Q1 2023 Trading Update
Continued strong operational performance
- Vastned delivered a strong operational performance in Q1 2023
- 25 new leases and lease renewals signed in Q1 2023 for € 5.4 million in annual rent ( € 0.2m positive rental change)
- Occupancy rate of portfolio slightly decreased to 97.9% as at 31 March 2023 (31 December 2022: 98.6%)
- Outlook full year 2023: Expected full-year direct result per share in the range of € 1.95 to € 2.05
- Strategic reorientation process is ongoing
Hoofddorp, 11 May 2023 – Vastned continues to deliver strong operational performance in the first three months of 2023, continuing the trend of last year. Vastned expects a continuation of these strong results for the remainder of the year. At the same time, financial expenses will increase this year, as a consequence of the exposure of Vastned to the short-term interest rate. Vastned therefore expects to be on track for a full-year direct result per share in line with last year in the range of € 1.95 to € 2.05, barring unforeseen circumstances.
‘Vastned again delivered a strong operational performance, showing the quality of our portfolio, our business and the ongoing efforts of our people to find the right tenants for our properties. The occupancy rate is high at 97.9%, albeit slightly lower than at year-end 2022. The past quarter has seen a significant level of 25 new leases and lease renewals against higher rents.
In February this year we announced to conduct a strategic reorientation in the context of rising interest rates, increasing yields on retail real estate properties and the expected abolishment of the FBI regime as of 2025. This reorientation is currently ongoing.
Vastned has a significant part of the loan portfolio interest exposure hedged, but does have exposure to the increasing short-term interest rates. This implies higher financial expenses over the year. Vastned considers that the continued strong operational performance will balance the impact of the higher interest rates on our financial expenses this year. Vastned now expects a full-year direct result per share of € 1.95 to € 2.05.’
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 € 1,420 million as at 31 December 2022.