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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 6.34% for
2015 (2014: 5.68%). During the financial year 2015, conditional rents
(indexations) were recorded as revenues of the period for 0.01 million
EUR (2014: 0.01 million EUR).
Summary of derivative financial instruments active at 31.12.2015
(x 1,000 EUR)
Option
Period Exercise price
Floating rate 2015 notional
2014 notional
First option Periodicity
of the option
Designated in a hedging relationship
CAP bought
2015
4.25%
3M
0
400,000
FLOOR sold
2015
3.00%
3M
0
400,000
Swap from a floating rate to a fixed rate
Cancellable IRS
2008-2018
4.10%
3M
140,000
140,000
15.10.2011
Annual
Held for trading
Swap from a floating rate to a fixed rate
IRS
2014-2017
0.51%
3M
400,000
400,000
Swap from a fixed rate to a floating rate
IRS
2012-2016
3.60%
3M+3.005%
100,000
100,000
D. MANAGEMENT OF CAPITAL
As a result of Article 13 of the Royal Decree of 13.07.2014 on RRECs, 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
At Au 31.03.2015, 30.06.2015 and 30.09.2015, the debt ratio remained
below the 50% market at 48.44%, 43.48% and 42.41% respectively. On
31.12.2015, the debt ratio stood at 38.62%. The decrease is explained
mainly by the increase in the capital and the decrease in the need for
financing through debt following the divestments in 2015.
2. Debt ratio policy
Cofinimmo’s policy is to maintain a debt ratio close to 45%. It may
repeatedly rise above or fall below the 45% 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 param-
eter 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 45% level
on December 31
st
of the next three years. This forecast nevertheless
remains subject to the occurrence of unforeseen events. See also the
“Risks Factors” chapter 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.
190
ANNUAL ACCOUNTS /
Notes to the consolidated accounts