PRESS RELEASE RESULTS FIRST HALF 2018
JULY 24, 2018
increases in all countries
· Occupancy rate
of shopping centres increased to 96.1% (YE 2017:
· Operations in
France stabilised under challenging market conditions
like-for-like rental growth at -1.3% (index 1.3%).
· Increase in
footfall of 0.6% from 73.5m to 73.9m shopping centre
increase 2.2% above market average
Over the first quarter, occupancy remained flat.
In the second quarter leasing gained momentum, with a strong
increase in occupancy across the board, bringing the overall number
from 95.5% at year-end 2017 to 96.1% at the end of June 2018.
In the Netherlands, occupancy stood at 96.8% at
the end of the second quarter (YE 2017: 96.5%). Leasing activity
remained high, with 146 leases signed during the first half of the
year. Important new leases that were signed during the second
quarter are with S. Oliver and Comma at Nieuwegein, Action at
Kronenburg in Arnhem, Levi's and Pandora for Tilburg and package
deals with Casa, terStal and The Stone. Rent levels are generally
at or above ERV. Like-for-like rental growth amounted to 1.0% which
is 0.3% below the indexation.
In spite of ongoing development works in Capelle
aan den IJssel and Presikhaaf in Arnhem, footfall in Wereldhave's
centres outperformed the market average. Compared to 2017, footfall
decreased by 1.5%, whereas the national footfall index saw a 1.9%
decline. People may come less often, but stay longer. The average
dwelltime in our Dutch centres during the first half of 2018
increased by 9.6%.
In Belgium, occupancy of the shopping centres
increased strongly during the first half of the year, from 94.9% at
year-end 2017 to 96.7% at June 30, 2018. The occupancy of the
Belgian offices remained stable and stood at 90.6% at June 30,
During the second quarter, transactions for large
units were signed with anchor tenants as Decathlon, NewYorker,
Action and Medi-Market. Particularly in Kortrijk, good leasing
progress was made. In one year's time, occupancy in Kortrijk rose
from 88% to 95%. Footfall in Kortrijk went up by 4.1% in 2017 and
5.3% in 2018. In Genk occupancy also improved, as leases were
signed with JDSports, Action and Only. In Nivelles, Decathlon
became an important new anchor to the centre, bringing occupancy
back to the 100% level.
The announcement by Carrefour to close its
hypermarkets in Liège and Genk and the subsequent strikes impacted
footfall, particularly in Liège. Carrefour has meanwhile reached
agreement with the trade unions, and has requested a partial
release of the lease agreements in Liège and Genk. They seek to
reduce floorspace and change their profile from hypermarket to
supermarket. Negotiations with Carrefour are ongoing and Wereldhave
is exploring alternatives for the space that will become available.
In Liège, the new lay-out will be reviewed in combination with the
expansion plans that have been put on hold. Due to the large
success of the new Bastions shopping centre in Tournai that opened
on April 12, 2018, footfall of the Belgian shopping centre
portfolio still went up by 6.5%.
Like-for-like rental growth of the Belgian
shopping centre portfolio was -3.4%, with indexation at 1.5%. The
like-for-like rental income decreased by the introduction of free
parking in Shopping1, temporary vacancy in Nivelles (now leased to
Decathlon) and the departure of a tenant at Stadsplein, Genk.
In France, operational performance is becoming
more robust, as occupancy increased for the third quarter in a row.
During the second quarter, the increase amounted to 0.2%, bringing
the occupancy level to 93.6% at June 30, 2018 (YE 2017: 93.2%).
Footfall in the French shopping centres increased by 3.4% while the
CNCC footfall index declined by 1.2%. This is mainly driven by the
success of Primark opening in Docks Vauban and to new anchor
tenants, in particular Action, in Côté Seine. Sales dropped by
3.6%, which is below the market average decrease of -1.6%.
Important leases that were signed during the first
half of 2018 are with Marionnaud and Bershka for Docks Vauban,
Guess in Rivetoile, Etam in Docks76 and a package deal with Muy
Mucho (home interiors). Letting of the Verrerie project in Rouen is
at 86% (KFC, Vapiano, Miss Cookies, BChef, Micromania). We are
steadily increasing the multi-purpose use of our centres. In
Rivetoile, a lease was signed with a dentist centre and in Côté
Seine with La Poste.
The like-for-like rental growth in France came out
at -3.9%, with indexation at 1.8%. Leases that were signed during
the third quarter of 2017 to secure anchor tenants impacted net
rental income. NRI for the first half of 2018 amounted to € 20.4m,
which is 6.1% below the H1 2017 level. We anticipate an annual
decrease of up to 5% of NRI in France for the full year 2018.
In Finland, occupancy at June 30, 2018 stood at
96.4%, against 96.0% at the end of the first quarter. Leasing
activity was high during the second quarter, with 21 leases signed,
nearly all well above ERV. After the strong like-for-like rental
growth of 7.6% in H1 2017, like-for-like rental growth for the
first half of 2018 was -0.6%, with the indexation at 0.4%. Jysk was
signed as a new anchor and all Food and Beverage units next to new
cinema are now pre-let, amongst others with Vapiano, Taco Bell and
To improve the customer journey, a kid's play area
was installed in front of the shopping centre at the Talinn square
and new wayfinding was implemented throughout the centre. In spite
of the development works for the cinema and the food and beverage
units, footfall decreased by only 0.5% over the past twelve
During the first quarter of 2018, Wereldhave sold
89 residential units above the Koperwiek shopping centre in Capelle
aan den IJssel in the Netherlands. The transaction was completed
for € 12.8m, equal to the book-value. There were no disposals
during the second quarter. On July 4, 2018, Wereldhave Belgium sold
an office building at the Olieslagerslaan in Vilvoorde for € 2.4m,
equal to book-value.
At June 30, 2018, Wereldhave's committed
development portfolio consists of four projects, two in the
Netherlands, one in France and one in Finland. The total value of
the committed development pipeline is now at € 109m, which will be
funded with the anticipated disposals in line with our management
agenda (disposals up to € 200m for 2017-2019).
In the Netherlands, the redevelopment of the
Koningshoek shopping centre in Maassluis was completed in the first
quarter of 2018. The centre is nearly fully let and footfall
increased by 14%. Retailers report that the regional function of
the centre is growing strongly and that average sales tickets are
rising. Wereldhave is proud to announce that the centre was
nominated for the annual Dutch shopping centre council (NRW)
redevelopment prize, amongst 4 other contenders.
The committed development pipeline in the
Netherlands now consists of two projects. In Capelle aan den
IJssel, the development of a parking garage, a new passageway and a
food court to the centre is making good progress. The first shops
opened their doors in May 2018 and the project is to be completed
The second committed project is the redevelopment
of the Presikhaaf shopping centre in Arnhem. The project is now
more than halfway. The fresh-food square was completed on May 25,
2018 and is fully let. The square is located at the front of the
centre next to the new Albert Heijn and the third supermarket of
the centre, Aldi. Leasing in Presikhaaf is making good progress
with a healthy tenant appetite. Recent signings to the centre are
The Stone (fashion) and Van Haren (shoes). The project is scheduled
for completion in 2019.
In Tilburg, the new Frederikstraat is nearly fully
let. Footfall at the Pieter Vreedeplein and the Emmapassage records
double digit growth since the first phase of the project was
competed. Plans are being drafted with the municipality for the
second phase of the inner-city redevelopment scheme, to connect the
new Frederikstraat to the Emmapassage and the Primark. This part of
the project is not yet committed and is to be partly funded with
local asset rotations.
In Belgium the 15,000 m² expansion of the Tournai
shopping centre was completed on April 12, 2018. Wereldhave Belgium
takes pride in the nomination of Les Bastions for the shopping
award 2018 by BLSC, the Belgian Luxembourg Council of Retail and
Shopping Centres. Les Bastions is very successful, with average
footfall recording a 50% increase. The centre is fully let with
large and renowned retailers, such as Zara, Bershka, JBC,
Bel&Bo, Etam Lingerie and Armand Thiéry and an attractive food
& beverage offer. There are currently no major committed
development projects in Belgium.
In France, the new Primark in Docks Vauban, which
opened its doors on February 21, 2018, pushed footfall of the
centre up by 30% during the first half of the year. The committed
development portfolio in France now consists of the Verrerie
project in Saint Sever. This € 26m investment aims to add a food
hall to the shopping centre, directly in front of the Kinepolis
cinema, with Vapiano and KFC. Preleasing of the project is at
86% and the total project will be completed in 2019. We are
currently actively working on securing a new large anchor for Saint
In Finland, the Finnkino project is well on track
and within budget. Opening is scheduled at November 30, 2018. All
restaurants near the cinema have been let, with anchors such as
Vapiano, Lucky Bastard and Taco Bell and a salad bar, a noodle bar
and a coffee bar. These will open between August and November
Wereldhave aims to keep the development pipeline
scaled down to below the 3% level of the total portfolio.
Uncommitted projects in the pipeline are the refurbishment of
Mériadeck in Bordeaux, the second phase of the city centre
redevelopment in Tilburg, the expansion of Sterrenburg in Dordrecht
and an extension and changes in lay-out in Belle-Ile, Liège.
Results H1 2018
· Total result €
29.0m (H1 2017: € 74.2m)
· Direct result €
74.5m (H1 2017: 75.2m)
· Indirect result
€ -45.5m (H1 2017: € -0.9m)
revaluation: € -44.9m (H1 2017: € -2.9m)
· Direct result
per share € 1.70 (H1 2017: € 1.72)
· NAV per share
(EPRA): € 48.94 (FY 2017: € 50.00)
42.2% (FY 2017: 40.7%)
shopping centres -1.3% (index 1.3%)
The total result for the first half of 2018
amounts to € 29.0m (H1 2017: € 74.2m). The decrease is largely due
to a lower indirect result compared to the first half of 2017. The
direct result decreased by 1% to € 74.5m, mainly from disposals
that were completed in 2017. The indirect result for the first
semester was € -45.5m, against € -0.9m in H1 2017. The total result
per share amounted to € 0.54 (H1 2017: € 1.69).
The direct result for the first half of the year
amounted to € 74.5m against € 75.2m in 2017. The direct result per
share amounted to € 1.70 (H1 2017: € 1.72).
Overall, net rental income decreased by € 1.9m, or
2%. In Belgium, net rental income improved by € 0.2m. The
additional rental income from the extension of Tournai is partially
offset by the disposal of the Madou office building in Brussels and
lower rental income in Stadsplein Genk. In France, net rental
income decreased by € 1.3m, mainly from sales based rents with
anchor tenants that were agreed mid 2017 and the Verrerie project
in Saint Sever, Rouen. In the Netherlands, net rental income
decreased by € 0.8m. The impact from two disposals in 2017 in
Zoetermeer and Zwolle was mitigated by € 1.0m improved net rents,
mainly in Koningshoek, Maassluis, which was taken into operation.
Net rental income in Finland remained nearly stable.
H1 results 2017 were negatively impacted by € 0.8m
restructuring costs. Interest charges increased by € 0.4m to €
15.6m in H1 2018, mainly the result of the increase in debt.
There was a negative revaluation in the
Netherlands of € -25.9m and in Finland of € -16.3m (net of deferred
tax). The devaluation in the Netherlands mainly relates to yield
expansions and lower ERV expectations on less strategic assets, as
well as non-yielding capital expenditures. In Finland, the
devaluation relates to capital expenditures, mainly in relation to
the cinema. The negative impact was partially offset by a positive
property revaluation in Belgium of € 10.2m on the shopping centres,
mainly from Les Bastions, less a negative revaluation of the
Belgian offices of € 6.9m. In France, the value of the portfolio
decreased by € 4.1m. Yields in France remained flat.
The indirect result was further slightly impacted
by the valuation of derivatives, the deferred tax liability and
other items. The total indirect result amounted to € -45.5m. The
EPRA net initial yield as at June 30, 2018 remained flat at
On June 30, 2018, shareholders' equity including
minority interest amounted to € 2,075.0 m (December 31, 2017: €
The net asset value per share (EPRA) including current profit stood
at € 48.94 at June 30, 2018 (December 31, 2017: €
50.00). At both dates, the number of ordinary shares in issue
amounted to 40,270,921.
On July 19, 2018, Wereldhave agreed an additional
€ 350m Revolving Credit Facility with a syndicate of banks, for a
maximum term of two years. Consequently, with an extension of the
company's existing € 300m Revolving Credit Facility by one year
until 2023 and a refinancing of maturing facility in Belgium of €
30m for five years, the liquidity profile of the company improved
At the end of June, the weighted average maturity
of the debt portfolio amounted to 4.5 years and the average cost of
debt and ICR were 1.90% and 6.3x respectively.
Nominal interest-bearing debt was € 1,628m at June
30, 2018, which, together with a cash balance of € 13m, gives a net
debt of € 1,615m. As at June 30, 2018 the undrawn committed
borrowing capacity amounted to € 150m and the Loan-to-Value ratio
amounted to 42.2% (December 31, 2017: 40.7%). As at June 30, 2018,
80% of Wereldhave's debt portfolio was at fixed interest rates.
precised: direct result 2018 between € 3.33 and € 3.38 per share
(was: € 3.30 - 3.40)
interim dividend of € 0.63, or € 2.52 on an annual
The operational performance is gradually improving
in all countries. We now set our outlook for 2018 for the direct
result to between € 3.33 and € 3.38 per share (previously: € 3.30 -
3.40). Dividend for 2018 will be at a level of € 2.52, payable in
four equal (interim) dividend payments of € 0.63 per quarter.
Changes to the FBI regime
The October 2017 Government
coalition agreement stated an intention that FBI's (Dutch REITs),
including Wereldhave, will no longer be allowed to invest directly
in Dutch real estate from 2020 onwards, due to the planned
abolishment of the dividend withholding tax (DWT). We expect more
clarity on this subject by mid-September, as part of the Government
tax budget for 2019.
Non-listed real estate FBI's are
able to restructure themselves and can so potentially maintain tax
transparency. Wereldhave, as a publicly listed company, has to be
NV and can not restructure. We believe these changes to the FBI
regime would create an uneven playing field and are probably an
unforeseen - but very damaging - side effect of the DWT plans. We
find these plans hard to explain, at a time when 35+ countries
worldwide have existing REIT legislation, including most of the G20
countries, and many more countries are actively considering to
introduce a REIT model.
We continue to believe this issue can still be
resolved. Our efforts are aimed at resolving this issue in
collaboration with our peers, in particular for Dutch private
investors which are likely to be most impacted by this change. The
Dutch assets compose approx. 40% of our total assets. If we find
ourselves unable to resolve the issue, we believe items such as
fiscal depreciations could well be a mitigating factor in the
actual impact for Wereldhave.
Schiphol, 24 July 2018
Wereldhave N.V. Board of Management
D.J. Anbeek, CEO
A.W. de Vreede, CFO
Results Wereldhave H1
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
Wereldhave NV (EU:WHA)
Historical Stock Chart
From Sep 2021 to Oct 2021
Wereldhave NV (EU:WHA)
Historical Stock Chart
From Oct 2020 to Oct 2021