The Dutch property investment company VastNed Offices/Industrial presented its results of the first nine months of 2004. The highlights are: direct investment result € 31.3 million (€ 36.8 million in the same period in 2003); indirect investment result € 9.2 million negative (€ 25.7 million negative in the same period in 2003); total investment result € 22.1 million (€ 11.1 million in the same period in 2003).
(in brackets: first nine months 2003; *adjusted for purposes of comparability)
Direct investment result first nine months 2004
In the first nine months of 2004, VastNed Offices/Industrial has realised a direct investment result of € 31.3 million (€ 36.8 million*). Gross rental income decreased to € 70.8 million (€ 82.9 million) mainly due to sales realised in 2003 and 2004 and the reduced occupancy rate.
Indirect investment result first nine months of 2004
The indirect investment result for the first nine months of 2004 amounted to € 9.2 million negative (€ 25.7 million negative*).
Results per share first nine months 2004
Per share, the direct investment result fell to € 1.64 (€ 2.12*). The indirect investment result per share came to € 0.48 negative (€ 1.53 negative*).
The value of the property portfolio on September 30, 2004 amounted to € 1,207 million (September 30, 2003: € 1,307 million).
VastNed Offices/Industrial has half its Dutch portfolio appraised on June 30 and the other half on December 31 by independent appraisers. As a result this portfolio has not been appraised on September 2004. The Belgian portfolio has been appraised pursuant to Belgian legislation. This has led to a write-off of € 2.3 million (share VastNed Offices/Industrial).
In the third quarter of 2004 VastNed Offices/Industrial has sold its office property on 492 Huis te Landelaan in Rijswijk for € 2.1 million This property had been vacant for some time. The buyer is Vestia Den Haag housing association, which will refurbish the property for housing pensioners in communes. The company has also sold a small semi-industrial property on 8 Debbemeerstraat in Hoofddorp for € 0.4 million. These sales led to a sales profit of € 0.5 million compared to the most recent appraisal values.
VastNed Offices/Industrial has also reduced its interest in its subsidiary Intervest Offices to 55.6% (58.8% as at December 31, 2003), which resulted in a book profit of € 1.3 million in the first nine months of 2004.
The average occupancy rate of the property portfolio in the first nine months of 2004 was 84.0% (89.5%). This decrease is due to the difficult situation in the market for offices and industrial premises in the Netherlands and Belgium. The occupancy rates of the respective countries were: Netherlands 86.1% (90.6%) and Belgium 81.1% (87.7%). The occupancy rate as at September 30, 2004 amounted to 82.9% in the Netherlands and 81.0% in Belgium.
Group equity and financing
Group equity expressed as a percentage of invested capital on September 30, 2004 amounted to 50.2% (September 30, 2003: 47.7%). The ratio short-term loan capital / long-term loan capital on September 30, 2004 amounted to 37/63 (September 30, 2003: 51/49). The total number of ordinary shares in issue as per September 30, 2004 was 19,273,904 (September 30, 2003: 18,894,020).
Developments and outlook
Taking into account planned sales, an unchanged interest rate, a falling occupancy rate and the fact that since July 1, 2004 interest relating to the TriNovium project in Nieuwegein is no longer capitalised, a direct investment result for 2004 is anticipated of approximately € 2.13 per share (€ 2.59*).