Earnings Release • May 11, 2017
Earnings Release
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Interim statement from the Board of Directors 1st quarter 2017
REGULATED INFORMATION 11 May 2017 After trading hours Under embargo until 17h45
Public limited liability company (société anonyme/naamloze vennootschap), Public Regulated Real Estate Company (Société Immobilière Réglementée (SIR) / Gereglementeerde Vastgoedvennootschap (GVV)) under Belgian Law Registered Office: 3 Horstebaan, 2900 Schoten Companies Registration No. 0456.378.070 (LPR Antwerp) (the "Company")
1st quarter 2017 - 31 March 2017
During the first quarter of the financial year 2017, Care Property Invest focused on the expansion of its real estate portfolio, including the acquisition of its first projects in the Brussels Capital Region and the Walloon Region.
The Herfstvrede project in Moerbeke, for which the construction works have started on 4 April 2016, has been provisionally completed on 23 February 2017. As from 1 April 2017, this project generates additional revenues for the Company. "Herfstvrede" is a facility for the elderly consisting of 22 assisted living apartments for which Care Property Invest acted as the principal master builder. On 31 March 2017, the balance sheet showed a sum of €3,632,217.62 as a "finance lease receivables" with regard to this group of assisted-living apartments.
The building permit has now been acquired for a second project in which Care Property Invest acts as the principal master builder, "Huis Driane" in Herenthout, a home for the elderly consisting of 22 assisted-living apartments. Before this building permit was submitted, the PCSW decided, in order to further increase the economic profitability of the project, to raise the number of assisted-living apartments from 20 to 22. Care Property Invest has received the commencement order from the PCSW Herenthout on 6 March 2017. The construction works for the projects have started on 5 April 2017. The delivery of the project is scheduled for the spring of 2018. On 31 March 2017, the balance sheet showed a sum of €56,565.48 as a "receivable for projects in preparation" with regard to this group of assisted living apartments.
On 28 February 2017, Care Property Invest announced the acquisition of the development of a planned residential care centre in Vorst. Hereto the Company has purchased the building land on which the residential care centre will be developed as well as taken over all agreements related to the construction of the residential care centre. The residential care centre will consist of 118 residential places, licensed by COCOM.
After the provisional delivery, the residential care centre will be operated by a subsidiary of Anima Care nv (a subsidiary of Ackermans & Van Haaren), through a long-term lease agreement of the triple net type.
The building permit for the construction of the residential care centre has already been granted and therefore the construction works connected to this new development will presumably start in 2017 and will be completed within a time period of maximum 24 months.
The building land was fully financed with external resources and the new building will be financed with a combination of equity and debt. The total investment cost is estimated to be approximately €15.2 million.
On 17 February 2017, Care Property Invest announced the agreement under suspensory conditions on the acquisition of the residential care centre with service flats "Les Terrasses du Bois" in Watermaal- Bosvoorde (Brussels Capital Region) through a contribution in kind of the aforementioned property. The residential care centre and service flats is operated by Home Sebrechts NV, a subsidiary of Armonea, through a lease agreement.
The centrally located project contains 34 service flats and the residential care centre consists of 130 rooms, divided in 117 single rooms and 13 double rooms, spread over 9 floors.
This new expansion of the portfolio was finalised on 15 March 2017 through a contribution in kind of the aforementioned property into the capital of Care Property Invest, within the context of the authorised capital. The transaction has been successfully completed on 15 March 2017 and has led to a strengthening of the equity of €33,563,407. More information with regarding this capital increase can be found in paragraph 1.2 "Capital increase and new share issue".
With these new investments (Vorst and Watermaal-Bosvoorde), Care Property Invest is further expanding its property portfolio. These projects represent important milestones for Care Property Invest, since "Les Terrasses du Bois" is its first project in the Brussels-Capital Region and the first project to be operated by Armonea.
The new development in Vorst is the second project for Care Property Invest in the Brussels-Capital Region and is perfectly in line with the part of its strategy that involves geographical expansion. In addition, this is the first time for Care Property Invest to collaborate with a subsidiary of Anima Care nv (which in turn is a subsidiary of Ackermans & Van Haaren).
On 23 February 2017, Care Property Invest announced the agreement subject to suspensory conditions on the acquisition of 100% of the shares of the company Siger SA. Siger SA possesses 100% of the shares of Dermedil SA, the owner of the property. The aforementioned property is "Residence Bois de Bernihè", located in Libramont.
The residential care centre and assisted living complex will be operated by Vulpia Wallonie asbl, through a lease agreement of the triple net type. The project is a four-storey building, built in 2013, and houses a residential care centre with 95 rooms, accomodating 108 residents. One room is available for short-term stays. The 18 assisted living apartments can be found on the third storey of the building.
This purchase will be financed using external credit lines and the closing is expected to take place during the second quarter of 2017, after all suspensory conditions have been met. The project " Bois de Bernihè" is also an important milestone for Care property Invest as it is its first project in the Walloon Region.
The Company would like to refer specifically to the letter of intent that it has signed under conditions precedent on 19 September 2016, for the acquisition of 100% of the shares of a company owning a residential care centre in Flemish Brabant (see also "Interim statement from the Board of Directors 3rd quarter 2016", that can be consulted on the Company's website, www.carepropertyinvest.be)
The contractual value of this residential care centre is estimated at €17 million and the operation is in the hands of an experienced operator. Further communication on this will follow after the realisation of the conditions precedent.
After concluding these investments, the property portfolio of the Company will consist of 88 projects total, of which 2 projects under development. After the contribution in kind of the Watermaal-Bosvoorde project, the equity of the Company has already risen by €33,563,407 in the first quarter of 2017.
As mentioned above in paragraph 1.1.2 "Investment properties", Care Property Invest announced the agreement on the acquisition of "Les Terrasses du Bois". On 15 March 2017, the acquisition was finalised through a contribution in kind of the aforementioned property into the capital of Care Property Invest, within the context of the authorised capital, after a decision made by the Board of Directors of the Company. The transaction has led to a strengthening of the equity of €33,563,407, of which an amount of €10,971,829.93 was allocated to the balance sheet item 'capital' and an amount of € 22,591,577.07 to the balance sheet item "issue premium". The contribution was remunerated by 1,844,160 new shares.
The issue price of the new shares is approximately € 18.20 and equals the volume weighted average share price for Care Property Invest 4 trading days before 15 March 2017 (the effective date of contribution not included), minus the announced gross dividend for the accounting year 2016 (€0.63 per share) and minus a 10 % discount.
The 1,844,160 new shares are of the same type and have the same rights as the existing shares, provided that they will be issued with coupons nos. 7 and following attached and will therefore share in the result of the current financial year (from 1 January 2017 up to and including 31 December 2017). Since the new Care Property Invest shares will only share in the Company's result as from 1 January 2017(and not in the result of the 2016 financial year), coupon no. 6 of the existing shares has been detached before listing the new shares, on 13 March 2017(1) to be precise. The existing shares are listed as ex- coupon no. 6 since 13 March 2017.
(1) See press releases of 17 February and 15 March 2017.
On 1 January 2017 the Law of 20 December 2016 regulating the recognition and definition of crowd funding and containing various provisions concerning financing came into force. Care Property Invest's shareholders can once again enjoy a reduced withholding tax rate of 15% (instead of 30%).
Care Property Invest devotes a fair amount of attention to the further completion and operationalising of projects within the existing portfolio, in particular the "Huis Driane" project in Herenthout, for which the construction works have started on 5 April 2017, and the project in Vorst, for which the constructions works are likely to begin before end of 2017. Care Property Invest monitors the progress of these building sites closely.
Care Property Invest will be working actively on the expansion of its balanced and profitable real estate portfolio. At present, we are studying investment opportunities in Flanders as well as in the Brussels-Capital Region, Wallonia and beyond national borders, which are fully in line with Care Property Invest's strategy.
The planned investments, in relation to the project "Bois de Bernihè" in Libramont in the Walloon Region and the acquisition of a residential care centre in Flemish Brabant, fully adhere (see paragraph 1.1.3 Prospecting for new business and realisation of projects in the pipeline).
In order to realise its activities, the Board of Directors continually investigates different financing options. A capital increase through contributions in kind is one of the possibilities here.
| Amounts shown in euros | ||
|---|---|---|
| Period closed on | 31 March 2017 | 31 December 2016 |
| Investment properties | ||
| Investment properties | 123,978,505.10 | 85,040,501.00 |
| Leasing activities (projects made available through long leases) | ||
| Finance lease receivables | 160,570,470.60 | 156,938,252.98 |
| Trade receivables with respect to finished projects | 12,506,135.96 | 11,845,645.26 |
On 31 March 2017, Care Property Invest has a total of 86 projects in its portfolio, including 2 projects under development, more specifically the "Huis Driane" project in Herenthout", which is expected to be completed in the spring of 2018, and the planned development of a residential care centre in Vorst, of which the building land, that has been acquired in the first quarter of 2017, has already been included in the item "Investment properties".
DISTRIBUTION PER ACTIVITY SECTOR
At present, most of the projects are still located on the territory of the Flemish Region, with a first expansion towards the Brussels Capital Region. The 84 completed projects are geographically spread as follows:
Figures as at 31 March 2017 Figures as at 31 March 2017
Figures as at 31 March 2017 Figures as at 31 December 2016
(*) After the provisional delivery, the residential care centre that will be developed in Vorst will be operated by a subsidiary of Anima Care nv (a subsidiary of Ackermans & Van Haaren).
Figures as at 31 March 2017 (*) Figures as at 31 December 2016
(*)Armonea nv, operator of the project "Les Terrasses du Bois" in Watermaal-Bosvoorde, will be included in the distribution above as from the second quarter, since the rental income deriving from the first quarter was booked into the acquisition value of the project.
| Period closed on 31 March 2017 | Number of projects | Balance (*) |
|---|---|---|
| end between 0 and 10 years | 4 | €3.41 million |
| end between 10 and 15 years | 30 | €44.99 million |
| end between 15 and 20 years | 18 | €48.13 million |
| end > 20 years | 32 | €217.67 million |
| Total | 84 | €314.20 million |
(*) The balance includes the remaining lease and rental income as at 31 March 2017 on the basis of the non-index-linked ground rent for the full remaining term of the contract (due dates not split) and with regard to the project for which the Company bears the risk of voids (Gullegem), taking account of an occupancy rate of 100%.
The first building right (of the initial investment programme) will expire in 2026, i.e. within 9.26 years.
The average remaining term of the contracts is 17.57 years. This period includes the remaining term of the building right which, for the contracts in the initial leasing programme, is equal to the remaining leasehold period and the remaining tenancy period. For the new projects, only the rental or leasehold period is taken into account.
Due to the increasing demand for modified forms of housing for the elderly, the buildings have few, if any voids and enjoy a very high occupancy rate. The contracts concluded are "triple net" contracts, as a result of which the ground rent or rental charge is always due in full. This implies that the economic occupancy rate of these projects is always 100%.
Any voids of the residential units therefore have no impact on the revenues generated by the Company, apart from the Tilia project in Gullegem, for which the Company does bear the risk of voids. On 31 March 2017, the occupancy rate of the project in Gullegem was 100%.
| 31 December 2016 | |
|---|---|
| 15,028,880 | 13,184,720 |
| 14,878,880 | 13,034,720 |
| 150,000 | 150,000 |
| 31 March 2017 |
All shares are no-par. See Article 6 of the Company's articles of association
| Number of registered and dematerialised shares on | 31 March 2017 | 31 December 2016 |
|---|---|---|
| Total number of shares: | 15,028,880 | 13,184,720 |
| of which: | ||
| - number of registered ordinary and special shares | 422,242 | 237,826 |
| - number of dematerialised ordinary shares | 14,606,638 | 12,946,894 |
| - number of ordinary shares outstanding (after deduction of registered shares) |
14,606,638 | 12,946,894 |
| - weighted average number of shares | 13,512,571 | 13,184,720 |
| Value of shares on | 31 March 2017 | 31 December 2016 |
| - Stock price on cut-off date | (*) 20.00 | 20.45 |
| - Highest closing stock price of this period | 20.85 | 20.94 |
| - Lowest closing stock price of this period | 19.68 | 15.29 |
| - Average share price | 20.23 | 18.10 |
| - Market capitalisation | 300,577,600 | 269,627,524 |
| - Net value per share | 10.91 | 8.24 |
| - Premium compared to the net fair value | 45.44% | 59.70% |
| - Free float | 99.00% | 98.86% |
| - Average daily volume | 5,883.69 | 7,456.01 |
| - Turnover rate | 2.54% | 14.50% |
| Dividend per share | (**) | |
| Gross dividend per share | - | 0.63 |
| Net dividend per share | - | 0.5355 |
| Gross dividend per share compared to the share price | - | 3.08% |
| Pay out ratio (on statutory level) | - | 100% |
| Pay out ratio (on consolidated level) | - | 98.76% |
(*) After the detachment of coupon no 6
(**) Subject to the approval of the General Meeting of Shareholders on 17 May 2017.
| Share distribution on | 31 March 2017 (*) | 31 December 2016 | ||
|---|---|---|---|---|
| % in relation to the total capital |
Number of shares (expressed in nominal value) |
% in relation to the total capital |
Number of shares (expressed in nominal value) |
|
| ORDINARY SHARES | 99.00% | 14,878,880 | 98.86% | 13,034,720 |
| SPECIAL SHARES (1) | 1.00% | 150,000 | 1.14% | 150,000 |
| (1) The special shareholders, all holding registered shares, are: | ||||
| Bank Degroof Petercam nv/SA | 0.07% | 10,000 | 0.07% | 10,000 |
| BNP Paribas Fortis Bank nv/SA | 0.20% | 30,000 | 0.23% | 30,000 |
| KBC Bank nv/SA | 0.20% | 30,000 | 0.23% | 30,000 |
| Belfius Bank nv/SA | 0.53% | 80,000 | 0.61% | 80,000 |
| Registered ordinary shares | 1.81% | 272,242 | 0.66% | 87,826 |
| Dematerialised ordinary shares | 97.19% | 14,606,638 | 98.20% | 12,946,894 |
(*)Following the capital increase in kind and the issue of new shares on 15 March 2017 within the framework of a contribution in kind (project Watermaal-Bosvoorde), the capital is represented by 15,028,880 shares.
| Ordinary General Meeting | 17 May 2017 |
|---|---|
| Payment of dividends | Starting from 26 May 2017 |
| Half-yearly financial report | 7 September 2017 |
| Interim statement 3rd quarter 2017 | 16 November 2017 |
These dates may be subject to changes
| Period closed on 31 March | 2017 | (*) 2016 | |
|---|---|---|---|
| I. | Rental income (+) | 4,188,321.20 | 3,903,838.77 |
| rent | 862,170.79 | 623,308.84 | |
| rental discounts | 0.00 | -875.00 | |
| income from finance leasing and other similar leases | 3,326,150.41 | 3,281,404.93 | |
| NET RENTAL INCOME | 4,188,321.20 | 3,903,838.77 | |
| REAL ESTATE OPERATING RESULT | 4,188,321.20 | 3,903,838.77 | |
| XIV. | General expenses of the Company (-) | -781,584.03 | -686,893.57 |
| XV. | Other operating income and expenses (+/-) | 774,597.28 | -4,568.19 |
| Other operating charges relating to the projects | -672,134.55 | -64,803.29 | |
| Other operating income relating to the projects | 1,446,731.83 | 58,552.61 | |
| Other operating income and charges | 0.00 | 1,682.49 | |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 4,181,334.45 | 3,212,377.01 | |
| XVIII. Changes in fair value of real estate (+/-) | 6,037.82 | -86,563.37 | |
| Negative changes in fair value of real estate | -43,386.76 | -183,055.99 | |
| Positive changes in fair value of real estate | 49,424.58 | 96,492.62 | |
| XIX. | Other results on portfolio (+/-) | 824,136.90 | 0.00 |
| OPERATING RESULT | 5,011,509.17 | 3,125,813.64 | |
| XX. | Financial income (+) | 11,991.77 | -2,162.57 |
| XXI. | Net interest expenses (-) | -1,082,774.41 | -1,055,826.69 |
| XXII. Other financial costs (-) | -21,190.94 | -1,110.72 | |
| XXIII. Changes in fair value of financial | |||
| assets/liabilities (+/-) | 1,355,833.46 | -3,967,805.00 | |
| FINANCIAL RESULT | 263,859.88 | -5,026,904.98 | |
| RESULT BEFORE TAXES | 5,275,369.05 | -1,901,091.34 | |
| XXIV. Corporation tax (-) | -40,756.29 | -165,479.82 | |
| XXV. | Exit tax (-) | -57,889.36 | 0.00 |
| TAXES | -98,645.65 | -165,479.82 | |
| NET RESULT | 5,176,723.40 | -2,066,571.16 | |
| GLOBAL RESULT | 5,176,723.40 | -2,066,571.16 |
(*) Figures as at 31 March 2016 take into account a reimbursement of the already recharged increase in withholding tax into the rental revenues. The amount of rental income only takes an indexation of the rental income into account.
| Amounts shown in euros Period closed on 31 March |
2017 | 2016 (*) |
|---|---|---|
| NET RESULT / GLOBAL RESULT | 5,176,723.40 | -2,066,571.16 |
| Net result per share, based on weighted average shares outstanding | 0.3831 | -0.1567 |
| gross yield compared to the initial issuing price in 1996 | 6.44% | -2.63% |
| gross yield compared to stock market price on closing date | 1.92% | -0.97% |
The weighted average of the number of outstanding shares as at 31 December 2016 was 13,184,720, compared to 13,512,571 shares as at 31 March 2017.
The initial issue price in 1996 was €5,949.99 (or €5.9495 after the stock split of 24 March 2014 (1/1000)). The stock price at 31 March 2017 was €20.00 and €20.45 on 31 December 2016. The gross yield is calculated by dividing the EPRA result per share by respectively the initial issue price in 1996 and the stock price at closing date.
There are no instruments with a potential dilutive effect on the net result per share. Following the capital increase and issue of new shares on 15 March 2017 for the acquisition of the project in Watermaal-Bosvoorde through a contribution in kind, the Company's total capital as at 15 March 2017 amounts to €89,414,321.58.
As from 15 March 2017, the capital is represented by a total number of 15,028,880 shares, of which 14,878,880 ordinary shares and 150,000 special shares.
The total amount of voting rights is 15,028,880. All shares will be included in the result for the financial year 2017.
(*) Figures as at 31 March 2016 take into account a reimbursement of the already recharged increase in withholding tax into the rentalbincome. The yield per share only takes an indexation into account.
| Amounts shown in euros | ||
|---|---|---|
| Period closed on 31 March | 2017 | (*) 2016 |
| NET RESULT/ GLOBAL RESULT | 5,176,723.40 | -2,066,571.16 |
| NON-CASH ELEMENTS INCLUDED IN THE NET RESULT | -2,821,787.35 | 4,178,137.49 |
| depreciation, impairments and reversals of impairments | 24,711.53 | 21,992.47 |
| variations in fair value of investment properties | -6,037.82 | 86,563.38 |
| variations in fair value of authorised hedging instruments | -1,355,833.46 | 3,967,805.00 |
| Tax- transfer of tax from deferred taxation | 0.00 | 0.00 |
| projects' profit or loss margin attributed to the period | -785,215.28 | 0.00 |
| decrease in trade receivables (profit or loss margin attributed to previous periods) |
124,724.58 | 101,776.64 |
| other results on portfolio | -824,136.90 | 0.00 |
| EPRA Result | 2,354,936.05 | 2,111,566.33 |
| EPRA Result per share, based on the weighted average number of outstanding shares |
€ 0.1743 | € 0.1602 |
| gross yield compared to the issue price | 2.93% | 2.69% |
| gross yield compared to stock market price on closing date | 0.87% | 0.99% |
The weighted average of the number of outstanding shares as at 31 December 2016 was 13,184,720, compared to 13,512,571 shares as at 31 March 2017.
The initial issue price in 1996 was €5,949.99 (or €5.9495 after the stock split of 24 March 2014 (1/1000)). The stock price at 31 March 2017 was €20.00 and €20.45 on 31 December 2016. The gross yield is calculated by dividing the EPRA result per share by respectively the initial issue price in 1996 and the stock price at closing date.
There are no instruments with a potential dilutive effect on the net result per share. Following the capital increase and issue of new shares on 15 March 2017 for the acquisition of the project in Watermaal-Bosvoorde through a contribution in kind, the Company's total capital as at 15 March 2017 amounts to €89,414,321.58.
As from 15 March 2017, the capital is represented by a total number of 15,028,880 shares, of which 14,878,880 ordinary shares and 150,000 special shares.
The total amount of voting rights is 15,028,880. All shares will be included in the result for the financial year 2017.
(*) Figures as at 31 March 2016 take into account a reimbursement of the already recharged increase in withholding tax into the rental revenues. The amount of rental revenues only takes an indexation into account.
The Company's operating result rose with 60.33% compared to 31 March 2016.
Rental income as at 31 December 2017 was 7.29% higher than in the preceding year. The increase is attributable to the new acquisitions made in December 2016 of the projects "Ter Bleuk" (Bonheiden) and "3 Eiken" (Lanaken). The projects "Les Terrasses du Bois" (Watermaal-Bosvoorde) and " Herfstvrede" (Moerbeke) shall only generate additional revenue for the Company as from 1 April 2017.
The general operating costs were slightly higher than those in 2016, which is justifiable by the Company's growth. The rising rental income leads to further dilution of these costs.
On 23 February 2017, the provisional delivery of the "Herfstvrede" project in Moerbeke took place. This resulted in a capital gain of €785,215.28. This Capital gain will be included in the balance sheet at delivery and depreciated over the duration of the project.
The real estate expert values the Company's real estate investments on its balance sheet on a quarterly basis in accordance with IAS 40. Due to the increase in the fair value of its real estate portfolio since its acquisition, a positive result was already recorded as a variation of the fair value of property investments on 31 March 2017.
The financial result was affected positively due to the inclusion of the fair value of financial instruments entered into. As a result of an improvement of the prevailing low (or negative) interest rates, a capital gain amounting to €1,355,833.46, had to be recorded in the Company's global result statement, bringing the total negative impact to date to €20,078,556.00 compared to €21,463,004 as at 31 December 2016.
The amount of taxes on 31 March 2017 contains the estimated corporate tax and exit tax of the subsidiaries.
On 31 March 2017, the EPRA result amounted to €2,354,936.05 on a consolidated basis, compared with €2,111,566.33 on 31 March 2016. This represents an increase of 11.53%. The EPRA result per share rose from €0.1602 on 31 March 2016 to €0.1743 on 31 March 2017.
Amounts shown in euros..
| Period closed on | 31 March 2017 | 31 December 2016 |
|---|---|---|
| ASSETS | ||
| I. Non-current assets |
299,082,318.80 | 258,292,942.67 |
| C. Investment properties | 123,978,505.10 | 85,040,501.00 |
| D. Other tangible fixed assets | 2,021,687.14 | 4,464,773.43 |
| E. Financial fixed assets | 5,520.00 | 3,770.00 |
| F. Finance lease receivables | 160,570,470.60 | 156,938,252.98 |
| G. Trade receivables and other non-current assets | 12,506,135.96 | 11,845,645.26 |
| concerning projects under construction concerning delivered projects |
0.00 12,506,135.96 |
0.00 11,845,645.26 |
| II. Current assets |
9,347,968.14 | 4,722,317.34 |
| D. Trade receivables | 56,616.74 | 26,787.65 |
| E. Tax receivables and other current assets | 205,322.96 | 600,530.53 |
| corporation tax other |
119,754.74 85,568.22 |
479,783.54 120,746.99 |
| F. Cash and cash equivalents | 8,910,414.46 | 3,657,308.89 |
| G. Deferrals and accruals | 175,613.98 | 437,690.27 |
| TOTAL ASSETS | 308,430,286.94 | 263,015,260.01 |
| EQUITY AND OBLIGATIONS | 31 March 2017 | 31 December 2016 |
| EQUITY | 147,437,057.46 | 108,698,808.51 |
| A. Capital | 89,414,321.58 | 78,442,491.65 |
| B. Share premium | 43,184,322.96 | 20,592,745.89 |
| C. Reserves | 45,608.52 | 1,768,287.54 |
| D. Net result for the financial year | 14,792,804.40 | 7,895,283.43 |
| LIABILITIES | 160,993,229.48 | 154,316,451.50 |
| I. Non-current liabilities | 123,727,348.21 | 125,069,420.29 |
| B. Non-current financial liabilities | 102,514,607.12 | 102,522,085.23 |
| C. Other non-current financial liabilities | 20,078,556.00 | 21,463,004.00 |
| authorised hedging instruments | 20,078,556.00 | 21,463,004.00 |
| F. Deferred taxation | 1,134,185.09 | 1,084,331.06 |
| II. Current liabilities | 37,265,881.27 | 29,247,031.21 |
| B. Current financial liabilities | 28,263,513.10 | 20,498,673.84 |
| D. Trade payables and other current liabilities | 8,228,893.76 | 8,160,383.22 |
| a. Exit tax | 4,491,724.01 | 4,483,638.69 |
| b. Other | 3,737,169.75 | 3,676,744.53 |
| suppliers | 3,440,256.40 | 3,478,645.56 |
| tenants taxes, remuneration and social insurance charges |
0.00 296,913.35 |
50.00 198,048.97 |
| E. Other current liabilities | 94,572.50 | 120,012.11 |
| F. Deferrals and accruals | 678,901.91 | 467,962.04 |
| prepayments of property revenue | 307,172.13 | 45,555.38 |
| accrued interest and other costs | 0.00 | 0.00 |
| accrued costs | 371,729.78 | 422,406.66 |
| TOTAL EQUITY + LIABILITIES | 308,430,286.94 | 263,015,260.01 |
The Company's portfolio was further expanded in 2017 through a contribution in kind of the residential care centre with service flats "Les Terrasses du Bois" in Watermaal-Bosvoorde and the acquisition of a building land in Vorst where a residential care centre will be developed, for a total amount of €38,835,760.10.
The value of the property investments already in portfolio on 31 December 2016 rose to €85,142,745.00. The real estate expert confirms the fair value of this real estate portfolio at a total amount of approximately €124 million. The fair value is equal to the investment value (or the "deed in hand" value including all purchase costs) from which the transfer taxes were deducted at the rate of 2.5%.
It includes all final superficies charges that must be paid back within the context of the superficies contracts for the 76 projects from the initial investment programme. The provisional delivery of the project "Herfstvrede" te Moerbeke took place on 23 February 2017. As a result, the amount of finance lease receivables as at 31 March 2017 has changed with €3,632,217.62.
The fair value of the financial leasing as at 31 March 2017 was €233,398,952.87(1).
The difference between the nominal value of the final superficies charges (included in the section 'financial lease receivables') and the fair value at the time of posting that is calculated by discounting the future cash flows, is included in 'trade receivables' and subject to annual amortisation. Since the discount rate is determined at the time of delivery, the capitalised amount of these receivables does not change, unless a new project has been completed. On the one hand there's a decrease due to the depreciation of the attributed profit or loss margin by deducting this from the ground rate revenue, but globally there's a rise that can be explained by the inclusion of the Moerbeke project into the balance sheet.
Following the capital increase and issue of new shares on 15 March 2017, for the acquisition of the project in Watermaal-Bosvoorde through a contribution in kind, the total capital as at 15 March 2017 amounts to €89,414,321.58. As from 15 March 2017, the capital is represented by a total number of 15,028,880 shares, of which 14,878,880 ordinary shares and 150,000 special shares. The total amount of voting rights is 15,028,880.
An increase or fall in interest rates resulting in an increase or decrease in the fair value of the financial instruments also has an impact on equity, in the form of an increase or diminution in the reserves.
(1)The fair value of the "finance lease receivables" has been calculated by discounting the future cash flows at an IRS interest rate, valid at 31 March of the respective year, depending on the remaining duration of the underlying contract, increased by a certain margin.
The financing of the subsidiary companies was once again included in the liabilities on a consolidated basis on 31 March 2017.
On 31 March 2017, the Company had a roll-over loan with KBC for a total amount of €35 million. €17.7 million of this loan has been taken up as at 31 March 2017. An amount of €2 million has expired on 23 February 2017. This tranche was repaid at maturity. On 30 June 2017, €17.7 million, that can be rolled-over unconditionally by the Company, will expire. The Company also has a MTN programme at Belfius for a total amount of €50 million. On 23 February 2017, an amount of €10 million has been taken up from this programme. Both the roll-over loan at KBC and the MTN programme at Belfius were contracted at floating interest rates on favourable terms.
| Amounts shown in euros | ||
|---|---|---|
| Period closed on | 31 March 2017 | 31 December 2016 |
| average remaining term of financial debts | 13.37 years | 13.61 years |
| nominal amount of current and long-term financial debts | 130,778,120.22 | 123,020,759.07 |
| weighted average interest rate (*) | 4.00% | 4.01% |
| amount of financial debts hedged with a financial instrument | 35,791,937.59 | 35,791,937.59 |
| fair value of the hedging instruments | -20,078,556.00 | -21,463,004.00 |
| movements in financial liabilities | 7,757,361.15 | 22,039,041.94 |
(*) The average interest rate is related to the interest rates after the conversion of the variable interest rates into fixed interest rates by means of swaps.
| Amounts shown in euros | ||
|---|---|---|
| Periode closed on | 31 March 2017 | 31 December 2016 |
| total assets | 308,430,286.94 | 263,015,260.01 |
| liabilities | -160,993,229.48 | -154,316,451.52 |
| NET ASSETS | 147,437,057.46 | 108,698,808.51 |
| net value per share | € 10.91 | € 8.24 |
| total assets | 308,430,286.94 | 263,015,260.01 |
| current and long-term liabilities (excluding 'authorised hedging instruments' item) |
-140,914,673.48 | -132,853,447.50 |
| NET ASSETS, EXCLUDING "AUTHORISED HEDGING INSTRUMENTS" (IAS 39) |
167,515,613.46 | 130,161,812.51 |
| Net value per share, excluding the 'authorised hedging instruments' column |
€ 12.40 | € 9.87 |
| total assets including the calculated fair value of finance lease receivables (*) |
368,752,633.25 | 339,530,668.36 |
| current and long-term liabilities (excluding 'authorised hedging instruments' item) |
-140,914,673.48 | -132,853,447.50 |
| NET ASSETS EXCLUDING "AUTHORISED HEDGING INSTRUMENTS" AND INCLUDING THE "FAIR VALUE OF LEASE RECEIVABLES" EPRA NAV |
227,837,959.77 | 206,677,220.86 |
| Net value per share, excluding the 'authorised hedging instruments' column and including the fair value of lease receivables |
€ 16.86 | € 15.68 |
The weighted average of the number of outstanding shares as at 31 December 2016 was 13,184,720, compared to 13,512,571 shares as at 31 March 2017.
The initial issue price in 1996 was €5,949.99 (or €5.9495 after the stock split of 24 March 2014 (1/1000)). The stock price at 31 March 2017 was €20.00 and €20.45 on 31 December 2016. The gross yield is calculated by dividing the net value per share by respectively the initial issue price in 1996 and the stock price at closing date.
There are no instruments with a potential dilutive effect on the net result per share. Following the capital increase and issue of new shares on 15 March 2017 for the acquisition of the project in Watermaal-Bosvoorde through a contribution in kind, the Company's total capital as at 15 March 2017 amounts to €89,414,321.58.
As from 15 March 2017, the capital is represented by a total number of 15,028,880 shares, of which 14,878,880 ordinary shares and 150,000 special shares.
The total amount of voting rights is 15,028,880. All shares will be included in the result for the financial year 2017.
(*) The fair value of the "finance lease receivables" has been calculated by discounting the future cash flows at an IFRS interest rate, valid at 31 March of the respective year, depending on the remaining duration of the underlying contract, increased by a certain margin.
The debt ratio, calculated according to article 13, §1, 2° of the RREC Royal Decree, is 45.10% as at 31 March 2017. As Care Property Invest does not exceed the debt ratio of 50%, it is not required to draw up a financial plan in accordance with Article 24 of the RREC Royal Decree.
Based on the balance sheet and global result statement for the financial year 2016 a prognosis was made of the outlook for the coming financial years.
The following hypotheses were taken as the starting point:
Based on the above assumptions, even with the realisation of the upcoming investments, the maximum debt ratio of 65% will not be exceeded on a consolidated basis in 2017. As at 31 March 2017, the debt ratio, calculated in accordance with Article 13 of the RREC Royal Decree, was 45.10%. The Board of Directors evaluates its liquidity requirements in good time and, to avoid reaching the maximum debt ratio, considers a capital increase as well as contributions in kind to belong to the possibilities.
Care Property Invest will propose a gross dividend for the 2017 financial year of €0.63 per share to the general meeting of shareholders on 17 May 2017.
Considering the uncertainty of the current economic situation and the impact this has on the results of Care Property Invest, if there is a negative result the Company will not be obliged to pay out any remuneration on the capital.
On the basis of the current existing agreements that will generate income for an average of 17.6 years, and barring unforeseen circumstances, the Company has set the goal of creating an increase of the dividend payment for the financial year 2017.
Moreover, the new acquisitions will generate additional revenue from the financial year 2017. The solvency of the Company is supported by the stable value of its real estate projects.
The Company operates in an economic climate that entails risks. The Board of Directors is of the opinion that the risk factors and uncertainties described on pages 8 to 37 of the 2016 annual financial report will continue to apply to the remaining months of the 2017 financial year. The annual financial report 2016 is available on the Company's website.
This press release contains prospects implying risks and insecurities, among others statements about plans, targets, expectations and intentions of Care Property Invest. Readers are advised that such prospects imply known and unknown risks, and that they are subject to important company, economic and competitive insecurities, which Care Property Invest does not control for the most part. If one or more of these risks or insecurities were to produce or if the basic assumptions prove incorrect, there may be a serious discrepancy with the envisaged, expected, estimated or extrapolated results. Care Property Invest therefore accepts no responsibility whatsoever for the exactness of these prospects.
The interim Statement of the Board of Directors 1st quarter 2017 is available on the website of the Company, www.carepropertyinvest.be.
Care Property Invest NV/ SA Horstebaan 3 2900 Schoten T +32 3 222 94 94 F +32 3 222 94 95 E [email protected]
www.carepropertyinvest.be
Care Property Invest NV is a Public Regulated Real Estate Company (Public SIR/GVV) under Belgian law. Based on a solid organisation, Care Property Invest helps healthcare entrepreneurs to undertake property projects by offering real estate tailored to the end user, that is both qualitative and socially responsible. For its shareholders, Care Property Invest strives for a stable long-term rate of return.
Care Property Invest's share celebrated its 20th birthday on Euronext Brussels In 2016. The share is listed under the name of CPINV and has the following ISIN-Code: BE0974273055. As from 2016, the share has also been included in the BEL Mid index and Care Property Invest became a member of EPRA.
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