Earnings Release • Nov 17, 2022
Earnings Release
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Under embargo until 17/11/2022 5:40 PM Regulated information
| EPRA earnings per share | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| 9 months | € 0.50 | € 0.60 | € 0.70 | € 0.77 |
| Full year | € 0.77 | € 0.89 | € 0.99 |
| 1. | Real estate portfolio | p.4 | |
|---|---|---|---|
| 2. | Consolidated key figures | p.5 | |
| 3. | Notes to the consolidated key figures | p.7 | |
| 3.1. | Notes to the consolidated income statement | p.7 | |
| 3.2. | Notes to the consolidated balance sheet | p.8 | |
| 3.3. | Funding structure | p.9 | |
| 4. | Activities in the first 9 months of 2022 | p.11 | |
| 4.1. | Rental activities | p.11 | |
| 4.2. | Acquisitions | p.11 | |
| 4.3. | Development and refurbishment projects | p.12 | |
| 4.4. | Share split | p.14 | |
| 4.5. | ABB – strengthening of equity by 30.00 million | p.14 | |
| 4.6. | HOMI-share included in EPRA-index | p.14 | |
| 5. | Distribution to the shareholders | p.15 | |
| 6. | Outlook | p.15 | |
| 7. | APM – Alternative performance measures | p.16 | |
| 8. | Shareholder's calendar | p.20 |
On 30 September 2022, Home Invest Belgium holds a real estate portfolio1 of € 754.52 million, compared to € 725.47 million on 31 December 2021, or an increase of 4.0%.
| REAL ESTATE PORTFOLIO | 30/09/2022 | 31/12/2021 |
|---|---|---|
| Fair value of investment properties | € 728,84 m | € 702,23 m |
| Investment properties available for rent | € 690,43 m | € 659,81 m |
| Development projects | € 38,41 m | € 42,42 m |
| Investments in associated companies and joint ventures | € 25,68 m | € 23,23 m |
| TOTAL | € 754,52 m | € 725,47 m |
The fair value of the investment properties available for rent amounts to € 690.43 million across 50 sites.
The total contractual annual rents and the estimated rental value of vacant space amounts to € 34.19 million as at 30 September 2022.
The investment properties available for rent are valued by independent real estate experts at an average gross rental yield2 of 5.0%.
Residential properties accounted for 91.7% of investment properties available for rent on 30 September 2022.
On 30 September 2022, 68.2% of the investment properties available for rent are located in the Brussels Capital Region, 11.1% in the Walloon Region, 10.7% in the Flemish Region and 10.0% in The Netherlands.
1 The estate portfolio consists of (i) investment properties and (ii) investments in associated companies and joint ventures equity method.
2 Gross rental yield = (contractual gross rents on a yearly basis + estimated rental value on vacant spaces) / (fair value of the investment properties available for rent).
| CONSOLIDATED KEY FIGURES | (in k €) | |
|---|---|---|
| INCOME STATEMENT | 30/09/2022 | 30/09/2021 |
| NET RENTAL INCOME | 22.872 | 20.015 |
| OPERATIONAL RESULT BEFORE PORTFOLIO RESULT | 15.888 | 13.848 |
| OPERATING MARGIN3 | 69,5% | 69,2% |
| XVI. Result on the sale of investment properties | -33 | 431 |
| XVIII. Changes in fair value of investment properties | 1.615 | 17.609 |
| XIX. Other portfolio result | -802 | 756 |
| PORTFOLIO RESULT | 780 | 18.796 |
| OPERATING RESULT | 16.669 | 32.644 |
| XX. Financial income | 55 | 46 |
| XXI. Net interest charges | -3.895 | -3.312 |
| XXII. Other financial charges | -66 | -75 |
| XXIII. Changes in fair value of financial assets and liabilities | 31.920 | 2.107 |
| FINANCIAL RESULT | 28.014 | -1.234 |
| XXIV. Share in the profit of associated companies and joint ventures | 3.679 | 1.629 |
| TAXES | -192 | -162 |
| NET RESULT | 48.170 | 32.876 |
| Exclusion of portfolio result | -780 | -18.796 |
| Exclusion of changes in real value of financial assets and liabilities | -31.920 | -2.107 |
| Exclusion of non-EPRA elements of the share in the result of associated companies and joint ventures | -2.526 | -471 |
| EPRA EARNINGS 4 | 12.944 | 11.502 |
| Average number of shares 5 | 16.877.831 | 16.442.507 |
| NET RESULT PER SHARE (in €) | 2,85 | 2,00 |
| EPRA EARNINGS PER SHARE (in €) | 0,77 | 0,70 |
3 Operating margin = (operating result before portfolio result)/(net rental result).
4 EPRA earnings is the net result excluding the (i) portfolio result (ii) the changes in the fair value of financial assets and liabilities and (iii) the non-EPRA elements of the share in the result of associated companies and joint ventures. This term is used in accordance with the Best Practices Recommendations of EPRA.
5 The average number of shares is calculated excluding the 131.275 shares held by the company.
| BALANCE SHEET | 30/09/2022 | 31/12/2021 |
|---|---|---|
| Shareholders' equity (attributable to shareholders of parent company) | 415.874 | 342.950 |
| Total assets | 798.928 | 737.012 |
| Debt ratio (RREC Royal Decree) 6 | 50,33% | 53,65% |
| Debt ratio (IFRS) 7 | 49,07% | 52,49% |
| 30/09/2022 | 31/12/2021 |
|---|---|
| 17.785.785 | 16.433.930 |
| 25,56 | 24,40 |
| 23,38 | 20,87 |
| 9,3% | 16,9% |
| 21,74 | 20,99 |
| 17,6% | 16,2% |
6 The debt ratio (RREC Royal Decree) is the debt ratio calculated in accordance with RREC Royal Decree. This means that for the purposes of calculations of the debt ratio, participations in associated companies and joint ventures are processed following the proportionate consolidation method.
7 The debt ratio (IFRS) is calculated like the debt ratio (RREC Royal Decree) but based on and conciliating with a consolidated balance in accordance with IFRS where participations in joint ventures and associated companies are processed following the changes in equity.
8 The average number of shares is calculated excluding the 131.275 shares held by the company.
9 IFRS NAV per share = Net Asset Value or Net Value per share according to IFRS.
10 EPRA NTA per share = Net Asset Value or Net Value per share following the Best Practices Recommendations of EPRA.
The net rental income increased to € 22.87 million during the first 9 months of 2022, compared to € 20.02 million during the first 9 months of 2021.
The operating result before the portfolio result amounted to € 15.89 million during the first 9 months of 2022 (compared to € 13.89 million during the first 9 months of 2021).
The operating margin11 has increased to 69.5 % during the first 9 months of 2022 (compared to 69.2% during the first 9 months of 2021.
During the first 9 months of 2022, Home Invest Belgium achieved a portfolio result of € 0.78 million.
The result on the sale of investment properties amounted to € -0.03 million during the first 9 months of 2022.
In addition, during the first 9 months of 2022, Home Invest Belgium recorded a positive change in the fair value of its real estate investments amounting to € 1.62 million.
The other portfolio result amounts to € -0.80 million. In this item, the changes in deferred taxes are recorded.
The net interest charges amounted to € 3.90 million in the first 9 months of 2022. The average cost of debt12 amounted to 1.71% during the first 9 months of 2022.
The changes in the fair value of the financial assets and liabilities amounted to € 31.92 million during the first 9 months of 2022. These changes are the consequence of a change in the fair value of the interest rate swaps.
Taxes amounted to € -0.19 million during the first 9 months of 2022 (compared to € -0.16 million during the first 9 months of 2021).
The net result (group share) of Home Invest Belgium amounted to € 48.17 million during the first 9 months of 2022, or € 2.85 per share.
11 Operating margin = (operating result before portfolio result)/(net rental result).
12 The average funding cost is = the interest costs including the credit margin and the cost of hedging instruments and increased by capitalised interests divided by the weighted average financial debt over the period.
After adjustment of the net result for (i) the portfolio result, (ii) the changes in the fair value of the financial assets and liabilities, and (iii) the non-EPRA elements of the share in the result of associated companies and joint ventures, EPRA earnings amount to € 12.94 million during the first nine months of 2022, an increase of 12.5% (compared to € 11.50 million during the first 9 months of 2021).
EPRA earnings per share increased by 9.6% from € 0.70 during the first 9 months of 2021 to € 0.77 during the first 9 months of 2022.
On 30 September 2022, the shareholder's equity of the group stood at € 415.87 million, which is an increase of 21.3% compared to € 342.95 million on 31 December 2021.
The IFRS NAV per share has risen by 12.0% to stand at € 23.38 on 30 September 2022 (compared to € 20.87 on 31 December 2021).
EPRA NTA per share has risen by 3.6% to stand at € 21.74 on 30 September 2022 (compared to € 20.99 on 31 December 2021).
The debt ratio (RREC Royal Decree) amounted to 50.33% at 30 September 2022. The debt ratio (IFRS) amounted to 49.07%.
Considering a maximum permitted debt ratio of 65%, Home Invest Belgium still has a debt capacity of € 328.97 million, as defined by the RREC Royal Decree, in order to fund new investments.
Considering Home Invest Belgium's strategy to keep the debt ratio in the medium and long term below 55%, Home Invest Belgium still has a debt capacity of € 81.37 million to fund new investments.
On 30 September 2022, Home Invest Belgium had € 371.00 million in financial debts composed of:
The weighted average remaining duration of the financial debts amounts to 4.8 years.
On 30 September 2022, Home Invest Belgium disposed of € 60.00 million of undrawn available credit lines, of which:
On 30 September 2022, 94.9% of financial debts (€ 352.0 million) had a fixed interest rate, using Interest Rate Swaps as hedging instruments, among other things.
The fixed interest rates have a weighted average remaining duration of 5.5 years.
The total value of the hedges at closing date was positive for an amount of € 31.00 million due to an increase in interest rates after conclusion of the hedges.
Through its hedging policy, the board of directors wishes to protect the company against potential increases in interest rate.
The average occupancy rate13 of the investment properties available for rent amounted to 98.0% during the first nine months of 2022 (compared to 96.9% over the same period in 2021).
Home Invest Belgium signed a purchase agreement with neighbourhood developer Matexi for the shell building 'Block D' in the new Quartier Bleu neighbourhood in Hasselt in October 2022. The building, ideally located on the Kanaalkom in Hasselt, is part of a comprehensive project on the Blauwe Boulevard. Block D provides space for 37 residential units and has a communal roof garden. The flats will be purchased in shell condition, and Home Invest Belgium will take care of the further finishing. The annual rental income at full occupancy is estimated at ± € 450,000. The total investment value including finishing will be around € 10.5 million. Completion is scheduled for 2023.
13The average occupancy rate calculated as the average percentage over a certain period of time of the contractual rents of the rented spaces, in relation to the sum of the contractual rents of the rented spaces and the estimated rental value of the vacant spaces. The occupancy rate is calculated excluding (i) buildings being renovated (ii) buildings being commercialised for the first time and (iii) buildings being sold.
The Fairview project (Marcel Thirylaan 204 in 1200 Sint-Lambrechts-Woluwe) was completed in March 2022. The project consists of 42 spacious flats with parking. The project meets the strong demand for high-quality, sustainable housing in a pleasant living environment. The building is very energy efficient with an expected energy consumption of only 44 kWh/m² per year and an EPC A label.
In June 2022, Home Invest Belgium finalised the complete renovation of residence RQE. Located in the European district in Brussels, the project covers 3 adjacent buildings located at Rue Joseph II 82-86, Rue Stevin 19- 23 and Rue Philippe Le Bon 6-10.
The residence consists of 39 flats, a co-living area with 24 rooms, and 50 covered parking spaces. The co-living area is operated by Colonies on the basis of a fixed long-term lease. The residential units are heated with heat pumps to save energy and avoid fossil fuels.
In June 2022, Home Invest Belgium obtained the building permit for the redevelopment of an existing office building into 46 flats and 61 parking spaces located at Rue Jourdan 95, 1060 Sint-Gillis.
Completion of the project is expected by Q4 2024.
In November 2021, Home Invest Belgium purchased from Atenor building plot LOT 4 of the CITY DOX project in Anderlecht.
Ideally located just off the Vaartdijk in Anderlecht, LOT 4 is part of the large-scale CITY DOX project along the Brussels-Charleroi canal. LOT 4 will be developed into 163 residential units and 2,700 m² of space for production.
Construction is in full swing and completion is expected by Q4 2024.
In June 2021, Home Invest Belgium reached an agreement with Immobel and BPI Real Estate, the developers of the Key West project, to acquire Building A, subject to the usual condition precedent that the permit becomes definitively enforceable.
The site next to the Biestebroek dock is part of a mixed-use project in an ideal location on the edge of the city centre. Building A comprises 101 residential units and 840 m² of commercial space.
The Samberstraat project in Antwerp consists of the construction of 37 flats, 1 office space, 38 parking spaces and 88 bike sheds.
Home Invest Belgium has started the works and foresees completion in Q4 2023.
The Niefhout project consists of the development, in collaboration with ION, of a residential project consisting of 92 residential units, 47 parking spaces, 32 bicycle parking spaces and a commercial space.
Provisional completion of the works is scheduled for Q2 2023.
Home Invest Belgium has started the total renovation of the residential part (an area of 4,323 m²) of Galerie de l'Ange in Namur (rue de la Monnaie 4-20 in 5000 Namur). A total of 57 units will be renovated.
Completion is expected in Q2 2023.
To promote the marketability of the share, the company split its share by a factor of 5 on 15 June 2022.
On 28 June 2022, the company issued 1.417.770 new shares as part of a capital increase by accelerated placement (ABB). The gross proceeds of the transaction amounted to € 30.00 million. The issue price was € 21.16, representing a discount of 4.0% to Home Invest Belgium's closing price on the evening before the launch of the offer, and corresponding to the EPRA NTA per share of 31 March 2022.
On 29 September 2022, the HOMI share was included in the FTSE EPRA NAREIT Global Real Estate Index (EPRA index). The inclusion of the HOMI share in the EPRA index will contribute to the visibility and tradability of the share.
Given the company's solid operating results of the company, the board of directors has decided to pay an interim dividend of € 0.8500 per share. Coupon no. 35 will entitle the holder to an interim dividend of € 0.8500 gross or € 0.5950 net per share (after deduction of the current withholding tax of 30%). The interim dividend will be paid on 9 December 2022.
The final dividend will be decided by the annual general meeting in May 2023, on the proposal of the board of directors.
For the full financial year 2022 and for the following years, the board of directors envisages a distribution policy based on an average increase equal to or greater than inflation. The board of directors bases this on:
Furthermore, the board of directors points to the significant reserves the company has built up over the years as a safety buffer for the future.
During the first 9 months of 2022, the operational results of Home Invest Belgium have developed positively.
The residential rental market continues to grow steadily in those cities where Home Invest Belgium is active, mostly thanks to:
Home Invest Belgium owns a sustainable portfolio given its young age. More than 50% of the investment properties available for rent are younger than 10 years. Given the quality and the location of the properties in predominantly large urban areas, Home Invest Belgium is well positioned to take on a leading role in the favourable trends of the residential market.
Against this background, the board of directors confirms its confidence in the long-term prospects of the company.
For 2022, Home Invest Belgium expects an increase in EPRA earnings per share to € 1.04 (compared to € 0.99 in 2021).
Home Invest Belgium uses Alternative Performance Measures (APM) within the meaning of the Guidelines issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 in its financial communication for many years. A number of these APMs are recommended by the European Public Real Estate Association, EPRA, while others were established by the sector or by Home Invest Belgium itself to provide the reader with a better understanding of the company's results and performances.
Performance indicators that are defined by the IFRS or by law, and indicators that are not based on items in the income statement or the balance sheet, are not considered to be APMs.
This is the percentage of financial debt with a fixed interest rate compared to the total financial debt. The numerator corresponds to the sum of fixed-rate borrowing plus floating-rate debts after conversion into fixedrate debts via IRS contracts in effect at the end of the financial year. The denominator corresponds to the total amount of financial debt drawn on the closing date.
A significant portion of the company's financial debts are concluded at floating rates. This APM is used to measure the risk associated with interest rate fluctuations and its potential impact on the results.
| (in € k) | 30/09/2022 | 31/12/2021 |
|---|---|---|
| Fixed-rate financial debt | 129.000 | 129.000 |
| Floating-rate financial debts converted into fixed-rate debt via IRS | 223.000 | 223.000 |
| Total fixed-rate debt | 352.000 | 352.000 |
| Total floating-rate debt | 19.000 | 30.000 |
| Total debt | 371.000 | 382.000 |
| Hedging ratio | 94.88% | 92,15% |
The interest costs (including the credit margin and the cost of the hedging instruments) divided by the weighted average financial debt over the period in question. The numerator corresponds to the sum of the net interest costs included in item XXI of the income statement, after addition of the capitalized interest. The denominator corresponds to the average amount of financial debt calculated over the period.
The company is partly financed by debt. This APM is used to measure the average cost of the interests paid.
| (in € k) | 30/09/2022 | 30/09/2021 |
|---|---|---|
| Net interest charges (heading XXI) | 3.895 | 3.312 |
| Capitalized interests | 935 | 585 |
| Total cost of financial debt | 4.830 | 3.897 |
| Weighted average amount of debt | 282.238 | 246.167 |
| Average cost of debt | 1,71% | 1,58% |
EPRA published the new Best Practice Recommendations for financial disclosures of listed real estate companies in October 2019. EPRA NAV is being replaced by three new Net Asset Value indicators: EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net Disposal Value (NDV). The EPRA NAV indicators are obtained by adjusting the IFRS NAV in such a way that any shareholders receive the most relevant information about the value of the company's assets and liabilities.
| 30/09/2022 | ||||
|---|---|---|---|---|
| (in € k) | EPRA NTA | EPRA NRV | EPRA NDV | |
| IFRS NAV (shareholders of the group) | 415.874 | 415.874 | 415.874 | |
| (v) | Deferred taxes in respect of increases in the fair value of investment properties |
2.448 | 2.448 | |
| (vi) | Fair value of financial instruments | -31.085 | -31.085 | |
| (viii.b) | Intangible fixed assets | -578 | ||
| (x) | Fair value of fixed rate debt | -2.264 | ||
| (xi) | Transfer taxes | 23.617 | ||
| NAV | 386.659 | 410.854 | 413.610 | |
| Number of shares | 17.785.785 | 17.785.785 | 17.785.785 | |
| NAV per share | 21,74 | 23,10 | 23,26 |
| 31/12/2021 | ||||
|---|---|---|---|---|
| (in € k) | EPRA NTA | EPRA NRV | EPRA NDV | |
| IFRS NAV (shareholders of the group) | 342.950 | 342.950 | 342.950 | |
| (v) | Deferred taxes in respect of increases in the fair value of investment properties |
1.634 | 1.634 | |
| (vi) | Fair value of financial instruments | 890 | 890 | |
| (viii.b) | Intangible fixed assets | -496 | ||
| (x) | Fair value of fixed rate debt | -2.264 | ||
| (xi) | Transfer taxes | 21.834 | ||
| NAV | 344.981 | 367.317 | 340.686 | |
| Number of shares | 16.440.930 | 16.440.930 | 16.440.930 | |
| NAV per share | 20,99 | 22,27 | 20,73 |
The EPRA earnings is the net result (share group) excluding the (i) portfolio result, (ii) the changes in the fair value of financial assets and liabilities, and (iii) the non-EPRA elements of the share in the results of associated companies and joint ventures. The term is used in accordance with the Best Practices Recommendations of EPRA.
This APM measures the underlying operational result of the company, without regard to the result of the change in the value of the assets or liabilities on the portfolio, gains or losses on the sale of investment properties and the other result of the portfolio.
| (in € k) | 30/09/2022 | 30/09/2021 |
|---|---|---|
| NET RESULT (GROUP SHAREHOLDERS) (IFRS) | 48.170 | 32.876 |
| - Excluding: results of sale of investment properties (ii) | +33 | -431 |
| - Excluding: changes in the fair value of properties (i) | -1.615 | -17.609 |
| - Excluding: other portfolio result (viii) | +802 | -756 |
| - Excluding: variations in the fair value of financial assets and liabilities (vi) | -31.920 | -2.107 |
| - Excluding: non-EPRA elements in the share of the result of associated companies and | ||
| - joint ventures (ix) | -2.526 | -471 |
| EPRA EARNING | 12.944 | 11.502 |
| Average number of shares | 16.877.831 | 16.442.507 |
| EPRA EARNINGS PER SHARE | 0,77 | 0,70 |
This alternative performance indicator measures the company's operational profitability as a percentage of rental income and is calculated by dividing the "operating result before the result on the portfolio" by "the net rental result".
This APM is used to assess the operating performance of the company.
| (in € k) | 30/09/2022 | 30/09/2021 |
|---|---|---|
| Operating result before portfolio result | 15.888 | 13.848 |
| Net rental result | 22.872 | 20.015 |
| Operating margin | 69,47% | 69,19% |
| 2022 | |
|---|---|
| Interim statement: results at 30 September 2022 | Thursday 17 November 2022 |
| Interim dividend for the financial year 2022 – Ex date | Wednesday 7 December 2022 |
| Interim dividend for the financial year 2022 – Record date | Thursday 8 December 2022 |
| Interim dividend for the financial year 2022 – Payment date | Friday 9 December 2022 |
| 2023 | |
|---|---|
| Annual press release on the financial year 2022 | Thursday 16 February 2023 |
| Publication of the annual financial report on the website | Friday 31 March 2023 |
| Ordinary general meeting of the financial year 2021 | Tuesday 2 May 2023 |
| Final dividend for the financial year 2021 – Ex date | Monday 8 May 2023 |
| Final dividend for the financial year 2021 – Record date | Tuesday 9 May 2023 |
| Final dividend for the financial year 2021 – Payment date | Wednesday 10 May 2023 |
| Interim statement: results at 31 March 2022 | Wednesday 17 May 2023 |
| Half-year financial report: results at 30 June 2022 | Wednesday 6 September 2023 |
| Interim statement: results at 30 September 2022 | Wednesday 15 November 2023 |
Sven Janssens Chief Executive Officer Preben Bruggeman Chief Financial Officer
Tel: +32.2.740.14.51 E-Mail: [email protected] www.homeinvestbelgium.be Home Invest Belgium Boulevard de la Woluwe 46, Box 11 B – 1200 Brussel
Home Invest Belgium has been listed on Euronext Brussels [HOMI] since 1999. On 30 September 2022, the market capitalisation amounted to € 458 million. The share is included in the BEL Mid Index and the FTSE EPRA NAREIT Global Real Estate Index.
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