13. Investment property
|
(in millions of euros) |
2025 |
2024 |
|
Composition 1 January |
||
|
Acquisition price |
268 |
273 |
|
Accumulated depreciation and impairment losses |
155 |
151 |
|
Carrying amount as at 1 January |
113 |
122 |
|
Movements |
||
|
Investments |
3 |
4 |
|
Depreciation |
-7 |
-7 |
|
Divestments |
-1 |
-2 |
|
Other movements |
1 |
-4 |
|
Total movements during the financial year |
-4 |
-9 |
|
Composition as at 31 December |
||
|
Acquisition price |
269 |
268 |
|
Accumulated depreciation and impairment losses |
160 |
155 |
|
Carrying amount as at 31 December |
109 |
113 |
In addition to commercial premises for third parties, the real estate objects consist of other real estate objects that are leased to third parties or held as strategic real estate. The Group also has real estate for its own use, which is included under tangible fixed assets. The lease agreements generally contain a period of several years during which termination is not possible. These real estate properties and property, plant, and equipment (real estate for own use) are not part of the HRN cash-generating unit (as described in note 15).
Given the nature, diversity, and locations (station environments) of the real estate portfolio, its fair value is not determined periodically, unless there is an indication of impairment. Based on management estimates, in combination with the most recent appraisals obtained, there are no indications of impairment on this portfolio. Further analyses in the context of impairment have therefore not been performed.
As a result of lower passenger numbers, discounts amounting to €1 million were granted for 2024. These discounts are amortised over the remaining term of the lease agreements. No discounts were granted in 2025.
The total contractual rent until the end of the lease agreements (both real estate and property, plant, and equipment) amounts to approximately €323 million at year-end 2025 (2024: €369 million). No contingent rent amounts are charged. The term of the contractual rent is as follows:
|
(in millions of euros) |
< 1 year |
1-2 years |
2-3 years |
3-4 years |
4-5 years |
> 5 years |
Total |
|
Rental income |
78 |
47 |
43 |
31 |
21 |
103 |
323 |
Direct rental income amounts to €35 million (2024: €33 million). Direct rental costs relate to maintenance costs, property charges, and direct management costs totaling €9 million (2024: €8 million).
Accounting policy
Real estate objects include real estate held to generate rental income, capital appreciation, or both. Real estate objects are valued at cost less cumulative depreciation and cumulative impairment losses. The cost of self-constructed assets includes material costs, direct labour costs, a reasonable portion of indirect production costs, and financing costs. Where relevant, the estimated costs of dismantling and removing the asset and restoring the site where the asset is located are added to the cost.
The following principles apply to real estate objects:
Components
If real estate objects consist of components with unequal useful lives, these components are specified as separate items under real estate objects.
The cost of renovating (part of) a property is included in the carrying amount of that asset when the expenditure is incurred and if it is probable that the renovation will result in future economic benefits. All other costs of maintaining the assets are recognised as an expense in the income statement when incurred.
Depreciation
Depreciation on real estate properties is calculated on a straight-line basis, less residual value, and based on the estimated useful life of each individual tangible fixed asset. Depreciation is charged to the income statement.
The estimated useful lives of the real estate properties are as follows:
|
Type of assets |
Depreciation period |
|
Foundations and substructure |
100 years |
|
Framework and core |
50 years |
|
Facades and exterior walls |
33 years |
|
Roofing |
15 years |
|
Interior finishing |
15 years |
|
Technical installations |
15 years |
The stated useful life is an average of the assets included and any components of which the assets consist. The depreciation method, remaining useful life, and residual value are reviewed annually.