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EXIT TAX
Corporate tax at a reduced rate of 16.995% due by a company when
applying for the RREC status on their unrealised gains and their
tax-exempt reserves, or due by a company merging or demerging
with an RREC. The unrealised gains are equal to the difference
between the value of the property assets – after deduction of costs,
i.e. after deduction of registration rights (of 10% or 12.5% in Belgium) or,
if applicable, VAT – and their tax value.
FAIR VALUE
Disposal value (see this term) of investment properties according to
the IAS/IFRS accounting principles, i.e. after deduction of transaction
costs, as determined by real estate experts.
FBI (FISCALE BELEGGINGSINSTELLING)
Dutch fiscal status, comparable to the RREC status.
FINANCIAL RATING
Ratings are awarded by specialised agencies (Standard & Poor’s for
Cofinimmo) as an estimate of the short or long term financial sound-
ness of a company. These ratings influence the interest rate at which
a company can raise financing.
FLOOR
A FLOOR is an interest-rate option. The buyer of a FLOOR buys the
right to benefit from a minimum interest rate for a specific period. The
buyer only exercises this right if the actual short-term rate falls below
the FLOOR’s minimum interest rate. The seller of a FLOOR sells the right
to benefit from a minimum interest rate for a specific period and will
thus have to pay this rate to the buyer, even if it is higher than the
market rate. By selling a FLOOR, Cofinimmo receives a premium paid
directly by the buyer that partially or entirely finances the premium
paid for buying a CAP.
FREE FLOAT
Percentage of shares held by the public. According to the Euronext
and EPRA definitions, this concerns all shareholders who individually
own less than 5% of the total number of shares.
FREE FLOAT ZONE
The tranche in which the free float is situated according to the
Euronext calculation.
FSMA (FINANCIAL SERVICES AND MARKETS AUTHORITY)
The autonomous regulatory authority governing financial markets in
Belgium.
GPR250 (GLOBAL PROPERTY RESEARCH 250)
Stock exchange index of the 250 largest listed real estate companies
worldwide.
GRI (GLOBAL REPORTING INITIATIVE)
International non-profit organisation whose mission is to make
sustainability reporting standard practice for all businesses and
organisations. Its framework is a reporting system that provides
measures and methods for measuring and reporting impacts and
performance related to sustainable development.
(INITIAL) GROSS RENTAL YIELD
The ratio between the (initial) rent of an acquired asset and its acqui-
sition value, transaction costs not deducted.
IAS / IFRS (IAS, INTERNATIONAL ACCOUNTING STANDARDS/
IFRS, INTERNATIONAL FINANCIAL REPORTING STANDARDS)
The international accounting standards drawn up by the International
Accounting Standards Board (IASB), for the preparation of financial
statements.
IAS 39
IAS 39 is an IAS/IFRS standard that sets out the way in which a
company has to classify and evaluate its financial instruments in
its balance sheet. It requires that all derivatives be booked on the
balance sheet at their fair value, i.e. their market value at closing date.
IBGE (INSTITUT BRUXELLOIS POUR LA GESTION DE
L’ENVIRONNEMENT)/BIM (BRUSSELS INSTITUUT VOOR
MILIEUBEHEER)
Brussels Capital Region environment and energy authority (www.
ibgebim.be).
INSIDER TRADING
Insider trading refers to the infraction committed by an individual who
takes advantage of information obtained through his/her professional
occupancy in order to speculate on stock market developments (see
Article 25 of the Law of 02.08.2002).
INVESTMENT GRADE
Investment grades are ratings given by rating agencies from AAA to
BBB- based on the Standard & Poor’s scale, indicating the company’s
level of risk.
INVESTMENT VALUE
Value of the portfolio as established by the independent real estate
expert, of which transaction costs are not deducted.
IRS (INTEREST RATE SWAP)
An IRS is a forward agreement on interest rates, unlike a CAP or a
FLOOR, which are options on an interest rate. With an IRS, Cofinimmo
exchanges a floating interest rate against a fixed interest rate or vice
versa.
K-LEVEL
Global thermal insulation level of a building, which characterises the
thermal quality of the building’s shell.
LAW OF 12.05.2014
Law relating to Regulated Real Estate Companies (RREC).
LONG LEASE RIGHT
A temporary real right which consists in having full use of a property
belonging to another party, in return for making an annual payment to
the owner in recognition of his right of ownership. Under Belgian law,
a long lease may be concluded for a period of not less than 27 years
and not more than 99 years.
MCB (MANDATORY CONVERTIBLE BONDS)
Mandatory Convertible Bonds (MCB) are debt instruments for which
the debtor has the possibility to reimburse his loan at term with
shares.
MSCI (MORGAN STANLEY CAPITAL INTERNATIONAL)
Stock market index launched by Morgan Stanley Capital International
gathering listed companies worldwide.
NET CURRENT CASH FLOW
Net current result (Group share) before the result on the portfolio
plus (+) contributions to depreciations, value reductions on commer-
cial loans receivable and constitutions and writebacks of provisions
less (-) other non-cash items such as writebacks of lease payments
sold and discounted, positive and negative changes in the fair value
of financial instruments and the spreading of benefits and conces-
sions granted to tenants.
NET CURRENT RESULT
Operating result plus (+) financial result (financial income - financial
charges), minus (-) income taxes.
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