Belgian asset management company Befimmo has said it is upbeat about 2007 following a substantial increase in the value of its portfolio in the last 12 months. The company reported net result of EUR 65,989 mln for the book year compared with EUR 64,852 a year earlier.
Belgian asset management company Befimmo has said it is upbeat about 2007 following a substantial increase in the value of its portfolio in the last 12 months. The company reported net result of EUR 65,989 mln for the book year compared with EUR 64,852 a year earlier.
Analysts at merchant bank Kempen & Co said recurring cash flow and the revaluation result were below expectation. Gross rent for the year 2005/06 was slightly lower than anticipated at EUR 76.3 mln. This was 3.7% down on the year before. The decrease in gross rent income was due to the disposal of the Borschette and Chareloi properties at the beginning of the fiscal year.
The recurring cash flow result of EUR 47.8 mln - equivalent to EUR 4.87 per share - implied a decrease of 4.3 % year-on-year, Kempen & Co said. This number was cut due to higher than expected costs incurred for the Belgium Sicafi deal.
Befimmo and Axa Belgium mounted legal challenges recently to force the Belgian government to suspend its decision to award rival property company Cofinimmo the contract for the new closed-ended real estate investment company (Sicafi) that will manage a EUR 1.2 bn portfolio of public buildings.
