updated 11/7/2007 2:08:00 AM ET 2007-11-07T07:08:00

Profit

The profit for the first nine months of 2007 amounts to EUR 146.7 mln, or EUR 6.77 per share. The portfolio was revalued upwards in all countries. Surpluses on disposals of properties amounted to EUR 7.8 mln.

Direct result

The direct result for the first three quarters amounts to EUR 83.0 mln in 2007, a EUR 1.5 mln decrease compared to 2006. In spite of EUR 1.7 mln higher like-for-like rental income, net rental income decreased by EUR 1.4 mln as a result of the negative effect of purchases and sales of property (EUR - 1.9 mln) and exchange rate differences (EUR -1.2 mln). Interest charges increased by EUR 2.3 mln. In particular the premium received from the surrender of a lease during the first quarter led to a EUR 2.1 mln increase of other gains and losses. Exchange rate differences, mainly on the dollar, had a total negative effect on the direct result of EUR 0.9 mln. The direct result per share for the first three quarters of 2007 amounts to EUR 3.76, which is 1.8% lower than in 2006.

The occupancy rate of the portfolio for the third quarter amounts to 93.3% (2nd quarter 2007: 94.4%). Broken down by sector, the occupancy rate during the third quarter was: offices 88.5%, retail 98.7%, industrial 94.6% and residential 92.6%.

Indirect result

During the first three quarters of 2007 property disposals realised a surplus of EUR 7.8 mln (2006: EUR 40.1 mln). The revaluation surplus for the first three quarters of 2007 amount to EUR 65.2 mln (until September 30, 2006: EUR 78.1 mln). Initial yields have changed only slightly during the third quarter, bringing the weighted average net initial yield of the entire portfolio to 6%. The indirect result to September 30, 2007 amounts to EUR 63.7 mln (2006: EUR 100.9 mln).

Equity

Shareholders' equity at September 30, 2007 amounted to EUR 1,910.3 mln (December 31, 2006: EUR 1,890.2 mln). This represents 67.0% of the balance sheet total. Net asset value per share amounted to EUR 86.34 at September 30, 2007 (December 31, 2006: EUR 80.87 after distribution of profit). No convertible bonds have opted for conversion. On September 30, 2007 the total number of ordinary shares in issue amounted to 20,781,735.

Property portfolio

On July 20, 2007, in Spain Wereldhave purchased a retail- and leisure centre of 22,666 m² in Collado Villalba, approx. 40 kilometres northwest of Madrid. The purchase price amounts to EUR 53 mln. There have been no disposals of property during the third quarter.

On October 3, 2007 Wereldhave completed the sale of an office building of 23,163 m² in Rijswijk, The Netherlands. The proceeds of the sale amounted to EUR 43.6 mln, which results in a surplus on disposal of EUR 4.1 mln. On October 9, 2007, in Meer, Belgium Wereldhave sold three industrial properties totalling 40,969 m², for EUR 19.5 mln, generating a surplus on disposal of EUR 5.4 mln. These two sales have increased the result on disposals for the year 2007 to EUR 17.3 mln, of which EUR 4.4 was included in previous revaluations.

On October 1, 2007, in Espoo, Finland, a conference centre with hotel facilities was transferred to the investment portfolio. The investment value amounts to EUR 4.4 mln. On completion, the building was fully let. At the end of November 2007 in San Antonio, United States, construction of the first phase of a residential development project will commence. The completed investment value amounts to USD 190 mln. Completion of the 500 apartments and central facilities is planned for the second quarter of 2009.

Prospects

Wereldhave wants to create value for its shareholders. This implies the disposal op properties with little perspective on future value growth. The lower net rental income resulting from these disposals, are the consequence of the conscious choice to realise value. Wereldhave has a pipeline of well over EUR 400 mln of development projects, which will start to contribute as from 2009 and following years.

Wereldhave maintains its earlier forecast of a direct result for the year 2007 between EUR 4.75 and EUR 4.85 per share, given the current exchange rates.

© Marketwire 2013

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