Results 2002 Profit â⬠19.2 mln higher, 8.3% increase in profit per share, Forecast 2003: further increase in profit per share.
Net profit increased by 19.8% to EUR 116.3 mln (2001: EUR 97.1 mln). Profit per share rose by 8.3% from EUR 5.45 to EUR 5.90. This growth can be attributed to EUR 2.3 mln autonomous increases in rents and the acquisition of the Itäkeskus shopping centre. Additions to, and disposals from the investment portfolio had a net positive effect of EUR 22.3 mln on rental income. Interest costs rose by EUR 3.2 mln as a result of the expansion of the property portfolio. Lower average conversion rates for the pound sterling and the U.S. dollar depressed net profit by EUR 1.6 mln.
Shareholders´ equity and net asset value per share
The indirect investment result for 2002 amounted to EUR ââ¬"46.4 mln arising from property disposals (EUR 28.7 mln), currency movements (EUR ââ¬"35.3 mln), property revaluation (EUR ââ¬"24.7 mln) and other movements (EUR ââ¬"15.1 mln). Net asset value per share after deduction of the proposed cash dividend at December 31, 2002 amounted to EUR 62.59 (2001: EUR 63.45). In January 2002, 1,935,000 new ordinary shares were issued at the net asset value of December 31, 2001, bringing the total number of shares in issue to 19,691,735 and raising equity by EUR 122.8 mln. Shareholdersôequity, net of the proposed dividend, stood at EUR 1,235.9 mln at the end of 2002 (2001: EUR 1,130.0 mln), equivalent to 59.5% of total liabilities including commitments arising from development projects (2001: 58.5%).
Property portfolio
The purchase of the Itäkeskus shopping centre in Helsinki and the sale of the Parinor shopping centre in Paris were the major changes to the porftolio during 2002. In the Netherlands, Wereldhave sold its interest in the Park Boswijk residential property at Doorn. In Belgium, Wereldhave Belgium sold the net present value of the cash flow a 27-year lease of the Monnaie House in Brussels. A number of smaller properties were sold in the United Kingdom. In the Central Business Districts of Washington, United States a plot of land for the development of a 14,000 mò office building has been acquired. In the Netherlands Wereldhave purchased an industrial building of 20,000 mò at the A16 near Breda. During 2002, six new properties were transferred to the investment portfolio. These changes and currency movements resulted in a decreased proportion of offices in the portfolio and an increased proportion of retail properties. The geographical distribution of the portfolio changed significantly (see table on page 5).
The investment portfolio underwent a downward revaluation of 1.1% in local currencies. The average occupancy rate in 2002 amounted to 96.1% (2001: 97.1%). At the end of 2002 the investment portfolio was valued at EUR 1,830.5 mln and the development portfolio at EUR 124.9 mln. Over the last two years Wereldhave has scaled back the size of the development portfolio. Four properties, with an investment value of EUR 73 mln, are expected to be transferred to the investment portfolio in 2003.
Dividend
A cash dividend of EUR 4.40 per share will be proposed to the Annual General Meeting of Shareholders, a 7.3% increase compared to the previous year.
Prospects
The remaining duration of the rental contracts and the relatively low average age of the portfolio make that Wereldhave is well positioned. Assuming average currency rates for the Dollar at the 2002 year-end level, Wereldhave forecasts a further increase in profit per share for the year 2003.
Source: Wereldhave N.V.
