Debt information

Befimmo arranges financing sources best suited to carry out its strategy. The Company arranges the necessary finance in due time, seeking a balance between cost, duration and diversification of its financing sources. It considers that an Loan-to-value ratio of around 50% is in line with its risk-averse profile in an office market that is fundamentally quite stable. In order to protect its result and EPRA earnings against a rapid rise in interest rates above certain thresholds, Befimmo has put in place a hedging policy. The interest rate hedging policy is designed to hedge a decreasing portion of borrowings over a 10-year period. The objectives and implementation of this policy are regularly reviewed. The choice and level of instruments is based on an analysis of rate forecasts by a number of banks, and arbitrage between the cost of the instrument and their level and type of protection.

As at 31 December 2016
  • 42.33 % Loan-to-value

  • 44.65 % Debt ratio

  • 3.66 years Weighted average debt duration

  • 2.26 % Financing costs (incl. margin & cost of hedging)

  • €1,334 million Confirmed credit facilities

  • 99 % Hedge ratio

  • 72.1 % Fixed-rate debts (incl. IRS)

Financial rating

On 23 May 2017, the Standard & Poor's rating agency confirmed the rating BBB/stable for Befimmo's long-term debt and A-2 for its short-term debt.

Maturities for commitments by quarter

As at 31 December 2016