PRESS RELEASE
REGULATED INFORMATION
Brussels, 28.07.2023, 7:30 a.m. CET
Half-Year Financial Report
Solid results, further divestments and strengthening of equity
within the framework of portfolio transformation
Solid results from a portfolio in transformation showing a 5% increase in the net result from core activities
- group share:
- Net result from core activities - group share of Cofinimmo (Euronext Brussels: COFB) at 114 million EUR (109 million EUR as at 30.06.2022)
- Gross dividend outlook for the 2023 financial year confirmed at 6.20 EUR per share
The cumulative amount of divestments carried out and those already signed and expected to be closed by the end of the financial year amounts to nearly 200 million EUR
- 128 million EUR divestments already completed in the first half-year (in line with the outlook), mainly in office buildings
Investments in healthcare real estate:
- 151 million EUR investments in healthcare real estate in Europe (in line with the outlook)
- With 4.5 billion EUR, healthcare real estate accounts for 73% of the group's consolidated portfolio which reaches 6.2 billion EUR
ESG:
- Cofinimmo is part of the 'Top SBTi 1.5°C ESG Bond Issuers' (selected by Euronext in January 2023) and is included in the new Euronext Bel ESG Index
- Cofinimmo is the only real estate player, among 8 Belgian companies, listed in the 500 Europe's Climate Leaders by the Financial Times
- Two BREEAM certifications obtained in healthcare real estate in Spain
- Renewal of several ESG labels
Solid operational performance:
- Gross rental revenues up 8.8%
- High occupancy rate: 98.5%
- Particularly long residual lease length: 13 years
Efficient management of the financial structure:
- Interest rate risk hedged at 99 % as at 30.06.2023 (and expected to range between 85% and 100% in 2023- 2027)
- Average cost of debt: 1.4% over the first half-year, and currently expected to remain at this level throughout the financial year
- Debt-to-assetsratio: 47.6% as at 30.06.2023 (including the seasonal effect of the dividend payment), and currently expected to reach approximately 45.6% as at 31.12.2023
- Rating BBB/Stable/A-2 confirmed by S&P on 21.03.2023 (report published on 03.05.2023)
- Capital increases (non-budgeted) for nearly 80 million EUR (optional dividend in the 2nd quarter and contributions in kind in the 3rd quarter)
- No long-term debt maturities in 2023
- Headroom on committed credit lines of approximately 686 million EUR as at 30.06.2023, after deduction of the backup of the commercial paper programme
1
PRESS RELEASE
REGULATED INFORMATION
Brussels, 28.07.2023, 7:30 a.m. CET
Jean-PierreHanin, CEO of Cofinimmo: "Cofinimmo delivered solid results for the first half-year of 2023. These results are ahead of the outlook issued at the beginning of the year, and have as background the active management of our balance sheet and of our portfolio in transformation, with particular attention paid to asset rotation, enhanced by the strengthening of our equity. By doing so, we continue to actively participate in the expansion and renewal of the healthcare real estate portfolio in Europe while pursuing measures to achieve our ESG objectives."
2
PRESS RELEASE
REGULATED INFORMATION
Brussels, 28.07.2023, 7:30 a.m. CET
1.2. Consolidated key figures | 7 |
Global figures | 7 |
Data per share - group share | 8 |
Performance indicators based on the EPRA standard | 9 |
1.3. Evolution of the consolidated portfolio | 9 |
1.4. Major events occurring in the first half-year of 2023 | 11 |
Healthcare real estate in Belgium | 11 |
Healthcare real estate in France | 11 |
Healthcare real estate in the Netherlands | 12 |
Healthcare real estate in Germany | 13 |
Healthcare real estate in Spain | 14 |
Healthcare real estate in Finland | 15 |
Healthcare real estate in Ireland | 15 |
Healthcare real estate in Italy | 16 |
Healthcare real estate in the United Kingdom | 16 |
Property of distribution networks | 16 |
Offices | 18 |
1.5. Events after 30.06.2023 | 20 |
Healthcare real estate in Belgium | 20 |
Healthcare real estate in Spain | 20 |
Healthcare real estate in Ireland | 21 |
1.6. Operating results | 22 |
Occupancy rate (calculated based on rental income) | 22 |
Main tenants | 22 |
Weighted average residual lease length | 23 |
Portfolio maturity | 23 |
Changes in gross rental revenues on a like-for-like basis | 24 |
1.7. Financial resources management | 24 |
Capital increases since 01.01.2023 | 25 |
Other financing operations since 01.01.2023 | 26 |
Debt structure | 26 |
Non-current financial debt | 26 |
Current financial debts | 27 |
Availabilities | 27 |
Consolidated debt-to-assets ratio | 27 |
Weighted average residual maturity of financial debts | 28 |
Average cost of debt and hedging of the interest rate | 28 |
Financial rating | 29 |
Treasury shares | 29 |
1.8. Consolidated portfolio as at 30.06.2023 | 31 |
1.9. Outlook for 2023 | 33 |
Investment programme | 33 |
Net results from core activities and dividend per share | 36 |
1.10. Information on shares and bonds | 36 |
Share performance | 36 |
Dividend for the 2023 fiscal year | 37 |
Shareholding | 37 |
1.11. Environmental, Social and Governance (ESG) | 38 |
Initiatives adopted in response to climate change | 38 |
References, notations and certifications | 38 |
Developments in the situation of some healthcare operators | 38 |
3 |
PRESS RELEASE
REGULATED INFORMATION
Brussels, 28.07.2023, 7:30 a.m. CET
1.12. | Corporate governance | 39 | |
Ordinary general meeting of 10.05.2023 | 39 | ||
Extraordinary general meeting of 10.05.2023 | 40 | ||
1.13. Main risks and uncertainties | 40 | ||
1.14. | 2023 shareholder calendar | 41 | |
2. | Condensed financial statements | 42 | |
2.1. Condensed consolidated comprehensive result - Royal decree of 13.07.2014 form (x 1,000 EUR) | 42 | ||
2.2. Condensed consolidated income statement - Analytical form (x 1,000 EUR) | 44 | ||
2.3. Condensed consolidated balance sheet (x 1,000 EUR) | 47 | ||
2.4. Consolidated debt-to-assets ratio | 48 | ||
2.5. Condensed consolidated cash flow statement | 49 | ||
2.6. Condensed consolidated statement of changes in equity | 50 | ||
2.7. Selected notes to the interim condensed financial statements | 52 | ||
3. | Statement of compliance | 69 | |
4. | Information on forecast statements | 70 | |
5. | Appendices | 71 | |
5.1. Appendix 1: Independent real estate valuers' report | 71 | ||
5.2. Appendix 2: Statutory auditor's report | 78 |
4
PRESS RELEASE
REGULATED INFORMATION
Brussels, 28.07.2023, 7:30 a.m. CET
1. Interim management report
1.1. Summary of activity since 01.01.2023
Cofinimmo has been acquiring, developing and managing rental properties for almost 40 years. Attentive to societal changes, Cofinimmo's permanent objective is to offer high-quality care, living and working spaces ('Caring, Living and Working - Together in Real Estate'). Capitalising on its expertise, Cofinimmo consolidates its leadership in European healthcare real estate.
The pandemic that the world has been experiencing in recent years has highlighted the importance of the healthcare segment for each and every one of us. Through its investments, Cofinimmo is actively participating in the operation, maintenance, extension and renewal of the healthcare property portfolio in nine countries.
During the first half-year, Cofinimmo made several investments (for 177 million EUR), in line with the outlook1, mainly in various healthcare real estate sub-segments in Europe. Thanks to these operations, healthcare real estate assets (4.5 billion EUR) account for 73% of the group's consolidated portfolio as at 30.06.2023, which reaches 6.2 billion EUR.
Cofinimmo constantly evaluates its assets portfolio based on the key points of its strategy and the available market opportunities. In this context, the group carried out disposals for 128 million EUR, in line with the outlook, contributing to the reduction by 1.0% of the debt-to-assets ratio. These are noticeable in the office and property of distribution networks segments (where the Cofinimur I portfolio of insurance agencies in France represents only 0.03% of the consolidated portfolio as at 30.06.2023, after disposals of more than 15 million EUR in 2023 and nearly 110 million EUR cumulatively since the process was launched in 2021). The cumulative amount of divestments carried out since 01.01.2023 and those already signed and expected to be closed by the end of the financial year amounts to nearly 200 million EUR.
Cofinimmo has been adopting a proactive ESG policy for almost 15 years now. This is a real priority for the group, which once again distinguished itself in 2023. At the beginning of the year, Cofinimmo was selected to be one of the 'Top SBTi 1.5°C ESG Bond Issuers' and was included in the new Euronext Bel ESG Index. On 20.04.2023, Cofinimmo's ESG efforts were praised by the international financial press (Financial Times), with the group being the only real estate company, among 8 Belgian groups, listed in the 500 Europe's Climate Leaders. In addition, during the half-year, Cofinimmo further improved its ESG performance with two new BREEAM certifications in Spain and the renewal of several ESG labels.
In terms of financing, Cofinimmo reinforced its financial resources and its balance sheet structure during the last two financial years (cumulative capital increases of 565 million EUR in 2021 and 114 million EUR in 2022), and again during this financial year (non-budgeted capital increases through optional dividend in the 2nd quarter and contributions in kind in the 3rd quarter, totalling nearly 80 million EUR). The financing operations during this period enabled the group to improve the maturity timetable of its financial debts, to increase the amount of available financing and to maintain an average cost of debt at particularly low levels. In this respect, Cofinimmo carried out in January the last early refinancing for 2023 (90 million EUR), to bring its maturity to 2030; there are therefore no further long-term debt maturities in 2023. The interest rate risk is hedged at 99% as at 30.06.2023 through the use of IRS and caps; the expected ratio for the period 2023-2027 is also high, ranging from 85% to 100% depending on the year. As at 30.06.2023, Cofinimmo had 686 million EUR of headroom on committed credit lines, after deduction of the backup of the commercial paper programme.
1 i.e. the quarterly outlook derived from the annual outlook presented in the 2022 universal registration document, published on 06.04.2023, and confirmed in section 11.2 of the press release dated 28.04.2023.
5
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Cofinimmo SA published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2023 05:34:14 UTC.