Cofinimmo - Annual Financial Report 2014

ISO 14001:2004 specifies the requirements of an Environmental Management

System enabling an organisation to develop and implement a policy and

objectives that take into account legal requirements and other obligations to

which the organisation has subscribed.

Financial and other debts divided by total assets on the consolidated balance

sheet.

Property and operational

management

Cofinimmo continues to manage all of its buildings internally, in

order to ensure a continuous relationship with clients. Only the

Asset and Property Management responsibilities for the insur-

ance agencies leased to the Covéa Group in France (3.6% of rents

received) are subcontracted to the real estate company Atland

REIM.

Across all of the investment segments, the strategy is imple-

mented thanks to the expertise of in-house Project and Property

Management teams, which work exclusively for the tenant clients.

This rigorous management has led to Cofinimmo being awarded

the ISO 14001:2004

certification for its entire self-managed office

portfolio.

The company also has its own letting, legal, accounting, financial,

human resources and communication services. All these activities

are based on an SAP integrated IT system and a quality control and

internal audit division.

Responsible portfolio and

sustainable development

Cofinimmo strives to integrate both social and environmental

elements into its overall strategy. Beyond its mere legal obligations,

Cofinimmo endeavours to adopt a proactive approach towards

improving its physical environment, in particular by reducing its car-

bon footprint and favouring civil-minded and responsible projects.

As a major player in the property market, Cofinimmo demonstrates

its corporate social responsibility at every level, through its relation-

ships with its clients, suppliers and partners.

Cofinimmo has set up a Sustainability Committee which role is to

propose concrete measures for improving the company’s environ-

mental performance.

For more information, see the chapter “Corporate Social

Responsibility” of this Annual Financial Report and the 2014

Sustainable Development Report, available on our website

www.cofinimmo.com

as from 30.04.2015.

Financial strategy

Financial result

The profitable growth of the Group and the stable, proactive rela-

tionship forged with clients contribute to its financial result, for the

benefit of all stakeholders.

Maintaining a good occupancy rate, reducing the costs of having

vacant premises and investing in quality projects all allow the

Group to achieve reasonably foreseeable operational performances,

which in turn serve to boost its operational cash flow. Furthermore,

Cofinimmo closely monitors the company’s structural costs.

Economic depreciation on buildings is not deducted when calcu-

lating current results. It is included implicitly in the result on the

portfolio since independent real estate experts take into account

in their valuations the costs relating to the age of the buildings and

the date of their next renovation. At a time when market rents are

stagnating, this depreciation has a greater impact on experts’ valu-

ations and, consequently, on Cofinimmo’s result on the portfolio.

In accordance with the principle of the Real Estate Investment Trust

status and the RREC legal regime, Cofinimmo distributes most of

its current results to its shareholders in the form of dividends. The

company has no obligation to distribute a dividend for the financial

year 2014 (see the chapter “Appropriation of company results” of

this Annual Financial Report).

Debt ratio

Although its legal RREC status allows a debt ratio of up to 65%

(debts on total assets), Cofinimmo’s policy, even if the bank agree-

ments authorise a ratio of 60%, consists in keeping its debt ratio

below 50% (see the chapter “Management of financial resources”

of this Annual Financial Report). This choice has not been made by

chance: it takes into account the long remaining lease durations

and the high property yields of its buildings, and is coupled to

cautious interest rate hedging measures.

Coherent financial profile

Highly predictable net

current result

Low risk exposure