2013 Annual results
Results underline strategic choice
- Vastned realises strategic objectives through active acquisition and divestment policy
- Direct investment result 2013 of € 2.85 per share at top of expected range of € 2.75- € 2.85 per share
- Indirect investment result 2013 € 7.53 negative per share mainly due to write-off in anticipation of sale of Spanish shopping centres/galleries
- Expected dividend 2013 € 2.55 per share (2012: € 2.55 per share)
- Occupancy rate year-end 2013 94.0%, fractionally lower than year-end (95,0%) due to decreased occupancy rates of Spanish shopping centres. Occupancy rate premium city high street shops 99.2%
- Like-for-like gross rent growth of total portfolio 1.1% negative. Like-for-like gross rent growth in premium cities 4.2% positive
- Expected direct investment result 2014 between € 2.10 and € 2.30 per share due to net divestments in 2013 and early 2014
Taco de Groot, Vastned CEO: ‘In 2013, Vastned’s team has made big steps in the execution of its strategy. With an active and at the same time pragmatic acquisition and divestment policy we have realised one of the key objectives, namely to raise the share of high street shops in the portfolio to 65%. During the past year, this ratio went up from 55% to 69%. In 2013, we sold non-core investment properties totalling € 269 million, including a number of big shopping centres in Dunkirk, Thoiry and Houten. The sales proceeds were used to strengthen the balance sheet and to expand our high street shop portfolio. We bought high street shops in the historic city centres of Bordeaux, Utrecht, Amsterdam, Maastricht and Bruges. In early 2014 we announced the sale of seven Spanish shopping centres/galleries and a retail park for € 160 million. This sale is right in line with our strategy: it sharply raises the quality of our portfolio and signiﬁ cantly improves our risk proﬁle. We have included the write-down due to the intended sale of the Spanish shopping centres/galleries in the 2013 indirect result. This is one of the main reasons for the lower indirect investment result compared to 2012. The direct investment result for 2013 was € 2.85 per share. This is encouraging in view of the market conditions, and at the top of the range of the guidance we pronounced in November.
At year-end, the loan-to-value was 44.6%; with the divestment of the Spanish shoppig centres/galleries it will improve to 39.7%. Furthermore, we extended our spreading across ﬁ nanciers by concluding a € 40 million loan with the Belgian Belﬁus in the second half of the year.
After achieving our main objectives in 2013, we published a sharpened strategy in early 2014. In order to grow, we are going to focus speciﬁ cally on high street shops in a selected number of premium cities. Premium cities are cities where consumers prefer to shop and where national and international retailers like to have a presence. The results show that these locations perform better and produce stabler results in the long term. To achieve this, we will continue our acquisition and divestment policy step by step and pragmatically. An essential part of our strategy is that acquisitions are made when we anticipate either rent growth or value growth opportunities in the middle to long term.
The progress we have made and the quality of the current portfolio provide sufﬁ cient basis for pronouncing an expected range for the 2014 direct investment result of between € 2.10 and € 2.30.’
Vastned is een Europees beursgenoteerd winkelvastgoedfonds met focus op 'venues for premium shopping'. Vastned belegt in geselecteerde steden in Europa en Istanbul, met een duidelijke focus op het beste winkelvastgoed in de populairste winkelstraten in grotere steden (“high streets”). Huurders van Vastned zijn sterke en toonaangevende internationale en nationale retailmerken. De vastgoedportefeuille heeft een omvang van ongeveer € 1,5 miljard.