Interim / Quarterly Report • Jul 23, 2024
Interim / Quarterly Report
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Dutch retail sales +4%, well above inflation
Footfall +5%, significantly outperforming the market
Positive valuation result core portfolio of +3%, driven by Full Service Centers
Fitch credit rating BBB, immediate recurring savings effect on interest costs
Debt profile further strengthened through € 119m USPP raise
First steps taken for disposals and/or joint ventures of several Dutch assets
Direct result impacted by bankruptcies and higher financial expenses, normalization in H2
Forecast for FY 2024 DRPS € 1.75 reiterated
| H1 2024 | H1 2023 | Change | |
|---|---|---|---|
| Gross rental income | 83,047 | 76,555 | 8.5% |
| Net rental income | 68,023 | 62,901 | 8.1% |
| Result | 94,457 | 57,040 | 65.6% |
| Basic earnings per share (in €) | 1.68 | 1.29 | 30.3% |
| Weighted average number of ordinary shares outstanding | 43,646,729 | 40,050,697 | 9.0% |
| 30 Jun 2024 | 31 Dec 2023 | Change | |
| Investment property | 2,231,104 | 2,162,411 | 3.2% |
| Cash and cash equivalents | 19,596 | 25,544 | -23.3% |
| Interest-bearing liabilities | 983,959 | 941,362 | 4.5% |
| Equity attributable to shareholders | 983,112 | 964,481 | 1.9% |
| EPRA and other performance measures (x € 1,000 unless otherwise noted) | |||
|---|---|---|---|
| H1 2024 | H1 2023 | Change | |
| Direct result | 43,706 | 43,200 | 1.2% |
| Indirect result | 50,751 | 13,840 | 266.7% |
| Direct result per share (€) | 0.84 | 0.89 | -6.3% |
| Indirect result per share (€) | 0.84 | 0.40 | 111.6% |
| Total return based on EPRA net tangible assets per share (€) | 1.65 | 1.28 | 28.9% |
| Dividend per share (€) | 1.20 | 1.16 | 3.4% |
| Interest coverage ratio | 4.1x | 5.5x | -25.5% |
| EPRA earnings per share (€) | 0.80 | 0.78 | 2.4% |
| EPRA cost ratio including direct vacancy costs (%) | 24.2% | 30.6% | -6.4 pp |
| 30 Jun 2024 | 31 Dec 2023 | Change | |
| Net debt | 964,363 | 915,817 | 5.3% |
| Net loan-to-value (%) | 43.0% | 42.7% | 0.3 pp |
| EPRA loan-to-value (%) | 48.1% | 47.9% | 0.2 pp |
| IFRS net asset value per share (€) | 22.54 | 22.09 | 2.0% |
| EPRA net tangible assets per share (€) | 22.35 | 21.90 | 2.1% |
| EPRA net reinstatement value per share (€) | 25.59 | 25.06 | 2.1% |
| EPRA net disposal value per share (€) | 23.49 | 22.52 | 4.3% |
| Number of ordinary shares in issue | 43,876,129 | 43,876,129 | 0.0% |
| Number of ordinary shares for net asset value | 43,619,965 | 43,661,957 | -0.1% |
| EPRA vacancy rate total portfolio (%) | 5.1% | 4.2% | 0.9 pp |
| EPRA net initial yield (%) | 6.0% | 6.3% | -0.3 pp |
| Shopping Centers portfolio metrics | 30 Jun 2024 | 31 Dec 2023 | Change |
| Number of assets | 21 | 21 | 0.0% |
| Surface owned (x 1,000m2)¹ | 629 | 627 | 0.2% |
| Like-for-like net rental income growth (%) | 1.4% | 7.9% | -6.5 pp |
| Occupancy rate | 95.7% | 96.6% | -0.9 pp |
| Theoretical rent (€/m2) | 250 | 248 | 0.8% |
| ERV (€/m2) | 241 | 231 | 4.3% |
| Footfall growth | 5.5% | 8.2% | -2.7 pp |
| Proportion of mixed-use Benelux (in m2) | 14.5% | 14.1% | 0.4 pp |
¹ Excluding developments
For Wereldhave, the first half of 2024 was primarily characterized by decent operational results and by the newly assigned public investment grade credit rating from Fitch (BBB, outlook stable).
In the first six months of this year we noticed that visitor numbers in our core markets increased by 5.5%, an outperformance of both the Dutch and Belgian shopping center markets. Our Full Shopping Centers even showed a visitor growth of 9.4%.
Our H1 2024 direct result has been impacted by bankruptcies, refinancing costs and one-off negative service charge settlements. For the second half of 2024, however, we expect to see an improvement, as most of the vacancies have now either been leased (including all Big Bazar units among others) or are under advanced discussion with prospective tenants. In addition, the recent credit rating upgrade by Fitch and the ECB rate cut in June, combined with the competitive cost of recent and upcoming refinancings (USPP), will help to reduce financial expenses.
Improving rental markets, combined with the success of our Full Service Center concept, continue to drive positive valuation results. This is visible not only in the Netherlands, where values increased a further 1.4% during H1 2024, but also in Belgium, where there was a valuation increase of 4.9%. Only the French portfolio saw a valuation decline, which is the effect of a low yielding French market. Estimated rental values (ERVs) in our core portfolio remain conservative, and remain underpinned by our leasing results, which were 12.3% ahead of ERVs.
Even though there are no Full Service Center (FSC) transformation completions scheduled for 2024, we are making significant progress on current transformation projects, and we started the FSC transformation of our Kronenburg center in Arnhem. We signed a package deal with Yellow Gym for two new locations in recent FSC completions, in Hoofddorp and Tilburg respectively, among others. In Full Service Center Presikhaaf, we celebrated the opening of our Healthcare cluster, and several new retailers have signed up for our fresh food concept every.deli in Hoofddorp and Nieuwegein. Deals such as these continue to drive the resilience of our portfolio, with daily life retail now comprising 67% of our floor space, compared with approximately 50% when the strategy was first launched.
In May we announced the newly assigned BBB credit rating from Fitch. This rating recognizes and rewards all the actions that we as a company have taken in recent years to strengthen our balance sheet. The new rating has an immediate recurring savings effect on interest costs, via rating triggers in our Revolving Credit Facilities (RCFs). The sale of four French assets in 2021 was painful at the time but truly marked the financial turnaround, and is now enabling us to arrange new credit facilities at competitive terms. In July 2024, we reached agreement with several institutions for new US Private Placements (USPP) totaling € 119m, with a weighted average term of five years, at an average cost below 5%. Our continued focus on cost efficiencies resulted in a significantly lower EPRA Cost Ratio of 24.2% (H1 2023: 30.6%).
During the first six months of this year, to optimize our capital allocation and further reduce our LTV ratio to below 40%, our teams have also worked hard to prepare for disposals and explore the potential of joint ventures (JVs) for our Dutch portfolio. We expect to report on these disposals and/or JVs in the second half of 2024. It is clear that investor interest in our FSC's is strong.
We are looking forward to 19 September, when we anticipate that more clarity will be provided during the annual Dutch Government budget statement ('Prinsjesdag') with regards to a number of important tax matters for our sector. For now, we reiterate our forecast of a direct result per share of € 1.75 for 2024.
Matthijs Storm, CEO
Amsterdam, 23 July 2024
| H1 2024 | H1 2023 | |||
|---|---|---|---|---|
| (x € 1,000) | Direct result | Indirect result | Direct result | Indirect result |
| Gross rental income | 83,047 | - | 76,555 | - |
| Service costs charged | 12,597 | - | 13,686 | - |
| Total revenues | 95,644 | - | 90,241 | - |
| Service costs paid | -16,465 | - | -16,911 | - |
| Property expenses | -11,156 | - | -10,429 | - |
| Total expenses | -27,621 | - | -27,340 | - |
| Net rental income | 68,023 | - | 62,901 | - |
| Valuation results | - | 52,566 | - | 19,380 |
| Results on disposals | - | -117 | - | -16 |
| General costs | -6,182 | -1,465 | -5,953 | -4,985 |
| Other income and expense | - | -265 | 3 | -327 |
| Operational result | 61,840 | 50,719 | 56,951 | 14,051 |
| Interest charges | -18,140 | - | -13,597 | - |
| Interest income | 102 | - | - | - |
| Net interest | -18,038 | - | -13,597 | - |
| Other financial income and expense | - | 32 | - | -212 |
| Result before tax | 43,803 | 50,751 | 43,353 | 13,840 |
| Income tax | -97 | - | -153 | - |
| Result | 43,706 | 50,751 | 43,200 | 13,840 |
| Profit attributable to: | ||||
| Shareholders | 36,528 | 36,814 | 35,757 | 15,805 |
| Non-controlling interest | 7,178 | 13,937 | 7,444 | -1,965 |
| Result | 43,706 | 50,751 | 43,200 | 13,840 |
| Result per share (€) | 0.84 | 0.84 | 0.89 | 0.40 |
Our direct result for H1 2024 totaled € 43.7m, representing a direct result per share (DRPS) of € 0.84. Gross rental income amounted to € 83.0m, up from € 76.6m, half of which was the result of the acquisition of the Polderplein center in Hoofddorp in December 2023. Direct general costs amounted to € 6.2m, up from € 6.0m in H1 2023, in line with inflation.
We are pleased to see that the EPRA cost ratio has fallen from more than 30% to 24.2%, a result of improved operational efficiency.
Net interest expense increased to € 18.0m from € 13.6m in H1 2022. This was due to increased benchmark interest rates, which affected the cost of the the variable floating rate portion part of our debt portfolio, the refinancing of maturing debt at the higher actual market rates, and higher net debt related to dividend pay-out, the capital expenditure and the debt financed portion of the acquisition of the Polderplein center.
Our indirect result for H1 2024 amounted to € 50.8m, mainly due to the significant upward revaluation of € 52.6m in our property portfolio, of which € 41.0m related to the Belgian portfolio.
As at 30 June 2024, our European Public Real Estate Association (EPRA) net tangible assets (NTA) stood at € 22.35 per share, an increase of 2.1% compared with six months previously. Our NTA benefited from our positive direct and indirect result, offset by the dividend of € 1.20 per share paid to shareholders in May 2024. Our total return for H1 2024 therefore came in at € 1.65 per share.
In H1 2024, the value of our properties increased by € 52.6m (equivalent to 2.4% of the portfolio's total like-for-like value), mainly driven by an increase in the ERV component in the valuations. Underpinning our strategy, we saw continuing yield compression in our Full Service Centers. By the end of H1 2024, our portfolio's average EPRA Net Initial Yield (NIY) stood at 6.0% (31 December 2023: 6.3%).
In line with our LifeCentral strategy, we are continuing to transform our centers into Full Service Centers. Nine of our locations already qualify as Full Service Centers, with four more currently undergoing transformation work. We track the performance of our centers based on their transformation status: 'Full Service Center' is used to refer to those that have already been transformed; 'In Transformation' for those undergoing transformation work; and 'Shopping Center' for the remaining locations.
The results show significant positive performance for our Full Service Centers, especially on the leasing side, with new leases signed in line with previous rents, on top of indexation (MGR Uplift), and significantly above the properties' estimated rental value (ERV).
Total property return from these nine assets was 10.6% in H1 2024.
| KPI Core portfolio | Full Service Center | In Transformation | Shopping Center |
|---|---|---|---|
| Centers in Belgium and Netherlands excluding retailparks | 9 | 4 | 4 |
| Mixed Use Percentage | 17.3% | 13.7% | 8.7% |
| MGR Uplift | 2.1% | 2.3% | -4.4% |
| MGR vs. ERV | 12.2% | 10.1% | 11.0% |
| Tenant Sales vs. H1 2024 | 2.6% | 3.4% | -0.8% |
| Footfall vs. H1 2023 | 9.4% | 2.1% | -6.2% |
| Direct Result | 6.3% | 6.4% | 6.8% |
| Valuation Result | 4.3% | 0.8% | 4.2% |
| Total Property Return¹ | 10.6% | 7.2% | 11.0% |
¹ According to MSCI definition, annualized
In the first half of 2024, we continued to work on all elements of our LifeCentral strategy. In total, 121 leases were signed or renewed for shopping centers, on average at 9% above market rent (ERV).
Full Service Center Sterrenburg in Dordrecht, opened in 2023, was awarded the annual Kern 2024 development award for best shopping center in the Netherlands. After signing terStal and Kruidvat, Sterrenburg is now fully let, with a mixed-use percentage of around 20%, and tenants including Basic-Fit, Jumbo Foodmarkt, RegioBank and an every.deli fresh cluster with a variety of artisanal fresh food shops.
In June, we celebrated the inauguration of the first health&fit cluster in FSC Presikhaaf (Arnhem) and, together with the municipality and development partners, the official start of the FSC transformation of Kronenburg in Arnhem. The first phase of this development will see the development of a new entrance, a new eat&meet square and a 3,500m² Jumbo supermarket.
In the Netherlands, we signed a total of 81 new leases, which were, on average, 10% above market rent levels. In H1 2024, a package deal was signed with variety store Normal for three new leases, in Capelle aan den IJssel, Heerhugowaard, and Nieuwegein. Before commencing the development of Kronenburg, we signed the lease for the Jumbo supermarket. In Cityplaza Nieuwegein, several key leases were extended, including with MediaMarkt and New Yorker among others. Our partnership with terStal has been strengthened with two new leases in Nieuwegein and Dordrecht. Finally, The Game Box unit in Hoofddorp will start fit-out construction in Q3, and is set to open by the end of 2024.
The first weeks of Q3 have seen considerable activity from a commercial perspective, with several large package deals closing in the Dutch portfolio, including with fitness formula Yellow Gym among others. Yellow Gym is set to open two new gyms, in Hoofddorp and Tilburg respectively, increasing the mixed-use offering in these FSCs.
Occupancy in the Netherlands decreased slightly to 95.2%, but will soon benefit from new leases signed. Footfall in the Netherlands in Q2 2024 was 4.2% higher than in Q2 2023. Tenants reported 4% higher sales in H1 2024 compared with H1 2023.
The valuation result of the Dutch portfolio in H1 2024 was up 1.4%, mainly driven by higher market rents.
The first half of the year saw stable operating results in Belgium despite a more challenging leasing market with a number of bankruptcies.
Leasing activity in H1 2024 resulted in 34 signed contracts: 32 for shopping centers and two for offices, all signed at terms significantly above both market value (ERV) and previous rent (MGR uplift). These leases included a lease for fashion and household retailer Juttu for our Belle-Île center in Liège, and for fashion retailer Jack & Jones, among others. A package deal was signed with Bijouterie Histoire d'Or for our centers in Nivelles and Courtrai. Two former Grand Optical units were released to Pearle after the bankruptcy of Grand Optical, exceeding previous rent levels. In Tournai, there were lease extensions – including a relocation – of Rituals, we welcomed Chaussea fashion (1,725m²), and there were lease renewals for ZEB Fashion and Action in the retail park. A new lease was signed with Prego Italian food in Liège.
Overall, shopping center occupancy in Belgium decreased by 0.5 percentage point in Q2 2024. Visitor numbers to the various shopping centers in our portfolio were 4.5% higher in H1 2024 compared with the same period in 2023, while tenants reported 1% higher sales in H1 2024 compared with H1 2023.
The revaluation of the Belgian shopping center portfolio in H1 2024 was +4.9%, mainly driven by higher market rents, partly offset by a yield shift.
Eight new leases were signed for the two centers in France, including New Yorker in both centers and Chaussea and mobile phone operator Free in Côté Seine, Paris, among others.
The occupancy rate of shopping centers in France remained stable and stood at 94.6% at the end of Q2 2024. Visitor numbers in France in the second quarter of 2024 were 5.0% higher than in the same period last year, boosted by the full operation of the new F&B area in Mériadeck, Bordeaux, and the replacement of the Casino supermarket by Carrefour in Côté Seine, Paris. As a comparison, the French market showed a 1.1% increase in visitors. Tenant sales for the second quarter of 2024 were 4% higher than the same period last year.
Commercial real estate valuations in France were influenced by lower market rents. This resulted in a revaluation of our French portfolio of -1.9%.
| Q2 2023 Q3 2023 |
Q4 2023 Q1 2024 |
Q2 2024 | |||
|---|---|---|---|---|---|
| Belgium | 96.4% | 97.0% | 98.2% | 97.1% | 96.6% |
| France | 94.6% | 94.5% | 96.6% | 94.6% | 94.6% |
| Netherlands | 95.6% | 95.4% | 95.5% | 95.3% | 95.2% |
| Shopping centers | 95.8% | 95.9% | 96.6% | 95.9% | 95.7% |
| Offices (Belgium) | 86.2% | 85.2% | 84.7% | 85.5% | 84.0% |
| Total portfolio | 95.2% | 95.2% | 95.8% | 95.3% | 94.9% |
| # of contracts | Leasing volume | MGR vs. ERV | MGR uplift | Occupancy rate | LFL NRI growth | |
|---|---|---|---|---|---|---|
| Shopping centers | ||||||
| Belgium | 32 | 5.5% | 16.6% | 7.4% | 96.6% | 0.8% |
| France¹ | 8 | 4.9% | -30.7% | -72.3% | 94.6% | -16.6% |
| Netherlands | 81 | 8.1% | 10.4% | -1.1% | 95.2% | 5.0% |
| Total | 121 | 6.9% | 8.7% | -1.1% | 95.7% | 1.4% |
¹ Based on two leases and expected total rental impact of € 175K
| Shopping centers | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 |
|---|---|---|---|---|---|
| Belgium | 5.4% | 7.3% | 3.6% | 4.4% | 4.5% |
| France | 0.4% | 4.7% | 5.5% | 10.0% | 5.0% |
| Netherlands | 6.6% | 3.6% | 6.6% | 6.6% | 4.2% |
| Overall | 5.5% | 4.5% | 5.8% | 6.5% | 4.4% |
Wereldhave's strategy is focused on anticipating long-term trends by transforming our locations into strong, future-proof Full Service Centers. To maximize long-term value creation for shareholders, we focus only on those centers that will deliver above market total returns. We call this our LifeCentral strategy, which will be rolled out at a controlled pace.
| (x € 1,000) | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Belgium | 24,938 | 25,336 | -1.6% |
| France | 4,140 | 4,811 | -13.9% |
| Netherlands | 35,826 | 31,019 | 15.5% |
| Total shopping centers | 64,904 | 61,167 | 6.1% |
| Offices | 3,119 | 1,734 | 79.8% |
| Total | 68,023 | 62,901 | 8.1% |
| Number of assets |
Surface owned¹ | Annualized gross rent¹,² |
Net value | Revaluation | EPRA NIY | |
|---|---|---|---|---|---|---|
| Belgium | 8 | 215.9 | 55.2 | 896.6 | 4.9% | 5.8% |
| France | 2 | 43.6 | 11.3 | 173.9 | -1.9% | 4.4% |
| Netherlands | 11 | 369.0 | 81.1 | 1,059.0 | 1.4% | 6.2% |
| Total shopping centers | 21 | 628.5 | 147.6 | 2,129.5 | 2.6% | 5.9% |
| Offices | 2 | 63.3 | 8.1 | 101.6 | -0.7% | 7.4% |
| Total | 23 | 691.8 | 155.7 | 2,231.1 | 2.4% | 6.0% |
¹ Excluding developments
² As per 30 June 2024, excluding parking income
Full Service Center transformations are undertaken on a step-by-step basis – an agile approach that reduces risks during development. In 2023, we delivered four more Full Service Centers, taking us to nine in total. Thanks to the speed with which we have executed our LifeCentral strategy to date, we are able to take our time with transformations in 2024, thereby spreading capital expenditure and avoiding high construction costs and interest rates. In 2024, we will nonetheless continue work on phase 1 of our transformation of Kronenburg in Arnhem, in addition to the Cityplaza transformation in Nieuwegein, and commence the transformations of Middenwaard in Heerhugowaard and Nivelles Shopping in Nivelles.
| LifeCentral Developments (In €m) | Total investment |
Actual costs to date |
Estimated H2 2024 |
Estimated capex after 2024 |
Unlevered IRR |
Occupancy | Planned Delivery |
|---|---|---|---|---|---|---|---|
| Committed | |||||||
| Kronenburg | 22 | 7 | 4 | 10 | 8% | 96% | 2025 |
| Other FSC transformations | 23 | 6 | 7 | 10 | >8% | N.A. | 2024 & 2025 |
| Total committed | 45 | 13 | 11 | 20 |
As at 30 June 2024, shareholders' equity – including non-controlling interests – amounted to € 1,225.0m (compared with € 1,119.2m as at 31 December 2023). The number of outstanding shares remained unchanged at 43,876,129 ordinary shares. A total of 256,164 treasury shares are held by the Company.
| € per share | 30 June 2024 | 31 December 2023 | Change |
|---|---|---|---|
| IFRS NAV | 22.54 | 22.09 | 2.0% |
| EPRA NRV | 25.59 | 25.06 | 2.1% |
| EPRA NTA | 22.35 | 21.90 | 2.1% |
| EPRA NDV | 23.49 | 22.52 | 4.3% |
We continued our funding activities in 2024, significantly improving our debt maturity profile. In January 2024, a new, renowned bank, agreed to an initial participation of € 25m in our corporate syndicated Revolving Credit Facility. In July 2024, we signed new USPP debt with four institutions, equivalent to € 119m, with a weighted average tenor of five years and a weighted average cost below 5%. Wereldhave Belgium reached an agreement with a Belgian bank to extend a total € 65m in credit facilities – which were originally set to expire in the second quarter of 2024 – until 2028 (€ 30m) and 2029 (€ 35m).
As at 30 June 2024, interest-bearing debt totaled € 984.0m, which together with a cash balance of € 19.6m resulted in a net debt position of € 964.4m. Undrawn borrowing capacity increased by € 91m to € 218m, following the settlement of USD 75m new US Private Placement debt (USPP) – signed in 2023 and replacing RCF drawings – and the increase by € 25m of the syndicated Revolving Credit Facility (RCF).
Our net loan-to-value (LTV) ratio stood at 43.0% (compared with 42.7% at year-end 2023). This slight increase was due to funding for our transformation capex program and the funding for dividend distribution, partly offset by positive property revaluations. As at 30 June 2024, Wereldhave's gross LTV stood at 43.9% (unchanged compared with year-end 2023), well below our bank covenant limit of 60%. The entire debt portfolio is unencumbered.
Our disciplined capital allocation framework is focused on maintaining a strong balance sheet, delivering outperforming long-term value growth for shareholders through its investments, and returning appropriate dividends to shareholders. We are continuing to target an LTV ratio between 35-40%, by disposing our remaining two French assets, and by selected Dutch disposals.
To maintain acceptable leverage and long-term growth, our management's policy is to allocate our Company's recurring income in part to finance investments needed under the LifeCentral strategy, and in part in dividends to shareholders.
In line with our LifeCentral strategy, we continue to transform our centers into Full Service Centers. Nine of our commercial centers now qualify as Full Service Centers (FSCs). Meanwhile we have invested 71% of our planned LifeCentral capital expenditures. At present, there are four ongoing transformations. These are being undertaken in separate phases so as to spread capital expenditure, with full completion planned for 2026. Our FSCs continue to perform well on their KPIs, including total return, net promoter score (NPS), leasing spread, footfall and occupancy. By the end of H1 2024, 14.5% of our core portfolio was devoted to mixed-use tenants, compared with 14.1% at year-end 2023. The daily life tenant base increased to 67% of our rent roll, up from 66% in 2023, further increasing the defensive character of our rent roll.
We frequently compile and analyze customer feedback to improve our centers' performance. These insights support our plans for improving the tenant mix, look and feel, public spaces, ambience, concepts and services, in addition to being used in the transformation plans for our Full Service Centers and business planning in general. Despite ongoing transformations, our NPS score in H1 2024 remained stable at +24 compared with H1 2023, while finalized Full Service Centers clearly outperform. To
further improve the customer experience in our centers, we have started working with a new feedback tool in select Belgian and Dutch centers. The new tool channels customer feedback from different sources in a single dashboard, to enable center management teams to follow-up. If it proves successful, the tool will be introduced into more centers in the future.
To strengthen the attractiveness of health tenants and to create a new visiting alibi for Full Service Center Presikhaaf, we recently opened the healthcare-cluster 'health&fit' in cooperation with tenants. The impact and commercial synergy of this first health&fit cluster will be evaluated in the coming months to determine further development and roll-out of the concept.
After successful implementations in Belgium, we are now piloting our first Recycle Wall in Winkelhof, the Netherlands. In addition, a completely refurbished service hub the point opened in July in Nivelles. Furthermore, all Belgian centers now feature our center fragrance concept, which we have also implemented in our centers in Nieuwegein and Purmerend in the Netherlands.
In addition to the improvement of our visitors' customer experience, we are also focused on improving the tenant experience. In cooperation with our market research agency, we have organized a customer satisfaction survey across our tenants and business partners. The results of this survey will be used to evaluate and further improve our service to tenants.
To drive store footfall and sales, we supported more than 30 of our tenants with made-to-measure store opening activities and commercial support activities in H1 2024.
Central to our ESG work is 'A Better Tomorrow', our 2030 sustainability program, which is linked to our LifeCentral strategy.
Our ESG program A Better Tomorrow was developed to provide a roadmap from 2020 to 2030, with intermediate targets for 2025. It aligns with the Sustainable Development Goals (SDGs) that are relevant to Wereldhave and includes elements from leading ESG benchmarks such as GRESB and BREEAM. The program is based on three focus areas, each with clear ambitions:
In 2024, we will continue the progress achieved in 2023, in which we secured a 10th consecutive five-star GRESB rating and went live with our new smart energy system, among other things. Within the scope of the Better Footprint pillar, we have developed roadmaps for all our centers in the Netherlands and Belgium, which set out clear priorities to reduce our carbon footprint, in line with 2030 SBTi targets and our Paris Proof commitment.
In H1 2024, we formed our project teams to further prepare for upcoming changes in sustainability reporting and disclosure regulations, in line with the EU Taxonomy and the Corporate Sustainability Reporting Directive (CSRD). We are on track to implement these directives on time. We completed Physical Climate Risk Assessment aligned with the EU Taxonomy and Framework for Climate Adaptive Buildings (FCAB).
As we have already achieved our 2030 carbon emissions reduction target, we are examining the need for an updated ambition that will tackle real estate decarbonization challenges and maximize opportunities in our markets.
To accelerate the progress of our assets in the scope of A Better Tomorrow, a dedicated technical Project Manager for Sustainability joined Wereldhave on 1 April 2024.
We maintain our 2024 direct result per share (DRPS) outlook of € 1.75.
Wereldhave will host a webcast at 10:00 CET today to present its H1 2024 results. Access to the webcast will be available through https://www.wereldhave.com/investor-relations/conference-calls-webcasts/. Questions may be forwarded by e-mail to [email protected] prior to the webcast.
| (x € 1,000) | Note | 30 June 2024 | 31 December 2023 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Investment property in operation | 2,218,211 | 2,142,476 | |
| Lease incentives | 5,298 | 5,340 | |
| Investment property under construction | 7,595 | 14,595 | |
| Investment property | 5 | 2,231,104 | 2,162,411 |
| Property and equipment | 5,282 | 5,455 | |
| Intangible assets | 129 | 162 | |
| Derivative financial instruments | 15,407 | 14,107 | |
| Other financial assets | 6,223 | 6,209 | |
| Total non-current assets | 2,258,145 | 2,188,344 | |
| Current assets | |||
| Trade and other receivables | 51,562 | 49,308 | |
| Tax receivables | 208 | 554 | |
| Derivative financial instruments | 16,155 | 13,775 | |
| Cash and cash equivalents | 19,596 | 25,544 | |
| Total current assets | 87,521 | 89,181 | |
| Total assets | 2,345,666 | 2,277,525 | |
| (x € 1,000) | Note | 30 June 2024 | 31 December 2023 |
| Equity and Liabilities | |||
| Equity | ||
|---|---|---|
| Share capital | 43,876 | 43,876 |
| Share premium | 1,759,213 | 1,759,213 |
| Reserves | -819,977 | -838,608 |
| Attributable to shareholders | 983,112 | 964,481 |
| Non-controlling interest | 241,840 | 234,752 |
| Total equity | 1,224,952 | 1,199,233 |
| Non-current liabilities | ||
| Interest-bearing liabilities 7 |
755,305 | 796,568 |
| Derivative financial instruments | 16,888 | 20,334 |
| Other long-term liabilities | 28,223 | 27,698 |
| Total non-current liabilities | 800,415 | 844,600 |
| Current liabilities | ||
| Trade payables | 8,952 | 8,791 |
| Tax payable | 4,022 | 3,079 |
| Interest-bearing liabilities 7 |
228,655 | 144,794 |
| Other short-term liabilities | 78,670 | 77,028 |
| Total current liabilities | 320,299 | 233,692 |
| Total equity and liabilities | 2,345,666 | 2,277,525 |
| (x € 1,000) | Note | H1 2024 | H1 2023 |
|---|---|---|---|
| Gross rental income | 83,047 | 76,555 | |
| Service costs charged | 12,597 | 13,686 | |
| Total revenue | 95,644 | 90,241 | |
| Service costs paid | -16,465 | -16,911 | |
| Property expenses | -11,156 | -10,429 | |
| Net rental income | 9 | 68,023 | 62,901 |
| Valuation results | 52,566 | 19,380 | |
| Results on disposals | -117 | -16 | |
| General costs | -7,647 | -10,939 | |
| Other income and expense | -265 | -325 | |
| Operating result | 112,560 | 71,001 | |
| Interest charges | -18,140 | -13,597 | |
| Interest income | 102 | - | |
| Net interest | -18,038 | -13,597 | |
| Other financial income and expense | 32 | -212 | |
| Result before tax | 94,554 | 57,193 | |
| Income tax | -97 | -153 | |
| Result for the year | 94,457 | 57,040 | |
| Result attributable to: | |||
| Shareholders | 73,342 | 51,561 | |
| Non-controlling interest | 21,115 | 5,479 | |
| Result for the year | 94,457 | 57,040 | |
| Basic earnings per share (€) | 1.68 | 1.29 | |
| Diluted earnings per share (€) | 1.68 | 1.29 |
| (x € 1,000) | H1 2024 | H1 2023 |
|---|---|---|
| Result | 94,457 | 57,040 |
| Items that may be recycled to the income statement subsequently | ||
| Effective portion of change in fair value of cash flow hedges | -564 | -5,536 |
| Changes in fair value of cost of hedging | -53 | -436 |
| Total comprehensive income | 93,840 | 51,068 |
| Attributable to: | ||
| Shareholders | 72,725 | 45,589 |
| Non-controlling interest | 21,115 | 5,479 |
| 93,840 | 51,068 |
| Attributable to shareholders | ||||||||
|---|---|---|---|---|---|---|---|---|
| Cost of | Non | |||||||
| Share | Share | General | Hedge | hedging | Total attributable | controlling | ||
| (x € 1,000) | capital | premium | reserve | reserve | reserve | to shareholders | interest | Total equity |
| Balance as at 1 January 2023 | 40,271 | 1,711,033 | -871,726 | 5,137 | 967 | 885,682 | 237,561 | 1,123,243 |
| Comprehensive income | ||||||||
| Result | - | - | 51,561 | - | - | 51,561 | 5,479 | 57,040 |
| Effective portion of change in fair value of cash flow | ||||||||
| hedges | - | - | - | -5,536 | - | -5,536 | - | -5,536 |
| Changes in fair value of cost of hedging | - | - | - | -436 | -436 | - | -436 | |
| Total comprehensive income | - | - | 51,561 | -5,536 | -436 | 45,589 | 5,479 | 51,068 |
| Transactions with shareholders | ||||||||
| Shares for remuneration | - | - | -709 | - | - | -709 | - | -709 |
| Share based payments | - | - | 752 | - | - | 752 | - | 752 |
| Dividend | - | - | -46,455 | - | - | -46,455 | -12,652 | -59,107 |
| Change non-controlling interest | - | - | - | - | - | - | - | - |
| Balance as at 30 June 2023 | 40,271 | 1,711,033 | -866,576 | -399 | 531 | 884,860 | 230,387 | 1,115,247 |
| Balance as at 1 January 2024 | 43,876 | 1,759,213 | -837,865 | -1,046 | 303 | 964,481 | 234,752 | 1,199,233 |
| Comprehensive income | ||||||||
| Result | - | - | 73,342 | - | - | 73,342 | 21,115 | 94,457 |
| Effective portion of change in fair value of cash flow | ||||||||
| hedges | - | - | - | -564 | - | -564 | - | -564 |
| Changes in fair value of cost of hedging | - | - | - | -53 | -53 | - | -53 | |
| Total comprehensive income | - | - | 73,342 | -564 | -53 | 72,725 | 21,115 | 93,840 |
| Transactions with shareholders | ||||||||
| Shares for remuneration | - | - | -3,237 | - | - | -3,237 | - | -3,237 |
| Share based payments | - | - | 867 | - | - | 867 | - | 867 |
| Dividend | - | - | -52,466 | - | - | -52,466 | -12,329 | -64,795 |
| Change non-controlling interest | - | - | 742 | - | - | 742 | -1,698 | -956 |
| Balance as at 30 June 2024 | 43,876 | 1,759,213 | -818,617 | -1,610 | 250 | 983,112 | 241,840 | 1,224,952 |
| (x € 1,000) | H1 2024 | H1 2023 |
|---|---|---|
| Operating activities | ||
| Result | 94,457 | 57,040 |
| Adjustments: | ||
| Valuation results | -52,566 | -19,380 |
| Net interest | 18,038 | 13,597 |
| Other financial income and expense | -32 | 212 |
| Results on disposals | 117 | 16 |
| Taxes | 97 | 153 |
| Amortization | 553 | 735 |
| Movements in working capital | 1,674 | 6,260 |
| Cash flow generated from operations | 62,338 | 58,632 |
| Interest paid | -14,600 | -10,705 |
| Income tax | -125 | -35 |
| Cash flow from operating activities | 47,612 | 47,893 |
| Investment activities | ||
| Proceeds from disposals direct investment properties | -117 | 1,360 |
| Investments in investment property | -18,654 | -45,421 |
| Investments in equipment | -110 | -288 |
| Investments in financial assets | -27 | 53 |
| Cash flow from investing activities | -18,908 | -44,296 |
| Financing activities | ||
| Proceeds from interest-bearing debts | 123,768 | 82,907 |
| Repayment interest-bearing debts | -89,162 | -20,550 |
| Movements in other long-term liabilities | -272 | -1,007 |
| Other movements in reserves | -3,236 | -709 |
| Transactions non-controlling interests | -956 | - |
| Dividend paid | -64,795 | -59,107 |
| Cash flow from financing activities | -34,652 | 1,534 |
| Increase/decrease in cash and cash equivalents | -5,948 | 5,131 |
| Cash and cash equivalents as at 1 January | 25,544 | 14,353 |
| Cash and cash equivalents as at 30 June | 19,596 | 19,484 |
Wereldhave N.V. ("the Company") is an investment company which invests in real estate (shopping centers and offices). The property portfolio of Wereldhave N.V. and its subsidiaries ('the Group') is located in Belgium, France and the Netherlands. The Group is principally involved in leasing investment property under operating leases. The property management is performed by Group management companies. The Company is a limited liability company incorporated and domiciled in the Netherlands. The address of the Company's registered office is Nieuwe Passeerdersstraat 1, 1016 XP Amsterdam. The shares of the Company are listed on the Euronext Stock Exchange in Amsterdam.
Wereldhave N.V. has the tax status of an investment company (FBI status) in accordance with section 28 of the Dutch "Wet op de Vennootschapsbelasting 1969". This status assumes that the Group is (almost) exclusively engaged in portfolio investment activities. As a consequence, corporation tax is due at a rate of 0% in the Netherlands, provided that certain conditions are met. The main conditions concern the requirement to distribute the taxable result as a dividend and restrictions with regard to the leverage. The taxable result of Wereldhave N.V. must be distributed as a dividend to its shareholders within eight months after the year during which the result was made. In general terms, the leverage restrictions imply that investments in real estate (including qualifying real estate companies) may only be financed through debt up to a maximum of 60% of their value. For investments in other assets the maximum level of debt allowed is only 20%. There is no requirement to include capital gains arising from the disposal of investments, in the result to be distributed.
In 2023, the Dutch government enacted a bill to amend the tax regime that is applicable to fiscal investment institutions (FBI regime). As a result of this amendment, Dutch real estate investors that previously benefited from the 0% corporate income tax rate under the FBI regime will become subject to the regular 25.8% Dutch corporate income tax rate as per 1 January 2025. Since the tax base of the real estate investment must be reset to fair market value as per 31 December 2024, we do not expect any current or deferred tax impact resulting from the amendment before 1 January 2025.
The subsidiaries in Belgium (OGVV status) and France (SIIC status) have a similar status. In Belgium the net value of one single asset may not exceed 20% of the total Belgian portfolio. Our largest asset in Belgium, Belle-Ile, is below this threshold of 20% as at 30 June 2024.
The principal accounting policies applied in the preparation of these condensed consolidated interim financial statements for the period ended 30 June 2024 are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. The figures in this press release are unaudited.
This condensed consolidated interim financial information for the six months ended 30 June 2024 has been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated interim financial information should be read in conjunction with the financial statements for the year ended 31 December 2023, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
The Group presents a separate "statement of profit or loss" and "other comprehensive income".
The Group reports cash flows from operating activities using the indirect method. Interest received and interest paid is presented within operating cash flows. The acquisitions of investment properties are disclosed as cash flows from investing activities as this most appropriately reflects the Group's business activities
These condensed consolidated interim financial statements for the period ended 30 June 2024 have been prepared on a going concern basis, applying a historical cost convention, except for the measurement of investment property and derivative financial instruments that have been measured at fair value. The preparation of these condensed consolidated interim financial statements in conformity with EU-IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Changes in assumptions may have a significant impact on the condensed consolidated interim financial statements in the period during which the assumptions changed. Management believes that the underlying assumptions are appropriate.
Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2023. The following standards became effective as of 1 January 2024, but did not have an impact on the condensed consolidated financial information:
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2024, and have not been applied in preparing the financial information:
These amendments are not expected to have a significant impact on the Company's condensed consolidated financial information.
| (x € 1,000) | Belgium | France | Netherlands | Head office | Total |
|---|---|---|---|---|---|
| Result | |||||
| Gross rental income | 35,384 | 5,615 | 42,048 | - | 83,047 |
| Service costs charged | 4,907 | 1,739 | 5,951 | - | 12,597 |
| Total revenue | 40,291 | 7,354 | 47,999 | - | 95,644 |
| Service costs paid | -6,985 | -2,508 | -6,972 | - | -16,465 |
| Property expenses | -5,250 | -706 | -5,201 | - | -11,156 |
| Net rental income | 28,057 | 4,140 | 35,826 | - | 68,023 |
| Valuation results | 41,041 | -3,296 | 14,821 | - | 52,566 |
| Results on disposals | -116 | - | - | -1 | -117 |
| General costs | -2,413 | -269 | -1,850 | -3,115 | -7,647 |
| Other income and expense | -121 | - | - | -144 | -265 |
| Operating result | 66,448 | 576 | 48,797 | -3,261 | 112,560 |
| Interest charges | -4,486 | -8,844 | -10,959 | 6,150 | -18,140 |
| Interest income | 102 | - | - | - | 102 |
| Other financial income and expense | 465 | - | - | -433 | 32 |
| Income tax | -35 | -29 | -33 | - | -97 |
| Result | 62,493 | -8,298 | 37,805 | 2,456 | 94,457 |
| Total assets | |||||
| Investment properties in operation | 989,639 | 173,542 | 1,055,029 | - | 2,218,211 |
| Investment properties under construction | 6,965 | -0 | 630 | - | 7,594 |
| Other segment assets | 52,956 | 7,768 | 281,639 | 573,634 | 915,997 |
| minus: intercompany | -796,136 | -796,136 | |||
| 1,049,560 | 181,310 | 1,337,298 | -222,502 | 2,345,666 | |
| Investments | 5,116 | 996 | 10,109 | - | 16,221 |
| Gross rental income by type of property | |||||
| Shopping centers | 31,595 | 5,615 | 42,048 | - | 79,258 |
| Offices | 3,789 | - | - | - | 3,789 |
| 35,384 | 5,615 | 42,048 | - | 83,047 |
| (x € 1,000) | Belgium | France | Netherlands | Head office | Total |
|---|---|---|---|---|---|
| Result | |||||
| Gross rental income | 33,567 | 5,409 | 37,578 | - | 76,555 |
| Service costs charged | 5,138 | 2,029 | 6,519 | - | 13,686 |
| Total revenue | 38,706 | 7,438 | 44,097 | - | 90,241 |
| Service costs paid | -7,571 | -2,043 | -7,297 | - | -16,911 |
| Property expenses | -4,065 | -584 | -5,781 | - | -10,429 |
| Net rental income | 27,070 | 4,811 | 31,019 | - | 62,901 |
| Valuation results | -2,775 | -2,690 | 24,845 | - | 19,380 |
| Results on disposals | - | - | -16 | - | -16 |
| General costs | -3,305 | -259 | -2,644 | -4,731 | -10,939 |
| Other income and expense | -230 | - | -78 | -17 | -325 |
| Operating result | 20,761 | 1,862 | 53,126 | -4,748 | 71,001 |
| Interest charges | -3,527 | -4,575 | -9,072 | 3,577 | -13,597 |
| Interest income | - | - | - | - | - |
| Other financial income and expense | -1,020 | - | - | 808 | -212 |
| Income tax | -25 | -84 | -44 | - | -153 |
| Result | 16,190 | -2,796 | 44,009 | -363 | 57,040 |
| Total assets | |||||
| Investment properties in operation | 935,433 | 178,423 | 896,432 | - | 2,010,287 |
| Investment properties under construction | 14,318 | - | 29,639 | - | 43,956 |
| Assets held for sale | - | - | 1,673 | - | 1,673 |
| Other segment assets | 54,955 | 3,307 | 274,565 | 862,734 | 1,195,561 |
| minus: intercompany | - | - | - | -1,091,947 | -1,091,947 |
| 1,004,706 | 181,730 | 1,202,308 | -229,213 | 2,159,531 | |
| Investments | 6,071 | 6,122 | 30,183 | - | 42,376 |
| Gross rental income by type of property | |||||
| Shopping centers | 29,990 | 5,409 | 37,578 | - | 72,978 |
| Offices | 3,577 | - | - | - | 3,577 |
| 33,567 | 5,409 | 37,578 | - | 76,555 |
| Investment property in |
Lease | Investment property under |
Total Investment |
|
|---|---|---|---|---|
| (x € 1,000) | operation | incentives | construction | property |
| H1 2024 | ||||
| Balance as at 1 January | 2,142,476 | 5,340 | 14,595 | 2,162,411 |
| Purchases | 488 | - | - | 488 |
| Investments | 15,345 | - | 388 | 15,733 |
| From / to development properties | - | - | - | - |
| To / from investments held for sale | - | - | - | - |
| Disposals | - | - | - | - |
| Valuations | 59,955 | - | -7,388 | 52,567 |
| Other | -53 | -42 | - | -95 |
| Balance as at 30 June | 2,218,211 | 5,298 | 7,595 | 2,231,104 |
| H1 2023 | ||||
|---|---|---|---|---|
| Balance as at 1 January | 1,958,955 | 4,949 | 36,166 | 2,000,070 |
| Purchases | 2,875 | 2,875 | ||
| Investments | 31,710 | - | 7,790 | 39,500 |
| From / to development properties | - | - | - | - |
| To / from investments held for sale | -1,673 | - | - | -1,673 |
| Disposals | - | - | - | - |
| Valuations | 19,380 | - | - | 19,380 |
| Other | -961 | 423 | - | -538 |
| Balance as at 30 June | 2,010,287 | 5,372 | 43,956 | 2,059,615 |
The revaluation during the period is mainly driven by an increase of market rents in the valuations. The negative revaluation of € 7.4m on investment property under construction is the result of the cancellation of two extension projects in Belgium.
| Belgium | France | Netherlands | |
|---|---|---|---|
| 30 June 2024 | |||
| Total market rent per sqm (€) | 237 | 286 | 223 |
| EPRA Net Initial Yield | 6.0% | 4.4% | 6.2% |
| EPRA vacancy rate | 5.2% | 5.4% | 4.8% |
| Average vacancy period (in months) | 9 | 15 | 11 |
| Bandwidth vacancy (in months) | 4-24 | 12-18 | 2-17 |
| 31 December 2023 | |||
| Total market rent per sqm (€) | 216 | 286 | 223 |
| EPRA Net Initial Yield | 6.5% | 4.8% | 6.3% |
| EPRA vacancy rate | 3.9% | 3.4% | 4.5% |
| Average vacancy period (in months) | 12 | 12 | 11 |
| Bandwidth vacancy (in months) | 6-17 | 9-15 | 2-15 |
The authorized capital comprises 75,000,000 million shares each with a nominal value of € 1. As at 30 June 2024, a total of 43,876,129 ordinary shares were issued.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Equity available for shareholders (x € 1,000) | 983,112 | 964,481 |
| Number of ordinary shares | 43,876,129 | 43,876,129 |
| Purchased shares for remuneration | -256,164 | -214,172 |
| Number of ordinary shares for calculation net asset value | 43,619,965 | 43,661,957 |
| Potential ordinary shares to be issued | 74,476 | 68,493 |
| Number of ordinary shares diluted for calculation net asset value | 43,694,441 | 43,730,450 |
| Net asset value per share (x € 1) | 22.54 | 22.09 |
| Net asset value per share diluted (x € 1) | 22.50 | 22.06 |
| (x € 1,000) | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Long term | ||
| Bank loans | 270,958 | 387,137 |
| Private placements | 452,438 | 377,548 |
| Bonds | 31,909 | 31,883 |
| 755,305 | 796,568 | |
| Short term | ||
| Bank loans | 49,989 | 655 |
| Private placements | 103,666 | 101,389 |
| Treasury notes | 75,000 | 42,750 |
| 228,655 | 144,794 | |
| Total interest-bearing liabilities | 983,960 | 941,362 |
| (x € 1,000) | 30 June 2024 | 30 June 2023 |
|---|---|---|
| Balance as at 1 January | 941,362 | 856,803 |
| New funding | 123,768 | 82,850 |
| Repayments | -89,162 | -20,550 |
| Use of effective interest method | 295 | 306 |
| Exchange rate differences | 7,697 | -510 |
| Balance as at 30 June | 983,960 | 918,899 |
The carrying amount and fair value of long term interest-bearing debt is as follows:
| 30 June 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| (x € 1,000) | carrying amount fair value |
carrying amount | fair value | ||
| Bank loans and private placements | 755,305 | 710,158 | 796,568 | 774,443 | |
| Total | 755,305 | 710,158 | 796,568 | 774,443 |
The following table provides the fair value measurement hierarchy of the Group's assets and liabilities:
| (x € 1,000) | Total | Quoted prices (Level 1) |
Fair value measurement using Observable input (Level 2) |
Unobservable input (Level 3) |
|---|---|---|---|---|
| 30 June 2024 | ||||
| Assets measured at fair value | ||||
| Investment property in operation | 2,223,510 | - | - | 2,223,510 |
| Investment property under construction | 630 | - | - | 630 |
| Investments held for sale | - | - | - | - |
| Financial assets | ||||
| Derivative financial instruments | 31,562 | - | 31,562 | - |
| Liabilities for which the fair value has been disclosed | ||||
| Interest-bearing debt | 938,813 | - | 938,813 | - |
| Derivative financial instruments | 16,888 | - | 16,888 | - |
| 31 December 2023 | ||||
| Assets measured at fair value | ||||
| Investment property in operation | 2,147,816 | - | - | 2,147,816 |
| Investment property under construction | 260 | - | - | 260 |
| Financial assets | ||||
| Derivative financial instruments | 27,882 | - | 27,882 | - |
| Liabilities for which the fair value has been disclosed | ||||
| Interest-bearing debt | 919,237 | - | 919,237 | - |
| Derivative financial instruments | 20,334 | - | 20,334 | - |
| Property expenses, service costs and |
||||||
|---|---|---|---|---|---|---|
| Gross rental income | operating costs | Net rental income | ||||
| (x € 1,000) | H1 2024 | H1 2023 | H1 2024 | H1 2023 | H1 2024 | H1 2023 |
| Belgium | 35,384 | 33,567 | 7,328 | 6,497 | 28,057 | 27,070 |
| France | 5,615 | 5,409 | 1,475 | 598 | 4,140 | 4,811 |
| The Netherlands | 42,048 | 37,578 | 6,222 | 6,558 | 35,826 | 31,019 |
| Total | 83,047 | 76,555 | 15,024 | 13,654 | 68,023 | 62,901 |
The Board of Management, the Supervisory Board and subsidiaries of Wereldhave N.V. are considered to be related parties. The members of the Supervisory Board and of the Board of Management had no personal interest in any of the Company's investments during the year.
Related party transactions were made on terms equivalent to those that prevail in arm's length transactions if such terms can be substantiated.
There are no events after balance sheet date.
The Board of Management of Wereldhave N.V., consisting of Matthijs Storm and Dennis de Vreede, hereby declares that, to the best of their knowledge:
The condensed consolidated interim financial statement for the first half year of 2024 gives a true and fair view of the assets, liabilities, financial position and result of Wereldhave N.V. and the companies included in the consolidation as a whole;
The condensed consolidated interim financial statement for the first half year of 2024 provides a true and fair view on the condition as at the balance sheet date and the course of business during the half year under review of Wereldhave N.V. and the related companies of which the data have been included in the financial statement, and the expected course of business, where, in as far as important interest do not oppose, particular attention is paid to the investments and the conditions of which the development of turnover and profitability depend; and
The condensed consolidated interim financial statement for the first half year of 2024 includes a true and fair review of the information required pursuant to section 5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act ("Wet op het financieel toezicht"). Wereldhave considers the market risk, liquidity risk and credit risk as financial risks. The market risk can be divided into interest risk and currency risk. Rapidly changing economic environments and uncertainty about the solidity of the euro(zone) may affect the market circumstances, and thus both the letting prospects as well as the market value of the properties. The continuation of the euro(zone) is assumed.
For further comments we refer to the Annual Report 2023. Our risks are monitored on a continuous basis.
Amsterdam, 23 July 2024
Board of Management Matthijs Storm, CEO Dennis de Vreede, CFO
The EPRA Best Practices Recommendations published on February 2022 by EPRA's Reporting and Accounting Committee contain recommendations for the determination of key performance indicators of the investment property portfolio. The EPRA Best Practices Recommendations enable standardization, transparency and comparability of listed real estate companies across Europe.
| (x € 1,000 unless otherwise noted) | H1 2024 | H1 2023 |
|---|---|---|
| Earnings per IFRS income statement | 94,457 | 57,040 |
| Adjustments to calculate EPRA earnings, exclude: | ||
| Changes in value of investment properties, development properties held for investment and other interests | -52,566 | -19,380 |
| Profits or losses on disposal of investment properties, development properties held for investment and other | ||
| interests | 117 | 16 |
| Changes in fair value of financial instruments and associated close-out costs | -47 | 210 |
| Non-controlling interests in respect of the above | -7,091 | -6,763 |
| EPRA Earnings | 34,869 | 31,123 |
| Weighted average number of shares outstanding during period | 43,646,729 | 40,050,697 |
| EPRA Earnings per share (in €) | 0.80 | 0.78 |
| Company-specific adjustments: | ||
| Non-current operating expenses | 1,730 | 5,314 |
| Non-controlling interests in respect of the above | -62 | -681 |
| Direct Result | 36,537 | 35,806 |
| Direct Result per share (in €) | 0.84 | 0.89 |
| 31 December | 31 December | 31 December | ||||
|---|---|---|---|---|---|---|
| (x € 1,000 unless otherwise noted) | 30 June 2024 | 30 June 2024 | 30 June 2024 | 2023 | 2023 | 2023 |
| EPRA NRV | EPRA NTA | EPRA NDV | EPRA NRV | EPRA NTA | EPRA NDV | |
| IFRS Equity attributable to shareholders | 983,112 | 983,112 | 983,112 | 964,481 | 964,481 | 964,481 |
| Diluted NAV and diluted NAV at fair value | 983,112 | 983,112 | 983,112 | 964,481 | 964,481 | 964,481 |
| Exclude | ||||||
| Fair value of financial instruments | -6,401 | -6,401 | - | -6,477 | -6,477 | - |
| Intangibles per the IFRS balance sheet | - | -129 | - | - | -162 | - |
| Include: | ||||||
| Fair value of fixed interest rate debt | - | - | 43,123 | - | - | 20,523 |
| Real estate transfer tax | 141,645 | - | - | 138,013 | - | - |
| NAV | 1,118,356 | 976,582 | 1,026,235 | 1,096,017 | 957,842 | 985,004 |
| Fully diluted number of shares | 43,694,441 | 43,694,441 | 43,694,441 | 43,730,450 | 43,730,450 | 43,730,450 |
| NAV per share (in €) | 25.59 | 22.35 | 23.49 | 25.06 | 21.90 | 22.52 |
| 31 December | ||
|---|---|---|
| (x € 1,000 unless otherwise noted) | 30 June 2024 | 2023 |
| Fair value investment properties determined by external appraisers | 2,208,772 | 2,132,732 |
| Less developments and parkings | -28,400 | -28,392 |
| Completed property portfolio | 2,180,372 | 2,104,340 |
| Allowance for estimated purchasers' costs | 135,246 | 137,738 |
| Gross up completed property portfolio valuation (A) | 2,315,618 | 2,242,078 |
| Annualized cash passing rental income | 154,264 | 154,970 |
| Property outgoings | -15,189 | -13,423 |
| Annualized net rents (B) | 139,075 | 141,547 |
| Add notional rent expiration of rent free periods or other lease incentives | 2,777 | 2,191 |
| Topped-up net annualized rent (C) | 141,852 | 143,738 |
| EPRA Net Initial Yield (B/A) | 6.0% | 6.3% |
| EPRA 'topped-up' Net Initial Yield (C/A) | 6.1% | 6.4% |
| (x € 1,000 unless otherwise noted) | H1 2024 | H1 2023 |
|---|---|---|
| Property expenses | 11,156 | 10,429 |
| General costs | 7,647 | 10,939 |
| Other income and expense | 265 | 325 |
| (i) Administrative/operating expense line per IFRS income statement | 19,069 | 21,693 |
| (ii) Net service charge costs / fees | 3,868 | 3,225 |
| (iv) Other operating income/recharges intended to cover overhead expenses less any related profits | -4,066 | -2,647 |
| Exclude (if part of the above): | ||
| (vii) Ground rent costs | -50 | 133 |
| Costs (including direct vacancy costs) (A) | 18,820 | 22,404 |
| (ix) Direct vacancy costs | -1,835 | -2,613 |
| Costs (excluding direct vacancy costs) (B) | 16,985 | 19,791 |
| (x.a) Gross rental income less ground rent costs — per IFRS | 82,997 | 76,687 |
| (x.b) Less: Other operating income/recharges intended to cover overhead expenses | -5,328 | -3,355 |
| Gross Rental Income (C) | 77,669 | 73,332 |
| EPRA Cost Ratio (including direct vacancy costs) (A/C) | 24.2% | 30.6% |
| EPRA Cost Ratio (excluding direct vacancy costs) (B/C) | 21.9% | 27.0% |
| 31 December | 31 December | 31 December | ||||
|---|---|---|---|---|---|---|
| (x € 1,000 unless otherwise noted) | 30 June 2024 | 30 June 2024 | 30 June 2024 | 2023 | 2023 | 2023 |
| Group (as reported) 1 |
Non-controlling interests 2 |
Combined | Group (as reported) |
Non controlling interests |
Combined | |
| Borrowings from Financial Institutions3 | 879,073 | -60,816 | 818,257 | 868,664 | -68,987 | 799,677 |
| Commercial Paper3 | 75,000 | -25,200 | 49,800 | 42,750 | -14,467 | 28,283 |
| Bond loans3 | 32,000 | -10,752 | 21,248 | 32,000 | -10,829 | 21,171 |
| Foreign currency derivatives (futures, swaps, options, | ||||||
| and forwards)4 | -10,186 | - | -10,186 | 2,511 | - | 2,511 |
| Net payables5 | 42,954 | -1,015 | 41,939 | 41,989 | -1,296 | 40,693 |
| Exclude: Cash and cash equivalents | -19,596 | 2,376 | -17,220 | -25,544 | 5,987 | -19,557 |
| Net debt (a) | 999,246 | -95,407 | 903,839 | 962,369 | -89,591 | 872,778 |
| Investment properties at fair value6 | 2,208,141 | -335,237 | 1,872,904 | 2,132,484 | -319,628 | 1,812,856 |
| Properties under development6 | 7,594 | -2,340 | 5,254 | 14,595 | -4,851 | 9,744 |
| Intangibles | 129 | - | 129 | 162 | - | 162 |
| Financial assets | 466 | -153 | 313 | 557 | -185 | 372 |
| Total Property Value (b) | 2,216,331 | -337,731 | 1,878,600 | 2,147,798 | -324,664 | 1,823,134 |
EPRA Loan to Value (a/b) 45.1% 48.1% 44.8% 47.9% ¹ In both 2024 and 2023, the Group did not have shares in Joint Ventures or Material Associates.
2
The Group's % of non-controlling interest was 33.60% and 33.84% at at 30 June 2024 and 31 December respectively. 3
Amortized costs (2024: € 2.1m and 2023: € 2.1m) were added back to arrive at nominal value.
4 Relates to the foreign currency portion of derivatives as included in the financial statements.
5 Net balance of current liabilities (excluding current interest-bearing liabilities and derivatives) plus pension plan obligations and tenant deposits less current assets (excluding cash and cash equivalents and derivatives) and less deposits paid and other financial assets
6 Excludes the fair value of ground rent of € 15.4m (2023: € 15.3m).
| (x € 1,000 unless otherwise noted) | Fair value 30 June 2024 |
Net rental income H1 2024 |
Net rental income H1 2023 |
Change (in €m) |
Change (%) |
|---|---|---|---|---|---|
| Like-for-like | |||||
| Belgium | 991,233 | 27,994 | 26,416 | 1,578 | 6.0% |
| France | 173,894 | 3,756 | 4,503 | -747 | -16.6% |
| Netherlands | 980,243 | 28,552 | 27,194 | 1,358 | 5.0% |
| Total | 2,145,370 | 60,303 | 58,114 | 2,189 | 3.8% |
| Acquired | 78,140 | 2,716 | - | 2,716 | 0.0% |
| Development | 7,594 | 5,067 | 4,464 | 603 | 13.5% |
| Disposals | - | -63 | 324 | -386 | -119.4% |
| Total portfolio | 2,231,104 | 68,023 | 62,901 | 5,122 | 8.1% |
This glossary includes definitions of measures used in our reporting. We use a variety of financial and non-financial measures to assess and explain our performance. A number of the financial measures used, including net debt, direct result, direct result per share and the measures in accordance with the industry best practices as published by the European Public Real Estate Association (EPRA), are not defined under International Financial Reporting Standards (IFRS), and are therefore considered alternative performance measures (APMs). APMs are not considered superior to the relevant IFRS measures, rather management uses them alongside IFRS measures to monitor the Company's financial performance as they help illustrate the performance and position of the Company. These measures are determined on a consistent and comparable basis with our latest published annual report, unless otherwise stated.
Annualized gross rent on reporting date based on the lease agreements in place.
Customer satisfaction Benelux (Net Promoter Score) is calculated as the 1 year moving average of our Net Promoter Score (NPS), measured over the entire portfolio of continued operating shopping centers in the Benelux. Continued operating shopping centers exclude developments and refurbishments.
Daily life retail is the percentage of MGR devoted to tenants that operate in the branches considered daily life (food, food & beverage, fashion (discount), health & beauty, homeware & household, sport, fitness, personal care, services, healthcare, leisure and serving the community) in comparison to the total MGR.
Direct result is based on the EPRA earnings, and excludes project related or other expenditures that are not considered by management to be part of the operational performance of the Company.
Direct result per share (DRPS) is calculated by dividing Direct result attributable to shareholders by the weighted average number of shares.
EPRA cost ratio including direct vacancy costs is calculated by taking total property expenses, net service charges and general costs, divided by gross rental income from the IFRS income statement. The gross rental income and total costs are adjusted in the event that income is specifically intended to cover overhead expenses.
EPRA earnings is a measure of operational performance, and the extent to which dividend payments to shareholders are underpinned by income generated from operational activities. The measure is based on the result from the IFRS income statement attributable to shareholders, excluding valuation results, results on disposals and the fair value of changes in financial instruments.
EPRA earnings per share is calculated by dividing EPRA earnings by the weighted average number of shares.
EPRA loan-to-value (EPRA LTV) is based on net debt divided by net assets as defined by EPRA, and is based on a proportional consolidation of noncontrolling interests.
EPRA net disposal value (EPRA NDV) is calculated by taking IFRS NAV, including the fair value of the interest-bearing liabilities attributable to shareholders.
EPRA net Initial yield (EPRA NIY) is calculated using the annualized rental income based on cash rents passing at the balance sheet date, less nonrecoverable property operating expenses, divided by the market value of the property, including estimated purchasers' cost on the basis of the valuation reports from appraisers at the reporting date.
EPRA net reinstatement value (EPRA NRV) is calculated by taking IFRS NAV, excluding the fair value of financial instruments and deferred tax liabilities and including real estate transfer tax of the investment portfolio attributable to shareholders.
EPRA net tangible assets (EPRA NTA) is calculated by taking IFRS NAV, excluding intangible assets, the fair value of financial instruments and 50% of the value of the deferred tax liabilities attributable to shareholders.
EPRA vacancy rate is the estimated rental value of vacant units as a percentage of the total estimated rental value of the portfolio, excluding development units, and units under offer or occupied by the Group.
Estimated rental value (ERV) or market rent is the Company's external appraisers' opinion at valuation date of the market rent that could reasonably be expected to be obtained on new letting or renewal of the unit or property.
Footfall is the number of visitors in our shopping centers during the period.
Footfall growth is the change in footfall calculated as the footfall in current period divided by the footfall in the same period last year.
Gross loan-to-value (Gross LTV) is calculated based on the loan covenants and excludes the cash and cash equivalents compared with the Net LTV.
IFRS Net asset value per share (IFRS NAV) is equity attributable to shareholders divided by the total number of ordinary shares for net asset value.
Indirect result includes the items that are excluded from the IFRS income statement for the determination of the EPRA earnings, as well as further exclusions made as part of the determination of the Direct result.
Indirect result per share is calculated by dividing Indirect result attributable to shareholders by the weighted average number of shares.
Interest coverage ratio is the ratio of net rental income and the interest expense on interest-bearing liabilities (excluding amortized costs) as included in net interest in the income statement. The calculation is based on the loan covenants included in our financing agreements.
Leasing volume is calculated by dividing the MGR of negotiated leases during the period by the total MGR at the end of the period.
Like-for-like net rental income (LFL NRI) growth is the change in net rental income of the portfolio that has been consistently in operation during the two full reporting periods. This excludes acquisitions, disposals and developments.
MGR vs. ERV is the percentage change calculated as the MGR on new or renewed contracts signed divided by the applicable ERV during the period.
MGR Uplift is the percentage change in MGR from renewed lease agreements signed during the reporting period compared with the MGR before the renewal.
Minimum guaranteed rent (MGR) on the reporting date based on the lease agreements in place.
Net debt is the sum of the non-current and current interest-bearing liabilities less cash and cash equivalents.
Net loan-to-value (Net LTV) is the ratio of net debt, including the value of the foreign exchange derivatives, to the aggregate value of investment properties, including assets held for sale, as well as property leased out under finance lease, less the present value of future ground rent payments.
Number of ordinary shares for net asset value is the total number of ordinary shares in issue less the treasury shares held by the Company at the end of the period.
Occupancy rate is calculated as 100% less the EPRA vacancy rate.
Occupancy cost ratio (OCR) is the total cost of occupation the total cost of occupation, which is calculated by taking rent, service charges and marketing contributions divided by the retail sales obtained from the tenant.
Proportion of mixed-use Benelux is the percentage of square meters devoted to tenants that operate in branches that are considered mixed-use in comparison with the total available square meters in our Benelux shopping centers.
Solvency is calculated as the total equity less intangible assets and provisions for deferred tax assets divided by total assets per balance sheet less intangible assets.
Retail sales are the sales figures provided by our tenants from our shopping center portfolio.
Tenant satisfaction is measured through tenant surveys, which provide a score for customer satisfaction on a defined scale.
Total property return is a measure of the unlevered return of our investment portfolio and is calculated as the change in fair value, less any investments made, plus net rental income, expressed as a percentage of fair value at the beginning of the period, plus the investments made during the period concerned, excluding land.
Total return based on EPRA net tangible assets per share is calculated as the total of the dividend paid per share and the change in EPRA NTA per share compared with the prior period.
Total shareholder return is a performance measure of the Company's share price over time. It is calculated as the share price movement from the
beginning of a defined period to the end of the defined period plus dividends paid, divided by the average share price in the three months preceding the start of the defined period.
Unlevered IRR is the internal rate of return, generated by an investment project, before the financing of the project is taken into account. It is calculated by taking the amount of free cash flows generated, divided by the investments necessary.
Weighted average number of shares includes the weighted average of the number of ordinary shares outstanding during the period (excluding treasury shares).
Results H1 2024 Wereldhave N.V. 32
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