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Cofinimmo — Interim / Quarterly Report 2016
Jul 28, 2016
3933_ir_2016-07-28_2ed9110b-de43-43e5-aa3c-2cc4daf02987.pdf
Interim / Quarterly Report
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2016 Half-Year Financial Report
Financial results in line with forecasts for the 2016 financial year
- Net current result (excluding IAS 39 impact) Group share: 2.86 EUR per share (compared to 3.35 EUR at 30.06.2015) – Impact of some non-recurrent elements (-0.25 EUR/share) and the increase in the number of shares entitled to share in the results (-0.35 EUR/share)
- Result on the portfolio: 0.58 EUR per share (compared to -0.38 EUR at 30.06.2015)
- Net result Group share: 1.65 EUR per share (compared to 3.04 EUR at 30.06.2015)
- Forecast confirmation of the net current result (excluding IAS 39 impact) Group share for the 2016 financial year : 6.19 EUR per share
- Confirmation of the gross dividend forecast for the 2016 financial year, payable in 2017: 5.50 EUR per ordinary share
Strong operating performances:
- Stable occupancy rate: 94.9 %
- Particularly long residual lease length: 10.2 years
- Gross rental revenues up by 0.2 % over the past 12 months (+0.5 % on a like-for-like basis)
- Portfolio value up by 3.2 % over the past six months (+0.4 % on a like-for-like basis)
- Resilient EPRA Net Asset Value: 94.61 EUR per share (93.34 EUR at 31.12.2015)
Continuation of the investment programme:
- Acquisition of an office building in Brussels for 31 million EUR
- Acquisition of two healthcare assets in Germany for 39 million EUR1
- Signature of an agreement for the renovation and extension of three healthcare assets in Belgium and France for 16 million EUR
- Investments realised since the May 2015 capital increase: 171 million EUR, of which 120 million EUR in healthcare real estate and 47 million EUR in office buildings
- Committed investment pipeline for the 01.07.2016 31.12.2018 period: 308 million EUR, of which 117 million EUR in healthcare real estate and 179 million EUR in office buildings
Conditional sale of the Souverain/Vorst 25 office building (Decentralised Brussels)
- Ownership transfer at the earliest at the departure of the current tenant AXA (August 2017), and subject to obtaining the necessary permits and authorisations from the public authorities
- Reconversion by Cofinimmo of the neighbouring Souverain/Vorst 23 building into residential units
1 This includes an acquisition agreement for the Calau nursing home in Brandenburg for 9 million EUR, which occurred after 30.06.2016 and is subject to administrative conditions precedent.
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Table of contents
| 1. Interim management report |
p. 3 |
|---|---|
| 1.1. Summary of activities | p. 3 |
| 1.2. Consolidated key figures | p. 4 |
| 1.3. Evolution of the portfolio | p. 6 |
| 1.4. Financial resources management | p. 11 |
| 1.5. Commercial results | p. 15 |
| 1.6. Real estate assets | p. 18 |
| 1.7. 2016-2018 investment programme | p. 20 |
| 1.8. Information on shares and bonds | p. 22 |
| 1.9. Corporate Governance | p. 26 |
| 1.10. Sustainable development and management policy | p. 27 |
| 1.11. Risk management | p. 29 |
| 1.12. Events after 30.06.2016 | p. 32 |
| 2. Summary Financial Statements |
p. 33 |
| 2.1. Consolidated global result – Royal Decree of 13.07.2014 form | p. 34 |
| 2.2. Consolidated income statement – Analytical form | p. 36 |
| 2.3. Consolidated balance sheet | p. 39 |
| 2.4. Calculation of the consolidated debt ratio | p. 40 |
| 2.5. Cash flow statement | p. 41 |
| 2.6. Consolidated statement of changes in shareholders' equity | p. 42 |
| 2.7. Notes to the consolidated accounts | p. 45 |
| 3. Statement of compliance |
p. 64 |
| 4. Appendices |
p. 66 |
| 4.1. Real estate experts' report | |
| 4.2. Statutory auditor's report |
1. Interim management report
1.1. Summary of activities
PRESS RELEASE
The first six months of 2016 saw the completion of a number of investments by the Cofinimmo Group in its two main business areas. The half-year realisations concern the acquisition the Kaiser Karl rehabilitation clinic in Bonn (Germany) and the Arts/Kunst 46 office building in Brussels. In addition, the Group signed an acquisition agreement for the Calau nursing home in Brandenburg (Germany) 1 in July. The amount of investments realised since the May 2015 capital increase thus rose to 171 million EUR, of which 120 million EUR in healthcare real estate and 47 million EUR in offices.
In addition, the future of the Souverain/Vorst 23-25 site in Brussels after the departure of the current tenant AXA (planned for August 2017) has been actively worked on: a conditional sales agreement has been reached for the main building Souverain/Vorst 25, and the neighbouring Souverain/Vorst 23 building will be converted into residential units. The adjacent Tenreuken plot of land will also be used for housing, for which the permit application is pending.
The net current result (excluding IAS 39 impact) – Group share was 60.0 million EUR at 30.06.2016, compared to 63.0 million EUR at 30.06.2015. This difference is mainly due to a different breakdown of certain costs over the year and to certain non-recurrent charges, more specifically expenses related to various investment cases. Per share, the figures were 2.86 EUR at 30.06.2016 and 3.35 EUR at 30.06.2015, due to the fact that the number of shares entitled to share in the result of the period evolved from 18,783,949 to 20,984,249 between these two dates. The net result was 34.6 million EUR at 30.06.2016, compared to 57.1 million EUR at 30.06.2015, that is, 1.65 EUR per share at 30.06.2016 and 3.04 EUR per share at 30.06.2015.
Given these results and the non-recurrent nature of some charges booked during the first half-year, and taking into account a committed investment pipeline of 308 million EUR for the 01.07.2016 – 31.12.2018 period, the Cofinimmo Group confirms its 2016 financial year forecast of a net current result (excluding IAS 39 impact) – Group share of 6.19 EUR per share and a gross dividend of 5.50 EUR per ordinary share.
1 Acquisition subject to administrative conditions precedent.
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1.2. Consolidated key figures
Global figures
| (in million EUR) | 30.06.2016 | 31.12.2015 |
|---|---|---|
| Investment property portfolio (in fair value) | 3,234.4 | 3,134.4 |
| (in thousand EUR) | 30.06.2016 | 30.06.2015 |
| Property result | 101,961 | 101,199 |
| Operating result before result on the portfolio | 79,833 | 86,273 |
| Financial result (excluding IAS 39 impact) | -14,940 | -18,522 |
| IAS 39 impact | -37,482 | 1,418 |
| Net current result - Group share | 22,493 | 64,149 |
| Result on the portfolio - Group share | 12,113 | -7,082 |
| 34,605 | 57,066 | |
| Net result - Group share | ||
| 30.06.2016 | 31.12.2015 | |
| Operating expenses/average value of the portfolio under management1 | 1.26 % | 0.93 % |
| Operating margin | 79.9 % | 84.0 % |
| Weighted residual lease term2 (in years) |
10.2 | 10.5 |
| Occupancy rate3 | 94.9 % | 94.9 % |
| Gross rental yield at 100 % occupancy | 7.0 % | 6.9 % |
| Net rental yield at 100 % occupancy | 6.3 % | 6.4 % |
| Debt ratio4 | 42.1 % | 38.6 % |
| Average cost of debt5 | 2.7 % | 2.9 % |
Data per share6
| (in EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Net current result (excluding IAS 39 impact) - Group share | 2.86 | 3.35 |
| IAS 39 impact | -1.79 | 0.07 |
| Net current result - Group share | 1.07 | 3.42 |
| Result on the portfolio - Group share | 0.58 | -0.38 |
| Net result - Group share | 1.65 | 3.04 |
1 Average value of the portfolio plus the value of sold receivables relating to buildings which maintenance costs payable by the owner are still met by the Group through total cover insurance premiums.
2 Until the date of the tenant's first break option.
3 Calculated based on real rents and, for vacant space, the rental value estimated by independent real estate experts.
4 Legal ratio calculated in accordance with the legislation on RREC such as financial and other debts divided by total assets. 5 Including bank margins.
6 Ordinary and preference shares.
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| Net Asset Value per share (in EUR) | 30.06.2016 | 31.12.2015 |
|---|---|---|
| Revalued Net Asset Value per share in fair value1 after dividend distribution for the 2015 financial year |
85.18 | 83.39 |
| Net Asset Value per share in investment value2 after dividend distribution for the 2015 financial year |
89.01 | 86.97 |
| Diluted Net Asset Value per share (in EUR) | 30.06.2016 | 31.12.2015 | |
|---|---|---|---|
| Diluted Net Asset Value per share in fair value1 after dividend | |||
| distribution for financial year 2015 | 85.013 | 83.234 | |
| The diluted Net Asset Value per share in investment value2 after | |||
| dividend distribution for financial year 2015 | 88.83³ | 86.804 |
EPRA5 performance indicators
| (in EUR per share) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| EPRA earnings | 2.86 | 3.35 |
| EPRA diluted earnings | 2.846 | 3.357 |
| (in EUR per share) | 30.06.2016 | 31.12.2015 |
| EPRA Net Asset Value (NAV) | 94.618 | 93.349 |
| EPRA Adjusted Net Asset Value (NNNAV) | 90.968 | 90.939 |
| (in %) | 30.06.2016 | 31.12.2015 |
| EPRA Net Initial Yield (NIY) | 6.0 % | 6.0 % |
| EPRA 'topped-up' NIY | 6.0 % | 5.9 % |
| EPRA vacancy rate | 4.9 % | 5.2 % |
| EPRA cost ratio (direct vacancy costs included) | 24.7 % | 20.1 % |
| EPRA cost ratio (direct vacancy costs excluded) | 21.9 % | 17.7 % |
1 Fair value: after deduction of costs (primarily transaction costs) from the value of the investment properties.
2 Investment value: before deduction of transaction costs.
3 In accordance with applicable IAS/IFRS standards, the Mandatory Convertible Bonds (MCB) issued in 2011 and the convertible bonds issued in 2013 were not taken into account in calculating the diluted revalued net asset value per share at 30.06.2016 because they would have had an accretive effect.
4 In accordance with applicable IAS/IFRS standards, the MCB's issued in 2011 and the convertible bonds issued in 2011 and 2013 were not taken into account in calculating the diluted revalued net asset value per share at 31.12.2015 because they would have had an accretive effect.
5 European Public Real Estate Association. Data not required by RREC legislation and not subject to audit by the regulator. The Auditor has verified that the 'EPRA (diluted) earnings' and 'EPRA (NN)NAV' ratios were calculated in accordance with the definitions of the 'EPRA Best Practices Recommendations' and that the financial data used to calculate the ratios match the accounting data provided in the audited consolidated financial statements.
6 In accordance with 'EPRA Best Practice Recommendations', given that the MCB's issued in 2011 were 'out-of-the-money' at 30.06.2016, they were not taken into account for the EPRA diluted earnings calculation on that date.
7 In accordance with 'EPRA Best Practice Recommendations', given that the MCB's issued in 2011 and the convertible bonds issued in 2011 and 2013 were 'out-of-the-money' at 30.06.2015, they were not taken into account for the EPRA diluted earnings calculation on that date.
8 In accordance with 'EPRA Best Practice Recommendations', given that the MCB's issued in 2011 were 'out-of-the-money' at 30.06.2016, they were not taken into account for the EPRA NAV or the EPRA NNNAV calculation on that date.
9 In accordance with 'EPRA Best Practice Recommendations', given that the MCB's issued in 2011 and the convertible bonds issued in 2011 and 2013 were 'out-of-the-money' at 31.12.2015, they were not taken into account for the EPRA NAV or the EPRA NNNAV calculation on that date.
PRESS RELEASE
1.3. Evolution of the portfolio
Healthcare real estate:
- Investments made during the first half-year of 2016: 44.3 million EUR
- Healthcare real estate portfolio at 30.06.2016: 1,419.3 million EUR
Main transactions:
- Acquisition of a rehabilitation clinic in Bonn (Germany)
On 01.03.2016, the Cofinimmo Group became the owner of the Kaiser Karl rehabilitation clinic in Bonn after all conditions precedent of the agreement signed in December 2015 with the seller were met. The 15,500 m² facility built in 1996 and expanded in 2013 specialises primarily in orthopaedics. It has 150 beds, a swimming pool, spas, a restaurant and underground parking spaces.
The Cofinimmo Group purchased the asset for 30.0 million EUR1 and leases it to a subsidiary of the German operating group Eifelhöhen-Klinik AG under a 'double net' lease for 25 years. The rent will be indexed every three years, upwards only. The initial gross rental yield is 7.32 %.
- Acquisition of a healthcare centre for the elderly under construction in Bavel (the Netherlands)
On 12.05.2016, the Cofinimmo Group purchased a care centre for elderly people with dementia, currently under construction, at Bavel. The project is one of five development projects for which Cofinimmo signed an agreement with Green Real Estate in December 20142 .
The acquisition price for the land and the construction budget total 3.4 million EUR. The future facility will provide 22 rooms on 2,140 m² and will be operated by the Dutch operator Martha Flora. On completion of the work, expected in early 2017, Cofinimmo will sign a 'double net' lease for 20 years with Martha Flora. The rent will be indexed annually based on the consumer price index. The expected initial gross rental yield is 7.9 %.
- Signature of an agreement for the renovation and extension of three healthcare assets in Belgium and France
During the first half-year of 2016, Cofinimmo signed agreements for renovation and extension work on two nursing and care homes in Belgium and a rehabilitation clinic (called 'clinique de Soins de Suite et de Réadaptation – SSR') in France for a total amount of 16.0 million EUR.
When work is completed, Cofinimmo will sign long-term leases with the operators of the facilities. There will be two 'triple net' leases of 20 and 27 years, respectively, in Belgium and a 12-year 'double net' lease in France. Rents will be indexed annually. The initial gross rental yield is between 6.25 % and 6.5 %.
1 Acquisition fees (registration rights, etc.) of 2.5 million EUR included.
2 See our press release of 17.12.2014, available on our website.
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| Building | Operator | Type of work | Number of (additional) beds |
(Additional) area |
(Estimated) work completion |
|---|---|---|---|---|---|
| Belgium | |||||
| De Nootelaer - Keerbergen |
Senior Living Group |
Renovation and extension |
+ 2 | + 500 m² | Q1 2018 |
| Zonnewende - Aartselaar |
Senior Living Group |
Renovation and extension |
+ 13 service flats |
+ 3,500 m² | Q2 2018 |
| France | |||||
| Domaine de Vontes – Esvres-sur-Indre |
Inicéa | Renovation and extension |
+ 60 | + 2,214 m² | Q4 2018 |
- Completion of extension work of the Millegem nursing and care home in Ranst (Belgium)
The extension works on the Millegem nursing and care home in Ranst were accepted in May 2016. The total budget for the work was 2.7 million EUR. The facility now has an additional 29 beds on a newly built area of 1,440 m². The extension is covered by a 'triple net' lease for a period of 27 years signed by Cofinimmo and the operator Armonéa. The initial gross rental yield is between 6.0 % and 6.5 %.
Kaiser Karl rehabilitation clinic – Bonn (DE) De Nootelaer nursing home – Keerbergen (BE)
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Offices:
- Renegotiations and new leases signed during the first half-year of 2016: 11,500 m²
- Investments made during the first half-year of 2016: 40.1 million EUR
- Office real estate portfolio at 30.06.2016: 1,245.7 million EUR
Main transactions:
- Conditional sale of the Souverain/Vorst 25 office building (Decentralised Brussels)
On 21.04.2016, Cofinimmo signed an agreement with a foreign state for the sale of the Souverain/Vorst 25 office building located at 1170 Watermael-Boitsfort. The sale will be completed when the permits and authorisations required for the redevelopment of the site have been granted by the competent authorities and, at the earliest, on 02.08.2017, the date on which the lease contract of the current tenant (AXA Group) expires.
Cofinimmo will retain ownership of the neighbouring Souverain/Vorst 23 building and intends to convert this part of the complex to residential flats. The Tenreuken plot of land next to the AXA site will also be used for housing. The permit application is in progress.
- Acquisition of the Arts/Kunst 46 office building (Brussels CBD)
On 26.05.2016, Cofinimmo purchased the office building located at the corner of Avenue des Arts/Kunstlaan and Rue Belliard/Belliardstraat, at the heart of the European District in Brussels, and adjacent to the building at n° 47-49 Avenue des Arts/Kunstlaan, which it already owns. The building has 11,516 m² of office space, 921 m² of archive space and 128 underground parking spaces. It is currently 83 % occupied by several tenants. The Arts/Kunst 47-49 building, which has 6,915 m² of rental space, is fully occupied.
The property was acquired for 31 million EUR, an amount in line with the investment value assigned to it by the independent real estate expert. Its initial gross rental yield is 6.2 % and could increase to 7.5 % if fully occupied.
- Completion of marketing for the Guimard 10-12 office building (Brussels CBD)
In early 2016, Cofinimmo signed a lease for the balance of unoccupied space (10 %) in the Guimard 10- 12 office building (Brussels CBD). The building is now 100 % occupied.
As a reminder, following the departure of the European Commission in the fall of 2014, the building underwent significant renovation work, including the addition of a new two-story entrance hall, renewal of the inside facilities, complete insulation of the walls and roof and the upgrade of the technical equipment to current standards. The budget for the work was 14.8 million EUR and it was finalised during the third quarter of 2015.
- Overall, new leases were signed and existing leases renegotiated for 11,500 m² of office space during the first half-year of 2016. The main transactions involved The Gradient (formerly Tervuren 270-272), Garden Square, Cockx 8-10 (Omega Court) and Guimard 10-12 buildings.
- Completion of renovation work for the Souverain/Vorst 24 office building (Decentralised Brussels)
Cofinimmo finalised the renovation work on the Souverain/Vorst 24 office building during the first half-year of 2016. This included replacement of the technical equipment, renovation of common areas (entrance hall, kitchenettes, bathrooms), creation of a meeting area with mezzanine, renovation and upgrade of the office space layout on the upper floors with the implementation of a loft concept for
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PRESS RELEASE
some, upgrading of the areas around the building, notably to facilitate access by people with reduced mobility. The total budget for the work was 1.9 million EUR. The space is currently being marketed.
Arts/Kunst 46 office building – Brussels (BE) Souverain/Vorst 24 office building – Brussels (BE)
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Property of distribution networks:
- Investments made during the first half-year of 2016: 0.4 million EUR
- Divestments made during the first half-year of 2016: 3.1 million EUR
- Property of distribution networks portfolio at 30.06.2016: 542.2 million EUR
Main transactions:
Sale of 13 cafés/restaurants from the Pubstone portfolio
During the first half of 2016, the Cofinimmo Group sold 13 cafés/restaurants from the Pubstone portfolio for a total of 3.1 million EUR. An average gain of 51.4 % was realised on the sales, compared to the investment value of the assets on 31.12.2015.
As a reminder, the lease between the Cofinimmo Group and AB InBev for the Pubstone portfolio includes the right for the tenant to leave up to 1.75 % of the cafés/restaurants in the portfolio annually starting from the seventh year of the lease (that is, starting in November 2013). The brewing group has terminated 41 café/restaurant leases since the end of 2013. Of these 41 cafés/restaurants, 31 have already been sold.
Since the acquisition of the Pubstone portfolio at the end of 2007, 56 of the 1,068 cafés/restaurants have been sold. The average gain on these sales was 28.9 % compared to the last investment value of the assets determined by the independent real estate expert.
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1.4. Financial resources management
1.4.1. Financing
Main transactions during the first half-year of 2016:
- Issue of 20 million EUR in commercial papers, in two placements:
- One placement of 10 million EUR for 10.5 years at a fixed rate of 2.15 %;
- A second placement of 10 million EUR for 10 years with a floating rate of Euribor 3 months + 148 bps.
- Renewal of a 100 million EUR credit line for seven years.
- Conclusion of two call options to cover a potential exchange risk in a real estate transaction.
- Repurchase in the market of 152,630 convertible bonds maturing in June 2018. The repurchased bonds are deducted from the debt.
1.4.2. Debt
Debt structure
At 30.06.2016, Cofinimmo Group's consolidated financial debt was 1,406.2 million EUR. It consisted of:
− 379.4 million EUR in three non-convertible bonds:
| Issuing company | Nominal amount (in million EUR) |
Issue price | Coupon | Issue date | Maturity date |
|---|---|---|---|---|---|
| Cofinimmo SA/NV | 140.0 | 100 % | 3.598 % | 26.07.2012 | 07.02.2020 |
| Cofinimmo SA/NV | 50.0 | 100 % | 2.78 % | 23.10.2013 | 23.10.2017 |
| Cofinimmo SA/NV | 190.0 | 100 % | 1.929 % | 25.03.2015 | 25.03.2022 |
− 197.3 million EUR in bonds convertible into Cofinimmo shares:
| Issuing company | Nominal amount (in million EUR) |
Issue price | Conversion price |
Coupon | Issue date | Maturity date |
|---|---|---|---|---|---|---|
| Cofinimmo SA/NV | 174.3 | 100 % | 97.905 EUR | 2.00 % | 20.06.2013 | 20.06.2018 |
These convertible bonds are valued at market value on the balance sheet.
PRESS RELEASE
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- − 336.5 million EUR in commercial papers, of which 290.5 million EUR with an initial duration of less than one year and 46.0 million EUR with an initial duration greater than three years;
- − 483.0 million EUR in medium- and long-term bilateral and syndicated bank loans with an initial duration of five to ten years, contracted with ten banks;
- − 3.4 million EUR corresponding to the discounted value of the minimum coupon of the Mandatory Convertible Bonds issued by Cofinimur I in December 2011;
- − 6.6 million EUR in other loans and advances (primarily account debits and rental guarantees received).
At 30.06.2016, Cofinimmo's consolidated current financial debts amounted to 312.0 million EUR, of which:
- − 290.5 million EUR in commercial papers of less than one year;
- − 21.0 million EUR for drawdowns on credit lines;
- − 0.5 million EUR in other loans (primarily account debits).
The total current financial debt of 312.0 million EUR is fully covered by the undrawn position of long-term confirmed credit lines totalling 930.0 million EUR at 30.06.2016.
Repayment schedule of long-term financial commitments1 (in million EUR)
1 The schedule includes the capital of financial commitments and excludes interest payments (generally on a monthly or quarterly basis).
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The maturities of the long-term financial commitments are spread over the period ending in 2022. Debt maturing in 2016, 2017 and 2018 is entirely refinanced as is 60 % of that maturing in 2019.
Debt maturity
The average maturity of Cofinimmo's debt (excluding short-term maturities for commercial papers which are entirely covered by tranches available under long-term credit lines) decreased from 5.3 years at 31.12.2015 to 4.6 years at 30.06.2016.
Cost of debt
The average cost of Cofinimmo's debt, including bank margins, was 2.7 % for the first half-year of 2016, compared to 2.9 % in 2015.
Consolidated debt ratios
Cofinimmo met all financial debt ratio limits at 30.06.2016. Cofinimmo's regulatory debt ratio1 was 42.1 % (compared to 38.6 % at 31.12.2015). Note that the legal limit for RRECs is 65 %.
The Loan-to-Value financial debt ratio2 was 40.9 % at 30.06.2015.
When Cofinimmo's credit agreements refer to a debt limit, they mean the regulatory ratio and cap it at 60 %.
1 Legal ratio calculated according to RREC legislation: Financial and other debts/Total assets.
2 Ratio defined as: Net financial debts/Fair value of assets and finance lease receivables.
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1.4.3. Interest rate hedging
Interest rate risk hedging for future years (in million EUR)
At a constant debt ratio, the interest rate risk is covered at over 75 % through mid-2020.
1.4.4. Financial rating
The S&P rating agency confirmed Cofinimmo's rating at the end of March 2016: BBB for the long term (stable outlook) and A-2 for the short term. The liquidity of the Group was rated as strong, based on the significant availabilities on credit lines.
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1.5. Commercial results
1.5.1. Occupancy rate (calculated based on rental revenues)
Calculated based on actual rents and, for vacant space, on the rental values estimated by independent real estate experts.
1.5.2. Main tenants
| Tenants | Contractual rents | Average residual lease length (in years) |
|---|---|---|
| Korian - Medica | 15.5 % | 11.8 |
| AB InBev | 13.7 % | 14.3 |
| Armonea | 10.9 % | 20.5 |
| Belgian public sector | 6.1 % | 11.6 |
| AXA Group | 5.4 % | 1.1 |
| Top 5 tenants | 51.6 % | 13.2 |
| ORPEA | 4.2 % | 10.0 |
| International public sector | 3.7 % | 4.8 |
| MAAF | 3.6 % | 5.8 |
| Aspria | 3.1 % | 21.9 |
| IBM Belgium | 2.0 % | 1.9 |
| Top 10 tenants | 68.2 % | 12.2 |
| Top 20 tenants | 77.3 % | 11.6 |
| Other tenants | 22.7 % | 5.3 |
| TOTAL | 100 % | 10.2 |
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1.5.3. Average residual lease length
In years, until the date of the tenant's first break option:
If no break option is exercised, that is, if all tenants keep their current space until the contractual end of the leases, the average residual lease length would be 11.1 years.
1.5.4. Portfolio maturity
| Leases > 9 years | 47.4 % |
|---|---|
| Healthcare real estate | 28.4 % |
| Offices (public sector) | 4.0 % |
| Offices (private sector) | 0.5 % |
| Property of distribution networks - Pubstone | 13.7 % |
| Other | 0.8 % |
| Leases 6-9 years | 8.0 % |
| Healthcare real estate | 2.8 % |
| Offices | 3.1 % |
| Property of distribution networks - Cofinimur I | 2.1 % |
| Leases < 6 years | 44.6 % |
| Healthcare real estate | 9.3 % |
| Offices | 33.8 % |
| Property of distribution networks - Cofinimur I | 1.5 % |
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1.5.5. Change in gross rental revenues on a like-for-like basis
| Gross rental revenues at 30.06.2016 (in thousand EUR) |
Gross rental revenues at 30.06.2015 (in thousand EUR) |
Change | Like-for-like change |
|
|---|---|---|---|---|
| Healthcare real estate BE | 24,199 | 26,669 | -9.3 % | +1.3 % |
| Healthcare real estate DE | 3,153 | 690 | +357.0 % | +0.9 % |
| Healthcare real estate FR | 12,622 | 12,446 | +1.4 % | +0.0 % |
| Healthcare real estate NL | 3,549 | 3,131 | +13.4 % | +0.7 % |
| Offices | 38,293 | 38,669 | -1.0 % | +0.2 % |
| Property of distribution networks | 18,824 | 18,870 | -0.2 % | +0.1 % |
| Other | 1,030 | 1,018 | +1.2 % | +1.2 % |
| TOTAL PORTFOLIO | 101,670 | 101,493 | +0.2 % | +0.5 % |
On a like-for-like basis, the level of rents increased by 0.5 % over the past 12 months: the negative impact of departures (-1.8 %) and renegotiations (-0.3 %) was compensated by the positive effect of lease indexation (+1.1 %) and new leases (+1.5 %).
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1.6. Real estate assets
| CHANGES IN THE OVERALL PORTFOLIO Excerpt from the report of independent real estate experts Cushman & Wakefield, Jones Lang LaSalle and PricewaterhouseCoopers based on investment value |
||
|---|---|---|
| (in million EUR) | 30.06.2016 | 31.12.2015 |
| Investment value of the entire portfolio | 3,367.8 | 3,262.3 |
| Projects and land reserve | -74.1 | -63.1 |
| Total properties under management | 3,293.7 | 3,199.2 |
| Contractual rents | 217.4 | 210.1 |
| Gross yield on properties under management | 6.6 % | 6.6 % |
| Contractual rents + Estimated rental value of vacant buildings on the valuation date |
229.1 | 221.4 |
| Gross yield at 100 % occupancy | 7.0 % | 6.9 % |
| Occupancy rate of properties under management1 | 94.9 % | 94.9 % |
At 30.06.2016, the 'Projects and land reserve' item primarily included the Belliard 40 office building and healthcare real estate construction and extension projects, the most important of which are in Brussels (Woluwe 106-108), Heerlen (the Netherlands), Breda (the Netherlands) and Néville (France).
| Buildings | Area in superstructure (in m²) |
Contractual rents (in thousand EUR) |
Occupancy rate |
Rents + ERV for vacant space (in thousand EUR) |
Estimated Rental Value (ERV) (in thousand EUR) |
|---|---|---|---|---|---|
| Offices | 508,914 | 77,958 | 88.2 % | 88,374 | 84,085 |
| Offices of which receivables were sold |
102,725 | 12,124 | 99.9 % | 12,133 | 12,341 |
| Sub-total offices | 611,639 | 90,082 | 89.6 % | 100,507 | 96,426 |
| Healthcare real estate | 684,146 | 87,911 | 99.2 % | 88,632 | 90,307 |
| Pubstone | 353,698 | 29,801 | 98.9 % | 30,132 | 27,558 |
| Cofinimur I | 59,752 | 7,780 | 97.3 % | 7,995 | 8,309 |
| Other | 15,830 | 1,836 | 100.0 % | 1,836 | 1,636 |
| Sub-total of investment properties & properties of which receivables were sold |
1,725,065 | 217,410 | 94.9 % | 229,102 | 224,236 |
| Projects & renovations | 28,637 | ||||
| Land reserve | 152 | 152 | 177 | ||
| OVERALL PORTFOLIO TOTAL |
1,753,702 | 217,562 | 94.9 % | 229,254 | 224,413 |
1 Calculated based on rental income.
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| Fair value | Property result after direct expenses |
|||||
|---|---|---|---|---|---|---|
| Segment | (in thousand EUR) |
(in %) | Change over the period1 |
(in thousand EUR) |
(in %) | |
| Healthcare real estate | 1,419,313 | 43.9 % | +2.7 % | 42,673 | 44.9 % | |
| Belgium | 801,962 | 24.8 % | +2.0 % | 23,653 | 24.9 % | |
| France | 395,489 | 12.2 % | +3.0 % | 12,624 | 13.3 % | |
| Germany | 100,280 | 3.1 % | +3.5 % | 3,107 | 3.3 % | |
| The Netherlands | 121,582 | 3.8 % | +5.2 % | 3,289 | 3.4 % | |
| Offices | 1,245,714 | 38.5 % | -2.4 % | 33,560 | 35.3 % | |
| Brussels Léopold/Louise Districts |
319,547 | 9.9 % | +1.9 % | 4,536 | 4.8 % | |
| Brussels Centre/North | 106,158 | 3.3 % | -10.5 % | 2,352 | 2.5 % | |
| Brussels Decentralised | 501,118 | 15.5 % | -4.4 % | 17,093 | 18.0 % | |
| Brussels Periphery & Satellites |
137,198 | 4.2 % | -1.4 % | 3,275 | 3.4 % | |
| Antwerp | 66,305 | 2.0 % | +0.3 % | 2,440 | 2.6 % | |
| Other regions | 115,388 | 3.6 % | +0.0 % | 3,864 | 4.0 % | |
| Property of distribution networks |
542,227 | 16.8 % | +1.1 % | 18,150 | 19.1 % | |
| Pubstone - Belgium | 277,575 | 8.6 % | +1.8 % | 9,704 | 10.2 % | |
| Pubstone - The Netherlands |
144,731 | 4.5 % | -1.4 % | 4,627 | 4.9 % | |
| Cofinimur I - France | 119,921 | 3.7 % | +2.6 % | 3,819 | 4.0 % | |
| Other | 27,194 | 0.8 % | +1.5 % | 727 | 0.7 % | |
| TOTAL PORTFOLIO | 3,234,448 | 100 % | +0.4 % | 95,110 | 100 % |
| Yield per segment | Healthcare real estate BE + FR |
Healthcare real estate DE + NL |
Offices | Pubstone | Cofinimur I | Other | Total |
|---|---|---|---|---|---|---|---|
| Gross rental yield at 100 % occupancy |
6.1 % | 6.8 % | 8.1 % | 6.5 % | 6.3 % | 7.0 % | 7.0 % |
| Net rental yield at 100 % occupancy |
6.0 % | 6.5 % | 6.6 % | 6.3 % | 6.1 % | 6.4 % | 6.3 % |
1 On a like-for-like basis.
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1.7. 2016-2018 investment programme
The Cofinimmo investment programme for the 01.07.2016 – 31.12.2018 period is 307.7 million EUR, of which:
- 116.7 million EUR in the healthcare real estate segment;
- 179.1 million EUR in the office segment;
- 11.9 million EUR in the property of distribution networks segment;
In million EUR:
This pipeline includes the purchasing price of the Calau nursing home in Brandenburg (DE). The main projects for the 01.07.2016 – 31.12.2018 period are presented in the two tables below.
Healthcare real estate:
All healthcare facilities to be built/extended/renovated are pre-let.
| Building | Operator | Type of work | Number of (additional) beds |
(Additional) area |
(Estimated) work completion |
|---|---|---|---|---|---|
| Belgium | |||||
| Woluwe 106-108 - Brussels |
Vivalto | Reconversion of an office building into a nursing home |
151 | 8,422 m² | Q4 2017 |
| Pérou 80 – Brussels | Aspria | Construction of a sports and well being centre |
N/A | 15,188 m² | Q4 2018 |
| De Nootelaer - Keerbergen |
Senior Living Group |
Renovation and extension |
+ 2 | + 500 m² | Q1 2018 |
| Zonnewende - Aartselaar |
Senior Living Group |
Renovation and extension |
+ 13 service flats |
+ 3,500 m² | Q2 2018 |
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| Building | Operator | Type of work | Number of (additional) beds |
(Additional) area |
(Estimated) work completion |
|---|---|---|---|---|---|
| France | |||||
| Caux du Littoral - Néville |
Handra | Renovation and extension |
+ 24 | + 1,939 m² | Q3 2016 |
| Les Lubérons – Le Puy Sainte Réparade |
Korian-Medica | Renovation and extension |
+ 25 | + 1,400 m² | Q3 2016 |
| William Harvey – Saint Martin d'Aubigny |
Korian-Medica | Renovation and extension |
+ 10 | + 670 m² | Q3 2016 |
| Domaine de Vontes – Esvres-sur-Indre |
Inicéa | Renovation and extension |
+ 60 | + 2,214 m² | Q4 2018 |
| The Netherlands | |||||
| Alphen aan den Rijn | Philadelphia | New construction | 24 | 1,976 m² | Q3 2016 |
| Parking Amphia - Breda |
Amphia | New construction | N/A | 24,610 m² | Q3 2016 |
| Bavel | Martha Flora | New construction | 22 | 2,198 m² | Q1 2017 |
| Plataan - Heerlen | Sevagram | Renovation | 133 | 14,700 m² | Q2 2017 |
Offices:
| Building | Type of work | Area | (Estimated) work completion |
|---|---|---|---|
| The Gradient | Renovation of the entrance hall and | 550 m² | Q3 2016 |
| (formerly Tervuren 270-272) | parking lots | ||
| The Gradient | Creation of a co-working area | 1,050 m² | Q1 2017 |
| (formerly Tervuren 270-272) | |||
| The Gradient | Renovation of floor +4 | 2,900 m² | Q1 2017 |
| (formerly Tervuren 270-272) | |||
| Belliard 40 | Demolition and reconstruction of offices | 20,000 m² | Q4 2017 |
| Arts/Kunst 19H | Demolition and reconstruction of offices | 8,600 m² | Q1 2019 |
| Bourget 40 | Medium-scale renovation | 14,250 m² | Q2 2019 |
| Tenreuken | Construction of apartments | 11,800 m² | Q2 2019 |
| Souverain/Vorst 23 | Conversion into residential units | 23,000 m² | Q4 2020 |
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1.8. Information on shares and bonds
1.8.1. Share performance
Ordinary share (COFB)
| 30.06.2016 | 31.12.2015 | 31.12.2014 | |
|---|---|---|---|
| Market price (over 6/12 months, in EUR) | |||
| Highest | 111.3 | 110.8 | 97.8 |
| Lowest | 92.1 | 90.2 | 84.7 |
| At close | 105.8 | 98.4 | 96.0 |
| Average | 103.9 | 99.5 | 89.8 |
| Dividend yield1 | 5.3 % | 5.5 % | 6.7 % |
| Gross return2 (over 6/12 months) |
11.0 % | 11.2 % | 14.3 % |
| Volume (over 6/12 months, in number of shares) | |||
| Average daily volume | 56,927 | 46,900 | 33,883 |
| Total volume | 7,286,671 | 12,006,493 | 8,844,025 |
| Number of outstanding ordinary shares at close3 | 20,298,502 | 20,294,264 | 17,339,423 |
| Market capitalisation at close (in thousand EUR) | 2,146,567 | 1,997,159 | 1,664,064 |
| Free float zone4 | 90 % | 90 % | 90 % |
Preference shares (COFP1 & COFP2)
| COFP1 | COFP1 | COFP2 | COFP2 | |
|---|---|---|---|---|
| 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | |
| Market price (over 6/12 months, in EUR) | ||||
| At close | 126.4 | 126.4 | 84.0 | 99.0 |
| Average | 126.4 | 115.9 | 95.8 | 96.8 |
| Dividend yield1 | 5.0 % | 5.5 % | 6.6 % | 6.6 % |
| Gross return2 (over 6/12 months) |
5.0 % | 38.6 % | -8.5 % | 15.6 % |
| Volume (over 6/12 months, in number of | ||||
| shares) | ||||
| Average daily volume5 | 0 | 16 | 3 | 361 |
| Total volume | 0 | 16 | 3 | 11,546 |
| Number of shares | 395,048 | 395,048 | 290,699 | 290,800 |
| Market capitalisation at close (in thousand EUR) |
49,934 | 49,934 | 24,419 | 28,789 |
1 Gross dividend on the average share price.
2 Increase in the share price + dividend yield.
3 Excluding own ordinary shares.
4 According to the Euronext method.
5 Average calculated based on the number of market days on which volume was recorded.
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Bonds
| Cofinimmo SA/NV 140 million EUR – 2012-2020 ISIN BE6241505401 |
||
|---|---|---|
| 30.06.2016 | 31.12.2015 | |
| Market price (over 6/12 months, as a % of nominal) | ||
| At close | 104.6 | 105.9 |
| Average | 104.9 | 106.5 |
| Average yield to maturity (annual average) | 2.2 % | 2.0 % |
| Effective yield at issue | 3.6 % | 3.6 % |
| Interest coupon (in %) | ||
| Gross (per 100,000 EUR) | 3.6 | 3.6 |
| Net (per 100,000 EUR) | 2.6 | 2.6 |
| Number of securities | 1,400 | 1,400 |
| Cofinimmo SA/NV 50 million EUR – 2013-2017 ISIN BE6258604675 |
||
|---|---|---|
| 30.06.2016 | 31.12.2015 | |
| Market price (over 6/12 months, as a % of nominal) | ||
| At close | 102.1 | 102.4 |
| Average | 102.3 | 102.4 |
| Average yield to maturity (annual average) | 1.1 % 1.4 % |
|
| Effective yield at issue | 2.8 % | 2.8 % |
| Interest coupon (in %) | ||
| Gross (per 100,000 EUR) | 2.8 | 2.8 |
| Net (per 100,000 EUR) | 2.0 | 2.0 |
| Number of securities | 500 | 500 |
| Cofinimmo SA/NV 190 million EUR – 2015-2022 ISIN BE0002224906 |
||
|---|---|---|
| 30.06.2016 | 31.12.2015 | |
| Market price (over 6/12 months, as a % of nominal) | ||
| At close | 103.2 | 99.9 |
| Average | 101.8 | 100.1 |
| Average yield to maturity (annual average) | 1.3 % | 1.9 % |
| Effective yield at issue | 1.9 % | 1.9 % |
| Interest coupon (in %) | ||
| Gross (per 100,000 EUR) | 1.9 | 1.9 |
| Net (per 100,000 EUR) | 1.4 | 1.4 |
| Number of securities | 1,900 | 1,900 |
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Convertible bonds
| Cofinimmo SA/NV 190.8 million EUR – 2013-2018 ISIN BE6254178062 |
||
|---|---|---|
| 30.06.2016 | 31.12.2015 | |
| Market price (over 6/12 months, in EUR) | ||
| At close | 122.4 | 102.6 |
| Average | 122.3 | 120.8 |
| Average yield to maturity (annual average) | -4.4 % -2.6 % |
|
| Effective yield at issue | 2.0 % | 2.0 % |
| Interest coupon (in %) | ||
| Gross | 2.0 | 2.0 |
| Net | 1.5 | 1.5 |
| Number of shares | 1,611,638 1,764,268 |
|
| Conversion price (in EUR) | 97.9 | 100.4 |
The convertible shares which matured at 28.04.2016 have been reimbursed at their nominal value.
1.8.2. 2016 financial year dividend
Barring any unexpected events, the dividend forecast for the 2016 financial year published in the 2015 Annual Financial Report remains unchanged. It is 5.50 EUR gross (4.015 EUR net) per ordinary share and 6.37 EUR gross (4.6501 EUR net) per preference share.
1.8.3. Conversion of preference shares
In accordance with Article 8.2 of the Articles of Association, two new conversion windows for Cofinimmo preference shares into Cofinimmo ordinary shares were opened during the first half-year of 2016. Requests to convert 101 preference shares were received during these windows. As a result, since the beginning of the conversion procedure (01.05.2009), a total of 814,019 preference shares have been converted into ordinary shares. There are still 685,747 outstanding preference shares.
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1.8.4. Shareholding at 30.06.2016
On 11.05.2016, Cofinimmo was notified by the Crédit Agricole Group that it holds over 5 % of the Group's capital.
| Company | Ordinary shares |
Preference shares |
Total number of shares (voting rights) |
% |
|---|---|---|---|---|
| Crédit Agricole Group | 1,058,265 | 0 | 1,058,265 | 5.03 % |
| Cofinimmo Group | 46,499 | 0 | 46,499 | 0.22 % |
| Total number of shares issued | 20,345,001 | 685,747 | 21,030,748 | 100 % |
1.8.5. Shareholder calendar
| Event | Date |
|---|---|
| Interim report: results at 30.09.2016 | 10.11.2016 |
| Annual press release: results at 31.12.2016 | 09.02.2017 |
| Publication of the 2016 Annual Financial Report | 07.04.2017 |
| Publication of the 2016 Sustainability Report | 07.04.2017 |
| Interim report: results at 31.03.2017 | 27.04.2017 |
| 2016 Ordinary General Meeting of Shareholders | 10.05.2017 |
| Half-year financial report: results at 30.06.2017 | 27.07.2017 |
| Interim report: results at 30.09.2017 | 09.11.2017 |
| Annual press release: results at 31.12.2017 | 09.02.2018 |
1.9. Corporate Governance
Cofinimmo applies the strictest corporate governance standards and constantly compares its methods to the principles, practices and requirements of the field. Cofinimmo's corporate governance is fully compliant with the Belgian Code governing the matter1 . A detailed description of the various Committees, their roles and their respective members is included in the chapter entitled 'Corporate Governance Statement' of the 2015 Annual Financial Report.
PRESS RELEASE
The Extraordinary General Meeting of 06.01.2016 granted the Board of Directors with a new authorisation, valid for five years as of the publication of the minutes of the Extraordinary General Meeting in the Belgian Official Gazette on 03.02.2016, to increase the share capital, in one or more times, up to a total maximum amount of:
- a) 1,100,000,000 EUR if the capital increase is a capital increase by subscription in cash with the option for shareholders of the company to exercise their preferential subscription right;
- b) 220,000,000 EUR for all other types of capital increases not covered in point a) above
it being agreed that, in any event, the capital can never be increased as part of the authorised capital in excess of 1,100,000,000 EUR total during the five-year period beginning on the date of publication of the decision.
The Ordinary General Meeting of 11.05.2016 (re)appointed, with immediate effect, subject to the condition precedent of approval by the FSMA, the persons listed below as members of the Board of Directors of Cofinimmo.
| Name | Type of mandate | Decision by the Ordinary General Meeting of Shareholders |
(New) Date mandate expires |
|---|---|---|---|
| Carbonnelle, Jean-Edouard | Managing Director | Mandate renewal | 09.05.2018 |
| Chapelle, Olivier | Independent Director, as meant in Article 526ter of the Company Code |
New mandate | 13.05.2020 |
| de Walque, Xavier | Independent Director, as meant in Article 526ter of the Company Code |
Mandate renewal | 13.05.2020 |
| Demain, Christophe | Director representing the shareholder Belfius Insurance |
Mandate renewal | 10.05.2017 |
| Gauchot, Maurice | Independent Director, as meant in Article 526ter of the Company Code |
New mandate | 13.05.2020 |
| Monissen, Diana | Independent Director, as meant in Article 526ter of the Company Code |
New mandate | 13.05.2020 |
1 Also refer to our Corporate Governance Charter available on our Internet site.
1.10. Sustainable development and management policy
1.10.1. Publications
Cofinimmo published its Sustainability Report separate from the Annual Financial Report for the second time on 08.04.2016. It obtained outside certification of the conformity of the report with the guidelines of the GRI G41 , 'Core' level.
Cofinimmo concurrently published data about its electricity and gas consumption on its website for the near-totality of its office portfolio and nearly half of its healthcare real estate portfolio as well as information about the water consumption and waste production, all in line with the performance indicators recommended by EPRA2 .
1.10.2. Certification and environmental labels
The external audit of the operational application of the management system did not result in any comments. This led to an extension of the ISO 14001:2004 certification.
Cofinimmo obtained a final BREEAM 2010 International certificate on 03.05.2016: Bespoke (fully fitted) with a 'Good' rating for the Leuze-en-Hainaut prison. To date, this prison is the only one in Belgium to have been awarded the BREEAM Final certificate.
1.10.3. Mobility
Cofinimmo tries to contribute to better mobility in the vicinity of its registered office since June 2016 by providing its employees with a shared electric car, scooter and electrical bicycles for their travel during and outside of working hours. The company hopes that this will further motivate employees to use alternative methods of transportation and help to reduce the average CO2 emissions of its vehicle fleet.
The 'Parkbrug' was installed in Antwerp on 11.06.2016. The new walkway for pedestrians and cyclists designed by Ney & Partners has an unusual and remarkable shape. The steel construction weighs 170 tons and is 67 m long. On one side, it rests on the London Tower, a building in the Cofinimmo portfolio, and links 'het Eilandje' with 'Park Spoor Noord'. The company is very proud to have contributed to sustainable mobility in the city of Antwerp.
1 Global Reporting Initiative sustainability reporting guidelines.
2 European Public Real Estate Association
1.10.4. Innovation
Flex Corner® and garden enhancement concepts were implemented at several of the buildings of the portfolio during the first half of 2016:
PRESS RELEASE
- Two Flex Corners® were installed in Cofinimmo office buildings: one on the ground floor of a building in the Paepsem Business Park at 1070 Brussels, and another one on the second floor of the The Gradient building (formerly Tervuren 270-272) at 1150 Brussels. A third Flex Corner® is being finalised at the Park Lane in Diegem. This solution provides office building tenants small private spaces and larger common spaces (meeting rooms, kitchenettes, spaces for relaxation), totaling 1,000 m², for which they pay rent and costs. With this innovative concept, Cofinimmo also offers more flexible lease lengths (compared to conventional tenants). The new concept is being marketed using a special website.
- Two new gardens were inaugurated in June 2016. The areas around the Park Hill and Paepsem Business Park sites now have larger parking areas and spaces for persons with reduced mobility, a food truck area and recreational areas.
1.10.5. Diversity and staff management
On 15.02.2016, Cofinimmo took part in the 'Ondernemersdag KULeuven' day organised to facilitate meetings between companies and third- and fourth-year university students for future hiring or internships.
Cofinimmo took part in the fifth edition of 'Career Nights' on 01.06.2016. The testimonial of one of its employees during the event enabled young job seekers to find out more about the Property Manager position and about the qualifications required for the job.
1.11. Risk management
Below are the main risks to which Cofinimmo is exposed in its business activities. For a more in-depth review of risk management, please refer to pages 2 to 11 of the 2015 Annual Financial Report.
Economic environment risks
Cofinimmo's business activities are partially dependent on the overall economic environment. A decrease in economic growth indirectly impacts the occupancy rate of offices by the private sector, as well as rents. It can also increase the risk of tenant default.
However, the impact on Cofinimmo's results is lessened by the length of its rental leases (at 30.06.2016, the average length to the first break option was 10.2 years for the portfolio overall), diversification of the tenant portfolio (406 clients) and the presence of nearly 23 % public sector tenants. In addition, thanks to diversification into less cyclical sectors such as healthcare real estate and sale-and-lease-back transactions with AB InBev et MAAF, the portfolio is now less exposed to the overall economic environment.
Vacancy risk
The Cofinimmo healthcare real estate portfolio is 99.2 % let on long-term leases, generally for an initial period of 12 years in France, 15 years in the Netherlands, 25 or 30 years in Germany and 27 years in Belgium. At 30.06.2016, the average residual lease length was 4.7 years in France, 13.4 years in the Netherlands, 19.6 years in Belgium and 26.6 years in Germany.
The Brussels office space market has been faced with a high vacancy rate since 2008, although it tends to decrease slowly. At 30.06.2016, the percentage of rental vacancies in Brussels reached 9.7 % (source: CBRE). The vacancy rate for the Cofinimmo office portfolio was 10.4 % at 30.06.2016. Cofinimmo manages its clientèle actively to limit vacancies and tenant rotation in the office space sector. An internal team is responsible for managing the buildings and for quickly addressing tenant complaints. The commercial team maintains regular contact with existing clients and actively prospects new tenants.
At 30.06.2016, 98.9 % of cafés/restaurants were leased to AB InBev with a minimum residual lease length of 14.3 years. In addition, 97.3 % of insurance services agencies were leased to MAAF or GMF with an average residual lease length of 5.8 years.
Tenant insolvency risk
Cofinimmo is exposed to the risk of tenant failure. At 30.06.2016, the top five most important clients accounted for 51.6 % of rental income. Two of the top three office space tenants are public sector entities.
An advance or bank guarantee in the amount of six months' rent is normally requested from non-public sector tenants.
Investment and development risk
Cofinimmo does limited development on its own behalf with a cap of 10 % maximum of the fair value of the portfolio.
PRESS RELEASE
When reviewing investment files, Cofinimmo makes estimates about economic, market and other conditions, including estimates about the value or potential value of a property and its potential return on investment. The estimates can turn out to be inaccurate which would make Cofinimmo's investment policy unsuitable, resulting in negative consequences for the company's revenue, its operational results, financial conditions and prospects.
Prior to acquiring a building, Cofinimmo carries out an internal assessment to determine a price for the building for long-term operation. In addition, an independent real estate expert values each property acquisition or sale.
Building deterioration and major works risk
Cofinimmo maintains and renovates its buildings on a regular basis to ensure that they remain attractive to tenants. The current trend in favour of increased sustainability and energy savings both in construction and the use of buildings may require additional investment.
Risk of changes in the fair value of buildings
The company's property portfolio is valued quarterly by independent real estate experts. A change in the value of the real estate assets of 1 % would have an estimated impact of 32.3 million EUR on the net result and of 1.53 EUR on the intrinsic value per share. It would also have an impact of about 0.4 % on the debt ratio.
Liquidity and financing risk
Diversification of financing sources, a stable and extensive banking pool with good financial ratings (Cofinimmo has eleven banking partners) and the balanced allocation of credit maturities over time ensure that the most favourable financial conditions can be obtained.
Cofinimmo is limited in its ability to borrow by the maximum debt ratio allowed by RREC legislation (65 %) and by the limit agreed with bankers in the credit documents related to the ratio (60 %). At 30.06.2016, the consolidated regulatory debt ratio was 42.1 %.
Cofinimmo has a medium-term financial plan which is completely revised in the spring of each year and updated during the year with each significant acquisition or sale of real estate assets. The purpose of the plan is to position Cofinimmo's regulatory consolidated debt ratio at an appropriate level based on an assessment by the Board of Directors of the risks inherent in the characteristics of the assets and of the portfolio of leases in effect.
Interest rate risk
PRESS RELEASE
Cofinimmo contracts a significant portion of its financial debt with a floating interest rate. It subscribes to derivative instruments as a hedge for financial and other charges against rate hikes. The instruments consist of Interest Rate Swaps in particular.
Based on existing hedging mechanisms and a constant level of debt, an increase or decrease in interest rates of 0.5 % would not result in a significant change in interest rate charges for the current year.
Derivative instruments on interest are valued at market price at the end of each quarter. Future changes in rates have an impact on the net asset value and result for the period.
Exchange risk
Cofinimmo has concluded a real estate transaction which generates an exchange rate risk. In order to cover the potential risk, Cofinimmo has concluded two call options which allow for the company to sell the currency at a fixed price. This covers the decrease risk and Cofinimmo can still benefit from a positive exchange rate evolution.
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1.12. Events after 30.06.2016
Acquisition of the Calau nursing and care home in Brandenburg (Germany)1
On 22.07.2016, the Cofinimmo Group acquired the Seniorenresidenz Calau nursing and care home in the Brandenburg region of Germany. It is a new complex of 4,600 m² with a total of 81 beds and 20 day care spots. The investment totalled 9.1 million EUR2 .
Cofinimmo is renting the facility to the German operating group M.E.D. Gesellschaft für Altenpflege mbH, under a 'double net' lease for a fixed 25-year period with an option to extend for five years. The rent will be indexed based on the German consumer price index. The initial gross rental yield of the transaction is 6.14 %.
No other major event occurred between 30.06.2016 and the date of publication of this press release.
1 Acquisition subject to administrative conditions precedent.
2 Acquisition fees (registration rights, etc.) included.
2. Summary financial statements
The summary financial statements were prepared using accounting methods which comply with IFRS standards, as adopted by the European Union, and with the IAS 34 standard on interim financial reporting in particular.
The accounting principles and methods used to prepare the summary interim financial statements are identical to those used for the 2015 annual financial statements, except for the recognition of interest rate derivatives.
As of 01.01.2016, all of the interest rate derivatives are qualified as trading instruments under the IFRS reference system. This implies that a change in their value is booked entirely in the income statement under the item IAS 39. Before, a change in the value of some instruments, more specifically the part which was considered efficient from a hedged future cash flow point of view, was differed in shareholders' equity until the date on which the instrument became active.
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2.1. Consolidated global result – Royal Decree of 13.07.2014 form
| A. NET RESULT (in thousand EUR) | Notes | Q2 2016 | Q2 2015 | 30.06.2016 30.06.2015 | |
|---|---|---|---|---|---|
| Rental income | 5 | 50,503 | 49,956 | 99,765 | 99,561 |
| Writeback of lease payments sold and discounted | 5 | 2,816 | 2,553 | 5,633 | 5,107 |
| Rental-related expenses | 5 | 47 | -2 | 31 | |
| Net rental income | 4; 5 | 53,324 | 52,556 | 105,396 | 104,699 |
| Recovery of property charges | 31 | 44 | -2 | ||
| Recovery income of charges and taxes normally payable by the tenant on let properties |
16,016 | 10,972 | 30,493 | 31,652 | |
| Costs payable by the tenant and borne by the landlord on rental damage and redecoration at end of lease |
-633 | -184 | -883 | -428 | |
| Charges and taxes normally payable by the tenant on let properties |
-16,096 | -12,197 | -33,089 | -34,723 | |
| Property result | 52,642 | 51,147 | 101,961 | 101,198 | |
| Technical costs | -2,313 | -863 | -3,494 | -1,518 | |
| Commercial costs | -212 | -218 | -465 | -399 | |
| Taxes and charges on unlet properties | -647 | -421 | -2,892 | -2,300 | |
| Property management costs | -5,181 | -3,225 | -10,409 | -6,921 | |
| Property charges | -8,353 | -4,727 | -17,260 | -11,138 | |
| Property operating result | 44,289 | 46,420 | 84,701 | 90,060 | |
| Corporate management costs | -1,683 | -1,814 | -4,868 | -3,787 | |
| Operating result before result on the portfolio | 42,606 | 44,606 | 79,833 | 86,273 | |
| Gains or losses on disposals of investment properties and other non-financial assets |
1,219 | 798 | 1,412 | 1,956 | |
| Changes in the fair value of investment properties | 4,136 | -1,765 | 11,718 | -8,740 | |
| Other result on the portfolio | -298 | 313 | -764 | -134 | |
| Operating result | 47,663 | 43,952 | 92,199 | 79,355 | |
| Financial income | 6 | 1,267 | 1,352 | 2,553 | 2,909 |
| Net interest charges | 7 | -8,010 | -10,922 | -16,861 | -21,488 |
| Other financial charges | 8 | -399 | 34 | -632 | 57 |
| Changes in the fair value of financial assets and liabilities | 9 | -3,950 | 30,998 | -37,482 | 1,418 |
| Financial result | -11,092 | 21,462 | -52,422 | -17,104 | |
| Share in the result of associated companies and joint ventures | 119 | 111 | 548 | 230 | |
| Pre-tax result | 36,690 | 65,525 | 40,326 | 62,481 | |
| Corporate tax | -1,096 | -1,662 | -2,842 | -2,628 | |
| Exit tax | -5 | 27 | -92 | -76 | |
| Taxes | -1,101 | -1,635 | -2,934 | -2,704 | |
| Net result | 35,589 | 63,890 | 37,392 | 59,777 | |
| Minority interests | -1,402 | -1,551 | -2,787 | -2,711 | |
| Net result – Group share | 34,187 | 62,339 | 34,605 | 57,066 | |
| Net current result – Group share | 29,405 | 63,111 | 22,492 | 64,149 | |
| Result on the portfolio – Group share | 4,782 | -772 | 12,113 | -7,083 |
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| B. OTHER ELEMENTS OF THE GLOBAL RESULT RECYCLABLE UNDER THE INCOME STATEMENT (in thousand EUR) |
Notes | Q2 2016 | Q2 2015 | 30.06.2016 30.06.2015 | |
|---|---|---|---|---|---|
| Change in the effective part of the fair value of authorised cash flow hedging instruments as defined under IFRS |
1,405 | 3,463 | 3,124 | 11,238 | |
| Other elements of the global result recyclable under the income statement |
1,405 | 3,463 | 3,124 | 11,238 | |
| Minority interests | |||||
| Other elements of the global result recyclable under the income statement – Group share |
1,405 | 3,463 | 3,124 | 11,238 |
| C. GLOBAL RESULT (in thousand EUR) | Notes | Q2 2016 | Q2 2015 | 30.06.2016 30.06.2015 | |
|---|---|---|---|---|---|
| Global result | 36,994 | 67,353 | 40,516 | 71,015 | |
| Minority interests | -1,402 | -1,551 | -2,787 | -2,711 | |
| Global result – Group share | 35,592 | 65,802 | 37,729 | 68,304 |
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2.2. Consolidated income statement - Analytical form
| A. NET CURRENT RESULT (in thousand EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Rental income, net of rental-related expenses | 99,763 | 99,592 |
| Writeback of lease payments sold and discounted (non-cash item) | 5,633 | 5,107 |
| Taxes and charges on rented properties not recovered | -2,596 | -3,071 |
| Redecoration costs, net of tenant compensation for damages | -839 | -430 |
| Property result | 101,961 | 101,198 |
| Technical costs | -3,494 | -1,518 |
| Commercial costs | -465 | -399 |
| Taxes and charges on unlet properties | -2,892 | -2,300 |
| Property result after direct property costs | 95,110 | 96,981 |
| Property management costs | -10,409 | -6,921 |
| Property operating result | 84,701 | 90,060 |
| Corporate management costs | -4,868 | -3,787 |
| Operating result before result on the portfolio | 79,833 | 86,273 |
| Financial income (IAS 39 excluded) | 2,553 | 2,909 |
| Financial charges (IAS 39 excluded) | -17,493 | -21,431 |
| Revaluation of derivative financial instruments (IAS 39) | -37,482 | 1,418 |
| Share in the result of associated companies and joint ventures | 237 | 230 |
| Taxes | -2,842 | -2,628 |
| Net current result | 24,806 | 66,771 |
| Minority interests | -2,314 | -2,622 |
| Net current result – Group share | 22,492 | 64,149 |
| B. RESULT ON THE PORTFOLIO (in thousand EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Gains or losses on disposals of investment properties and other non financial assets |
1,412 | 1,956 |
| Changes in the fair value of investment properties | 11,718 | -8,740 |
| Share in the result of associated companies and joint ventures | 312 | |
| Other result on the portfolio | -856 | -210 |
| Result on the portfolio | 12,586 | -6,994 |
| Minority interests | -473 | -89 |
| Result on the portfolio – Group share | 12,113 | -7,083 |
| C. NET RESULT (in thousand EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Net result | 37,392 | 59,777 |
| Minority interests | -2,787 | -2,711 |
| Net result – Group share | 34,605 | 57,066 |
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| NUMBER OF SHARES | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Number of ordinary shares issued (including treasury shares ) | 20,345,001 | 20,344,218 |
| Number of outstanding ordinary shares | 20,298,502 | 20,293,404 |
| Number of ordinary shares taken into account in the calculation of the result per share |
20,298,502 | 18,097,9411 |
| Number of preference shares issued | 685,747 | 686,008 |
| Number of outstanding preference shares | 685,747 | 686,008 |
| Number of preference shares taken into account in the calculation of the result per share |
685,747 | 686,008 |
| Total number of shares issued (including treasury shares ) | 21,030,748 | 21,030,226 |
| Total number of outstanding shares | 20,984,249 | 20,979,412 |
| Total number of shares taken into account in the calculation of the result per share |
20,984,249 | 18,783,9491 |
| RESULT PER SHARE (in EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Net current result per share – Group share | 1.07 | 3.42 |
| Result on portfolio per share – Group share | 0.58 | -0.38 |
| Net result per share – Group share | 1.65 | 3.04 |
| DILUTED RESULT PER SHARE (in EUR)2 | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Diluted number of shares | 20,341,837 | 19,621,129 |
| Diluted net result per share - Group share | 1.49 | 2.49 |
Comments on the consolidated income statement – analytical form
The net rental income amounts to 99.8 million EUR at 30.06.2016, against 99.6 million EUR as at 30.06.2015. The investments realised in healthcare real estate in Germany and the Netherlands, as well as the letting of the Guimard 10-12 office building, have fully absorbed the decrease in revenues resulting from the disposal of assets in 2015 (Livingstone II office building and Silverstone portfolio of nursing and care homes). On a like-for-like basis, gross rental revenues increased by 0,5 % between 30.06.2015 and 30.06.2016, thanks to both new lettings in the office portfolio and lease indexations. All segments in the portfolio show a positive evolution.
The direct (technical costs) and indirect (property management costs and corporate management costs) operating costs increased by 6.5 million EUR between 30.06.2015 and 30.06.2016. This increase includes only 0.8 million EUR of additional recurrent costs related to the development of the Group's activities.
- The increase in technical costs is the result of a different breakdown of maintenance works during the full financial year. In 2015 these works were strongly concentrated in the fourth quarter, which is not the case this year.
1 Prorata temporis number of shares, to take into account the fact that 3,004,318 new ordinary shares issued in May 2015 were entitled to share in the result of the financial year 2015 as from 12.05.2015.
2 Also see Note 13. In accordance with IAS 33, elements that would have an accretive impact are excluded from the calculation of the diluted result - Group share. The following elements have been excluded at 30.06.2016 and 30.06.2015: the Mandatory Convertible Bonds issued in 2011 and the convertible bonds issued in 2013.
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- The increase in property management costs corresponds to an increase in the number of fulltimeequivalent employees, expenses related to studies of various investment cases and the decreased billing of asset management fees due by a third party.
- The increase in corporate management costs is due to the fact that the subscription tax of the entire financial year 2016 was booked in the first quarter of the year.
The financial result (excluding IAS 39 impact) amounts to -14.9 million EUR as at 30.06.2016, compared to -18.5 million EUR as at 30.06.2015. The average debt level decreased from 1,526 million EUR as at 30.06.2015 to 1,272 million EUR as at 30.06.2016. In addition, the average cost of debt declined from 2,8 % to 2,7 % between these two dates.
The item 'Revaluation of financial instruments' stands at -37.5 million EUR at 30.06.2016, compared with 1.4 million EUR at 30.06.2015. It includes a charge related to the restructuring of interest rate hedging instruments for -3.1 million EUR, the effect of the revaluation of the interest rate hedging instruments which were not restructured for -32.0 million EUR, the effect of the revaluation of exchange risk hedging instruments for -0,6 million EUR, as well as the revaluation of the convertible bonds for -1.8 million EUR.
The net current result – Group share amounts to 22.5 million EUR at 30.06.2016, compared with 64.1 million EUR at 30.06.2015. Per share, these numbers are 1.07 EUR as at 30.06.2016 and 3.42 EUR as at 30.06.2015. The number of shares entitled to share in the result of the period increased from 18,783,949 to 20,984,249 between these two dates, mainly as a result of the May 2015 capital increase.
Within the result on the portfolio, the change in the fair value of investment properties stands at 11.7 million EUR as at 30.06.2016, compared to -8.7 million EUR as at 30.06.2015. The positive revaluation of the healthcare assets and the renovated office building Guimard 10-12 largely compensated the value depreciation of certain office buildings. On a like-for-like basis, the fair value of the investment properties slightly increased versus 31.12.2015 (+0.4 %).
The net result - Group share amounts to 34.6 million EUR as at 30.06.2016, compared to 57.1 million EUR as at 30.06.2015. Per share, these numbers are 1.65 EUR as at 30.06.2016 and 3.04 EUR as at 30.06.2015.
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2.3. Consolidated balance sheet
| ASSETS (in thousand EUR) | Notes | 30.06.2016 | 31.12.2015 |
|---|---|---|---|
| Non-current assets | 3,425,886 | 3,325,414 | |
| Goodwill | 4 | 111,256 | 111,256 |
| Intangible assets | 804 | 565 | |
| Investment properties | 4; 10 | 3,231,737 | 3,131,483 |
| Other tangible assets | 543 | 364 | |
| Non-current financial assets | 20 | ||
| Finance lease receivables | 75,308 | 75,652 | |
| Trade receivables and other non-current assets | 41 | 41 | |
| Participations in associated companies and joint ventures | 6,197 | 6,033 | |
| Current assets | 99,180 | 87,066 | |
| Assets held for sale | 4 | 2,710 | 2,870 |
| Current financial assets | 14 | ||
| Finance lease receivables | 1,767 | 1,656 | |
| Trade receivables | 20,433 | 19,801 | |
| Tax receivables and other current assets | 11,327 | 17,363 | |
| Cash and cash equivalents | 29,616 | 22,040 | |
| Accrued charges and deferred income | 33,327 | 23,322 | |
| TOTAL ASSETS | 3,525,066 | 3,412,480 |
| SHAREHOLDERS' EQUITY AND LIABILITIES (in thousand EUR) |
Notes | 30.06.2016 | 31.12.2015 |
|---|---|---|---|
| Shareholders' equity | 1,852,144 | 1,924,615 | |
| Shareholders' equity attributable to shareholders of the parent company |
1,787,535 | 1,860,099 | |
| Capital | 11 | 1,124,517 | 1,124,295 |
| Share premium account | 11 | 504,469 | 504,240 |
| Reserves | 123,944 | 127,597 | |
| Net result of the financial year | 12 | 34,605 | 103,967 |
| Minority interests | 64,609 | 64,516 | |
| Liabilities | 1,672,922 | 1,487,865 | |
| Non-current liabilities | 1,246,491 | 926,891 | |
| Provisions | 17,183 | 17,636 | |
| Non-current financial debts | 1,094,126 | 809,313 | |
| Other non-current financial liabilities | 99,578 | 64,656 | |
| Deferred taxes | 35,604 | 35,286 | |
| Current liabilities | 426,431 | 560,974 | |
| Current financial debts | 312,037 | 445,676 | |
| Other current financial liabilities | 18,226 | 20,572 | |
| Trade debts and other current debts | 77,272 | 62,865 | |
| Accrued charges and deferred income | 18,896 | 31,861 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,525,066 | 3,412,480 |
Comments on the consolidated balance sheet
The investment value of the property portfolio1 , as determined by the independent real estate experts, stands at 3,367.8 million EUR as at 30.06.2016, compared to 3,262.3 million EUR as at 31.12.2015. The fair value, recorded in the consolidated balance sheet in application of the IAS 40 standard, is obtained by deducting transaction costs from the investment value. As at 30.06.2016, the fair value amounts to 3,234.4 million EUR, compared to 3,134.4 million EUR as at 31.12.2015.
PRESS RELEASE
The 'Participations in associated companies and joint ventures' item refers to Cofinimmo's 51 % stake in Cofinea I SAS (nursing homes in France). The 'Minority interests' item includes the mandatory convertible bonds issued by the Cofinimur I SA subsidiary (MAAF/GMF distribution network in France), as well as the minority interests of the subsidiaries Aspria Maschsee, Aspria Uhlenhorst, Pubstone, Pubstone Group, Pubstone Properties and Rheastone.
2.4. Calculation of the consolidated debt ratio
| (in thousand EUR) | 30.06.2016 | 31.12.2015 | |
|---|---|---|---|
| Non-current financial debts | 1,094,126 | 809,313 | |
| Other non-current financial liabilities (except for hedging instruments) |
+ | 126 | .0. 97 |
| Current financial debts | + | 312,037 | 445,676 |
| Trade debts and other current debts | + | 77,272 | 62,865 |
| Total debt | = | 1,483,561 | 1,317,951 |
| Total assets | 3,525,066 | 3,412,480 | |
| Hedging instruments | - | 34 | |
| Total assets (except for hedging instruments) | / | 3,525,066 | 3,412,446 |
| DEBT RATIO | = | 42.1 % | 38.6 % |
1 Including buildings held for own use and development projects.
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2.5. Cash flow statement (in thousand EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 22,040 | 17,116 |
| OPERATING ACTIVITIES | ||
| Net result for the period | 34,605 | 57,066 |
| Adjustments for interest charges and income | 14,530 | 18,875 |
| Adjustments for gains and losses on disposal of property assets | -994 | -1,957 |
| Adjustments for gains and losses on disposals of financial assets | -418 | |
| Adjustments for non-cash charges and income | 21,698 | 3,231 |
| Changes in working capital requirements | -6,079 | 8,210 |
| Cash flow from operating activities | 63,342 | 85,425 |
| INVESTMENT ACTIVITIES | ||
| Investments in intangible assets and other tangible assets | 668 | -168 |
| Acquisitions of investment properties | -66,148 | -10,291 |
| Extensions of investment properties | -9,104 | -11,399 |
| Investments in investment properties | -7,420 | -13,199 |
| Acquisitions of consolidated subsidiaries | -10,323 | |
| Disposals of investment properties | 3,047 | 15,019 |
| Disposals of assets held for sales | 59 | 103 |
| Disposal of consolidated subsidiaries | 418 | |
| Disposal and reimbursement of finance lease receivables | 912 | 859 |
| Other cash flows from investment activities | 14,201 | |
| Net cash from investing activities | -78,905 | -15,198 |
| FINANCING ACTIVITIES | ||
| Capital increase | 60 | 281,056 |
| Disposal of own shares | 392 | 331 |
| Dividends paid to shareholders | -110,363 | -99,842 |
| Coupons paid to minority shareholders | -2,752 | -2,904 |
| Coupons paid to Mandatory Convertible Bondholders | -371 | -700 |
| Increase of financial debts | 393,820 | 291,884 |
| Decrease of financial debts | -243,531 | -495,727 |
| Financial income received | 2,934 | 2,781 |
| Financial charges paid | -17,078 | -21,655 |
| Other cash flows from financing activities | 29 | -17,724 |
| Cash flow resulting from financing activities | 23,139 | -62,500 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 29,616 | 24,843 |
2.6. Consolidated statement of changes in shareholders' equity (in thousand EUR)
| Capital | Share premium account |
Reserves1 | Net result of the financial year |
Shareholders' equity Parent company |
Minority interests |
Shareholders' equity |
|
|---|---|---|---|---|---|---|---|
| AT 01.01.2015 | 963,067 | 384,013 | 247,562 | -52,671 | 1,541,971 | 66,994 | 1,608,965 |
| Appropriation of the 2014 net result | -52,671 | 52,671 | |||||
| Elements recognised in the global result | 11,238 | 57,066 | 68,304 | 2,710 | 71,016 | ||
| Cash flow hedge2 | 11,238 | 11,238 | 11,238 | ||||
| Result of the period | 57,066 | 57,066 | 2,710 | 59,778 | |||
| Others | -437 | -437 | 1,156 | 719 | |||
| SUBTOTAL | 963,067 | 384,013 | 205,692 | 57,066 | 1,609,838 | 70,860 | 1,680,698 |
| Issue of new shares3 | 160,997 | 120,059 | 281,056 | 281,056 | |||
| Acquisitions/disposals of own shares | 193 | 138 | 331 | 331 | |||
| Dividends/Coupons | -99,882 | -99,882 | -3,605 | -103,487 | |||
| AT 30.06.2015 | 1,124,257 | 504,210 | 105,810 | 57,066 | 1,791,343 | 67,255 | 1,858,598 |
| Elements recognised in the global result |
21,971 | 46,901 | 68,872 | 1,772 | 70,644 | ||
| Cash flow hedge² | 21,971 | 21,971 | 21,971 | ||||
| Result of the period | 46,901 | 46,901 | 1,772 | 48,673 | |||
| Acquisitions/disposals of minority interests | -3,623 | -3,623 | |||||
| Others | -185 | -185 | -844 | -1,029 | |||
| SUBTOTAL | 1,124,257 | 504,210 | 127,596 | 103,967 | 1,860,030 | 64,560 | 1,924,590 |
| Acquisitions/disposals of own shares | 38 | 30 | 68 | 68 | |||
| Dividends/Coupons | -44 | -44 | |||||
| AT 31.12.2015 | 1,124,295 | 504,240 | 127,596 | 103,967 | 1,860,098 | 64,516 | 1,924,614 |
| Appropriation of the 2015 net result | 103,967 | -103,967 | |||||
| Elements recognised in the global result | 3,124 | 34,605 | 37,729 | 2,787 | 40,516 | ||
| Cash flow hedge² | 3,124 | 3,124 | 3,124 | ||||
| Result of the period | 34,605 | 34,605 | 2,787 | 37,392 | |||
| Others | -101 | -101 | 58 | -43 | |||
| SUBTOTAL | 1,124,295 | 504,240 | 234,586 | 34,605 | 1,897,726 | 67,361 | 1,965,087 |
| Issue of new shares³ | 28 | 32 | 60 | 60 | |||
| Acquisitions/disposals of own shares | 194 | 197 | 391 | 391 | |||
| Dividends/Coupons | -110,642 | -110,642 | -2,752 | -113,394 | |||
| AT 30.06.2016 | 1,124,517 | 504,469 | 123,944 | 34,605 | 1,787,535 | 64,609 | 1,852,144 |
1 Reserves are presented in detail in the following pages.
2 Including recycling under the income statement of hedging instruments which relationship with the hedged risk was terminated.
3 Shares (capital + share premiums) issued in the context of intragroup mergers, without shares being awarded to third parties outside the Group, are directly eliminated during consolidation. The issued shares listed here are related to a capital increase (2015) and the conversion of bonds into shares (2016).
Detail of the reserves (in thousand EUR)
| Reserve for the positive/nega tive balance of changes in the fair value of investment properties |
Reserve for the estimated transaction costs and transfer duties resulting from the hypothetical disposal of investment properties |
Reserve for the balance of changes in the fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS |
Reserve for the balance of changes in the fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS |
Distributabl e reserve |
Non distributabl e reserve |
Tax-exempt reserves |
Legal reserve |
TOTAL RESERVES |
|
|---|---|---|---|---|---|---|---|---|---|
| AT 01.01.2015 | -127,851 | -73,694 | -32,370 | -13,851 | 490,275 | 5,053 | 247,562 | ||
| Appropriation of the 2014 net result | -29,390 | -3,261 | -10,512 | -71,324 | 61,504 | 312 | -52,671 | ||
| Elements recognised in the global result | 534 | 11,238 | -534 | 11,238 | |||||
| Cash flow hedge | 11,238 | 11,238 | |||||||
| Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties |
534 | -534 | |||||||
| Others | -258 | -179 | -437 | ||||||
| SUBTOTAL | -157,241 | -76,421 | -31,644 | -85,175 | 550,987 | 5,186 | 205,692 | ||
| Dividends | -99,882 | -99,882 | |||||||
| AT 30.06.2015 | -157,241 | -76,421 | -31,644 | -85,175 | 451,105 | 5,186 | 105,810 |
| Reserve for the positive/nega tive balance of changes in the fair value of investment properties |
Reserve for the estimated transaction costs and transfer duties resulting from the hypothetical disposal of investment properties |
Reserve for the balance of changes in the fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS |
Reserve for the balance of changes in the fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS |
Distributabl e reserve |
Non distributabl e reserve |
Tax-exempt reserves |
Legal reserve |
TOTAL RESERVES |
|
|---|---|---|---|---|---|---|---|---|---|
| AT 30.06.2015 | -157,241 | -76,421 | -31,644 | -85,175 | 451,105 | 5,186 | 105,810 | ||
| Elements recognised in the global result | 4,751 | 21,971 | -4,751 | 21,971 | |||||
| Cash flow hedge | 21,971 | 21,971 | |||||||
| Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties |
4,751 | -4,751 | |||||||
| Others | -18,576 | -56 | 18,421 | 26 | -185 | ||||
| AT 31.12.2015 | -175,817 | -71,726 | -9,673 | -85,175 | 464,775 | 5,212 | 127,596 | ||
| Appropriation of the 2015 net result | -5,221 | -3,227 | -846 | 4,387 | 108,563 | 311 | 103,967 | ||
| Elements recognised in the global result | 220 | 3,124 | -220 | 3,124 | |||||
| Cash flow hedge | 3,124 | 3,124 | |||||||
| Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties |
220 | -220 | |||||||
| Others | 90 | -191 | -101 | ||||||
| SUBTOTAL | -181,038 | -74,733 | -7,395 | -80,788 | 573,208 | 5,332 | 234,586 | ||
| Dividends | -110,642 | -110,642 | |||||||
| AT 30.06.2016 | -181,038 | -74,733 | -7,395 | -80,788 | 462,566 | 5,332 | 123,944 |
PRESS RELEASE
2.7. Notes to the consolidated accounts
Note 1. General information
Cofinimmo SA/NV (the 'Company') is a public RREC (Regulated Real Estate Company) organized under Belgian law with registered offices at 1200 Brussels (boulevard de la Woluwe/Woluwedal 58).
Cofinimmo SA/NV's consolidated half-year statements, which closed on 30.06.2016, cover the Company and its subsidiaries ('the Group'). The scope of consolidation has changed since 31.12.2015 (see Note 14).
The half-year consolidated financial statements were closed by the Board of Directors on 28.07.2016. The statutory auditor Deloitte, Reviseurs d'Entreprises, represented by Mr Frank Verhaegen, completed their limited audit and confirmed that they had no reservations with respect to the accounting information presented in the half-year financial report and that it corresponded to the financial statements closed by the Board of Directors.
Note 2. Significant accounting methods
The consolidated half-year financial statements were prepared in accordance with IFRS standards (International Financial Reporting Standards) as adopted in the European Union and in accordance with the IAS 34 Interim Financial Reporting standard.
The accounting principles and methods used to draw up these interim financial statements are identical to those used to prepare the annual financial statements for FY 2015.
Some of the figures in this half-year financial report have been rounded and, consequently, the overall totals in the report may differ slightly from the exact arithmetical sums of the preceding figures.
Note 3. Operational and financial risk management
The risks to which the Group was exposed at 30.06.2016 were substantially the same as those identified and described in the 2015 Annual Financial Report. Risk was managed using the same methods and the same criteria during the half-year as during the previous financial year.
Note 4. Segment information (x 1,000 EUR) – Global portfolio
| INCOME STATEMENT | Healthcare Real estate |
Offices | Property of distribution networks |
Others | amounts | Unallocated | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At 30.06 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Net rental income | 43,452 | 42,701 | 42,115 | 42,149 | 18,822 | 18,870 | 1,007 | 979 | 105,396 | 104,699 | ||
| Property result after direct property costs | 42,673 | 42,522 | 33,560 | 35,549 | 18,150 | 17,995 | 727 | 915 | 95,110 | 96,981 | ||
| Property management costs | -10,409 | -6,921 | -10,409 | -6,921 | ||||||||
| Corporate management costs |
-4,868 | -3,787 | -4,868 | -3,787 | ||||||||
| Gains or losses on disposals of investment properties and other non-financial assets |
418 | 1,854 | 994 | 102 | 1,412 | 1,956 | ||||||
| Changes in the fair value of investment properties | 36,775 | 10,363 | -31,207 | -18,730 | 5,748 | -325 | 401 | -48 | 11,718 | -8,740 | ||
| Other result on the portfolio | -831 | 67 | 546 | -47 | -479 | -154 | -764 | -134 | ||||
| Operating result | 92,199 | 79,355 | ||||||||||
| Financial result | -52,422 | -17,104 | -52,422 | -17,104 | ||||||||
| Share in the result of associated companies and joint ventures |
548 | 230 | 548 | 230 | ||||||||
| Taxes | -11 | 6 | -149 | -82 | 67 | -2,841 | -2,628 | -2,934 | -2,704 | |||
| NET RESULT | 37,392 | 59,777 | ||||||||||
| NET RESULT – GROUP SHARE |
34,605 | 57,066 |
| BALANCE SHEET | Healthcare Real estate |
Offices | Property of distribution networks |
Others | Unallocated amounts | TOTAL | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AT 30.06/31.12 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Assets | ||||||||||||
| Goodwill | 26,929 | 26,929 | 84,327 | 84,327 | 111,256 | 111,256 | ||||||
| Investment properties, including: | 1,418,324 | 1,326,106 | 1,245,714 | 1,241,151 | 540,504 | 537,434 | 27,195 | 26,792 | 3,231,737 | 3,131,483 | ||
| Development projects | 36,575 | 12,720 | 33,416 | 45,525 | 505 | 1,648 | 1,662 | 1,651 | 72,158 | 61,544 | ||
| Assets held for own use | 9,218 | 8,625 | 9,218 | 8,625 | ||||||||
| Assets held for sale | 2,000 | 2,180 | 710 | 690 | 2,710 | 2,870 | ||||||
| Other assets | 179,363 | 166,871 | 179,363 | 166,871 | ||||||||
| TOTAL ASSETS | 3,525,066 | 3,412,480 | ||||||||||
| Shareholders' equity and liabilities | ||||||||||||
| Shareholders' equity | 1,852,144 | 1,924,615 | 1,852,144 | 1,924,615 | ||||||||
| Shareholders' equity attributable to | ||||||||||||
| shareholders of the parent company | 1,787,535 | 1,860,099 | 1,787,535 | 1,860,099 | ||||||||
| Minority interests | 64,609 | 64,516 | 64,609 | 64,516 | ||||||||
| Liabilities | 1,672,923 | 1,487,865 | 1,672,923 | 1,487,865 | ||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES |
3,525,066 | 3,412,480 |
Note 4. Segment information (x 1,000 EUR) – Healthcare real estate
| INCOME STATEMENT | Germany | Belgium | France | Netherlands | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| At 30.06 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Net rental income | 3,153 | 690 | 24,042 | 26,452 | 12,718 | 12,433 | 3,540 | 3,126 | 43,452 | 42,701 |
| Property result after direct property | ||||||||||
| costs | 3,107 | 690 | 23,653 | 26,459 | 12,624 | 12,342 | 3,290 | 3,031 | 42,673 | 42,522 |
| Property management costs | ||||||||||
| Corporate management costs |
||||||||||
| Gains or losses on disposals of | ||||||||||
| investment properties and other non |
||||||||||
| financial assets | ||||||||||
| Changes in the fair value of investment | ||||||||||
| properties | 3,332 | 1,069 | 15,991 | 7,059 | 11,453 | -112 | 6,000 | 2,347 | 36,775 | 10,363 |
| Other result on the portfolio | -596 | 171 | -235 | -104 | -831 | 67 | ||||
| Operating result | ||||||||||
| Financial result | ||||||||||
| Share in the result of associated | ||||||||||
| companies and joint ventures | ||||||||||
| Taxes | -11 | 6 | -11 | 6 | ||||||
| NET RESULT | ||||||||||
| NET RESULT – GROUP SHARE |
| BALANCE SHEET | Germany | Belgium | France | Netherlands | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| AT 30.06/31.12 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Assets | ||||||||||
| Goodwill | 26,929 | 26,929 | 26,929 | 26,929 | ||||||
| Investment properties, including: | 100,280 | 67,081 | 802,974 | 772,719 | 393,489 | 381,334 | 121,582 | 104,972 | 1,418,324 | 1,326,106 |
| Development projects | 12,374 | 2,300 | 5,320 | 4,690 | 18,881 | 5,730 | 36,575 | 12,720 | ||
| Assets held for own use | ||||||||||
| Assets held for sale | 2,000 | 2,180 | 2,000 | 2,180 | ||||||
| Other assets | ||||||||||
| TOTAL ASSETS | ||||||||||
| Shareholders' equity and liabilities | ||||||||||
| Shareholders' equity | ||||||||||
| Shareholders' equity attributable to | ||||||||||
| shareholders of the parent company | ||||||||||
| Minority interests | ||||||||||
| Liabilities | ||||||||||
| SHAREHOLDERS' EQUITY AND | ||||||||||
| LIABILITIES |
Note 4. Segment information (x 1,000 EUR) – Offices
| INCOME STATEMENT | Brussels CBD1 |
Brussels Decentralised |
Brussels Periphery |
Antwerp | Other Regions | TOTAL | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At 30.06 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Net rental income | 11,229 | 11,037 | 20,320 | 20,375 | 4,104 | 4,544 | 2,501 | 2,327 | 3,960 | 3,866 | 42,115 | 42,149 |
| Property result after direct property costs | 6,888 | 9,181 | 17,093 | 17,041 | 3,275 | 3,695 | 2,441 | 1,960 | 3,864 | 3,672 | 33,560 | 35,549 |
| Property management costs | ||||||||||||
| Corporate management costs |
||||||||||||
| Gains or losses on disposals of investment properties and other non-financial assets |
418 | 1,678 | 176 | 418 | 1,854 | |||||||
| Changes in the fair value of investment properties | -6,436 | 2,169 | -22,986 | -19,197 | -1,987 | -1,688 | 173 | -5 | 29 | -9 | -31,207 | -18,730 |
| Other result on the portfolio | ||||||||||||
| Operating result | ||||||||||||
| Financial result | ||||||||||||
| Share in the result of associated companies and joint | ||||||||||||
| ventures | ||||||||||||
| Taxes | -149 | -149 | ||||||||||
| NET RESULT | ||||||||||||
| NET RESULT – GROUP SHARE |
| BALANCE SHEET | CBD1 | Brussels | Brussels Decentralised |
Brussels Periphery |
Antwerp | Other Regions | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AT 30.06/31.12 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Assets | ||||||||||||
| Goodwill | ||||||||||||
| Investment properties, including: | 425,705 | 391,313 | 501,118 | 529,268 | 137,198 | 139,186 | 66,305 | 66,123 | 115,388 | 115,261 | 1,245,714 | 1,241,151 |
| Development projects | 32,239 | 27,068 | 302 | 17,611 | 373 | 358 | 501 | 488 | 33,416 | 45,525 | ||
| Assets held for own use | 9,218 | 8,625 | 9,218 | 8,625 | ||||||||
| Assets held for sale | ||||||||||||
| Other assets | ||||||||||||
| TOTAL ASSETS | ||||||||||||
| Shareholders' equity and liabilities | ||||||||||||
| Shareholders' equity | ||||||||||||
| Shareholders' equity attributable to | ||||||||||||
| shareholders of the parent company | ||||||||||||
| Minority interests | ||||||||||||
| Liabilities | ||||||||||||
| SHAREHOLDERS' EQUITY AND | ||||||||||||
| LIABILITIES |
Note 4. Segment information (x 1,000 EUR) – Property of distribution networks
| INCOME STATEMENT | Pubstone - | Belgium | Pubstone - | Netherlands | Cofinimur I - | France | TOTAL | |
|---|---|---|---|---|---|---|---|---|
| At 30.06 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Net rental income | 9,844 | 9,869 | 5,091 | 5,138 | 3,887 | 3,863 | 18,822 | 18,870 |
| Property result after direct property costs | 9,704 | 9,514 | 4,627 | 4,771 | 3,819 | 3,710 | 18,150 | 17,995 |
| Property management costs | ||||||||
| Corporate management costs |
||||||||
| Gains or losses on disposals of investment properties and other non-financial assets |
998 | 202 | -4 | -98 | -2 | 994 | 103 | |
| Changes in the fair value of investment properties | 4,869 | -550 | -2,120 | -284 | 2,999 | 509 | 5,748 | -325 |
| Other result on the portfolio | -2 | 547 | -45 | 547 | -47 | |||
| Operating result | ||||||||
| Financial result | ||||||||
| Share in the result of associated companies and joint | ||||||||
| ventures | ||||||||
| Taxes | -82 | 67 | -82 | 67 | ||||
| NET RESULT | ||||||||
| NET RESULT – GROUP SHARE |
| BALANCE SHEET | Pubstone - | Belgium | Pubstone - | Netherlands | Cofinimur I - | France | TOTAL | |
|---|---|---|---|---|---|---|---|---|
| AT 30.06/31.12 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Assets | ||||||||
| Goodwill | 50,977 | 50,977 | 33,350 | 33,350 | 84,327 | 84,327 | ||
| Investment properties, including: | 276,563 | 274,299 | 144,731 | 147,117 | 119,210 | 116,018 | 540,504 | 537,434 |
| Development projects | 973 | 505 | 675 | 505 | 1,648 | |||
| Assets held for own use | ||||||||
| Assets held for sale | 710 | 690 | 710 | 690 | ||||
| Other assets | ||||||||
| TOTAL ASSETS | ||||||||
| Shareholders' equity and liabilities | ||||||||
| Shareholders' equity | ||||||||
| Shareholders' equity attributable to shareholders of the | ||||||||
| parent company | ||||||||
| Minority interests | ||||||||
| Liabilities | ||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES |
Note 4. Segment information (x 1,000 EUR) – Other
| INCOME STATEMENT | Brussels CBD1 |
Brussels Decentralised |
Brussels Periphery |
Antwerp | Other Regions | TOTAL | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At 30.06 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Net rental income | 41 | 41 | 320 | 302 | 4 | 4 | 642 | 633 | 1,007 | 980 | ||
| Property result after direct property costs | -3 | 319 | 301 | 3 | 3 | 408 | 611 | 727 | 915 | |||
| Property management costs | ||||||||||||
| Corporate management costs |
||||||||||||
| Gains or losses on disposals of investment properties and | ||||||||||||
| other non-financial assets | ||||||||||||
| Changes in the fair value of investment properties | -42 | 1 | 401 | -8 | 401 | -49 | ||||||
| Other result on the portfolio | ||||||||||||
| Operating result | ||||||||||||
| Financial result | ||||||||||||
| Share in the result of associated companies and joint | ||||||||||||
| ventures | 548 | 230 | 548 | 230 | ||||||||
| Taxes | ||||||||||||
| NET RESULT | ||||||||||||
| NET RESULT – GROUP SHARE |
| BALANCE SHEET | Brussels CBD1 |
Brussels Decentralised |
Brussels Periphery |
Antwerp | Other Regions | TOTAL | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AT 30.06/31.12 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Assets | ||||||||||||
| Goodwill | ||||||||||||
| Investment properties, including: | 7,188 | 7,088 | 155 | 154 | 19,852 | 19,549 | 27,195 | 26,792 | ||||
| Development projects | 1,662 | 1,651 | 1,662 | 1,651 | ||||||||
| Assets held for own use | ||||||||||||
| Assets held for sale | ||||||||||||
| Other assets | ||||||||||||
| TOTAL ASSETS | ||||||||||||
| Shareholders' equity and liabilities | ||||||||||||
| Shareholders' equity | ||||||||||||
| Shareholders' equity attributable to |
||||||||||||
| shareholders of the parent company | ||||||||||||
| Minority interests | ||||||||||||
| Liabilities | ||||||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES |
1 Central Business District
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Note 5. Rental income and rental-related expenses (x 1,000 EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| Rental income | ||
| Gross potential income1 | 107,288 | 106,757 |
| Vacancy2 | -5,617 | -5,295 |
| Rents3 | 101,671 | 101,462 |
| Cost of rent-free periods | -2,022 | -1,734 |
| Concessions granted to tenants | -237 | -285 |
| Early termination indemnities4 | 353 | 118 |
| SUBTOTAL | 99,765 | 99,561 |
| Writeback of lease payments sold and discounted | 5,633 | 5,107 |
| Rental-related expenses | ||
| Rent payable on rented premises | -1 | -45 |
| Writedowns on trade receivables | -9 | 76 |
| Writeback of writedowns on trade receivables | 8 | |
| SUBTOTAL | -2 | 31 |
| TOTAL | 105,396 | 104,699 |
The rental income and charges classification and treatment method is described in detail on page 168 of the 2015 Annual Financial Report.
Note 6. Financial income (x 1,000 EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| Interests and dividends received5 | 171 | 534 |
| Interest receipts in respect of finance lease and similar receivables | 2,382 | 2,375 |
| TOTAL | 2,553 | 2,909 |
1 Gross potential rental income is the sum of real rents received and estimated rents attributed to unlet spaces.
2 Vacancy is calculated on unlet spaces based on the rental value estimated by independent real estate experts.
3 Including income guaranteed by developers to replace rents.
4 Early termination indemnities are recognised in full in the income statement, in accordance with IAS 17.50.
5 The amount of dividends received is nil at 30.06.2016 and 30.06.2015.
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Note 7. Net interest charges (x 1,000 EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| Nominal interests on loans at amortised cost | -10,331 | -12,553 |
| Bilateral loans - floating rate | -1,235 | -2,932 |
| Commercial papers - floating rate | -472 | -594 |
| Investment credits - floating or fixed rate | -292 | -306 |
| Bonds - fixed rate | -5,025 | -4,143 |
| Convertible bonds | -3,307 | -4,578 |
| Writeback of nominal financial debts | -317 | -361 |
| Charges relating to authorised hedging instruments | -5,593 | -8,705 |
| Authorised hedging instruments qualifying for hedge accounting | -3,250 | |
| Authorised hedging instruments not qualifying for hedge accounting | -5,593 | -5,455 |
| Income relating to authorised hedging instruments | 1,170 | 1,961 |
| Authorised hedging instruments qualifying for hedge accounting | 51 | |
| Authorised hedging instruments not qualifying for hedge accounting | 1,170 | 1,910 |
| Other interest charges | -1,790 | -1,830 |
| TOTAL | -16,861 | -21,488 |
Note 8. Other financial charges (x 1,000 EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| Bank fees and other commissions | -217 | -168 |
| Others | -415 | 225 |
| Interests on cash advances | 353 | |
| Realised gains/losses on disposals of financial instruments | -237 | |
| Others | -178 | -128 |
| TOTAL | -632 | 57 |
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Note 9. Changes in the fair value of financial assets and liabilities (x 1,000 EUR)
| 30.06.2016 | 30.06.2015 | |
|---|---|---|
| Authorised hedging instruments qualifying for hedge accounting | -3,758 | -6,392 |
| Changes in fair value of authorised hedging instruments qualifying for hedge accounting |
-636 | -46 |
| Impact of the recycling under the income statement of hedging instruments which relationship with the hedged risk was terminated |
-3,122 | -6,347 |
| Authorised hedging instruments not qualifying for hedge accounting | -33,724 | 4,931 |
| Changes in fair value of authorised hedging instruments qualifying for hedge accounting |
-31,946 | 13,091 |
| Convertible bonds | -1,778 | -8,160 |
| TOTAL | -37,482 | -1,462 |
Note 10. Investment properties (x 1,000 EUR)
| 30.06.2016 | 31.12.2015 | |
|---|---|---|
| Asset category | Level 31 | Level 31 |
| Properties available for lease | 3,150,361 | 3,061,314 |
| Development projects | 72,158 | 61,544 |
| Assets held for own use | 9,218 | 8,625 |
| TOTAL2 | 3,231,737 | 3,131,483 |
Properties available for lease (x 1,000 EUR)
| 30.06.2016 | 31.12.2015 | |
|---|---|---|
| Asset category | Level 31 | Level 31 |
| AT 01.01 | 3,061,314 | 3,097,932 |
| Capital expenditures | 3,161 | 16,685 |
| Acquisitions | 59,427 | 68,635 |
| Transfers from/to Development projects | 11,144 | 49,381 |
| Sales/Disposals (fair value of assets sold/disposed of) | -2,052 | -177,878 |
| Writeback of lease payments sold and discounted | 5,633 | 10,214 |
| Increase/Decrease in the fair value | 11,734 | -3,655 |
| AT 30.06/31.12 | 3,150,361 | 3,061,314 |
1 According to IFRS 13, the basis for the valuations resulting in the fair values can be described as follows: Level 1: quoted prices observable in active markets;
Level 2: observable data other than the quoted prices included in level 1; Level 3: unobservable data.
2 Including the fair value of investment properties subject to the disposal of receivables.
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Development projects (x 1,000 EUR)
| 30.06.2016 | 31.12.2015 | |
|---|---|---|
| Asset category | Level 31 | Level 31 |
| AT 01.01 | 61,544 | 88,966 |
| Investments | 14,470 | 34,932 |
| Acquisitions | 4,077 | 6,158 |
| Transfer from/to Properties available for lease | -11,144 | -49,381 |
| Sales/Disposals (fair value of assets sold/disposed of) | -19,287 | |
| Increase/Decrease in the fair value | 3,211 | 156 |
| AT 30.06/31.12 | 72,158 | 61,544 |
Assets held for own use (x 1,000 EUR)
| 30.06.2016 | 31.12.2015 | |
|---|---|---|
| AT 01.01 | 8,625 | 8,875 |
| Investments | 573 | 51 |
| Increase/Decrease in the fair value | 20 | -301 |
| AT 30.06/31.12 | 9,218 | 8,625 |
1 According to IFRS 13, the basis for the valuations resulting in the fair values can be described as follows: Level 1: quoted prices observable in active markets;
- Level 2: observable data other than the quoted prices included in level 1;
- Level 3: unobservable data.
| 30.06.2015 | ||||||
|---|---|---|---|---|---|---|
| Designated in a hedging relationship |
Designated at fair value through the net result |
Held for trading | Loans, receivables and financial liabilities at amortised cost |
Fair value | Fair value qualification |
|
| Non-current financial assets | 419 | 86,046 | 114,611 | |||
| Hedging instruments | 419 | 419 | ||||
| CAP | 419 | 419 | Level 2 | |||
| Credits and receivables | 83,679 | 111,825 | ||||
| Loans to associated companies | 6,125 | 6,125 | Level 2 | |||
| Non-current finance lease receivables |
77,516 | 105,662 | Level 2 | |||
| Trade receivables and other non current assets |
38 | 38 | Level 2 | |||
| Other non-current financial liabilities | 2,367 | 2,367 | Level 2 | |||
| Current financial assets | 284 | 64,722 | 66,518 | |||
| Hedging instruments | 284 | 284 | ||||
| IRS | 284 | 284 | Level 2 | |||
| Credits and receivables | 39,879 | 41,391 | ||||
| Current finance lease receivables | 1,912 | 3,424 | Level 2 | |||
| Trade receivables | 23,270 | 23,270 | Level 2 | |||
| Trade receivables and other non current assets |
14,697 | 14,697 | Level 2 | |||
| Cash and cash equivalents | 24,843 | 24,843 | Level 2 | |||
| TOTAL | 419 | 284 | 150,768 | 181,129 |
| 30.06.2015 | ||||||
|---|---|---|---|---|---|---|
| Designated in a hedging relationship |
Designated at fair value through the net result |
Held for trading | Loans, receivables and financial liabilities at amortised cost |
Fair value | Fair value qualification |
|
| Non-current financial liabilities | 62,809 | 211,996 | 825,664 | 1,100,469 | ||
| Non-current financial debts | 211,996 | 821,822 | 1,033,818 | |||
| Bonds | 379,376 | 379,376 | Level 2 | |||
| Commercial papers - fixed rate |
26,000 | 26,000 | Level 2 | |||
| (Mandatory) Convertible Bonds | 211,996 | 211,996 | Level 1 | |||
| Bank debts | 409,978 | 409,978 | Level 2 | |||
| Rental guarantees received | 6,468 | 6,468 | Level 2 | |||
| Other non-current financial liabilities | 62,809 | 3,842 | 66,651 | |||
| CAP | 31 | 31 | Level 2 | |||
| FLOOR | 11,789 | 11,789 | Level 2 | |||
| IRS | 50,989 | 50,989 | Level 2 | |||
| Other non-current financial liabilities | 3,842 | 3,842 | Level 2 | |||
| Current financial liabilities | 24,542 | 177,556 | 336,782 | 538,870 | ||
| Current financial debts | 177,556 | 248,690 | 426,236 | |||
| Convertible bonds | 177,556 | 177,556 | Level 1 | |||
| Commercial papers - fixed rate |
5,000 | 5,000 | Level 2 | |||
| Commercial papers - floating rate |
203,100 | 203,100 | Level 2 | |||
| Bank debts | 40,558 | 40,558 | Level 2 | |||
| Finance lease | 10 | |||||
| Other current financial debts | 22 | 22 | Level 2 | |||
| Other current financial liabilities | 24,542 | 24,542 | ||||
| FLOOR | 3,289 | 3,289 | Level 2 | |||
| IRS | 21,253 | 21,253 | Level 2 | |||
| Trade debts and other current debts | 88,092 | 88,092 | Level 2 | |||
| TOTAL | 87,351 | 389,552 | 1,162,446 | 1,639,338 |
| 30.06.2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Designated in a hedging relationship |
Designated at fair value through the net result |
Held for trading | Loans, receivables and financial liabilities at amortised cost |
Fair value | Fair value qualification |
|||
| Non-current financial assets | 81,545 | 145,904 | ||||||
| Credits and receivables | 81,545 | 145,904 | ||||||
| Loans to associated companies |
6,197 | 6,197 | Level 2 | |||||
| Non-current finance lease receivables |
75,308 | 139,666 | Level 2 | |||||
| Trade receivables and other non-current assets |
41 | 41 | Level 2 | |||||
| Current financial assets | 51,816 | 53,326 | ||||||
| Credits and receivables | 22,200 | 23,710 | ||||||
| Current finance lease receivables |
1,767 | 3,277 | Level 2 | |||||
| Trade receivables | 20,433 | 20,433 | Level 2 | |||||
| Cash and cash equivalents | 29,616 | 29,616 | Level 2 | |||||
| TOTAL | 133,361 | 199,230 |
| 30.06.2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Designated in a hedging relationship |
Designated at fair value through the net result |
Held for trading |
Loans, receivables and financial liabilities at amortised cost |
Fair value | Fair value qualification |
|||
| Non-current financial liabilities | 177,769 | 98,816 | 929,518 | 1,206,103 | ||||
| Non-current financial debts | 177,769 | 929,518 | 1,107,287 | |||||
| Bonds | 380,000 | 380,000 | Level 1 |
|||||
| Commercial papers - fixed rate |
46,000 | 46,000 | Level 2 | |||||
| (Mandatory) Convertible Bonds | 177,769 | 177,769 | Level 1 | |||||
| Bank debts | 461,473 | 461,473 | Level 2 | |||||
| Rental guarantees received | 6,442 | 6,442 | Level 2 | |||||
| Deferred taxes | 35,604 | 35,604 | ||||||
| Other non-current financial liabilities |
98,816 | 98,816 | ||||||
| IRS | 98,816 | 98,816 | Level 2 | |||||
| Current financial liabilities | 636 | 18,227 | 389,309 | 408,171 | ||||
| Current financial debts | 312,037 | 312,037 | ||||||
| Commercial papers - floating rate |
290,500 | 290,500 | Level 2 | |||||
| Bank debts | 21,505 | 21,505 | Level 2 | |||||
| Others | 32 | 32 | Level 2 | |||||
| Other current financial liabilities | 636 | 18,227 | 18,863 | |||||
| IRS | 18,227 | 18,227 | Level 2 | |||||
| FX options | 636 | 636 | Level 2 | |||||
| Trade debts and other current debts |
77,272 | 77,272 | Level 2 | |||||
| TOTAL | 636 | 177,769 | 117,043 | 1,318,827 | 1,614,274 |
Categories of financial instruments
Fair value is estimated:
- At book value for trade receivables and debt, loans and variable rate loans and debt;
- Based on future cash flows discounted at adapted market rates for lease-finance receivables;
- By reference to a price quoted on an active market for listed bonds (retail bonds and private placements).
Financial instruments designated as being at fair value through the net result
The financial instruments that are valued, subsequent to initial recognition, at fair value on the balance sheet, are grouped in three levels (1 to 3), based on the degree to which the fair value is observable:
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for similar assets or liabilities;
- Level 2 fair value measurements are those derived from data other than quoted prices included in level 1, which are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. data derived from prices);
- Level 3 fair value measurements are those derived from valuation techniques that include data for the asset or liability that are not based on observable market data (unobservable data).
Level 1
Convertible bonds issued by Cofinimmo are level 1.
Level 2
The financial assets and liabilities as well as the financial derivatives owned at fair value by Cofinimmo are all level 2, except for the convertible bonds issued by Cofinimmo, which are level 1.
Their fair value is established as follows:
- Fair value of financial assets and liabilities The fair value of the assets and liabilities with standard terms and conditions and which are traded on active and liquid markets is established based on stock market prices.
- Fair value of participations in associated companies and joint ventures Fair value is determined based on the share in the associated company of which all the assets are valued at their fair value.
- Fair value of hedging derivative financial instruments
- The fair value of derivative instruments is calculated based on stock market prices. When such prices are not available, analyses of discounted cash flows based on the applicable yield curve with respect to the duration of the instruments are used in the case of non-optional derivatives, and option evaluation models are used in the case of optional derivatives. Interest rate swaps are evaluated according to the discounted value of estimated and discounted cash flows in accordance with the applicable yield curves obtained on the basis of the market interest rates.
Level 3
Cofinimmo does not currently hold any level 3 financial instruments.
There were no asset transfers between the different fair value categories.
A description of financial risks is available in chapter '1.11. Risk management' of this Half-Year Financial Report.
Note 12. Share capital and share premiums
| (in number) | Ordinary shares | Convertible preference shares |
TOTAL | |||
|---|---|---|---|---|---|---|
| Number of shares (A) | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 |
| AT 01.01 | 20,344,378 | 17,339,423 | 685,848 | 686,485 | 21,030,226 | 18,025,908 |
| Capital increase | 3,004,318 | 3,004,318 | ||||
| Conversion of preference shares into ordinary shares | 101 | 637 | -101 | -637 | ||
| Conversion of convertible bonds into ordinary shares | 522 | 522 | ||||
| AT 30.06/31.12 | 20,345,001 | 20,344,378 | 685,747 | 685,848 | 21,030,748 | 21,030,226 |
| Own shares held by the Group (B) | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 |
|---|---|---|---|---|---|---|
| AT 01.01 | 50,114 | 54,414 | 50,114 | 54,414 | ||
| Own shares sold/purchased – net |
-3,615 | -4,300 | -3,615 | -4,300 | ||
| AT 30.06/31.12 | 46,499 | 50,114 | 46,499 | 50,114 |
| Number of outstanding shares (A-B) | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 |
|---|---|---|---|---|---|---|
| AT 01.01 | 20,294,264 | 17,285,009 | 685,848 | 686,485 | 20,980,112 | 17,971,494 |
| AT 30.06/31.12 | 20,298,502 | 20,294,264 | 685,747 | 685,848 | 20,984,249 | 20,980,112 |
| (x 1,000 EUR) | Ordinary shares | Convertible preference shares |
TOTAL | |||
|---|---|---|---|---|---|---|
| Capital | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 |
| AT 01.01 | 1,087,720 | 926,485 | 36,575 | 36,609 | 1,124,295 | 963,067 |
| Own shares sold/purchased – net |
194 | 230 | 194 | 230 | ||
| Capital increase | 160,997 | 160,997 | ||||
| Conversion of preference shares into ordinary shares | 5 | 34 | -5 | -34 | ||
| Conversion of convertible bonds into ordinary shares | 28 | 28 | ||||
| AT 30.06/31.12 | 1,087,947 | 1,087,720 | 36,570 | 36,575 | 1,124,517 | 1,124,295 |
| Share premium account | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 | 30.06.2016 | 31.12.2015 |
|---|---|---|---|---|---|---|
| AT 01.01 | 468,079 | 347,818 | 36,161 | 36,195 | 504,240 | 384,013 |
| Own shares sold/purchased – net |
198 | 168 | 198 | 168 | ||
| Capital increase | 120,059 | 120,059 | ||||
| Conversion of preference shares into ordinary shares | 5 | 34 | -5 | -34 | ||
| Conversion of convertible bonds into ordinary shares | 31 | 31 | ||||
| AT 30.06/31.12 | 486,313 | 468,079 | 36,156 | 36,161 | 504,469 | 504,240 |
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Note 13. Result per share
| (x 1,000 EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Net current result attributable to ordinary and preference shares | 22,493 | 64,149 |
| Net current result for the period | 24,807 | 66,771 |
| Minority interests | -2,314 | -2,622 |
| Result on portfolio attributable to ordinary and preference shares | 12,113 | -7,083 |
| Result on portfolio for the period | 12,586 | -6,994 |
| Minority interests | -473 | -89 |
| Net result attributable to ordinary and preference shares | 34,605 | 57,066 |
| Net result for the period | 37,392 | 59,777 |
| Minority interests | -2,787 | -2,711 |
| Diluted net result attributable to ordinary and preference shares | 30,237 | 48,846 |
| Diluted net result for the period | 33,024 | 51,557 |
| Minority interests | -2,787 | -2,711 |
| Result per share (in EUR) | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Number of ordinary and preference shares taken into account in the calculation of the result per share |
20,984,249 | 18,783,9491 |
| Net current result per share – Group share | 1.07 | 3.42 |
| Result on portfolio per share – Group share | 0.58 | -0.38 |
| Net result per share – Group share | 1.65 | 3.04 |
| Diluted result per share (in EUR)2 | 30.06.2016 | 30.06.2015 |
|---|---|---|
| Number of ordinary and preference shares taken into account in the calculation of the diluted result per share |
20,341,837 | 19,621,1291 |
| Diluted net current result per share – Group share | 0.89 | 2.85 |
| Diluted result on portfolio per share – Group share | 0.60 | -0.36 |
| Diluted net result per share - Group share | 1.49 | 2.49 |
1 Prorata temporis number of shares, to take into account the fact that 3,004,318 new ordinary shares issued in May 2015 were entitled to share in the result of the financial year 2015 as from 12.05.2015.
2 In accordance with IAS 33, elements that would have an accretive impact are excluded from the diluted result - Group share. The following elements have been excluded at 30.06.2016 and at 30.06.2015: the Mandatory Convertible Bonds issued in 2011 and the convertible bonds issued in 2013.
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
Note 14. Consolidation criteria and scope
Consolidation perimeter
| Name and address of the registered office of subsidiaries held at 100 % by the Group (full consolidation) |
VAT or national number (NN) |
Direct and indirect interests and voting rights (in %) |
|---|---|---|
| BELLIARD III-IV PROPERTIES SA/NV | not subject to taxation | |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels | BE 475 162 121 | 100.00 |
| BOLIVAR PROPERTIES SA/NV | not subject to taxation | |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels | BE 878 423 981 | 100.00 |
| COFINIMMO INVESTISSEMENTS ET SERVICES SA Avenue de l'Opéra 27, 75001 Paris (France) |
FR 88 487 542 169 | 100.00 |
| SCI AC NAPOLI | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 71 428 295 695 | 100.00 |
| SCI BEAULIEU | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 50 444 644 553 | 100.00 |
| SCI CHAMTOU | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 11 347 555 203 | 100.00 |
| SCI CUXAC II | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 18 343 262 341 | 100.00 |
| SCI DE L'ORBIEU | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 14 383 174 380 | 100.00 |
| SCI DU DONJON | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 06 377 815 386 | 100.00 |
| SNC DU HAUT CLUZEAU | ||
| Avenue de l'Opéra 27, 75001 Paris (France) | FR 39 319 119 921 | 100.00 |
| SARL HYPOCRATE DE LA SALETTE | not subject to taxation | 100.00 |
| Avenue de l'Opéra 27, 75001 Paris (France) | NN 388 117 988 | |
| SCI LA NOUVELLE PINÈDE | FR 78 331 386 748 | 100.00 |
| Avenue de l'Opéra 27, 75001 Paris (France) | ||
| SCI PRIVATEL INVESTISSEMENT | FR 13 333 264 323 | 100.00 |
| Avenue de l'Opéra 27, 75001 Paris (France) | ||
| SCI RESIDENCE FRONTENAC | FR 80 348 939 901 | 100.00 |
| Avenue de l'Opéra 27, 75001 Paris (France) | ||
| SCI SOCIBLANC | not subject to taxation | 100.00 |
| Avenue de l'Opéra 27, 75001 Paris (France) | NN 328 781 844 | |
| COFINIMMO LUXEMBOURG SA | not subject to taxation | |
| Boulevard Grande-Duchesse Charlotte 56, | NN 100 044 | 100.00 |
| 1331 Luxemburg (Grand Duchy of Luxemburg) | ||
| COFINIMMO SERVICES SA/NV | BE 437 018 652 | 100.00 |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels | ||
| FPR LEUZE SA/NV | BE 839 750 279 | 100.00 |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels | ||
| GESTONE SA/NV | BE 655 814 822 | 100.00 |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels |
REGULATED INFORMATION
Brussels, embargo until 28.07.2016, 05:40 PM CET
| KAISERSTONE SA | ||
|---|---|---|
| Rue Eugène Ruppert 6, | B 202.584 | 100.00 |
| 2453 Luxemburg (Grand Duchy of Luxemburg) | ||
| LEOPOLD SQUARE SA/NV | not subject to taxation | |
| Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels | BE 465 387 588 | 100.00 |
| SUPERSTONE BV | ||
| Claudius Prinsenlaan 128, 4818 CP Breda (The Netherlands) | NL 85.07.32.554.B.01 | 100.00 |
| WELLNESSTONE SA | ||
| Rue Eugène Ruppert 6, | not subject to taxation | 100.00 |
| 2453 Luxemburg (Grand Duchy of Luxemburg) | B 197.443 |
| Name and address of the registered office of the subsidiaries held by the Group, but with minority interests (full consolidation) |
VAT or national number (NN) |
Direct and indirect interests and voting rights (in %) |
|---|---|---|
| ASPRIA MASCHSEE BV Claudius Prinsenlaan 128, 4818 CP Breda (The Netherlands) |
NL 81.89.06.108.B.01 | 94.90 |
| ASPRIA UHLENHORST BV Claudius Prinsenlaan 128, 4818 CP Breda (The Netherlands) |
NL 81.89.06.182.B.01 | 94.90 |
| COFINIMUR I SA Avenue George V 10, 75008 Paris (France) |
FR 74 537 946 824 | 97.65 |
| PUBSTONE GROUP SA/NV Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels |
not subject to taxation BE 878 010 643 |
90.00 |
| PUBSTONE SA/NV Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels |
BE 405 819 096 | 99.99 |
| PUBSTONE PROPERTIES BV Claudius Prinsenlaan 128, 4818 CP Breda (The Netherlands) |
NL 81.85.89.723.B.01 | 90.00 |
| RHEASTONE SA/NV Boulevard de la Woluwe/Woluwedal 58, 1200 Brussels |
BE 893 787 296 | 97.38 |
| Name and address of the joint ventures' registered office (equity consolidation) |
VAT or national number (NN) |
Direct and indirect interests and voting rights (in %) |
|---|---|---|
| COFINEA I SAS Avenue de l'Opéra 27, 75001 Paris (France) |
FR 74 538 144 122 | 51.00 |
Consolidation criteria
The consolidation criteria published in the 2015 Annual Financial Report have not been changed and are still used by the Cofinimmo Group.
Note 15. Transactions between related parties
There were no transactions between related parties in the first half-year of 2016 as meant in the IAS 34 standard and Article 8 of the Royal Decree of 13.07.2014.
3. Statement of compliance
The Board of Directors of Cofinimmo SA/NV assumes responsibility for the content of the 2016 Half-Year Financial Report, subject to the information supplied by third parties, including the reports of the statutory auditor and the real estate experts.
Mr André Bergen, in his position as Chairman of the Board of Directors, Mrs Diana Monissen, Mrs Inès Reinmann-Toper, Mrs Françoise Roels and Mrs Kathleen Van den Eynde, Mr Jean-Edouard Carbonnelle, Mr Olivier Chapelle, Mr Xavier de Walque, Mr Xavier Denis, Mr Christophe Demain, Mr Jérôme Descamps, Mr Maurice Gauchot and Mr Alain Schockert, Directors,
state that, to the best of their knowledge:
-
- The 2016 Half-Year Financial Report contains a fair and true statement of the important events and, as the case may be, of major transactions between related parties that have occurred during the half year and their impact on the financial statements;
-
- The 2016 Half-Year Financial Report contains no omissions likely to significantly modify the scope of any statements made in it;
-
- The financial statements were prepared in accordance with applicable accounting standards and submitted to the statutory auditor for limited review. They give a fair and true picture of the portfolio, financial situation and results of Cofinimmo and its subsidiaries included in the consolidation. Moreover, the Interim Management Report provides the outlook for the result of the coming year as well as comments on the risks and uncertainties facing the company (see pages 2 to 11 of the 2015 Annual Financial Report and pages 29 to 31 of this 2016 Half-Year Financial Report).
For more information:
Valerie Kibieta Ellen Grauls Head of External Communication and Investor Relations Manager Investor Relations Tel.: +32 2 373 94 21 Tel.: +32 2 373 60 36 [email protected] [email protected]
About Cofinimmo:
Founded in 1983, Cofinimmo is today the foremost listed Belgian real estate company specialising in rental property and an important player in the European market.
The company owns a diversified property portfolio spread over Belgium, France, the Netherlands and Germany, worth 3.2 billion EUR, representing a total surface area of over 1,700,000 m². Riding on demographic trends, its main investment segments are healthcare properties (44 %), offices (39 %), and distribution networks (17 %). As an independent company that consistently applies the highest corporate governance and sustainability standards, Cofinimmo services its tenants and manages its properties through its team of over 110 people, operating from Brussels.
Cofinimmo is listed on Euronext Brussels (BEL20) and benefits from the fiscal REIT regime in Belgium (RREC), in France (SIIC) and in the Netherlands (FBI). Its activities are controlled by the Financial Services and Markets Authority, the Belgian regulator.
At 30.06.2016, its total market capitalisation stands at 2.2 billion EUR. The company pursues investment policies which seek to offer a high dividend yield and capital protection over the long term, targeting both institutional and private investors.
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- 4. Appendices
- 4.1. Real estate experts' report
| Investment value | Fair Value | % Fair Value | |
|---|---|---|---|
| Healthcare | 1.473.508.000 | 1.419.313.000 | 43,9% |
| Offices | 1.276.857.000 | 1.245.714.000 | 38,5% |
| Distribution prop. net. | 589.604.000 | 542.227.000 | 16,8% |
| Others | 27.874.000 | 27.194.000 | 0.8% |
| TOTAL | 3.367.843.000 | 3.234.448.000 | 100% |
4.2. Statutory auditor's report