Rental income
Amounts in EUR | 31/12/2023 | 31/12/2022 |
Rental income and rental discounts for investment properties | 48,088,996 | 37,887,735 |
Rent | 46,279,419 | 35,809,749 |
Rental discounts | 1,809,578 | 2,077,986 |
Income from financial leases and other similar leases | 17,816,568 | 16,491,130 |
Ground rent | 17,816,568 | 16,491,130 |
TOTAL | 65,905,564 | 54,378,866 |
The item \u2018Rental income and rental discounts for investment properties\u2019 concerns the income from I.C. Investment properties, accounted for in accordance with IAS 40. As at 31 December 2023, these accounted for 72.97% of the Company\u2019s total rental income.
The item \u2018\u2018Rental income from finance leases and similar\u2019 concerns the rental income from buildings, which the Company owns and which it receives as lessor and were recorded as rental income in the global result statement, as they relate to recurring income that the Company receives from its buildings(1).. This rental income relates on the one hand to the portfolio built up until 2014 with local PCSWs (public centre for social welfare -local governments) and non-profit organisations (initial portfolio(2)) and on the other hand to new leases entered into after 2014 (new portfolio(3)), all of which are generated by I.F. Finance lease receivables in the consolidated balance sheet. For the finance leases from the new portfolio, the ground rent payments are split between \u2018investment value\u2019 and \u2018income\u2019: the investment part is booked under I.F. Finance lease receivables in the balance sheet, the income part is booked under I. Rental income in the global result statement. As at 31 December 2023, the ground rent received by the Company from its finance leases represents 27.03% of the total rental income of the Company.
The 21.20% increase in rental income stems from (i) the indexation of the already existing leases (unchanged portfolio), which has been fully passed on and amounts to an average of 10.42% as at 31 December 2023, representing an amount of \u20ac5.0 million, (ii) the acquisition of new investment properties and (iii) the completion of development projects in 2023. Similarly, the acquired and completed investment properties during 2022 contribute to the increased rental income in 2023.
Future ground rent receipts (in accordance with IFRS 16)
Amounts in EUR | 31/12/2023 | 31/12/2022 |
Future ground rent and rent payments | 111,893,690 | 137,601,054 |
Expiring < 1 year | 9,785,680 | 10,374,953 |
Expiring between 1 year and 5 years | 37,021,861 | 40,581,607 |
Expiring > 5 years | 65,086,150 | 86,644,494 |
Future ground rents are at least equal to the contractually agreed ground rents for the entire duration of the project and do not take into account annual index adjustments. For the finance leases from the new portfolio, these also include the repayment of the investment, which at the time of receipt will be written off from I.F. Finance lease receivables in the balance sheet.
(1) For a comprehensive legal analysis, see chapter \u2018II. Report of the Board of Directors\u2019 under \u20181. Strategy: Care building in complete confidence\u2019 on page 54.
(2) As at 31/12/2023, the initial portfolio has a balance sheet value of \u20ac156,518,610 and a generated rental flow of \u20ac17,000,894.
(3) As at 31/12/2023, the new portfolio has a balance sheet value of \u20ac10,186,663 and a generated rental flow of \u20ac815,674.