Q12015 trading update
Polarisation in the retaillandscape confirms strategic choice for the best locations
- Occupancy rate as at 31 March 2015: 96.4% (premium city high street shops: 98.8%)
- Leases concluded at on average 1.7% higher rents
- New attractive retailers signed, such as Ted Baker, Manilla Grace, AS Adventure and Costa Coffee
- Polarisation between popular and less popular locations clearly visible
- Acquisitions in premium cities Amsterdam and Antwerp totalling € 26.3 million
- Divestment of non-strategic portfolio in Angers for approx. € 20 million
- Confirmation of the guidance for the 2015 direct result of between € 2.10 and € 2.30 per share
Vastned, the listed European retail property company focusing on venues for premium shopping, sees a clear divide in the European retail landscape with a high occupancy rate and sharp rent increases in the best locations.
Over the past few months we have further improved the quality of the portfolio through acquisitions in premium cities Amsterdam and Antwerp and the divestment of the Angers portfolio. These transactions mark positive steps towards building a portfolio comprising 75% premium city high street shops. I am also proud that we have been able to interest strong international retailers like Ted Baker, Manilla Grace, AS Adventure and Costa Coffee for our properties. Solid tenants contribute to stable and predictable rental income.
Our results confirm our strategy focusing on premium city high street shops. However, we cannot ignore economic realities. Over the past few years, the economic climate and changing consumer behaviour have shrunk turnovers among retailers in smaller cities and villages. As a result, we have had to make concessions on rent levels in these locations, and we anticipate that this situation will not improve over the next year. Retailers consciously choose the best locations, where consumers like to go shopping.
Vastned is a listed (NYSE Euronext Amsterdam) European retail property company focusing on venues for premium shopping. Vastned invests in selected cities in Europe and Turkey, with a clear focus on the best retail property in the most popular shopping streets in the bigger cities (high streets). Vastned's tenants are strong and leading international and national retail brands. The property portfolio has a size of approximately € 1.5 billion.