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This chapter covers the main risks faced by the company, their potential effects on its activity
and the various factors and actions cushioning the potential negative impact of these risks.
The mitigating factors and measures are detailed further on in this Annual Financial Report
under the relevant chapters.
Risk Factors / Market
RISK FACTORS
MARKET
The markets in which the Cofinimmo Group operates are partly influ-
enced by trends in the general economic climate. The office market, in
particular, is influenced by economic trends, whereas the healthcare
real estate sector, the property portfolio of distribution networks and
the Public-Private Partnerships (PPP) are characterised by a stable
rental environment.
DESCRIPTION OF THE RISK
POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
1
Deterioration of the economic climate
in relation to the current situation
1. Negative impact on the demand and
occupancy rate of space, as well as on the
rents at which the properties can be relet.
2. Downwards review of the value of the property
portfolio.
Healthcare real estate and the Public-Private Partnerships
(together 37.3% of the portfolio under management) are
insensitive or not very sensitive to variations of the general
economic climate. (1,2)
Long weighted average term of leases (11.6 years at 31.12.2013).
(1,2)
35.4% of the office tenants belong to the public sector.
Deterioration of the economic climate
in relation to the property portfolio of
distribution networks
The property portfolio of distribution networks
leased to industrial and service companies is
subject to the impact that the general economic
climate may have on these tenant companies.
The impact occurs at the end of the leases, which are long-
term leases. The network functions as contact points for
the tenant’s customers and is therefore necessary for its
commercial activity.
Reconversions of office properties
into residential properties
Uncertainty around the price and the timing of
the sales.
Sale before launch of the reconversion works.
1
The numbered reference in the mitigating factors and measures establishes the link with the potential impact of each risk.
North Galaxy – Brussels
La Cambre/Ter Kameren – Brussels