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ADJUSTED VELOCITY
Velocity multiplied by the free float zone.
BELGIAN CORPORATE GOVERNANCE CODE
Drawn up by the Corporate Governance Commission including the govern-
ance practices and provisions to be met by companies subject to Belgian
Law which shares are listed on a regulated market (the ”2009” code).
BREAK
First option to terminate a lease.
BREEAM (BUILDING RESEARCH ESTABLISHMENT
ENVIRONMENTAL ASSESSMENT METHOD)
Method assessing a building’s environmental efficiency
(www.breeam.org).
CALL OPTION
A right to purchase a specific financial instrument at a preset price and
during a determined period.
CAP
A CAP is an interest-rate option. The buyer of a CAP is paying for the right to
borrow at a maximum interest rate for a specific period. He only exercises
this right if the actual short-term rate exceeds the CAP’s maximum interest
rate. In order to buy a CAP, the buyer pays a premium to the counterparty.
By buying a CAP, Cofinimmo obtains a guaranteed maximum rate. The CAP
therefore hedges against unfavourable rate increases.
CASH POOLING
Management and transfer of cash resources between subsidiaries.
CONTRACTUAL RENTS
Rents as defined contractually in the leases in force at the closing date,
before deduction of rent-free periods or other incentives granted to the
tenants.
DBFM (DESIGN-BUILD-FINANCE-MAINTAIN)
Complete real estate project assignment including the design, construc-
tion, financing and maintenance of a property.
DEALING CODE
Code of Conduct stipulating the rules to be followed by the Directors and
designated persons who wish to trade financial instruments issued by
the company.
DEBT RATIO
Legal ratio calculated according to the Sicafi/Bevak legislation as financial
and other debts divided by total assets.
DERIVATIVES
As a borrower, Cofinimmo wants to hedge against a possible short-term
rise in interest rates. It is possible to hedge this interest rate risk to a lim-
ited extent by using derivatives (the purchase of a CAP, possibly accom-
panied by the sale of a FLOOR; IRS contracts).
DISPOSAL VALUE
Book value of the buildings as used in the IAS/IFRS balance sheet, calcu-
lated by deducting from the investment value a portion of transfer taxes
currently set by the independent experts at 2.5% for assets located in
Belgium. However, for properties with an overall value of less than €2.5
million, the taxes to deduct are the registration taxes of 10% and 12.5%,
depending on the region in which the property is located. For assets
located in France or in the Netherlands, the deducted transfer taxes
amount to respectively 5.4% and 6.0%. This disposal value is used as fair
value in Cofinimmo’s IAS/IFRS financial statements.
DIVIDEND YIELD
Gross dividend divided by the average share price during the year.
DOUBLE NET
So-called “double net” rental contracts (leases) or yields imply that the
maintenance costs are, to a greater or lesser extent, payable by the owner
(lessor). These costs include those for the maintenance of roofs, walls and
façades, technical and electrical installations, surroundings, water supply
and drainage systems. This mainly concerns office properties. Part or all
of these maintenance costs can be charged to the lessee in the special
provisions of the lease.
DUE DILIGENCE
Procedure that provides a full and certified inventory of a company
(accounting, economic, legal and taxation aspects, ...) before a financing
or acquisition operation.
EBIT (EARNINGS BEFORE INTERESTS AND TAXES)
Operating result. Net current result before interest charges and taxes.
EBITDA (EARNINGS BEFORE INTERESTS, TAXES,
DEPRECIATION AND AMORTISATION)
Net result before interest charges and revenues, taxes, depreciation and
amortisation. Under the Sicafi/Bevak legislation, investment properties are
not amortised.
EBITDAR (EARNINGS BEFORE INTERESTS, TAXES,
DEPRECIATION, AMORTISATION AND RENTS)
Net result before interest charges and revenues, taxes, depreciation,
amortisation and rents.
EHPAD (ÉTABLISSEMENT D’HÉBERGEMENT POUR
PERSONNES ÂGEES DÉPENDANTES)
In France, this is the most widespread form of institution for the elderly.
E-LEVEL
Primary energy consumption level of a building, according to the European
legislation.
EPB (ENERGY PERFORMANCE OF A BUILDING)
This index, issued from the European Directive 2002/91/EC, expresses the
quantity of energy required to meet the various needs for the normal use
of a building. It results from a calculation that takes into account the var-
ious factors that influence energy demand (insulation, ventilation, solar
and internal contributions, heating system, etc.).
GLOSSARY
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