Q32017 Trading update
Continued quality improvement of the Vastned portfolio
- Occupancy rates core city assets and total portfolio remain high at 99.6% and 97.6% respectively
- Clusters in Amsterdam, Antwerp and Paris expanded further with acquisitions of € 31.9 million in total
- Strategic progress made through divestments totalling € 116.6 million
- 9.9% rent increase realised on leases concluded for core city assets
- Estimated 2017 direct result reconfi rmed at € 2.10 - € 2.20 per share
- Estimated dividend proposal 2017 € 2.05 per share unchanged
The occupancy rate of our portfolio remained high in the past nine months and was 97.6% at the end of the third quarter. The core city assets were in fact virtually fully let at 99.6%. We will continue to focus on further expanding our core city assets portfolio and downsizing the mixed retail locations, especially in the Netherlands.
We acquired core city assets in the historical city centres of Amsterdam, Antwerp and Paris for € 31.9 million. We also sold property for € 116.6 million, including the complete Turkish portfolio and various assets throughout the Netherlands and Belgium. By doing so we will continue to improve the quality of the portfolio step by step.
In addition, renovation and realisation of apartments and studios above retail space is another important focus area. In the first nine months of this year we completed 8 apartments and we expect to be able to off er another 23 apartments for rent in different locations in Amsterdam and Utrecht over the next three quarters. By renovating and creating apartments above retail spaces we contribute to improving the liveability of city centres, respond to the growing demand for residential space in the city centres, and add value to the existing portfolio.
In view of the stable progress of the past three months, we maintain our forecast for the 2017 direct result of between € 2.10 and € 2.20 per share, and a dividend proposal for 2017 of € 2.05 per share.
Finally, we noted the new Government Agreement presented on 10 October 2017, which states that, as of 2020, direct investment in real estate by investment institutions is no longer permitted in connection with the abolition of the dividend tax. We are discussing this with different parties and following the developments carefully.
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 € 1.6 billion.