The net current result after 9 month reaches €60.7 million, which is comparable with the level of net current result as per 30.09.2003 (€60.9 million). Net rents at 30.09.2004 reach €98.3 million, an increase by 2.0% compared with 30.09.2003.
In this progression, the erosion of the occupancy rate, which slipped back from 93.59% at 30.06.2004 to 92.93% at 30.09.2004 is overcompensated, on the one hand, by the inclusion in the portfolio of the Egmont complex at the end of May 2004 and, on the other hand, by an increase in received indemnities for breach of contract (included under other operating income).
Despite the increase of rental vacancy, the operating margin reaches 84.4%, which is a progression of 1.1% compared to 2003. This good performance is due to an adequate control of the direct operating costs.
The indirect operating costs (property and corporate) present, amongst others, the costs (€0.78 million) of the investment and financing operations realised during the 1st semester of 2004: mergers with Belgian Office properties (BOP) and Benelux Immo Loi, acquisition of the Egmont complex and the issuing of preference shares.
The financial result as at 30.09.2004 improved by almost EUR 1.5 million, or +6.9% compared to 30.09.2003. This result is a consequence of a decrease of average interest rate on borrowings, including bank spreads and costs for hedging instruments, from 4.04% for 2003 to 3.73% for the first nine months of 2004. This while the financial debt increased by 16.7% since 31.12.2003, as a result of the transactions mentioned above.
The net current result per ordinary share as per 30.09.2004 stands at €6.04, or 7.6% less than the result at 30.09.2003 (€6.54). This decrease results primarily from the estimated dividend to new preference shareholders who are entitled to a first preferential but capped dividend with retroactive effect on 01.01.2004. The cost of this dividend is however partly compensated by the elimination of the minority interests of the third party shareholders of BOP, also with retroactive effect on 01.01.2004. The 1st series of preference shares (€75.8 million) was indeed issued for the third party shareholders of BOP in exchange of their shares. The 2nd series (€83.3 million) finances about half of the acquisition of the Egmont complex. Cofinimmo only perceived rent for this project as of mid 2004. This time lag has a penalising effect on the net current result per ordinary share of the 1st semester of 2004. The positive effect of this investment and its financing on the net current result per ordinary share is thus only recorded in the accounts since 30.06.2004.
The result on portfolio as at 30.09.2004 is composed of an unrealised loss of €11.8 million. On the basis of an unchanged portfolio, the market value of the properties held indeed depreciated by 0.64% during the first nine months of 2004, compared with decreases of respectively 0.52% and 0.77% for the first nine months of 2003 and for the year 2003. The quarterly valuation by the independent external expert indicates that the decline in value of properties situated in the airport district and the Decentralised area is tending to pursue, whereas the value of properties in the Brussels CBD (Central Business District) continues to head upwards.
As a consequence, a decrease of €1.33 per ordinary share in the portfolio value (unrealised loss) was recorded, compared with a decrease (unrealised loss) of €1.18 during the first nine months of 2003.
The market value of the property portfolio (estimated investment value of the portfolio) amounts to €2,061.4 million1 at 30.09.2004 compared with €2,045.61 million at 30.06.2004 and €1,855.66 million at 30.12.2003.
The net result per ordinary share (after inclusion of the result on portfolio) as per 30.09.2004 equals €5.00 compared to €5.38 at 30.09.2003, i.e. a decrease of 7.1%. The net asset value per ordinary share (before distribution) amounts to €109.66 at 30.09.2004 as opposed to €103.85 (net of the dividend for the year 2003) at 3