Wereldhave N.V.: Results 2017
February 02 2018 - 1:30AM
For the year 2017, Wereldhave posted a net profit
of € 84.3m, against € 120.8m for 2016.
The direct result decreased by 0.6% to € 150.1m,
or € 3.43 per share, in line with the given outlook (FY 2016: €
3.45). The full year indirect result stood at € -65.8m (2016: €
-30.2m).
Gross rental income for 2017 amounted to € 223.4m,
a decrease of 3% compared to 2016, due to lower rental income in
France and disposals in the Netherlands. Overall occupancy of the
shopping centres at the end of 2017 was stable at 95.5% (2016:
95.5%).
In France, occupancy dropped during the year from
94.4% to 91.9% at the third quarter, but rebounded by 130 bps
during the last quarter to close the year at 93.2%. Several key
anchors were secured, albeit at lower rents. This led to a decrease
of rental income for the second half of the year. The full year
impact will continue in H1 2018. New leases added to the overall
quality of our tenant portfolio, not only commercially but also
financially. As announced earlier, our target clearly remains to
stabilise net rental income in France during 2018.
In the Netherlands, the rental market has
improved. Pressure on rents has decreased significantly compared to
2016, but the lagged effects of pressure in the fashion, household
goods and electronics segments is still visible in our markets,
particularly at restarts after financial restructuring.
In Finland, leasing was strong and the rental
market is stable, resulting in an improved occupancy. The retail
market was also stable in Belgium, where occupancy rose during the
year, but dropped during the last quarter. This was due to friction
vacancy in Nivelles.
Leasing activity was high during the year, with
444 leases, rotations and renewals signed. Like-for-like rental
growth was strong in Finland and solid in the Netherlands. In
Belgium, like-for-like rental income decreased by 1.1%. This can be
attributed to the strategic decision to implement free parking in
Genk, which resulted in a loss in parking income (-1.6%). In
France, like-for-like rental income decreased by 7.0% overall, due
to the decrease in occupancy, lower rents and more bad debts.
Overall, there was a negative revaluation of €
65.0m. In the Netherlands, the value of the portfolio decreased
slightly by 1.7% (€ -25.2m), which was caused by a negative
revaluation of three properties in less sought-after locations. The
value of the other properties in the Netherlands on average
remained stable. This shows the ongoing polarisation in retail,
where the other 13 of our 16 shopping centres clearly are
attractive to retailers and consumers. In Finland, a negative
revaluation of 1.5% (€ -8.9m) was caused by non-yielding
maintenance capex and fit-out contributions, partly related to the
complex inclusion of the Finnkino and its adjacent relocations. In
France, the value of the portfolio went down by 4.9% (€ -45.5m),
mainly caused by pressure on rents. In Belgium, the value of the
portfolio increased by 1.7% (€ 14.6m) due to yield compression from
recent market transactions (Woluwe and Charleroi) and an upward
revaluation of the Tournai development project. At December 31,
2017, the loan-to-value ratio amounted to 40.7% (December 31, 2016:
39.0%).
In respect of the year 2017, a final dividend will
be proposed of € 0.77 per share. This implies a full year 2017
dividend of € 3.08. The ex-dividend date is April 24, 2018. The
dividend will be payable as from April 30, 2018.
For the year 2018, we anticipate a slight decrease
of the direct result. The direct result per share for 2018 is
expected to be between € 3.30 and € 3.40 per share, assuming a
stable portfolio. The decrease is caused by our continued asset
rotation to improve the overall quality of the portfolio, the
full-year impact of stabilising rents in France and one-offs in
2017.
Wereldhave announces a one-off reset of the
dividend level from 2018 to ensure a sustainable dividend going
forward. We see that the rapidly changing retail landscape is
causing a structural higher need for capex. It requires continuous
efforts and investments to keep shopping centres up-to-date and
catering to the needs of visitors and retailers.
With a dividend level that is covered by free
cash-flow from operations, Wereldhave will be able to continue to
raise the overall quality of its portfolio through ongoing asset
rotation, focused refurbishments and extensions, high quality
tenants and an improved customer journey. This will improve our
risk profile. Over the past twelve months we have carefully
analysed our centres against the background of the ongoing trends
in the retail landscape. This has resulted in an identified capital
expenditure programme that will improve the customer journey of our
visitors and the overall quality of our centres, now and in the
future. The plan will be executed in an efficient way by taking
advantage of the benefits of scale of a well-defined overall
scheme.
To allow for these measures, the dividend pay-out range for 2018
and onwards will be lowered to 75% - 85% of the direct result
(currently 85%-95%). For the year 2018, a dividend will be proposed
of € 2.52 per share. The quarterly dividend will be set at € 0.63
per share.
Pressrelease FY results 2017
final
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of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Wereldhave N.V. via Globenewswire
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