HALF-YEAR REPORT 2021
Vastned shows relatively good performance despite lockdowns; focus on strategy execution, taking advantage of new retail trends
Highlights H1 2021
- Direct result of € 0.88 per share (€ 0.85 in H1 2020)
- Indirect result of € 1.38 negative per share (€ 2.09 negative in H1 2020)
- Total earnings per share of € 0.50 negative (€ 1.24 negative in H1 2020)
- Collection rate of approximately 90%
- Occupancy rate up compared with end of Q1 2021 to 96.2%
- Like-for-like gross rental income decreased by 3.2%
- Value of property portfolio decreased by 1.9% compared with 31 December 2020
- General expenses decreased by € 0.4 million in H1 2021
- Loan-to-value ratio of 44.2% as at 30 June 2021
- Good liquidity position; Vastned remains well within bank covenants
- Focus on strategy execution: improving our retail tenant mix by adding tenants that benefit from new retail trends, including retailers combining physical and digital stores like Coolblue and My Jewellery
- Interim dividend of € 0.53 euro per share; 60% pay-out ratio in line with dividend policy
- Outlook: Barring unforeseen circumstances and assuming no reintroduction of national lockdowns in Vastned’s key geographies in the second half of 2021, the expected range of direct results is between € 1.80 and € 1.90 per share
Amsterdam, 29 July 2021 – Vastned, the listed European retail property company, has reported a relatively good performance despite the continued impact of COVID-19-related lockdowns and restriction measures in all of its portfolio countries. Vastned reports a direct result for H1 2021 of € 0.88 euro per share, which is higher than the € 0.85 per share reported in H1 2020. Despite a still challenging retail environment, the collection rate remains strong at approximately 90%, and the occupancy rate remains relatively stable at 96.2%. The value of the property portfolio decreased 1.9% during H1 2021, including the full effect of the higher Dutch transfer tax as per 1 January 2021. Our focus continues to be on executing our strategy, improving our tenant mix with an increased focus on digital retailers and strong urban brands, and creating more mixed-use spaces by adding residential units and small offices.
A direct result per share of € 0.88, a collection rate of approximately 90% and occupancy at 96.2% are all indicators of relatively good performance, especially in the context of continued subdued conditions due to the lockdowns across all our geographies in the first half of 2021. The value of our total property portfolio fell by only 1.9% over this period. This limited decrease clearly indicates the quality and resilience of both our portfolio and our tenant’s businesses. While certain renewals have put pressure on the average rent levels, the overall impact on rental income from our portfolio has been minimal. As part of our new strategy announced earlier this year, we are engaging more actively with existing and new tenants, while looking at opportunities to both protect and expand future gross rental income. This will include an increased focus on tenants that benefit from new retail trends, facilitating the successful digital retailers that seek a greater physical presence and leveraging the strong phygital shift in retail markets. Vastned’s unique portfolio of high street retail properties also leaves us well positioned to benefit from increased demand from suburban retailers for high street locations, as well as from supermarkets for smaller stores in historic inner-city areas. At the same time, and in line with our strategy, Vastned will continue to look at creating more mixed-use assets by adding residential units and small offices to properties. These various developments will serve to future-proof our tenant mix and our properties. Over time, optimising our portfolio with a focused letting strategy, redevelopment, selective investments and targeted divestments should unlock the intrinsic value of Vastned’s real estate portfolio.
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 at the end of the first half of 2021.