Earnings Release • Jan 27, 2015
Earnings Release
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Under embargo till 27 February 2015 - 5.40 pm Regulated information
Key figures Summary of the consolidated accounts The property portfolio Important events of the financial year 2014 – 15 years
Consolidated results
Statement by the statutory auditor Shareholder's calendar
| Real estate portfolio | 2014 | 2013 | 2012 |
|---|---|---|---|
| Total fair value | 322.3 M€ | 316.2 M€ | 260.1 M€ |
| Investment properties in operation | 282.6 M€ | 290.4 M€ | 241.8 M€ |
| Development projects | 33.9 M€ | 16.3 M€ | 0.9 M€ |
| Buildings held for sale | 5.8 M€ | 9.4 M€ | 17.3 M€ |
| Detail of the investment properties in operation | |||
| Surface of the investment properties | 142 200sqm | 147 935sqm | 125 077sqm |
| Number of buildings | 73 | 75 | 73 |
| Number of sites | 42 | 44 | 42 |
| Number of leases | 1 311 | 1 318 | 1 142 |
| Occupancy rate | 94.01% | 94.96% | 94.16% |
| Gross return on received or garantueed rent | 6.00% | 6.11% | 6.11% |
| Consolidated results | 2014 | 2013 | 2012 |
|---|---|---|---|
| Net rental result | 18.8 M€ | 19.1 M€ | 16.5 M€ |
| Property result | 17.7 M€ | 17.8 M€ | 15.4 M€ |
| Operating result before the portfolio result (EBIT) | 12.1 M€ | 12.4 M€ | 11.0 M€ |
| Portfolio result | 11.0 M€ | 14.9 M€ | 6.7 M€ |
| Operating result | 23.0 M€ | 27.3 M€ | 17.6 M€ |
| Net result | 15.9 M€ | 24.9 M€ | 11.6 M€ |
| Net current result | 5.0 M€ | 10.0 M€ | 4.9 M€ |
| Net current result excluding IAS 39 | 8.1 M€ | 8.5 M€ | 8.1 M€ |
| Distributable result | 13.1 M€ | 11.5 M€ | 11.0 M€ |
| Gross dividend | € 3.75 | € 3.50 | € 3.25 |
| Operating margin 1 | 68.07% | 69.53% | 71.14% |
| Operating margin before tax 2 | 28.21% | 55.50% | 32.19% |
| Net current margin 3 | 28.09% | 56.09% | 32.08% |
| Payout ratio4 | 88.93% | 93.03% | 88.37% |
(1) Operating result before portfolio result / Property result
(2) Result before tax and excluding portfolio result / Property result (3) Net result excluding porfolio result / Property result
(4) Dividend / Distributable result (based on the statutory accounts)
| Consolidated balance sheet | 2014 | 2013 | 2012 |
|---|---|---|---|
| Total assets | 331.8 M€ | 325.1 M€ | 270.4 M€ |
| Equity | 208.2 M€ | 195.0 M€ | 178.7 M€ |
| Total debt | 113.9 M€ | 124.8 M€ | 83.8 M€ |
| Debt ratio | 34.33% | 38.39% | 30.97% |
| Data per share1 | 2014 | 2013 | 2012 |
|---|---|---|---|
| Net asset value (before distribution) | € 66.15 | € 64.09 | € 58.73 |
| Net asset value excluding IAS 39 (before distribution) | € 68.69 | € 65.55 | € 61.11 |
| Property result | € 5.71 | € 5.86 | € 5.06 |
| Operating result before portfolio result | € 3.89 | € 4.07 | € 3.60 |
| Portfolio result | € 3.53 | € 4.90 | € 2.20 |
| Net result | € 5.14 | € 8.18 | € 3.82 |
| Net current result | € 1.61 | € 3.29 | € 1.62 |
| Net current result excluding IAS 39 | € 2.61 | € 2.79 | € 2.65 |
| Increase of value 2 | € 2.06 | € 5.36 | € 1.14 |
| Gross dividend | € 3.75 | € 3.50 | € 3.25 |
| Net dividend3 | € 3.1875 | € 2.975 | € 2.7625 |
| Return for the shareholder | € 5.81 | € 8.86 | € 4.39 |
| Return 4 | 9.10% | 15.09% | 7.60% |
(1) Calculated on the basis of the average number of shares with full righs, except with regard to the net asset value calculated while taking into account the number of shares at the end of the fiscal year, excluding the 12 912 shares held in auto-control by Home Invest Development (IAS 33 § 20).
(2) Difference between the net asset values at the beginning and at the end of the fiscal year.
(3) Based on 15% witholding tax.
(4) Return, divided by the net asset value at the beginning of the period.
At the end of 2014 Home Invest Belgium generates an operating result before the portfolio result of € 12.07 million.
The net current result amounts to € 4.98 million; the net current result excluding IAS 39 amounts to € 8.1 million in comparison with € 8.5 million in 2013.
The portfolio result – comprising the realized capital gains and the changes (in + and in -) in fair value of the buildings in operation – amounts to € 10.96 million in comparison with 14.9 million in 2013.
The distributable result – comprising the capital gains to distribute, realized during the financial year – increases with 14.13% and evolves from € 11.5 million in 2013 to € 13.1 million in 2014.
At the end of the fiscal year, the net asset value of the share amounts to € 66.15, an increase of 3.2%; the net asset value per share excluding IAS 39 amounts to € 68.69, an increase of 4.8%.
Finally, on 31 December 2014, last day of the stock exchange of the year, the closing share price of the share Home Invest Belgium on Euronext Brussels amounted to € 85.10, in comparison with the closing share price at the end tof 2013 of € 76, and represents a premium of 28.7% in comparison with the net asset value at the end of the fiscal year.
The board of directors has thus decided to propose to the ordinary general meeting of shareholders that will be held on next 5 May, to distribute a dividend of € 3.75 gross per share, compared to € 3.50 gross a year ago, or a growth per unit by 7%.
On a statutory basis, this remuneration corresponds to a pay out ratio of 88.93% (93.03% in 2013).
On 31 December 2014, Home Invest Belgium holds a portfolio of 73 buildings and 5 development projects of which the total fair value is estimated at € 322 million.
On the balance the fair value of the investment properties in operation and of the project developments amounts to € 316.5 million on 31 December 2014 compared to € 306.8 million on 31 December 2013, an increase of 3.17%.
The fair value of the investment properties in operation1 amounts to € 282.6 million compared to € 290.4 million the year before. The explanation for this decrease can be found in the sale of non-residential assets during the fiscal year.
The investment properties located in the Brussels Capital Region currently represent 66% of the portfolio, those in the Walloon Region represent 21.2% and those in the Flemish Region 12.8%.
The spread of the portfolio investment properties, calculated on the basis of the fair value of the buildings, is as follows:
(1) Excluding the buildings held for sale and the project developments.
The average occupancy rate for the entire 2014 financial year amounts to 94.01%, in comparison with 94.96% during the financial year 2013. This decrease is the result of the decision not to rent certain buildings of the portfolio destinated for a major renovation.
On 16 June Home Invest Belgium celebrated its fifteenth anniversary. On this occasion, the Brussels stock exchange held a bell ringing ceremony for the company.
On 1 September 2014, the FSMA (the Financial Services and Markets Authority) approved Home Invest Belgium as a public RREC (Regulated Real Estate Company) and approved all the documents which the company drafted in this context, subject to the approval of the change in status by an extraordinary general meeting.
The extraordinary general meeting of 25 September 2014 unanimously voted in favour of the change in status of the company from sicafi into RREC (a public Regulated Real Estate Company).
Home Invest Belgium is happy to benefit from this new status as it will allow the company to continue to operate as a residential real estate investor, in the interest of the company and its shareholders.
The share of residential buildings in Home Invest Belgium's portfolio has significantly increased in 2014. On 31 December 2014 it stood at 80.2%, thus exceeding the threshold of 80% and allowing the shareholders to benefit from the reduction in withholding tax on the dividends to be paid out as of 2015, according to the current legislation.
During financial year 2014, Home Invest Belgium diversified its sources of funding and significantly extended the average duration of its credit lines and interest rate hedging instruments.
Home Invest Belgium's bond issue was successful - closing on the first day of the subscription period. This bond issue was in the form of a private placement addressed to institutional investors to the amount of € 40 million with a maturity of 10 years, unreached before in the RREC sector. The final maturity date is 18 June 2024.
These bonds generate a fixed gross annual yield of 3.79%. The denominations of these bonds were fixed at € 100,000 with an issue price of 100%. The bonds were admitted to trading on Euronext Brussels as of 18 June 2014.
Thanks to the maturity of ten years, these bonds are an important step forward in extending the average duration of Home Invest Belgium's overall funding, at particularly attractive financial conditions.
Thanks to these agreements,
| Financing | Amounts of the confirmed credit lines (€) |
Withdrawal (€) | Average duration |
|---|---|---|---|
| Bank Financing | 105 M€ | € 70 M€ | 3 years and 7 months |
| BELFIUS | 25 M€ | € 25 M€ | 4 years and 1 months |
| BNP paribas fortis |
25 M€ | € 0 | 3 years and 5 months |
| ING | 30 M€ | € 20 M€ | 3 years and 9 months |
| LBLUX | 15 M€ | € 15 M€ | 2 years and 11 months |
| DEGROOF | 10 M€ | € 10 M€ | 3 years and 4 months |
| Bond issues | 40 M€ | € 40 M€ | 9 years and 6 months |
| Bond issue of 18/06/2014 | 40 M€ | € 40 M€ | 9 years and 6 months |
| Tota l |
145 M€ | € 110 M€ | 5 years and 2 months |
| Hedging instruments | Amount of the hedging instruments (€) |
Average duration |
|---|---|---|
| BELFIUS | 35 M€ | 5 years and 6 months |
| BNP paribas fortis |
25 M€ | 3 years and 5 months |
| ING | 40 M€ | 4 years and 8 months |
| IRS type hedging instruments | 100 M€ | 4 years and 8 months |
No financing or hedging instrument comes to an end in 2015.
On 31 December 2014 the average interest rate of the company amounted to 3.63%.
The consolidated debt ratio amounts to 34.33% on 31 December 2014, compared to 38.39% on 31 December 2013. Home Invest Belgium consequently has a debt capacity of nearly € 100 million without exceeding the 50%-level as of when, according to article 24 of the Royal Decree of 13 July 2014, the company should develop a financial plan under the control of the FSMA.
The company acquired a plot of land next to the project Reine Astrid at Kraainem. Hence the company can upgrade her initial project.
After obtaining the building permit Home Invest Belgium became the owner of the Ariane project at 208, avenue Marcel Thiry in 1200 Woluwé-Saint-Lambert. This building was acquired by the company through a contribution in kind by AXA Belgium SA on 11 June 2014 (in the framework of the authorised capital). This contribution was remunerated by the attribution of 104,666 new shares to AXA Belgium SA, which resulted in an increase of the company's capital of € 2,548,072.84. Following this transaction the company's share capital now amounts to € 76,949,294.75 represented by 3,160,809 shares.
> Project Maurice Charlent (Auderghem) > Project Ariane (Woluwé-Saint-Lambert)
Maurice Charlent Project – final acquisition of all the shares of SPRL Charlent 53 Leasehold and of SPRL Charlent 53 Freehold, the holders of the rights in rem in connection with a building located at 51-53, rue Maurice Charlent, in 1160 Auderghem - realisation of the condition subsequent of obtaining the final and executory building permits, not subject to any appeal
Following the receipt of the final and executory building permits mid-2014, not subject to any appeal, the acquisition of the shares of SPRL Charlent 53 Leasehold and SPRL Charlent 53 Freehold became final.
The conventional value of the full ownership of the property, based on which the price of the shares of these two companies was calculated, amounts to € 5.1 million 1 , whereas the total investment is estimated at € 11.2 million.
On 12 December 2014, the Board of Directors of Home Invest Belgium also approved the absorption of SPRL Charlent 53 Leasehold. This transaction is equivalent to a merger by absorption of the company, under articles 676, 719 and following of the Company Code, which implies that the merger has not been approved by an Extraordinary General Meeting of shareholders. Given that the entire capital of SPRL Charlent 53 Leasehold is now held by Home Invest Belgium, no new shares were created on the occasion of the merger, in accordance with Article 726 of the Company Code. The shares of Charlent 53 Leasehold were cancelled after its absorption.
Following this merger Home Invest Belgium became the direct holder of the long lease rights in connection with the Maurice Charlent building. The building is currently undergoing a major conversion programme, which will create 127 studio apartments.
This building is in very good condition, with 15 furnished apartments with some services, covering a total surface area of 1,341 sqm. The ground floor is occupied by two commercial spaces. The purchase price excluding costs amounts to € 3,5 million (in line with the valuation by the real estate expert) and the gross rental yield is more than 8% (which is in line with the valuation carried out by the independent real estate expert). The building is located near the Résidence Quartier Européen building, which is also owned by Home Invest Belgium. The proximity of these two buildings will allow Home Invest Belgium to optimise the building management for the two buildings.
During 2014 the five development projects for own account of the RREC have seen some significant progress.
The Trône project, which is situated on the corner of rue de la Pépinière and rue de Brederode in 1000 Brussels – 15 appartments: the structural work is completed, the roof has been raised and the insulation works and technical facilities are advancing well. The delivery of 15 apartments and an office space is scheduled for Q2 2015.
The Maurice Charlent project, on the corner of rue Maurice Charlent and rue Jean Cockx in 1160 Brussels – 127 studios: work began in July 2014. By the end of December 2014, the structural work was progressing well and the building site was ready to welcome the special technical companies. The 127 studio apartments will be finished and ready to welcome their first tenants by September 2015.
The Ariane project, at 208 avenue Marcel Thiry in 1200 Woluwé-Saint-Lambert – 166 apartments: the dismantling work started at the end of September 2014. By the end of December, the building had been completely dismantled and the structural work started.
The Marcel Thiry C project, at 204 C avenue Marcel Thiry in 1200 Woluwé-Saint-Lambert: the administrative process of the permit application has run its course. Planning permission was obtained during the last days of December 2014. Work on the building will start in the second half of 2015.
The Reine Astrid building, at 278 avenue Reine Astrid in 1950 Kraainem: the studies for submitting the application for planning permission continued. The application was submitted in Q4 2014. The public enquiry was organised in December 2014. Planning permission is expected to be approved during 2015.
The schedules and budgets of these projects were respected thanks to the close monitoring of the various projects by the development team.
(1) The acquisition price is not higher than the investment value, which was determined by the real estate surveyor.
During 2014, the Home Invest Belgium team continued to concentrate on increasing the share of residential property in the portfolio, while also ensuring that capital gains were created, which benefited the company's shareholders.
In this framework Home Invest Belgium sold the 25 Montoyer office building, in 1000 Brussels, for € 4.8 million excluding transfer taxes to the Kairos Group. This building is located in the Leopold neighbourhood in Brussels and has about 2,900 sqm of office space. The sales price was higher than the most recent investment value determined by the real estate surveyor. This sale allowed the company to book substantial capital gains compared with the buying price (€ 1.3 million).
On 27 November 2014, the company sold an office building located at 25 rue Belliard in 1000 Brussels for € 4.9 million, which is higher than the most recent fair value determined by the real estate surveyor of the company. Upon this sale a substantial capital gain has been realised compared to the acquisition price of the building (€ 1.8 million).
On 18 December 2014, in the framework of its desinvestment strategy, Home Invest Belgium sold the Adagio Hotel, at 12 rue de l'Industrie in 1000 Brussels, to the Kanam Group, which operated on behalf of its newly opened fund called LEADING CITIES INVEST. The hotel is operated by the Pierre & Vacances Group. The sales price was higher than the most recent fair value determined by Home Invest Belgium's real estate surveyor.
In accordance with its fourth strategic principle, namely the selective desinvestment of its portfolio, Home Invest Belgium has also continued to sell off assets unit per unit (generally apartments).
In 2014, the various sales during the year amounted to a volume of 9.22% of the fair value of the investment properties on 31 December 2013, resulting in a distributable result of € 4.96 million. This unusual volume can be explained by the RREC's aim to significantly increase the share of residential buildings in its portfolio, which is why it is divesting assets that do not belong in this category; the latest category represent 6.80% of the fair value of the investment properties on 31 December 2013.
| Summary of the sales | 2014 | 2013 | 2012 |
|---|---|---|---|
| Number of buildings sold | 9 | 13 | 17 |
| Net sales price (excl. transaction costs) | 31.6 M€ | 10.3 M€ | 12.5 M€ |
The various sales of financial year 2014 allowed the company to book a net realised capital gain of € 4.0 million compared with the most recent fair value of the sold buildings.
This amount allows the company to increase the result to be distributed to the shareholders for financial year 2014 and confirms the importance of disinvestment as a strategic approach for Home Invest Belgium.
The average occupancy rate 1 for the entire financial year 2014 continues to be high, namely 94.01%, but dropped slightly compared with financial year 2013 (94.96%). This slight drop can be explained in part by a rental market which remains difficult, especially the upscale end of it. At the same time, Home Invest Belgium also boldly chose to invest in major renovations in some of the buildings in its portfolio. To this end 15 houses in the Clos Saint-Géry in Ghlin, the residential Yser building in Etterbeek and the Léopold building in Liège were not rented out again. This obviously affects the overall occupancy rate of the portfolio. Should those buildings that are not ready to be rented be excluded, the average occupancy rate amounts to 95.08%.
Besides the development projects Home Invest Development also acts as a delegate project manager for the RREC's large renovation projects. In 2014, the implementation of the rejuvenation and optimisation policy of the buildings in the company's portfolio was accelerated. This trend will continue in the years to come.
The delivery of 6 supplementary apartments – built in the existing roof volume of the Galerie de l'Ange in Namur – took place during Q4 2014.
The far-reaching renovation of the houses in Clos Saint-Géry in Ghlin started and will continue in 2015. In Liège, architectural studies are ongoing for the Léopold and Saint-Hubert 4 building in view of the complete redesign of the apartments' structure.
Finally, an application for building permit permission was submitted for the renovation of the façades of the Charles Woeste Building in Jette. These works, as well as the renovation of the common areas and the shopping gallery are expected to start in 2015.
During financial year 2014 the RREC consolidated the technical, administrative and accounting management of the majority of its buildings in the Brussels-Capital Region, leaving the management of the other assets to rigorously selected external managers and trustees.
> Jourdan - Monnaies (Saint-Gilles) > Residence Mélopée (Molenbeek St Jean) > Odon Warland (Jette)
(1) The occupancy rate expresses the percentage of the rents generated by the occupied buildings, increased by the rental guarantees of the unoccupied buildings, in relation to the total amount of the rents of the occupied buildings and the estimated rental value (ERV) of the unoccupied buildings.
| 2014 | 2013 | |
|---|---|---|
| I. Rental income (+) | 18 941 328 | 19 353 320 |
| III. Rental-related expenses (+/-) | -183 360 | -252 403 |
| NET RENTAL RESULT | 18 757 968 | 19 100 917 |
| IV. Recovery of property charges (+) | 125 760 | 90 977 |
| V. Recovery of charges and taxes normally borne by the tenant on let properties (+) | 735 818 | 662 528 |
| VII. Charges and taxes normally borne by the tenant on let properties (-) | -1 877 271 | -2 021 064 |
| VIII. Other revenues and expenditures related to the renting (+/-) | -15 982 | -778 |
| PROPERTY RESULT | 17 726 293 | 17 832 578 |
| IX. Technical costs (-) | -1 240 741 | -1 110 397 |
| X. Commercial costs (-) | -256 272 | -539 042 |
| XI. Taxes and charges on unlet properties (-) | -113 423 | -255 581 |
| XII. Property management costs (-) | -2 922 621 | -2 557 758 |
| XIII. Other property charges (-) | -147 343 | -25 566 |
| Property costs |
-4 680 401 | -4 488 344 |
| PROPERTY OPERATING RESULT | 13 045 891 | 13 344 234 |
| XIV. General corporate expenses (-) | -945 034 | -682 319 |
| XV. Other operating income and charges (+/-) | -34 553 | -263 587 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 12 066 304 | 12 398 328 |
| XVI. Result on sale of investment properties (+/-) | 3 968 854 | 2 517 584 |
| XVIII. Changes in fair value of investment properties (+/-) | 6 990 080 | 12 387 402 |
| OPERATING RESULT | 23 025 238 | 27 303 314 |
| XX. Financial income (+) | 94 499 | 101 768 |
| XXI. Net interest charges (-) | -3 999 979 | -4 035 036 |
| XXII. Other financial charges (-) | -51 715 | -69 590 |
| XXIII. Changes in fair value of financial assets and liabilities | -3 107 691 | 1 501 542 |
| FINANCIAL RESULT | -7 064 885 | -2 501 317 |
| PRE-TAX RESULT | 15 960 353 | 24 801 997 |
| XXIV. Corporation tax (-) | -22 400 | 105 340 |
| TAXES | -22 400 | 105 340 |
| NET RESULT | 15 937 954 | 24 907 336 |
| NET RESULT ATTRIBUABLE TO THE OWNERS OF THE MOTHER COMPANY | 15 937 954 | 24 907 336 |
| NET RESULT PER SHARE | 5.14 | 8.18 |
| Average number of shares1 | 3 101 729 | 3 043 231 |
| NET CURRENT RESULT (excluding the items XVI. XVII. XVIII and XIX.) | 4 979 019 | 10 002 351 |
| NET CURRENT RESULT PER SHARE (excluding the items XVI. XVII. XVIII and XIX.) | 1.61 | 3.29 |
| NET CURRENT RESULT EXCLUDING IAS 39 (excluding the items XVI. XVII. XVIII XIX. and XXIII.) | 8 086 711 | 8 500 809 |
| NET CURRENT RESULT EXCLUDING IAS 39 PER SHARE (excluding the items XVI. XVII. XVIII XIX. and XXIII.) |
2.61 | 2.79 |
| PORTFOLIO RESULT (XVI. to XIX.) | 10 958 934 | 14 904 985 |
| PORTFOLIO RESULT PER SHARE (XVI. to XIX.) | 3.53 | 4.90 |
| DISTRIBUTABLE RESULT | 13 120 205 | 11 495 870 |
| DISTRIBUTABLE RESULT PER SHARE | 4.23 | 3.78 |
| Operating margin (Operating result before the portfolio result) / Property result | 68.07% | 69.53% |
| Operating margin before tax (Pre-tax result – portfolio result) / Property result | 28.21% | 55.50% |
| Net current margin (Net result – portfolio result) / Property result | 28.09% | 56.09% |
| Proposed dividend per share |
3.75 | 3.50 |
(1) Calculated excluding the 12 912 Home Invest Belgium treasury shares (IAS 33, paragraph 20).
The rental income amounts to € 18.9 million compared to € 19.4 million in 2013 (-2.13%), following the negative influence of the sales and renovations during this financial year. The rental-related expenses have decreased to € 0.2 million, namely under the influence of reductions in value on trade receivables which tend to fall. The net rental result consequently stands at € 18.8 million compared to € 19.1 million a year ago, a decrease of 1.8%.
The rental charges and taxes normally payable by the tenant mainly consist of the property tax paid by the RREC and remain unchanged at € 1.9 million. A part of these taxes (€ 0.7 million) could however be re-invoiced to certain tenants, in accordance with the applicable legislation (commercial spaces, offices, nursing homes). Consequently, the property result amounts to € 17.7 million compared to € 17.8 million a year ago, which represents a decrease of 0.6%.
The property operating result amounts to € 13.0 million, a decrease of 2.2% in comparison with the result of € 13.3 million recorded in 2013.
The RREC's general expenses include all charges not directly connected with the direct exploitation of the properties and managing of the company. They consist mainly of fees associated with the RREC's stock exchange listing and with its special legal status (NYSE Euronext Brussels, supervisory authority, subscription tax to the SPF Finances, expenses related to the change in status to RREC, etc.), the fees due to the Auditor, to advisors and to the RREC's approved property surveyor. They have increased in comparison with 2013 and amount to € 0.9 million, of which € 0.2 million are costs related to the obtention of the new status as a RREC.
This results in an operating result before the portfolio result of € 12.1 million in comparison with the result recorded at the end of 2013 (€ 12.4 million).
The result on the portfolio is again positive with € 11.0 million, compared to the result of 2013 of € 14.9 million. This very good result of 2014 can be explained, on the one hand, by the positive change in fair value of the investment properties for an amount of € 7.0 million (€ 12.4 million in 2013), but also by the important realized capital gains that amount to € 4.0 million in 2014 (compared to € 2.5 million in 2013). This substantial result shows, once again, that Home Invest Belgium succeeds in creating recurring capital gains to the benefit of its shareholders. The operating result, after taking into account the portfolio result, thus amounts to € 23.0 million, in comparison with
€ 27.3 million for 2013.
After taking into account the financial charges and taxes, the net result of Home Invest Belgium, under influence of purely latent elements, fell by 36.0%, evolving from € 24.9 million in 2013 to € 15.9 million in 2014. The net current result amounts to € 4.9 million, influenced by the negative change in fair value of the hedges (impact IAS 39).
The net current result excluding IAS 39 reflects the company's operational profitability, without purely latent factors and amounts to € 8.1 million. The distributable result rises by 14.1%, evolving from € 11.5 million in 2013 to € 13.1 million in 2014.
> Jourdan 85 (Saint-Gilles) > Louvain-la-Neuve
| ASSETS | 2014 | 2013 |
|---|---|---|
| I. Non-current assets | 317 610 294 | 307 933 429 |
| B. Intangible assets | 11 891 | 16 049 |
| C. Investment properties | 316 492 961 | 306 753 952 |
| D. Other tangible assets | 190 973 | 122 902 |
| E. Non-current financial assets | 69 440 | 76 012 |
| F. Finance lease receivables | 845 029 | 964 515 |
| II. Current assets | 14 170 877 | 17 166 414 |
| A. Assets held for sale | 5 810 465 | 9 402 061 |
| C. Finance lease receivables | 119 486 | 112 237 |
| D. Trade receivables | 2 694 041 | 3 199 473 |
| E. Tax receivables and other current assets | 312 992 | 296 970 |
| F. Cash and cash equivalents | 4 925 898 | 3 882 740 |
| G. Deferred charges and accrued income | 307 995 | 272 933 |
| TOTAL ASSETS | 331 781 170 | 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 (+/-) | 103 516 959 | 90 909 201 |
| c. Reserve from estimated transfer costs and rights resulting from hypothetical disposal of investment properties (-) |
-27 561 611 | -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 (+/-) |
-1 098 342 | -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 (+/-) | 15 926 094 | 12 446 842 |
| D. Net result of the financial year | 15 937 954 | 24 907 336 |
| SHAREHOLDERS' EQUITY | 208 224 230 | 195 025 808 |
| LIABILITIES | ||
| I. Non-current liabilities | 117 633 818 | 79 471 529 |
| B. Non-current financial debts | 109 627 454 | 75 000 000 |
| C. Other non-current financial liabilities | 8 006 364 | 4 471 529 |
| II. Current liabilities | 5 923 123 | 50 602 505 |
| B. Current financial debts | 644 327 | 47 382 687 |
| D. Trade debts and other current debts | 3 509 489 | 2 290 190 |
| E. Other current liabilities | 119 654 | 120 734 |
| F. Accrued charges and deferred income | 1 649 654 | 808 895 |
| LIABILITIES | 123 556 941 | 130 074 035 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 331 781 170 | 325 099 843 |
| Number of shares at the end of the period1 | 3 147 897 | 3 043 231 |
| Net asset value | 208 224 230 | 195 025 808 |
| Net asset value per share | 66.15 | 64.09 |
| EPRA NAV2 | 68.69 | 65.55 |
| Indebtedness | 113 900 923 | 124 793 611 |
| Debt ratio | 34.33% | 38.39% |
(1) Number of shares at the end of the period is calculated with the exclusion of 12 912 held in auto-control and including the 104 666 new shares created 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.
The board of directors will propose to the ordinary general meeting of shareholders of 5 May 2015 to distribute a gross dividend of € 3.75 per share. This distribution illustrates again a remarkable gain of 7.1% regarding the gross dividend of € 3.50 distributed in 2013. The payout ratio of 88.93%, at a statutory level, remains excellent.
Since 1 January 2013, following the legislation that is currently applicable, this dividend is subject to withholding tax of 15%.
The dividend will be payable as of 15 May 2015 by automatic transfer to holders of registered or dematerialised shares, and at branches of BNP Paribas Fortis upon presentation of coupon no 18.
The table below reproduces the key figures of the shares of the last years:
| 2014 | 2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|
| Share price | |||||
| Highest | € 87.00 | € 82.35 | € 72.00 | € 67.99 | € 61.50 |
| Lowest | € 73.50 | € 69.27 | € 62.90 | € 58.87 | € 53.00 |
| On the last day of the financial year | € 85.10 | € 76.00 | € 71.00 | € 64.05 | € 60.50 |
| Average price | € 80.91 | € 76.03 | € 68.59 | € 62.99 | € 56.60 |
| Return of the gross dividend1 | 4.41% | 4.61% | 4.58% | 4.68% | 5.45% |
| Dividend | |||||
| Gross | € 3.75 | € 3.50 | € 3.25 | € 3.00 | € 2.75 |
| Net 2 | € 3.1875 | € 2.975 | € 2.7625 | € 3.00 | € 2.75 |
| Volume | |||||
| Average daily volume | 996 | 703 | 1 136 | 902 | 833 |
| Annual volume | 254 159 | 179 166 | 289 644 | 222 912 | 201 493 |
| Total number of shares on 31 December | 3 160 809 | 3 056 143 | 3 056 143 | 3 056 143 | 2 931 334 |
| Market capitalisation on 31 December | 269 M€ | 232 M€ | 217 M€ | 197 M€ | 171 M€ |
| Free float | 46.59% | 50.24% | 47.01% | 46.83% | 49.65% |
| Velocity 3 | 17.26% | 11.67% | 20.16% | 15.40% | 13.85% |
| Pay out ratio (statutory) | 88.93% | 93.03% | 88.37% | 84.61% | 89.06% |
(1) Gross dividend of the financial year divided by the last share price of the financial year. (2) The witholding tax stands at 15% as from 1 January 2013.
(3) Number of shares traded / free float.
Based namely on the transparency statements received by Home Invest Belgium from the shareholders owning more than 3% of the company capital and on the information recorded in the register of nominative shareholders, the total known shareholding structure of Home Invest Belgium on 22 January 2015 looks as follows:
| Shareholders | Number of shares | In % of capital |
|---|---|---|
| Van Overstraeten Group | 737 553 | 23,33% |
| BMVO 2014 (SDC) | 510 960 | 16.17% |
| Stavos Luxemburg | 118 455 | 3.75% |
| VOP SA | 102 575 | 3.25% |
| Mr Hans Van Overstraeten | 2 892 | 0.09% |
| Mr Johan Van Overstraeten | 856 | 0.03% |
| Mr Bart Van Overstraeten | 855 | 0.03% |
| Mr Liévin Van Overstraeten | 850 | 0.03% |
| COCKY SA | 110 | 0.00% |
| AXA Belgium SA | 537 830 | 17.02% |
| Mr Antoon Van Overstraeten | 121 916 | 3.86% |
| Federal Insurance | 105 296 | 3.33% |
| Mr and Mrs Van Overtveldt - Henry de Frahan | 102 792 | 3.25% |
| Mr Serge Van Overtveldt | 51 396 | 1.63% |
| Mrs Patricia Henry de Frahan | 51 396 | 1.63% |
| Other registered shareholders | 74 877 | 2.37% |
| Total known | 1 680 264 | 53.16% |
| Free Float | 1 480 545 | 46.84% |
| General total | 3 160 809 | 100.00% |
No significant events occurred after the closing of the financial year.
Notwithstanding the uncertainty in relation to the actual economic situation and its impact on the activities of Home Invest Belgium, the Board of directors confirms its confidence in the continuance of the growth of the results of the company. In early 2015, the company has pursued its activities, namely the research for new acquisitions, development projects, the management of its portfolio and the arbitrage of buildings available for sale.
The income of the company comes from, on the one hand, the letting of its properties and on the other hand, a selective regular arbitrage of part (± 4%) of its portfolio. The letting market is supported by the demographic growth in the large Belgian cities, that suffers however from a very low level of inflation, leading to the non-indexation of the rents. The sales market is supported by low interest rates that increase the leverage capacity of families.
The statutory auditor, Karel Nijs, has completed his audit and confirmed that the accounting information contained in this press release 1 calls for no reservation on his part and that he will deliver a statement without reservations.
| 2015 | |
|---|---|
| Online publication of the annual financial report on the website | Thursday 2 April 2015 |
| Ordinary Shareholder's meeting of the 2014 financial year | Tuesday 5 May 2015 |
| Interim statement: results on 31 March 2015 | Tuesday 5 May 2015 |
| Dividend payment for the 2014 financial year | Friday 15 May 2015 |
| Half-year financial report: results on 30 June 2015 | Thursday 3 September 2015 |
| Interim statement: results on 30 September 2015 | Thursday 29 October 2015 |
| 2016 | |
| Press release year results 2015 | Thursday 25 February 2016 |
| Online publication of the annual financial report on the website | Thursday 7 April 2016 |
| Ordinary Shareholder's meeting of the 2015 financial year | Tuesday 3 May 2016 |
| Interim statement: results on 31 March 2016 | Tuesday 3 May 2016 |
| Dividend payment for the 2015 financial year | Friday 13 May 2016 |
Sophie Lambrighs Chief Executive Officer Home Invest Belgium SA Boulevard de la Woluwe 60/4 B – 1200 Brussels Tel: +32.2.740.14.51 E-mail: [email protected]
Home Invest Belgium is a residential Regulated Real Estate Company (GVV/SIR) established in 1999 and listed on the regulated market of NYSE Euronext Brussels (HOMI).
On 31 December 2014, its portfolio consisted of 73 buildings and 5 development projects for an overall fair value estimated at ± € 322 million.
The income of the company comes from the renting of its portfolio (±1 300 residential units) and from the selective arbitrage of a part (±4%) of its portfolio.
Home Invest Belgium's activities are regulated by the Financial Services and Markets Authority (FSMA).
On 31 December 2014, the total market capitalization of Home Invest Belgium amounted to € 269 million.
(1) This statement cannot, however, be considered as an opinion on the completeness or adequacy of the information published in this press release.
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