SOURCE: Wereldhave NV

March 03, 2011 03:25 ET

Wereldhave NV - Annual Financial Report

THE HAGUE--(Marketwire - March 3, 2011) -

Results 2010 Wereldhave N.V.

- Profit EUR 95.1 mln (2009: EUR -102.3 mln)
- Direct result EUR 115.9 mln (+4%)
- Direct result per share EUR 5.10 (+3.5%)
- Net asset value per share EUR 75.12 (+2%)
- Optional dividend EUR 4.70 (2009: EUR 4.65)
- Solvency 60%
- Issue USD 300 mln private placement

Profit

The profit for 2010 amounted to EUR 95.1 mln, or EUR 4.15 per share
(2009:EUR -102.3 mln or EUR -5.07 per share). The improved result is
primarily caused by improved valuation results. The revaluation
totalled EUR - 15.1 mln, mainly caused by acquisition costs that were
deducted for the valuation (2009: EUR - 245.8 mln). Exchange rate
differences had a negative effect on profit of EUR 2.6 mln
(2009: + EUR 6.0 mln).

Direct result

The direct result over 2010 amounted to EUR 115.9 mln, which was EUR 4.8
mln higher than the figure for 2009. Due to the purchases and the
letting of two offices in Washington DC and Paris, net rental income
rose by EUR 17.0 mln. As these acquisitions were financed with debt,
interest charges rose by EUR 8.6 mln. The average interest rate as per
December 31, 2010 remained stable at 2.6%.

General costs rose by EUR 2.2 mln, about half of which due to one-off
expenses in relation to changes in the organisation. Taxes on result
increased by EUR 1.1 mln, because a one-off tax benefit of EUR 1.6 mln
in 2009. Exchange rate differences ultimately had a positive effect on
the direct result of EUR 1.9 mln.

The average occupancy rate for 2010 amounts to 90.3% (2009: 90.8%). As
at December 31, 2010, EPRA occupancy stood at 91.4%. In accordance with
the EPRA best practices, as from today, Wereldhave will report the
occupancy rate at balance sheet date. EPRA occupancy levels per sector
over 2010 were 95.2% for retail, 87.0% for offices and 95.5% for other
properties.

Indirect result

The indirect result for 2010 totalled EUR - 20.8 mln (2009: EUR - 213.4
mln). Primarily due to the acquisition costs in the Netherlands and the
UK of EUR 18.7 mln that were immediately deducted from the valuation,
there was a negative property revaluation of EUR 15.1 mln as at 31
December 2010. The average yield on the portfolio applied in the
valuation increased by circa 20 basis points in 2010, bringing the
weighted cap rate on the portfolio to approximately 6.5% (2009: 6.7%).
The revaluation on financial instruments amounted to EUR 1.0 mln (2009:
EUR -1.2 mln).

With property disposals to the amount of EUR 45 mln, a surplus on
property disposals of EUR 2.5 mln was achieved in 2010
(2009: EUR 0.8 mln).

Equity/
debt

As at year-end 2010 equity, including minority interests and before
appropriation of the proposed dividend, amounted to EUR 1,728.1 mln.
This represents a 60% solvency (2009: 70%). The total number of ordinary
shares in issue at year-end 2010 amounted to 21,448,525. The net asset
value per share before profit appropriation as at December 31, 2010 was
EUR75.12 (2009: EUR 73.77).

During the last quarter of 2010, Wereldhave issued a convertible bond
of EUR 230 mln with a maturity of 5 years (2010-2015) at a coupon of
2.875%. The conversion price is EUR 81.10, well above the net asset
value. The conversion price will not be adjusted for dividends, unless
and to the extent that the annual dividend payment exceeds EUR 4.75 per
share (as from 2011 raised by EUR 0.05 per annum). No bonds had been
converted into Wereldhave shares as at 31 December 2010.

In February 2011, Wereldhave reached agreement for the issue of 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 euro, will be made available as from the end of march 2011 in
tranches of 5, 7 and 10 years.

Property portfolio

In The Netherlands, Wereldhave purchased five shopping centres in 2010
for a total of EUR 265 mln. At the end of 2010, the Dolphin shopping
centre in Poole, United Kingdom, was added for EUR 100 mln. As a result
of these acquisitions, the interest in shopping centres increased to
52% of the entire portfolio.

During 2010, Wereldhave sold smaller and logistic properties in the
United Kingdom and The Netherlands. Ten properties and a plot of land
were sold for a total consideration of EUR 45 mln. Wereldhave now does
no longer have any logistic properties in the UK.

The investment portfolio underwent a negative revaluation of 0.5%,
primarily caused by transaction costs that were deducted for the
valuation. At year-end 2010, the value of the development portfolio
amounted to EUR 134.5 mln; the value of the investment portfolio stood
at EUR 2,860.1 mln.

Development portfolio

In 2010 Wereldhave invested a total amount of EUR 60.6 mln in
development projects.

As at December 31, 2010, in Belgium Wereldhave acquired five
development projects from ING Real Estate Development. The initial
investment was EUR 19.6 mln, but the acquisition offers perspective to a
growth of the retail portfolio with EUR 150 mln. The Belgian development
portfolio contains the extensions of shopping centres in Nivelles,
Tornai and Waterloo and the redevelopment of a shopping centre in Genk.
In June 2010, Wereldhave started construction of the expansion of
Shopping Centre Nivelles with 12,000 m2 and parking facilities.
Completion is scheduled for 2012. The other projects are still in the
planning and licensing stages.

In France, on December 1, 2010, Wereldhave purchased an office
development of 17,670 m2 in Joinville-le-Pont, in the East of Paris.
The project will be delivered turn-key and Wereldhave will take the
letting risk. The investment volume amounts to approx. EUR 67 mln.
Construction start is scheduled for the third quarter of 2011 with
completion in the second quarter of 2013.

During the year plans were made to revitalise the shopping centre
Itakeskus in Finland. The plans aim to strengthen the market position
of the centre, by a refreshment and refurbishment of the existing
retail space and adding new retail space to the centre and optimising
the tenant mix. The plans will be executed in the period 2011-2013. The
costs for the revitalisation will range between EUR 25 - EUR 30 mln.

In Spain, a plan was completed for the redevelopment of the retail and
leisure centre Planetocio. After the closing down of the former ice
rink, the focus of the centre will be on a mix of active and passive
leisure. Execution of the plams will start in the first half of 2011
and will be completed in 2012.

In the United Kingdom, Wereldhave will start construction for the
redevelopment a mixed retail and office property in
Richmond-upon-Thames. The retail element of the property has been
pre-let on a long term lease to Whole Foods from the USA.

The two offices of the first phase of the Eilan project in San Antonio
were completed during the third quarter of 2010. A first lease has been
signed. Construction on the remainder of the first phase is proceeding
according to plan. Completion is scheduled as from the final quarter of
2011.

Proposed dividend

An optional dividend of EUR 4.70 will be proposed to the General Meeting
of Shareholders for 2010, of which EUR 3.10 in cash in order to comply
with the fiscal distribution obligation, after deducting withholding
tax, and EUR 1.60 in cash or in shares, at the option of the
shareholder.
The latter distribution will be charged to the reinvestment reserve and
therefore no dividend tax will be due.

The dividend is payable from 13 May 2011. Shareholders can communicate
their choice between cash and shares from April 26, 2011 until May 9,
2011, 17.00 hr CET. With a dividend of EUR 4.70, the payout ratio
amounts to 92.2%. If a shareholder does not communicate his choice, the
dividend will be paid in shares. The optional dividend component in
shares (as a percentage) will be set by dividing the optional dividend
in cash by the average of share prices at closure of trading of the
period May 2 up to May 9, 2011. A 5% margin will be applied for
rounding off logically in favour of a shares choice. The maximum number
of ordinary shares to be issued is this percentage, multiplied by the
number of shares in issue. The exact number of shares issued will be
communicated by press release on May 10, 2011, before trading hours.
The newly issued ordinary shares bear equal rights as those already in
issue and are entitled to dividend as from the financial year 2011 and
further.

General Meeting of Shareholders

The General Meeting of Shareholders will be held on April 18, 2011 in
the Steigenberger Kurhaus Hotel, Gevers Deynootplein 30, Scheveningen
at 11.00 h CET. For this meeting vote- and meeting rights will be
granted to those shareholders who are registered as such on March 21,
2011 after trading hours (record date) in a (partial) register. The
convocation and the agenda for the meeting will be available as from
March 7, 2011 on the Company's website www.wereldhave.com.

Supervisory board
Mr J. Krant will retire by rotation on April 18th, 2011. He is not
available for re-election. Mr J.A.P. van Oosten will succeed him as
Chairman of the Supervisory Board. The vacancy in the board will be
filled with the nomination of Mr H.J. van Everdingen as member of the
Supervisory board.

Prospects

In 2011 Wereldhave will continue to restructure and expand the
portfolio. Especially in the United Kingdom, France and Spain,
Wereldhave seeks to expand it's portfolio to a minimum size of EUR 400
mln. In addition, Wereldhave will continue the sale of logistic
property and of property with a value below EUR 20 mln.

In 2011 Wereldhave will work to realise at rental- and value growth of
it's shopping centres. For the offices portfolio, attention will be
focused on occupancy. In view of the economic climate, the conditions
on most office markets will be challenging and there will be fierce
competition with pressure on rents.

2011 will be an important year for the Eilan project in San Antonio,
Texas, as completion of the remainder of the first phase is scheduled
as from the last quarter of the year. Given the quality and location of
the project, Wereldhave is confident in a successful letting of the
project. In Belgium the extension of the Nivelles shopping centre is
nearing completion, to open doors early in 2012.

Wereldhave is well positioned for these tasks with its sound balance
sheet, it's good quality portfolio and management organisations that
were fully fitted to their core tasks. 2011 promises to be another
active year.

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.

Click on, or paste the following link into your web browser, to view
the associated PDF document.
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The Hague, March 3, 2011
Board of Management Wereldhave N.V.

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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