1 VASTNED RETAIL N.V. HALF-YEARREPORT 2022
PRESS RELEASE
HALF-YEAR REPORT 2022
Vastned maintains strong operational and financial performance
Highlights H1 2022
- Positive earnings of € 2.30 per share (€ 0.50 negative in H1 2021)
- Direct result in H1 2022 of € 0.98 per share (€ 0.88 in H1 2021)
- Indirect result in H1 2022 of € 1.32 per share (€ 1.38 negative in H1 2021)
- Collection rate further increased to 97.6%
- Occupancy rate increased to 98.5%
- Like-for-likegross rental income increased by 1.4% compared with H1 2021
- Value of property portfolio increased by 1.0% compared with 31 December 2021
- Loan-to-valueratio of 43.0% as at 30 June 2022
- Focus remains on operational performance and maintaining high quality of portfolio with right tenant mix
- Interim dividend of € 0.59 per share; 60% payout ratio in line with dividend policy
- Outlook: Vastned reiterates its expected direct result for the full year 2022 between € 1.95 to € 2.05 per share
Hoofddorp, 28 July 2022 - Vastned, the listed European retail property company, has maintained its strong operational and financial performance despite economic uncertainties due to persistently high energy prices, rising inflation and increased recession fears in Europe. Vastned is reporting positive earnings for H1 2022 of € 2.30 euro per share and a direct result for H1 2022 of € 0.98 euro per share, an increase of over 11% compared with the € 0.88 per share reported in H1 2021. The collection rate further increased to 97.6%, and the occupancy rate increased to 98.5%. The value of the property portfolio increased 1.0% during H1 2022, mainly reflecting lower yields in key markets combined with relative stability across most other valuation factors.
Reinier Walta, CEO of Vastned: 'Vastned delivered another strong quarter in terms of the company's operational performance and interim results. Retailers in both 'phygital' and physical brands are showing a healthy demand for retail property. Moreover, transaction values are stabilizing, resulting in a slightly higher valuation of our property portfolio. Our performance has again demonstrated that Vastned has a high-quality portfolio with attractive, distinctive properties in prime locations in "winning cities". We will approach the second half of the year cautiously as a result of the economic situation, which could potentially affect our tenants. Despite the economic uncertainties, we reiterate our expectations for the full year 2022 provided in our Q1 trading update.'
Vastned Retail N.V. | Mercuriusplein 11 | PO BOX 22276 | Tel: +31 202424300 | ||
2132 HA Hoofddorp | 1100 CG Amsterdam | info@vastned.com | www.vastned.com | ||
2 VASTNED RETAIL N.V. HALF-YEARREPORT 2022
PRESS RELEASE
Strategy execution
Vastned continues to concentrate its unique portfolio of high-street retail and inner-citymixed-use properties in winning cities. Our solid, growing occupancy and collection rates, as well as positive value development, reflect the quality of our portfolio. By adding tenants with strong digital brands and retailers that prioritise phygital (the combination of physical and digital), and by focusing on 'buy online, pick up in store' solutions, Vastned has created a more diverse mix of tenants. Furthermore, in H1 2022, Vastned decreased its exposure to fashion in its total portfolio by half a percentage point. By optimising its portfolio, Vastned expects to further unlock the intrinsic value of its real estate portfolio.
Sustainability
Sustainability is an important core value for Vastned in creating long-term value for its stakeholders.
Converting empty spaces above shops into residential units is making city centres livelier after closing time and increasing the housing stock. These investments also aim to improve the sustainability ratings of Vastned's properties. We carried out three apartment renovations in H1 2022. Five apartments will be delivered in Q3 of 2022.
Impact of COVID-19
During H1 2022, Vastned's portfolio in the Netherlands was impacted by a short period of lockdown, with restrictions on non- essential retail locations, restaurants and bars in January. Most of the restrictive measures were lifted on 15 January 2022. The rent concessions accounted for in H1 2022 as a result of waivers in the Netherlands amounted to € 0.4 million.
Key parameters
The direct result per share in H1 2022 was € 0.98 compared with € 0.88 in H1 2021. Compared with H1 2021, net rental income increased from € 26.9 million to € 28.8 million in H1 2022, due to almost no waivers granted in H1 2022.
The indirect result per share in H1 2022 was € 1.32 positive compared with € 1.38 negative in H1 2021. The positive indirect result in H1 2022 was mainly due to the increased value of the property portfolio (1%) and the increased value of the financial derivatives as a result of higher market interest rates.
The occupancy rate increased from 96.2% to 98.5%.
Results | H1 2022 | H1 2021 | |
Occupancy rate as at 30 June (%) | 98.5 | 96.2 | |
Like-for-like gross rental growth (%) | 1.4 | (3.2) | |
Value movements 1 (%) | 1.0 | (1.9) | |
Total appraisal value of the portfolio 2 (€ million) | 1,452 | 1,440 | |
Direct result per share (€) | 0.98 | 0.88 | |
Indirect result per share (€) | 1.32 | (1.38) | |
Result per share (€) | 2.30 | (0.50) |
- Excluding acquisitions and divestments
- Including assets held for sale
Vastned Retail N.V. | Mercuriusplein 11 | PO BOX 22276 | Tel: +31 202424300 | ||
2132 HA Hoofddorp | 1100 CG Amsterdam | info@vastned.com | www.vastned.com | ||
3 VASTNED RETAIL N.V. HALF-YEARREPORT 2022
PRESS RELEASE
NOTES TO THE PROPERTY PORTFOLIO
Occupancy rate
The occupancy rate of the full portfolio rose in Q2 2022 compared with Q1 2022 and the figures for 31 December 2021.
The occupancy rate in the Netherlands increased mainly due to the new lettings. The occupancy rate in France also increased, due to the new lettings. In Belgium, the occupancy rate remained relatively stable. The portfolio in Spain remained fully let.
Occupancy rate (%) | 30 June 2022 | 31 March 2022 | 31 December 2021 | 30 June 2021 | |||
Netherlands | 98.3 | 97.7 | 97.2 | 96.1 | |||
France | 98.1 | 97.5 | 97.2 | 94.1 | |||
Belgium | 98.8 | 98.9 | 99.3 | 97.5 | |||
Spain | 100.0 | 100.0 | 100.0 | 100.0 | |||
Total | 98.5 | 98.1 | 97.9 | 96.2 |
Leasing activity
In the first six months of 2022, Vastned concluded 19 leases for a total annual amount of € 2.1 million, or 2.9% of the total theoretical gross annual rental income. On the 19 leases, Vastned realized a € 0.3 million rent decrease, caused mainly by a new lease to G-Star on Voldersstraat 15 in Gent and the new letting of Etam on Meir 99 in Antwerp. Both rental units were previously over-rented and are now rented in line with the estimated rental value provided by external appraisers. On Zuidplein in Rotterdam, Vastned renewed its lease with Etos and signed a new lease with Snipes.
Leasing activity | H1 2022 |
Number of leases | 19 |
Rental income (€ million) | 2.1 |
% of total theoretical annual rent | 2.9 |
Rental change (€ million) | (0.3) |
% rental change | (13.1) |
Appraisal value
The appraisal value of Vastned's total property portfolio was € 1.45 billion as at 30 June 2022. This is an increase of 1% compared with year-end 2021.
Portfolio breakdown (€ million) | 30 June 2022 | % of total | |
Netherlands | 631.1 | 43 | |
France | 413.5 | 28 | |
Belgium | 323.3 | 22 | |
Spain | 83.8 | 6 | |
Total | 1,451.7 | 100 |
Vastned Retail N.V. | Mercuriusplein 11 | PO BOX 22276 | Tel: +31 202424300 | ||
2132 HA Hoofddorp | 1100 CG Amsterdam | info@vastned.com | www.vastned.com | ||
4 VASTNED RETAIL N.V. HALF-YEARREPORT 2022
PRESS RELEASE
Like for like appraisal value
All properties in operation are appraised at least once a year by independent certified appraisers. As at 30 June 2022, 97.3% of the portfolio has been appraised. The like-for-like appraisal value of the property portfolio excluding acquisitions and divestments at the end of June 2022 increased by 1.0% compared with year-end 2021. The value increase of the portfolios in the Netherlands, France, Belgium and Spain were 1.5%, 0.8%, nihil and 2.1%, respectively.
Appraisal value
(€ million) | H1 2022 | vs FY 2021 | FY 2021 | vs FY 2020 | FY 2020 | ||||
Netherlands | 631.1 | 9.2 | 621.9 | (15.5) | 637.5 | ||||
France | 413.5 | 3.3 | 410.1 | 2.9 | 407.2 | ||||
Belgium | 323.3 | 0.1 | 323.2 | (9.8) | 333.0 | ||||
Spain | 83.8 | 1.7 | 82.1 | (1.5) | 83.6 | ||||
Total | 1,451.7 | 14.3 | 1,437.4 | (23.8) | 1,461.2 |
Acquisitions and divestments
In Q1 2022, Vastned sold two non-strategic assets on Dorpstraat 21-23 in Renkum and Achter Clarenburg 19 in Utrecht with a total transaction value of € 0.8 million, which was 18.6% above book value. No divestments or acquisitions took place in Q2 2022. After balance sheet date, Vastned acquired Zuidplein Hoog 827 in Rotterdam, which is currently rented to ICI Paris XL.
NOTES TO THE FINANCIAL RESULTS
Financial results (€ million) | H1 2022 | H1 2021 | |
Direct result | 16.9 | 15.1 | |
Indirect result | 22.6 | (23.7) | |
Result attributable to Vastned Retail shareholders | 39.5 | (8.6) | |
Result attributable to non-controlling interests | 2.8 | (0.1) | |
Result after taxes | 42.3 | (8.7) |
Result attributable to Vastned Retail shareholders
The result attributable to Vastned's shareholders, which comprises the direct and indirect results, was € 39.5 million positive in H1 2022 (H1 2021: € 8.6 million negative). The main cause was the increase of the indirect result from € 23.7 million negative in H1 2021 to € 22.6 million positive in H1 2022. Within the indirect result, the value increase of the property portfolio in H1 2022 amounted to € 14.6 million (H1 2021: value decrease of € 28.7 million). As a result of higher market interest rates, the value movements of the financial derivatives were € 9.6 million positive in H1 2022 (H1 2021 € 1.6 million positive). The indirect result also included a positive result on the sale of property of € 0.2 million, deferred taxes of € 0.6 million and abortive purchase costs of € 0.7 million.
The direct result increased from € 15.1 million in H1 2021 to € 16.9 million in H1 2022. Net rental income was higher
(€ 28.8 million in H1 2022 compared with € 26.9 million in H1 2021); however, this effect was partly compensated by higher income taxes.
Result per share
The result per share attributable to Vastned shareholders was € 2.30 positive in H1 2022 (H1 2021: € 0.50 negative).
The result comprises the direct result per share of € 0.98 (H1 2021: € 0.88) and the indirect result per share of € 1.32 positive
(H1 2021: € 1.38 negative).
Vastned Retail N.V. | Mercuriusplein 11 | PO BOX 22276 | Tel: +31 202424300 | ||
2132 HA Hoofddorp | 1100 CG Amsterdam | info@vastned.com | www.vastned.com | ||
5 VASTNED RETAIL N.V. HALF-YEARREPORT 2022
PRESS RELEASE
NET INCOME FROM PROPERTY
Gross rental income
The gross rental income was € 32.8 million in H1 2022 compared with € 31.0 million in H1 2021. A breakdown of the movements per country is provided in the table below.
Total (€ thousand) | Netherlands | France | Belgium | Spain | Total | ||||
Gross rental income H1 2021 | 14,333 | 6,723 | 8,680 | 1,290 | 31,026 | ||||
Acquisitions | - | - | - | - | - | ||||
Divestments | (175) | - | (212) | (12) | (399) | ||||
Waivers of rent arrears (LfL) | 614 | 522 | 588 | - | 1,724 | ||||
Like-for-like rental growth | 242 | 162 | (227) | 242 | 419 | ||||
Gross rental income H1 2022 | 15,014 | 7,407 | 8,829 | 1,520 | 32,770 | ||||
Other income | - | 158 | 45 | - | 203 | ||||
Addition to provision for expected credit losses | 104 | (266) | 25 | - | (137) | ||||
Operating expenses | (2,589) | (612) | (736) | (94) | (4,031) | ||||
Net rental income H1 2022 | 12,529 | 6,687 | 8,163 | 1,426 | 28,805 | ||||
Net rental income H1 2021 | 11,183 | 6,211 | 8,236 | 1,265 | 26,895 | ||||
Operating expenses as % of gross rental income 2022 | 16.6 | 11.9 | 8.1 | 6.2 | 12.7 | ||||
Operating expenses as % of gross rental income 2021 | 22.0 | 7.6 | 5.1 | 1.9 | 13.3 |
Divestments (€ 0.4 million decrease)
In H1 2022, Vastned made € 0.8 million worth of divestments. In 2021, Vastned sold properties totalling € 17.7 million, which caused the gross rental income to fall by € 0.4 million compared with H1 2021. These divestments were made in the Dutch, Belgian and Spanish property portfolios.
Waivers in the context of COVID-19 (€ 1.7 million increase)
As a result of COVID-19, an amount of € 0.4 million in rent arrears was waived in H1 2022 (H1 2021: € 2.1 million). The waivers of rent arrears in H1 2022 were granted in the Netherlands.
Like-for-like gross rental growth (€ 0.4 million increase)
The like-for-like rental growth of the gross rental income was € 0.4 million positive. The like-for-like rental growth in the Netherlands, France and Spain was respectively € 0.2 million positive, € 0.2 million positive and € 0.2 million positive.
In Belgium, the like-for-like rental growth was € 0.2 million negative, as a result of lease renewals with a rent decrease. The like-for-like growth of the gross rental income was 1.4% positive for the total property portfolio.
Operating expenses (including net service charge expenses)
Total operating expenses, excluding the allocation to the provision for expected credit losses, increased from € 3.8 million in H1 2021 to € 4.0 million in H1 2022, mainly as a result of increased letting costs.
Vastned Retail N.V. | Mercuriusplein 11 | PO BOX 22276 | Tel: +31 202424300 | ||
2132 HA Hoofddorp | 1100 CG Amsterdam | info@vastned.com | www.vastned.com | ||
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VastNed Retail NV published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 07:47:12 UTC.