Earnings Release • Feb 22, 2018
Earnings Release
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ANNUAL FINANCIAL PRESS RELEASE FROM THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED
REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
• The EPRA result1 amounts to € 26.8 million, an increase of 12% compared with the EPRA result of €24.0 million in 2016. The net rental income increased by 1% from € 40.5 million in 2016 to € 40.8 million in 2017. The net rental income in 2016 included a higher severance compensation from Neovia Logistics (€2.3 million) compared to that received in 2017 from SAS Automotive (€1.3 million). Furthermore, 2 French properties which brought in an annual net rental income of €4 million were sold in December 2016. These 2 impacts are offset (+ € 0.3 million) by rental income received in 2017 from recent acquisitions and developments.
The EPRA result per share 2 in 2017 amounted to € 2.58, an increase of 4.5% compared with € 2.47 in 2016, including 7% more weighted average number of shares as a result of the increase of capital carried out in September 2017.
The operating margin amounted to 95.2% compared with 89.6% the previous year. The operating margin is strongly influenced by the one-off compensation received from SAS Automotive and that received from the delivery of the building let to DHL Aviation. Without these one-off compensations, the operating margin amounts to 92%.
The growth in the fair value in Belgium (€ 118.5 million) is chiefly due to:
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.
In the Netherlands, the fair value of the property portfolio (€ 36.9 million) increased as a result of:
The fair value of the existing portfolio in France (€ 11.0 million) increased as a result of:
3 The occupancy rate is compared on the basis of the occupied m² in relation to the total m². The projects under development were left out of consideration in both the numerator and the denominator.
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.
ANNUAL FINANCIAL PRESS RELEASE OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
| BE | FR | NL | 31/12/2017 | 31/12/2016 | ||
|---|---|---|---|---|---|---|
| RESTATED (0) | ||||||
| 12 months | 12 months | |||||
| Real estate portfolio | ||||||
| Real estate portfolio - Buildings (1) | ||||||
| Number of sites | 28 | 14 | 12 | 54 | 47 | |
| Surface of the real estate portfolio | ||||||
| Logistics and semi-industrial warehouses | sqm | 534.983 | 120.034 | 231.710 | 886.727 | 715.310 |
| Offices | sqm | 46.838 | 14.284 | 21.099 | 82.221 | 67.668 |
| Total surface | sqm | 581.821 | 134.318 | 252.809 | 968.948 | 782.978 |
| Development potential | sqm | 98.746 | 53.000 | 16.906 | 168.652 | 230.344 |
| Value of the real estate portfolio | ||||||
| Fair value (2) | K€ | 358.149 | 94.342 | 205.027 | 657.518 | 532.063 |
| Investment value (3) | K€ | 367.103 | 101.085 | 219.379 | 687.567 | 558.167 |
| Occupancy Rate | % | 93,9% | 100,0% | 100,0% | 96,3% | 98,1% |
| Real estate portfolio - Solar panels | ||||||
| Fair value | K€ | 12.771 | 0 | 0 | 12.771 | 9.978 |
| Real estate portfolio - Projects under construction | ||||||
| Fair value (2) | K€ | 25.966 | 14.122 | 8.351 | 48.439 | 10.281 |
| Consolidated results | ||||||
| Results | ||||||
| Net rental result | K€ | 40.793 | 40.518 | |||
| Operating result before the porfolio result | K€ | 38.830 | 36.304 | |||
| Operating margin (5)* | % | 95,2% | 89,6% | |||
| Financial result (excl. Variations in fair value of the financial | K€ | -11.107 | -11.780 | |||
| instruments) (6)* | ||||||
| EPRA result (7)* | K€ | 26.785 | 24.018 | |||
| Weighted average number of shares EPRA result per share (8)* |
€ | 10.392.676 2,58 |
9.722.190 2,47 |
|||
| Result on the portfolio (9) | K€ | 3.972 | 8.801 | |||
| Variations in fair value of the financial instruments (10) | K€ | 5.791 | -616 | |||
| Net result (IFRS) | K€ | 36.548 | 32.204 | |||
| Net result per share | € | 3,52 | 3,31 | |||
| Consolidated balance sheet | ||||||
| IFRS NAV (excl. minority participations) (11) | K€ | 332.911 | 251.846 | |||
| EPRA NAV (12)* | K€ | 344.521 | 276.650 | |||
| Debts and liabilities for calculation of debt ratio | K€ | 388.148 | 307.164 | |||
| Balance sheet total | K€ | 748.426 | 594.759 | |||
| Debt ratio (13) | % | 51,9% | 51,6% | |||
| IFRS NAV per share | € | 28,67 | 25,31 | |||
| EPRA NAV per share (14)* | € | 29,67 | 27,80 | |||
| EPRA NNAV per share (15)* | € | 29,14 | 25,97 | |||
| Share price (16) | € | 42,95 | 46,37 | |||
| Premium | % | 49,8% | 83,2% |
The EPRA result per share concern the EPRA result based on the weighted average number of shares, which does not correspond to the previous section 'Net current Result per share' as Montea always used the number of shares entitled to dividend.
1.2.1. EPRA result per share4 * was € 2.58: a rise of 4.5% on a recurrent basis compared with the same period in the previous year
The EPRA result5 amounts to € 26.8 million, up 12% during financial year 2017, compared with € 24.0 million during the same period in the previous year. The EPRA result per share amounts € 2.58 per share compared with € 2.47 per share last year.
This growth of € 2.8 million is due chiefly to:
• Partially offset (€ 0.4 million) by the increase in the estimated taxes due to the paid exit tax which turned out to be higher than originally foreseen.
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 result of the core activities and indicates to what extent the current dividend payments
are supported by the profit. This result is calculated as the net result (IFRS) excluding the result on the portfolio and the changes in the fair value of financial instruments. See also www.epra.com.
2017 saw the following lease activity:
9/01/2017 - Signature of long-term lease agreement with LabCorp - 100% occupancy for the site Mechelen (BE) 6
LabCorp BVBA and Montea signed a new lease agreement for the lease of 5,750 m² of storage space and 570 m² of office space. The multi-tenant site is fully leased with this transaction. LabCorp BVBA, (www.labcorp.com) takes unit 2 from February 2017, based on a lease agreement with a fixed term of 9 years. The annual rent for the unit amounts € 257,000.
In October 2016, it was announced that SAS AUTOMOTIVE BELGIUM NV, former supplier of Volvo, was forced
to close. It will therefore terminate the lease early, i.e. on 31 January 2017. The rent payable for the remaining term of the lease is covered by a oneoff severance pay. Montea has signed a lease with Bleckmann België NV for a fixed rental
period of 5 months, until October 2017. The building consists of 11,910 m² of storage space and 1,012 m² of office space, and will be used as storage space for clothing and accessories. The rent amounts to €26,500 per month.
In December 2014, Montea and Panafrance concluded a partnership agreement for the development of a logistics platform on a 103,000 m² plot in Camphin-en-Carembault9 . Two distribution centres are being developed on the plot of ca. 18,000 m² and ca. 24,000 m² (total floor space: ca. 42,000 m²). Danone (D.P.F.F.) will rent 1 unit of ca. 6,000 m² for a fixed period of 9 years in the ca. 18,000 m² building. For the other two units (ca. 12,000 m²), Montea has already signed a lease with DSM Food Specialties France SAS. This brings the occupancy rate of this building to 100%. The transaction will generate a rental income of €740,440 per year for the entire building as of April 2018.
6 For more information, see the press release of 9/01/2017 or www.montea.com.
7 For more information, see the press release of 8/05/2017 or www.montea.com.
8 For more information, see the press release of 5/09/2017 or www.montea.com.
9 For more information, see the press release of 03/12/2014 and of 30/05/2017 or www.montea.com.
Montea and Parker Hannifin Manufacturing Belgium have signed a lease for a 9-year term for a 9,900 m² unit at the Milmort site, with a strategic location along the E313 in the direction of Antwerp and the E40 in the direction of Brussels. This agreement generates a rental income of €283,000 per year as of August 2017. The Parker group is a world leader in the production and distribution of components for the mobile, industrial and aerospace sector (www.parker.com).
Montea and Nippon Express Belgium have once again signed a lease for a 9-year term for a 5,300 m² unit on
"De Hulst" in Willebroek. This sustainable logistics estate boasts a unique location between the A12 and the E19 Brussels/Antwerp motorways. Nippon Express Belgium is already a lessee of a 6,000 m² built-to-suit project at Brucargo in Zaventem (www.nipponexpress.com). The new agreement is to generate a rental income of €263,000 per year as of September 2017.
ANNUAL FINANCIAL PRESS RELEASE OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
Studio 100 is particularly delighted to announce that it has found a new location for the 40-45 musical. It is the Montea site near the A12 and N16 interchange in Puurs. In addition to excellent accessibility, this location provides enough parking and has all the winning assets to host the blockbuster production.
A land close to the A12 and N16 interchange in Puurs. The entire site
covers more than 40,000 m² in all. Studio 100 will transform this site completely in the coming months into an accessible, public-friendly and modern theatre, where visitors can enjoy a captivating performance in all comfort. A large temporary structure is being erected to measure for 40-45 on the lawn of the buildings. The artistic concept, including rolling bleachers, is fully retained. The warehouse of the building will be used as foyer and reception area. The office area will be arranged as an artistic and production facility. Sufficient parking will also be provided. Studio 100 has signed a lease which will generate rent totalling €700.000 per year as of March 2018.
10 For more information, see the press release of 5/09/2017 or www.montea.com.
11 For more information, see the press release of 5/09/2017 or www.montea.com.
12 For more information, see the press release of 13/12/2017 or www.montea.com.
Montea and Profit Europe NV have signed a lease for a fixed term of 9 years which will generate rental income
of €122,380 per year. The lease for unit 7, previously rented to Movianto, comprises 2,860 m² storage space, 56 m² office space and 10 parking places. Profit Europe NV will use the site as storage space for sprinkler installation components (www.profittings.eu).
Montea «Space for Growth» - site Erembodegem - Aalst (BE)
At 31/12/2017 the occupancy rate amounts to 96.3%.
The vacancy concerns the building in Willebroek, for which a severance payment was received in 2016 from Neovia Logistics, now let for 25% to Nippon Express. Furthermore, a part of the building in Milmort (formerly rented to Vincent Logistics) is vacant. The property that was leased to SAS Automotive, for which a one-off severance payment was received in Q1 2017, is recognized as vacant. However, after year end 30% of this site was let to Facil Europe, which will have a positive impact on the occupancy rate of Q1 2018.
Thanks to the new investments with long-term leases and the new leases mentioned above, Montea achieved its goal in 2017 to obtain an average term of leases on first expiry date of more than 7 years. At the end of 2017, the average duration of contracts at first break date is 7.5 years.
In December 2013, Montea concluded a partnership agreement with MG Real Estate for the development of the sustainable logistics "MG Park De Hulst" in Willebroek, with 150,000 m² of logistics floor space in all to be developed. Today, Montea is once again adding a premium distribution centre to its portfolio at MG Park De Hulst. The site covers ca. 20,900 m² and comprises 13,100 m² of storage space, 1,000 m² of office space, and 45 parking places. The building is equipped with refrigeration and freezing and deep-freeze units (-27°C), a sprinkler system and 12 loading docks, and will constitute the operational base for the logistical service of various horeca customers of Metro Cash & Carry Belgium.
13 For more information, see the press release of 22/12/2017 or www.montea.com.
14 For more information, see the press release of 30/03/2017 or www.montea.com.
ANNUAL FINANCIAL PRESS RELEASE OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
This operation represented a total investment value of €8.8 million (in line with the fair value determined by the property expert) and generates a gross initial yield of ca. 7.1%. In 2014 Montea had already developed a customised 3,500 m² distribution centre for Metro in Vorst (BE). Metro signed a lease
for that facility with a fixed term of 27 years. A lease has been concluded for the site in Willebroek with a fixed term of 10 years. Metro Cash & Carry Belgium is part of the international Metro group, which is active in 35 countries and one of the largest international retailers (www.metro.be - www.metrogroup.de).
On 12/02/2015, MG Real Estate and Montea signed a partnership agreement with the Brussels Airport Company for the development of a new international hub for DHL Aviation NV of no fewer than 31,500 m² of warehouse and 5,000 m² of office floor space. The building was planned directly at the entrance of Brucargo, the logistics hotspot of Brussels Airport for cargo
handling. DHL, the world leader in transport and logistics and "the logistics company for the world," rents this extremely strategic building for its worldwide network for a fixed period of 15 years. The new hub replaces the current outdated building and quadruples the existing capacity, from 12,000 to 39,000 shipments per hour, thanks to the advanced automation of the sorting techniques used. Montea has once again concluded a long term superficies agreement with the Brussels Airport Company. This transaction represented a total investment value of € 30.5 million and generates a gross initial yield of ca. 7.3%.
In June 2016 SACO Groupair signed an agreement to work with Montea on the construction and lease of a new state-of-the-art airfreight building with adjoining offices at Brucargo. The Cordeel group was responsible for the development of this new complex, which is made up of approx. 4,200 m² of warehousing and some 800 m² of office space.
15 For more information, see the press release of 12/02/2015 or www.montea.com.
16 For more information, see the press release of 28/06/2016 or www.montea.com.
SACO Groupair is a well-established forwarder. Its head office is in Hamburg and the company, which has
already been operating for some years at Brucargo (www.sacogroupair.com), has signed a lease agreement with a fixed term of nine years. In total, the site employs around 35 people and enables the group to grow rapidly. This transaction represents a total investment value of € 3.6 million and generates a gross initial yield of approximately 7.8%.
30/05/2017 - Sale & Lease back of an industrial building of ca. 1,500 m² in the Paris region – Investment value: € 1.93 million17
Montea invested in an industrial building in Alfortville of ca 1,500 m² with a strategic location at the foot of the A86 motorway (Pompadour) just a few minutes of the western (A4) and southern (A6) motorway. The building comprises ca. 1,100 m² of storage space and 400 m² office space and mezzanines. This investment is in the framework of the extension of the existing portfolio in the Paris
region, where Montea has invested € 29.7 million by purchasing 6 completed rented industrial buildings near Paris Charles De Gaulle airport and the Paris Region.18 A lease agreement has been concluded with Brard, a woodworking company (www.brard-entreprise.fr) for a term of 9 years (first break after 6 years). This transaction represents a total investment value of € 1.93 million. It generates an additional rent of € 0.16 million per year.
In June 2016 Montea started, in cooperation with Built to Build, with the development of a distribution centre for NSK in the logistics zone Vossenberg West, at Tilburg. One month earlier than the predetermined timing, the state-of-the-art logistics distribution center was delivered, consisting of 17,300 m² of storage space, 1,900
m² of offices and 1,900 m² of mezzanine. The building is rented for a fixed period of 10 years, the initial rent is € 1 million per year. This transaction represents a total investment value of € 15.4 million (in line with the investment value determined by the real estate expert), is financed by proper capital and generates an initial gross yield of approx. 6.50%.
17 For more information, see the press release of 30/05/2017 or www.montea.com.
18 For more information, see the press release of 30/09/2008 or www.montea.com.
19 For more information, see the press release of 01/06/2017 or www.montea.com.
ANNUAL FINANCIAL PRESS RELEASE OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
Montea has signed an agreement concerning the acquisition of a strategically located plot of land of 59,900
m². The land is located on the Vilvoorde interchange along the Brussels Ring Road. This location provides excellent connections to the E19, A12, and E40 motorways, as well as a smooth connection to Brussels Airport and the Brussels-Capital Region. Montea wishes to develop a customised logistics and/or distribution building on this plot, once it has found a tenant. The project could encompass ± 35,000 m² of storage space. In the meantime, Montea is already in talks with a number of potential tenants, where the focus
is placed on the high-quality logistics and (urban) distribution. With a total investment value of € 10 million, this acquisition proceeded through the takeover of 100% of the shares of VILPRO NV.
In September 201622 Mainfreight signed a cooperation agreement with Montea for the construction and rental
of a new crossdock centre with offices in Genk. Willy Naessens assumed the development of this new building that consists of ca. 8,000 m² storage
space and ca. 800 m² office space.
The lease was concluded for a fixed term of nine years and three months. Some 150 people will be employed at this location. This transaction represented a total investment value of €7.1 million and generates a gross initial yield of ca. 7.3%.
20 For more information, see the press release of 1/08/2017 or www.montea.com.
21 For more information, see the press release of 1/08/2017 or www.montea.com.
22 For more information, see the press release of 15/09/2016 or www.montea.com.
Montea has acquired a logistics distribution centre at the Business Park Vosdonk, located in Etten-Leur, between Breda and Roosendaal, right on the A58 motorway (Exit 19). The logistics distribution centre consists
Montea «Space for Growth» - Bas Logistics – Etten-Leur site (NL)
of 6,870 m² storage space and 1,730 m² office space and is rented to Bas Logistics. Montea has also acquired a 20,808 m² adjoining plot of land for the development and rent of an extension of the existing distribution centre for Bas Logistics. The building will consist of ca. 9,900 m² storage space, a mezzanine of ca. 900 m² and a workplace of ca 570 m². The buildto-suit project will be operational by April 2018.
Bas Logistics has signed a triple-net lease for a fixed period of 13 years for the existing distribution centre and for a fixed period of 12.5 years for the extension. The company is an all-round logistics service provider with branches in Etten-Leur (Netherlands), Cambiago (Italy) and Bratislava (Slovakia) (www.bas.eu). This transaction represented a total investment value of € 14 million (in line with the investment value defined by the real estate expert), financed by bank debt, and generated a net initial yield of about 6.0%.
Montea concluded a partnership agreement with MG Real Estate in December 2013 to develop the sustainable logistics parc "MG Park De Hulst" in Willebroek, with a total of 150,000 m² logistics space to be developed. Montea buys a high-quality distribution centre for Decathlon as final part of this successful cooperation. In addition, Montea buys the remaining plots of land for € 3.2 million adjacent to the existing developments of Dachser and Federal Mogul.
The development for Decathlon is on a plot of land of ca 71,000 m² and comprises 46,274 m² storage space,
1,022 m² offices and 256 parking places. The entire distribution for Decathlon Benelux is organized from this development (www.decathlon.be). Decathlon, already a tenant of Montea for its facility in Bornem, rents the building for a minimum fixed period of 10 years.
Montea «Space for Growth» - Site Willebroek MG Park De Hulst - Decathlon (BE)
This operation represented a total investment value of € 31.6 million and generates a gross initial yield of ca. 6.5%.
23 For more information, see the press release of 24/10/2017 or www.montea.com.
24 For more information, see the press release of 6/11/2017 or www.montea.com.
Montea has acquired a plot of land of ca. 15,000 m² at activity park Schiphol Logistics Park, uniquely located directly on the A4 and N201 motorways and next to the A5 and A9. A new distribution centre is being
Montea «Space for Growth» - site Schiphol Logistcs Park (NL)
constructed here that will comprise ca. 4,500 m² of warehouses and two office units totalling ca. 900 m2 . The project will be delivered by April 2018.
In the meantime, an initial lease has been signed with Thomsen Select, a company specialised in air cargo groupage and transport. This company will rent half of the building for a fixed period of 10 years. The other 50% and the strategically located separate truck parking of ca. 3,000 m² will be offered on the rental market. This transaction represents a total investment value of €7.12 million (in line with the investment value determined by the real estate expert) and generated a net initial yield of about 7.6%.
Montea has acquired a building in Le Mesnil-Amelot, with unique location adjacent at Roissy Charles de Gaulle. The 3,002 m² distribution center is divided into 2 units and is rented to Facilit'Air (1,996 m²) en Select Service Partners (1,006 m²). The total investment value amounts to € 3,29 million with an initial return of 6.76%. Montea is already owner since 2008 of the adjacent buildings and sees this investment as a complement to a previous investment. With this transaction, Montea has a portfolio of approximately 17,000 m² at this airport location.
Luchtfoto: Terrein 48 ha - Tiel (NL)
Montea has reached an agreement with De Kellen BV to acquire ca 48 hectares on the De Kellen industrial estate in Tiel. Its central location in the Netherlands makes the site eminently suitable for organizing national distribution. The site can be easily reached from the A15 motorway. It lies on the Amsterdam Rhine Canal and De Waal, and has its own quay facilities. The intended use is broadly defined and the size of the site enables Montea to develop an ambitious master plan for the environment.
25 For more information, see the press release of 8/11/2017 or www.montea.com.
26 For more information, see the press release of 8/11/2017 or www.montea.com.
27 For more information, see the press release of 6/11/2017 or www.montea.com.
The plot of land comprises 3 parts:
Montea is currently already in negotiations with some candidates for an initial development to measure on the first 13.5-hectare zone. The parties expect to close the transaction, after the due diligence, by Q1 2018. Montea ultimately wishes to develop 25.5 hectares for logistics, distribution and production activities. The total lead time for the project is estimated at 4 to 6 years.
Wayland Real Estate and Montea have signed an agreement for the development of "LogistiekPark A12", a
206,000 m² plot, on which a logistics project exceeding 130,000 m² can be developed. Wayland Real Estate and Montea are currently finalising the master plan which will be unveiled within a foreseenable time. This cooperation had come into being under guidance and support of XO Property Partners.
Photo: Artist impression "LogistiekPark A12" Waddinxveen (NL)
In December 2014, Montea and Panafrance concluded a partnership agreement for the development of a logistics platform on 103,000 m² in Camphin-en-Carembault30. The land has a unique location to the south of Lille on the A1 motorway in the heart of the Lille-Paris-Lyon logistics triangle. Two distribution centres of 18,000 m² and 24,000 m² (with a total of 42,000 m²) can be developed on the land.
28 For more information, see the press release of 30/03/2017 or www.montea.com.
29 For more information, see the press release of 30/05/2017 or www.montea.com.
30 For more information, see the press release of 03/12/2014 or www.montea.com.
In the meantime, for phase 1 of the project, Montea will develop a distribution centre of ca. 18,000 m², that
Montea «Space for Growth» - site Camphin-en-Carembault FR)
can be divided into 3 units. DSM Food Specialties France SAS will rent 12,000 m² (2 of the 3 units) for a fixed period of 9 years. DSM Food Specialties (DSM Group) is specialised in the production and export of enzymes for the food industry (www.dsm.com).
The development will be operational in the first quarter of 2018. The transaction represents a total investment value of € 11.2 million. Upon letting the third unit, which Montea expects to conclude before the building is delivered in the beginning of 2018, this distribution centre will generate an additional rent of € 740,440.
Montea and GBS (Groupement des Bières Spéciales) signed a lease agreement for a period of 9 year for the development of a second build-to-suit project. The building of approximately 24,400 m² is divided into 4 units, of which GBS will rent approx. 18,500 m² (3 units). GBS will use the building as a distribution centre for France (www.gbs-solutions-boissons.fr). The building will be operational in the first quarter of 2018. The development represents a total investment value of approx. € 14.1 million. Upon letting the fourth unit, which Montea expects to conclude before the building is delivered in the beginning of 2018, this distribution centre will generate an additional rent of approx. € 1 million per year.
In February 201433 Montea acquired a ca. 19,500 m² distribution centre on 25,800 m² of land, let to Delta Wines. The site is strategically located along the A12 motorway with connection The Hague–Utrecht–Arnhem–Rhur Valley.
To keep pace with its growth, Delta Wines has asked Montea to expand the aforementioned site by ca. 5,000 m². Delta Wines signed an additional lease for a fixed period of 12 years under the same terms and conditions. This extension will generate additional rent of ca. €225,000 per year.
This extension is scheduled for delivery in the first quarter of 2018.
31 For more information, see the press release of 18/07/2017 or www.montea.com.
32 For more information, see the press release of 1/08/2017 or www.montea.com.
33 For more information, see the press release of 7/02/2014 or www.montea.com.
Liege Airport has drawn up an ambitious masterplan for the development of the northern zone at the airport. In that respect, Montea has concluded a building lease contract with the landowner Sowaer, for the development of a plot of land of more than 51,000 m,² situated at the entrance of Flexport City, right next to the new logistics processing buildings. Montea will ultimately develop a total of ca. 20,000 m² of warehouse units and related offices on this site and in so doing provide concrete support for the further growth of the airport. The total investment for phases 1, 2 and 3 will amounts to € 15 million. The construction of the first and second phase, ca. 12,200 m², will start in the coming days, as a long-term lease has already been signed with Malysse-Sterima. Montea will actually construct a hypermodern distribution centre of 4,700 m² storage space with 500 m² of offices for Malysse-Sterima. Medical kits will be sterilized in the building and will be prepared for dispatching to European hospitals. This means a new strategic "medical care" specialist for the
airport.
The lease with Malysse-Sterima is for a fixed period of 20 years and will generate an initial yield of 6.35% as of the end of 2018. The company will invest ca. € 4 million itself in various facilities for the packaging of the goods.
The remaining 7,000 m² of phase 2 can be delivered within a year of the signing of the lease.
Montea has acquired a logistics distribution centre from Immocass BVBA in Saintes, located on the E429 motorway at the boundary between Flemish Brabant and Walloon Brabant. The distribution centre consists of 7,500 m² storage space and 1,000 m² offices and is rented to Noukies. Noukies signed a triple-net lease for a
fixed period of 9 years, which will generate rental income of €330,000 per year. The company is known for its soft cuddly toys and baby clothing (www.noukies.com). The transaction represented a total investment value of € 4.7 million (in line with the investment value determined by the property expert) and generated a net initial yield of ca. 7.15%.
Since 2009, Orka Aalst NV, a specialist in solar energy projects, has been operating a 678 KwP solar park on the roofs of the Tragel site in Aalst through a superficies agreement. However in 2011, Montea made the choice to invest itself in the development of solar energy projects. In that context it was decided to take over the shares of Orka Aalst NV, the company that owns the solar panels. This transaction represented a total investment value of € 1 million and generated a net initial yield of approximately 7.6%.
34 For more information, see the press release of 6/11/2017 or www.montea.com.
35 For more information, see the press release of 22/12/2017 or www.montea.com.
36 For more information, see the press release of 22/12/2017 or www.montea.com.
On 10/01/2017 Montea announced the sale of 3 assets from its current portfolio in France, for a total sale value of €60,394,000. The sale of the properties in St Cyr en Val and in Tilloy-lez-Cambrai went through on 29/12/2016. The sale of the property in Savigny-le-Temple was finalised only on 30/03/2017, after the completion of a number of refurbishment works for the current tenant.
On 14 September 2017, Montea launched a public offering for subscription to 1,658,647 new shares maximum under an increase of capital in cash within the framework of the authorized capital with irreducible allocation rights for a maximum amount of €68,004,527. The share capital (exclusive of the issue premium of €34,201,301.14) was increased by €33,803,225.86 and was thus brought to €236,623,450, represented by 11,610,531 shares. The new Montea shares are of the same nature as the existing shares and entitle the holder to a (pro rata temporis) dividend per share (if there is profit to be distributed) as of 1 October 2017.
Montea managed to extend the following loans with a maturity date in 2018 and 2019:
Furthermore, the following new lines of credit were granted:
In addition, Montea entered a cooperation arrangement with Bank Nagelmackers; a loan of € 20 million with an 8-year term.
In the course of the last quarter of 2017, Montea settled four IRS (Interest Rate Swap) contracts for a nominal amount of €60 million and then concluded new hedges (same amount) at current market conditions. This settlement will have a positive impact on the term of the hedges and the average financing cost for the coming years of €1.2 million per year.
The hedge ratio amounted to 87.4% on 31 December 2017.
37 For more information, see the press release of 30/03/2017 or www.montea.com.
38 For more information, see the press release of 27/09/2017 or www.montea.com.
On the basis of the EPRA earnings of € 2.58, the board of directors of the statutory management company of Montea will propose paying out a gross dividend of € 2.17 per share (€ 1.52 net per share), which entails a payout ratio39 of 84% with regard to the EPRA earnings. This means an increase of the gross dividend per share of 3% compared with 2016 (€ 2.11 gross per share), in spite of the increase in the weighted average number of shares of 7% as a result of the increase of capital in 2017.
| KEY RATIO'S | 31/12/2017 | 31/12/2016 | |
|---|---|---|---|
| Key ratio's (€) | |||
| EPRA result per share (1) | 2,58 | 2,47 | |
| Result on the portfolio per share (1) | 0,38 | 0,91 | |
| Variations in the fair value of financial instruments per share (1) | 0,56 | -0,06 | |
| Net result (IFRS) per share (1) | 3,52 | 3,31 | |
| EPRA result per share (2) | 2,31 | 2,41 | |
| Proposed distribution | |||
| Payment percentage (compared with EPRA result) (3) | 84% | 87% | |
| Gross dividend per share | 2,17 | 2,11 | |
| Net dividend per share | 1,52 | 1,48 | |
| Weighted average number of shares | 10.392.676 | 9.722.190 | |
| Number of shares outstanding at period end | 11.610.531 | 9.951.884 |
(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.
With the appointment of Jan van der Geest as Development Manager Montea wants to strengthen its presence in the Netherlands. Jan will be responsible for the future development of LogistiekPark A12 in Waddinxveen. Because of his long-standing affinity with the industrial market in the Netherlands, Jan van der Geest has the necessary experience to follow the new projects Montea in Netherlands. Jan van der Geest worked since 2006 for Heembouw, a developing construction company, where he worked as a commercial manager since 2011.
39 The payout ratio of 84% was calculated on the basis of the EPRA earnings and not on the basis of the earnings available for payout.
With a view to its property investments in the Netherlands, in September 2013 Montea filed an application for the tax status of a 'Fiscal Investment Institution' (hereinafter referred to as FII) pursuant to Article 28 of the Corporate Taxation Act of 1969. Montea has structured its property investments as public limited companies under Dutch law. These entities and Montea Nederland NV constitute a fiscal unit for the levying of corporate tax. An FII is subject to a 0% tax rate in the Netherlands. It is required to pay out its full fiscal result (consolidated in the case of a fiscal unit, with the exception of surplus values/capital gains) to its shareholders. In addition to this payout obligation, an FII is also subject to various other obligations such as requirements regarding its shareholders, in this case the Company, and its shareholding structure, as well as to restrictions concerning debt financing.
The Company's Dutch subsidiary, Montea Nederland NV, has had no final decision from the Dutch tax authorities approving the FII status. In 2016, referring to certain case law of the Dutch Supreme Court, the Dutch tax authorities developed a new approach in their policy concerning compliance with the shareholding test. More specifically, as shareholder of its FII subsidiary, Montea Nederland NV, the company would have to show that it can qualify as an FII itself. Only then can the Company be considered as a qualifying shareholder under the FII status in the view of the Dutch tax authorities. In this connection, the Company and the Dutch tax authorities engaged in consultations to determine how to proceed in concrete terms. The Company is of opinion that as a regulated real estate company it operates within a system that is comparable to that of the FII and therefore meets the requirements. The Company therefore believes it is likely it will be able to make reasonable arrangements with the Dutch tax authorities, so that FII status will be granted to Montea Nederland NV. Furthermore, the Dutch Ministry of Finance and the Dutch tax authorities already indicated in the past that they will proceed under the general principles of good governance so as to obtain a level playing field (same treatment applied to equivalent cases). The aim is to ensure that Montea is not treated by the Dutch tax authorities worse than other compliant comparable Belgian regulated real estate companies with existing arrangements concerning the FII status.
Furthermore, in its coalition agreement of October 2017, the Dutch government indicated that it wanted to abolish the real estate FII as of 2020 under the envisaged scrapping of the dividend tax. Montea and its tax advisors are looking into the possible impact of such an eventuality and are monitoring the situation closely.
The total property assets of Montea amount to € 719 million, consisting of the valuation of the property portfolio for buildings inclusive buildings held for sale (€ 658 million), the fair value of the current developments (€ 48 million) and the fair value of the solar panels (€ 13 million).
| Total 31/12/2017 |
Belgium | France | The Netherlands | Total 31/12/2016 |
|
|---|---|---|---|---|---|
| Real estate portfolio - Buildings (0) | |||||
| Number of sites | 54 | 28 | 14 | 12 | 47 |
| Warehouse space (sqm) | 886.727 | 534.983 | 120.034 | 231.710 | 715.310 |
| Office space (sqm) | 82.221 | 46.838 | 14.284 | 21.099 | 67.668 |
| Total space (sqm) | 968.948 | 581.821 | 134.318 | 252.809 | 782.978 |
| Development potential (sqm) | 168.652 | 98.746 | 53.000 | 16.906 | 230.344 |
| Fair value (K EUR) | 657.518 | 358.149 | 94.342 | 205.027 | 532.063 |
| Investment value (K EUR) | 687.567 | 367.103 | 101.085 | 219.379 | 558.167 |
| Annual contractual rents (K EUR) | 47.315 | 26.341 | 7.397 | 13.577 | 38.929 |
| Gross yield (%) | 7,20% | 7,35% | 7,84% | 6,62% | 7,32% |
| Gross yield on 100% occupancy (%) | 7,43% | 7,78% | 7,84% | 6,62% | 7,43% |
| Un-let property (m²) (1) | 35.257 | 35.257 | 0 | 0 | 15.274 |
| Rental value of un-let property (K EUR) (2) | 1.525 | 1.525 | 0 | 0 | 619 |
| Occupancy rate | 96,3% | 93,9% | 100,0% | 100,0% | 98,1% |
| Real estate portfolio - Solar panels (3) | |||||
| Fair value (K EUR) | 12.771 | 12.771 | 0 | 0 | 9.978 |
| Real estate portfolio - Developments (4) | |||||
| Fair value (K EUR) | 48.439 | 25.966 | 14.122 | 8.351 | 10.281 |
(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.
Belgium (+ € 90 million):
The Netherlands (+ € 35.5 million):
France (stable):
40 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.
The current developments, worth €48.4 million, consist of:
The fair value of the solar panels concerns eight solar panel projects: one in Brussels (Vorst), two in Wallonia (Heppignies and Milmort) and five in Flanders (Bornem, Aalst, Grimbergen, Puurs and Ghent). In the fourth quarter of 2017, Montea acquired the existing solar panel installation on the site in Aalst (BE), let to Barry Callebaut, by obtaining all (100%) of the shares of Orka Aalst NV.
| ABBREVIATED CONSOLIDATED PROFIT & LOSS ACCOUNT (K EUR) Analytical |
31/12/2017 12 months |
31/12/2016 RESTATED (0) 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 |
40.793 43.963 107,8% -1.246 42.717 -3.814 -72 38.830 95,2% -11.107 27.723 -938 |
40.518 41.258 101,8% -1.043 40.215 -3.769 -142 36.304 89,6% -11.780 24.524 -506 |
| EPRA Earnings | 26.785 | 24.018 |
| per share (1) | 2,58 | 2,47 |
| Result on disposals of investment properties | 769 | 8.131 |
| Result on disposals of other non-financial assets | 0 | 0 |
| Changes in fair value of investment properties | 3.204 | 670 |
| Other portfolio result | 0 | 0 |
| PORTFOLIO RESULT | 3.972 | 8.801 |
| Changes in fair value of financial assets and liabilities | 5.791 | -616 |
| RESULT IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 5.791 | -616 |
| NET RESULT | 36.548 | 32.204 |
| per share | 3,52 | 3,31 |
The operating margin was strongly impacted in 2017 by the one-off compensation received from SAS and that received for the delivery of the building rented to DHL Aviation. Without these one-off compensation, the operating margin amounts to 92%.
The financial result exclusive of changes in the fair value of the financial instruments amounts to € 11.1 million and is down by 6% from the same period in the previous year. The average debt burden increased by €41.8 million or 13%. The average financial cost remained stable at 3.0%42\* for the financial year. In 2018, the average financing cost is expected to drop thanks to the settlement of four Interest Rate Swaps for a total nominal amount of €60 million at the end of 2017, with a new hedging concluded thereupon for a nominal amount at market conditions.
41* The operating margin is obtained by dividing the operating result before the result on the property portfolio by the net rental income. 42* This financial cost is an average over the entire year, inclusive of the leasing payables 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 2017, without taking account of the valuation of hedge instruments.
The drop of the negative financial result (exclusive of changes in the real value of the financial instruments) of €0.7 million is chiefly due to the settlement of an Interest Rate Swap (IRS) in 2016 for a total cost of €2.1 million partially offset by:
Given the explanation on the accounting processing of the settlement of swaps and in order to obtain a better connection with the EPRA guidance, it was decided to process the unwinding of the swaps via the P&L heading as of 2017: changes in the real value of financial assets and liabilities. If we had applied this processing method on the unwinding of the swap in 2016, it would have had no impact on the net result and the capital equity of 2016, only on the EPRA result that would have been €2.1 million or €0.21 per share higher.
On 31/12/2017, Montea had a total bank debt (bilateral lines of credit) of € 264.9 million with 7 financial institutions. On that date, 87% of the total financial debt (including debt loans and leasing debt) was hedged by IRS contracts.
The result on the property portfolio amounts to €4.0 million on 31/12/2017. This positive result is due to the sale of one of the French sites situated in Savigny with a positive impact of €0.7 million, 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 change in the fair value portfolio exclusive of capex of €3.2 million as a result of the drop in the return of investment in the Netherlands and France for projects with a long-term lease. The fair value of the Belgian property portfolio exclusive of capex remains stable with regard to the fair value in the previous year due to the large investment volume in Belgium (owing to the change in the valuation rules as of 2017, transaction costs are assumed by the result on the property portfolio).
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 positive changes in the fair value of financial instruments arises out of the positive impact of the fair value of the existing interest hedging as a result of the expectations of rising long-term interest rates in the course of 2017.
43 * 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.
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 € 36.5 million in 2017 compared with € 32.2 million in 2016. The net earnings (IFRS) per share amount to € 3.52 per share compared with € 3.31 per share in 2016. 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 31/12/2017 amounts to € 26.8 million, an increase of 12% compared with the same period the previous year.
On the basis of the distributable result, Montea will propose a gross dividend of € 2.17 per share to the general meeting of shareholders. This means an increase of the gross dividend per share of 3% compared with 2016, in spite of the dilution owing to the optional dividend and the increase of capital (by contribution in kind) carried out in 2017.
| CONSOLIDATED BALANCE SHEET (EUR) |
31/12/2017 Conso |
31/12/2016 Conso |
|
|---|---|---|---|
| I. | NON-CURRENT ASSETS | 719.615.007 | 545.461.627 |
| II. | CURRENT ASSETS | 28.811.399 | 49.297.472 |
| TOTAL ASSETS | 748.426.406 | 594.759.099 | |
| SHAREHOLDERS' EQUITY | 333.029.072 | 251.964.960 | |
| I. | Shareholders' equity attributable to shareholders of the parent company | 332.910.588 | 251.846.477 |
| II. | Minority interests | 118.483 | 118.483 |
| LIABILITIES | 415.397.334 | 342.794.139 | |
| I. | Non-current liabilities | 386.250.635 | 310.381.242 |
| II. | Current liabilities | 29.146.699 | 32.412.897 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 748.426.406 | 594.759.099 |
This total debt consists of:
On 31/12/2017, the EPRA NAV44* amounted to € 29.67 per share compared with € 27.80 per share on 31/12/2016. On 31 December 2017, the EPRA NNNAV per share amounted to € 29.14 per share compared with € 25.97 per share on 31/12/2016.
The debt ratio45 of Montea amounted to €51.9% compared with 51.6% at the end of 2016.
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.
44 *EPRA NAV: EPRA NAV: The EPRA NAV is the NAV that was adjusted so as to comprise also property and other investments and their fair value, which excludes certain items which are not expected to assume a fixed form in a business model with property investments in the long term. Cf. www.epra.com. EPRA NAV per share: The EPRA NAV per share concerns the EPRA NAV on the basis of the number of shares entitled to dividends on the balance sheet date. Cf. www.epra.com.
45 Calculated according to the Royal Decree of 13 July 2014 concerning regulated real estate companies.
The consolidated debt ratio amounted to 51.9% on 31/12/2016 (compared with 51.6% in 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.
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.
New properties were acquired in 2017, including the site in Willebroek, let to Metro group, in Q1/2017, the delivery of the site in Brucargo, let to SACO in Q2/2017, the acquisition of the site in Brucargo, let to DHL Aviation in Q2/2017, the delivery of the Crossdock Center project, Mainfreight in Genk, in Q3/2017, the purchase of the site in Willebroek, let to Decathlon, the acquisition of the land on the Tyraslaan in Vilvoorde, the acquisition of the site in Saintes, let to Noukies, in Q4/2017 and the acquisition of the shares of Orka Aalst NV in Q4/2017. These were financed by the increase of capital in September 2017, and by bank loans, whereby the debt ratio (51.9%) remained stable by comparison with the previous year (51.6%).
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. € 280 million46without exceeding the maximum debt ratio of 65%.
| in euro | 31/12/2017 | Investment potential | Balance sheet after investment potential |
|---|---|---|---|
| Investment properties | 718.728.241 | 280.000.000 | 998.728.241 |
| Other assets | 29.698.165 | - | 29.698.165 |
| TOTAL ASSETS | 748.426.406 | 280.000.000 | 1.028.426.406 |
| - | - | - | |
| Own capital | 333.029.072 | - | 333.029.072 |
| - | - | - | |
| Liabilities | 415.397.334 | 280.000.000 | 695.397.334 |
| Non-current liabilities | 386.250.635 | 280.000.000 | 666.250.635 |
| Provisions | - | - | - |
| Other non-current financial liabilities | 11.707.142 | - | 11.707.142 |
| Deferred taxes - liabilities | - | - | - |
| Other non-current liabilities | 374.543.493 | 280.000.000 | 654.543.493 |
| Current liabilities | 29.146.699 | - | 29.146.699 |
| Provisions | - | - | - |
| Other current financial liabilities | - | - | - |
| Accruals | 15.542.082 | - | 15.542.082 |
| Other current liabilities | 13.604.618 | - | 13.604.618 |
| TOTAL LIABILITIES | 748.426.406 | 280.000.000 | 1.028.426.406 |
| Debt ratio | 51,9% | 65,0% |
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. € 150 million.
| Balance sheet after | |||
|---|---|---|---|
| in euro | 31/12/2017 | Investment potential | investment potential |
| Investment properties | 718.728.241 | 150.000.000 | 868.728.241 |
| Other assets | 29.698.165 | - | 29.698.165 |
| TOTAL ASSETS | 748.426.406 | 150.000.000 | 898.426.406 |
| - | - | - | |
| Own capital | 333.029.072 | - | 333.029.072 |
| - | - | - | |
| Liabilities | 415.397.334 | 150.000.000 | 565.397.334 |
| Non-current liabilities | 386.250.635 | 150.000.000 | 536.250.635 |
| Provisions | - | - | - |
| Other non-current financial liabilities | 11.707.142 | - | 11.707.142 |
| Deferred taxes - liabilities | - | - | - |
| Other non-current liabilities | 374.543.493 | 150.000.000 | 524.543.493 |
| Current liabilities | 29.146.699 | - | 29.146.699 |
| Provisions | - | - | - |
| Other current financial liabilities | - | - | - |
| Accruals | 15.542.082 | - | 15.542.082 |
| Other current liabilities | 13.604.618 | - | 13.604.618 |
| TOTAL LIABILITIES | 748.426.406 | 150.000.000 | 898.426.406 |
| Debt ratio | 51,9% | 60% |
46 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.
The changes 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 € 151 million. This corresponds to a drop of 21% in the existing portfolio.
| Balance sheet after | |||
|---|---|---|---|
| in euro | 31/12/2017 | Investment potential | investment potential |
| Investment properties | 718.728.241 | - 151.000.000 |
567.728.241 |
| Other assets | 29.698.165 | - | 29.698.165 |
| TOTAL ASSETS | 748.426.406 | - 151.000.000 |
597.426.406 |
| - | - | - | |
| Own capital | 333.029.072 | - 151.000.000 |
182.029.072 |
| - | - | - | |
| Liabilities | 415.397.334 | - | 415.397.334 |
| Non-current liabilities | 386.250.635 | - | 386.250.635 |
| Provisions | - | - | - |
| Other non-current financial liabilities | 11.707.142 | - | 11.707.142 |
| Deferred taxes - liabilities | - | - | - |
| Other non-current liabilities | 374.543.493 | - | 374.543.493 |
| Current liabilities | 29.146.699 | - | 29.146.699 |
| Provisions | - | - | - |
| Other current financial liabilities | - | - | - |
| Accruals | 15.542.082 | - | 15.542.082 |
| Other current liabilities | 13.604.618 | - | 13.604.618 |
| TOTAL LIABILITIES | 748.426.406 | - 151.000.000 |
597.426.406 |
| Debt ratio | 51,9% | 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 51.9% 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.
| STOCK MARKET PERFORMANCE | 31/12/2017 | 31/12/2016 |
|---|---|---|
| Share price (€) | ||
| At closing | 42,95 | 46,37 |
| Highest | 50,22 | 48,42 |
| Lowest | 41,06 | 35,10 |
| Average | 45,82 | 42,36 |
| Net asset value per share (€) | ||
| IFRS NAV | 28,67 | 25,31 |
| EPRA NNNAV | 29,14 | 25,97 |
| EPRA NAV | 29,67 | 27,80 |
| Premium (%) | 49,8% | 83,2% |
| Dividend return (%) | 5,1% | 4,6% |
| Dividend (€) | ||
| Gross | 2,17 | 2,11 |
| Net | 1,52 | 1,48 |
| Pay out ratio | 87% | |
| Volume (number of securities) | ||
| Average daily volume | 5.941 | 7.717 |
| Volume of the period | 1.514.920 | 1.983.235 |
| Number of shares | 11.610.531 | 9.951.884 |
| Market capitalisation (K €) | ||
| Market capitalisation at closing | 498.672 | 461.469 |
| Ratios (%) | ||
| Velocity | 13,0% | 19,9% |
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 31/12/2017 (€ 42.95) the Montea shares were listed 44,7% above the value of the EPRA NAV47.
Montea's board of directors will propose to the General Meeting of Shareholders that a gross dividend be paid of € 2.17 gross per share (€ 1.52 net per share).
47 *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.
Montea has registered strong growth in its portfolio in France since being listed on the stock exchange. In signing the partnership agreement with J|MO, Montea aims to strengthen its presence in France. The partnership seeks to accelerate Montea's development in that country. Building on an affinity of long standing with the logistics real estate market, J|MO, represented by Julien Mongoin, has the necessary experience to embark on new developments for Montea in France. A graduate of the École Nationale des Travaux Publics
(ENTPE), Julien Mongoin worked as Development Director from 2007 to 2010 at Nexity Geprim, a French property development company. Since the end of 2010, he was the Development and Acquisitions' Director of Barjane, a business real estate planning and development company.
There were no transactions between affiliated parties in 2017.
Definition: The EPRA earnings concern the net earnings (after processing of the operating result before the result on the portfolio, minus the financial results and corporate tax, exclusive of deferred taxes), minus the changes in the fair value of property investments and real estate intended for sale, minus the result from the sale of investment properties, plus changes in the fair value of the financial assets and liabilities. The EPRA earnings per share are the EPRA earnings divided by the weighted average number of shares for the financial year.
Purpose: The EPRA earnings measure the operational profitability of the company after the financial result and after taxes on the operational result. The EPRA earnings measure the net result from the core activities per share.
Calculation: The detailed calculation of this APM is given below:
| (in EUR X 1 000) | 31/12/2017 | 31/12/2016 | |
|---|---|---|---|
| RESTATED (0) | |||
| Net result (IFRS) | 36.548 | 32.204 | |
| Changes for calculation of the EPRA earnings | |||
| To exclude: | |||
| (i) | Variations in fair value of the investment properties and properties for sale | -3.204 | -670 |
| (ii) | Result on sale of investment properties | -769 | -8.131 |
| (vi) | Variations in fair value of the financial assets and liabilities | -5.791 | 616 |
| - | - | ||
| EPRA earnings | 26.785 | 24.018 | |
| Weighted average number of shares | 10.392.676 | 9.722.190 | |
| EPRA earnings per share (€/share) | 2,58 | 2,47 |
The grey cells were adapted following the change in the valuation rule introduced in Q2 2017. The shareholders' equity is not affected. Furthermore, this adjustment has no impact on the EPRA learnings and on the distributable profit.
Definition: The EPRA NAV is the NAV applied so that it comprises real estate and other investment at their fair value and excludes certain items which are not expected to acquire fixed form in a business model with property investments in the long term. The EPRA NAV per share concerns the EPRA NAV on the basis of the number of shares in circulation on the balance sheet date. Cf. also www.epra.com.
Purpose: The EPRA NAV measures the intrinsic value without taking account of the fair value of the hedging instruments, the impact of which is booked in the financial costs in future financial years, if the IRS is not cancelled before the maturity date. The EPRA NAV per share measures the intrinsic value per share without taking into account the fair value of the hedging instruments, the impact of which is booked in the financial costs in future financial years, if the IRS is not cancelled before the maturity date.
Calculation: The detailed calculation of this APM is given below:
| 31/12/2017 | 31/12/2016 |
|---|---|
| 332.911 | 251.846 |
| 28,67 | 25,31 |
| 332.911 | 251.846 |
| 11.611 | 24.804 |
| 344.521 | 276.650 |
| 11.610.531 | 9.951.884 |
| 29,67 | 27,80 |
Definition: The EPRA NNNAV is the EPRA NAV that was applied so that it includes the fair value of financial instruments, debts and deferred taxes. The EPRA NNNAV per share concerns EPRA NNNAV on the basis of the number of shares in circulation on the balance sheet date. Cf. also www.epra.com.
Purpose: The EPRA NNNAV measures the intrinsic value taking into account the fair value of the hedging instruments. The EPRA NNNAV per share measures the intrinsic value taking into account the fair value of the hedging instruments.
| (in EUR X 1 000) | 31/12/2017 | 31/12/2016 | ||
|---|---|---|---|---|
| EPRA NAV | 344.521 | 276.650 | ||
| Number of shares in curculation at the end of the period | 11.610.531 | 9.951.884 | ||
| EPRA NAV (€/share) | 29,67 | 27,80 | ||
| To add: | ||||
| (i) | I. | Fair value of financial instruments | -11.611 | -24.804 |
| (ii) | II. | Revaluation of the fair value of financing at fixed interest rate | 5.397 | 6.573 |
| EPRA NNNAV | 338.308 | 258.419 | ||
| Nmber of shares in circultation at the end of the period | 11.610.531 | 9.951.884 | ||
| EPRA NNNAV (€/share) | 29,14 | 25,97 |
Definition: The EPRA vacancy corresponds to the complement of "Occupancy rate" with the difference that the occupancy rate used by Montea is calculated on the basis of square metres whereas the EPRA vacancy is calculated on the basis of the estimated rental value.
Purpose: The EPRA vacancy measures the vacancy percentage as a function of the estimated value without taking account of non-rentable m², intended for redevelopment, and of the land bank.
Calculation: The detailed calculation of this APM is given below:
| 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 rate | Estimated rental value (ERV) for vacancy |
Estimated rental value portfolio (ERV) |
ERPA Vacancy rate | |
| (in %) | (in %) | |||||
| 31/12/2017 | 31/12/2017 | 31/12/2017 | 31/12/2016 | 31/12/2016 | 31/12/2016 | |
| Belgium | 1.525 | 26.760 | 5,7% | 429 | 19.914 | 2,2% |
| France | - | 7.012 | 0,0% | - | 7.175 | 0,0% |
| The Netherlands | - | 13.974 | 0,0% | - | 11.659 | 0,0% |
| Total | 1.525 | 47.745 | 3,2% | 429 | 38.748 | 1,1% |
Definition: This concerns the positive and/or negative changes in the fair value of the property portfolio plus any capital gains or losses from the construction of properties.
Purpose: This APM indicates the positive and/or negative changes in the fair value of the property portfolio plus any capital gains or losses from the construction of properties.
48 Exclusive of the EPRA measures, some of which are considered as an APM, and are calculated under Chapter 1.8 EPRA Performance measures.
Calculation: The detailed calculation of this APM is given below:
| RESULT ON PORTFOLIO | 31/12/2017 | 31/12/2016 |
|---|---|---|
| (in EUR X 1 000) | RESTATED (0) | |
| Result on sale of property investments | 769 | 8.131 |
| Variations in the fair value of property investments | 3.204 | 670 |
(0) The gray cells were adjusted due to the change in the valuation rule implemented in Q2 2017. Equity is not affected. Furthermore, this adjustment also has no impact on the EPRA earnings and the distributable profit. RESULT ON PORTFOLIO 3.972 8.801
Definition: This is the financial result pursuant to the Royal Decree of 13 July 2014 on regulated real estate companies, exclusive of the change in the real value of the financial instruments.
Purpose: This APM indicates the actual financing cost of the company.
Calculation: The detailed calculation of this APM is given below:
| FINANCIAL RESULT excl. variations in fair value of financial instruments | 31/12/2017 | 31/12/2016 |
|---|---|---|
| (in EUR X 1 000) | ||
| Financial result To exclude: |
-5.316 | -12.396 |
| Variations in fair value of financial assets & liabilities | -5.791 | 616 |
| FINANCIAL RESULT excl. variation in fair value of financial instruments | -11.107 | -11.780 |
Definition: This is the operating result before the result of the real estate portfolio, divided by the net rental income.
Purpose: This APM measures the operational profitability of the company as a percentage of the rental income.
Calculation: The detailed calculation of this APM is given below:
| OPERATING MARGIN | 31/12/2017 | 31/12/2016 | |
|---|---|---|---|
| (in EUR X 1 000) | |||
| Net rental result | 40.793 | 40.518 | |
| Operating result (before the result on the portfolio) | 38.830 | 36.304 | |
| OPERATING MARGIN | 95,2% | 89,6% |
Definition: Average financial cost over the entire year calculated on the basis of the total financial result with regard to the average of the initial and end outstanding balance of the financial debt burden for 2016 without taking into account the valuation of the hedging instruments.
Purpose: The company finances itself partially through debt financing. This APM measures the cost of this source of financing and the possible impact on the results.
Calculation: The detailed calculation of this APM is given below:
| AVERAGE COST OF DEBT (in EUR X 1 000) |
31/12/2017 | 31/12/2016 |
|---|---|---|
| Financial result | -5.316 | -12.396 |
| To exclude: | ||
| Variations in fair value of financial assets and liabilities | -5.791 | 616 |
| TOTAL FINANCIAL CHARGES (A) | -11.107 | -11.780 |
| AVERAGE FINANCIAL DEBTS (B) | 366.615 | 324.766 |
| AVERAGE COST OF DEBT (A/B) (*) | 3,0% | 3,0% |
Given the explanation on the accounting processing of the settlement of swaps and in order to obtain a better connection with the EPRA guidance, it was decided to process the unwinding of the swaps via the P&L heading as of 2017: changes in the real value of financial assets and liabilities. If we had applied this processing method on the unwinding of the swap in 2016, it would have had no impact on the net result and the capital equity of 2016, only on the EPRA result that would have been €2.1 million or €0.21 per share higher.
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
The expansion of the office in the Netherlands and France, and the long-term partnerships that Montea has concluded with developers and land owners will enable Montea to continue its robust growth of recent years. In this respect, Montea is less dependent on products that are offered in the property market and can develop products that meet its quality standards from its own positions. We have consequently seen the portfolio grow above the €800 million mark in the course of the year.
Occupancy rate and term of the leases
On 31/12/2017 the occupancy rate amounted to 96.3% chiefly as a result of the partial vacancy at the sites in Milmort, Willebroek and Genk. Montea's goal is to keep the occupancy rate above 95%. The average term of leases until the first termination option is 7.5 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 € 150 million. Montea is striving for a diversified financing policy, where the aim is to bring the term of our loans (currently 5.5 years) in line with the term of our leases (currently 7.5 years on average).Montea analysed its debt position again in December 2017, and, prior to the expiry dates of a number of lines of credit, refinanced debts at lower market conditions.
Operating margin
The operating margin amounted to 95.2% on 31/12/2017 but was impacted by certain one-off compensation. On the basis of already announced growth, Montea expects to be able to maintain the operating margin over 92%.
EPRA earnings
On the basis of the EPRA earnings of € 26.8 million in 2017, 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 2018. On the basis of these prospects, a dividend increase of 3% is again expected in 2018 compared with 2017, which should lead to a gross dividend of €2.24 per share for 2018.
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 strives not only to comply with the legal requirements, but wishes to go further than the applicable legislation by means of initiatives and actions. 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 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, Aalst (Movianto & Barry Callebaut), 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. 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.
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:
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 | 31/12/2017 | 31/12/2016 |
|---|---|---|
| PROFIT & LOSS ACCOUNT (EUR x 1.000) | RESTATED (0) | |
| 12 months | 12 months | |
| I. Rental income |
43.234 | 41.833 |
| II. Write-back of lease payments sold and discounted |
0 | 0 |
| III. Rental-related expenses |
-2.440 | -1.315 |
| NET RENTAL RESULT | 40.793 | 40.518 |
| IV. Recovery of property charges |
0 | 0 |
| V. Recovery of charges and taxes normally payable by tenants on let properties |
5.168 | 4.942 |
| 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 |
-5.895 | -5.863 |
| VIII. Other rental-related income and expenses |
3.897 | 1.660 |
| PROPERTY RESULT | 43.963 | 41.258 |
| IX. Technical costs |
-34 | -122 |
| X. Commercial costs |
-122 | -257 |
| XI. Charges and taxes of un-let properties |
0 | -31 |
| XII. Property management costs |
-1.047 | -590 |
| XIII. Other property charges |
-44 | -43 |
| PROPERTY CHARGES | -1.246 | -1.043 |
| PROPERTY OPERATING RESULT | 42.717 | 40.215 |
| XIV. General corporate expenses |
-3.814 | -3.769 |
| XV. Other operating income and expenses |
-72 | -142 |
| OPERATING RESULT BEFORE PORTFOLIO RESULT | 38.830 | 36.304 |
| XVI. Result on disposal of investment properties |
769 | 8.131 |
| XVII. Result on disposal of other non-financial assets |
0 | 0 |
| XVIII. Changes in fair value of investment properties |
3.204 | 670 |
| XIX. Other portfolio result |
0 | 0 |
| OPERATING RESULT | 42.803 | 45.105 |
| XX. Financial income |
240 | 656 |
| XXI. Net interest charges |
-11.245 | -12.308 |
| XXII. Other financial charges |
-102 | -128 |
| XXIII. Change in fair value of financial assets & liabilities |
5.791 | -616 |
| FINANCIAL RESULT | -5.316 | -12.396 |
| XXIV. Share in the result of associates and joint ventures | 0 | 0 |
| PRE-TAX RESULT | 37.486 | 32.709 |
| XXV. Corporation tax XXVI. Exit tax |
-938 0 |
-506 0 |
| TAXES | -938 | -506 |
| NET RESULT | 36.548 | 32.204 |
| Attributable to: | ||
| Shareholders of the parent company | 36.548 | 32.204 |
| Minority interests | 0 | 0 |
| Number of shares in circulation at the end of the period | 11.610.531 | 9.951.884 |
| Weighted average of number of shares of the period | 10.392.676 | 9.722.190 |
| NET RESULT per share (EUR) | 3,52 | 3,31 |
(0) The gray cells were adapted following the change in the valuation rule introduced in Q2 2017. The shareholders' equity is not affected. Furthermore, this adjustment has no impact on the EPRA earnings and the distributable profit.
| CONSOLIDATED | 31/12/2017 | 31/12/2016 | |
|---|---|---|---|
| BALANCE SHEET (EUR x 1.000) | RESTATED (0) | ||
| I. | NON-CURRENT ASSETS | 719.615 | 545.462 |
| A. Goodwill | 0 | 0 | |
| B. Intangible assets | 168 | 189 | |
| C. Investment properties | 706.431 | 535.136 | |
| D. Other tangible assets | 12.877 | 10.098 | |
| G. Trade receivables and other non-current assets | 42 | 39 | |
| II. | CURRENT ASSETS | 28.811 | 49.297 |
| A. Assets held for sale | 0 | 7.721 | |
| D. Trade receivables | 14.364 | 10.499 | |
| E. Tax receivables and other current assets | 8.748 | 6.607 | |
| F. Cash and cash equivalents | 3.436 | 3.350 | |
| G. Deferred charges and accrued income | 2.263 | 21.121 | |
| TOTAL ASSETS | 748.426 | 594.759 | |
| TOTAL SHAREHOLDERS' EQUITY | 333.029 | 251.965 | |
| I. | Shareholders' equity attributable to shareholders of the parent company | 332.911 | 251.846 |
| A. Share capital | 232.938 | 200.282 | |
| B. Share premiums | 66.641 | 32.439 | |
| C. Reserves | -3.216 | -13.079 | |
| D. Net result of the financial year | 36.548 | 32.204 | |
| II. | Minority interests | 118 | 118 |
| LIABILITIES | 415.397 | 342.794 | |
| I. | Non-current liabilities | 386.251 | 310.381 |
| B. Non-current financial debts | 374.543 | 285.577 | |
| a. Credit institutions | 264.072 | 175.132 | |
| b. Financial leasings | 1.136 | 184 | |
| c. Other | 109.335 | 110.261 | |
| C. Other non-current financial liabilities | 11.707 | 24.804 | |
| E. Other non-current liabilities | 0 | 0 | |
| II. | Current liabilities | 29.147 | 32.413 |
| B. Current financial debts | 2.273 | 10.590 | |
| a. Credit institutions | 2.000 | 10.000 | |
| b. Financial leasings | 273 | 590 | |
| c. Other | 0 | 0 | |
| C. Other current financial liabilities | 0 | 0 | |
| D. Trade debts and other current debts | 10.894 | 10.848 | |
| a. Exit taks | 4.346 | 2.014 | |
| b. Other | 6.547 | 8.833 | |
| E. Other current liabilities | 437 | 150 | |
| F. Accrued charges and deferred income | 15.542 | 10.826 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 748.426 | 594.759 |
(0) The gray cells were adapted following the change in the valuation rule introduced in Q2 2017. The shareholders' equity is not affected. Furthermore, this adjustment has no impact on the EPRA earnings and the distributable profit.
| STATEMENT OF 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 31/12/2016 | 200.282 | 32.438 | -13.079 | 32.204 | 0 | 118 | 251.964 |
| Elements directly recognized as equity | 32.656 | 34.201 | -1.342 | 0 | 0 | 0 | 65.515 |
| Capital increase | 32.656 | 34.201 | 0 | 0 | 0 | 0 | 66.857 |
| Impact on fair value of estimated transfer rights and costs resulting from hypothetical disposal of investment properties |
0 | 0 | -1.840 | 0 | 0 | 0 | -1.840 |
| Positive change in value of solar panels (IAS 16) | 0 | 0 | 484 | 0 | 0 | 0 | 484 |
| Own shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Own shares held for employee option plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Corrections | 0 | 0 | 14 | 0 | 0 | 0 | 14 |
| Subtotal | 232.938 | 66.641 | -14.421 | 32.204 | 0 | 118 | 317.479 |
| Dividends | 0 | 0 | -20.999 | 0 | 0 | 0 | -20.999 |
| Result carried forward | 0 | 0 | 32.204 | -32.204 | 0 | 0 | 0 |
| Result for the financial year | 0 | 0 | 0 | 36.548 | 0 | 0 | 36.548 |
| ON 31/12/2017 | 232.938 | 66.641 | -3.217 | 36.548 | 0 | 118 | 333.028 |
| ABBREVIATED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR x 1.000) |
31/12/2017 | 31/12/2016 RESTATED (0) |
|---|---|---|
| 12 months | 12 months | |
| Net result | 36.548 | 32.204 |
| Other items of the comprehensive income | 484 | -720 |
| Items taken in the result | 0 | 0 |
| Impact on fair value of estimated transfer rights and costs resulting from | 0 | 0 |
| hypothetical disposal of investments properties Changes in the effective part of the fair value of authorized cash flow hedges |
0 | 0 |
| Items not taken in the result | 484 | -720 |
| Impact of changes in fair value of solar panels | 484 | -720 |
| Comprehensive income | 37.032 | 31.483 |
| Attributable to: | ||
| Shareholders of the parent company | 37.032 | 31.483 |
| Minority interests | 0 | 0 |
(0) The gray cells were adapted following the change in the valuation rule introduced in Q2 2017. The shareholders' equity is not affected. Furthermore, this adjustment has no impact on the EPRA earnings and the distributable profit.
| CONSOLIDATED | ||
|---|---|---|
| CASH FLOW STATEMENT (EUR x 1.000) | 31/12/2017 | 31/12/2016 RESTATED (0) |
| 12 months | 12 months | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR (A) | 3.350 | 4.930 |
| Net result | 36.548 | 32.204 |
| Financial cash elements (not dedectable of the net profit) to become the operating result | 11.107 | 11.780 |
| Received interests | -240 | -656 |
| Payed interests on finances | 11.347 | 12.436 |
| Received dividends | 0 | 0 |
| Taxes (dedected from the net result) to become the operating result | 938 | 506 |
| Non-cash elements to be added to / deducted from the result | -10.415 | -8.480 |
| Depreciations and write-downs | 286 | 211 |
| Depreciations/write-downs (or write-back) on intangible and tangible assets (+/-) | 205 | 200 |
| Write-downs on current assets (+) | 90 | 11 |
| Write-back of write-downs on current assets (-) | -9 | 0 |
| Other non-cash elements | -10.701 | -8.691 |
| Changes in fair value of investment properties (+/-) | -3.204 | -670 |
| IAS 39 impact (+/-) | -5.791 | 616 |
| Other elements | 0 | 0 |
| Realized gain on disposal of investment properties | -769 | -8.131 |
| Provisions | 0 | 0 |
| Taxes | -938 | -506 |
| NET CASH FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL REQUIREMENTS (B) |
38.178 | 36.009 |
| Change in working capital requirements (C) | 25.620 | -11.920 |
| Movements in asset items | 20.570 | -11.159 |
| Trade receivables | -3 | -1 |
| Other long-term non-current assets | -3.865 | -2.808 |
| Other current assets | 5.580 | -2.538 |
| Deferred charges and accrued income | 18.858 | -5.812 |
| Movements in liability items | 5.050 | -762 |
| Trade debts | -543 | 2.865 |
| Taxes, social charges and salary debts | 589 | 68 |
| Other current liabilities | 287 | -3.843 |
| Accrued charges and deferred income | 4.717 | 149 |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A)+(B)+(C) = (A1) | 67.148 | 29.018 |
| Investment activities | -166.546 | -24.718 |
| Acquisition of intangible assets | -79 | -66 |
| Investment properties and development projects | -164.934 | -80.929 |
| Other tangible assets Solar panels |
-51 | -55 |
| Disposal of investment properties | -2.250 769 |
246 56.086 |
| Disposal of superficy | 0 | 0 |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES (B1) | -166.546 | -24.718 |
| FREE CASH FLOW (A1+B1) | -99.398 | 4.301 |
| Change in financial liabilities and financial debts | 67.599 | 2.721 |
| Increase (+)/Decrease (-) in financial debts | 80.650 | 1.511 |
| Increase (+)/Decrease (-) in other financial liabilities | -13.097 | 1.211 |
| Increase (+)/Decrease (-) in trade debts and other non-current liabilities | -46 | 0 |
| Change in other liabilities | 0 | 0 |
| Increase (+)/Decrease (-) in other liabilities | 0 | 0 |
| Increase (+)/Decrease (-) in other debts | 0 | 0 |
| Change in shareholders' equity | 46.342 | 8.108 |
| Increase (+)/Decrease (-) in share capital | 32.656 | 14.994 |
| Increase (+)/Decrease (-) in share premium | 34.201 | 11.546 |
| Increase (+)/Decrease (-) in consolidation differences | 0 | 0 |
| Increase (+)/Decrease (-) in minority interests Dividends paid |
0 | 19 |
| Increase (+)/Decrease (-) in reserves | -20.999 484 |
-18.700 249 |
| Increase (+)/Decrease (-) in changes in fair value of financial assets/liabilities | 0 | 0 |
| Disposal of treasury shares | 0 | 0 |
| Dividend paid (+ profit-sharing scheme) | 0 | 0 |
| Interim dividends paid (-) | 0 | 0 |
| Financial cash elements | -11.107 | -11.780 |
| NET FINANCIAL CASH FLOW (C1) | 102.834 | -951 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (A1+B1+C1) | 3.436 | 3.350 |
(0) The gray cells were adapted following the change in the valuation rule introduced in Q2 2017. The shareholders' equity is not affected. Furthermore, this adjustment has no impact on the EPRA earnings and the distributable profit.
49 The full report from the property assessor dated 31/12/2017 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.
| 31/12/2017 | |||||||
|---|---|---|---|---|---|---|---|
| INVESTMENT FROVERTIES |
Initial Yield | passing next | Potential cent | ERV | Investment value | Fair value | Netwalue ('kesten koper') |
| Belgium | 7,16% | 26.341.488 € | 28.287.707 € | 26.025.208 € | 357.885.500 € | 258.913.900 € | 335.362.900 € |
| The Netherlands | 6,19% | 13.577.017 C | 13.971.576 C | 11.971.576 C | 219.379.400 € | 205.027.400 € | 205.027.400 € |
| France | 7,32% | 7.396.797 € | 7.396.797 € | 7.012.053 € | 101.084.400 € | 54.341.100 C | 94.341.100 € |
| TO TAIL | 6,87% | 47.315.302 € | 49.058.000 € | 47.810.837 С | 098.350.300 C | 058.282.400 € | 634,731,400 € |
| UNDER DEVELOPMENT |
Initial Viold | passing rent | Potential rent | ERV | Investmentvalue | Fairwalue | Netwalue ('fosten koper'). |
| Belgium | 20.615.471 C | 25.900.300 0 | 23.941.400 € | ||||
| The Netherlands | 8435.500 C | 8.352.000 C | 8.352.000 € | ||||
| France | 14.376.000 C | 14.121.000 € | 14.121.800 € | ||||
| TO TAIL | 49.426.971 C | 48,440,100 € | 46.415.200 € |
ANNUAL FINANCIAL PRESS RELEASE OF THE STATUTORY MANAGER FOR THE PERIOD FROM 01/01/2017 TO 31/12/2017 INCLUDED REGULATED INFORMATION - EMBARGO UNTIL 22/02/2018 – 5.45 PM
| 31/12/2017 | |||||||
|---|---|---|---|---|---|---|---|
| Ш TOTAL PORTFOLIO |
Initial Yield | passing rant | Potential rent | DW | Investment value | Fair value | Net value [ kotten koper') |
| Belgian | 294,521,971 6 | 354,880,299 € | 355,304,500 € | ||||
| The Netherlands | 227,834,900 € | 213, 373, 400 41 | 213, 379, 400 € | ||||
| France | 105,460,400 € | 108,653,956,43 | 109-952-900 6 | ||||
| TOTAL | 337.777.271 C | 706.732.500 € | 681.146.600 € |
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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