Annual report 2008 - Altarea Cogedim

Notes to the income statement
Revenue
Breakdown of revenue (in € thousand)
The Company’s revenue consists of rental income and
service charges billed to tenants of shopping centres held in
the portfolio and, secondly, rental income and income from
expenses rebilled to ALTAREA group service companies.
Revenue 12/31/2008 12/31/2007
Rebilled rent and service charges 30,154 28,287
Initial lease fees 739
Intra-group rebillings 3,454 1,675
Other 206 1,049
Total 34,553 31,011
The increase of 6.6% in rental income and service charges
billed was attributable to the impact of the annual indexation
of rent and asset management efforts.
Income of €739 thousand was recognised in respect of
initial lease fees charged upon the signature of new leases.
No initial lease fees were invoiced in 2007.
Internal transfers of billings related to two types of
expense:
• advertising and trade fair costs amounting to €2,645 thousand
vs. €1,675 thousand in 2007,
• a portion of Managers’ fixed fee with effect from 1 July
2008 in an amount of €809 thousand
Other items reflect ancillary billings of car park rent at a
shopping centre. During 2007, the Other line item included
the rebilling to a subsidiary of a portion of the Managers’
discretionary fee. For 2008, the fees rebilled in respect of
this portion of Managers’ discretionary fee are shown under
other operating income.
Other operating income
The increase in other operating income was principally
attributable to the capitalisation of expenses incurred on a
plan to extend a shopping centre in Toulouse owned by the
Company.
Breakdown of other operating income (in € thousand)
Operating income 12/31/2008 12/31/2007
Own work capitalised 1,215 16
Reversals of provisions 202 26
Intra-group rebillings and expense transfers 711 247
Other 1 18
Total 2,128 308
Operating expenses
Operating expenses reflect the expense incurred by
ALTAREA SCA in respect of its owned property business
(service charges, property taxes, depreciation) and in
respect of its holding company activities (chiefly fees and
communication).
Breakdown of operating expenses (€ thousand)
12/31/2008 12/31/2007
Service and co-ownership costs (1) 5,551 5,376
Insurance premiums 1,007 903
Sales commission
and professional fees
(2) 9,959 13,290
Advertising and communication (3) 3,484 1,573
Banking services
and related accounts
232 334
Taxes other than on income (4) 1,544 1,428
Staff costs (5) 209 1
Allowances for depreciation
and impairment
10,625 10,183
Purchases transferred
to inventory
(6) 1,215
Lessee termination fees (7) 670
Other expenses 544 251
Total operating expense 35,040 33,340
(1) Service charges in almost their entirety are rebilled to tenants.
(2) Fees and commission notably include the fixed portion of the Managers’ fee
and a portion of its discretionary fee based on sales recorded by the property
development for third parties business, rental management and shopping centre
development fees, costs related to incomplete acquisition plans, statutory
auditors’ fees and expenses incurred through the assumption of control of
Fromageries Paul Renard.
The reduction in fees and commission in 2008 compared with 2007 was
attributable to the highly significant transactions that occurred during 2007,
which led to a high level of fees (acquisition of Cogedim and Semmaris, a public
buy-back offer and conversion into a SCA).
A proportion of the Managers’ fee is rebilled to Group subsidiaries.
(3) Advertising and communication costs notably include expenses for trade
fairs, financial reporting, internal communication, corporate patronage and
sponsorship.
The increase compared with 2007 was attributable to the increase in internal
communication costs, the impact of signing new corporate patronage and
sponsorship agreements and the pooling of certain items of expenditure
previously incurred by subsidiaries.
Most of the advertising and external communication costs are passed on to the
Group’s subsidiaries.
(4) Property taxes on shopping centres amounted to €1,414 thousand. Almost
the entire amount of these taxes are passed on to lessees.
(5) Staff costs cover the remuneration paid to Jacques Nicolet in his capacity
as Chairman of the Supervisory Board of June 2008. Managers’ fixed fee was
reduced proportionately.
(6) Purchases transferred to inventory related to the extension of a shopping
centre and were capitalised with a corresponding adjustment in production
transferred to inventory in other operating income.
(7) A lease termination payment was made in 2008 to a lessee.
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