1st Quarter Results

RNS Number : 0820S

Wereldhave NV

12 May 2009

 



First quarter results 2009

• Higher direct result per share

• Negative revaluation of 1.2%

• Net asset value per share: EUR 84.30

Results

The loss for the first quarter 2009 amounts to EUR 1.5 mln (2008 profit EUR 38.2 mln) or EUR - 0.16 per share (2008: EUR 1.73). The direct result increased by EUR 0.7 mln. The decrease in profit is due to a downward revaluation of the investment portfolio whereas the revaluation in the first quarter of 2008 was still positive. There was a negative property revaluation in all countries. The total revaluation amounted to EUR -31.8 mln (2008: EUR + 12.6 mln).

Direct result

The direct result for the first quarter of 2009 amounts to EUR 28.1 mln, which is EUR 0.7 mln higher than 2008. The increase (including exchange rate differences) is mainly caused by lower interest expenses (EUR 1.4 mln). Net rental income was EUR 0.4 mln lower. This was due to vacancies in 2 office buildings (in France and the USA), offset by additional rental income from the San Diego office building that was acquired in September 2008. General costs were up EUR 0.2 mln due to non-recurring items. Exchange rate differences included in these fugures (a lower average British pound and a higher average US dollar) had a total positive effect of EUR 0.3 mln.

Wereldhave uses variable rates for approximately 75% 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 31 March 2009 stood at 2.6% (2008 year-end: 3.7%).

The occupancy rate decreased to 89.6% (2008: 94.7%). Broken down by sector, occupancy rates were: offices 81.0%, retail 98.0%, industrial 99.6% and residential 89.2%.

Indirect result

The indirect result for the first quarter of 2009 amounts to EUR - 29.6 mln (2008: EUR 10.9 mln positive). The total revaluation is EUR 31.8 mln negative (first quarter 2008: EUR 12.6 mln positive). The negative property revaluation of 1.2% of the portfolio is spread over all countries and all sectors. The average yield applied to the valuation of the portfolio increased fractionally and the weighted average cap rate of the portfolio stood at approximately 6.2%. Wereldhave expects the cap rates to rise further in 2009 and expects property values to continue to fall as a result.

Lower property valuations resulted in a decrease in deferred taxes, which had a positve effect on the indirect result of EUR 3.6 mln (2008: EUR - 3.4 mln). Other financial income and expense had a negative impact of EUR - 1.1 mln (2008: EUR 1.3 mln positive). This item comprises mainly exchange rate differences.

Equity

Shareholders' equity at March, 31, 2009 stood at EUR 1,873.9 mln (December 31, 2008: EUR 1,860.2 mln). This represents 66% of the balance sheet total (2008 year-end: 66%). During the first quarter, no shares have been issued and no convertible bonds opted for conversion. On March 31, 2009, the total number of ordinary shares in issue amounts to 20,781,735. The net asset value per share before profit appropriation as at March 31, 2009 was EUR 84.30 (2008 year-end: 83.74).

After the balance sheet date, on April 24, 2009 a dividend was distributed and 52% of shareholders entitled to dividend chose the stock option. Therefore, 495,253 ordinary shares have been issued and the total number of ordinary shares in issue amounts to 21,276,988 at present, adding EUR 22.9 mln to equity.

Property portfolio

During the first quarter 2009, there were no real estate transactions. The occupancy rate decreased to 89.6% (2008:94.7%) due to vacancies that arose at the end of 2008 in 2 office buildings (Paris and Washington DC). In both cases these are modern, well located offices, and, although rental markets are more difficult due to the economic crisis, Wereldhave is positive about the letting prospects for these properties. 

In April, Wereldhave has let approximately 3,000 m² in its Broadway 655 office in Dan Diego, bringing the occupancy rate of this property to 93%. The mixed-use development in San Antonio, USA, continues as planned. For the development of the extension of the Nivelles shopping center, Wereldhave Belgium is waiting for the construction permit, expected in the third quarter of 2009.

Preference shares

It was decided at the Annual General Meeting of Shareholders on April 2, 2009, that the preference shares outstanding at present will be withdrawn. The withdrawal procedure will be executed during the coming months.

Wereldhave will retain the ability to issue new preference shares in the future.

Composition of the Board of Management

The Annual General Meeting of Shareholders appointed Mr J. Pars (46) and Mr D.J. Anbeek (46) as statutory directors of Wereldhave N.V.. 

Mr G.C.J. Verweij, the present CEO of Wereldhave, will step down on June 30, 2009. Mr Pars will succeed him as CEO on July 1, 2009.

Mr. J.A.P. van Oosten (61), CEO of the Royal Dutch BAM Group nv, has been appointed member of the Supervisory Board of Wereldhave. The Dutch Financial Services Authority (AFM) has approved these appointments.

The Hague, May 12, 2009

Board of Management Wereldhave N.V.

 

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