Earnings Release • Mar 9, 2017
Earnings Release
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PRESS RELEASE
REGULATED INFORMATION
9 March 2017 - Before trading hours Under embargo until 07h40
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")
Increase of the rental income with approximately 14% compared to 31 December 2015, operating margin of 85.19% Fair value of the property portfolio on 31 December 2016: 330 million euros. Market capitalisation increased by 35% compared to 31 December 2015. Occupancy rate on 31 December 2016: 100% Debt rate on 31 December 2016: 49.92%. Proposal for the distribution of a gross dividend of €0.63 (100% of the statutory pay-out ratio). As from 1 January 2017, the withholding tax rate has been reduced to 15%. Sustained efforts in 2016 lead directly to new investments, for a total value of approximately 60.5 million euros, in several residential care centres, with a continuous focus on the expansion and management of a well-balanced and profitable real estate portfolio. More extensive regional distribution: investments in the Walloon Region and the Brussels-Capital Region. Care Property Invest has been included as a BEL Midcap in Euronext's BEL Mid Index and has become a member of EPRA.
Care Property Invest NV/SA | 2 Press release | Regulated information
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.
From its acquired knowledge and experience, Care Property Invest builds and finances, today and in the future, several housing forms for senior citizens (residential care centres, groups of assisted living apartments, service flats...) and people with disabilities, for the public as well as for the private sector. Its current strategy is based on the demographic shift towards an ageing population and the increasing demand for socially responsible health care infrastructure that this tendency implies.
Care Property Invest's ambition is to become thé reference in the market of the development of, and investment in health care real estate and to create an accelerating growth within the sector. It is a dynamic player, determined to introduce new innovations into health care real estate, in an independent manner.
The combination of its strategy, the specification of its social purpose and its position as being the only player operating exclusively in the health care real estate-market, and this for over 20 years, puts Care Property Invest in an extraordinary position within the RREC-sector. The clear evolution of the market for elderly care in combination with the Company's carefully selected real estate portfolio, ensures a stable dividend yield for its shareholders. In addition, they can benefit from a reduced withholding tax rate of 15% (instead of 30%), since Care Property Invest meets the legal requirement of having invested at least 60% of its real estate portfolio in immovable property that is located in a member state of the European Economic Area, and concerns residential units that are exclusively or primarily intended or used for residential or health care. Care Property Invest is the only player with a real estate portfolio, that consists solely of health care real estate.
In its last financial report of 2016, Care Property Invest promised a substantial increase of the rental income based on new investments in 2015, that were made possible by the capital increase in 2015. Care Property Invest has indeed succeeded to fruitfully reinvest the raised capitals in health care real estate investments by the end of 2015. These investments have generated immediate proceeds for the Company. Therefore the Company's rental income has risen by approximately 14%. The consolidated debt rate at 31 December 2016 is 49.92%.
In spite of the increased activity of the Company, the costs in 2016 have been kept at bay. Therefore Care Property Invest is pleased to announce that, nevertheless the fact that more than 2.8 million shares have been added in 2015 (by means of the capital increase in 2015), the Board of Directors will propose to pay a dividend at €0.63 per share (gross) at the general meeting of shareholders.
2016 has been a year of transition. The employees of Care Property Invest have been investing a lot of energy in the realisation of several construction projects and the preparation of additional purchases. The details of these activities can be found further in this press release. The most significant investments in 2016 have been finalized during the last month of the year.
In the new year the Company has moved up a gear. The preparatory efforts in 2016 in the search for interesting, but most importantly healthy investments, have paid off and have already lead to an investment of +/- €60.50 million in three residential care centres in Belgium. The Company has also succeeded at creating a larger regional distribution of its investment portfolio. From now on, Care Property Invest is also represented in the Walloon and Brussels Capital Region. In the future it will continue to improve this distribution, and does not rule out the possibility of looking beyond Belgian borders.
Care Property Invest also applied itself to improving its financial transparency and therefore became a member of EPRA (European Public Real Estate Association). From now on the Company will adopt the EPRA reporting Best Practices Recommendations in its reports and will continue to strive to continuously enhance its financial reporting. These efforts were rewarded with the inclusion of Care Property Invest in Euronext's BEL Mid Cap index, which will further benefit the liquidity of the share.
This all lead to an increased visibility on the capital market. This allowed Care Property Invest to issue a debt paper in order to further diversify the financing of the investments.
Thanks to the investment efforts made in 2016 and the acceleration in this area in 2017, the accounting year 2017 offers some favourable outlooks. Care Property Invest holds high ambitions and wants to step out of the shadow from its past and put the Company firmly on the map.
Care Property Invest aims for a balanced, diversified portfolio that can generate stable income. The affordability of its "recognised" projects and the operation of these by professional, solvent and specialised care providers should ensure this.
A brief overview of the acquisitions of the various projects is presented below
All purchases were made at prices reflecting the fair value determined by the real estate expert. The transactions were conducted for a total of approximately €32 million.
On 22 December 2016, Care Property Invest announced the acquisition of 100% of the shares in the company Ter Bleuk nv, after successfully meeting all suspensory conditions precedent. This company owns the Ter Bleu group of assisted living apartments in Rijmenam/Bonheiden in the Mechelen region, operated by Zonneweelde vzw, a subsidiary of the Senior Living Group nv.
The contractual value of Ter Bleuk Assistentiewoningen (buildings and land) is approximately €13.4 million. This conventional value is primarily based on and is in line with the valuation by the real estate expert for the project. Ter Bleuk nv will use a long-term lease agreement (of the triple net type) with Zonneweelde vzw to generate an indexed fixed annual ground rent.
Care Property Invest announced the acquisition of 100% of the shares in the company VSP Lanaken Centrum WZC nv on 30 December 2016. This company owns the residential care centre "Drie Eiken" in Lanaken, to be managed by Foyer De Lork vzw, which is in turn part of Senior Living Group.
The contractual value of this project is approximately 19 million euros. This price is largely based on and in line with the valuation of the real estate expert for the project. VSP Lanaken Centrum WZC nv will generate an index-linked fixed annual ground rent via a triple net lease agreement with Foyer de Lork vzw.
No new project developments were included in the Care Property Invest portfolio in the 2016 financial year.
The construction works for the Herfstvrede project in Moerbeke, a facility for the elderly consisting of 22 assisted living apartments for which Care Property Invest acts as the principal master builder, began on 4 April 2016. The Herfstvrede project in Moerbeke was delivered on 23 February 2017. On 31 December 2016, the balance sheet showed a sum of €2,420,984.76 as a 'receivable for project under construction' 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 facility for the elderly consisting of 22 assisted-living apartments. Before this building permit was submitted, the OCMW 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 will start 30 calendar days after its receipt, in conditions that the building and lease deed has been executed. Delivery of the project is scheduled for the spring of 2018. On 31 December 2016, the balance sheet showed a sum of €56,955.48 as a 'receivable for projects in preparation' with regard to this group of assisted living apartments.
On 21 December 2016, Care Property Invest's subsidiaries Croonenburg nv, owner of "Aan de Kaai" in Turnhout, and B. Turnhout nv, owner of "De Nieuwe Kaai" in Turnhout, were absorbed as part of a tax-free merger. The publication in the Moniteur belge/Belgisch Staatsblad is available on the Company's website.
In 2016, Care Property Invest also focused on the development of its activities within the sector of residential care for the elderly and residential accommodation for people with disabilities, in accordance with its extension of its objectives approved at the Extraordinary General Meeting of 26 June 2013. Consequently, in addition to potential investments in assisted-living complexes, it now also investigates potential investments in residential care centres throughout the EEA, as well as various projects for people with disabilities. These projects are operated by commercial groups active in this sector, as well as PCSWs and charitable non-profit associations. The current phase of these projects and the type of investment involved range from acquisitions of completed buildings to sites still to be developed, the purchase of shares in companies that own the real estate and the renovation and refinancing of existing buildings.
Within the framework of these prospecting activities and pipeline, the Company can also announce that it has concluded a letter of intent under suspensory conditions for the acquisition of 100% of the shares of a company that owns a residential care centre in Flemish Brabant. The contractual value of this project is estimated to be approximately 17 million euros and the centre is currently operated by an experienced operator. After the suspensory conditions have been met, further communication will follow.
Care Property Invest actively works to expand its balanced and profitable property portfolio and investigates investment opportunities that fit entirely within the strategy of the Company, in the Flemish, Walloon, and Brussels-Capital Region and beyond the national borders.
Care Property Invest realised the following investments after the close of the financial year, as already disclosed in separate press releases.:
On 17 February 2017, Care Property Invest announced the agreement subject to suspensory conditions on the acquisition of the residential care centre with service flats "Les Terrasses du Bois" in Watermaal-Bosvoorde (Brussels-Capital Region), that will be realised through contributions in kind of the aforementioned property into the capital of Care Property Invest.
The residential care centre and service flats will be operated by Home Sebrechts NV, a subsidiary of Armonea, through a long-term lease agreement of the triple net type. In the context of this transaction, Care property Invest will receive rental income deriving from this lease agreement from 1 January 2017.
This centrally located project contains 34 service flats and the residential care centre contains 130 rooms, divided in 117 single rooms and 13 double rooms, spread over 9 floors.
This new expansion of the real estate portfolio will be realised through contributions in kind of the aforementioned property into the capital of Care Property Invest, within the context of the authorised capital.
The conventional contribution value of "Les Terrasses du Bois" is approximately 34 million euros. The contribution in kind is expected to take place on 15 March 2017 on the condition that a number of usual suspensory conditions have been met, including obtaining the approval of the FSMA for this contribution and the associated amended Articles of Association. Care Property Invest is committed to having the new shares, with coupons nos. 7 and following attached, listed on Euronext Brussels as from 15 March 2017.
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 group of assisted living apartments will be operated by Vulpia Wallonie asbl, through a long-term lease agreement of the triple net type for a period of 27 years. The project is a four-storey building, built in 2013, and houses a residential care centre with 95 rooms, accommodating 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.
The conventional value of this project is approximately 11.3 million euros. This price is largely based on and in line with the valuation of the real estate expert. 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.
On 28 February 2017, Care Property Invest announced the acquisition of the development of a planned residential care centre in Vorst. Herefore the Company has purchased the ground 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 en 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 begin 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 15,200,00.00 euros.
With these new investments, 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 second milestone is the project "Bois de Bernihè", as it is its first project in the Walloon Region. Finally, 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 en Van Haaren).
After this investment the Company's property portfolio will consist of 87 projects, of which 2 are currently under development. After the contribution in kind of the project in Watermaal-Bosvoorde, the equity will rise with approximately 34 million euros.
The Herfstvrede project in Moerbeke, for which Care Property Invest acted as the principal master builder, was delivered on 23 February 2017 and is operated by the OCMW of Moerbeke. The project will generate additional income for the Company from 1 April 2017.
In addition, Care Property Invest devotes a fair amount of attention to the further completion and operationalising of the existing portfolio, in particular for the project "Huis Driane" in Herenthout, for which Care Property Invest has received the commencement order from the PCSW Herenthout on 6 March 2017. The construction works will start 30 calendar days after its receipt, on condition that the building and lease deed has been executed. Delivery of the project is scheduled for the spring of 2018.
The Law regulating the recognition and definition of crowd funding and containing various provisions concerning financing entered into force on 1 January 2017 and Care Property Invest shareholders can now once again enjoy a reduced rate of withholding tax, of 15% (instead of 30%).
On the basis of its desire to provide optimal support for the development of the activities of Care Property Invest by the management and to secure the continuity of the Company, the Board of Directors decided at the start of the financial year to strengthen the management team through the formation of an Management Committee, within the meaning of Article 524bis of the Companies Code. The Board of Directors is encouraged to be able to report that the Management Committee was actually installed on 1 July 2016. The Management Committee takes over the powers and operations of the Management Board, which has been disbanded as a separate body.
The following persons were appointed on 1 July 2016 as members of the Management Committee/effective leaders, within the meaning of the Act of 12 May 2014 with regard to the regulated companies:
| name | function |
|---|---|
| Peter Van Heukelom | Chief Executive Officer (CEO)/Managing Director |
| Dirk Van den Broeck | Managing Director |
| Willy Pintens | Managing Director |
| Filip Van Zeebroeck | Chief Financial Officer (CFO) |
| Valérie Jonkers | Chief Operating Officer (COO) |
As at 31 December 2016, the Company had three subsidiaries:
The two subsidiaries Croonenburg nv and B. Turnhout nv were absorbed by Care Property Invest nv in a silent merger on 21 December 2016.
Amounts shown in euros..
| Financial year as closed on 31 December | 2016 | 2015 |
|---|---|---|
| Investment properties | ||
| Investment properties | 85,040,501.00 | 49,960,748.55 |
| Leasing activities (projects made available through long leases) | ||
| finance lease receivables | 156,938,252.98 | 157,005,329.44 |
| trade receivables with respect to finished projects | 11,845,645.26 | 12,254,002.00 |
In total, Care Property Invest has 84 projects in its property portfolio, including 82 finished projects by the end of the financial year 2016, one project that has been completed after the closing of the financial year, on 23 February 2017 ("Herfstvrede" in Moerbeke) and one project that is currently under construction ("Huis Driane" in Herenthout).
The general occupancy rate as at 31 December 2016 for the investment properties and the leasing portfolio is 100%.
At present, all projects are located on the territory of the Flemish Region. The 82 completed projects1 are geographically spread throughout the five Flemish provinces, as follows:
1 In total, Care Property Invest's property portfolio contains 84 projects, of which one project that has been completed after the closing of the financial year, on 23 February 2017 ("Herfstvrede" in Moerbeke) and one project that is currently under construction ("Huis Driane" in Herenthout).
Press release | Regulated information
Figures as per 31 December 2016 Figures as per 31 December 2016
The PCSWs represent 81.1 % of the total rental income of the Company on 31 december 2016. The remaining amount of the rental income originates from the 10% that is operated by charitable non-profit organisations, Vulpia Care Group and Senior Living Group.
| Amounts shown in euros Number of ordinary and special shares on |
31 December 2016 | 31 December 2015 |
|---|---|---|
| Total number of shares | 13,184,720 | 13,184,720 |
| of which: | ||
| - number of ordinary shares | 13,034,720 | 13,034,720 |
| - number of special shares | 150,000 | 150,000 |
All shares are no-par. See Article 6 of the Company's articles of association
| number of registered and dematerialised shares on | 31 December 2016 | 31 December 2015 |
|---|---|---|
| Total number of shares: | 13,184,720 | 13,184,720 |
| of which: | ||
| - number of registered ordinary and special shares | 237,826 | 237,826 |
| - number of dematerialised ordinary shares | 12,946,894 | 12,946,894 |
| - number of treasury shares | 0 | 15,030 |
| - number of ordinary shares outstanding (after deduction of treasury shares and registered shares) |
12,946,894 | 12,931,864 |
| - weighted average number of shares | 13,184,720 | 11,853,348 |
| Value of shares | 31 December 2016 | 31 December 2015 |
|---|---|---|
| - Stock price on cut-off date | 20.45 | 15.20 |
| - Highest closing stock price of the financial year | 20.94 | 16.92 |
| - Lowest closing stock price of the financial year | 15.29 | 13.41 |
| - Average share price | 18.10 | 14.89 |
| - Market capitalisation | 269,627,524 | 200,407,744 |
| - Net value per share | 8.24 | 7.62 |
| - Premium compared to the net fair value | 59.70% | 49.87% |
| - Free float | 98.86% | 98.86% |
| - Average daily volume | 7,456.01 | 5,282.77 |
| - Turnover rate | 14.50% | 10.14% |
| Dividend per share | (*) | |
| Gross dividend per share | 0,63 | 0,63 |
| Net dividend per share | 0,5355 | 0,5355 |
| Gross dividend per share compared to the share price | 3,08% | 4,14% |
| Pay out ratio (on statutory level) | 100% | 97% |
| Pay out ratio (on consolidated level) | 98,76% | 95% |
(*) Subject to the approval of the General Meeting of Shareholders on 17 May 2017
Share value per share (in €)
Net value per share (in €)
Share price Care Property Invest
Share price Bel 20
Press release | Regulated information
| Financial year closed on 31 December | 2015 | 2015 |
|---|---|---|
| I. Rental income (+) |
15,629,497.09 | 13,731,516.84 |
| rent | 2,520,186.74 | 620,321.69 |
| rental discounts | -1,235.00 | -5,520.00 |
| income from finance lease and other similar leases | 13,110,545.35 | 13,116,715.15 |
| NET RENTAL RESULT | 15,629,497.09 | 13,731,516.84 |
| REAL ESTATE OPERATING RESULT | 15,629,497.09 | 13,731,516.84 |
| XIV. General expenses of the Company (-) |
-2,375,962.76 | -2,403,404.92 |
| XV. Other operating income and charges (+/-) |
61,780.72 | 80,936.67 |
| Other operating charges relating to the projects | -2,428,614.05 | -89,937.74 |
| Other operating income relating to the projects | 2,490,394.77 | 170,874.41 |
| Other operating income and charges | 0.00 | 0.00 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 13,315,315.05 | 11,409,048.59 |
| XVIII. Changes in the fair value of investment properties (+/-) | 1,925,213.00 | 1,690,056.08 |
| Negative changes fair value investment properties | -31,167.03 | -6,941.27 |
| Positive changes fair value investment properties | 1,956,380.03 | 1,696,997.35 |
| OPERATING RESULT | 15,240,528.05 | 13,099,104.67 |
| XX. Financial income (+) |
12,431.90 | 59,437.52 |
| XXI. Net interest charges (-) |
-4,873,972.18 | -3,808,146.20 |
| XXII. Other financial charges (-) | -3,912.91 | -2,613.09 |
| XXIII. Changes in fair value of financial assets/liabilities (+/-) | -2,153,469.00 | 2,847,152.52 |
| FINANCIAL RESULT | -7,018,922.19 | -904,169.25 |
| RESULT BEFORE TAXES | 8,221,605.86 | 12,194,935.42 |
| XXIV. Corporate tax (-) | 59,642.56 | -54,396.27 |
| XXV. Exit tax (-) |
-385,964.99 | -126,709.06 |
| TAXES | -326,322.43 | -181 105.33 |
| NET RESULT | 7,895,283.43 | 12,013,830.09 |
| Financial year closed on 31 December | 2016 | 2015 |
|---|---|---|
| NET RESULT | 7,895,283.43 | 12,013,830.09 |
| Net result per share, based on the weighted average number of outstanding shares |
€ 0.5988 | € 1.0135 |
| gross yield compared to issue price on incorporation in 1996 |
10.07% | 17.04% |
| gross yield compared to stock market price on closing date |
2.93% | 6.67% |
The weighted average shares outstanding represented 11,853,348.11 shares on 31 December 2015, compared to 13,184,720.00 on 31 December 2016, since all additional shares, issued following the capital increase in June 2015, are entitled to dividend for the full financial year 2016.
| Amounts shown in euros | ||
|---|---|---|
| Financial year closed on 31 December | 2016 | 2015 |
| NET RESULT | 7,895,283.43 | 12,013,830.09 |
| NON-CASH ELEMENTS INCLUDED IN THE NET RESULT | 514,987.07 | -4,172,421.96 |
| depreciation, impairments and reversals of impairments | 94,668.77 | 84,564.60 |
| changes in fair value of investment properties | -1,925,213.00 | -1,690,056.08 |
| changes in fair value of authorised hedging instruments | 2,153,469.00 | -2,847,152.52 |
| taxes - transfer from deferred taxes | -216,294.44 | 0.00 |
| projects' profit or loss margin attributed to the period | 1,361.64 | 13,696.59 |
| decrease in trade receivables (profit or loss margin attributed to previous periods) |
406,995.10 | 266,525.45 |
| EPRA EARNINGS | 8,410,270.50 | 7,841,408.13 |
| EPRA Earnings per share based on the weighted average number of outstanding shares |
€ 0.6379 | € 0.6615 |
| gross yield compared to issue price | 10.72% | 11.12% |
| gross yield compared to stock market price on closing date |
3.12% | 4.35% |
The weighted average shares outstanding represented 11,853,348.11 shares on 31 December 2015, compared to 13,184,720.00 on 31 December 2016, since all additional shares, issued following the capital augmentation in June 2015, are entitled to dividend for the full financial year 2016.
Rental income as at 31 December 2016 was 13.83% higher than in the preceding year. The increase is attributable to the new acquisitions that the company made in the second half of 2015 and the Tilia project in Gullegem, which was made available to the Wevelgem PCSW from 1 June 2015.
On 23 December 2016, Care Property Invest repaid the amounts already charged for the increase in withholding tax from 15% to 27% to the PCSWs/vzw's long-term lease holders with which it works. The income from financial leasing and the like fell slightly, despite the fact that the ground rents rose as a result of indexation. This was due to the diminution in commission on delivered projects.
The Company's operating result rose by 21.24% from year-end 2015. This increase was primarily recorded due to the increase in rental income. The general operating costs were slightly lower than in 2015, which, within rising rental income, leads to further dilution of these costs.
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 it was acquired, on 31 December 2016 a positive result was already recorded as a variation of the fair value of property investments. The increase in the operating result is primarily attributable to this added value.
The financial result was affected negatively due to the inclusion of the fair value of financial instruments entered into. As a result of the prevailing low (or negative) interest rates, a loss amounting to €2,153,469 had to be recorded in the Company's income statement on 31 December 2016, bringing the total negative impact to date to €21,463,004.
The Company paid a reinvestment fee of €711,708.38 as a result of the early repayment of the investment loans of B Turnhout nv.
This reinvestment fee is 21% lower than the contractual reinvestment fee and this discount was agreed in relation to the issue of a roll-over credit facility by KBC on favourable terms. As a result of the payment of this reinvestment fee, six loans from KBC, with the highest interest rate of all loans of Care Property Invest and its subsidiaries, were terminated. With the take-up of the new loan and the redemption of the six loans from KBC, the average interest rate payable by Care Property Invest fell from 4.17% to 4.01%. The payment of the reinvestment fee with a discount therefore also constituted a value-creating operation for the Company and its shareholders.
Care Property Invest NV/SA | 17 Press release | Regulated information
The Company's subsidiaries are subject to corporate tax. Consequently, the estimated taxes of those companies increase the total taxes in relation to 31 December 2015. The deferred taxation forms part of the calculation base for the exit tax and is subject to tax at a rate of 17%. Through the tax-free merger of Care Property Invest nv and Croonenburg nv, this exit tax is effectively due in the near future. In book-keeping terms, half of this is taken to the income statement as a 'transfer from deferred taxation' and the remainder is shown in the balance sheet in 'other reserves, tax-free reserves'.
The Company's EPRA Earnings amounted to €8,410,270.50 on a consolidated basis as at 31 December 2016, compared with €7,841,408.13 as at 31 December 2015. This represents an increase of 7.25%. This increase would have amounted to 16.33% and the EPRA earnings to €9,121,978.88 if Care Property Invest had not paid a reinvestment fee of €711,708.38 (see the discussion in "Financial result" above). However, the EPRA earnings per share fell from €0.6615 on 31 December 2015 to €0.6379 on 31 December 2016. This diminution is attributable to the capital increase of 22 June 2015. The weighted average of the number of outstanding shares as at 31 December 2015 was 11,853,348.11, compared with 13,184,720 shares as at 31 December 2016.
Press release | Regulated information
| Financial year closed on 31 December | 2016 | 2015 |
|---|---|---|
| ASSETS | ||
| I. Non-current assets |
258,292,942.67 | 221,298,315.40 |
| C. Investment properties | 85,040,501.00 | 49,960,748.55 |
| D. Other tangible fixed assets | 4,464,773.43 | 2,071,965.41 |
| E. Financial fixed assets | 3,770.00 | 6,270.00 |
| F. Finance lease receivables | 156,938,252.98 | 157,005,329.44 |
| G. Trade receivables and other non-current assets | 11,845,645.26 | 12,254,002.00 |
| concerning projects in progress | 0.00 | 0.00 |
| concerning delivered projects | 11,845,645.26 | 12,254,002.00 |
| II. Current assets |
4,722,317.34 | 8,979,912.44 |
| D. Trade receivables | 26,787.65 | 49,510.40 |
| E. Tax receivables and other current assets | 600,530.53 | 361,757.78 |
| corporate tax other |
479,783.54 120,746.99 |
267,119.66 94,638.12 |
| F. Cash and cash equivalents | 3,657,308.89 | 8,547,845.86 |
| G. Deferrals and accruals | 437,690.27 | 20,798.40 |
| TOTAL ASSETS | 263,015,260.01 | 230,278,227.84 |
| EQUITY AND LIABILITIES | ||
| EQUITY | 108,698,808.51 | 100,299,744.76 |
| A. Capital | 78,442,491.65 | 78,442,491.65 |
| B. Share premium | 20,592,745.89 | 20,592,745.89 |
| C. Reserves | 1,768,287.54 | -3,281,714.37 |
| D. Net result for the financial year | 7,895,283.43 | 4,546,221.59 |
| LIABILITIES | 154,316,451.50 | 129,978,483.08 |
| I. Non-current liabilities | 125,069,420.29 | 124,103,757.25 |
| B. Non-current financial liabilities | 102,522,085.23 | 100,263,959.66 |
| C. Other non-current financial liabilities | 21,463,004.00 | 19,309,535.00 |
| authorised hedging instruments | 21,463,004.00 | 19,309,535.00 |
| F. Deferred taxes | 1,084,331.06 | 4,530,262.59 |
| II. Current liabilities | 29,247,031.21 | 5,874,725.83 |
| B. Current financial liabilities | 20,498,673.84 | 718,507.47 |
| D. Trade payables and other current liabilities | 8,160,383.22 | 4,389,028.40 |
| a. Exit tax | 4,483,638.69 | 0.00 |
| b. Other | 3,676,744.53 | 4,389,028.40 |
| suppliers | 3,478,645.56 | 3,995,195.63 |
| tenants | 50.00 | 1,700.00 |
| taxes, remuneration and social insurance charges E. Other current liabilities |
198,048.97 120,012.11 |
392,132.77 345,630.52 |
| F. Deferrals and accruals | 467,962.04 | |
| prepayments of property revenue | 45,555.38 | 421,559.44 72,609.52 |
| accrued and not due interests and other charges | 0.00 | 167,315.60 |
| accrued charges | 422,406.66 | 181,634.32 |
| TOTAL EQUITY AND LIABILITIES | 263,015,260.01 | 230,278,227.84 |
| DEBT RATIO | 49.92% | 45.80% |
Care Property Invest NV/SA | 19 Press release | Regulated information
The Company's portfolio was further expanded in 2016 through the acquisition of 2 additional residential complexes for the elderly, for a sum of €32,640,699. The value of the property investments already in the portfolio on 31 December 2015 rose to €52,389,802. The real estate expert confirms the fair value of this real estate portfolio at a total amount of approximately €85 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%. Since these purchases took place at the end of December 2016, these new acquisitions have not yet contributed to the rental income.
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. This amount has changed since 31 December 2015, as two projects (Ham and Destelbergen-Heusden) were finally settled in June 2016. The actual value of the financial leasing as at 31 December 2016 was €245,299,306.59.
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. The decrease is only due to the depreciation of the attributed profit or loss margin by deducting this from the ground rate revenue.
The Company's capital and equity were strengthened by the capital increase in June 2015, when €38 million was raised. 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.
Following the approval of the RREC status by the Extraordinary General Meeting of 25 November 2014, with shareholders being given the opportunity to exercise their withdrawal rights, the Company bought back 17,030 shares at a market value of €16.05 per share. The total amount of €273,331.50 was recorded as a reserve with the Company's equity.
The Company awarded 2,000 shares to the CEO on 11 August 2015 as part of the payment of a bonus. The extraordinary general meeting of 18 November 2015 granted approval, within the meaning of Article 622 §2, 2° of the Companies Code, to sell the remaining 15,030 treasury shares within a period of two years on an arm's length basis, with the minimum price being the average share price during the last 30 days before the sale.
Care Property Invest NV/SA | 20 Press release | Regulated information
These shares were sold on 15 September 2016 at a market price of €19.45, for a total gross amount of €292,333.50. The realised added value of €50,254.23 was shown in 'other elements of the global result'.
The deferred taxation forms part of the calculation base for the exit tax and is subject to tax at a rate of 17%. Through the tax-free merger of Care Property Invest nv and Croonenburg nv, this exit tax is effectively due in the near future. In book-keeping terms, half of this is taken to the income statement as a 'transfer from deferred taxation' and the remainder is shown in the balance sheet in 'other reserves, tax-free reserves'.
Amounts shown in euros
The financing of the subsidiary companies was once again included in the liabilities on a consolidated basis on 31 December 2016. The Company has a credit line of €15,300,000 at KBC Bank which has not been taken up. The credit line for a total amount of €35 million was contracted at a variable interest rate on favourable terms.
| Financial year closed on 31 December | 2016 | 2015 |
|---|---|---|
| average remaining term of financial debts | 13.61 | 14.60 |
| nominal amount of short and long term debts | 123,020,759.07 | 100,981,717.13 |
| nominal amount of short and long term debts | 123,020,759.07 | 100,981,717.13 |
|---|---|---|
| weighted average interest rate | 4.01% | 4.17% |
| nominal amount of financing hedged by a financial instrument | 35,791,937.59 | 35,791,937.59 |
| fair value of the hedging instruments | -21,463,004.00 | -19,309,535.00 |
| movement in financial debts | 22,039,041.94 | 13,121,678.82 |
| Amounts shown in euros | ||
|---|---|---|
| Financial year closed on | 2016 | 2015 |
| total assets | 263,015,260.01 | 230,278,227.84 |
| liabilities | -154,316,451.52 | -129,978,483.08 |
| NET ASSETS | 108,698,808.51 | 100,299,744.76 |
| Net value per share | € 8.24 | € 7.62 |
| total assets | 263,015,260.01 | 230,278,227.84 |
| current or non-current liabilities (not including "authorised hedging instruments") |
-132,853,447.52 | -110,668,948.08 |
| NET ASSETS. NOT INCLUDING "AUTHORISED HEDGING INSTRUMENTS" |
130,161,812.51 | 119,609,279.76 |
| Net value per share, not including "authorised hedging instruments" |
€ 9.87 | € 9.08 |
| total assets inluding the calculated fair value | 339,530,668.36 | 282,908,373.93 |
| current or non-current liabilities (not including "authorised hedging instruments") |
-132,853,447.52 | -110,668,948.08 |
| NET ASSETS, NOT INCLUDING "AUTHORISED HEDGING INSTRUMENTS", INCLUDING THE "FAIR VALUE OF THE LEASE RECEIVABLES" - EPRA NAV |
206,677,220.86 | 172,239,425.85 |
| Net value per share not including "authorised hedging instruments" and including the "fair value of the lease receivables" |
€ 15.68 | € 13.08 |
In accordance with the regulated real estate companies act ("RREC Law") the shares held by the Company(*) in its own capital are not included in the calculation of the net value per share. The weighted average shares outstanding represented 11,853,348.11 shares on 31 December 2015, compared to 13,184,720.00 on 31 December 2016, since all additional shares, issued following the capital increase in June 2015, are entitled to dividend for the full financial year 2016. (*) As from 15 September 2016, the Company no longer holds any treasury shares.
| 2016 | 2015 |
|---|---|
| 0.62 | 0.57 |
| 15.76 | 13.42 |
| 13.13 | 10.86 |
| 4.54 | 4.96 |
| 4.54 | 4.40 |
| 0.00 | 0.00 |
| 14.81 | 16.95 |
| 14.81 | 16.91 |
(*) Care Property Invest only encounters a vacancy risk with the project "Tilia" in Gullegem. With respect to the projects in the initial investment program, the risk lies with the counterparty. The Company receives the ground rent, whether or not a certain vacancy exists. For the new projects as well, the Company tries to shift this risk entirely or for a large part to the counterparty. The vacancy rate for the project "Tilia" is therefore negligible in the entire portfolio.
The purpose of the indicators mentioned below are explained further down in this document.dow
| Financial year closed on 31 December | 2016 | 2015 | |
|---|---|---|---|
| EPRA Earnings Current result from strategic operational activities. |
x 1,000 | 8,124 | 7,477 |
| €/aandeel | 0.62 | 0.57 | |
| EPRA NAV Net Asset Value (NAV) adjusted to include the investment properties at their fair value and to exclude certain items |
x 1,000 | 207,762 | 176,770 |
| not expected to crystallise in a long-term investment property business model. |
€/aandeel | 15.76 | 13.42 |
| EPRA NNNAV EPRA NAV adjusted to include the fair value of (i) financial |
x 1,000 | 173,168 | 143,037 |
| instruments, (ii) debt and (iii) deferred taxes. | €/aandeel | 13.13 | 10.86 |
| EPRA net initial yield (NIY) Annualised gross rental income based on the passing rents at the closing date, less property charges, divided by the market value of the portfolio, increased with estimated transaction costs resulting from the hypothetical disposal of investment properties. |
% | 4.54 | 4.96 |
| EPRA "topped up" NIY This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods and other incentives. |
% | 4.54 | 4.40 |
Press release | Regulated information
| Financial year closed on 31 December | 2016 | 2015 | |
|---|---|---|---|
| EPRA vacancy rate (*) Estimated Rental Value (ERV) of vacant space divided by the ERV of the total portfolio. |
% | 0.00 | 0.00 |
| EPRA cost ratio (incl. costs of direct vacancy) Administrative/operational expenses per IFRS income statement, including the direct costs of vacant buildings, divided by the gross rental income, less ground rent costs. |
% | 14.81 | 16.95 |
| EPRA cost ratio (excl. costs of direct vacancy) Administrative/operational expenses per IFRS income statement, less the direct costs of vacant buildings, divided by the gross rental income, less ground rent costs |
% | 14.81 | 16.91 |
(*) Care Property Invest only runs a vacancy risk with the project "Tilia" in Gullegem. With respect to the projects in the initial investment program, the risk lies with the counterparty. The Company receives the ground rent, whether or not a certain vacancy exists. For the new projects as well, the Company tries to shift this risk entirely or for a large part to the counterparty. The vacancy rate for the project "Tilia" is therefore negligible in the entire portfolio.
| (x € 1.000) | ||||
|---|---|---|---|---|
| Financial year closed on 31 December | 2016 | 2015 | ||
| IFRS Earnings as mentioned in the income statement | 7.895 | 12.014 | ||
| Adjustments to calculate EPRA Earnings: | 228 | -4,537 | ||
| (i) | Changes in fair value of investment properties and assets held for sale |
-1,925 | -1,690 | |
| (ii) | Profits or losses on disposal of investment properties. | 0 | 0 | |
| (iii) | Profits or losses on sales of assets held for sale. | 0 | 0 | |
| (iv) | Tax on profits or losses on disposals. | 0 | 0 | |
| (v) | Negative goodwill / goodwill impairment. | 0 | 0 | |
| (vi) | Changes in fair value of financial assets and liabilities (IAS 39) and associated close-out costs. |
2,153 | -2,847 | |
| (vii) | Acquisition costs and interests on share deals and joint ventures (IFRS 3). |
0 | 0 | |
| (viii) Deferred taxes in respect of EPRA adjustments. | 0 | 0 | ||
| (ix) | EPRA adjustments (i) to (viii) in respect of joint ventures. |
0 | 0 | |
| (x) | Minority interests in respect of EPRA adjustments. | 0 | 0 | |
| EPRA Earnings | 8,124 | 7,477 | ||
| Number of shares | 13,184,720 | 13,169,690 | ||
| EPRA Earnings per share (in €) | 0.62 | 0.57 |
| (x € 1.000) Financial year closed on 31 December |
2016 | 2015 |
|---|---|---|
| NAV per the financial statements | 108,699 | 100,300 |
| NAV per the financial statements (in €/share) | 8.24 | 7.62 |
| Effect of exercise of options, convertibles and other equity interests. |
0 | 0 |
| Diluted NAV, after the exercise of options, convertibles and other equity interests. |
108,699 | 100,300 |
| To be included: | ||
| (i) Re-evaluation to fair value of investment properties. |
0 | 0 |
| (ii) Re-evaluation to fair value of finance lease receivables (*) |
76,515 | 52,630 |
| (iii) Re-evaluation to fair value of assets held for sale. | 0 | 0 |
| To be excluded: | ||
| (iv) Fair value of financial instruments. | 21,463 | 19,310 |
| (v.a) Deferred tax. | 1,084 | 4,530 |
| (v.b) Part of goodwill as a result of deferred tax. | 0 | 0 |
| To be included/ To be excluded: | ||
| Adjustments (i) with respect to (v) respect of joint ventures. | 0 | 0 |
| EPRA NAV | 207,762 | 176,770 |
| Number of shares | 13,184,720 | 13,169,690 |
| EPRA NAV per share (in €) | 15.76 | 13.42 |
(*) The fair value of finance lease receivables was calculated by discounting future cash flows, including the investment costs shown under the heading "finance lease receivables", at an IRS rate prevailing on 31 December of the relevant year, depending on the remaining term of the building rights period plus a margin.
| (x € 1.000) | ||
|---|---|---|
| Financial year closed on 31 December | 2016 | 2015 |
| EPRA NAV | 207,762 | 176,770 |
| To be included: | ||
| (i) Fair value of financial instruments |
-21,463 | -19,310 |
| (ii) Fair value of debt |
-12,046 | -9,893 |
| (iii) Deferred tax | -1,084 | -4,530 |
| EPRA NNNAV | 173,168 | 143,037 |
| Number of shares | 13,184,720 | 13,169,690 |
| EPRA NNNAV per share (in €) | 13?13 | 10?86 |
Press release | Regulated information
| (x € 1.000) | ||
|---|---|---|
| Financial year closed on 31 December | 2016 | 2015 |
| Investment properties in fair value. | 85,041 | 49,961 |
| Finance lease receivables in fair value. (*) | 245,299 | 221,889 |
| Assets held for sale (+) | 0 | 0 |
| Development projects. (-) | 0 | 0 |
| Investments properties in exploitation in fair value | 330,340 | 271,850 |
| Allowance for estimated purchasers' costs (+). | 61 | 83 |
| Investment value of investment properties in exploitation | 330,401 | 271,933 |
| Annualised gross rental income (+) | 14,997 | 13,500 |
| Property charges. (-) | 0 | 0 |
| Annualised net rental income | 14,997 | 13,500 |
| Notional rent expiration of rent free period or other lease incentives (-) |
0 | -1,525 |
| Topped-up and annualised net rental income | 14,997 | 11,975 |
| EPRA NIY (in %) | 4.54 | 4.96 |
| EPRA TOPPED-UP NIY (in %) | 4.54 | 4.40 |
(*) The fair value of finance lease receivables was calculated by discounting future cash flows, including the investment costs shown under the heading "finance lease receivables", at an IRS rate prevailing on 31 December of the relevant year, depending on the remaining term of the building rights period plus a margin.
| (x € 1.000) | |||||||
|---|---|---|---|---|---|---|---|
| Financial year closed on | 31 December 2016 | ||||||
| Gross rental income (1) |
Net rental income (2) |
Lettable space (in m²) |
Contractual rents (3) |
Estimated rental value (ERV) on empty spaces |
Estimated rental value (ERV) |
Vacancy rate (in %) (4) |
|
| Investment properties available for lease |
2,519 | 2,519 | 38 | 4,186 | 0 | 4,481 | 0.00% |
| Finance leases | 13,111 | 13,111 | - | - | - | - | - |
| Reconciliation with the consolidated IFRS-balance sheet |
|||||||
| Development projects | 0 | 0 | |||||
| Total investment properties | 15,630 | 15,630 | |||||
| Financial year closed on | 31 December 2015 | ||||||
| Investment properties available for lease |
615 | 615 | 24 | 2,566 | 0 | 2,790 | 0.00% |
| Finance leases | 13,117 | 13,117 | - | - | - | - | - |
| Reconciliation with the consolidated IFRS-balance sheet |
|||||||
| Development projects | 0 | 0 | |||||
| Total investment properties | 13,732 | 13,732 |
Care Property Invest NV/SA | 26 Press release | Regulated information
(1) The total "gross rental income" for the period determined in the EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the "net rental income" in the consolidated IFRS accounts.-
(2) The total "net rental income" for the period determined in the EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the "property operating income" in the consolidated IFRS accounts.
(3) Current lease at the date of closing, plus future lease contracts as the date of 31 December 2016 or 31 December 2015. (4) Care Property Invest only runs a vacancy risk with the project "Tilia" in Gullegem. With respect to the projects in the initial investment program, the risk lies with the counterparty. The Company receives the ground rent, whether or not a certain vacancy exists. For the new projects as well, the Company tries to shift this risk entirely or for a large part to the counterparty. The vacancy rate for the project "Tilia" is therefore negligible in the entire portfolio.
| (x € 1.000) | |||||||
|---|---|---|---|---|---|---|---|
| Financial year closed on 31 December 2016 |
|||||||
| Gross rental income |
Gross rental income on a like-for-like compared to 2015 |
Acquisitions | Sales | Other | Regularisation of rental income related to past periods |
Gross rental income at cur rent perimeter |
|
| Investment properties available for lease |
615 | 2?502 | 17 | 0 | 0 | 0 | 2?519 |
| Finance leases | 13?117 | 13?111 | 0 | 0 | 0 | 0 | 13?111 |
| Reconciliation with the consolidated IFRS-balance sheet |
|||||||
| Development projects | 0 | 0 | |||||
| Total Investment properties | 13.732 | 15.613 | 17 | 0 | 0 | 0 | 15.630 |
| Financial year closed on | 31 December 2015 | |||
|---|---|---|---|---|
| Fair value | Changes in fair value | EPRA NIY (in%) | Value variance (in %) | |
| Investment properties available for lease |
85,041 | 2,566 | 1.17 | 3.02 |
| Finance leases | (*) 245,299 | 23 | 3.37 | 0.01 |
| Reconciliation with the consolidated IFRS-balance sheet |
||||
| Development projects | 0 | 0 | ||
| Total investment properties | 330,340 | 2,589 | ||
| Financial year closed on | 31 december 2015 | |||
| Investment properties available for lease |
49,961 | 1,690 | 0.91 | 3.38 |
| Finance leases | 221,889 | 4,701 | 4.05 | 2.12 |
| Reconciliation with the consolidated IFRS- balance sheet |
||||
| Development projects | 0 | 0 | ||
| Total investment properties | 271,850 | 6,391 |
(*) The fair value of finance lease receivables was calculated by discounting future cash flows including the investment costs shown under the heading "finance lease receivables"? at an IRS rate prevailing on 31 December of the relevant year depending on the remaining term of the building rights period plus a margin.
| (x € 1.000) | |||||
|---|---|---|---|---|---|
| Financial year closed on | 31 December 2016 | ||||
| Current rent of leases expiring. | |||||
| Average remaining maturity1 (in years) |
Ending between 0-10 years |
Ending between 10-15 years |
Ending between 15-20 years |
Ending > 20 years | |
| Investment properties available for lease |
17.13 | 0 | 121 | 17 | 2,381 |
| Finance leases | 22.87 | 339 | 5,671 | 3,219 | 4,288 |
| Reconciliation with the consolidated IFRS-balance sheet |
|||||
| Development projects | 0 | 0 | 0 | 0 | 0 |
| Total Investment properties | 17.54 | 339 | 5,792 | 3,236 | 6,669 |
| Financial year closed on | 31 December 2015 | ||||
| Current rent of leases expiring, | |||||
| Average remaining maturity1 (in years) |
Ending between 0-10 years |
Ending between 10-15 years |
Ending between 15-20 years |
Ending > 20 years | |
| Investment properties available for lease |
18.13 | 0 | 44 | 0 | 571 |
| Finance leases | 23.7 | 0 | 5,207 | 2,941 | 5,235 |
| Reconciliation with the consolidated IFRS-balance sheet |
|||||
| Development projects | 0 | 0 | 0 | 0 | 0 |
| Total investment properties | 18.41 | 0 | 5,251 | 2,941 | 5,806 |
| (x € 1.000.000) | |||||||
|---|---|---|---|---|---|---|---|
| Financial year closed on | 31 December 2016 | ||||||
| Cost to date | Costs to completion | Future interest to be capitalised |
Forecast total cost | Forecast com- pletion date | Number of living units |
ERV on completion (x € 1.000) |
|
| "Herfstvrede" (Moerbeke) | 2.40 | 1.20 | 0.00 | 3.60 | 02/2017 | 22 | 191 |
| "Huis Driane" ( Herenthout) | 0.06 | 3.10 | 0.00 | 3.10 | Spring 2018 |
22 | 146 |
| Total | 2.46 | 4.30 | 0.00 | 6.70 | 44 | 336 | |
| Financial year closed on | 31 December 2015 | ||||||
| "Herfstvrede" (Moerbeke) | 0.06 | 3.60 | 0.00 | 3.60 | mid 2017 | 22 | 191 |
| "Huis Driane" ( Herenthout) | 0.00 | 3.10 | 0.00 | 3.10 | Spring 2018 |
20 | 146 |
| Total | 0.06 | 6.70 | 0.00 | 6.70 | 42 | 336 |
Press release | Regulated information
| (x € 1.000) | ||
|---|---|---|
| Financial year closed on | 31 December 2016 | 31 December 2015 |
| Administrative/operating expense line per IFRS statement | -2,315 | -2,328 |
| Rental-related charges | 0 | 0 |
| Recovery of property charges | 0 | 0 |
| Rental charges and taxes normally paid by tenants on let properties |
0 | 0 |
| Technical costs | 0 | 0 |
| Commercial costs | 0 | 0 |
| Charges and taxes on unlet properties | -1 | -6 |
| Property management costs | 0 | 0 |
| Other property charges | 0 | 0 |
| Overheads | -2,376 | -2,403 |
| Other operating income and charges | 62 | 81 |
| EPRA Costs (including direct vacancy costs) (A) | -2,315 | -2,328 |
| Charges and taxes on unlet properties | 1 | 6 |
| EPRA Costs (excluding direct vacancy costs) (B) | -2,314 | -2,322 |
| Gross Rental Income (C) | 15,629 | 13,732 |
| EPRA Cost Ratio (including direct vacancy costs) (A/C) | 14.81 | 16.95 |
| EPRA Cost Ratio (excluding direct vacancy costs) (B/C) | 14.81 | 16.91 |
(*) General and capitalized operating costs (share of joint ventures included)
Care Property Invest capitalizes overhead costs and operating expenses that are directly related to the development projects (legal expenses, project management, ...).
Press release | Regulated information
| EPRA Key Performance Indicatoren |
Definition | Objective |
|---|---|---|
| EPRA Earnings | Current result from strategic operational activities |
A key measure of a company's underlying operating results and an indication of the extent to which current dividend payments are supported by earnings. |
| EPRA NAV | Net Asset Value (NAV) adjusted to include the investment properties at their fair value and to exclude certain items not expected to crystallise in a long-term investment property business model. |
Net Asset Value (NAV) adjusted to include the investment properties at their fair value and to exclude certain items not expected to crystallise in a long-term investment property business model. |
| EPRA NNNAV | EPRA NAV adjusted to include the fair value of (i) financial instruments, (ii) debt and (iii) deferred taxes. |
Makes adjustments to EPRA NAV to provide stakeholders with the most relevant information on the current fair value of all the assets and liabilities within a real estate company. |
| EPRA Net Initial Yield (NIY) |
Annualised gross rental income based on the passing rents at the closing date, less property charges, divided by the market value of the portfolio, increased with estimated transaction costs resulting from the hypothetical disposal of investment properties. |
A comparable measure for portfolio valuations. This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y. |
| EPRA 'topped-up' NIY | This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods and other incentives |
This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y. |
| EPRA Vacancy Rate | Estimated Rental Value (ERV) of vacant space divided by the ERV of the total portfolio. |
A "pure" (%) measure of investment property space that is vacant, based on ERV. |
| EPRA Cost Ratios (including costs of direct vacancy) |
Administrative/operational expenses per IFRS income statement, including the direct costs of vacant buildings, divided by the gross rental income, less ground rent costs. |
A key measure to enable meaningful measurement of the changes in a company's operating costs. |
| EPRA Cost Ratios (excluding costs of direct vacancy) |
Administrative/operational expenses per IFRS income statement, less the direct costs of vacant buildings, divided by the gross rental income, less ground rent costs. |
A key measure to enable meaningful measurement of the changes in a company's operating costs. |
A proposal will be submitted to the Company's General Meeting to pay a dividend of €8,306,373.60 for the 2016 financial year. The pay-out ratio will then amount to 100% at the level of the Articles of Association and 98.76% at the consolidated level.
The amount calculated in accordance with Article 13 of the RREC Royal Decree is €6,631,444.53 for the 2016 financial year, which is the minimum amount which should be paid out as reimbursement of the capital in the event of a positive net result for the year.
The following profit appropriation will be proposed to the general meeting of shareholders on 17 May 2017: umber of shares with rights to dividends 13,184,720
| proposed dividends | €8,306,373.60 |
|---|---|
| gross dividend per share | €0.63 |
| gross yield in relation to market capitalisation as at 31 December 2016 | 3.08% |
| net dividend per share | €0.5355 |
| net yield in relation to market capitalisation as at 31 December 2016 | 2.62% |
On approval of this profit appropriation, a gross dividend of €0.63 per share will be paid, equating to a gross yield of 3.08% in relation to the market capitalisation as at 31 December 2016. This dividend is subject to withholding tax of 15%, resulting in a net dividend of €0.5355. The dividend is payable from 26 May 2017.
As Care Property Invest does not exceed the debt ratio of 50% (49.92% as at 31 December 2016), it is not required to draw up a financial plan in accordance with Article 24 of the RREC Royal Decree.
On the basis of the balance sheet and income 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 amounting to €50 million, the maximum debt ratio of 65% will not be exceeded on a consolidated basis in 2016. As at 31 December 2016, the debt ratio, calculated in accordance with Article 13 of the RREC Royal Decree, was 49.92%. 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 2016 financial year of €0.63 per share to the general meeting of shareholders on 17 May 2017.
Barring unforeseen circumstances, the Board of Directors proposes a significantly increased dividend payment for the 2017 financial year. 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 17.54 years, the Company expects to be able to pay a stable dividend. 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 Board of Directors is of the opinion that the main risk factors and uncertainties as described on page 8-18 in the annual financial report 2015, remain valid for the financial year 2016. Naturally, these risk factors will be discussed in detail in the annual financial report that will be published on 30 March 2016.
| Annual Financial Report 2016 | 30 March 2017 |
|---|---|
| Interim statement 1st quarter 2017 | 11 May 2017 |
| Ordinary General Meeting | 17 May 2017 |
| Dividend: listing ex-coupon | 24 May 2017 |
| Payment of dividends | Starting from 26 May 2017 |
| Half-yearly financial report | 7 September 2017 |
| Interim statement 3rd quarter 2017 | 15 November 2017 |
These dates may be subject to changes
The Statutory Auditor has confirmed that his audit procedures, which have been substantially completed, have not produced any significant correction that should be implemented in the accounting information included in this press release.
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. The share is listed under the name of CPINV and has the following ISIN-Code: BE0974273055. As from December 2016, the share has also been included in the BEL Mid index.
This press release contains forecasts involving risks and uncertainties, amongst others statements regarding plans, objectives, expectations and intentions of Care Property Invest. Readers are cautioned that such forecasts involve known and unknown risks and are subject to significant business, economic and competitive uncertainties which are mostly beyond Care Property Invest's control. If one or more of these risks or uncertainties materialise or should, if applied, basic assumptions prove incorrect, the final results may significantly deviate from the anticipated, expected, estimated or projected results. Consequently, Care Property Invest cannot assume any responsibility for the accuracy of these forecasts
For any additional information, please contact:
Peter Van Heukelom General Director/Managing Director E [email protected] M +32 495 59 82 67
Horstebaan 3 2900 Schoten T +32 3 222 94 94 F +32 3 222 94 95 E [email protected] www.carepropertyinvest.be
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