Wereldhave N.V.: Results First Half 2017
(Thomson Reuters ONE) -
Press release
Results first half 2017 Wereldhave N.V.
July 25, 2017
FIRST HALF 2017
Continued strong performance in the Netherlands, stable in Belgium, a recovery
in Finland and headwind in France.
Occupancy rate shopping centres at 95.4% (YE 2016: 95.5%)
Total result: ? 74.2m (H1 2016: ? 9.6m)
Direct result: ? 75.2m (H1 2016: ? 77.7m)
Direct result per share: ? 1.72 (H1 2016: ? 1.77)
Indirect result: ? - 0.9m (H1 2016: ? - 68.1m)
Like-for-like shopping centres 0.0% (index: 0.8%)
EPS 2017 expected to be between ? 3.40 and ? 3.45
Wereldhave share will list ex-dividend today
Interim dividend 2017: ? 0.77 per share (2017: ? 3.08; 2016: ? 3.08)
HIGHLIGHTS
OPERATIONS
* Occupancy increases in Belgium and the Netherlands, flat in Finland and down
in France
* Occupancy rate of shopping centres at 95.4% (YE 2016: 95.5%)
* Like-for-like positive in Finland and the Netherlands, negative in Belgium
and France
* Increase in footfall of 0.8% from 72.2m to 72.8m shopping centre visitors
RESULTS H1 2017
* Total result : ? 74.2m (H1 2016: ? 9.6m)
* Direct result: ? 75.2m (H1 2016: ? 77.7m)
* Indirect result: ? - 0.9m (H1 2016: ? - 68.1m)
* Property revaluation: ? - 2.9m (H1 2016: ? - 62.8m)
* Direct result per share: ? 1.72 (H1 2016: ? 1.77)
* NAV per share (EPRA): ? 51.58 (FY 2016: ? 51.47)
* Loan-to-Value: 38.9% (FY 2016: 39.0%)
OUTLOOK 2017
* Outlook of direct result per share between ? 3.40 and ? 3.45
* Quarterly interim dividend of ? 0.77, or ? 3.08 on a full year basis
Our markets
The Netherlands
The retail market in the Netherlands is gaining momentum against the backdrop of
an improving economic climate. The number of retailer bankruptcies decimated
compared to the first half of 2016 and demand for retail floor space is
increasing. Demand, however, remains selective in terms of location quality, and
is concentrating on larger cities with demographic growth. Our focus on strong
food anchored shopping centres and our refreshment and refurbishment initiative
clearly strengthens the resilience of our portfolio. It attracts new tenants and
protects us from retailers that are rationalising their store base. Recent
examples include the Decathlon coming to Tilburg and Only for Men opening in
Nieuwegein. In May, Blokker announced plans to significantly reduce their number
of shops by nearly 20%. These plans have no impact on Wereldhave as not one of
the 12 Blokker stores in our centres will be closed, due to their relatively
strong performance in sales per m². Our excellent key account management
relations continued to pay off. We agreed on a package deal for a lease
extension of nearly half of all Blokker format related leases with a sales based
rent component, whereby Blokker decided to add one shop to one of our centres.
Upcoming store openings, especially new formats and concepts, will, over the
next few months, further add to the momentum. In Tilburg, Hudson's Bay (13,300
m²) and the new HEMA format (3,300 m²) will open, together with a Decathlon
(2,900 m²). In Arnhem the first C&A new concept store in the Netherlands will
open in Kronenburg. In Maassluis, Action, Aldi and HEMA will open new shops. In
Purmerend, Sportsworld will open a shop on the first floor of the former V&D
department store. These examples show that retailers are appreciating
Wereldhave's refurbishment scheme and that our product remains attractive in a
rationalising retail market.
Belgium
The Belgian economy currently shows some clear early signs of improvement.
Retailers are however facing a more competitive environment, as online sales
accelerate, albeit still at lower levels than in neighbouring countries. The
fashion segment, in particular, is challenging and many large fashion anchor
chains are actively seeking to reduce their occupancy costs.
Belgian retailers increasingly focus on larger shopping centres in urbanised
areas. Rental levels in these centres remain stable. Smaller towns and centres
are more vulnerable for retailers that are downsizing. For Wereldhave, the
shopping centres in Liege, Tournai and Nivelles are firmly on the positive side
of this equation, whilst Kortrijk and Genk still have difficulty in attracting
new tenants. In order to support the leasing, free parking was introduced in
Genk. This led to an increase in footfall of 16% in May and 13% in June, and
sales went up by 12% and 9% respectively. We are positive that our new leasing
organisation and the increased efforts for Kortrijk will lead to signings in the
second half of the year. The leasing process of the extension of Les Bastions in
Tournai is progressing well. We currently have about two-third of the floor
space of the extension in the final stages of negotiations, which includes the
anchor positions. Smaller units will be let as soon as the main anchors can be
announced.
Finland
The Finnish economy is recovering, but this is not yet reflected in retail
turnover. International retail chains still have their expansion in Finland on
hold and there are almost no new entrants to the market. Itis is Finland's
largest shopping mall and still boasts a strong and unique position. Occupancy
has remained high and the announcement of a Finnkino to open in Itis has added
to the appeal for new food & beverage formats. In June the casino 'Feel Vegas'
opened in Itis, immediately strengthening the entertainment and experience
offer. The permit to demolish part of the centre in anticipation of the Finnkino
works was granted in June 2017. Works have started and the 9-screen Finnkino is
to open doors at the end of 2018, with a totally new generation of cinema. It
will significantly boost the attractiveness of the centre, not only in number of
visitors, but also in general entertainment and an improved food & beverage
offer.
France
The election outcome has had a positive impact on market sentiment, but it will
take considerable time before reforms will structurally improve the economic
climate. Footfall in our centres increased by 0.8%, whereas the market average
was a 2.5% drop. Across the board, retail sales in France dropped by 1.9%. Our
centres achieved slightly better, with a 1.8% drop in sales. Despite
outperforming the market, we regard this to be a disappointing result. A
positive note is that our hypermarkets performed well in the past six months. We
notice that prospective tenants are taking more time in their decision-making
and the number of new leases signed was low. The most important signings were
Vapiano in the first quarter of 2017 for the new food court in Saint Sever,
Action for Côté Seine in Argenteuil and Mango in Mériadeck, Bordeaux.
Fashion retailers are, in particular, facing headwinds and Wereldhave's centres
have a strong representation of fashion. We are confident that we will be able
to adapt the tenant mix of our centres to cater for the future need of their
catchment area. To facilitate this and further strengthen the relationship with
our tenants, we will also implement key account management in France. In the
Netherlands, key account management proved to be a valuable tool over the past
years to support leasing for assets that face headwind. In Belgium, this
approach has been adopted in the beginning of the year and first signs are also
positive. The strong development in footfall in our French centres underlines
their fundamental attractiveness, but overall market sentiment is subdued.
OPERATIONS
* Occupancy increases in Belgium and the Netherlands, flat in Finland and down
in France
* Occupancy rate of shopping centres at 95.4% (YE 2016: 95.5%)
* Like-for-like positive in Finland and the Netherlands, negative in Belgium
and France
* Increase in footfall of 0.8% from 72.2m to 72.8m shopping centre visitors
Occupancy of the shopping centres came out at 95.4%, which is just below the
year-end 2016 level of 95.5%.
In the Netherlands, occupancy stood at 96.2% at the end of the second quarter
(YE 2016: 95.8%). The disposal of the shopping centres in Zwolle and Zoetermeer,
which were fully let, had a -0.2% negative impact on occupancy. This was more
than offset by strong leasing activity, with several key new signings. Important
new leases are the Decathlon in Tilburg, a Sportsworld in Purmerend and a
package deal with Blokker. Footfall in the Dutch shopping centres increased by
0.2% to 37.2m visitors during the first half of the year. Like-for-like rental
growth amounted to 0.8%, which is equal to the indexation.
In Tilburg, Decathlon will open a shop on the first floor of the Pieter
Vreedeplein. In Purmerend, Sportsworld has leased the first floor of the former
V&D department store, bringing occupancy in Purmerend to nearly 100%. A package
deal was signed with Blokker for 22 leases, nearly half of the rental contracts
with all of their formats in our portfolio. This resulted in a prolonged lease-
term at roughly similar rent conditions on average, including a sales-based rent
component. Blokker's recent announcement to close down 100 of the 533 stores
does not impact Wereldhave, instead they will add one store. HEMA will open new
concept stores in Maassluis and Tilburg, the latter being the first shop to have
the newest HEMA concept in the Netherlands.
In Belgium, occupancy of the shopping centre portfolio decreased during the
first quarter and slightly improved during the second quarter, to reach 95.7% at
June 30, 2017 (YE 2016: 95.9%). The occupancy of the Belgian offices portfolio
improved by 1.1%, bringing office occupancy to 92% at the end of the first
semester. In Kortrijk, a temporary lease was replaced by River Woods and in Genk
Stadsplein a lease was signed for a bowling centre. Letting of the 15,000m²
extension of Tournai is making good progress. Negotiations are in an advanced
stage for two thirds of the extension, with all major anchors in place and
leasing for the remaining smaller units now to start. Footfall in the Belgian
shopping centres increased by 1.4%. Like-for-like rental growth was -1.0%, with
the indexation at 1.6%. The result of -2.6% below indexation is primarily caused
by the review for the lease of the parking garage in Genk, a strategic decision
to facilitate free parking during the first 1.5 hours. Immediately following the
introduction of free parking, footfall in Genk increased by 16%.
In France, occupancy decreased to 93.3% at June 30, 2017 (YE 2016: 94.4%). The
French shopping centre index reported a drop of 1.9% in sales during the first
half of the year (until May) and a 2.5% decrease in footfall. With a 1.8%
decrease in sales and a 0.8% increase in footfall, Wereldhave's shopping centres
are performing relatively well. The decrease in occupancy is due to tenant
bankruptcies, which were only partially offset, to date, by new leases.
Prospective tenants take considerable time in making their decision to sign a
new lease and particularly large fashion retailers are seeking to reduce their
occupancy costs. New leases that were signed in H1 2017 include a Vapiano for
the Verrerie in Saint Sever, Rouen and an Action to open in Côté Seine,
Argenteuil, a Rituals store in Rivetoile, Strasbourg and a Mango for Mériadeck,
Bordeaux. Rental values are under pressure and like-for-like rental growth in
France stood at -5.1%, which is -5.3% below the indexation of 0.2%. The negative
like-for-like was strongly impacted by Mériadeck. Net rental income decreased by
? 1.1m. Two thirds of this amount can be attributed to higher non-recoverable
service charges due to temporary leases and write-offs on debtors, one third to
discounts on rents and negative reversions.
In Finland, occupancy at June 30, 2017 stood at 96.3%, an increase against YE
2016 of 0.6%. The largest leases were signed with Indecoria, Feel Vegas and
Eurokangas. The permit for the demolition works to prepare for the construction
of the Finnkino cinema was granted in June and works have commenced. The 9-
screen Finnkino cinema is scheduled to open its doors at the end of 2018.
Popularity of Itis remains strong: footfall increased by 2.7% to 8.6m visitors
during the first half of the year. Like-for-like rental growth amounted to
7.6%, which is 7.3% above indexation. The increase is mainly due to the strong
increase in occupancy during the past twelve months and the transfer of the
previous Anttila unit to the development portfolio, in connection with Finnkino.
Investment portfolio
In the Netherlands, Wereldhave sold two smaller shopping centres, one in Zwolle
and the other in Zoetermeer for ? 74.2m, which was above book value at year-end
2016 and above the purchase price for which Wereldhave acquired these two
shopping centres in 2015. The proceeds were used to repay debt.
Development pipeline
At June 30, 2017, Wereldhave's committed development portfolio consists of eight
projects, one in Finland, two in France, one in Belgium and four in the
Netherlands. All projects are within budget and planning.
In Finland, the demolition permit for the former Anttila unit to create room for
the Finnkino cinema in Itis was granted in June 2017. The tender for the
construction works was completed successfully. Completion of the project is due
for the end of 2018. Total costs for the Finnkino cinema including relocation
costs will amount to ? 24m. The yield on costs for the refurbishment amounts to
4.8%.
In Belgium the expansion of the Tournai shopping centre is making good progress.
Completion is scheduled for the first quarter of 2018.
In France, the shell for the Primark in Docks Vauban will be completed in July
and tenant fit-out works will start early in August 2017. Works for the Verrerie
project at the Saint Sever shopping centre in Rouen are expected to start in the
last quarter of 2017. The ? 20m project (including refurb) will add a
comprehensive food hall to the shopping centre, directly in front of the
Kinepolis cinema. More than half of the extension has already been pre-let, with
Vapiano as the most important signing.
In the Netherlands, the Tilburg inner city redevelopment scheme to connect the
Emmapassage with the Pieter Vreedeplein is making good progress. The Hudson's
Bay store will open in the third quarter, as one of the five first HBC shops to
open in the Netherlands. The passageway to connect the Pieter Vreedeplein with
the Heuvelstraat will be open when the HBC opens its doors to the public. The
refurbishment of the HEMA at the Heuvelstraat will start in August 2017, the
first HEMA store in the Netherlands with the new format. This clearly shows that
retailers recognise the success of the project and are willing to actively
participate. Another example is the lease that was signed with Decathlon for a
2.900 m² shop on the first floor of the Pieter Vreedeplein, to open early
November of this year.
In Capelle aan den IJssel, construction has started of a parking garage for 280
cars and the creation of a food court and new passageways, connecting both sides
of the centre. This ? 28m investment will be completed in Q3 2018. Work in
Maassluis for the fifth and sixth phase of the redevelopment of Koningshoek is
progressing well. The centre will be extended by 5,000m², which is already fully
let. HEMA and Aldi will open their shops in July and an Action shop will open in
November 2017.
In Arnhem, the refurbishment of the Presikhaaf shopping centre is also
progressing well. Several anchor tenants will be relocated within the centre, to
make the lay-out more attractive. The anchors such as Albert Heijn, HEMA,
Intertoys, Blokker, Big Bazar and Xenos unanimously decided to stay within the
centre when the refurbishment was announced. They are now actively upgrading
their shop formats, in line with the refurbishment of the mall. Albert Heijn
decided to extend its floor space and Aldi decided to open a shop in Presikhaaf.
Completion of the ? 19m refurbishment and extension is on schedule for 2019,
with an anticipated net initial yield on costs of 6.8%.
Organisation
The reorganisation of the Dutch head office and management organisation was
successfully completed in the first quarter of 2017. The creation of four
business units, each with four shopping centres, has not led to any disruption
in operations or leasing. Headcount in the holding staff decreased by 3 to 23
persons and in the Dutch management organisation by 17 to 47 persons at the end
of June 2017. Total costs of the reorganisation amounted to ? 1.6m.
RESULTS H1 2017
* Total result : ? 74.2m (H1 2016: ? 9.6m)
* Direct result: ? 75.2m (H1 2016: ? 77.7m)
* Indirect result: ? - 0.9m (H1 2016: ? - 68.1m)
* Property revaluation: ? - 2.9m (H1 2016: ? - 62.8m)
* Direct result per share: ? 1.72 (H1 2016: ? 1.77)
* NAV per share (EPRA): ? 51.58 (FY 2016: ? 51.47)
* Loan-to-Value: 38.9% (FY 2016: 39.0%)
Total result
The total result for the first half of 2017 amounts to ? 74.2m (H1 2016: ?
9.6m). Compared to the first half of 2016, the direct result decreased by 3%.
The indirect result for the first semester was ? -0.9m, against ? -68.1m in H1
2016. The total result per share amounted to ? 1.69 (H1 2016: ? 0.09).
Direct result
The direct result for the first half of the year amounted to ? 75.2m against ?
77.7m in 2016.
Net rental income decreased by ? 3.2m. In Belgium, net rental income decreased
by ? 0.5m, mainly from vacancy in the offices portfolio and a provision for
debtors in the offices portfolio. In Finland, higher occupancy resulted in an
increase of net rental income by ? 0.3m. In France net rental income decreased
by ? 1.1m, of which two thirds from higher non-recoverable service charges and
write-offs on debtors and one third from lower rents. In the Netherlands, net
rental income decreased by ? 1.9m compared to the first half of 2016. This
decrease is caused by the disposals in 2016 of the Pathé cinema in Tilburg and a
shopping centre in Geldrop and in 2017 of Zwolle and Zoetermeer, which had a
negative impact on net rental income of ? 1.5m. This was offset by the
acquisitions of HBC and HEMA in Tilburg with rental income of ? 1.2m and a
positive like-for-like rental growth of ? 0.4m. Transfer of units to the
development portfolio and other items caused a drop of net rental income of ?
0.9m. Net rental income in H1 2016 included ? 1.1m one-offs relating to the
payments for the surrender of leases, which were not repeated in H1 2017.
The ? 1.6m restructuring costs for the reorganisation in the Netherlands were
fully offset against savings of an equal amount as a result of reduced
headcount. The annualised savings of the reorganisation in Q1 2017 will amount
to approx. ? 2.0m in 2018. Interest costs for the first six months decreased by
? 1.0m. The direct result per share amounted to ? 1.72 (H1 2016: ? 1.77).
Indirect result
The property valuation results amounted to ? - 2.9m. There was a negative
revaluation in France
(? -16.7m). Yield compression in France continued, but this was absorbed by a
negative revaluation from lower market rents. In Finland and Belgium the values
of the portfolio remained flat. Decreases in value of the Belgian offices
portfolio of ? -2.2m were offset by an equal upward valuation of the shopping
centre portfolio. In the Netherlands, the value of the portfolio increased by ?
14.3m.
The indirect result was also impacted by others items, mainly non-cash such as
valuation of derivatives and the deferred tax liability amounting to ? 2.0m,
resulting in a total indirect result of ? - 0.9m.
The EPRA net initial yield of the shopping centres as at June 30, 2017 amounted
to 5.1%.
Equity
On June 30, 2017, shareholders' equity including minority interest amounted to ?
2,172.0m (December 31, 2016: ? 2,161.2m). The net asset value per share (EPRA)
including current profit stood at ? 51.58 at June 30, 2017 (December 31, 2016:
? 51.47). As at that date, the number of ordinary shares in issue amounted to
40,270,921.
Financing
In the first half of 2017 Wereldhave refinanced its 2014 ?300m syndicated
revolving credit facility with a new ?300m syndicated revolving credit facility
pushing the maturity out to February 2022. The 2014 facility was due to expire
in March 2019. The new facility takes advantage of favourable market
conditions, features two one-year extension options and includes a ?100m
accordion feature.
Further, a ?30m maturing bilateral revolving credit facility of Wereldhave
Belgium was refinanced with a ?30m seven year term loan. In May 2017 Wereldhave
N.V. established a Euro Medium Term Note Programme to diversify its funding
base. A first private placement of bonds documented under this programme was
done in July 2017.
Nominal interest bearing debt was ? 1,498.5m at June 30, 2017, which, together
with a cash balance of ? 15.3m, gives a net debt of ? 1,483.2m. Undrawn
committed borrowing capacity amounted to ? 234m and the Loan-to-Value ratio
amounted to 38.9% (December 31, 2016: 39.0%). As at June 30, 2017, 83% of
Wereldhave's debt portfolio was at fixed interest rates. The weighted average
maturity of the debt portfolio amounted to 5.0 years and the average cost of
debt and ICR were 1.95% and 6.7x respectively.
Interim dividend and dividend dates in 2017/2018
The Wereldhave share will list ex-dividend today. The first interim dividends of
? 0.77 in respect of 2017 will become payable quarterly. The final dividend will
be announced with the full-year 2017 results, in February 2018.
Ex-dividend Record date Payment date
Interim dividend 2017 #1 July 25, 2017 July
26, 2017 July 27, 2017
Interim dividend 2017 #2 October 24, 2017 October
25, 2017 October 27, 2017
Interim dividend 2017 #3 January 23, 2018 January
24, 2018 January 26, 2018
Final dividend 2017 April 24, 2018
April 25, 2018 April 30, 2018
OUTLOOK 2017
Wereldhave narrows its outlook, with the direct result per share for FY 2017
expected to be between ? 3.40 and ? 3.45. The quarterly interim dividend is
maintained at ? 0.77, or ? 3.08 on a full year basis.
Schiphol, 25 July 2017
Wereldhave N.V.
Board of Management
D.J Anbeek, CEO
R.J. Bolier, CFO
Conference call / webcast
Wereldhave will present the results for the first half year of 2017 via a
webcast and conference call at 10.00 CEST, today. This webcast will be available
at www.wereldhave.com.
Information for the press: Information
for analysts:
Richard W. Beentjes Ruud van Maanen
E richard.beentjes(at)wereldhave.com E
ruud.van.maanen(at)wereldhave.com
T + 31 20 702 78 33 T + 31 20 702 78 43
Wereldhave Release Results First Half 2017:
http://hugin.info/134202/R/2122566/809393.pdf
This 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
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2017 - 07:30 Uhr
Sprache: Deutsch
News-ID 553660
Anzahl Zeichen: 25772
contact information:
Town:
Schiphol
Kategorie:
Business News
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