Earnings Release • Aug 29, 2014
Earnings Release
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Housing life
4 As compared to € 64.09 on 31 December 2013 and to € 58.74 on 30 June 2013. These are figures calculated after the elimination of 12 912 shares bought back by the company and including the 104 666 newly issued shares with entitlement as at 11 June 2014 (or 20 days/181 days) (IAS 33, paragraph 20).
1 Distributable result on a consolidated basis – compared to the situation on 30 June 2013. For the same period, the increase of the distributable result calculated on a statutory basis as determined by the RD of 7 December, 2010, amounts to 4.25%.
2 Compared to the situation on 31 December 2013, excluding development projects that amounted up to € 16 315 294 on 31 December 2013 and to € 30 770 830 on 30 June 2014.
3 The occupancy rate expresses the percentage of rents generated by the occupied properties, including the rental guarantees on the unoccupied properties, in comparison to the total rents of the occupied properties and the estimated rental value of the unoccupied properties. The calculation does not take the properties held for sale into account, nor the development projects.
The net rental result progresses by 0.79% in comparison with that of the first half-year of 2013, while the property result increased by 1.41%.
The progression of the property operating result (from 0.72% to € 6.1 million) is in line with the progression of the net rental result.
The operating result before the portfolio result marginally decreases by 0.15% and amounts to € 6.1 million.
The net current result excluding IAS 39 increases by 3.38%, and evolves from € 4.1 million to € 4.2 million at the end of the 1st half-year of 2014. Per share, this stands at € 1.39 compared to € 1.35 a year ago (+2.99%).
The result on the sale of investment properties, calculated in comparison with the most recent fair value, minus the investments of the current year, amounts to € 1.8 million, and records a slight increase of 1.69% in comparison with the first half-year of 2013; the distributable capital gain on these sales stands at € 2.1 million.
The distributable result substantially progresses and amounts to € 6.3 million compared to € 6.0 million a year ago. Per share this amounts to € 2.07 compared to € 1.98 on 30 June 2013 (+4.75%).
These good results demonstrate Home Invest Belgium's capacity, despite a still difficult general economic context, to benefit from the opportunities offered by the sector of residential property for letting (apartments and single-family houses) – its core business – allowing it to create value in the interest of its shareholders.
Since the stock exchange listing of the Company in June 1999 the dividend distributed by the Sicafi could substantially be increased year after year. For the current financial year, and except in the case of unforeseen circumstances, there is no indication to change this trend. In this situation it is the Board of Director's opinion that the dividend for 2014 will again exceed the dividend of the previous financial year, except in case of a substantial deterioration of the residential property market with regard to sales and/or letting.
On 30 June 2014 Home Invest Belgium holds a portfolio of investment properties in operation comprising 75 buildings, located on 44 sites in Belgium, for a total surface of ± 148 000 m².
On the balance sheet, the fair value of the investment properties in operation (excluding the development projects and the properties held for sale), amounts to € 295.6 million on 30 June 2014, while the investment value stands at € 324 million.
The most significant event of the first half-year is that the two acquisitions previously concluded by Home Invest Belgium subject to conditions precedent, have become definitive following their realisation. Home Invest Belgium has obtained the final and enforceable permits, necessary for the change in purpose and use into a residential building for two projects for its own account, thanks to the work carried out by its subsidiary Home Invest Development as delegated client:
(a) the Ariane project, located avenue Marcel Thiry 208 in 1200 Woluwe-Saint-Lambert.
Home Invest Belgium has become the owner of this building, through a contribution in kind by AXA Belgium SA on 11 June 2014, within the framework of the authorized capital. The execution file is being prepared in view of starting the works in the second half-year of 2014. The project includes 166 apartments.
(b) the Maurice Charlent project, located at the corner of the rue Maurice Charlent and the rue Jean Cockx in 1160 Auderghem. The project consists of the reconversion into studios (of minimum 28 m²) of an office building located in the vicinity of the VUB, the ULB and the unique future Brussels' site of Chirec. The execution file has been prepared, and the works have started in July 2014. The 127 studios will welcome their first tenants in the course of the second semester of 2015.
Home Invest Belgium has convened an extraordinary general meeting of shareholders on 25 September 2014, and in case of a lack of the required quorum, on 20 October 2014, in view of the adoption by the Company of the status of 'regulated real estate company' (comparable to REIT's) (SIR / GVV) (subject to certain conditions precedent, among which the condition that the percentage of shares for which the withdrawal right is exercised is not higher than a certain percentage). All information with regard to the planned change of status and this general meeting, is available on the Company's website (www.homeinvestbelgium.be) under the tab "investors".
Sophie Lambrighs Chief Executive Officer Home Invest Belgium SA Boulevard de la Woluwe 60, Box 4, B - 1200 Brussels Tel: 02/740.14.51 E-mail: [email protected]
Home Invest Belgium is a residential Sicafi, created in June 1999 and listed on the continuous market of NYSE Euronext Brussels.
On 30 June 2014 its operating portfolio consisted of 75 buildings on 44 sites for a total surface area of +/- 148 000 m² and a fair value of € 295.6 million, excluding development projects and properties held for sale.
Its activities are controlled by the Financial Services and Markets Authority (FSMA).
On 30 June 2014, the total market capitalisation of Home Invest Belgium amounted to € 256,7 million.
www.homeinvestbelgium.be
Maurice Charlent Project - Architect DSW Architects
Home Invest Belgium is a Sicafi, created in June 1999 and listed on the regulated market of the NYSE Euronext Brussels stock exchange. Last 16 June the Company celebrated its 15 years of existence. Home Invest Belgium has a market capitalisation of € 257 million.
Home Invest Belgium is specialized in residential property investments. Over the years, the Company has built up a portfolio, valued by its experts at a fair value of ± € 296 million (excluding development projects and buildings held for sale).
Besides providing attractive housing to its tenants, Home Invest Belgium pursues a coherent strategy with a view to offering its shareholders an appreciable immediate net return, together with the creation of long-term value and spreading the risk over more than 1 300 letting units.
Home Invest Belgium unites the 4 areas of the property life cycle:
The portfolio 1 of Home Invest Belgium is invested for 75% in residential property and is spread over town centres in Belgium (for 66.0% in Brussels, for 21.5% in the Walloon Region and for 12.5% in the Flemish Region). As at 30 June 2014 the property portfolio in operation includes 75 buildings on 44 sites, representing a total surface of ± 148 000 m².
The activities of Home Invest Belgium are supervised by the Financial Services and Markets Authority.
| 4 | Key figures of the half-year |
|---|---|
| 5 5 5 9 10 10 11 11 12 12 12 12 13 |
Interim management report Activities and highlights of the first half year Evolution of the property portfolio Strenghthening of the financial structure Corporate responsibility Outlook Main risks and uncertainties Strategy Corporate governance Composition of the board of directors Composition of the executive management Related parties Events after the closing of the first half-year |
| 14 14 15 |
Home Invest Belgium on the stock exchange Evolution of the share Shareholding on 30 June 2014 |
| 16 16 16 17 17 18 18 19 20 22 |
Property Report Portfolio of investment properties breakdown according to type of buildings objective of minimum 80% of residential buildings risk diversification Geographical spread B reakdown according to the age of the buildings Occupancy rate Details of the Property portfolio Report of the real estate expert |
| 24 25 27 29 30 30 32 35 |
Abridged consolidated financial statements Consolidated income statement Consolidated balance sheet Cash flow statement Changes in shareholders' equity Segment information Notes Auditor's report |
| 37 | Shareholders' calendar |
| 38 | Statement of responsible persons |
| 39 | Investor relations |
3
Distributable result per share progresses by 4.75% 1
Growth of the fair value of the investment properties of 1.8% 2
Average occupancy rate stable at 95.26% 3
Net asset value per share stands at € 64.03 4
Debt ratio of 38.70%
" Home Invest Belgium is once again proud to present you its half-year figures: the stated growth is proving the accuracy of the strategy adopted by the Company, and its capacity to implement that strategy. In reading this report you will notice that the growth and the profitability of the Company not only rely on its capacity to develop the portfolio by means of acquisitions or developments, but more fundamentally, also on controlling the operational management and its funding sources.
While all these efforts jointly lead to a substantial growth of the distributable result per share, Home Invest Belgium is more than ever an established name for those who want to invest in residential property without having to account for its daily management."
Sophie Lambrighs, Managing director - Guillaume Botermans, Chairman of the Board of directors
Guillaume Botermans, Chairman of the Board of directors - Sophie Lambrighs, Managing director
The most significant event of the first half-year is without any doubt that the two acquisitions previously concluded by Home Invest Belgium subject to conditions precedent, have become final following their realisation. Home Invest Belgium has namely obtained the final and enforceable permits, necessary for the change in purpose and use as a residential building for two projects for own account, thanks to the work carried out by its subsidiary Home Invest Development as delegated client:
(a) the Ariane Project, located avenue Marcel Thiry 208 in 1200 Woluwe-Saint-Lambert. Home Invest Belgium has become the owner of this building, through a contribution in kind by AXA Belgium SA on 11 June 2014, within the framework of the authorized capital.
Ariane Project – architect Art & Build
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(b) the Maurice Charlent Project, located at the corner of the rue Maurice Charlent and the rue Jean Cockx in 1160 Auderghem.
Following the obtention of these permits, the acquisition of the shares of the SPRL Charlent 53 Leasehold and the SPRL Charlent 53 Freehold have become definitive. The project consists of the reconversion into studios (of minimum 28 m²) of an office building located in the vicinity of the VUB, the ULB and the unique future Brussels' site of Chirec.
Within the framework of the strategy of arbitrage on assets, Home Invest Belgium has sold the office building Montoyer 25 located in 1000 Brussels for an amount excluding rights of € 4.8 million to the Kairos Group. The building is located in the Leopold district in Brussels and includes ± 2 900 m² of offices. The sale was realized at a price that is higher than the latest investment value defined by the real estate surveyor. The realization of this sale allows to generating a capital gain compared to the acquisition value.
In the first half-year, without taking into account the above-mentioned sales, Home Invest Belgium has concluded (sales agreement without conditions or authentic deeds passed) 14 sales of apartments and/or parking spaces, for a total sales amount of more than € 3.6 million (excluding costs).
The Sicafi has divested 2.19% of its portfolio in the first half-year, which is in line with achieving its annual sales objective of + 4% of the portfolio per year.
In its capacity as delegated manager, Home Invest Development SA, a 100% subsidiary of Home Invest Belgium, has made a substantial progress in the first half-year of 2014 in the following development projects for own account:
(a) the Trône projet located at the corner of the rue de la Pepinière and the rue de Brederode, close to the Royal Palace in 1000 Brussels, of which the construction works were started at the end of 2013. The structure of the building has reached the level of the 2nd floor at present. The reception of the 15 apartments and the office is foreseen for the first semester of 2015.
trône Project – TRIO Architecture
(b) the Maurice Charlent project, located at the corner of the rue Maurice Charlent and the rue Jean Cockx in 1160 Auderghem, of which Home Invest Belgium recently became the owner following obtaining the permits (supra). The works have started in July 2014. The 127 studios will welcome their first tenants in the second semester of 2015.
(c) the Ariane project, located avenue Marcel Thiry 208 in 1200 Woluwe-Saint-Lambert, of which Home Invest Belgium recently became the owner following obtaining the permits (supra). The execution file is being prepared in view of starting the works in the second half-year of 2014. Het project comprises 166 apartments.
(d) the Marcel Thiry 204C project, located in 1200 Woluwe-Saint-Lambert, next to the project Ariane: the project consists on the one hand of the reconversion of the office building into a residential building, and on the other hand, of requesting a permit for the realization of a new project on the adjacent land. The preliminary studies have been carried out, and the request for a town-planning permit has been submitted at the end of April 2014, and the request for a subdivision permit at the end of July 2014.
(e) the Reine Astrid project, located avenue Reine Astrid 278, in Kraainem, for which the planning studies and the preliminary design are on-going, in view of submitting the permit request in the second half-year of 2014.
In 2013 the Sicafi had gradually insourced the technical, administrative and accounting management of most of its buildings in the Brussels Region, leaving the management of the other buildings to external, carefully selected property managers. In the course of the first half-year, new management and follow-up procedures were introduced, in order to consolidate this new section within the administrative, commercial, technical and accounting management of the portfolio of the Sicafi.
Controlling the technical management usually allows for a better service to the tenants, an improved knowledge of the buildings in portfolio, and in particular, an accurate follow-up of cost management. At a commercial level, in view of optimising the occupancy rate of its buildings, Home Invest Belgium on the one hand appoints specialized property agents, and on the other hand commercialises itself its vacant spaces.
Home Invest Belgium has a permanent focus on developing the value of its existing property portfolio. In this respect, Home Invest Development also acts as delegated manager for the larger renovation projects of the Sicafi. This is among other the case for the works started in the Galerie de l'Ange in Namur (realisation of 6 additional apartments in the volume of the current roof) and for the renovation of compound of 20 houses of the Clos Saint-Géry in Ghlin.
In the course of the first half-year of 2014 Home Invest Belgium has diversified its funding sources and has increased the average duration of its credit lines.
The contribution of the building Ariane was remunerated by granting 104 666 new shares with an issue price of € 79.85 per share, which represents a capital increase of the Company of € 2 548 072,84 and an allocation to the issue premium account of € 5 809 535,16. Following this operation, the share capital of the Company currently amounts to € 76 949 294.75, represented by 3 160 809 shares.
Home Invest Belgium has, with success, and after the first subscription day, realized a bond issue in the form of a private placement for institutional investors, for an amount of € 40 million. This initial issue was realized with a maturity of 10 years, expiring on 18 June 2024.
These bonds generate a fixed gross annual yield of 3,7%. The denominations of these bonds were fixed at € 100 000 and are issued at 100%. The bonds have been admitted to trading on Euronext Brussels since 18 June 2014.
The net proceeds of this placement have been allocated to sustaining the growth of the portfolio and to the diversification of the funding sources of Home Invest Belgium. Thanks to their maturity of 10 years, these bonds represent an important step in extending the average maturity of the global funding of Home Invest Belgium, and this at particularly attractive financial conditions.
18 June 2014 – from left to right: Guillaume Botermans (President of the Board of Directors), Sophie Lambrighs (CEO), Jean-Luc Colson (CFO), Vincent Van Dessel (Chairman of Euronext), Alexander Hodac (CCO), Ronny Neckebroeck (Chief Trader Belfius), Olivier Goerens (DCM Belfius), Michel Bacquart (Corporate Banking Director Wallonia Belfius), Alain Baetens (Head of Listings, Euronext)
Thanks to the issuance of bonds described above and as demonstrated by the table below,
| Funding | Amounts of confirmed credit lines (€) |
Withdrawals (€) |
Average maturity |
Notional amounts expiring in the second half-year 2014 (€) |
|---|---|---|---|---|
| Bank funding | 150 280 000 | 88 280 000 | 3 years and 4 months | 35 280 000 |
| Bond loans | 40 000 000 | 40 000 000 | 10 years | |
| Total | 190 280 000 | 128 280 000 | 4 years and 9 months | 35 280 000 |
| Hedges | Amounts of hedges (€) |
Average maturity |
Hedges expiring in the second half-year 2014 (€) |
|
| IRS hedges | 111 750 000 | 3 years and 8 months | 11 750 000 |
The average cost of the debt in the first half-year of 2014 amounts to 3.29%.
Home Invest Belgium has further continued to pay particular attention, at the level of its Board of Directors as well as at the level of its Executive Management, to the social, environmental and ethical criteria with regard to its decisions related to the management of financial resources as well as the exercise of its rights related to the shares in its portfolio. As a long term investor, Home Invest Belgium has the opportunity and the responsibility to integrate sustainable development in all aspects of the development of new residential projects. It is in this context that Home Invest Belgium paid particular attention to technological evolutions in the domain of construction as well as energy performances of its property portfolio and development projects, for example, for the Ariane project. The project shall be internally developed with particular attention to the present requirements in terms of sustainable development, in particular regarding the energy performances.
Home Invest Belgium considers corporate responsibility to be a strategic pillar, with the objective to improve its performance and thus create value in the medium and long term for all parties involved.
Ever since its listing on the stock exchange in June 1999, the dividend distributed by the Sicafi has increased substantially every year.
For the current financial year, and except in case of unforeseen events, nothing is likely to change this upward curve. In these conditions, the Board of directors estimates that the dividend for the year 2014 should once again be higher than the one of previous financial year, except in case of sudden and substantial degradation of the residential property market in respect to rentals and/or sales.
The Board of directors explains that the dividend growth is partly due to the increase in volume of the arbitrage on the portfolio. In this regard, attention needs to be drawn to the fact that the Sicafi has no influence on the market price fluctuations and that it has no absolute control on the precise planning of sales, since the potential buyer is free to decide until the time of signature.
The Board of Directors considers, that the main risk factors, summarized on pages 4 to 15 of the annual financial report 2013, remain relevant to this present half year-report.
As a "Pure player" Home Invest Belgium mainly invests in real residential property for letting (apartments, houses), that generates a stable income, that can be easily sold per unit, and that generates capital gains over time.
By closely following demographic evolutions and the needs of the residential property market, the Company analyses more particularly the segment of student housing and residences for young professionals. This segment effectively answers the needs of the younger generations, in search of quality housing, responding to the current standards as to sustainability, accessibility and an attractive living environment.
Home Invest Belgium unites the 4 areas of the property life cycle:
The administrative, commercial and technical management
The sales
These different functions are carried out by professional teams that are each specialists in their field.
On 6 May 2014 the general meeting of shareholders of the Company has approved the renewal of the mandate of Non-Executive Director of Mr Liévin Van Overstraeten for a term of 4 years ending after the ordinary general meeting of 2018, and the appointment of Mr Wim Aurousseau in the capacity of Non-Executive Director, representative of AXA Belgium SA, for a term of 1 year, to end after the ordinary general meeting of 2015 to complete the mandate of Mr Guy Van Wymersch-Moons.
From left to right: Johan Van Overstraeten (Director), Wim Arousseau (Director), Guillaume Botermans (Chairman), Koen Dejonckheere (Director), Sophie Lambrighs (Managing Director), Eric Spiessens (Director), Liévin Van Overstraeten (Vice-Chairman)
On 16 June 2014, Ms Sophie Lambrighs has taken up the position of Chief Executive Officer of the Company.
From left to right: Filip Van Wijnendaele (COO), Jean-Luc Colson (CFO), Sophie Lambrighs (CEO), Alexander Hodac (CCO)
On 11 June 2014, AXA Belgium SA, shareholder of the Company, within the framework of the authorized capital, has contributed the building located avenue Marcel Thiry 208 in 1200 Woluwe-Saint-Lambert to the capital of Home Invest Belgium. This contribution was remunerated by granting 104 666 new shares, which resulted in a capital increase of the Company of € 2 548 072.84. Following this operation, the registered capital of the currently amounts to € 76 949 294.75, represented by 3 160 809.
The Company keeps on actively pursuing investment or development opportunities for its own account that create value for its shareholders, by actively managing its existing portfolio, rejuvenating and improving it, with an eye on the evolutions within the letting market.
The arbitrage activity through sales per unit has been continued at a normal rhythm and different agreement could be concluded, of which some are already the object of sales agreements.
In order to take into account the operational character of the current real estate activity of the Sicafi, a new law introducing the status of Regulated Real Estate Company (SIR / GVV), allowing existing Sicafi to adopt this new status provided that certain conditions are satisfied. This specific regulatory framework is comparable to the current regulatory framework actually applicable to Sicafi (the Company refers to the information document published on its website for more information with regard to the characteristics of the SIR / GVV status).
In this perspective, Sicafi will be urged to make a choice before 16 November 2014: either requesting for their license as an AIFM and investment company, or propose to their shareholders to adopt the SI / GVV status and request their approval as a SIR / GVV.
On 18 June 2014 the Board of Directors has decided to submit a request to adopt the status of a public SIR / GVV. Home Invest Belgium has convened an extraordinary general meeting that will take place on 25 September 2014, and in case of a lack of presences required, on 20 October 2014, for the amendment of its articles of association (subject to certain conditions precedent and the condition that the percentage of shares for which the withdrawal right was exercised is not higher than the percentage defined in the information document cited above).
Belliard 205 - Brussels
In the course of the half-year under review, the closing price of the share Home Invest Belgium has fluctuated between its lowest level of € 73.50 on 13 January and its highest level of € 82.00 on 13 March. The share registers a progress by 6.8%, taking into account the closing price on 30 June 2014 (€ 81.20) in comparison with that on 31 December 2013 (€ 76.00).
This good performance of the share Home Invest Belgium in the course of the half-year stands out in comparison with the entirety of the Belgian Sicafi sector, represented by the sectorial index EPRA Belgium, characterized by a 4.2% increase during the half-year under review. While the progression of Home Invest Belgium is comparable to that of the BEL20 (7%).
Globally, the first six months of the financial year 2014 were characterized by an increase of the share price in February to reach a level of +/- € 80.00 for the rest of the half-year. It has to be pointed out that the detachment of the coupon on last 16 May only slightly influenced the share price. Home Invest Belgium listed the previous day at € 80.00 (15 May) and was traded the next day at € 78.27 (16 May) to again increase swiftly the following days (€ 81.73 on 21 May).
It has to be noted that the liquidity of the share slightly improves with an average daily turnover of 1153 shares per trading day in comparison with an average of 810 in the course of the first half-year of 2013 and with 703 for the entire financial year 2013.
The premium on the share price of 30 June 2014, last listing day of the half-year (€ 81.20) compared to the net asset value of that same day (€ 64.03) amounts to 26.82% (in comparison with a premium of 27.7% on 30 June 2013 and a premium of 18.6% on 31 December 2013). This premium reflects the confidence of the shareholder in the significant performance arising from an investment in shares of Home Invest Belgium.
Mainly based on the transparency declarations of the shareholders which exceed the statutory threshold of 3% of the capital, and based on the register of registered shareholders, the shareholding of Home Invest Belgium on 30 June 2014 – compared to the situation on 31 December 2013, as recorded in the Annual Financial Report 2013 (page 77) – reflects the acquisition by the Van Overstraeten Group of the balance of the participation previously held by the CVBA Arcopar of the Arco Group, as well as the contribution in kind realized by AXA Belgium SA.
| Shareholders | Number of shares | In % of capital |
|---|---|---|
| Group Van Overstraeten * | 867 384 | 27.44% |
| COCKY S.A. | 110 | 0.00% |
| Mr. Liévin Van Overstraeten | 128 671 | 4.07% |
| Mr. Antoon Van Overstraeten | 127 715 | 4.04% |
| Mr. Hans Van Overstraeten | 132 346 | 4.19% |
| Mr. Johan Van Overstraeten | 128 944 | 4.08% |
| Mr. Bart Van Overstraeten | 128 568 | 4.07% |
| Stavos Luxembourg 1 | 118 455 | 3.75% |
| VOP NV | 102 575 | 3.25% |
| AXA Belgium *2 | 537 830 | 17.02% |
| Les Assurances Fédérales * | 105 296 | 3.33% |
| Family Van Overtveldt - Henry de Frahan * | 102 792 | 3.25% |
| M. S. Van Overtveldt | 51 396 | 1.63% |
| Mrs P. Henry de Frahan | 51 396 | 1,63% |
| Other registered shareholders | 74 877 | 2.37% |
| Total known | 1 688 179 | 53.41% |
| Free Float | 1 472 630 | 46.59% |
| General total | 3 160 809 | 100.00% |
* Shareholders who proceeded with a notification according to the Law on Transparency of 2 May 2007.
1 Stavos Luxembourg SA is 100% controlled by the foundation "Stichting Administratiekantoor Stavos". Stichting Administratiekantoor Stavos is controlled by Liévin, Antoon, Hans, Johan and Bart Van Overstraeten. Cocky SA is controlled for 99% by the foundation Van Overstraeten, in turn controlled for 100% by the foundation "Stichting Administratiekantoor Stavos".
2 AXA Belgium is a subsidiary of AXA Holdings Belgium, in its turn a subsidiary of AXA NV.
On 30 June 2014, Home Invest Belgium owned 75 buildings in operation on 44 sites, with a built up surface area of ± 148 000 m² and 1 315 rental units.
The fair value of the investment properties in operation amounts to € 295.6 million, the investment value to € 326 million.2
According to the purpose of the buildings of the portfolio of the Sicafi, the breakdown of the investment properties3 is established as follows:
This breakdown allows to record that at the closing date of the half-year under review, the portfolio is composed of 74.7% of buildings with an exclusive residential purpose or use.
1 Based on the fair value of the investment properties on 30 June 2014.
2 The investment value is defined as the value most likely to be reasonably obtained under normal selling conditions between consenting and well-informed parties, before deduction of transfer costs.
The fair value can be obtained as follows:
Since the programme law of 27 December 2012 Home Invest Belgium, in order to further benefit from the status of residential Sicafi, has to invest at least 80% of the total value of its property directly in property located in a member state of the European Economic Area, exclusively destined or used for housing. The status of residential Sicafi allows the shareholders of these Sicafi to benefit from a reduction of the withholding tax on dividends of 15% (instead of the customary 25%).
The residential Sicafi benefits from a transition period that ends in May 2015, to comply with this requirement, as the threshold before the programme law of 27 December 2012 amounted to only 60% of the total value of the portfolio.
Home Invest Belgium will consequently pay closely attention to reach the 80% threshold before the expiry of the transition period.
Notwithstanding the increase of the investment properties – evolving from € 306.8 million in 2013 to € 326,4 million on 30 June 2014 – this proportion remains below 80%, but represents nevertheless a progress in comparison with the level at the end of 2013 (74.7% compared to 73.7%).
The Board of directors of Home Invest Belgium takes all necessary measures in order to reach the 80% threshold by May 2015. This objective will be reached on the one hand by the phased advancement of the project developments of which the major residential part will strengthen this proportion, and on the other hand by the acquisition of existing residential portfolios, and finally by a selective arbitrage on non-residential buildings or parts. The low debt ratio will allow the Company to finance its expansion and to reach the objective of 80% of residential buildings without having to make a call for new funds.
The regulation applicable to the sector requests Sicafi to diversify their risks. Thus, Home Invest Belgium, in its capacity as Sicafi, can invest no more than 20% of its assets in one property whole.
Given that the main site – composed of 3 buildings located in Louvain-la-Neuve – only represents 11.5% of the total portfolio of buildings, followed by the Lambermont complex in Schaerbeek with 9.7%, the diversification is fully guaranteed.
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In terms of geographical spread, the portfolio of buildings is located for 66.0% in the Brussels-Capital Region, this region being regarded by the Sicafi as the prime region for investment, the reason for this being the high liquidity of its market as well as the prospect for capital gains in mid-term to long-term basis. The presence of the Company in the Walloon region amounts to 21.5% and in the Flemish Region to 12.5%.
Broken down by age category, the buildings of 10 years or less represent 38.1% of the portfolio, of which more than half less than 5 years at the closing date of the half-year.
15years The average occupancy rate1 of the property portfolio for the entire first half-year of the current financial year remains stable at 95.26%, a level that is slightly higher than that of 95.0% recorded for the entire financial year 2013. In a market that remains difficult because of the poor economic activity, this stability stems from the dynamic commercialization policy of the buildings in portfolio and from the continuous focus on optimising their rental condition.
1 The occupancy rate expresses the percentage of the rents generated by the occupied properties, including the rental guarantees on the unoccupied properties, in respect to the sum of rents of the occupied properties and of the estimated rental value of the vacant properties. The calculation does not take properties held for sale nor development projects into account.
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| Situation of the property on 30 June 2014 (1) |
Address | Main destination |
Year (2) |
Units | Surface | Gross rents (3) |
ERV (4) |
Effective rents (5) |
Occu pancy rate (6) |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Name | City | Nbr | m² | € | € | € | % | |||
| Brussels-Capital Region | 773 | 87 789 | 11 776 896 | 10 686 512 11 252 177 | 94.6% | |||||
| Adagio Access Brussels Europe | Brussels | Rue de l'Industrie, 12 | Hotel Residential |
2012 | 1 | 3 840 | 769 786 | 663 913 | 769 786 | 100.0% |
| Belliard 205 | Brussels | Rue Belliard, 205 | Offices | 1937 | 18 | 2 256 | 373 456 | 318 780 | 368 456 | 98.0% |
| Belliard 21 | Brussels | Rue Belliard, 21 | Residential | 2013 | 6 | 278 | 47 160 | 47 875 | 47 160 | 100.0% |
| Clos de la Pépinière | Brussels | Rue de la Pépinière, 6-14 - Avenue Thérésienne, 5-9 |
Residential Offices |
1993 | 25 | 3 275 | 458 367 | 434 353 | 446 367 | 97.4% |
| Lebeau | Brussels | Rue Lebeau, 55-57 | Residential | 1998 | 12 | 1 153 | 251 659 | 187 015 | 251 659 | 100.0% |
| Résidences du Quartier Européen |
Brussels | Rue Joseph II, 82-84 - Rue Lebon, 6-10 - Rue Stevin, 21 |
Residential | 1997 | 50 | 4 290 | 747 326 | 554 985 | 747 326 | 78.4% |
| Birch House | Etterbeek | Cours Saint Michel, 96 | Residential | 2001 | 32 | 3 438 | 499 931 | 476 490 | 495 131 | 97.9% |
| Erainn | Etterbeek | Rue des Ménapiens, 29 | Residential | 2001 | 12 | 1 252 | 214 523 | 201 725 | 209 523 | 97.4% |
| Yser | Etterbeek | Avenue de l'Yser, 13 | Residential | 1974 | 15 | 1 961 | 297 584 | 273 690 | 225 547 | 78.9% |
| Giotto | Evere | Avenue du Frioul, 2-10 | Residential | 2005 | 85 | 8 647 | 1 188 039 | 1 123 668 | 1 149 568 | 95.8% |
| Belgrade | Forest | Rue de Belgrade, 78-84 | Residential | 1999 | 1 | 1 368 | - | - | - | 100.0% |
| Les Jardins de la Cambre | Ixelles | Av, de l'Hippodrome, 96 - Rue des Echevins, 75 |
Residential | 1992 | 28 | 3 552 | 466 911 | 455 341 | 456 911 | 97.6% |
| Charles Woeste (appartements) | Jette | Avenue Charles Woeste, 296-306 Residential | 1998 | 92 | 5 091 | 590 678 | 552 920 | 536 378 | 94.5% | |
| Charles Woeste (commerces) | Jette | Avenue Charles Woeste, 290 | Retail | 1996 | 14 | 2 995 | 390 416 | 344 693 | 323 235 | 92.5% |
| Odon Warland - Bulins | Jette | Rue Odon Warland, 205 - Rue Bulins, 2-4 |
Residential | 2012 | 35 | 3 123 | 376 996 | 366 538 | 353 881 | 94.8% |
| Baeck | Molenbeek St Jean | Rue Joseph Baeck, 22-46 | Residential | 2001 | 28 | 2 652 | 238 247 | 230 724 | 223 717 | 95.7% |
| Lemaire | Molenbeek St Jean | Rue Joseph Lemaire, 13-15 | Nursing home |
1990 | 1 | 754 | - | - | - | 100.0% |
| La Toque d'Argent | Molenbeek St Jean | Rue Van Kalcq, 30-32 | Nursing home |
1990 | 1 | 1 618 | 202 839 | 160 465 | 202 839 | 100.0% |
| Sippelberg | Molenbeek St Jean | Avenue du Sippelberg, 3-5 | Residential | 2003 | 33 | 3 290 | 394 730 | 369 765 | 372 735 | 96.1% |
| Bosquet - Jourdan | Saint-Gilles | Rue Bosquet, 72 - Rue Jourdan, 71 |
Residential | 1997 | 27 | 2 326 | 291 934 | 282 937 | 291 934 | 99.1% |
| Jourdan - Monnaies | Saint-Gilles | Rue Jourdan, 121-125 | Residential | 2002 | 26 | 2 814 | 314 542 | 350 012 | 319 987 | 94.8% |
| Jourdan 85 | Saint-Gilles | Rue Jourdan, 85 | Residential | 2010 | 24 | 2 430 | 370 312 | 361 998 | 360 592 | 97.6% |
| Lambermont | Schaerbeek | Bd du Lambermont, 210-222 - Rue Desenfans 13-15, |
Residential | 2008 | 131 | 14 110 | 1 692 200 | 1 581 355 | 1 630 597 | 96.6% |
| Melkriek | Uccle | Rue du Melkriek, 100 | Nursing home |
1998 | 1 | 1 971 | 302 770 | 210 578 | 302 770 | 100.0% |
| Ryckmans | Uccle | Avenue Rijkmans, 5-19 | Residential | 1990 | 8 | 2 196 | 277 243 | 263 520 | 277 243 | 100.0% |
| Les Erables | Woluwé St Lambert | Avenue de Calabre, 30-32 | Residential | 2001 | 24 | 2 202 | 298 733 | 270 239 | 261 291 | 92.7% |
| Les Mélèzes | Woluwé St Lambert | Avenue de Calabre, 34-38 | Residential | 1995 | 34 | 3 984 | 576 830 | 465 312 | 484 088 | 91.5% |
| Voisin | Woluwé St Pierre | Rue Montagne au Chaudron, 13 | Residential | 1996 | 9 | 923 | 143 684 | 137 621 | 143 454 | 91.9% |
| Flemish Region | 146 | 14 029 | 2 135 131 | 2 137 640 | 2 040 004 | 97.2% | ||||
| Nieuwpoort (commerces) | Nieuport | Albert I-laan, 136 | Retail | 1997 | 1 | 296 | 29 603 | 64 000 | 29 603 | 100.0% |
| Grote Markt | Saint Nicolas | Grote Markt, 32 | Residential - Offices |
2004 | 17 | 2 752 | 392 973 | 368 541 | 378 918 | 95.5% |
| City Gardens | Louvain | Petermannenstraat, 2A-2B - Ridderstraat, 112-120 |
Residential | 2010 | 106 | 5 236 | 1 058 152 | 1 058 589 | 1 025 981 | 97.3% |
| Haverwerf | Malines | Haverwerf, 1-10 | Retail | 2002 | 4 | 3 399 | 430 050 | 424 450 | 418 800 | 98.3% |
| Gent Zuid | Gand | Woodrow Wilsonplein, 4 | Residential | 2000 | 18 | 2 346 | 224 353 | 222 060 | 186 703 | 97.7% |
1 Not including buildings currently being sold and development projects.
2 Year of construction or last complete renovation.
4 Estimated rental value as defined by the real estate surveyor.
5 Annualized gross rents on 30/06/2014.
6 Average rate over the first half-year of 2014, including rental guarantees.
7 On a statutory basis only.
3 Annual gross rents in force on 30/06/2014, including rental guarantees and the estimated rental value on unoccupied surfaces.
| Situation of the property on 30 June 2014 (1) |
Address | Main destination |
Year (2) |
Units | Surface Gross rents (3) |
ERV (4) |
Effective rents (5) |
Occu pancy rate (6) |
||
|---|---|---|---|---|---|---|---|---|---|---|
| Name | City | Nbr | m² | € | € | € | % | |||
| Walloon Region | 396 | 45 744 | 5 659 565 | 5 166 959 | 5 303 554 | 96.0% | ||||
| Clos Saint-Géry | Ghlin | Rue de Tournai, 4 | Residential | 1993 | 1 | 4 140 | 296 431 | 190 000 | 229 931 | 60.1% |
| Place du Jeu de Balle | Lasne | Place du Jeu de Balle, 1 | Residential | 1999 | 7 | 1 198 | 166 838 | 162 568 | 165 038 | 96.9% |
| Quai de Compiègne | Huy | Quai de Compiègne, 55 | Offices | 1971 | 1 | 2 479 | 252 520 | 161 135 | 252 520 | 100.0% |
| Galerie de l'Ange (appartements) | Namur | Rue de la Monnaie, 4-14 | Residential | 1995 | 50 | 1 880 | 263 106 | 256 820 | 248 293 | 96.7% |
| Galerie de l'Ange (commerces) | Namur | Rue de l'Ange, 16-20 | Retail | 2002 | 12 | 2 552 | 690 480 | 592 556 | 690 480 | 99.7% |
| Léopold | Liège | Rue Leopold, 2-8 | Residential | 1988 | 53 | 3 080 | 313 826 | 300 885 | 287 452 | 92.9% |
| Mont Saint Martin | Liège | Mont Saint Martin, 1 | Residential | 1988 | 6 | 335 | 30 627 | 29 600 | 30 627 | 100.0% |
| Saint Hubert 4 | Liège | Rue Saint Hubert, 4 | Residential | 1988 | 14 | 910 | 80 267 | 80 800 | 43 216 | 64.6% |
| Saint Hubert 51 | Liège | Rue Saint Hubert, 51 | Residential | 1988 | 4 | 360 | 26 826 | 32 280 | 26 826 | 100.0% |
| Florida | Waterloo | Avenue Florida 75 -79 | Residential | 1998 | 5 | 1 460 | 105 600 | 115 040 | 105 600 | 86.0% |
| Louvain La Neuve CV9 | Louvain La Neuve | Angle des Rues des Wallons et Grand Rue |
Offices - Retail |
1977 | 16 | 7 091 | 747 899 | 719 900 | 747 900 | 100.0% |
| Louvain La Neuve CV10&18 | Louvain La Neuve | Rues Charlemagne, Grand Rue, Robelais, Grand Place, Agora |
Residential - Offices - Retail |
1977 | 176 | 16 519 | 2 258 947 | 2 117 400 | 2 106 882 | 99.9% |
| Colombus | Jambes | Rue de l'Orjo, 52-56 | Residential | 2007 | 51 | 3 740 | 426 198 | 407 975 | 368 791 | 91.6% |
| Total | 1 315 | 147 562 | 19 571 592 17 991 111 18 595 735 | 95.3% |
| Name | City | Address | Total estimated investment |
Investments on 30/06/2014 |
|---|---|---|---|---|
| € | € | |||
| Ariane | Woluwé St Lambert | Avenue Marcel Thiry, 208 | 22 027 712 | 8 759 111 |
| Trone | Brussels | Angle de la rue de la Pépinière et Brederode | 6 834 375 | 4 044 718 |
| Maurice Charlent | Auderghem | Rue Maurice Charlent, 51-53 | 11 154 600 | 225 663 |
| Marcel Thiry 204C | Woluwé St Lambert | Avenue Marcel Thiry, 204C | 17 720 847 | 9 271 405 |
| Reine Astrid | Kraainem | Avenue Reine Astrid, 278 | 8 861 383 | 3 351 806 |
Total 66 598 917 25 652 702
In compliance with legal and statutory provisions, we are proud to provide you with our opinion on the investment value of the portfolio belonging to the Sicafi HOME INVEST BELGIUM as of 30 June 2014.
We have carried out our valuations using the NPV-method of the rental income and in compliance with International Valuation Standards (IVS) and RICS ('Royal Institution of Chartered Surveyors').
As is customary, our mission is executed on the basis of information provided by HOME INVEST BELGIUM regarding the rental status, charges and taxes to be paid by the lessor, the works to be done, together with any other factors influencing property values. We presume this information to be exact and complete.
As stated explicitly in our valuation reports, these do not include any structural or technical examination of properties or any analysis of the possible presence of harmful materials. These elements are well known by HOME INVEST BELGIUM which manages its assets in a professional manner and proceeds with due-diligence in technical as well as legal respect before the purchase of any property.
The investment value is defined as the value most likely to be reasonably obtained under normal selling conditions between consenting and well-informed parties, before deduction of transfer costs.
The fair value can be obtained as follows:
An analysis of sales realised on the Belgian market in the 2003 – 2005 period shows an average rate of 2.5% for transfer rights for properties with an investment value exceeding € 2 500 000.
This 2.5% rate will be reviewed periodically and adjusted insofar as the gap shown for the institutional market exceeds +/- 0.5%.
In our analysis of the property portfolio, we have arrived at the following findings:
1) the portfolio consists of 74.14% residential buildings of which 1.87% nursing homes, 3.73% hotels, 16.63% commercial spaces and 5.50% office space 2 .
2) the rate of occupancy of the property portfolio on 30 June 2014 amounts to 93.36% 3 .
3) the average level of collected or guaranteed rents is 6.01% higher compared to the currently estimated value for the property.
1 Letter from the real estate expert, dated 4 July 2014 literally reproduced with his approval.
2 These calculations were made based on parameters that differ from those used by Home Invest Belgium; that way, they are based on the investment value of the buildings of the portfolio and comprise the buildings held for sale and exclude the development projects..
3 The occupancy rate differs from the one published by Home Invest Belgium, which is an average occupancy rate over the entire half-year of the financial year, excluding the buildings held for sale.
Based on the remarks made in the previous paragraphs, we hereby confirm that the Investment Value of Home Invest Belgium's property portfolio on 30 June 2014 amounts to € 331 889 000.00 (three hundred thirty-one million eight hundred and eighty nine thousand Euro).
The likely realisable value of Home Invest Belgium's property portfolio on 30 June 2014 corresponding to its Fair value in the sense of IAS/IFRS, is set at € 302 694 000 00 (three hundred and two million six hundred and ninety-four thousand Euro).
Yours faithfully,
Brussels, 04 July 2014
Director
The accounting and valuation criteria used for the interim financial statements, as recorded in the current half-year report, are identical to those used for the yearly financial statements closed on 31 December 2013. This half-year report applies the IAS 34 standard, which prescribes the minimum content of this interim financial statement, as well as the applicable accounting and evaluation principles.
Taking into account the Company's activities, the figures presented hereafter do not have a cyclic or seasonal nature.
Finally, the percentages quoted in the comments below, are calculated on the basis of non-rounded figures from the income statement or from the balance sheet and can therefore deviate from those which were calculated on the basis of the rounded figures recorded hereafter.
The Company has not applied any new standards or any amendments to existing standards in an anticipatory manner; consequently, these have no impact on the following financial statements.
Les Mélèzes (Woluwe-Saint-Lambert)
| Compte de résultat consolidé | 30/06/2014 | 30/06/2013 |
|---|---|---|
| I. Rental income (+) | 9 631 516 | 9 582 481 |
| III. Rental-related expenses (+/-) | -69 282 | -95 594 |
| NET RENTAL RESULT | 9 562 234 | 9 486 887 |
| IV. Recovery of property charges (+) | 52 028 | 39 543 |
| V. Recovery of charges and taxes normally borne by the tenant on let properties (+) | 406 699 | 33 905 |
| VII. Charges and taxes normally borne by the tenant on let properties (-) | -1 069 063 | -731 878 |
| VIII. Other revenues and expenditures related to the renting (+/-) | 29 | -662 |
| PROPERTY RESULT | 8 951 926 | 8 827 796 |
| IX. Technical costs (-) | -593 298 | -633 842 |
| X. Commercial costs (-) | -105 156 | -251 662 |
| XI. Taxes and charges on un-let properties (-) | -116 772 | -229 046 |
| XII. Property management costs (-) | -1 503 068 | -1 182 625 |
| XIII. Other property costs (-) | -56 309 | 0 |
| PROPERTY COSTS | -2 374 603 | -2 297 175 |
| PROPERTY OPERATING RESULT | 6 577 322 | 6 530 620 |
| XIV. Result on sale of investment properties (-) | -454 132 | -307 425 |
| XV. Other income and operating charges (+/-) | -23 223 | -114 080 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 6 099 967 | 6 109 116 |
| XVI. Résultat sur vente d'immeubles de placement (+/-) | 1 838 333 | 1 807 814 |
| XVIII. Changes in fair value of investment properties (+/-) | 5 342 200 | 1 499 483 |
| OPERATING RESULT | 13 280 501 | 9 416 413 |
| XX. Financial income (+) | 31 574 | 42 123 |
| XXI. Net interest charges (-) | -1 829 458 | -1 999 827 |
| XXII. Other financial charges (-) | -38 528 | -44 427 |
| XXIII. Changes in fair value of financial assets and liabilities(+/-) | -2 167 190 | 1 692 780 |
| FINANCIAL RESULT | -4 003 601 | -309 351 |
| PRE-TAX RESULT | 9 276 900 | 9 107 062 |
| XXIV. Corporation tax (-) | -15 665 | 2 208 |
| TAXES | -15 665 | 2 208 |
| NET RESULT | 9 261 234 | 9 109 271 |
| NET RESULT ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY | 9 261 234 | 9 109 271 |
| NET RESULT PER SHARE | 3.03 | 2.99 |
| Average number of shares (1) | 3 054 796 | 3 043 231 |
| NET CURRENT RESULT (excluding the items XVI. XVII. XVIII and XIX.) | 2 080 701 | 5 801 973 |
| NET CURRENT RESULT PER SHARE (excluding the items XVI. XVII. XVIII and XIX.) | 0.68 | 1.91 |
| NET CURRENT RESULT EXCLUDING IAS 39 (excluding the items XVI. XVII. XVIII. XIX. and XXIII.) |
4 247 891 | 4 109 194 |
| NET CURRENT RESULT EXCLUDING IAS 39 PER SHARE (excluding the items XVI. XVII. XVIII. XIX. and XXIII.) |
1.39 | 1.35 |
| PORTFOLIO RESULT (XVI. to XIX.) | 7 180 533 | 3 307 297 |
| PORTFOLIO RESULT PER SHARE (XVI. to XIX.) | 2.35 | 1.09 |
| DISTRIBUTABLE RESULT | 6 327 621 | 6 018 084 |
| DISTRIBUTABLE RESULT PER SHARE | 2.07 | 1.98 |
| Operating margin (Operating result before the portfolio result) / Property result | 68.14% | 69.20% |
| Operating margin before tax (Pre-tax result – portfolio result) / Property result | 23.42% | 65.70% |
| Net current margin (Net result – portfolio result) / Property result | 23.24% | 65.72% |
(1) The number of shares at the end of the period is calculated excluding the 12 912 shares held under auto-control and includes 104.666 new actions entitled on June 11 2014 (or 20 days/181 days)
| Statement of global result | 30/06/2014 | 30/06/2013 |
|---|---|---|
| I. Net result | 9 261 234 | 9 109 271 |
| II. Other items of global result: | ||
| A. Impact on the fair value of transfer rights and costs estimated to arise on the | ||
| hypothetical disposal of investment properties | ||
| B. Changes in the efficient part of the fair value of hedging instruments authorized as cash flow as defined in IFRS |
-425 958 | 824 360 |
| 1. Effective hedging instruments | -508 808 | 515 598 |
| 2. Requalification according to IAS 39 § 101 | 82 851 | 308 762 |
| GLOBAL RESULT (I + II) | 26 194 912 | 12 222 357 |
The net rental result progresses by 0.79% in comparison with that of the first half-year of 2013, while the property result increased by 1.41%.
The property charges record an increase of 3.37% in comparison with the first half-year of 2013.
The general costs strongly rise by 47.72% in comparison with the first half-year of 2013, and this, on the one hand, due to the subscription tax of with both the level and the calculation basis increase, and, on the other hand, due to external consultancy fees related to new files, a/o the SIR / GVV.
The operating result before the portfolio result marginally decreases by 0.15% and amounts to € 6.1 million.
The operating margin1 thus stands at 68.14%, or a decrease in comparison with that of 69.2% in the first halfyear of 2013 and that of 69.53% on 31 December 2013, following the increase of the general costs mentioned above.
The result on the sale of investment properties, calculated in comparison with the latest fair value, minus the investments of the current year, amount to € 1.8 million, and records a slight increase of 1.69% in comparison with the first half-year of 2013; the distributable capital gain on these sales stands at € 2.1 million.
The changes in fair value of the investment properties are positive and amount to € 5.3 million in comparison with € 1.5 million in the first half-year of 2013.
The operating result consequently amounts to € 13.3 million compared to € 9.4 million on 30 June 2013, or a rise by +41.04%.
The financial result records a significant decrease. It amounts to € - 4.0 million in comparison with € - 0.3 million on 30 June 2013, explained by latent negative changes in fair value of the hedges, after a year of positive change in 2013.
The net result amounts to € 9.3 million, or a growth (+1.67%) in comparison with that of € 9.1 million on 30 June 2013.
The net current result excluding IAS 39 increases by 3.38%, and evolves from € 4.1 million to € 4.2 million at the end of the 1st half-year of 2014. Per share this stands at € 1.39 compared to € 1.35 a year ago (+2.99%).
The distributable result substantially progresses and amounts to € 6.3 million compared to € 6.0 million a year ago. Per share this amounts to € 2.07 compared to € 1.98 on 30 June 2013 (+4.75%).
1 The Operating margin is the operating result before the portfolio result /property result.
| ASSETS | 30/06/2014 | 31/12/2013 |
|---|---|---|
| I. Non-current assets | 327 638 399 | 307 933 429 |
| B. Intangible assets | 13 970 | 16 049 |
| C. Investment properties | 326 395 153 | 306 753 952 |
| D. Other tangible assets | 191 640 | 122 902 |
| E. Non-current financial assets | 73 122 | 76 012 |
| F. Finance lease receivables | 964 515 | 964 515 |
| II. Current assets | 14 223 891 | 17 166 414 |
| A. Assets held for sale | 7 069 192 | 9 402 061 |
| C. Finance lease receivables | 78 666 | 112 237 |
| D. Trade receivables | 3 412 460 | 3 199 473 |
| E. Tax receivables and other current assets | 365 512 | 296 970 |
| F. Cash and cash equivalents | 2 752 338 | 3 882 740 |
| G. Deferred charges and accrued income | 545 723 | 272 933 |
| TOTAL ASSETS | 341 862 290 | 325 099 843 |
| SHAREHOLDERS' EQUITY | ||
| A. Capital | 75 999 055 | 73 469 670 |
| B. Share premium account | 24 903 199 | 19 093 664 |
| C. Reserves | ||
| a. Legal reserve (+) | 98 778 | 98 778 |
| b. Reserve from the balance of changes in fair value of investment properties (+/-) |
105 832 012 | 90 909 201 |
| c. Reserve from estimated transfer costs and rights resulting from hypothetical disposal of investment properties (-) |
-28 488 588 | -25 730 630 |
| d. Reserve from the balance of changes in fair value of allowed hedges to which hedge accounting according to IFRS is applied (+/-) |
-1 097 156 | -671 198 |
| h. Reserve for treasury shares (-) | -757 323 | -757 323 |
| m. Other reserves (+/-) | 1 259 467 | 1 259 467 |
| n. Result carried forward from previous financial years (+/-) | 14 538 017 | 12 446 842 |
| D. Net result of the financial year | 9 261 234 | 24 907 336 |
| SHAREHOLDERS' EQUITY | 201 548 697 | 195 025 808 |
| LIABILITIES | ||
| I. Non-current liabilities | 113 663 376 | 79 471 529 |
| B. Non-current financial debts | 106 598 700 | 75 000 000 |
| C. Other non-current financial liabilities | 7 064 676 | 4 471 529 |
| II. Current liabilities | 26 650 217 | 50 602 505 |
| B. Current financial debts | 21 866 855 | 47 382 687 |
| D. Trade debts and other current debts | 3 608 439 | 2 290 190 |
| E. Other current liabilities | 211 524 | 120 734 |
| F. Accrued charges and deferred income | 963 399 | 808 895 |
| LIABILITIES | 140 313 594 | 130 074 035 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 341 862 290 | 325 099 843 |
| Number of shares at end of period (1) | 3 147 897 | 3 043 231 |
| Net asset value | 201 548 697 | 195 025 808 |
| Net asset value per share | 64.03 | 64.09 |
| EPRA NAV (2) | 66.27 | 65.55 |
| Indebtedness | 132 285 518 | 124 793 611 |
| Debt ratio | 38.70% | 38.39% |
(1) The number of shares at the end of the period is calculated with the exclusion of 12 912 shares bought by the Company and includes the 104 666 new shares issued in June 2014.
(2) "EPRA NAV" corresponds to the net asset value, adjusted in order to exclude, among others, the fair value of the financial hedging instruments.
Under the assets on the balance sheet we mainly note, under the item non-current assets, the item Investment properties, reflecting the fair value of the property portfolio of Home Invest Belgium (including the development projects). On 30 June 2014 the fair value reaches € 326.4 million, compared with € 306.8 million on 31 December 2013.
The current assets include, under the item assets held for sale, the investment properties of which the arbitrage has been decided by the Board, and of which the fair value stands at € 7.1 million.
The shareholders' equity increases (+ 3.34%) in comparison with the situation on 31 December 2013 and still includes the entirety of the results of the financial year 2013, including the dividends, in accordance with the IAS-IFRS standards.
On 30 June 2014, the debt ratio of Home Invest Belgium amounted to 38.7% compared to 38.4% on 31 December 2013, which is thus considerably lower than the legal limit of 65%, which constitutes a precious advantage in the currently still unstable context of the financial and capital markets. Moreover, on this basis, the Company's additional debt capacity amounts to € 255 million; it stands at € 78 million for a debt ratio no higher than 50%, which is the threshold determined by the Board of Directors.
Based on the fair value of the investment properties, as defined in the report of the real estate expert, and taking into account the cumulative result in the course of the past half-year, the net asset value of the Home Invest Belgium share 1 on 30 June 2014 amounts to € 64.03, which is stable in comparison with that of 31 December 2013 (€ 64.09), this last figure still including the total result of the financial year of 2013.
1 After elimination of the 12 912 shares in auto-control.
| En € | 30/06/2014 | 30/06/2013 |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3 882 740 | 2 634 188 |
| 1 Cash flow from operating activities | 71 959 | 3 786 147 |
| Result for the financial year | 9 261 234 | 9 109 271 |
| Result for the financial year before interest and taxes | 13 280 501 | 9 416 413 |
| Interest received | 31 574 | 42 123 |
| Interest paid | -4 035 175 | -351 474 |
| Taxes | -15 665 | 2.208 |
| Adjustment of profit for non-current transactions | -4 960 523 | -4 962 301 |
| Depreciation and write-downs | 52 820 | 37 158 |
| - Depreciation and write-downs on non-current assets | 52 820 | 37 158 |
| Other non-monetary elements | -3 175 010 | -3 191 645 |
| - Changes in fair value of investment properties (+/-) | -5 342 200 | -1 499 483 |
| - Other non-current transactions | 2 167 190 | -1 692 162 |
| Gain on realization of assets | -1 838 333 | -1 807 814 |
| - Capital gains realized on the sale of non-current assets | -1 838 333 | -1 807 814 |
| Change in working capital needs | -4 228 752 | -360 823 |
| Movements in asset items : | -5 257 060 | -895 428 |
| - Current financial assets | -4 719 900 | 31 120 |
| - Trade receivables | -212 987 | -693 344 |
| - Tax receivables and other short-term assets | -68 541 | 325 194 |
| - Deferred charges and accrued incomes | -255 633 | -558 398 |
| Movements of liabilities items : | 1 028 308 | 534 605 |
| - Trade and other current debts | 1 263 509 | 446 427 |
| - Other current liabilities | -292 467 | 8 417 |
| - Accrued charges and deferred income | 57 267 | 79 761 |
| 2 Cash flow from investment activities | 3 343 978 | -28 019 421 |
| Investment properties - capitalized investments | -540 145 | -261 652 |
| Investment properties - new acquisitions | -34 375 000 | |
| Acquistion des filiales (net moins trésorerie acquise) | 112 630 | |
| Divestments | 8 403 033 | 6 663 710 |
| Development projects | -4 514 951 | -2 422 |
| Other tangible assets | -119 479 | -31 200 |
| Other non-current financial assets | 2 890 | -12 857 |
| 3 Cash flow from financing activities | -4 546 338 | 26 923 180 |
| Changes in financial liabilities and debts | 6 128 700 | 37 000 000 |
| Increase (+) / Decrease (-) in financial debts | 6 128 700 | 37 000 000 |
| Variation of capital (+/-) | -18 688 | |
| Dividend of the previous financial year | -10 656 350 | -10 076 820 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2 752 338 | 5 324 093 |
| Charlent Leasehold | Charlent Freehold | |
|---|---|---|
| Note A Acquisition of subsidiaries | ||
| Cash and cash equivalents | 86 895 | 77 898 |
| Investment properties | 3 649 244 | 263 153 |
| Deferred charges and accrued income - assets | 17 158 | |
| Non-current financial debts | -3.527 859 | -288 371 |
| Trade debts | -43 999 | -517 |
| Other non-current liabilities | -84 000 | |
| Accrued charges and deferred income - liabilities | -97 440 | |
| Total acquisitions | 0 | 52 163 |
| Cash-flow of subsidiaries | -86 895 | -77 898 |
| Cash-flow on acquisition of subsidiaries | -86 895 | -25 735 |
| € | Capital | Capital increase expenses |
Share premium |
Legal reserve | Reserve from the balance of changes in fair value of investment properties |
|
|---|---|---|---|---|---|---|
| Balance on 31/12/2012 | 74 401 222 | -931 552 | 19 093 664 | 98 778 | 89 588 625 | |
| Transfer | 5 427 646 | |||||
| Changes resulting from the sale of a building |
-663 340 | |||||
| Dividend distribution | ||||||
| Result of the financial year | ||||||
| VChanges in fair value of hedges | ||||||
| Balance on 30/06/2013 | 74 401 222 | -931 552 | 19 093 664 | 98 778 | 94 352 931 | |
| Balance on 31/12/2013 | 74 401 222 | -931 552 | 19 093 664 | 98 778 | 90 909 201 | |
| Transfer | 15 524 054 | |||||
| Changes resulting from the sale of a building |
-601 243 | |||||
| Dividend distribution | ||||||
| Result of the financial year | ||||||
| Changes in fair value of hedges | ||||||
| Other increase/(decrease) | 2 548 073 | -18 688 | 5 809 535 | |||
| Balance on 30/06/2014 | 76 949 295 | -950 240 | 24 903 199 | 98 778 | 105 832 012 | |
As a residential Sicafi, Home Invest Belgium has chosen to focus its investment strategy entirely on residential property (apartment buildings, other residential complexes and houses). Its investment strategy is thus largely determined by the geographical location of the buildings concerned.
As a consequence, the segmentation below is based on these geographical locations.
| Segment of activity € |
Total | ||
|---|---|---|---|
| 30/06/2014 | 30/06/2013 | ||
| Rental income | 9 631 516 | 9 582 481 | |
| Opera ting result before the por tfolio result |
6 099 967 | 6 109 116 | |
| Result on sale of investment properties | 1 838 333 | 1 807 814 | |
| Changes in fair value of investment properties | 5 342 200 | 1 499 483 | |
| Financial result | -4 003 601 | -309 351 | |
| Segment of activity of the investment properties in operation | Total | ||
| Key figures 1 | 30/06/2014 | 30/06/2013 | |
| Fair value | 295 624 323 | 278 617 698 | |
| Fair value | 295 624 323 | 278 617 698 | |
|---|---|---|---|
| Rental surface | 147 562 | 148 965 | |
| Number of units | 1 315 | 1 340 | |
| Occupancy rate | 95.3% | 94.8% |
1 Excluding buildings held for sale and development projects.
| Total | Net result of the financial year |
Result carried forward from previous financial years |
Other reserves | Reserve for treasury shares |
Reserve from the balance of changes in fair value of hedges |
Reserve from estimated transfer costs and rights |
|---|---|---|---|---|---|---|
| 178 721 397 | 11 631 985 | 11 428 410 | 1 259 467 | -757 323 | -1 958 774 | -25 133 105 |
| 0 | -1 797 837 | -2 059 109 | -1 570 699 | |||
| 0 | 56 353 | 606 987 | ||||
| -9 890 501 | -9 890 501 | |||||
| 9 109 271 | 9 109 271 | |||||
| 824 360 | 824 360 | |||||
| 178 764 526 | 9 109 270 | 9 369 300 | 1 259 467 | -757 323 | -1 134 415 | -26 096 817 |
| 195 025 808 | 24 907 336 | 12 446 842 | 1 259 467 | -757 323 | -671 198 | -25 730 630 |
| -14 478 577 | 2 091 175 | -3 136 652 | ||||
| 222 549 | 378 694 | |||||
| -10 651 309 | -10 651 309 | |||||
| 9 261 234 | 9 261 234 | |||||
| -425 958 | -425 958 | |||||
| 8 338 920 | ||||||
| 201 548 697 | 9 261 234 | 14 538 017 | 1 259 467 | -757 323 | -1 097 156 | -28 488 588 |
| Brussels-Capital Region | Flemish Region | Walloon Region | Unallocated | |||||
|---|---|---|---|---|---|---|---|---|
| 30/06/2014 | 30/06/2013 | 30/06/2014 | 30/06/2013 | 30/06/2014 | 30/06/2013 | 30/06/2014 | 30/06/2013 | |
| 5 870 141 | 6 070 290 | 1 063 137 | 1 054 454 | 2 698 238 | 2 457 738 | |||
| 5 456 090 | 5 104 572 | 1 012 853 | 978 568 | 2 591 959 | 2 282 030 | -2 960 935 | -2 256 054 | |
| 1 715 869 | 1 710 235 | 156 646 | -34 182 | 97 580 | ||||
| 5 101 793 | 1 320 069 | 277 808 | 407 840 | -37 401 | -228 426 | |||
| -4 003 601 | -309 351 |
| Total | Brussels-Capital Region | Flemish Region | Walloon Region | |||
|---|---|---|---|---|---|---|
| 30/06/2014 30/06/2013 |
30/06/2014 | 30/06/2013 | 30/06/2014 | 30/06/2013 | 30/06/2014 | 30/06/2013 |
| 295 624 323 278 617 698 |
189 621 344 | 176 275 805 | 36 880 089 | 35 023 237 | 69 122 890 | 67 318 656 |
| 147 562 148 965 |
87 789 | 88 162 | 14 029 | 14 029 | 45 744 | 46 774 |
| 1 315 1 340 |
773 | 776 | 146 | 146 | 396 | 418 |
| 95.3% 94.8% |
94.6% | 94.7% | 97.2% | 93.2% | 96.0% | 94.9% |
31
| 30/06/2014 | 30/06/2013 | |
|---|---|---|
| Investment properties, balance at the beginning of the period |
306 753 952 | 242 718 208 |
| Development projects | ||
| Balance at the beginning of the period | 16 315 294 | 882 568 |
| Investments – development projects | 9 633 079 | 2 422 |
| Contributions | 8 357 608 | |
| Sales | -3 535 151 | |
| Completion of development projects (-) | -884 990 | |
| Balance at the end of the period | 30 770 830 | |
| Investment properties | ||
| Balance at the beginning of the period | 290 438 658 | 241 835 640 |
| Completion of buildings under construction | 884 990 | |
| Acquisition of buildings | 34 375 000 | |
| Capitalized subsequent expenses | 540 145 | 261 652 |
| Changes in fair value | 5 342 200 | 1 499 483 |
| Disposals (-) | -3 029 549 | -4 855 896 |
| Transfer to assets held for sale | 2 332 869 | 4 616 828 |
| Balance at the end of the period | 295 624 323 | 278 617 698 |
| Investment properties, balance at the end of the period | 326 395 153 | 278 617 698 |
The financial debts are booked at amortized cost, which corresponds to the fair value. The table below shows the credit lines of credit opened with each bank (contracted and withdrawn amounts), the average maturity and the credit lines maturing in 2014 the second half-year of 2014.
We also recall the bond issue realized on 18/06/2014 for € 40 million, which has substantially increased the average maturity of the funding.
| Funding | Amount confirmed credit lines (€) |
Withdrawals (€) |
Average maturity |
Notional amounts expiring in the second half-year of 2014 (€) |
|---|---|---|---|---|
| Bank funding | 150 280 000 | 88 280 000 | 3 years and 4 months | 35 280 000 |
| BELFIUS | 45 750 000 | 45 750 000 | 2 years and 9 months | 20 750 000 |
| BNP | 39 530 000 | 530 000 | 2 years and 8 months | 14 530 000 |
| ING | 40 000 000 | 17 000 000 | 4 years and 9 months | |
| LBLUX | 15 000 000 | 15 000 000 | 3 years and 11 months | |
| DEGROOF | 10 000 000 | 10 000 000 | 4 years and 4 months | |
| Bond loans | 40 000 000 | 40 000 000 | 10 years | |
| Issue of 18/06/2014 | 40 000 000 | 40 000 000 | 10 years | |
| Total | 190 280 000 | 128 280 000 | 4 years and 9 months | 35 280 000 |
The debt ratio at 30/06/2014 amounts to 38.70% in comparison with 38,39% on 31/12/2013.
Interest rate hedging instruments are exclusively IRS (Interest Rate Swaps), which exchange floating interest rates for fixed rates. On 30 June 2014, the total amount of subscribed IRS hedges amounted to € 111 750 000, as recorded in the table below.
| Hedges | Amount of the hedges (€) |
Average maturity | Hedges expiring in the second half-year of 2014 (€) |
|---|---|---|---|
| BELFIUS | 46 750 000 | 2 years and 3 months | 11 750 000 |
| BNP | 25 000 000 | 3 years and 11 months | |
| ING | 40 000 000 | 5 years and 2 months | |
| IRS hedges | 111 750 000 | 3 years and 8 months | 11 750 000 |
Given the prudent financial structuring of its debt, combined with its very low debt ratio, Home Invest Belgium has only a limited exposure to fluctuations in market interest rates.
In accordance with IAS39, the negative value of financial instruments as at 30 June 2014 is recognised in liabilities under heading I.C. "Other non-current financial liabilities" at a total amount of - € 7 064 676. The counterpart is recognised as follows:
| Fair value of financial instruments as at 30/06/2014 (€) |
In shareholders' equity under the heading "d. Reserve from the balance of changes in fair value of authorised hedges to which hedge accounting according to IFRS is applied (+/-)" |
In the income statement under heading XXIII "Changes in fair value of financial assets and liabilities (+/-)" |
In shareholders' equity under the heading "n. Income brought forward from previous years (+/-)" |
|---|---|---|---|
| Effective instruments | -1 014 305 | ||
| Ineffective instruments (change in 2014) |
-1 871 837 | ||
| Ineffective instruments at previous year end (1) |
-3 800 331 | ||
| IRS declared effective in 2011 and: - previously reclassified as |
|||
| ineffective - to be reclassified as ineffective in 2014 |
-82 851 | -212 503 -82 851 |
|
| - variation in 2014 (2) Total: |
-1 097 156 | -2 167 190 | -3 800 331 |
| Overall total: | -7 064 676 |
(1) The changes in fair value in previous financial years recognised in the income statement have since been assigned to Earnings brought forward from previous years.
(2) The IRS in question having been declared ineffective, the change in fair value during the second half-year of 2014 is recognised in full in the income statement.
Credit lines are recognised in "Non-current and current financial debts".
IFRS 13 is applied to IFRS standards that demand or allow fair value measurements or disclosures on fair value and, consequently, IAS 39. IFRS 13 foresees a hierarchy in fair values under 3 data input levels (levels 1, 2 et 3). With regard to financial instruments, all these fair values are level 2. As Home Invest Belgium has no other level than level 2, it has not developed a follow-up policy for transfers in hierarchy levels.
The valuation is made by banks based on the present value of estimated future cash flows.
The consolidation scope on 30 June 2014 has changed in respect to that of 30 June 30 2013. It now includes the SA Home Invest Belgium (0420.767.885), the SA Home Invest Development 1 (0466.151.118), the SPRL Charlent 53 Freehold (0536.280.237) and the SPRL Charlent 53 Leasehold (0880.805.431).
The general meeting of 6 May 2014 approved the appropriation of results proposed by the Board of Directors. A gross dividend of € 3.50 per share2 has since then been paid on 16 May 2014 (against coupon n°17) for a total amount of € 10 696 500.503 .
As a reminder, since 1 January 2013, the distributed dividends by the residential Sicafi (which includes Home Invest Belgium) are subject to a 15% withholding tax.
On 30 June 2014 Home Invest Belgium had no conditional assets or liabilities.
Les Erables (Woluwe-Saint-Lambert)
We have reviewed the related interim consolidated balance sheet of Home Invest Belgium as of 30 June 30 2014 and the related consolidated statements of income, changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim consolidated financial information in accordance with the International Financial Reporting Standards as approved by the European Union, applicable to the communication of interim financial information ("IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our limited review.
We conducted our review in accordance with International Standards on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A limited review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures of limited review. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial information does not present fairly, in all material respects the consolidated financial position of the entity as at 30 June 30 2014, and of its financial performance and its cash flows for the six-month period then ended in accordance with the International Financial Reporting Standards as approved by the European Union.
Antwerp, 28 August 2014
Karel Nijs Company auditor and auditor certified by the FSMA for UCI's Statutory auditor
| Home Invest Belgium | ||
|---|---|---|
| 36 | Half-year financial report 2014 |
2014
| Extraordinary general meeting in view of changing the status of the company into a regulated real estate company (SIR / GVV) where the presence quorum has not been reached |
Thursday 25 September 2014 |
|---|---|
| As the case may be, extraordinary general meeting in view of changing the status of the company into a regulated real estate company (SIR / GVV) |
Monday 20 October 2014 |
| Interim statement: results on 30 September 2014 | Friday 14 November 2014 |
| 2015 |
| Annual statement for the 2014 financial year | Friday 27 February 2015 |
|---|---|
| Posting of the annual report on the website | Thursday 2 April 2015 |
| Ordinary General Meeting of the 2014 financial year | Tuesday 5 May 2015 |
| Interim statement: results on 31 March 2015 | Tuesday 5 May 2015 |
| Payment of the dividend for the 2014 financial year | Friday 15 May 2015 |
in accordance with article 13§2 of the Royal Decree of 14 November 2007
Sophie Lambrighs, Managing Director of the Sicafi, states that to her knowledge:
a) The summary financial statements, established in accordance with the applicable accounting principles, present a fair view of the assets, financial situation and results of the Sicafi and the companies included in the consolidation;
b) The interim management report contains a fair presentation of the mandatory information, and particularly the information recorded in §5 and §6 of article 13 of the Royal Decree of 14 November 2007.
29 August 2014 The Board of Directors
Lebeau (brussels)
The present half-year financial report is available on the website of the Company or can be sent by mail on simple request to the registered office.
Les Jardins de La Cambre (Brussels)
www.homeinvestbelgium.be
Louvain-La-Neuve Photo: Tom Frederix
Belgian Sicafi Boulevard de la Woluwe 60, Bte 4, B -1200 Brussels
MIX_PORT_ENG_
T +32 2 740 14 50 - F +32 2 740 14 59 [email protected] www.homeinvestbelgium.be RPM : 0420.767.885. ISIN BE 003760742
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