Wereldhave N.V.: Results 2016: Strong leasing perf

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Posted On: 02/03/2017 2:00:22 AM

Posted By: News Desk 2018

Wereldhave N.V.: Results 2016: Strong leasing performance backs solid results

EPS growth of 7% to € 3.45 (2015: € 3.23)
Net profit increases to € 120.8m (2015: € 103.8m)
Strong leasing performance; occupancy increases in all countries
Overall positive like-for-like rental growth of 1.0%
Dividend proposal of € 3.08 (final distribution of € 0.77)
Stable outlook 2017: EPS between € 3.40 and € 3.50

Summary

For the year 2016, Wereldhave posted a net profit of € 120.8m, against € 103.8m for 2015. The direct result increased by 13% to € 151.0m. The direct result per share rose by 7% to € 3.45 (FY 2015: € 3.23). The full year indirect result stood at € 30.2m negative (2015: € -29.9m), and improved significantly by € 37.9m during the second half of the year. This was largely due to the use of a lower percentage of transfer tax for the valuations in Belgium and a positive revaluation in France.

Wereldhave delivered on the 2014 and 2015 acquisitions with a strong operational performance in 2016. Gross rental income for 2016 amounted to € 230.2m, an increase of 11% compared to 2015. The increase is mainly due to the acquisition of nine shopping centres in the Netherlands in 2015, partly offset by the disposals of the French offices portfolio.

Overall occupancy of the shopping centres at the end of 2016 rose 170 bps to 95.5% (2015: 93.8%). Occupancy improved in all countries, with an overall positive like-for-like rental growth of 1.0%, which is 40 bps above indexation. Leasing activity was very high, with approximately 500 leases, rotations and renewals signed. In France, occupancy of the portfolio improved from 91% at acquisition to 94.4% YE 2016. In the Netherlands, occupancy of the portfolio improved during the year from 95.3% to 95.8% and footfall in our Dutch centres went up by 1.4%. The occupancy of the portfolio that was acquired in 2015 at 91.4% rose to 94.8% at year-end 2016, in spite of frequent bankruptcies in the retail sector in this 15 months timeframe.

In respect of the year 2016, a final dividend will be proposed of € 0.77 per share. This implies a full year 2016 dividend of € 3.08, an increase of 2% against 2015. The ex-dividend date is April 25, 2017. The dividend will be payable as from April 27, 2017.

The recurring direct result for the year 2017 is on a positive track, anticipated to grow slightly further. It will however be impacted by a one-off reorganisation costs in 2017 which will amount to approximately € 1.5m. The 2017 outlook also takes into account intended disposals of at least € 50m in H1 2017. Combining these two factors and development projects that will become yielding in the second half of the year will bring the direct result per share to between € 3.40 and € 3.50 per share. The impact from the cost efficiencies resulting from the reorganisation is expected to contribute to the direct result in 2018 and onwards. Dividend is to remain stable in 2017 at the current level of € 3.08, payable in four interim dividends of € 0.77 per quarter.

The AGM will be held on April 21, 2017 in the Hilton Hotel, Amsterdam. The nomination will be proposed of Mr A. Nühn and Mr H. Brand as members of the Supervisory Board.