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 2018

  • 43.62 % LOAN-TO-VALUE

  • 45.76 % DEBT RATIO

  • 4.84 years WEIGHTED AVERAGE DEBT DURATION

  • 2.01 % AVERAGE ANNUALISED FINANCING COST

  • €1,422.4 million CONFIRMED CREDIT FACILITIES

  • 85 % FIXED-RATE DEBTS (INCL. IRS)

Financial rating

On 16 May 2018, the Standard & Poor’s rating agency confirmed the rating of BBB/outlook stable for Befimmo’s long-term borrowings and A-2 for its short-term borrowings.

Standard & Poor's

Standard & Poor’s reports