THE HAGUE, NETHERLANDS--(Marketwire - May 12, 2011) -
Results 1st quarter 2011
Key items
- Profit EUR 27.6 mln (2010: EUR 12.6 mln)
- Direct result per share EUR 1.27 (+5.8%)
- Net asset value per share EUR 74.83 (-0.5%)
- Valuation portfolio stable
- Sale of non strategic properties for EUR 54.3 mln
- Successful private placement of USD 300 mln
Hans Pars, CEO Wereldhave N.V. comments:"Mainly due to the property
acquisitions made in 2010, the direct result per share rose by 5.8% during
the first quarter. In 2011 we have not made any purchases to date. With the
sale of a logistic portfolio
of six properties in The Netherlands and three smaller properties in
the United Kingdom for well over EUR 54 mln, our sales program is well on
track.
The occupancy rate of our shopping centres, representing well over half
of our total portfolio, remained stable, but the occupancy of the
offices portfolio dropped, particularly in the United States. We notice
that prospective tenants wish to use the current tenant markets and
that they are taking their time to make a decision. Our highest
priority is to improve the occupancy rate of our offices portfolio."
Profit
The result for the first quarter of 2011 rose by EUR 15.0 mln to EUR
27.6 mln compared to 2010, the equivalent of EUR 1.21 per share (2010:
EUR 12.6 mln or EUR 0.50 per share). The valuation result for the first
quarter (including a revaluation of financial instruments of
EUR -1.4 mln) amounted to EUR -2.0 mln (2010: EUR -12.0 mln). Exchange
rate differences had a positive effect of EUR 2.7 mln on the result
(2010: EUR -1.5 mln), primarily because the lower exchange rate for the
US-dollar resulted in lower deferred taxes.
Direct result
The direct result for the first quarter of 2011 amounts to EUR 29.0 mln,
an increase of EUR 1.5 mln compared 2010. The higher direct result can
be attributed to the acquisitions made in 2010 and the letting of an
office building in Paris. These increases were partially absorbed by
rising vacancy in the offices portfolio, renewals at lower rents and
sales. In balance, netrental income rose by EUR 4.4 mln.
The increased size of the loan portfolio in connection with the
property acquisitions led to an increase in interest charges of EUR 3.2
mln. The average nominal interest as at March 31, 2011 rose to 2.8%
(March 31, 2010: 2.2%). General costs rose by EUR 0.6 mln, particularly
due to the larger management organisations in connection with the
expansion of the portfolios in The Netherlands and Belgium. Taxes on
the direct result dropped by EUR 0.7 mln. The average exchange rates for
the first quarter were slightly above the levels during the first
quarter of 2010, causing a small positive effect on the direct result
of EUR 0.2 mln.
The EPRA occupancy rate as at March 31, 2011 stood at 89.4%, a 2.1%
drop compared to year-end 2010. The occupancy rate of the retail
portfolio rose by 70 basis points to 95.9%, but the occupancy rate of
the offices portfolio dropped by 4.9%, especially in the United States,
but also in the relatively smaller portfolios in Spain and the United
Kingdom. The occupancy rate of the category other assets dropped by
0.6%, mainly as a result of an expiring lease of a logistic building in
the Netherlands. Broken down per sector, EPRA occupancy rates as at
March 31, 2011 (year-end 2010) are: retail 95.9% (95.2%), offices 82.1%
(87.0%) and other 94.8% (95.5%).
The direct result for the first quarter of 2011 amounts to EUR 1.27 per
share, which represents an increase of EUR 0.07, or +5.8%, in spite of
the increased number of shares in issue in connection with the optional
dividend for the year 2009.
Indirect result
The indirect result for the first quarter of 2011 totaled EUR -1.4 mln
(2010: EUR -14.9 mln). The valuation of the property portfolio did not
change in all countries. The average cap rate for the valuation of the
portfolio remained nearly stable at 6.4% during the first quarter of
2011. The revaluation of financial instruments (interest derivatives)
amounted to EUR -1.4 mln (2010: EUR 1.2 mln).
A surplus on disposals of EUR 0.7 mln (2010: EUR -0.1 mln) was made with
the sale of three smaller properties in the United Kingdom for a total
consideration of EUR 15.1 mln.
Equity/debt
At March 31, 2011 shareholders' equity, before deduction of the
proposed dividend, stood at EUR 1,723.8 mln. The solvency ratio (equity/
equity + interest bearing debt) amounts to 60% (2010: 64%), the loan to
value amount to 39%. Wereldhave ranks amongst the best capitalised
European property companies. In connection with the payment of an
optional dividend in respect of the financial year 2010, as at May 10,
2011 231,083 new shares were issued, bringing the number of shares in
issue from 21,679,608 as at May 10, 2011. The new shares are entitled
to dividend in respect of the full financial year 2011.
Exchange rate differences had a negative effect of EUR 32.8 mln on
shareholders' equity, largely caused by a nearly 6% lower exchange rate
for the US-dollar at March 31, 2011, compared to year-end 2010. The net
asset value as at March 31, 2011, before deduction of dividend, amounts
to EUR 74.83 (December 31, 2010: EUR 75.12).
In March 2011, Wereldhave has issued a USD 300 mln private placement
(senior unsecured notes), at an average initial interest rate of 3.5%.
The loan, of which half will be swapped to Euros, was made in tranches
of 5, 7 and 10 years. With this private placement, Wereldhave has
improved the spread of financing sources, raised the average maturity
of the loan portfolio and increased it's financial firepower for
acquisitions. Also in March 2011, Wereldhave repaid the EUR 200 mln
convertible bond 2006-2011 in full. No bonds opted for conversion.
Property portfolio
Wereldhave did not acquire any properties during the first quarter of
2011. In the United Kingdom, three smaller properties were sold for EUR
15.1 mln, which is EUR 0.7 mln above book-value. As at March 31, 2011,
the value of the development portfolio amounted to
EUR 151.1 mln; the value of the investment portfolio stood at EUR 2,797.9
mln.
On April 29, 2011, Wereldhave sold a logistic portfolio of six
properties in the Netherlands for EUR 39.2 mln, slightly below
book-value.
Development portfolio
In Belgium the expansion of the Nivelles shopping centre is proceeding
according to plan. The completion of 12,000 m2 of retail space with
covered parking facilities is scheduled for the beginning of 2012.
Leasing activity has started, with three leases for a total of 2,500 m2
already signed. There is a lively interest from retail chains that wish
to be present in the centre. The other projects in Belgium are still in
their planning- and consent phases.
In the United States, marketing activities of the first phase of the
San Antonio project has started. The first apartments, the hotel and a
large part of the commercial space will be completed as from the last
quarter of 2011.
In Finland the project management for the refurbishment and expansion
of the Itakeskus shopping centre began its tasks. The construction of
the first phase is scheduled to start during the second half of the
year.
Prospects
During the first quarter of 2011 the occupancy rate of the offices
portfolio has dropped further, especially in the United States, where a
relatively large portion of the leases expired in 2010. Although
interest from prospective tenants seems to increase since late 2010,
this has not yet shown in a higher occupancy rate. Prospective tenants
take their time to reach a decision and lettings generally are at lower
rental levels than the old leases.
Wereldhave does not yet forecast the result for the year 2011. The
result largely depends on the development of the occupancy rate of the
offices portfolio, the pace of purchases and sales and changes in
interest charges and movements in exchange rates.
The results will be explained during a conference call, to be held
today at 14.00 h CET. The conference call can be followed by audiocast
on www.wereldhave.com . Questions can be put by e-mail via this webcast.
The Hague, May 12, 2011
Board of Management Wereldhave N.V.
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the associated PDF document.
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For further information:
Wereldhave N.V.
Richard W. Beentjes
Tel. + 31 70 346 93 25
Wereldhave. Value for tomorrow.
www.wereldhave.com
Information for analysts:
Wereldhave N.V.
Charles F. Bloema / Jaap-Jan Fit
Tel. + 31 70 346 93 25
Profile
Wereldhave, established in 1930, is a property investment company with
an internationally diversified portfolio of approximately EUR 3 billion.
Wereldhave's activities are currently spread over four property sectors
and across six European countries - the Netherlands, Belgium, Finland,
France, Spain and the United Kingdom - and three regions in the United
States. It creates value by actively managing shopping centres, through
sound timing in the purchase and sale of offices and residential
property, and by developing it's own property at cost.
Real estate is a local business. Local expertise is decisive for the
success of a property investment company. With its local personnel,
Wereldhave maintains direct contact with its tenants. This enables
Wereldhave to stay on top of the issues concerning its tenants and
up-to-date on market developments. Knowledge of rapidly-changing user
requirements is also deployed in the development of projects for
Wereldhave's own portfolio.
This information is provided by RNS
The company news service from the London Stock Exchange
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