Earnings Release • May 5, 2022
Earnings Release
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Strong operational performance and current market conditions allow for providing a full-year outlook
Hoofddorp, 4 May 2022 – Vastned delivered a strong operational performance in the first three months of 2022, continuing the trend of the end of last year. Given the positive results over the first quarter, an improvement in high street footfall numbers, eased uncertainty with respect to Covid-19 in recent months and the war in the Ukraine so far only having a limited impact on consumer retail spending, Vastned expects to be on track for a full-year direct result per share range of € 1.95 to € 2.05, barring unforeseen circumstances.
Reinier Walta, Vastned Managing Director and CEO: 'Thanks to the quality of our portfolio, our business and our people, Vastned again delivered a strong operational performance. The occupancy rate is high at 98.1% and the collection rate of 96.1% remains strong, despite the negative Covid-19 impact at the start of this year. In 2022 we will continue to optimise our rental income and control our costs.
Given that high street footfall numbers in the cities where Vastned is active have improved, the uncertainty around the impact of Covid-19 has eased in recent months and the war in the Ukraine so far has had only a limited impact on consumer retail spending, Vastned now expects to be on track for a full-year direct result per share of €1.95 to €2.05.'
Vastned Retail N.V.
Mercuriusplein 11 2132 HA Hoofddorp
Tel.: +31 202424300 [email protected]
www.vastned.com
In the first quarter of 2022 the occupancy rate increased to 98.1% compared to 97.9% as at the end of December 2021. In the Netherlands the occupancy rate increased to 97.7% mainly due to the new letting with WAM Denim on the Kalanderstraat 6 in Enschede. In France the occupancy rate increased to 97.5%, driven by multiple new lettings of residential units in Bordeaux. The occupancy rate in Belgium slightly decreased in Q1 2022 to 98.9%. This decrease was the result of the bankruptcy of Actissia on the Galerie Jardin d'Harscamp in Namur and the departure of Claire's on the Bondgenotenlaan 69-73 in Leuven. The portfolio in Spain remains fully let.
| Occupancy rate (%) | 31 March 2022 | 31 December 2021 |
|---|---|---|
| The Netherlands | 97.7 | 97.2 |
| France | 97.5 | 97.2 |
| Belgium | 98.9 | 99.3 |
| Spain | 100.0 | 100.0 |
| Total | 98.1 | 97.9 |
In Q1 2022, Vastned signed 10 new leases and lease renewals for a total amount of € 0.9 million in annual rent, which is 1.3% of the total theoretical rent. Compared to the old rental agreements this is a decrease of € 0.1 million. This includes a new lease with G-Star on the Voldersstraat 15 in Gent and a renewed contract with Bierfabriek on the Nes 67 / Sint Barberensteeg 4 in Amsterdam. Vastned also signed new leases with WAM Denim on the Kalanderstraat 6 in Enschede and Jonak on the Rue de la Grande Chaussée 29 in Lille.
| Leasing activity | 31 March | |
|---|---|---|
| 2022 | ||
| Number of leases | 10 | |
| Rental income (€ million) | 0.9 | |
| % of total theoretical rent | 1.3 | |
| Rental change (€ million) | (0.1) |
In 2022 Vastned sold 2 non-strategic assets on the Dorpstraat 21-23 in Renkum and Achter Clarenburg 19 in Utrecht with a total transaction value of € 765k which was 18.6% above book value. No acquisitions were made in Q1 2022.
As at 31 March 2022, Vastned had a total accounts receivable position of € 11.0 million (31 December 2021: € 10.8 million), of which € 1.9 million was provisioned for (31 December 2021: € 1.9 million). An amount of € 7.1 million is related to preinvoiced rent for Q2 2022. The total amount of accounts receivable, after deduction of the provision for expected credit losses, can be broken down as follows by the nature of the receivable:
| Accounts receivable and other receivables (€ million)1 |
Outstanding | Provision for expected credit losses |
Total |
|---|---|---|---|
| Accounts receivable unrelated to COVID-19 | 1.5 | (1.1) | 0.4 |
| Accounts receivable related to COVID-19 | 1.7 | (0.6) | 1.1 |
| Accounts receivable for which a deferment has been granted in the context of COVID-19 |
0.2 | (0.1) | 0.1 |
| Pre-invoiced rent | 7.6 | - | 7.6 |
| Other receivables | <0.1 | - | <0.1 |
| Total | 11.0 | (1.9) | 9.1 |
1 Differences in sum of the totals are subject to rounding
Mercuriusplein 11 2132 HA Hoofddorp
Tel.: +31 202424300 [email protected]
www.vastned.com
Part of the total accounts receivable position are receivables whose due date is more than one year in the past and that have been fully provisioned for, but cannot yet be written off because a bankruptcy has not been fully settled. These accounts receivable are unrelated to COVID-19.
Given the positive results over the first quarter, an improvement in high street footfall numbers, eased uncertainty with respect to Covid-19 in recent months and the war in the Ukraine so far only having a limited impact on consumer retail spending, Vastned expects to be on track for a full-year direct result per share range of € 1.95 to € 2.05, barring unforeseen circumstances.
| 6 May 2022 | Dividend payment date (€ 1.20 per share) | |
|---|---|---|
| 28 July 2022 | before trading | Half-year results 2022 |
| 26 October 2022 | after trading | 9M trading update 2022 |
Vastned is a European publicly listed property company (Euronext Amsterdam: VASTN) focusing on the best property in the popular shopping areas of selected European cities with a historic city centre where shopping, living, working and leisure meet. Vastned's property clusters have a strong tenant mix of international and national retailers, food & beverage entrepreneurs, residential tenants, and office tenants. The property portfolio had a size of approximately € 1.44 billion as at 31 December 2021.
Simon Theeuwes Manager Investor Relations a.i. [email protected] Tel: +31 20 24 24 300
Vastned Retail N.V.
Mercuriusplein 11 2132 HA Hoofddorp
Tel.: +31 202424300 [email protected]
www.vastned.com
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