Real estate investor KFN has been able to maintain its direct result in 2003 at a nice level with € 52.3 mln. (2002: € 52.1 mln.). New leases and exploitation and (advance) leases of offices resulted in a stable growth of rental income. On the other hand, KFN also faced higher costs for standing empty buildings as a result of the continuing worsening office market and one-off costs for further professionalization and marketing efforts of the company.
Despite the lease of over 18,500 m², the occupation rate of the portfolio decreased from 94% to 90.8%. This decrease follows the overall trend in the office market.
Office space in operation
During 2003 five new projects were delivered and taken in operation. These are the new office buildings Flight Forum I (10,969 m²) and Flight Forum 840 (10,299 m²) in Eindhoven, Quinterium Offices (16,592 m²) in Gouda, Braingate (15,907 m²) in Capelle aan den IJssel and the extension of the low-rise building Zuidplein of WTC Amsterdam (13,000 m²). Of these projects four had advance leases.
Vismans, CEO of KFN: “Despite the still alarming situation in the office market we do expect that the direct return on investment will come out on the same level in 2004. To do this, we will optimize the use of our five key value drivers: the management, the clients, the real estate portfolio, the financing instruments and the client focus concept. This means an even more active communication and service to existing and potential clients, mediators and others involved in housing processes. The new website plays a key role in this. The current portfolio policy will be continued further, aimed at an increase of scale and improvement of the market position.”