Results first quarter 2010 Wereldhave N.V. Key items - Profit EUR 12.6 mln (Q1 2009: EUR -1.5 mln) - Direct result EUR 27.5 mln (Q1 2009: EUR 28.1 mln) - Stable valuation results - Extension and enlargement of long-term credit facility to EUR 270 mln - Purchase of shopping centre in Maassluis on July 1, 2010 for EUR 39.7 mln at 6.4% Profit / loss The result for the first quarter of 2010 amounts to EUR 12.6 mln or EUR 0.50 per share (2009: EUR -1.5 mln or EUR -0.16 per share). The increase is due to improved valuation results of the property portfolio. The total revaluation for the first quarter (including a positive revaluation of financial instruments of EUR 1.2 mln) amounts to EUR - 12.0 mln (Q1 2009 : EUR -31.8 mln). Direct result The direct result for the first quarter of 2010 amounts to EUR 27.5 mln, which is EUR 0.6 mln lower than in 2009. The gross rental income rose by EUR 0.5 mln compared to the same period of the previous year. An increase of rental income due to the improvement in occupancy in Washington and Paris of EUR 1.5 mln and the acquisition of four Dutch shopping centres as per March 16, 2010, was largely absorbed by EUR 0.6 mln negative exchange rate differences, slightly higher vacancy in the United States and in Spain and renewals against sharper conditions in Belgium and the United Kingdom. The service and operating costs rose by EUR 0.3 mln, mainly as a result of higher maintenance expenditure and higher letting costs. The net rental income therefore remained nearly stable, whilst a one-off tax advantage in 2009 of EUR 0.5 mln lead to an increase of tax charges in 2010. Higher interest charges due to the convertible bond that was issued in 2009 and the purchase that were made in 2010 had a negative effect of EUR 0.2 mln on the direct result. The average interest rate as at March 31, 2010 amounts to 2.7% (December 31, 2009: 3.3%). The direct result per share for the first quarter of 2010 amounts to EUR 1.20, which is EUR 0.06 lower than in 2009. An amount of EUR 0.02 per share of this decrease can be attributed to the increase in the number of shares in issue as a result of the optional dividend in shares that was paid during the second quarter of 2009 in respect of the financial year 2008. Indirect result The indirect result for the first quarter of 2010 amounts to EUR - 14.9 mln (2009: EUR - 29.6 mln). The increase of the result is due to improving valuation results. In nearly all countries the revaluation of the property portfolio was slightly positive, with the exception of The Netherlands and Spain. In The Netherlands, there was a negative revaluation EUR 12.6 mln in connection with the transaction costs and the transfer tax that was paid for the purchase of four shopping centres. In Spain the Planetocio shopping centre underwent a negative revaluation of EUR 1.8 mln. The average cap rate of the portfolio remained nearly unchanged during the first quarter at 6.6%. With the sale of four smaller properties and a plot of land in the United kingdom for a total amount of EUR 5.0 mln a result on disposals EUR - 0.1 mln was generated. Compared to the first quarter of 2009, tax charges rose because property values went down more in 2009, with lower deferred tax in 2009 as a result. Equity and Debt At March 31, 2010 shareholders' equity, before deduction of the proposed dividend, stood at EUR 1,718.8 mln. The solvency ratio (equity/ equity + interest bearing debt) amounts to 64%. The Loan to Value amount to 36%. In spite of purchases during the first quarter of 2010 to the amount of EUR 220 mln which were financed by debt, Wereldhave still ranks amongst the best capitalised European property companies. In connection with the payment of an optional dividend in respect of the financial year 2009, as at May 7, 2010 171,537 new shares were issued, bringing the number of shares in issue from 21,276,988 as at March 31, 2010 to 21,448,525 as at May 7, 2010. The new shares are entitled to dividend in respect of the full financial year 2010. The net asset value as at March 31, 2010, before deduction of dividend, amounts to EUR 75.19 (December 31, 2009: EUR 73.77). Wereldhave has reached agreement with a consortium of banks on the extension and enlargement of a long-term credit facility. The EUR 200 mln Syndicated Term Facility with a maturity of mid June 2010 was extended with three years and two optional years and raised to the amount of EUR 270 mln as per May 7, 2010. Wereldhave has decided to end its second listing at NYSE Euronext in Paris in 2010. The decision was based on the low transaction volume in Paris and the fact that a second French listing is no longer obligatory for the French SIIC tax status. In addition, the discontinuation of the second listing will save costs. As from today, press releases of Wereldhave will only be published in English and Dutch. The Wereldhave share will remain listed at the NYSE Euronext stock exchange of Amsterdam, with an average daily trading volume of 130,000 ordinary shares. Property portfolio During the first quarter of 2010 Wereldhave has added four mid-sized shopping centres to its Dutch investment portfolio, that were bought for EUR 220 mln from Unibail-Rodamco. The transfer of the shopping centres was completed on March 16, 2010. In the second quarter of 2010, agreement was reached with Unibail-Rodamco on the purchase of the Koningshoek shopping centre in Maassluis in the Netherlands for EUR 39.7 mln including transaction costs, which represents a net initial yield of 6.4%. Koningshoek in Maassluis is a shopping centre of approx. 16,000 m2 of shops (circa 70 shops) and 4,000 m2 storage, immediately next to the city hall in the centre of Maassluis. It offers more than 1,000 public parking spaces and has a dominant position on daily household purchases. Important tenants are Hema, Hoogvliet, Albert Heijn en Supercoop. The Albert Heijn store of circa 2,500 m2 is not included in the transaction. Wereldhave plans to renovate and substantially expand the shopping centre. Completion of the transaction will take place on July 1, 2010. In Paris, Wereldhave has succeeded in letting four floors (3,300 m2) of the Carre Vert office building for nine years to a first class tenant as of July 1, 2010, which brings the occupancy rate of this property to 70%. The occupancy rate of the total portfolio for the first quarter of 2010 amounts to 90.3%. Broken down per sector, the occupancy rate amounts to: offices 83.0%, retail/leisure 97.3%, logistics 99.3% and residential property 85.6%. As at March 31, 2010 the value of the development portfolio stood at EUR 96.6 mln; The value of the investment portfolio amounted to EUR 2,663.2 mln. Development portfolio In Belgium, in June 2010, the construction is expected to start construction of the expansion of the Nivelles shopping centre with 12,000 m2 and of covered parking facilities. In the United States, the first two office buildings in the Eilan project in San Antonio will be completed early in the third quarter of 2010, together with the completion of infrastructural works and parking facilities. The delay was caused by the severe weather conditions during the winter of 2009/2010. The construction of the rest of the first phase of this project consisting of some 500 homes, a hotel and a variety of commercial facilities, was commenced in the fourth quarter of 2009 and is scheduled for delivery starting in 2011. Organisation The local managing director of Wereldhave in Belgium, Paul Rasschaert, passed away on April 15, 2010, after a short illness. Wereldhave has not only lost an excellent director, but also a well respected colleague. Prospects Wereldhave does not yet forecast the result for the year 2010. The result largely depends on the development of the occupancy rate of the offices portfolio and the development of interest charges and of exchange rates. Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/7612L_-2010-5-12.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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