Annual Report 2014
Annual Report 2014 Table of contents 2
Preface by the Chairman
4
Rabo Real Estate Group in 2014
4
Highlights
4 Management and supervision as at 31 December 2014 5
Organisational chart
6
Key figures
8
Market developments 2014
12
Internal developments in 2014
13
Personnel
13
Banking Code
16
Main activities of Rabo Real Estate Group
20
Financial policy and results
21
Risk management
23
Market outlook for 2015
24
Future
26
Consolidated statement of income
27
Consolidated statement of financial position
28
Consolidated statement of cash flows
30
Contact details
2
Rabo Real Estate Group Annual Report 2014
Preface by the Chairman
2014 was a multifaceted year for Rabo Real Estate Group. The BPD (Bouwfonds Property Development) and Bouwfonds IM (Investment Management) divisions closed the year with a profit, whereas FGH Bank was still experiencing considerable difficulties in the wake of the crisis and had to make substan tial provisions. As this put severe pressure on the result of Rabo Real Estate Group as a whole, we were unfortunately unable to return to black figures. Nevertheless, the result is significantly better than in 2013 and signals our return to an upward trend. The Dutch economy continued its uphill struggle in 2014, although the recovery was still fragile. Exports grew, labour market conditions improved and consumer and producer confidence was on the rise, which also boosted spending and investments. This was clearly noticeable in the residential market in particular; BPD sold nearly twice as many homes in the Netherlands in 2014 as in 2013. Commercial real estate did not yet benefit from the positive economic sentiment and is still a source of concern. The office market only saw proper performance of prime locations and the retail market experienced increasing vacancies, especially outside the core shopping areas.
Our aim is to prepare Rabo Real Estate Group’s business units for the future. Whether we will be successful hinges on our ability to achieve the required returns and recoup the capital injection we received from our shareholder Rabobank in early 2014. The decision to accelerate the phase-out of MAB Development is in line with this aim. Projects were sold or placed elsewhere within Rabo Real Estate Group, allowing us to retain the knowledge and expertise for these projects. One of Europe’s largest transactions in 2014 was the sale of PalaisQuartier, our most sizeable real estate project in the portfolio, which produced a marked book profit. The other business units also took major steps on the road to a resilient future. Bouwfonds Property Development will continue under the name BPD, positioning itself as an area developer that creates living environments in the Netherlands, France and Germany. Creating living environments, that is its distinctive power. BPD possesses the knowledge and expertise to help local governments connect with future residents and, time and time again, has proved capable of
From left to right: Jaap Gillis, Walter de Boer and Carolina Wielinga
3
translating their needs and desires into sustainable and thriving neighbourhoods. At the end of 2014, shareholder Rabobank decided to integrate FGH Bank into Rabobank. This decision was aligned with the strategy and cultural shift by Rabobank, which is designed to shape ‘one Rabobank’. The expertise that FGH Bank gathered will be carried forward to a real estate centre of expertise within Rabobank that is yet to be set up. FGH Bank’s Chairman of the Management Board Peter Keur stepped down with effect from 1 February 2015. We would like to express our appreciation of his longstanding dedication and commitment to the activities of FGH Bank and Rabo Real Estate Group. In 2014, Bouwfonds IM embarked on a strategic reorientation, focusing on real assets. Bouwfonds IM’s non-strategic activities will be phased out. Public Fund Management Netherlands also started a strategic reorientation in 2014, resulting in an agreement in principle in early 2015. Public Fund Management Netherlands will continue as a stand-alone company under this agreement. In 2015 Headquarters will start to be transformed into a financial holding company. Regrettably, the accelerated phase-out at MAB Development and the strategic reorientation at other divisions necessitated the departure of a substantial number of colleagues in 2014. A suitable social plan was drafted for them to support them in finding a new job as much as we can – which is facilitated by improved labour market conditions – and provide them with a financial safety net.
Economic recovery is expected to continue in 2015. Despite international political uncertainty, the outlook in the Netherlands, Germany and France seems positive. In the Netherlands, the weakening of the euro will boost exports and low interest rates are encouraging companies and consumers to invest and consume. Our business units will reap the benefits.
Hoevelaken, 11 May 2015 Jos van Lange, Chairman of the Board of Directors, Rabo Real Estate Group
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Rabo Real Estate Group Annual Report 2014
Rabo Real Estate Group in 2014
Highlights Net profit from continued operations
€ 40 million
Net profit from discontinued operations*
-/- € 226 million
Return on equity
-/- 17.8%
Number of homes sold in the Netherlands and abroad
7,064
Assets under management
€ 6.4 billion
* On 8 December 2014, Rabobank decided to integrate FGH Bank into Rabobank. The consequence of this decision is that FGH Bank’s net profit is presented as a ‘discontinued operation’. The comparative figures for 2013 have been adjusted accordingly.
Management and supervision as at 31 December 2014 Board of Directors
Supervisory Board
J.H.P.M. (Jos) van Lange, Chairman
L.C. Brinkman, Chairman
C. (Carolina) Wielinga, Chief Financial & Risk Officer
J.L. van Nieuwenhuizen
W.P. (Walter) de Boer, BPD
L.M.J. van Halderen
J.C.M.A. (Jaap) Gillis, Bouwfonds Investment Management P.C. (Peter) Keur, FGH Bank, (until 1 February 2015)
5
Organisational chart as at 31 December 2014
Development Residential
Development Commercial Property
Finance
Investment Management
Public Fund Management
HOLDING
Organisational developments • MAB Development’s office in The Hague was closed on 31 March 2015. The remaining projects are now managed elsewhere within Rabo Real Estate Group. • The decision of 8 December 2014 and the share transfer on 31 March 2015 resulted in FGH Bank ceased being a member of Rabo Real Estate Group. • Based on the agreement in principle dated 3 March 2015, Public Fund Management Netherlands will continue as a stand-alone company. A definitive agreement is expected to be concluded later this year.
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Rabo Real Estate Group Annual Report 2014
Key figures Result* 2014 2013 Net result from continued operations Net result from discontinued operations
€ million 40 (658) € million (226) (200)
Financial position Shareholders’ equity
€ million
1.040 803
Ratios Return on equity % (17.8) (71.7) Tier 1 ratio % 6.9 4.7 BIS ratio % 6.9 4.7 RAROC % (9.6) (47.9)
Production Homes sold (including third-party projects)
number
7,064 5,169
€ million € million
6,429 3,117
Portfolio Assets under management Sustainable social assets under management
5,867 3,010
Development portfolio number
75,000 72,000
FTEs number – The Netherlands – Other countries
1,656 1,681 1,133 1,128 523 553
Total number of employees number – The Netherlands – Other countries
1,809 1,824 1,250 1,239 559 585
Residential
Personnel
* On 8 December 2014, Rabobank decided to integrate FGH Bank into Rabobank. The consequence of this decision is that FGH Bank’s net profit is presented as a ‘discontinued operation’. The comparative figures for 2013 have been adjusted accordingly.
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Rabo Real Estate Group Annual Report 2014
Market developments 2014
2014 was a year of contrasts. In the wake of a slight recovery in the Dutch economy, the residential market in the Netherlands rebounded as well. Recovery in the development market was hesitant and will not truly gain momentum until there is more growth in the economy. There was a clear recovery in the investment market with lower prices and increasing yield prospects adding to the Dutch investment market’s appeal to (foreign) investors. The property finance market, by contrast, is late-cyclical and still suffered from the challenging market conditions as a result.
Residential market The Netherlands: rapid but fragile recovery The residential market developed vigorously from the start of 2014. Helped by a number of tax changes and more stringent funding criteria in 2015, December 2014 saw an unprecedented final dash. The transaction volume in the market of existing homes was up 39% from a year earlier as the total number of existing homes sold in 2014 climbed to around 153,000. At the same time the ample supply of existing homes dropped by some 20,000 homes, still leaving 200,000 homes for sale at year-end 2014. This was equal to the level of 2011. Growth was not limited to the transaction volume alone; prices, too, rose in 2014, gaining around 2% at the end of December compared to the previous year. The price hike was not manifest in all regions of the Netherlands, but was concentrated mainly in the Randstad conurbation and in the large cities in particular. For instance, annual base prices in Amsterdam rose by approximately 8% in the final quarter and roughly 4% in Utrecht. The recovery was even more evident in the sale of new built houses homes. In 2014 some 26,000 new homes were sold, an 80% increase relative to 2013. As consumers are increas ingly taking a long-term perspective when purchasing a home, new build is gaining in popularity. The number of building permits issued also increased strongly in 2014
(+50%), but with 39,000 permits, was still at a low level. Nevertheless, this is an indication of further recovery. Various factors contributed to the rebound in the residential market. After many years there is now policy certainty: painful measures have been taken, but buyers and homeowners know where they stand in the years to come. The temporary gift tax exemption provided some support, although the market for newly built homes has only benefited from this to a limited extent. The measure will be cancelled in 2015. Mortgage rates also reached a record low and, combined with the low price level, translated into a relatively high affordability of homes. What is more important is the economy; but with economic growth in the eurozone still very subdued, it is also the economy that lies at the root of the fragility of the recovery. Geopolitical unrest also left its mark on the economy. Germany: residential market remains healthy The residential market showed positive developments in most German regions. Demand for homes seems to be stabilising in the expensive market segment (> € 4,000/m²), but prices are not dropping yet. There was an extremely high demand for homes in the mid-price range, but insufficient supply due to high land prices. Homes in the cheap segment ( € 100 million
accommodation in established European university cities. In 2014, € 110 million was raised from new German institutional investors for the further growth of the Fund. The total portfolio under management now amounts to more than € 100 million, excluding new developments purchased that will be constructed in the years to come. In 2014 the Bouwfonds European Student Housing Fund, together with two other European housing funds managed by Bouwfonds IM, invested in the development of ‘De Admiraliteit’ in Rotterdam. ‘De Admiraliteit’ in Rotterdam De Admiraliteit is an office building consisting of three connected 12-storey towers. We are converting this building into a residential complex containing a total of 374 studio flats and 213 apartments. The building is centrally located at Admiraliteitskade in Rotterdam, close to Rotterdam Central Station and Erasmus University. The total investment volume is € 52 million. The Bouwfonds European Student Housing Fund purchased tower C for over € 20 million, which tower will be transformed into 263 studio flats and 5 apartments.
19 Specifications Project ‘De Admiraliteit’ in Rotterdam Assets Student homes Target group Institutional investors Fund volume > € 100 million
Specifications Project Mahler Car Park Assets Car Parks, Target group Institutional Investors Fund volume € 130 million
Bouwfonds European Real Estate Parking Fund II Car parks are essential for the attractiveness, quality and efficient infrastructure of a city centre. The Bouwfonds European Real Estate Parking Fund II (BEREPF II), managed by Bouwfonds IM, invests in car parks located in densely populated and economically strong cities that have a stringent and properly enforced parking policy in place, which car parks are an integral part of material economic activities: work, retail trade, leisure and/or private housing. The portfolio growth of BEREPF II exceeded € 100 million in 2014, largely driven by the acquisition of the Mahler Car Park in Amsterdam. This car park was purchased in a joint transaction with the recently introduced third institutional parking fund of Bouwfonds IM. Mahler Car Park Providing 1,775 parking spaces, Mahler Car Park in Amsterdam is one of the largest car parks in the Netherlands. It is situated at the heart of the Amsterdam Zuidas business district. Six high-quality office towers are found above the car park. Bouwfonds IM acquired the car park from Q-Park (transaction volume of roughly € 130 million), with Q-Park continuing to operate the car park under a long-term lease (25 years).
Specifications Fund Bouwfonds European Real Estate Parking Fund II
Assets Car parks (Europe) Target group Institutional investors Fund volume > € 100 million
Growth of assets under management The assets under management at Bouwfonds IM rose by € 0.5 billion to € 6.4 billion in 2014. Especially the Bouwfonds European Student Housing Fund and the Bouwfonds European Real Estate Parking Fund II showed strong growth.
Other activities of Rabo Real Estate Group In view of the decisions mentioned above, property finance and commercial property development activities no longer qualify as main activities.
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Rabo Real Estate Group Annual Report 2014
Financial policy and results
Financial policy From its perspective of properly serving its clients, Rabo Real Estate Group wants to generate future-proof required returns that are in line with Rabobank’s risk profile. The performance contract contains detailed strategic objectives, both for Rabo Real Estate Group as a whole and for its individual business units. These lead to strategic, operational and financial commitments aimed at value creation.
Financial results On 8 December 2014, Rabobank decided to integrate FGH Bank into Rabobank. The consequence of this decision is that FGH Bank is presented separately in the financial statements as ‘held for distribution to owner’. The profit from continued operations, property and area development (BPD) and investment management (Bouwfonds IM) is € 40 million for 2014, against a loss of € 664 million for 2013. The positive developments in the Dutch residential market helped BPD to conclude 3,985 housing transactions in 2014, compared to 2,160 transactions in 2013. The number of
housing transactions in Germany rose to 1,126 (2013: 930). The French residential market is dominated by uncertainties regarding subsidised rental homes and Internal Investement Portfolio leading to a decline in the number of housing transactions to 1,939 (2013: 2,036). A few housing transactions were concluded in countries other than the Netherlands, Germany and France, creating a total of 7,064 realised transactions against 5,169 in 2013, up 37%. Unlike in 2013, downward revaluations of land and land development were limited in 2014 and the downward revaluations of commercial property positions were less substantial. The total amount of value adjustments was € 38 million in 2014, compared to € 586 million in 2013. Furthermore, PalaisQuartier was sold with a marked book profit in 2014. Bouwfonds IM made several acquisitions for the various funds in 2014 and several fund initiatives are still being prepared. Assets under management rose by € 0.5 billion to € 6.4 billion in 2014. FGH Bank’s result for 2014 was € 226 million negative, against € 200 million negative for 2013. The costs of credit losses clearly reflected the late-cyclical nature of the property finance market. On balance € 574 million was added to the loan provisions and charged to the result in 2014 (2013: € 506 million).
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Risk management
Risk management is an integral part of operations even more so than before. The Board of Directors bears ultimate responsibility for the implementation of risk management policy. Market and credit risks that are assumed or are to be eliminated are submitted to bodies for approval on the basis of a layered approval structure. The risk is tested against a system of limits laid down in the Risk Appetite Statement. The customer interest, operational risk and reputation risk of new products are assessed before they are launched to the market. Existing products are periodically assessed regarding these risks as well. The approval structure is directly linked to the Risk Appetite Statement and credit policy of Rabo Real Estate Group, both of which were tightened in 2014. As part of this process, clear arrangements were made on the provision and management of loans by BPD and Bouwfonds IM, and a more important role was assigned to Rabobank’s Credit Risk Management and Special Assets Management departments. Due to market conditions, new investments and loans were limited in 2014. However, it is not just individual investment and credit proposals that are tested for compliance with risk appetite, as the strategies of Rabo Real Estate Group and its divisions were also brought in line with the Risk Appetite Statement in 2014. MAB Development no longer develops commercial real estate. FGH Bank partly phased out its exposure to Special Assets Management and Bouwfonds IM seizes opportunities to divest its non-core activities. The demerger scenario for Public Fund Management Netherlands was also a point of focus. Where the management of certain exposures is not a core activity of the relevant division but divestment is not possible, the positions are transferred to other Rabo Real Estate Group business units. The Board of Directors is advised by the Balance Sheet & Risk Management Committee (BRMC) in the area of risk management policy. This committee, which meets every month, comprises the CFRO of Rabo Real Estate Group and
the CFROs of the business units, supplemented with representatives of Treasury, Risk Management and Control. Taking into account policymaking and the management of risk limits, the BRMC monitors balance sheet risks, compliance with operational risk management policy and capital management every month. The functional lines between the risk management depart ments of the divisions and Headquarters were reinforced in 2014. Headquarters assesses the quality of risk management within divisions, in terms of both methods and organisation, which has improved the quality of non-financial risk control. In the area of controlling non-financial risks, Rabo Real Estate Group worked on demonstrably complying with its operational risk management policy and on improving its effectiveness. The risk analysis component of this policy in particular is increasingly supported by the integrated business control framework. Benchmarking the existing control framework resulted in an improvement programme in 2014. The measures mitigating the key risks were identified within the total set of controls. All controls are tested as to their effectiveness a few times a year; the effectiveness of the key measures is explicitly reported to the Risk Management department at Headquarters. Lastly, risk reporting was a point of focus. The reports now better reflect risk management’s integrated approach and the more prominent role assigned to non-financial risks. Valuation Rabo Real Estate Group values land, work in progress and finished goods at cost, less any impairments deemed necessary. Each year, we assess whether there are any declines in value that calls for an adjustment of the carrying amount. We value investment property at fair value: the most likely price we may reasonably obtain in the market on the reporting date. We regularly have independent valuers determine the value of large and high-risk projects. Lastly, outstanding loans are reviewed at least once per year, with an opinion being reached about the value of the claim. Loans that have undergone a value adjustment are adjusted
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Rabo Real Estate Group Annual Report 2014
to the net realisable value. In short, the valuation processes are robust and include recommendations made by regulators and professional organisations. Asset Quality Review The financial crisis and the tremendous impact it had on the banking sector resulted in the establishment of the Single Supervisory Mechanism (SSM) and a sector-wide investigation into asset quality conducted by the European Central Bank (ECB). Focusing on the reference date of 31 December 2013, this Asset Quality Review (AQR) involved exposures and provisions that were already included in the 2013 financial statements. At Rabo Real Estate Group, large parts of the property and loan portfolios were subjected to review. The effect that the AQR findings have on the 2014 financial statements is especially an adjustment to the provisions for credit losses. The amount of the provisions recognised in the statement of financial position as at 31 December 2013 ensued from the credit loss method that Rabo Real Estate Group applied in 2013. This method resulted in a specific provision, a collective provision and a general provision (also referred to as IBNR) and was based on the information available, events that may lead to impairment and the models used at that time. No facts were found during the AQR that gave rise to an adjustment of the 2013 annual
figures. A significant proportion of the addition to Rabobank’s capital requirement and the provisions was taken to the 2014 statement of income through the regular provisioning process. These are mainly adjustments based on information that only became available to management in 2014 after the 2013 financial statements had been drawn up. The financial crisis triggered a more prudent approach towards credit risk. The SSM and the AQR as conducted by the ECB were accelerating factors in this respect, which will result in the introduction of more cautious and tighter loss indicators for the Rabobank business units. The corresponding provisions level was adjusted in 2014. The approach also prompted an adjustment of the parameters for the generalprovision (IBNR). Rabobank uses ‘expected loss’ (EL) as a point of departure for determining the IBNR, on which basis an adjustment is made for the period needed to recognise a loss (‘loss identification period’). In view of economic and portfolio developments, this period was extended in 2014. In 2014, the EL determination was based on more prudent principles. More information on risk control, including the use of financial instruments, can be found in the risk management section of the financial statements from page 92.
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Market outlook for 2015
2015: Continued recovery Despite a rather substantial number of uncertain factors such as international political stability, economic growth is expected to continue in 2015. Consumer sentiment is expected to become a lot more positive. The weakening of the euro may boost exports and low interest rates, too, are encouraging companies and consumers to invest and consume. As economic recovery is likely to be moderate, property markets will also recover gradually.
Residential market: mixed picture The Netherlands The recovery in the Dutch residential market is expected to continue in 2015. In 2013, we expressed our expectation that 2014 might be the year of first-time buyers. This was precisely what happened: first-time buyers benefited from the perfect moment to get onto the property ladder as prices were low and interest rates were even extremely low. But a true residential market rebound requires an increase in housing circulation. The upward trend in transaction and price levels are positive signs, but there is still a long way to go. Many households suffer from residual debts and a number of minor incentives, such as the gift tax exemption, have been cancelled. This does not alter the fact, however, that the way back up has been found.
Germany The low interest rates in Germany are expected to continue to boost growth in home sales in 2015, as more attractive investment opportunities are hard to come by for investors and buying is often cheaper than renting for private households. Prices are expected to stabilise across the board relative to 2014. The Federal Government has regulated the price hikes for rented homes in the existing stock to a limited extent by means of legislation, which will cause investors to be slightly more cautious. The upward pressure on prices in metropolitan regions led to forced agreements with developers to realise no more than 35% of their production in the affordable rent segment. France The French government now actually seems to be making an effort to introduce reforms. These are met with great resist ance, however, and the implementation of changes will not all be plain sailing. Driven by demographic developments, the demand for houses in large conurbations will continue.
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Rabo Real Estate Group Annual Report 2014
In addition, most French households have a strong financial position. For many French citizens, investing in a home continues to be major security in turbulent economic times.
Commercial real estate: investing in user value
Investors have a hard time seeking returns in Germany. Despite moderate economic growth, most of the large cities are experiencing low or dropping vacancy rates. As a result of rising prices, opportunities are increasingly seen in valueadd investments.
The commercial property market will remain wide in 2015 and is expected to stay wide in the years ahead. As there is no shortage, competition is fierce and rents are only rising on prime locations for offices, shops and commercial space. Both providers of new build and owners of existing real estate will increasingly have to stand out, which will require an active and innovative real estate policy. Providers, for example, may invest in user loyalty, e.g. by applying new technologies. Investors will have to look beyond their current focus on location quality; the future value of real estate is in those areas where location, property quality and user preferences match.
It is expected that the French economy will not show any strong growth in 2015, either. Investors will persist in their current focus on large cities, as overall trust remains limited. As in Germany, opportunities in these large cities are primarily found in value-add investments.
Investing in real estate: opportunities
Clarity about the strategic reorientation of Bouwfonds IM is expected in the first six months of 2015. The details of the demerger of Public Fund Management Netherlands will be developed on the basis of the agreement in principle reached in early 2015. BPD continues to be an important activity for Rabo Real Estate Group and Rabobank. In the context of Rabobank, Rabo Real Estate Group will continue to adapt to internal and external developments.
Low interest rates, dropping prices and a favourable economic outlook in the Netherlands make this the perfect time to invest in real estate, although the high vacancy rates in the office market as well as in the retail market are forcing investors to take a critical stance. Investors’ renewed interest in the high end of the investment market in the big cities in particular will not automatically expand to other cities and secondary real estate in the years to come. And yet, attractive distressed portfolios are still available to less risk-averse investors.
Future In 2015, Rabo Real Estate Group will relentlessly continue to prepare its various business units for the future.
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Rabo Real Estate Group Annual Report 2014
Consolidated statement of income*
For the year ended 31 December 2014
2013
Project income Fee and commission income Operating income
1,484 50 1,534
1,538 44 1,582
Cost of sales Value changes of property inventory Fair value changes in investment property Staff costs General and administrative expenses Depreciation, amortisation and other value adjustments Operating expenses
1,219 38 (38) 152 65 11 1,447
1,336 586 144 154 100 6 2,326
Result of joint ventures and associates Operating profit
(32) 55
(71) (815)
Result on financial assets and liabilities at fair value Financial income Financial expenses Result from ordinary business operations before tax
7 43 (68) 37
5 61 (102) (851)
3 40
187 (664)
Result after tax from discontinued operations
(226)
(200)
Result after tax including non-controlling interests
(186)
(864)
Result attributable to non-controlling interests Result attributable to parent company shareholder
(186)
(6) (858)
Income tax Result after tax from continued operations
* As per the 2014 financial statements, the presentation has been changed with retroactive effect. FGH Bank is presented as discontinued operation both in 2014 and in the 2013 comparative figures. In addition, the implementation of IFRS 11 led to adjustments in the presentation of joint arrangements for the comparative figures.
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Consolidated statement of financial position*
Per 31 december
Per 31 december
Per 1 januari
2014
2013
2013
2 8 175 192 152 453 72 1,054
4 48 1,037 214 323 17,357 57 19,040
4 46 1,376 201 442 17,361 84 19,514
1,971 193 225 209 109 2,707
2,023 147 285 347 489 3,291
2,365 185 59 374 457 3,440
246 16,035 20,042
301 22,632
4 22,958
1,043
810
1,606
154
150
83
1,146 13 50 1,209
12,647 283 37 12,967
14,276 456 36 14,768
1,928 32 491 2,451
8,112 8 585 8,705
5,980 17 504 6,501
Liabilities held for distribution to owner Total liabilities
15,185 18,999
21,822
21,352
Total equity and liabilities
20,042
22,632
22,958
Non-current assets Intangible assets Property and equipment Investment property Investments in joint ventures and associates Financial assets at fair value Non-current receivables Deferred tax assets
Current assets Property inventory Trade debtors Current tax assets Accrued assets Cash and cash equivalents
Non-current assets held for sale Assets held for distribution to owner Total assets
Equity Provisions Non-current liabilities Non-current debt Financial liabilities at fair value Deferred tax liabilities
Current liabilities Current debt Current tax liabilities Other current liabilities
* As per the 2014 financial statements, the presentation has been changed with retroactive effect. FGH Bank is presented as discontinued operation both in 2014 and in the 2013 comparative figures. In addition, the implementation of IFRS 11 led to adjustments in the presentation of joint arrangements for the comparative figures.
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Rabo Real Estate Group Annual Report 2014
Consolidated statement of cash flows*
For the year ended 31 December 2014
2013
37 (299)
(851) (266)
11 38 5 32 (14) 3 579 654
6 586 35 71 144 7 571 1420
60 (50) 245 (93) 60 222
(280) 39 126 (64) 36 (143)
Other changes in provisions Changes in other liabilities Income tax paid Other changes related to operating activities
(14) (100) (9) 13 (110)
(12) 37 (6) (11) 8
Changes in discontinued operating activities
994
(582)
1,498
(414)
Cash flows from operating activities Result from continued operations before tax Result from discontinued operations before tax Adjusted for: Non-cash items recognised through profit and loss Amortisation/value adjustments of goodwill Value changes of property inventory Impairment/(reversal impairment) other provisions Income of joint ventures and associates Unrealised value changes in investment property and property classified as held for sale Value adjustments to receivables Non-cash items from discontinued operations
Changes in operating assets Property inventory Trade debtors Repayments of non-current receivables Non-current receivables provided Changes in accrued assets
Changes in liabilities related to operating activities
Total cash flows from operating activities
*As from the 2014 financial statements, the presentation has been changed with retroactive effect. FGH Bank is presented as a discontinued operation both in 2014 and in the 2013 comparative figures. In addition, the entry into force of IFRS 11 led to adjustments to the presentation of joint arrangements for the comparative figures.
29
For the year ended 31 December 2014
2013
Acquisition of intangible non-current assets Purchase of property and equipment Purchase of investment property and Non-current assets held for sale Sale of investment property and Non-current assets held for sale Investments in and disposals of joint ventures and associates
(6) (2) (86) 799 6 711
(2) (84) 8 (33) (111)
Cash flows from discontinued investing activities
17 728
46 (65)
Financial assets and liabilities at fair value Non-current and current debt Dividends Capital contribution
(1,713) (2) 450 (1,265)
29 155 184
Cash flows from discontinued financing activities
(1,298)
292
Total cash flows from financing activities
(2,563)
476
(337)
(3)
Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
489 152
492 489
Cash and cash equivalents of continued operations at end of year Cash and cash equivalents of discontinued operations at end of year
109 43
395 94
Cash flows from investing activities
Total cashflow from investing activities
Cash flows from financing activities
Change in cash and cash equivalents
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Rabo Real Estate Group Annual Report 2014
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J U N E 2015
