Notes to the consolidated balance sheet (continued)
Assets (continued)
7 Real estate investments
Changes in real estate investments
| 2008 | 2007 | |
|---|---|---|
| Opening balance | 4,829 | 6,974 |
| Additions | 905 | 878 |
| Changes in the composition of the group | –296 | –2,919 |
| Transfers to and from Property in own use | –38 | –60 |
| Transfers to and from Other assets | 117 | 13 |
| Fair value gains/(losses) | –400 | 168 |
| Disposals | –415 | –309 |
| Exchange rate differences | –402 | 84 |
| Closing balance | 4,300 | 4,829 |
In 2007, Change in composition of the group relates mainly to the deconsolidation of Real estate funds as a result of the reduction of ING’s shareholding in these funds.
ING’s exposure to real estate is included in various balance sheet lines:
Real estate exposure
| 2008 | |
|---|---|
| Real estate investments | 4,300 |
| Investments in associates | 3,200 |
| Other assets – property held for sale | 3,143 |
| Property and equipment – property in own use | 1,841 |
| Investments – available-for-sale | 663 |
| 13,147 |
Furthermore, the exposure is impacted by third party interests, leverage in funds and off-balance commitments, resulting in an overall exposure of EUR 15.5 billion. Reference is made to the section ‘Risk management’.
Real estate investments by insurance and banking operations
| 2008 | 2007 | |
|---|---|---|
| Insurance operations | 1,118 | 1,302 |
| Banking operations | 3,182 | 3,527 |
| 4,300 | 4,829 |
The total amount of rental income recognised in the profit and loss account for the year ended 31 December 2008 was EUR 361 million (2007: EUR 402 million). The total amount of contingent rent recognised in the profit and loss account for the year ended 31 December 2008 was EUR 17 million (2007: EUR 14 million).
The total amount of direct operating expenses (including repairs and maintenance) arising from Real estate investments that generated rental income for the year ended 31 December 2008 was EUR 71 million (2007: EUR 64 million). The total amount of direct operating expenses (including repairs and maintenance) arising from Real estate investments that did not generate rental income for the year ended 31 December 2008 was EUR 36 million (2007: EUR 20 million).
Real estate investments by year of most recent appraisal by independently qualified valuers (in percentages)
| 2008 | |
|---|---|
| Most recent appraisal in 2008 | 99 |
| Most recent appraisal in 2007 | 0 |
| Most recent appraisal in 2006 | 1 |
| Most recent appraisal in 2005 | 0 |
| Most recent appraisal in 2004 | 0 |
| 100 |
