Results 1st quarter 2016

Under embargo till 03 May 2016 at 17.40 h Regulated information PRESS RELEASE
RESULTS OF 1ST QUARTER 2016
• Quarterly results −
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Growth of the fair value of the investment properties above € 350 million Growth of the net rental result at € 4.5 million Considerable decrease of the financial costs at 2.70% • Confirmation of the dividend of € 4.00 by the general meeting • Corporate Governance −
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Appointment of a new Chairman and Vice-­‐president of the Board of Directors Appointment of a new statutory auditor Célidée Home Invest Belgium draws attention to the fact that the accounts on 31 March 2016 integrate for the implementation of the new IFRIC 21 standard, which makes the interim results difficult to compare with those of last year. More details regarding this standard are available on page 3 of this press release. 1 Boulevard de la Woluwe 60, boîte 4 B – 1200 Bruxelles The property portfolio The fair value of the investment properties (1) amounts to € 351.4 million on 31 March 2016 and progresses by 1.5% compared to the situation on 31 December 2015 (€ 346.1 million). The valued portfolio (excluding development projects), if all other elements remain unchanged, shows an increase in value of 0.26%. The gross rents increased by the estimated rental value (ERV) of the unoccupied spaces amount to € 20.1 million, crossing the threshold of € 20 million. The breakdown of this portfolio of investment properties, calculated on the basis of the fair value of the investment properties, is represented in the graphs hereafter. The investment properties located in the Brussels-­‐Capital Region currently represent 69% of the portfolio of Home Invest Belgium, those in the Walloon Region 19.1% and those in the Flemish Region 11.9%. Portfolio distribution Distribution by type of property 3.35% 0.56% 13.14% 1.33% 15.77% 1.82% 2.50% 5.94% 73.25% Apartments Furnished apartments Houses Nursing homes Shops Offices 82.34% Proposed development projects Development projects in progress Investment properties in operation Buildings held for sale (1)
This fair value corresponds to the item “Investment properties” of the balance sheet, which comprises the development projects in accordance with IAS 40 and does not take into account the buildings held for sale. PRESS RELEASE 2 The occupancy rate of the investment properties in operation amounts to 92.9% during the first quarter. This rate, slightly lower than the historical occupancy rate, is in line with the company’s forecasts and is the result of the active management of the portfolio of the RREC: −
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on the one hand, the rental of the developed projects takes a while and this has a temporary impact on the occupancy rate. During the first quarter this concerns for example Trône (delivery 30 June 2015, occupancy rate of 94% as at 31 March 2016) and Livingstone (delivery 31 July 2015, occupancy rate of 78% as at 31 March 2016). The impact of this effect is only temporary as these buildings are successfully rented on the market; on the other hand, the active policy of the company to divest part of its portfolio (4% per year) implies that the properties held for sale are no longer put up for rent(2). In the course of this quarter, this is the case for the properties Ryckmans, Mélèzes, Birch House and Sint-­‐Niklaas. Consolidated key figures Important remark The accounts on 31 March 2016 integrate the implementation of the new IFRIC 21 standard, what makes the interim results difficult to compare with the interim results of last year. This new IFRIC 21 standard provides indeed to reflect immediately and in full in the accounts the fiscal levies that are due within the period of presentation of the financial statements. In the case of Home Invest Belgium, this concerns the property tax and its possible reinvoicing, the insurance and the subscription tax. In the past, those amounts were reflected in the accounts prorata temporis. This new standard has a merely temporary negative impact on the property result and the results that are impacted by the property result on the accounts on 31 March 2016, for an amount of € -­‐1.4 million or € -­‐ 0.45 per share. The total value of the shareholders’ equity of Home Invest Belgium on 31 March 2016 amounts to € 197.9 million compared to € 200.2 million on 31 December 2015, or a net value of € 62.87 per share, in comparison with € 63.60 per share at the closing of the financial year. This decrease is the consequence of the transferring from equity to debt of the balance of the dividend that will be payable in May 2016 and the negative net result of € 1.0 million for the first quarter of 2016. The debt ratio remains stable compared to the situation as at 31 December 2015 (42.85% on 31 March 2016 compared to 42.52% on 31 December 2015). (2)
This does not imply that these buildings are treated for accounting purposes as properties held for sale as these properties are not sold immediately as a whole. PRESS RELEASE 3 As from 1/1/2016 to As from 1/1/2015 to 31/03/2016 31/03/2015 MAIN RESULTS (IN €) (1) (2) Net rental result 4 517 385 4 244 664 Property result 2 960 476 4 060 608 Operating result before portfolio result 1 437 811 2 615 093 16 442 328 840 -­‐123 464 3 532 241 -­‐776 726 -­‐1 011 018 -­‐ Change in fair value of financial assets and liabilities (3) -­‐1 565 670 -­‐39 773 Net result -­‐1 024 941 5 420 320 -­‐917 919 1 559 240 -­‐0.29 0.50 647 751 1 599 013 0.21 0.51 1 227 889 2 837 744 0.39 0.90 Au 31/03/2016 Au 31/12/2015 62.87 63.60 65.73 65.80 Portfolio result -­‐ Result on sales -­‐ Change in fair value Financial result -­‐ Financial result excluding change in fair value of financial assets and liabilities Net current result (4)
Net current result per share Net current result excluding IAS 39 (4)
Net current result excluding IAS 39 per share Distributable result (4)
Distributable result per share Net value per share (5)
EPRA NAV per share (1)
IAS 34 has not been applied to the accounting information reproduced above. (2)
Figures reviewed by the Auditor but unaudited. (3)
This is the change in fair value for interest rate hedging instruments. (4) The total number of shares entitled to dividends on 31 March 2016 amounts to 3 147 897, after deduction of the 12 912 shares held under auto-­‐control on the same dates. On 31 March 2015, this amounted to 3 043 231. (5)
“EPRA NAV” corresponds to the Net Asset Value adjusted to exclude, among others, the fair value of the hedging financial instruments. In the course of the first quarter of 2016, the net rental result has increased with 6.4% in comparison with the situation a year ago. This increase is a consequence of the contribution to the result of the acquisitions and the in the meantime delivered projects. A direct comparison between the property result (and the results that follow) with these of last year is distorted by the application of the IFRIC 21 standard. Without the application of IFRIC 21 the property result would have amounted € 4.2 million, representing an increase of 2.5% compared to last year. This result is negatively affected by the increase of + 10% of the real estate withholding tax in the Brussels Capital Region. PRESS RELEASE 4 The property costs and the general corporate expenses of the company show a slight decrease compared to 2015 (without the application of IFRIC 21). This has as a consequence that the operating result before the portfolio result increases with 9.4% compared to 2015. The portfolio result is exceptionally slightly negative (€ -­‐0.1 million). This is the result of variations to the valuation of the properties held for sale. The valuation of the portfolio in operation shows rather stable values. The financial result excluding change in fair value of financial assets and liabilities improved considerably (-­‐24%) as a result of the renegotiations carried out in 2015. The average cost of financing amounts to 2.70% during the first quarter (compared to 3.40% for the whole year 2015). The fair value of our hedging instruments is negative € -­‐1.6 million), this being purely latent. The net current result excluding IAS 39 amounts to € 0.65 million compare to € 1.60 million on 31 March 2015. Without the application of the IFRIC 21 standard this result would have been € 2.07 million or € 0.66 per share. The distributable result -­‐ which comprises the distributable capital gains realised during the financial quarter -­‐ goes from € 2.84 million on 31 March 2015 to € 1.23 million on 31 March 2016. Without the application of IFRIC 21, this would have been € 2.65 million or € 0.84 per share, representing a slight decrease compared to the first quarter of 2015 (-­‐6.6%), which was marked by the realisation of an important capital gain. The negative net result is therefore primarily caused by the application of IFRIC 21. Important events of the first quarter of 2016 Acquisitions On February 10, 2016 Home Invest Belgium SA acquired all the shares in HBLC SPRL. The company is redeveloping an old office site located on the rue de la Célidée 29-­‐33 and rue Joseph Schols in 1080 Molenbeek-­‐Saint-­‐Jean. The conditions subsequent to which this acquisition was subject have not been realized, as a consequence of which this acquisition has become final. The site will be the subject of an ambitious redevelopment project, consisting of the creation of a complex of buildings consisting of 96 apartments and a nursery, for a total gross area of 8,995 sqm, according to a draft of the architectural firm A2RC. HBLC has obtained a building permit which makes it possible to start the works as from the moment the premises are vacated (second quarter of 2016). Célidée PRESS RELEASE 5 Project developments for own account The works continued at a normal pace on projects The Horizon (formerly Ariane) and Marcel Thiry, both located in Woluwe-­‐Saint-­‐Lambert. The instruction of the permit applications for the projects Brunfaut (Molenbeek), the parcelling of land MTC2 (Woluwe-­‐Saint-­‐Lambert) and Reine Astrid (Kraainem) continued normally. For this latest project, the municipality of Kraainem issued a permit with conditions on 19 April 2016. Administrative, commercial and technical management Leasing activity continued normally during the quarter, with the conclusion of nearly 80 leases. At Avenue de l'Yser, the deep renovation of the building (16 apartments) renamed ArchView, was completed. The commercialization of the fully refurbished apartments started since the 1st of March and 3 apartments had already found a tenant on 31 March. www.archview.be At Ghlin, the renovation of 20 houses in the Clos Saint-­‐Gery has also been completed and the site welcomed its first occupants. Sales In the course of the first quarter of 2016, Home Invest Belgium proceeded with the sale per unit of some residential assets. These sales allowed to book a distributable capital gain of € 0.6 million. The Horizon (Ariane) ArchView PRESS RELEASE 6 Important events after the closing of the first quarter of 2016 Acquisitions Home Invest Belgium SA has acquired at this date 80 studios, 15 apartments, 1 office space (subject to a long term lease with “Solidariteit voor het Gezin”) and 74 garages in a residential building located in East Flanders at Oudenaarde, Remparden 12, near the city limits and 200 Meters from the Schelde river. Corporate governance During the ordinary general meeting which was held today and with the approval of the FSMA, Mr. Dirk Van den Broeck, as representative of Grant Thornton, was appointed statutory auditor of the company for a period of 3 years as from the end of the general meeting held today to end at the close of the ordinary general meeting of 2019 and his fees were set at € 28 000 annually, subject to VAT and indexed. Furthermore, the general meeting took note that the mandate as an independent director of Mr. Guillaume H. Botermans was due to expire at the end of this meeting. According to the law, after 3 successive mandates as an independent director, Mr. Botermans could not be renewed in that capacity. The Board of directors and the general meeting warmly thank Mr. Botermans for his involvement in the company for 10 years and his important contribution to the long term development of the latter. On proposal of the Board of Directors, Mr. Guillaume Botermans was appointed Honorary President of Home Invest Belgium. The Board of Directors that was convened this day, appointed Mr. Lievin Van Overstraeten Chairman of the Board and Mr. Eric Spiessens (independent director) Vice President of Home Invest Belgium. Lievin Van Overstraeten Guillaume H. Botermans PRESS RELEASE 7 Outlook The Board judges it too soon at the end of this first quarter to express an opinion on the outlook for the current financial year, namely taking into account the uncertainties with regard to the evolution of the interest rates, the overall economic situation or the rhythm of the sales. Based on the analysis of the results of the 1st quarter, the Board of directors, however, confirms its confidence in the growth of the company's results for the year 2016. Different new investment files (both with regard to existing buildings and to development projects) are in an advanced study phase. It is the Board’s opinion that one or another file should become concrete between now and the end of the year. On the other hand, the Board of Directors has currently identified different assets that could generate interesting capital gains for the shareholders, and this, without prejudice to the further growth of the company results. Dividend payment The dividend for 2016 amounts to € 4.00 gross. Given the interim dividend paid in December 2015 for an amount of € 3.75 (coupon No. 19), the balance of € 0.25 (coupon No. 20) is payable as from 13 May 2016 by automatic transfer for registered shareholders and holders of dematerialized shares. Since January 1, 2016, this dividend is subject to a withholding tax of 27%, so that the net dividend will amount to € 3.37 overall. € 4.00 GROSS DIVIDEND PRESS RELEASE 8 For more information Sophie Lambrighs Home Invest Belgium Chief Executive Officer Boulevard de la Woluwe 60, Bte4 Tél: +32.2.740.14.51 B – 1200 Bruxelles www.homeinvestbelgium.be E-­‐mail: [email protected] Nomination for the “ENTREPRENEUR OF THE YEAR AWARDS” Vote for us! Home Invest Belgium has been nominated for the “Entrepreneur of the Year Awards”, category French-­‐speaking Top Investor 2016. The public can vote until May 6th. Please find hereby the link: http://youngtm.previewstage.net/fr/. If you would like to support us, this only takes a few minutes. Home Invest Belgium is a residential public RREC (“GVV/SIR”). Pure player, it makes available for its 1 600 tenants quality residential units backed by a professional management. As at 31 March 2016 the fair value of the property portfolio amounted to € 351.4 million. To date, it consists of 44 sites in operation with a total surface area of ± 151 000 sqm) and 3 development projects (of approximately 400 units). Since its creation in June 1999, Home Invest Belgium is listed on the continuous market of Euronext Brussels [HOMI]. On 31 March 2016 its market capitalisation amounted € 315.7 million. PRESS RELEASE 9