KFN takes measures against empty standing

The results of KFN in the first six months of 2003 reflect the sentiment in the real estate market. In the first half year KFN’s portfolio was also hindered by this market situation. As a result the occupation rate dropped from 96% to 91%. The total return on investment over the first half year particularly decreased because of this reason to 1.9%, to 3.5% over the same period in the last year.

KFN made a total result of € 14.2 mln. (2002: € 24.5 mln.), consisting of a direct return on investment of € 27.5 mln. (2002: € 25.3 mln) and indirect return on investment of - € 13.3 mln. (2002: - € 0.8 mln.). The direct return on investment increased with € 2.2 mln. compared to the first half year in 2002. This was largely caused by the increased rentals due to taking into operation of new objects. The indirect return on investment over the first half year of 2003 was € 13.3 mln. below the result of the same period in 2002, largely due to a revaluation of - € 12.0 mln.

The total value of the real estate portfolio as of 30 June 2003 is € 1,246.6 mln. KFN made no acquisitions in the first six months. Four objects have been taken into operation according to plan.

KFN does not expect to be able to maintain the positive direct result over the next six months due to the development of the empty standing level and the corresponding costs.

The newly formed statutory management board, consisting of Paul Vismans (CEO) and Frank Hendriksen (COO), has formed its ambitions for the second half of 2003. In short term, next to the regular letting activities, KFN will start active account management as part of the new client focus concept. The client focus concept, with which KFN stands out in the market, will be brought to the market with a large campaign in November 2003.

Source: KFN

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