Cofinimmo sees modest valuations decline

Cofinimmo, the largest real estate investment trust in Belgium, has said its diversified portfolio recorded a drop in fair value of 1.96% in 2008. The valuation decline coupled with changes in the IAS 39 valuation of interest rate hedging instruments led to a net loss of EUR 14.85 mln at end-December 2008, compared to a profit of EUR 142.5 mln a year earlier.

The firm's EUR 3 bn portfolio comprises Brussels office properties, nursing homes in Belgium and France and pubs in Belgium and the Netherlands. 'Compared to the price surges experienced in a large number of European markets in recent years, which have been reflected in the valuations, the valuation of the Cofinimmo portfolio undertaken by independent real estate experts, has therefore remained far more stable and - retrospectively - are more prudent,' the company said.

Cofinimmo said the value changes had no impact on either cashflow or dividend distribution. Disregarding the two elements, the firm's net result was stable at EUR 7.56, compared to EUR 7.54 a year earlier. The company reported the portfolio grew by 12.1% in 2008. The rental level on a like-for-like portfolio basis (+2.6%) enabled a property result of EUR 198.43 mln (+27.8%) to be recorded, which is well up on the forecast made at the start of the financial year. The occupancy rate of the portfolio reached 97.85% at end 2008. The operating result mln also surged 30.6% to EUR 170.57.

Confirming gross dividend of EUR 7.80 for 2008, Cofinimmo said its 2009 results should be similar to 2008.