After nine months in this current year, Cofinimmo's operational performance is progressing thanks to the improvement of the occupancy rate and the positive effect of the important acquisitions of buildings let on the long term, which intervened since 2003. The result of the company is also reflecting the reduction of the cost of debt as well as the firm control of operating costs.
Consolidated accounts at 30.09.2005
Property income at 30.09.2005 came to 108.36 million, 10.3% up on the figure one year earlier, stemming from the admission to the portfolio in May 2004 of the Egmont complex and, during the second quarter 2005, of the North Galaxy and Tour Albert buildings. Rental income levels were boosted by the nearly 1.8% improvement in occupancy rate since 31.12.2004 (see below) and by the entering in the accounts of a non recurrent cash rent of 4.42 million regarding the North Galaxy building. Indeed, the rent paid for the months July, August and September was not a part of the rents sold last April.
The operating margin worked out at 84.1%, higher by 2.2% than in 2004 as a whole. This good performance was achieved by keeping technical costs as well as property management costs and corporate operating costs firmly under control.
Combined direct and indirect operating costs made up 1.09% of the average value of the portfolio under management at 30.09.2005, slightly down on 2004 (1.15%). Steep growth in this portfolio over recent years and sound control of these costs have helped bring this ratio down.
Financial income at 30.09.2005 chiefly comprised interest income on the long-term lease receivables relating to the Belliard I-II property (5.8 million) and the payment of 0.5 million, at the rate of 5.85%, for the North Galaxy shares held by Cofinimmo until 21.04.2005, the date of that company's takeover (acquisition of the remaining shares and merger with Cofinimmo).
Financial charges at 30.09.2005 were down 14.4% 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 three-month period, dropped back from 3.69% for 2004 to 3.14% at
The revaluation of derivative financial instruments following application of the IAS 39 standard resulted in a net unrealised charge of 1.97 million at 30.09.2005. This charge is solely attributable to amortisation of the time value of instruments providing interest rate cover for periods subsequent to 30.09.2005.
Financial debt has grown 3.9% since 31.12.2004 as a result of the acquisitions made. Some loans were renegotiated during the nine-month period in order to benefit from reduced banking margins.
Taxes ( 2.48 million) chiefly comprises the corporation tax payable by subsidiaries not covered by the Sicafi tax regime. This item was significant during the first quarter of 2005. The mergers by absorption of Beta Invest SPRL and Immobilière de Location du Quartier Léopold SA, concluded on 8 April last, brought their assets under the Sicafi tax regime.
The net current result - group share (ordinary shares) at 30.09.2005 came to 62.15 million, a 15.2% improvement on the figure at 30.09.2004 (53.96 million), while the net current result - group share per ordinary share at 30.09.2005 worked out at 6.58, or 8.0% more than the result at 30.09.2004 (6.09). This is a logical consequence following the increase in number of shares.
The result on portfolio incorporates a small unrealised loss of 0.83 million, as against an unrealised loss of 11.80 million at 30.09.2004. With an unchanged portfolio, the market value of the properties is stable as at 30.09.2005, compared with a 0.64% reduction during the first nine months of 2004. The quarterly valuation by the independent real estate experts shows that the value enhancement of recent acquisitions in the Central Business District (CBD) has generated unrealised gains offsetting the erosion in property values around the airport and in the Decentralised Area. As a c