VastNed Retail realises sharp increase of total investment result and strong improvement of property

VastNed Retail today presented its annual results 2004. The highlights are:

  • direct investment result: €62.0 million (€61.8 million*);
  • indirect investment result: €9.7 million (€21.1 million negative*);
  • total investment result: €71.7 million (€40.7 million).

Total investment result 2004
The total investment result for 2004 amounted to €71.7 million (€40.7 million). This sharp improvement of the total investment result is due to higher unrealised value movements.

Direct investment result 2004
In 2004 VastNed Retail realised a direct investment result of €62.0 million (€61.8 million*). Operating expenses amounted to €15.6 million (€19.7 million). This is equal to 13.1% of gross rental income (15.3%), a decrease which is largely due to the fact that the relatively high operating expenses of the German property portfolio in the second half of 2004 no longer had to be taken into account. General expenses fell to €6.8 million (€8.5 million*). This decrease was due inter alia to lower pension costs compared to 2003 and the falling away of external management costs relating to the German property portfolio in the second half of 2004. Interest expenses decreased to €25.9 million (€32.7 million), mainly as a result of the realisation of various property sales in 2003 and 2004, which allowed loans to be redeemed, and as a result of the interest compensation which the buyer has paid to VastNed Retail in connection with the sale of the German property portfolio. This concerns the interest which the buyer has repaid to VastNed Retail due to the later payment of the purchasing price than the date of the agreed economic transfer of July 1, 2004. Taxes on profit amounted to €3.8 million in 2004 (€1.7 million) and the item minority interests attributable to the direct investment result increased to €5.1 million (€4.6 million).

Indirect investment result 2004
The indirect investment result for 2004 amounted to €9.7 million positive (€21.1 million negative*). The indirect investment result consisted of realised sales results of €24.8 million negative (€0.7 million positive), unrealised value movements of the property portfolio of €40.6 million positive (€16.8 million negative) and movements in the provision for deferred taxes of
€5.6 million negative (€3.9 million negative). After allocating the part attributable to minority shareholders of €0.5 million negative (€1.1 million negative) the abovementioned indirect investment result is achieved.

Results per share 2004
The direct investment result per share amounted to €3.74 (€3.87*). The indirect investment result per share came to €0.58 positive (€1.32 negative*). Including the other movements of €0.04 negative (€0.30 negative) the total investment result per share came to €4.28 (€2.25). Shareholders’ equity per share amounted to €46.94 as at December 31, 2004 (December 31, 2003: €46.90). The results per share were calculated based on the average number of ordinary shares in issue.

Property portfolio
In 2004 the size of the property portfolio decreased, due to a number of sales in the context of the improvement of the risk/return profile of the property portfolio, of which the sale of the German property portfolio was the larger part, to €1,362 million as at December 31, 2004 (December 31, 2003: €1,612 million).

Unrealised value movements
VastNed Retail has independent appraisers value half of its property portfolio on June 30 and the other half on December 31. These appraisals have led to a positive unrealised value movement of €40.6 million (€16.8 million negative). In the Netherlands and Spain the appraisals showed increases well above inflation, while the other countries booked smaller value movements. The
unrealised value movements were as follows: the Netherlands €17.9 million positive (€6.4 million positive), Spain €17.4 million positive (€4.4 million positive), Belgium €2.0 million negative (€3.8 million positi

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