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EPRA EUROPE
European stock exchange index (excluding Great Britain) of the FTSE
EPRA/NAREIT Global Real Estate. Index composed of stocks representa-
tive of the European listed real estate sector. Created by EPRA.
EX DATE
Date as of which the stock exchange trading takes place without the
right to the payment of the dividend to come (due to the “detachment of
the coupon”, which formerly represented the dividend), i.e. three working
days after the Ordinary General Shareholders’ Meeting.
EXIT TAX
Corporate tax at a reduced rate of 16.995% due by a company when
applying for the RREC status on their unrealised gains and their tax-ex-
empt reserves, or due by a company merging or demerging with a RREC.
The unrealised gains are equal to the difference between the value of the
property assets – after deduction of costs, i.e. after deduction of regis-
tration rights of 10% or 12.5% or, if applicable, VAT - and their tax value.
FAIR VALUE
Disposal value (see this term) of investment properties according to the
IAS/IFRS accounting principles, i.e. after deduction of transaction costs,
as determined by the real estate experts.
FBI (FISCALE BELEGGINGSINSTELLING)
Dutch fiscal status, comparable to the RREC status.
FINANCIAL RATING
Financial ratings given by specialised agencies (Standard & Poor’s in the
case of Cofinimmo), estimating the short- or long-term financial strength
of a company. These ratings influence the rate at which a company can
finance itself.
FLOOR
A FLOOR is an interest rate option. The buyer of a FLOOR buys the right to
benefit from a minimum interest rate for a specific period. He only exer-
cises this right if the actual short-term rate falls below the FLOOR’s min-
imum interest rate. The seller of a FLOOR sells the right to benefit from a
minimum interest rate for a specific period and will thus have to pay this
rate to the buyer, even if it is higher than the market rate. By selling a
FLOOR, Cofinimmo receives a premium paid directly by the buyer which
partially or entirely finances the premium paid for buying a CAP.
FREE FLOAT
Percentage of shares held by the public. According to the Euronext and
EPRA definitions, this concerns all shareholders who individually own
less than 5% of the total number of shares.
FREE FLOAT ZONE
The tranche in which the free float is situated according to the Euronext
calculation method.
FSMA (FINANCIAL SERVICES AND MARKETS AUTHORITY)
The autonomous regulatory authority governing financial and insurance
markets in Belgium.
GPR250 (GLOBAL PROPERTY RESEARCH 250)
Stock exchange index of the 250 largest listed real estate companies
worldwide.
IAS/IFRS (INTERNATIONAL ACCOUNTING STANDARDS/
INTERNATIONAL FINANCIAL REPORTING STANDARDS)
The international accounting standards drawn up by the International
Accounting Standards Board (IASB), for the preparation of financial
statements.
IAS 39
IAS 39 is an IAS/IFRS standard which sets out the way in which a com-
pany has to classify and evaluate its financial instruments in its balance
sheet. It requires that all derivatives be booked in the balance sheet at
their fair value, i.e. their market value at closing date.
IBGE (INSTITUT BRUXELLOIS POUR LA GESTION DE
L’ENVIRONNEMENT)/BIM (BRUSSELS INSTITUUT VOOR
MILIEUBEHEER)
Brussels Capital Region environment and energy authority (www.ibge-
bim.be).
(INITIAL) GROSS RENTAL YIELD
The ratio between the (initial) rent of an acquired asset and its acquisi-
tion value, without deduction of transaction costs.
INSIDER TRADING
Infringement committed by an individual who takes advantage of
information obtained through his/her professional situation in order to
speculate on stock market developments (see Article 25 of the Law of
02.08.2002).
INVESTMENT GRADE
Investment grades are ratings given by rating agencies from AAA to BBB
based on the Standard & Poor’s scale, indicating the company’s risk level.
INVESTMENT VALUE
Value of the portfolio as established by the real estate experts, without
deduction of transaction costs.
IRS (INTEREST RATE SWAP)
An IRS is a forward agreement on interest rates, unlike a CAP or a FLOOR,
which are options on an interest rate. Through an IRS, Cofinimmo swaps a
floating interest rate against a fixed interest rate, or the other way round.
K-LEVEL
Global thermal insulation level of a building, which characterises the ther-
mal quality of the building’s shell.
LAW OF 12.05.2014
Law regarding Regulated Real Estate Companies (RREC).
LONG-LEASE RIGHT
A temporary real right which consists in having full use of a property
belonging to another party, in return for making an annual payment to
the owner in recognition of his right of ownership. Under Belgian Law, a
long lease may be concluded for a period of no less than 27 years and
no more than 99 years.
MARKET CAPITALISATION
Closing stock market price multiplied by the total number of outstanding
shares on that date.
MCB (MANDATORY CONVERTIBLE BONDS)
Mandatory Convertible Bonds (MCB) are debt instruments for which the
debtor has the possibility to reimburse his loan at term with shares.
MSCI (MORGAN STANLEY CAPITAL INTERNATIONAL)
European stock market index launched by Morgan Stanley Capital
International grouping listed companies worldwide.
NET CURRENT CASH FLOW
Net current result (Group share) before the result on the portfolio, plus
(+) contributions to depreciations, writebacks on trade receivables and
(writebacks of) provisions, less (-) other non-cash items such as write-
backs of lease payments sold and discounted, positive and negative
changes in the fair value of financial instruments and the spreading of
rent-free periods and concessions granted to tenants.