VastNed Retail has presented its first half year 2005 results. The total investment result for the first half year of 2005 amounted to 76.4 million (18.2 million*). This improvement of 320% is due to high positive value movements in the property portfolio in the first half year of 2005.
Net rental income
In the first half year of 2005 gross rental income amounted to 53.6 million (64.9 million*). Rental income and associated costs were lower than in the comparable period of last year due to the fact that the results of the German property portfolio, which was sold in the middle of 2004, are no longer taken into account.
Value movements property investments
The (unrealised) value movements amounted to 51.2 million (15.2 million negative*). These value movements are mainly due to the taking into account of lower initial yields by appraisers.
Net sales result property investments
The sales result on property investments amounted to 0.3 million (5.7 million). This lower result is due on the one hand to lower sales in the first half year of 2005 of 20.0 million than in the first half year of 2004 of 51.8 million and on the other hand to more up to date appraisals as a result of the altered appraisal methodology in the context of IFRS.
Net financing expenses
Net financing expenses decreased by 32.5% to 10.4 million
(15.4 million). This was due to on average lower interest bearing loans compared to 2004 as a result of the sales realised in 2004.
General expenses fell by 17.3% to a level of 3.1 million (3.8 million). This decrease was mainly due to the absence of general costs that were specifically associated with the German property portfolio.
Taxes due on the reporting period
The taxes due on the reporting period decreased to 1.0 million
(1.9 million). This decrease of 49.4% was mainly due to the incorporation of the French property portfolio in the SIIC regime as from January 1, 2005.
Movement deferred tax liabilities
The movement in deferred tax liabilities of 3.7 million stayed at the same level as in the first half year of 2004.
Investment result due to minority shareholders
The share of the investment result due to minority shareholders amounted to 4.2 million (3.1 million). This increase was
caused mainly by the positive revaluation of the Madrid Sur property, 49.8% of which is held by a minority shareholder, as well as of the Belgian portfolio, which is held through Intervest Retail.
Direct and indirect investment result
Since VastNed Retail strives to pay out the direct investment result in full as dividend to its shareholders, in addition to the publication of the consolidated profit and loss account according to IFRS, the direct investment result for the reporting period will also be divulged. In the first half year of 2005 the direct investment result amounted to 30.1 million (31.8 million*). The indirect investment result amounted to 46.4 million (13.6 million negative*).
Results per share
The direct investment result per share amounted to 1.79 (1.94*). The indirect investment result per share amounted to 2.76 (0.83 negative*). The other movements were 0.02 (0.01 negative).
The size of the property portfolio increased to 1,400 million (December 31, 2004: 1,360 million), due to positive unrealised value movements.
The average financial occupancy rate of the property portfolio improved to 96.0% (95.6%). The occupancy rate in the various countries was: the Netherlands 97.7% (98.0%), Spain 98.4% (98.1%), Belgium 90.1% (89.3%), France 94.6% (98.9%), and Portugal 100% (100%).
The commercial spot occupancy rate as per June 30, 2005 amounted to 96.5%. This is an improvement compared to the average financial occupancy rate and is due to an improvement of the occupancy rate in the factory outlet in Messancy. At present the occupancy rate of the factory outlet has risen to 70% (March 31, 2005: 65%). Above spo