The Hague, The Netherlands, 2012-05-10 08:00 CEST (GLOBE NEWSWIRE) --
Results 1st quarter 2012
Key items:
- Profit € 26.7 mln (Q1 2011: € 27.6 mln)
- Direct result per share € 1.10 (-13.4%)
- Like-for-like rental growth 1.9%
- Valuation portfolio stable
- Net asset value per share € 73.91 (-1.2%)
- Acquisition Shopping I and Stadsplein Genk, Belgium (€ 69 mln)
- Exit from USA started: sale in Washington DC (USD 147.5 mln)
Hans Pars, CEO of Wereldhave N.V., comments:
“The direct result per share for the first quarter of 2012 amounts to € 1.10, a decrease of 17 eurocents compared to the previous year. The decrease can be attributed primarily to property disposals, higher general costs and interest charges.
The like-for-like rental growth of the strategic core portfolio (shopping centres in The Netherlands, Belgium, Finland and the United Kingdom and offices in Paris and Madrid) amounts to 3.1%. The rental growth of the remainder of the portfolio was 0.2% negative, resulting in a like-for-like rental growth of the total portfolio of 1.9%.
As per today, ca. 24% of the apartments in the Eilan Development project in San Antonio is let. The pace of letting amounts to approximately 25-30 apartments per month. Start-up costs of this project are therefore likely to continue to have a negative effect on the direct result for some time.
The exit from the United States was started during the first quarter with the disposal of the US-Mint office building in Washington DC. For 2012, further disposals are planned in Washington and San Diego. In Belgium, the expansion of the Nivelles shopping centre opened doors on March 30, 2012. This successful project will contribute to the direct result as from the second quarter.”
Profit
Compared to the previous year, the profit for the first quarter of 2012 decreased by € 0.9 mln to € 26.7 mln, of which - € 3,4 mln was caused by a decrease of the direct result and + € 2,5 mln by an improved indirect result. The result per share amounts to € 1.11 per share (2011: € 1.21 per share).
Direct result
The direct result for the first quarter of 2012 amounts to € 25.6 mln, a € 3.4 mln decrease compared to 2011. The lower direct result can be attributed primarily to property disposals, higher general costs and interest charges.
Property acquisitions and disposals had a total negative effect of € 2,1 mln on the direct result. The general costs rose by € 1.0 mln, mainly caused by higher personnel and advisory costs and a lower charge to third parties due to sales. The € 0.5 mln increase of the interest charges can be attributed to higher interest rates and an increased size of the loan portfolio. The average nominal interest rate as at March 31, 2012, amounts to 2.9% (March 31, 2011: 2.8%). Exchange rate differences had a positive effect on the direct result of € 0.4 mln, other movements - € 0,2 mln.
The like-for-like rental growth amounted to 1.9%. The strategic core portfolio (shopping centres in The Netherlands, Belgium, Finland and the United Kingdom and offices in Paris and Madrid) showed a prosperous rental growth of 3.1% and the remainder of the portfolio recorded a -0.2 like-for-like rental growth.
The development of rental income of the core portfolio was particularly positive in the core shopping centres with 4.0% in The Netherlands (eight shopping centres), 3.3% in Belgium (excluding the expansion of Nivelles) and 5.4% in Finland (in spite of far reaching refurbishments). In the United Kingdom (Poole shopping centre) the rental growth was 4.8% negative due to a number of rent renewals and terminations.
The rent development of the non-core portfolio was depressed primarily due to a 6.0% decrease of like-for-like rental income in the United States. This was largely caused by a ten year extension of the lease which was concluded mid 2011 (at lower effective rents) of a large tenant in the Broadway 655 office building in San Diego.
The 1.9% increase of the like-for-like rental income was almost completely absorbed by operational start-up costs of the hotel and the apartments of the Eilan Development project in San Antonio. The direct result for the first quarter of 2012 amounts to
€ 1.10 per share, which represents a 13.4% or € 0.17 decrease compared to the corresponding period in 2011. The EPRA occupancy rate as at March 31, 2012 stood at 91.1%, a 0.3% decrease compared to December 31, 2011. Broken down per sector, the EPRA occupancy rates at March 31, 2012 (December 31, 2011) were: retail 96.2% (95.1%), offices 83.8% (86.9%) and other 94.9% (94.4%).
Indirect result
The indirect result for the first quarter of 2012 amounts to € 1.1 mln (2011: - € 1.4 mln). The valuation of the portfolio remained nearly stable in all countries. During the first quarter of 2012 a result on disposals of - € 0.3 mln was made with property disposals to a total consideration of € 109.7 mln.
Equity/debt
At March 31, 2012 shareholders’ equity, including minority interest, stood at € 1,727 mln (December 31, 2011: € 1.714 mln). Exchange rate differences had a negative effect of
€ 13.5 mln on equity, largely caused by a lower exchange rate for the US-dollar. The net asset value as at March 31, 2012, including current profit, amounts to € 73.91 (December 31, 2011: € 73.44). The Loan to Value ratio as at March 31, 2012 amounts to 41% (December 31, 2011: 41%). On March 31, 2012, there were 21,679,608 issued ordinary shares.
Property portfolio
At the end of the first quarter of 2012, the value of the investment portfolio amounted to
€ 2,764.9 mln (December 31, 2011: € 2,830.2 mln) and the value of the development portfolio stood at € 248.0 mln (December 31, 2011: € 227.9 mln). The decrease in size of the investment portfolio primarily relates to the sale of an office building in Washington DC on February 29, 2012. This US-Mint office building was sold for USD 147.5 mln, which represents a net yield of ca. 4.5%. The net proceeds were € 0.3 mln below the book value at December 31, 2011. With this transaction Wereldhave has set a large first step in the disposal of its American property investments during the next two to three years. For the year 2012 further sales are scheduled in Washington DC and in San Diego. The proceeds from the US disposals will be reinvested in new acquisitions and Wereldhave’s
(re-)development projects in Western Europe. As from the year 2012, Wereldhave fully focuses on shopping centres in The Netherlands, Belgium, Finland and the United Kingdom and offices in Paris and Madrid.
The increased size of the development portfolio can be attributed to the acquisition of the NODA development project in France and investments in Eilan, San Antonio. On the other hand, the expansion of the Nivelles shopping centre was transferred from the development to the investment portfolio.
Development portfolio
In the United States, on June 7, 2012 the “grand opening” of the Eilan Development in San Antonio will take place. The average pace of letting amounts to 25-30 apartments per month. Wereldhave therefore anticipates that it will take between one and a half year to two years before the occupancy of the apartments will be at the required level. Currently, ca 24% of the 539 apartments is let.
On March 30, 2012 the expansion of the Nivelles shopping centre was officially opened. The footfall of the centre shows a sound increase since the opening. In Finland agreement has been reached with Stockmann about the relocation of the department store with the same name to the Piazza area of the Itis shopping centre (formerly known as Itäkeskus) in Helsinki. The relocation of this anchor tenant strongly improves te lay-out of the entire centre. The total investment for the refurbishment and improvement amounts to € 90 mln. The project is proceeding as scheduled and works will progress in phases until the end of 2014. The relocation of Stockmann is planned for the beginning of the last quarter of 2013.
In Spain the refurbishment of the Planetocio shopping centre is also proceeding as planned. The new anchor tenant MediaMarkt will open doors to the public on July 1, 2012 and the interest of prospective tenants has increased markedly since MediaMarkt was contracted.
In France, in Issy-les-Moulineaux, Wereldhave acquired the plot of land for the Development of the NODA office building. Construction commenced and completion is scheduled for the second quarter of 2014. The total investment amounts to € 138 mln.
In Belgium, on April 11, 2012, Wereldhave Belgium acquired Redevco’s stake in shopping centre “Shopping 1” and the commercial part of the ‘Stads- en Sint-Martinusplein’, both located in Genk, against the issue of new shares. The transaction value amounts to circa
€ 69 mln. Wereldhave NV has maintained its interest in Wereldhave Belgium at approximately 70%. Redevco’s stake in Wereldhave Belgium amounts to 4.6%. Shopping 1 will be expanded with 11,500 m² and renovated extensively. The permits have been obtained and construction will start this year. After completion the total lettable area of Shopping 1 will comprise 27,100 m².
Prospects
The result for the year 2012 will be influenced negatively, particularly due to the pace of disposals versus acquisitions, the start-up costs of the Eilan development project in San Antonio and challenging office markets. Wereldhave does not yet forecast the result for the year 2012.
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.
The Hague, May 10, 2012
Board of Management Wereldhave N.V.
For further information:
Richard W. Beentjes
Tel. + 31 70 346 93 25
Information for analysts:
Charles F. Bloema / Jaap Jan Fit
Tel. + 31 70 307 45 45 /+ 31 70 307 45 43
