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Notes to the Consolidated Accounts
\ Annual Accounts
1
Including goodwill.
2
As the value in use is greater than the net book value, the net book value is presented here.
3
Including the fair value of buildings which receivables were sold, which stands at k€421,574.
residual value is calculated. The disposal price of the properties and the
residual value are based on the average value per square meter of the
portfolio determined by the expert on 31.12.2013, plus a 20% margin as
from the fourth year, and indexed. This margin is based on the realised
gains observed on the sale of cafés/restaurants since the acquisition of
the Pubstone portfolio. The disposal of cafés/restaurants realised at mar-
ket conditions similar to the asumptions taken into account for the calcu-
lation of the value in use, i.e. that only the cafés/restaurants vacated by AB
InBev are sold, showed a 30% gain versus the last value of the real estate
expert. Out of caution, no margin is taken into account during the first
three years and the 20% margin taken into account afterwards is lower
than the average margin observed since the acquisition of the portfolio.
The indexation considered for these cash flows stands at 2% per year.
The discount rate used amounts to 6.50%.
Assumptions used in the calculation of the value in use
of Cofinimmo Investissements et Services
A projection of future net cash flows was drawn up over 27 years. The
assumption adopted is the renewal of all the leases during a 27-year
period from the acquisition date.
The cash flow comprises the present indexed rent up to the date of the
first renewal of the lease. After this date, the cash flow considered is the
indexed allowable rent. Cash expenditures foreseen in the buildings’ ren-
ovation plan are also taken into account. Allowable rents are rents esti-
mated by the expert, stated in his portfolio valuation at 31.12.2013, which
are considered sustainable in the long term in terms of the profitability of
the activity of the operating tenant.
At the 28th year, a residual value is calculated per property.
The indexation considered for these cash flows stands at 2% per year.
The discount rate used amounts to 6.50%.
NOTE 20.
INVESTMENT PROPERTIES
(x €1,000)
2013
2012
Properties available for lease
3,199,030
3,156,893
Development projects
130,533
131,857
Assets held for own use
9,146
9,150
TOTAL
3,338,709
3
3,297,900
The fair value of the portfolio, as determined by the independent experts, stands at k€3,347,009 at 31.12.2013. It includes investment properties for
k€3,338,709 and assets held for sale for k€8,300.
(x €1,000)
Building group
Goodwill
Net book value
1
Value in use
Impairment
Pubstone Belgium
85,777
358,019
339,020
-19,000
Pubstone Netherlands
37,650
188,300
186,300
-2,000
CIS France
26,929
247,090
247,090
2
TOTAL
150,356
793,410
772,410
-21,000
Sensitivity analysis of the value in use when the main variables of the impairment test vary
Change in the value in use (%)
Building group
Changes in inflation
Changes in discount rate
Changes in margin
+0.50%
-0.50%
+0.50%
-0.50%
+5.00%
-5.00%
Pubstone Belgium
6.27%
-5.78%
-5.95%
6.52%
1.69%
-1.69%
Pubstone Netherlands
6.29%
-5.80%
-5.96%
6.53%
1.50%
-1.50%
CIS France
6.72%
-6.14%
-5.90%
6.49%
/
/
Sensitivity analysis of the impairment when the main variables of the impairment test vary
Impairment (x €1,000)
Building group
Impairment
booked
Changes in inflation
Changes in discount rate
Changes in margin
+0.50%
-0.50%
+0.50%
-0.50%
+5.00%
-5.00%
Pubstone Belgium
-19,000
0
-38,518
-39,114
0
-13,188
-24,669
Pubstone Netherlands
-2,000
0
-12,558
-12,869
0
0
-4,538
CIS France
0
0
-957
-332
0
/
/