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154
ANNUAL ACCOUNTS /
Notes to the consolidated accounts
NOTE 6. RENTAL INCOME AND RENTAL-RELATED EXPENSES
Except in some rare cases, the leases contracted by the Group are subject to indexation.
The Group leases out its properties under operating leases and finance leases. Only revenues from operating leases appear under rental income.
The amount under the item “Writeback of lease payments sold and discounted” represents the difference between the discounted value, at the
beginning and at the end of the year, of the future inflation-linked payments on the lease contracts which receivables have been sold. The writeback
through the income statement allows for a gradual reconstitution of the gross initial value of the concerned buildings at the end of the lease. It is a
recurring and non-cash income item.
The change in the fair value of these buildings is determined by the independent real estate expert and is recorded as profit or loss under the item
“Changes in the fair value of investment properties”.This time, it is a non-recurring itemas it depends on the expert’s assumptions as to futuremarket
conditions.
Total rental income
When a lease is classified as a finance lease, the property is considered to be disposed of and the Group to have an interest in a finance lease
instead.Payments received on the finance leases are split between “capital” and “interests”: the capital element is recorded in the balance sheet and
offset against the Group’s finance lease receivable, and the interest element under the income statement. Hence, only the part of the rents relating
to interests flows through the income statement.
1
The gross potential income is the sum of the real rents received and the estimated rents attributed to unlet spaces.
2
The vacancy is calculated on unlet spaces based on the rental value estimated by the independent real estate experts.
3
Early termination compensations are recognised in full under the income statement.
(x €1,000)
2014
2013
Rental income
195,918
195,191
Rents
197,761
197,455
Gross potential income
1
209,112
207,688
Vacancy
2
-11,351
-10,233
Cost of rent-free periods
-2,933
-2,479
Client incentives
-558
-631
Indemnities for early termination of rental contracts
3
1,648
846
Writeback of lease payments sold and discounted
15,931
25,276
Rental-related expenses
-91
-6
Rents payable on rented premises
-88
-88
Writedowns on trade receivables
-44
-43
Writeback of writedowns on trade receivables
41
125
TOTAL
211,758
220,461
Total income generated from the Group’s properties through operating and finance leases
(x €1,000)
2014
2013
Rental income from operating leases
195,918
195,191
Interest income from finance leases
4,040
3,598
Capital receipts from finance leases
1,652
2,973
TOTAL
201,610
201,762
Total minimum future rents under non-cancellable operating leases and finance leases in effect at December31st
(x €1,000)
2014
2013
Operating lease
2,342,313
2,603,033
Less than one year
208,942
221,103
Between one and five years
531,266
582,939
More than five years
1,602,105
1,798,991
Finance lease
79,636
68,685
Less than one year
1,618
1,236
Between one and five years
21,467
18,827
More than five years
56,551
48,622
TOTAL
2,421,949
2,671,718