Annual Report • Feb 21, 2017
Annual Report
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REGULATED INFORMATION - EMBARGO UNTIL 21/02/2017 – 08.30 AM
EPRA RESULT OF € 24.0 MILLION IN 2016 COMPARED WITH € 21,1 MILLION IN 2015
CONSISTING OF EARNINGS ON A RECURRING BASIS OF € 24.8 MILLION, AN ONCE-OFF SEVERANCE COMPENSATION OF € 1.3 MILLION, RECEIVED IN Q1 2016, PARTIALLY OFFSET BY THE SETTLEMENT OF A HISTORIC INTEREST RATE SWAP (IRS) IN Q4 2016 FOR AN ONCE-OFF COST OF € 2.1 MILLION.
The operating margin amounts to 89.6% compared with 85.8% the previous year.
The growth in the fair value is due chiefly to the delivery of 3 built-to suit projects in the first half of 2016 (CDS in Vorst, Movianto in Erembodegem and DSV Solutions in Ghent), the acquisition of the site in Willebroek (let to Federal Mogul) and the acquisition of 46,000 m² of land in Bornem for the development of a built-to-suit project, partially offset by the property in Herentals which was sold in Belgium on the one hand, and the purchase of the site in Eindhoven, De Keten (let to Jan De Rijk) as well as the development of the property in Aalsmeer for Bakkersland and Scotch & Soda in the Netherlands on the other. In France, the fair value of the property portfolio after the sale of 2 buildings to Patrizia Logistik Invest Europa I was offset partially by the purchase of a development area in Camphin-en-Carembault to the south of Lille.
• The EPRA vacancy rate3 amounts to 1.1% (compared with 3.2% at the end of December 2015), inclusive of the severance compensation that was received in 2016 for the discontinuance of the Neovia Logistics lease. If this is not taken into account, the EPRA vacancy rate amounts to 3.6%.
The average term of the contracts until their first termination option amounts to 7.7 years compared with 6.8 years at the end of 2015. The vacancy rate pertains mainly to half of the site at Milmort (BE).
• The debt ratio amounts to 51.6% compared with 55.4% at the end of September 2016.
1 Corresponds to the former name "Net Current Earnings." The description of Net Current Result was changed upon the entry into force of the European Securities and Market Authority (ESMA) guidelines on Alternative Performance Measures to core net earnings, i.e. the EPRA earnings. The use of the term 'current' is forbidden for the time being. The name was consequently changed to "core net earnings" and corresponds to the ERPA earnings as stipulated in the 'Best Practice Recommendations' of the European Public Real Estate Association (EPRA).
2 The EPRA earnings per share refer to earnings based on the weighted average number of shares, which does not correspond to the
former heading "net current earnings" per share, since Montea has always used the number of shares entitled to dividends as a basis. 3 Corresponds to the complement of the previous "Occupancy rate" with the difference that the occupancy rate used by Montea was calculated on the basis of square metres whereas the ERPA vacancy rate is calculated on the basis of the estimated rental value.
In accordance with the guidelines recently adopted by the European Securities and Markets Authority (ESMA), the Alternative Performance Measures (APM) used henceforth by Montea are indicated with an asterisk (*) the first time they are mentioned in this press release, and then defined in a footnote. The reader is thereby apprised of the definition of an APM. The performance measures stipulated by IFRS rules or by law as well as the measures which are not based on the headings of the balance sheet or the income statement are not considered as APMs.
The detailed calculation of the PERA performance measures and of other APMs that are used by Montea, are indicated in Chapter 1.8 and 1.9 of this press release.
| 31/12/2016 | 31/12/2015 | ||
|---|---|---|---|
| 12 months | 12 maanden | ||
| Real estate portfolio | |||
| Real estate portfolio - Buildings (1) | |||
| Number of sites | 47 | 45 | |
| Surface of the real estate portfolio | |||
| Logistics and semi-industrial warehouses | sqm | 715.310 | 682.503 |
| Offices | sqm | 67.668 | 66.506 |
| Total surface | sqm | 782.978 | 749.009 |
| Development potential | sqm | 230.344 | 119.569 |
| Value of the real estate portfolio | |||
| Fair value (2) | K€ | 532.063 | 480.721 |
| Investment value (3) | K€ | 558.167 | 503.980 |
| EPRA Vacancy Rate | |||
| EPRA Vacancy Rate (4) | % | 1,1% | 3,3% |
| Real estate portfolio - Solar panels | |||
| Fair value | K€ | 9.978 | 10.369 |
| Real estate portfolio - Solar panels | |||
| Fair value (2) | K€ | 10.281 | 25.640 |
| Consolidated results | |||
| Results | |||
| Net rental result | K€ | 40.518 | 34.290 |
| Operating result before the porfolio result | K€ | 36.304 | 29.437 |
| Operating margin (5)* | % | 89,6% | 85,8% |
| Financial result (excl. Variations in fair value of the financial instruments) (6)* |
K€ | -11.780 | -8.016 |
| EPRA result (7)* | K€ | 24.018 | 21.097 |
| Weighted average number of shares | 9.722.190 | 9.012.751 | |
| EPRA result per share (8)* | € | 2,47 | 2,34 |
| Result on the portfolio (9) | K€ | 12.919 | 2.475 |
| Variations in fair value of the financial instruments (10) | K€ | -616 | 438 |
| Net result (IFRS) | K€ | 36.321 | 24.010 |
| Net result per share | € | 3,74 | 2,66 |
| Consolidated balance sheet | |||
| IFRS NAV (excl. minority participations) (11) | K€ | 251.846 | 208.157 |
| EPRA NAV (12)* | K€ | 276.651 | 232.345 |
| Debts and liabilities for calculation of debt ratio | K€ | 307.164 | 306.564 |
| Balance sheet total | K€ | 594.759 | 549.685 |
| Debt ratio (13) | % | 51,6% | 55,8% |
| EPRA NAV per share (14)* | € | 27,80 | 25,22 |
| EPRA NNAV per share (15)* | € | 25,31 | 22,60 |
| Share price (16) | € | 46,37 | 39,20 |
| Premium | % | 66,8% | 55,4% |
1.2.1. EPRA result per share4 * was € 2.47: a rise of 5.6% on a recurrent basis compared with the same period in the previous year
The EPRA result5 amount to € 24.0 million, up 14% during financial year 2016, compared with € 21.1 million during the same period in the previous year. The EPRA result per share amounts € 2.47 per share compared with € 2.34 per share last year.
This growth of € 2.9 million is due chiefly to:
4 *EPRA result per share concerns the EPRA profit on the basis of the weighted average number of shares. Cf. www.epra.com. 5 *EPRA result: this concerns the underlying earnings from core activities and indicates the degree to which dividend payments are
supported by the profit. These earnings are also calculated as the net earnings (IFRS) exclusive of the result on portfolio and the variations in the fair value of financial instruments. Cf. www.epra.com
6 *Financial result (exclusive of variations in the fair value of the financial instruments); financial result in accordance in accordance with the Royal Decree of July 13, 2014, regarding regulated property investments companies, exclusive of the variations in the fair
value of the financial instruments; this result reflects the actual financing costs of the company.. 7 *The average financing cost pertains to the weighted average interest rate on an annual basis for the reporting period, taking account
of the average outstanding debts and hedge instruments during that period. 8 *Hedge ratio: ratio of the debts to fixed and variable interest that is hedged against fluctuations in interest rates by derivative financial instruments.
2016 saw the following lease activity:
The site in Bornem (Industrielaan 2-24), which has a total area of 14,343 m², is now fully leased. Montea and the Regie der Gebouwen have signed a lease agreement for a term of 9 years. The lease is for 8,760 m² of warehouse space, 590 m² of office space and 37 parking spaces. The Regie der Gebouwen will use the site as a warehouse facility for goods seized. This transaction was brokered by Ceusters NV.
Montea «Space for Growth» - Site Bornem (BE)
The remaining available space of 1,206 m² is leased to Beherman Motors NV (part of the Beherman Group) for a term of 9 years with a first break option after 3 years. Beherman Group (www.behermangroup.com) is the official importer of Mitsubishi for Belgium and Luxembourg and will use the site as workshop and storage space.
These two transactions together represent an annual rental income of approximately € 0.45 million.
Montea and Roltex Belgium have signed a long-term lease agreement for a fixed term of 9 years at the site in Erembodegem. The lease includes 1,454 m² of warehouse space, 403 m² of office space and 201 m² of mezzanine.
Roltex Belgium already has a location in Erembodegem and was looking for additional space in the same region. Roltex is a producer of trays and other plastic catering/hospitality equipment for professional catering (www.roltex.be).
Montea "Space for Growth" - Erembodegem Site - Unit 8 (BE)
On 20th July, a lease was signed with Stylelabs for the redevelopment of the old station building at the site in Vorst. The project involves renovating a building of approximately 2,000 m². Stylelabs will lease the building from March 2017, based on a 9 year lease with an initial break option after year 6. The annual rent for the property is € 281,000.
At the end of October 2016, Kris De Leeneer BVBA and Montea signed a new lease for 3,017 m² of warehousing, 70 m² of office space and a mezzanine area of 429 m². As a result of this transaction, the multi-tenant site is now fully leased. Kris De Leeneer BVBA will lease the unit from January 2017, based on a 9-year lease with an initial break option after year 3. The annual rent for the premises is € 128,826.
Montea purchased 60,000 m² of land from Greenpark Aalsmeer (Schiphol Area Development Company). This new industrial development is aimed in particular at increasing the provision of logistics services in the vicinity of Amsterdam and Schiphol.
Since acquiring the site, Montea has already developed a large building of 40,000 m², of which 30,000 m² has been leased in advance to Bakkersland. The remaining 10,000 m² of high-quality logistics space has now been leased to Scotch & Soda, an internationally known fashion brand. The new lease has been signed for a term of
9 years (first break option after 5 years) and consists of 8,171 m² of warehousing, 487 m² of office space and a mezzanine area of 1,341 m². Montea will build an additional mezzanine of 4,143 m² at the request of Scotch & Soda.
Scotch & Soda will start operations at the complex during the first quarter of 2017. The site will be used to accommodate the company's logistics activities which have increased due to the worldwide expansion and success of the brand. This new lease means that Montea – exactly as planned – has now fully leased the entire complex of more than 40,000 m².
Industrial Real Estate Partners and DTZ Zadelhoff jointly advised Montea on the lease. The transaction was brokered by Van Gool ♦ Elburg Vastgoedspecialisten B.V on behalf of Scotch & Soda B.V.
At 31/12/2016 the EPRA vacancy rate amounts to 1,1%.
The overall vacancy is approximately 15,500 m², and relates mainly to the half of the site in Milmort (BE).
Thanks to the new investments with long-term leases and the new leases mentioned above, Montea achieved its goal in 2016 to obtain an average term of leases on first expiry date of more than 7 years. At the end of 2016, the average duration of contracts at first break date is 7.7 years.
Montea has completed the acquisition of a distribution on land of 36,200 m² at Eindhoven - Acht. The building comprises 16,700 m² of warehouse space and 435 m² of offices. Given its good location and the flexible layout of the building in 4 units, this distribution centre is extremely well suited for other tight-knit distribution and e-commerce purposes.
The building is leased with a triple net lease for a fixed term of 15 years. This transaction represents an investment of approximately € 18 million at a net initial yield of 6.6% and is in line with the valuation of the property assessor.
Montea has acquired approximately 4.6 hectares of land from Beherman Invest NV (part of the Beherman Group) in Bornem. The site is strategically located in the "golden triangle" of Brussels/Antwerp/Ghent, in the immediate vicinity of the A12/E17 motorways. The existing building will be demolished and the site will be totally redeveloped. Montea has already begun marketing the land for the development of a build-to-suit
Montea "Space for Growth" – Bornem site – Build-to-suit (BE)
logistics building of +/- 26,000 m². The acquisition was financed with bank debt. This transaction represents an investment value of € 4.6 million.
9 *Estimated rental value of vacant surfaces divided by the estimated rental value of the total portfolio, exlusive of that of projects under construction and/or renovation. Cf. www.epra.com
In June 2015 Montea began the development of a distribution centre for Movianto at Industriezone Zuid IV in Erembodegem. The state-of-the-art logistics distribution centre of 15,900 m², featuring two GDP-compliant
(2,900 m²) cross-docking spaces (+2+8°C and +15°C+25°C) and attached offices, was handed over on schedule in January 2016. The building is leased for a fixed term of 9 year, with the initial rent approximately € 1 million per year. This acquisition was financed with bank debt. The transaction represents an investment value of € 14 million.
Montea «Space for Growth» - Site Erembodegem, Waterkeringsstraat (BE)
As part of the redevelopment plan for the site in Vorst, Montea began the development of a second sustainable build-to-suit project for CdS in Vorst in April 2015. The 10,500 m² distribution centre is leased for a fixed term of 15 years, with the initial rent approximately € 0.5 million per year. This acquisition was financed with bank debt. The transaction represents an investment value of € 6.8 million.
Montea "Space for Growth" - Vorst site - CdS (BE)
10 For more information, please see our press release of 26/06/2015 or visit www.montea.com.
11 For more information, please see our press release of 03/04/2015 or visit www.montea.com.
This logistics complex was developed by MG Real Estate on land of approximately 48,000 m². The building comprises 27,100 m² of warehouse space, 800 m² of office space and a mezzanine area of approximately
1,100 m². The building can be extended by 6,800 m² in a second phase. It is owned by Nyssa NV and Robinia One NV.
The parties have signed a long-term lease for a fixed term of 10 years. This acquisition was conducted through the contribution of 100% of the shares in the two companies mentioned above. The contribution in kind was for a mixed payment, namely in cash (14%) and new shares (86%). The transaction represents an investment value of € 20.4 million.
Montea "Space for Growth" - Federal Mogul site at Park De Hulst
In 2013 Montea acquired a new logistics platform for DSV Solutions, specialised in the handling and preparation of goods for specific customers for national, European and worldwide distribution. This site is strategically located along the Ghent-Terneuzen canal area, in the immediate vicinity of the R4, and provides a connection to important motorways (E34, E17 and E40).
The current 24,500 m² distribution centre has now been expanded by an additional 21,000 m² and comprises an investment value of approximately € 21 million.
"We are convinced of the growing importance of water-related logistics for our economy," said Jo De Wolf, Montea CEO. "We therefore believe that this expansion means absolute added value for our portfolio."
12 For more information, please see our press release of 17/09/2015 or visit www.montea.com.
13 For more information, please see our press release of 28/06/2016 or www.montea.com.
The City of Antwerp, ParticipatieMaatschappij Vlaanderen (PMV) and Waterwegen en Zeekanaal (W&Z) have selected Blue O'pen as their partner for the decontamination and redevelopment of Petroleum Zuid in Antwerp (approx. 63 hectares). Blue O'pen is a consortium between DEME and Bopro. For the development of and investment in the logistics zone of approx. 6.5 hectares within Blue Gate, the consortium opted to work exclusively with Montea.
Peter Demuynck, CCO Montea: We are always looking for innovative solutions for the logistics sector. Starting in the second half of 2017 we will be developing this unique location on the edge of the city and by the water to create a CO2-neutral logistics park, with particular focus on innovative logistics trends and urban distribution. When completed, the total development will represent an estimated
investment value of € 26 million.
Montea "Space for Growth" – Artist's Impression Blue Gate, Antwerp
Montea and Carglass Distribution have signed a partnership agreement for the development and the lease of a new sustainable logistics build-to-suit project of 50,000 m² in Bilzen.
Carglass Distribution, the division responsible for the distribution of all windscreens and accessories in Belgium and 8 Western-European countries, will centralize its activities, currently spread across 4 sites in Belgium, as of 2018 on a new site in Bilzen, at the industrial site Bilzen-Noord. The new site benefits from an ideal geographical localisation, at the centre of Europe.
This decision should enable more efficient activities, better and faster service to customers and a further activity development in the future. International real estate investor Montea will develop and finance the entire project with a potential of over 50,000m².
Montea «Space for Growth» - Artist Impression site Carglass, Bilzen (BE)
14 For more information, please see our press release of 10/06/2016 or www.montea.com.
For over 20 years Carglass Distribution is active in Belgium, the last couple of years at 4 different locations in Hasselt and Genk. Currently, 1.2M windscreens and 1.7M accessories are, on an annual basis, delivered from these locations to all Belgan Carglass Service Centers, but also to all subsidiaries in Germany, the Netherlands, Luxembourg, Denmark, Switzerland, Norway, Sweden and Greece.
These logistics and distribution activities are crucial to the entire company strategy. An efficient, fast and performing delivery of windscreens is the basis for a unique client service model, representing the Carglass brand. Montea will develop and finance the entire project of 50,000 m². The total development will represent an estimated investment value of € 25 million.
Montea and Built to Build signed a lease agreement with NSK European Distribution Centre. The partners will develop a new build-to-suit distribution centre comprising approximately 17,300 m² of warehousing, 1,900 m² of offices and mezzanine of 1,900 m² at the Vossenberg West logistics zone in Tilburg
Montea «Space for Growth» - Artist Impression site NSK European Distribution Centre, Tilburg (NL)
NSK is one of the world's leading producers of bearings, linear bearings and guidance systems. For the past 15 years NSK has been operating at the Kraaiven industrial zone in Tilburg. In view of the steady growth in the company's business, it was decided to search for a larger location within the logistics hotspot of Tilburg. The new EDC will be constructed in conjunction with Montea and Built to Build (BTB) at Industrieterrein Vossenberg. On handover, NSK will lease the building for a minimum period of 10 years.
BTB will again be working with Bouwbedrijf Van der Heijden on this project. On handover of the building, Montea will acquire the development, subject to the usual conditional terms, for an estimate investment value of € 15.4 million, representing an initial yield of 6.50%.
Construction works will begin once the environmental permit has been issued and the new build-to-suit project is expected to be operational by the third quarter of 2017.
15 For more information, please see our press release of 14/06/2016 or www.montea.com.
Headquartered in the UK, the Pelsis Group is the leader in ecological solutions for crop protection and pest control in Europe. The group employs some 270 workers in 10 sites worldwide.
Montea «Space for Growth» - nieuw logistiek gebouw voor Edialux (Groep Pelsis) te Bornem (BE)
In Belgium, Pelsis operates under the name of Edialux, which is also a market leading brand in the Belgian retail sector. Pelsis was in search of a state-of-the-art distribution centre in order to provide even better logistical service to its customers at home and abroad. Montea will undertake a build-to-suit project for that purpose in exchange for a 15-year lease contract. The contract will comprise ca. 11,400 m² operational space and 960 m² offices and will employ ca. 70 people.
The construction works for this project are expected to commence in the course of 2018. The investment will amount to ca. € 11 million and represent a yield of 6.65%. Edialux was guided and supported by Ceusters Immobiliën in this transaction.
SACO Groupair, a well-known neutral forwarder headquartered in Hamburg and active for years at Brucargo (www.sacogroupair.com), has signed a cooperation agreement with Montea for the construction and rental of a new state-of-the-art air cargo building plus offices at Brucargo. This development will be implemented in cooperation with the Cordeel group.
Montea «Space for Growth» - Nieuw luchtvrachtgebouw voor SACO Groupair - Brucargo (BE)
16 For more information, please see our press release of 28/06/2016 or www.montea.com.
17 For more information, please see our press release of 28/06/2016 or www.montea.com.
The complex will consist of ca 4,200 m² storage space and ca. 800 m² office space. The site will employ some 35 people in all and enable the group to register accelerated growth.
SACO Groupair has signed a rental agreement for a fixed term of nine years. Montea will acquire this property in Q2 2017 on the basis of an initial yield of ca.7.8%, i.e. an investment value of € 3.6 million.
On Wednesday 29 June the alderman Frank den Brok has concluded with Hylcke Okkinga, director of Montea Nederland, an agreement for a plot of 5 ha at Vorstengrafdonk. At this plot, Montea – after letting - will develop a tailor-made distribution center. Montea Nederland will develop this project together with construction company van der Maazen.
Montea «Space for Growth» - Artist impression distribution centre Vorstengrafdonk - Oss (NL)
Montea Nederland and construction company Van der Maazen develop a building plan at the parcel, they check the plan with the municipality as to the desired image quality and the possibility to obtain an environmental permit. The construction plan meets the latest requirements of the logistics sector and is ready for the end-user. The building can consequently be developed in a very short period of time.
Meanwhile, the commercialization process was started. Montea and van der Maazen are granted a purchase option on the plot, they will search for users and will consequently develop a tailor-made distribution center.
Mainfreight (Wim Bosman Group) and Montea have signed a collaborative agreement (subject to the usual conditions precedent) for the development of a new built-to-suit cross-dock centre consisting of approximately 8,000 m² of warehousing and approximately 800 m² of office space at Genk-Zuid. Mainfreight has signed a lease with a fixed term of 9 years.
18 For more information, please see our press release of 07/07/2016 or www.montea.com.
19 For more information, please see our press release of 15/09/2016 or www.montea.com.
The Wim Bosman Group (the European part of the worldwide Mainfreight network) is a 3PL+ service-provider with a strong network for customer-specific and preferably integrated warehousing, transport and distribution solutions with offices in the Netherlands, Belgium, France, Poland, Romania and Russia. Mainfreight is a worldwide logistics service-provider with locations in Australia, New Zealand, Asia, America and Europe (www.mainfreight.com).
Montea's investment in this built-to-suit project is approximately € 7.3 million and will generate an initial yield of 7.3% from Q2 2017. Around 150 people will be employed at this new location.
Montea "Space for Growth" – Artist's impression Mainfreight cross-dock centre - Genk (BE)
On 24th October 2016, alderman Frank Hommel and Hylcke Okkinga, director Montea Netherlands, signed a covenant for 100,000 m² of land at the "Welgelegen" business park in Tholen. Once it is leased, Montea will construct a built-to-suit distribution centre. Montea will implement this project with Sprangers Bouwbedrijf as main contractor.
The municipality, Montea, Rewin and Invest in Zeeland will together handle the marketing of the land. Montea has a purchase option on the land and will develop a construction plan on the land. After examining the require image quality and obtaining an environmental permit, Montea will seek a user for the distribution centre and be responsible for its development with Sprangers Bouwbedrijf.
The following divestments were implemented during 2016:
June 30 Kemin Europe NV exercised its purchase option for an amount of € 6.1 million. The actual sale took place on July 18, 2016. The site comprises ca 20,253 m² of land, 11,068 m² of warehouses, 1,782 m² of offices and 1,800 m² of mezzanine.
20 For more information, please see our press release of 24/10/2016 or www.montea.com.
At January 1st, 2017 Montea announced the sale of 3 assets from its existing portfolio in France. The total net selling value amounts to € 60,394,000.
It concerns the following buildings:
Logistics building Total floor space of ca 75.000 m² Let to FM Logistics
Logistics building Total floor space of ca 11.000 m² Let to C-Log
Logistics building Total floor space of ca 16.000 m² Let to Le Piston Français
The portfolio generates an annual rent income of € 4.4 million, and is sold at an average initial yield of 6.88%. The average term of the portfolio on the first due date amounts to 3.6 years.
The sale of the building in St Cyr en Val and the building in Tilloy-lez-Cambrai was closed on 29 December 2016. The sale of the building in Savigny-le-Temple will be closed at the latest on 31 December 2017, after a number of alteration works for the current tenant, at the latest on March 31, 2017.
The net selling price of the 3 buildings amounts to € 60.4 million, compared with a book value of € 51.1 million. "The capital gains constitute proof, in our view, of the prudent and conservative valuation of Montea's property portfolio in view of the great interest in qualitative logistics real estate on the market", says Els Vervaecke, CFO Montea. "The revenues from the sale will be used in 2017 to acquire a number of new projects in the development phase and to finance a number of our own developments. The full selling value is expected to be reinvested by the end of the second quarter of 2017.
21 For more information, please see our press release of 10/01/2017 or www.montea.com.
This operation will therefore have a temporary impact on the results, but Montea still aspires to have the net current result grow by 5% a year. In addition, this sale improves the average term of the leases in the portfolio from 6.8 to 7.2 years and reduces the debt ratio of 55.4% to 50.5%".
In its press release of 17 September 2015, Montea announced a partnership agreement with MG Real Estate (De Paepe Group) to develop a logistics complex for Federal Mogul at MG Park De Hulst in Willebroek. This project is to be developed on ca. 48,000 m² of land, and will consist of 27,100 m² of storage floor space, 800 m² of office floor space and a mezzanine of 1,100 m²23. It is the property of the real estate companies Nyssa NV and Robinia One NV.
Through the contribution in kind of all (100% of) the shares of these two aforementioned companies, Montea has acquired the aforementioned land and logistics building.
The contribution in kind was carried out against mixed compensation, namely compensation in cash, and compensation in new Montea shares.
The new Montea shares were issued as a result of an increase of capital in line with the authorised capital,24 by a decision of the Statutory Manager of Montea on 23 March 2016. The transaction led to a reinforcement of the equity capital of €16,212,123.75, of which an amount of €9,114,605 was allocated to the capital and an amount of €7,097,518.75 to issue premiums.
22 For more information, cf. the press release of 23 March 2016 or go to www.montea.com.
23 For more information, cf. the press release of 17 September 2016 or go to www.montea.com.
24 Through the contribution of all (100% of) the shares of Nyssa NV and Robinia One NV in Montea.
The contributor was compensated with 447,231 new Montea shares for a total amount of € 16,212,123.75, and also with compensation in cash of €2,600,000. The 447,231 new Montea shares were ordinary shares, and have the same rights as the existing shares. They will share in the results of the complete financial year 2016.
In this way, the portfolio grows through a healthy combination of different financial sources and the debt burden is kept under control.
To support the further growth of Montea, the statutory manager has offered shareholders an optional dividend. 76.33% of coupon no. 15 (which represents the dividend for financial year 2015) was surrendered for new shares.
In this way, 292,952 new shares were issued on 10 June 2016, for a total issue sum of €10,419,013.65 (€5,970,386.14 in capital and €4,448,627.51 in issue premium) in line with the authorised capital.
As a result, as of 10 June 2016, the share capital of Montea is represented by 9,951,884 shares. The dividend rights that were not contributed, were paid out in cash. The net total paid out amounted to €3,231,860.
The sale of two buildings in France for € 51.2 million provides further financing of growth. The debt ratio fell from 55.8% at end 2015 to 51.6% on December 31, 2016.
In 2016, Montea has settled a contract for interest rate hedging of the IRS type (Interest Rate Swap) and closed subsequently a new hedge against current market conditions. This settlement will have a positive impact on the average funding cost for years to come.
Furthermore, Montea has took advantage of the low interest rates during 2016 in order to conclude new hedging instruments for a total notional amount of € 87.5 million through interest rate swaps with an average maturity of 8.5 years at an average rate of 0.6%. Due to this additional hedges and the reduction in debt because of the sale of two buildings in France, the hedge ratio amounted to 111% at 31 December 2016. This surplus cover is a direct consequence of the fact that the new hedges have been entered on December 31, 2016. At that time a part of the debt has already been repaid while the planned investments will be realised later in Q1 2017. This surplus cover is only temporary, the investments in Q1 2017 will decrease the hedging ratio below 100%. Montea expects that the investments of 2017 will decrease the hedge ratio to 85% by year end if no new hedging instruments are contracted.
25 For more information, cf. the press release of 10 June 2016 or go to www.montea.com.
On the basis of the EPRA earnings of € 24.01 million, the board of directors of the statutory management company of Montea will propose paying out a gross dividend of € 2.11 per share (€ 1.47 net per share), which entails a payout ratio26 of 87% with regard to the EPRA earnings. This means an increase of the gross dividend per share of 4% compared with 2015 (€ 2.03 gross per share), in spite of the increase in the number of shares entitled to dividends (from 9,211,701 to 9,951,884 shares) as a result of the contribution in kind and the optional dividend in 2016.
| KEY RATIO'S | 31/12/2016 | 31/12/2015 | |
|---|---|---|---|
| Key ratio's (€) | |||
| EPRA-profit per share (1) | 2,47 | 2,34 | |
| Result on the portfolio per share (1) | 1,33 | 0,27 | |
| Variations in the fair value of financial instruments per share (1) | -0,06 | 0,05 | |
| Net result (IFRS) per share (1) | 3,74 | 2,66 | |
| EPRA-profit per share (2) | 2,41 | 2,29 | |
| Proposed distribution | |||
| Payment percentage (compared with EPRA earnings) (3) | 87% | 89% | |
| Gross dividend per share | 2,09 | 2,03 | |
| Net dividend per share | 1,46 | 1,48 | |
| Weighted average number of shares | 9.722.190 | 9.012.751 | |
| Number of shares outstanding at period end | 9.951.884 | 9.211.701 |
(1) Calculation on the basis of the weighted average number of shares.
(2) Calculation on the basis of the number of shares entitled to dividends.
(3) The payout ratio is calculated in absolute figures on the basis of the consolidated result. The dividend is actually paid out on the basis of the statutory result of Montea Commm. VA.
On 1 March 2016, Els Vervaecke was appointed as the new CFO. The change in the management board in no way alters the objectives and strategic course of Montea.
Els Vervaecke used to work at EY as senior auditor. In the beginning of 2010, she started at Pylos (property developer) as Finance Manager for the Pylos Group, and became CFO for Pylos Benelux in 2014.
26 The payout ratio of 87% was calculated on the basis of the EPRA earnings and not on the basis of the earnings available for payout.
The total property assets of Montea amount to € 552 million, consisting of the valuation of the property portfolio for buildings inclusive buildings held for sale (€ 532 million), the fair value of the current developments (€ 10 million) and the fair value of the solar panels (€ 10 million).
| Total 31/12/2016 |
Belgium | France | The Netherlands | Total 31/12/2015 |
|
|---|---|---|---|---|---|
| Real estate portfolio - Buildings (0) | |||||
| Number of sites | 47 | 23 | 14 | 10 | 45 |
| Warehouse space (sqm) | 715.310 | 394.625 | 132.452 | 188.233 | 682.503 |
| Office space (sqm) | 67.668 | 36.794 | 13.671 | 17.203 | 66.506 |
| Total space (sqm) | 782.978 | 431.419 | 146.123 | 205.436 | 749.009 |
| Development potential (sqm) | 230.344 | 136.385 | 75.904 | 18.055 | 119.569 |
| Fair value (K EUR) | 532.063 | 268.364 | 94.418 | 169.282 | 480.721 |
| Investment value (K EUR) | 558.167 | 275.857 | 101.180 | 181.131 | 503.980 |
| Annual contractual rents (K EUR) | 38.929 | 19.850 | 7.515 | 11.565 | 36.448 |
| Gross yield (%) | 7,32% | 7,40% | 7,96% | 6,83% | 7,58% |
| Gross yield on 100% occupancy (%) | 7,43% | 7,63% | 7,96% | 6,83% | 7,82% |
| Un-let property (m²) (1) | 15.274 | 15.274 | 0 | 0 | 26.719 |
| Rental value of un-let property (K EUR) (2) | 619 | 619 | 0 | 0 | 1.150 |
| EPRA Vacancy rate | 1,1% | 2,2% | 0,0% | 0,0% | 3,3% |
| Real estate portfolio - Solar panels (3) | |||||
| Fair value (K EUR) | 9.978 | 9.978 | 0 | 0 | 10.369 |
| Real estate portfolio - Developments (4) | |||||
| Fair value (K EUR) | 10.281 | 0 | 3.045 | 7.235 | 25.640 |
(0) Inclusive of the building held for sale.
(1) Exclusive of the site in Willebroek for which Montea received severance compensation from Neovia Logistics in 2016.
(2) Exclusive of the estimated rental value of projects under construction and/or renovation.
(3) The fair value of the investment in solar panels is entered under heading "D" of the fixed assets in the balance sheet.
(4) The fair value of the project developments is entered in heading "C" of the fixed assets in the balance sheet.
Montea has current developments worth € 10.3 million consisting of the development for Scotch & Soda in Aalsmeer (Netherlands) and the development land in Camphin-en-Carembault near Lille (France).
The fair value of the solar panels pertains to eight solar panel projects: one in Brussels (Vorst), two in Wallonia (Heppignies and Milmort) and five in Flanders (Bornem, Herentals, Grimbergen, Puurs and Ghent).
27 Gross return on investment in real estate if 100% rented is calculated as current rental income of rented properties plus market rent of the vacant floor space, together, with regard to the fair value of the property portfolio.
| ABBREVIATED CONSOLIDATED PROFIT & LOSS ACCOUNT (K EUR) Analytical |
31/12/2016 12 months |
31/12/2015 12 months |
|---|---|---|
| CONSOLIDATED RESULTS NET RENTAL RESULT PROPERTY RESULT % compared to net rental result TOTAL PROPERTY CHARGES OPERATING PROPERTY RESULT General corporate expenses Other operating income and expenses OPERATING RESULT BEFORE THE PORTFOLIO RESULT % compared to net rental result FINANCIAL RESULT excl. Variations in fair value of the hedging instruments EPRA RESULT FOR TAXES Taxes |
40.518 41.258 101,8% -1.043 40.215 -3.769 -142 36.304 89,6% -11.780 24.524 -506 |
34.290 34.864 101,7% -1.332 33.532 -4.037 -58 29.437 85,8% -8.016 21.421 -324 |
| EPRA Earnings | 24.018 | 21.097 |
| per share | 2,47 | 2,34 |
| Result on disposals of investment properties | 8.131 | 5 |
| Result on disposals of other non-financial assets | 0 | 0 |
| Changes in fair value of investment properties | 4.788 | 2.470 |
| Other portfolio result | 0 | 0 |
| PORTFOLIO RESULT | 12.919 | 2.475 |
| Changes in fair value of financial assets and liabilities | -616 | 438 |
| RESULT IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | -616 | 438 |
| NET RESULT | 36.321 | 24.010 |
| per share | 3,74 | 2,66 |
The net rental income amounts to € 40.5 million, up by 18% from the previous year – The operating result before the result on the property portfolio amounts to € 36.3 million, an increase of 23%
− The full year impact of the rental income from investments in 2015:
− The rental income from the new investments during 2016:
The once-off income of € 2.3 million from the termination of the lease with Neovia Logistics was received in Q1 2016 (€ 1 million of which is considered equal to the rental fee of 2016 as rental income on a recurrent basis).
The sale of the building in St-Cyr-en-Val (FR) and the building in Tilloy-lez-Cambrai (FR) took place on 29 December 2016, and as such it had no impact on the net rental income of 2016.
The financial result exclusive of variations in the fair value of the financial instruments amounts to € 11.8 million, up by 47% from the same period the previous year. The average debt burden rose by € 63.6 million (24%). Conversely, there was a drop in the average financing cost to 3.0%29* for financial year 2016.
The rise of the financial result exclusive of variations in the fair value of the financial instruments is chiefly due to the settlement of an Interest Rate Swap (IRS) contract in 2016 for € 2.1 million and the concluding of a new swap at current market conditions which will have a positive impact on the average financing cost in the future. Furthermore, the increase is due to the increase in the average outstanding debts. The extra interest rate swaps for € 87.5 were taken out on 30 December so they had no impact on the financial costs.
28* The operating margin is obtained by dividing the operating result before the result on the property portfolio by the net rental income. 29* The financial cost is an average over the entire year, inclusive of the leasing payables in France, Belgium and the Netherlands, and was
calculated on the basis of the total financial costs regarding the average of the opening balance and closing balance of the financial debt burden for 2016, without taking account of the valuation of hedge instruments.
On 31/12/2016, Montea had a total bank debt (bilateral lines of credit) of € 185.1 million with 6 financial institutions. The financial debts at fixed and variable interest rate were hedged on 31 December 2016 for 111% by IRS contracts. This overhedging is a direct consequence of the fact that the new swaps were concluded already on 31 December 2016 at a time when a part of the debts had already been settled, while the planned investments will be carried out later in Q1 2017. This overhedging is only temporary. The investments in Q1 2017 are to bring the hedging ratio below 100%. Montea expects that the investments of 2017 will bring the hedge ratio to 85% again by the year's end if no new hedge instruments are concluded.
The result on the property portfolio amounts to € 12.9 million on 31/12/2016. This exceptional positive result is mainly due to the sale of the two buildings in France (St-Cyr-en-Val and Tilloy-lez-Cambrai) with a positive impact of € 8.1 million on the result from the sale of property investments, proof of the very prudent and conservative valuation of the property portfolio of Montea with regard to the great interest in the property market for quality logistics real estate. Furthermore, the result is due to a net positive variation in the fair value of the property portfolio as a result of a drop in the return on investment.
In the valuation of the solar panels, the capital gains are entered under a separate component of the equity capital. Capital losses are also entered under this component, unless they are realised or unless the fair value drops below the original investment cost.
The negative variations in the fair value of financial instruments arises out of the negative impact of the fair value of the existing interest hedging partially offset by the positive impact of the new IRS instruments taken out at the end of 2016 as a result of the renewed expectations of rising long-term interest rates.
The EPRA earnings together with the result on the portfolio and the variations in the fair value of financial instruments, led to net earnings (IFRS) of € 36.3 million in 2016 compared with € 24.01 million in 2015. The net earnings (IFRS) per share amount to € 3.74 per share compared with € 2,66 per share in 2015. The result on the property portfolio and variations in the fair value of financial instruments are not cash items and have no impact on the EPRA earnings.
The EPRA result on 31/12/2016 amount to € 24.0 million, an increase of 14% with respect to the same period last year.
On the basis of the distributable result, Montea will propose a gross dividend of € 2.11 per share to the general meeting of shareholders. This means an increase of the gross dividend per share of 4% compared with 2015, in spite of the dilution owing to the optional dividend and the increase of capital (by contribution in kind) carried out in 2015.
30 *Result on the property portfolio: this concerns the negative and/or positive variations in the fair value of the property portfolio plus any capital gains or losses from the construction of real estate.
| CONSOLIDATED BALANCE SHEET (EUR) |
31/12/2016 Conso |
31/12/2015 Conso |
|---|---|---|
| NON-CURRENT ASSETS | 545.461.627 | 517.685.997 |
| CURRENT ASSETS | 49.297.472 | 31.999.167 |
| TOTAL ASSETS | 594.759.099 | 549.685.164 |
| SHAREHOLDERS' EQUITY | 251.964.960 | 208.256.437 |
| Shareholders' equity attributable to shareholders of the parent company | 251.846.477 | 208.156.528 |
| Minority interests | 118.483 | 99.909 |
| LIABILITIES | 342.794.139 | 341.428.727 |
| Non-current liabilities | 310.381.242 | 291.353.554 |
| Current liabilities | 32.412.897 | 50.075.173 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 594.759.099 | 549.685.164 |
This total debt consists of:
On 31/12/2016 the EPRA NAV31\* amounts to € 27.80 per share compared with € 25.22 per share at 31/12/2015. On 31/12/2016 the EPRA NNNAV per share amounts to € 25.31 per share compared with € 22.60 per share at 31/12/2015.
The debt ratio32 of Montea amounts to 51.65%. The drop in the debt ratio compared to 31/12/2015 (55.77%) and 30/06/2016 (56.22%) is a result of the sale of the French sites in St.-Cyr-en-Val and Cambrai. Enhanced impacts on the debt ratio are primarily the ongoing developments which are financed with bank debts.
Montea meets all debt ratio covenants it has concluded with its financial institutions on the grounds whereof Montea may not have a debt ratio that exceeds 60%.
If the consolidated debt ratio of the public Regulated Real Estate Company (RREC) and its subsidiaries is more than 50% of the consolidated assets, after deducting the authorised financial hedge instruments, the public RREC draws up a financial plan with an implementation schedule, where it gives a description of the measures that will be taken to prevent the consolidated debt ratio from exceeding 65% of the consolidated assets.
A special report is drawn up on the financial plan by the auditor, confirming that the latter has verified the drafting of the plan, particularly as regards the economic premises thereof, and that the figures contained in that plan correspond with the accounts of the public RREC. The financial plan and the auditor's special report are submitted to the FSMA for information.
The general guidelines of the financial plan are entered in detail in the annual and semi-annual financial reports, which contain a description and justification of (a) how the financial plan was carried out in the course of the relevant period, and (b) how the RREC will carry out the plan in the future.
The consolidated debt ratio amounted to 51.65% on 31 December 2016. In historical terms, the debt ratio has been over 50% since 2008, reaching the highest level of 57.62% in mid-2010. An increase of capital was carried out on 2 July 2010 as a result of which the debt ratio dropped below 50%.
The debt ratio then climbed to 55.29% in September 2012. An increase of capital of €21.1 million was carried out on 20 December 2012 to finance the project for DHL Global Forwarding on Brucargo, thereby bringing the debt ratio down again to 50.80% in the first quarter of 2013.
Owing also to the dividend distribution, the acquisition of the shares of Evenstuk NV (for the property let to DSV Solutions) and the acquisition of the shares of Acer Parc NV (for the build-to-suit property let to St. Jude Medical), the debt ratio rose again to 52.82% on 31/12/2013.
31 *EPRA NAV: the EPRA NAV isthe NAV, adjusted to include real estate and other investments at fair value includes and excludes certain items that will probably not be applied for a business model with long-term investment. Cfr: www.epra.com. EPRA NAV per share: the EPRA NAV per share is the EPRA NAV based on the number of shares outstanding at the balance date. Cfr: www.epra.com.
32 Calculated according to the Royal Decree of 13 July 2014 with regard to regulated real estate companies.
An increase of capital was carried out in the first half of 2014 to anticipate the planned acquisitions and investments in the second half of 2014. These concern redevelopments at the sites of Grimbergen and Vorst, 3 build-to-suit projects in Belgium (2 on De Hulst in Willebroek and 1 on Brucargo) and 1 build-tosuit project in the Netherlands (Oss) and 2 sale-and-lease back transactions (Beuningen and Waddinxveen).
In the first half of 2015 it was decided to proceed to a contribution in kind (for the acquisition of Apeldoorn) and to an optional dividend to bring the debt ratio down in mid-2015 after the acquisitions of 's Heerenberg (NL) and Cofriset (FR) and the finalisation of the build-to-suit project in Heerlen (NL).
In the second half of 2015, the property in Tilburg was acquired (let to the Verstijnen group, and financed fully with debt). Furthermore, a number of build-to-suit projects were initiated (Movianto in Erembodegem, CDS in Vorst and Bakkersland in Schiphol) where the ongoing works are financed fully with debt. As a result of these operations, the debt ratio stood at 55.77% on 31/12/2015.
The build-to-suit projects Movianto in Erembodegem, CdS in Vorst, and Bakkersland in Aalsmeer were delivered in 2016. The works of these 3 projects were financed with debt. Furthermore, the acquisition of the project in Eindhoven (Jan de Rijk) and the acquisition of the land in Bornem (Bornem Vastgoed) were likewise financed with debt. To keep the debt ratio within limits, the project in Willebroek (Federal Mogul) was acquired in March 2016 by contribution in kind and an optional dividend was successfully paid out in June. In December 2016, the sale of St.-Cyr-En-Val and Cambrai went through, as a result of which the debt ratio was brought down again to 51.65% on 31/12/2016.
The debt ratio has at no time reached alarming levels, not even during the periods of financial crisis which erupted as of the end of 2008.
On the basis of this current debt ratio, the investment potential would amount to ca. € 226 million33 without exceeding the maximum debt ratio of 65%.
| in euro | 31/12/2016 | Investment potential | Balance sheet after investment potential |
|---|---|---|---|
| Investment properties | 535.136.085 | 226.000.000 | 761.136.085 |
| Other assets | 59.623.014 | 59.623.014 | |
| TOTAL ASSETS | 594.759.099 | 226.000.000 | 820.759.099 |
| Own capital | 251.964.960 | - | 251.964.960 |
| Liabilities | 342.794.139 | 226.000.000 | 568.794.139 |
| Non-current liabilities | 310.381.242 | 226.000.000 | 536.381.242 |
| Provisions | - | - | |
| Other non-current financial liabilities | 24.804.255 | 24.804.255 | |
| Deferred taxes - liabilities | - | - | |
| Other non-current liabilities | 285.576.988 | 226.000.000 | 511.576.988 |
| Current liabilities | 32.412.897 | - | 32.412.897 |
| Provisions | - | - | |
| Other current financial liabilities | - | - | |
| Accruals | 10.825.545 | 10.825.545 | |
| Other current liabilities | 21.587.351 | 21.587.351 | |
| TOTAL LIABILITIES | 594.759.099 | 226.000.000 | 820.759.099 |
| Debt ratio | 51,6% | 65,0% |
33 This calculation does not take account of the EPRA earnings for the future periods, the variations in the fair value of the property investments, nor any variations in the deferred charges, provisions for risks and deferred taxes of the liabilities.
Montea has concluded covenants with a number of banking institutions under the terms of which the debt ratio may not exceed 60%. Consequently, on the basis of the same calculation, the investment potential amounts to ca. € 124 million.
| Balance sheet after | |||
|---|---|---|---|
| in euro | 31/12/2016 | Investment potential | investment potential |
| Investment properties | 535.136.085 | 124.000.000 | 659.136.085 |
| Other assets | 59.623.014 | 59.623.014 | |
| TOTAL ASSETS | 594.759.099 | 124.000.000 | 718.759.099 |
| Own capital | 251.964.960 | - | 251.964.960 |
| Liabilities | 342.794.139 | 124.000.000 | 466.794.139 |
| Non-current liabilities | 310.381.242 | 124.000.000 | 434.381.242 |
| Provisions | - | - | |
| Other non-current financial liabilities | 24.804.255 | 24.804.255 | |
| Deferred taxes - liabilities | - | - | |
| Other non-current liabilities | 285.576.988 | 124.000.000 | 409.576.988 |
| Current liabilities | 32.412.897 | - | 32.412.897 |
| Provisions | - | - | |
| Other current financial liabilities | - | - | |
| Accruals | 10.825.545 | 10.825.545 | |
| Other current liabilities | 21.587.351 | 21.587.351 | |
| TOTAL LIABILITIES | 594.759.099 | 124.000.000 | 718.759.099 |
| Debt ratio | 51,6% | 60,0% |
The variations in the fair value of the property portfolio can also have a significant impact on the debt ratio. On the basis of the equity capital, the maximum admissible debt ratio of 65% would be excluded only in the event of a negative variation in the fair value of the property investments of more than € 122 million. This corresponds to a drop of 21% in the existing portfolio.
| Balance sheet after | |||
|---|---|---|---|
| in euro | 31/12/2016 | Investment potential | investment potential |
| Investment properties | 535.136.085 | - 122.000.000 |
413.136.085 |
| Other assets | 59.623.014 | 59.623.014 | |
| TOTAL ASSETS | 594.759.099 | - 122.000.000 |
472.759.099 |
| Own capital | 251.964.960 | - 122.000.000 |
129.964.960 |
| Liabilities | 342.794.139 | 342.794.139 | |
| Non-current liabilities | 310.381.242 | - | 310.381.242 |
| Provisions | - | - | |
| Other non-current financial liabilities | 24.804.255 | 24.804.255 | |
| Deferred taxes - liabilities | - | - | |
| Other non-current liabilities | 285.576.988 | 285.576.988 | |
| Current liabilities | 32.412.897 | - | 32.412.897 |
| Provisions | - | - | |
| Other current financial liabilities | - | - | |
| Accruals | 10.825.545 | 10.825.545 | |
| Other current liabilities | 21.587.351 | 21.587.351 | |
| TOTAL LIABILITIES | 594.759.099 | - 122.000.000 |
472.759.099 |
| Debt ratio | 51,6% | 65,0% |
On the basis of the current state and valuation of the portfolio by an independent expert, Montea sees no substantial possible negative variations in the fair value. Montea is therefore of opinion that the current debt ratio of 51.65% provides a sufficient buffer to deal with possible further negative variations in the existing portfolio.
The debt ratio has at no time reached alarming levels, not even during the periods of financial crisis which erupted as of the end of 2008.
Montea deems that the debt ratio will not rise above 65% and that no additional measures need to be taken on the basis of the planned changes in the composition of the real estate portfolio and the expected development of the equity capital.
Montea's goal remains to continue its financing with a debt ratio of ca. 55% and will see to it that said ratio will never exceed 60% (as contained in the bank covenants).
The debt ratio of 55% is perfectly justified given the nature of the real estate in which Montea invests, i.e. logistics and semi-industrial real estate, with an average net return of ca. 7%.
Should a situation nonetheless arise where certain events require an adjustment of the company's strategy, it will do so at once and inform the shareholders accordingly in the semi-annual and annual financial reporting.
Montea has certain standards and amendments for the first time. This will apply to the financial years beginning at or after 1 January 2016. Montea has published no other standard, interpretation or amendment not yet in force, applied early.
While these new standards and amendments to be first applied in 2016, they had no material impact on the consolidated financial statements / the condensed consolidated interim financial statements of the Group.
Below the nature and effect of the new and / or revised standards and interpretations are explained:
The purpose of the '2010–2012 cyclus' with improvements of the standards and interpretations is to remove inconsistencies and to clarify texts. The improvements apply to financial years that begin on or after 1 February 2015. It concerns the following improvements:
IFRS 2 Share-based payments: This amendment, which is prospectively applied, clarifies certain issues concerning the definitions for "performance condition" and "service condition" which were previously part of the definition of vesting conditions.
The purpose of the '2012–2014 cycle' with improvements of the standards and interpretations is to remove inconsistencies and to clarify texts. The improvements apply to financial years that begin on or after 1 February 2015. It concerns the following improvements:
• IFRS 5 Non-current assets held for sale and discontinued operations. Assets (or groups of assets that are disposed of) are as a rule disposed of by sale or by payment to owners. The amendment clarifies that a switchover from one disposal method to the other is not considered as a new disposal plan, but as a continuation of the original plan. So there is no question of the application of the requirements of IFRS 5 being interrupted. The amendment is applied prospectively.
The amendments have no impact for the group.
The standards and interpretations that were published on the date of publication of the Montea financial statements, but were not yet in force, are explained below. Where applicable, Montea plans to apply these standards and interpretations as soon as they enter into force.
| STOCK MARKET PERFORMANCE | 31/12/2016 | 31/12/2015 |
|---|---|---|
| Share price (€) At closing Highest |
46,37 48,42 |
39,20 40,00 |
| Lowest Average |
35,10 42,36 |
33,08 36,75 |
| Net asset value per share (€) EPRA NNAV EPRA NAV Premium (%) Dividend return (%) Dividend (€) Gross Net |
25,31 27,80 66,8% 4,5% 2,09 1,46 |
22,60 25,22 0,55 0,05 2,03 1,48 |
| Volume (number of securities) Average daily volume Volume of the period Number of shares Market capitalisation (K €) Market capitalisation at closing Ratios (%) Velocity |
7.717 1.983.235 9.951.884 461.469 19,93% |
4.156 1.059.158 9.211.701 361.099 11,83% |
Dividend yield (%): Gross dividend divided by the stock price at the end of the period "Velocity": Volumefort he periode divided by the number of shares
Based on the closing price on 31/12/2016 (€ 46.37) the Montea shares were listed 66,8% above the value of the EPRA NAV34.
Montea's board of directors will propose to the General Meeting of Shareholders that a gross dividend be paid of € 2.11 gross per share (€ 1.48 net per share).
There were no significant events after the balance sheet date.
There were no transactions between affiliated parties in 2016.
34 *EPRA NAV per share: the EPRA NAV per share is the EPRA NAV based on the number of shares outstanding at the balance sheet date. Cfr www.epra.com.
| (in EUR X 1 000) | 31.12.2016 31.12.2015 | ||
|---|---|---|---|
| Net result (IFRS) | 36.321 | 24.010 | |
| Changes for calculation of the EPRA result | |||
| To exclude: | |||
| (i) | Variations in fair value of the investment properties and properties for sale | -4.788 | -2.470 |
| (ii) | Result on sale of investment properties | -8.131 | -5 |
| (vi) | Variations in fair value of the financial assets and liabilities | 616 | -438 |
| EPRA result | 24.018 | 21.097 | |
| Weighted average number of shares | 9.722.190 | 9.012.751 | |
| EPRA result per share (€/share) | 2,47 | 2,34 |
| (in EUR X 1 000) | 31/12/2016 | 31/12/2015 |
|---|---|---|
| IFRS NAV | 251.846 | 208.157 |
| NAV per share (€/share) | 25,31 | 22,60 |
| Effect of exercise of options, convertible debt and other equity instruments | ||
| Diluted net asset value after effect of exercise of options, convertible debt and other equity instruments | 251.846 | 208.157 |
| To exclude | ||
| (iv) IV. Fair value of financial instruments |
24.804 | 24.188 |
| EPRA NAV | 276.651 | 232.345 |
| Number of shares in circulation per end period | 9.951.884 | 9.211.701 |
| EPRA NAV per share (€/share) | 27,80 | 25,22 |
| (in EUR X 1 000) | 31/12/2016 | 31/12/2015 | ||
|---|---|---|---|---|
| EPRA NAV | 276.651 | 232.345 | ||
| Number of shares in circulation per end of period | 9.951.884 | 9.211.701 | ||
| EPRA NAV (€/share) | 27,80 | 25,22 | ||
| To add: | ||||
| (i) | I. | Fair value of financial instruments | -24.804 | -24.188 |
| (ii) | II. | Revaluations of the fair value of financials with fixed interest rate | - | - |
| EPRA NNNAV | 251.846 | 208.157 | ||
| Number of shares in circulation per end of period | 9.951.884 | 9.211.701 | ||
| EPRA NNNAV (€/share) | 25,31 | 22,60 |
ANNUAL FINANCIAL REPORT OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2016 TO 31/12/2016 INCLUDED REGULATED INFORMATION
EMBARGO UNTIL 21/02/2017 – 8.30 AM
| EPRA VACANCY RATE | ||||||
|---|---|---|---|---|---|---|
| (in EUR X 1 000) | (A) | (B) | (A/B) | (A) | (B) | (A/B) |
| Estimated rental value (ERV) for vacancy |
Estimated rental value portfolio (ERV) |
ERPA vacancy ratio | Estimated rental value (ERV) for vacancy |
Estimated rental value portfolio (ERV) |
ERPA vacancy ratio | |
| (in %) | (in %) | |||||
| 31/12/2016 | 31/12/2016 | 31/12/2016 | 31/12/2015 | 31/12/2015 | 31/12/2015 | |
| Belgium | 429 | 19.724 | 2,2% | 874 | 15.714 | 5,6% |
| France | - | 7.175 | 0,0% | 276 | 10.228 | 2,7% |
| The Netherlands |
- | 11.659 | 0,0% | - | 8.680 | 0,0% |
| TOTAL | 429 | 38.558 | 1,1% | 1.150 | 34.623 | 3,3% |
| PORTFOLIO RESULT | 31/12/2016 | 31/12/2015 |
|---|---|---|
| (in EUR X 1 000) | ||
| Result on sale of property investments | 8.131 | 5 |
| Variations in fair value of property investments | 4.788 | 2.470 |
| PORTFOLIO RESULT | 12.919 | 2.475 |
| FINANCIAL RESULT exc. variations in fair value of financial instruments | 31/12/2016 | 31/12/2015 |
|---|---|---|
| (in EUR X 1 000) | ||
| Financial result | -12.396 | -7.578 |
| To exclude: | ||
| Variations in faire value of financial assets & liabilities | 616 | -438 |
| FINANCIAL RESULT exc. variations in fair value of financial instruments | -11.780 | -8.016 |
35 Exclusive of the EPRA measures, some of which are considered as an APM, and are calculated under Chapter 1.8 EPRA Performance measures.
| OPERATING MARGIN | 31/12/2016 | 31/12/2015 |
|---|---|---|
| (in EUR X 1 000) | ||
| Net rental result | 40.518 | 34.290 |
| Operating result (before the result on portfolio) | 36.304 | 29.437 |
| OPERATING MARGIN | 89,6% | 85,8% |
| AVERAGE COST OF DEBT | 31/12/2016 | 31/12/2015 |
|---|---|---|
| (in EUR X 1 000) | ||
| Financial result | -10.296 | -7.578 |
| Variations in fair value of assets and financial liabilities | 616 | -438 |
| TOTAL FINANCIAL DEBT (A) | -10.912 | -7.140 |
| AVERAGE OUTSTAND FINANCIAL DEBT (B) | 324.766 | 261.185 |
| AVERAGE COST OF DEBT (A/B) (*) | 3,0% | 3,1% |
(*) exc. the one-off financial cost of the settlement of an IRS
| HEDGE RATIO | 31/12/2016 | 31/12/2015 |
|---|---|---|
| (in EUR X 1 000) | ||
| Notional amount of interest rate swaps | 242.500 | 155.000 |
| Financial debt at fixed interest rate | 774 | 1.598 |
| Bonds at fixed interest rate | 85.000 | 85.000 |
| Financial debts at balance date at fixed rate and hedging instruments (A) | 328.274 | 241.598 |
| Long-term and short-term financial debt (IFRS) | 295.906 | 294.598 |
| Financial debts balance date at fixed rate and floating rate (B) | 295.906 | 294.598 |
| HEDGE RATIO (A/B) | 111% | 82% |
The Board of Directors of the statutory business manager of Montea and management are fully aware of the interest of developing and maintaining sound governance and, as a result, of retaining a good-quality portfolio. Montea imposes strict and clear standards for (i) optimising and improving existing buildings, (ii) commercial management, (iii) the technical management of buildings, and (iv) any investments in the existing buildings. The aim of these criteria is to limit vacancies, as well as to increase the maximum sustainable value of the property portfolio.
The principal risks and uncertainties for the remaining months of the financial year are focused on:
Montea's turnover largely consists of the rent generated by leases to third parties. Non-payment by tenants and a decrease in the occupancy rate may have a negative impact on results.
Montea is moreover exposed to the risk of loss of rental income linked to the departure of tenants before the expiry of their lease. The risk actually entails that it takes longer to find new (suitable) tenants and that the latter moreover demand a lower rent. These elements can have a negative impact on the earnings of Montea. The average term of the leases also determines the risk profile of Montea. This amounts to 7.7 years on 31 December 2016 on the basis of the first expiry date.
Montea actively manages and monitors its existing and future clients in order to minimise vacancies and the turnover of tenants in its property portfolio.
The vast majority of rental income includes annual indexation in the rent (in Belgium, indexation is annual, based on the health index; in France, it is based on the construction cost index37 while in the Netherlands, indexation is based on the consumer price index). All current lease agreements in France and the Netherlands are subject to movements in the indices mentioned. None of the current rental income is exposed to a reduction in the initial rent as the result of any fall in the index.
Before a new client is accepted, its solvency is checked. On signing each lease agreement, an unconditional bank guarantee is required as a minimum in which the amount guaranteed corresponds with 3 to 6 months of rent. Rent is payable in advance on a monthly, bi-monthly or quarterly basis
36 For more information about the strategy implemented by Montea, please see the Half-Yearly Financial Report of 30/06/2016 and the Annual Report of 31/12/2015. Where necessary, Montea's policy will be adjusted based on the risk factors described.
37 ICC – indice de coût de construction.
In the context of an alliance with third parties (project developers, landowners, etc.), Montea positions itself as an active partner in property development. In doing so, Montea aims to have a lease agreement already in place with a tenant prior to commencing the construction of a new development. Montea has no plans to become involved in speculative development projects (so-called "blank" projects, where there are no tenants arranged in advance).
In the property sector, Montea targets primarily logistics real estate (storage and transhipment of goods) and tries to spread its risk in terms of type of tenant/sector and geographic location.
The Montea team, potentially assisted by external consultants, is responsible for the daily management of the buildings, handles the technical management of the property portfolio38 and presents efficient and flexible solutions for improving the portfolio's quality and sustainability. Moreover, the team will make every effort to proactively minimise any possible vacancies.
The internal team follows up the operational management of the technical maintenance of the buildings, as well as the coordination of the ongoing construction and renovation. The team submits a maintenance and renovation schedule to the Board of Directors for the purpose of securing optimal long-term portfolio profitability.
Taking its relatively small team into account, the Company is exposed to an organisational risk if certain staff members in a key position were to leave. The unexpected departure of some staff members could have adverse consequences for the development of the Company and could entail additional management costs.
Montea conducts a policy whereby the vast majority of its building management costs are passed on to its tenants. In 2016, there were € 920 K of costs that could not be passed on to tenants. € 5.9 million was also invested in improvement works to the existing portfolio. This amount corresponds to 1.11% of the fair value of the property portfolio.
If certain employees who occupy key positions should leave, Montea can fill those vacancies temporarily through outsourcing. Montea offers a pay package in line with the market and provides additional courses and seminars on a regular basis so that its employees can get further training in their field.
38 However, Montea is assisted by external partners in carrying out certain tasks. Montea continues to take responsibility for these areas and also handles coordination.
a) Description of the risks
The liquidity risk takes the form of Montea running the risk at a given moment in time of not having the necessary cash resources and no longer being able to obtain the required financing to meet its short-term debts.
On 31 December 2016, Montea had a total of € 235 million in lines of credit, of which € 185.1 million was already drawn down. During 2017, only € 10 million of these lines of credit fall due and will have to be repaid or refinanced.
The liquidity and financing risk is restricted by:
To prevent a future liquidity problem, Montea is currently taking action to secure in good time the funding, required for the further growth of the portfolio. The company currently foresees no problem in securing further funding sources in order to maintain the balance between the funding cost, as well as the term and the diversification of these funding sources.
The short-term and/or long-term rates on the (international) financial markets are subject to significant fluctuations.
With the exception of lease agreements39 and 3 of the 4 debenture loans,40 all of Montea's financial debts have been agreed at a variable interest rate (bilateral lines of credit at the EURIBOR 3-month rate).
39 Montea has financial debt in relation to a current lease agreement of €0.8 million. This lease agreement expires in 2017. At the time,
this agreement was entered into with a fixed quarterly payment (including the interest charge). 40 In 2014 Montea issued a debenture loan with a fixed interest rate of 3.355% and in 2013 one at a fixed interest rate of 4.107%. For more information, please refer to the press releases of 20/05/2014 and 24/06/2013. In 2015, Montea issued two additional debenture loans of €25 million each, one with a variable EURIBOR 3-month interest rate + 205 bps, and one with a fixed interest rate of 3.42%. For more information on these 2 last issues, please refer to the press release of 26/06/2015 or www.montea.com.
To hedge the risk of increases in interest rates, Montea conducts a policy whereby part of its financial debt is covered by interest rate hedging instruments. This prudential policy prevents a rise in nominal interest rates without a simultaneous growth in inflation, resulting in an increase in real interest rates. Any rise in real interest rates cannot be offset by an increase in rental income through indexation. It is also a fact that there is always a time lapse between a rise in nominal interest rates and the indexation of rental income.
Taking account of the lines of credit with variable interest rates, the hedging instruments, the fixed interest rate on the bond loan and the fixed interest rates on the lease agreements, the average interest rate charge in 2016 amounted to 3.0%.
Montea's business is affected partly by the overall economic climate. Lower economic growth can have an indirect effect on occupancy rates and rental income. It can also increase the risk that some tenants may not be able to fulfil their obligations under their lease.
For Montea, this risk is offset to some extent by the diversification of its revenue streams (e.g. solar panels), as well as its geographical diversification (Belgium, France and the Netherlands) and the signing of leases for longer terms with high-quality clients from a range of different sectors.
We also see a growing appetite for logistics real estate in Belgium, France and the Netherlands, which puts downward pressure on the investment yields. As a result, Montea has to be involved from the beginning of the project.
Investment pipeline
In the current climate of yield compression, and taking account of the sound investment policy pursued by Montea, it is more difficult to acquire quality Class A buildings on the basis of reasonable returns. As a result, build-to-suit projects are acquiring increasing importance in our investment portfolio. We expect that the property portfolio will grow to € 650 million in financial year 2017.
EPRA vacancy rate and term of the leases
On 31/12/2016, the EPRA vacancy rate amounted to 1.1%, chiefly as a result of the current vacancy at the site in Milmort. Montea's goal is to keep the EPRA vacancy rate below 5%. The average term of leases until the first termination option is 7.7 years. On the basis of already announced growth, Montea expects to maintain the average term for its leases above 7 years by the end of the financial year.
Financing strategy
Taking account of the 60% debt ratio restriction, Montea still has an investment capacity of € 124 million. Montea is striving for a diversified financing policy, where the aim is to bring the term of our loans (currently 5.4 years) in line with the term of our leases (currently 7.7 years on average). In December 2016, Montea analysed its debt position, and, prior to the expiry dates of a number of lines of credit, refinanced debts at lower market conditions. We expect the hedge ratio to fall to 8% by the end of 2017 as a result of growth in the portfolio and thus of debt charges.
Operating margin
The operating margin amounted to 89.6% on 31/12/2016. On the basis of already announced growth, Montea expects to be able to maintain the operating margin over 89%.
EPRA results
On the basis of the EPRA earnings of € 24.0 million in 2016, the coming net income from the acquired projects and, taking account of an estimated extension of certain leases and the letting of currently vacant premises, Montea expects growth of at least 5% in EPRA earnings per share in 2017, in spite of the temporary impact in the beginning of 2017 of the sales in France at the end of 2016.
As a benchmark player in the logistics and semi-industrial property sector, Montea makes every effort to conduct itself as a socially responsible company. For this reason, Montea is involved in an ongoing improvement process in which economic, environmental and social considerations are systematically taken into account in the way the business is conducted on a day-to-day basis. Montea aims not only to comply with statutory requirements, but through its initiatives and actions, seeks to go further than the legislation in effect.
Montea's management is convinced that taking a responsible approach to these activities is a decisive factor in the company's sustainability.
Montea has implemented, together with its outside specialists, its own "Blue Label". The plan encompasses Montea's overall approach with regard to sustainability, both for its existing portfolio and for new investments.
There are various standards worldwide in relation to sustainability for the property sector. The best known of these are: HQE (France), BREEAM (UK standard) and LEED (US standard). Montea has included the most important standards in its "Blue Label" plan.
As a member of the VIL (Flemish Logistics Institute), Montea supports the Lean and Green sustainability programme. Lean and Green encourages and supports companies in making dramatic reductions to their CO2 emissions. Given that Montea is very much involved with sustainability and making its property portfolio sustainable, it was the ideal time to join in with this project.
On 10 December 2013, Montea was presented by the Lean and Green Award by Minister Joke Schauvliege for its efforts made regarding the sustainability of its property portfolio.
On 8 May 2015, Montea was the first Belgian property investor to earn the be awarded the Lean & Green Star in recognition of reducing CO2 emission in the Belgian portfolio b 26%. The Lean & Green Star certificate was officially issued on 16 June 2015.
By obtaining this additional independent recognition, Montea is able to pass on its sustainability targets to both its partners (contractors, architects, suppliers, etc.) and to its tenants.
At Montea, we are convinced that we, as the owner of logistics buildings, can act as the catalyst to promote the Lean and Green programme with our tenants and in so doing develop a coherent concept on sustainability. DHL Freight, VDAB, Coca-Cola Enterprises Belgium and XPO are all Montea tenants that have received the Lean and Green Award.
As a responsible company, Montea is well aware of the potential consequences of its business activities for the environment in the broad sense of the word and as such it subscribes to targets in relation to sustainable development.
The Company undertakes to manage its property assets with respect for the following aspects:
Montea has developed a rational policy aimed at optimising the use of energy.
In 2012 the programme regarding energy scans was further optimised, along with the implementation of Life Cycle Analyses. On the basis of these detailed analyses and additional energy calculations a complete study was performed for the sites in Mechelen and Puurs.
This study enabled Montea to draw up a full investment programme with these items:
With this in-depth study Montea confirms its focus on optimising the sustainability and quality of its real estate portfolio.
Montea also took the initiative to equip the sites at Erembodegem, Mechelen, Milmort, Heppignies, Bornem, Herentals, Puurs Schoonmansveld 18 and Grimbergen with a monitoring system. Montea can thus monitor its energy management closely and to make adjustments when there is extreme consumption.
From the monitoring mentioned above, the total energy produced from the PV installations is up to the forecast expectations: MWh was produced by the solar panels, representing a saving of 1,100 tonnes of CO2 emissions.
Depending on their operations, our tenants use up to 90% of the solar energy produced. Each quarter, we inform our tenants about the solar energy generated, as well as the solar energy consumed locally and the financial benefit.
In 2016, 40% of the total consumption of electricity for the Belgian property portfolio consisted of green electricity.
At the end of 2011, a Facility Management programme was introduced. This programme is an internal management system and also provides tenants with access to a secure "My Montea" web portal. The Facility Management programme features the following applications:
• By using the "work order" module in "My Montea", Montea is able to monitor and track its work orders and their due dates accurately and then generate reports for each site, project and, if required, each tenant.
Implementation of the Facility Management programme fits in perfectly with the "Blue Label" plan and the transparency that Montea wishes to give its tenants and partners.
Montea encourages its tenants to sort their waste, making separate containers available and offering solutions for waste collection.
In compliance with article 5.11 of the issue terms for the bonds issued on 28 June 2013 (totalling € 30 million), on 28 May 2014 (totalling € 30 million), and on 30 June 2015 (totalling € 50 million), Montea will make a statement in its consolidated annual and half-yearly figures regarding the compliance with certain covenants imposed in art. 5.10 of these issue terms.
Montea declares that:
This press release also contains a number of statements focused on the future. Statements such as these are subject to risks and uncertainties that may result in the actual results differing substantially from the results that might have been expected from the forward-looking statements made in this press release. Some of the major factors that may affect these results include changes to the economic situation, as well as commercial and competitive circumstances resulting from future court rulings or changes to legislation.
This information is also available on our website www.montea.com.
Montea Comm. VA is a public property investment company (PPIC – SIIC) under Belgian law specialising in logistical property in Belgium, France and the Netherlands, where the company is a benchmark player. Montea literally offers its customers room to grow by providing versatile, innovative property solutions. In this way, Montea creates value for its shareholders. Montea was the first Belgian property investor to be awarded the Lean & Green Star in recognition of effectively reducing CO2 emissions in the Belgian portfolio by 26%. On 31/12/2006 Montea's property portfolio represented total space of 782,978 m² across 46 locations. Montea Comm. VA has been listed on NYSE Euronext Brussels (MONT) and Paris (MONTP) since 2006.
Jo De Wolf www.montea.com +32 53 82 62 62 [email protected]
Follow MONTEA in SHAREHOLDERSBOX of:
| CONSOLIDATED PROFIT & LOSS ACCOUNT (EUR x 1.000) |
31/12/2016 12 months |
31/12/2015 12 months |
|
|---|---|---|---|
| I. | Rental income | 41.833 | 35.438 |
| II. | Write-back of lease payments sold and discounted | 0 | 0 |
| III. | Rental-related expenses | -1.315 | -1.148 |
| NET RENTAL RESULT | 40.518 | 34.290 | |
| IV. | Recovery of property charges | 0 | 0 |
| V. | Recovery of charges and taxes normally payable by tenants on let properties | 4.942 | 4.832 |
| VI. | Costs payable by tenants and borne by the landlord for rental damage and refurbishment | 0 | 0 |
| at end of lease | |||
| VII. | Charges and taxes normally payable by tenants on let properties | -5.863 | -5.824 |
| VIII. | Other rental-related income and expenses | 1.660 | 1.565 |
| PROPERTY RESULT | 41.258 | 34.864 | |
| IX. | Technical costs | -122 | -114 |
| X. | Commercial costs | -257 | -233 |
| XI. | Charges and taxes of un-let properties | -31 | -102 |
| XII. | Property management costs | -590 | -839 |
| XIII. | Other property charges | -43 | -43 |
| PROPERTY CHARGES | -1.043 | -1.332 | |
| PROPERTY OPERATING RESULT | 40.215 | 33.532 | |
| XIV. | General corporate expenses | -3.769 | -4.037 |
| XV. | Other operating income and expenses | -142 | -58 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 36.304 | 29.437 | |
| XVI. | Result on disposal of investment properties | 8.131 | 5 |
| XVII. | Result on disposal of other non-financial assets | 0 | 0 |
| XVIII. Changes in fair value of investment properties | 4.788 | 2.470 | |
| XIX. | Other portfolio result | 0 | 0 |
| OPERATING RESULT | 49.223 | 31.912 | |
| XX. | Financial income | 656 | 581 |
| XXI. | Net interest charges | -12.308 | -8.556 |
| XXII. | Other financial charges | -128 | -41 |
| XXIII. | Change in fair value of financial assets & liabilities | -616 | 438 |
| FINANCIAL RESULT | -12.396 | -7.578 | |
| XXIV. Share in the result of associates and joint ventures | 0 | 0 | |
| PRE-TAX RESULT | 36.827 | 24.334 | |
| XXV. | Corporation tax | -506 | -324 |
| XXVI. Exit tax | 0 | 0 | |
| TAXES | -506 | -324 | |
| NET RESULT | 36.321 | 24.010 | |
| Attributable to: | |||
| Shareholders of the parent company | 36.321 | 24.010 | |
| Minority interests | 0 | 0 | |
| EPRA EARNINGS | 24.018 | 21.097 | |
| Number of shares in circulation at the end of the period | 9.951.884 | 9.211.701 | |
| Weighted average of number of shares of the period | 9.722.190 | 9.012.751 | |
| EPRA earnings per share (EUR) | 2,47 | 2,34 |
| CONSOLIDATED BALANCE SHEET (EUR x 1.000) |
31/12/2016 | 31/12/2015 | |
|---|---|---|---|
| I. | NON-CURRENT ASSETS | 545.462 | 517.686 |
| B. Intangible assets | 189 | 214 | |
| C. Investment properties | 535.136 | 506.934 | |
| D. Other tangible assets | 10.098 | 10.500 | |
| G. Trade receivables and other non-current assets | 39 | 38 | |
| II. | CURRENT ASSETS | 49.297 | 31.999 |
| A. Assets held for sale | 7.721 | 0 | |
| D. Trade receivables | 10.499 | 7.691 | |
| E. Tax receivables and other current assets | 6.607 | 4.069 | |
| F. Cash and cash equivalents | 3.350 | 4.930 | |
| G. Deferred charges and accrued income | 21.121 | 15.309 | |
| TOTAL ASSETS | 594.759 | 549.685 | |
| TOTAL SHAREHOLDERS' EQUITY | 251.965 | 208.256 | |
| I. | Shareholders' equity attributable to shareholders of the parent company | 251.846 | 208.157 |
| A. Share capital | 200.282 | 185.288 | |
| B. Share premiums | 32.439 | 20.893 | |
| C. Reserves | -17.196 | -22.035 | |
| D. Net result of the financial year | 36.321 | 24.010 | |
| II. | Minority interests | 118 | 100 |
| LIABILITIES | 342.794 | 341.429 | |
| I. | Non-current liabilities | 310.381 | 291.354 |
| B. Non-current financial debts | 285.577 | 267.165 | |
| a. Credit institutions | 175.132 | 156.333 | |
| b. Financial leasings | 184 | 774 | |
| c. Other | 110.261 | 110.058 | |
| C. Other non-current financial liabilities | 24.804 | 24.188 | |
| E. Other non-current liabilities | 0 | 0 | |
| II. | Current liabilities | 32.413 | 50.075 |
| B. Current financial debts | 10.590 | 27.491 | |
| a. Credit institutions | 10.000 | 26.667 | |
| b. Financial leasings | 590 | 824 | |
| c. Other | 0 | 0 | |
| C. Other current financial liabilities | 0 | 0 | |
| D. Trade debts and other current debts | 10.848 | 7.915 | |
| a. Exit taks | 2.014 | 1.455 | |
| b. Other | 8.833 | 6.460 | |
| E. Other current liabilities | 150 | 3.993 | |
| F. Accrued charges and deferred income | 10.826 | 10.677 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 594.759 | 549.685 |
| CHANGES IN SHAREHOLDERS' EQUITY (EUR x 1.000) |
Share capital | Share premiums | Reserves | Result | Deduction of transfer rights and costs |
Minority interests |
Shareholders' equity |
|---|---|---|---|---|---|---|---|
| ON 31/12/2015 | 185.288 | 20.893 | 1.222 | 24.010 | -23.256 | 100 | 208.256 |
| Elements directly recognized as equity | 14.994 | 11.546 | 1.599 | 0 | -2.070 | 18 | 26.087 |
| Capital increase | 14.994 | 11.546 | 0 | 0 | 0 | 0 | 26.540 |
| Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investment properties |
0 | 0 | 2.070 | 0 | -2.070 | 0 | 0 |
| Positive change in value of solar panels (IAS 16) | 0 | 0 | -720 | 0 | 0 | 0 | -720 |
| Own shares | 0 | 0 | 249 | 0 | 0 | 0 | 249 |
| Own shares held for employee option plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 18 | 18 |
| Corrections | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Subtotal | 200.282 | 32.440 | 2.820 | 24.010 | -25.326 | 118 | 234.344 |
| Dividends | 0 | 0 | -18.700 | 0 | 0 | 0 | -18.700 |
| Result carried forward | 0 | 0 | 24.010 | -24.010 | 0 | 0 | 0 |
| Result for the financial year | 0 | 0 | 0 | 36.321 | 0 | 0 | 36.321 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| ON 30/06/2016 | 200.282 | 32.439 | 8.130 | 36.321 | -25.326 | 118 | 251.965 |
(1) + (2) The total reserves in the balance sheet under "C. Reserves" consist of the 'Reserves (1)' and of the "Deduction Right of transaction costs (2)"
| ABBREVIATED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR x 1.000) |
31/12/2016 12 months |
31/12/2015 12 months |
|
|---|---|---|---|
| Net result | 36.321 | 24.010 | |
| Other items of the comprehensive income | -2.790 | -5.230 | |
| Items taken in the result Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investments properties |
-2070 -2.070 |
-5443 -5.443 |
|
| Changes in the effective part of the fair value of authorized cash flow hedges | 0 | 0 | |
| Items not taken in the result | -720 | 213 | |
| Impact of changes in fair value of solar panels | -720 | 213 | |
| Comprehensive income | 33.531 | 18.780 | |
| Attributable to: | |||
| Shareholders of the parent company | 33.531 | 18.780 | |
| Minority interests | 0 | 0 |
| CONSOLIDATED CASH FLOW STATEMENT (EUR x 1.000) |
31/12/2016 12 months |
31/12/2015 12 months |
|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR | 4.930 | 4.250 |
| Net result | 36.321 | 24.010 |
| Financial cash elements (not dedectable of the net profit) to become the operating result | 11.780 | 8.016 |
| Received interests | -656 | -581 |
| Payed interests on finances | 12.436 | 8.597 |
| Received dividends | 0 | 0 |
| Taxes (dedected from the net result) to become the operating result Non-cash elements to be added to / deducted from the result |
506 -12.598 |
324 -2.774 |
| Depreciations and write-downs | 211 | 139 |
| Depreciations/write-downs (or write-back) on intangible and tangible assets (+/-) | 200 | 196 |
| Write-downs on current assets (+) | 11 | 2 |
| Write-back of write-downs on current assets (-) | 0 | -59 |
| Other non-cash elements | -12.808 | -2.913 |
| Changes in fair value of investment properties (+/-) | -4.788 | -2.470 |
| IAS 39 impact (+/-) | 616 | -438 |
| Other elements | 0 | 0 |
| Realized gain on disposal of investment properties Provisions |
-8.131 0 |
-5 0 |
| Taxes | -506 | 0 |
| NET CASH FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING | ||
| CAPITAL REQUIREMENTS | 36.009 | 29.576 |
| Change in working capital requirements | -11.920 | 1.880 |
| Movements in asset items | -11.159 | -3.047 |
| Trade receivables | -1 | -1 |
| Other long-term non-current assets | -2.808 | 4.762 |
| Other current assets | -2.538 | -2.483 |
| Deferred charges and accrued income | -5.812 | -5.327 |
| Movements in liability items Trade debts |
-762 2.865 |
4.927 -2.487 |
| Taxes, social charges and salary debts | 68 | 2.861 |
| Other current liabilities | -3.843 | 3.205 |
| Accrued charges and deferred income | 149 | 1.347 |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 29.018 | 31.456 |
| Investment activities | -23.498 | -85.177 |
| Acquisition of intangible assets | -66 | -180 |
| Investment properties and development projects | -31.174 | -85.843 |
| Other tangible assets Solar panels |
-55 | -93 |
| Disposal of investment properties | -330 8.127 |
-2.841 3.780 |
| Disposal of superficy | 0 | 0 |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES (B) | -23.498 | -85.177 |
| FREE CASH FLOW (A+B) | 5.520 | -53.721 |
| Change in financial liabilities and financial debts | 1.502 | 66.073 |
| Increase (+)/Decrease (-) in financial debts | 1.511 | 66.511 |
| Increase (+)/Decrease (-) in other financial liabilities | -9 | -438 |
| Increase (+)/Decrease (-) in trade debts and other non-current liabilities | 0 | 0 |
| Change in other liabilities Increase (+)/Decrease (-) in other liabilities |
0 0 |
0 0 |
| Increase (+)/Decrease (-) in other debts | 0 | 0 |
| Change in shareholders' equity | 8.108 | 595 |
| Increase (+)/Decrease (-) in share capital | 14.994 | 9.227 |
| Increase (+)/Decrease (-) in share premium | 11.546 | 6.243 |
| Increase (+)/Decrease (-) in consolidation differences | 0 | 0 |
| Increase (+)/Decrease (-) in minority interests | 19 | 0 |
| Dividends paid | -18.700 | -15.262 |
| Increase (+)/Decrease (-) in reserves | 249 | 387 |
| Increase (+)/Decrease (-) in changes in fair value of financial assets/liabilities Disposal of treasury shares |
0 0 |
0 0 |
| Dividend paid (+ profit-sharing scheme) | 0 | 0 |
| Interim dividends paid (-) | 0 | 0 |
| Financial cash elements | -11.780 | -8.016 |
| NET FINANCIAL CASH FLOW (C) | -2.170 | 58.651 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (A+B+C) | 3.350 | 4.930 |
p
41 The full report from the property assessor dated 31/12/2016 was not included in this annual report, but only the conclusions. This is because the full report contains confidential information that may be of interest to competitors.
| 31/12/2016 | |||||||
|---|---|---|---|---|---|---|---|
| Initial Yield | passing rent | Potential rent | ERV | Investment value | Fair value | Net value ('kosten koper') |
|
| Belgium | 7,27% | 20.051.934 4 | 21.690.586 ( | 19.914.215 6 | 275.856,500 ¢ | 269.128.400 | 251,623,500 |
| The Netherlands | 6,38% | 11,565,044 € | 11.658.760 € | 11,658,760 € | 181.131.200 € | 169,281,600 0 | 169.281.600 |
| France | 7,43% | 7.514.800 | 7.514.800 6 | 7.174.535 6 | 101.179.700 € | 94.417.600 | 94.417.600 ( |
| TOTAL | 7,01% | 39.131.778 C | 40.864.146 C | 38.747.500 € | 558.167.400 € | 532.827.600 € | 515.322.700 0 |
| Construction year / Year most important renovations |
Offices m² | Warehouses m² | Total m² | Contracted Rent Income |
Estimated Rental Value (*) |
Occupancy rate (as % of total m²) |
|
|---|---|---|---|---|---|---|---|
| Belgium | |||||||
| AALST (ABDEFG), TRAGEL 48-58 AALST (CHIJ), TRAGEL 48-58 |
1975 - 2002 - 2009 2002 - 2009 |
2.098 540 |
16.606 19.017 |
18.704 19.557 |
599.668 1.239.397 |
597.440 858.762 |
100,0% 100,0% |
| AALST (KLM), TRAGEL 48-58 | 1985 - 2009 | 1.397 | 4.591 | 5.988 | 278.313 | 255.615 | 100,0% |
| BORNEM, INDUSTRIEWEG 4-24 | 1977 - 2016 | 1.437 | 13.163 | 14.600 | 598.915 | 573.855 | 100,0% |
| GRIMBERGEN, EPPEGEMSESTWG 31-33 | 1980 - 1995 - 1996 - 2003 -2014 | 2.033 | 31.136 | 33.169 | 1.198.311 | 1.392.784 | 98,4% |
| HOBOKEN SMALLANDLAAN 7 | 2001 | 402 | 3.836 | 4.238 | 125.000 | 85.980 | 100,0% |
| NIJVEL, RUE DE L'INDUSTRIE | 2000 | 1.385 | 12.649 | 14.034 | 385.842 | 552.325 | 100,0% |
| PUURS, SCHOONMANSVELD 18 | 1998 | 1.334 | 11.907 | 13.241 | 874.327 | 583.000 | 100,0% |
| EREMBODEGEM, INDUSTRIELAAN 27 | 1973 - 2007 | 3.457 | 13.316 | 16.773 | 889.677 | 840.380 | 99,3% |
| MECHELEN, ZANDVOORTSTRAAT 16 | 1984 - 1990 - 1998 - 2013 | 1.979 | 27.246 | 29.225 | 1.169.534 | 941.030 | 100,0% |
| VORST, HUMANITEITSln 292, SITE LIPTON VORST, HUMANITEITSln 292, SITE CM |
1984 - 2007 1966 - 2007 - 2014 |
778 0 |
4.819 7.150 |
5.597 7.150 |
351.226 363.938 |
254.220 286.000 |
100,0% 100,0% |
| VORST, HUMANITEITSln 292, SITE RESTAURANT (STATION) | 1971 - 1995 | 2.110 | 0 | 2.110 | 0 | 189.900 | 0,0% |
| VORST, HUMANITEITSln 292, SITE METRO | 2015 | 0 | 3.850 | 3.850 | 551.296 | 269.500 | 100,0% |
| VORST, HUMANITEITSln 292, SITE CdS | 2016 | 0 | 10.505 | 10.505 | 500.730 | 457.900 | 100,0% |
| MILMORT, AVENUE DU PARC INDUSTRIEL | 2000 | 1.225 | 29.112 | 30.337 | 566.359 | 1.090.095 | 53,6% |
| HEPPIGNIES, RUE BRIGADE PIRON | 2011 | 730 | 13.381 | 14.111 | 811.199 | 564.830 | 100,0% |
| ZAVENTEM, BRUCARGO 830 | 2012 | 4.328 | 23.951 | 28.279 | 2.156.811 | 1.999.390 | 100,0% |
| ZAVENTEM, BRUCARGO 831 | 2013 | 1.896 | 7.891 | 9.787 | 629.257 | 677.685 | 100,0% |
| GENT, EVENSTUK | 2013 - 2016 | 755 | 48.154 | 48.909 | 1.707.748 | 1.862.778 | 100,0% |
| ZAVENTEM, BRUCARGO 763 | 1995 -1999 / 2007 / 2009 | 1.198 | 4.875 | 6.073 | 274.000 | 333.215 | 100,0% |
| GENT, KORTE MATE | 2011 | 1.012 | 12.024 | 13.036 | 663.241 | 608.620 | 100,0% |
| ZAVENTEM, BRUCARGO 738-1 WILLEBROEK, DE HULST SITE NEOVIA |
2014 2014 |
1.574 512 |
4.471 21.500 |
6.045 22.012 |
482.142 0 |
488.775 953.940 |
100,0% 100,0% |
| WILLEBROEK, DE HULST SITE DACHSER | 2014 | 1.652 | 7.381 | 9.033 | 1.019.849 | 844.155 | 100,0% |
| WILLEBROEK, DE HULST SITE FEDERAL MOGUL | 2016 | 789 | 28.328 | 29.117 | 1.416.422 | 1.334.490 | 100,0% |
| EREMBODEGEM, WATERKERINGSTRAAT 1 | 2016 | 1.516 | 14.423 | 15.939 | 996.573 | 951.851 | 100,0% |
| Total Belgium | 36.137 | 395.282 | 431.419 | 19.849.775 | 19.848.515 | 96,6% | |
| France | |||||||
| SAVIGNY LE TEMPLE, RUE DU CHROME | 1992 / 2007 | 646 | 15.650 | 16.296 | 621.861 | 602.952 | 100,0% |
| FEUQUIERES, ZI DU MOULIN 80 | 1995 - 1998 - 2000 | 763 | 8.230 | 8.993 | 358.000 | 247.308 | 100,0% |
| ROISSY, RUE DE LA BELLE ETOILE 280 | 1990 - 2001 | 737 | 3.285 | 4.022 | 312.885 | 281.540 | 100,0% |
| BONDOUFLE, RUE HENRI DUNANT 9-11 DECINES-CHARPIEU, RUE ARTHUR RIMBAUD 1 |
1990 1996 |
1.307 1.108 |
2.678 2.713 |
3.985 3.821 |
236.353 374.396 |
239.100 293.080 |
100,0% 100,0% |
| LE MESNIL AMELOT, RUE DU GUE 4 | 1992 - 2015 | 1.375 | 7.241 | 8.616 | 832.941 | 775.422 | 100,0% |
| ALFORTVILLE, LE TECHNIPARC | 2001 | 0 | 1.995 | 1.995 | 220.490 | 219.450 | 100,0% |
| ROISSY, RUE DE LA BELLE ETOILE 383 | 2001 | 1.965 | 4.492 | 6.457 | 640.211 | 615.885 | 100,0% |
| LE MESNIL AMELOT, RUE DU GUE 1-3 | 1998 | 1.211 | 4.043 | 5.254 | 492.692 | 472.860 | 100,0% |
| SAINT PRIEST, RUE NICEPHORE NIEPCE | 2008 | 1.000 | 15.803 | 16.803 | 600.000 | 662.544 | 100,0% |
| MARENNES, LA DONNIERE | 1998 - 2000 / 2001 | 524 | 19.965 | 20.489 | 860.538 | 860.538 | 100,0% |
| SAINT-LAURENT-BLANGY, ACTIPARK | 2006 | 747 | 18.828 | 19.575 | 635.558 | 604.856 | 100,0% |
| SAINT-MARTIN-DE-CRAU | 2002 | 1.300 | 18.445 | 19.745 | 825.274 | 795.400 | 100,0% |
| SAINT PRIEST, PARC DES LUMIERES | 2006 | 988 | 9.084 | 10.072 | 503.600 | 503.600 | 100,0% |
| Total France | 13.671 | 132.452 | 146.123 | 7.514.799 | 7.174.535 | 100,0% | |
| Netherlands | |||||||
| ALMERE, STICHTSE KANT | 2008 | 510 | 25.338 | 25.848 | 1.195.410 | 1.291.901 | 100,0% |
| WADDINXVEEN, EXPORTWEG | 2009 | 2.069 | 17.380 | 19.449 | 970.990 | 1.033.745 | 100,0% |
| OSS, VOLLENHOVERMEER | 2014 | 680 | 26.825 | 27.505 | 1.044.328 | 1.218.225 | 100,0% |
| BEUNINGEN, ZILVERWERF | 2009 | 2.987 | 14.908 | 17.895 | 1.035.436 | 909.753 | 100,0% |
| S HEERENBERG, DISTRIBUTIEWEG | 2009 | 2.376 | 20.593 | 22.969 | 1.384.815 | 1.391.685 | 100,0% |
| HEERLEN, BUSINESS PARK AVENTIS | 2015 | 4.787 | 9.273 | 14.060 | 1.460.804 | 1.176.973 | 100,0% |
| APELDOORN, IJSELDIJK | 2011 | 701 | 8.308 | 9.009 | 553.538 | 617.128 | 100,0% |
| TILBURG, GESWORENHOEKSEWEG | 2004 | 1.546 | 19.150 | 20.696 | 1.001.874 | 1.078.210 | 100,0% |
| Aalsmeer, Japanlaan | 2016 | 1.097 | 29.653 | 30.750 | 1.717.488 | 1.873.040 | 100,0% |
| Total Netherlands | 17.203 | 188.233 | 205.436 | 11.564.682 | 11.658.759 | 100,0% | |
The statutory auditor, Ernst & Young Bedrijfsrevisoren, represented by Joeri Klaykens, confirms that their control activities on the consolidated financial statements, prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union, have been substantially completed and that these did not result in any significant corrections that should be made to the accounting figures, resulting from the consolidated financial statements and included in this press release.
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