Dutch real estate investor KFN has ended the first half year of 2004 with a total result of € 15.8 million (2003: 14.2 million) according to expectations. In a percentage of the net assets, KFN realized a total result of 2.1% compared to 1.9% over the same period last year. The organization however doesn’t expect to be able to maintain this positive trend in the next half year.
The remaining weak office market has lead to a higher financial vacancy rate of 10.9% (2003: 9.1%). KFN expects that this rate will have increased to approx. 12.6% at the end of 2004.
Encouraging lease transactions
The lease efforts have been successful: in the first six months 30,000 m² were let. KFN thinks therefore that it will outperform its lease aim of 44,500 m² for 2004 and will be able to bring the contracted surface to at least 90% of the total surface at the end of 2004. However, the result of that will mostly be visible in the figures for 2005 and 2006.
Despite the current negative climate in the office market, KFN looks to the future with trust. In May of this year, KFN acquired a new development at an A-location; a large office of approx. 10,000 m² which is part of the project Oosterdokseiland in Amsterdam. The project is expected to be delivered mid-2007.