Vastned Q32016 Trading update
Vastned increases share of premium city high street shops to 73%
- SHARE OF PREMIUM CITY HIGH STREET SHOPS ROSE TO 73%
- OCCUPANCY RATE OF PREMIUM CITY HIGH STREET SHOPS REMAINED HIGH AT 99.1%
- OCCUPANCY RATE OF TOTAL PORTFOLIO INCREASED SLIGHTLY TO 96.9%
- STRATEGIC DIVESTMENTS IN FIRST NINE MONTHS: € 81 MILLION
- ACQUISITIONS OF PREMIUM CITY HIGH STREET SHOPS IN FIRST NINE MONTHS:
- THE REALISED RENT INCREASE OF 19.5% ON CONCLUDED LEASES FOR PREMIUM CITY HIGH STREET SHOPS MINIMALISED THE RENT DECLINE FOR THE TOTAL PORTFOLIO TO 0.6%
- FORECAST FOR 2016 DIRECT RESULT AT UPPER LIMIT OF THE PREVIOUSLY ANNOUNCED RANGE OF €2.30 - €2.40 PER SHARE
Click on the pdf on the right for the full press release.
Vastned, the listed European retail property company focusing on ‘venues for premium shopping’, has made important steps in the execution of its premium city high street shop strategy with acquisitions in Paris, Amsterdam and Utrecht and strategic divestments in a large number of cities in the Netherlands. Furthermore, Vastned anticipates that the 2016 direct result will be at the upper limit of the previously announced forecast of €2.30 - €2.40 per share.
In the first nine months, we concluded 88 leases for € 9 million in total. These leases included Repeat Cashmere, Zadig & Voltaire, Adidas Originals, Cruyff Classics and Birkenstock. Due to the average rent increase of 19.5% we realised on concluded leases for premium city high street shops the decline for the total portfolio was almost completely offset. The leases for premium city high street shops in France strongly contributed with an average rent increase of no less than 39%.
Next to leasings, we remain focused on rotation in the portfolio. Over the past few years, the majority of the divestments of non-strategic assets took place in Spain, Belgium and France. In France, where we have our second largest sub-portfolio, the share of premium city high street shops is now 90%, and this is clearly reflected in the resilient results that this portfolio is realising.
The liquidity in the investment market in the Netherlands for property in secondary locations was lagging compared to other countries. However, we see positive developments, making divestments possible. This year we have sofar sold over €81 million in non-strategic assets, of which €69 million in the Netherlands. For example we sold the partial ownerships of shopping centre Overvecht in Utrecht and shopping centre Boven ’t IJ in Amsterdam-Noord, as well as a large number of smaller shops in places like Gouda, Harlingen and Enschede. In combination with the acquisitions of about €42 million on popular high streets in Paris, Amsterdam and Utrecht, this once again show that we have made major progress in the ongoing rotation in the portfolio.
We have also made several changes to the organisation. Earlier this year, we announced the introduction of dedicated management for Vastned Retail Belgium. This has now been implemented and we already reap the benefits of this decision. The Belgian team as part of the dedicated management has moved to a new location in Antwerp and several new colleagues have been hired. The final preparations for the relocation of our office in the Netherlands are under way, and we will be operational in our office on De Boelelaan 7 in Amsterdam as of 14 November.
Vastned is a listed (Euronext Amsterdam) European retail property company focusing on venues for premium shopping. Vastned invests in selected cities in Europe and Istanbul, 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.