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RISK FACTORS
DESCRIPTION OF THE RISK POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
1
Deterioration of the
economic climate in
relation to the current
situation
1. Negative impact on demand and
occupancy rate of space and on rents at
which the properties can be relet.
2. Downwards revision of the value of the
property portfolio.
The healthcare real estate and the Public-Private Partnerships (together
49.1% of the portfolio under management) are insensitive or not very
sensitive to variations of the general economic climate. (1, 2)
Long weighted average duration of leases (10.5 years at 31.12.2015). (1, 2)
22% of the office tenants belong to the public sector.
Deterioration of the
economic climate in
relation to the property
of distribution networks
portofolio
The property of distribution networks leased
to industrial and service companies is subject
to the impact that the general economic
climate may have on these tenant companies.
The impact occurs at the end of the leases, which are long-term leases.
The network functions as contact points for the tenant’s customers and
is, therefore, necessary for its business.
Conversions of office
properties into residential
property
Uncertainty about the price and timing of
sales.
Pre-sale before the launch of the conversion works.
RISK FACTORS
This chapter covers the main risks faced by the company, their potential effects on its activity
and the various factors and actions cushioning the potential negative impact of these risks. The
mitigating factors and measures are detailed further on in this Annual Financial Report under the
relevant chapters.
THE MARKET
The markets in which the Cofinimmo Group operates are partly influ-
enced by trends in the general economic climate. The office market, in
particular, is influenced by economic trends, whereas the healthcare
real estate sector, the portfolio of property of distribution networks and
the Public-Private Partnerships (PPP) are characterised by a stable
rental environment.
1
The numbered reference in the mitigating factors and measures establishes the link with the potential impact of each risk.
2