Ifrs Annual Report 2017
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ANNUAL REPORT DECEMBER 31 2017 Extensa Group NV Havenlaan/Avenue du Port 86C b316 ∙ 1000 Brussel/Bruxelles T +32 2 237.08.20 ∙ F +32 2 237 08 21 extensa.eu ∙ [email protected] LETTER OF THE CEO FINANCIAL OVERVIEW 2017 Extensa Group realized an historically-unequalled net result of 75 M€ in 2017, which in turn exceeded the very good 2016 result of 40 M€. Tour & Taxis realized a margin of 17 million euros, generated by the rental and management of properties (such as the Sheds, Hôtel de la Poste, car parks), the sale of apartments in the Gloria residence, and the last contribution of the VAC De Meander project (Herman Teirlinck office property), which was delivered to the tenant (Flemish Government) on a long-term lease basis and eventually sold to Bâloise Group. In Luxembourg, Cloche d’Or realized a margin of 27 million euros, generated by two office projects under construction and the sale of apartments. The balance sheet total decreased from 654 million euros at year-end 2016 to 412 million euros at year-end 2017, primarily due to the disposal of the shares in VAC De Meander and the payment of an exceptional dividend to its shareholder. The equity decreased from 248 million euros at year-end 2016 to 184 million euros. Extensa Group sold its 29.3% interest in Leasinvest Real Estate to Ackermans & van Haaren in 2017 and subsequently paid a dividend of 157 million euro, which explains the significant reduction in Extensa’s equity. OPERATIONAL OVERVIEW 2017 Urban development projects The special zoning plan (BPA/PPAS) for the entire Tour & Taxis site in Brussels was approved in June 2017, creating a clear legal framework for the further development of the site. The Herman Teirlinck office building (48,096 m² gross area) was delivered to the Flemish Government in August 2017. This energy-efficient building is fully operational as the new Flemish Administrative Centre in Brussels. In November 2017, Extensa Group finalized the sale of the project company to Bâloise Group. The gross contribution is recognized according to percentage of completion of the building (2015-2017) and amounted to 11 million euros in 2017. Extensa Group used the proceeds of this sale to repay the outstanding balance of the bridge loan of 75 million euros which it had taken out at the beginning of 2015 to increase its stake in Tour & Taxis by 50%. The 115 apartments of the Gloria residence, the first apartment building on the Tour & Taxis site, was completed in the first quarter of 2017. By the end of 2017, all but one residential units were sold. Planning permission for the rest of the residential quarter and for the ‘Gare Maritime’ is still pending and is expected in 2018. The renovation of the existing structure of the ‘Gare Maritime’ has started and will be completed in the second quarter of 2018. This former freight station (~ 40,000 m² floor area) will be the new focal point of the Tour & Taxis site, and combining work space, thematic retail stores and a food court. By the end of 2017, prospective tenants had signed letters of intent for approximately 40% of the office spaces. Across the canal on the Willebroekkaai, Extensa Group launched construction works of the Riva project (139 apartments) benefiting from a direct view on the canal and the Royal Depot of Tour & Taxis.Reservations concluded with potential buyers will probably enable Extensa to fund the project without bank credits. The construction of the new Picard Bridge funded by Beliris will begin in the second quarter of 2018. In the context of the Cloche d’Or project, Grossfeld PAP (Extensa Group has a share of 50%) has purchase options on very well-located sites in the south of Luxembourg city. The construction of the two new boulevards by the city of Luxembourg and the Luxembourg state is on schedule. Parts of the new roads are already open to the public. Apartments presales began in October 2014. By the end of 2017, 803 housing units were sold (88% of the program), which definitely exceeded expectations set at project inception. Construction works for the last phase have been triggered so that the whole of the îlot A program should be entirely delivered by 2020. Development margins are being recognized according to percentage of completion. Construction works related to the headquarters of Alter Domus (10,500 m²) and Deloitte Luxembourg (30,000 m²) are also on schedule. Their completion is foreseen for the second semester of 2018. In March 2018, an agreement regarding the sale of the Deloitte project has been signed with Ethias and L’Intégrale. Developments and residential projects in Belgium Several projects are currently going through building permit administrative procedures. In Flanders, the portfolio includes projects located in Edegem, Schilde, Wuustwezel, Kapellen, Brasschaat, Zoutleeuw, Roeselare and Leuven. The land parceling permit related to the Groeningen project in Kontich (totaling 650 houses and/or apartments) was approved by the local city authorities, but is now under appeal by third parties. In Wallonia, planning procedures for the projects in Wavre, La Hulpe and Tubize continue. All apartments of the inner-city project ‘De Munt’ in Roeselare (Extensa Group has a share of 50%) have been delivered. The sale of the last-phase apartments will probably continue throughout 2018. Slovakia, Romania, Turkey In Trnava, Slovakia, Top Development (Extensa Group has a share of 50%) continues to manage its retail park (7,730 m²) and is considering the sale of its energy network in 2018. Further sales or developments of the available sites are under investigation. In December 2017, after years of litigation, Extensa Group became full owner of the land positions in Romania (which were previously held in a 50% joint venture), so that development can progress. In Turkey, the building permission with respect to the construction of 250 apartments in the Topkapi (greater Istanbul) area is expected towards the end of 2018. Real estate investments At year-end 2017, apart from the heritage buildings on the Tour & Taxis site, four other properties with a total carrying value of 11 million euros remained in the real estate investment portfolio. One of those other properties will be sold in the first half of 2018. The others remain fully let. OUTLOOK 2018 The current projects on Tour & Taxis and Cloche d’Or will continue to support the results in 2018 and subsequent years. CONSOLIDATED FINANCIAL STATEMENTS OF EXTENSA GROUP NV DECEMBER 31 2017 CONSOLIDATEDX0A0T FINANCIAL STATEMENTS OF EXTENSA GROUP NV Consolidated Statement of Financial Position Consolidated Statement of Profit & Loss Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows INDEX TO THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 General information 2 Application of new and revised International Financial Reporting Standards 3 Summary of significant accounting policies 4 Critical accounting judgements and key sources of estimation uncertainty 5 IFRS 1 Equity reconciliation 6 Property, plant & equipment 7 Investment properties 8 Investments in associates and joint ventures 9 Finance lease receivable 10 Income taxes 11 Inventories 12 Amounts due from customers under construction contracts 13 Trade and other receivables 14 Cash and cash equivalents 15 Financial liabilities 16 Trade and Other payables 17 Provisions 18 Revenue 19 Property rental income 20 Other operating income 21 Property development expenses 22 Employee expenses 23 Other operating expenses 24 Finance income 25 Finance expenses 26 Financial instruments 27 Segment reporting 28 Related party transactions 29 Subsidiaries 30 Capital commitments 31 Earnings per share 32 Contingencies 33 Events after the reporting period INDEPENDENT AUDITORS' REPORT X1A0T Consolidated Statement of Financial Position as at 31 December 2017 All figures in Euro Notes 31/12/2017 31/12/2016 1/01/2016 ASSETS Non-current assets 97.182.934 333.532.056 231.246.778 Intangible assets 468.196 23.564 28.828 Property,X1A1T plant & equipment 6 1.262.888 439.217 548.527 InvestmentX1A2T property 7 61.004.552 206.894.652 108.001.869 InvestmentsX1A3T in associates and joint ventures 8 28.204.146 120.275.313 116.270.081 Financial fixed assets 9.050 23.486 123.191 FinanceX1A4T lease receivable 9 4.895.752 5.466.834 6.014.282 DeferredX1A5T tax assets 10 1.338.350 408.990 260.000 Current assets 311.669.806 320.791.159 328.467.493 InventoriesX1A6T 11 180.026.737 152.578.601 156.248.442 AmountsX1A7T due from customers under construction contracts 12 20.358.855 54.012.334 81.475.378 TradeX1A8T and other receivables 13 81.109.511 80.133.776 51.172.986 Finance lease receivable 9 571.083 547.447 524.175 Current tax assets 10 634.719 475.321 666.800 Cash and cash equivalents 14 28.374.197 32.852.454 38.224.164 DeferredX1A9T charges and accrued income 594.704 191.226 155.548 Assets held for sale 7 3.500.000 - - TOTAL ASSETS 412.352.740 654.323.215 559.714.271 EQUITY 183.745.620 248.233.635 213.738.576 Equity Group Share 163.665.962 242.560.277 205.388.336 Issued capital 15.939.028 15.939.028 15.939.028 Consolidated reserves 144.851.277 226.486.238 186.288.132 Cash flow hedging reserve - - 13.014.879 - 10.000.795 Available for sale reserve - 11.225.866 12.155.687 Foreign currency translation reserve 2.875.657 1.924.024 1.006.284 Non-controlling interests 20.079.658 5.673.358 8.350.240 LIABILITIES Non-current liabilities 170.089.841 158.470.714 222.837.853 Provisions 8, 17 9.228.378 5.357.917 4.962.506 Deferred tax liabilities 10 31.284.665 49.206.722