Cofinimmo has presented its 2005 Annual Results. In 2005, net current result per share increased by 5.9% to 8.60. Occupancy rate sharply increased by 2.8% to 95.76%. In addition, Cofinimmo made acquisitions in 2005 totalling €278 million.
Consolidated accounts
Property income at 31.12.2005 came to 143.45 million, 11.0% up on the figure one year earlier, stemming from the admission to the portfolio of the buildings North Galaxy, Tour Albert (Charleroi) and to a lesser degree Mechelen Station and the building of the Federal Police (Tournai).
Financial income at 31.12.2005 chiefly comprised interest income on the long-term lease receivables relating to the Belliard I-II property (7.8 million) and the payment by the seller of North Galaxy SA of a yield of 5.85% (0.5 million) on the shares held by Cofinimmo until 21.04.2005.
Financial charges at 31.12.2005 were down 7.5% on the same period one year earlier. The average interest rate on borrowings, including bank margins and the amortisation cost of derivative financial instruments providing interest rate cover for the year 2005, dropped back from 3.69% for 2004 to 3.21% at 31.12.2005.
The revaluation of derivative financial instruments following application of the IAS 39 standard resulted in a net unrealised income of 0.95 million at 31.12.2005.
The net current result - group share (ordinary shares) at 31.12.2005 came to 83.62 million, a 16.2% improvement on the figure at 31.12.2004 (71.98 million), while the net current result - group share per ordinary share at 31.12.2005 worked out at 8.60, or 5.9% more than the result at 31.12.2004 (8.12). With an unchanged portfolio, the market value of the properties has increased by 0.19% as at 31.12.2005, compared with a 0.63% reduction for the year 2004.
The fair value of the property portfolio entered in the consolidated balance sheet in application of standard IAS 40 and IAS 16, is obtained by deducting the above-mentioned registration taxes from the investment value. As at 31.12.2005, the fair value was 2,127.06 million compared with 2,037.55 million at 31.12.2004.
The net result (after including the result on portfolio) at 31.12.2005 amounted to 89.50 million, as against 66.64 million at 31.12.2004.
Property portfolio
As per 31.12.2005, the consolidated property portfolio comprises 141 properties, with a total rental area of 1,018,166m above ground, including 105,400m for North Galaxy and 18,800m for Tour Albert. In keeping with Cofinimmos strategy, the bulk of these assets (97%) is made up of offices. They are situated chiefly in
Brussels (87%).
The occupancy rate stands at 95.8%, up 2.8% on the figure at 31.12.2004.
Investments
On 21.04.2005, Cofinimmo, jointly with its subsidiary Leopold Square, acquired the balance of the shares in North Galaxy SA that it did not already own and absorbed this company on the same date. The principal asset of North Galaxy SA is the North Galaxy building, with an acquisition value of 389.8 million, and which is let to the Ministry of Finance for 18 years. Cofinimmo has full ownership of the property and will regain the right to collect rents at the end of the current lease.
On 08.06.2005, the acquisition was finalised of the shares in the company Espace Sainte Catherine SA, owner of the Tour Albert building in Charleroi. This property comprises 18,800m of office space and is entirely let to the Buildings Agency under a lease with 22.5 years to run. The acquisition value of the building is 37.7 million, generating an initial gross rental yield for Cofinimmo on this investment of 7.70%.
On 30.11.2005, Cofinimmo acquired a group of new buildings known as Mechelen Station. This complex is ideally situated close to Mechelen train station (Stationsstraat 100-120). It comprises 28,711m2 of office space, 2,073m2 of archives and 402 parking spaces.
On 16.12.2005, Cofinimmo concluded a shareholders' agreement with Belgian European Properties SA (BEP) by which it undertook to acquire all the shares of this company before 31.03.2006
