Nieuwe Steen Investments N.V. has good expectations for 2005 (NL)

Nieuwe Steen Investments N.V. (NSI) has achieved excellent results over the year 2004. The direct investment result per average outstanding share went up to € 1,36 and the indirect investment result was € 0.25 per average outstanding share. The total investment result amounts to € 1.61 per share. Despite the current market conditions and in view of the knowledge and the possible developments of the portfolio, NSI expects the direct investment result over 2005 to be at least unchanged at € 1.36 per share.

Financial results
The direct investment result over 2004 increased by € 1.2 million to € 45.3 million, developing fully in accordance with expectations. The indirect investment result over 2004 amounted to € 8.1 million (2003: € 8.1 million). In addition to the realised sales result (€ 7,0 million) NSI received an extraordinary income of € 1.1 million from the successful recovery of a tax loss. The full investment result amounted to € 53.4 million (2003: € 52.2 million).

The net operating income in 2004 amounted to € 87.1 million (2003: € 84.6 million). The exploitation costs amounted to € 10.5% of the rental income (2003: 10.5%). The costs for the fund management have been fully charged to the result.

Developments in 2004
The results were accomplished in a difficult rental market, in particular for offices. The maximum letting efforts, somewhat helped by the low interest rates, allowed NSI to present an improvement of the results.

In 2004 NSI was faced on the one hand side with a surplus of office space for rent, whilst on the other hand the high interest in real estate investments hindered a substantial growth of the portfolio with new objects of good quality and at acceptable price levels. Nevertheless the target to increase the portfolio to at least one billion euro was realised in April 2004!

The interest for stable, dividend generating investments can also be found back in the interest for the shares in NSI that achieved a total return of 23% over 2004. Uncertainty at the stock market and the low interest rates for saving accounts and/or bonds triggered interest of investors for investments in real estate. The NSI share with its high dividend yield has certainly benefited from this.

Other important developments for NSI in 2004 were the changes in the Board, the presentation of its corporate governance policy and the change in the dividend policy. As from 2004 each quarter the full direct investment result is paid out. This change was well appreciated by both private and institutional shareholders.

New financial reporting rules: IFRS
In the 2003 Annual Report NSI provided an extensive account of the way the financial reporting principles, that are required by IFRS and that have to be applied for the first time in 2005, match its vision on annual reporting. The choices that were made, as well as all other aspects of annual reporting, have been (and will be) evaluated regularly.

During the first half of 2005 NSI will indicate if adjustment of the choices that it made will occur, in order to have its annual accounting over 2005 be as good as possible in line with on the one hand side the information requirements of its investors and on the other hand with the distinct regulations of the IFRS. In any case, the starting point will remain that the result is based on the exploitation result and the realized sales results.

Developments in the portfolio
Market circumstances caused the annual growth of the portfolio to be less strong than in previous years. Nonetheless NSI was able to extend its portfolio with objects of good quality and return. Overall the portfolio grew by € 37.0 million to a size of € 1,034.9 million at the end of 2004. At 31 December 2004 the portfolio consisted of 1,509 residential and 162 other objects, spread over offices (49%), retail (31%), residential (11%), industrial (5%) and large-scale retail (4%) objects.

In 2004 NSI invested in real estate for an amount of € 56.6 million. Earlier in 2004 the ne

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