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\ 17
Summary of the Consolidated Accounts \
Management Report
COMMENTS ON THE CONSOLIDATED INCOME
STATEMENT – ANALYTICAL FORM
The
rental income
amounts to €195.2 million at 31.12.2013, against
€202.4 million at 31.12.2012. This fall is due mainly to the indemnity
paid by Belfius Bank in compensation for the termination of its lease
on the Livingstone I and II buildings, corresponding to 21 months of
rent (January 2012 to September 2013). This non-recurrent indemnity of
€11.2 million was paid during 2012 and was entirely included in that year’s
income statement. The nine-month indemnity related to 2013 amounts
to €4.8 million.
On a like-for-like basis
, the gross rental revenues rose
by 1.68% over the last 12 months: the positive effect of lease indexations
(+2.05%) and new rentals (+1.92%) was offset by departures (-1.57%) and
renegotiations (-0.72%).
Direct and indirect
operating costs
represent 0.83% of the average value
of the assets under management at 31.12.2013, compared to 0.87% at
31.12.2012.
The
operating result (before result on the portfolio)
stands at €185.6 mil-
lion at 31.12.2013, against €188.8 million one year before.
The
financial result (excluding IAS 39 impact)
decreases from €-59.5 mil-
lion at 31.12.2012 to €-61.2 million at 31.12.2013. The fall in the debt level par-
tially compensates the rise of the interest rates between these two dates.
The
average debt level
stands at €1,685.8 million at 31.12.2013, against
€1,704.7 million at 31.12.2012. On the other hand, the
average interest rate
,
including bank margins, moves from 3.77% to 3.92% as a result of old
debts with low margins maturing, and the early refinancing of credit lines
maturing in 2014 and 2015.
The item “
Revaluation of derivative financial instruments (IAS 39)
” of the
financial result stands at €-13.7 million at the end of 2013, compared to
€-24.3million at the end of 2012. In 2012, the IAS 39 impact was particularly
negative because of the rise in value of the convertible bonds resulting
from the strong fall of the interest rates. The balance sheet item under
shareholders’ equity
“Reserve for the balance of changes in the fair
value of financial instruments”
1
, where changes in the effective value of
optional as well as non-optional financial instruments are recorded, comes
from €-158.6 million at 31.12.2012 to €-126.3 million at 31.12.2013, namely as
a result of the restructuration of the interest rate hedging scheme in 2013.
Taxes
include the corporate income tax due by subsidiaries which do not
benefit from the Sicafi/Bevak, SIIC or FBI tax regime and the tax on non-
deductible costs of a Sicafi/Bevak (primarily the office tax in the Brussels
Capital Region).
The
net current result - Group share
amounts to €104.9 million at
31.12.2013, against €97.5 million at 31.12.2012. Per share, it represents
€5.96 at 31.12.2013 and €6.09 at 31.12.2012. The number of shares entitled
to share in the result of the period increased from 16,015,572 to 17,593,767
between these two dates.
The
result on the portfolio – Group share
falls from€0.6million at 31.12.2012
to €-46.2million at 31.12.2013. In 2013, this item groups two main elements:
the change in the fair value of investment properties and the impairment
on the Pubstone goodwill.
The change in the fair value of investment properties is negative
(€-26.3 million) mainly due to the decrease in value of several office build-
ings which will be subject to a major renovation in the five coming years.
On a like-for-like basis, the change in the fair value of investment proper-
ties stands at -0.78%.
The impairment of the Pubstone goodwill amounts to €-21.0 million at
31.12.2013, against €-7.1 million at 31.12.2012. This is the result of the com-
plete update of the parameters used to calculate the value in use of the
portfolio of cafés/restaurants at the end of the financial year 2013. The
two main parameters concerned and increased are the future renova-
tion expenses, budgeted by reference to the expenses over the past five
years, and the weighted average cost of capital (WACC). This impairment
has no impact on the valuation of the portfolio of cafés/restaurants, which
on the contrary recorded a latent gain of €1.3 million at 31.12.2013.
The
share in the result of associated companies and joint ventures
con-
cerns the stakes of 50% and 51% held by Cofinimmo in FPR Leuze SA/NV
and Cofinéa I SAS respectively. The
minority interests
relate to the man-
datory convertible bonds issued by the subsidiary Cofinimur I SA, as well
as third-party participations in the subsidiaries Silverstone and Pubstone.
The
net result – Group share
is €58.7 million at 31.12.2013, compared
to €98.1 million at 31.12.2012. Per share, these figures stand at €3.34 at
31.12.2013 and €6.12 at 31.12.2012.
1
The item “Reserve for the balance of changes in the fair value of financial instruments” is shown on the balance sheet under the item “Reserve”.