Befimmo : Financial Statements 2015

152

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

TABLE OF CONTENTS

153 CONSOLIDATED ACCOUNTS

153Consolidated statement of total comprehensive income

154Consolidated statement of financial position

155Consolidated cash flow statement

156Consolidated statement of changes in equity

157Notes to the consolidated financial statements

1571. General business information

1582. Significant accounting policies

1653. Significant accounting judgments and main sources of uncertainty regarding estimates

1664. Segment information

1685. Rental income

1696. Charges linked to letting

1707. Real-estate charges and recovery of real-estate charges

1718. Rental charges and taxes normally paid by tenants

on let properties 171 9. Corporate overheads

17110. Other operating income and charges

17211. Gains or losses on disposals of investment properties

17212. Changes in fair value of investment properties

17213. Financial result

17314. Income taxes

17315. Result per share

17416. Goodwill

17517. Investment properties and assets held for sale

17618. Other property, plant and equipment

17619. Non-current and current financial assets

17620. Finance lease receivables

17721. Trade receivables

17722. Tax receivables and other current assets

17723. Cash and cash equivalents

17724. Deferred charges and accrued income

17825. Capital and reserves

17826. Current and non-current financial debts

17927. Other non-current and current financial liabilities

18028. Provisions

18029. Trade debts and other current debts

18030. Other current liabilities

18031. Accrued charges and deferred income

18132. Quantitative description of the principal risks of the financial assets and liabilities

186 33. Employee benefits

18834. Changes in fair value of investment properties: information in accordance with IFRS 13

191 35. Commitments

19336. Related-party transactions

194Statutory Auditor's report

196 STATUTORY ACCOUNTS

196Statutory statement of total comprehensive income

197Statutory statement of financial position

198Note on statutory shareholders' equity

BEFIMMO - ANNUAL FINANCIAL REPORT 2015 153

CONSOLIDATED STATEMENT OF TOTAL
COMPREHENSIVE INCOME
(IN € THOUSAND)	G4-EC1
		Notes	31.12.15		31.12.14
I.	(+) Rental income	5	140 063		139 690
III.	(+/-) Charges linked to letting	6	- 553		- 995
NET RENTAL RESULT		139 510		138 695
IV.	(+) Recovery of property charges	7	7 486		11 525
V.	(+) Recovery of rental charges and taxes normally paid by tenants on let properties	8	29 188		26 309
VII.	(-) Rental charges and taxes normally paid by tenants on let properties	8	-28 009		-25 834
VIII.	(+/-) Other revenue and charges for letting		646		224
PROPERTY RESULT		148 820		150 919
IX.	(-) Technical costs	7	-9 787		-14 300
X.	(-) Commercial costs	7	- 911		-1 092
XI.	(-) Charges and taxes on unlet properties	7	-5 235		-3 586
XII.	(-) Property management costs	7	-2 494		-2 828
XIII.	(-) Other property charges	7	-3 691		-5 923
	(+/-) Property charges		-22 118		-27 729
PROPERTY OPERATING RESULT		126 702		123 189
XIV.	(-) Corporate overheads	9	-9 930		-11 110
XV.	(+/-) Other operating income and charges	10	-1 675		1 289
OPERATING RESULT BEFORE RESULT ON PORTFOLIO		115 098		113 369
XVI.	(+/-) Gains and losses on disposals of investment properties	11	967		632
XVIII.	(+/-) Changes in fair value of investment properties	12	10 984		9 278
OPERATING RESULT		127 048		123 280
XX.	(+) Financial income	13	1 066		128
XXI.	(-) Net interest charges	13	-25 288		-25 574
XXII.	(-) Other financial charges	13	-3 415		-2 657
XXIII.	(+/-) Changes in fair value of financial assets and liabilities	13	- 25		-25 194
	(+/-) Financial result		-27 662		-53 298
PRE-TAX RESULT		99 386		69 982
XXV.	(-) Corporation tax	14	-1 459		-1 119
	(+/-) Taxes		-1 459		-1 119
NET RESULT	15	97 927		68 863
BASIC NET RESULT AND DILUTED (in €/share)		4.41		3.19
Other comprehensive income - actuarial gains and losses - non-recyclable	33	131		- 530
TOTAL COMPREHENSIVE INCOME		98 058		68 333

154		FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF
FINANCIAL POSITION	(IN € THOUSAND)
G4-9
ASSETS	Notes		31.12.15		31.12.14
I.	Non-current assets			2 459 828		2 322 040
A.	Goodwill	16		14 552		14 808
C.	Investment properties	17		2 387 806		2 283 268
D.	Other property, plant and equipment	18		997		709
E.	Non-current financial assets	19		54 809		21 461
F.	Finance lease receivables	20		1 664		1 794
II.	Current assets			40 406		31 891
A.	Properties held for sale	17		484		1 967
B.	Current financial assets	19		1 814		1 740
C.	Finance lease receivables	20		131		128
D.	Trade receivables	21		21 226		20 529
E.	Tax receivables and other current assets	22		12 996		3 562
F.	Cash and cash equivalents	23		215		82
G.	Deferred charges and accrued income	24		3 540		3 883
TOTAL ASSETS			2 500 234		2 353 931
SHAREHOLDERS' EQUITY AND LIABILITIES	Notes		31.12.15		31.12.14
TOTAL SHAREHOLDERS' EQUITY			1 265 295		1 195 448
I.	Equity attributable to shareholders of the parent company			1 265 295		1 195 448
A.	Capital	25		323 661		319 066
B.	Share premium account	25		702 548		688 688
C.	Reserves	25		198 497		175 070
D.	Net result for the fiscal year1			40 589		12 624
LIABILITIES			1 234 939		1 158 483
I.	Non-current liabilities			674 530		557 623
B.	Non-current financial debts	26		659 360		534 261
	a. Credit institution			209 080		175 880
	c. Other			450 280		358 381
	Bond issues			161 910		161 842
	EUPP			103 813		30 000
	USPP			182 809		164 579
	Guarantees received			1 749		1 960
C.	Other non-current financial liabilities	27		15 169		23 362
II.	Current liabilities			560 410		600 859
A.	Provisions	28		2 239		2 854
B.	Current financial debts	26		464 547		514 301
	a. Credit institution			70 797		30 763
	c. Other			393 750		483 538
	Bond issues			-		110 038
	Commercial papers			393 750		373 500
C.	Other current financial liabilities	27		-		161
D.	Trade debts and other current debts	29		56 483		57 277
E.	Other current liabilities	30		4 920		4 607
F.	Accrued charges and deferred income	31		32 221		21 659
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES			2 500 234		2 353 931

1.The difference between the "Net result for the fiscal year" of the Consolidated statement of financial position and the "Net result" of the Consolidated statement of total comprehensive income represents the interim dividend.

BEFIMMO - ANNUAL FINANCIAL REPORT 2015 155

CONSOLIDATED CASH FLOW

STATEMENT (IN € THOUSAND)

	31.12.15	31.12.14
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR	82	1 524
Operating activities (+/-)
Net result for the period	97 927	68 863
Result on disposal of investment properties	- 967	- 632
Financial result (excl. changes in fair value of financial assets and liabilities)	27 637	28 104
Taxes	1 459	1 119
Items with no effect on cash flow to be extracted from earnings
Fair value adjustment for investment properties (+/-)	-10 984	-9 278
Fair value adjustment on non-current financial assets/liabilities booked to earnings (+/-)	25	25 194
Loss of (gain in) value on trade receivables (+/-)	- 50	451
Goodwill impairment	138	-
Amortisation / Loss of (gain in) value on property, plant and equipment (+/-)	374	782
Adjustments of provisions and of the pension liabilities without treasury impact (+/-)	- 484	-2 680
Taxes paid	-1 416	-1 124
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL REQUIREMENTS	113 660	110 798
Change in assets items	-8 233	-2 534
Change in liabilities items	9 699	-13 408
CHANGE IN WORKING CAPITAL REQUIREMENTS	1 466	-15 942
CASH FLOW FROM OPERATING ACTIVITIES	115 126	94 855
Investments (-) / Disposals (+)
Investment properties
Investments	-29 453	-65 806
Disposals	7 036	6 272
Acquisition investment property Rue aux Choux 35 (amount in cash)	-	-4 444
Acquisition of the Gateway project	-68 461	-
Other property, plant and equipment	- 662	- 744
CASH FLOW FROM INVESTMENT ACTIVITIES	-91 540	-64 722
Financing (+/-)
Increase (+)/Decrease (-) in financial debts	93 142	18 702
European private bond placements	74 000	30 000
Reimbursement retail bond December 2011	-110 000	-
Interest paid	-27 397	-30 513
Hedging instruments and other financial assets	-24 986	- 493
Final dividend Befimmo of the 2013 fiscal year	-	-17 227
Optional interim dividend of the 2014 fiscal year	-	-31 528
Final dividend Befimmo of the 2014 fiscal year	-19 039	-
Optional interim dividend of the 2015 fiscal year	-38 428	-
Purchase of own shares within the framework of the BE-REIT status change¹	-	- 413
Sale of own shares	29 711	-
Costs for capital increase (-)	- 456	- 103
CASH FLOW FROM FINANCING ACTIVITIES	-23 453	-31 575
NET CHANGE IN CASH AND CASH EQUIVALENTS	132	-1 442
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	215	82

With a view to establishing a consolidated cash flow statement in line with the income statement and with industry practice, the Company has decided to book cash flows related to interest payments under "Cash flow from financing activities". The consolidated cash flow statement as at 31 December 2014 is presented taking into account this reclassification, namely by reclassifying the sum of -€31.0 million under "Cash flow from financing activities", from "Cash flow from operating activities" (€28.1 million) and "Cash flow from investment activities" (€2.9 million). Before reclassification, these headings amounted to -€0.5 million, +€66.7 million and -€67.6 million respectively

1.Change of status in a public BE-REIT (SIR/GVV) approved by the Extraordinary General Meeting of shareholders on 21 October 2014.

156		FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IN € THOUSAND)

		Share		Net result of	Total
		premium		the fiscal	shareholders'
	Capital	account	Reserves	year	equity
EQUITY AS AT 31.12.13	310 293	662 080	170 252	22 989	1 165 614
Appropriation of the result	-	-	22 989	-22 989	-
Dividend distributed	-	-	-17 227	-	-17 227
Befimmo 2013 final dividend	-	-	-17 227	-	-17 227
Purchase of own shares within the framework of	-	-	- 413	-	- 413
the BE-REIT status change¹
Capital increase linked to the contribution in kind of	2 638	8 057	-	-	10 695
the Rue aux Choux 35 building
Interim dividend	6 135	18 551	-	-56 240	-31 554	2
Befimmo 2014 interim dividend	-	-	-	-56 240	-56 240
Capital increase	6 135	18 551	-	-	24 686
Total comprehensive income	-	-	- 530	68 863	68 333
EQUITY AS AT 31.12.14	319 066	688 688	175 070	12 624	1 195 448
Appropriation of the result	-	-	12 624	-12 624	-
Dividend distributed	-	-	-19 039	-	-19 039
Befimmo 2014 final dividend	-	-	-19 039	-	-19 039
Private placement of own shares of	- 403	-	29 711	-	29 308
30 November 2015
Interim dividend	4 998	13 859	-	-57 338	-38 481	3
Befimmo 2015 interim dividend	-	-	-	-57 338	-57 338
Capital increase	4 998	13 859	-	-	18 857
Total comprehensive income	-	-	131	97 927	98 058
EQUITY AS AT 31.12.15	323 661	702 548	198 497	40 589	1 265 295

1.Change of status in a public BE-REIT (SIR/GVV) approved by the Extraordinary General Meeting of shareholders on 21 October 2014.

2.The amount of -€31,544 thousand is the sum of the portion of the interim dividend paid in cash plus the withholding tax on the whole of the interim dividend (paid in cash or as a contribution to Befimmo's capital).

3.The amount of -€38,481 thousand is the sum of the portion of the interim dividend paid in cash plus the withholding tax on the whole of the interim dividend (paid in cash or as a contribution to Befimmo's capital).