Trading update Q3 2017 Wereldhave
- Occupancy rate shopping centres
- Increases in occupancy in
Belgium and Finland, stable in the Netherlands, decrease in
- Footfall increases
throughout the portfolio
- Outlook reconfirmed: direct
result between € 3.40 - € 3.45 per share
In the Netherlands, the retail landscape is
continuing to improve. Although the number of bankruptcies was
slightly higher in the third quarter compared to the first half of
the year, leasing activity remains high. The refurbishment of
shopping centres continues to attract new tenants. We see that
where landlords improve their centre, retailers strengthen their
In Finland retail sales continued to increase by
nearly 2% year-on-year, supported by improving employment and
easing taxation. Demand is expected to further improve in key
retail locations, with food & beverage, well-being and leisure
showing the highest pick-up. Demand from international retailers is
reviving with first signings of new international retailers. The
market appears to have clearly bottomed out, but the recovery is
still in an early stage.
In Belgium, the market is more cautious and there
are no signs that this sentiment will change soon. There is a
clear divide between the strong, larger centres and smaller centres
in less urbanised areas. To attract the most important anchor
tenants in their shopping centers, landlords need to share the risk
with retailers by accepting sales based rents or fit-out
The number of new entrants to the market is
limited. There is a wide variety in the development of rent levels
in relation to the quality of the location. The market seems to be
fairly stable on average.
In France, the election of Macron sets a
moderately positive tone to the market. Particularly the fashion
retailers are facing lower turnover and profit margins. Larger
chains are rationalising their store base. Demand from retailers is
most active in the sports and leisure segment. Footfall is
increasing, but not yet reflected in rising sales. The rental
market demands a pro-active stance from landlords to keep rents at
Gross rental income for the first three quarters
of 2017 amounted to
€ 168.7m, which is 3% below the number for the same period in 2016.
The decrease is largely due to net disposals in the Netherlands
(disposal of a cinema in Tilburg and shopping centres in Geldrop,
Zoetermeer and Zwolle, and the acquisition of a Hudson's Bay and
Hema in Tilburg). The existing asset base in Belgium, Finland and
the Netherlands is performing well. France is expected to record a
high single digit decline in rental income in 2017.
During the third quarter, average occupancy
remained fairly stable at 95.3%, with occupancy increasing in
Belgium and Finland, remaining stable in the Netherlands and
decreasing in France. Leasing activity continued to be high with
more than 103 contracts signed during the third quarter (Q3
In Belgium, leasing is now picking up. A total of
29 new leases were signed and occupancy of the shopping centre
portfolio increased from 95.7% at June 30 to 96.1% at September 30,
2017. In Tournai, pre-letting of the extension of the shopping
centre is making good progress and is now at 88%, with brands as
Zara, Bershka, Okiadi, Medi-market, Jack & Jones, Esprit,
Rituals, Exki, Planet Parfum, Brice, Devred, Manier and Flying
Other important leases that were signed were
Histoire d'or, Celio and Dampshop in Genk. Since the introduction
of 1.5 hours free parking, visitor numbers have increased by 13%
and retail turnover by 10%. Negotiations with a fashion anchor are
making good progress. In Kortrijk, our increased leasing efforts
are starting to bear fruit. Contracts have been signed with
RiverWoods, Celio and Produstore in Ring Shopping. Occupancy of the
centre at September 30, 2017 improved to 91.0%. In the other
shopping centres, occupany remained high at nearly 99%.
Footfall in the Belgian shopping centres increased by 3.0% to 10.6m
visitors during the first three quarters of 2017 (excluding
Tournai, as it is under redevelopment). The market average footfall
increased by 2.8%.
In France, occupancy decreased during the third
quarter from 93.3% to 91.9%, mainly due to bankruptcies and
maturing leases that were not extended. Leasing activity was low,
but negotiations with dominant retailers are making good progress.
Footfall development underpins the quality of our shopping centres
as the place to be. It increased by 1.5% to 29.8m visitors in the
first three quarters of 2017, clearly outperforming the market,
which recorded an average decline of -1.2%. Pre-leasing rate of the
Verrerie redevelopment in our Saint-Sever shopping centre in Rouen
has now reached 52%.
In the Netherlands, occupancy decreased by 0.1%
from 96.2% at June 30 to 96.1% at the end of the third quarter of
2017. This decrease is primarily due to two bankruptcies of tenants
at the end of the quarter (Adam and McGregor). Several retailers
opened their latest retail formats in Wereldhave's shopping
centres. C&A launched their new format in Kronenburg, whilst
HEMA opened their first new large 'Worlds' formats in Maassluis and
Tilburg, the latter simultaneously with Hudson's Bay. Several
fashion retailers followed suit (Costes, Tumble 'n Dry, SissyBoy,
Scotch & Soda). The Decathlon in Tilburg will open in November.
This elevates Tilburg as a true shopping destination and encourages
us to continue with the remainder of the project. In Maassluis,
leasing was also strong, with new leases signed by Shoeby, Holland
& Barrett, Ter Stal and De Zuivelhoeve. Footfall in the Dutch
shopping centres increased by 0.7% to 56.1m visitors in the first
three quarters of 2017. The market average showed a decline of
Finland recorded an increase in occupany of 0.3%,
raising the number to 96.6%. The most important lease of the third
quarter was signed with Regus, who will open their flexible
workspace concept in the offices of the Itis shopping centres.
Retail sales are increasing and footfall in Itis went up by 2.3% to
12.8m visitors during the first three quarters.
There were no changes to the investment portfolio
during the third quarter. The asset rotation plan for 2017-2018
consists of asset disposals up to € 200m, of which € 74m has been
realised. The current LTV stands at 39.9%.
In the Netherlands, Wereldhave has a committed
development pipeline of four projects, Tilburg, Capelle aan de
IJssel, Maassluis and Presikhaaf in Arnhem. In Tilburg, the first
phase of the inner city redevelopment is nearly completed, with six
large store openings on September 21, 2017. The second phase of the
redevelopment consists of a connection between the Heuvelstraat and
the Emmapassage. Plans are being prepared, in close co-operation
with the municipality of Tilburg.
In Maassluis, the fifth phase of the redevelopment
of the centre was completed in September with the opening of a new
Hema, Aldi and a fresh street that was added to the centre. The
sixth and final phase consists of the addition of an Action store,
to be completed in the last quarter of 2017.
In Arnhem, the redevelopment of the Presikhaaf
shopping centre is making good progress. With three supermarkets,
Presikhaaf will be a convenience center with three food anchors,
COOP, Albert Heijn and Aldi. HEMA opened a new shop in the
heart of the centre. Their previous unit was demolished, to create
space for Albert Heijn and an Aldi, new to the centre. These shops
will open in Q1 2018 and the adjacent fresh street will be ready in
Q2. The final phase of the refurbishment, including the square, is
scheduled for completion in Q4 2018.
In Capelle aan den IJssel, the refurbishment is
well underway. Construction of the parking garage, a food court and
new passageways is scheduled for completion in Q4 2018.
In Belgium, the extension of the shopping centre
in Tournai is well on track. We expect to be nearly fully occupied
at the opening on April 12, 2018.
In Finland, demolition works of the former Anttila
shop will be completed in two months time, immediately followed by
the start of the construction works for the new Finnkino. The
building permit was granted in October and construction works have
been commissioned. Completion is scheduled for the end of 2018.
Nominal interest bearing debt was € 1,556m at
September 30, 2017, which together with a cash balance of € 24m
gives a net debt of
€ 1,532m. Undrawn borrowing capacity amounted to € 173m and the
Loan-to-value ratio (based on the 30 June 2017 portfolio
valuations) amounted to 39.9% (December 31, 2016: 39.0%). As at
September 30, 2017 the average cost of debt and ICR were 1.91% and
6.6 respectively and the EPRA NAV per share stood at € 51.62 (H1
2016: € 51.58).
Olivier Mourrain has been appointed Managing
Director of Wereldhave France as from October 2017. Frank
Adriaensen has been appointed Director Developments for the Group
as from the same date.
Wereldhave reconfirms its outlook for 2017 of a
direct result between
€ 3.40 and € 3.45 per share and a dividend of € 3.08 on a full year
basis. The interim dividend of € 0.77 in respect of the second
quarter will be payable on 27 October 2017, with the share trading
ex-dividend as from 24 October 2017.
Wereldhave invests in dominant convenience shopping centres in
larger provincial cities in northwest continental Europe. The area
surrounding our centres will include at least 100,000 inhabitants
within 10 minutes travel time from the centre.
We focus on shopping centres that strike a balance
between convenience and shopping experience. With easy
accessibility, products that cover all the daily shopping needs, a
successful mix of international and local retail products and
strong food anchor stores, our centres provide convenience shopping
to accommodate a busy urban lifestyle as well as an ageing
We aim for an experience that goes beyond
shopping, with restaurants, kids' playgrounds and high quality
amenities in order to attract families - and keep them with us for
READ MORE: www.wereldhave.com
Information for the
Richard W. Beentjes
T + 31 20 702 78 39
Ruud van Maanen
T + 31 20 702 78 43
2017-10-20_Press Release_Update Q3
announcement is distributed by Nasdaq Corporate Solutions on behalf
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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