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(03/05/2004) COFINIMMO : Net current result per share at 31.03.2004: EUR 2.01 in line with forecasts / Net resul
Brussels, 03.05.2004
1. Consolidated accounts at 31.03.2004
The net current result per share at 31.03.2004 stands at EUR 2.01, or 1.8% more than the result at
31.03.2003 (EUR 1.98) but 13.3% higher than for the 4 th quarter of 2003 (EUR 1.78).
Net rents at 31.03.2004 are slightly down (-0.3%) compared with 31.03.2003 but 1.1% up on the 4 th
quarter 2003. The fact is that the slight erosion in the occupancy rate, which slipped back from 94.68%
at 31.12.2003 to 94.00% at 31.03.2004 has been offset by the letting-related indemnities received
(included under other operating income). Given the depressed rental market at present, as witnessed by
the small number of transactions concluded and the decline in market rent levels in certain districts,
the company's commercial teams have focused on enhancing the loyalty of existing customers,
creating reinforced relations with the real estate agents by adapting their commissions in order to
attract new clients, and finally seeking to match rents for marketed properties to rent levels in the
market. The success of this exercise has mitigated the impact of the current climate on occupancy rates
and consequently on the performance of the income statements.
Indirect operating costs (property and corporate) recorded a non-recurrent increase resulting from the
costs (EUR 0.86 million) incurred during the growth and merger operations referred to in our press
releases of 25.02.2004 and 30.04.2004.
There was a significant drop in financial charges at 31.03.2004, by almost 20% compared with the 1 st
quarter of 2003 and by 4% compared with the last quarter of that year. The average interest rate on
borrowings, including bank spreads and costs for hedging instruments, has decreased from 4.04% for
2003 to 3.83% for the 1 st quarter of 2004, while financial debt has moved up a little since 31.12.2003
(+2.03%).
The net result per share (after inclusion of the result on portfolio) at 31.03.2004 stands at EUR 1.88 as
against EUR 1.49 in 2003, an increase of 25.9%. On the basis of an unchanged portfolio, the market
value of the properties held only depreciated fractionally, 0.09% during the 1 st quarter of 2004
compared with falls of 0.25% and 0.77%, respectively, for the 4 th quarter of 2003 and for 2003 as a
whole. The quarterly valuation by the independent external real estate expert indicates that the decline
in value of properties situated in the airport district and the area outside Brussels Centre is tending to
level off, whereas the value of properties in the Brussels CBD (Central Business District) continues to
head upwards. As a consequence, a decrease of EUR 0.13 per share in the portfolio value (unrealised
loss) was recorded, as against a decrease of EUR 0.36 (unrealised loss) during the last quarter of 2003,
and a total decrease of EUR 1.53 for 2003.
The market value of the property portfolio (estimated investment value of the portfolio) comes to
EUR 1,889.41 million * at 31.03.2004 compared with EUR 1,855.66 million at 31.12.2003.
* The liquidation value of the portfolio, after deducting the registration fees from the investment value, is EUR 1,689.84
million.
The net asset value per share amounts to EUR 105.73 at 31.03.2004 as opposed to EUR 103.85 (net of
the dividend for 2003) at 31.12.2003.
The debt ratio (financial and other) to total assets works out at 47.51%, compared with 47.70% at
31.12.2003. The investment capacity is over EUR 104 million.
CONSOLIDATED BALANCE SHEET
| (x 1,000 EUR) | 31.03.2004 | 31.12.2003 | | ASSETS | | | | Intangible fixed assets | 364 | 306 | | Tangible fixed assets | 1,889,924 | 1,856,171 | | Financial assets | 88 | 336 | | Amounts receivable after one year | 163,462 | 159,675 | | Amounts receivable within one year | 22,239 | 23,358 | | Treasury investments | 78 | 78 | | Cash at bank and in hand | 418 | 34 | | Deferred charges and accrued income | 13,609 | 11,745 | | Total assets | 2,090,182 | 2,051,703 | | LIABILITIES | | | | Capital and reserves | 937,25 | 920,623 | | Minority interests | 75,073 | 77,67 | | Provisions for risks and charges | 33,414 | 37,282 | | Amounts payable after one year | 490,627 | 457,735 | | Financial debts | 457,582 | 422,598 | | Other amounts payable | 33,045 | 35,137 | | Amounts payable within one year | 502,407 | 520,834 | | Financial debts | 414,036 | 431,673 | | Other amounts payable | 88,371 | 89,161 | | Accrued charges and deferred income | 51,411 | 37,559 | | Total liabilities | 2,090,182 | 2,051,703 | | Ratio of debt on total Assets | 47.51% | 47.70% |
* The properties are entered in the accounts at their investment value.
CONSOLIDATED INCOME STATEMENT
| (x 1,000 EUR) | 31.03.2004 | 31.03.2003 | | A. NET CURRENT RESULT | | | | Rents | 31,328 | 32,152 | | Taxes and charges not recovered | -337 | -488 | | Other operating income | 757 | 185 | | Net rents | 31,748 | 31,849 | | Direct property operating costs | -2,4 | -2,402 | | Indirect property operating costs | -2,145 | -1,907 | | Property result | 27,203 | 27,54 | | Corporate operating costs | -1,524 | -868 | | Operating result | 25,679 | 26,672 | | Financial income | 2,683 | 2,434 | | Financial charges | -8,511 | -10,62 | | Taxes | -1,035 | 11 | | Net current result | 18,816 | 18,497 | | Minority interests | 978 | 970 | | Group share | 17,838 | 17,527 | | B. RESULT ON THE PORTFOLIO | | | | Realised gain or loss on disposal of properties | 46 | -688 | | Reversal of changes in market value previously recorded on | | 443 | | elements of the portfolio disposed of during the financial year | | | | Variation in the market value of elements of the portfolio, | -1,257 | -4,085 | | net of exit tax | | | | Result on the portfolio | -1,211 | -4,33 | | NET RESULT OF THE PERIOD - group share | 16,627 | 13,197 | | Average number of shares with rights to share in the result for the | 8,864,822 | 8,864,822 | | period* | | | | Average number of shares at end of period* | 8,864,822 | 8,864,822 | | Net current result per share - group share (in EUR) | 2.01 | 1.98 | | Net result per share - group share (in EUR) | 1.88 | 1.49 | | | | | | NET ASSETS PER SHARE (in EUR)* | 31.03.2004 | 31.12.2003 | | Before distribution of the 2003 dividend | | 111.10 | | After distribution of the 2003 dividend | 105.73 | 103.85 |
* calculated before the issue of 702,490 new preference convertible shares following the merger of Belgian Office Properties
with Cofinimmo, decided on 30.04.2004. The minority interests are replaced by these new shares (see our press releases of
25.02.2004 and 30.04.2004).
2. Property portfolio
On 31.03.2004, the consolidated property portfolio comprised 136 properties, with a total rental area
of 821,000m2 above ground, unchanged since 31.12.2003. According to Cofinimmo's strategy, the
overwhelming bulk of this portfolio (98%) is made up of offices, which are chiefly situated in Brussels
(91%).
CHANGES IN THE PORTFOLIO
| (x 1,000,000 EUR) | 31.03.2004 | 31.12.2003 | | Total estimated investment value of the portfolio | 1,889.41 | 1,855.66 | | Projects and development sites | -125.35 | -103.15 | | Total marketable properties | 1,764.05 | 1,752.51 | | Contractual rents | 128.40 | 128.67 | | Yields on marketable properties | 7.28% | 7.34% | | Contractual rents + Estimated rental value on unlet space at the | 136.59 | 135.90 | | valuation date | | | | Yield on the portfolio as if 100% rented | 7.74% | 7.75% | | Occupancy rate on marketable properties* | 94.00% | 94.68% |
* Calculation based on rental income
The occupancy rate, which applies only to properties in a suitable condition for occupation at the date
of calculation, works out at 94%, slightly down on 31.12.2003. The average for the Belgian market is
currently 89.7% (source: Jones Lang LaSalle).
Excluding the sale detailed below, there was no change in the portfolio composition during the 1 st
quarter of 2004, except for the consequences of the proportional consolidation of North Galaxy SA
(+EUR 26.5 million), the inclusion among the marketable buildings of the Collines de Wavre J
property, resulting from the end of the rental guarantee period granted by the project developer, and
the completion of renovation work on the Auderghem 22-28 property.
Besides the share of the North Galaxy property brought into the Cofinimmo portfolio by the
proportional consolidation of North Galaxy SA, the caption Projects and developments in progress
and land still includes the Archimède 25 building currently in redevelopment as well as the properties
Waterloo Office Park (I, J, L) and Prins Boudewijn 24A, whose renovation following the departure of
their sole occupant will be completed during the 2 nd and 3 rd quarters, respectively, of 2004. The
renovation of these 2 properties, priced at over EUR 4 million, was considered vital to the success of
their future marketing prospects.
3. Divestments
On 28.04.2004, Cofinimmo sold the property located on Avenue des Arts 3-4-5 in 1210 Brussels to
the German fund DEKA for EUR 11.67 million giving a gain of EUR 0.22 million compared with the
investment value at 31.12.2003.
Independent and self-managed property company
Focused on offices in Brussels and Antwerp
The largest in Belgium, with a portfolio of 821,000m2 and a market capitalisation of EUR 1.05 billion
COFINIMMO is a SICAFI, similar to US REITs
For further information please contact:
- Laure le Hardy de Beaulieu
Investor Relations Officer
Tel: +32(2) 373 00 09
llehardy@cofinimmo.be
- Séverine Van der Schueren
Corporate Communication Officer
Tel: +32(2) 373 00 04
svanderschueren@cofinimmo.be
www.cofinimmo.com (new website on 17.05.2004)
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