KFN’s 2001 returns rise by 6%

Over 2001 KFN successfully continued its rising performance trend of previous years. Last year the direct investment result rose by 6% to € 52 million. At 99%, capacity utilisation remained unchanged over the whole year.

KFN, however, expects the Dutch office market rather to mark time during 2002. Less favourable macro-economic prospects are expected to further subdue demand for office space. This may also put pressure on price levels for new rental transactions although the average rental prices of existing rental contracts will further increase this year due to indexing. KFN assumes that the direct investment result in 2002 will be at the same level as the previous year.

The growth of the real estate portfolio in 2001 was at a slightly lower level than in 2000. The main reasons for this were the proportionately large number of divestments and a slightly more careful acquisition policy. Almost all industrial premises were sold in 2001 as well as some older office buildings in the towns of Alkmaar, Maastricht, Breda, Hoofddorp and Utrecht. In contrast to these sales, there were a number of substantial acquisitions in the towns of Zoetermeer, Eindhoven and Den Bosch which involved a total lettable area of some 43,000 m². At the end of 2001 KFN had 450,000 m² of office space in operations and 148,000 m² of office space in preparation.

The value of the real estate portfolio increased by € 93 mln. This increase was the result of investments of € 166 million, divestments of € 83 million, and a revaluation of € 10 million. Total invested capital at the end-2001 was € 1.087 million. Office properties in preparation at the end of 2001 are expected to absorb € 255 million of investments of which € 169 million in the year 2002. To finance these investment obligations, a new credit facility was generated in 2001 with a total value of € 133 million. Partially because the company development focus is now solely on offices, and most industrial properties have now been sold, divestments will remain limited this year.

KFN’s key strategy for 2002 will be aimed at an active client approach. This will not only involve building-related services like the supply of energy, but also new additional facilities such as ICT services.

(source: KFN)

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