Wereldhave´s first quarter results were slightly better than expected, as both rental income and interest expenses were ahead of our forecasts. The occupany rate dropped from 93.2% in the fourth quarter of 2003 to 92% in the first quarter of 2004.
However, autonomous rental income growth was higher than forecast. As a result EPS amounted to € 1.44 versus our estimate of € 1.40. The NAV came in at € 63.77, which was only slightly higher than our estimate of € 63.72. As expected the company has benefited from a weaker Euro (against both USD and GBP) in the first
quarter of 2004 resulting in a positive exchange rate difference of € 30.3 mln.
Wereldhave does not give a full year year outlook. Nevertheless, ABN Amro Real Estate
believes the company will make sure EPS will rise again in 2004, as management´s bonus payments are linked to EPS growth. As such, we strongly believe that Wereldhave will acquire a real estate portfolio in the coming months, in particular because of the recent issuance of 1,090,000 shares on the third of March.
Source: ABN Amro Real Estate
