Despite a severe slackening of economic growth, VastNed Offices/Industrial has achieved an increase of the direct investment result per share. This result (= cash profit) increased by 4.3% from Euro 3.03 in 2000 to Euro 3.16 in 2001.
An (optional) dividend of Euro 3.16 per share will be proposed to the General Meeting of Shareholders on April 17; either entirely in cash or partly in cash and partly in shares to the charge of the share premium reserve.
The objectives for 2001 have been fully realised, i.e. expansion of the property portfolio in Belgium, the sale of properties in the Netherlands and the improvement of the capital ratios. For 2002, at least an equal direct investment result per share is being anticipated.
In 2001 a gross rental income of Euro 111.3 million was realised, an increase of 33.1% compared to 2000 (Euro 83.6 million). This increase was due to acquisitions, indexations and rent adjustments, while the properties sold in the Netherlands at the end of 2001 continued to generate income for the full financial year.
The property portfolio was valued on balance Euro 8.7 million lower, mainly due to the writing off of purchase costs.
Operational expenses amounted to 11.2 % of gross rental income (2000: 12.5%). General costs decreased from Euro 1.8 million in 2000 to Euro 0.9 million in 2001. In 2000, this entry was charged with one-off higher automation costs and costs for radio commercials.
Due to the expansion, interest charges increased to Euro 34.9 million (2000: 18.3 million).
Net asset value per share, including the direct investment result, at the end of 2001 amounted to Euro 31.78 (2000: Euro 31.06).
The property portfolio
The circulation of the Dutch property portfolio, announced in the spring of 2001, was realised in the second half of the year with the sale of offices, industrial premises and the remaining shops for Euro 175.9 million in total. The sales exceeded the most recent valuation and the average initial yield was approximately 8.9%.
The sales programme had as one of its aims to bring the balance sheet ratios to a more desired level and was in line with the strategy of further international spreading within north-western Europe.
A second important development in 2001 took place in Belgium, where VastNed Offices/Industrialâ€™s interest was expanded considerably in a number of steps. This led to the emergence of Intervest Offices N.V. Intervest Offices is a Bevak which is listed on Euronext Brussels. The total portfolio at the end of 2001 represented an invested capital of approximately Euro 400 million.
With the reverse takeover in June 2000 of the listed PeriFund Comm. VA, VastNed obtained a 57% interest in this Bevak, of which the name was changed to Intervest Offices N.V.
By bringing a large part of Vastned Offices Belgiumâ€™s remaining holdings into the property portfolio of Intervest Offices, the interest was expanded to approximately 76%.
Also in order to increase the free float of the Intervest Offices shares, in December the basis was laid for a merger in 2002 with Siref N.V., a listed Bevak, which focuses entirely on semi-industrial property. In January 2002, Intervest Offices took a 27.62% interest in Siref. With that, it obtained effective control of Siref, and was obliged to make a public offer for the remaining Siref shares. The proposed swap ratio holds an equal dividend yield for both groups of shareholders. The merger is intended to be effected before the summer of 2002.
As per December 31, 2001, Intervest Officesâ€™ property portfolio consisted of 20 office buildings with a total floor space of approximately 225,000 m2, with 166 separate tenants.
In France, no changes in the property portfolio took place. At the end of 2001, VastNed Offices/Industrial held logistics centres in Lomme, Meaux and Roissy with a total floor space of 58,000 m2.
As per December 31, 2001, the geographical spreading of the total invested capital was as follows: