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DESCRIPTION OF THE RISK
POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
Changes to town-planning or
environmental legislation
1. Reduction in the fair value of the
property.
2. Increase in the costs to be incurred to
be able to operate a property.
3. Unfavourable effect on the capacity of
the Group to operate a property.
Active energy performance and environmental
policy for the offices, anticipating the legislation
as far as possible.
Changes to the social security system
for healthcare real estate: reduction
in social security subsidies to the
operators not offset by an increase
in the prices paid by residents or by
the intervention of private insurers. In
Belgium, since 01.07.2014, transfer of
responsibilities in terms of healthcare
and care of elderly people from the
Federal level to the Communities’ level.
Impact on the solvency of healthcare real
estate operators.
Annual solvency analysis of the operators on
the basis of regular financial reporting.
Monitoring of the regulatory trends.
Legal proceedings and arbitration
against the company
Negative impact on the result of the
period and possibly on the company's
image and share price.
Control of all in-house factors that could
negatively influence the poor execution of a
contractual obligation.
Professionalism of the teams ensuring rigorous
compliance with the obligations.
Hidden liabilities resulting from mergers,
demergers and contributions
Negative impact on the net asset value,
fall in results.
Due diligence: appropriate technical,
administrative, legal, accounting and tax audits
when acquiring property companies and
assets.
Declarations and guarantees required from
sellers.
The exit tax is calculated by taking into
account the provisions of the circular
CI.RH.423/567.729 dated 23.12.2004,
which interpretation or practical
application may be modified at any time.
The “real value” of a property as defined
in that circular is calculated after
deduction of registration duties or VAT;
this “real value” differs from (and can
therefore be lower than) the property’s
fair value as stated in the IFRS balance
sheet of the RREC.
Increase of the basis on which the exit
tax is calculated.
The Group considers that it complies in all
respects with the provisions of the circular
concerning the calculation of the exit taxes for
which it is liable.
Interests on loans/rental income
received in excess of the threshold fixed
by the RREC legislation
Non-compliance with legislation.
Updating of a five-year financial plan.
1
See also the chapter “Management of financial resources” of this Annual Financial
Report.
Financial management
1
Cofinimmo’s financial policy aims to optimise the financing cost and to limit the Group’s liquidity risk and counterparty risk.
DESCRIPTION OF THE RISK
POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
Financial and banking markets
unfavourable to real estate and/
or to Cofinimmo
1. Access to credit impeded and
more costly.
2. Reduced liquidity.
Rigorous financial policy (1, 2):
•
diversification of financing sources between the banking
market (50.1%) and various segments of the capital market
(49.9%);
•
stable, well-spread banking pool;
•
well-balanced maturity spreads over time. Full cover of the
treasury bills programme. (1)
Sufficient volume of undrawn portions of confirmed credit lines
to cover medium-term operational/acquisition/construction
expenditure and short-term refinancing. (1, 2)
Insolvency of financial or
banking counterparties
Negative impact on the results.
Diversified and limited number of banking counterparties with
good financial ratings.
5