SOURCE: Wereldhave NV

November 08, 2006 02:47 ET

Wereldhave NV - 3rd Quarter Results

The Hague -- (MARKET WIRE) -- November 8, 2006 --

   - Profit EUR 24.5 mln higher

   - EUR 2.3 mln lower direct result

   - EUR 40.1 mln profit on disposals of property

   - EUR 80.8 mln positive property revaluation


In 2006, Wereldhave has chosen to realise the significant increases in the value of a number of properties. These sales will lead to a lower net rental income and, subsequently, a lower direct result, but with these sales a profit on disposals of EUR 40,1 mln has been realised. Compared with 2005, the profit for the first three quarters of the year, consisting of direct and indirect result, increased by EUR 24.5 mln to EUR 185.4 mln. Profit per share increased from EUR 7.41 to EUR 8.61.

Direct result

The direct result for the first nine months of 2006 decreased by EUR 2.3 mln to EUR 84.5 mln. The direct result per share decreased from EUR 3.95 for 2005 to EUR 3.83 for 2006. Net rental income increased by EUR 1.1 mln, mainly as a result of a higher occupancy rate. Interest charges rose by EUR 2.1 mln, of which EUR 1.0 mln is due to interest rate movements and EUR 1.1 mln the result of property purchases and sales. General costs increased by EUR 1.5 mln. Exchange rate differences had a small positive effect on direct result of EUR 0.2 mln. The occupancy rate of the portfolio during the third quarter of 2006 was 93.9% (second quarter 2006: 93.1%).

Indirect result

Compared with 2005, the indirect result for the first three quarters increased by EUR 26.8 mln to EUR 100.9 mln. The increase is mainly due to surpluses on property disposals (EUR 31.2 mln).

Equity and liabilities

Shareholders' equity including current earnings to September 30, 2006 amounted to EUR 1,727.3 mln (December 31, 2005: EUR 1,648.3 mln), representing 72.4% of the balance sheet total. Exchange rate differences, primarily on the USD, had a EUR 14.4 mln negative effect on equity. Net asset value per share amounted to EUR 77.99 (December 31, 2005: EUR 69.66 after distribution of profit).

Property portfolio

At September 30, 2006 the value of the total portfolio amounted to EUR 2,263.4 mln (December 31, 2005: EUR 2,322.8 mln). The investment portfolio was revalued upwards by EUR 81.0 mln (exclusive of exchange rate differences) during the first three quarters of the year, with positive revaluations in all countries. Exchange rate differences had a EUR 24.0 mln negative effect on the value of the portfolio. The value of the development portfolio at September 30, 2006 amounted to EUR 26.4 mln. Exchange rate differences had a EUR 2.1 mln negative effect on the value of the development portfolio.

On November 7, 2006 Wereldhave completed the purchase in the United States of an office building in Washington DC, totalling 22,100 m(2) with 190 parking spaces. The purchase price amounts to USD 131.5 mln. The net initial yield amounts to 4.6%. The office is leased to the United States Mint until October 2019.


The property disposals during 2006 will lead to a lower direct result, but on the other hand generate a substantial increase in the realised indirect result. The direct result forms the basis for our dividend policy. In view of its consistent dividend policy, Wereldhave will not propose a lower dividend to shareholders than in 2006.

With the purchase of a prime office building in Washington Wereldhave can profit from the modest yield differentials between first class and second class properties, to further raise the quality of the portfolio. Further expansion of the portfolio will be concentrated on developments, which in time contribute to the result and usually offer better opportunities to add value.

Wereldhave anticipates that direct result for the year 2006 will be between EUR 5.10 and EUR 5.20 per share, given stable currency rates.

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