Wereldhave presents Q1 2008 results

Wereldhave has presented its first quarter results 2008. The highlights are:

Profit per share €1.73
Direct result per share €1.23
Net asset value per share €84.65
Occupancy rate 94%


Profit The profit for the first quarter of 2008 amounts to €38.2 million or €1.73 per share (first quarter 2007: €54.4 mln. or €2.53 per share). There was a positive property revaluation in all countries, with the exception of the United Kingdom. A lower upwards property revaluation and lower results on disposals are the main reasons for the decrease in profit.

Direct result

The direct result for the first quarter of 2008 amounts to €27.4 million, which is €2.8 million or 9.4% lower than the first quarter of 2007. The decrease of the direct result is caused by lower exchange rates for sterling and the US-dollar and by lower other financial gains and losses, since the direct result for the first quarter of 2007 included a incidental gain of €2.2 million for the surrender of a lease. Exchange rate differences had a total effect of €– 0.9 million on the direct result. The increase in interest costs of €0.5 million is primarily due to the increased size of the property portfolio.

The occupancy rate for the first quarter amounts to 94%, which equals the average for the full year 2007. Broken down by sector, occupancy rates were: offices 89.4%, retail 98.8%, industrial 96.2% and residential 92.0%.

Indirect result

The indirect result for the first quarter of 2008 amounts to €10.8 million (first quarter 2007: €24.2 mln.).The decrease is mainly due to a lower positive property revaluation. The revaluation for the first quarter was €12.6 million, compared to €26.5 million for the first quarter of 2007. The weighted average cap rate of the portfolio remained stable at 5.9%. The more high-risk properties have been sold during previous years. During the first quarter of 2008 only one small industrial property was sold and the surplus on disposals decreased by €2.4 million. No major sales are planned for 2008. Other gains and losses increased by €0.6 million as the result of the settlement of a fire insurance claim from 2001. Exchange rate differences had an (unrealised) effect of €– 2.1 million on the indirect result.

Equity

Shareholders’ equity at March 31, 2008 stood at €1,883.8 million (December 31, 2007: €1,972.6 mln. before distribution of profit). This represents 68% of the balance sheet total (December 31, 2007: 70%). The balance sheet total includes a short term liability in relation to the dividend payment for the year 2007 of €4.65 per share or €96.6 million. After the payment of dividend, the solvency ratio stood at 70%.

Exchange rate differences had a total negative effect of €– 68.5 million on the value of the property portfolio, causing a reduction of shareholders’ equity of €30.2 million. The net asset value per share at March 31, 2008 amounts to €84.65 (December 31, 2007: €84.37 after distribution of profit). No convertible bonds opted for conversion. At March 31, 2008 the total number of ordinary shares in issue amounts to 20,781,735.

Property portfolio

During the first quarter of 2008, the property portfolio did not change, with the exception of the sale of an industrial property of 2,100 m² in Winchester, United Kingdom for GBP 2.2 million gross, slightly above book value.

Prospects

Wereldhave is not yet forecasting the result for the year 2008.

source: Wereldhave