THE HAGUE, NETHERLANDS--(Marketwire - Aug 4, 2011) -
Key items
* Profit EUR 52.6 mln (2010: EUR 58.0 mln)
* Direct result per share EUR 2.51 (-1.2%)
* Net asset value per share EUR 70.47 (-6.2%)
* Slightly improved occupancy rate portfolio
* Valuation portfolio stable
* Sale of non-core properties for EUR 65 mln
Profit
Compared to the previous year, the profit for the first half of 2011
decreased by EUR 5.4 mln to EUR 52.6 mln, of which EUR 0.4 mln was
caused by a decrease of the direct result and EUR 5.0 mln by a lower
indirect result. The profit amounts to EUR 2.26 per share (2010:
EUR2.58 per share).
Direct result
The direct result for the first six months of 2011 amounts to EUR 57.4
mln, a EUR 0.4 mln decrease compared to 2010. The slightly lower direct
result can be attributed to higher interest charges, one-off general
costs and negative exchange rate differences.
In spite of a lower average occupancy rate and lease renewals at more
competitive conditions in the offices portfolio, the like-for-like
rental growth of the entire portfolio remained 1.1% positive. In
combination with the property acquisitions and sales, rental income
rose by EUR 4.2 mln. Rental income was depressed by the active sales
programme of relatively high yielding, non-core properties.
The interest charges rose by EUR 5.7 mln, primarily caused by the larger
size of the loan portfolio in connection with property acquisitions and
by higher interest rates. The average nominal interest rate as per June
30, 2011, rose to 3.0% (June 30, 2010: 2.4%). The general costs
increased by EUR 1.1 mln, primarily due to one-off charges in connection
with adjustments to the management organisations in The Netherlands and
Finland. Exchange rate differences had a negative effect on the direct
result of EUR 0.9 mln, as the average exchange rates prevailing for the
first half year of 2011 were lower than in 2010. The taxes on result
decreased by EUR 1.7 mln.
The direct result for the first half year of 2011 amounts to EUR 2.51
per share, which represents a EUR 0.03 or 1.2% decrease compared to the
previous year. This includes a dilution of EUR 0.02 caused by the
increased number of shares in issue in connection with the optional
dividend in respect of the year 2010.
The EPRA occupancy rate as at June 30, 2011 amounts to 90.2%, a 0.8%
increase compared with March 31, 2011. The occupancy rate of the retail
portfolio rose by 0.1% to 96% during the second quarter. The occupancy
rate of the offices portfolio rose by 1.6%, particularly in the United
Kingdom and in Belgium, but also in the portfolios in Spain and the
United States. The occupancy rate of the portfolio category other
decreased by 0.4%, mainly caused by the sale of the fully let logistic
portfolio in The Netherlands. Broken down per sector, the EPRA
occupancy rates as at June 30, 2011 (March 31, 2011) are: retail 96.0%
(95.9%), offices 83.7% (82.1%) and other 94.4% (94.8%).
Indirect result
The indirect result for the first half year of 2011 totalled EUR -4.8
mln (2010: EUR 0.2 mln). The valuation was slightly positive in France,
Belgium and Finland, remained stable in The Netherlands and the United
Kingdom and decreased slightly in Spain and the United States. The
total valuation result of the property portfolio amounted to EUR -5.9
mln, or -0.2% of the portfolio. The average cap rate for the valuation
of the portfolio remained nearly stable at 6.4% during the first half
year of 2011. The revaluation of financial instruments (interest
derivatives) amounted to EUR -0.3 mln.
A surplus on disposals of EUR 2.6 mln (4% above the latest book value)
was made with the sale of five smaller properties in the United Kingdom
and six logistic properties in the Netherlands for a total
consideration of EUR64,9mln.
Other movements had an impact of EUR -1.2 mln on the indirect result.
Equity/debt
At June 30, 2011 shareholders' equity stood at EUR 1,642.3 mln (December
31, 2010:
EUR 1,728.1 mln). The net asset value per share including current profit
as at June 30, 2011, amounts to EUR 70.47 (December 31, 2010: EUR 75.12).
The decrease is caused by the dividend payment for the year 2010 and
negative exchange rate differences of EUR 43.9 mln, primarily due to a
nearly 8% lower exchange rate for the US-dollar as at June 30, 2011
compared to year-end 2010. As a result, the solvency ratio slightly
decreased to 58% (December 31, 2010: 59%), the loan to value remained
stable at 40%. In connection with the payment of an optional dividend
in respect of the financial year 2010, the number of shares in issue
rose by 231,083 shares to 21,679,608. The new shares are entitled to
dividend in respect of the full financial year 2011.
Property portfolio
Wereldhave did not acquire any properties during the first half of
2011. In the United Kingdom, five smaller properties were sold and in
the Netherlands a logistics portfolio of six properties was sold. As at
June 30, 2011, the value of the investment portfolio amounted to EUR
2,730.3 mln and the value of the development portfolio stood at EUR
170.7 mln.
During the second quarter, Wereldhave has agreed a number of lettings,
amongst which a lease for ca. 7,800 m2 of an office building in Allen,
near Dallas, United States. In the Belgian portfolio a 9-year fixed
lease was signed for the entire 5.200 m2 Orion office building in
Brussels with a Belgian Government institution. Also in Belgium during
the third quarter of 2011, an office building at the Regentlaan in
Brussels will be sold. The transaction price is in line with the book
value.
In the United Kingdom Wereldhave has reached agreement for the
acquisition of approximately 4,300 m2 of retail space in Poole for EUR
12.7 mln, located directly next to the Dolphin centre. This further
strengthens Wereldhave's position in the city centre of Poole.
Completion will take place in August 2011.
Development portfolio
In Belgium the expansion of the Nivelles shopping centre is proceeding
according to plan. The centre will be opened in spring 2012. Meanwhile,
65% of the project has either been pre-let or agreement on leasing
conditions has been reached.
In the United States, the construction of the San Antonio project is
also proceeding according to plan. The first apartments, a hotel and a
large part of the commercial facilities will be completed during the
last quarter of 2011, the remainder of the first phase will be
completed in the first quarter of 2012. The original investment volume
of the first phase of USD 190 mln has increased by USD 47 mln (EUR 33
mln) to USD 237 mln. The increase is caused by a larger average floor
space of the apartments and an improved design and finishing level. In
addition, heads of agreement have been reached on the lease for a fixed
20-year period of the hotel, which will be operated under an
international luxury brand. The hotel will also become more spacious
and luxurious than previously planned.
The extra floor space to be added to phase 1 decreases the volume of
phase 2. The investment volume of phase 2 has been adjusted downwards
by USD 25 mln from USD 140 mln to USD 115 mln. In balance, the total
investment volume of phase 1 and phase 2 will increase by USD 22 mln
(+7%) to ca. USD 350 mln. The construction of phase 2 will be started
upon the successful completion of phase 1.
Prospects
In view of the active sales programme, the increase in interest charges
and higher general costs, Wereldhave forecasts, assuming stable
exchange rates, a direct result per share for the full year of 2011
between EUR 4.85 and EUR 4.95, which enables Wereldhave to maintain
dividend at the 2010 level.
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The Hague, August 4, 2011
Board of Management Wereldhave N.V.
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