At the end of the first 9 months of the current year the office rental market remains morose. In these market conditions Cofinimmo's current performance is stable by comparison with the same period in 2005. This stabilisation can be traced to the consolidation of occupancy rates at approaching 95% and the beneficial impact of significant acquisitions since 2003 of properties rented long term. In addition, the operating margin, still well above 80%, reflects tight control of operating costs.
The company results have also benefited from interest rate hedges concluded for the current financial year, so helping keep the overall cost of borrowing at a low level.
Save unforeseen events, the result per ordinary share (8.46) and gross dividend per ordinary share (7.40) announced in the 2005 Annual Report will be achieved.
The company has continued to pursue its strategy of diversification into the retirement home sector, very recently having acquired no less than 8 establishments for approaching 78 million, already bringing it close to its 2006 diversification target in this sector to reach 5% of the total portfolio.
Cofinimmo has also been commissioned to build the new fire station in Antwerp and a police station at Edegem, in the Antwerp region. It is again acting as counterparty for public authorities wishing to contract out the building and maintenance of properties for very specific usage while improving the standard of accommodation of their occupying services.
For facts and figures: www.cofinimmo.com
Source: Cofinimmo
