COVID-19

COVID-19 AND ITS EXPECTED IMPACT ON CARE PROPERTY INVEST

The outbreak of the coronavirus in early 2020 and the related measures to contain the virus could potentially have an impact on the financial performance in 2020 and the valuation of certain assets and liabilities in the medium term. In Europe, and in other countries around the world, the virus is clearly on the rise again, forcing several countries to adopt stricter measures. These measures will undoubtedly have an impact on the operation of residential care centers. However, governments will continue to provide financial compensation to affected residential care centers, which will rather limit the financial impact for the Company. As a result, the Company may need to include material adjustments in its figures during the 2020 financial year. 

For a permanent update on the impact of Covid-19 on the Company, we refer to the Covid-19 section on our website (http://carepropertyinvest.be/en/investments/covid-19/).

1.IMPACT ON THE GLOBAL RESULT STATEMENT

1.1 Rental income

Care Property Invest currently has no backlog of contractual rent payments due as a result of the COVID-19 crisis, nor any rent-free periods or rent reductions granted to its tenants.

1.2 Result and dividend per share

Despite the outbreak of the virus, in its Half-yearly financial Report Care Property Invest increased its guidance for the adjusted EPRA earnings per share from €0.93 to €0.96 as was announced in the press release published on 18 March 2020 for the 2020 financial year. The dividend remains unchanged at €0.80. Care Property Invest confirms this increase and recalls that the dividend for the 2020 financial year is split into 2 coupons: coupon no. 12 (representing an amount of €0.32) and coupon no. 13 (representing an amount of €0.48).

2. IMPACT ON THE BALANCE SHEET

2.1 Valuation of the property portfolio

The valuation reports of the external independent valuation experts over the third quarter for the entire portfolio of investment properties show a global constant trend. Therefore, there is no downward revaluation on the portfolio of investment properties as a result of the COVID-19 crisis in the third quarter at all. 

2.2 Debt ratio

As at 30 September 2020, the debt ratio of Care Property Invest was 46.73%. The available space up to a debt ratio of 60%, which Care Property Invest has agreed upon in covenants with its credit providers as the maximum debt ratio, amounts to €246 million. The principal amount of loans still to be repaid in the fourth quarter of 2020 only amounts to €30.8 million of which €0.8 million actually has to be repaid and the remainder can be rolled over at the Company’s request..

Care Property Invest has an MTN programme of €200 million. As at 30 September 2020, Care Property Invest had €103.5 million outstanding as commercial paper, more than 100% of which was covered by specific associated back-up lines. Care Property Invest would like to point out that it can still roll over commercial paper at the usual margins.

As at 30 September 2020, Care Property Invest has approximately €190 million of confirmed undrawn credit lines and cash and cash equivalents at its disposal. The fact that Care Property Invest still has access to additional credit facilities proves the confidence that credit providers have in Care Property Invest, its activities and its management.  

2.3 Developments included in the balance sheet

The Company’s development pipeline includes several projects in The Netherlands and 1 project in Spain.

Construction activities have continued in The Netherlands since the outbreak while respecting the measures imposed by the Dutch government to contain the COVID-19 virus. The delays specifically caused by the COVID-19 crisis remain difficult to quantify but seem rather limited. The delivery of a large number of projects is foreseen in the coming months and therefore these will contribute to an increase in rental income. The project in Spain was recently launched and is currently on schedule. The Company closely monitors the projects and communicates in a timely manner if certain deadlines are not met.

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COVID-19