10 – Investment property
| (€ million) |
2008 |
2007 |
| Balance as at 1 January |
5,272.0 |
|
4,442.1 |
|
| Acquisitions |
511.7 |
|
194.0 |
|
| Investments |
104.0 |
|
57.9 |
|
| Transfer from property under development |
110.0 |
|
130.0 |
|
| Sales |
-113.5 |
|
-53.7 |
|
| Revaluations |
-318.6 |
|
501.7 |
|
| Other |
-2.7 |
|
– |
|
| Balance as at 31 December |
|
5,562.9 |
|
5,272.0 |
The carrying amount of the investment property includes lease hold. The total amount in respect of lease hold for 2008 is € 13.1 million (2007: € 16.8 million). The investment properties include € 20.6 million of operating leased property.
Estimates
The appraisal of the portfolio implies a net initial yield of 6.1%. If the yields used for the appraisals of investment properties on 31 December 2008 had been 100 basis points higher than is currently the case, the value of the investments would decrease by 14%. In this situation, the company’s shareholders’ equity would be € 715 million lower. The debt ratio rises in this case from 40.1% to 45.1%.
Security
As at 31 December 2008, loans drawn down amounting to € 548.6 million (2007: € 540.0 million) had been secured by mortgaging properties with a carrying amount of € 1,305.5 million (2007: € 1,267.9 million). In 2008, the cover ratio (amount of mortgage loans/carrying amount of property) was 42.0% (2007: 42.6%).
Source: Annual Report 2008, Chapter Financial Statements, page 164 (PDF, 179 kB)
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