Decrease investment result VastNed Offices/Industrial reflects difficult office market (NL)

VastNed Offices/Industrial today presented its annual results 2004. The highlights are:

  • direct investment result: €40.8 million (€48.6 million*);
  • indirect investment result: €37.7 million negative (€ 31.5 million negative*);
  • total investment result: €3.1 million (€17.1 million).

Total investment result
The total investment result for 2004 amounted to €3.1 million (€17.1 million). This decrease is due to a lower direct investment result as a result of extensive sales and to a reduced occupancy rate, as well as to a lower indirect investment result due to negative revaluations.

Direct investment result 2004
In 2004 VastNed Offices/Industrial realised a direct investment result of €40.8 million (€48.6 million*). Gross rental income decreased to €94.0 million (€108.2 million), largely as a result of sales realised in 2003 and 2004 and the decreased occupancy rate. Operating expenses fell to €11.9 million (€15.1 million). This is equal to 12.7% of gross rental income (14.0%). This decrease was mainly due to the receipt in 2004 post due date of receivables from doubtful debtors which had been anticipated at the end of 2003. General expenses fell to €5.6 million (€6.5 million*) mainly as a result of lower pension charges. Interest expenses fell to €22.8 million (€24.6 million), mainly due to repayments on the loan portfolio related to sales in 2003 and 2004 and a lower interest rate. This was offset by the fact that interest concerning the TriNovium project in Nieuwegein is no longer capitalised. Taxes on profit amounted to €0.8 million (€1.1 million) and the item minority interests attributable to the direct investment result decreased to €12.0 million (€12.3 million).

Indirect investment result 2004
The indirect investment result amounted to €37.7 million negative (€31.5 million negative*). The indirect investment result consisted of realised sales income above appraisal value of €4.6 million positive (€2.0 million positive), unrealised value movements in the property portfolio of €51.4 million negative (€36.6 million negative) and movements in the provision for deferred taxes of €0.3 million negative (€0.5 million negative). The abovementioned movements, corrected for the part due to minority shareholders of €9.4 million positive (€3.6 million positive) results in the indirect investment result mentioned earlier.

Results per share 2004
The direct investment result per share decreased to €2.13 (€2.59*), which is in accordance with the earlier prognosis. The indirect investment result per share came to €1.97 negative (€1.68 negative*). Including the other movements of €0.10 negative (€0.19 negative) the total investment result per share came to €0.06 (€0.72). Shareholders’ equity per share on December 31, 2004 amounted to €24.20 (December 31, 2003: €26.94).

The results per share were calculated based on the average number of ordinary shares in issue.

Property portfolio
On December 31, 2004 the value of the property portfolio was €1,166 million (December 31, 2003: €1,263 million).

Unrealised value movements
VastNed Offices/Industrial has independent appraisers value half of its Dutch property portfolio on June 30 and the other half on December 31. Both the Dutch and the Belgian property portfolios showed negative unrealised value movements. The value decrease in the Netherlands amounted to €25.1 million. In this figure an unrealised value movement of €4.1 million negative is taken into account relating to the TriNovium project in Nieuwegein.
The Belgian property portfolio in 2004 showed an unrealised value movement of €26.3 million negative.

In 2004 two properties being part of the Mechelen Campus complex were acquired. The acquisition price including purchasing costs amounted to €18.9 million.

In 2004 properties were sold for a total of €77.6 million. These can be specified as follows:

  • The Netherlands for €44

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