Vastned 2015 half-year report
Robust portfolio and solid financing yield good first half year results
High lights HY1 2015:
- Direct result up to € 1.23 per share (HY1 2014: € 1.21 per share)
- Positive indirect result of € 0.16 per share (HY1 2014: € 0.73 negative per share)
- Premium city high street shop portfolio grows to € 1.1 billion
- Occupancy rate as at 30 June 2015: 96.8% (premium city high street shops: 99.0%)
- Like-for-like gross rent growth slightly negative: -1.6% (premium city high street shops: 0.3% positive)
- On average 6.9% higher rents on € 5.8 million in new leases and lease renewals
- Forecast for 2015 direct result increased to € 2.40 - € 2.50 per share
- Estimated dividend proposal for 2015 € 2.05 per share (2014: € 2.00 per share)
Vastned, the listed European retail property company focusing on ‘venues for premium shopping’, has further strengthened the quality of the portfolio and lowered its financing costs, leading to positive results and improved prospects for 2015. The forecast for the 2015 direct result has been adjusted upwards from € 2.10 - € 2.30 per share to € 2.40 - € 2.50 per share.
In the first half year, Vastned realised good results by the improved quality of the portfolio. Our portfolio consists now for two thirds of premium city high street shops. This type of property continues to show positive results on all major parameters, thereby stabilising the results of the total portfolio. These premium city high street shops are profi ting from the tentative upswing of consumer sentiment, especially in the second quarter. Consumer confidence improved and there were fewer bankruptcies among retailers than we expected. The division between popular and less popular retail destinations is and will remain conspicuous. We see e.g. retailers opening flagship stores in major European cities, that our occupancy rates in these locations remain high at 99%, and that we are concluding attractive leases there. The major rent increases on new leases concluded in the second quarter will fi rst become visible in the future like-for-like rent growth results. This is because part of these leases took effect only in June, or will not until next year, like the lease to AS Adventure in Ghent. The quality improvement of the portfolio yielded a positive indirect result for the fi rst time since the introduction of the high street strategy at the end of 2011. In addition to the quality improvement, we are also enjoying the fruits of the improved quality of our financing.
Due to these positive developments in combination with acquisitions of over € 134 million, our outlook is more positive than it was at the start of the year. We have raised our forecast for the 2015 direct result to between € 2.40 and € 2.50 per share, from € 2.10 - € 2.30 per share. We expect proposing a dividend for the 2015 financial year of € 2.05 per share.
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.