Interim Results

RNS Number : 8293A

Wereldhave NV

07 August 2008

 



• Profit per share EUR 2.32

• Direct result per share EUR 2.43

• Occupancy rate 94.7%

• Wereldhave share component of AEX

Profit

The profit for the first half year of 2008 (direct and indirect result) amounts to EUR 52.4 mln, or EUR 2.32 per share (first half year 2007: EUR 114.7 mln or EUR 5.31 per share). The turmoil on financial markets and the credit crunch have put an end to years of positive property revaluations. Property values have stabilised, resulting in lower revaluation results and lower surpluses on disposals compared with 2007. The revaluation of the property portfolio was slightly positive in all countries, with the exception of the United Kingdom and France.  

Direct result

The direct result for the first half year of 2008 amounts to EUR 54.0 mln, which is EUR 2.7 mln or 4.7% lower than the first half of 2007. Exchange rate differences on GBP and USD had a negative effect of EUR - 1.8 mln on the direct result. An incidental gain of EUR 2.2 mln in 2007 was not repeated in 2008, which caused a drop of other financial gains and losses. Lower interest rates (primarily in the United States) kept the rise in interest charges due to  property acquisitions in 2007 limited to EUR 0.3 mln. 

The occupancy rate improved, particularly in Belgium, being 94.7% for the second quarter, 0.7 points up from the first quarter of 2008. Broken down by sector, occupancy rates were: offices 90.3%, retail 98.9%, industrial 96.3% and residential 93.3%.

Indirect result

The indirect result for the first half year of 2008 amounts to EUR -1.6 mln (first half year 2007: EUR 58.0 mln). The decrease is primarily due to lower revaluation result and lower surpluses on disposals. 

During the first half year property values have more or less stabilised. The revaluation for the first half year was EUR 2.8 mln, compared to EUR 64.3 for the first half of 2007. Due to a negative revaluation of financial instruments, the total revaluation result amounts to EUR 0.1 mln (first half year 2007: EUR 60.5 mln). In the United Kingdom, the effects of the financial crisis have reflected in lower property values for several quarters already. In France the value of the portfolio decreased in view of a renovation of a shopping centre. The weighted average net cap rate of the portfolio rose by 0.1% to 6.0%. 

During the first half of 2008 only one industrial property was sold in the United Kingdom. Consequently, results on disposals dropped by EUR 7.9 mln compared to the first half of 2007. Other gains and losses increased by EUR 0.6 mln as the result of the settlement of a fire insurance claim from 2001. Exchange rate differences had an (unrealised) effect of EUR - 3.3 mln on the indirect result.

Equity

Shareholders' equity at June 30, 2008 stood at EUR 1,893,4 mln (December 31, 2007: EUR 1,972.6 mln before distribution of profit). This represents 69% of the balance sheet total (December 31, 2007: 70%). Exchange rate differences had a total negative effect of EUR - 65.4 mln on the value of the property portfolio, causing a reduction of shareholders' equity of EUR 29.4 mln. The net asset value per share at June 30, 2008 amounts to EUR 85.32 (December 31, 2007: EUR 84.37 after distribution of profit). No convertible bonds opted for conversion. At June 30, 2008 the total number of ordinary shares in issue stood unchanged at 20,781,735.

Property portfolio

During the first half of 2008, the property portfolio did not change, with the exception of the sale of an industrial property of 2,100 m² in Winchester, United Kingdom for EUR 2.8 mln. 

Prospects

Wereldhave has decided not to invest in Turkey, in view of the sharp drop in initial yields and the political instability. 

The Wereldhave share will be a component of the major Dutch AEX stock index. The free float of the Wereldhave shares amounts to 100%. Wereldhave expects that the entry to the AEX index will have a positive effect on the trade in Wereldhave shares. 

For the year 2008, Wereldhave forecasts a direct result between EUR 4.75 and EUR 4.85 per share, given stable currency rates. 

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/8293A_-2008-8-7.pdf

 

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