Annual financial report 2013

\ 19

Summary of the Consolidated Accounts \

Management Report

COMMENTS ON THE CONSOLIDATED BALANCE SHEET

The

goodwill

decreases by €21.0 million as a result of the impairment

recorded on the Pubstone goodwill. This is the result of the complete

update of the parameters used to calculate the value in use of the portfo-

lio of cafés/restaurants at the end of the financial year 2013. The two main

parameters concerned and increased are the future renovation 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 con-

trary recorded a latent gain of €1.3 million at 31.12.2013 (see also Note 19).

The

fair value

of the property portfolio

, as appears from the consolidated

balance sheet, by application of IAS 40, is obtained by deducting transac-

tion costs from the investment value. At 31.12.2013, the fair value stands at

€3,347.0 million, compared to €3,308.6 million at 31.12.2012.

The

investment value

of the property portfolio

, as established by the inde-

pendent real estate experts, is €3,478.9 million at 31.12.2013, compared to

€3,436.1 million at 31.12.2012.

The increase in the

finance lease receivables

is the result of the deliv-

ery, in September 2013, of the Nelson Mandela student housing residence

let to the Université Libre de Bruxelles (ULB - Brussels University), for

€14.2 million.

The item “

Participations in associated companies and joint ventures

”

concerns the stakes of 50% and 51% held by Cofinimmo in FPR Leuze SA/

NV and Cofinéa I SAS respectively.

Equity

was strengthened during the financial year through the sale of

treasury shares and the issue of new shares as part of the optional divi-

dend, for respectively €91.7 million and €43.9 million.

The item “

Minority interests

” includes the mandatory convertible bonds

issued by the subsidiary Cofinimur I SA, as well as the minority interests of

the Silverstone and Pubstone subsidiaries.

Including assets held for own use and development projects.

Bourget 44 – Brussels