Belgian REITS (Sicafis- Vastgoedbevaks)
Deloitte Real Estate was at the forefront of the development of the Belgian REIT’s sector by contributing to the 1996 Royal Decree that was the foundation of the sector, and by designing the structure of the Belgian Sicafi’s financial statements. Since then, the Deloitte Real Estate Audit Partners authored the financial reporting chapters of the 2006 memorial book on the first ten-years of the Belgian Sicafis sector, and our Audit Partner Pierre-Hugues Bonnefoy is actively assisting the European Public Real Estate Association (EPRA) in its Best Practices Committee.
Deloitte Bedrijfsrevisoren is the statutory auditor of 7 out of the 14 Belgian listed Real Estate Investment Trusts (REIT) (Vastgoedbevaks – Sicaf immobilier), representing 2/3 of the market capitalization. A REIT is governed by specific laws in Belgium, determining amongst other:
- The functioning of the REIT;
- The issuance, sale, trading of shares;
- The publication requirements;
- The investment policy;
- Maximum indebtedness;
- Minimum dividend pay out;
- IFRS scheme for preparing financial statements
In addition, a REIT is characterized by a specific taxregime.
We have gained very relevant experience inauditing REIT's and are well aware of the latest developments in accounting principles in general and the IFRS impacts on the financial statements of a REIT, such as
- The accounting for acquisitions of real estate structured in a company and whether IFRS 3 on business combinations should be followed;
- When to account for assets held for sale and impact on the valuation (IFRS 5);
- Information to disclose on financial instruments (IFRS 7);
- Classification of lease contracts as operating or financial lease;
- Fair value valuation of investment properties.
Next to our audit mandates, we also act as a trusted business partner for various other Begian REITs.
Our experience in the Belgian Sicafis-Vastgoedbevaks sector stems from this specialized collective expertise, our IPO’s preparatory work, and recurring audit and/or tax related services for the majority of the sector.