Nieuwe Steen Investments N.V. (NSI) continued to achieve steady results during Q2 2011. The Q2 direct result amounted to 0.31 per share. The interim-dividend will amount to 0.30 per share.
During the first half of 2011, NSI achieved a direct investment result of 26.3 million compared to 26.8 million during the same period in 2010. However, the direct result over the first half of 2010 included a one-off income item of 2.0 million related to the termination of a lease in the La Tour office building. Adjusted for this one-off income item the HY 2011 direct result has increased by 1.5 million compared to the direct result during the first six months in 2010. This difference is mainly caused by the contribution of the two shopping centres acquired during the course of 2010 and the final dividend for 2010 that NSI received on its 4.99% stake in VastNed Offices/Industrial.
Johan Buijs, CEO of NSI, said in a response:"We have seen a considerable increase in activity in the office portfolio over the previous quarters. Companies, especially small and medium sized companies, are actively looking for new accommodation. This is, amongst other things, shown by the over 90,000 m² or 22% of the office portfolio, that was either let or extended by NSI in the first half of 2011. This encouraging trend has not yet resulted in an structurally improved occupancy rate, mainly because larger corporations are still reducing. The retail portfolio shows very stable results. The signing of the development agreement regarding the extension of our shopping centre Keizerslanden in Deventer, is a milestone for NSI. The Construction & Development department is fully operational and provides for excellent investments with an attractive return. Further investment opportunities, especially in retail, are under investigation."
The downward revaluation of the Dutch real estate portfolio amounted to 12.8 million during the first half of 2011 (first half of 2010: 14.8 million). The first quarter of 2011 saw a downward revaluation of 5.1 million (Q1 2010: 5.0 million) and the second quarter of 7.7 million (Q2 2010: 9.8 million). During the first half of 2011 the retail portfolio increased in value by 2.6 million whereas the office portfolio declined in value by 15.5 million. Yields showed the same trend as in preceding quarters. The revaluations are in line with previous quarters that also saw downward revaluations between 4 million and 7 million on average.
The indirect investment result, that consists besides the revaluations of the real estate portfolio mainly of the changes in the market value of the financial derivatives, amounted to - 7.3 million over the first half of 2011 (HY 2010: - 26.7 million). The market value of the financial derivatives increased by 7.7 million and partly compensates for the negative revaluations of the real estate portfolio. The net asset value decreased due to the negative indirect investment result, the payment of the 2010 final dividend and the payment of the Q1 2011 interim-dividend to 13.28 per share (31 December 2010: 13.44 per share; 31 March 2011: 13.86 per share).
The total investment result for the first half of 2011 amounted to 19.0 million (HY 2010: 36,500). The occupancy rate remains around 90%. On 30 June 2011, the occupancy rate was 89.5% while it stood at 90.1% and 89.8% on 31 March 2011 and 31 December 2010 respectively. The slight decrease of the occupancy rate is the result of the finalisation of the bankruptcy of Impact Retail (electronics chain It's) in the second quarter and the termination of two leases in the offices portfolio
During the first half of 2011, NSI extended its position in shopping centre Zuidplein in Rotterdam by acquiring two additional retail units. These units with a surface area of approximately 2,500 m2 were purchased for a price of 6.1 million and a rental income of 0.45 per annum. The purchase is complementary to the acquisition of shopping centre Zuiderterras at the end of December 2010 and the part of shopping centre Zuidplein that was