Annual report 2008 - Altarea Cogedim

CONSOLIDATED FINANCIAL STATEMENTS
• In 2007
The change in the fair value of investment property yielded a gain of €411.9 million at 31 December 2007.
Assets delivered during the financial year led to an increase of €182 million in the fair value of investment property.
The impairment loss on other non-current assets, an expense of €2.35 million, derived predominantly from land on which
construction is no longer permitted.
The net allowance to provisions represented an expense of €0.13 million.
The difference in goodwill corresponds entirely to the reversal of negative goodwill resulting from Cogedim’s acquisition of
90% of the ownership units of Arbitrage & Investissements and Arbitrage & Investissements 2 during the second half of 2007.
Cogedim had previously held a 10% interest in each of these companies, whose business is selling individual housing units.
14.7. Net cost of debt
(in € thousand) 12/31/2008 12/31/20087 *
Bank interest costs (overdrafts) (511) (1,260)
Bank interest costs (debt) (5,296) (3,443)
Interest costs on loans from credit institutions
and current advances provided by external partners not capitalised
(89,891) (47,277)
Non–use fees (1,544) (309)
Finance costs on swaps (585) (992)
Interest income from swaps 20,408 6,924
Net proceeds from the sale of marketable securities 2,235 2,092
Other financial income and expense 27 (437)
NET COST OF DEBT (75,158) (44,704)
* Cogedim: contribution over 6 months
Interest expense on borrowings from credit institutions includes the effect of amortising issuance costs in accordance with
IAS 32 and IAS 39.
In 2008, the net cost of debt of the recurring activities (shopping centres in operation, property development for third parties)
amounted to €67.7 million, compared with €38.1 million in 2007. The increase was attributable to the acquisition and
start-up of new shopping centres in 2008.
In 2008, the net cost of debt of the non-recurring activities amounted to €7.4 million, compared with €6.6 million in
2007. In general, in the non-recurring activities, in particular shopping centre development, finance costs are capitalised in
accordance with the revised IAS 23.
n Capitalised finance costs
(in € thousand) 12/31/2008 12/31/2007 *
Capitalised finance costs (29,694) (20,574)
* Cogedim: contribution over 6 months
Capitalised finance costs related only to companies carrying an asset under development (shopping centres and property
development for third parties).
The capitalisation rate used to determine the amounts of borrowing costs that may be included in the carrying amount of
assets corresponds to the interest rate on financing assigned specifically to asset development or, if there is no specific
financing, to the average cost of debt borne by the Group and not assigned specifically to another purpose, which is roughly
3.5%.
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