The results of real estate investment company KFN have risen to €48.9 million, more than double the amount recorded for the same period last year (first half of 2005: €19.3 million). The increase can be attributed in part to the positive revaluation of the KFN portfolio and to lower costs. In addition, along with the gross rental income the direct investment result increased during the period, particularly as a result of the rise in 'other income' following the settlement of a rent guarantee. The return on equity for the first six months of 2006 was 6.2% (first half of 2005: 2.9 %). The financial occupancy in the KFN portfolio climbed to 89.8%, compared with 89.0% at year-end 2005.
Property sales & acquisitions
In the first six months of 2006, KFN sold its property at Eendrachtskade in Groningen to an Irish institutional investor. This transaction is consistent with KFN's strategy, which aims to rejuvenate the company's office portfolio in urban junctions.
Paul Vismans (CEO): "We expect that financial occupancy figures will continue to recover in the second half of the year, given the profile of our high-quality and relatively young portfolio combined with the clear upswing in demand for high-grade office space that has characterised the Dutch market in the first six months of 2006. In addition, we are very happy with the successful acquisition of Double U, a new office building in The Hague. That transaction is entirely in line with our portfolio rejuvenation strategy. For 2006 as a whole, we expect higher net profits and a slightly more positive indirect investment result than in 2005."