Background Image
Previous Page  9 / 222 Next Page
Information
Show Menu
Previous Page 9 / 222 Next Page
Page Background

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