In the first quarter of 2003, VastNed Retail has realised a direct investment result which is 10.7% higher than in the first quarter of 2002. The direct investment result rose by 5.0% to Ã¢âÂ¬ 1.05. On March 31, 2003 shareholdersÃ¢â¬â¢ equity per share amounted to Ã¢âÂ¬ 49.71. VastNed Retail invests in individual retail properties, shopping centres and large-scale retail trade properties located on good and top locations in the Netherlands, Spain, Germany, Belgium, France, Italy and Portugal. As at March 31, 2003 invested capital amounted to Ã¢âÂ¬ 1,589 million (Ã¢âÂ¬ 1,557 million as at March 31, 2002).
Results first quarter 2003 (in brackets: first quarter 2002)
VastNed Retail N.V. has achieved a direct investment result of Ã¢âÂ¬ 16.4 million (Ã¢âÂ¬ 15.2 million). This represents an increase of 10.7% compared to the first quarter of 2002. This increase is due to increased gross rental income, which amounted to Ã¢âÂ¬ 31.9 million (Ã¢âÂ¬ 30.2 million), while operating expenses remained at the same level. The increase in gross rental income was caused inter alia by the expansions that took place in Belgium, Portugal and Spain. The indirect result for the first quarter was Ã¢âÂ¬ 2.1 million negative (Ã¢âÂ¬ 1.9 million negative). It consists of the costs of asset management and the movements in the entry deferred taxes. No revaluations have taken place, since VastNed Retail has its property portfolio appraised as per June 30 and December 31.
Results per share first quarter 2003
Per share, the direct investment rose to Ã¢âÂ¬ 1.05 (Ã¢âÂ¬ 1.00). The indirect investment result per share came to Ã¢âÂ¬ 0.14 negative (Ã¢âÂ¬ 0.12 negative). The total investment result per share came to Ã¢âÂ¬ 0.91 (Ã¢âÂ¬ 0.88). ShareholdersÃ¢â¬â¢ equity per share including dividend amounted to Ã¢âÂ¬ 49.71 (Ã¢âÂ¬ 50.87). The result per share is calculated over the average number of shares issued, which rose due to stock dividend paid out in 2002 to 15,645,964 (15,173,055). The 2003 dividend will be determined based on the current accounting regulations and the companyÃ¢â¬â¢s code of conduct; that is to say that the company will put the direct investment result fully or virtually fully at the disposal of the shareholders.
The property portfolio remained unchanged in the first quarter, provided that in CastellÃÂ³n de la Plana, a branch of Mediamarkt has been taken into operation. This concerns an investment of Ã¢âÂ¬ 9.6 million. This property was entered under Ã¢â¬Ëproperty not in operationÃ¢â¬â¢ on December 31, 2002. The financial vacancy in the property portfolio amounted to 3.3% (2.2%) in the first quarter of 2003.
Developments and outlook
On May 14, 2003 the acquisition of the shopping centre Madrid Sur was announced. This acquisition was effected in the form of a joint venture with Lar Grosvenor. The hypermarket located inside the shopping centre was acquired exclusively by VastNed Retail. The total acquisition price was Ã¢âÂ¬ 62.2 million. In order to improve the balance sheet ratios and to realise a healthy circulation of the property portfolio, the company will continue its sales programme this year. For 2003, at least an equal direct investment result per ordinary share is expected.
Source: VastNed Retail