Update First Quarter 2013

THE HAGUE, The Netherlands, May 3, 2013 (GLOBE NEWSWIRE) -- Operations

Gross rental income for the first three months of 2013 amounted to [Eur] 43.5m, a decrease of 13.8% compared to the same period in 2012. The decrease is mainly due to disposals in Belgium, France, the UK and the USA in 2012 and disposals in UK and USA in 2013. This was only partly offset by the acquisition of Genk Shopping 1 and Stadsplein in Belgium in April 2012.
Gross- and net rental income are developing well with overall LFL growth at or above 2013-15 retail targets of 125 bps above indexation. Positive developments in Finland and Belgium are compensating below target LFL growth in the Netherlands. The LFL growth in the Paris office market is also expected to be above indexation.


The EPRA occupancy rate stood at 94.1% as at 31 March 2013 (31 December 2012: 94.7%, adjusted for the disposal of the portfolio's in the US and UK). Occupancy in the core retail portfolio decreased slightly to 97.5%. Due to a number of tenants that went into administration, there was an increase in vacancy in the Dutch shopping centres. This was partly compensated by higher occupancy in the Finnish and Belgian shopping centres. Occupancy of the core office portfolio was stable at 95.8%, with our offices Paris also stable at 99%.
Occupancy in the non-core portfolio developed well in the Belgian offices but was impacted further in the Dutch office- and logistic space.
The cost reduction program that was implemented in the last quarter of 2012 is well on track with general costs decreasing by 18.4% to [Eur] 3.9m in Q1 2013 from [Eur] 4.8m in the same period in 2012.

Investment Portfolio

During the first quarter all US assets and almost the entire UK portfolio were sold. The remaining UK assets, a mixed-use retail/office development project in Richmond that was completed in March, an office property on Great Portland Street in London and a plot of land, are expected to be sold in the coming months.

Development pipeline

The student homes project in Ghent is pre-let to a student housing organisation, a Quick restaurant and a fitness centre. Negotiations are ongoing with a well-known food retailer for a large part of the retail space, taking pre-lettings to 80% ahead of the completion in Q4 2013.
The redevelopment of the Itis shopping centre in Finland continues according to schedule, with works in the Bulevardi area progressing to be completed by the end of 2013. Pre-letting has increased to 68% with rents at or above budgeted pro-forma rents. Negotiations are taking place with several large retailers to take up major parts of the former 'Stockmann area'. In March 2013, Itis welcomed 'New Yorker' with its first store-opening in Finland. Construction of the Noda office building in Issy-Les-Moulineaux and the Urbagreen office building in Joinville-le-Pont is progressing on schedule and within budget. Urbagreen has been pre-sold to a French bank and the marketing to lease out Noda has started. Serious interest is already being recorded for approx. 65% of the total leasable area.
Works for the renovation (11,400 m(2)) and expansion (11,800 m(2)) of Genk Shopping 1 is going as scheduled and project costs are within budget. Discussions are being held with various current and new lessees with pre-letting of the expansion currently at 33%.


On 21 March Wereldhave launched a tender offer to repurchase outstanding convertible bonds due 2014. As at the expiration deadline, [Eur] 223,750,000, or 97.3% of the notes had been tendered pursuant to the offer. All notes validly tendered in the offer were accepted. The repurchase was completed on April 2 2013 and procedures were started to redeem the remaining notes in accordance with the terms and conditions of the notes.
Nominal interest bearing debt was [Eur] 875m at 31 March 2013, which together with a cash balance of [Eur] 390m gives net debt of [Eur] 485m. Total borrowing capacity amounted to [Eur] 503m and the Loan to value ratio (based on Dec 2012 portfolio valuations) was lowered to 24% (December 31, 2012: 44%). The increase of the LTV compared to the 31 December 2012 pro-forma LTV (adjusted for the full disposal of the US and UK assets) of <20% is caused by development capex of [Eur] 42m during Q1 and the remaining UK assets yet to be sold. The NAV as at December 31, 2012 of [Eur] 64.09 per share was adjusted to [Eur] 63.62 to implement changes in IAS 19 (employee benefits). As at 31 March 2013 the NAV per share was [Eur] 63.08 and the average cost of debt and ICR were 3.2% and 4.2 respectively. The main components of the [Eur] 0.54 decrease of the NAV per share are a negative indirect result for the first quarter due to the repurchase of the convertible, nearly equal to the direct result for the first quarter, and exchange rate differences.

Information for the press:
Richard W. Beentjes
E richard.beentjes@wereldhave.com
T + 31 70 346 93 25
Information for analysts:
Jaap-Jan Fit
E jaapjan.fit@wereldhave.com
T + 31 70 307 45 43


2013-05-03 Persbericht ENG.pdf