Earnings Release • Feb 11, 2021
Earnings Release
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Key points 2020
* Excluding capex and divestments
Amsterdam, 11 February 2021 – Vastned reports a direct result for 2020 of € 1.85 per share, which is lower than in 2019 due to the impact of COVID-19. The outbreak of the virus and the government measures to contain its spread have had visible consequences for tenants. Vastned has therefore made tailored payment arrangements with virtually all tenants during the first and second lockdowns. As a result, rent collection remained relatively high at 90% for FY 2020. The occupancy rate also remained high at 96.5% and the property portfolio is robust, with only a limited 5.2% value decrease during FY 2020. The Executive Board has decided on a dividend proposal for FY 2020 totalling € 1.73 per share. Due to continuing uncertainty resulting from the COVID-19 pandemic and the government measures to control it, Vastned will not issue an outlook for the direct result for 2021 at this time.
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
Reinier Walta, interim CEO Vastned: 'The outbreak and spreading of COVID-19 and the measures taken by the governments to limit its spreading have had a major impact on everyone. I am proud of the Vastned team, who have worked very hard in these challenging circumstances to cope with the situation and find appropriate solutions together with the tenants. The goal has always been and still is to do this together with our tenants, which is in the long-term interests of all parties.
Our high-quality property portfolio has clearly proven itself during the COVID-19 crisis. The occupancy rate remained high at 96.5% at year-end 2020. The property portfolio in France is virtually fully let with an occupancy rate of 98.5% and in Spain the portfolio is 100% let. The property portfolios in the Netherlands and Belgium are 95.2% and 96.2% let respectively. Due to the high quality of the portfolio, there was a relatively limited 5.2% decrease in the value of the property portfolio over 2020 under very challenging economic conditions. In 2020, the Vastned team concluded tailored agreements with the tenants. In this context, Vastned granted € 4.7 million in rent waivers in 2020 and deferred rent payments totalling € 1.0 million. Consequently, the direct result for the year 2020 was lower than in 2019. The 90% collection rate for the year 2020 was relatively high thanks to these tailored agreements with tenants.
It is clear that the retail sector is undergoing a transformation, driven by changing consumer behaviour and the growth of e-commerce. The outbreak and spreading of COVID-19 and the government measures to contain it have further accelerated this development. We anticipate that tourism in European cities will recover over time. We also expect that despite the above developments, the historic city centres will remain popular and visitors will return once the pandemic is over. We have also seen in 2020 that people like to come to city centres as soon as they are allowed to. The COVID-19 pandemic has increased the focus on space and sustainability in cities, but the long-term trend of urbanisation will continue in Europe and the rest of the world, also because that is where the economic activity takes place. City centres remain attractive for shopping, working, living and leisure. Governments also support this with policy.
Vastned is responding to these market trends by updating its strategy, in which the objective remains to generate stable and predictable longterm results. Vastned aims to achieve this objective by optimising and concentrating the property portfolio, a strategy in which greater diversification of tenant types and the creation of a city centre portfolio with mixed-use properties are important pillars, in conjunction with increasing the cost efficiency of the organisation. In this way, Vastned wants to create long-term value in a sustainable way for all its stakeholders.
Based on the direct result of € 1.85 per share in 2020, we plan to pay out € 1.73 per share in dividend for 2020. As no interim dividend was paid in 2020, this amount will be paid in full as cash dividend in May 2021.
In 2021 too, our focus will remain on maintaining the high occupancy rate of the property portfolio, supported by the tailored agreements we have made with our tenants. At present, the countries in which Vastned operates are in (partial) lockdown because of COVID-19. In view of the uncertainty about how long the present situation and its impact will persist, it is not possible at this time to assess Vastned's result for 2021. For this reason, Vastned does not issue any forecast for the direct result for the year 2021 at this time.'
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
After all shops in Vastned's property portfolio had reopened as of the end of June 2020 and the lockdowns had been lifted, government measures to control COVID-19 were reintroduced in the Netherlands, France and Belgium from October 2020. In France, non-essential shops, bars and restaurants were forced to close during the month of November 2020 and in Belgium during the months of November and part of December 2020. In the Netherlands, all food and beverage establishments have been compulsorily closed since 14 October 2020 and all non-essential shops since 15 December 2020. The shops in Vastned's portfolio in Spain were all open in the second half of 2020. As a result, during the fourth quarter of 2020, more than half of the tenants in the property portfolio experienced temporary closure.
As reported in Vastned's 2020 half-year report, these government measures and of course the health and economic crisis in general have had a negative impact on Vastned's tenants. As a result, Vastned's results were again affected in the fourth quarter of 2020.
After the introduction of the government measures in the second half of 2020, Vastned again held intensive discussions with its tenants and made payment arrangements with virtually all tenants that are in line with the arrangements made in the industry. These arrangements with tenants are tailor-made, and take account of the specific situation that the tenant is in, while at the same time taking the interests of all stakeholders into consideration, including Vastned's shareholders. The payment arrangements made range from spreading payments due for the quarter over monthly instalments, paying not in advance but in arrears, deferment of payment of the entire or part of the rent, up to partial rent waivers.
Many tenants in our portfolio who paid the rent quarterly have changed to paying monthly. In conjunction with these payment arrangements Vastned has modified leases in a number of cases. For example, agreements have been reached with tenants on contract extensions, removal of break options or future rent rises. This has yielded improved continuity for Vastned both in terms of rental income and occupancy rate. The following is an overview of waived and deferred rent by country.
| Rent arrangements 2020 (€ million) |
Rent waivers1, 2 |
Rent deferments2 |
|---|---|---|
| Netherlands | 1.8 | 0.5 |
| France | 1.1 | 0.4 |
| Belgium | 1.8 | 0.1 |
| Spain | <0.1 | - |
| Total | 4.7 | 1.0 |
1Including acquisitions and divestments
2 Including VAT
The arrangements made with tenants have the following implications for the FY 2020 result:
Accounts receivable increased to € 9.9 million as at 31 December 2020 from € 3.6 million as at 31 December 2019. A significant portion of this (year-end 2020: € 6.7 million) was related to pre-invoiced rent for the first quarter of 2021. The rent collection for FY 2020 was 90% on 31 December 2020, which was calculated as follows: all amounts received divided by all amounts invoiced in respect of FY 2020. In the rent collection calculation, the waived amounts and the deferred amounts were not deducted from the invoiced amounts. Adjusted for waivers, the rent collection for FY 2020 was 95%.
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam
Vastned reports a direct result of € 1.85 per share for FY 2020 compared to € 2.03 in FY 2019. This result is at the upper end of the adjusted expected range of € 1.70 - € 1.85 per share, as communicated in the 2020 half-year report. This decrease was caused by the € 4.2 million decrease of the net rental income due to rent waivers caused by COVID-19 and the € 1.5 million allocation to the provision for expected credit losses. The occupancy rate remained high at 96.5% at year-end 2020. The value of the property portfolio showed a relatively limited decline of 5.2% compared to FY 2019.
| Results | FY 2020 | FY 2019 |
|---|---|---|
| Occupancy rate as at 31 December (%) | 96. 5 | 98. 0 |
| Like-for-like gross rental growth (%) | (5.5) | (3.0) |
| Value movements1 (%) | (5.2) | (0.8) |
| Total appraisal value of the portfolio2 (€ million) |
1,479 | 1,571 |
| Direct result per share (€) | 1.85 | 2.03 |
| Indirect result per share (€) | (4.26) | (0.73) |
| Result per share (€) | (2.41) | 1.30 |
| 1 Excluding capex, acquisitions and divestments | ||
2Including assets held for sale
The appraisal value of the total property portfolio as at 31 December 2020 was € 1.5 billion which represents a, given the circumstances, limited decrease in value of 5.2% compared to 31 December 2019.
| Portfolio breakdown1 (€ million) |
31 December 2020 | % of total |
|---|---|---|
| Netherlands | 642 | 43 |
| France | 407 | 28 |
| Belgium | 339 | 23 |
| Spain | 91 | 6 |
| Total | 1,479 | 100 |
1 Including assets held for sale
The occupancy rate decreased slightly during 2020 from 98.0% at year-end 2019 to 96.5% at year-end 2020. This decrease was caused by a fall in the occupancy rate in the Netherlands, France and Belgium. The portfolio in Spain was fully let throughout 2020.
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected] www.vastned.com
| Occupancy rate (%) | 31 December 2020 |
30 September 2020 |
30 June 2020 |
31 March 2020 |
31 December 2019 |
|---|---|---|---|---|---|
| Netherlands | 95.2 | 96.2 | 96.0 | 96.0 | 96.6 |
| France | 98.5 | 99.8 | 99.8 | 99.9 | 99.8 |
| Belgium | 96.2 | 97.4 | 97.5 | 95.8 | 98.8 |
| Spain | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Total | 96.5 | 97.5 | 97.4 | 97.0 | 98.0 |
In 2020, Vastned concluded 71 leases for a total annual rent of € 9.6 million, or 12.9% of the total theoretical annual gross rental income. In 2019, in comparison, Vastned concluded 76 leases for a total annual rent of € 12.4 million, or 16.7% of the total theoretical annual gross rental income.
The 71 leases Vastned concluded resulted in a rent decrease of € 0.4 million (4.3%).
In the Netherlands Vastned signed relatively many new leases with supermarkets in 2020. For example, Vastned signed a new lease with Lidl in Rotterdam, with Spar and Jumbo in Utrecht, and with VkusVill in Amsterdam. Vastned also concluded new leases in the Netherlands with Rituals, Holland & Barrett and Score. In France new leases were agreed with Streamroot and Sézane. Streamroot rents the newly renovated office at Rue de Rivoli 102 in Paris. Louis Vuitton in Bordeaux renewed its lease in the fourth quarter of 2020. In Belgium, new leases were concluded with Dunkin' Donuts, Keukens De Abdij, Takeaway and Clear Channel. In addition, leases were renewed with Armani in Antwerp and Mango in Brussels. The portfolio in Spain was fully let throughout 2020.
| 2020 | Leasing activity | Rental change | |||
|---|---|---|---|---|---|
| Number | € million | % of theoretical | € million | % | |
| leases | annual rent | ||||
| 71 | 9.6 | 12.9 | (0.4) | (4.3) | |
| Q4 2020 | Leasing activity | Rental change | |||
| Number | € million | % of theoretical | € million | % | |
| leases | annual rent | ||||
| 13 | 1.5 | 2.0 | (0.2) | (11.9) |
Lease incentives, such as rent-free periods, lease discounts and other payments or contributions to tenants, averaged 6.1% of the gross rental income in 2020. This was higher compared to 2019, partly due to COVID-19. The difference between the actual and the IFRS lease incentives is the straightlining of lease incentives over the contract terms. Waivers of past due rent in arrears due to COVID-19 are not included in the calculation of the figures below.
| Lease incentives (as a % of gross rental income) |
2020 | 2019 | |||
|---|---|---|---|---|---|
| Actual | IFRS | Actual | IFRS | ||
| 6.1 | 4.9 | 3.7 | 3.2 |
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected] www.vastned.com
The value of the property portfolio excluding capital expenditure and divestments fell during 2020 by € 80.7 million, or 5.2%, compared to year-end 2019. Taking into account capital expenditure, revaluations of sold properties during 2020 and movements in accruals and leasing liabilities, the total decrease in value was € 84.4 million.
| Value movements 2020 | € million | % |
|---|---|---|
| 80.7 | (5.2) |
No acquisitions were made in 2020. In view of the COVID-19 pandemic and the strategy update, a deliberate decision was made to keep focusing on managing the current portfolio.
As part of its strategy to further lower the risk profile of the portfolio, Vastned sold non-strategic assets in the Netherlands and Belgium in 2020. The properties sold had a total book value of € 11.0 million at the time of sale. In the Netherlands, Vastned sold the following properties in 2020: Veestraat 1 and 39 in Helmond, Julianastraat 13-19 in Dedemsvaart and Kalverstraat 8-14 in Veghel. In Belgium, Vastned divested Molsesteenweg 56 in Balen and Leuvensesteenweg 610-640 in Schaarbeek.
| Financial results (€ million) | 2020 | 2019 |
|---|---|---|
| Direct result | 31.7 | 35.0 |
| Indirect result | (73.1) | (12.6) |
| Result attributable to Vastned Retail shareholders | (41.3) | 22.4 |
| Result attributable to non-controlling interests | (3.0) | 1.5 |
| Result after taxes | (44.3) | 23.9 |
The result attributable to Vastned Retail shareholders, which comprises the direct and indirect result, was € 41.3 million negative in 2020 (2019: € 22.4 million positive). The main factor in this lower result was the fall of the indirect result from € 12.6 million negative for 2019 to € 73.1 million negative for 2020.
The direct result fell from € 35.0 million in 2019 to € 31.7 million in 2020. The decrease was mainly caused by lower net rental income due to COVID-19.
The indirect result in 2020 was € 73.0 million negative, against € 12.6 million negative in 2019. This decrease was mainly caused by a decrease in value of the property portfolio by € 84.4 million. The value of the property portfolios in the Netherlands, France, Belgium and Spain decreased by € 41.1 million, € 10.2 million, € 24.3 million and € 8.8 million respectively.
The result per share attributable to Vastned Retail shareholders was € 2.41 negative for 2020 (2019: € 1.30 positive). This result consists of the direct result per share of € 1.85 positive (2019: € 2.03 positive) and the indirect result per share of € 4.26 negative (2019: € 0.73 negative).
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
After adjusting for non-recurring items relating to the spreading of substantial buy-out payments received from and paid to tenants in 2018, the gross rental income was € 65.7 million in 2020 compared to € 70.1 million in 2019.
| Development net rental income (€ thousand) |
Netherlands before adjustment for non-recurring items |
Adjustment for non recurring items |
Netherlands after adjustment for non recurring items |
France | Belgium | Spain | Total |
|---|---|---|---|---|---|---|---|
| Gross rental income 2019 | 32,568 | 776 | 33,344 | 13,642 | 19,664 | 3,414 | 70,064 |
| Acquisitions | 122 | - | 122 | - | - | - | 122 |
| Divestments | (348) | - | (348) | - | (322) | - | (670) |
| Waivers of rent arrears (like-for-like) | (1,424) | - | (1,424) | (941) | (1,738) | (30) | (4,133) |
| Like-for-like rental growth | (638) | - | (638) | 1,512 | (520) | (45) | 309 |
| Gross rental income 2020 | 30,280 | 776 | 31,056 | 14,213 | 17,084 | 3,339 | 65,692 |
| Other income | - | - | - | 314 | 194 | - | 508 |
| Allocation to provision for expected credit losses |
(406) | - | (406) | (533) | (455) | (95) | (1,489) |
| Operating expenses1) | (3,720) | - | (3,720) | (1,246) | (1,677) | (275) | (6,918) |
| Net rental income 2020 | 26,154 | 776 | 26,930 | 12,748 | 15,146 | 2,969 | 57,793 |
| Net rental income 2019 | 28,884 | 776 | 29,660 | 12,835 | 18,281 | 3,027 | 63,803 |
| Operating expenses as a % of gross rental income 2020 |
13.6 | - | 13.3 | 12.5 | 12.5 | 11.1 | 12.8 |
| Operating expenses as a % of gross rental income 2019 |
11.3 | - | 11.0 | 7.8 | 7.0 | 11.3 | 9.3 |
1) Including net service charge expenses
The above table shows the growth in net rental income of the properties that were in operation and not under renovation or development during the two preceding full periods. For the calculation of the like-for-like rental growth, properties acquired or sold during the two preceding periods are excluded.
No acquisitions were made in 2020. The € 0.1 increase in gross rental income was due to properties acquired in Amsterdam in 2019.
In 2020, Vastned sold investment properties totalling € 11.0 million (book value). In 2019, Vastned sold investment properties totalling € 12.1 million. These divestments caused the gross rental income to fall by € 0.7 million compared to 2019. The divestments in 2020 and 2019 took place in the Netherlands and Belgium.
As a result of COVID-19, an amount of € 4.1 million in rent arrears was waived on a like-for-like basis in 2020. Waivers of rent arrears in the Netherlands, France and Belgium were € 1.4 million, € 0.9 million and 1.7 million respectively. In Spain, less than € 0.1 million in rent waivers was granted.
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected] www.vastned.com
The normalised like-for-like gross rental growth in 2020 was € 0.3 million positive (0.4% positive). This positive like-forlike gross rental growth was mostly due to the letting of Rue de Rivoli 118-120 in Paris to JD Sports. In France the likefor-like growth of the gross rental income was € 1.5 million positive due to the reletting of the property Rue de Rivoli 118-120 in Paris. The like-for-like gross rental growth in the Netherlands, Belgium and Spain was € 0.6 million negative, € 0.5 million negative and less than € 0.1 million negative respectively. If the waivers due to COVID-19 are taken into account, the like-for-like growth of the gross rental income was € 3.8 million negative (5.5% negative) for the total property portfolio in 2020.
This concerns the spreading of substantial buy-out payments received from and paid to tenants in 2018. In order to present a balanced view of the like-for-like gross rental growth, these non-recurring payments have been spread over the duration of the leases with the new tenants. On balance, this means that both in 2020 and in 2019 € 0.8 million in additional gross rental income was presented compared to the IFRS result.
The total operating expenses excluding the allocation to the provision for expected credit losses increased from € 6.5 million in 2019 to € 6.9 million in 2020. This increase was partly due to higher maintenance costs, net service charge expenses and other operating expenses of € 0.3 million, € 0.2 million and € 0.1 million respectively; on the other hand, letting costs decreased by € 0.2 million.
The allocation to the provision for expected credit losses increased from virtually nil in 2019 to € 1.5 million in 2020. This rise was almost completely due to COVID-19.
The operating expenses equalled 12.8% of the gross rental income (not corrected for non-recurring items) (2019: 9.3%).
The investment property value movements in 2020 were € 84.4 million negative (2019: € 13.1 million negative). The value decreases in the Dutch, French, Belgian and Spanish property portfolios were € 41.1 million, € 10.2 million, € 24.3 million and € 8.8 million respectively.
In 2020, Vastned sold investment property totalling € 11.0 million. Of these divestments, the Belgian property portfolio accounted for € 8.3 million and the Dutch portfolio for € 2.7 million. The net result on the divestments realised in 2020 after deduction of sales costs was € 1.5 million positive.
The net financing costs including value movements of financial derivatives decreased from € 17.6 million in 2019 to € 15.2 million in 2020. The development of the net financing costs is shown in more detail in the table below.
| (0.9) |
|---|
| (1.6) |
| 0.1 |
| 17.6 |
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam
The net financing costs rose by € 0.1 million due to higher average interest-bearing debts resulting in particular from the share buyback programme in 2019. Due to changes in the composition of the loan and interest rate derivatives portfolio the average interest rate fell by 23 basis points from 2.22% in 2019 to 1.99% in 2020, reducing the interest expenses by € 1.6 million. As a result of the altered market interest rate, the value movements of the interest rate derivatives were € 2.1 million negative (2019: € 3.0 million negative).
The general expenses decreased to € 7.4 million in 2020 compared to € 8.1 million in 2019. In 2020, non-recurring costs due to the departure of the CEO were recognised, resulting in a net increase of € 0.3 million in personnel costs compared to 2019. However, the net decrease in general costs of € 0.7 million was mainly due to the decision by the Belgian tax authorities to refund Vastned Retail Belgium's overpaid listing costs.
Adjusted for non-recurring items, the general expenses amounted to € 7.6 million, a decrease of € 0.5 million compared to 2019.
The income tax payable on the reporting period for the regularly taxed entities in the Netherlands, Belgium and Spain was € 0.7 million in 2020 (2019: € 0.7 million).
The movements in deferred tax assets and liabilities in 2020 were € 4.9 million positive (2019: € 0.1 million positive). The decrease in the provision for deferred tax in 2020 was mainly due to value decreases of assets in the Netherlands and Spain that are held by regularly taxed entities.
Financing is a one of the cornerstones in Vastned's strategy. Vastned aims for a conservative financing structure, with a loan-to-value ratio of between 35% and 45%, diversification of financing sources e.g. by placing long-term bond loans with institutional investors (such as 'private placements'). With these private placements, Vastned has extended the duration of the long-term loan portfolio and realised a better spreading of financings over lenders.
Sustainability is a key part of Vastned's mission, strategy and organisation. In order to anchor sustainability in Vastned's financing, the company has developed a Green Finance Framework. The aim of the framework is to (re)finance energy-efficient commercial and residential property that contributes to the preservation of historic city centres. Under this framework Vastned can issue a range of green financing instruments.
The existing interest rate policy to fix the interest rate of approximately two thirds of the loan portfolio was continued in 2020.
During 2020, Vastned repaid private placements of € 25.0 million and € 37.5 million, respectively, to Pricoa Capital Group. These repayments were financed from resources available in existing credit facilities.
In December 2020, a new committed Green Revolving Credit Facility of € 40.0 million was agreed under the abovementioned framework, in which ABN AMRO and Rabobank each participate for € 20.0 million. This Green Revolving Credit Facility has a 3-year duration and a floating interest rate that is in line with market conditions.
As at year-end 2020, Vastned Retail's balance sheet showed a healthy financing structure with a loan-to-value ratio of 43.0% (year-end 2019: 41.6%) and a solvency ratio, being group equity plus deferred tax liabilities divided by the balance sheet total, of 55.2% (year-end 2019: 56.6%). In 2021 and 2022 none of the credit facilities in Vastned's loan portfolio will expire.
| Financing structure | 31 December 2020 | 31 December 2019 |
|---|---|---|
| Loan-to-value (%) | 43.0 | 41.6 |
| Solvency* (%) | 55.2 | 56.6 |
| Interest coverage ratio | 4.3 | 4.2 |
* Group equity plus deferred tax liabilities divided by the balance sheet total
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
With a solvency ratio of 55.2% and an interest coverage ratio of 4.3, Vastned complied with all the bank covenants at year-end 2020. All financing contracts stipulate a 45% minimum solvency rate and usually require a 2.0 interest coverage ratio. Most financing agreements include a negative pledge clause, with a limited threshold for putting up security.
The unused credit facilities of € 104.5 million as at year-end 2020 provide ample liquidity to fulfil short-term payment obligations.
(€ million)
| Fixed interest1 | Floating interest | Total | % of total | |
|---|---|---|---|---|
| Long-term liabilities | 444.9 | 179.9 | 624.8 | 98.7 |
| Short-term liabilities | - | 8.5 | 8.5 | 1.3 |
| Total | 444.9 | 188.4 | 633.3 | 100.0 |
| % of total | 70.3 | 29.7 | 100.0 |
1 Taking account of interest rate derivatives
As at year-end 2020, the loan portfolio was 70.3% fixed interest. The proportion of non-bank loans was 33.9% as at year-end 2020, well above the internal target of 25%.
As a result of the combined direct and indirect results of € 2.41 negative per share in total, the other movements of € 0.04 negative and the 2019 final dividend distribution of € 0.85 per share, the net asset value per share fell from € 46.28 at year-end 2019 to € 42.98 as at 31 December 2020. The EPRA NTA per share as at 31 December 2020 was € 43.78 vs. € 47.25 at year-end 2019.
The Annual General Meeting of 25 June 2020 declared a dividend for the 2019 financial year of € 1.43 per share, which was charged to the freely distributable reserves. In August 2019, an interim dividend of € 0.58 per share had already been distributed, so the final dividend for 2019 came to € 0.85 per share.
Given the uncertainty surrounding COVID-19, no interim dividend was paid out for 2020 in order to boost the Company's liquidity position.
At the Annual General Meeting of 15 April 2021, Vastned will propose to declare a total dividend for the 2020 financial year of € 1.73 per share and charge it to the freely distributable reserves. The final dividend will be made payable on 6 May 2021.
On 19 January 2021, the property at Calle Tetuân 19 / Calle Carmen 3 in Madrid was sold at book value. This property was classified as an asset held for sale as at 31 December 2020.
In the period 1 January 2021 to 31 January 2021, Vastned received € 0.6 million of 2020-related payments and waived an additional less than € 0.1 million 2020 rents. As of January 31, 2021, the 2020 rent collection was 90.4%. For the January 2021 rent, a rent collection of 79.4% applied on this date.
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
On 15 December 2020, the Upper House in the Netherlands approved the Tax Plan 2021 ('Belastingplan 2021'). Part of this plan, which largely took effect on 1 January 2021, is a further differentiation in the rates of transfer tax with the aim of improving the position of first-time buyers on the housing market compared to investors. Concretely, this means as at 1 January 2021 inter alia a rise of the general rate from 6% to 8%. For residential units which were subject to a reduced rate of 2%, the rate was raised to 8% if these units are acquired by non-natural persons and if the units are acquired by natural persons who do not use them (or only temporarily) as their main residence. In view of the value reference date of 31 December 2020, the old rates were used to convert the appraised 'purchasing costs payable by the vendor' ('V.O.N.')values to 'purchasing costs payable by the buyer' ('kosten koper'). The adjusted rates have been recognised indirectly by determining the yield of the appraisals. After all, the rate change was already known in September 2020, and so the rate change was already subsumed in the pricing (references after September 2020). This methodology is in line with the valuation standards of the IVSC (International Valuation Standards Council).
On 11 February 2021, Vastned announced its strategy update in a press release, coinciding with the publication of the annual results. Vastned will optimise its portfolio and concentrate on mixed-use properties in historic city centres where shopping, working, living and leisure converge. The focus will be on retail properties that attract different types of tenants and where there is potential to create homes or offices above the shops. Where possible, Vastned aims to create clusters of properties in the various cities. Further, the Supervisory Board has decided to nominate Reinier Walta, who has served as interim CEO since 1 December 2020, as the new CEO at the Annual General Meeting on 15 April 2021.
In 2021, the company will focus on maintaining the high occupancy rate of the property portfolio and on executing the strategy update. At present, the countries in which Vastned operates are in (partial) lockdown because of COVID-19. In view of the uncertainty about how long the present situation will persist and what the impact of the government measures will be, it is not possible at this time to assess the impact on Vastned's result for 2021. For this reason, Vastned does not issue any forecast for the direct result for the year 2021 at this time.
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam
On 11 February 2021 at 10am, Vastned will comment on the annual results 2020 and the strategy update in a conference call and presentation for investors and analysts. The conference call can be followed live on www.vastned.com/webcast.
| 4 March 2021 | Annual report 2020 |
|---|---|
| 15 April 2021 | Annual General Meeting |
| 19 April 2021 | Ex final dividend date 2020 |
| 20 April 2021 | Final dividend record date 2020 |
| 5 May 2021 | Q1 trading update 2021 |
| 6 May 2021 | Payment date final dividend 2020 |
| 29 July 2021 | Half-year results 2021 |
| 3 August 2021 | Ex interim dividend date 2021 |
| 4 August 2021 | Interim dividend record date 2021 |
| 18 August 2021 | Interim dividend payment date 2021 |
| 27 October 2021 | 9M trading update 2021 |
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 € 1.5 billion as at year-end 2020.
Remco Vergeer Investor Relations Manager Tel: +31 20 2424 368
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| Results (€ thousand) | 31 December 2020 |
31 December 2019 |
|
|---|---|---|---|
| Gross rental income | 64,916 | 69,288 | |
| Direct result | 31,727 | 35,041 | |
| Indirect result | (73,067) | (12,606) | |
| Result | (41,340) | 22,435 | |
| Balance sheet (€ thousand) | |||
| Property (appraisal value) | 1,479,2631 | 1,571,3632 | |
| Equity | 818,293 | 882,866 | |
| Equity Vastned Retail shareholders | 737,195 | 793,734 | |
| Long-term liabilities | 653,984 | 612,083 | |
| Solvency (%) | 55.2 | 56.6 | |
| Loan-to-value (%) | 43.0 | 41.6 | |
| Interest coverage ratio | 4.3 | 4.2 | |
| Financial occupancy rate of property portfolio (%) | 96.9 | 93.6 | |
| Average number of shares in issue | 17,151,976 | 17,270,106 | |
| Number of shares in issue (end of period) | 17,151,976 | 17,151,976 | |
| Per share (€) | |||
| Equity Vastned Retail shareholders start of period (including final dividend) |
46.28 | 46.40 | |
| Final dividend previous financial year | (0.85) | (1.34) | |
| Equity Vastned Retail shareholders start of period (excluding final dividend) |
45.43 | 45.06 | |
| Direct result | 1.85 | 2.03 | |
| Indirect result | (4.26) | (0.73) | |
| Result | (2.41) | 1.30 | |
| Remeasurement of defined benefit obligations, after taxes | (0,04) | (0,06) | |
| Transfer of unrealised results on financial derivatives to profit or loss, after taxes |
- | (0.01) | |
| Other movements | - | 0.57 | |
| Interim dividend | - | (0.58) | |
| Equity Vastned Retail shareholders at end of period | |||
| (including final dividend) | 42.98 | 46.28 | |
| Share price (end of period) | 23.15 | 26.70 | |
| Premium/(Discount) (%) | (46.1) | (42.3) |
1 Including Assets held for sale of € 7,410 2 Including Assets held for sale of € 1,575
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam
| Direct result | FY 2020 |
FY 2019 |
HY2 2020 |
HY2 2019 |
|---|---|---|---|---|
| Gross rental income | 64,916 | 69,288 | 32,419 | 34,358 |
| Other income | 508 | 272 | 313 | 129 |
| Net service charge expenses | (367) | (244) | (242) | (115) |
| Operating expenses | (8,039) | (6,289) | (2,660) | (2,439) |
| Net rental income | 57,018 | 63,027 | 29,830 | 31,933 |
| Financial income | 14 | 18 | 11 | 5 |
| Financial expenses | (13,127) | (14,693) | (6,437) | (7,216) |
| Net financing costs | (13,113) | (14,675) | (6,426) | (7,211) |
| General expenses | (7,418) | (8,137) | (3,578) | (3,657) |
| Direct result before taxes | 36,487 | 40,215 | 19,826 | 21,065 |
| Current income tax expense | (657) | (682) | (389) | (374) |
| Movement in deferred tax assets and liabilities | 155 | 591 | 12 | 229 |
| Direct result after taxes | 35,985 | 40,124 | 19,449 | 20,920 |
| Direct result attributable to non-controlling interests | (4,258) | (5,083) | (2,359) | (2,547) |
| Direct result attributable to Vastned Retail shareholders | 31,727 | 35,041 | 17,090 | 18,373 |
| Indirect result | ||||
| Value movements in property in operation | (84,390) | (13,110) | (43,559) | (6,364) |
| Total value movements in property | (84,390) | (13,110) | (43,559) | (6,364) |
| Net result on divestments of property | 1,497 | 332 | 1,447 | 629 |
| Financial expenses | - | (221) | - | - |
| Value movements in financial derivatives | (2,091) | (2,953) | (30) | 837 |
| Reclassification of unrealised results on financial derivatives from equity |
- | 266 | - | 208 |
| Indirect result before taxes | (84,984) | (15,686) | (42,142) | (4,690) |
| Movement in deferred tax assets and liabilities | 4,707 | (513) | 2,615 | (188) |
| Indirect result after taxes | (80,277) | (16,199) | (39,527) | (4,878) |
| Indirect result attributable to non-controlling interests | 7,210 | 3,593 | 2,235 | 518 |
| Indirect investment result attributable to Vastned Retail shareholders | (73,067) | (12,606) | (37,292) | (4,360) |
| Result attributable to Vastned Retail shareholders | (41,340) | 22,435 | (20,202) | 14,013 |
| Per share (€) | ||||
| Direct investment result attributable to Vastned Retail shareholders | 1.85 | 2.03 | 1.00 | 1.07 |
| Indirect investment result attributable to Vastned Retail shareholders |
(4.26) | (0.73) | (2.17) | (0.26) |
| Result attributable to Vastned Retail shareholders | (2.41) | 1.30 | (1.17) | 0.81 |
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected] www.vastned.com
| FY 2020 |
FY 2019 |
HY2 2020 |
HY2 2019 |
|
|---|---|---|---|---|
| Net income from property | ||||
| Gross rental income | 64,916 | 69,288 | 32,419 | 34,358 |
| Other income | 508 | 272 | 313 | 129 |
| Net service charge expenses | (367) | (244) | (242) | (115) |
| Operating expenses | (8,039) | (6,289) | (2,660) | (2,439) |
| Net rental income | 57,018 | 63,027 | 29,830 | 31,933 |
| Value movements in property in operation | (84,390) | (13,110) | (43,559) | (6,364) |
| Total value movements in property | (84,390) | (13,110) | (43,559) | (6,364) |
| Net result on divestments of property | 1,497 | 332 | 1,447 | 629 |
| Total net income from property | (25,875) | 50,249 | (12,282) | 26,198 |
| Expenditure | ||||
| Financial income | 14 | 18 | 11 | 5 |
| Financial expenses | (13,127) | (14,914) | (6,437) | (7,216) |
| Value movements in financial derivatives | (2,091) | (2,953) | (30) | 837 |
| Transfer of unrealised results | ||||
| on financial derivatives from equity | - | 266 | - | 208 |
| Net financing costs | (15,204) | (17,583) | (6,456) | (6,166) |
| General expenses | (7,418) | (8,137) | (3,578) | (3,657) |
| Total expenditure | (22,622) | (25,720) | (10,034) | (9,823) |
| Result before taxes | (48,497) | 24,529 | (22,316) | 16,375 |
| Current income tax expense | (657) | (682) | (389) | (374) |
| Movement deferred tax assets and liabilities | 4,862 | 78 | 2,627 | 41 |
| Total income tax | 4,205 | (604) | 2,238 | (333) |
| Result after taxes | (44,292) | 23,925 | (20,078) | 16,042 |
| Result attributable to Vastned Retail shareholders | (41,340) | 22,435 | (20,202) | 14,013 |
| Result attributable to non-controlling interests | (2,952) | 1,490 | 124 | 2,029 |
| (44,292) | 23,925 | (20,078) | 16,042 | |
| Per share (€) | ||||
| Result | (2.41) | 1.30 | (1.17) | 0.81 |
| Diluted result | (2.41) | 1.30 | (1.17) | 0.81 |
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| FY 2020 |
FY 2019 |
HY2 2020 |
HY2 2019 |
|
|---|---|---|---|---|
| Result after taxes | (44,292) | 23,925 | (20,078) | 16,042 |
| Items not reclassified to the profit and loss account |
||||
| Remeasurement of defined benefit pension obligations Taxes on items not reclassified to |
(620) | (974) | (949) | (28) |
| the profit and loss account | - | - | - | - |
| Items that have been or could be reclassified to the profit and loss account |
||||
| Reclassification of unrealised results on financial derivatives to the profit and loss account |
- | (267) | - | (209) |
| Taxes on items that have been or could be reclassified to the profit and loss account |
- | - | - | - |
| Other comprehensive income after tax | (620) | (1,241) | (949) | (237) |
| Comprehensive income | (44,912) | 22,684 | (21,027) | 15,805 |
| Attributable to: | ||||
| Vastned Retail shareholders | (41,960) | 21,194 | (21,151) | 13,776 |
| Non-controlling interests | (2,952) | 1,490 | 124 | 2,029 |
| (44,912) | 22,684 | (21,027) | 15,805 |
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| 2020 | 2019 | |
|---|---|---|
| Assets | ||
| Property in operation | 1,469,548 | 1,568,461 |
| Accrued assets in respect of lease incentives | 5,597 | 4,721 |
| Total investment property | 1,475,145 | 1,573,182 |
| Intangible fixed assets | 500 | 474 |
| Tangible fixed assets | 877 | 1,038 |
| Right-of-use assets | 395 | 633 |
| 1,772 | 2,145 | |
| Total fixed assets | 1,476,917 | 1,575,327 |
| Assets held for sale | 7,410 | 1,575 |
| Debtors and other receivables | 17,302 | 9,204 |
| Income tax | - | 37 |
| Cash and cash equivalents | 876 | 961 |
| Total currents assets | 25,588 | 11,777 |
| Total assets | 1,502,505 | 1,587,104 |
| Equity and liabilities | ||
| Capital paid-up and called | 95,183 | 95,183 |
| Share premium reserve | 468,555 | 468,555 |
| Other reserves | 214,797 | 207,561 |
| Result attributable to Vastned Retail shareholders | (41,340) | 22,435 |
| Equity Vastned Retail shareholders | 737,195 | 793,734 |
| Equity non-controlling interests | 81,098 | 89,132 |
| Total equity | 818,293 | 882,866 |
| Deferred tax liabilities | 10,688 | 15,550 |
| Provisions in respect of employee benefits | 6,407 | 6,092 |
| Long-term interest-bearing loans | 624,793 | 580,427 |
| Long-term lease liabilities | 3,384 | 3,698 |
| Financial derivatives | 4,769 | 2,678 |
| Guarantee deposits and other long-term liabilities | 3,943 | 3,638 |
| Total long-term liabilities | 653,984 | 612,083 |
| Payable to banks | 8,547 | 8,283 |
| Redemption of long-term interest-bearing loans | - | 62,470 |
| Short-term lease liabilities | 272 | 320 |
| Income tax | 398 | 526 |
| Other liabilities and accruals | 21,011 | 20,556 |
| Total long-term liabilities | 30,228 | 92,155 |
| Total equity and liabilities | 1,502,505 | 1,587,104 |
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| Capital paid-up and called |
Share premium reserve |
Hedging reserve in respect of financial derivatives |
Other reserves |
Result attributable to Vastned Retail shareholders |
Equity Vastned Retail shareholders |
Equity non-controlling interests |
Total equity |
|
|---|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2019 | 95,183 | 472,640 | 267 | 221,207 | 41,095 | 830,392 | 92,637 | 923,029 |
| Result | - | - | - | - | 22,435 | 22,435 | 1,490 | 23,925 |
| Other comprehensive income | - | - | (267) | (974) | - | (1,241) | - | (1,241) |
| Comprehensive income | - | - | (267) | (974) | 22,435 | 21,194 | 1,490 | 22,684 |
| Final dividend previous financial year in cash | - | - | - | - | (22,984) | (22,984) | (4,995) | (27,979) |
| Interim dividend 2019 in cash | - | - | - | (9,948) | - | (9,948) | - | (9,948) |
| Contribution from profit appropriation | - | - | - | 18,111 | (18,111) | - | - | - |
| Equity component of convertible bond loan | - | (4,085) | - | 4,085 | - | - | - | - |
| Share buyback | (24,920) | - | (24,920) | - | (24,920) | |||
| Balance as at 31 December 2019 | 95,183 | 468,555 | - | 207,561 | 22,435 | 793,734 | 89,132 | 882,866 |
| Result | - | - | - | - | (41,340) | (41,340) | (2,952) | (44,292) |
| Other comprehensive income | - | - | - | (620) | - | (620) | - | (620) |
| Comprehensive income | - | - | - | (620) | (41,340) | (41,960) | (2,952) | (44,912) |
| Final dividend previous financial year in cash | - | - | - | - | (14,579) | (14,579) | (5,082) | (19,661) |
| Addition from profit appropriation | - | - | - | 7,856 | (7,856) | - | - | - |
| Balance as at 31 December 2020 | 95,183 | 468,555 | - | 214,797 | (41,340) | 737,195 | 81,098 | 818,293 |
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected]
2020 2019
| Cash flow from operating activities | ||
|---|---|---|
| Result after taxes | (44,292) | 23,925 |
| Adjustments for: | ||
| Value movements in investment properties | 84,390 | 13,110 |
| Net result on divestments of investment properties | (1,497) | (332) |
| Net financing costs | 15,204 | 17,583 |
| Income tax | (4,205) | 604 |
| Cash flow from operating activities before changes in working capital and provisions |
49,600 | 54,890 |
| Movement in current assets | (7,880) | (886) |
| Movement in short-term liabilities | 1,208 | (1,399) |
| Movement in provisions | (394) | (360) |
| 42,534 | 52,245 | |
| Interest received | 14 | 18 |
| Interest paid | (13,229) | (13,829) |
| Income tax paid | (748) | (236) |
| Cash flow from operating activities | 28,571 | 38,198 |
| Cash flow from investing activities | ||
| Investment properties acquisitions | - | (13,749) |
| Capital expenditure on investment properties | (3,134) | (2,679) |
| Divestments of investment properties | 12,366 | 12,464 |
| Cash flow from property | 9,232 | (3,964) |
| Movement in other fixed assets | 136 | (398) |
| Cash flow from investing activities | 9,368 | (4,362) |
| Cash flow from financing activities | ||
| Share buyback | - | (24,920) |
| Dividend paid | (14,579) | (32,932) |
| Dividend paid to non-controlling interests | (5,082) | (4,995) |
| Interest-bearing loans drawn down | 44,203 | 169,038 |
| Interest-bearing loans and lease liabilities redeemed | (62,871) | (135,438) |
| Settlement of interest rate derivatives | - | (5,306) |
| Movements in guarantee deposits and other long-term liabilities | 305 | 132 |
| Cash flow from financing activities | (38,012) | (34,421) |
| Net increase/(decrease) in cash and cash equivalents | (85) | (585) |
| Cash and cash equivalents as at 1 January | 961 | 1,546 |
| Cash and cash equivalents as at 31 December | 876 | 961 |
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| Result | Netherlands | France | Belgium | Spain | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Net rental income | 26,154 | 28,884 | 12,749 | 12,835 | 15,148 | 18,281 | 2,967 | 3,027 | 57,018 | 63,027 |
| Value movements in property in operation | (41,067) | (4,605) | (10,234) | (43) | (24,251) | (10,762) | (8,838) | 2,300 | (84,390) | (13,110) |
| Net result on divestments of investment properties |
(61) | (486) | 50 | (40) | 1,508 | 858 | - | - | 1,497 | 332 |
| Total net income from property | (14,974) | 23,793 | 2,565 | 12,752 | (7,595) | 8,377 | (5,871) | 5,327 | (25,875) | 50,249 |
| Net financing costs | (15,204) | (17,583) | ||||||||
| General expenses | (7,418) | (8,137) | ||||||||
| Income tax | 4,205 | (604) |
| Netherlands | France Belgium |
Spain | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Property in operation: | ||||||||||
| Balance as at 1 January | 683,047 | 680,057 | 415,134 | 414,717 | 370,881 | 383,351 | 99,399 | 97,099 | 1,568,461 | 1,575,224 |
| - Acquisitions | - | 13,749 | - | - | - | - | - | - | - | 13,749 |
| - Investments | 976 | 1,320 | 995 | 460 | 306 | 643 | - | - | 2,277 | 2,423 |
| - Transferred from Assets held for sale | 1,575 | - | - | - | - | - | - | - | 1,575 | - |
| - Transferred to Assets held for sale | - | (3,704) | - | - | - | (1,488) | (7,410) | - | (7,410) | (5,192) |
| - Divestments | (2,690) | (3,770) | - | - | (8,275) | (863) | - | - | (10,965) | (4,633) |
| 682,908 | 687,652 | 416,129 | 415,177 | 362,912 | 381,643 | 91,989 | 97,099 | 1,553,938 | 1,581,571 | |
| - Value movements | (41,067) | (4,605) | (10,234) | (43) | (24,251) | (10,762) | (8,838) | 2,300 | (84,390) | (13,110) |
| Balance as at 31 December | 641,841 | 683,047 | 405,895 | 415,134 | 338,661 | 370,881 | 83,151 | 99,399 | 1.469.548 | 1,568,461 |
| Accrued assets in respect of lease incentives |
2,998 | 3,509 | 1,300 | 695 | 864 | 246 | 435 | 271 | 5,597 | 4,721 |
| Total property in operation | 644,839 | 686,556 | 407,195 | 415,829 | 339,525 | 371,127 | 83,586 | 99,670 | 1,475,145 | 1,573,182 |
| Lease liabilities | (2,569) | (2,571) | - | - | (723) | (823) | - | - | (3,292) | (3,394) |
| Appraisal value as at 31 December | 642,270 683,985 407,195 415,829 338,802 370,304 | 83,586 99,670 | 1,471,853 1,569,788 |
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| 2020 | 2019 | |
|---|---|---|
| Balance as at 1 January | 1,575 | 3,500 |
| Transferred from Property in operation | 7,410 | 5,192 |
| Transferred to Property in operation | (1,575) | - |
| Transferred from Accrued assets in respect of lease incentives | - | 13 |
| Divestments | - | (7,130) |
| Value movements | 7,410 - |
1,575 - |
| Balance as at 31 December | 7,410 | 1,575 |
No properties classified as assets held for sale were sold in 2020 (2019: six in the Netherlands, one in Belgium). As at 31 December 2020, one asset was being held for sale (31 December 2019: two assets).
| Total interest-bearing debts | 636,996 | 655,198 |
|---|---|---|
| Total short-term interest-bearing debts | 8,819 | 71,073 |
| Short-term lease liabilities | 272 | 320 |
| Redemption of long-term interest-bearing loans | - | 62,470 |
| Payable to banks | 8,547 | 8,283 |
| Short-term interest-bearing debts | ||
| Total long-term interest-bearing debts | 628,177 | 584,125 |
| Lease liabilities | 3,384 | 3,698 |
| Unsecured loans | 624,793 | 580,427 |
| Long-term interest-bearing debts | ||
| 2020 | 2019 | |
| As at 31 December, the interest-bearing debts consisted of: |
Movements in the interest-bearing debts were as follows:
| 2020 | 2019 | |
|---|---|---|
| Balance as at 1 January | 655,198 | 620,732 |
| Interest-bearing debts drawn down | 44,203 | 169,038 |
| Redemptions | (62,871) | (135,438) |
| Application of effective interest method | 466 | 866 |
| Balance as at 31 January | 636,996 | 655,198 |
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam
The accounting policies used in this press release comply with the International Financial Reporting Standards (IFRS) as endorsed by the European Union.
The financial statements are presented in euros; amounts are rounded off to thousands of euros, unless stated differently.
Property and financial derivatives are valued at fair value. The other items in the financial statements are valued at historical or amortised cost.
In the presentation of the annual accounts the Executive Board has made judgements concerning estimates and assumptions which impact the figures included in the financial statements. The estimates and underlying assumptions concerning the future are based on historical experience and other relevant factors, given the circumstances on the balance sheet date. The actual results may deviate from these estimates.
The estimates and underlying assumptions are evaluated regularly. Any adjustments are recognised in the period in which the estimate was reviewed, or if the estimate also impacts future periods, also in these future periods.
During 2020, none of the members of the Supervisory Board and Executive Board of Vastned Retail had a personal interest in the investments made by Vastned Retail. To Vastned Retail's best knowledge, no property transactions were effected during the period under review involving persons or institutions that could be regarded as parties with direct interests in Vastned Retail.
This press release is based on the 2020 financial statements that were prepared on 10 February 2021 and for which Ernst & Young Auditors LLP has issued an unqualified opinion. The press release concerns only part of the financial statements. The financial statements have not yet been published in accordance with the statutory provisions and have not yet been adopted. The General Meeting of Shareholders at which the financial statements will be adopted is scheduled for 15 April 2021.
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
The EPRA Best Practices Recommendations ('BPR') published by EPRA's Reporting and Accounting Committee contain recommendations for the determination of key performance indicators of the property portfolio.
Vastned acknowledges the importance of standardising the reporting on performance indicators for the sake of comparability and improving the quality of the information provision to investors and other users. The financial statements in this chapter are presented in euros; amounts are rounded off to thousands of euros, unless stated differently.
| EPRA PERFORMANCE INDICATORS | (€ THOUSAND) | PER SHARE (€) | ||||
|---|---|---|---|---|---|---|
| EPRA performance indicator | Table | 2020 | 2019 | 2020 | 2019 | |
| EPRA Earnings | 1 | 31,727 | 35,041 | 1.85 | 2.03 | |
| EPRA NRV | 2 | 833,563 | 897,145 | 48.60 | 52.31 | |
| EPRA NTA | 2 | 750,833 | 810,455 | 43.78 | 47.25 | |
| EPRA NDV | 2 | 725,168 | 787,248 | 42.28 | 45.90 | |
| EPRA NAV | 2 | 751,898 | 810,855 | 43.84 | 47.28 | |
| EPRA NNNAV | 2 | 726,641 | 792,420 | 42.36 | 46.20 | |
| EPRA Net Initial Yield (NIY) | 3 (i) | 4.0% | 3.7% | |||
| EPRA Topped-up NIY | 3 (ii) | 4.1% | 4.0% | |||
| EPRA Vacancy Rate | 4 | 3.6% | 2.0% | |||
| EPRA Cost Ratio (including direct vacancy costs) |
5 (i) | 24.2% | 21.1% | |||
| EPRA Cost Ratio (excluding direct vacancy costs) |
5 (ii) | 23.2% | 20.3% | |||
| Capital expenditure | 6 | 2,277 | 16,172 |
| 2020 | 2019 | |
|---|---|---|
| Result as stated in consolidated IFRS profit and loss account |
(44,292) | 23,925 |
| Value movements in investment properties | 84,390 | 13,110 |
| Net result on divestments of investment properties | (1,497) | (332) |
| Financial expenses | - | 221 |
| Value movements in financial derivatives | 2,091 | 2,687 |
| Movement in deferred tax assets and liabilities | (4,707) | 513 |
| Attributable to non-controlling interests | (4,258) | (5,083) |
| EPRA Earnings | 31,727 | 35,041 |
| EPRA Earnings per share (EPS) | 1.85 | 2.03 |
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam
| 31 December 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| EPRA NRV |
EPRA NTA |
EPRA NDV |
EPRA NAV |
EPRA NNNAV |
EPRA NRV |
EPRA NTA |
EPRA NDV |
EPRA NAV |
EPRA NNNAV |
|
| Equity Vastned Retail shareholders |
737,195 | 737,195 | 737,195 | 737,195 | 737,195 | 793,734 | 793,734 | 793,734 | 793,734 | 793,734 |
| Hybrid instruments | - | - | - | - | - | - | - | - | - | - |
| Diluted NAV | 737,195 | 737,195 | 737,195 | 737,195 | 737,195 | 793,734 | 793,734 | 793,734 | 793,734 | 793,734 |
| Diluted NAV at fair value | 737,195 | 737,195 | 737,195 | 737,195 | 737,195 | 793,734 | 793,734 | 793,734 | 793,734 | 793,734 |
| Deferred taxes in relation to fair value gains of property |
10,635 | 10,005 | - | 10,635 | 1,473 | 15,264 | 15,264 | - | 15,264 | 5,172 |
| Fair value of financial derivatives |
4,068 | 4,068 | - | 4,068 | - | 1,857 | 1,857 | - | 1,857 | - |
| Intangible fixed assets Fair value of fixed-rate |
- | (435) | - | - | - | - | (400) | - | - | - |
| interest-bearing debts | - | - | (12,027) | - | (12,027) | - | - | (6,486) | - | (6,486) |
| Real-estate transfer tax | 81,665 | - | - | - | - | 86,290 | - | - | - | |
| NAV | 833,563 | 750,833 | 725,168 | 751,898 | 726,641 | 897,145 | 810,455 | 787,248 | 810,855 | 792,420 |
| Fully diluted number of shares |
17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 |
| NAV per share | 48.60 | 43.78 | 42.28 | 43.84 | 42.36 | 52.31 | 47.25 | 45.90 | 47.28 | 46.20 |
For the sake of comparison with the data published in the past, the EPRA NAV and EPRA NNNAV are still included in the overview in 2020.
| 31 December 2020 | |||||||
|---|---|---|---|---|---|---|---|
| Fair value | As a percentage of total portfolio |
Percentage of excluded deferred taxes |
Fair value | As a percentage of total portfolio |
Percentage of excluded deferred taxes |
||
| The portion of the portfolio that is subject to deferred taxes and that is intended to hold and not to sell in the long run |
202,575 | 14 | 100 | 231,397 | 15 | 100 |
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected]
| Netherlands | France | Belgium | Spain | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Investment property | 642,270 | 685,560 | 407,195 | 415,829 | 338,802 | 370,304 | 90,996 | 99,670 | 1,479,263 | 1,571,363 |
| addition: Estimated transaction fees |
43,852 | 47,989 | 29,422 | 29,537 | 8,469 | 9,258 | 2,845 | 2,701 | 84,588 | 89,485 |
| Investment value of property (B) | 686,122 | 733,549 | 436,617 | 445,366 | 347,271 | 379,562 | 93,841 | 102,371 | 1,563,851 | 1,660,848 |
| Annualised gross rental income | 31,370 | 33,277 | 15,508 | 12,022 | 17,977 | 19,229 | 3,569 | 3,673 | 68,424 | 68,201 |
| Property outgoings | (3,969) | (4,406) | (544) | (568) | (1,245) | (1,831) | (242) | (240) | (6,000) | (7,045) |
| Annualised net rental income (A) | 27,401 | 28,871 | 14,964 | 11,454 | 16,732 | 17,398 | 3,327 | 3,433 | 62,424 | 61,156 |
| Effect of rent-free periods and other lease incentives |
945 | 78 | 762 | 3.874 | 267 | 804 | 110 | 234 | 2,084 | 4,990 |
| Topped-up annualised net rental income (C) |
28,346 | 28,949 | 15,726 | 15,328 | 16,999 | 18,202 | 3,437 | 3,667 | 64,508 | 66,146 |
| (i) EPRA Net Initial Yield (A/B) | 4.0% | 3.9% | 3.4% | 2.6% | 4.8% | 4.6% | 3.5% | 3.4% | 4.0% | 3.7% |
| (ii) EPRA Topped-up Net Initial Yield (C/B) | 4.1% | 3.9% | 3.6% | 3.4% | 4.9% | 4.8% | 3.7% | 3.6% | 4.1% | 4.0% |
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368 [email protected]
| Gross rental income |
Net rental income |
Lettable floor area (m2) |
Annualised gross rental income |
Estimated rental value (ERV) of vacant properties |
Estimated rental value (ERV) |
EPRA Vacancy rate |
|
|---|---|---|---|---|---|---|---|
| Netherlands | 32,568 | 28,884 | 107,589 | 33,277 | 1,196 | 33,551 | 3.6% |
| France | 13,642 | 12,835 | 21,126 | 12,022 | 33 | 17,394 | 0.2% |
| Belgium | 19,664 | 18,281 | 86,738 | 19,229 | 240 | 18,945 | 1.3% |
| Spain | 3,414 | 3,027 | 3,419 | 3,673 | - | 3,823 | - |
| Total | 69,288 | 63,027 | 218,872 | 68,201 | 1,469 | 73,713 | 2.0% |
De Boelelaan 7 1083 HJ Amsterdam
PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
| 2020 | 2019 |
|---|---|
| 7,418 | 8,137 |
| 8,039 | 6,289 |
| 367 | 244 |
| 15,824 | 14,670 |
| (617) | (566) |
| 15,207 | 14,104 |
| 65,424 | 69,560 |
| 24.2% | 21.1% |
| 23.2% | 20.3% |
1) Including other income of € 508 (2019: € 272)
In 2020, no operating expenses were capitalised (2019: nil).
Vastned capitalises the operating expenses directly attributable to property under renovation during the period that the property under renovation is not available for letting. General expenses (overheads) are not capitalised.
| 6 CAPITAL EXPENDITURE | 2020 | 2019 |
|---|---|---|
| Acquisitions 1) | - | 13,749 |
| Development | - | - |
| Like-for-like portfolio 2) | 2,277 | 2,423 |
| Other | - | - |
| 2,277 | 16,172 |
1) Concerns acquisition of assets in Amsterdam in 2019
2) Concerns improvements to several assets already held in various countries.
Vastned has no interests in joint ventures.
Vastned Retail
De Boelelaan 7 1083 HJ Amsterdam PO Box 22276 1100 CG Amsterdam Tel.: +31 202424368
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