Årsrapport26063221ECOMENTOREngelsborgvej 312800 Kgs. Lyngby2018-01-012018-12-312016-01-012016-12-312019-06-0714226435FB 40 ApSRued Langgaards Vej6-82300København SDKDanmarkGentofteDeloitte33963556Lars AndersenState Authorised Public AccountantWeidekampsgade60900København CDKDanmark2019-06-07Niels Christian Wedell-WedellsborgRegnskabsklasse BtrueRevisionspåtegningThe executive board has today discussed and approved the annual report of FB 40 ApS for the financial year 1 January - 31 December 2018.The annual report is prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the company's financial position at 31 December 2018 and of the results of the company's operations for the financial year 1 January - 31 December 2018.In our opinion, management's review includes a fair review of the matters dealt with in the management's review.Management recommends that the annual report should be approved by the company in general meeting.Pernille OhlsenMichael John FitzgeraldNiels Christian Wedell-WedellsborgTo the shareholders of FB 40 ApSWe have audited the financial statements of FB 40 ApS for the financial year 1 January - 31 December 2018, which comprise income statement, balance sheet, statement of changes in equity, notes and summary of significant accounting policies. The financial statements are prepared under the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the company's financial position at 31 December 2018 and of the results of the company's operations for the financial year 1 January - 31 December 2018 in accordance with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor's responsibilities for the audit of the financial statements” section of our report. We are independent of the company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Management is responsible for the preparation of financial statements, that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Statement on management's review Management is responsible for management's review. Our opinion on the financial statements does not cover management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read management's review and, in doing so, consider whether management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of management's review.Copenhagen2019-06-07DeloitteLars AndersenState Authorised Public Accountantmne27762Business activities The objektive of the Company is to hold properties, both under own auspices and through subsidiaries, and other related activities. Development in activities and finances. Profit before tax is DKK 17.322 thousand (2017: Profit DKK 179,919 thousand) is impacted by profit on sale of investments property of DKK 24,819 thousand. Profit of the year is DKK 11,639 thousand (2017: DKK 128,207 thousand). Management regards results as satisfactory. Assets total DKK 39,820 thousand, of out which DKK 31,841 comprise investments in subsidiaries. As of 31 December 2018, equity is DKK 408 thousand. Outlook The Company is expected to be liquidated during 2019. Significant events occurring after end of reporting period No events have occurred after the balance sheet date which could significantly affect the company's financial position.37320001056800028004000104824000551200032987000262240008240500026224000128537000-448800055838000083000441400045390001732200017991900056830005171200011639000128207000131285000287688000-5274000-43161000-114372000-11632000002334000000233400000318350004127300031835000412730003183500027467300041940001401500010000419500014015000379000045232000798500059247000398200003339200001777000177700005274000-136900011300200040800012005300002173000040800010533000408000322630000375320000669000038201000015640000496150000629700036722000197460001186000346710001096000315100003900400014340300039004000181604000398200003339200001777000527400011300300000-131285000-5274000-11437200013128500017770000-1369000024819000104824000Gain/loss on sale of assetsGain/loss on sale of assets31850000Other operating revenuesOther operating revenues018600044140004353000441400045390002618500034739000-21730000169730001228000013513800016762000-151900000098262000-982620000035994000360000003599400036000000527300048435000-448200055838000-4950000-99000000-415900052730003183500041273000KG 47 P/SGentofte9931388922-4463427KG 47 GP ApSGentofte100760867-69289The share capital consists of 1.777 shares of a nominal value of TDKK 1.000. No shares carry any special rights.177710001777000177700012000001200000005770000177700017770001777000120000039096000000669000000The Entity serves as an administration company in the Danish joint taxation arrangement. According to thejoint taxation provisions of the Danish corporation Tax Act, the Entity is therefore liable from financial year 2013 for income taxes etc. for the jointly taxed enitities and from 1 July 2012 also for obligations, if any,relating to the withholding of tax on interest, royalties and dividends for these entities.At the date of signature, FREP Holdings Canada 1 LP, Canada owns 100% of the shares of the Entity and thuas has control over the Entity. Name and registered office of the Parent preparing consolidated financial statements for the smallest group: FREP Holdings Canada 1 LP, Canada. The annual report of FB 40 ApS for 2018 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B entities as well as selected provisions as regards larger entities. The accounting policies applied are consistent with those of last year.Assets are recognised in the balance sheet when it is probable as a result if a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the Entity has a legal or constuctive obligation as a result of a prior event, and it is probable that future economic benefits will flow from the Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. On subsequent recognition, assets and liabilities are measured as described below for each individual accounting item. Anticipated risks and losses that arise before the time of presentation of the anual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are consideres at recognition and measurement. Income is recognised in the income statement when earned, where as costs are recognised by the amounts attributable to this financial year.Referring to section 110 of the Danish Financial Statements Act, no consolidated financial statements have been prepared.Other operating income comprises items of a secondary nature relative to the company's activities, including gains on the sale of intangible assets and property, plant and equipment.Expenses related to property operation - excluding fair value adjustments - are recognised as operating expenses. This item also includes write-downs on recievables recognised in current assets. Administrative expenses comprise expenses incurred during the year for management and administration of the Company, including among others amortisation, decpreciation and impairment losses relating to other fixtures and fittings, tools and equipment.Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Net financials include interest income and expenses, realised and unrealised capital/exchange gains and losses on securities and foreign currency transactions as well as tax relief under the Danish Tax Prepayment Scheme etc.Income from investments in group enterprises comprises the pro rata share of the individual enterprises' profit/loss after full elimination of intra-group profits or losses.Tax for the year, which comprises the current tax charge for the year and changes in the deferred tax charge, including changes arising from changes in tax rates, is recognised in the income statement as regards the portion that relates to entries directly in equity. The Entity is jointly taxed with all Danish group companies. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with a refund concerning tax losses).On initial recognition, investment properties are measured at cost consisting of the acquisition price of the properties plus directly related acquisition costs. Subsequent to initial recognition, investment properties are measured at fair value which is equivalent to the amount at which the individual property may be sold to an independent buyer at the balance sheet date. Fair value is determined by applying the return-based model as the calculated value in use of expected cash flows from each property. The calculation is based on budgeted net earnings for the next year that has been adjusted to normal earnings, and using a required rate of return that reflects current market required rates of return for similar properties. The value is adjusted for factors not reflected in normal earnings, for example, actual vacancy rate, major refurbishments etc. The financial year's adjustments of the properties' fair value are recognised in the income statement. Straight-line depreciation is provided on the basis of the following estimated useful lives of the assets:Investments in subsidiaries are recognised and measured according to the quity method. This means that investments are measured at the pro rata share of the enterprises's equity value plus og minus unarmortised goodwill and plus or minus unrealised intra-group profits and losses. Investments in subsidiaries with a negative equity value are measured at DKK 0. Any recieveables from the enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation is imminent, a provisio is recognised that is measured at the present value of the cots deemed necessary to incur to settle the obligation. Upon distribution of profit or loss, net revaluation of investments in group enterprises is transfered to Reserve of net revaluation according to the equity method under equity. Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.Receivables are measured at amortised cost, usually equalling nominal valuea less writedowns for badd and doubtful debts.Prepayments recognised under 'Current assets' comprises expenses incurred concerning subsequent financial years.Cash comprises bank deposits.Provisions comprise anticipated costs of non-recourse free commitments etc. Provions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance sheet date are measured at their discounted value.Deferred tax is measured according to the liability method in respect of temporary differences between the carrying amount of assets and liabilities and their tax base, calculated on the basis of the planned use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax losses allowed for carry forward, are measured at the value to which the asset is expected to be realised, either as a set-off against tax on future income or as a set-off against deferred tax liabilities within the same legal tax entity. Any deferred net tax assets are measured at net realisable value.At the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at amortised cost. This means that the difference between the proceeds at the time of borrowing and the nominal repayable amount of the loan is recognised in the income statement as a financial expense over the term of the loan applying the effective interest method. Other liabilities, which include trade payables, payables to group entities and other payables, are measured at amortised cost, which is usually equivalent to nominal value.142264352018-01-012018-12-31142264352018-01-012018-12-311142264352016-01-012016-12-31142264352018-01-012018-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember142264352016-01-012016-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember142264352018-01-012018-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember142264352018-01-012018-12-31e:RetainedEarningsMember142264352016-01-012016-12-31e:RetainedEarningsMember142264352016-12-31142264352018-12-31142264352018-01-01e:InvestmentsInGroupEnterprisesMember142264352016-01-01e:InvestmentsInGroupEnterprisesMember142264352018-01-012018-12-31e:InvestmentsInGroupEnterprisesMember142264352016-01-012016-12-31e:InvestmentsInGroupEnterprisesMember142264352018-12-31e:InvestmentsInGroupEnterprisesMember142264352016-12-31e:InvestmentsInGroupEnterprisesMember142264352018-01-012018-12-311142264352018-01-012018-12-312142264352018-01-012018-12-313142264352018-01-01e:ContributedCapitalMember142264352018-12-31e:ContributedCapitalMember142264352018-01-01e:ReserveForNetRevaluationAccordingToEquityMethodMember142264352018-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember142264352018-01-012018-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember142264352018-01-01e:RetainedEarningsMember142264352018-01-012018-12-31e:RetainedEarningsMember142264352018-12-31e:RetainedEarningsMember142264352018-12-311142264352018-01-01d:PreviousYearMembere:ContributedCapitalMember142264352018-01-012018-12-31d:PreviousYearMembere:ContributedCapitalMember142264352018-12-31d:PreviousYearMembere:ContributedCapitalMember142264352018-01-01d:TwoYearsAgoMembere:ContributedCapitalMember142264352018-01-012018-12-31d:TwoYearsAgoMembere:ContributedCapitalMember142264352018-12-31d:TwoYearsAgoMembere:ContributedCapitalMember142264352018-01-01d:ThreeYearsAgoMembere:ContributedCapitalMember142264352018-01-012018-12-31d:ThreeYearsAgoMembere:ContributedCapitalMember142264352018-12-31d:ThreeYearsAgoMembere:ContributedCapitalMember142264352018-01-01d:FourYearsAgoMembere:ContributedCapitalMember142264352018-01-012018-12-31d:FourYearsAgoMembere:ContributedCapitalMember142264352018-12-31d:FourYearsAgoMembere:ContributedCapitalMember142264352018-01-01e:InvestmentPropertyMember142264352018-01-012018-12-31e:InvestmentPropertyMember142264352018-12-31e:InvestmentPropertyMember142264352016-01-012016-12-31e:ReserveForNetRevaluationAccordingToEquityMethodMember142264352018-01-012018-12-31e:SubsidiaryMember1142264352018-12-31e:SubsidiaryMember1142264352018-01-01e:ProposedExtraordinaryDividendRecognisedInEquityMember142264352018-01-012018-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember142264352018-12-31e:ProposedExtraordinaryDividendRecognisedInEquityMember142264352018-12-31e:LongtermDebtToBanksMember142264352018-01-01e:LongtermDebtToBanksMember142264352018-12-31e:DepositsLongtermLiabilitiesOtherThanProvisionsMember142264352018-01-01e:DepositsLongtermLiabilitiesOtherThanProvisionsMember142264352018-01-012018-12-31e:SubsidiaryMember2142264352018-12-31e:SubsidiaryMember2142264352016-01-012016-12-312142264352016-01-012016-12-314142264352018-01-012018-12-312142264352018-01-012018-12-314xbrli:sharesiso4217:DKKxbrli:pure