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Wereldhave NV (0NMR)

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Friday 24 February, 2006

Wereldhave NV

Final Results

Wereldhave NV
24 February 2006


Profit increases by EUR 33.3 mln to EUR 201.2 mln
Profit per share 9.24 (2004: EUR 7.81)
Direct result EUR 116.5 mln (2004: EUR 116.9 mln)
Direct result per share EUR 5.30 (2004: EUR 5.39)


The direct result for 2005 amounted to EUR 116.5 mln, EUR 0.4 lower than in
2004. Gross rental income rose by EUR 5.3 mln to EUR 169.0 mln. Due to the
increase of service and operational charges and property expenses of EUR 1.0
mln, net rental income rose by EUR 4.3 mln. The increase is the result of the
purchases made last year and of autonomous increases in rents, less the effect
of sales. Of the increase in service and operational charges EUR 0.6 mln is
caused by autonomous increases in costs and EUR 0.4 mln is the result of
property purchases and sales.


General costs increased by EUR 1.8 mln to EUR 13.1 mln. Compared to 2004,
financial charges rose by EUR 2.8 mln. This is primarily the result of the
increased size of the portfolio and higher average interest rates. Taxes on
result rose by EUR 1.1 mln, mainly in the United Kingdom.


As a result of a higher average number of shares outstanding the direct result
per share, at EUR 5.30, was 1.7% lower than 2004's level at EUR 5.39. The
occupancy rate for the portfolio as a whole amounted to 92.2% over 2005 (2004:
91.1%).


Deferred tax liabilities increased by EUR 15.8 mln as a result of higher
property valuations. The highest property revaluations were seen in the United
States and Finland. The indirect result for 2005 amounts to EUR 84.7 mln, which
is EUR 33.7 mln higher than in 2004.


As a result, the profit over 2005 was EUR 33.3 mln higher than over 2004. The
value of the portfolio has increased by EUR 102.0 mln (2004: EUR 60.6 mln). The
results on disposals amounted to EUR 7.8 mln (2004: - EUR 3.1 mln).


On February 8, 2006, Wereldhave launched an issue of convertible bonds up to EUR
200 mln with a coupon of 2.5%. The maturity of the bonds is 5 years. The bonds
were offered to international institutional investors. The bonds can be
converted to ordinary shares Wereldhave at a conversion price of EUR 97. The
shares to be issued upon conversion of the Bonds will represent approximately
9.9% of Wereldhave's currently issued share capital. This convertible loan
offers Wereldhave funding at an attractive rate, which will be used for
refinancing and investments.


At the end of 2005 shareholders' equity, before the distribution of the proposed
dividend, amounted to EUR 1,648.3 mln (2004: EUR 1,517.4 mln), equivalent to
67.5% (2004: 70.6%) of total assets. The net asset value per share before
distribution of profits amounted to EUR 74.21 at December 31, 2005 (2004: EUR
68.08).


The property portfolio was revalued upwards by 4.8% with positive revaluations
in all countries. During the fourth quarter of 2005, Wereldhave sold an office
building in the United States and an industrial building in Alphen aan den Rijn
(The Netherlands). The total proceeds of these two sales were below book value.
At December 31, 2005, the value of the development portfolio amounted to EUR
34.0 mln; the balance sheet valuation of the investment portfolio stood at EUR
2,288.8 mln.

It will be proposed to the General Meeting of Shareholders to distribute a cash
dividend for 2005 of EUR 4.55 per share (2004: EUR 4.50). A dividend of EUR 4.55
implies a pay-out ratio of 85.8%. Of the dividend EUR 3.10 per share will be
paid out, subject to dividend withholding tax, to meet the distribution
requirements under Dutch tax law. The remainder (EUR 1.45) will be charged
against the reinvestment reserve and as such will not be subject to withholding
tax.


Wereldhave is actively seeking to expand, preferably through the purchase of
existing properties, which, given the present capital structure, give an
immediate boost to the direct result. Additions to the portfolio will be sought
mainly in major property markets, such as France, Spain, the United Kingdom and
the United States. In the United States, emphasis will be put on new investments
in New York, Washington and the West Coast (San Diego and surroundings). In The
Netherlands and Belgium, the expansion of shopping centres in the portfolio will
be undertaken. For the somewhat longer term, the emphasis will be placed on new
developments in all countries in which Wereldhave currently operates.


An office building in France and another in the United Kingdom will be sold in
2006, allowing Wereldhave to cash in the steep price appreciation on these
properties. These disposals are examples of our policy of continuous portfolio
renewal. Wereldhave aims for an expansion of the portfolio in 2006 through
selective and responsible purchases.




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