Trading update Q1 2018
High occupancy rate of core city assets confirms strategic success
- Vastned realised 4.7% rent increase on leases concluded for core city assets in Q1 2018
- Occupancy rate core city assets slightly up to 99.7% as at 31 March 2018
- Acquisition of Vredenburg 1 in Utrecht completed for € 4.1 million
- Non-strategic properties in the Netherlands and France sold for € 55.0 in total
- Vastned issues formal takeover bid of € 57.50 per share on the free float of Vastned Retail Belgium
- Forecast for direct result 2018 of € 2.10 - € 2.20 per share confirmed
2018 has started well for us. The portfolio is showing good and stable results and we are cautiously optimistic for the rest of the year, in spite of the continuing challenging situation in the retail market and the limited supply of attractive acquisition options. We concluded 22 leases for € 5.4 million in total in the first quarter. We realised an average 4.7% rent increase on new leases for core city assets, but rents for our mixed retail locations remained under pressure, and decreased by on average 11.1%.
We expanded our core city assets portfolio by making acquisitions in the historic city centre of Utrecht, and we lowered the risk profile of the portfolio by selling non-strategic properties in the Netherlands and France. We will continue executing our strategy step by step and we confirm are previously announced forecast for the 2018 direct result of between € 2.10 and € 2.20 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 € 1.5 billion as at 31 March 2018.