Trading update 9M 2013
Vastned strengthens occupancy rate High Street Shops through attractive leasing activity
Vastned, the listed European retail property invest- ment fund focusing on high street shops, has realised an increase of the occupancy rate of its high street shops to 96.4% through attractive leasing activity. The occupan- cy rate of the total portfolio remained virtually stable. The expected 2013 direct investment result of € 2.75 - € 2.85 per share is lower than in 2012, mainly as a result of the significant steps made with divesting non-strategic assets.
Key points first nine months 2013
– Occupancy rate high street shops up to 96.4% at 30 September 2013 (30 June 2013: 95.5%)
– Occupancy rate total portfolio virtually stable at 93.5% (30 June 2013: 93.8%)
– 8.9% rent increase in new high street shop leases in the first nine months
– Acquisitions of high street shops in Bordeaux, Brugge, Amsterdam and Utrecht and divestment of shopping centres Thoiry in Val Thoiry and Het Rond in Houten
improved the high street profile
– Further spreading of credit providers through new € 40 million five-year loan from Belfius in Belgium
– Expected 2013 direct investment result between € 2.75 and € 2.85 per share
– Dividend proposal 2013 confirmed at € 2.55 per share (FY 2012: € 2.55)
The economic climate continues to impact retailers in Europe as consumer spending remains under pressure, especially in the Netherlands and Spain. This means that knowing what retailers are concerned with and what they feel is important is ever more vital, so that we can anticipate on these concerns. We are seeing an increasingly marked split between the best retail locations and secondary shopping streets and locations. Retailers consci- ously opt for popular shopping streets. This trend is reflected in on average 9% rent increases on high street leases. Also, the occupancy rate for these premium venues increased from 95.5% to 96.4% in the third quarter, in particular due to a rise of the occupancy rate of the Dutch high street shops from 96.3% to 97.0%. We consider these developments as a confirmation of our strategic choice for high streets.