Q1 2017 Trading update
Vastned realises 15% rent increase on leases concluded for core city assets
- Vastned realises 15% rent increase on leases it concluded for core city assets in Q1 2017
- Occupancy rate of core city assets up to 99.4% as at 31 March 2017
- Vastned updates its strategy to focus on growth in five selected cities in Europe
- Divestment of Turkish portfolio completed
- Start of share buy-back programme for a maximum of € 50 million
- Vastned expands cluster in Le Marais with two acquisitions for € 19.8 million in total
- Guidance for direct result 2017 of € 2.10 - € 2.20 per share confirmed
2017 started out with a number of announcements, such as our exit from Turkey, the strategy update and our share buy-back programme. We also concluded 27 leases for over € 2 million in total in the first quarter. In spite of the still challenging and polarising retail market in the Netherlands, we succeeded in concluding lease agreemements for eleven Dutch mixed retail locations, including retail units in Leeuwarden and Spijkenisse. We also attracted new tenants, among whom cosmetics brand Clarins, which will open its first French retailconcept store outside Paris in one of our core city assets in Bordeaux.
Next to the divestment of the Turkish portfolio, we made steps to further enhance the quality of the portfolio by selling two mixed retail locations in Hengelo and Enschede. In the second quarter we expanded our cluster in Le Marais in Paris with two acquisitions for € 19.8 million in total, enlarging the Le Marais cluster to six core city assets with a total value of over € 57 million. For the remainder of this year will continue to pursue our strategy step-by-step and pragmatically, and we confirm our guidance of a direct result in 2017 of 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 € 1.5 billion.