Results Second Quarter 2005

                       

 

 

The 2004 published figures in this press release are converted in consolidated figures.

 

 

 

January / June

2004

IFRS consol.

 

 

 

 

 

 

 

Net rental income

 

9,789

 

 

 

 

 

 

 

 

Direct investment result

 

9,495

 

 

Indirect investment result

 

2,275

 

 

 

 

 

 

 

 

Profit

 

11,770

 

 

 

 

 

 

 

 

Direct investment result per share

 

1.78

 

 

 

 

 

 

 

 

Profit per share

 

2.21

 

 

 

 

 

 

 

 

 

 

 

 

31-12-2004

 

 

 

 

 

 

 

Investment properties

 

 

 

307,395

 

 

Shareholders' Equity

323,217

(¹)

 

 

 

 

 

 

 

Net asset value per share

60.62

 EUR(¹)

 

 

(1) inclusive of the profit of the current year

(2)after payment of dividend, inclusive of

   the profit of the current year

 

In accordance with regulation n° 1606/2002 of the European Union ("the EU regulation"), the company will prepare its consolidated annual financial statements for the year ending December 31, 2005 in application of the standards and interpretations published by the International Accounting Standards Board (IASB) and by the International Financial Reporting Interpretations Committee (IFRIC) in so far as these have been ratified by the European Commission.

 

In accordance with the EU regulation and with the stipulations of International Financial Reporting Standard (IFRS) IFRS1 "First-time Adoption of International Financial Reporting Standards" (IFRS1), the transition date has been set to January 1, 2004.   Consequently, the company has to prepare an opening balance sheet on January 1, 2004 in compliance with IFRS, in order to allow the establishing of comparative figures.

 

In accordance with IFRS1, the company will apply IFRS as from January 1, 2005, this being the first fiscal year for which the consolidated annual financial statements have to be prepared complying with IFRS.

The company has decided to make use of the exemption allowing not to publish 2004 comparative figures with respect to International Accounting Standard 32 "Financial instruments : disclosure and presentation" (IAS 32) ) and to International Accounting Standard 39 "Financial instruments: recognition and measurement" (IAS 39). For these two standards the transition date will be January 1, 2005.

 

A brief explanation of the adjustments due to the first application of IFRS is provided in the footnotes to the consolidated balance sheet and income statement published in this release.  For the preparation of the comparative figures for the purpose of first time application of IFRS, IFRS 1 foresees a number of mandatory exceptions and a number of optional exemptions to the complete retroactive application of the IFRS standards.  The following exemptions, applicable to the company have been applied:

 

The company has decided to make use of the exemption allowing not to publish 2004 comparative figures with respect to IAS 32 and IAS 39.   For both standards the transition date will be January 1, 2005.

 

The company has posted the cumulated actuarial gains and losses for all existing employee benefit schemes as per January 1, 2004.

 

The IFRS principles for consolidation, valuation of assets and liabilities and the determination of results, are available at the Company's website www.wereldhavebelgium.com under financial information.  We note that the related figures are potentially subject to changes before their inclusion as definitive IFRS figures, since the current standards and interpretations might be subject to modification until December 31, 2005.

 

Compared to 2004, the profit for the first half-year increased by EUR 11.8 mln to EUR 14.1 mln. This is the result of the positive property revaluations (EUR 1.3 mln), higher net rental income[*] (EUR 0.8 mln) and lower service costs (EUR 0.2 mln).  The profit per share rose from EUR 2.21 to EUR 2.65.

 

The direct investment result of Comm. VA Wereldhave Belgium SCA increased to EUR 10.6 mln (2004: EUR: 9.5 mln). This increase is the result of EUR 0.8 mln higher net rental income, EUR 0.1 mln higher other income and EUR 0.2 mln lower service costs. The direct investment result per share amounts to EUR 1.98 (2004: EUR 1.78).

 

Shareholders' equity at June 30, 2005 amounts to EUR 317.6 mln (December 31, 2004: EUR 323.2 mln). The net asset value per share at June 30, 2005, after payment of dividend, including the profit of the current year, amounts to 59.57 (December 31, 2004: EUR 60.62).

 

At June 30, 2005 the market value of the property portfolio amounted to EUR 315.1 mln (December 31, 2004: EUR 307.4 mln). In order to comply with the IAS 40 regulation, fair value has been computed after deduction of the transaction costs incurred at the sales process.  The independent appraiser has carried out the valuation in conformity with "International Valuation Standards" and "European Valuation Standards". At April 13, 2005, Wereldhave Belgium acquired 4 commercial units alongside the shopping center in Nivelles for an amount of EUR 3,9 mln. The occupancy rate, expressed in a percentage of market rent, amounts to 82 %. The vacancy concerns only the office portfolio.

 

Comm. VA Wereldhave Belgium expects an operational profit per share for 2005 comparable to the one for 2004.

 

Vilvoorde, August 9, 2005

N.V. Wereldhave Belgium S.A.

Statutory Management Company

 

For further information:

 

Wereldhave Belgium.
Eddy De Landtsheer
Tel.       + 32 2 732 19 00