23 February 2007
•78% higher profit due to property revaluations and result on disposals
•1.3% higher occupancy rate
•15% increase of net asset value
The profit for 2006 amounts to € 357.5 mln, an increase compared to 2005 of €
156.3 million, or 77.7%. This increase was primarily due to the higher property
revaluations and the result of property disposals. Profit consists of a direct
result and indirect result.
The 2006 direct result amounted to € 113.3 million, which is € 3.2 million lower
than in 2005. The direct result is the result that the company has realised from
lettings after deduction of costs. In 2006, Wereldhave sold more properties than
it acquired. The decrease of rental income due to these net disposals was set
off to a significant extent by an increase in rents and a 1.3% fall in the
vacancy rate, which jointly amounted to € 2.5 million. On balance, net rental
income fell by € 0.6 million. Due to higher interest rates, interest costs
increased by € 1.3 million. General costs rose by € 1.0 million compared to
2005. This increase relates to the costs of IFRS implementation and the one-off
release of provisions in 2005 due to IFRS.
The indirect result for 2006 amounted to € 244.2 million, an increase of € 159.5
million compared to 2005. The indirect result is the result achieved primarily
through realised and unrealised value increases of the portfolio. Property
disposals resulted in a profit of € 39.9 million in 2006 (2005: € 7.4 million).
The on-going fall of initial yields resulted in a considerable positive
revaluation of the property portfolio as at December 31, 2006. Revaluations
totalled € 266.1 million (2005: € 99.9 million). The average yield on the
portfolio as used for valuation fell by 1% in 2006. The higher valuations of
property and the adjusted deferred tax liability in the United Kingdom resulted
in a € 63.3 million increase in deferred tax liabilities (2005: € 23.6 million).
Other financial income and expenses, consisting primarily of positive movements
in pension commitments, amounted to € 2.6 million.
The profit for 2006 of € 357.5 million, the dividend distribution for 2005 of
€ 94.6 million and other movements in equity resulted in an increase in equity
of € 241.9 million. At year-end 2006, equity including minority interests
amounted to € 1,890.2 million before deduction of the proposed dividend (2005: €
1,648.3 million). This corresponds to 71.3% of the balance sheet total (2005:
67.5%). The total number of ordinary shares in issue at year-end 2006 amounted
In 2006 the investment portfolio was revalued upwards by € 270.1 million, or
12%, due to positive revaluations in all countries. The average occupancy rate
rose to 93.5% in 2006 (2005: 92.2%).
In January, 2007, Wereldhave sold an office building in Pittsburgh in the United
States for USD 12 million and an office building in Philadelphia for USD 76
million. The net result on disposals amounted to USD 0.7 million. On January 24,
2007 Wereldhave bought a plot of land in Frisco, near Dallas, in the United
States, for the construction of approximately 600 residential properties. The
purchase price amounted to USD 7.4 million. Construction is not expected to
start before 2008.
A dividend distribution for 2006 of € 4.60 in cash will be proposed to the
General Meeting of Shareholders (2005: € 4.55). The proposed dividend of € 4.60
per share will be paid out fully in cash in compliance with the fiscal
distribution requirement (2005: € 3.10 in cash to meet the fiscal distribution
requirement, and € 1.45 charged to the reinvestment reserve). The increase in
the distribution requirement is related to the fiscal distribution requirements
for dividends received from France in connection with the disposal of the office
property in Clichy.
In 2007, Wereldhave will continue its policy of portfolio renewal. Portfolio
renewal focuses on portfolio growth through investment in new or recently built
property, but equally by disposing of property that no longer meets users'
demands. In January 2007, Wereldhave sold two office buildings in the United
States. Growth of the portfolio will be looked for in all markets and sectors in
which Wereldhave is currently active. Additionally, Wereldhave will study the
entry of the new markets of the west coast of the United States (San Diego
region) and Turkey.
Now the economy is strengthening, Wereldhave expects an improvement of the
occupancy rate of the portfolio. Wereldhave will expand its development
portfolio in 2007. On December 31, 2006, the pipeline contained five projects:
two shopping centre expansions in Belgium (in Tournai and Nivelles), a
conference centre in Finland (Espoo), a shopping centre expansion in Leiderdorp
in the Netherlands, and in the United States (San Antonio, Texas) a mixed
development of 1,400 residential properties, offices, a hotel and central
facilities. In January 2007 a project yet to be started was added, consisting of
some 600 residential properties in Frisco, near Dallas, Texas. These
developments, representing a total investment value of € 420 million, will start
to contribute to the direct result as from 2008 and following years.
For further information: www.wereldhave.com
This information is provided by RNS
The company news service from the London Stock Exchange