Summary of past 5 years

Transcription

1 jaarverslag 2005 ENG :40 Pagina 1 1 Summary of past 5 years Results (x EUR 1,000) Rental income 20,807 21,805 20,874 21,201 21,830 Profit 24,141 41,375 19,357 22,271 28,688 Direct result 20,212 19,648 19,485 19,989 20,182 Indirect result 3,929 21, ,282 8,506 Balance sheet (x EUR 1,000) Investments 2 301, , , , ,894 Shareholders equity 298, , , , ,824 Number of shares 5,331,947 5,331,947 5,331,947 5,331,947 5,331,947 Fair value investment portfolio 2 (x EUR 1,000) Retail 136, , , , ,050 Offices 164, , , , , , , , , ,894 Share data (x EUR 1) Direct result Indirect result Profit Gross dividend Net dividend Net asset value before profit distribution Direct result per share Profit per share Figures before 2004 are based on Belgian GAAP. As from 2004, consolidated figures are based on IFRS; figures up to 2004 have been recalculated by adding realised and not realised gains or losses to the profit. 2 Fair value has been computed after deduction of the transaction costs incurred at the sales process; transaction costs contain mainly registration taxes of 10%-12.5%. The independent appraiser has carried out the valuation in conformity with International Valuation Standards and European Valuation Standards. Profit and dividend per share Share Price/Net asset value (at December 31, before distribution of profit) 7 6 Dividend Profit Net asset value Share Price

2 jaarverslag 2005 ENG :40 Pagina 2 Consolidated annual report of the Board of Directors of the Management Company The board of Directors of Management Company s activities The Board met four times in Regular items on the agenda of these meetings were the company s results and asset performance, developments on the Belgian property markets, investments and disinvestments, financing and the dividend policy. The members of the Board were present at all meetings except Mr. G.C.J. Verweij who was excused on the meeting of August 3, During 2005, the Board of Directors discussed about the design and functioning of the internal risk control and monitoring system. No adaptations are needed. In November 2005 the Board of Directors decided to appoint an audit committee. Other committees are not deemed necessary due to the size of the Board. The audit committee consists of Mr. B. De Corte (chairman) and Mr. B. Graulich. Mr. R.L.M. de Ruijter stepped down as director and managing director of the Management Company. Mr. de Ruijter carried out this mandate at Comm. VA SCA since The Board of Directors decided to co-opt Mr. J. Buijs as director and to appoint Messrs. G.C.J. Verweij and B. Graulich respectively as Managing Director and Chairman of the Board of Directors. The General Meeting of Shareholders of the Management Company, to be held on May 12, 2006, will be invited to ratify the appointment of Mr. J. Buijs. Members of the Board of Directors do not derive any advantage in any other way from the activities of Comm. VA Wereldhave Belgium SCA or its affiliated companies. The Board of Director members do not hold any shares or option rights in Comm. VA SCA. No loans, advances or guarantees have been extended to the Board of Directors members by Comm.VA Wereldhave SCA. The Board of Directors of the Management Company is composed of four members. Two are Executive Board members of Wereldhave N.V. and two have the legal position of Independent Director. In 2005 no business transactions took place between the members of the Board of Directors of the Management Company and the company.

3 jaarverslag 2005 ENG :40 Pagina 3 3 Management Organisation N.V. S.A. (Statutory Management Company) Represented by its Board of Directors G.C.J. Verweij Managing Director Chairman Wereldhave N.V. B. De Corte Director Independent Director B. Graulich Director Independent Director J. Buijs Director Director of Wereldhave Management Holding comprises an integrated organisation for the investment in and management of commercial property. has permanent access to reliable and up to date information on property markets, also in the international scope. This means that the company is in a position to react swiftly to changing circumstances. Structure has been a Real Estate Investment Fund (Sicafi) since January 15, The fund is governed by the Royal Decree of April 10, 1995 and is recognized as such by the Banking, Finance and Insurance Commission. The company has the fiscal status of a Real Estate Investment Fund and is, therefore, not subject to corporate tax, except on possible exceptional and favourable advantages and on rejected expenditures. Financial agenda April 12, 2006 Annual General Meeting of Shareholders April 21, 2006 Dividend payable May 9, 2006 Publication of first quarter results 2006 August 8, 2006 Publication of half-year results 2006 November 7, 2006 Publication of first 9 months results 2006 March 2007 Annual Report 2006 The company is managed by N.V. S.A. that acts as sole statutory Management Company. The Board of Directors is composed of four members. Two are Executive Board members of Wereldhave N.V. and two have the legal position of Independent Director. The Board of Directors meets at least four times per year. At December 19, 2005 Mr. R.L.M. de Ruijter stepped down as director and managing director of the Management Company. Messrs. G.C.J. Verweij and B. Graulich are appointed respectively as Managing Director and Chairman of the Board of Directors. Mr. J. Buijs has been co-opted as director; this decision will be ratified by the General Meeting of Shareholders on May 12, shares are traded at the Euronext continuous stock exchange in Brussels and are included in the "Next Prime" segment of Euronext. Wereldhave N.V., The Hague, held 68.2% of the shares directly or indirectly at December 31, Fortis Bank N.V. acts as deposit bank and ING Financial Markets as liquidity provider. Information Information is available from : Tel: investor.relations@wereldhavebelgium.com Website:

4 jaarverslag 2005 ENG :40 Pagina 4 Strategy outline Mission and corporate aim s mission is to make available, when and where needed, the right type of commercial and residential property. offers an attractive yield combined with a low risk profile on its property portfolio. The right accommodation at the right time and on the right spot Strategy The end-user is 's foremost consideration when making decisions on property investment. The strategic policy is to apply portfolio renewal for the optimal satisfaction of tenants changing demands. has a preference for investing in modern, adaptable and identifiable buildings in readily accessible locations in knowledge based areas, where there is a liquid property market. considers that this policy will engender both a continuous increase in earnings per share and an attractive growth in net asset value. Portfolio renewal attempts to limit the risks of the cyclical property market. This is achieved both by geographical portfolio diversification between various Belgian locations and by investing in offices, shopping centres, industrial property and residential property. Diversification facilitates portfolio renewal. Diversification by geographical area and type of property Through its in-house management, can recognise changes in the preferences of tenants, property maintenance requirements and marketability at an early stage and adopt a pro-active stance. This enables to react swiftly to the latest developments. The experience acquired by the management team clearly stimulates the portfolio renewal. In-house real estate management attaches great importance to durable innovative measures which lower total costs and raise tenant flexibility, while simultaneously relieving the pressure on the environment. Waste products will increasingly be taxed, making demolition and renovation increasingly expensive. anticipates this problem by applying its own environmental and durability criteria to the choice of materials and to its buildings energy and water requirements. Innovation and responsible corporate citizenship

5 jaarverslag 2005 ENG :40 Pagina 5. 5 Report to the shareholders A total of 30 new leases and lease renewals were contracted in 2005 of which 22 were related to the three shopping centres. The average rent increase in the shopping centres amounts to 13%. The office market is still quite weak. A key concern for Wereldhave Belgium is improving its office portfolio occupancy rate in Vilvoorde and Berchem-Antwerp. Lettings and relettings At April 13, 2005, acquired 4 commercial units alongside the shopping centre in Nivelles for an amount of EUR 3.9 mln. The sectoral diversification of the portfolio seemed succesful: the reduced valuation of a number of office buildings was compensated by an increase in value of the shopping centres. As from 2004, has a stake in the stock exchange listed real estate certificate Kortrijk Ring Shopping Centre. In 2005 this stake has been revaluated till EUR 8.2 mln (2004: EUR 6.5 mln). Portfolio In 2005 the direct result increased from EUR 3.74 to EUR Over 2005 a gross dividend of EUR 3.75 per share will be proposed to the General Meeting of Shareholders. Our firm balance sheet equilibriums enable us to continue with this high pay-out level. The dividend is payable at Fortis Bank, ING Bank and KBC Bank against delivery of coupon 9. Dividend As from January 1, 2006, the Corporate Governance recommendations have been applied. A detailed description can be found on page 55. Corporate governance As from the annual accounts 2005, the Sicafi applies IFRS. The figures for 2004 have been adjusted accordingly. The non consolidated statutory annual accounts are established according to Belgian GAAP. The consolidation of the participation in the company J-II has been incorporated for 100%. Transition to IFRS Fair value remains the principle of valuation for investment properties. Under IFRS, revaluation is accounted for in the profit and loss account.

6 jaarverslag 2005 ENG :40 Pagina 6 Results Direct result The direct result consists of the net result, corrigated with the result on the portfolio. Over 2005, the direct result of Comm. VA SCA increased to EUR 20.2 mln (2004: EUR 20.0 mln). This increase is the result of higher net rental income (EUR 0.6 mln), lower costs for unoccupied buildings and a release of provisions (EUR 0.7 mln), higher taxes (EUR 0.1 mln) and a lower financial result (EUR 1.0 mln). The direct result per share amounts to EUR 3.79 (2004: EUR 3.74). Indirect result The indirect result consists of the revaluation and the result on the disposal of assets. The revaluation of the investment portfolio amounts to EUR 8.5 mln (2004: EUR 2.3 mln). This increase is due to the positive revaluation of the commercial centres. During the year under review, no capital gains were realised. Profit The profit consists of the direct and indirect result. The profit for 2005 rose from EUR 22.3 mln to EUR 28.7 mln. This is the result of a higher positive revaluation (EUR 6.2 mln), a higher operating result before result on the portfolio (EUR 1.3 mln) and higher taxes (EUR 0.1 mln). The financial result decreased (EUR 1.0 mln) due to the loss off an exceptional financial result in Equity and Debt Nivelles for an amount of EUR 3.9 mln, to investments in buildings of EUR 0.3 mln and to the positive revaluation of the portfolio of EUR 8.5 mln. To December 31, 2005 the debt ratio on the total of assets amounts to 0.8% (IFRS) and, according with the Royal Degree of April 10, 1995, applicable on the Sicafis, the debt ratio amounts to 5.8%. The second method of calculation of the debt ratio (5.8%), applied hitherto, is in accordance with Article 52 of the Royal Degree of April 10, 1995 and interpreted by the supervisory authorities. The disputed fiscal claim of EUR 50.9 mln is not taken into account in the calculation. For that matter, the total sum of the fiscal claim is guaranteed by Wereldhave NV, shareholder of Comm. VA SCA. Stock market development In 2005, shareholders achieved a total return (assuming reinvestment of the dividend) of 24.2%. This is 4.4% higher than the annual performance of the ING property index, composed of Belgium s largest listed property investment funds. The price/direct result ratio at the end of 2005 was Shareholders Of the 5,331,947 shares in circulation at December 31, 2004, 37.99% were held by Wereldhave N.V., 30.21% by N.V. Wereldhave International and 31.80% by the general public. Shareholders equity at the end of 2005 before distribution of profit amounted to EUR mln, i.e. 99.2% of the balance total (2004: EUR mln or 99.0%). At December 31, 2005 the fair value of the portfolio amounted to EUR mln, compared with EUR at December 31, The increase of EUR 12.7 mln net can be attributed to the purchase of 4 commercial units alongside the shopping centre in Contracted rent Rental Income vs. market rent Share price 2005 (as a%) (x EUR mln) 16,000 14,000 12,000 10,000 Rental Income Market Rent , , ,000 2, Retail Offices /05 02/05 03/05 04/05 05/05 06/05 07/05 08/05 09/05 10/05 11/05 12/05

7 jaarverslag 2005 ENG :40 Pagina 7 7 Important events occured after the financial year After the year end no important events occurred which influenced the development of the company or the annual accounts of December 31, those located at The Veldekens office park in Berchem- Antwerp are not or partly leased due to an oversupply in the peripheral area. The value of the investment properties portfolio amounts to EUR mln at December 31, Financial instruments The company does not make use of financial instruments. Research and development In view of the nature and specific activity of the company, no operations are connected to research and development. Development of the property portfolio The commercial centres, Belle-Ile in Liège, Les Bastions in Tournai and the commercial centre in Nivelles maintain their status as popular shopping destination in their respective district. The combination of the following facilities: accessibility, free parking, safety, branche mix and animation, makes these shopping centres especially attractive. In the short/long term this guarantees added value to this kind of properties. Substantial rent increases were agreed during recent lease renewals. Ultimo 2005, has a stake in the listed stock exchange real estate certificate Kortrijk Ring Shopping Centre of 15.8%. The fair value amounts to EUR 8.2 mln per December 31, 2005 (2004: EUR 6.5 mln). The average occupancy rate of the portfolio over 2005 amounted to 82.9% (2004: 79.0%). The vacancy concerns only the office portfolio. The office building located at 28 Medialaan in Vilvoorde and Property valuation at 01/01/05 Retail EUR 168,339,000 Offices EUR 138,855,000 EUR 307,194,000 Property valuation at 31/12/05 Retail EUR 180,050,000 Offices EUR 139,844,000 EUR 319,894,000 Insured value of property portfolio at 31/12/05 Retail EUR 136,125,000 Offices EUR 146,468,000 EUR 282,593,000 Prospective theoretical rent (on the basis of 100% occupancy) for 2006 Retail EUR 13,529,000 Offices EUR 13,454,000 EUR 26,983,000 Breakdown of portfolio by age (as a % of market value) Geographical breakdown (as a % of rental income) Brussels Flanders Wallonia % % 28% 0 < 5 years 5-10 years years

8 jaarverslag 2005 ENG :40 Pagina 8 The Belgian property market During the year under review almost 50% more office space was let than in Thanks to the expansion of the European Union the vacancy rate in the Brussels conurbation dropped slightly to 10.4%. No improvement was recorded in the Leopold district, where a relatively large amount of new buildings were completed in anticipation of this expansion. The European Union, however, has a preference for larger office buildings, for which no space is available in the Leopold district. As a result the EU is now moving to more peripheral office locations, resulting in increasing vacancies and falling rents (down 3% to EUR 285 per m 2 ) in the Leopold district. In the nearby Central district vacancies decreased but rents none-the-less fell by 10% to EUR 200 per m 2. Other districts also recorded this remarkable combination of lower vacancy rates and falling rents. In view of the expected completion of 500,000 m 2 of new office space in 2006 landlords have been prepared to make concessions on rents. Tenants are sensitive to the quality of locations and of individual buildings. Initial rental yields amount to 6% in the Central Business District (Leopold), to 6.5% in the outlying areas (Ring) and 6.7% on the periphery. The take up of office space in Antwerp probably totalled around 70,000 m 2 in 2005, which is considerably less than the average for the recent past. Major road works on the outer ring-road, which lasted till the end of the year, were a contributory depressing element. The supply of office space peaked at the end of 2004 and hardly declined since. In view of the lower office rent levels conversion to residential accommodation is a more remunerative option than in Brussels. Initial rental yields on office properties currently amount to circa 7%. The vacancy level for shops in the traditional main shopping streets is attributed to the success of shopping centres and retail parks. In the last few years there has been a definite upgrading of the retail trade on the outskirts of towns, which are no longer dominated by discount outlets. In the city centres there is strong demand for good quality shops in A-1 locations. Since the end of 2004 rents in shopping centres have been rising rapidly. In the best centres higher rents (EUR 1,600 per m 2 ) than in the main shopping streets (EUR 1,250 per m 2 ) are already being paid. Rents in retail parks amount to EUR 135 per m 2. Rental yields on top Belgian retail property are currently running at 5% in the main shopping streets and 6% to 7.5% in shopping centres. Yields are under downward pressure as a result of the low level of interest rates and investors demand for retail property. The weak demand for industrial property has affected rental levels, which in the case of semi-industrial buildings have scarcely risen in the last ten years. Letting periods are getting successively shorter. Initial rental yields have fallen from 10% to 7% over the last few years. purchased four adjacent shops as part of its plan to expand the Nivelles shopping centre. No other changes took place in the portfolio in The application for the building permit for the expansion of 8,000 m 2 will be submitted in the spring of In anticipation of the expansion, the shopping centre will be renovated. In Tournai plans have been prepared for the expansion of the shopping centre by 4,500 m 2. In view of this, on February 9, 2006 a plot of land was acquired to expand the parking facilities of the shopping centre.

9 jaarverslag 2005 ENG :40 Pagina 9 9 Prospects Profit Development In 2006, will mainly focus on seeking opportunities for extending its shopping centres, i.e. in Nivelles, and improving its offices portfolio occupancy rate. The positive development of rental levels in the shopping centres continues. However, the letting of office space in peripheral areas continues to be a challenge due to oversupply. s profit development will be mainly dependent on improving the occupancy rate of the office portfolio Statutory Management Company N.V. S.A. B. Graulich, chairman B. De Corte G.C.J. Verweij J. Buijs Vilvoorde, February 22, 2006

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11 jaarverslag 2005 ENG :40 Pagina Portfolio

12 jaarverslag 2005 ENG :40 Pagina 12 Breakdown by sector Breakdown by sector (as a % of market value) (as a % of rental income) Offices Retail Offices Retail 56% 44% 40% 60%

13 jaarverslag 2005 ENG :40 Pagina Portfolio summary on December 31, 2005 Location Diversifica- Rentable Parking Number Rental Average tion of the area spaces of income Occupaportfolio (in m 2 ) (number) tenants in 2005 tion 2005 (in %) (in EUR) (in %) Commercial Shopping Centre 4020 Liège 35 31,252 2, ,097, "Belle-Ile" Quai des Vennes 1 Shopping Centre 1400 Nivelles 11 19, ,569, Nivelles Chaussée de Mons 18 Shopping Centre 7500 Tournai 9 14,178 1, ,136, "Les Bastions" Bd. W. de Marvis 22 Shop 4000 Liège 1 3, , Rue de l Université 14 Rue Cathédrale 84/86 Offices Madou Centre 1000 Brussels 10 12, ,663, Bd. Bischoffsheim 302* Regent Brussel 2 3, , Bd. Régent 49* Orion Centre 1000 Brussels 4 5, ,143, Bd. Bischoffsheim 25* Jan Olieslagerslaan 1800 Vilvoorde 1 3, J. Olieslagerslaan 29* Business- & Mediapark 1800 Vilvoorde 3 5, , Medialaan 201* Business- & Mediapark 1800 Vilvoorde 2 3, , Medialaan 120* Business- & Mediapark 1800 Vilvoorde 6 12, Medialaan 246* De Veldekens 2600 Berchem 5 11, ,570, Roderveldlaan 368* De Veldekens 2600 Berchem 6 16, ,081, Roderveldlaan 1,119* De Veldekens 2600 Berchem 5 11, , Berchemstadion- 224* straat Total ,584 21,830, * Archives.

14 jaarverslag 2005 ENG :40 Pagina 14 Offices buildings Description of the portfolio Investment portfolio Madou Centre, 1-8 Boulevard Bischoffsheim, 1000 Brussels Year of construction: Renovation: 2002 Location: along the inner ring road, in the Art-Loi quarter Rentable area: 12,364 m 2 offices and 302 m 2 archives Parking: 150 underground spaces Orion Centre, Boulevard Bischoffsheim, 1000 Brussels Year of construction: 1990 Location: along the inner ring road, in the Art-Loi quarter Rentable area: 5,205 m 2 offices, 25 m 2 archives and 4 apartments (500 m 2 ) Parking: 60 underground spaces plus 4 parking spaces alongside the apartments Office building, 58 Boulevard du Régent, 1000 Brussels Year of construction: Renovation: 1997 Location: along the inner ring road, in the Art-Loi quarter Rentable area: 3,246 m 2 offices and 49 m 2 archives Parking: 32 underground spaces

15 jaarverslag 2005 ENG :40 Pagina Office building, Jan Olieslagerslaan, 1800 Vilvoorde Year of construction: 1998 Location: in the Business Class office park, just near the station of Vilvoorde Rentable area: 3,012 m 2 offices and 29 m 2 archives Parking: 82 underground and above ground spaces Business- & Mediapark, Medialaan, 1800 Vilvoorde Year of construction: 1999 Location: in the immediate vicinity of the Brussels Ring Road (exit 6) and the airport Rentable area: Medialaan 30: 5,495 m 2 offices and 201 m 2 archives Medialaan 32: 3,932 m 2 offices and 120 m 2 archives Parking: 301 underground and above ground spaces Business- & Mediapark, 28 Medialaan, 1800 Vilvoorde Year of construction: 2002 Location: in the immediate vicinity of the Brussels Ring Road (exit 6) and the airport Rentable area: 12,743 m 2 offices and 246 m 2 archives Parking: 305 underground and above ground spaces

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17 jaarverslag 2005 ENG :40 Pagina De Veldekens I 1-2 Roderveldlaan, 2600 Berchem - Antwerpen Year of construction: 2001 Location: alongside the Antwerp ring road Rentable area: 11,976 m 2 offices and 368 m 2 archives Parking: 238 underground and above ground spaces De Veldekens II Roderveldlaan, 2600 Berchem - Antwerpen Year of construction: 1999 Location: alongside the Antwerp ring road Rentable area: 16,020 m 2 offices and 1,119 m 2 archives Parking: 316 underground and above ground spaces De Veldekens III Berchemstadionstraat, 2600 Berchem - Antwerpen Year of construction: 2002 Location: alongside the Antwerp ring road Rentable area: 11,192 m 2 offices and 224 m 2 archives Parking: 217 underground and above ground spaces

18 jaarverslag 2005 ENG :40 Pagina 18 Breakdown of portfolio by sector (as a % of rental income) 5.36% 3.44% 6.73% 16.64% 17.07% 0.73% 2.75% 5.08% 3.51% 6.70% 4.57% 6.52% 11.84% 2.95% 1.95% 2.16% 2.01% Government Catering Food Shoes/leatherwear Ladieswear Mens wear Childrens wear Mixed wear Gifts Interior decoration Leasure and miscellaneous Beauty & Bodycare Services Supermarkets Financials Multinationals IT sector Geographical breakdown (as a % of rental income) 36% 9% 11% 16% 16% Brussels Vilvoorde Berchem-Antwerpen Nivelles Tournai Liège 12%

19 jaarverslag 2005 ENG :40 Pagina Description of the portfolio Investment portfolio Shopping centres Belle-Ile Commercial Centre 1 Quai des Vennes, 4020 Liège Year of construction: 1994 Location: Belle Ile is located to the Southeast of Liège, by the Autoroute des Ardennes - E25 Rentable area: 31,252 m 2 rentable floor area The shopping centre houses 99 shops Parking: 2,200 spaces Shopping centre Nivelles, 18 Chaussée de Mons, 1400 Nivelles Year of construction: Renovation: 1995 Location: The Nivelles Shopping Centre is located on the outskirts of Nivelles, at the Nivelles-Sud exit of the E19 motorway between Brussels and Paris Rentable area: 19,501 m 2 rentable floor area (including 3,998 m 2 retail warehouses) The shopping centre houses 61 shops Parking: 802 spaces Les Bastions Shopping Centre, 22 Boulevard Walter de Marvis, 7500 Tournai Year of construction: Renovation: 1996 Location: The Les Bastions shopping centre is situated along the ring road around Tournai Rentable area: 14,178 m 2 rentable floor area (including 2,997 m 2 retail warehouses) The shopping centre houses 58 shops Parking: 1,260 spaces

20 jaarverslag 2005 ENG :40 Pagina 20 Real estate expert report Property portfolio analysis Resolutions of the real estate expert TROOSTWIJK-ROUX C.V.B.A., prepared on December 31, 2005, following the valuation of the property portfolio at December 31, 2005, as referred to in article 56, paragraph 1, of the Royal Decree of April 10, 1995 with respect to real estate investment funds. 44% of the property holding consists of offices and 56% consists of commercial properties. At December 31, 2005 the fair value of the portfolio of Wereldhave Belgium amounted to EUR 320,250,000 consisting of: Evaluation principles for the property portfolio The valuation has been carried out in conformity with IVS and EVS. Offices: EUR 140,150,000 Retail: EUR 180,100,000 Brussels, December 31, 2005 TROOSTWIJK - ROUX C.V.B.A. Investment Properties Investment properties are valued at fair value. Fair value is based on the market rent minus the operating costs. To determine the fair value, the net capitalisation factor and the net present value of the difference between market rent and contractual rent, of forecasted vacancy and of necessary future investments are determined for each object. This value is reduced by the standard transaction costs (registration tax 10% %, estate agent s fees 1.2% and solicitor's fees 0.2%, i.e. 11.4% % in total). Development portfolio The valuation of development portfolio is based on the cost price or the estimated lower fair value. The cost price includes the costs for contracted but not yet completed operations and capitalised interest. The value is based on an inspection carried out by one or more chartered surveyors, taking into account the location, construction type, zoning requirements and maintenance status at the time of assessment. The valuations are also based on data supplied by the client and/or third parties if necessary, which we assume to be correct.

21 jaarverslag 2005 ENG :40 Pagina Consolidated Annual Accounts 2005 Contents Consolidated balance sheet 22 Consolidated profit and loss account 23 Consolidated summary of movements in equity 24 Consolidated cash flow statement 25 Notes to the consolidated annual accounts 01. General information Fiscal status Accounting policies Transition to IFRS Direct and indirect result Segment information Investment properties Other tangible assets Trade receivables and other non current assets Current financial assets Current receivables Cash and cash equivalents Share capital Loans Provisions Group Insurance Other long term liabilities Other short term liabilities Securities Rental income Property charges General expenses Valuation differences Financial result Taxes on result Result per share Dividend Risks Internal risk control and monitoring system Claims Related Group companies Events occured afterthe financial year 47 Auditors report 48 Extract of the statutory annual report 50

22 jaarverslag 2005 ENG :40 Pagina 22 Consolidated balance sheet at December 31, 2005 (amounts x EUR 1,000) Assets Notes I Non-current assets C Investment properties 7 319, ,194 E Other tangible assets F Trade receivables and other non-current assets 9 4,627 4, , ,146 II Current assets B Current financial assets available for sale 10 8,197 6,535 D Trade receivables E Tax receivables and other current assets ,386 F Cash and cash equivalents 12 3,135 6,258 11,845 14,329 Total assets 336, ,475 Equity and liabilities Equity I Shareholder s equity A Capital , ,969 D Reserves Reserves available for distribution 5,627 5,627 E Result Retained result 72,662 70,149 Result of the financial year 28,688 22,271 G Change in fair value of financial assets and liabilities 1, , ,231 Liabilities I Non-current liabilities A Provisions 15/ E Other non-current liabilities II Current liabilities D Trade debts E Other F Accrued charges and deferred income 18 1,876 2,596 2,417 3,091 Total equity and liabilities 336, ,475