Earnings Release • Feb 22, 2011
Earnings Release
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Regulated information - embargo untill 22/02/2011, 8.15 am
Antwerp, 22 February 2011
Gross dividend per share: € 1,83 (-15 %) Operating distributable result decrease by 15 % Decrease in fair value of the real estate portfolio by 1,6 %1 Low debt ratio: 43 %
Intercity Business Park - Malines
2010 has been a difficult year in the Belgian office market and the logistic real estate market. The rents have slightly decreased and the take-up for offices as well as for semi-industrial and logistics buildings has been lower then in the years before the financial crisis.
A positive signal is however that in 2010 the business survey of the National Bank of Belgium shows a strong recovery of the trade and services to corporates. Due to the late cyclic character of the real estate sector, this recovery has had till now only a limited effect on the rental demand for real estate in 2010.
Compared to 2009, the number of demands for lettings increases in the office market but because of the large offer of offices on the Belgian office market, the lettings still occurs with considerable financial incentives. It is expected that in 2011 the rents will remain stable and will even slightly increase. Besides, in newer buildings a decrease of rental incentives is already noticeable. On 31 December 2010, the occupancy rate2 of the office portfolio of Intervest Offices amounts to 85 %, which is 5 % lower than at the end of 2009. This lower occupancy rate comes mainly from the departure of tenant Tibotec-Virco in Malines.
Meanwhile, the first results of a revival of the rental market are reflected in the clearly increased demand on the logistic real estate market. Herewith 46.881 m² warehouses space has been let by Intervest Offices in 2010, which is twice as much compared to the lettings in 2009. On 31 December 2010, the occupancy rate of the logistic portfolio of Intervest Offices amounts to 84 % compared to 83 % at the end of 2009.
1 By unchanged composition of the real estate portfolio.
2 The occupancy rate is calculated as the ratio of the commercial rental income to the same rental income plus the estimated rental value of the vacant locations for rent. The commercial rental income is the contractual rental income (including the spreaded rental income from early termination of lease contracts) and the rental income of already signed lease contracts regarding locations which are contractually vacant on balance sheet date.
Koralenhoeve - Wommelgem
This difficult situation on the rental market combined with the increased financial charges makes that the operating distributable result of Intervest Offices is lower than in 2009. For the financial year 2010, this result amounts to € 25,4 million compared to € 29,9 million in 2009. Therefore the property investment fund can distribute a gross dividend3 of € 1,83 per share compared to € 2,15 in 2009. Herewith the gross dividend yield of the property investment fund is 7,8 % on the basis of the share price of 31 December 2010.
"In 2010, the gross dividend of Intervest Offices decreases to € 1,83 per share."
3 As legally speaking only the operating distributable profit of the statutory annual accounts can be distributed and not of the consolidated annual accounts, the present profit distribution is based on the statutory figures.
Mechelen Business Tower - Malines
Intervest Offices focuses on an investment policy based on qualitative professional real estate, with respect for criteria of risk diversification in the real estate portfolio, relating to the type of building as well as to the geographic spread and the nature of the tenants.
On 31 December 2010 this risk spread is as follows:
| REAL ESTATE PATRIMONY | 31.12.2010 | 31.12.2009 |
|---|---|---|
| Fair value of investment properties (€ 000) |
526.680 | 540.817 |
| Investment value of investment properties (€ 000) |
539.929 | 554.423 |
| Occupancy rate (%) | 85 % | 88 % |
| Total leasable space (m²) | 535.420 | 540.770 |
Neerland 1&2 - Wilrijk
On 31 December 2010, the fair value of the real estate portfolio amounts to € 527 million (€ 541 million on 31 December 2009). This decrease by 2,6 % or € 14 million is the effect of the sale of the office park Latem Business Park with a fair value of € 6,6 million4 and the decrease in fair value of the total real estate portfolio by € 8,5 million on the one hand, and, investments in the existing real estate portfolio for € 0,9 million on the other hand. In 2010, the decrease in fair value of the real estate properties remains limited to 1,6 % compared to 5,6 % in 2009 (by unchanged composition of the portfolio).
"In 2010, the decrease in fair value of the real estate properties remains limited to 1,6 % compared to 5,6 % in 2009."
4 The sales price is approximately 10 % above the book value on 31 March 2010.
Inter Acces Park - Dilbeek
The rental activity on the Belgian market slightly increases compared to 2009. Although in 2010 the take-up is still at lower levels than before the financial crisis, the first signs of recovery are indeed already visible. Namely on the logistic market there are clearly more demands than in 2009. It is expected that this trend will be pursued in 2011.
Although the demand increases, it has to be observed that given the still high vacancy in certain office regions, the rents are still under pressure compared to the levels before the crisis. Nevertheless, it can be noted that in the field of the rent, rents do not further decrease but remain rather stable compared to the price levels of 2009. Given the increasing demand and the limited new developments on the market, a slight rebound of the rents can be expected in 2011.
Regarding new lettings of offices as well as semi-industrial/logistic properties, Intervest Offices manages to score substantially better in 2010 than in 2009 (twice as much in both cases).
In 2010, the occupancy rate of the office portfolio of Intervest Offices decreases to 85 % (compared to 90 % on 31 December 2009). This is mainly due to the departure of Tibotec-Virco from some buildings on Mechelen Campus (as a result of the transfer of their activities to the plant of Janssen Pharmaceutica (Johnson & Johnson) in Beerse).
In the office portfolio of Intervest Offices new lease contracts have been signed in 2010 for a total space of 9.529 m² (on a total office portfolio of approximately 231.000 m²), attracting 21 new tenants. This is twice as much compared to the new lettings in 2009 when new lease contracts have been signed for a space of 4.420 m².
In 2010, the most important transactions are:
Gateway House - Antwerp
In the office portfolio, lease contracts for a space of 20.004 m² have been renegotiated or prolonged in thirty transactions in 2010. This is considerably less than the renegotiations in 2009 for a total space of 44.077 m². Leaving aside the lease contract with PricewaterhouseCoopers in Woluwe Garden for a space of 23.712 m² (representing more than half of the space renegotiated in 2009) the number of renegotiated space remained approximately stable.
In 2010, the most important transactions are:
At the end of December 2010, the occupancy rate of the logistic real estate portfolio amounts to 84 %, which is a slight increase compared to the end of 2009 (83 % on 31 December 2009). The departure of Pfizer in Intercity Industrial Park in Malines and of JVC on Krekelenberg in Boom is compensated by re-lettings to respectively DHL - Pharma Logistics and CEVA Logistics Europe.
In the semi-industrial portfolio, new lease contracts have been concluded in 2010 for a total space of 46.881 m² in nine transactions. This is twice as much compared to 2009 (19.237 m² in 2009).
In 2010, the most important transactions are:
In the semi-industrial portfolio, lease contracts for a space of 56.300 m² in six transactions have been renewed or prolonged in 2010. This is a multiplication by five compared to 2009, whereby it has to be observed that the most important prolongation, being the one of Fiege in Puurs Logistics Center, represents approximately 80 % of the total surface area.
In 2010, the most important transactions are:
| in thousands € | 2010 | 2009 |
|---|---|---|
| Rental income | 38.523 | 42.472 |
| Rental related expenses | -94 | -160 |
| Property management costs and income | 821 | 314 |
| Property res ult |
39.250 | 42.626 |
| Property charges | -3.224 | -3.720 |
| General costs and other operating costs and income | -1.049 | -1.179 |
| Operatin g res ult before res ult on port folio |
34.977 | 37.727 |
| Result on sales of investment properties | 464 | 0 |
| Changes in fair value of investment properties | -9.139 | -32.270 |
| Operatin g res ult |
26.302 | 5.457 |
| Financial result (excl. change in fair value - IAS 39) | -9.509 | -7.762 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) |
655 | -240 |
| Taxes | -17 | -52 |
| Net res ult |
17.431 | -2.597 |
| Operating distributable result | 25.451 | 29.913 |
| Result on portfolio | -8.675 | -32.270 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) |
655 | -240 |
| Result per share |
2010 | 2009 |
|---|---|---|
| Number of shares entitled to dividend | 13.907.267 | 13.907.267 |
| Net result (€) | 1,25 | -0,19 |
| Gross dividend (€) | 1,83 | 2,15 |
| Net dividend (€) | 1,56 | 1,83 |
5 Between brackets comparable figures for the financial year 2009.
Brussels 7 - Brussels
For the financial year 2010, the rental income of Intervest Offices amounts to € 38,5 million. This decrease by € 4,0 million or 9 % compared to the financial year 2009, is mainly due to:
In 2010, the property management costs and income show an income of € 0,8 million compared to € 0,3 million in 2009 mainly as a result of lower refurbishment costs for vacant spaces in 2010.
During financial year 2010, the property charges of the property investment fund decrease by 13 % to € 3,2 million (€ 3,7 million). This decrease by € 0,5 million is mainly due to lower maintenance and repair costs, lower costs borne by the landlord and reduced vacancy costs (in 2009 a one-time lower than foreseen refund occurred from the Flemish government of property taxes on vacant buildings for the financial year 2005 and 2006).
The general costs and other operating income and costs amount to € 1,0 million, which is a decrease of 11 % compared to previous year (€ 1,2 million).
The decrease of the property charges, the reduction of the refurbishment costs and the decrease of the general costs compensate partly the decrease of the rental income. The operating result before result on portfolio decreases herewith by 7 % or approximately € 2,7 million to € 35,0 million (€ 37,7 million).
The result on disposals of investment properties comprises the realised gain of € 0,5 million on the sale of Latem Business Park in July 2010.
The changes in fair value of the investment properties comprise mainly the decrease in fair value of the real estate portfolio of the property investment fund by € 8,5 million or 1,6 % by unchanged composition of the portfolio. In 2010, the fair value of the office portfolio decreases by € 9,1 million, mainly as a result of the departure of Tibotec-Virco from a part of Intercity Business Park and Mechelen Campus and the increasing vacancy in the portfolio. The fair value of the semi-industrial properties of the property investment fund increases by € 0,5 million in 2010 through new rentals and prolongations of existing lease contacts.
is limited to 1,6 % compared to 5,6 % in 2009."
The financial result (excl. the change in fair value of financial derivatives - IAS 39) amounts to - € 9,5 million (- € 7,8 million). The increase of the financial charges by 22 % or € 1,7 million comes from the issuance of the bond loan.
Woluwe Garden - Sint Stevens Woluwe
"For the financial year 2010, the average interest rate of the current credit facilities of the property investment fund amounts to 4,0 % (3,2 %) including bank margins."
The changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) comprise the change of the market value of interest rate swaps which, in accordance with IAS 39, cannot be classified as cash flow hedging instrument, for an amount of € 0,7 million (- € 0,2 million).
The net result of Intervest Offices for the financial year 2010 amounts to € 17,4 million (- € 2,6 million) and can be divided in:
In 2010, the operating distributable result of Intervest Offices thus decreases to € 25,5 million (€ 29,9 million). With 13.907.267 shares issued, this represents a gross dividend of € 1,83 per share for financial year 2010 compared to € 2,15 in 2009. This represents a decrease of the dividend by 15 % per share. This gross dividend offers the shareholders of the property investment fund a gross dividend yield of 7,8 % on the basis of the closing price of the share on 31 December 2010.
| in thousands € | 31.12.2010 | 31.12.2009 |
|---|---|---|
| Non-current assets | 526.959 | 541.099 |
| Current assets | 5.644 | 4.674 |
| assets | 532.603 | 545.773 |
| Shareholders' equity | 286.324 | 297.533 |
| Share capital | 126.729 | 126.729 |
| Share premium | 60.833 | 60.833 |
| Reserves | 98.621 | 130.875 |
| Net result of the financial year | 17.432 | -2.597 |
| Impact on fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties |
-13.606 | -13.606 |
| Changes in fair value of financial assets and liabilities | -3.726 | -4.746 |
| Minority interest | 41 | 45 |
| Non-current liabilities | 177.239 | 205.807 |
| Current liabilities | 69.040 | 42.433 |
| share holders ' equity an d lia bilities |
532.603 | 545.773 |
to € 527 million on 31 December 2010."
The non-current assets consist mainly of the investment properties of Intervest Offices. On 31 December 2010, the fair value of these investment properties amounts to € 527 million (€ 541 million on 31 December 2009). This decrease by 2,6 % or € 14 million is the effect of the sale of the office park Latem Business Park with a fair value of € 6,6 million and the decrease in fair value of the total real estate portfolio by € 8,5 million on the one hand, and of investments of € 0,9 million in the existing real estate portfolio on the other hand.
The current assets amount to € 6 million and consist of € 2 million in trade receivables, € 2 million in tax receivables and other current assets, € 1 million in cash on bank accounts and € 1 million in deferred charges and accrued income.
Sky Buidling - Berchem
"The low debt ratio of 43 % offers Intervest Offices sufficient
room for future investments."
The shareholders' equity of the property investment fund amounts to € 286 million. The share capital (€ 127 million) and the share premium (€ 61 million) are unchanged from previous year. The total number of shares entitled to dividend amounts to 13.907.267 units on 31 December 2010. The reserves amount to € 99 million (€ 131 million).
In accordance with the Beama interpretation of IAS 40 (publication of the Belgian Association of Asset Managers of 8 February 2006), the real estate portfolio is valued at fair value. The difference with the investment value is shown separately in shareholders' equity. On 31 December 2010, this difference amounts to € 13 million (€ 14 million).
The change in fair value of financial assets and liabilities in the amount of - € 4 million (- € 5 million) represents the market value of the cash flow hedges (effective hedges on 31 December 2010 and ineffective hedges on 31 December 2009), that Intervest Offices has concluded to hedge the variable interest rates on the non-current financial debts. The negative market value of these financial derivatives is the result of the low interest rates in 2010.
The non-current liabilities comprise mainly non-current financial liabilities for an amount of € 176 million (€ 204 million). These consist of € 101 million long-term bank loans expiring after 31 December 2011 and of the bond loan issued in June 2010 for a net amount of € 74 million.
The current liabilities amount to € 69 million (€ 42 million) and consist mainly of € 51 million in current financial debts (bank loans expiring in 2011) as well as the negative market value of financial derivatives expiring in 2011 for an amount of € 3 million, of € 2 million in trade debts and of € 13 million in accrued charges and deferred income.
| 31.12.2010 | 31.12.2009 |
|---|---|
| 13.907.267 | 13.907.267 |
| 20,59 | 21,39 |
| 21,57 | 22,37 |
| 23,49 | 21,90 |
| 14 % | 2 % |
| 43 % | 44 % |
On 31 December 2010, the net asset value (fair value) of the share is € 20,59. As on 31 December 2010, the share price of Intervest Offices is € 23,49, the share is quoted at a premium of 14 % compared to the net asset value (fair value).
On 31 December 2010, the debt ratio of the property investment fund decreases by 1 % compared to 31 December 2009 and amounts to 43 % (calculated in accordance with the Royal Decree on the property investment funds of 7 December 2010).
Mechelen Campus - Malines
On 31 December 2010, Intervest Offices has a conservative financial structure allowing it to continue to carry out its activities in 2011 and to meet its commitments.
The most important characteristics of the financial structure on 31 December 2010 are:
In June 2010, Intervest Offices has successfully placed a bond loan on the Belgian market for an amount of € 75 million and with a duration of 5 years and an annual gross coupon of 5,10 %. The bond loan is issued to diversify the financing facilities of the property investment fund and to consolidate its debt in the mid term, without losing however financial room for future growth. In the frame of the coming negotiations regarding the renewal in the second semester of 2011 of € 60 million bank debts, Intervest Offices aims to reduce the total available credit lines with an amount of € 25 million or more, depending on the new financial needs resulting from concrete acquisition projects.
In the financial year 2010, the property investment fund renegotiated with its bankers four long-term credit facilities expired in 2010 and at the beginning of 2011 (for a total amount of € 104 million). The new credit facilities have durations between 3 and 5 years and are concluded at market conditions and covenants. Through this, the weighted average remaining duration of the long-term credit facilities is 3,3 years on 31 December 2010.
On 31 December 2010, the expiry calendar of the credit lines, including the bond loan, gives the following image.
Intervest Offices expects that the rental market for logistic real estate as well as for offices will recover in 2011. The increasing interest of potential tenants in several vacant buildings of the property investment fund indicates the recovering of the rental market.
On the rental market, Intervest Offices wants to better meet the demands of potential tenants by assisting them with the design of their offices or by delivering turn-key design projects. In order to offer these services in a professional and competitive way, the technical know-how and the buying power of Intervest Offices will now be used optimally for design projects of the tenants.
In 2011, a number of office buildings of Intervest Offices will receive a more pronounced "look and feel". This is part of a larger marketing program of the property investment fund that is aiming in the long run for more brand recognition by potential tenants as well as investors.
Efforts to manage the portfolio as efficiently as possible and to reduce costs in order to obtain an optimal price-quality ratio, are also on the agenda of 2011. At the determination of the quality of buildings, sustainability elements will more than ever be taken into account. Sustainability is now becoming so important for the management of the portfolio that it also determines the choice of contractors, products and supply.
To optimally use the available investment capacity created by the bond loan, opportunities on the investment market have been thoroughly analysed in 2010. It is expected that this will result in new investments in 2011, which is possible, given the low debt ratio of 43 % of the property investment fund. The focus of the property investment fund remains on offices and logistic real estate, targeting a portfolio growth of approximately 5 % in 2011.
New investments combined with a more marked recovery of the rental markets must form the basis of an improvement of the results in the long run. On the short term, Intervest Offices expects that the operating distributable result of the property investment fund will still be under pressure in 2011.
The annual report for the financial year 2010 will be available as from 23 March 2011 on the website of the company (www.intervestoffices.be).
INTERVEST OFFICES SA, public property investment fund under Belgian law, Jean-Paul Sols - CEO of Inge Tas - CFO, tel: + 32 3 287 67 87, www.intervestoffices.be
| in thousands € | 2010 | 2009 |
|---|---|---|
| Rental income | 38.523 | 42.472 |
| Rental related expenses | -94 | -160 |
| NET RENTAL RESULT | 38.429 | 42.312 |
| Recovery of property charges | 761 | 644 |
| Recovery of rental charges and taxes normally payable by tenants on let properties | 9.763 | 5.189 |
| Costs payable by tenants and borne by the landlord for rental damage and refurbishment | -72 | -445 |
| Rental charges and taxes normally payable by tenants on let properties | -9.760 | -5.172 |
| Other rental related income and expenses | 129 | 98 |
| PROPERTY RESULT | 39.250 | 42.626 |
| Technical costs | -514 | -639 |
| Commercial costs | -274 | -349 |
| Charges and taxes on unlet properties | -674 | -781 |
| Property management costs | -1.738 | -1.776 |
| Other property charges | -24 | -175 |
| PROPERTY CHARGES | -3.224 | -3.720 |
| OPERATING PROPERTY RESULT | 36.026 | 38.906 |
| General costs | -1.054 | -1.184 |
| Other operating income and costs | 5 | 5 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 34.977 | 37.727 |
| Result on sales of investment properties | 464 | 0 |
| Changes in fair value of investment properties | -9.139 | -32.270 |
| OPERATING RESULT | 26.302 | 5.457 |
| Financial income | 45 | 101 |
| Interest charges | -9.543 | -7.722 |
| Other financial charges | -11 | -141 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) | 655 | -240 |
| FINANCIAL RESULT | -8.854 | -8.002 |
| RESULT BEFORE TAXES | 17.448 | -2.545 |
| Taxes | -17 | -52 |
| NET RESULT | 17.431 | -2.597 |
| Note: | ||
| Operating distributable result | 25.451 | 29.913 |
| Result on portfolio | -8.675 | -32.270 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) | 655 | -240 |
| Attributable to: | ||
| Equity holders of the parent company | 17.432 | -2.597 |
| Minority interests | -1 | 0 |
6 The statutory auditor has confirmed that his full audit, which has been substantially completed, has not revealed material adjustments which would have to be made to the accounting information disclosed in this press release and that an unqualified auditor's report will be issued.
| in thousands € | 2010 | 2009 |
|---|---|---|
| NET RESULT | 17.431 | -2.597 |
| Changes in fair value of financial assets and liabilities (effective hedges - IAS 39) | 1.260 | -2.298 |
| COMPREHENSIVE INCOME | 18.691 | -4.895 |
| Attributable to: | ||
| Equity holders of the parent company | 18.692 | -4.895 |
| Minority interests | -1 | 0 |
| ASSETS in thousands € | 31.12.2010 | 31.12.2009 |
|---|---|---|
| Non-current assets | 526.959 | 541.099 |
| Intangible assets | 47 | 68 |
| Investment properties | 526.680 | 540.817 |
| Other tangible assets | 218 | 200 |
| Trade receivables and other non-current assets | 14 | 14 |
| Current assets | 5.644 | 4.674 |
| Trade receivables | 1.726 | 1.404 |
| Tax receivables and other current assets | 1.943 | 1.994 |
| Cash and cash equivalents | 816 | 733 |
| Deferred charges and accrued income | 1.159 | 543 |
| TOTAL ASSETS | 532.603 | 545.773 |
| SHAREHOLDERS' EQUITY AND LIABILITIES in thousands € | 31.12.2010 | 31.12.2009 |
|---|---|---|
| Shareholders' equity | 286.324 | 297.533 |
| Shareholders' equity attributable to the shareholders of the parent company | 286.283 | 297.488 |
| Share capital | 126.729 | 126.729 |
| Share premium | 60.833 | 60.833 |
| Reserves | 98.621 | 130.875 |
| Net result of the financial year | 17.432 | -2.597 |
| Impact on fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties |
-13.606 | -13.606 |
| Changes in fair value of financial assets and liabilities | -3.726 | -4.746 |
| Minority interests | 41 | 45 |
| Liabilities | 246.279 | 248.240 |
| Non-current liabilities | 177.239 | 205.807 |
| Provisions | 990 | 1.031 |
| Non-current financial debts | 175.659 | 204.254 |
| Credit institutions | 101.322 | 204.236 |
| Bond loan | 74.325 | 0 |
| Financial lease | 12 | 18 |
| Other non-current liabilities | 590 | 522 |
| Current liabilities | 69.040 | 42.433 |
| Provisions | 426 | 386 |
| Current financial debts | 53.425 | 36.585 |
| Credit institutions | 53.419 | 36.579 |
| Financial lease | 6 | 6 |
| Trade debts and other current debts | 2.110 | 1.946 |
| Other current liabilities | 476 | 656 |
| Accrued charges and deferred income | 12.603 | 2.860 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 532.603 | 545.773 |
| in thousands € | Share capital |
Share premium |
Reserves | Net result of the financial year |
Impact on fair value* |
Changes in fair value of financial assets and liabilities |
Minority interests |
ers' ity otal are equ old sh T h |
|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2008 | 126.725 | 60.833 | 144.280 | 15.249 | -14.437 | -2.448 | 163 | 330.365 |
| Comprehensive income 2009 | -2.597 | -2.298 | -4.895 | |||||
| Transfers: | ||||||||
| Transfer from the result on portfolio to the reserves |
-12.726 | 12.726 | 0 | |||||
| Transfer of the impact on fair value* | -831 | 831 | 0 | |||||
| Other mutations | 34 | -34 | 0 | |||||
| Merger 1 April 2009 | 4 | 118 | -118 | 4 | ||||
| Dividends financial year 2008 | -27.941 | -27.941 | ||||||
| Balance at 31 December 20097 | 126.729 | 60.833 | 130.875 | -2.597 | -13.606 | -4.746 | 45 | 297.533 |
| Comprehensive income 2010 | 17.432 | 1.260 | -1 | 18.691 | ||||
| Transfers: | ||||||||
| Transfer from the result on portfolio to the reserves |
-32.270 | 32.270 | 0 | |||||
| of financial assets and liabilities through Transfer of the impact on fair value the income statement 2009 |
240 | -240 | 0 | |||||
| Other mutations | 16 | -13 | -3 | 0 | ||||
| Dividends financial year 2009 | -29.900 | -29.900 | ||||||
| Balance at 31 December 2010 | 126.729 | 60.833 | 98.621 | 17.432 | -13.606 | -3.726 | 41 | 286.324 |
S
tatement of changes in consolidated equity
*of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties
7 The transfer of "the impact on fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties" as well as of " the changes in fair value of financial assets and liabilities through the income statement" are no longer, as from the financial year 2010, recorded during the financial year but only after approval of the profit distribution by the general meeting of shareholders (in April of next financial year). As this concerns transfers within two items of shareholders' equity, it has no impact on the total shareholders' equity of the property investment fund.
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