Trading Update 9M 2019
Result 2019 remains solid; occupancy rate of portfolio up sharply from 93.1% to 97.2% as at 30 September 2019
Highlights
- Lease concluded with JD Sports for Rue de Rivoli 118-120 in Paris
- Rent decrease on new leases, mainly due to new lease with JD at competitive rent level, but without capex obligations for Vastned
- Occupancy rate of portfolio up sharply from 93.1% to 97.2% as at 30 September 2019
- Clusters in Amsterdam expanded by € 13.2 million; non-strategic properties in the Netherlands and Belgium sold for € 8.3 million
- Estimated 2019 direct result at lower end of guidance range of € 2.00 - € 2.10 per share
- Expected dividend proposal for 2019 € 2.05 per share in total
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Our portfolio showed solid results in the first nine months of 2019 in spite of challenging market conditions. Due to the high quality or our portfolio and the efforts of our employees we have succeeded in attracting successful tenants such as Skechers and JD Sports for our retail properties in Paris, and we have also renewed leases with H&M, Zara and Armani in Belgium. We are clearly seeing the strength of the good locations of our retail properties in lettings and despite lower rent levels for some properties we are positive about the future; we expect to continue to be able to generate stable and predictable results for our shareholders.
In line with our strategy, our focus in the remaining months of this year will be on maintaining the high occupancy rate and on further optimising the portfolio. We maintain our estimate that the 2019 direct result will be at the lower end of the previously announced guidance range of between € 2.00 and € 2.10 per share.
Vastned is a listed European retail property company (Euronext Amsterdam: VASTN) 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 as at 30 September 2019.
