CARE PROPERTY INVEST NV/SA Regulated information
9 March 2022 - After trading hours Under embargo until 17h45
Public limited liability company (société anonyme/naamloze vennootschap), Public Regulated Real Estate Company (Société Immobilière Réglementée (SIR) / Gereglementeerde Vastgoedvennootschap (GVV) under Belgian Law
Office: 3 Horstebaan, 2900 Schoten Companies Registration No. 0456.378.070 (LPR Antwerp)(the 'Company')
Press Release
Annual Results
Financial Year 2021
MILESTONES 2021
- Property portfolio was expanded with an amount of €135 million of acquired projects. In addition, 3 projects were acquired under suspensory conditions for an amount of €35 million.
- A capital increase by means of a contribution in kind of the residential care centre with assisted living apartments 'Résidences des Ardennes' located in Attert led to a reinforcement of the equity capital by €42,087,505, in exchange for 1,696,114 new Care Property Invest shares.
- Successful inaugural issue of sustainability bonds for an amount of €32.5 million.
- A capital increase by means of a contribution in kind of 100% of the shares in the company 'Apollo Lier', which contains the residential care centre with assisted living complex 'Dungelhoeff' located in Lier, led to a strengthening of the equity by €26,532,633, in exchange for 1,124,968 new Care Property Invest shares.
- Sustainability reporting was awarded the EPRA sBPR Silver Award and the EPRA sBPR Most Improved Award, and financial reporting was awarded the EPRA BPR Gold Award.
AFTER THE CLOSE OF THE 2021 FINANCIAL YEAR
- Entry onto the Irish healthcare property market.
FINANCIAL HIGHLIGHTS
Key figure | 31 December 2021 | 31 December 2020 | Evolution |
Fair value property portfolio | €986 m | €822 m | +20% |
Market capitalisation | €693 m | €649 m | +7% |
Occupancy rate | 100% | 100% | = |
Debt ratio | 47.06% | 46.31% | +2% |
Cost of borrowed funds | 1.92% | 2.22% | -14% |
Adjusted EPRA earnings | €27.5 m | €23.0 m | +20% |
Adjusted EPRA earnings per share | €1.0576 | €0.9937 | +6% |
Dividend per share (proposal) | €0.87 | €0.80 | +9% |
SHAREHOLDERS
- Proposal to distribute a gross dividend of €0.87 per share (€0.7461 for coupon 14 and €0.1239 for coupon 15) for the entire 2021 financial year, i.e. an increase of 8.75% compared to that of the 2020 financial year. After deduction of the 15% withholding tax, the proposed net dividend amounts to €0.7395 per share (€0.6342 for coupon 14 and €0.1052 for coupon 15).
- The annual general meeting of the Company will be held on 25 May 2022 at 11 a.m. at the registered office, Horstebaan 3, 2900 Schoten.
The Company achieved an EPS of €1.06 and proposes to distribute a
DPS of €0.87.
REGULATED INFORMATION
Published on 9 March 2022 after trading hours
PRESS RELEASE ANNUAL RESULTS FINANCIAL YEAR 2021 for the period from 1 January 2021 to 31 December 2021
AUDITED
The Dutch version as well as the French and English version of this press release annual results financial year 2021 are legally binding. Within the framework of their contractual relationship with the Company, investors can therefore always appeal to the translated versions. Care Property invest, represented by its responsible people, is responsible for the translation and conformity of the Dutch, French and English language versions. However, in case of discrepancies between language versions, the Dutch version always prevails.
HISTORY
1995 - 2021
.1996
Capital increase in cash (IPO - Eurnext Brussels).
7 February 1996
Total amount of capital increase: approx.
€59 million
As of 7 February 1996
10,210 fully paid-up shares
.2012
Initial investment programme 2,000 serviceflats completed.
.2015
Capital increase in cash.
22 June 2015
Total amount of capital increase: approx. €36
million
As of 22 June 2015
13,184,720 fully paid-up shares
.2015
New address: Horstebaan 3, 2900 Schoten..
.1995
Establishment of Serviceflats Invest nv.
Recognition as a Belgian real estate investment fund, on the initiative of the Flemish government with the objective to build and finance 2,000 service flats for PCSW's and social non-profitorganisations in the Flemish and Brussels-Capital Region.
As of 30 October 1995
210 fully paid-up shares
.2000
Innovation award for 'Technology and housing of elderly people'.
.
.2013-2014
Amendments to the articles of association to expand the Company's objective.
.2014
Serviceflats Invest nv becomes
Care Property invest nv.
Share split 1: 1000
As of 24 March 2014
10,210,000 fully paid-up shares
Acquisition of the status of a Public Regulated Real Estate Company (Public RREC).
.2014
Optional dividend
May-June 2014
Total amount of capital increase: approx. €2
million
As of 20 June 2014
10,359,425 fully paid-up shares
.2016
Inclusion in the Bel MID index.
Start of EPRA membership.
. 2017
Capital increase in kind.
15 March 2017
Total amount of capital increase: approx.
€34 million.
As of 15 March 2017
15,028,880 fully paid-up shares.
.2017
Acquisition of first projects in Walloon and Brussels-Capital Regions.
.2019
Capital increase in kind.
3 April 2019
Total amount of capital increase: approx. €16 million.
As of 3 April 2019
20,086,876 fully paid-up shares.
. 2020
Optional dividend
May-June 2020
Total amount of capital increase: approx. €7 million.
As of 19 June 2020
21,918,213 fully paid-up shares.
. 2021
Capital increase in kind.
20 January 2021
Total amount of capital increase: approx. €42 million.
As of 20 January 2021
25,806,148 fully paid-up shares.
. 2021
Capital increase in kind.
17 November 2021
Total amount of capital increase: approx.
€27 million.
As of 17 November 2021
26.931.116 fully paid-up shares.
. 2017
Capital increase in cash.
27 October 2017
Total amount of capital increase: approx.
€70 million
As of 27 October 2017
19,322,845 fully paid-up shares.
.2018
Entry onto the Dutch market.
Acquisition of 100th residential care project.
. 2019
Optional dividend
May-June 2020
Total amount of capital increase: approx. €7 million.
As of 26 June 2019
20,394,746 fully paid-up shares.
.2020
Capital increase in kind.
15 January 2020
Total amount of capital increase: approx. €34 million.
As of 15 January 2020
21,645,122 fully paid-up shares.
.2020
Entry onto the Spanish market.
.2020
Capital increase in cash (ABB).
June 2020
Total amount of capital increase: approx. €60 million.
As of 25 June 2020
24,110,034 fully paid-up shares.
.2022
Entry onto the Irish market.
Care Property Invest nv /
1. Summary of activities during the 2021 financial year
Strategy
Care Property Invest was founded on 30 October 1995. As the first listed property investor in Belgium in
1996, it continued to focus on the growth of the Company and its property portfolio in 2021.
Real estate
The Company acquired approximately €135 million in new investments and signed approximately €35 million in new projects under suspensory conditions. This, combined with the completion of the current developments and the occurrence of an overall increase in the fair value of its portfolio, resulted in a total fair value of the property portfolio as at 31 December 2021 of approximately €986 million(1).
With its entry onto the Spanish market in 2020, Care Property Invest has continued to work on its geographical distribution. Within Europe, Spain is one of the countries where ageing has the greatest
impact. Also in The Netherlands and Belgium, investments were made in new projects during the course of 2021.
Financial
In 2021, Care Property Invest reached the threshold of approximately €43.2 million in rental income, an
increase of approximately 19.42% compared to the previous financial year. As a result of this increase in
rental income, the adjusted EPRA earnings increased from €23.0 million for FY 2020 to €27.5 million for FY 2021, an increase of almost 19.6%. Care Property Invest was therefore able to more than meet its targets and realised adjusted EPRA earnings of €1.0576 per share , which, partly due to the distribution obligation of at least 80% of the statutory adjusted EPRA earnings, will lead to the proposal to increase the dividend by
8.75% (from €0.80 per share for the 2020 financial year to €0.87 per share of the 2021 financial year), and this
despite the increase in the number of shares entitled to dividend as a result of the 2 capital increases that took place in 2021.
Improved transparency of financial reporting
In September 2021, Care Property Invest's reporting efforts have been rewarded for the fifth time in a row with an EPRA BPR Gold Award.
Outlook
The Company aims to continue this growth process in 2022, and aims for a further increase of its results, looking at existing and new markets. For instance, in February 2022 it announced its entry onto the Irish healthcare property market.
The Company expects rental income to increase to at least €53 million by the end of 2022.
An increase in adjusted EPRA earnings to €1.15 per share and an increase in the dividend to be paid from
€0.87 per share to a minimum of €0.94 for financial year 2022 are also expected.
Care Property Invest's ambitions for 2022 and beyond are therefore high.
- (i) The investment properties are included at fair value in the balance sheet in accordance with IAS 40, the finance lease receivables are included at cost in the balance sheet in accordance with IFRS 16.
- The share in % compared to the total property portfolio of the finance lease receivables (IFRS 16) according to the balance sheet values is 22% as at 31 December 2021, the share in % compared to the total property portfolio (IAS 40) according to the balance sheet values is 78% as at 31 December 2021.
-
The value of the finance lease receivables included in the balance sheet as at 31 December 2021 amounts to €201,585,466. The fair value of the finance lease receivables amounts to €267,844,539 as at 31 December 2021.
The fair value of the finance lease receivables is a mandatory clarification (IFRS 16)
/ Care Property Invest nv
8 | Middelkerke (BE) I Assistentiewoningen De Stillle Meers | 9 |
Care Property Invest nv / | / Care Property Invest nv |
2. Strategy: Care building in complete confidence
REAL ESTATE STRATEGY
A growing market
Its current strategy for residential healthcare real estate for senior citizens is based on the progressive ageing of the population which, according to the Federal Planning Bureau, will peak by 2070. Now and in the coming decades, this will lead to an increasing demand for healthcare real estate with social added value. A similar trend also applies to The Netherlands, Spain and Ireland
in terms of population ageing figures.
For more details, we refer to the graphs presented hereafter, which show the demographic evolution in Belgium, the Netherlands, Spain and Ireland.
DEMOGRAPHIC EVOLUTION | 85+ | |
B E LG I A N POPULATION (1) | 66-85 | |
0-65 | ||
+15% |
EXPECTED | +168% in age | |
GROWTH | category 85+ | |
total Belgian population of | +63% in age | |
+15% | ||
category 66-85 | ||
DEMOGRAPHIC EVOLUTION | 85+ | |
D U TC H POPULATION (2) | 65-85 | |
0-64 | ||
+7%
EXPECTED | +206% in age | |
GROWTH | category 85+ | |
total Dutch population of | +38% in age | |
+7% | ||
category 65-85 | ||
The guaranteed demographic evolution in combination with its growth strategy, the implementation of its corporate purpose and the fact that as a RREC it invests for 100% in healthcare real estate, ensures that its share always provides a stable return for its shareholders, and this at a reduced withholding tax rate of 15% (instead of the general rate of 30%).
Care Property Invest spreads its risks by ensuring a good geographic market distribution of its real estate, diversifying between the operators of its real estate and by creating a good balance between public-private and
DEMOGRAPHIC EVOLUTION | 80+ |
S PA N I S H POPULATION (3) | 66-80 |
0-65 | |
+182% | |
+44% | |
+5% | |
-15% |
EXPECTED | +182% in age | |
GROWTH | category 80+ | |
total Spanish population of | +44% in age | |
+5% | ||
category 66-80 | ||
DEMOGRAPHIC EVOLUTION | 85+ | ||||||||||||||
65-85 | |||||||||||||||
I R I S H POPULATION (4) | |||||||||||||||
0-64 | |||||||||||||||
100 | +252% | ||||||||||||||
80 | +76% | ||||||||||||||
60 | +20% | ||||||||||||||
40 | |||||||||||||||
20 | |||||||||||||||
0 | |||||||||||||||
2016 | 2021 | 2026 | 2031 | 2036 | 2041 | 2046 | 2051 | ||||||||
EXPECTED | +252% in age | ||||||||||||||
GROWTH | category 85+ | ||||||||||||||
total Irish population of | +76% in age | ||||||||||||||
+20% | |||||||||||||||
category 65-85 | |||||||||||||||
private partnerships. This was, among other things, also a major motivator for the Company to make its move onto the Dutch healthcare property market in 2018 and also onto the Spanish healthcare property market in 2020. In 2022 the Company will also continue its strategy by investing in the Irish care real estate market.
CUSTOMISED QUALITY REAL ESTATE
The careful selection of new projects for the Company always takes place after a detailed risk analysis with
a well-founded assessment of the investment file by the Executive Committee, subject to positive advice
from the Investment Committee or by the Board of Directors of the Company.
This may involve the Company developing the property itself, or building and funding the construction, but
may also involve refinancing or acquiring existing buildings, with an option of renovation or expansion,
both in the private and the public market.
(1) | Based on data from the Federal Planning Bureau - Report on demographic projections 2017-2070. | ||
(2) | Based on the following data source: 'Projections of population intervals; age group, 2018-2060', CBS - 19 December 2017. | ||
(3) | Based on data from the Organisation for Economic Cooperation and Development (OECD), http://stats.oecd.org. | ||
Genval (BE) I | La résidence du Lac | (4) | Based on data from the Irish Central Statistics Office: 'Projected population, 2016 - 2051', https://www.cso.ie. |
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Care Property Invest NV published this content on 09 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2022 16:51:09 UTC.
