Annual Results 2022
Vastned reports strong operational and financial performance
- Initiation of strategic reorientation, considering all strategic options
Highlights
• Earnings of € 1.83 per share (€ 0.84 in 2021)
• Direct result 2022 of € 2.05 per share (€ 1.93 in 2021)
• Indirect result of € 0.22 negative per share (€ 1.09 negative in 2021)
• Collection rate further increased to 98.2% (95.7% in 2021)
• Occupancy rate up to 98.6% (97.9% year-end 2021)
• Like-for-like gross rental income increased by 7.5% year-on-year
• Value of property portfolio slightly decreased by 1.2% compared with year-end 2021
• Loan-to-value ratio of 43.4% as at 31 December 2022 (43.0% year-end 2021)
• Total dividend of € 1.85 per share proposed (€ 1.73 per share in 2021); 90.2% pay-out ratio
• Giving the rising interest rates, geo-political and economic uncertainties, Vastned provides no guidance on the direct
result for the full year 2023
• Initiation of strategic reorientation, considering all strategic options
Hoofddorp, 16 February 2023 – Vastned, the listed European retail property company, continues its strong operational and financial performance. Vastned reports earnings for 2022 of € 1.83 euro per share versus € 0.84 per share in 2021, and a direct result for 2022 of € 2.05 euro per share, an increase versus € 1.93 per share reported in 2021. The collection rate further improved to 98.2%, and the occupancy rate remains high at 98.6%. The value of the property portfolio slightly decreased by 1.2% during 2022, reflecting the quality of Vastned’s portfolio.
Vastned achieved strong results for the year 2022. Gross rental income increased from € 62.2 million to € 66.4 million, and the direct result for the year 2022 increased from € 33.1 million to € 35.2 million. Most of our performance indicators – financial and operational – improved in 2022. Our portfolio in all of our markets has shown its resilience in the past years where our business was impacted by Covid and economic and geopolitical headwinds. In 2022, high streets were busy again, and consumers are looking for inspiring and rewarding experiences. Equally, hospitality businesses have picked up, with restaurants and bars experiencing pre-pandemic interest from consumers.
High-quality retail locations also proved their value in 2022 as demand for well-located retail space grew once again. While an effective combination of online and offline channels is more important than ever, physical stores remain indispensable for delivering well-rounded customer experiences as well as customer-oriented marketing and branding. In 2022, we also further improved our tenant mix, for instance by continuing to reduce the exposure to fashion in our portfolio to 45%.
Our portfolio has proven to be robust and high street shopping is getting back on track. It is, however, important to remain vigilant: also Vastned is not immune to rising interest rates, geo-political and other economic uncertainties. Therefore, Vastned does not provide guidance on the direct result for the 2023 full year at this stage.
Considering the current context of rising interest rates, increasing yields on retail real estate properties and the expected abolishment of the FBI regime as of 2025, we will conduct a strategic reorientation, with the intention to unlock value for Vastned and all of its stakeholders. In this reorientation we will consider all strategic options for the company, including their feasibility.
Vastned is a European publicly listed property company (Euronext Amsterdam: VASTN) focusing on the best property in the popular shopping areas of selected European cities with a historic city centre where shopping, living, working and leisure meet. Vastned’s property clusters have a strong tenant mix of international and national retailers, food & beverage entrepreneurs, residential tenants, and office tenants. The property portfolio had a size of approximately € 1.4 billion as at 31 December 2022.
