VastNed Offices/Industrial has presented its first half year 2005 results. The total investment result for the first half year of 2005 amounted to 3.4 million (13.1 million*). This sharp decrease of the total investment result is mainly due to higher unrealised value decreases in the property portfolio of 18.0 million in total, and to lower gross rental income.
Net rental income
Gross rental income in the first half year of 2005 amounted to 44.4 million (48.5 million*). This lower rental income is the consequence of significant sales in the 2004 financial year and of a reduced average occupancy rate. Unrecovered service costs amounted to 1.0 million (0.7 million). Operating expenses fell to 6.4 million (7.1 million*). This is mostly the result of the abovementioned sales and relatively high maintenance expenditure
in 2004 in relation to the Belgian property portfolio. Expressed as a percentage of gross rental income, operating expenses fell modestly to 14.4% (14.7%*). Net rental income came to 37.0 million (40.7 million*).
Value movements property investments
The (unrealised) value movements property investments amounted to 18.0 million negative (14.3 million negative*). Values appear to have stabilised.
Net sales result property investments
The net sales result on property investments amounted to 2.1 million positive in total. The sales of property investments amounted to 39.1 million in total, on which a sales result of 1.3 million was realised.
The net financing expenses increased to 11.7 million (10.4 million). The item net financing costs consists of financial income and expenditure. Financial expenditure fell from 13.0 million to 12.1 million due to the sales realised in 2004.
General expenses amounted to 2.5 million (2.7 million).
Taxes on income
Taxes on income in the first half year of 2005 amounted to 0.3 million (0.4 million). This decrease is due to the fact that virtually all Belgian investments have been incorporated in the tax-exempt entity Intervest Offices.
Investment result minority interests
The investment result due to third parties who held minority interests in subsidiary companies of VastNed Offices/Industrial amounted to 3.1 million (1.5 million*). This means that a larger part of the investment result is due to third parties than in the comparable period of last year.
Direct and indirect investment result
The direct investment result amounted to 16.3 million (21.5 million*). The indirect investment result in the first half year of 2005 amounted to 12.9 million negative (8.4 million negative*).
Results per share
The direct investment result per share amounted to 0.85 (1.13*). The indirect investment result amounted to 0.67 negative (0.44 negative*) and the other movements were 0.03 negative (0.12 negative*).
The size of the property portfolio as per June 30, 2005 amounted to 1,110 million (March 31, 2005: 1,126 million).
The average financial occupancy rate of the property portfolio was 81.3% (84.1%). The occupancy rate in the various countries was: the Netherlands 80.8% (86.9%) and Belgium 81.7% (80.3%).
The commercial spot vacancy rate as per June 30, 2005 amounted to 81.8%. Spot vacancy in the respective countries was: the Netherlands 81.0% (March 31, 2005: 82.7%) and Belgium 82.5% (March 31, 2004: 82.2%).
Shareholders' equity and financing
Shareholders' equity expressed as a percentage of the property investments amounted to 50.6% on June 30, 2005 (June 30, 2004: 49.3%*). The ratio of long term loan capital vs. short term loan capital amounted to 69/31 as per June 30, 2005 (June 30, 2004: 62/38). The total number of ordinary shares in issue was 19,387,617 as at June 30, 2005 (June 30, 2004: 19,273,904).
At the general meeting of shareholders of April 5, 2005 the dividend for the 2004 financial year was declared at 2.13 per share.