2017 annual results
Vastned presents strong results due to successful strategy
Key points 2017
- Occupancy rate of total portfolio up to 98.1% (core city assets: 99.6%)
- Like-for-like gross rental growth of 1.3% for the full portfolio and 3.1% for core city assets
- Value increase of the portfolio of € 71.3 million; value increase of core city assets of € 77.6 million
(excluding acquisitions and divestments)
- Core city assets expanded by € 37.6 million
- Divestments in 2017 totalled: € 122.8 million, including complete Turkish portfolio
- Part of the revenue of the divestment of the Turkish portfolio was used for a share buy- back of 849.846 shares for € 30.1 million
- UNIQLO and John Fluevog choose Vastned locations in Amsterdam for their first Dutch stores
- Loan-to-value ratio at 38.8% within the desired range of 35%-45%
- 2017 direct result higher than expected at € 2.22 per share
- Vastned intends to make a takeover bid of € 57.50 per share in cash for all Vastned Retail Belgium NV shares it does not yet hold
- In January 2018, Vastned sold rue Saint-Jean 44-45 in Nancy for € 34.2 million
- Expected 2018 direct result: € 2.10 - € 2.20 per share
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Our strategy has clearly borne fruit in 2017. The occupancy rate of our portfolio rose further and was 98.1% at year-end 2017 and the core city assets were almost fully let at 99.6%. The other two key indicators were also positive, with 1.3% like-for-like gross rental income growth and a 4.8% value increase of the total portfolio.
In order to keep improving the quality of the portfolio and the results, we sold non- strategic assets totalling approx. € 123 million in 2017. The biggest divestment was the Istanbul portfolio. In addition, a number of properties in the Netherlands, France and Belgium were sold. At the same time we acquired core city assets in the historical inner cities of Amsterdam, Antwerp, Paris and Utrecht for approx. € 38 million, and the share of core city assets rose to 79% of the total portfolio.
Due to the favourable investment climate, we are positive on the realisation of the last phase of the transition, being the divestment of the remaining non-strategic assets in the Netherlands, as announced early last year. Furthermore, we will continue to make wellconsidered acquisitions if they add value, as you have come to expect from us.
In addition, in January we announced our intention to make a takeover bid of € 57.50 in cash for all shares in Vastned Retail Belgium that we do not yet hold. This ongoing integration will help to create an even simpler and more effective organisation.
As we sold more than we bought in 2017, the rental income in 2018 will initially be lower. We believe, however, that we can issue the same guidance for the direct result as at the start of 2017, i.e. between € 2.10 and € 2.20 per share.
Vastned is a listed (Euronext Amsterdam) European retail property company focusing on venues for premium shopping. Vastned invests in selected cities in Europe with a clear focus on the best retail property in the most popular shopping streets in the bigger cities. Vastned's tenants are strong and leading international and national retail brands. The property portfolio has a size of approximately € 1.6 billion.