Vastned : Nine months' results 2008

Reinier van Gerrevink, CEO VastNed Retail: ‘In the second half of 2008, the credit crisis is beginning to impact the real economy. This development is most noticeable in Spain, where the developments in the housing market, in particular, have put pressure on consumer spending. In order to resist these developments, the board of management reiterates its present strategy of spreading the investment portfolio across various countries and focusing on the quality of the investment properties. The occupancy rate remained high in all countries, on average above 97%. All core countries showed like-for-like growth of gross rental income. In Spain, this increase was cancelled by bad debt write-offs. In the other countries, there was on balance like-for-like growth of net rental income. The indirect investment result was negative due to a second consecutive quarter of negative value movements in Spain and France. The value movements in the Netherlands and Belgium levelled of in the third quarter. Due tot the developments in the financing market, interest expenses rose in the past quarter.

This increase is expected to level off somewhat in the fourth quarter due to the current fall of the short-term interest rate. Furthermore, tax expenses in France are currently higher than anticipated due to the decision not to incorporate the currently taxable entities in the SIIC regime until next year, so that the exit tax payable at that time is expected be approximately € 1.5 – 2.0 million lower. Taking the foregoing into account, the board of management anticipates a direct investment result (excluding the costs of the offering process) for 2008 of between € 3.80 and € 3.85 per share (2007: € 3.85).

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Presentation VastNed Group 9 months results

source : VastNed