Earnings Release • Feb 8, 2018
Earnings Release
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PRESS RELEASE
REGULATED INFORMATION / EMBARGO UNTIL 8 FEBRUARY 2018, 6.00 PM ANTWERP, 8 FEBRUARY 2018
1 With unchanged composition of the real estate portfolio compared with 31 December 2016.
2 In accordance with the issued guidelines of the European Securities and Markets Authority (ESMA), which are applicable as of 3 July 2016, the Alternative Performance Measures (APM) used by Vastned Retail Belgium are included. The definitions, the use and the related reconciliation tables are included in the chapter "Alternative Performance Measures" of the Annual Report 2017 and also on the website www.vastned.be there is a separate Lexicon available with regard to these APM's. A consequence of these guidelines is that the term used prior to this, "operating distributable result", is no longer usable and has been changed to "EPRA earnings". However, with regard to content there is no difference from "operating distributable result", the term used previously.
3 The increase in EPRA earnings compared to the prognosis as at 30 September 2017 is the result of changed insights in the accounting treatment of the settlement of an interest rate swap.
PRESS RELEASE ANNUAL RESULTS 2017
| 1. | Operating activities in 2017 | 3 | |
|---|---|---|---|
| 1.1. | General and strategic development | 3 | |
| 1.2. | Development of real estate portfolio | 4 | |
| 1.3. | Investments | 8 | |
| 1.4. | Redevelopments | 9 | |
| 1.5. | Divestments | 9 | |
| 1.6. | Leases | 10 | |
| 2. | Financial results 2017 | 12 | |
| 2.1. | Consolidated income statement | 12 | |
| 2.2. | Consolidated balance sheet | 14 | |
| 2.3. | Financial structure | 17 | |
| 3. | Outlook for 2018 | 19 | |
| 4. | Subsequent events | 19 | |
| 5. | Financial calendar 2018 | 20 | |
| Annexes: Financial statements |
| 1. | Consolidated income statement | 21 |
|---|---|---|
| 2. | Consolidated statement of comprehensive income | 22 |
| 3. | Consolidated balance sheet | 23 |
| 4. | Statement of changes in consolidated equity | 24 |
Vastned Retail Belgium continued to pursue its approach in 2017 by means of an investment strategy focusing explicitly on premium quality locations and properties.
Vastned Retail Belgium believes that popular high streets in the city centres of major cities guarantee the most authentic and unique shopping experience while at the same time offering the greatest security as a long-term investment. Based on currently identifiable trends in the retail market, Vastned Retail Belgium intends to continue to concentrate on core city assets. Core cities are attractive shopping cities that have positive demographic growth, strong purchasing power, a historic city centre, are highly attractive to tourists and are home to national and international institutions and universities. These include cities such as Antwerp, Brussels, Bruges and Ghent. Vastned Retail Belgium will focus exclusively on the prime high streets in the historic centres of these cities. On 31 December 2017, 59% of the real estate portfolio has already been invested in these types of locations.
The aim is to achieve the strategic goal of investing 75% of the portfolio in these markets in the segment of core city assets through acquisitions and divestments. For the remaining 25%, Vastned Retail Belgium will continue to retain highquality retail warehouse locations, retail parks and inner-city locations in other cities in its portfolio.
In this context, the company invested in three core city assets in the historic city centre of Antwerp in 2017, namely 3 contiguous core city assets located at Steenhouwersvest 44, 46 and 48, representing a total investment of €6 million. On Zonnestraat in Ghent, the construction of the commercial premises for a new core city asset is almost complete.
In terms of divestments, in 2017 Vastned Retail Belgium sold one non-strategic retail warehouse at a secondary retail location, thereby further increasing the quality of the real estate portfolio.
The strategic focus on core city assets is manifesting itself in the letting of the properties to solid international tenants. The success of the strategic focus is also apparent from the 100% occupancy rate in this segment and the increase in the fair value of the real estate portfolio.
In the area of leases, 2017 was an active year for Vastned Retail Belgium. A total of 23 rental transactions were concluded that were valued at €1.9 million in annual rental income which represents approximately 9% of the company's total annual rental income.
EPRA earnings amounted to €13.3 million for financial year 2017, compared with €12.5 million for financial year 2016, showing an increase of €0.8 million or about 6.8%. This increase is mainly attributable to an increase in rental income combined with a decrease in financing costs.
With 5.078.525 shares, this represents a gross dividend of €2.62 per share for financial year 2017, compared to €2.45 in 2016. This implies that the gross dividend share yield is 5.8% based on the share price as at 31 December 2017.
Antwerp - Steenhouwersvest - Diane Von Furstenberg
As at 31 December 2017, 59% of the real estate portfolio of Vastned Retail Belgium consisted of core city assets, i.e. prime retail properties located on the best shopping streets of the major cities of Antwerp, Brussels, Ghent and Bruges (59% as
at 31 December 2016). 41% of the portfolio consists of mixed retail locations, i.e. inner-city shops outside the premium cities, retail parks and retail warehouses (41% as at 31 December 2016).
| REAL ESTATE PORTFOLIO | 31.12.2017 | 31.12.2016 |
|---|---|---|
| Fair value of investment properties (€ 000) | 378.195 | 350.719 |
| Total leasable space (m²) | 89.877 | 90.255 |
As at 31 December 2017, the fair value of the investment properties of Vastned Retail Belgium was €378 million (€351 million). This increase by €27 million in 2017 compared to 31 December 2016 is primarily the combined effect of:
The total fair value of investment properties as of 31 December 2017 is €378 million.
Mechelen - Bruul - H&M
The fair value of the existing real estate portfolio of Vastned Retail Belgium increased by €22 million or by approximately 6% in 2017 (based on an unchanged composition of the real estate portfolio compared to 31 December 2016). The fair value of the core city assets rose by approximately 5% and the fair value of the mixed retail locations rose by approximately 8%.
Market rents and yields5 improved in 2017, as well as for the core city assets as in the segment of the mixed retail locations. The average yield in the real estate company's portfolio decreased slightly by 30 base points.
As at 31 December 2017, the average yield in the Vastned Retail Belgium portfolio was 4.47% for core city assets (4.75% as at 31 December 2016) and 6.45% for mixed retail locations (6.76% as at 31 December 2016).
Antwerp - Arme Duivelstraat - Les Hommes
Vastned Retail Belgium's investment policy is geared toward retail properties and includes criteria for spreading risk in the real estate portfolio. These criteria are based on the type of property, the geographic location and the type of tenants.
As at 31 December 2017 this risk spread was as follows:
As at 31 December 2017, 59% of the real estate portfolio consists of core city assets and 41% of mixed retail locations (inner-city shops outside the premium cities, retail parks and retail warehouses).
The portfolio contains as per 31 December 2017 149 leasable units, distributed across 61 different locations.
Vastned Retail Belgium had obtained a derogation from the FSMA regarding the 20% limitation until October 2017 in accordance with Article 30 §3 and §4 of the RREC Act. This Article prohibits RRECs from investing more than 20% of their assets in a single property entity. As a result of this derogation, the debt ratio of the company had been limited to 33% instead of the statutory 65%. At the time the derogation expired, the share of the buildings let to H&M was less than 20%, the consequence being that the company did not have to request an extension of this derogation.
As a result, the company is no longer bound to the limitation of its debt ratio.
As at 31 December 2017, the share of the buildings let to H&M (Hennes & Mauritz) amounted to 19.7% of the consolidated assets of Vastned Retail Belgium.
Regarding new investments, the focus of Vastned Retail Belgium is on high-quality retail property in prime locations in the centre of major cities in Belgium such as Antwerp, Brussels, Ghent and Bruges.
The acquisition of three properties, located at Steenhouwersvest 44-46-48 in the historic city centre of Antwerp, is entirely in line with Vastned Retail Belgium's strategy to invest in core city assets. These three properties were recently completely renovated and converted into three commercial units and five apartments.
The retail property located at number 44 has a sales surface of 60 square metres on the ground floor and is leased to Diane Von Furstenberg. The store located at number 46 has a sales surface of 66 square metres on the ground floor and 180 square metres on the first floor and is leased to Damoy. The store located at number 48 measures 65 square metres and is leased to Le Pain Quotidien.
The properties have been acquired for a total amount of approximately €6 million via the acquisition of the shares of the company RR Developments NV. This acquisition, at a yield in line with market conditions, is being financed from the available credit lines and by the takeovers of the credit lines of RR Developments. The purchase value is in line with the valuation by the company's independent property expert.
This acquisition will generate a rental income flow for the regulated real estate company of approximately €0.3 million annually and immediately contribute to the consolidated EPRA earnings.
The second phase, dealing with the prominent redevelopment and thorough restoration of a core city asset in the historic city centre of Ghent, has been launched at the end of March 2017.
The existing retail property at Zonnestraat 10 in Ghent was demolished and construction works have progressed very well. The retail property will be rebuilt as an up-to-date building with both retail and residential functionalities.
This redevelopment involves an investment amount of approximately €1 million. Delivery of the commercial premises to the new tenant, the women's clothing brand YAYA, took place on 25 January 2018. The opening of this shop specialising in women's apparel, described as a mix of authentic items, both feminine and casual and nonchalant with a feminine edge, along with lifestyle products, is planned for March 2018.
Delivery of the apartments above the shop is anticipated in the course of the third quarter of 2018.
Ghent - Zonnestraat - AS Adventure Mechelen - Bruul - H&M
In the first quarter of 2017, Vastned Retail Belgium merged the shop let to H&M on Bruul 42-44 in Mechelen with the adjacent vacant corner retail property, expanding the current retail space of H&M to make space to open an H&M Home in this retail unit alongside H&M's clothing offer. This redevelopment involves an investment amount of €0.4 million.
It is the strategy of Vastned Retail Belgium to reduce in the long term the share of mixed retail locations in the company's real estate portfolio and to move towards a 75% share of core city assets in the portfolio.
Vastned Retail Belgium sold a non-strategic retail property located in Kuurne for an amount of €0.5 million in the second quarter of 2017. The building has a total retail surface area of 736 m² and has been vacant for quite some time.
This divestment is entirely in keeping with the strategy of the real estate company to focus on core city assets. Kuurne is a secondary retail location where rents are under pressure as a result of decreasing numbers of visitors and the increase in internet sales. For these reasons, the real estate company considered it opportune to divest the retail property.
In the area of leases, 2017 was an active year for Vastned Retail Belgium. A total of 23 rental transactions were concluded that were valued at €1.9 million in annual rental income. This represents roughly 9% of the company's total annual rental income. In 2017, 15 lease agreements went into force.
There is one lease agreement for which a condition precedent still needs to be fulfilled. The other lease agreements will commence in the course of 2018.
In 2017, 13 rental transactions were concluded with new tenants for a total annual rental volume of €0.6 million.
This concerns 10 rentals of unoccupied shops, 2 rentals immediately following the departure of the previous tenant and 1 rental immediately following a bankruptcy of the previous tenant. These 13 lease agreements represent approximately 3.1% of the company's total rental income. The new rent for these lease agreements is on average 2% lower than the rent for the previous lease agreements. This decrease in rental price represents only € 13.000, or not even 0.1% of the total annual rental income.
These transactions lead to a drop in vacancy rates in both segments, which in turn results in an increasing cash flow.
The core city assets remain steadfast, and the rent levels for the best locations in these cities are still increasing slightly.
Due to the current market situation, it is impossible to realise a substantial rent increase when leasing mixed retail locations to new tenants, and it is often necessary to lower the rent at secondary locations.
Vastned Retail Belgium renewed 10 lease agreements in 2017 for a total annual rental volume of approximately €1.3 million. On average, the new rent for these lease agreements is 1% higher than the rent being charged in the current lease agreements. These 10 lease agreements represent roughly 6% of the company's total rental income.
The occupancy rate of the portfolio amounted to 99% as at 31 December 2017, which is an increase of 1% compared to 31 December 2016. The occupancy rate of the real estate portfolio with regard to the segment of core city assets
As at 31 December 2017, the occupancy rate of the real estate portfolio was 99%.
has increased from 99% at the end of 2016 to 100% as at 31 December 2016. The occupancy rate of the mixed retail locations increased also with 1% compared to the previous accounting year and amounts to 98%.
| IN THOUSANDS € | 2017 | 2016 |
|---|---|---|
| Rental income | 19.018 | 18.475 |
| Rental-related expenses | -131 | -136 |
| Property management costs and income | 58 | 39 |
| Property result | 18.945 | 18.378 |
| Property charges | -1.749 | -1.781 |
| General costs and other operating costs and income | -980 | -1.088 |
| Operating result before result on portfolio | 16.216 | 15.509 |
| Result on disposals of investment properties | -21 | 17 |
| Changes in fair value of investment properties | 20.935 | 7.062 |
| Other result on portfolio | -501 | 56 |
| Operating result | 36.629 | 22.644 |
| Financial result (excl. changes in fair value - IAS 39) | -2.595 | -2.947 |
| Changes in fair value of financial assets and liabilities | 886 | 889 |
| (ineffective hedges - IAS 39) | ||
| Taxes | -251 | -53 |
| Net result | 34.669 | 20.533 |
| Note: | ||
| EPRA earnings | 13.306 | 12.463 |
| Result on portfolio | 20.413 | 7.135 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) and other non-distributable elements |
950 | 935 |
| RESULT PER SHARE | 2017 | 2016 |
|---|---|---|
| Number of shares entitled to dividend | 5.078.525 | 5.078.525 |
| Weighted average number of shares | 5.078.525 | 5.078.525 |
| Net result (€) | 6,83 | 4,04 |
| Gross dividend (€) | 2,62 | 2,45 |
| Net dividend7 (€) |
1,8340 | 1,7150 |
6 Between brackets: comparative figures for the financial year 2016.
7 The withholding tax on dividends of public regulated real estate companies was increased from 27% to 30% (subject to certain exemptions) with effect from 1 January 2017, pursuant to the Program Act of 25 December 2016, published in the Belgian Official Gazette of 29 December 2016.
PRESS RELEASE ANNUAL RESULTS 2017
In 2017, the rental income of Vastned Retail Belgium amounted to €19.0 million (€18.5 million). The increase of €0.5 million, or 3% compared to 2016, is mainly attributable to the acquisition of three core city assets in the city centre of Antwerp on the one hand, and to new leases entered into in the course of the 2016 and 2017 financial years on the other. Furthermore, one-off indemnity payments were received from tenants who left their premises before the contractual break.
The real estate costs amounted to €1.7 million (€1.8 million) and decreased by €0.1 million, primarily due to a drop in the charges and taxes on unlet properties as a result of a decrease in the vacancy rate during the 2017 financial year.
General costs and other operating income and costs amounted to €1.0 million (€1.1 million) and decreased by €0.1 million compared to previous financial year as a result of a more limited staffing in finance and administration.
The increase in rental income is reflected in the increase of the operating result before result on portfolio of 2017, this result increased by €0.7 million to €16.2 million (€15.5 million).
The operational margin of Vastned Retail Belgium is 86% for financial year 2017 (84% in 2016).
The result on disposal of investment properties amounts to €-21.000 (€17.000) and comprises the capital loss realised on the sale of one non-strategic retail warehouse at a secondary location in 2017. The net sales price of €0.5 million is approximately 3.7% below the carrying amount as at 31 December 2016 (fair value as determined by the company's independent property expert).
In 2017, the fair value of the existing real estate portfolio of Vastned Retail Belgium increased by 6.2% compared to 2016 year-end. The changes in fair value of investment properties are also positive in 2017 and amount to €20.9 million compared to €7.1 million in 2016. This increase is primarily due to a €21 million increase in the fair value of the existing real estate portfolio, and this in both segments, i.e. core city assets and mixed retail locations, as a result of stronger yields and new leases.
The financial result (excl. changes in the fair value of financial assets and liabilities (ineffective hedges - IAS 39)) amounted to €-2.6 million for the 2017 financial year (€-2.9 million), which constitutes a €0.3 million decrease compared to 2016, primarily attributable to the refinancing of the entire loan portfolio under better conditions.
The average interest rate of the credit facilities of the company for financial year 2017 decreased to 2.6% including bank margins (3.0% in 2016). The average interest rate, excluding the early termination fee for the refinancing, was 2.5% in 2017.
In 2017 the changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) included the decrease in the negative market value of the interest rate swaps which, in line with IAS 39, cannot be classified as cash flow hedging instruments, in the amount of €0.9 million (€0.9 million).
The net result of Vastned Retail Belgium for financial year 2017 amounts to €34.7 million (€20.5 million) and may be divided into:
The EPRA earnings of Vastned Retail Belgium therefore increased in financial year 2017 to €13.3 million (€12.5 million). With 5.078.525 shares, this represents a gross dividend of €2.62 per share for financial year 2017, compared to €2.45 in 2015. This implies that the gross dividend share yield is 5.8% based on the share price as at 31 December 2017.
The increase in EPRA earnings compared to the prognosis as at 30 September 2017 is the result of changed insights in the accounting treatment of the settlement of an interest rate swap. Due to the fact that this transaction was processed in a different manner as at 31 December 2017 compared to the initial processing, this has positively influenced the EPRA earnings and consequently the gross dividend per share by 12 cents per share.
| IN THOUSANDS € | 31.12.2017 | 31.12.2016 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 378.759 | 351.329 |
| Current assets | 1.907 | 1.583 |
| Total assets | 380.666 | 352.912 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | 274.508 | 252.281 |
| Share capital | 97.213 | 97.213 |
| Share premium | 4.183 | 4.183 |
| Reserves | 138.443 | 130.352 |
| Net result of the financial year | 34.669 | 20.533 |
| Non-controlling interest | 0 | 0 |
| Liabilities | 106.158 | 100.631 |
| Non-current liabilities | 98.146 | 63.304 |
| Current liabilities | 8.012 | 37.327 |
| Total shareholders' equity and liabilities | 380.666 | 352.912 |
On 31 December 2017, the fair value of the investment properties of Vastned Retail Belgium was €378 million (€351 million). This increase by €27 million in 2017 compared to 31 December 2017 is primarily the combined effect of:
The fair value of the real estate portfolio amounts to € 378 million as at 31 December 2017.
The company's shareholders' equity amounts to €275 million (€252 million). The share capital (€97 million) and the share premium (€4 million) remained unchanged in comparison to last year. The total number of shares entitled to dividend amounted to 5.078.525 units as at 31 December 2017. The company's reserves amount to €138 million (€130 million) as at 31 December 2017.
In comparison to 2016, the non-current liabilities increased to €98 million (€63 million) and consist mainly of long-term financing in the amount of €96 million and additionally the negative market value of the long-term hedging instruments in the amount of €2 million. The increase of €35 million is primarily due to the refinancing of the loan portfolio implemented in 2017. Through this refinancing, the maturity of the loan portfolio was significantly extended to an average of 5.3 years, compared to an average of 2.8 years in the previous financial year.
Current liabilities amounted to €8 million (€37 million), and consisted of €4 million (€33 million) in current financial debts (all of which comprise short-term financing on a rolling basis), €2 million (€3 million) in trade debts and other current debts and €1 million (€1 million) in accrued charges and deferred income and other liabilities.
The debt ratio of the company amounted to 27% as at 31 December 2017 and remained stable compared to 31 December 2016.
As at 31 December 2017, the company had a stable balance sheet with a low debt ratio of 27% (27% as at 31 December 2016).
| DATA PER SHARE | 31.12.2017 | 31.12.2016 |
|---|---|---|
| Number of shares entitled to dividend | 5.078.525 | 5.078.525 |
| Net value (fair value) (€) | 54,05 | 49,68 |
| Net value (investment value) (€) | 55,83 | 51,36 |
| Net asset value EPRA9 (€) |
54,52 | 50,33 |
| Share price on closing date (€) | 45,00 | 53,85 |
| Premium (+) / Discount (-) to net value (fair value) (%) | -17% | 8% |
| Debt ratio (max 65 %) | 27% | 27% |
As at 31 December 2017, the net value (fair value) of the share was €54.05 (€49.68). As the share price as at 31 December 2017 was €45.00, the Vastned Retail Belgium share is listed at a discount of approximately 17% compared to this net value (fair value).
As the share price of Vastned Retail Belgium as at 31 December 2017 was €45.00, the company is offering a gross dividend yield of 5.8%.
9 Financial performance indicator calculated according to EPRA's Best Practices Recommendations (European Public Real Estate Association). These data are not required by regulation regarding regulated real estate companies and are not subject to a control by government authorities. See also www.epra.com.
Vastned Retail Belgium has a conservative financial structure as at 31 December 2017 allowing it to continue to carry out its activities in 2018 accordingly.
The most important characteristics of the financial structure as at 31 December 2017 are:
As at 31 December 2017, 92% of the available credit lines at financial institutions comprise long-term financing. 8% of the credit lines are short-term financing, of which 100% are credit facilities with an indefinite duration (€ 10 million). Vastned Retail Belgium does not need to carry out any more refinancing of its credit facilities in the coming financial year 2018.
Short-term credit facilities, of which 100% are credit facilities with an indefinite duration
To safeguard its operating results from future interest rate fluctuations, Vastned Retail Belgium is partially hedging these interest rate fluctuations with interest rate swaps.
As at 31 December 2017, Vastned Retail Belgium had a notional amount of €70 million in active interest rate swaps, with an average remaining term of 5.5 years.
The company has a limited debt ratio of 27%.
The Belgian economy is doing well and continues to expand, with growth of 1.7% expected in 2018. Real disposable income for private individuals rose by 0.9% in 2017, and a more pronounced increase of 2.2% is expected in 2018. Private consumption is expected to rise by 1.9% in 2018, thanks in part to a high level of consumer confidence. Employment growth is expected to be 1% in 2018.
The influence of the internet on consumers is exceeding all expectations, and customers have a completely different buying experience than they did before, with mobile technology becoming increasingly important. Physical shops still have added value, and they remain relevant when they connect consumers, products, brands and employees. Despite strong growth in online shopping, consumers still buy 80 to 85% of their non-food products in physical shops.
Vastned Retail Belgium intends to pursue its strategy further in 2018 by focusing more explicitly on premium quality retail locations and retail parks. The company will continue to work towards a clear predominance of core city assets, i.e. the very best retail property in the most popular shopping streets in the major cities. The primary focus is on the acquisition of retail property in the Antwerp city centre, and additionally in other major cities. By focusing on a limited number of city centres, the market knowledge of the asset team of the company grows, thereby allowing for a good assessment of opportunities. New investments will, to a considerable
extent depend on further developments on the retail property market. The long-term goal is to ensure that 75% of all investments are in this type of real estate. At the end of 2017 the company owned 59% of core city assets.
n past years, Vastned Retail Belgium has greatly increased the quality of its real estate portfolio by investing in high-quality core city assets and divesting from various non-strategic mixed retail locations. For this reason, the vacancy rate for the portfolio had dropped to less than 1% as at the end of the 2017 financial year.
As from the 2018 financial year Vastned Retail Belgium expects that EPRA earnings will continue to grow as a result of a high-quality real estate portfolio with limited vacancies on the one hand and the refinancing implemented in July 2017 on the other. The result of this refinancing is a further decrease of the average interest rate of the credit facilities, which will have a positive effect on EPRA earnings.
On 14 January 2018, Vastned Retail N.V., which directly and indirectly holds 65.49% of the shares in Vastned Retail Belgium NV, has announced its intention to make a voluntary and conditional takeover bid of €57.50 per share in cash for all the shares in Vastned Retail Belgium that it does not hold.
In the context of the intended takeover bid Vastned proposes to convert Vastned Retail Belgium from a public regulated real estate company into a specialised real estate investment fund. In this context, the stock listing of Vastned Retail Belgium will be cancelled.
The annual report concerning financial year 2017 will be published on the company's website (www.vastned.be) as from 23 March 2018.
About Vastned Retail Belgium. Vastned Retail Belgium is a public regulated real estate company (RREC), the shares of which are listed on Euronext Brussels (VASTB). Vastned Retail Belgium invests exclusively in Belgian commercial real estate, more specifically in core city assets (prime retail properties located on the best shopping streets in the major cities of Antwerp, Brussels, Ghent and Bruges), and mixed retail locations (inner-city shops outside of the premium cities, high-end retail parks and retail warehouses). The RREC intends to achieve a 75% investment ratio in core city assets in due course.
VASTNED RETAIL BELGIUM NV, a public regulated real estate company under Belgian law, Taco de Groot, Rudi Taelemans or Reinier Walta, tel. + 32 3 361 05 90, www.vastned.be
This press release contains prospective information, forecasts, convictions and estimates prepared by Vastned Retail Belgium on the expected future performance of Vastned Retail Belgium and the markets in which it operates. Readers are held to observe that such prospects are subject to risks and uncertainties which can cause the actual results to differ considerably from those expressed in such prospective statements. Prospective statements such as these can be impacted by significant factors such as changes in the economic situation, tax, competitive along with environmental factors. Vastned Retail Belgium cannot guarantee that the assumptions underlying the prospective information are free of misstatements.
| IN THOUSANDS € | 2017 | 2016 |
|---|---|---|
| Rental income | 19.018 | 18.475 |
| Rental-related expenses | -131 | -136 |
| NET RENTAL INCOME | 18.887 | 18.339 |
| Recovery of rental charges and taxes normally payable by tenants on let properties | 1.016 | 1.323 |
| Rental charges and taxes normally payable by tenants on let properties | -1.016 | -1.323 |
| Other rental-related income and expenses | 58 | 39 |
| PROPERTY RESULT | 18.945 | 18.378 |
| Technical costs | -397 | -455 |
| Commercial costs | -284 | -165 |
| Charges and taxes on unlet properties | -5 | -70 |
| Property management costs | -1.018 | -1.084 |
| Other property charges | -45 | -7 |
| Property charges | -1.749 | -1.781 |
| OPERATING PROPERTY RESULT | 17.196 | 16.597 |
| General costs | -1.005 | -1.113 |
| Other operating income and costs | 25 | 25 |
| OPERATING RESULT BEFORE RESULT ON PORTFOLIO | 16.216 | 15.509 |
| Result on disposals of investment properties | -21 | 17 |
| Changes in fair value of investment properties | 20.935 | 7.062 |
| Other result on portfolio | -501 | 56 |
| OPERATING RESULT | 36.629 | 22.644 |
| Financial income | 4 | 11 |
| Net interest charges | -2.594 | -2.954 |
| Other financial charges | -5 | -4 |
| Changes in fair value of financial assets and liabilities ineffective hedges - IAS 39) |
886 | 889 |
| Financial result | -1.709 | -2.058 |
| RESULT BEFORE TAXES | 34.920 | 20.586 |
| Corporate tax | -251 | -53 |
| Taxes | -251 | -53 |
| NET RESULT | 34.669 | 20.533 |
11 The statutory auditor has confirmed that his full audit, which has been substantially completed, has not revealed material adjustments which would have to be made to the accounting information disclosed in this press release and that an unqualified auditor's report will be issued.
| IN THOUSANDS € | 2017 | 2016 |
|---|---|---|
| NET RESULT | 34.669 | 20.533 |
| Note: | ||
| EPRA earnings | 13.306 | 12.463 |
| Result on portfolio | 20.413 | 7.135 |
| Changes in fair value of financial assets and liabilities (ineffective hedges - IAS 39) and other non-distributable elements |
950 | 935 |
| Attributable to: | ||
| Equity holders of the parent company | 34.669 | 20.533 |
| Non-controlling interest | 0 | 0 |
| RESULT PER SHARE (IN €) | 2017 | 2016 |
|---|---|---|
| Number of shares entitled to dividend | 5.078.525 | 5.078.525 |
| Weighted average number of shares | 5.078.525 | 5.078.525 |
| Net result (€) | 6,83 | 4,04 |
| Diluted net result (€) | 6,83 | 4,04 |
| EPRA earnings (€) | 2,62 | 2,45 |
| IN THOUSANDS € | 2017 | 2016 |
|---|---|---|
| NET RESULT | 34.669 | 20.533 |
| Other components of comprehensive income (recyclable in the income statement) |
0 | 0 |
| Changes in the effective part of fair value of allowed hedging instruments that are subject to hedge accounting |
0 | 0 |
| COMPREHENSIVE INCOME | 34.669 | 20.533 |
| Attributable to: | ||
| Equity holders of the parent company | 34.669 | 20.533 |
| Minority interests | 0 | 0 |
| ASSETS IN THOUSANDS € | 31.12.2017 | 31.12.2016 |
|---|---|---|
| Non-current assets | 378.759 | 351.329 |
| Intangible assets | 15 | 1 |
| Investment properties | 378.195 | 350.719 |
| Other tangible assets | 546 | 606 |
| Trade receivables and other non-current assets | 3 | 3 |
| Current assets | 1.907 | 1.583 |
| Trade receivables | 373 | 381 |
| Tax receivables and other current assets | 151 | 110 |
| Cash and cash equivalents | 367 | 320 |
| Deferred charges and accrued income | 1.016 | 772 |
| TOTAL ASSETS | 380.666 | 352.912 |
| SHAREHOLDERS' EQUITY AND LIABILITIES IN THOUSANDS € | 31.12.2017 | 31.12.2016 |
|---|---|---|
| Shareholders' equity | 274.508 | 252.281 |
| Shareholders' equity attributable to the shareholders of the parent company |
274.508 | 252.281 |
| Share capital | 97.213 | 97.213 |
| Share premium | 4.183 | 4.183 |
| Reserves | 138.443 | 130.352 |
| Net result of the financial year | 34.669 | 20.533 |
| Non-controlling interest | 0 | 0 |
| Liabilities | 106.158 | 100.631 |
| Non-current liabilities | 98.146 | 63.304 |
| Non-current financial debts | 95.625 | 60.000 |
| Credit institutions | 95.625 | 60.000 |
| Other non-current financial liabilities | 1.880 | 3.154 |
| Other non-current liabilities | 145 | 109 |
| Deferred taxes - liabilities | 496 | 41 |
| Current liabilities | 8.012 | 37.327 |
| Provisions | 269 | 269 |
| Current financial debts | 4.400 | 32.900 |
| Credit institutions | 4.400 | 32.900 |
| Other current financial liabilities | 0 | 106 |
| Trade debts and other current debts | 2.107 | 2.725 |
| Other current liabilities | 625 | 628 |
| Accrued charges and deferred income | 611 | 699 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 380.666 | 352.912 |
| IN THOUSANDS € | Share capital |
Share premium |
Reserves | Net result of financial year |
Non controlling interest |
Total shareholders' equity |
|---|---|---|---|---|---|---|
| Balance at 31 December 2015 | 97.213 | 4.183 | 127.797 | 15.302 | 0 | 244.495 |
| Comprehensive income of 2016 | 20.533 | 20.533 | ||||
| Transfer through result allocation 2015: | ||||||
| Transfer from result on portfolio to reserves |
2.308 | -2.308 | 0 | |||
| Transfer from changes in fair value of financial assets and liabilities |
197 | -197 | 0 | |||
| Other movements | 50 | -50 | 0 | |||
| Dividends financial year 2015 | -12.747 | -12.747 | ||||
| Balance at 31 December 2016 | 97.213 | 4.183 | 130.352 | 20.533 | 0 | 252.281 |
| Comprehensive income of 2017 | 34.669 | 34.669 | ||||
| Transfer through result allocation 2016 | ||||||
| Transfer from result on portfolio to reserves |
7.136 | -7.136 | 0 | |||
| Transfer from changes in fair value of financial assets and liabilities |
889 | -889 | 0 | |||
| Other movements | 66 | -66 | 0 | |||
| Dividends financial year 2016 | -12.442 | -12.442 | ||||
| Balance at 31 December 2017 | 97.213 | 4.183 | 138.443 | 34.669 | 0 | 274.508 |
VASTNED RETAIL BELGIUM Generaal Lemanstraat 74, 2600 Berchem - Antwerp T +32 3 361 05 90 [email protected] WWW.VASTNED.BE
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