VastNed Retail N.V., specialised in investments in retail properties in the Netherlands, Germany, Spain, Belgium, France, Italy and Portugal, in the first nine months of this year realised a gross rental income of Euro 91.6 million, an increase of 11.6% compared to the first nine months of 2001 (Euro 82.1 million). This increase was caused by higher rents due to indexation and by the expansion of the property portfolio, especially in Spain and France in 2001 and in Belgium in 2002.
The direct investment result increased by 7.4% to Euro 48.0 million (30/9/2001: Euro 44.6 million). The indirect investment result (the balance of unrealised and realised value changes of investments, movements in deferred taxes and the costs of capital management) amounted to Euro 1.5 million (30/9/2001: Euro 2.2 million). The revaluation of the property portfolio was Euro 10.5 million. The total investment result came to Euro 49.5 million (30/9/2001: Euro 46.8 million). The value of the property portfolio at the end of the reporting period was Euro 1,601 million (30/9/2001: Euro 1,574 million).
The direct investment result per share amounted to Euro 3.11 (30/9/2001: Euro 2.99), calculated over the average number of ordinary shares issued of 15,434,628 during the reporting period (30/9/2001: 14,935,831 shares). The indirect investment result per share amounted to Euro 0.10 (30/9/2001: Euro 0.14).Shareholdersâ€™ equity per share including current profits as per September 30, 2002, amounted to Euro 48.98 (Euro 48.90).
The property portfolio
Letting transactions and contract extensions were satisfactory. Vacancy in the property portfolio at 2.4% was below the level of the first nine months of 2001 (2.6%).
In view of the disappointing results of the German portfolio, the properties in this country will be sold, as announced earlier. The intention is to sell a part of it even this year. The means that become available will mostly be used for investing in attractive property, chiefly in Spain.
For the full year 2002, in line with earlier forecasts, an increase of the direct investment result is anticipated to approximately Euro 4.15 (2001: Euro 4.01). The indirect investment result is expected to be slightly negative on balance.