Interim statement 2009 Wereldhave N.V.
- Direct result per share +8.2%
- Property revaluation -3.1%
- Net asset value EUR 77.77 per share
Profit / loss
The result for the first half year of 2009 amounts to EUR -13.9 mln or
EUR -0.78 per share (H1 2008: EUR 52.4 mln or EUR 2.32 per share). The
decrease in result is due to a negative property revaluation in all
countries. The total revaluation amounted to - 82,7 mln (H1 2008: EUR +
0,1 mln). Exchange rate differences had a positive effect of EUR 2.6
mln on the result.
Direct result
The direct result for the first half year of 2009 amounts to EUR 58.6
mln, which is EUR 4.6 mln higher compared to 2008. The direct result
per share increased by 8.2% to EUR 2.63 (H1 2008: EUR 2.43). The
increase of the direct result can be attributed to EUR 3.7 mln lower
interest costs and EUR 1.1 mln lower taxes on the direct result.
The net operational result for the first half year amounted to EUR 67.1
mln (H1 2008: EUR 67.4 mln). The considerably higher vacancy,
especially in Paris and in Washington, was to a major extent
compensated by growth in rental income of other properties and by
additional rental income from the acquisition of the DiamondView office
building in San Diego (in September 2008).
Wereldhave uses variable rates for approximately 73% of its loans.
Therefore, interest rate cuts by central banks have had a positive
impact on interest expenses, even with an enlarged loans portfolio due
to the acquisition of the San Diego office in September 2008. The
average interest rate at June 30, 2009 stood at 2.2% (2008 year end:
3.7%).
The drop in taxes on the direct result is caused by an incidental gain
of EUR 1.7 mln from a withholding tax return. This incidental gain was
partially absorbed by higher taxes in Finland, Spain and the United
Kingdom totalling EUR 0.6 mln.
Indirect result
The indirect result for the first half year of 2009 amounts to EUR
-72.5 mln (2008: EUR -1.6 mln). The EUR 82.7 mln negative revaluation
is the main reason for the decrease. The property portfolio was
revalued by EUR -81.0 mln; the revaluation of financial instruments
amounts to EUR -1.7 mln. The revaluation represents 3.1% of the value
of the portfolio, spread over all countries and sectors. The weighted
average initial yield currently stands at approx. 6.3%.
Lower property values resulted in a decrease of deferred taxes, which
had a EUR 13.3 mln positive effect on the indirect result.
Equity
Shareholders' equity at June 30, 2009 stood at EUR 1,770.6 mln
(December 31, 2008: EUR 1,860.2 mln). This represents 64% of the
balance sheet total (2008 year-end: 66%). The Loan to Value ratio
amounts to 30.5% (2008: 28.4%). On April 24, 2009, 495,253 ordinary
shares were issued as dividend. The total number of shares in issue now
amounts to 21,276,988. No convertible bonds opted for conversion. The
net asset value per share before profit appropriation as at June 30,
2009 was EUR 77.77 (2008 year end: 83.74).
Property portfolio
During the first half of 2009, there were no real estate transactions.
The occupancy rate for the first half year decreased to 89.7% (2008:
94.7%). The occupancy rose slightly during the second quarter to 89.9%
(Q1 2009: 89.6%). Broken down by sector, occupancy rates were: offices
81.4%, retail 97.9%, industrial 98.9% and residential 90.4%.
The increase in vacancy compared to 2008 is caused by vacancies that
arose at the end of 2008 in 2 office buildings (Paris and Washington
DC).
The office building in Paris is currently undergoing an upgrade to the
latest standards of sustainability, to be completed late September
2009.
The first two office buildings of the development in San Antonio which
total 20,000 m2 will be brought into exploitation at the end of the
first quarter of 2010, when the infrastructure will also be completed.
The negotiations with construction companies about the construction of
remaining parts of the first phase of the San Antonio project are in
their final stages. Construction is expected to commence during the
third quarter of 2009.
In Nivelles, Belgium, on February 25, 2009, an application for a
building permit was submitted for the expansion of the shopping centre,
the retail park and a multifunctional building. A decision on the
application is expected by October 2009.
In Tournai, Belgium, plans have been made for the expansion of the
shopping centre by 4,500 m2 and a retail park of 10,000 m2. The city
of Tournai has advised positively on the Urban Zoning plan. It is
expected that the application for a building permit for the retail park
and the expansion of the shopping centre directly afterwards can be
submitted late 2009.
Preference shares
On July 8, 2009, all preference shares in issue were withdrawn.
However, Wereldhave will retain the ability to issue new preference
shares in the future.
Prospects
The result for the year 2009 mainly depends on the pace of re-letting
vacant space, together with variables like interest rates and foreign
exchange rates. For the year 2009 Wereldhave is therefore not yet
forecasting the results.
Wereldhave expects further downward pressure on property values in
2009. Wereldhave is well prepared for negative revaluations with its
sound financial situation. This financial position also enables
Wereldhave to make use of attractive investment opportunities.
The Hague, August 7, 2009
Board of Management Wereldhave N.V.
This information is provided by RNS
The company news service from the London Stock Exchange
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