VastNed Retail presents its 2005 first quarter results today. The total investment result for the first quarter of 2005 amounted to EUR 33.4 million, compared to EUR 9.0 million negative in the first quarter of 2004.
The improvement was due to high unrealised value increases in the property portfolio in the first quarter of 2005. In the first quarter 2004 a significant write-down of the German property portfolio was included. In the context of the introduction of IFRS, as from the 2005 financial year VastNed Retail's the entire property portfolio will be appraised at the end of each quarter. Until last year half of the property portfolio was appraised as per June 30 and the remaining part as per December 31. This change has contributed to the positive indirect investment result in the first quarter of 2005.
Composition of investment result Q1 2005
In the first quarter of 2005 gross rental income amounted to EUR 26.7 million (EUR 32.6 million*). This decrease was mainly caused by the fact that the German property porfolio was sold as per July 1, 2004. Net rental income came to EUR 23.8 million (EUR 27.9 million*).
In the first quarter of 2005 (unrealised) value movements amounted to EUR 19.9 million (EUR 24.8 million negative*). The total value movements can be attributed to: the Netherlands EUR 6.6 million, Spain EUR 10.5 million, Belgium EUR 2.0 million negative, France EUR 4.7 million and Portugal EUR 0.1 million.
The sales realised (EUR 0.3 million in total) on balance took place at book value, so that the net proft on disposal of investment properties was nil.
Net financing expenses in the first quarter of 2005 fell to EUR 5.1 million (EUR 7.8 million). This decrease was particularly due to the reduced debt position due to substantial sales in 2004.
General expenses amounted to EUR 1.6 million (EUR 1.7 million).
Taxes on profit in the first quarter of 2005 amounted to EUR 2.2 million (EUR 1.8 million*). Of this amount, EUR 0.4 million (EUR 0.9 million) concerned current tax income expenses and EUR 1.8 million (EUR 0.9 million*) concerned deferred income tax expenses.
The investment result attributable to minority interests in subsidiaries of VastNed Retail in the first quarter of 2005 amounted to EUR 1.4 million (EUR 1.3 million*).
The direct investment result in the first quarter of 2005 amounted to EUR 15.2 million (EUR 16.1 million*). The indirect investment result in the first quarter of 2005 amounted to EUR 18.2 million (EUR 25.1 million negative*).
The direct investment result per share in the first quarter of 2005 amounted to EUR 0.91 (EUR 0.99); the indirect investment result per share amounted to EUR 1.09 (EUR 1.55 negative*) and the other movements were nil (EUR 0.01).
The size of the property portfolio in the first quarter of 2005 increased to EUR 1,384 million (December 31, 2004: EUR 1,360 million) as a result of positive unrealised value movements.
The average financial occupancy rate of the property portfolio in the first quarter of 2005 improved to 95.7% (95.4%). The occupancy rates in the respective countries were: the Netherlands 97.9% (97.8%), Spain 98.2% (97.9%), Belgium 88.6% (88.4%) and France 94.5% (99.1%). The relatively low, compared with the first quarter 2004, occupancy rate is largely due to the premises on Boulevard Saint Germain. A new tenant has been found for these premises. The property portfolios in Italy and Portugal had an occupancy rate of 100%, just as in the first quarter of 2004.
The commercial spot occupancy rate as per March 31, 2005 was 96.4%. This is an improvement compared to the average financial occupancy rate and was due to an improvement of the occupancy rate in the factory outlet in Messancy. The occupancy rate has risen to currently 65% (December 31, 2004: 41%). The abovementioned spot occupancy rate in the respective countries was: Netherlands 97.5%, Spain 98.1%, Belgium 93.3% and France 94.4%.
Shareholders' equity (previously group equity) expressed as a percentage of the investment proper