2017 Half-Year Financial Report

Financial results in line with the 2017 financial year forecast:

  • Net result from core activities - Group share: 3.25 EUR per share (compared to 2.86 EUR at 30.06.2016)

  • Result on the portfolio - Group share: -0.51 EUR per share (compared to 0.58 EUR at 30.06.2016)

  • Net result - Group share: 3.06 EUR per share (compared to 1.65 EUR at 30.06.2016)

  • Confirmation of the forecasted net result from core activities - Group share for the 2017 financial year: 6.49 EUR per share

  • Confirmation of the forecasted gross dividend for the financial year 2017, payable in 2018: 5.50 EUR per ordinary share

    Solid operational performance:

  • Sustained letting activity: renegotiations and new lettings for nearly 22,000 m², representing 10.1 million EUR in guaranteed gross rental revenues until the first break option1

  • Stable occupancy rate: 94.4 %

  • Particularly long residual lease length: 10.0 years

  • Gross rental revenues up 4.3 % over the last 12 months (+0.03 % on a like-for-like basis)

  • Portfolio value up by 1.7 % over the past six months (-0.2 % on a like-for-like basis)

    Continued investment programme:

  • New investments and commitments in healthcare real estate for 58 million EUR2

  • Investments since the capital increase of May 2015: 381 million EUR, of which 237 million EUR in healthcare real estate2 and 135 million EUR in office buildings

  • Committed investment pipeline over the period 01.07.2017 - 31.12.2019: 228 million EUR, of which 100 million EUR in healthcare real estate and 118 million EUR in office buildings and office reconversions into apartments. The sale of the latter should generate about 100 million EUR.

    Active debt management and capital reinforcement:

  • Renewal of various credit lines for 233 million EUR

  • Average cost of debt : 2.0 % (2.4 % in 2016)

  • Average debt maturity : 5.0 years (4.8 years as at 31.12.2016)

  • Reinvestment of 41 % of the 2016 dividends in new shares (33 million EUR)

▪ Debt ratio: 45.0 % (43.7 % at 31.12.2016)

1 Of which a new lease for 2,490 m², signed after 30.06.2017 - see chapter 'Events after 30.06.2017' of this Half-Year Financial Report.

Table of contents

1. Interim management report

p. 3

1.1. Summary of activities

p. 3

1.2. Consolidated key figures

p. 4

1.3. Portfolio evolution

p. 6

1.4. Financial resources management

p. 13

1.5. Commercial results

p. 17

1.6. Property portfolio

p. 20

1.7. 2017-2019 investment programme

p. 22

1.8. Information on shares and bonds

p. 24

1.9. Corporate governance

p. 28

1.10. Sustainable development and management policy

p. 30

1.11. Risk management

p. 31

1.12. Events after 30.06.2017

p. 34

2. Summary financial statements

p. 35

2.1. Global consolidated result - Royal Decree of 13.07.2014 form

p. 36

2.2. Consolidated income statement - Analytical form

p. 38

2.3. Consolidated balance sheet

p. 42

2.4. Calculation of the consolidated debt ratio

p. 44

2.5. Cash flow statement

p. 45

2.6. Consolidated statement of changes in equity

p. 46

2.7. Notes to the consolidated accounts

p. 49

3. Statement of compliance

p. 69

4. Appendices

p. 71

4.1. Impact IFRS 9, IFRS 15 and IFRS 16 standards

4.2. Real estate experts' report

4.3. Statutory auditor's report

The Alternative Performance Measures (APM) defined by the European Securities and Markets Authority (ESMA) are identified with an asterisk (*) the first time they appear in the body of this press release. Their definition and calculation details are available on Cofinimmo's website (www.cofinimmo.com/investors/reports-and-presentations).

  1. Interim management report

  2. Summary of activities

    During the first half of 2017 Cofinimmo pursued its investments in healthcare real estate, mainly in the Netherlands and Germany. The Group acquired several medical office buildings, a care centre for people suffering from mental disorders and a nursing and care home. Construction works of a care centre for people suffering from severe confusion were delivered as well. In Belgium, reconversion works of an office building into a nursing and care home are nearing completion and a new agreement has been signed for major renovation and extension works on another nursing and care home.

    As for the office segment, active marketing of vacant space resulted into more than 10 million EUR in gross rental revenues being secured (until the first break option for the tenants)1 . In the Brussels decentralised area, the company is expanding its Flex Corners® and Lounges® offer in order to respond to increasing tenant demand in terms of flexibility. At the same time, Cofinimmo is conducting the redevelopment works of the Belliard 40 and Arts/Kunst 19H buildings, in the heart of Brussels, and preparing the repositioning of the Souverain/Vorst 23-25 site which will be vacated by AXA Belgium in the beginning of August.

    Since the beginning of 2017, investments totalled 81 million EUR, of which 57 million EUR in healthcare real estate2 and 22 million EUR in offices. The Group invested 381 million EUR in total since the capital increase of May 2015, of which 237 million EUR in healthcare real estate1 and 135 million EUR in offices.

    41 % of the 2016 dividends have been paid in new shares in the first half of 2017, thus reinforcing Cofinimmo's shareholders' equity by 33 million EUR. The Group's debt ratio amounts to 45.0 % at 30.06.2017. The company renewed multiple credit lines, bringing the average global debt maturity to

    5.0 years at the end of June 2017. The average cost of debt over the first half of 2017 was 2.0 %.

    The net result from core activities - Group share* was 69.3 million EUR at 30.06.2017, compared to 60.0 million EUR at 30.06.2016. The difference is mainly due to an increase in rental income between these two dates resulting from acquisitions made in 2016 and 2017. Per share, these figures amount to 3.25 EUR at 30.06.2017 and 2.86 EUR at 30.06.2016, with the number of shares entitled to share in the result increasing from 20,984,249 to 21,308,500. The net result amounts to 65.2 million EUR at 30.06.2017, compared to 34.6 million EUR at 30.06.2016, or 3.06 EUR per share at 30.06.2017 and 1.65 EUR per share at 30.06.2016.

    In view of these results, taking into account a committed investment pipeline of 228 million EUR over the period 01.07.2017 - 31.12.2019 and barring any unforeseen events that may arise, the Cofinimmo Group confirms the forecasts for the 2017 financial year of a net result from core activities - Group share of 6,49 EUR per share and a gross dividend of 5,50 EUR per ordinary share.

    1 Taking into account a new lease for 2,490 m², signed after 30.06.2017 - see chapter 'Events after 30.06.2017' of this Half-Year Financial

    Report.

  3. Consolidated key figures Global figures

  4. (x 1,000,000 EUR)

    30.06.2017

    31.12.2016

    Portfolio of investment properties (in fair value)

    3,425.1

    3,366.3

    (x 1,000 EUR)

    30.06.2017

    30.06.2016

    Property result

    107,331

    101,961

    Operating result before result on the portfolio

    85,893

    79,833

    Net result from core activities - Group share*

    69,289

    59,974

    Result on financial instruments - Group share*

    6,914

    -37,482

    Result on the portfolio - Group share*

    -11,034

    12,113

    Net result - Group share

    65,169

    34,605

    30.06.2017

    31.12.2016

    Operating costs/average value of the portfolio under management1*

    1.08 %

    1.08 %

    Operating margin*

    81.5 %

    81.7 %

    Weighted residual lease length2 (in years)

    10.0

    10.2

    Occupancy rate3

    94.4 %

    94.5 %

    Gross rental yield at 100 % portfolio occupancy4

    6.9 %

    6.9 %

    Net rental yield at 100 % portfolio occupancy5

    6.4 %

    6.4 %

    Debt ratio6

    45.0 %

    43.7 %

    Average cost of debt7*

    2.0 %

    2.4 %

    Average debt maturity (in years)

    5.0

    4.8

    Data per share8

    (in EUR)

    30.06.2017

    30.06.2016

    Net result from core activities - Group share*

    3.25

    2.86

    Result on financial instruments - Group share*

    0.32

    -1.79

    Result on the portfolio - Group share*

    -0.51

    0.58

    Net result - Group share*

    3.06

    1.65

    1 Average value of the portfolio to which are added the receivables transferred for the buildings whose maintenance costs payable by the owner are still met by the Group through total cover insurance premiums.

    2 Until the first break option for the lessee.

    3 Calculated based on real rents and, for vacant space, the rental value estimated by the independent real estate experts.

    4 Passing rents increased by the estimated value of vacant space, divided by the investment value of the portfolio (transaction costs not deducted), excluding development projects.

    5 Passing rents increased by the estimated value of vacant space, less direct costs, divided by the investment value of the portfolio, excluding development projects.

    6 Legal ratio calculated in accordance with the legislation on RRECs such as financial and other debt divided by total assets. 7 Including bank margins.

    8 Ordinary and preference shares.

Cofinimmo SA published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 15:43:08 UTC.

Original documenthttp://www.cofinimmo.com/media/3214/170727_résultats1h2017_en_definitif.pdf

Public permalinkhttp://www.publicnow.com/view/ED01B8C20AD61964E160D3C641B676F51A3F8F97