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ANNUAL ACCOUNTS /
Notes to the consolidated accounts
NOTE 25. FINANCE LEASE RECEIVABLES
The Group has concluded finance leases for several buildings,
namely the Courthouse of Antwerp for 36 years. The Group has also
granted financings linked to refitting works to certain tenants. The
average implicit yield of these finance lease contracts amounts to
5.68% for 2014 (2013: 5.75%). During the financial year 2014, condi-
tional rents (indexations) were recorded as revenues of the period
for €0.01 million (2013: €0.04 million).
D. MANAGEMENT OF CAPITAL
As a result of Article 13 of the Royal Decree of 13.07.2014 on RREC, the
public RREC must, where the consolidated debt ratio exceeds 50%
of the consolidated assets, draw up a financial plan accompanied
by an execution schedule, detailing the measures taken to prevent
this debt ratio from exceeding 65% of the consolidated assets. This
financial plan is subject to a special auditor’s report confirming that
the latter has verified the method for drawing up the plan, namely
with regard to its economic bases, and that the figures it contains are
coherent with the public RREC’s accounts. The Annual and Half-Yearly
Financial Reports must justify the way in which the financial plan has
been executed during the period in question and the way in which
the RREC intends to execute the plan in the future.
1. Evolution of the debt ratio
On 31.03.2014, 30.06.2014 and 30.09.2014, the debt ratio amounted
to 47.89%, 48.88% and 47.87% respectively, remaining below the
50% mark. On 31.12.2014, the debt ratio stood at 48.08%. The increase
on 30.06.2014 is mainly the result of the 2013 dividend payment in
June 2014.
2. Debt ratio policy
Cofinimmo’s policy is to maintain a debt ratio close to 50%. It may
repeatedly rise above or fall below the 50% bar without this signalling
a change of policy in one or the other direction.
Every year, at the end of the first six months, Cofinimmo draws up a
mid-term financial plan that includes all the financial commitments
made by the Group. This plan is updated over the course of the year
when a significant new commitment is made. The debt ratio and
its future evolution are recalculated on each edition of this plan. In
this way, Cofinimmo has a permanent prospective view of this key
parameter of the structure of its consolidated balance.
3. Forecast of the debt ratio evolution
Cofinimmo’s updated financial plan shows that Cofinimmo’s consol-
idated debt ratio should not deviate significantly from the 50% level
on December 31st of the next three years. This forecast nevertheless
remains subject to the occurrence of unforeseen events. See also the
chapter “Risks Factors” of this Financial Annual Report.
4. Decision
Cofinimmo’s Board of Directors thus considers that the debt ratio will
not exceed 65% and that, for the moment, in view of the economic
and real estate trends in the segments in which the Group is present,
the investments planned and the expected evolution of its assets, it
is not necessary to take additional measures to those contained in
the financial plan referred to above.
Summary of the derivative financial instruments active during the financial year 2014
(x €1,000)
Option Exercise
price
Floating rate
Notional
amount 2014
Notional
amount 2013
First option
Option
frequency
Swap from fixed rate to floating rate
Period
2012-2016
IRS
3.60% Euribor 3M
+ 3.005%
100,000
100,000
2004-2014 (maturity
15.07.2014)
IRS
5.25% Euribor 3M
+ 0.8%
100,000
100,000
2009-2014 (maturity
25.11.2014)
IRS
5.00% Euribor 3M
+ 2.22%
100,000
100,000
Swap from floating rate to fixed rate
Period
2015
CAP bought
4.25% Euribor 3M
400,000
1,200,000
2015
FLOOR sold
3.00% Euribor 3M
400,000
1,000,000
2008-2018
Cancellable IRS
4.10% Euribor 3M
140,000
140,000 15.10.2011
Annual
2014-2018
IRS
0.51% Euribor 3M
400,000