178 / 220
172
/
Annual Accounts /
Notes to the Consolidated Accounts
1
This Swap was concluded to exchange a fixed rate against a floating rate.
2
This Swap will mature on 15.07.2014.
3
This Swap will mature on 25.11.2014.
NOTE 24.
FINANCE LEASE RECEIVABLES
The Group has concluded finance leases for several buildings, namely the
Courthouse of Antwerp for 36 years. The Group has also granted financ-
ings linked to refitting works to certain tenants. The average implicit
yield of these finance lease contracts amounts to 5.75% for 2013 (2012:
5.50%). During the financial year 2013, conditional rents (indexations) were
recorded as revenues of the period for €0.04 million (2012: €0.09 million).
Summary of the derivative financial instruments active during the financial year 2013
(x €1,000)
Option
Exercise price
Floating rate
Notional amount
(x €1,000)
First option Option frequency
Swap from fixed rate to floating rate
Period
2012-2016
1
IRS
3.60% Euribor 3 months
+3.005%
100,000
2004-2014
2
IRS
5.25% Euribor 3 months
+0.80%
100,000
2009-2014
3
IRS
5.00% Euribor 3 months
+2.22%
100,000
Swap from floating rate to fixed rate (cash flow hedging instruments)
Period
2014
CAP bought
4.25% Euribor 3 months
1,200,000
2014
FLOOR sold
3.00% Euribor 3 months
1,000,000
2008-2018
Cancellable IRS
4.10% Euribor 3 months
140,000
15.10.2011
Annual
D. MANAGEMENT OF CAPITAL
As a result of Article 54 of the Royal Decree of 07.12.2010 on Sicafis/Bevaks,
the public Sicafi/Bevak must, where the consolidated debt ratio exceeds
50% of the consolidated assets, draw up a financial plan accompanied by
an execution schedule, detailing the measures taken to prevent this debt
ratio from exceeding 65% of the consolidated assets. This financial plan is
subject to a special auditor’s report confirming that the latter has verified
the method for drawing up the plan, namely with regard to its economic
bases, and that the figures it contains are coherent with the public Sicafi/
Bevak’s accounts. The Annual and Half-Yearly Financial Reports must justify
the way in which the financial plan has been executed during the period
in question and the way in which the Sicafi/Bevak intends to execute the
plan in the future.
1. Evolution of the debt ratio
On 31.03.2013 and 30.06.2013, the debt ratio remained below the 50% mark
at 47.72% and 49.18% respectively. On 31.12.2013, the debt ratio stood at
48.87%. This change over the year is mainly the result of the 2012 dividend
paid in June 2013.
2. Debt ratio policy
Cofinimmo’s policy is to maintain a debt ratio close to 50%. It may repeat-
edly rise above or fall below the 50% bar without this signalling a change of
policy in one or the other direction.
Every year, at the end of the first six months, Cofinimmo draws up a mid-
term financial plan that includes all the financial commitments made by
the Group. This plan is updated over the course of the year when a sig-
nificant new commitment is made. The debt ratio and its future evolution
are recalculated on each edition of this plan. In this way, Cofinimmo has a
permanent prospective view of this key parameter of the structure of its
consolidated balance.
3. Forecast of the debt ratio evolution
Cofinimmo’s financial plan, updated in February 2013, shows that
Cofinimmo’s consolidated debt ratio should not deviate significantly from
the 50% level on December 31st of the next three years. This forecast never-
theless remains subject to the occurrence of unforeseen events. See also
the chapter “Risks Factors” of this Financial Annual Report.
4. Decision
Cofinimmo’s Board of Directors thus considers that the debt ratio will not
exceed 65% and that, for the moment, in view of the economic and real
estate trends in the segments in which the Group is present, the invest-
ments planned and the expected evolution of its assets, it is not neces-
sary to take additional measures to those contained in the financial plan
referred to above.