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14
12
10
8
6
4
12.5
11.6
6.9
2007
2008
2009
2010
2011
2012
2013
PROPERTY RESULTS
The Cofinimmo portfolio records a negative change in fair value of -0.8%
1
over the 12 months of 2013, corresponding to an amount of €-26.3 million.
The change in the portfolio value was negative during the four quarters
of 2013.
This depreciation is made up as follows:
•
the “Office” segment records a negative change in fair value of
€-39.7 million;
•
the segments “Healthcare real estate”, “Property of distribution
networks“ and “Others” record a positive change in fair value of
€9.8 million, €2.6 million and €1.0 million respectively.
The depreciation of the office portfolio comes from buildings under renova-
tion or requiring a significant renovation in the short term. This is the case
for the Livingstone II (works started in 2014), Science/Wetenschap 15-17,
Souverain/Vorst 23-25, Arts/Kunsten 19H, and Guimard 10-12 buildings.
Segment
Changes in
the fair value
over one year
Breakdown
by segment
and location
Offices
-2.54%
45.56%
Antwerp
-0.90%
1.86%
Brussels Centre/North
0.21%
9.48%
Brussels Decentralised
-2.84%
17.68%
Brussels Leopold/Louise District
-7.03%
8.92%
Brussels Periphery & Satellites
-1.59%
4.29%
Other Regions
2.22%
3.33%
Healthcare real estate
0.81%
36.70%
Belgium
0.82%
23.66%
France
0.70%
12.50%
Netherlands
3.05%
0.54%
Property of distribution networks
0.49%
15.92%
Pubstone - Belgium
0.33%
8.13%
Pubstone - Netherlands
0.26%
4.50%
Cofinimur I - France
1.23%
3.28%
Other
1.67%
1.82%
TOTAL PORTFOLIO
-0.78%
100.00%
At the global portfolio level, this depreciation is partially compensated by:
•
the indexation of the leases;
•
a high occupancy rate: 95.43% at 31.12.2013;
•
an average residual lease length which has risen from 6.7 years at the
end of 2004, to 8.4 years at the end of 2006, and then to 11.6 years
2
at
the end of 2013, an outstanding figure among the European real estate
companies.
The average residual length of all leases in force at 31.12.2013 is 11.6 years
2
if each tenant was to exercise his first possible termination option. This
number increases to 12.5 years in case no break option was to be exer-
cised and all tenants were to remain in their rented space until the con-
tractual end of the leases.
One of the key features of Sicafis/Bevaks is risk diversification. The
Cofinimmo portfolio is well-diversified, with the largest property represent-
ing only 6.4% of the consolidated portfolio.
Weighted residual lease length
(in number of years)
Global portfolio – Until the end of the leases
Global portfolio – Until the first possible break option
Offices – Until the first possible break option (before 2005,
Cofinimmo only had offices in its portfolio)
1
Including the impact of the investment expenditures capitalised during the year.
2
For the office portfolio alone, it stands at 6.9years.
Changes in the fair value of investment properties
(x €1,000)
0
-1,000
-2,000
-3,000
-4,000
-5,000
-6,000
-7,000
-8,000
Q1
Q2
Q3
Q4
-6,299
-6,694
-5,420
-7,848
\ 25
Global Portfolio
\ Management Report