VastNed Retail presents 2005 Results (NL)

VastNed Retail has presented its 2005 Results. The investment result for 2005 amounted to €157.9 million (€70.2 million*). This strong increase of the investment result was due to high positive value movements in the property portfolio in 2005.

Gross rental income in 2005 amounted to 106.8 million (119.5 million*). Taking into account the slightly higher unrecovered service charge expenses of 2.1 million (1.6m*) and the 19.9% lower operating expenses of 11.2 million (14.0m*), net rental income came to 93.5 million (103.9m*).

The value movements of the property investments in 2005 amounted to 113.1 million (40.3m*).

The net sales result on property investments amounted to 1.4 million negative (24.8m negative). The large negative sales result in the comparative figures 2004 concerned the sale of the German property portfolio. Furthermore, due to few sales and more up-to-date appraisals in the context of IFRS, the net sales result on property investments remained limited.
In 2005 the following properties were sold: in the Netherlands: 99 Reguliersdwarsstraat in Amsterdam (apartments), 241 Heerlerbaan in Heerland and 22-87/111 Randstad in Almere; in Belgium: 65 Elsensesteenweg in Brussels, 13, 15-17 Verwelkomingsstraat in Brussels and 660 Boomsesteenweg in Wilrijk; in France: Grande Rue 82 in Sens; and in Italy: 2 Via Torino in Milan. Sales totalled 28.8 million.

Net financing costs decreased by 19.7% to 20.8 million (25.9m). This was due to on average lower interest-bearing loans compared to 2004 as a result of the sales realised in 2004 and 2005.

General expenses amounted to 6.4 million (6.8m).

The taxes due on the reporting period decreased to 1.8 million (3.8m). This decrease was due in particular to the inclusion of the French property portfolio in the SIIC regime as from January 1, 2005.

The movement deferred tax liabilities of 9.3 million came out higher than in 2004 (7.2m*). This increase could be attributed virtually completely to the sharp positive revaluations in the Spanish property portfolio.

The part of the investment result attributable to minority interests in 2005 amounted to 9.0 million (5.6m*). This increase was caused by positive value movements in the Belgian property portfolio, held through Intervest Retail, in shopping centre Het Rond in Houten, the Netherlands, and in the shopping centre Madrid Sur in Spain, which during the first half year of 2005 was held jointly with a partner. As from July 1, 2005, this property is wholly owned by VastNed Retail (previously 50.1525%).

The direct investment result in 2005 amounted to 59.6 million (62.2m*). The indirect investment result in 2005 amounted to 98.3 million (8.0m*). This big difference is the result of on the one hand sharp positive value movements due to appraisals in 2005 and on the other of the comparatively big loss on the sale of the German property portfolio in 2004.

The direct investment result per share in 2005 amounted to 3.54 (3.75*); the direct investment result per share amounted to 5.83 (0.48*); the other movements amounted to 0.02 negative per share (0.02 negative).

In 2005 the size of the property portfolio increased to 1,487 million (December 31, 2004: 1,360m*) due to positive value movements.

The average financial occupancy rate of the property portfolio improved to 96.3% (95.8%) in 2005. The average occupancy rate is expected to improve somewhat in the next few quarters due to various new leases in the factory outlet in Messancy, Belgium, and to the letting of the property on the Boulevard St. Germain in Paris, which has already been included in the occupancy as at December 31, 2005. Due in particular to new leases in the factory outlet (occupancy rate 82%), lease incentives expressed as a percentage of gross rental income increased to 2.4% (1.9%).

Shareholders equity expressed as a percentage of the property investments as at December 31, 2005 amounted to 62.6% (December 31, 2004: 62.3%*). The ratio between short-term loan capital and long-term loan capital amounted to 31/69 as a

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