € 49.5 million in 2023).
The operating margin21 is 88.1% for the first half of 2023, compared to 90.2% for the first half of 2022. Looking ahead to 2023, operating margin will remain under control (ca. 90%). The EPRA cost ratio, traditionally higher in the first half of the year due to the application of IFRIC 21 in the first quarter, increased compared to 2022. For year-end 2023, it is estimated to land at ca. 11%, compared to 8.8% at 31/12/2022. Indeed, to ensure future growth, Montea is investing heavily in business development in France and Germany and corporate services. In a market where Montea focuses strongly on in-house developments, these investments in the teams will bear fruit in terms of rental income in the coming years, albeit at a slower pace. The EPRA cost ratio is thus expected to gradually decline again in the coming years.
The negative financial result excluding variations in the fair value of hedge instruments amounted to € - 9.7 million, compared to € -7.0 million in the same period of last year, an increase of 40% (€ 2.7 million), which is mainly due to a higher recorded debt in 2023 to finance recent realised investments.
The total financial debt (including bond loans and leasing debts, including the recurring cost of land under concession) on 30 June 2023 is covered for 97.2%.
Calculated on the basis of the average financial debt, the average financing cost22\* amounted to 2.1% at the end of the first half of the financial year 2023 compared to 1.8% at the end of the first half of the financial year 2022.
21 The operating margin is obtained by dividing the operating result before the result on the property portfolio by the property result. 22 This financial cost is an average over the last 5 quarters and is based on the total financial result compared to the average of the opening and closing balance of the financial debt without taking into account the valuation of the hedging instruments and interest costs related to lease obligations booked in accordance with IFRS 16.
Until 2020 Montea conducted its accounts as if it had already obtained the FBI status. As of 2021 Montea has, for the sake of caution, taken into account in the income statement the possibility that the FBI status could be refused, on account of the withdrawal of the tax ruling granted as of 1 January 2021 in the case of sufficiently similar Belgian REITs. In the course of 2023 Montea received recognition as FBI for the period 2015 to 2021 (inclusive). As a result, the provision made in 2021 could be reversed in the first half year of 2023 resulting in an exceptional positive EPRA result effect of € 3.6 million.
For the financial year 2022, Montea has not yet received a final tax assessment. As a result, a tax provision of €1.4 million was set up in the income statement in respect of financial year 2023, in particular the difference between the tax transparent status of FBI and the regularly taxed sphere.
Supported by European law and granting of the status for the years 2015 to 2021, Montea's efforts remain focused on being able to qualify for FBI status in the Netherlands from 2022 as well. The tax return will therefore be submitted as FBI (at least until 2024) since Montea continues to believe that it fulfils all the conditions to be able to claim FBI status.
The EPRA result for the first 6 months of 2023 amount to € 42.3 million, an increase of € 9.8 million or 30% compared to the same period in 2022 (€ 32.5 million). This increase in the EPRA result is due to the positive impact of obtaining the FBI status for 2021 (€ 3.6 million) as well as mainly to the strong growth of the property portfolio while the operational and financial costs are closely monitored and managed as such (€ 6.2 million).
The EPRA result per share for H1 2023 amount to € 2.34 per share, an increase of 17% compared to the EPRA result per share for H1 2022 (€ 2.00 per share), taking into account the 11% increase in the weighted average number of shares due to the capital increase in the course of 2022 and 2023. The extraordinary impact due to the positive evolutions related to the FBI status amounts to €0.20 per share and only considers the granting of the FBI status for the fiscal year 2021.
Result on the property portfolio23
The result on the property portfolio for the first half of 2023 amounts to € 11.2 million or € 0.62 per share24. For the same period last year this result was € 104.0 million or € 6.40 per share. For the first half of 2023 the limited negative revaluation of the existing portfolio is mainly driven by an upward (input used by the real estate expert) yield shift of 19 bps, partially offset by a 3.8% increase in estimated market rental values. The EPRA Net Initial Yield increases with 21 bps compared to 2022 to 5.03%. This output yield is only marginally affected by portfolio revaluation (2 bps). Especially the achievement of 100% occupancy and indexation explain the increase (19 bps). In 2022, the provision for deferred taxes on the Dutch portfolio result was further accounted from a principle of prudence (non-obtaining FBI status, see section 'Taxes'). In contrast, in the first half of 2023, the deferred tax provision on real estate foreseen in 2021 is reversed in the amount of € 21.2 million, which has a positive impact on the property portfolio result.
The result on the property portfolio is not a cash item and has no impact on the EPRA result.
Changes in the fair value of financial instruments
The negative change in the fair value of financial instruments amounted to - € 1.6 million or - € 0.09 per share at the end of the first half of 2023, compared to a positive change of € 42.3 million at the end of the same period in 2022. The negative impact of € 43.8 million arises from the change of the fair value of the concluded interest rate hedges as a result of decreasing long-term interest rates during the year 2023.
23 Result on the property portfolio: this is the negative and/or positive change in the fair value of the property portfolio + any loss or gain resulting from the disposal of property, taking into account any deferred taxes.
24 Calculated as the result on the property portfolio based on the weighted average number of shares.
The changes in the fair value of financial instruments are no cash items and have no impact on the EPRA result.
Net results (IFRS)
The net result consists of the EPRA result, the result on the property portfolio and the changes in fair value of financial instruments and the impact of provision for deferred taxes on the Dutch portfolio result based on a principle of caution (not obtaining FBI status, see section "Taxes").
The difference between the EPRA result and the net result in the first half of 2023 is mainly due to the depreciation of the property portfolio and financial instruments in 2023 compared to 2022 and the exceptional reversal of the provision for deferred tax initially accounted for in 2021.
The net result (IFRS) per share25 amounts to € 2.87 per share compared to € 11.01 per share in 2022.
| CONDENSED CONSOLIDATED BALANCE SHEET (EUR) | 30/06/2023 | 31/12/2022 | |
|---|---|---|---|
| ı. | NON-CURRENT ASSETS | 2,232,696,900 | 2,215,999,976 |
| Ш. | CURRENT ASSETS | 47,688,871 | 111,711,946 |
| TOTAL ASSETS | 2,280,385,771 | 2,327,711,922 | |
| SHAREHOLDERS' EQUITY | 1,312,831,006 | 1,301,220,020 | |
| Shareholders' equity attributable to shareholders of the parent company | 1,310,247,819 | 1,297,636,079 | |
| Ш. | Minority interests | 2,583,188 | 3,583,941 |
| LIABILITIES | 967,554,765 | 1,026,491,902 | |
| Non-current liabilities | 856,768,241 | 909,109,354 | |
| Ш. | Current liabilities | 110,786,524 | 117,382,548 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 2,280,385,771 | 2,327,711,922 |
On 30/06/2023 the total assets (€ 2,280.4 million) mainly consist of investment property (90% of the total), solar panels(2% of the total), and development projects(4% of the total). The remaining amount of the assets (4% of the total) consists of the other tangible and financial fixed assets including assets for own use and current assets containing cash investments, trade and tax receivables.
25 Calculated on the basis of the weighted average number of shares.
Montea aims to maintain its strong fundamentals. Thanks to its focus on the type of customers and their activity as well as on strategic locations with high added value Montea succeeds in developing its real estate portfolio in an optimal fashion.
The demand for additional storage space is high. Logistics is gaining in importance due to key trends such as the uncertain global supply chain, building larger strategic inventories and reshoring. Demand is also compounded by the continued growth of the e-commerce sector. Montea tries to respond to these challenges by offering innovative real estate solutions. Furthermore, we also notice upward pressure on market rents due to land scarcity in various countries.
At the end of the second quarter, the total real estate portfolio of Montea amounts to € 2,189.3 million, consisting of the valuation of the real estate portfolio-buildings (€ 2,051.3 million), the fair value of the current development projects (€ 86.2 million) and the fair value of the solar panels (€ 51.8 million). Compared to the year-end 2022 the fair value of the real estate portfolio remains stable, with a limited increase of 0.8%, mainly due to an additional investment volume of € 23.7 million, partly offset by negative revaluation of € 5.4 million.
| Total | The | Total | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 30/06/2023 | Belgium | France | Netherlands | Germany | 31/12/2022 | 30/06/2022 | ||
| Property portfolio - Buildings 1 | ||||||||
| Number of sites | 94 | 40 | 18 | 34 | $\overline{2}$ | 92 | 87 | |
| Total area - property portfolio | m 2 | 1,921,172 | 858,353 | 213,293 | 813,561 | 35,965 | 1,890,029 | 1,750,947 |
| Annual contractual rents | K€ | 106,305 | ٠ | ۰ | ٠ | ÷ | 100,136 | 89,589 |
| Gross yield | $\frac{0}{0}$ | 5.18 | ۰ | ٠ | ٠ | ٠ | 4.96 | 4.72 |
| Current yield on 100% occupancy | $\%$ | 5.17 | ۰ | ٠ | ٠ | ٠ | 4.98 | 4.75 |
| Un-let property area | m 2 | 0 | $\Omega$ | 0 | 0 | $\mathbf 0$ | 11,110 | 1,250 |
| Rental value of un-let property parts 2 | K€ | 0 | 0 | 0 | 0 | 0 | 831 | 118 |
| Occupancy rate | % | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 99.4 | 99.9 |
| Investment value | K€ | 2,184,650 | 940,879 | 249,221 | 959,527 | 35,023 | 2,151,050 | 2,009,918 |
| Fair value | K€ | 2,051,290 | 919,752 | 232,839 | 865,941 | 32,758 | 2,019,489 | 1,897,246 |
| Property portfolio $-$ Solar panels 3 | ||||||||
| Fair value | K€ | 51,762 | 26,278 | 3,368 | 22,116 | 0 | 49,197 | 36,091 |
| Property portfolio - Developments | ||||||||
| Fair value | K€ | 86,243 | 57,669 | 11,415 | 17,159 | 0 | 102,338 | 112,978 |
| Property portfolio - Total | ||||||||
| Fair value | K€ | 2,189,295 | 1,003,699 | 247,621 | 905,217 | 32.758 | 2,171,024 | 2,046,315 |
Montea has a total land bank of 2,345,238 m² that will lead to a future development potential of ca. 1,170,000 m².
| Acquired landbank | Under control | Total landbank |
|---|---|---|
| $1.632.072 \text{ m}^2$ | $713,166 \text{ m}^2$ | $2,345,238$ m 2 |
| 72% income generating $\rightarrow$ 5.9% yield on cost € 318,6 Mio market value € 195 market value / m2 |
About 1.6 million m² (or ca. 70% of the total land bank) of this land bank has been acquired and is valued in the property portfolio for a total value of € 318.6 million. In addition, 72% of this land bank generates an immediate average yield of 5.9%.
Moreover, Montea holds approximately 0.7 million m² (or ca. 30% of the total land bank) under control by way of contracted partnership agreements.
| Total | Total | Total | |||||
|---|---|---|---|---|---|---|---|
| 30/06/2023 | Total% | 31/12/2022 | Total% | 30/06/2022 | Total% | ||
| LANDBANK | |||||||
| Total surface | m 2 | 2.345.238 | 100% | 2.401.318 | 100% | 1.943.662 | 100% |
| Acquierd, valued in property portfolio | m 2 | .632,072 | 70% | 1,688,152 | 70% | 1,465,964 | 75% |
| of which income generating | % | 72 | ٠ | 73 | ٠ | 67 | |
| Under control, not valued in property portfolio | m 2 | 713,166 | 30% | 713,166 | 30% | 477,698 | 25% |
| Fair value | K€ | 318,627 | 100% | 315,336 | 100% | 279,324 | 100% |
| Acquired, valued in property portfolio | K€ | 318,627 | 100% | 315,336 | 100% | 279,324 | 100% |
| of which income generating | % | 72 | 73 | -67 | |||
| Under control, not valued in property portfolio | K€ | 0. | $0\%$ | 0 | 0% | $0\%$ |
The total liabilities consist of shareholders' equity of € 1,312.8 million and a total debt of € 967.6 million.
The table below shows, on 30 June 2023, in which year the credit lines and bond loans mature. Montea always ensures that not all debts mature during the same year.
26 The accruals largely comprise rent already invoiced in advance for the following quarter.
The weighted average maturity of financial debts (credit lines, bond loans and leasing liabilities) amounts to 6.8 years on 30 June 2023, which remains stable compared to 31 December 2022 (6.9 years).
The weighted average maturity of the interest rate hedging instruments was 7.2 years at the end of June 2023. The hedge ratio, which represents the percentage of financial liabilities with a fixed interest rate or with a floating interest rate subsequently hedged by a hedging instrument, amounts to 97.2% at the end of June 2023.
The Interest Coverage Ratio* is equal to 4,5x in the first half of 2023 compared to 5,6x for the same period last year. Montea thus amply meets the covenants on the interest coverage ratio that it concluded with its financial institutions.
The average prorated financing cost of debt was 2.1% for the first half of 2023 (compared to 1.8% in the same period last year), mainly as a result of the bond loans contracted in 2022.
With an EPRA LTV of 40.5% at the end of June 2023 (compared to 41.9% at the end of June 2022) and an improved Net Debt/ EBITDA (adjusted)27 of 8,2x, Montea's consolidated balance sheet attests to strong solvency. The EPRA Net Initial Yield amounts to 5.03%, an increase of 21 bps compared to the end of 2022 following the achievement of 100% occupancy and indexation (+19 bps), combined with limited portfolio write-downs (+2 bps).
Market dynamic remain healthy. The stable valuation of the existing property portfolio at an EPRA Net Initial Yield of 5.0%, the occupancy rate of 100%, the remaining term of leases until first termination option of 7.0 year (excluding solar panels) and the upward pressure on market rents testify to this. Montea will remain focused on strategic multimodal prime locations in its further growth.
Montea complies with all debt ratio covenants 28 that it concluded with its financial institutions pursuant to which it may not have a debt ratio higher than 60%.
27 To calculate the Adjusted net debt/EBITDA, the net financial debts in the numerator are adjusted for ongoing projects in execution multiplied by the debt ratio as these projects do not yet generate an operational result but are already included in financial debts. In addition, there is also an adjustment in the denominator for the annualized impact of external growth.
28 The debt ratio calculated in accordance with the Royal Decree of 13 July 2014 on regulated real estate companies amounts to 41.4% at the end of June 2023.
These half-yearly figures have been prepared in accordance with the International Financial Reporting Standards (IFRS) as accepted in the European Union and the legal and regulatory requirements applicable in Belgium. The accounting policies have been consistently applied to the years presented.
Unless stated otherwise, Montea has not availed itself thereof. These standards as amended by the IASB and interpretations as issued by the IFRIC have no significant impact on the presentation, the notes or the results of the company:
A number of new standards, amendments to standards and interpretations are not yet applicable in 2023 but may be applied earlier. Unless stated otherwise, Montea has not availed itself thereof. These standards amended by the IASB and interpretations issued by the IFRIC are not expected to have a material impact on the presentation, notes or results of the company:
| STOCK MARKET PERFORMANCE | 30/06/2023 | 31/12/2022 | 30/06/2022 | |||
|---|---|---|---|---|---|---|
| Share price (€) | ||||||
| At closing | 70.60 | 66.60 | 91.30 | |||
| Highest | 80.30 | 137.00 | 137.00 | |||
| Lowest | 67.30 | 62.20 | 84.90 | |||
| Average | 75.28 | 94.14 | 110.20 | |||
| Net asset value per share (€) | ||||||
| IFRS NAV | 71.83 | 72.32 | 70.56 | |||
| EPRA NTA | 70.22 | 71.72 | 71.42 | |||
| Premium/discount compared to IFRS NAV (%) | $-1.7%$ | $-7.9%$ | 29.4% | |||
| Dividend return 1 [%] | - | 5.0% | ||||
| Dividend (€) | ||||||
| Gross dividend per share | 3.30 | |||||
| Net dividend per share | 2.31 | |||||
| Volume (number of securities) | ||||||
| Average daily volume | 17,818 | 17,583 | 14,649 | |||
| Volume of the period | 2,262,840 | 4,518,768 | 1,860,396 | |||
| Number of shares (at the end of the period) | 18,318,970 | 18,025,220 | 16,422,856 | |||
| Market capitalisation $(K \epsilon)$ | ||||||
| Market capitalisation at closing | 1.293.319 | 1,200,480 | 1,499,407 | |||
| Ratios (%) | ||||||
| "Velocity" 2 | 12% | 25% | 11% |
Montea, developing investor in logistics real estate, and Lekkerland, part of the German REWE, provider of innovative retail solutions and logistics services, signed an agreement for the development of a new distribution centre of approx. 50,000 m² built area at Logistiek Park A12 in Waddinxveen.
The site of approx. 60,000 m² is located directly on the exit of the A12 motorway, making it easily accessible and very well situated in the heart of the Randstad.
This development includes approx. 40,000 m² warehouse, approx. 7,000 m² mezzanine, approx. 3,000 m² offices and 253 parking spaces. The solar panels on the total construction will together generate approx. 9,000 MWh. This is comparable to the amount of energy used by 3,200 households on average per year. The building will be completely gas-free and provisions will be made to reuse rainwater.
Lekkerland and Montea enter into a long-term lease agreement of 15 years subject to customary reservations. The net initial yield of approximately 7% more than meets our targets for our own developments.
With the development of the new building for Lekkerland, Montea has fully developed its position on Logistiek Park A12, developing a total of ca. 120,000 m² in Waddinxveen.
29 See press release of 17/07/2023 or www.montea.com for more information.
In August 2020, Montea acquired a site with a total area of 120,000 m² in Waddinxveen. During the first phase, Montea realised a distribution centre of about 50,000 m² leased to HBM Machines. The new building for Lekkerland has several sustainable specifications and uses, among other things, residual heat from the refrigeration plant for heating the offices and floor of the freezer cell, as well as for defrosting the coolers.
The building is fitted with QuadCore™ panels with a high Rc value and uses energy-efficient LED lighting. Together, all these solutions contribute to optimising and minimising energy consumption.
The roof will be used for the installation of solar panels, which, together with the adjacent development completed in 2022, will create a roof area of 80,000 m², soon generating an amount of electricity equal to the needs of 3,200 households.
Besides an eye for the environment, Montea and Lekkerland also have an eye for people when developing this project. A healthy building will be realised with attention to greenery, indoor climate, ventilation and natural light. After all, a healthy working environment promotes the well-being and productivity of the building's users.
At Logistiek Park A12, Montea owns a total of 15 hectares, located directly on the A12. Since 2020, Montea has realised several sustainable developments on Logistiek Park A12.
Quality entrepreneurship and growth, with respect for the broad environment in which Montea operates, has always been part of Montea's DNA. Our track record in recent years is proof of our commitment to sustainable value growth rather than short-term profit. With the appointment of Samia Robbins as Chief Sustainability Officer we want to take up a leadership position on the sustainability front. Samia will be a member of the Montea Exco team and will report directly to the CEO.
Samia's role will involve leading the group's sustainability ambitions across its countries and management services, including efforts to support its clients' transition into lower-carbon businesses and delivering services to help our clients achieve their climate action plan.
Samia obtained a degree at the University of Lincoln and Sydney (Bachelor of Arts and International Business). She worked in the domain of sustainability for many years (Mace Group, Mott MacDonald …), with her last stop Arup where she was the Energy Lead for the Netherlands as well as the Hydrogen Lead for Europe. Her experience in different kinds of sustainability studies, stakeholder engagement and project execution plans will be a massive asset for Montea.
During the night of Monday 31 July to Tuesday 1 August, one of the buildings at a site in Le Mesnil-Amelot (FR) caught fire. The building housed three aerospace parts storage companies, with two of the three units hit by the fire. The third unit could be partially safeguarded, with additional being ongoing to examine what can be recovered. The cause of the fire remains unclear for now, a fire expert has been appointed. The affected area is 3,002m², compared to the total French portfolio of 213,293m² (1.4%). Its rent is covered for 3 years for which the fire insurance will intervene, as also the reconstruction costs are covered.
30 See press release of 01/08/2023 or www.montea.com for more information.
There were no transactions between related parties during the first semester of 2023, with the exception of those carried out under market conditions and as customary when carrying out Montea's activities.
The board of directors of Montea's sole director and the management are fully aware of the importance of developing and maintaining sound management and consequently preserving a quality portfolio. Montea applies clear and strict standards for (i) optimising and improving the existing buildings, (ii) the commercial management, (iii) the technical management of the buildings, and (iv) potential investments in the existing buildings. The purpose of these criteria is to limit vacancies as well as to have the value of the property assets increase sustainably to the maximum.
The main risks and uncertainties with which the company may be confronted as well as the possible impact thereof, are described in the Annual Financial Report 2022.
31 For more information about the strategy implemented by Montea, please see the Annual Report of 2022. Where necessary, Montea's policy will be adjusted based on the risk factors described.
Pursuant to article 13, paragraph 2 of the Royal Decree of 14 November 2007, Montea's sole director, Montea Management NV, represented by its permanent representative, Jo De Wolf, declares that, to the best of its knowledge:
This press release contains, inter alia, forecasts, opinions and estimates made by Montea with regard to the future performance of Montea and of the market in which Montea operates ("outlook").
Although prepared with the utmost care, such an outlook is based on Montea's estimates and forecasts and is by nature subject to unknown risks, uncertain elements, and other factors. These could lead to results, financial conditions, performance, and final achievements that differ from those expressed or implied in these forward-looking statements. Some events are difficult to predict and may depend on factors beyond Montea's control. In view of such uncertainties, Montea cannot give any guarantees on these forecasts.
Statements in this press release that pertain to past activities, achievements, performance, or trends should not be considered as a statement or guarantee that they will continue in the future.
Furthermore, the outlook is only valid as of the date of this press release.
Unless it is legally required to do so, Montea in no way undertakes to update or change these forecasts, even if there are changes in the expectations, events, conditions, assumptions or circumstances on which such forecasts are based. Nor does Montea, its sole director, the directors of the sole director, members of Montea's management or advisors guarantee that the assumptions on which the outlook is based are free from error, and none of them can state, guarantee or predict that the results expected by such outlook will actually be achieved.
| 18/08/2023 | Online meeting analysts (11:00 a.m.) |
|---|---|
| 27/10/2023 | Interim statement – results at 30/09/2023 (before market opening) |
| 27/10/2023 | Online meeting analysts (11:00 a.m.) |
| 07/02/2024 | Annual financial report – results at 31/12/2023 (after market hours) |
| 08/02/2024 | Online meeting analysts (11:00 a.m.) |
| 07/05/2024 | Interim statement – results at 31/03/2024 (after market hours) |
| 08/05/2024 | Online meeting analysts (11:00 a.m.) |
| 21/05/2024 | Annual general shareholder's meeting on the financial year 2023 |
This information is also available on the website of Montea: www.montea.com.
ABOUT MONTEA "SPACE FOR GROWTH"
Montea NV is a public regulated real estate company under Belgian law (GVV/SIR) that specialises in logistical property in Belgium, the Netherlands, France, and Germany. The company is a benchmark player in this market. Montea literally offers its customers the space they need to grow through versatile and innovative property solutions. In this way, Montea creates value for its shareholders. As of 30/06/2023 the property portfolio represented a total surface of 1,921,172 m² spread across 94 locations. Montea NV has been listed on Euronext Brussels (MONT) and Euronext Paris (MONTP) since the end of 2006.
Herman van der Loos | +32 53 82 62 62 | [email protected] www.montea.com
| (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Net result (IFRS) | 51,915 | 178,753 |
| Changes for calculation of the EPRA earnings | ||
| To exclude: | ||
| Changes in fair value of the investment properties and properties for sale |
9.659 | $-121,434$ |
| Result on sale of investment properties | $-19$ | |
| Changes in fair value of the financial assets and liabilities | 1.572 | $-42,264$ |
| Deferred taxes related to EPRA changes | $-20.747$ | 17,523 |
| Minority interests with regard to changes above | $-112$ | $-47$ |
| EPRA earnings | 42,288 | 32,513 |
| Weighted average number of shares | 18,059,302 | 16,239,519 |
| EPRA earnings per share (€/share) | 2.34 | 2.00 |
The EPRA NAV indicators are obtained by correcting the IFRS NAV in such a way that stakeholders get the most relevant information about the fair value of assets and liabilities. The three different EPRA NAV indicators are calculated on the basis of the following scenarios:
Net Reinstatement Value: is based on the assumption that entities never sell assets and aims to reflect the value needed to rebuild the entity. The purpose of this indicator is to reflect what would be required to reconstitute the company through the investment markets based on the current capital and financing structure, including Real Estate Transfer Taxes.
De EPRA NRV per share concerns the EPRA NRV based on the number of shares in circulation on the balance sheet date.
32 The statutory auditor has performed an assessment (ISRE 2410) of the measures listed in this table.
| 33 | |
|---|---|
| 34 |
Net Tangible Assets: assumes that entities buy and sell assets, thereby realising certain levels of deferred taxation. This pertains to the NAV adjusted to include property and other long-term investments at fair value and to exclude certain items that are not expected to be firmly established in a business model with longterm investment properties.
De EPRA NTA concerns the EPRA NTA based on the number of shares in circulation on the balance sheet date.
| 35 | |
|---|---|
33 De IFRS NAV per share is calculated by dividing equity in accordance with IFRS by the number of shares entitled to dividend on the balance sheet date.
34 Adjustment compared to Q2 2022 press release, due to update in calculation method on deferred taxes (+1.31€/share).
35 Adjustment compared to Q2 2022 press release, due to update in calculation method on deferred taxes (+1.31€/share).
Net Disposal Value: provides the reader with a scenario of the sale of the company's assets leading to realization of deferred taxes, financial instruments, and certain or other adjustments for the full extent of their liability. This scenario assumes that the company that sells the assets, leading to the realisation of deferred taxes and the liquidation of debt and financial instruments. This NAV should not be considered a liquidation NAV as in many cases the fair value is not equal to the liquidation value.
The EPRA NDV per share concerns the EPRA NDV based on the number of shares in circulation on the balance sheet date.
| (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| IFRS Equity attributable to shareholders of the parent company | 1,310,248 | 1,158,778 |
| NAV per share $\left(\epsilon\right)$ share) | 71.83 | 70.70 |
| I. Hybrid instruments | ||
| Diluted NAV at fair value | 1,310,248 | 1,158,778 |
| To include: | ||
| IX. Remeasurements of the fair value of fixed-rate financing | $-84.588$ | -49.592 |
| NDV | 1,225,660 | 1,109,186 |
| Fully diluted number of shares | 18,318,970 | 16,422,856 |
| NDV per share $(E/\text{share})$ | 66.91 | 67.54 |
| 30/06/2023 | 31/12/2022 | |||||
|---|---|---|---|---|---|---|
| [EUR x 1.000] | (A) Estimated rental value (ERV) for vacancy |
(B) Estimated rental value portfolio (ERV) |
(A/B) ERPA Vacancy rate (in %) |
(A) Estimated rental value (ERV) for vacancy |
(B) Estimated rental value portfolio (ERV) |
(A/B) ERPA Vacancy rate (in %) |
| Belgium | 48.082 | $0.0\%$ | 45,629 | $0.0\%$ | ||
| France | - | 12.725 | $0.0\%$ | 118 | 12.215 | 1.0% |
| The Netherlands | 48.762 | $0.0\%$ | 714 | 47.696 | 1.5% | |
| Germany | ۰ | $0.0\%$ | ۰ | $0.0\%$ | ||
| TOTAL | 109.569 | 0.0% | 831 | 105.540 | 0.8% |
Definition: The EPRA NIY is an annualised rental income based on the cash rents passing at the balance sheet date, minus non-recoverable property operating expenses, divided by the market value of the property, plus (estimated) acquisition costs. The EPRA 'topped-up' NIY integrates an adjustment to the EPRA NIY for the expiry of rent-free periods (or other nonexpired rent incentives such as discounted rent or stepped rents)
Purpose: Introduce a comparable benchmark for portfolio valuations within Europe.
| EPRA NIY (EUR x 1.000) | 30/06/2023 | 31/12/2022 |
|---|---|---|
| Investment property - 100% ownership | 2,106,482 | 2,086,512 |
| Investment property - share of JVs/Funds | 0 | 0 |
| Assets for sale | 0 | 0 |
| Minus development projects | $-86,243$ | $-102,338$ |
| Completed real estate portfolio | 2,020,239 | 1,984,174 |
| Allowance for estimated purchase costs | 133,360 | 131,561 |
| Gross up completed real estate portfolio valuation B |
2,153,599 | 2,115,735 |
| Annualised cash passing rental income | 114,315 | 107,318 |
| Property outgoings (incl. concessions) | $-5.926$ | $-5,181$ |
| Annualised net rents A |
108,388 | 102,136 |
| Rent free periods or other lease incentives | 555 | |
| c "topped-up" net annualised rent |
108,389 | 102,691 |
| EPRANIY A/B |
5.03% | 4.83% |
| PRA "topped-up" NIY | C/B | 5.03% |
|---|---|---|
Purpose: The EPRA cost ratios are intended to provide a consistent basis from which companies can provide more information about the costs where necessary. It is an important measure to enable meaningful measurement of changes in a company's operating costs.
| EPRA COST RATIO (EUR x 1.000) | 30/06/2023 | 30/06/2022 | |
|---|---|---|---|
| (i) Administrative/operating expense line per IFRS income statement | 7,719 | 5,035 | |
| (iii) Management fees less actual/estimated profit element | $-256$ | $-208$ | |
| EPRA Costs (including direct vacancy costs) | A | 7.464 | 4,827 |
| (ix) Direct vacancy costs | $-245$ | $-405$ | |
| EPRA Costs (excluding direct vacancy costs) | в | 7.218 | 4,422 |
| (x) Gross Rental Income less ground rents - per IFRS | 56.839 | 46,614 | |
| Gross Rental Income | в | 56,839 | 46,614 |
| EPRA Cost Ratio (including direct vacancy costs) | A/C | 13.1% | 10.4% |
| EPRA Cost Ratio (excluding direct vacancy costs) | B/C | 12.7% | 9.5% |
The EPRA cost ratio is always higher in the first half of the year because of IFRIC 21 in the first quarter. For year-end 2023, it is estimated to land at around 11%, up from 31/12/2022 (8.8%). To ensure future growth, Montea is investing heavily in business development in France and Germany and corporate services. In a market where Montea focuses strongly on in-house developments, these investments in the teams will bear fruit in terms of rental income in the coming years, albeit at a slower pace. The EPRA cost ratio is thus expected to gradually decline again in the coming years.
Definition: The EPRA LTV is calculated by dividing the net debt by total property value (incl. solar panels).
Purpose: The EPRA LTV is an important measure to determine the percentage of debt to appraised property value.
| 30/06/2023 | 31/12/2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Proportionele Proportionate Consolidation | Proportionate Consolidation | |||||||||
| Share of joint | Share of material | Non-controlling | Share of joint | Share of material | Non-controlling | |||||
| EPRA LTV (EUR x 1.000) | Group as reported | ventures | associates | interests | Combined | Group as reported | ventures | associates | interests | Combined |
| Include: | ||||||||||
| Borrowings from Financial Institutions | 181,233 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 181,233 | 217,719 | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 217,719 |
| Commercial paper | $\overline{0}$ | $\theta$ | $\bf{0}$ | $\sim$ | ٠ | |||||
| Hybrids (including Convertibles, preference shares, debt, options, perpetuals) |
$\Omega$ | $\mathbf{0}$ | ||||||||
| Bond Loans | 662,594 | 662,594 | 662,450 | $\sim$ | ٠ | $\sim$ | 662,450 | |||
| Foreign Currency Derivatives (futures, swaps, options and forwards) |
$\theta$ | $\mathbf{0}$ | ||||||||
| Net Payables | 23,051 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $-1,590$ | 21,461 | 13,518 | $\sim$ | ٠ | $-799$ | 12,719 |
| Owner-occupied property (debt) | 830 | $\sim$ | $\overline{\phantom{a}}$ | 830 | 885 | $\sim$ | $\sim$ | $\sim$ | 885 | |
| Current accounts (Equity characteristic) | $\mathbf{0}$ | $\overline{\phantom{a}}$ | $\overline{0}$ | $\mathbf 0$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | |||
| Exclude: | ||||||||||
| Cash and cash equivalents | $-13,932$ | $\sim$ | $\sim$ | -5 | $-13,927$ | $-67,766$ | $\sim$ | $\sim$ | 8 | $-67,758$ |
| Net Debt (a) | 853,776 | $\mathbf{0}$ | $\mathbf{0}$ | $-1,586$ | 852,190 | 826,805 | $\mathbf{0}$ | $\mathbf{0}$ | $-791$ | 826,014 |
| Include: | ||||||||||
| Owner-occupied property | 1,989 | $\sim$ | 1,989 | 1,996 | $\sim$ | 1999 | $\sim$ | 1,996 | ||
| Investment properties at fair value | 2,020,979 | $\sim$ | $-2,052$ | 2,018,927 | 1,984,914 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $-4,029$ | 1,980,885 | |
| Properties held for sale | $\sqrt{ }$ | $\Omega$ | $\overline{0}$ | $\overline{\phantom{a}}$ | ٠ | ÷. | ||||
| Properties under development | 86,243 | $\sim$ | $\sim$ | $-2,569$ | 83,674 | 102,338 | $\sim$ | $\overline{\phantom{a}}$ | $-4,387$ | 97,951 |
| Intangibles | 543 | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 543 | 567 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | 567 |
| Net Receivables | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | $\overline{\phantom{a}}$ | ٠ | $\overline{\phantom{a}}$ | $\cap$ | |||
| Financial assets | $\theta$ | $\Omega$ | $\mathbf{0}$ | $\sim$ | $\overline{\phantom{a}}$ | |||||
| Total Property Value (b) | 2,109,754 | $\mathbf{0}$ | $\mathbf{0}$ | $-4,621$ | 2,105,133 | 2,089,815 | $\mathbf{0}$ | $\mathbf{0}$ | $-8,416$ | 2,081,399 |
| LTV(a/b) | 40.5% | a. | A | ٠ | 40.5% | 39.6% | A | A | $\sim$ | 39.7% |
| RESULT ON PORTFOLIO (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Result on sale of investment properties | 19. | |
| Changes in the fair value of investment properties | $-9.547$ | 121.481 |
| Deferred taxes on the portfolio result | 20.747 | -17.523 |
| RESULT ON PORTFOLIO | 11.200 | 103.976 |
| excl. changes in fair value of financial instruments (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Financial result | $-11.297$ | 35.310 |
| To exclude: | ||
| Variaties in de reële waarde van financiële activa & passiva | 1.572 | -42.264 |
| FINANCIAL RESULT excl. changes in fair value of financial instruments | $-9.725$ | $-6.954$ |
36 Excluding EPRA indicators some of which are considered as an APM and are calculated under the annex 2 EPRA Performance measures. The allocation performance measures have been the subject of a limited review by the statutory auditor.
| Definition: | This is the operating result before the result of the property portfolio, divided by the | ||
|---|---|---|---|
| property result. |
Purpose: This APM measures the operational profitability of the company as a percentage of the property result.
| OPERATING MARGIN (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Property result | 56.154 | 46.461 |
| Operating result (before the portfolio result) | 49.452 | 41.891 |
| OPERATING MARGIN | 88.1% | 90.2% |
Definition: Average financial cost over the ongoing year calculated on the basis of the total financial result compared to the average of the initial balance and end balance of the financial debt burden without taking into account the valuation of the hedging instruments and interest charges of leasing debts in respect of IFRS 16.
Purpose: The company finances itself partially through debt financing. This APM measures the cost of this source of financing and the possible impact on the results.
| AVERAGE COST OF DEBT (EUR x 1.000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Financial result | $-11.297$ | 35,310 |
| To exclude: | ||
| Other financial income and charges | $-327$ | 44 |
| Changes in fair value of financial assets and liabilities | 1,572 | $-42.264$ |
| Interest cost related to lease obligations (IFRS 16) | 1.154 | 1.063 |
| Activated interest charges | $-965$ | $-586$ |
| TOTAL FINANCIAL CHARGES (A) | $-9.863$ | $-6,433$ |
| AVERAGE OUTSTANDING FINANCIAL DEBTS (B) | 938.052 | 715,947 |
| AVERAGE COST OF DEBTS (A/B) | 2.1% | 1.8% |
Definition: The net debt/EBITDA is calculated by dividing net financial debts, i.e., long-term and current financial debts minus cash and cash equivalents (numerator) by the EBITDA of the past twelve months (TTM) (denominator). EBITDA is considered to be the operating result before portfolio result plus depreciation.
To calculate the Adjusted net debt/EBITDA, the net financial debts in the numerator are adjusted for ongoing projects in execution multiplied by the debt ratio as these projects do not yet generate an operational result but are already included in financial debts. In addition, there is also an adjustment in the denominator for the annualized impact of external growth.
Purpose: This APM gives an indication of how long a company would have to operate at its current level to pay off all its debts.
| (Adjusted) NET DEBT / EBITDA (EUR x 1.000) | 30/06/2023 | 31/12/2022 |
|---|---|---|
| Non-current and current financial debt (IFRS) | 895,344 | 932,886 |
| - Cash and cash equivalents (IFRS) | $-13.932$ | $-67,766$ |
| Net debt (IFRS) | 881,413 | 865,120 |
| - Projects under development x debt ratio | $-40.879$ | $-41,621$ |
| Net debt (adjusted) | 840,534 | 823,499 |
| Operating result (before the portfolio result) (IFRS) (TTM) 1 | 98,581 | 91,020 |
| + Depreciations 1 | 405 | 432 |
| Adjustment to normalized EBITDA | 3.202 | 6,752 |
| EBITDA (adjusted) | 102,188 | 98,204 |
| Net debt / EBITDA (adjusted) | 8.2 | 8.4 |
| NET DEBT / EBITDA (EUR x 1.000) | 30/06/2023 | 31/12/2022 | |
|---|---|---|---|
| Non-current and current financial debt (IFRS) | 895,344 | 932,886 | |
| - Cash and cash equivalents (IFRS) | $-13.932$ | $-67.766$ | |
| Net debt (IFRS) | А | 881.413 | 865,120 |
| Operating result (before the portfolio result) (IFRS) (TTM) 1 | B | 98.581 | 91,020 |
| + Depreciations 1 | 405 | 432 | |
| EBITDA (IFRS) | 98.986 | 91,452 | |
| Net debt / EBITDA | A/C | 8.9 | 9.5 |
Definition: The interest coverage ratio is calculated by the sum of the operating result before the result on the portfolio, together with the financial income, divided by the net interest costs.
Purpose: This APM indicates how many times the company earns its interest charges.
| 37 | |
|---|---|
37 The amount for net financial costs for 2022 was adjusted by intercalary interest.
| 30/06/2023 | 31/12/2022 | 30/06/2022 | ||
|---|---|---|---|---|
| CONSOLIDATED PROFIT & LOSS ACCOUNT (EUR x 1.000) | 6 months | 12 months | 6 months | |
| L. | Rental income | 52,122 | 90,729 | 42,710 |
| Ш. | Reversal of lease payments sold and discounted | 0 | $\mathbf{0}$ | $\mathbf{0}$ |
| Ш. | Rental-related expenses | $-91$ | 160 | $-16$ |
| NET RENTAL RESULT | 52,031 | 90,889 | 42,693 | |
| IV. | Recovery of property charges | $\mathbf{0}$ | 0 | $\Omega$ |
| V. | Recovery of rental charges and taxes normally borne by tenants on let properties | 4,796 | 10,177 | 4,594 |
| VI. | Costs payable by tenants and borne by the landlord for rental damage and refurbishment at end of lease |
0 | 0 | 0 |
| VII. | Rental charges and taxes normally borne by tenants on let properties | $-5.973$ | $-11,257$ | $-5,247$ |
| VIII. | Other rental-related income and expenses | 5,300 | 10,105 | 4,420 |
| PROPERTY RESULT | 56,154 | 99,913 | 46,461 | |
| IX. | Technical costs | $-63$ | $-30$ | $\bf{0}$ |
| Х. | Commercial costs | $-124$ | $-127$ | $-52$ |
| XI. | Charges and taxes of non-let properties | $-245$ | $-349$ | $-405$ |
| XII. | Property management costs | $-1,197$ | $-1,459$ | $-838$ |
| XIII. | Other property charges | $-50$ | $-38$ | $-17$ |
| PROPERTY CHARGES | $-1,679$ | $-2,003$ | $-1,313$ | |
| PROPERTY OPERATING RESULT | 54,476 | 97,910 | 45,148 | |
| XIV. | General corporate expenses | $-5,193$ | $-6,742$ | $-3,423$ |
| XV. | Other operating income and expenses | 170 | $-148$ | 167 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 49,452 | 91,020 | 41,891 | |
| XVI. | Result on disposal of investment properties | 0 | 19 | 19 |
| XVII. | Result on disposal of other non-financial assets | $\overline{0}$ | $\Omega$ | $\Omega$ |
| XVIII. | Changes in fair value of investment properties | $-9.547$ | 92,864 | 121,481 |
| XIX. | Other portfolio result | $\overline{0}$ | $\Omega$ | $\Omega$ |
| OPERATING RESULT | 39,905 | 183,903 | 163,391 | |
| XX. | Financial income | 382 | 171 | 56 |
| XXI. | Net interest charges | $-10,052$ | $-17,931$ | $-6,910$ |
| XXII. | Other financial charges | $-55$ | $-189$ | $-100$ |
| XXIII. | Changes in fair value of financial assets & liabilities | $-1,572$ | 58,408 | 42,264 |
| FINANCIAL RESULT | $-11,297$ | 40,460 | 35,310 | |
| XXIV. | Share in the result of associates and joint ventures | $\overline{0}$ | $\mathbf{0}$ | $\mathbf{0}$ |
| PRE-TAX RESULT | 28,608 | 224,362 | 198,701 | |
| XXV. | Income tax | 23,307 | $-19,904$ | $-19,948$ |
| XXVI. | Exit tax | $\overline{0}$ | 0 | $\mathbf{0}$ |
| TAXES | 23,307 | $-19,904$ | $-19,948$ | |
| NET RESULT | 51,915 | 204,458 | 178,753 | |
| Attributable to: | ||||
| Shareholders of the parent company | 51,760 | 204,505 | 178,656 | |
| Minority interests | 155 | -46 | 96 | |
| Number of shares in circulation at the end of the period | 18,318,970 | 18,025,220 | 16,422,856 | |
| Weighted average number of shares for the period | 18,059,302 | 16,538,273 | 16,239,519 | |
| NET RESULT per share (EUR) | 2.87 | 12.36 | 11.01 |
| CONSOLIDATED BALANCE SHEET (EUR x 1.000) | 30/06/2023 | 31/12/2022 | 30/06/2022 | ||
|---|---|---|---|---|---|
| 6 months | 12 months | 6 months | |||
| NON-CURRENT ASSETS | 2,232,697 | 2,216,000 | 2,076,071 | ||
| ı. | A. Goodwill | $\mathbf{0}$ | $\bf{0}$ | 0 | |
| B. Intangible assets | 543 | 567 | 694 | ||
| C. Investment properties | 2,140,262 | 2,124,563 | 2,012,873 | ||
| D. | Other tangible assets | 52,860 | 50,273 | 37,295 | |
| Е. | Non-current financial assets | 38,801 | 40,367 | 24,987 | |
| F. | Finance lease receivables | 0 | 0 | $\mathbf{0}$ | |
| G. Trade receivables and other non-current assets | 230 | 230 | 222 | ||
| H. Deferred taxes lassets) | 0 | 0 | 0 | ||
| L. | Participations in associates and joint ventures according to the equity method | 0 | 0 | $\Omega$ | |
| CURRENT ASSETS | 47,689 | 111,712 | 71,982 | ||
| Ш. | A. Assets held for sale | $\bf{0}$ | 0 | 0 | |
| B. Current financial assets | $\overline{0}$ | $\bf{0}$ | 0 | ||
| C. Finance lease receivables | $\overline{0}$ | $\bf{0}$ | $\mathbf{0}$ | ||
| D. Trade receivables | 20,941 | 24,607 | 18,053 | ||
| E. Tax receivables and other current assets | 4,317 | 13,458 | 12,579 | ||
| F. | Cash and cash equivalents | 13,932 | 67,766 | 36,697 | |
| G. Deferred charges and accrued income | 8,499 | 5,881 | 4,653 | ||
| TOTAL ASSETS | 2,280,386 | 2,327,712 | 2,148,053 | ||
| TOTAL SHAREHOLDERS' EQUITY | 1,312,831 | 1,301,220 | 1,160,218 | ||
| Т. | Shareholders' equity attributable to shareholders of the parent company | 1,310,248 | 1,297,636 | 1,158,778 | |
| A. Share capital | 359,975 | 353,244 | 323,312 | ||
| B. Share premiums | 334,325 | 319,277 | 249,381 | ||
| C. Reserves | 564,032 | 420,657 | 407,332 | ||
| D. Net result of the financial year | 51,915 | 204,458 | 178,753 | ||
| Ш. | Minority interests | 2,583 | 3,584 | 1,440 | |
| LIABILITIES | 967,555 | 1,026,492 | 987,836 | ||
| т. | Non-current liabilities | 856,768 | 909,109 | 760,255 | |
| A. Provisions | $\overline{0}$ | 0 | 0 | ||
| B. Non-current financial debts | 841,366 | 872,967 | 720,395 | ||
| a. Credit institutions | 130,729 | 161,271 | 231,341 | ||
| b. Financial leasings | 562 | 595 | 688 | ||
| c. Other | 710,075 | 711,101 | 488,366 | ||
| C. Other non-current financial liabilities | $\overline{0}$ | $-7$ | 757 | ||
| D. Trade debts and other non-current debts | $\overline{0}$ | 0 | 0 | ||
| Е. | Other non-current liabilities | $\overline{0}$ | 0 | 0 | |
| F. Deferred taxes - liabilities | 15,402 | 36,149 | 39,102 | ||
| Ш. | Current liabilities | 110,787 | 117,383 | 227,581 | |
| A. Provisions | 0 | 0 | 0 | ||
| B. Current financial debts | 53,978 | 59,919 | 181,940 | ||
| a. Credit institutions | 51,333 | 57,333 | 179,500 | ||
| b. Financial leasings | 118 | 110 | 111 | ||
| c. Other | 2,527 | 2,475 | 2,328 | ||
| C. Other current financial liabilities | $\overline{0}$ | 0 | $\mathbf{0}$ | ||
| D. Trade debts and other current debts | 26,311 | 28,407 | 22,643 | ||
| a. Exit tax | 3,595 | 6,067 | 5,795 | ||
| b. Other | 22,716 | 22,340 | 16,848 | ||
| E. Other current liabilities | 1,775 | 2,343 | 166 | ||
| F. Accrued charges and deferred income | 28,722 | 26,714 | 22,832 | ||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 2,280,386 | 2,327,712 | 2,148,053 |
| CHANGES IN SHAREHOLDERS' EQUITY (EUR x 1.000) | capital | premiums | Reserves | Result | Minority interest | equity |
|---|---|---|---|---|---|---|
| ON 31/12/2021 | 323,777 | 234,693 | 228,779 | 227,848 | 1,183 | 1,016,280 |
| Elements directly recognized as equity | 29,467 | 84,584 | 13,092 | 0 | 2,448 | 129,591 |
| Capital increase | 35,627 | 84,584 | $\Omega$ | $\Omega$ | $\Omega$ | 120,211 |
| Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investment properties | $\mathbf{0}$ | $\overline{0}$ | $\Omega$ | $\mathbf{0}$ | $\Omega$ | $\sqrt{ }$ |
| Positive change in value of solar panels (IAS 16) | $\Omega$ | $\mathbf{0}$ | 14,928 | $\mathbf 0$ | $\overline{0}$ | 14,928 |
| Own shares | $-14.649$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $-14,649$ |
| Shares held for employee option plan | 8,489 | $\mathbf{0}$ | $-1,695$ | $\mathbf{0}$ | $\mathbf 0$ | 6,794 |
| Minority interests | $\Omega$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 2,287 | 2,287 |
| Corrections | $\mathbf{0}$ | $\mathbf{0}$ | $-141$ | $\mathbf 0$ | 161 | 20 |
| Dividends | $\mathbf{0}$ | $\overline{0}$ | $-49,109$ | $\mathbf{0}$ | $\mathbf 0$ | $-49,109$ |
| Result carried forward | $\mathbf{0}$ | $\mathbf{0}$ | 227,848 | $-227.848$ | $\cap$ | $\sqrt{ }$ |
| Result for the financial year | $\Omega$ | $\Omega$ | 46 | 204,458 | $-46$ | 204,458 |
| ON 31/12/2022 | 353,244 | 319,277 | 420,656 | 204,458 | 3,584 | 1,301,220 |
| Elements directly recognized as equity | 6,731 | 15,049 | $-1,499$ | $\bf{0}$ | $-1,355$ | 18,925 |
| Capital increase | 5,968 | 15,049 | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | 21,017 |
| Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investment properties | $\mathbf{0}$ | $\Omega$ | $\Omega$ | $\mathbf 0$ | $\overline{0}$ | $\Omega$ |
| Positive change in value of solar panels (IAS 16) | $\mathbf{0}$ | $\overline{0}$ | $-1,339$ | $\mathbf{0}$ | $\mathbf 0$ | $-1,339$ |
| Own shares | $\Omega$ | $\mathbf{0}$ | $\Omega$ | $\mathbf{0}$ | $\overline{0}$ | $\sqrt{ }$ |
| Shares held for employee option plan | 763 | $\mathbf{0}$ | $-333$ | $\mathbf{0}$ | $\Omega$ | 430 |
| Minority interests | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $-1,355$ | $-1,355$ |
| Corrections | $\Omega$ | $\mathbf{0}$ | 172 | $\mathbf{0}$ | $\Omega$ | 172 |
| Dividends | $\mathbf{0}$ | $\overline{0}$ | $-59,230$ | $\mathbf{0}$ | $\overline{0}$ | $-59,230$ |
| Result carried forward | $\mathbf{0}$ | $\Omega$ | 204,458 | $-204,458$ | $\sqrt{ }$ | $\sqrt{ }$ |
| Result for the financial year | $\Omega$ | $\Omega$ | $-354$ | 51,915 | 354 | 51,915 |
| ON 30/06/2023 | 359,975 | 334,325 | 564,031 | 51,915 | 2.584 | 1,312,831 |
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR x 1.000) |
30/06/2023 6 months |
31/12/2022 12 months |
30/06/2022 6 months |
|---|---|---|---|
| NET RESULT | 51.915 | 204,458 | 178,753 |
| Other items of the comprehensive income | $-1,339$ | 14,928 | 46 |
| Items taken in the result: | 0 | 0 | |
| Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investments properties |
O | $\mathbf{0}$ | |
| Changes in the effective part of the fair value of authorized cash flow hedges |
0 | $\Omega$ | |
| Items not taken in the result | $-1,339$ | 14,928 | 46 |
| Impact of changes in fair value of solar panels | $-1,339$ | 14,928 | 46 |
| COMPREHENSIVE INCOME | 50.576 | 219.387 | 178,798 |
| Attributable to: | |||
| Shareholders of the parent company | 50,421 | 219,433 | 178,702 |
| Minority interests | 155 | -46 | 96 |
41 The financial statements have been subject to a limited review by the statutory auditor.
| CONSOLIDATED CASH FLOW STATEMENT (EUR x 1.000) | 30/06/2023 6 months |
30/06/2022 6 months |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR | 67,766 | 15,172 |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A)+(B)+(C) = (A1) | 59,611 | 35,320 |
| Net result | 51,915 | 178,753 |
| Net interest costs | 10,052 | 6.910 |
| Financial income | $-382$ | $-56$ |
| Taxes | $-23,307$ | 19.948 |
| Gain (-)/loss (+) on disposal of investment properties | $\Box$ | $-19$ |
| Cash flow from operating activities before adjustments of non-cash items and working capital (A) |
38,278 | 205,536 |
| Changes in fair value of hedging instruments | 1.572 | $-42,264$ |
| Changes in fair value of investment properties | 9.547 | $-121.481$ |
| Equity-settled share-based payment expense | 430 | $-4,616$ |
| Depreciation and amortization (addition (+)/reversal (-)) on fixed assets | 160 | 187 |
| Impairment losses on receivables, inventories and other assets | 91 | 16 |
| Adjustments for non-cash items (B) | 11,801 | $-168,157$ |
| Decrease (+)/increase (-) in trade and other receivables | 10,188 | $-1.221$ |
| Increase (+)/decrease (-) in trade and other payables | $-656$ | $-838$ |
| Increase (+)/decrease (-) in working capital requirement (C) | 9,533 | $-2,059$ |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES (B1) | $-27,466$ | $-224,350$ |
| Acquisitions | $-27,466$ | $-224,403$ |
| Payments regarding acquisitions of real estate investments | $-24.045$ | $-211,460$ |
| Payments regarding acquisitions of buildings intended for sale | $\Box$ | n. |
| Payments regarding acquisitions of shares in real estate companies | $-3,265$ | $-12,725$ |
| Purchase of other tangible and intangible fixed assets | $-156$ | $-219$ |
| Disposals | $\bf{0}$ | 53 |
| Proceeds from sale of investment properties | $\overline{0}$ | 53 |
| Proceeds from sale of buildings held for sale | $\Omega$ | $\Box$ |
| Proceeds from sale of shares in real estate companies | $\Omega$ | $\Omega$ |
| NET FINANCIAL CASH FLOW (C1) | $-85,980$ | 210,555 |
| Net effect of withdrawal and repayment of loans | $-36,000$ | 246,967 |
| Capital increase | 21,017 | 18,850 |
| Dividends paid | $-59,230$ | $-49,109$ |
| Interests paid | $-11,767$ | $-6,153$ |
| CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (A1+B1+C1) | 13,932 | 36,697 |
42 The financial statements have been subject to a limited review by the statutory auditor.
| CONSOLIDATED PROFIT & LOSS ACCOUNT | 30/06/2023 | 30/06/2023 | 30/06/2023 | 30/06/2023 | 30/06/2023 | 30/06/2023 | |
|---|---|---|---|---|---|---|---|
| [EUR x 1.000] | BE | FR. | NL | DE | Unallocated | 12 months | |
| T. | Rental income | 22,098 | 6,299 | 22,726 | 999 | 0 | 52,122 |
| Ш. | Reversal of lease payments sold and discounted | 0 | 0 | 0 | 0 | 0 | $\mathbf{0}$ |
| III. | Rental-related expenses | $-69$ | $-22$ | 0 | $\mathbf 0$ | $\mathbf{0}$ | $-91$ |
| NET RENTAL RESULT | 22,030 | 6,277 | 22,726 | 999 | 0 | 52,031 | |
| IV. | Recovery of property charges | 0 | 0 | 0 | $\mathbf{0}$ | 0 | $\mathbf{0}$ |
| V. | Recovery of rental charges and taxes normally borne by tenants on let properties |
2.168 | 1,291 | 1.161 | 175 | 0 | 4.796 |
| VI. | Costs payable by tenants and borne by the landlord for rental damage and refurbishment at end of lease |
0 | 0 | $\bf{0}$ | $\mathbf{0}$ | 0 | $\mathbf{0}$ |
| VII. | Rental charges and taxes normally borne by tenants on let properties |
$-2.342$ | $-1,406$ | $-2,052$ | -173 | 0 | $-5,973$ |
| VIII. | Other rental-related income and expenses | 4,603 | 189 | 508 | 0 | 0 | 5,300 |
| PROPERTY RESULT | 26,459 | 6,351 | 22,344 | 1,001 | 0 | 56,154 | |
| IX. | Technical costs | 0 | $-51$ | $-12$ | $\mathbf{0}$ | 0 | $-63$ |
| Х. | Commercial costs | $-1$ | $-29$ | -94 | 0 | 0 | $-124$ |
| XI. | Charges and taxes of non-let properties | $-192$ | $-48$ | $-5$ | 0 | 0 | $-245$ |
| XII. | Property management costs | $-538$ | $-455$ | $-205$ | $\mathbf{0}$ | 0 | $-1,197$ |
| XIII. | Other property charges | -47 | $-4$ | 0 | 0 | 0 | $-50$ |
| PROPERTY CHARGES | -777 | -586 | $-315$ | 0 | 0 | $-1,679$ | |
| PROPERTY OPERATING RESULT | 25,682 | 5,764 | 22,028 | 1,001 | 0 | 54,476 | |
| XIV. | General corporate expenses | 0 | 0 | 0 | $\mathbf{0}$ | $-5,193$ | $-5,193$ |
| XV. | Other operating income and expenses | 158 | $-19$ | 28 | 3 | 0 | 170 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 25,839 | 5,745 | 22,056 | 1,005 | $-5,193$ | 49,452 | |
| XVI. | Result on disposal of investment properties | 0 | 0 | 0 | 0 | 0 | $\theta$ |
| XVII. | Result on disposal of other non-financial assets | 0 | 0 | $\Omega$ | $\mathbf{0}$ | 0 | $\Omega$ |
| XVIII. | Changes in fair value of investment properties | $-8,730$ | $-6,272$ | 8,266 | $-2,810$ | 0 | $-9,547$ |
| XIX. | Other portfolio result | 0 | 0 | $\mathbf{0}$ | $\Omega$ | 0 | $\Omega$ |
| OPERATING RESULT | 17,109 | $-527$ | 30,322 | $-1,806$ | $-5,193$ | 39,905 | |
| XX. | Financial income | 382 | 0 | 0 | 0 | 0 | 382 |
| XXI. | Net interest charges | $-10,036$ | 83 | -98 | 0 | 0 | $-10,052$ |
| XXII. | Other financial charges | $-44$ | $-5$ | $-5$ | $-1$ | 0 | $-55$ |
| XXIII. | Changes in fair value of financial assets & liabilities | $-1,572$ | 0 | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $-1,572$ |
| FINANCIAL RESULT | $-11,270$ | 77 | $-104$ | $-1$ | 0 | $-11,297$ | |
| XXIV. Share in the result of associates and joint ventures | 0 | 0 | $\bf{0}$ | 0 | 0 | $\mathbf{0}$ | |
| PRE-TAX RESULT | 5,839 | $-449$ | 30,218 | $-1,807$ | $-5,193$ | 28,608 | |
| XXV. | Income tax | $-1,324$ | $-57$ | 24,774 | -86 | 0 | 23,307 |
| XXVI. Exit tax | 0 | 0 | $\mathbf{0}$ | 0 | 0 | $\mathbf{0}$ | |
| TAXES | $-1,324$ | -57 | 24,774 | -86 | 0 | 23,307 | |
| NET RESULT | 4,515 | $-506$ | 54,992 | $-1,893$ | $-5,193$ | 51,915 | |
| EPRA RESULT | 14,818 | 5,766 | 25,979 | 918 | $-5,193$ | 42,288 | |
| Weighted average number of shares for the period | 18,059,302 | 18,059,302 | 18,059,302 | 18,059,302 | 18,059,302 | 18,059,302 | |
| NET RESULT PER SHARE | 0.25 | $-0.03$ | 3.05 | $-0.10$ | $-0.29$ | 2.87 | |
| EPRA RESULT PER SHARE | 0.82 | 0.32 | 1.44 | 0.05 | $-0.29$ | 2.34 |
| CONSOLIDATED BALANCE SHEET (EUR x 1.000) | 30/06/2023 BE |
30/06/2023 FR |
30/06/2023 NL |
30/06/2023 DE |
30/06/2023 ELIM. |
30/06/2023 CONSO |
||
|---|---|---|---|---|---|---|---|---|
| NON-CURRENT ASSETS | 1,331,991 | 248,097 | 905,433 | 32,766 | $-285,590$ | 2,232,697 | ||
| Ъ. | А. | Goodwill | 0 | 0 | 0 | 0 | 0 | $\mathbf{0}$ |
| В. | Intangible assets | 543 | 0 | 0 | $\mathbf{0}$ | 0 | 543 | |
| С. | Investment properties | 980.150 | 244,254 | 883,101 | 32,758 | $\mathbf{0}$ | 2,140,262 | |
| D. | Other tangible assets | 26,714 | 3,805 | 22,333 | 8 | 0 | 52,860 | |
| Е. | Non-current financial assets | 324,391 | 0 | 0 | 0 | $-285,590$ | 38,801 | |
| F. | Finance lease receivables | $\mathbf{0}$ | 0 | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\theta$ | |
| G. | Trade receivables and other non-current assets | 193 | 38 | 0 | 0 | 0 | 230 | |
| Н. | Deferred taxes (assets) | 0 | $\bf{0}$ | 0 | 0 | 0 | $\overline{0}$ | |
| T. | Participations in associates and joint ventures according to the equity method |
$\mathbf{0}$ | 0 | 0 | 0 | 0 | $\mathbf{0}$ | |
| CURRENT ASSETS | 482,337 | 8,236 | 15,161 | 461 | $-458,506$ | 47,689 | ||
| Ш. | А. | Assets held for sale | 0 | 0 | 0 | 0 | 0 | $\mathbf{0}$ |
| В. | Current financial assets | $\mathbf 0$ | 0 | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\mathbf{0}$ | |
| C. | Finance lease receivables | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\theta$ | |
| D. | Trade receivables | 12,386 | 5,008 | 7,352 | 134 | $-3,940$ | 20,941 | |
| Е. | Tax receivables and other current assets | 453,479 | 937 | 4,373 | 96 | -454,566 | 4,317 | |
| F. | Cash and cash equivalents | 13,922 | 0 | 0 | 10 | 0 | 13,932 | |
| G. Deferred charges and accrued income | 2,551 | 2,292 | 3,436 | 220 | 0 | 8,499 | ||
| TOTAL ASSETS | 1,814,328 | 256,333 | 920,594 | 33,226 | $-744.096$ | 2,280,386 | ||
| TOTAL SHAREHOLDERS' EQUITY | 895,343 | 141,043 | 524,817 | 5,373 | $-253,744$ | 1,312,831 | ||
| ı. | Shareholders' equity attributable to shareholders of the parent company |
892,760 | 141,043 | 524,817 | 5,373 | $-253,744$ | 1,310,248 | |
| А. | Share capital | 359,975 | 0 | 217,892 | 99 | $-217,991$ | 359,975 | |
| В. | Share premiums | 334,325 | 0 | 0 | $\mathbf{0}$ | $\mathbf{0}$ | 334,325 | |
| C. | Reserves | 194,577 | 142,546 | 255,074 | 7,589 | $-35,754$ | 564,032 | |
| D. Net result of the financial year | 3,882 | $-1,503$ | 51,850 | $-2,315$ | $\mathbf{1}$ | 51,915 | ||
| Ш. | Minority interests | 2,583 | 0 | 0 | 0 | 0 | 2,583 | |
| LIABILITIES | 918,985 | 115,291 | 395,777 | 27,854 | $-490,352$ | 967,555 | ||
| ı. | Non-current liabilities | 835,809 | 1,423 | 19,537 | 27,158 | $-27,158$ | 856,768 | |
| A. | Provisions | $\mathbf{0}$ | $\Omega$ | 0 | $\Omega$ | $\mathbf{0}$ | $\Omega$ | |
| В. | Non-current financial debts | 835,627 | 1.423 | 4,316 | 27,158 | $-27,158$ | 841,366 | |
| C. Other non-current financial liabilities | 0 | 0 | 0 | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | ||
| D. Trade debts and other non-current debts | 0 | 0 | $\bf{0}$ | 0 | 0 | 0 | ||
| E. | Other non-current liabilities | $\overline{0}$ | 0 | $\Omega$ | $\overline{0}$ | 0 | $\overline{0}$ | |
| F. | Deferred taxes - liabilities | 182 | 0 | 15,220 | 0 | $\overline{0}$ | 15,402 | |
| Ш. | Current liabilities | 83,177 | 113,868 | 376,241 | 695 | $-463,193$ | 110,787 | |
| А. | Provisions | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | |
| В. | Current financial debts | 53,694 | 82 | 202 | $\bf{0}$ | $\mathbf 0$ | 53,978 | |
| C. Other current financial liabilities | $\Omega$ | $\mathbf{0}$ | $\Omega$ | $\bf{0}$ | $\mathbf{0}$ | $\Box$ | ||
| D. Trade debts and other current debts | 14,339 | 3,730 | 12,399 | 963 | $-5,120$ | 26,311 | ||
| Е. | Other current liabilities | 1,468 | 106,440 | 352,787 | $-627$ | $-458,292$ | 1,775 | |
| F. Accrued charges and deferred income TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES |
13,676 1,814,328 |
3,615 256,333 |
10,853 920,594 |
359 33,226 |
219 $-744,096$ |
28,722 2,280,386 |
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