Quarterly Report • Jul 27, 2021
Quarterly Report
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Half-yearly financial report 2021
Antwerp Graanmarkt 13
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| 1. | Interim half-yearly report for the first half of 2021 | 3 |
|---|---|---|
| 1.1. COVID-19 update |
3 | |
| 1.2. Operating result |
3 | |
| 1.3. Rental activities |
4 | |
| 1.4. Composition and evolution of the real estate portfolio |
4 | |
| 1.5. Investments |
6 | |
| 1.6. Divestments |
7 | |
| 1.7. Occupancy rate |
7 | |
| 1.8. Valuation of the portfolio by the independent property experts as at 30 June 2021 |
8 | |
| 1.9. State of the Belgian retail real estate market in 2021 |
8 | |
| 2. | Financial results for the first half of 2021 | 9 |
| 2.1. Analysis of the results |
10 | |
| 2.2. Financial structure as at 30 June 2021 |
12 | |
| 2.3. Risks during the remaining months of 2021 |
13 | |
| 3. | Outlook for 2021 | 14 |
| 4. | Consolidated condensed half-yearly figures | 15 |
| 4.1. Condensed consolidated Profit and Loss Statement |
15 | |
| 4.2. Condensed consolidated of comprehensive income |
16 | |
| 4.3. Condensed consolidated balance sheet |
17 | |
| 4.4. Condensed consolidated cash flow statement |
18 | |
| 4.5. Condensed statement of changes in the consolidated equity |
19 | |
| 4.6. Statement accompanying the consolidated half-yearly report |
20 | |
| 4.7. Notes to the consolidated condensed half-yearly figures |
20 | |
| 4.8. Report of the statutory auditor |
29 | |
| 4.9. Financial calendar |
30 | |
| 5. | Alternative Performance Measures | 31 |
| 5.1. Glossary of Alternative Performance Measures |
31 | |
| 5.2. Reconciliation tables of the Alternative Performance Measures |
34 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
In the first half of 2021 the government imposed a 'partial lockdown' commencing on 27 March 2021 and ending on 25 April 2021. During this 'partial lockdown', shopping in non-essential shops was allowed, provided that it was done by appointment and with a maximum of 50 customers per shop. Online orders could also be collected at the shops. During this period of 'partial lockdown', Vastned Belgium did not grant any rental waivers.
There was also a mandatory closure of the hospitality industry on 18 October 2020, with a partial reopening on 8 May 2021 and a full reopening from 9 June 2021. Vastned Belgium entered into dialogue with its tenants in the
Rental income decreased slightly (€ -0.3 million) in the first semester of 2021, compared to the same period in the previous financial year. This decrease is largely (€ -0.2 million) due to the altered composition of the real estate portfolio, as Vastned Belgium sold a non-strategic retail park in Schaarbeek and a solitary retail unit in Balen at the end of December 2020.
Furthermore, rental income decreased by € -0.3 million due to the renewal of commercial lease agreements in 2020. The conclusion of lease agreements with new tenants at lower rental terms and conditions, and an increased vacancy rate in the first half of 2021, resulted in a further decrease in rental income of € -0.3 million. Finally, rental waivers were granted to a very limited extent in
hospitality industry in order to make arrangements for the full period of mandatory closure (+/- 8 months). The final arrangement resulted in a waiver of approximately 50% of the rental income for the period concerned. This resulted in an impact of € 0.2 million on the rental income. These rental waivers were largely recognised in previous quarters, and only affect the numbers of the second quarter of 2021 to a minor extent.
Management's primary focus in the first semester of 2021 was again on timely collection of rental income. The Company was able to collect 97.9% of the rental income from the first semester of the year 2.
the first half of 2021, as a result of which rental income increased by € 0.5 million compared to the same period in the previous financial year.
Vastned Belgium's EPRA earnings amounts to € 6.6 million for the first half of 2021 compared to € 5.5 million over the same period last year. This increase is primarily due to the provision for doubtful debts, which was provisioned in the first semester of 2020. Property expenses and general company expenses have also decreased.
Per share, this amounts to an EPRA earnings of € 1.31 compared to € 1.09 in the first half of the previous financial year.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Vastned Belgium concluded twenty (20) rental agreements in the first half of 2021, representing a total rental volume of € 2.2 million. This corresponds to approximately 12.6% of Vastned Belgium's total rental income. In the current economic environment, which is heavily impacted by the COVID-19 pandemic, the conclusion of these twenty (20) rental agreements is the result of the great work of a committed asset management department.
In total, thirteen (13) lease agreements were concluded with new tenants, of which five (5) pop-up agreements and one (1) agreement with a residential tenant. Concluding
rental agreements with a retailer of garden furniture, an electronics chain and an Apple reseller resulted in a reduction of the share of 'fashion' in Vastned Belgium's real estate portfolio.
In addition, seven (7) rental agreements, with existing tenants, were renewed.
The rental prices negotiated by Vastned Belgium are in line with the market rental prices determined by valuation experts.
As at 30 June 2021, the majority of the portfolio consists of high-quality inner-city properties located in the cities of Antwerp, Brussels, Ghent and Bruges, as well as highquality retail parks and retail warehouses.
In the course of the first half of 2021, two retail properties were divested. This pertains to two (2) non-strategic retail properties in the portfolio of Vastned Belgium. The sale agreement for one (1) property was already concluded
in 2019 under the condition precedent of obtaining the necessary permits. In addition, a third store was divested on 15 July 2021. This property is presented at the end of the first semester as 'asset held for sale', and no longer as investment property.
More information about the divestments can be found at '1.6. Divestments'.
| Real estate portfolio | 30.06.2021 | 31.12.2020 |
|---|---|---|
| Fair value of investment properties 3 (in thousands €) | 316,952 | 330,427 |
| Total leasable space 3 (m²) | 76,086 | 81,166 |
As at 30 June 2021, the fair value of the investment properties amounted to € 317.0 million, which is a € 13.4 million decrease in fair value compared to 31 December 2020 (€ 330.4 million as at 31 December 2020).
The decrease (€ -13.4 million) in the fair value of the investment properties compared to 31 December 2020 is the combined effect of:
Divestment (€ -3.6 million) of two (2) non-strategic retail locations.
Reclassification (€ -2.2 million) of the property in Leopoldsburg from investment property to asset held for sale.
The average yield in the real estate company's portfolio amounted to 5.65% on 30 June 2021, which is in line with the average yield as at 31 December 2020 (5.64%).
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
In the case of a hypothetical negative adjustment of the yield as used by the property experts in valuing the Company's real estate portfolio (yield or capitalisation rate) by 1.0% (from 5.65% to 6.65% on average), the fair value of the real estate portfolio would decrease by € -47.7 million or 15.0%. This would increase the Company's debt ratio by 5.0% to 33.6%.
In the reverse case of a hypothetical positive adjustment of this yield by 1.0% (from 5.65% to 4.65% on average), the fair value of the real estate portfolio would increase by € 68.2 million or 21.5%. This would reduce the Company's debt ratio by 5.0% to 23.6%.
In the case of a hypothetical decline in the current passing rents of the Company (with equal yield) with € 1.0 million
(from € 17.9 million to € 16.9 million), the fair value of the real estate portfolio would decrease by € 17.7 million or 5.6%. This would increase the Company's debt ratio by 1.7% to 30.3%.
In the reverse case of a hypothetical increase in the current passing rents of the Company (at constant yield) of € 1.0 million (from € 17.9 million to € 18.9 million), the fair value of the real estate portfolio would increase by €17.7 million or 5.6%. This would reduce the Company's debt ratio by 1.5% to approximately 27.1%.
There is a correlation between the evolutions of the current passing rents and the yields used in the estimates of the investment properties. This correlation is disregarded in above sensitivity analysis.
Vastned Belgium's investment policy concentrates on multi-functional retail properties in Belgium, more specifically in the popular shopping cities of Antwerp, Brussels, Ghent and Bruges. The following criteria are important for spreading the risk of the property portfolio: the geographical location and the sector and the quality of the tenants.
The risk spread is summarised as follows on 30 June 2021:
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Vastned Belgium's asset management team maintains close contact with real estate agents and local owners, so that interesting investment opportunities can be assessed immediately. Vastned Belgium will also continue to be on an active lookout for interesting investment opportunities in the second half of 2021 in order to create added value within the real estate portfolio.
In the first half of 2021, Vastned Belgium invested € 0.1 million in the development of residential units located above existing retail properties.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
In the course of the first half of 2021, two (2) retail properties were divested. This pertains to two (2) nonstrategic retail properties in the portfolio of Vastned Belgium. The sale agreement for one (1) property was already concluded in 2019 under the condition precedent of obtaining the necessary permits.
The first sale pertains to a solitary retail warehouse located in Boechout. This sale took place for an amount of € 2.1 million, on which Vastned Belgium realised a capital gain of € 0.2 million. This solitary retail warehouse has a total retail area of 1,230 m² and consists of one rentable unit.
The second sale concerns a retail warehouse in Grivegnée, following a spontaneous offer from a private investor. The property is situated in a retail park with five (5) retail units, of which Vastned Belgium only owns one (1) unit. This sale took place for an amount of € 2.0 million, on which Vastned Belgium realised a capital gain of € 0.2 million.
This retail warehouse has a total retail area of 2,000 m² and consists of one rentable unit.
Finally, Vastned Belgium divested a retail warehouse in Leopoldsburg on 15 July 2021. The sale agreement for this retail warehouse was concluded in 2019 under the condition precedent of obtaining the necessary permits. These permits were received during the second quarter of 2021 and the notarial deed was signed on 15 July 2021. The sale price amounted to € 2.2 million, on which Vastned Belgium realised a limited capital loss. This retail warehouse has a total retail area of 1,850 m² and consists of one rentable unit.
These divestments are fully in line with the real estate company's strategy to focus on the top shopping cities in Belgium, in particular Antwerp, Brussels, Ghent and Bruges.
| Occupancy rate | 30.06.2021 | 31.12.2020 |
|---|---|---|
| Occupancy rate of the real estate portfolio | 97.4% | 96.2% |
The occupancy rate of the real estate portfolio amounts to 97.4% per 30 June 2021, which is an increase of 1.2% compared to 31 December 2020 (96.2%).
In today's retail market, the increase in occupancy rate is the result of the good work of a committed asset management department.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
In 2021, all retail properties of Vastned Belgium were valued partly by Cushman & Wakefield and partly by CBRE Belgium. The total fair value of the portfolio amounted to € 317.0 million, including IFRS 16 right-of-use assets, at the end of the first semester of 2021. The net book value of IFRS 16 right-of-use assets amounts to € 0.2 million.
When preparing the annual report for the financial year 2020, the independent property experts included an explanatory note and material uncertainty clause regarding the COVID-19 pandemic. This material uncertainty clause was disclosed in the chapter 'Valuation of the portfolio by the property experts' (pages 100-102 of the annual financial report 2020).
As at 30 June 2021, the independent property experts are of the opinion that the explanatory note and material uncertainty clause no longer apply. This means that the transaction volumes and other relevant market indicators are at a level where it can be argued that there is sufficient market information available for a judgement to be based on. Given that market conditions can change quickly, due to the COVID-19 pandemic, they do emphasise the importance of the valuation date.
In the report of 30 June 2021, the fair value of the retail properties amounts to:
| Property expert | Fair value of investment properties (in thousands €) |
|---|---|
| Cushman & Wakefield CBRE Belgium |
162,913 154,039 |
| Total 5 | 316,952 |
The leasing of retail space picked up again during the first half of 2021 and reached 214,500 m². This represents an increase of 40% compared to the first half of 2020, and these figures are also the best of the last ten years.
Especially the segment of retail warehousing scored high, while the inner-city market remained stable. In the inner cities, the amount of m² leased equals last year, but the number of transactions increased by 39%. This indicates that tenants are looking for smaller retail units. The average leased area decreased from 329 m² to 238 m² per rental transaction.
In total, 418 rental transactions were completed during the first half of 2021: 186 in the High Streets, 95 in Shopping Centres and 137 in Out-of-Town retail. Action and Dunkin' were the most active retailers with 8 transactions each.
In the first half of 2021, the investment volume in retail properties did not exceed € 200 million. The governmentimposed lockdowns certainly played a role in this, causing investors to adopt a wait-and-see attitude. The supermarket segment, which did not suffer in 2020 and 2021 from a drop in turnover due to COVID-19 pandemic, accounts for 40% of all retail investment properties.
The highest yields in the High Streets rose by 25 basis points to 4.25%
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| Rental income Rental-related expenses |
8,423 187 |
8,698 -666 |
| NET RENTAL INCOME | 8,610 | 8,032 |
| Recovery of rental charges and taxes normally payable by tenants on let properties Rental charges and taxes normally payable by tenants on let properties Other rental-related income and expenses |
1,127 -1,127 125 |
1,072 -1,072 42 |
| PROPERTY RESULT | 8,735 | 8,074 |
| Technical costs Commercial costs Charges and taxes on unlet properties Property management costs Other property charges Property charges |
-142 -107 -97 -449 -37 -832 |
-418 -76 -87 -457 -22 -1,060 |
| OPERATING PROPERTY RESULT | 7,903 | 7,014 |
| General costs | -452 | -671 |
| Other operating income and costs | 4 | 4 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 7,455 | 6,347 |
| Result on disposal of investment properties Changes in fair value of investment properties Other result on portfolio |
398 -7,781 53 |
0 -14,249 -296 |
| OPERATING RESULT | 125 | -8,198 |
| Financial income Net interest charges Other financial charges Changes in fair value of financial instruments Financial results |
0 -801 -3 336 -468 |
0 -837 -2 129 -710 |
| RESULT BEFORE TAXES | -343 | -8,908 |
| Taxes | -20 | -6 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| 30.06.2021 | 30.06.2020 | |
|---|---|---|
| NET RESULT | -363 | -8,914 |
| Note: • EPRA earnings • Result on portfolio • Changes in fair value of financial instruments • Non-distributable result subsidiaries |
6,633 -7,329 336 -3 |
5,517 -14,545 129 -15 |
| Attributable to: • Shareholders of the parent company • Minority interests |
-363 0 |
-8,914 0 |
| 30.06.2021 | 30.06.2020 | |
| BALANCE SHEET INFORMATION PER SHARE | ||
| Number of shares entitled to dividend Net result (€) Diluted net result (€) EPRA earnings (€) |
5,078,525 -0.07 -0.07 1.31 |
5,078,525 -1.76 -1.76 1.09 |
The rental income of Vastned Belgium amounted to € 8.4 million for the first half of 2021, a decrease of € -0.3 million compared to the same period last year (€ 8.7 million). This decrease is for an amount of € -0.2 million due to the disposal of a non-strategic retail park in Schaarbeek and a solitary retail warehouse in Balen at the end of December 2020, and for an amount of € -0.3 million due to the renewal of commercial lease agreements in 2020. The conclusion of lease agreements with new tenants at lower rental terms and conditions, and an increased vacancy rate in the first half of 2021, resulted in a further decrease in rental income of € -0.3 million. Finally, rental waivers were granted to a very limited extent in the first half of 2021, as a result of which rental income increased by € 0.5 million compared to the same period in the previous financial year.
Rental-related expenses amount to € -0.2 million (income) and pertain to the reversal of the provision for potential losses on outstanding trade receivables as at 31 December 2020. This provision was reversed in the first half of 2021 when the final rental waivers for the second lockdown (November 2020) were granted (recognised under rental income). At the end of the first half of 2020, a provision (€ 0.6 million) was recorded for outstanding receivables related to the first lockdown in 2020.
Over the course of the first half of 2021, Vastned Belgium recognised one-off income of € 0.1 million under the heading other rent-related income and expenses. This income pertains to money received by Vastned Belgium from the conclusion of bankruptcies. The bankruptcies themselves date from before 2021.
The property charges amounted to € 0.8 million (€ 1.0 million), and decreased by € -0.2 million. This decrease pertains primarily to a reduction in technical costs.
costs amounted to € 0.5 million (€ 0.7 million), which is a decrease of € -0.2 million compared to the same period last year. The main reason for this decrease is a reduction in the other costs and the stock exchange tax.
amounts to € 0.4 million and relates to the capital gain realised on the divestment of the retail warehouses located in Boechout and Grivegnée.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
The fair value of Vastned Belgium's existing real estate portfolio decreased by 2.2% 7 in the first half of 2021 compared to 31 December 2020. The changes in fair value of investment properties were negative for an amount of € -7.7 million (€ -14.2 million) and consist on the one hand of a write-down of the existing real estate portfolio of € -7.2 million and, on the other hand, of an amortization of the IFRS 16 right-of-use assets for an amount of € -0.5 million. This decrease in the fair value of the existing real estate portfolio is the result of a decrease in estimated market rents and an increase in the capitalisation rate for a number of properties.
The financial result (excl. changes in the fair value of financial instruments) amounted to € -0.8 million for the first half year of 2021, which puts it completely in line with the same period last year (€ -0.8 million). The average interest rate for financing amounted to 1.7%, including bank margins for the first half of 2021 (1.7%) which is equal compared to the same period last year.
The changes in the fair value of financial instruments
include a further decrease in the negative market value of the interest rate swaps that cannot be classified as cash flow hedging instruments in accordance with IFRS 9 'Financial Instruments'. This decrease amounts to € 0.3 million (€ 0.1 million).
The net result of Vastned Belgium for the first half of 2021 amounted to € -0.4 million (€ -8.9 million) and may be divided into:
The EPRA earnings per share amount to € 1.31 for the first half year of 2021 compared to € 1.09 for the same period last year.
| Key figures per share | 30.06.2021 | 31.12.2020 | 30.06.2020 |
|---|---|---|---|
| Number of shares entitled to dividend | 5,078,525 | 5,078,525 | 5,078,525 |
| Net result (6 months/1 year/6 months) (€) | -0.07 | -1.68 | -1.76 |
| EPRA earnings (6 months/1 year/6 months) (€) | 1.31 | 2.44 | 1.09 |
| Net value (fair value) (€) | 44.16 | 46.28 | 46.20 |
| Net value (investment value) (€) | 45.90 | 48.12 | 48.05 |
| Share price on closing date (€) | 30.60 | 24.00 | 34.00 |
| Premium (+) / Discount (-) with regard to fair net value (%) | -30.7% | -48.1% | -26.4% |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
As at 30 June 2021, the net value (fair value) of the share amounted to € 44.16 (€ 46.28 as at 31 December 2020). Given that the share price of Vastned Belgium (VASTB) amounted to € 30.60 on 30 June 2021, the share was listed on 30 June 2021 at a discount of 30.7% compared to the net value (fair value).
Vastned Belgium's debt ratio amounted to 28.6% on 30 June 2021, which brings it in line with the debt ratio at the end of the financial year 2020 (28.5% on 31 December 2020).
| EPRA - Key figures 8 | 30.06.2021 | 31.12.2020 |
|---|---|---|
| EPRA Earnings per share | 1.31 | 2.44 |
| EPRA NRV (€) | 46.10 | 48.34 |
| EPRA NTA (€) | 44.51 | 46.68 |
| EPRA NDV (€) | 44.16 | 46.28 |
| EPRA Net Initial Yield (NIY) (%) | 4.8% | 4.7% |
| EPRA Adjusted NIY (%) | 4.9% | 4.9% |
| EPRA Rental Vacancy Percentage (%) | 2.8% | 4.1% |
| EPRA Cost Ratio (including direct vacancy costs) (%) | 13.0% | 16.9% |
| EPRA Cost Ratio (excluding direct vacancy costs) (%) | 11.8% | 16.2% |
As at 30 June 2021, Vastned Belgium has a stable financial structure that allows it to continue its operations during the second half of 2021. No credit lines are due to mature within the year, which means that the Company does not need to refinance its credit lines.
The financial structure can be summarised as follows:
Unused credit facilities of € 34.7 million available in order to cover the fluctuations of cash needs and for financing future investments.
For 64% of the available credit facilities, the interest rate is fixed through interest rate swaps or through fixed interest rates, 36% has a variable interest rate; of the credit facilities drawn, this amounts to 89% and 11% respectively.
8) The statutory auditor assessed whether the "EPRA earnings", "EPRA NRV", "EPRA NTA" en "EPRA NDV" ratios were calculated in accordance with the definitions of the EPRA BPR of October 2019, and whether the data employed for the calculation of these ratios match the accounting data of the consolidated financial statements.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Vastned Belgium estimates the risks during the remaining months of 2021 to be as follows:
The COVID-19 pandemic and government-imposed closures of non-essential shops have had a significant impact on retailers' operating results in the first half of 2021. Despite this, there has been a significant revival and optimism since the reopening of the shops and the hospitality industry. Inner-city trade is also gradually starting to revive. However, the inner-city buildings measuring over 1,000 m² that are becoming vacant are experiencing difficulties with reletting. Therefore, the rents of such large properties are under pressure.
As a result of financing with borrowed capital, the Company's yield also depends on interest rate developments. In order to mitigate this risk, the Company strives for a loan portfolio with a ratio of onethird borrowed capital with a variable interest rate and two-thirds borrowed capital with a fixed interest rate. Depending on developments in interest rates, this may be temporarily deviated from.
As at 30 June 2021, 89% of the drawn-down credit facilities consists of fixed-rate financing or financing fixed by means of interest rate swaps. The remaining 11% are loans with a variable interest rate.
Ghent Zonnestraat • YAYA
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
During the first half of 2021, the COVID-19 pandemic and associated lockdowns continued to be reflected in the lower turnover results for retailers. However, our population is gradually getting vaccinated and social life is starting to resume day after day. There is an undeniable optimism among the population and everyone is gradually getting back on track. Shoppers are returning to the high streets and listed retailers are once again showing revenue increases in their communications.
As e-commerce continues to grow, retailers maintain fewer points of sale. The vacant properties are gradually being taken over by food & beverage concepts, albeit at lower rent than the usual fashion rental income. As a result, pressure on inner-city rental income will continue for some time to come.
Subject to unexpected developments such as bankruptcies of important tenants, unforeseen interest rate rises or new measures to combat the COVID-19 pandemic, Vastned Belgium expects for the financial year 2021 to realise EPRA earnings per share between € 2.40 and € 2.50.
Brussels Elsensesteenweg • Medi Market
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| (in thousands €) | Note | 30.06.2021 | 30.06.2020 |
|---|---|---|---|
| Rental income Rental-related expenses |
4.7.5. 4.7.7. |
8,423 187 |
8,698 -666 |
| NET RENTAL INCOME | 8,610 | 8,032 | |
| Recovery of rental charges and taxes normally payable by tenants on let properties Rental charges and taxes normally payable by tenants on let properties Other rental-related income and expenses |
1,127 -1,127 125 |
1,072 -1,072 42 |
|
| PROPERTY RESULT | 8,735 | 8,074 | |
| Technical costs Commercial costs Charges and taxes on unlet properties Property management costs Other property charges Property charges |
-142 -107 -97 -449 -37 -832 |
-418 -76 -87 -457 -22 -1,060 |
|
| OPERATING PROPERTY RESULT | 7,903 | 7,014 | |
| General costs Other operating income and costs |
-452 4 |
-671 4 |
|
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 7,455 | 6,347 | |
| Result on disposal of investment properties Changes in fair value of investment properties Other result on portfolio |
4.7.8. | 398 -7,781 53 |
0 -14,249 -296 |
| OPERATING RESULT | 125 | -8,198 | |
| Financial income Net interest charges Other financial charges Changes in fair value of financial instruments Financial results |
0 -801 -3 336 -468 |
0 -837 -2 129 -710 |
|
| RESULT BEFORE TAXES | -343 | -8,908 | |
| Taxes | -20 | -6 | |
| NET RESULT | -363 | -8,914 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| 30.06.2021 | 30.06.2020 | |
|---|---|---|
| NET RESULT | -363 | -8,914 |
| Note: • EPRA earnings • Result on portfolio • Changes in fair value of financial instruments • Non-distributable result subsidiaries |
6,633 -7,329 336 -3 |
5,517 -14,545 129 -15 |
| Attributable to: • Shareholders of the parent company • Minority interests |
-363 0 |
-8,914 0 |
| 30.06.2021 | 30.06.2020 | |
| BALANCE SHEET INFORMATION PER SHARE | ||
| Number of shares entitled to dividend Net result (€) Diluted net result (€) EPRA earnings (€) |
5,078,525 -0.07 -0.07 1.31 |
5,078,525 -1.76 -1.76 1.09 |
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| NET RESULT | -363 | -8,914 |
| Other components of comprehensive income (recyclable through income statement) | 0 | 0 |
| Changes in the effective part of fair value of authorised hedging instruments that are subject to hedge accounting |
0 | 0 |
| COMPREHENSIVE INCOME | -363 | -8,914 |
| Attributable to: • Shareholders of the parent company • Minority interests |
-363 0 |
-8,914 0 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| TOTAL ASSETS | 322,902 | 333,494 | |
|---|---|---|---|
| Deferred charges and accrued income | 1,492 | 533 | |
| Cash and cash equivalents | 412 | 428 | |
| Tax receivables and other current assets | 0 | 785 | |
| Trade receivables | 4.7.9. | 1,157 | 566 |
| Asset held for sale | 2,150 | 0 | |
| Current assets | 5,211 | 2,312 | |
| Trade receivables and other non-current assets | 3 | 3 | |
| Other tangible assets | 576 | 569 | |
| Investment properties | 4.7.4. | 316,952 | 330,427 |
| Intangible assets | 160 | 183 | |
| Non-current assets | 317,691 | 331,182 | |
| Assets (in thousands €) | Note | 30.06.2021 | 31.12.2020 |
| Shareholders' equity and liabilities (in thousands €) | Note | 30.06.2021 | 31.12.2020 |
|---|---|---|---|
| Shareholders' equity | 224,259 | 235,033 | |
| Shareholders' equity attributable to shareholders of the parent company Share capital Share premium Reserves Net result of the financial year |
224,259 97,213 4,183 123,226 -363 |
235,033 97,213 4,183 142,161 -8,524 |
|
| Minority interests | 0 | 0 | |
| Liabilities | 98,643 | 98,461 | |
| Non-current liabilities Non-current financial debts • Credit institutions • Financial leasing Other non-current financial liabilities Other non-current liabilities Deferred tax - liabilities |
4.7.10. 4.7.11. |
93,187 91,070 90,332 738 1,695 179 243 |
94,811 92,405 91,601 804 2,031 175 200 |
| Current liabilities Provisions Current financial debts • Credit institutions • Financial leasing Trade debts and other current debts Other current liabilities Deferred income and accrued charges |
4.7.10. | 5,456 269 147 0 147 485 531 4,024 |
3,650 269 656 500 156 1,205 570 950 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 322,902 | 333,494 | |
| 17 / 38 |
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| (in thousands €) | Note | 30.06.2021 | 30.06.2020 |
|---|---|---|---|
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR | 4.3. | 428 | 554 |
| 1. Cash flow from operating activities | 8,253 | 4,276 | |
| Operational result | 125 | -8,198 | |
| Interest paid | -781 | -800 | |
| Other non-operating elements | 313 | 121 | |
| Adjustment of result for non-cash flow transactions | 4.7.8. | 7,110 | 14,107 |
| • Depreciations on intangible and other tangible fixed assets | 62 | 46 | |
| • Income from disposal of investment properties | -398 | 0 | |
| • Spread of rental discounts and benefits granted to tenants | 97 | -366 | |
| • Changes in fair value of investment properties | 7,781 | 14,190 | |
| • Other result on portfolio | -97 | 296 | |
| • Changes in fair value of financial instruments | -335 | -129 | |
| • Other non-cash flow transactions | 0 | 70 | |
| Change in working capital | 1,486 | -954 | |
| • Movement of assets | -860 | -3,192 | |
| • Trade receivables | -591 | -3,046 | |
| • Tax receivables and other non-currents assets | 785 | 0 | |
| • Deferred charges and accrued income | -1,054 | -146 | |
| • Movement of liabilities | 2,346 | 2,238 | |
| • Deferred tax - liabilities | 43 | -71 | |
| • Trade debts and other current debts | -720 | -11 | |
| • Other current liabilities | -38 | -70 | |
| • Deferred income and accrued charges | 3,061 | 2,390 | |
| 2. Cash flow from investment activities Acquisitions of intangible and other tangible fixed assets Acquisitions of investment properties Investments in existing investment properties Income from disposal of investment properties Prepaid investment invoices |
4.7.4. 4.7.8. |
3,993 -47 0 -117 4,062 95 |
-130 -1 0 -129 0 0 |
| 3. Cash flow from financing activities | -12,262 | -4,272 | |
| Repayment of loans | -5,500 | -329 | |
| Drawdown of loans | 3,730 | 10,775 | |
| Resolution of IRS | 0 | 0 | |
| Repayment of financial lease liabilities | -86 | 7 | |
| Receipts from non-current liabilities as guarantee | 5 | 3 | |
| Dividend paid | -10,411 | -14,728 | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE SEMESTER | 4.3. | 412 | 428 |
Half-yearly financial report 2021
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| (in thousands €) | Share capital |
Share premium |
Reserves | Net result of the financial year |
Minority interests |
Total share holders' equity |
|---|---|---|---|---|---|---|
| Balance at 31 December 2019 | 97,213 | 4,183 | 152,572 | 4,317 | 0 | 258,285 |
| Comprehensive income of 2020 Transfer through result allocation 2019: |
-8,524 | -8,524 | ||||
| • Transfer from result on portfolio to reserves • Transfer from changes in fair value of financials assets and liabilities |
-11,847 -289 |
11,847 289 |
- - |
|||
| • Other movements | 1,725 | -1,725 | - | |||
| Dividends financial year 2019 | -14,728 | -14,728 | ||||
| Balance at 31 December 2020 | 97,213 | 4,183 | 142,161 | -8,524 | 0 | 235,033 |
| Comprehensive income of the first semester 2021 Transfer through result allocation 2020: |
-363 | -363 | ||||
| • Transfer from result on portfolio to reserves • Transfer from changes in fair value of |
-22,747 | 22,747 | - | |||
| financials assets and liabilities | 348 | -348 | - | |||
| • Other movements Dividends financial year 2020 |
3,463 | 3,463 -10,411 |
- -10,411 |
|||
| Balance at 30 June 2021 | 97,213 | 4,183 | 123,226 | -363 | 0 | 224,259 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
In accordance with Article 13 §2 of the Royal Decree of 14 November 2007, the Board of Directors, composed of Lieven Cuvelier (chairman), Anka Reijnen, Ludo Ruysen, Reinier Walta and Peggy Deraedt, declares that according to their knowledge:
Vastned Belgium NV (the "Company") is a public Regulated Real Estate Company (RREC), which is subject to the RREC legislation9 and whose registered office is located in Belgium, at 2600 Antwerp (Berchem). The Company's shares are listed on NYSE Euronext Brussels under the code VASTB. The condensed consolidated interim financial statements for the reporting period ended 30 June 2021, include the Company and its subsidiaries (the "Group").
The condensed consolidated interim financial statements pertain to the period from 1 January 2021 to 30 June 2021, and were approved for publication by the Board of Directors on 27 July 2021.
The condensed consolidated interim financial statements of Vastned Belgium have been prepared in accordance with the "International Financial Reporting Standards" (IFRS) and more specifically in accordance with IAS 34 "Interim Financial Reporting" as adopted within the European Union and in accordance with the legislation of 12 May 2014 on Regulated Real Estate Companies. These condensed consolidated interim financial statements do not contain all the information required for full reporting and should be read in conjunction with the consolidated financial statements for financial year 2020.
The condensed consolidated interim financial statements are expressed in thousands of euro, rounded to the nearest thousand. Due to the rounding, the total of certain figures in the tables may differ to figures in the primary financial statements or between different notes.
9) The RREC Act comprises both the Act of 12 May 2014 regarding Regulated Real Estate Companies and the Royal Decree of 13 July 2014 regarding Regulated Real Estate Companies
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
The principles employed by Vastned Belgium in this condensed consolidated interim financial statements are the same as those applied by the Group in the consolidated financial statements for the financial year 2020.
However, the Company would like to the specify the principles for the accounting of rental waivers, following the mandatory closure of non-essential stores and the hospitality industry, in more detail.
Vastned Belgium made the accounting policy choice to process rental waivers on the basis of 'IFRS 9 - Financial Instruments'. As a result, the rental waiver is not regarded as a 'Lease modification' according to 'IFRS 16 – Lease Agreements'. The rental waiver is considered as a forgiveness of past lease payments that is an extinguishment of the operating lease receivable. For the period of closing, a provision for expected credit losses is recognized under the line "Other rental-related costs". At the moment that a final agreement is reached with the tenant regarding the amount of the rent waiver, a credit note is issued which is presented as a deduction from 'Rental Income'. At the same time, the provision for expected credit losses is reversed.
Since 1 January 2021, the following (amended) standards and interpretations have been applicable to Vastned Belgium:
These new or amended standards and interpretations have no material impact on these condensed consolidated interim financial statements.
The following published (amended) standards will only become effective after 31 December 2021 and have not been adopted earlier by the Group:
These amended standards and interpretations will have no material impact on Vastned Belgium's consolidated financial statements for 2021.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Vastned Belgium uses the geographical region for segment reporting. This segmentation basis reflects the three (3) geographic markets in which the Group is active: Flanders, Brussels and Walloon Region.
The category 'corporate' includes all non-segment attributable costs that are borne at Group level.
| Geographical segmentation | Flanders | Walloon Region | Brussels | Corporate | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands €) | 30.06.'21 | 30.06.'20 | 30.06.'21 | 30.06.'20 | 30.06.'21 | 30.06.'20 | 30.06.'21 | 30.06.'20 | 30.06.'21 | 30.06.'20 |
| Rental income Rental-related expenses |
6,111 200 |
6,128 -32 |
988 6 |
1,027 0 |
1,324 -19 |
1,543 0 |
0 0 |
0 -635 |
8,423 187 |
8,698 -666 |
| NET RENTAL INCOME | 6,311 | 6,096 | 994 | 1,027 | 1,305 | 1,543 | 0 | -635 | 8,610 | 8,032 |
| Property management costs and income |
102 | 42 | 23 | 0 | 0 | 0 | 0 | 0 | 125 | 42 |
| PROPERTY RESULT | 6,413 | 6,138 | 1,017 | 1,027 | 1,305 | 1,543 | 0 | -635 | 8,735 | 8,074 |
| Operating result before result on portfolio |
5,939 | 5,300 | 841 | 865 | 1,123 | 1,409 | -448 | -1,227 | 7,455 | 6,347 |
| Result on disposals of investment properties Changes in fair value of investment properties Other result on portfolio |
231 -6,860 95 |
0 -10,506 -153 |
167 -491 -92 |
0 -3,893 54 |
0 -430 50 |
0 150 -196 |
0 0 0 |
0 0 0 |
398 -7,781 53 |
0 -14,219 -296 |
| Operating result of the segment |
-595 | -5,359 | 425 | -2,974 | 743 | 1,363 | -448 | -1,227 | 125 | -8,198 |
| Financial result Taxes |
-5 0 |
-5 0 |
-1 0 |
-1 0 |
0 0 |
0 0 |
-462 -20 |
-703 -6 |
-468 -20 |
-710 -6 |
| NET RESULT | -600 | -5,365 | 424 | -2,976 | 743 | 1,363 | -930 | -1,936 | -363 | -8,914 |
| Geographical segmentation 10 | Flanders Walloon Region |
Brussels | Total | |||||
|---|---|---|---|---|---|---|---|---|
| (in thousands €) | 30.06.'21 | 31.12.'20 | 30.06.'21 | 31.12.'20 | 30.06.'21 | 31.12.'20 | 30.06.'21 | 31.12.'20 |
| Fair value of investment properties • of which are investments during |
229,641 | 240,401 | 29,504 | 31,790 | 57,807 | 58,237 | 316,952 | 330,427 |
| the financial year (fair value) • of which are acquisitions of |
117 | 295 | 0 | 0 | 0 | 6 | 117 | 301 |
| investment properties Disposals during the financial year |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| (fair value) Investment value of real estate |
1,863 | 1,631 | 1,799 | 0 | 0 | 6,644 | 3,662 | 8,275 |
| properties Totale leasable space (m²) |
235,379 56,305 |
246,397 59,439 |
30,239 10,880 |
32,580 12,879 |
59,252 8,901 |
59,693 8,848 |
324,871 76,086 |
338,670 81,166 |
10) Excluding assets held for sale.
Half-yearly financial report 2021
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The fair value of investment properties decreased the most in Flanders. The decrease is explained by a limited number of large (> 1,000 m²) inner-city retail properties. More information can be found at '2.3. Risks for the remaining months of 2021'.
| (in thousands €) | 2021 Total |
2020 Total |
|---|---|---|
| Balance sheet as at 1 January | 330,427 | 360,752 |
| Investments in existing investment properties Acquisition of shares of real estate companies Acquisitions of investment properties Disposals of investment properties Reclassification to assets held for sale Indexation of right-of-use assets according to IFRS 16 Changes in fair value of investment properties 11 |
117 0 0 -3,664 -2,150 3 -7,781 |
129 0 0 0 0 0 -14,243 |
| Balance sheet as at 30 June | 316,952 | 346,638 |
| Other information Investment value of real estate properties |
324,871 | 355,284 |
Investment properties are valued, by an independent real estate expert, at fair value in accordance with IAS 40 'Investment Property'. The fair value is determined on the basis of one of the following levels of the hierarchy.
techniques. These techniques make maximum use of observable market data, where available, and rely as little as possible on entity-specific estimates.
• Level 3: Assets and liabilities of which the fair value is determined using valuation techniques of which some parameters are based on non-observable market data.
Investment properties are valued at fair value according to level 3.
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| Rents Rental discounts Compensation for early termination of lease agreements |
8,705 -332 50 |
9,062 -364 0 |
| Total rental income | 8,423 | 8,698 |
Rental income includes rent and revenues directly related to rent, such as compensations for early termination of lease contracts, less the granted rental discounts and rental benefits. Rental discounts are spread in the income statement from the start of the lease agreement until the next possible termination date of the lease.
11) Also contains the revaluation of the right-of-use assets according to IFRS 16 for an amount of € -521 thousand (€ -59 thousand previous financial year).
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
The table below provides an overview of the undiscounted value of the future rental income up to the first expiry date of the lease agreement. This takes into account the option of termination granted by law to the tenant12 after the end of the current three-year period.
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| Receivables with a remaining duration of: • Less than one year • Between one and two years • Between two and three years • Between three and four years • Between four and five years • More than five years |
15,616 9,408 4,157 1,243 74 0 |
18,530 14,499 6,298 580 0 0 |
| Total of the future minimum rental income | 30,498 | 39,907 |
If we assume that the tenants will not make use of this three-year cancellation option, then the undiscounted value of the future rental income amounts to € 89.6 million (€ 82.6 million as at 31 December 2020). The increase is due to the strong work of the asset management department, which renewed a significant number of contracts in the first half of 2021.
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| Write-downs on trade receivables Reversal of write-downs on trade receivables |
-79 266 |
-666 0 |
| Total rental-related expenses | 187 | -666 |
Rental-related expenses contain write-downs of trade receivables that are included in profit or loss if the book value is higher than the estimated realisable value.
In the first half of 2021, the write-downs that were recognized on 31 December 2020, as a result of the mandatory closure of non-essential stores in November 2020, have been reversed. This reversal is the result of the rental waivers that are deducted from the rental income when agreed with the tenant.
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| (in thousands €) | 30.06.2021 | 30.06.2020 |
|---|---|---|
| Carrying amount (fair value) of investment properties sold | 3,664 | 0 |
| Selling price | 4,064 | 0 |
| Selling costs | -2 | 0 |
| Net selling price | 4,062 | 0 |
| Total result on the disposal of investment properties | 398 | 0 |
In the first half of 2021, Vastned Belgium realised two (2) divestments for a total sales price of € 4.1 million. The fair value of these properties amounted to € 3.7 million on 31 March 2021, as a result of which the Company realised a capital gain of € 0.4 million.
A detailed description of these divestments can be found at '1.6. divestments' (see above).
The properties represented 1.1% of the total fair value of the Company's real estate portfolio and represented approximately € 0.3 million in rental income, or 1.5% of Vastned Belgium's total annual rental income.
| (in thousands €) | 30.06.2021 | 31.12.2020 |
|---|---|---|
| Outstanding trade receivable Invoices to be issued and credit notes to be received Doubtful debtors Provision doubtful debtors |
1,336 83 221 -483 |
1,011 3 224 -672 |
| Total trade receivables | 1,157 | 566 |
The slight increase in outstanding trade receivables is caused by a change to the process whereby the rental invoices are already accounted for at the end of the previous month (corrected in deferred income and accrued charges). At the end of the previous financial year, several rental invoices were outstanding as a result of mandatory closure of non-essential shops in November 2020.
For a detailed description of the Company's financial structure, reference is made to '2.2 Financial structure as at 30 June 2021' (see above).
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Vastned Belgium's main financial instruments consist of financial and commercial receivables and debts, cash and cash equivalents as well as financial instruments of the interest rate swap (IRS) type.
| (in thousand €) | 30.06.2021 | 31.12.2020 | ||||
|---|---|---|---|---|---|---|
| Financial instruments (assets) | Categories | Level | Book value | Fair value | Book value | Fair value |
| Non-current assets Non-current financial assets |
C | 2 | 0 | 0 | 0 | 0 |
| Trade receivables and other non-current assets | A | 2 | 3 | 3 | 3 | 3 |
| Current assets Trade receivables Tax receivables and other current assets Cash and cash equivalents |
A A B |
2 2 1 |
1,157 0 412 |
1,157 0 412 |
566 785 428 |
566 785 428 |
| Financial instruments - liabilities | ||||||
| Non-current liabilities Non-current financial debts (interest-bearing) • Credit institutions • Financial leasing Other non-current financial liabilities Other non-current liabilities |
A A A C A |
2 2 2 2 2 |
91,070 90,332 738 1,695 179 |
90,407 89,669 738 1,695 179 |
92,405 91,602 804 2,031 175 |
91,503 90,699 804 2,031 175 |
| Current liabilities Current financial debts (interest-bearing) • Credit institutions • Financial leasing Other current financial debts Trade debts and other current debts |
A A A C A |
2 2 2 2 2 |
147 0 147 0 485 |
147 0 147 0 485 |
656 500 156 0 1,205 |
656 500 156 0 1,205 570 |
| Other current liabilities | A | 2 | 531 | 531 | 570 |
In accordance with IFRS 9 'Financial Instruments', all financial assets and financial liabilities are measured at amortised cost or fair value. The valuation is depending on the proposed classification of the financial assets and financial liabilities. The Group has defined the following categories:
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Financial instruments are stated at fair value. The fair value hierarchy is based on data for the valuation of financial assets and liabilities at the valuation date. The distinction between the three (3) levels is as follows:
Vastned Belgium's financial instruments correspond to level 2 in the hierarchy of fair values. The valuation techniques related to the fair value of level 2 financial instruments are as follows:
On 30 June 2021, the Company owns the following financial derivatives:
| (in thousands €) | Start date | End date | Interest rate | Contractual notional amount |
Hedge accounting |
Fair value | ||
|---|---|---|---|---|---|---|---|---|
| Yes/No | 30.06.2021 | 31.12.2020 | ||||||
| 1 | IRS | 31.10.2019 | 31.07.2024 | 0.6725% | € 15,000 | No | -295 | -352 |
| 2 | IRS | 31.10.2019 | 31.07.2024 | 0.7375% | € 10,000 | No | -217 | -258 |
| 3 | IRS | 14.11.2019 | 31.07.2024 | 0.7250% | € 5,000 | No | -107 | -127 |
| 4 | IRS | 31.07.2017 | 31.07.2023 | 0.9520% | € 15,000 | No | -297 | -370 |
| 5 | IRS | 31.07.2017 | 31.07.2024 | 0.9550% | € 10,000 | No | -285 | -339 |
| 6 | IRS | 31.07.2017 | 31.07.2024 | 1.0940% | € 15,000 | No | -494 | -585 |
| Other non current financial liabilities | -1,695 | -2,031 | ||||||
| Other current financial liabilities | 0 | 0 | ||||||
| Total fair value of financial derivatives | -1,695 | -2,031 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
The affiliated parties with whom the Company trades are its majority shareholder, its subsidiary (EuroInvest Retail Properties NV), its directors and members of the Executive Committee.
As at 30 June 2021, Vastned Belgium has no debts to affiliated companies.
On 3 May 2021, Reinier Walta announced that he had a potential conflict of interest of a proprietary nature pertaining to the intended decision to approve the management agreement between the Company and Mr. Walta with regard to his position as strategic CEO and strategic CFO of the Company.
The parties merely wish to officialise the existing agreements. This agreement aligns with the agreements of the other members of the Executive Committee, which contain the usual provisions for this type of agreement. Reinier Walta's positions as strategic CEO and strategic CFO remains unpaid at Vastned Belgium; however, the contractual, non-contractual or other liability as a member of the Executive Committee towards Vastned Belgium in connection with the performance of his function, together with the liability of the other members of the Executive Committee towards Vastned Belgium, will be limited to € 12,000,000. This (limited) liability is analogous to the liability that Reinier Walta would have if the Company had opted for a dual management structure, with a Supervisory Board and a Board of Directors, and Mr. Walta had been a member of the Supervisory Board.
In the first half of 2021, there were no changes in the contingent liabilities as described in 'Note 22 – Contingent liabilities' of the Financial Report in the Annual Report 2020.
On 15 July 2021, Vastned Belgium divested a retail warehouse, located in Leopoldsburg, for an amount of € 2.2 million. The sale agreement for this retail warehouse was concluded in 2019 under the condition precedent of obtaining the necessary permits. These permits were received during the second quarter of 2021 and the notarial deed was signed on 15 July 2021. Vastned Belgium realises a limited capital loss on this sale. This solitary retail warehouse has a total retail area of 1,850 m² and consists of one (1) rentable unit.
This building represented 0.7% of the total fair value of the Company's real estate portfolio, and represented approximately € 0.2 million in rental income or 0.9% of Vastned Belgium's total annual rental income.
There were no other significant events after the balance sheet date.
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Statutory auditor's report to the board of directors of Vastned Belgium nv on the review of the Condensed Consolidated Half-yearly Figures as at 30 June 2021 and for the six-month period then ended.
We have reviewed the accompanying interim condensed consolidated balance sheet of Vastned Belgium nv (the "Company"), and its subsidiaries (collectively referred to as "the Group") as at 30 June 2021, the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated cash flow statement and condensed statement of changes in consolidated shareholders' equity for the six-month period then ended, and notes ("the Condensed Consolidated Half-yearly Figures"). The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying Condensed Consolidated Half-yearly Figures as at 30 June 2021 and for the six-month period then ended is not prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.
Brussels, 27 July 2021
EY Bedrijfsrevisoren bv/EY Réviseurs d'Entreprises srl Statutory auditor represented by
Joeri Klaykens* Partner
* Acting on behalf of a bv/srl
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
A complete overview of the alternative performance measures can be found at 'Chapter 8. Alternative performance measures' of the annual report for 2020, or to the Company's website www.vastned.be.
The table below provides an overview of the alternative performance measures employed throughout the half-yearly financial report.
| Alternative Performance Measure |
Definition | Use |
|---|---|---|
| Result per share | • Net result per share: Net result divided by the number of shares entitled to dividend • Gross dividend per share: EPRA earnings divided by the number of shares entitled to dividend |
Measure the result of the share and enable comparison with the dividend paid per share. |
| Net value per share in investment value |
This pertains to the book value of the share before deduction of the transaction costs (mainly transfer rights) from the value of the investment properties. It is calculated by dividing the amount of equity attributable to the shareholders of the parent company, where the transfer rights that are recognised under equity at the balance sheet date are deducted, by the number of shares entitled to dividend. |
Measure the investment value of the share and enable comparison with its stock market value. |
| Net value per share in fair value |
This pertains to the book value of the share after deduction of the transaction costs (mainly transfer rights) from the value of the investment properties. It is calculated by dividing the amount of equity attributable to the shareholders of the parent company by the number of shares entitled to dividend. |
Measure the fair value of the share and enable comparison with its stock market value. |
| Financial result (excluding changes in the fair value of the financial assets and liabilities) |
The 'Financial Result' from which the heading 'Changes in the fair value of financial assets and liabilities' is deducted. |
Reflect the Company's actual cost of financing. |
| Average interest rate of financing |
The average interest rate on the Company's financing is calculated by dividing the net interest charges (on an annual basis) by the weighted average debt of the period (based on the daily drawdowns of the financing). Financing includes draw-downs from credit institutions, recognized under the line 'Credit institutions' in the long-term and short-term financial debts of the consolidated balance sheet. |
The average interest rate of financing measures the average financing cost of the debts and allows following its evolution over time, depending on the evolution of the company and of the financial markets. |
Half-yearly financial report 2021
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| Alternative Performance Measure |
Definition | Use |
|---|---|---|
| Average yield of the portfolio |
The average yield of the portfolio is calculated as the ratio between the rental income and the fair value of investments properties. |
Evaluate the income from investment properties. |
| Portfolio result | The portfolio result includes (i) the result on the disposal of investment properties, (ii) the changes in the fair value of investment properties, and (iii) the other portfolio result. |
The portfolio result measures the realised and unrealised profit and loss related to investment properties compared to the valuation of the independent property experts at the end of the previous financial year. |
| EPRA earnings | EPRA earnings is the operating result before the result on the portfolio from which the financial result, taxes, changes in the fair value of financial derivatives (non-effective hedges in accordance with IFRS 9) and the non-distributable result of subsidiaries are eliminated. |
The EPRA earnings measures the result of the strategic operational activities, excluding the following elements (i) the changes in the fair value of financial assets and liabilities (ineffective hedges in accordance with IFRS 9) and (ii) the portfolio result. |
| EPRA earnings per Share |
EPRA earnings per share is the EPRA earnings divided by the number of shares entitled to dividend. |
The EPRA earnings per share measures the EPRA earnings per share entitled to dividend and makes it possible to compare it with the gross dividend paid per share. |
| EPRA NRV | EPRA Net Reinstatement Value (NRV) provide an estimation of the amount required to rebuild the Company through the investment markets based on its current capital and financing structure. |
Measure the fair value of the share and enable comparison with its stock market value. |
| EPRA NTA | EPRA Net Tangible Assets (NTA) assumes that the Company buys and sells assets, which would result in the realization of certain levels of unavoidable deferred tax. |
Measure the fair value of the share and enable comparison with its stock market value. |
| EPRA NDV | The EPRA Net Disposal Value (NDV) represents the value accruing to the Company's shareholders under an asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax. |
Measure the fair value of the share and enable comparison with its stock market value. |
| EPRA Net Initial Yield (NIR) |
Annualised gross rental income based on the contractual rents passing as at the closing date of the annual accounts, less the property charges, divided by the market value of the portfolio, increased by the estimated transaction rights and costs resulting from the hypothetical disposal of investment properties. |
This measure offers investors the opportunity to compare portfolio valuations within Europe. |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| Alternative Performance Measure |
Definition | Use |
|---|---|---|
| EPRA topped-up NIY | This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents). |
This measure, which includes an adjustment to the EPRA NIR before the end of rent-free periods (or other unexpired lease incentives), offers investors the opportunity to compare portfolio valuations within Europe. |
| EPRA vacancy rate | Estimated market rental value (ERV) of vacant space divided by ERV of the whole portfolio available upon rental. |
Displays the percentage of vacancy based on estimated market rental value. |
| EPRA cost ratio (including direct vacancy costs) |
EPRA costs (including direct vacancy costs) divided by gross rental income less compensations for leasehold estate and long-lease rights. |
Measurement of changes in the company's operating costs. |
| EPRA cost ratio (excluding direct vacancy costs) |
EPRA costs (excluding direct vacancy costs) divided by gross rental income less compensations for leasehold estate and long-lease rights. |
Measurement of changes in the company's operating costs. |
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| Result per share | 30.06.2021 | 30.06.2020 | |
|---|---|---|---|
| Net result (€ thousands) | A | -363 | -8,914 |
| Number of shares entitled to dividend | B | 5,078,525 | 5,078,525 |
| (Diluted) Net result (€) | A/B | -0.07 | -1.76 |
| 30.06.2021 | 30.06.2020 | ||
| EPRA earnings (€ thousands) | A | 6,633 | 5,517 |
| Number of shares entitled to dividend | B | 5,078,525 | 5,078,525 |
| EPRA earnings per share (€) | A/B | 1.31 | 1.09 |
| 30.06.2021 | 30.06.2020 |
|---|---|
| 224,259 | 235,033 |
| -8,840 | -9,363 |
| 244,396 | |
| 5,078,525 | 5,078,525 |
| 45.90 | 48.12 |
| 30.06.2021 | 30.06.2020 |
| 224,259 5,078,525 |
235,033 5,078,525 46.28 |
| 233,099 44.16 |
| 30.06.2021 | 30.06.2020 | |
|---|---|---|
| A | -468 | -710 |
| B A-B |
336 -804 |
129 -839 |
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| 30.06.2021 | 30.06.2020 | |
|---|---|---|
| Net interest charges (€ thousands) A |
801 | 837 |
| Average debt over the period (€ thousands) B |
89,768 | 100,229 |
| Average interest rate of financing (based on 360/365) (%) A/B |
1.7% | 1.7% |
| (€ thousands) | 30.06.2021 | 30.06.2020 | |
|---|---|---|---|
| Result on the disposal of investment properties | A | 398 | 0 |
| Variations in the fair value of investment properties | B | -7,781 | -14,249 |
| Other result on portfolio | C | 53 | -296 |
| Result on portfolio | A+B+C | -7,330 | -14,545 |
| (€ thousands) | 30.06.2021 | 30.06.2020 | |
|---|---|---|---|
| Net result | A | -363 | -8,914 |
| On condition of elimination from the net result (+/-): | |||
| • Variations in the fair value of investment properties | B | 7,781 | 14,249 |
| • Result on the disposal of investment properties | C | -398 | 0 |
| • Variations in the fair value of financial assets and liabilities | D | -336 | -129 |
| • Other result on portfolio | E | -53 | 296 |
| • Non-distributable result subsidiaries | F | 3 | 15 |
| EPRA earnings | A-B-C-D-E-F | 6,633 | 5,517 |
| 30.06.2021 | 30.06.2020 | |
|---|---|---|
| EPRA earnings (€ thousands) A |
6,633 | 5,517 |
| Weighted average number of shares B |
5,078,525 | 5,078,525 |
| EPRA earnings (€/share) A/B |
1.31 | 1.09 |
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| 30.06.2021 | ||||
|---|---|---|---|---|
| (€ thousands) | EPRA NRV | EPRA NTA | EPRA NDV | |
| IFRS equity attributable to the shareholders of the parent company: |
A | 224,259 | 224,259 | 224,259 |
| Diluted NAV of fair value | B | 224,259 | 224,259 | 224,259 |
| To be excluded: • Deferred taxes pertaining to the revaluation of fair value of real estate investments • Fair value of the financial instruments • Intangible fixed assets according to the IFRS Balance Sheet |
C = D+E+F D E F |
1,938 243 1,695 |
1,778 243 1,695 -160 |
- |
| To be added: • Fair value of fixed interest rate debt • Real estate transfer tax |
G = H+I H I |
7,919 7,919 |
- | - |
| NAV | J = B+C+G | 234,116 | 226,037 | 224,259 |
| Diluted number of shares | K | 5,078,525 | 5,078,525 | 5,078,525 |
| NAV (€/share) | J/K | 46.10 | 44.51 | 44.16 |
| 31.12.2020 | ||||
|---|---|---|---|---|
| (€ thousands) | EPRA NRV | EPRA NTA | EPRA NDV | |
| IFRS equity attributable to the shareholders of the parent company: |
A | 235,033 | 235,033 | 235,033 |
| Diluted NAV of fair value | B | 235,033 | 235,033 | 235,033 |
| To be excluded: • Deferred taxes pertaining to the revaluation of fair value of real estate investments • Fair value of the financial instruments • Intangible fixed assets according to the IFRS Balance Sheet |
C = D+E+F D E F |
2,231 200 2,031 |
2,048 200 2,031 -183 |
- |
| To be added: • Fair value of fixed interest rate debt • Real estate transfer tax |
G = H+I H I |
8,243 8,243 |
- | - |
| NAV | J = B+C+G | 245,507 | 237,081 | 235,033 |
| Diluted number of shares | K | 5,078,525 | 5,078,525 | 5,078,525 |
| NAV (€/share) | J/K | 48.34 | 46.68 | 46.28 |
Half-yearly financial report 2021
Regulated information / embargo until 27 July 2021, 6.00 pm Antwerp, 27 July 2021
| (€ thousands) | 30.06.2021 | 31.12.2020 | |
|---|---|---|---|
| Investment properties 13 | A | 316,952 | 330,427 |
| To be excluded: • IFRS 16 right-of-use assets • Project developments intended for lease |
B C |
-207 0 |
-725 0 |
| Real estate available for lease | D = A+B+C | 316.745 | 329,702 |
| To be added: • Investment value of properties available for lease - including property held by right of use |
E | 7,919 | 8,243 |
| Investment value of properties available for lease | F = D+E | 324.664 | 337,945 |
| Annualised gross rental income 13 | G | 17,102 | 17,351 |
| To be excluded: • Property charges 14 |
H | -1,571 | -1,456 |
| Annualised net rental income | I = G+H | 15,532 | 15,895 |
| Adjustments: • Rent expiration of rent free periods or other lease incentives |
J | 313 | 555 |
| Annualised "topped-up" net rental income | K = I+J | 15,845 | 16,450 |
| (in %) | |||
| EPRA NET INITIAL YIELD | I/F | 4.8% | 4.7% |
| EPRA ADJUSTED NET INITIAL YIELD | K/F | 4.9% | 4.9% |
13) Excluding assets held for sale.
14) The perimeter of the property charges to be excluded for the calculation of the EPRA Net Initial Yield is set out in the EPRA Best Practices and does not correspond to the "Property charges" as presented in the consolidated IFRS accounts.
Half-yearly financial report 2021
| Total real estate available for lease | 76,086 | 466 | 16,804 | 2.8% | 4.1% |
|---|---|---|---|---|---|
| Walloon Region | 10,880 | 291 | 1,927 | 15.1% | 10.5% |
| Brussels | 8,901 | 0 | 2,814 | 0.0% | 7.8% |
| Flanders | 56,305 | 175 | 12,063 | 1.5% | 2.1% |
| A | B | A/B | |||
| Leasable space (in m²) |
Estimated rental value (ERV) on vacancy (€ thousands) |
Estimated rental value (ERV) (€ thousands) |
EPRA vacancy rate (in %) |
EPRA vacancy rate (in %) |
|
| EPRA vacancy rate | 30.06.2021 | 31.12.2020 |
| (€ thousands) | 30.06.2021 | 31.12.2020 | |
|---|---|---|---|
| General costs Write-downs on trade receivables Property charges |
A B C |
448 -187 832 |
510 455 1,864 |
| EPRA costs (including direct vacancy costs) | D = A+B+C | 1,094 | 2,829 |
| Direct vacancy costs | E | -97 | -116 |
| EPRA costs (excluding direct vacancy costs) | F = D+E | 997 | 2,713 |
| Rental income less compensations for leasehold estate and long-lease rights |
G | 8,423 | 16,713 |
| (in %) | |||
| EPRA Cost ratio (including direct vacancy costs) | D/G | 13.0% | 16.9% |
| EPRA Cost ratio (excluding direct vacancy costs) | F/G | 11.8% | 16.2% |
About Vastned Belgium Vastned Belgium is a public regulated real estate company (RREC), the shares of which are listed on Euronext Brussels (VASTB). Vastned Belgium invests exclusively in Belgian commercial real estate, more specifically in multi-functional retail properties located in the popular shopping cities of Antwerp, Brussels, Ghent and Bruges. The real estate portfolio also comprises high-end retail parks and retail warehouses. A smaller part of the portfolio is invested in hospitality and residential units.
For more information, please contact Vastned Belgium NV, a public regulated real estate company under Belgian law, Rudi Taelemans – CEO or Sven Bosman – Financial Director, ph. +32 3 361 05 900 // www.vastned.be
Disclaimer This press release contains prospective information, forecasts, views and estimates prepared by Vastned Belgium on the expected future performance of Vastned Belgium and of the markets in which it operates. Readers are held to observe that such prospects are subject to risks and uncertainties which can cause the actual results to differ considerably from those expressed in such prospective statements. Prospective statements such as these can be impacted by significant factors such as changes in the economic situation as well as to factors pertaining to taxation, competition and environment. Vastned Belgium cannot guarantee that the assumptions underlying the prospective information are free of misstatements.
Only the Dutch version is the official version. The English version is a translation of the original Dutch version.
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