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    Stadgenoot Financial Statements 2011 Contents Consolidated financial statements 2011 Consolidated balance sheet as at 31 December 2011 2 Consolidated profit and loss account for 2011 4 Consolidated cash flow statement for 2011 5 Notes to the consolidated financial statements 6 Notes to the separate items of the consolidated balance sheet 15 Off-balance-sheet assets and liabilities 27 Notes to the separate items of the consolidated profit and loss account 29 Notes on the current value of the consolidated balance sheet 34 Company financial statements 2011 Company balance sheet as at 31 December 2011 44 Company profit and loss account for 2011 46 Company cash flow statement for 2011 47 Notes to the company financial statements 48 Notes to the separate items of the company balance sheet 49 Off-balance-sheet assets and liabilities 59 Notes to the separate items of the company profit and loss account 60 Other information Report by the independent auditors 67 Statement concerning the disposition of funds in the interests of housing 68 Post-balance-sheet events 68 Provisions of the articles of association concerning the appropriation of results 68 Proposed appropriation of the result 68 Key figures Numbers of units under management 69 Annex Financial summary of group companies, participating interests and strategic alliances 71 1


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    Consolidated balance sheet as at 31 December 2011 In thousands of euros, after appropriation of result 1 Assets 31-12-11 31-12-10 Fixed assets Tangible fixed assets 1.1 Property in operation 2,348,036 2,081,229 1.2 Property underdevelopment 34,522 137,249 1.3 Property serving operations 48,115 26,489 2,430,673 2,244,967 2 Financial fixed assets Other participating interests 18,148 12,863 Receivables from other participating interests 54,018 50,759 Other receivables 17 1,437 72,183 65,059 Total fixed assets 2,502,856 2,310,026 Current assets 3 Stocks 163,943 116,767 4 Work in progress 3,961 1,161 Debtors 5.1 Tenants 3,252 3,313 Public authorities 5 116 5.2 Tax and social security contributions 38,541 30,624 5.3 Other receivables 7,688 9,720 5.4 Prepayments and accrued income 28,841 22,469 78,327 66,242 6 Cash 47,501 32,476 Total current assets 293,732 216,646 Total assets 2,796,588 2,526,672 1 2010 figures restated for comparison purposes. 2


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    In thousands of euros, after appropriation of result 1 Equity and liabilities 31-12-11 31-12-10 7 Group equity Shareholders’ equity 881,127 699,379 Total group equity 881,127 699,379 Provisions 8.1 Provision for deferred tax liabilities 3.3,131 9,013 8.2 Provision for unprofitable investments 24.24,111 19,787 8.3 Other provisions 5.5,633 1,561 Total provisions 32,32,8758 30,361 75 Long-term liabilities 9.1 Loans 1,658,403 1,622,592 9.1 Guarantee deposits 10,753. 9,974 Total long-term liabilities 1,1,669,156 1,632,566 ,156 Current liabilities 10.1 Amounts owed to credit institutions 112,196 93,215 4 Prepayments on work in progress 634 942 Trade creditors 12,774 20,622 10.2 Tax and social security contributions 3,664 3,067 10.3 Accruals and deferred income 84,161 46,520 Total current liabilities 213,429 164,366 Total equity and liabilities 2,796,588 2,526,672 1 2010 figures restated for comparison purposes. 3


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    Consolidated profit and loss account for 2011 In thousands of euros 2011 2010 Operating income 15.1 Rents 177,960 171,168 15.2 Charges 15,295 12,435 15.3 Proceeds from sales of property 51,976 38,633 15.4 Change in work and projects in progress 46,030 -4,163 Capitalised production for own use 4,376 2,736 15.5 Other operating income 16,862 13,860 Total operating income 312,499 234,668 Operating expenses 16.1 Costs of subcontracted work 77,301 8,087 Depreciation and amortisation 2,357 2,784 16.2 Other movements in the value of tangible and intangible 32,459 35,876 fixed assets Ground rent 3,022 2,853 16.3 Wages and salaries 23,337 24,177 Social security charges 3,338 3,128 16.4 Pension charges 4,130 4,180 16.5 Maintenance costs 37,899 37,200 16.6 Exceptional changes in value of current assets 8,418 -471 16.7 Other operating expenses 52,343 49,091 Total operating expenses 244,603 166,907 Operating result 67,896 67,761 Finance income and expense 17.1 Interest and similar income 2,781 4,284 17.2 Interest and similar charges -59,579 -56,126 17.3 Gains and losses on derivatives -31,008 0 Total finance income and expense -87,806 -51,842 Group result on ordinary activities before tax -19,910 15,918 18.1 Corporation tax 13,995 3,427 Share in results of participating interests 7,840 -26,217 Group result after-tax before movements in current value of 1,925 -6,872 tangible fixed assets 1.1 Movements in the current value of property in operation 179,839 27,880 Net result 181,764 21,008 4


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    Consolidated cash flow statement for 2011 1 2011 2010 Cash flow from operating activities Operating result 67,896 67,761 Adjusted for: - depreciation/amortisation 2,357 2,784 - other exceptional changes in value 40,877 35,405 - movements in provisions 4,072 -609 Changes in working capital: - movements in provisions 3,270 27,253 - movements in current liabilities -26,748 -29,081 23,828 35,752 Net cash flow from operations 91,724 103,513 Interest received 2,781 4,284 Interest paid -59,579 -56,126 Dividends from participating interests 0 0 Tax paid/received 187 -255 -56,611 -52,097 Net cash flow from operating activities 35,113 51,416 Cash flow from investing activities Investments in tangible fixed assets: - property in operation -31,619 -27,878 - property in development -2,760 -113,839 - property serving operations -24,022 -6,121 - movements in work in progress/stocks -58,701 -21,659 Proceeds from disposals of tangible fixed assets 22,056 43,784 Movements in financial fixed assets -716 4,314 Net cash flow from investing activities -95,762 -121,399 Cash flow from financing activities Movements in guarantee deposits 779 441 Proceeds from long-term loans 139,000 211,240 Repayments of long-term loans -103,189 -120,654 Movements in save-as-you-earn accounts 0 -408 Movements in short-term loans 39,100 -19,100 Repayment of share capital -16 -4 Net cash flow from financing activities 75,674 71,515 Net cash flow 15,025 1,532 Movements in cash Opening balance 32,476 30,944 Closing balance 47,501 32,476 Total movements in cash 15,025 1,532 1 2010 figures restated for comparison purposes. 5


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    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS GENERAL Accredited institutions Stichting Stadgenoot, Amsterdam, is a foundation (stichting) having accredited institution status pursuant to Section 70, subsection 1, of the Housing Act. Pursuant to Article 2 of the articles of association, the accredited institution operates in the provinces of Noord-Holland and Flevoland. On Wednesday, 6 July 2011, the Council of Members of the housing association Woningbouwvereniging Stadgenoot voted in favour of changing the legal status of Stadgenoot from that of an association to that of a foundation, simultaneously deciding that a council representing civil society should be established. New articles of association and a set of rules were drawn up. Conversion from association to foundation was completed on 8 December 2011. Applied standards Pursuant to the requirements set forth in the Social Housing Decree applicable to accredited institutions, the financial statements have been prepared in accordance with the provisions of Part 9, Book 2, of the Netherlands Civil Code, with various specific exceptions. Included in the Guidelines for Annual Reporting in the Netherlands is Guideline 645 Officially Recognised Social Housing Institutions, containing a more detailed interpretation of the accounting standards. This Guideline also contains specific formats for the balance sheet and the profit and loss account. Guideline 645 exclusively governs matters specific to the sector. All other matters are governed by the generally applicable accounting guidelines. These financial statements have been prepared in accordance with the provisions of Guideline 645 Officially Recognised Social Housing Institutions applicable to financial years commencing on or after 1 January 2005. This means that the new Guideline 645, applicable to financial years commencing on or after 1 January 2012, has not been applied. Reporting period These financial statements have been prepared on the basis of a reporting period coinciding with a calendar year. Continuity These financial statements have been prepared on a going-concern basis. Comparative figures The presentation of the comparative figures in the balance sheet has been changed to reflect the separation of work in progress and projects in progress. In addition, the short-term loans have been included in amounts owed to credit institutions instead of other amounts owed. The presentation of the comparative figures in the cash flow statement has also been changed. The movements in amounts owed to credit institutions have been included in movements in current liabilities instead of movements in cash and the share in results of participating interests is no longer presented separately but accounted for as an adjustment to the movements in financial fixed assets. 6


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    ACCOUNTING POLICIES General The accounting policies used for the valuation of assets and liabilities and for the determination of results are based on historical cost unless otherwise mentioned. Unless otherwise stated, assets and liabilities are included at face value. An important component, tangible fixed assets in operation, is measured at current value based on the value in use. An asset is recognised in the balance sheet when it is probable that the future economic benefits will flow to the company and its value can be reliably measured. A liability is recognised in the balance sheet when it is probable that settlement thereof will be accompanied by an outflow of resources and the amount thereof can be reliably measured. The financial statements include both legal liabilities and constructive liabilities qualifiable as having been ‘internally formulated and externally communicated’. A constructive liability is linked to a decision-making and communication process connected with property development and restructuring. Income is recognised in the profit and loss account when an increase in the economic potential, associated with an increase in an asset or a decrease in a liability, has occurred, the amount of which can be reliably measured. Expenses are recognised when a decrease in the economic potential, associated with a decrease in an asset or an increase in a liability, has occurred, the amount of which can be reliably measured. If a transaction results in all or almost all of the future economic benefits and all or almost all of the risks relating to an asset or a liability being transferred to a third party, the asset or liability ceases to be included in the balance sheet. Assets and liabilities are also derecognised as and when the requirements of probability of future economic benefits and reliability of measurement cease to be satisfied. Income and expenses are attributed to the period to which they relate. Income is recognised if the company has transferred all significant risks to a purchaser. The financial statements are presented in euros. All financial figures have been rounded to the nearest thousand unless otherwise stated. Use of estimates The preparation of the financial statements requires that management form judgements and make estimates and assumptions affecting the application of accounting policies and the reported amounts of assets and liabilities and of income and expenses. The actual results may differ from these estimates. The estimates and underlying assumptions are constantly reviewed. The effect of revised estimates is recognised in the period in which the estimate is revised and in future periods affected by the reappraisal. In the management’s opinion, the following accounting policies, requiring estimates and assumptions to be made, are the most critical with respect to representing the financial position: • Tangible fixed assets: Property and other assets serving operations, particularly as regards the parameters and assumptions connected with measurement of the value in use. The parameters determining the value in use depend on proposed internal policy decisions, as reflected, for example, in the strategic housing stock policy, which involves decisions about letting or sale, useful life, quality standards and rental brackets. • Determining the effective date of constructive liabilities concerned with investments in newbuild, refurbishment and restructuring projects for the purposes of calculating and recognising provisions for unprofitable investments: Liabilities of this kind are recognised in the financial statements with effect from the date when they qualify as having been ‘internally formulated and externally communicated’, i.e. when announcements have been made by the accredited institution to tenants, municipal authorities and other stakeholders concerning future newbuild, refurbishment or restructuring project commitments. A constructive liability is linked to the decision-making process surrounding the accredited institution’s investment decision. The financial impact of these constructive liabilities may be different when such projects are actually undertaken. The actual figures may change owing to legal proceedings, changes to the planned construction programme, changes in suppliers’ prices 7


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    etc. • Stock of unsold homes/land and development positions: measuring the expected fair value of the stock of land and development positions and unsold homes involves defining parameters, such as an estimate of the sales value, based on benchmark transactions, probability of future scope for development and existing state of repair. • Assumptions used in determining the tax position (including deferred tax position): in particular this concerns the parameters and assumptions connected with the difference between maintenance costs and investments and the forecast figures used for measuring the tax position based on future expected taxable results. Basis of consolidation The consolidated financial statements contain the financial information of Stichting Stadgenoot and its group companies and other legal entities over which the company has control. Group companies are participating interests in which the company has a controlling interest or is able to influence policy on some other basis. The group companies are included in full in the consolidation with separate recognition of minority interests. Proportional consolidation is applied in the case of participating interests in alliances where the company has the same influence on policy as each of the other participants (joint ventures). Newly acquired participating interests are included in the consolidation from the date on which control is obtained. Participating interests which are disposed of are deconsolidated from the date on which control ceases. Intercompany accounts and transactions are eliminated in the consolidated financial statements, as are profits within the Group. The consolidated entities are: 1) • Houdstermaatschappij Stadgenoot BV with subsidiaries: NV Stadsgoed (with subsidiary Stadsgoed Monumenten BV), BV Huismeesters van het Oosten, VVE Beheer Amsterdam BV (50% proportionally consolidated), Het Oosten Monumenten BV, De Amsterdamse Compagnie NV (66.6% proportionally consolidated), Stadgenoot Vastgoedbedrijf BV and Exploitatiemaatschappij Kadehotel BV. • Stadgenoot Diensten BV with its subsidiaries: Stadgenoot Energie BV, Stadgenoot Participaties BV • Stadgenoot Projecten BV with its subsidiaries: Stadgenoot Ontwikkeling BV, Nieuw Amerika Ontwikkeling BV, Ontwikkelingscombinatie Nieuw Amerika VOF (33.33% proportionally consolidated), Houthavens Ontwikkeling BV, VOF Houthavens (50% proportionally consolidated), Gerschwin Ontwikkeling BV, Polderweg Ontwikkeling BV, Ontwikkelingscombinatie Polderweggebied (33.3% proportionally consolidated), Stadgenoot Maritiem BV, Forum Bos en Lommer Beheer BV (50% proportionally consolidated), Forum Bos en Lommer CV (50% -proportionally consolidated) and BLP 1 Properties BV (50% proportionally consolidated). • VOF Kolenkitbuurt-Zuid (43.1% proportionally consolidated) • Eerste Amsterdamse Gebiedsonderneming BV (33.3% proportionally consolidated) all having their domicile in Amsterdam. 1) except where otherwise stated, the interest is 100%. The consolidated financial statements also include the owners’ associations in which Stichting Stadgenoot has a controlling interest. Financial instruments Financial instruments comprise loans granted, trade debtors and other receivables, cash, loans and other funding liabilities, trade creditors, derivatives and other specific items. Financial instruments also include embedded derivatives. These are separated by the company from the host contract and recognised as derivatives when the economic features and risks of the host contract and the embedded derivative are not closely related, when a separate instrument with the same terms and conditions as the embedded derivative would satisfy the definition of a derivative and when the hybrid instrument is not 8


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    measured at fair value with gains and losses taken to the profit and loss account. Financial instruments, including embedded derivatives separated from their host contracts, are measured at fair value on initial recognition. If instruments are not recognised at fair value with gains and losses taken to the profit and loss account, any directly attributable transaction costs are included in the initial carrying amount. Embedded derivatives that are not separated from the host contract are accounted for in the same way as the host contract. After initial recognition, financial instruments are measured in the following manner. Loans granted, trade debtors and other receivables Loans granted, trade debtors and other receivables are recognised at amortised cost, using the effective interest rate method, less impairment losses. Financial liabilities Financial liabilities not forming part of the trading portfolio are recognised at amortised cost, using the effective interest rate method. Derivatives Derivatives are recognised at fair value except where hedge accounting using the cost price hedge model is applied. This can also lead to splitting of derivative contracts into two or more derivatives on market terms and conditions with the individual instruments being accounted for according to the policies described below, depending on whether the individual instrument qualifies for cost price hedge accounting. Where cost price hedge accounting is used, initial recognition is at fair value. As long as the derivative relates to the hedging of the specific risk associated with a future transaction which is expected to take place, no gains or losses on the instrument are recognised. In practice, this concerns rollover loans with shorter maturities than the derivatives. As soon as the expected future transaction leads to the recognition of an amount in the profit and loss account, the gain or loss associated with the derivative is taken to the profit and loss account. If the hedged position of an expected future transaction leads to the inclusion in the balance sheet of a non- financial asset, the company adjusts the cost of this asset by the amount of the hedging results not yet recognised in the profit and loss account. Any loss of a percentage greater than the amount of the derivative relative to the hedged position is expensed immediately at the lower of cost and market value. If derivatives mature or are sold, the hedging relationships are ended. The accumulated gain or loss not already recognised in the profit and loss account at that moment, is included in the balance sheet as accrued income or accrued expense until such time as the hedged transactions take place. If the transactions are no longer expected to take place, the accumulated gain or loss is recognised directly in the profit and loss account. The company documents the hedging relationships in specific/generic hedge documentation and tests the effectiveness of the hedging relationships on a regular basis by establishing that there is no overhedging. Property in operation The property in operation is carried at current value based on the value in use. Value in use is understood to mean the net present value of the future proceeds from operations less the net present value of the future operating expenses over the estimated remaining life of the individual let properties. A more comprehensive explanation of the way in which the value in use is calculated and properties are allocated to complexes for this purpose can be found further on in the notes to the financial statements. Any increase or decrease in the current value over the year is recognised in the profit and loss account as movements in the current value of tangible fixed assets. Property under development This concerns the projects under development for letting purposes. The carrying amount is measured at cost, including construction period interest costs plus project preparation and management costs, less an estimated provision for costs not covered and for other risks. Interest during the construction period is also attributed to qualifying assets. The capitalised interest is 9


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    calculated at the average interest rate for the entire amount of borrowed capital. The amount of the necessary provision is calculated at the time of entering into the constructive liabilities concerned with investments in newbuild, refurbishment and restructuring projects. Liabilities of this kind are recognised in the financial statements with effect from the date when they qualify as having been internally formulated and externally communicated’, i.e. when announcements have been made by the accredited institution to tenants, municipal authorities and other stakeholders concerning future newbuild, refurbishment or restructuring project commitments. A constructive liability is linked to the decision-making process surrounding the accredited institution’s investment decision. If the recognised provision exceeds the capitalised costs on a particular project, the excess is included as provisions for property under development on the liabilities side of the balance sheet. Property serving operations The property and other assets serving operations are carried at cost less depreciation. The head office on Sarphatistraat is depreciated using the annuity method based on a useful life of 50 years. Fixtures and fittings are depreciated on a straight-line basis over a useful life of 10-20 years. Equipment is depreciated on a straight-line basis over a useful life of 5-10 years. Participating interests Participating interests where there is significant influence on operating and financial policy are recognised using the equity method based on net asset value. In calculating the net asset value, the accounting policies of the accredited institution are applied. The carrying amount of participating interests where the net asset value is negative is nil. Where the accredited institution is guarantor of the liabilities of the participating interest concerned, a provision is recognised, charged mainly to the receivables from this participating interest, the remainder being part of the provisions reflecting the share in the losses sustained by the participating interest or the expected payments to be made by the accredited institution on behalf of the participating interest. Participating interests where there is no significant influence are carried at the lower of cost and value in use, if permanently impaired. Dividends are recognised in the period in which they are made payable. Receivables from participating interests and other receivables The accounting policies for receivables from participating interests and other receivables are described in the section dealing with financial instruments. Stocks Materials Stocks of materials are measured at the most recently paid purchase prices less a provision for obsolescence. Land and development positions The land and development positions are carried at the price paid plus associated expenses. As and when actual development starts, the assets are transferred to property under development/work in progress/work in progress on projects. If the land and development positions become impaired to such an extent that their fair value is less than the capitalised costs, the impairment loss is taken to the profit and loss account. Impairment testing involves regular comparison of the carrying amount of the land and development positions with market values. Stock of unsold homes The stock of unsold homes concerns completions of new homes that are for sale and therefore no longer available to let. The stock of new completions is recognised at the lower of direct cost plus apportioned operating expenses connected with preparation, supervision and project management, including capitalised interest, and expected net proceeds from sale. Work in progress Work in progress concerns the speculative investments in building land and construction projects intended for sale which have not yet been sold. As units are sold, the portion of the investment concerned is classified as 10


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    post-sale work in progress. The carrying amount of work in progress includes the costs directly relating to the project (such as staff costs for employees working directly on the project, costs of construction materials, costs of land and site preparation), the costs attributable to project activities in general and which can be allocated to the project (including insurance costs, costs of design and technical assistance and project activity overheads and interest on borrowings over the period attributable to the project) and other expenses that can be attributed to the client under the terms of the contract. Expected losses on work in progress are recognised immediately in the profit and loss account. Projects in progress Projects in progress concerns the speculative investments in building land and construction projects intended for sale which have already been sold. The carrying amount of projects in progress includes the costs directly relating to the project (such as staff costs for employees working directly on the project, costs of construction materials, costs of land and site preparation), the costs attributable to project activities in general and which can be allocated to the project (including insurance costs, costs of design and technical assistance and project activity overheads and interest on borrowings over the period attributable to the project) and other expenses that can be attributed to the client under the terms of the contract. The allocation of income and expenses and the recognition of profits on Projects in progress is made using the percentage of completion method as at balance sheet date, based on the project costs incurred up to balance sheet date compared with the estimated total project costs. Expenditure connected with project costs where the corresponding performance will be after the balance sheet date is recognised as an asset if it is probable that such expenditure will generate income in a subsequent period. Expected losses on Projects in progress are recognised immediately in the profit and loss account. Debtors The accounting policies for trade debtors and other receivables are described in the section dealing with financial instruments. Statutory reserve for participating interests A statutory reserve for participating interests is formed for accumulated profits or capital gains which are not distributable. Provisions A provision is recognised in the balance sheet when: • there is a legal or constructive liability resulting from a past event; and • a reliable estimate can be made of that liability; and • it is probable that an outflow of resources will be needed to settle that liability. Provisions for unprofitable investments Four notes on the accounting policies for calculating the provision for unprofitable investments, reference is made to the item of property under development. If the recognised provision exceeds the capitalised costs on a particular project, the excess is included in provisions for unprofitable investments on the liabilities side of the balance sheet. The amount of the provision for unprofitable investments is measured at face value. Other provisions Other provisions are carried at face value. Long-term and current liabilities The accounting policies for long-term and current liabilities are described in the section dealing with financial instruments. 11


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    Recognition of income Rents Presented under this heading is the income under the terms of tenants’ leases. Rents are increased annually within the limits prescribed by law, at the discretion of Stichting Stadgenoot. Charges This concerns payments received from tenants for the supply of energy and in respect of service charges. Proceeds from sales of property Proceeds from sales of property concerns the net amount of the sales proceeds received and the directly attributable selling costs incurred, less the value in use relating to the rented housing stock sold. Proceeds from sales of property are recognised in the profit and loss account when the principal risks and rewards of ownership have been transferred to the buyer, the collection of the payment due is probable, the costs of the transaction can be reliably estimated and there will be no further management involvement in the property. The proceeds from rented housing which is sold are recognised at the time of legal handover (conveyance). The proceeds from the sale of newbuild owner-occupied housing are recognised on completion of an entire project or project phase and are made up of the invoiced instalments less discounts and net of value-added tax. Change in work in progress (pre-sale and post-sale) As soon as a reliable estimate can be made of the result on a project which has been sold, the income and expenses associated with the project are recognised as such in the profit and loss account, using the percentage of completion method, as at balance sheet date. The proceeds from a project are understood to be made up of the contractually agreed selling price adjusted for any additional or reduced work, claims and incidental payments, if and to the extent that it is probable that the proceeds concerned will be realised and can be reliably measured. The extent to which a project has been completed is determined, based on the project costs incurred up to balance sheet date compared with the estimated total project costs. If the result on a project which has been sold cannot be reliably measured, proceeds from the project are only recognised up to an amount equal to the project costs incurred which can probably be recovered. Expected losses on projects are recognised immediately in the profit and loss account. The change in pre-sale and post-sale work in progress is made up of the recognised costs incurred and recognised results in the year concerned relating to projects which have been sold, less invoiced instalments on those projects, and of the recognised costs incurred and expected losses in the year concerned relating to work in progress on projects not yet sold. Capitalised production for own use Accounted for here are the attributable internal direct costs connected with property under development. Costs of subcontracted work Costs of subcontracted work concerns those costs which are directly attributable to the pre-sale and post-sale work in progress. Other movements in the value of tangible and intangible fixed assets Included here are the unprofitable investments relating to property in operation (purchases and renovation) and property under development. Wages and salaries/pensions Basically, the recognised pension charges for the year are equal to the pension contributions payable to the pension fund in respect of the period concerned. If the contributions payable have not been paid on the balance sheet date, a corresponding liability is recognised. If the contributions already paid as at balance sheet date exceed the amount of the contributions due, a prepayment is recognised if there will be any repayment by the pension fund or if the amount overpaid will be set against future contributions. 12


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    In addition, a provision is recognised as at balance sheet date for existing additional liabilities vis-a-vis the pension fund and the employees if it is probable that an outflow of resources will be required to settle those liabilities and the amount of the liabilities can be reliably estimated. The existence of additional liabilities is assessed by reference to the terms of the administrative agreement with the pension fund, the pension agreement with the employees and other explicit or implicit commitments to the employees. The amount of the provision is based on the best estimate of the net present value of the amounts needed to settle the liabilities as at balance sheet date. If the pension fund has a surplus as at balance sheet date, a corresponding asset is recognised if such surplus is at the company’s disposal, it is probable that the surplus will accrue to the company and the amount of the asset can be reliably measured. Maintenance costs Accounted for in this item are all costs of maintenance directly attributable to the reporting period. These costs are attributable to the period if the work was actually carried out during the year. The item includes the costs of planned maintenance, maintenance with changes of tenant, ad hoc maintenance and contractually required maintenance. The maintenance costs are divided into third-party costs and costs of the in-house maintenance department, plus the costs of materials used. The in-house maintenance department costs are included in salaries and social security charges in the profit and loss account. The maintenance costs are distinguished from costs which can be capitalised by the fact that they do not increase the value of the assets concerned and the fact that they do not satisfy the legal requirements for capitalisation. Finance income and expense The net figure is the balance of interest payable and receivable plus commission charges, costs of guarantees, interest and amortisation costs connected with derivatives and the capitalised interest. Also included here are gains and losses on derivatives not forming part of a hedge relationship, as well as income from financial assets and securities. Corporation tax The tax on the results comprises both current tax and deferred tax. The current tax relates to the expected tax liability on the result before tax, taking account of tax facilities, including the agreement with the Dutch Tax Administration establishing the tax liability and non-allowable expenses, and applying the standard tax rates as at balance sheet date and any adjustments in the tax liability relating to prior years. Tax is deducted from losses if there are profits from preceding years against which the loss can be set and this will result in a tax recovery. Tax is also deducted if it is reasonable to assume that it will be possible to set the loss against future profits. Deferred tax is calculated using the tax rates expected to be applicable when the temporary differences lapse and the tax loss carryforwards are utilised and is recognised at net present value (discount rate 2011 2.94%; 2010 2.97%). Share in results of participating interests The share in the results of participating interests is made up of the accredited institution’s share in the results of these entities. Results on transactions involving transfer of assets and liabilities between the accredited institution and the unconsolidated entities and between one such entity and another have not been recognised where they cannot be considered realised. The results of participating interests acquired or disposed of during the year are recognised in the profit and loss account of the accredited institution with effect from acquisition date or up to date of disposal, as applicable. Movements in the current value of tangible fixed assets The gains and losses in the value of the property in operation are recognised directly in the profit and loss account. 13


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    Cash flow statement The cash flow statement is prepared using the indirect method. This method involves adjusting the net result in respect of items in the profit and loss account which do not affect cash inflows and outflows during the year, changes in balance sheet items and items in the profit and loss account where the income and expenditure is not considered to be connected with operations. The cash position shown in the cash flow statement is made up of cash and cash equivalents. The cash flow statement is divided into cash flow from operating activities, investing activities and financing activities. The cash flows connected with financing are also split into cash flows relating to the principal (included in cash flow from financing activities) and interest payments (included in cash flow from operating activities). Cash flows from derivatives accounted for as cost price hedges are included in the same category as the cash flows from the balance sheet items which they hedge. Cash flows from derivatives for which hedge accounting is no longer applicable are included in the cash flow statement according to the nature of the instrument concerned with effect from the date on which hedge accounting ceases. Measurement of fair values Several of the accounting policies and disclosures in the financial statements of the accredited institution involve the measurement of the fair value of both financial and non-financial assets and liabilities. For the purposes of recognition and provision of information, the fair value has been measured using the following methods. Where applicable, more detailed information on the parameters used in measuring the fair value is disclosed in those parts of these notes which deal specifically with the assets or liabilities concerned. Derivatives The fair value of interest rate derivatives is based on the expected cash flows, discounted at current interest rates plus a markup for the relevant risks. Non-derivative financial assets and liabilities The fair value of non-derivative financial assets and liabilities is measured on the basis of the net present value of the future cash flows, discounted at the current risk-free interest rate as at year-end 2011. The calculation in this case does not include a markup for credit risk. 14


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    Notes to the separate items of the consolidated balance sheet In thousands of euros 1 Tangible fixed assets 1.1 Property in operation Value in use as at 1 January 2011 2,081,229 Movements in 2011: Investments 31,619 Impairment of purchased/renovated property -32,275 Transferred from under development 109,627 Disposals -22,003 Movements in current value 179,839 Value in use as at 31 December 2011 2,348,036 The book value based on historical cost is 1,819,477 A comprehensive explanation of the way in which the value in use is calculated can be found further on in the notes to the financial statements. Mortgaging The property and other assets serving operations are almost entirely financed with loans guaranteed by Waarborgfonds Sociale Woningbouw, with WSW having a first mortgage on those assets. As a condition for providing this guarantee, WSW requires borrowers to be ready to contribute a certain amount of committed capital per loan. The property and other assets serving operations that are financed with guaranteed loans are consequently not mortgaged. The amount of the exposure in respect of committed capital as at year-end is disclosed in the section on off-balance-sheet assets and liabilities. A portion of the property in operation has been mortgaged for an amount of €253 million . In addition, a first mortgage has been granted to the City of Amsterdam as security for loans granted to NV Stadsgoed. 15


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    1.2 Property underdevelopment Position as at 1 January 2011: Property underdevelopment 137,249 Provision for unprofitable investments -19,787 117,462 Cost 219,344 Accumulated impairment -101,882 Book value as at 1 January 117,462 Movements in 2011: Investments 2,760 Impairment -184 Transferred to property in operation -109,627 Balance -107,051 Position as at 31 December 2011: Cost 97,862 Accumulated impairment -87,451 Book value 10,411 Presented under: Property underdevelopment 34,522 Provision for unprofitable investments -24,111 10,411 During the year, an amount of €6.9 million (2010: €6.8 million) was capitalised in respect of construction period interest relating to property under development. In the case of newbuild projects not financed on a specific basis, an average interest rate of 4.23% (2010: 3.88%) was applied. 1.3 Property serving operations Position as at 1 January 2011: Cost 36,129 Accumulated depreciation -9,640 Book value 26,489 Movements in 2011: Investments 24,022 Disposals -53 Depreciation -2,343 Balance 21,626 Position as at 31 December 2011: Cost 56,762 Accumulated depreciation -8,647 Book value 48,115 16


  • Page 17

    2 Financial fixed assets Other Receivables Other Total participating from other interests participating interests Position as at 1 January 2011 12,863 50,759 1,437 65,059 Movements in 2011: Investments/advances 4,665 1 4,666 Disposals/repayments 0 0 Other -5,711 -1,421 -7,132 Share in results of participating interests 10,996 -1,406 9,590 Dividends received from participating interests 0 Changes in value 0 Position as at 31 December 2011 18,148 54,018 17 72,183 2011 2010 The other participating interests can be analysed as follows: Woningnet NV (11.06% interest) 754 754 Stedenfonds Amsterdam NV (4.2% interest) 2,774 2,743 Far West (32.33% interest) 12,684 1,948 Coöperatieve Herverzekeringsmaatschappij (9.5% interest) 0 394 Gemeenschappelijk Glas (18.5 %) 1,635 1,322 VOF Maritiem (funding) 0 5,317 Other 301 385 Total other participating interests 18,148 12,863 The increase in value of Far West is largely due to an increase in the value in use of the property of this participating interest. In relation to this participating interest, further reference is made to the post-balance- sheet events. The decrease in VOF Maritiem is due to the acquisition of the 100% share of this company in 2011, resulting in its inclusion in full in the consolidation. The receivables from other participating interests can be analysed as follows: Stichting Inzet I (Waterstad) 33 17 Stichting Inzet IV (CZAN) 887 860 Stichting Inzet II 3,145 3,145 Far West (32.33% interest) 42,631 39,428 BLP 1 Properties BV/AM Grondbedrijf BV 4,427 3,674 Stichting Woonbench 80 80 Prospect Zuidas BV (25% interest) 6,219 6,181 Stichting Brasa 628 0 Provision -4,032 -2,626 Total receivables from other participating interests 54,018 50,759 With regard to the receivable from Far West, reference is made to the post-balance-sheet events. For a list of the participating interests of the officially recognised housing institution, reference is made to page 71. 17


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    3 Stocks 2011 2010 Stocks of materials 271 249 Stock of unsold homes/land and development positions 102,883 85,447 Work in progress 60,789 31,071 163,943 116,767 Stocks of materials Cost 271 249 271 249 Stock of unsold homes/land and development positions Land and development positions 122,693 120,499 Unsold homes 28,216 8,630 Accumulated impairment -48,026 -43,682 102,883 85,447 Work in progress Capitalised costs 66,308 31,503 Accumulated impairment -5,519 -432 60,789 31,071 The cost of the work and projects in progress as at year-end 2011 includes an amount of €2.8 million (2010: €1.1 million) in respect of capitalised interest calculated at a rate of 4.23%. The property included in work in progress has been mortgaged for an amount of €14 million. 4 Work in progress Capitalised costs 5,528 9,512 Recognised profits 899 0 Instalments received from purchasers -3,101 -9,293 Provision for expected losses 0 0 3,326 219 Presented under: Work in progress 3,961 1,161 Prepayments -634 -942 3,326 219 For a note on the capitalised interest, reference is made to item 3 in the section on work in progress. Debtors 2011 2010 5.1 Tenants Tenants 6,407 6,131 Provision for bad debts in respect of rents -3,155 -2,818 3,252 3,313 The amounts receivable from tenants in respect of rents fall due within one year. 18


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    5.2 Tax and social security contributions Deferred tax assets 38,541 30,624 38,541 30,624 Deferred tax assets Position as at 01 January 2011: 30,624 Movements during the year: Released -1,823 Added 9,740 Position as at 31 December 2011: 38,541 The deferred tax assets of €38.5 million relate to the recognised tax loss carryforwards and recognised temporary differences. There are temporary differences between the reported book values and the amounts calculated for tax purposes in respect of the following items: - Property and other assets in operation which are expected to be let on a permanent basis in the year ahead; - Property and other assets in operation which are expected to be sold within the next five years (provision for deferred tax liabilities); - Depreciation on other assets in operation; - Loans and derivatives portfolio. The amount of the tax loss carryforwards has been recognised at a face value of €23 million. The full amount of the losses has not been recognised. It is not expected to be possible to utilise the asset within one year. The total amount of the loss available for relief as at year-end 2011 amounted to €135 million (2010: €159 million). More detailed notes on the components of the deferred tax position in respect of temporary differences: • Property and other assets in operation which are expected to be let on a permanent basis in the year ahead: The temporary difference which has not been recognised amounts to €608 million (2010: €660 million). This relates to property and other assets in operation which are expected to be let on a permanent basis in the year ahead . The reason for this is that the homes concerned are not depreciated for tax purposes. The value of this property for tax purposes amounted to €4,593 million. The value in use of this property concerns an amount of €2,160 million. The unrecognised deferred tax asset amounts to €608 million (representing 25% applied to the difference between the reported book value and the value for tax purposes). • If the value for tax purposes of the property in operation exceeds the current Property Valuation Act (WOZ) valuation, there is a potential for depreciation for tax purposes. This is basically only the case for property in operation after conclusion of the agreement with the Dutch Tax Administration establishing the tax liability where demolition/newbuild has taken place and in the case of business premises. No depreciation is recognised for reporting purposes. This potential depreciation therefore results in a temporary difference in respect of which there is a potential deferred tax position. This deferred tax has not been recognised. • The temporary difference relating to the loan portfolio is an amount of €11 million at face value (2010: €13.4 million) and has been recognised at a net present value of €8 million, using a discount rate after tax (representing the interest rate on the loan portfolio) of 2.94%. The average weighted term to maturity of this temporary difference is nine years. The amount maturing in less than one year is €0.7 million. 19


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    • The temporary difference relating to the valuation of the derivatives amounts to €7.5 million (face value). Those derivatives which do not qualify for hedge accounting have been recognised in the financial statements at market value . In the valuation for tax purposes, face value is used, giving rise to a temporary difference. 5.3 Other receivables The other receivables include an amount of €0 million (2010: €0 million) with a remaining term to maturity of longer than one year. 2011 2010 5.4 Prepayments and accrued income Prepaid planned maintenance on owners’ association (VvE) 2,667 1,336 units Prepayments/accrued income 18,736 21,133 Cost of derivatives still to be amortised 7,438 0 28,841 22,469 The prepayments and accrued income include an amount of €10.1 million (2010: €1.3 million) with a remaining term to maturity of longer than one year. The cost of derivatives still to be amortised concerns the cost of derivatives forming part of a hedge relationship. The cost is amortised over the term to maturity of the derivative concerned. 6 Cash Freely available bank balances 47,496 32,471 Deposits 5 5 47,501 32,476 The cash balance includes time deposits amounting to €5,000, maturing in periods ranging from 1 week to 3 months. The remainder of the cash is available on demand. 7 Group equity Shareholders’ equity Details of the shareholders’ equity can be found in the notes to the company financial statements. 8 Provisions 8.1 Provision for deferred tax liabilities Position as at 1 January 2011 9,013 Movements in 2011: Added 222 Utilised -6,104 Released 0 Position as at 31 December 2011 3,131 The provision for deferred tax liabilities reflects the tax effects of the differences between the reported profit and the profit calculated for tax purposes. The temporary difference relating to the property and other assets serving operations expected to be sold within the next five years amounts to a face value of €2.8 million. The value for tax purposes of these homes is lower than the book value. The deferred tax liability has been recognised at net present value, based on a discount rate after tax (representing the interest rate on the loan portfolio) of 2.94%, and amounts to €2.6 million. The average term to maturity is five years. 20


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    8.2 Provision for unprofitable investments For the detail of the provision for unprofitable investments, see item 1.2. 8.3 Other provisions Position as at 1 January 2011 1,561 Movements in 2011: Added 4,072 Utilised 0 Released 0 Position as at 31 December 2011 5,633 The other provisions relate to, among other things, the rundown of the assets furnished as collateral security in relation to Stichting Brasa/ Woningstichting Sekrepatu and an estimate of the liability in relation to the demolition of the existing building and handover of the land after site preparation. The amount of the provision which is expected to be utilised within one year is nil. 9 Long-term liabilities Government Guarantee Total loans and deposits borrowings 9.1 Loans and guarantee deposits Position as at 1 January 2011 1,622,592 9,974 1,632,566 Movements in 2011: New loans 139,000 139,000 Repayments -103,189 -103,189 Other movements 779 779 Position as at 31 December 2011 1,658,403 10,753 1,669,156 Term to maturity: < 1 year 159,092 159,092 1-5 years 452,398 452,398 > 5 years 1,046,913 10,753 1,057-666 The loan portfolio comprises the following types of loan: Government loans and borrowings Fixed-rate loans 996,115 Variable-rate loans 477,088 Loans subject to unilateral repricing 93,200 Basic-rate loans 92,000 Position as at 31 December 2011 1,658,403 21


  • Page 22

    The average interest rate including derivatives amounts to 3.9% (2010:3.91%). The duration amounts to 12.74 years (2010: 12.41 years). Of the loans, an amount of €204 million was secured by mortgages as at balance sheet date. The average interest rate on the loan portfolio without taking account of the effect of interest rate derivatives amounts to 3.31% (2010: 3.36 present). The average interest rate has been calculated on the outstanding principal as at year-end 2011. Over the year, interest charges in respect of interest rate swaps amounted to €9.5 million (2010: €9.7 million). The total interest charges amounted to €64.7 million (2010: €63.5 million). The interest on the fixed-rate loans is fixed either for the entire term of the loan or up to the next repricing date. The risk in relation to these loans concerns: – an increase or decrease in the interest rate compared with the existing rate at the time of repricing; – the refinancing of repayment instalments and final repayments on the loans by contracting a new loan at a higher or lower interest rate. The interest rate on the variable-rate loans (rollover loans) is based on either 1, 3 or 6-month Euribor rates in all cases. The interest rate on the rollover loans has a spread ranging from 3.5 basis points below Euribor to 135 basis points above Euribor. An amount of €436.7 million of the interest rate risk on the rollover loans has been hedged by means of interest rate instruments (interest rate swaps). A total of €40.4 million has not been hedged using interest rate instruments. The loans subject to unilateral repricing concerned fixed-rate loans up to the contractual repricing date. The loan contracts include a clause under which the lender has the right once only to convert a fixed-rate loan into a rollover loan. The risk in respect of such a loan concerns: – the interest rate risk at the time of repricing, when the interest rate can change from being fixed to variable; – the refinancing risk relating to the final repayment of the loan when a new loan is contracted at a higher or lower interest rate. The basic-rate loans have an interest rate made up of two components, viz. a basic rate and a liquidity markup. The basic rate applies for the entire term of the loan and is between 3.5% and 4.05%. The liquidity markup applies for an agreed period, initially for a period ranging from 2 to 5 years as a minimum. After that period, a new liquidity markup has to be agreed with the bank. The liquidity markup on the existing basic-rate loans ranges from 0% to 0.5%. In the case of all these loans, if the parties cannot reach agreement, the loan will be redeemed. Fair value The fair value is explained in the section covering financial instruments. Refinancing risk Stadgenoot’s interest rate and maturity policy aims at matching the maturity of the liabilities to the maturity of the assets as closely as possible, reflecting the useful life of the assets in operation and the investment and disposal policy. Stadgenoot’s interest rate and maturity policy also aims to avoid incurring more than a 15% interest rate risk on refinancing in any one year. The current norm applied by WSW is also 15% of the remaining principal of the loans at the start of the year. The interest rate risk (expressed as a percentage of the remaining principal at the start of the year) is calculated as the sum of: • the amount of repayments due in the year plus • the remaining principal of long-term finance at a given type of interest rate subject to interest rate revision during the year and • the remaining principal of the short-term finance at a given type of interest rate (i.e. variable-rate loans) subject to at least one change of interest rate during the year. 22


  • Page 23

    As at 31 December 2011, based on the existing loan portfolio including the interest rate derivatives, the interest rate risk in 2014 does not exceed 14.3%. The following graph presents the refinancing risk on Stadgenoot’s existing loan portfolio, excluding the effect of interest rate derivatives. This risk is divided into repayments and interest rate changes. The repayment risk is based on the earliest date on which the lender can call in a loan under the terms of the contract. The interest rate change risk depends on the next contractual repricing date. For loans having a fixed interest rate for the entire term to maturity, no risk of interest rate changes has been included in the graph below. In the case of the basic-rate loans, too, the periodical revision of the credit/liquidity markup has not been included in the following graph since the basic interest rate is fixed for the entire period of the contract. The refinancing risk on the portfolio associated with contractual repayments amounts to €159 million for 2012 and a maximum of €187 million in 2014. With the exception of 2014, Stadgenoot’s refinancing risk remains within the internal norm of 10% over the next 50 years, meaning that Stadgenoot will not be exposed to any imprudent refinancing risks in any particular year. The contractual changes in interest rates are mainly connected with the variable-rate loans (€444 million) and loans subject to unilateral repricing (€93 million), the interest rate on the latter category being subject to periodical review based on the current market interest rate, subject to a contractually agreed maximum rate. The interest rate risk on the variable-rate loans has been mitigated by Stadgenoot by contracting interest rate derivatives. These interest rate derivatives hedge the entire repricing risk on the variable-rate loans, amongst other things. For details of the derivatives portfolio, see the notes specifically covering interest rate derivatives. Counterparty risk Stadgenoot’s long-term loans have been contracted largely with N.V. Bank Nederlandse Gemeenten and Nederlandse Waterschapsbank N.V. N.V. Bank Nederlandse Gemeenten is a bank specifically serving public authorities and institutions essential to civil society. BNG is a large company within the meaning of the Netherlands Civil Code. The bank’s shareholders are exclusively public authorities. The Dutch state holds half the share capital and the remaining capital is in the hands of municipal authorities, provincial authorities and a large polder board. Nationale Waterschapsbank N.V. is a financial services provider for the public sector. All the bank’s shares are held by public authorities. The counterparty risk is consequently mitigated. 23


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    Interest rate derivatives Stadgenoot has hedged its interest rate risks by contracting a number of interest rate instruments. The portfolio as at 31 December 2011 is analysed in the following table. Type Number Contract Part of a Fair value Average Contract Contract Average value hedge on 31-12- interest value value maturity relationshi 2011 rate maturing in maturing in (in years) p < 5 years > 5 years Interest rate 18 475,475 Partially 100,395- 4.36 97,000 378,475 23 swaps Interest rate 5 150,000 Partially 77,762- 4.36 0 150,000 42 swaps with written options Cap 2 28,200 Yes 1,305 5.15 10,000 18,200 22 Total 25 653,675 176,853- 4.39 107,000 546,675 27 Of the interest rate swaps, four derivatives with a total contract value of €90 million are not included in a hedge relationship. These instruments are mirrored back to back and therefore have a fair value of nil as at balance sheet date. The swaps with a written option qualify partially for hedge accounting. Stadgenoot has split these instruments into an interest rate swap on market terms and conditions and a written swaption. The interest rate swap is included in the cost price hedge relationship and is therefore recognised at cost in the prepayments and accrued income. The written swaption is recognised at fair value as part of the accruals and deferred income. The fair value of the derivatives which do not qualify for cost price hedge accounting amounts to €37.1 million. The gains and losses on the derivatives not qualifying for hedge accounting are recognised in the profit and loss account under the finance income and expense. A cap is an interest rate instrument limiting the maximum interest rate. Stadgenoot has two caps totalling €28.2 million, with a fair value of €1.3 million positive. The combined fair value of the effective interest rate swaps and caps as at 31 December 2011 amounted to €145.8 million negative (2010: €68.1 million negative). Using the measurement basis of cost inherent in the application of cost price hedge accounting, an amortised cost of €7.4 million has been included in the prepayments and accrued income. The interest rate sensitivity of the interest rate swaps produces the following amounts: • parallel interest rate drop of 0.5 percentage points: the fair value of the derivatives falls by €61.3 million to €238.2 million negative. This would lead to a margin call liability of €11.3 million which Stadgenoot would be contractually required to deposit with the counterparties to its derivative contracts. • parallel interest rate drop of 1.0 percentage point: the fair value of the derivatives falls by €132.4 million to €309.3 million negative. This would lead to a margin call liability of €36.7 million which Stadgenoot would be contractually required to deposit with the counterparties to its derivative contracts. With regard to the interest rate swaps, a CSA has been contracted with two of the counterparties. This means that a margin call liability arises as and when the market value drops below €15 million and €25 million negative, respectively. In addition, negotiations have commenced with a third counterparty concerning new conditions for 2012. As at year-end 2011, this had not led to a margin call liability which Stadgenoot was contractually required to deposit with its derivative contract counterparties. 10 Current liabilities 2011 2010 10.1 Amounts owed to credit institutions Current account 27,696 47,815 Short-term loans 84,500 45,400 112,196 93,215 The overdraft facility with Bank Nederlandse Gemeenten as at 31 December 2011 amounted to €60 million 24


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    (2010: €60 million), with an interest rate of 1.1 %. The overdraft facility was not drawn on 31 December 2011. The company also has a short-term loan facility of €40 million. This was also undrawn on31 December 2011. The term of this facility expires on 31 December 2018. The overdraft facility with ING as at 31 December 2011 amounted to €30 million (2010: €30 million), with an interest rate of 2.3 %. This facility was not drawn on 31 December 2011. The term of the facility is reviewed annually. 2011 2010 10.2 Tax and social security contributions Value-added tax 2,110 818 Social security contributions and wage tax 1,554 2,249 3,664 3,067 10.3 Accruals and deferred income Interest on loans not yet due 23,535 22,427 Rents received in advance 3,859 2,530 Derivatives not in a hedge relationship 37,111 0 Other 19,656 21,563 46,520 For details of the derivatives which are not in a hedge relationship, reference is made to note 9.1. 11 Financial instruments General The accredited institution uses a variety of financial instruments in connection with its ordinary activities which expose the institution to market risks, credit risks or both. This includes financial instruments shown on the face of the balance sheet and interest rate derivatives used to hedge future cash flows. The accredited institution does not trade in these financial derivatives and has procedures and codes of conduct in place to mitigate the credit risk connected with each counterparty or market. In the event of default by a counterparty to the accredited institution, associated losses will be limited to the market value of the instruments concerned. The contract value or notional underlying amounts of the financial instruments are merely an indication of the extent to which use is made of such financial instruments and does not reflect the amount of the credit risk or market risk. Liquidity risk The accredited institution faces a liquidity risk in connection with the margin call liabilities relating to interest rate swaps. For further details, see note 9.1. The accredited institution had a credit facility available as at year- end 2011 (including a short-term loan facility) of €130 million, which had not been drawn on at all as at 31 December 2011. Credit risk The accredited institution faces a credit risk in respect of financial fixed assets and debtors/receivables. The maximum credit risk relating to financial fixed assets and debtors amounts to €65 million (made up of receivables from participating interests, other receivables and rent receivables). The accredited institution’s receivables in respect of rents, totalling €3.3 million, are spread over a large number of tenants. Receivables from participating interests total €54 million (both long-term and current) and relate to several participating interests. For further details, see note 2. Interest rate risk and cash flow risk The accredited institution faces an interest rate risk on the interest-bearing assets and liabilities. In the case of 25


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    assets and liabilities contracted at variable interest rates, the accredited institution faces a risk with respect to the future cash flows. In the case of assets and liabilities at fixed interest rates, the accredited institution faces a risk with respect to the market value. In relation to certain variable-rate liabilities, the accredited institution has contracted interest rate derivatives, converting the variable interest rate into a fixed rate. For further information concerning the repricing dates and maturity dates, the counterparty risk and the margin call liabilities relating to interest rate instruments, see note 9.1. Fair value The fair value of the loans is defined as the net present value of the loan portfolio calculated using a discount rate based on current market interest rates for similar loans excluding markups for credit and liquidity risks. If these markups were included, the fair value would work out lower. The fair value of the loan portfolio amounts to €1,881 million , or at a market value €223 million lower than the existing book value. The fair value of the derivatives portfolio amounts to €176.9 million. Of this amount, €37.1 million is shown on the face of the balance sheet, included in accruals and deferred income because the instruments concerned are not part of a hedge relationship. Also included in the prepayments and accrued income is an amount of €7.4 million relating to the amortised cost of derivatives which do form part of a hedge relationship and qualify for hedge accounting. The notes on interest rate derivatives contain further details of Stadgenoot’s derivatives portfolio. The fair value of the other financial instruments on Stadgenoot’s consolidated balance sheet is close to the book value. Currency risk The accredited institution is only active in the Netherlands and therefore not exposed to any currency risks. 26


  • Page 27

    Off-balance-sheet assets and liabilities 1. Investment commitments Not included in the balance sheet are newbuild and renovation project commitments totalling approximately €56 million relating to rented housing and housing for the owner-occupied market. 2. Ground rent liabilities in respect of existing housing stock A proportion of the property is built on leasehold land. In the case of new housing developments built since 1976, the long lease has been purchased. The annual ground rent payable on the other leasehold properties amounts to €2.7 million. 3. Part-buy part-rent The total exposure on part-buy part-rent homes sold based on 2011 repurchase prices as at year-end 2011 amounted to in excess of €3.9 million. 4. Interest rate derivatives For information on the interest rate derivatives involved in a hedging relationship, for which hedge accounting is used, reference is made to note 9. 5. DIGH loan guarantee Stichting Dutch International Guarantees for Housing has concluded a loan agreement with NV Bank Nederlandse Gemeenten for financing housing activities, specifically the construction and management of rented housing, in Suriname. Stadgenoot has guaranteed the annual interest and repayment obligations relating to seven loans (with fixed repayment instalments of principal plus interest) granted to Woningstichting Sekrepatu (the outstanding principal of these loans as at year-end 2011 amounted to €3.8 million). Interest plus repayments in 2011 amounted to €0.65 million. 6. Vesteda profit-sharing rights In 2005, Stadgenoot transferred the beneficial ownership of 108 rented social housing units on the Drie Wachters development to Vesteda. In connection with this transfer, Stadgenoot has a right to share in Vesteda’s profits. The profit-sharing right concerns a proportion of the profit on the sale of the Vesteda homes in the development. Since sharing in the profit depends on a decision to sell by Vesteda and the timing of such sale cannot be estimated with any certainty, the profit-sharing right has not been recognised in the balance sheet. 7. Liability Stadgenoot bears joint and several liability for strategic alliances without definite legal personality and in the form of general partnerships (joint ventures). 8. Far West Far West is a joint initiative of the Amsterdam housing associations Woonstichting De Key, Stichting Stadgenoot, Woningstichting Rochdale and Stichting Woonmaatschappij Amsterdam. The renovation projects of the four contributing housing associations located in the Westelijke Tuinsteden zone were undertaken by Far West on behalf of the contributing housing associations. The Far West association was wound up at the beginning of 2012 and the assets were divided among the association’s members. 9. Commitment to provide capital for Waarborgfonds Sociale Woningbouw The exposure in respect of loans guaranteed by WSW as at year-end 2011 amounted to €54.9 million (2010: €59 million). The rate applied for calculating the committed capital was set at 3.85% (2010:3.85%) of the outstanding amount of the guaranteed borrowing, except for types of loan with variable principal and inter- association funding. The committed capital can be called if it is found that WSW’s risk capital is insufficient to meet the guarantee claims upon WSW. The Central Housing Fund conducted a study of liquidity risks associated with derivatives portfolios held by housing associations. In the case of a number of housing associations, it was found that they did not have sufficient reserves as at year-end 2011 to meet margin calls resulting from a possible drop in interest rates. At the time of writing, it is uncertain whether this risk will lead to guarantee claims on Waarborgfonds Sociale Woningbouw as a result of which the committed capital may be 27


  • Page 28

    called. 10. NCT-Beheer guarantee Stichting Stadgenoot has given a guarantee in respect of its share (19%) in New China Town C.V. This guarantee was taken over by Houdstermaatschappij Stadgenoot BV on 25 May 2010. Houdstermaatschappij Stadgenoot BV guarantees up to 19% of the liabilities arising in connection with a loan, the principal of which totals a maximum of €70 million (Stadgenoot guarantee: €13.3 million), contracted by New China Town C.V. As at 31 December 2011, an amount of €64 million had been drawn down under this facility. 11. Claims Various claims have been filed against the accredited institution, which it is contesting. Although the outcome of these disputes cannot be predicted with any certainty, it is assumed – on the basis of legal counsel and other evidence – that they will not have any material impact on the consolidated financial position. 28


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    Notes to the separate items of the consolidated profit and loss account In thousands of euros 15 Operating income All income is earned in the Netherlands. 2011 2010 15.1 Rents Rents 184,585 177,676 Lost rental income due to vacancies -6,625 -6,508 177,960 171,168 Lost rental income expressed as % of rents 3.59% 3.66% Rent arrears as % of rents 2.40% 2.36% Rent owed by ex-tenants as % of rents 1.07% 1.22% 15.2 Charges Service charges 16,021 13,059 Lost service charge income due to vacancies -726 -624 15,295 12,435 15.3 Proceeds from sales of property Sales of existing housing stock 44,898 57,561 Value in use of existing housing stock -18,455 -23,940 Selling costs of existing housing stock -6,757 -7,196 Result on sales of existing housing stock 2,642 22,328 26,424 Sales of new homes 29,648 12,209 51,976 38,633 15.4 Change in work and projects in progress Subcontracted work in connection with sales of new 77,156 8,087 homes Result on sales of new homes -1,478 -42 Production value 75,678 8,046 Sales of new homes -29,648 -12,209 Total change in work in progress 46,030 -4,163 15.5 Other operating income Costs passed on to third parties Operating expenses passed on 5,657 4,564 Maintenance costs passed on 61 1,253 Owners’ Associations, management on behalf of third 1,509 1,441 parties Other income 9,635 6,602 16,862 13,860 29


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    In thousands of euros 16 Operating expenses 2011 2010 16.1 Costs of subcontracted work Costs of subcontracted work on current projects 77,156 8,087 Miscellaneous selling costs 144 0 77,301 8,087 16.2 Other movements in the value of tangible fixed assets Tangible fixed assets in operation 32,275 18,688 Tangible fixed assets under development 184 17,188 32,459 35,876 The change in value relates to provisions for newbuild projects and improvements to units intended for letting. 16.3 Wages and salaries Number of staff As at year-end 2011, the company had 477 employees (2010:473), made up of 200 women and 277 men. The number of FTEs as at year-end 2011 was 438.1 (2010:426.6). The wages and salaries can be analysed by employee category as follows: Management 1,886 1,786 Operations 21,105 16,469 Property development 1,756 1,479 Administration 3,007 2,960 Other 951 1,370 Participating interests 2,098 7,422 30,804 31,486 All staff are employed in the Netherlands. 16.4 Pension charges The staff in the Netherlands have a pension scheme which is administered by SPW. This pension scheme is a conditionally indexed average-pay scheme. Indexation (increases in line with price inflation) of the accrued rights and benefits is only possible if the pension fund is sufficiently funded and the pension fund has taken the decision to do so. If warranted by the pension fund’s circumstances, the Board of Trustees can restrict the accrued rights and benefits. The pension scheme qualifies as a defined benefit plan under the Pensions Act. As at 31 December 2011, SPW’s estimated funding ratio was 101%. The pension fund’s funding ratio (fair value of the plan assets expressed as a percentage of the provision for pension liabilities measured according to DNB rules) as at balance sheet date was 98%. The minimum pension capital required (funding ratio) according to DNB is 105%. If a pension fund’s funding ratio is too low, it is required to take action. One measure it can take is to reduce the pensions. However, pension funds are not permitted to reduce pensions with immediate effect. This will not be possible before 2013 at the earliest. Despite the funding ratio as at 31 December 2011, a reduction in pensions by SPW in 2013 has not yet been considered. 30


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    In thousands of euros 2011 2010 16.5 Maintenance costs Planned maintenance 29,945 21,294 Work connected with changes of tenant 1,169 5,806 Day-to-day maintenance 6,202 8,503 Work connected with social needs / quality of life 582 1,597 37,899 37,200 16.6 Exceptional changes in value of current assets Land and development positions 1,931 -471 Stock of unsold homes 6,487 8,418 -471 16.7 Other operating expenses Corporate expenses 11,279 11,656 Other expenses 25,242 23,143 Costs of supplying goods and services 15,822 14,293 52,343 49,091 Operational expenses: Tax 9,652 9,874 Insurance 1,291 1,450 Contribution to national federation 336 331 11,279 11,656 Other expenses: General overheads 11,696 9,608 Other staff costs 2,054 1,292 Temporary staff 817 1,255 Premises costs and office equipment 2,126 1,988 ICT costs 2,737 2,363 Property development project acquisition and preparation 49 740 costs Council of Members 154 122 Professional fees 2,700 2,128 Miscellaneous operating expenses 2,909 3,646 25,242 23,143 In thousands of euros 17 Financing command expense 2011 2010 17.1 Interest and similar income Interest on other financial fixed assets 2,781 4,284 2,781 4,284 31


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    17.2 Interest on similar charges Interest on long-term liabilities 64,686 63,470 Capitalised interest on property and movable assets under -6,974 -8,900 development Interest on current liabilities 1,867 1,556 59,579 56,126 17.3 Gains and losses on derivatives Gains and losses on derivatives 31,008 0 31,008 0 A change was made in the year under review with respect to the recognition and measurement of the derivatives portfolio. Up to year-end 2010, cost price hedge accounting was used for the entire derivatives portfolio. On closer consideration, various elements in a number of derivative instruments do not qualify for hedge accounting. These elements included in the derivatives will be measured at fair value with effect from 2011. As a consequence of splitting off these elements, an amount of €37.1 million was included in the accruals and deferred income as at 31 December 2011 and an amount of €6.1 million in respect of cost of derivatives still to be amortised that is permanently associated with a hedge relationship has been included in the prepayments and accrued income. The recognised loss on derivatives in 2011 is therefore €31.0 million, of which €16.0 million relates to prior years. See also notes 5.4 and 10.3. In thousands of euros 18 Corporation tax 2011 2010 Current tax liability for the year -187 -332 Current tax liability for prior years 0 0 Movements in deferred tax -13,808 -3,094 -13,995 -3,427 The current tax liability for the year has been calculated as follows: Result before tax according to the consolidated financial statements -19,910 Unprofitable investments 40,877 Sales of newbuild -2,749 Result on sales of existing housing stock -23,828 Gains and losses on derivatives 31,008 Other permanent and temporary differences -15,390 Total permanent and temporary differences 29,919 Taxable amount 10,009 Reinvestment reserve 0 Taxable amount for the purposes of corporation tax for the year 10,009 Tax-loss carryforwards 10,758 Taxable amount -749 Current tax liability for the year -187 32


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    The weighted average effective tax rate was 70.3% (2010: 21.5 %). The high tax burden is due to the fact that a proportion of the valuation differences does not result in a deferred tax asset. Reference is made to 5.2. The current tax charges for the year are derived from subsidiaries not included in the tax group. 19 Transactions with related parties A transaction with related parties is said to have occurred when a relationship exists between the accredited institution and its participating interests, their directors and other senior executives. There were no transactions with related parties other than on a commercial basis. In connection with its ordinary activities, the accredited institution buys and sells goods and services from and to various related parties where the company has an interest of 50% or less. These transactions are generally conducted on a commercial basis on terms and conditions comparable to those for transactions with third parties. 33


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    Notes on the current value of the consolidated balance sheet 1. Introduction Stadgenoot measures the tangible fixed assets in operation using a form of current value, namely the value in use. Value in use provides Stadgenoot with an important tool for managing the value of the property portfolio and taking the right investment decisions. The value in use is given by the net present value of the future income from operation over the estimated remaining useful life of the let property. The value in use is calculated complex by complex and represents the future earning capacity of each complex. 2. Cause for changes in parameters Stadgenoot decided the basis of the calculation of value in use for the opening balance sheet in 2008. No material changes were made by Stadgenoot for the reporting period. WSW did, however, issue guidelines on the parameters to be applied which did result in adjustments. The coalition agreement included a contribution from the housing associations towards rent subsidy benefit with effect from 2014. This proposal has not yet been made official policy/enacted. It is also unclear how the contribution can be calculated and whether it would then count as part of the value in use. Consequently, the calculation of the value in use as at year-end 2011 does not take account of a possible rent subsidy contribution. A rough estimate suggests an annual contribution of €11 million commencing in 2014. Another element of the coalition agreement concerns the encouragement of tenants to move on and free up housing by raising the ceiling on the maximum permitted rent increase for tenants with household incomes of more than €43,000 to 5 percentage points above the rate of inflation. The government brought the necessary amendment bill before the Lower House on 22 December 2011. However, the amendment has not yet become law. As a consequence, the value in use as at year-end 2011 does not take account of a raising of the ceiling on the maximum rent increase for tenants with household incomes of more than €43,000. 3. Parameters The following paragraphs discuss the main parameters for Stadgenoot’s value in use calculations. A distinction is made in this context according to the following organisational elements of Stadgenoot: – Stadgenoot company financial statements: sections 3.1 to 3.7 – N.V. Stadsgoed (wholly-owned subsidiary): section 3.8 – N.V. Amsterdamse Compagnie (subsidiary with 66.7% ownership): section 3.9 3.1 Discount rate and earning power value adjustment The discount rate applied reflects the minimum required return on the investments in tangible fixed assets, this being also specifically stated in the accounting standards (CAR 121.324). A discount rate reflecting the current market interest rate and the specific risks attaching to an asset is the minimum rate of return that would be demanded by investors when considering an equivalent investment in terms of cash flow, time horizon and risk. In the case of Stadgenoot, the following general principles apply: • The higher the risk, the higher the required rate of return; • Apart from the market for rented social housing (with its own investors, representing a certain risk and yielding a specific return), the Amsterdam housing association sector is also involved in a separate market for commercial property (letting of business/industrial premises and homes in the deregulated rental market). Finally, there is a separate discount rate applicable to garages and car parks. At the instigation of WSW, the discount rate was reduced from 6.00 per cent to 5.25 per cent with effect from the 2010 financial statements. The inflation factor included in the discount rate was reduced from 2.25 per cent to 2.00 per cent. Having regard to the requirements of the accounting standards and other considerations, it has been decided to use the standard discount rate, based on 2.00% inflation, for the next five years. 34


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    The real discount rate will subsequently be applied for the period from the sixth year onwards. Finally, the interest on the funding side is accounted for separately by means of an earning power value adjustment. This has the advantage of ignoring short-term influences due to interest rate volatility and that both the long-term minimum return requirement and the effect of current interest rates on the portfolio are treated separately. The above can be presented in tabular form as follows: Tangible fixed assets in Period Standard or Overall rate Inflation Risk markup Overall rate operation real of return of return Dwelling units 1-5 years Standard 3.25% 2.00% 0.00% 5.25% Rented social housing 6-50 years Real 3.25% 0.00% 0.00% 3.25% Dwelling units 1-5 years Standard 3.25% 2.00% 0.25% 5.50% Deregulated housing 6-50 years Real 3.25% 0.00% 0.25% 3.50% Commercial/industrial 1-5 years Standard 3.25% 2.00% 1.25% 6.50% premises 6-50 years Real 3.25% 0.00% 1.25% 4.50% Garages/car parks 1-5 years Standard 3.25% 2.00% 0.50% 5.75% 6-50 years Real 3.25% 0.00% 0.50% 3.75% Solids 1-5 years Standard 3.25% 2.00% 0.00% 5.25% 6-50 years Real 3.25% 0.00% 0.00% 3.25% 3.2 Parameters Price inflation for 2012 has been arrived at on the basis of the short-term estimates produced by the CPB, the Netherlands Bureau for Economic Policy Analysis. The same basis has been used for wage inflation in 2012 because the CLA for 2012 had not yet been finalised. For the ensuing years, the percentages have been kept at 2.00%. Property price inflation, which is used for calculating the selling prices of the existing housing stock, has been set at -5.0% for 2012, -1.0% for the three years thereafter and 0.0% after that. Wage inflation is set to rise in the next four years, with an estimate equal to last year’s rate after that. Price inflation is also higher in the next four years and has been estimated at last year’s level after that. Estimated property price inflation is lower than last year for all years. Wage Wage Price Price Property Property inflation inflation inflation inflation price price inflation inflation Year 2011 2010 2011 2010 2011 2010 2011 n/a 1.50% 2.30% 1.50% n/a 1.00% 2012 1.75% 1.60% 2.00% 1.60% -5.00% 1.10% 2013 2.00% 1.70% 2.00% 1.70% -1.00% 1.20% 2014 2.00% 1.80% 2.00% 1.80% -1.00% 1.30% 2015 2.00% 1.90% 2.00% 1.90% -1.00% 1.40% 2016 2.00% 2.00% 2.00% 2.00% 0.00% 2.00% 2017 and beyond 2.00% 2.00% 2.00% 2.00% 0.00% 2.00% 3.3 Investments and disposals All expenditure on maintenance, with the exception of investments classed as expansion, taken into account in calculating the value in use is recognised as maintenance costs. There is therefore no capital expenditure on maintenance included in the value in use. Replacement investments no longer figure in the system because they are now part of the maintenance costs, which are included in the carrying amount for the remaining life of the property. For the approach to cash flow, the distinction between maintenance costs and replacement investments is not relevant. Some of the maintenance costs (including ad hoc maintenance, maintenance with changes of tenant and planned maintenance), are by their nature not included in the value in use, as they are considered to be expansion investments. 35


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    Cash flows relating to disposals are included in the calculation for a period of five years, as required by the accounting standards. The following table shows the net proceeds from sale and the number of homes sold each year. Net sales proceeds represents the selling price less costs, such as refurbishment costs and costs of dividing properties. Out of Stadgenoot’s total number of rental units (33,651), 8,671 are included in a ‘sales pool’ from which homes are sold to both sitting tenants and private buyers. This does not, however, imply that all these homes will ultimately be sold since it is Stadgenoot’s general policy that not more than 49% of the number of units in a particular complex can be sold off. Sales are only included in the calculation for the first five years. No sales are included in the value in use from the six-year onwards, even if a formal decision to sell has been taken. In thousands of euros 2012 2013 2014 2015 2016 Net sales proceeds 30,484 34,257 36,008 40,955 42,213 Number of homes sold 210 230 240 275 275 Net sales proceeds per rental unit 145 149 150 149 154 3.4 Rental income, vacancies and rate of turnover With effect from 1 July 2011, the level of social housing rents was adjusted in line with the inflation rate for 2010. The same system will be applied to the 2012 rent increase. With effect from 1 July 2012, the level of social housing rents will be adjusted in line with the inflation rate for 2011. That means a maximum rent increase for social housing in the coming year (1 July 2012-30 June 2013) of 2.3%. This has been laid down in a government decision. No decisions have yet been taken for the years beyond this and Stadgenoot is therefore applying the same figure. Section 5.4 describes the effect in financial terms of this inflation linked policy for the level of rents. As in the preceding year, the restriction on the number of homes in the core housing stock has again been abandoned. In addition, the ‘Donner’ rent policy concerning the raising of the rent ceiling by 15 or 25 basis points in areas of housing shortage has been taken into account in calculating the value in use, along with associated restrictions, meaning that this does not apply absolutely to all rented social housing. As in 2010, for the lost rent percentage used in calculating the value in use in 2011, a distinction has been made between rented social housing, deregulated rented housing, business premises and car parks. A further distinction was also made in 2011 between care institutions and Solids. As in previous years, the value in use for 2011 takes account of different rates of tenant turnover according to dwelling units, garages and business premises. 3.5 Maintenance, remaining useful life and residual value of land The remaining useful life of the portfolio as at year-end 2011 is 26.5 years, representing an average decrease of 0.1 years compared with 2010. For a large proportion of the properties, the useful life has declined by one year. The addition of 232 newbuild units and the completion of 90 redeveloped units returned to operation had a minor moderating effect on the decrease in remaining useful life. A minimum life of 30 years is used for complexes included in the sales pool. This is the same as was used for the 2010 value in use. Also accounted for in the value in use for 2011, as in preceding years, are the demolition plans. The existing useful life has also been revised to take account of planned upgrading of properties and, where applicable, the useful life has been increased on completion of improvements. Subject to improvements and demolitions, a minimum remaining useful life of 12 years has been used. Again in 2011, planned maintenance is based on a long-term maintenance plan for each complex. The basis for this maintenance plan is a visual inspection of the state of repair of a complex (condition measurement), leading to a decision regarding the maintenance expenditure which is needed to achieve the remaining useful life and vice versa. In this way, the planned maintenance expenditure on a complex and the useful life of that complex are interlinked. The calculation of the residual value of the land is based on the existing use. The residual value of the land at the end of the operating period is based on its fair value. The fair value is based on a comparable site, indexed up to the end of the useful life. The calculation of the residual value also takes into account the value of 36


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    purchased long leases beyond the end of the operating period. Solids is a special product. The structure of these buildings is built of sustainable, low-maintenance materials. The floors are open plan, allowing for any arrangement of partition walls, and the building is handed over as a shell. All built-in fixtures and fittings are fitted and maintained by tenants. The building itself is therefore very low-maintenance and, in principle, not subject to obsolescence. It is assumed that, with regular maintenance, the existing investment in the structure will retain its value for at least 50 years. This is why a different residual value is taken into account in the carrying amount of Solids, namely the net present value of the indexed existing investment. 3.6 Average cash flows per rental unit Stadgenoot analyses its cash flows at individual asset level. Standard amounts are only used if there is no apparent relationship between asset and costs. To increase the insight into the value in use, we have calculated the average cash flows per rental unit over a period of five years. Average cash flows per rental unit per annum Stadgenoot (at company level) 2011 2010 Rents 5,429 5,214 Lost rent 183 152 Planned maintenance 714 703 Ad hoc repairs 240 219 Work connected with changes of tenant 61 99 Work connected with social needs / quality of life 63 82 Corporate expenses 404 375 Administrative expenses 1,040 1,046 Notes on significant changes • Average rental incomes have largely increased as a result of the annual round of rent rises. These were higher owing to the higher rate of inflation on average. The ‘Donner’ rent policy applying to housing shortage areas also lead to higher rental incomes. • The figure for lost rents was revised upwards on the basis of improved insight. • Work connected with changes of tenant and work connected with social needs/quality of life were down. The overall drop in maintenance costs was 2.4%. • Corporate expenses were higher overall. The increase is accounted for by tax and insurance, both of which were set higher on the basis of budget information. • Administrative expenses were slightly lower overall, based on revised insights. 3.7 Allocation to complexes In preparing the financial statements, housing associations are required to comply with the provisions of Book 2, Part 9, of the Netherlands Civil Code and Dutch GAAP Guideline 645. This guideline has been enhanced, with the tougher standards applicable to financial years commencing on or after 2004{ 2004 is juistAN}. They include the requirement that the allocation to complexes for the purposes of calculating the value in use should reflect: • internal management structures • policy with regard to specific product/market combinations (consistency of policy). Within Stadgenoot, management of the portfolio in relation to future value is based on the different areas into which the Amsterdam market is divided. The allocation to complexes has been revised accordingly for calculating the value in use, with a new allocation being adopted for Stadgenoot. The two predecessors, AWV and Het Oosten, each have their own allocation to 37


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    complexes for calculating their value in use. The allocation used in the opening balance sheet for 2008 was the same as that used in 2011. A change in the allocation to different complexes, incidentally, does not affect the amount of the value in use. 3.8 Subsidiary N.V. Stadsgoed N.V. Stadsgoed is a wholly-owned subsidiary of Stadgenoot, with property concentrated in the centre of the city. Stadsgoed applies the same parameters as Stadgenoot for calculating the value in use. With effect from the 2006 financial statements, Stadsgoed reduced the risk markup for business premises from 1.25% to 0.75%. The risk profile of the business premises in the centre of Amsterdam is very different from that of business premises elsewhere in the city or in other urban centres. This is mainly due to the relative scarcity of business premises, especially in the segment of the market in which Stadsgoed operates, namely that of small business premises and buildings housing several businesses. Other factors taken into account in the reduction of the risk markup were the low level of lost rents, the good state of repair of the property and the low turnover of tenants due to the acceptable level of normal market rents. 3.9 Subsidiary N.V. Amsterdamse Compagnie N.V. Amsterdamse Compagnie a subsidiary in which Stadgenoot has a 66.7% stake, the remaining 33.3% being owned by the City of Amsterdam. Object of this organisation is to create small-scale business premises. In its projects, Amsterdamse Compagnie strives to improve the quality of life in the locality where possible and desirable. N.V. Amsterdamse Compagnie applies the same parameters as Stadgenoot for calculating the value in use. 4. Overall picture of the tangible fixed assets in operation Summarising, the current value of the tangible fixed assets in operation in 2011 and 2010 was as follows: Tangible fixed assets in operation, in millions of euros Financial Financial Change Statements Statements 2011-/-2010 2011 2010 Stadgenoot (company) 2,182.3 1,939.2 243.1 N.V. Stadsgoed 144.0 120.3 23.6 Amsterdamse Compagnie 21.8 21.7 0.1 Stadgenoot (consolidated) 2,348.0 2,081.2 266.8 5. Analysis of differences Compared with 2010, there was an increase of €266.8 million in the tangible fixed assets in operation. An analysis of the differences reveals the various movements in the value in use. The separate causes of these movements are presented in the following table and discussed below. Position as at 31-12-2010, in millions of 2,081.2 euros Step 1: organic changes -19.8 Step 2: movements in housing stock 88.5 Step 3: changes in parameters 36.1 Step 4: policy changes 133.8 Step 5: earning power value adjustment 4.5 Step 6: subsidiary N.V. Stadsgoed 23.6 Step 7: subsidiary Amsterdamse Compagnie 0.1 Position as at 31-12-2011 2,348.0 5.1 Organic changes: €19.8 million negative Step 1 shows the effect of organic changes in 2011, moving forward 12 months (to year-end 2011). The change in value is explained by the removal of cash flows in 2011 (€111.4 million negative) which is only partially 38


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    offset by the effect of moving the remaining cash flows one year closer (€91.6 million). The remaining useful life of the complexes still averages 27 years. At this stage of the life-cycle, the value in use is generally seen to increase. In this case, however, that is not the picture. The cash flows removed from the equation in 2011 have a greater impact than the effect of discounting all future cash flows over a period that is shorter by one year. This is due to the absence of a substantial cash flow in the form of sales proceeds (€38.3 million). Overall, the effect of organic changes is to reduce the value in use by €19.8 million. The 2011 value in use figure, incidentally, also includes the expected sales for 2016 (the fifth year), since Stadgenoot proceeds on the basis of a sales pool which is replenished each year. The adjustments in the expected sales for the period 2012-2015 are also accounted for in the value in use. This effect is included in step 4, policy changes. 5.2 Movements in housing stock: €88.5 million positive Disposals: €3.5 million positive The projection was for 250 homes to be sold whereas in reality disposals totalled 214. In addition, 15 business premises and five car parks were sold. The homes actually sold were, for the most part, not those included in the projections. This obviously depends on the actual mutations during the year. The overall effect on the value in use was an increase of €3.5 million. New additions to the housing stock: €83.7 million positive New rental units were again taken into operation in 2011. The number of newbuild rental units was 232 and a number of other new rental units was 117, of which 90 rental units resulted from property development/redevelopment. The value in use of the newbuild and other new additions to the stock was €68.2 million and €15.5 million, respectively, with development/redevelopment projects accounting for €11.1 million. Improvements: €7.3 million positive Various properties were upgraded in 2011, resulting in additional rent increases, extensions to the useful life and/or extra WWS (home valuing scheme) points. The number of rental units involved is 771. The improvements concerned did not involve taking the rental units out of operation. Demolition: €0.8 million negative Expectations were that 17 units would be demolished whereas the actual figure was 14. This basically has a positive impact on the value in use but a different allocation of sales meant that sales proceeds were lower and the value in use was down. The overall effect on the value in use was a drop of €0.8 million. Other rental units lost from the housing stock: €5.2 million negative Twelve rental units were lost from the housing stock and from the value in use for other reasons. In seven cases, this was the result of combination with other rental units, the remaining five rental units being removed from the operating stock for use by Stadgenoot. 5.3 Changes in parameters: €36.1 million positive The parameter changes stem from a change of view with regard to the future in relation to the various parameters that are important in the calculation of the value in use. We are not talking about policy changes at this stage but about the projected rate of inflation, discount rate and useful life. Indexation increases: €12.0 million positive The estimated rate of wage inflation is higher in the first four years and equal to the rate one year ago in subsequent years. Price inflation is also higher in the next four years and has been estimated at last year’s level after that. Estimated property price inflation is lower than last year for all years. The value in use increases by €12.0 million as a result of these changes affecting indexation. Discount rate: €0.2 million negative The discount rate and the risk markups remain unchanged. For 1,180 rental units, the risk markups have been revised following changes in classification. The value in use decreases by €0.2 million as a result of these 39


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    adjustments. Useful life: €24.3 million positive The remaining useful life of the portfolio as at year-end 2011 is 26.5 years, representing an average decrease of 0.1 years compared with 2010. In principle, the useful life of the existing housing stock has been reduced by one year. The addition of 232 newbuild units and the completion of 90 redeveloped units returned to operation had a minor moderating effect on the decrease in remaining useful life. Reconsidered demolition decisions and planned improvements to property have also been taken into account. Subject to improvements and demolitions, a minimum remaining useful life of 12 years has been used. The value in use increases by €9.0 million as a result of these adjustments. In addition, a minimum life of 30 years has been used, based on 2010 value in use, for complexes included in the sales pool. The increase in the useful life of the sales pool has the effect of increasing the average useful life by 0.6 years. This concerns a total of 6,156 units, the useful life of which has been increased by an average of 3.1 years. The normal reduction in useful life of one year has been applied in the case of the remaining 2,515 units in the sales pool. The value in use rises by €15.3 million as a result of the revised useful life relating to the sales pool. For these units, a relatively greater maintenance requirement has been taken into account. See the notes on maintenance. Overall, the value in use rises by €24.3 million as a result of the revised useful life. 5.4 Policy changes: €133.8 million positive Finally, apart from the altered assumptions for the parameters, changes in policy for 2012 and beyond also give rise to a change in the value in use. Rent policy: €137.3 million Actual rents as at year-end 2011 were higher than forecast. In addition, target rents and official housing valuation system points (WWS points) have been revised, leading to an overall increase in the value in use of €7.2 million. The ‘Donner’ housing shortage area rent policy led to a further adjustment of target rents and WWD points, resulting in a net increase in the value in use of €130.1 million. Lost rent: €15.5 million negative To calculate the 2011 value in use, there have been changes in the lost rent percentages compared with the figures used for the 2010 value in use. The lost rent figure for rented social housing has been increased from 2.21% to 2.46%, an increase of 0.25 percentage points. For deregulated housing, the figure has been increased from 4.60% to 8.40%, or 3.80 percentage points. For business premises, the increase is from 2.45% to 5.50%, or 3.05 percentage points. The car park lost rent figure by contrast has been reduced from 38.0% to 31.7%, a reduction of 6.3 percentage points. Overall, the value in use falls by €15.5 million as a result of these adjustments. Operating expenses: €13.6 million positive The following comments can be made with respect to operating expenses: • Administrative expenses charged to the value in use were down, on the basis of revised insights. The value in use rises by €11.6 million. • Ground rent: The value in use falls by €2.1 million. The lower figure for long lease purchases has been included in the calculation, meaning an increase in ground rents. This is partly the effect of changes in the planned increase in the sales pool in the years ahead. • Tax and insurance: More costs have been included in the calculation, leading to a reduction in the value in use of €11.3 million. This results from an increased estimate of these costs for 2012 compared with the 2011 estimate. • Maintenance: The projected maintenance costs are lower than in the preceding year, resulting in an increase in the value in use of €15.4 million. Lower figures have been used for planned maintenance, maintenance with changes of tenant and maintenance connected with social needs / quality of life, having the effect of increasing the value in use by €6.3 million, €8.0 million and €11.3 million, respectively. A higher figure has been used for ad hoc maintenance, having a negative effect of €10.2 million. As regards planned maintenance, a relatively greater allowance has been made for units included in the sales pool compared with the other units to ensure that the state of repair of the units held for sale continues to 40


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    give them a remaining useful life of 30 years. For the 6,156 units on which the useful life has been extended by an average of 3.1 years, this has a negative effect on the value in use of €10.8 million. The same method was used to calculate the 2010 value in use. Investments and disposals: €1.6 million negative • Stadgenoot proceeds on the basis of a sales pool which is replenished each year. Sales over the next five years are included in the calculation, with the first year which is removed from the sales equation in connection with organic changes replaced by the addition of one year. The value in use in 2010 took into account 1,455 disposals and the 2011 figure took into account 1,411, or 44 fewer. The sales falling out of the equation in 2011 totalled 250, for the period 2012-2014, 69 fewer sales were included in the calculation and, for 2016, 275 fewer. In this step, therefore, 206 more sales were included. Overall, this meant a greater drop in operating cash flows than the cash flow generated by sales proceeds, producing an overall negative effect of €8.1 million. The calculation of the value in use for 2011, in contrast to the 2010 value in use, also includes 114 business premises and 67 car parks as sales. These transactions have been taken into account in the above figures. • The value of demolitions was up by €3.9 million. The 2010 value in use included 1,961 demolitions and the 2011 figure 1,421, some being different from the properties scheduled for demolition. The lower volume of demolitions results in a higher value in use, owing to the resultant increase in the average useful life, with an increased cash flow on balance. • The residual value at the end of the useful life has dropped by €4.3 million. This is partly accounted for by the downward adjustment in the amount of long lease purchases. • The allowance for purchase of long leases, as already mentioned, has been adjusted downwards, resulting in an increase in the value in use of €6.9 million. 5.5 Earning power value adjustment: €4.5 million positive The increase in the earning power value adjustment is due to revised interest rates and new loans which have been drawn down (€12.8 million). On an organic basis (maturity of existing loans reduced by one year and maturing loans repaid), there was a decrease of €8.3 million. The discount rate was down by 0.007%. The effect this has in reducing the earning power value adjustment is negligible. The earning power value adjustment rose overall by €161.8 million to €166.3 million. 5.6 Subsidiary N.V. Stadsgoed: €23.7 million positive Like Stadgenoot, the wholly-owned subsidiary N.V. Stadsgoed measures its assets at current value. Compared with 2010, there was an increase of €23.7 million in the tangible fixed assets in operation. An analysis of the differences reveals the various movements in the value in use. The separate causes of these movements are presented in the following table and discussed below. Position as at 31-12-2010, in millions of 120.3 euros Step 1: organic changes 1,6 Step 2: movements in housing stock 18,3 Step 3: changes in parameters 2.5 Step 4: policy changes 1,7 Step 5: earning power value adjustment -0.4 Position as at 31-12-2011 144.0 Organic changes: €1.6 million positive The remaining useful life of the complexes still averages more than 40 years. The organic change in value is due to the different timings of the calculation of the value in use (31-12-2010 and 31-12-2011). Cash flows between these dates are removed and the remaining cash flows move one year closer. Therefore, even with 41


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    no change in the portfolio, the same policy and unchanged parameters, the value in use will be different. The movement due to organic changes in 2011 was €1.6 million positive. Movements in housing stock: €18.3 million positive 26 new rental units were taken into operation in 2011. This has the effect of increasing the value in use by €18.4 million. One rental unit was taken out of operation following redevelopment, resulting in a decrease in the value in use of €0.1 million. Changes in parameters: €2.5 million positive For years 2012 and beyond, higher indices have been applied. This has a positive effect on the net present value of the rental income and the effect of increasing the operating expenses. Overall, the value in use rises by €2.0 million on the basis of the latest economic forecasts. The average useful life of the rental units increased, which has the effect of increasing the value in use by €0.5 million. Policy changes: €1.7 million positive Actual rents as at year-end 2011 were higher than projected. This has a knock-on effect on the way rents will rise in the future, increasing the value in use by €1.3 million. Lower expenditure has been budgeted for planned maintenance in the years ahead, increasing the value in use by €1.7 million. Finally, higher estimates for other operating expenses produce a negative movement in the value in use of €1.1 million. The net residual value has not been increased for prudential reasons, and this has a negative effect on the value in use of €0.2 million. Earning power value adjustment: €0.4 million negative The earning power value adjustment was down by €0.4 million. 5.7 Subsidiary Amsterdamse Compagnie (66.7%): €0.1 million positive Like Stadgenoot, N.V. Stadsgoed measures its assets at current value. Stadgenoot’s share in Amsterdamse Compagnie N.V. is 66.7%. Compared with 2010, there was an increase of €0.1 million in the tangible fixed assets in operation. An analysis of the differences reveals the various movements in the value in use. The separate causes of these movements are presented in the following table and discussed below. Position as at 31-12-2010, in millions of 21.7 euros Step 1: organic changes 0.2 Step 2: movements in housing stock -0.1 Step 3: changes in parameters 0.2 Step 4: policy changes -0.1 Step 5: earning power value adjustment -0.1 Position as at 31-12-2011 21.8 Organic changes: €0.2 million positive The total net cash flow in 2011 that was included in the value in use calculation as at year-end 2010 (the cash flow removed) amounted to approximately €0.9 million. The positive effect of all the remaining operating cash flows beyond 2011 moving one year closer is €1.1 million. The effect of the organic changes is a function of the remaining useful life of the complexes in continued use by the company. Movements in housing stock: €0.1 million negative There were no sales or demolitions in 2011. Two rental units were, however, declared not fit for letting and were accordingly taken out of operation. These two rental units had a combined value in use of approximately €0.1 million. Changes in parameters: €0.2 million positive The parameters based on the economic indices from 2010 have been replaced by the parameters from 2011. 42


  • Page 43

    The increase in the forecast rate of price inflation means that the net present value of the rental income rises by €0.1 million. The wage index and the market index also underwent upward adjustment and this has the effect of increasing sales proceeds by €0.1 million. Other income and expenses rise in line with this but the effects are negligible. Overall, the value in use rises by €0.2 million on the basis of the latest economic forecasts. Policy changes: €0.1 million negative Actual rents as at year-end 2011 were higher than projected in 2010. As a consequence, total rental income as at year-end 2011 was higher and this has a knock-on effect on future rent levels. Lost rents, staff costs and operating expenses have been accounted for at higher levels while the allowances for maintenance costs, taxes and the cost of insurance come in at a lower level. The overall effect on the value in use due to the new operating policy in 2011 is €0.2 million, the greater part of this impact being accounted for by the relatively large increases in the value in use due to the effects of lower maintenance costs and tax. De Amsterdamse Compagnie’s 2011 sales policy for its portfolio provides for premises to be sold after seven years in operation and takes appropriate allowances into account when planned disposal is within five years. Under this policy, an additional 56 rental units were sold than would have been the case under the 2010 sales policy. The net present value of the rent cash flows no longer received in respect of these rental units was considerably higher than the net present value of the sales proceeds. The combined impact is a sharply negative effect on the value in use of €0.3 million. Earning power value adjustment: €0.1 million negative Earning power value adjustment: €0.1 million negative The organic changes lead to a drop in the earning power value adjustment of €0.1 million. 6. Reconciliation of the movements in tangible fixed assets in operation on the face of the balance sheet and the movements in the current value of property in operation recognised in the profit and loss account The relationship with the amount recognised in the profit and loss account is presented as a movement in value of €179.8 million, made up as follows: Tangible fixed assets in operation Stadgenoot N.V. Stadsgoed Amsterdamse Stadgenoot in millions of euros (company) Companie N.V. (consolidated) Balance sheet movements 243.1 23.6 0.1 266.8 Investments -87.4 -21.4 -0.1 -108.9 Disposals 22.0 0.0 0.0 22.0 Movements in value in the profit and loss account 177.6 2.2 0.0 179.8 43


  • Page 44

    Company balance sheet as at 31 December 2011 In thousands of euros, after appropriation of result 1 Assets 31-12-11 31-12-10 Fixed assets Tangible fixed assets 20.1 Property in operation 2,182,258 1,939,186 20.2 Property underdevelopment 27,424 91,970 20.3 Property and other assets serving operations 47,250 25,512 2,256,932 2,056,668 21 Financial fixed assets Participating interests in group companies 80,250 78,099 Receivables from group companies 50,674 62,978 Other participating interests 45,298 33,216 Receivables from other participating interests 53,389 50,769 Other receivables 17 1,433 229,628 226,495 Total fixed assets 2,486,560 2,283,163 Current assets 22 Stocks 107,118 66,944 23 Work in progress 0 0 Debtors 24.1 Tenants 2,779 2,980 Public authorities 5 116 Group companies 686 1,135 24.2 Tax and social security contributions 37,576 29,873 24.3 Other receivables 6,952 5,106 24.4 Prepayments and accrued income 17,094 12,874 65,092 52,084 25 Cash 17,807 4,409 Total current assets 190,017 123,437 Total assets 2,676,577 2,406,600 1 2010 figures restated the comparison purposes. 44


  • Page 45

    1 Equity and liabilities 31-12-2011 31-12-10 26 Shareholders’ equity Share capital 0 16 Statutory reserve for participating interests 8,459 9,039 Other reserves 872,668 690,324 Total shareholders’ equity 881,127 699,379 Provisions 27.1 Provision for participating interests 0 10,269 27.2 Provision for deferred tax liabilities 2,644 8,748 27.3 Provision for unprofitable investments 25,315 16,335 27.4 Other provisions 3,693 1,550 Total provisions 31,652 36,902 Long-term liabilities 28.1 Loans 1,575,405 1,533,340 28.1 Guarantee deposits 9,949 9,213 Total long-term liabilities 1,585,354 1,542,553 Current liabilities 29.1 Amounts owed to credit institutions 84,500 56,832 23 Prepayments on WIP 634 440 Trade creditors 10,721 3,718 Amounts owed to group companies 44 22,040 29.2 Tax and social security contributions 3,837 4,854 29.3 Accruals and deferred income 78,708 39,882 Total current liabilities 178,444 127,766 Total equity and liabilities 2,676,577 2,406,600 1 2010 figures restated for comparison purposes. 45


  • Page 46

    Company profit and loss account for 2011 In thousands of euros 2011 2010 Operating income 30.1 Rents 169,047 162,928 30.2 Charges 14,805 12,055 30.3 Proceeds from sales of property 35,816 34,347 30.4 Change in work and projects in progress 45,117 3,905 Capitalised production for own use 4,372 1,204 30.5 Other operating income 15,728 13,017 Total operating income 284,884 227,455 Operating expenses 31.1 Costs of subcontracted work 59,916 10,987 Depreciation and amortisation 2,231 2,656 31.2 Other movements in the value of tangible and intangible 31,899 35,606 fixed assets Ground rent 2,972 2,775 31.3 Wages and salaries 22,370 18,743 Social security charges 3,189 2,392 Pension charges 3,955 3,205 31.4 Maintenance costs 37,308 41,573 31.5 Exceptional changes in value of current assets 4,652 -471 31.6 Other operating expenses 50,262 46,591 Total operating expenses 218,754 164,057 Operating result 66,131 63,398 Financing command expense 32.1 Interest and similar income 6,059 4,158 32.2 Interest on similar charges -56,658 -53,548 32.3 Gains and losses on derivatives -31,008 0 Total financing command expense -81,608 -49,390 Result on ordinary activities before tax -15,477 14,008 33.1 Corporation tax 13,808 3,094 Share in results of participating interests 5,786 -20 ,517 Group result after-tax before movements in current value of 4,116 -3,415 tangible fixed assets 20.1 Movements in the current value of property and 177,648 24,423 operation Net result 181,764 21,008 46


  • Page 47

    Company cash flow statement for 2011 In thousands of euros 2011 2010 Cash flow from operating activities Operating result 66,131 63,398 Adjusted for: - depreciation/amortisation 2,231 2,656 - other exceptional changes in value 36,551 35,135 - movements in provisions 2,143 8,060 Changes in working capital: - movements in provisions 2,133 26,924 - movements in current liabilities -25,759 -20,834 17,299 51,941 Cash flow from operations 83,430 115,339 Interest income 6,059 4,158 Interest expense -56,658 -53,548 Dividend from participating interests 0 0 -50,599 -49,390 Net cash flow from operating activities 32,831 65,949 Cash flow from investing activities Investments in tangible fixed assets: - property in operation -31,275 22,884 - property in development -14,526 -120,791 - property serving operations -23,969 -5,165 - movements in work in progress/stocks -44,632 10 Proceeds from disposals of tangible fixed assets 22,003 43,784 Movements in financial fixed assets -8,919 6,055 Net cash flow from investing activities -101,318 -111,101 Cash flow from financing activities Movements in guarantee deposits 736 429 Proceeds from long-term loans 139,000 182,000 Repayments of long-term loans -96,935 -115,187 Movements in save-as-you-earn accounts 0 -408 Movements in short-term loans 39,100 -20,100 Repayment of share capital -16 -4 Net cash flow from financing activities 81,885 46,730 Net cash flow 13,398 1,578 Movements in cash Opening balance 4,409 2,831 Closing balance 17,807 4,409 Total movements in cash 13,398 1,578 47


  • Page 48

    Notes to the company financial statements General For the balance sheet and profit and loss account items in respect of which disclosures are not made below, reference is made to the notes to the consolidated balance sheet and profit and loss account. Comparative figures The presentation of the comparative figures in the balance sheet has been changed to reflect the separation of speculative, pre-sale work in progress from post-sale work in progress. In addition, the funding of a long-term nature made available to participating interests has been included in financial fixed assets instead of debtors. The short-term loans have been included in amounts owed to credit institutions instead of other amounts owed. A company cash flow statement has been included for the first time in the 2011 financial statements. Accounting policies The accounting policies used for the valuation of assets and liabilities and for the determination of results are the same as those used for the consolidated balance sheet and profit and loss account. Statutory reserve for participating interests A statutory reserve for participating interests is formed containing accumulated profits and capital gains which cannot be distributed by the officially recognised housing institution. 48


  • Page 49

    Notes to the separate items of the company balance sheet In thousands of euros 20 Tangible fixed assets 20.1 Property in operation Value in use as at 1 January 2011 1,939,186 Movements in 2011: Investments 31,275 Impairment of purchased/renovated property -32,275 Transferred from under development 88,427 Disposals -22,003 Movements in current value 177,648 Value in use as at 31 December 2011 2,182,258 The book value based on historical cost is 1,653,054 A comprehensive explanation of the way in which the value in use is calculated can be found further on in the notes to the financial statements. Mortgaging The property and other assets serving operations are almost entirely financed with loans guaranteed by Waarborgfonds Sociale Woningbouw, with WSW having a first mortgage on those assets. As a condition for providing this guarantee, WSW requires borrowers to be ready to contribute a certain amount of committed capital per loan. The property and other assets serving operations that are financed with guaranteed loans are consequently not mortgaged. The amount of the exposure in respect of committed capital as at year-end is disclosed in the section on off-balance-sheet assets and liabilities. A portion of the property in operation has been mortgaged for an amount of €253 million . 20.2 Property underdevelopment Position as at 01 January 2011: Property underdevelopment 91,970 Provision for unprofitable investments -16,335 75,635 Cost 170,219 Accumulated impairment -94,584 Book value as at 1 January 75,635 Movements in 2011: Investments 14,526 Impairment 376 Transferred to property in operation -88,427 Balance -73,525 Position as at 31 December 2011: Cost 83,780 Accumulated impairment -81,671 Book value 2,109 49


  • Page 50

    Presented under: Property underdevelopment 27,424 Provision for unprofitable investments -25315 2,109 During the year, an amount of €6.9 million (2010: €5.8 million) was capitalised in respect of construction period interest relating to property under development. In the case of newbuild projects not financed on a specific basis, an average interest rate of 4.23% (2010: 3.88%) was applied. 20.3 Property serving operations Position as at 1 January 2011: Cost 34,890 Accumulated depreciation -9,378 Book value 25,512 Movements in 2011: Investments 23,969 Disposals 0 Depreciation -2,231 Balance 21,738 Position as at 31 December 2011: Cost 55,435 Accumulated depreciation -8,185 Book value 47,250 In thousands of euros 21 Financial fixed assets Participatin Receivable Other Receivable Other Total g interests s from participatin s from in group group g interests other companies companies participatin g interests Position as at 1 January 2011 78,099 62,978 33,216 50,769 1,433 226,495 Movements in 2011: Investments/advances 8,348 2,586 4,026 1 14,961 Disposals/repayments -4,844 -1,084 0 -5,928 Other -1,417 -1,417 Share in results of participating interests -3,388 10,580 -1,406 5,786 Dividends received from participating 0 0 interests Adjustment for negative value of 5,539 -15,808 -10,269 participating interest Position as at 31 December 2011 80,250 50,674 45,298 53,389 17 229,628 For a list of the participating interests of the officially recognised housing institution, reference is made to page 71. 50

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