In the first six months of 2005, Dutch property company KFN improved its result by over 23% compared with the same period last year. In line with the expectations of management, the first half year was closed with an overall result of 21.4 million (2004: 17.3 million). During the first six months of 2005, the return on shareholders' equity was 2.9%. Financial occupancy of the KFN portfolio increased from 87.9% at the end of 2004 to 89.1% in June 2005, which is comparable to the level in June 2004.
The first half of 2005 was further characterised by the acquisition f an office building, as yet to be built, of over 22,000 m². The roject, which comprises two linked sections, covers a prime ocation in Rotterdam and is scheduled for completion in 2007. In addition, FN purchased an office building in Amersfoort (2,300 m²), reviously owned by Heilijgers (part of the Royal BAM Group nv), which, as the urrent tenant, has entered into a new 10-year lease agreement ith KFN on market terms.
"Despite the slight recovery in the top-end segment of the office market, we do not anticipate any really significant upswing in the second half of 2005," says CEO Paul Vismans. "Having said that, we look to the future with confidence and expect to be able to close the books in 2005 with a higher net profit than in 2004. We also expect to record a less negative revaluation result than anticipated at the end of 2004."
Since 1 January 2005 KFN has prepared its reports including comparative figures for 2004 in accordance with IFRS.