VastNed Retail realises increase of direct investment result (NL)

In the first half year of 2004, VastNed Retail has realised an increase of the direct investment result of 3.4% compared to the first half year of 2003. The direct investment result per share stayed at the same level at EUR 1.93. Shareholders’ equity per share amounted to EUR 43.66 as at June 30, 2004 (June 30, 2003: EUR 45.93). Invested capital amounted to EUR 1,556 million as at June 30, 2004 (June 30, 2003: EUR 1,643 million).

Direct investment result first half year 2004
In the first half year VastNed Retail has realised a direct investment result of EUR 31.6 million. This is an increase of 3.4% compared to the first half year of 2003. This increase was caused by increased gross rental income, which amounted to EUR 64.7 million (EUR 64.3 million), and by operating expenses stabilising at 14.4% of gross rental income (14.4%). General expenses fell by 9.5% to EUR 3.8 million (EUR 4.2 million) mainly as a result of lower pension charges compared to the first half year of 2003 and to the absence of the one-off costs related to the acquisition of Foram Management. Furthermore, interest charges of EUR 16.6 million for the first half year of 2003 decreased to EUR 15.4 million in the first half year of 2004. Taxes on profit in the first half year of 2004 amounted to EUR 1.9 million (EUR 1.3 million) and the item minority interests to be allocated to the direct investment result increased to EUR 2.6 million (EUR 2.3 million).

Indirect investment result first half year 2004
The indirect investment result (= share VastNed Retail) for the first half year amounted to EUR 14.9 million negative. This consists of realised sales in come above appraisal value of EUR 5.7 million positive (EUR 0.3 million negative), unrealised value movements of the property portfolio of EUR 15.6 million negative (EUR 3.2 million negative) and movement in the provision for deferred taxes of 5.0 million negative (EUR 2.0 million negative).

Results per share first half year 2004
The direct investment result per share stabilised at EUR 1.93, mainly resulting from the increased number of shares in issue due to a private placement in March 2004 (325,000 shares) and the issue of shares in the context of stock dividend (274,442 shares). The indirect investment result per share came to EUR 0.91 negative. The total investment result per share came to EUR 1.00 (EUR 1.28). Net asset value per share amounted to EUR 43.66 (June 30, 2003: EUR 45.93). The result per share was calculated over the average number of shares in issue.

Property portfolio
The book value of the property portfolio amounted to EUR 1,556 million as at June 30, 2004 (June 30, 2003: EUR 1,643 million).

External appraisals
As per June 30, 2004 approximately half of the total property portfolio was appraised by independent appraisers. These appraisals have led to the following revaluations: Netherlands EUR 5.5 million positive (EUR 2.9 million positive), Spain EUR 7.6 million positive (EUR 5.8 million positive), Belgium EUR 2.5 million positive (EUR 1.7 million positive) and France EUR 2.5 million positive (EUR 2.9 million positive). The properties in Italy and Portugal were not appraised. Subsequent to further discussions following the findings of a due diligence investigation the German property portfolio was written off with a further EUR 8.4 million, which takes the write-off of the German property portfolio to EUR 33.1 negative for the first half year. The share of the unrealised revaluation to be allocated to minorities amounts to EUR 0.6 million negative (EUR 0.4 million negative).

Sales
In the first half year of 2004 VastNed Retail sold a number of apartments in Amsterdam at a total price of EUR 15.3 million. In Belgium a number of smaller properties were sold at a price of EUR 0.8 million. Furthermore, VastNed Retail reduced its interest in Intervest Retail to 76.6% (December 31, 2003: 77.2%), which produced a book profit of EUR 0.1 million. In Spain, a shopping centre in Getafe was sold at EUR 0.7 million above the most recent appraisa

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