Befimmo has presented its results of the first six months of 2005. The highlights are:
- overall real estate value remained stable
- book value of 65.59 per share
- dividend forecast was confirmed
The floor area of the portfolio, 97% of which consists of investments in the Brussels region and suburbs, has not changed since 1 October 2004. Its value has remained stable overall in relation to the start of the financial year. At 30 June 2005, it was worth 1 128.9 million (-0.01% in relation to 1 October 2004).
The slight gain (+0.14%) recorded during the first six months of the period was absorbed in the third quarter by falling values in properties in decentralised areas and in the suburbs. In these areas, values fell by 1.76% and 2.43% respectively since the beginning of the period, offsetting the rise in the CBD (+1.07%).
Property values in decentralised areas and in the suburbs dropped as a result of low demand for lets and the pressure on estimated rental values2, so reducing the value of buildings, even at rising occupancy rates. The occupancy rate at 30 June 2005 was 92.3% (91.4%3 at the start of the period), stable during the third quarter.
Net asset value on 30 June 2005
Befimmo's net asset value (not audited) stood at 642.4 million on 30 June 2005. The book value stood at 65.59 per share, up 3.94 compared to 61.65 at the end of the 2004 financial year, i.e. 30 September 2004.
Taking account of the gross dividend of 4.62 distributed in December 2004, the return for the 12-month period ending on 30 June 2005 was 7.1%5. The debt ratio of the Sicafi stood at 42.5% on 30 June 2005, generating a debt-driven investment capacity of more than 100 million.
All other things being equal in the present context and in view of the recent trend in portfolio values, the current return for this financial year closing on 30 September 2005 should approach 8%.
The net current cash-flow per share for the period should be 5.10, above the forecast in the 2004 annual report (4.91).
All other things being equal, Befimmo can therefore confirm its dividend forecast of 4.80 per share (4.08 net).
Furthermore, Befimmo is in the process of finalising an agreement with the European Commission concerning the Borschette building.