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RISK FACTORS
DESCRIPTION OF THE RISK POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
Non-compliance with RREC
regime
1. Loss of approval as RREC and the
associated fiscal transparency regime
(exemption from income tax at RREC level/
taxation at shareholder level).
2. Compulsory early repayment of certain
loans.
Professionalism of the teams ensuring rigorous compliance with the
obligations.
Non-compliance with SIIC
or FBI regime
Loss of the fiscal transparency regime.
Professionalism of the teams ensuring rigorous compliance with
obligations.
Unfavourable changes
to the RREC, SIIC or FBI
regimes
Fall in the results or the net asset value.
Regular contact with public authorities. Participation in organisations and
federations representing the sector.
Changes to town-
planning or environmental
legislation
1. Reduction in the fair value of the property.
2. Increase in the costs to be incurred to be
able to operate a property.
3. Unfavourable effect on the capacity of the
Group to operate a property.
Active energy performance and environmental policy for the offices,
anticipating the legislation as far as possible.
Changes to the social
security system for
healthcare real estate:
reduction in social
security subsidies to the
operators not offset by
an increase in the prices
paid by residents or by
the intervention of private
insurers. In Belgium, since
01.07.2014, transfer of
responsibilities in terms
of healthcare and care
of elderly people from
the Federal level to the
Communities’ level.
Impact on the solvency of healthcare real
estate operators.
Annual solvency analysis of the operators on the basis of regular financial
reporting.
Monitoring of the regulatory trends.
LEGISLATION
Cofinimmo benefits from a favourable tax regime (RREC in Belgium, SIIC
in France, FBI in the Netherlands) which exempts it from corporate tax
in return for an obligation to distribute 80%
1
(Belgium), 95% (France)
2
or
100% (Netherlands) of its profits (see pages 219 and 221).
Apart from the obligations relating to company law, the company is
also required to comply with the legislation on listed companies. It is
also subject to the specific town-planning and environmental protec-
tion legislation.
1
RRECs communicate a dividend policy corresponding to an amount per share. This amount per share can be higher than or equal to 80% of the net income as required by the Royal
Decree of 13.07.2014.
2
Obligation to distribute 95% of its profits arising from the letting of property assets as from 2014.
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