Quarterly Report • Jul 28, 2022
Quarterly Report
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Vastned maintains strong operational and financial performance
Hoofddorp, 28 July 2022 – Vastned, the listed European retail property company, has maintained its strong operational and financial performance despite economic uncertainties due to persistently high energy prices, rising inflation and increased recession fears in Europe. Vastned is reporting positive earnings for H1 2022 of € 2.30 euro per share and a direct result for H1 2022 of € 0.98 euro per share, an increase of over 11% compared with the € 0.88 per share reported in H1 2021. The collection rate further increased to 97.6%, and the occupancy rate increased to 98.5%. The value of the property portfolio increased 1.0% during H1 2022, mainly reflecting lower yields in key markets combined with relative stability across most other valuation factors.
Reinier Walta, CEO of Vastned: 'Vastned delivered another strong quarter in terms of the company's operational performance and interim results. Retailers in both 'phygital' and physical brands are showing a healthy demand for retail property. Moreover, transaction values are stabilizing, resulting in a slightly higher valuation of our property portfolio. Our performance has again demonstrated that Vastned has a high-quality portfolio with attractive, distinctive properties in prime locations in "winning cities". We will approach the second half of the year cautiously as a result of the economic situation, which could potentially affect our tenants. Despite the economic uncertainties, we reiterate our expectations for the full year 2022 provided in our Q1 trading update.'
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
Vastned continues to concentrate its unique portfolio of high-street retail and inner-city mixed-use properties in winning cities. Our solid, growing occupancy and collection rates, as well as positive value development, reflect the quality of our portfolio. By adding tenants with strong digital brands and retailers that prioritise phygital (the combination of physical and digital), and by focusing on 'buy online, pick up in store' solutions, Vastned has created a more diverse mix of tenants. Furthermore, in H1 2022, Vastned decreased its exposure to fashion in its total portfolio by half a percentage point. By optimising its portfolio, Vastned expects to further unlock the intrinsic value of its real estate portfolio.
Sustainability is an important core value for Vastned in creating long-term value for its stakeholders.
Converting empty spaces above shops into residential units is making city centres livelier after closing time and increasing the housing stock. These investments also aim to improve the sustainability ratings of Vastned's properties. We carried out three apartment renovations in H1 2022. Five apartments will be delivered in Q3 of 2022.
During H1 2022, Vastned's portfolio in the Netherlands was impacted by a short period of lockdown, with restrictions on nonessential retail locations, restaurants and bars in January. Most of the restrictive measures were lifted on 15 January 2022. The rent concessions accounted for in H1 2022 as a result of waivers in the Netherlands amounted to € 0.4 million.
The direct result per share in H1 2022 was € 0.98 compared with € 0.88 in H1 2021. Compared with H1 2021, net rental income increased from € 26.9 million to € 28.8 million in H1 2022, due to almost no waivers granted in H1 2022.
The indirect result per share in H1 2022 was € 1.32 positive compared with € 1.38 negative in H1 2021. The positive indirect result in H1 2022 was mainly due to the increased value of the property portfolio (1%) and the increased value of the financial derivatives as a result of higher market interest rates.
The occupancy rate increased from 96.2% to 98.5%.
| Results | H1 2022 | H1 2021 |
|---|---|---|
| Occupancy rate as at 30 June (%) | 98.5 | 96.2 |
| Like-for-like gross rental growth (%) | 1.4 | (3.2) |
| Value movements 1 (%) | 1.0 | (1.9) |
| Total appraisal value of the portfolio 2 (€ million) | 1,452 | 1,440 |
| Direct result per share (€) | 0.98 | 0.88 |
| Indirect result per share (€) | 1.32 | (1.38) |
| Result per share (€) | 2.30 | (0.50) |
1) Excluding acquisitions and divestments
2) Including assets held for sale
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The occupancy rate of the full portfolio rose in Q2 2022 compared with Q1 2022 and the figures for 31 December 2021. The occupancy rate in the Netherlands increased mainly due to the new lettings. The occupancy rate in France also increased, due to the new lettings. In Belgium, the occupancy rate remained relatively stable. The portfolio in Spain remained fully let.
| Occupancy rate (%) | 30 June 2022 | 31 March 2022 | 31 December 2021 | 30 June 2021 |
|---|---|---|---|---|
| Netherlands | 98.3 | 97.7 | 97.2 | 96.1 |
| France | 98.1 | 97.5 | 97.2 | 94.1 |
| Belgium | 98.8 | 98.9 | 99.3 | 97.5 |
| Spain | 100.0 | 100.0 | 100.0 | 100.0 |
| Total | 98.5 | 98.1 | 97.9 | 96.2 |
In the first six months of 2022, Vastned concluded 19 leases for a total annual amount of € 2.1 million, or 2.9% of the total theoretical gross annual rental income. On the 19 leases, Vastned realized a € 0.3 million rent decrease, caused mainly by a new lease to G-Star on Voldersstraat 15 in Gent and the new letting of Etam on Meir 99 in Antwerp. Both rental units were previously over-rented and are now rented in line with the estimated rental value provided by external appraisers. On Zuidplein in Rotterdam, Vastned renewed its lease with Etos and signed a new lease with Snipes.
| Leasing activity | H1 2022 |
|---|---|
| Number of leases | 19 |
| Rental income (€ million) | 2.1 |
| % of total theoretical annual rent | 2.9 |
| Rental change (€ million) | (0.3) |
| % rental change | (13.1) |
The appraisal value of Vastned's total property portfolio was € 1.45 billion as at 30 June 2022. This is an increase of 1% compared with year-end 2021.
| Portfolio breakdown (€ million) | 30 June 2022 | % of total |
|---|---|---|
| Netherlands | 631.1 | 43 |
| France | 413.5 | 28 |
| Belgium | 323.3 | 22 |
| Spain | 83.8 | 6 |
| Total | 1,451.7 | 100 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
All properties in operation are appraised at least once a year by independent certified appraisers. As at 30 June 2022, 97.3% of the portfolio has been appraised. The like-for-like appraisal value of the property portfolio excluding acquisitions and divestments at the end of June 2022 increased by 1.0% compared with year-end 2021. The value increase of the portfolios in the Netherlands, France, Belgium and Spain were 1.5%, 0.8%, nihil and 2.1%, respectively.
| Appraisal value | |||||
|---|---|---|---|---|---|
| (€ million) | H1 2022 | vs FY 2021 | FY 2021 | vs FY 2020 | FY 2020 |
| Netherlands | 631.1 | 9.2 | 621.9 | (15.5) | 637.5 |
| France | 413.5 | 3.3 | 410.1 | 2.9 | 407.2 |
| Belgium | 323.3 | 0.1 | 323.2 | (9.8) | 333.0 |
| Spain | 83.8 | 1.7 | 82.1 | (1.5) | 83.6 |
| Total | 1,451.7 | 14.3 | 1,437.4 | (23.8) | 1,461.2 |
In Q1 2022, Vastned sold two non-strategic assets on Dorpstraat 21-23 in Renkum and Achter Clarenburg 19 in Utrecht with a total transaction value of € 0.8 million, which was 18.6% above book value. No divestments or acquisitions took place in Q2 2022. After balance sheet date, Vastned acquired Zuidplein Hoog 827 in Rotterdam, which is currently rented to ICI Paris XL.
| Financial results (€ million) | H1 2022 | H1 2021 |
|---|---|---|
| Direct result | 16.9 | 15.1 |
| Indirect result | 22.6 | (23.7) |
| Result attributable to Vastned Retail shareholders | 39.5 | (8.6) |
| Result attributable to non-controlling interests | 2.8 | (0.1) |
| Result after taxes | 42.3 | (8.7) |
The result attributable to Vastned's shareholders, which comprises the direct and indirect results, was € 39.5 million positive in H1 2022 (H1 2021: € 8.6 million negative). The main cause was the increase of the indirect result from € 23.7 million negative in H1 2021 to € 22.6 million positive in H1 2022. Within the indirect result, the value increase of the property portfolio in H1 2022 amounted to € 14.6 million (H1 2021: value decrease of € 28.7 million). As a result of higher market interest rates, the value movements of the financial derivatives were € 9.6 million positive in H1 2022 (H1 2021 € 1.6 million positive). The indirect result also included a positive result on the sale of property of € 0.2 million, deferred taxes of € 0.6 million and abortive purchase costs of € 0.7 million.
The direct result increased from € 15.1 million in H1 2021 to € 16.9 million in H1 2022. Net rental income was higher (€ 28.8 million in H1 2022 compared with € 26.9 million in H1 2021); however, this effect was partly compensated by higher income taxes.
The result per share attributable to Vastned shareholders was € 2.30 positive in H1 2022 (H1 2021: € 0.50 negative). The result comprises the direct result per share of € 0.98 (H1 2021: € 0.88) and the indirect result per share of € 1.32 positive (H1 2021: € 1.38 negative).
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The gross rental income was € 32.8 million in H1 2022 compared with € 31.0 million in H1 2021. A breakdown of the movements per country is provided in the table below.
| Total (€ thousand) | Netherlands | France | Belgium | Spain | Total |
|---|---|---|---|---|---|
| Gross rental income H1 2021 | 14,333 | 6,723 | 8,680 | 1,290 | 31,026 |
| Acquisitions | - | - | - | - | - |
| Divestments | (175) | - | (212) | (12) | (399) |
| Waivers of rent arrears (LfL) | 614 | 522 | 588 | - | 1,724 |
| Like-for-like rental growth | 242 | 162 | (227) | 242 | 419 |
| Gross rental income H1 2022 | 15,014 | 7,407 | 8,829 | 1,520 | 32,770 |
| Other income | - | 158 | 45 | - | 203 |
| Addition to provision for expected credit losses | 104 | (266) | 25 | - | (137) |
| Operating expenses | (2,589) | (612) | (736) | (94) | (4,031) |
| Net rental income H1 2022 | 12,529 | 6,687 | 8,163 | 1,426 | 28,805 |
| Net rental income H1 2021 | 11,183 | 6,211 | 8,236 | 1,265 | 26,895 |
| Operating expenses as % of gross rental income 2022 | 16.6 | 11.9 | 8.1 | 6.2 | 12.7 |
| Operating expenses as % of gross rental income 2021 | 22.0 | 7.6 | 5.1 | 1.9 | 13.3 |
In H1 2022, Vastned made € 0.8 million worth of divestments. In 2021, Vastned sold properties totalling € 17.7 million, which caused the gross rental income to fall by € 0.4 million compared with H1 2021. These divestments were made in the Dutch, Belgian and Spanish property portfolios.
As a result of COVID-19, an amount of € 0.4 million in rent arrears was waived in H1 2022 (H1 2021: € 2.1 million). The waivers of rent arrears in H1 2022 were granted in the Netherlands.
The like-for-like rental growth of the gross rental income was € 0.4 million positive. The like-for-like rental growth in the Netherlands, France and Spain was respectively € 0.2 million positive, € 0.2 million positive and € 0.2 million positive. In Belgium, the like-for-like rental growth was € 0.2 million negative, as a result of lease renewals with a rent decrease. The like-for-like growth of the gross rental income was 1.4% positive for the total property portfolio.
Total operating expenses, excluding the allocation to the provision for expected credit losses, increased from € 3.8 million in H1 2021 to € 4.0 million in H1 2022, mainly as a result of increased letting costs.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The allocation to the provision for expected credit losses decreased from € 0.6 million in H1 2021 to € 0.1 million in H1 2022. Expressed as a percentage of the gross rental income (including credit losses), operating expenses were 12.7% in H1 2022 (H1 2021: 13.3%).
The value movements in property in H1 2022 totalled € 14.6 million (H1 2021: € 28.7 million negative). The value increases of the Dutch, French, Spanish and Belgian property portfolios were € 9.5 million, € 3.3 million, € 1.7 million and € 0.1 million, respectively.
In H1 2022, Vastned sold properties totalling € 0.8 million (H1 2021: € 11.7 million). The net result on the divestments of property, after deduction of sales costs, was € 0.2 million positive.
The net financing costs, including value movements of financial derivatives, changed from € 4.3 million negative in H1 2021 to € 3.7 million positive in H1 2022. Developments regarding the net financing costs are detailed in the table below.
| Net financing costs H1 2021 | 4.3 |
|---|---|
| Decrease due to lower average interest-bearing debt | (0.1) |
| Net increase due to higher average interest rate and changes in fixed/ floating interest rates and working capital |
0.1 |
| Increase of value movements in financial derivatives | (8.0) |
| Net financing costs H1 2022 | (3.7) |
Net financing costs decreased by € 0.1 million in H1 2022 due to lower average interest-bearing debts resulting from divestments. Due to changes in the composition of the loan portfolio (in particular, changes in debt of the ratio fixed/floating interest), the average interest rate increased by 2 basis points from 1.87% in H1 2021 to 1.89% in H1 2022, pushing interest expenses up by € 0.1 million. As a result of the higher market interest rate, the value movements of the interest rate derivatives were € 9.6 million positive in H1 2022 compared with € 1.6 million positive in H1 2021.
General expenses slightly decreased from € 3.5 million in H1 2021 to € 3.4 million in H1 2022.
The abortive purchase costs of € 0.7 million are extraordinary costs related to an intended transaction, which would have resulted in a delisting of Vastned Belgium N.V. The discussions were ended due to rapidly changed market conditions.
Income tax payable for the regularly taxed entities in the Netherlands, Belgium and Spain was € 0.4 million in H1 2022 (H1 2021: € 0.3 million).
The movement in deferred tax assets and liabilities was € 0.5 million negative in H1 2022 (H1 2021: € 1.1 million positive). The increase in the provision for deferred tax liabilities in H1 2022 was mainly due to the value increase of assets in the Netherlands and Spain that are held by regularly taxed entities.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
As at 30 June 2022, Vastned had a total accounts receivable position of € 10.6 million (30 June 2021: € 12.2 million), of which € 1.9 million was provided for (30 June 2021: € 3.1 million). The total value of the accounts receivable, after deduction of the provision for expected credit losses, can be broken down according to the nature of the receivable as follows:
| Accounts receivable and other receivables (€ million, rounded) |
Outstanding | Provision for expected credit losses |
Total |
|---|---|---|---|
| Accounts receivable unrelated to COVID-19 1 | 1.9 | 1.3 | 0.6 |
| Accounts receivable related to COVID-19 1 | 0.9 | 0.6 | 0.3 |
| Accounts receivable for which a deferment has been granted in the context of COVID-19 |
0.2 | - | 0.2 |
| Pre-invoiced rent | 7.5 | - | 7.5 |
| Other receivables | 0.1 | - | 0.1 |
| Total | 10.6 | 1.9 | 8.7 |
1) A receivable is considered COVID-19 related in case amounts outstanding are (amongst other factors) subject to pending COVID-19 related discussions.
Part of the total accounts receivable position are receivables overdue by more than one year that are fully provided for but cannot yet be written off in connection with bankruptcies that have not yet been fully settled. These are mostly accounts receivable that are unrelated to COVID-19.
Vastned strives to maintain a conservative financing structure, with a loan-to-value ratio of between 30% and 40% (in the longterm) and a good diversification of financing sources; e.g. by placing long-term bond loans with institutional investors (including through private placements).
| Financing structure | 30 June 2022 | 30 June 2021 |
|---|---|---|
| Loan-to-value (%) | 43.0 | 44.2 |
| Solvency ratio 2 (%) | 55.6 | 53.9 |
| Interest coverage ratio | 4.9 | 4.6 |
2) Group equity plus deferred tax liabilities divided by the balance sheet total
As at 30 June 2022, Vastned's Loan-to-value being 43.0%, remains at the same level as at year-end 2021 despite the payment of the final dividend 2021 in May 2022. The solvency ratio, being group equity plus deferred tax liabilities divided by the balance sheet total, as at 30 June 2022 was 55.6% (year-end 2021: 55.1%). The interest coverage ratio for the past 12 months was 4.9 (prior year: 4.6).
With a solvency ratio of 55.6% and an interest coverage ratio of 4.9, Vastned complies with its loan covenants. All financing agreements stipulate a 45.0% minimum solvency ratio and usually require a minimum 2.0 interest coverage ratio. Most financing agreements include a negative pledge clause, with a limited threshold for putting up security.
| (€ million) | Fixed interest 3 | Floating interest | Total | % of total |
|---|---|---|---|---|
| Long-term debt | 444.9 | 172.8 | 617.7 | 99.3% |
| Short-term debt | - | 4.5 | 4.5 | 0.7% |
| Total | 444.9 | 177.3 | 622.2 | 100.0% |
| % of total | 71.5% | 28.5% | 100.0% |
3) Taking into account interest rate derivatives.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
At the end of June 2022, 71.5% of the loan portfolio comprised fixed-interest loans as a result of the use of interest rate derivatives and fixed coupon private placements.
The share of non-bank loans was 34.5%, significantly above the internal target of 25%.
Taking the unused credit facilities of € 116.4 million as at 30 June 2022 into account, there is ample liquidity to fulfil short-term payment obligations.
As a result of the combined direct and indirect result per share of € 2.30 positive, the other movements of € 0.14 positive and the 2021 final dividend distribution of € 1.20 per share, the net asset value per share increased from € 41.57 at year-end 2021 to € 42.81 as at 30 June 2022.
The EPRA NRV per share as at 30 June 2022 was € 48.52 compared with € 47.73 at year-end 2021.
In line with the dividend policy, the interim dividend will be 60% of the direct result for the first half of the year. The direct result for H1 2022 is € 0.98 per share, as a result of which the interim dividend is set at € 0.59 per share. On 2 August 2022, the Vastned share will go ex-dividend, and the interim dividend will be made payable on 17 August 2022.
In H1 2022, Vastned entered into an agreement to purchase a property on Zuidplein Hoog 827, Rotterdam. This purchase amounts to € 1.8 million excluding costs, and the transfer is scheduled for August 2022.
Management will approach the second half of the year cautiously due to the present economic situation. Barring unforeseen circumstances, Vastned reiterates its expected direct full-year 2022 result of between € 1.95 to € 2.05 per share. Vastned's focus remains firmly on maintaining excellent operational performance and executing its strategy.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
In accordance with Article 5.25d of the Financial Supervision Act, the Executive Board states that, to the best of its knowledge:
The main risks and uncertainties for the remaining six months of this financial year have not been defined in this report, though they are identical to those in the 2021 annual report. These risks and uncertainties have been adequately described by the Executive Board to the best of its knowledge and to the extent known in the half-year report of the Executive Board and the condensed interim consolidated financial statements.
Hoofddorp, 28 July 2022
Executive Board: Reinier Walta, CEO
On 28 July 2022 at 10 am (CET), Vastned will host a presentation analysing the half-year 2022 results, which will be brought to you as a webcast. This webcast can be followed live via https://vastned.com/en/investor-relations/investor_relations.
On 26 October, Vastned will provide its 9M 2022 trading update (after the close of trading in Amsterdam).
Vastned is a European publicly listed property company (Euronext Amsterdam: VASTN) that focuses on prime properties in popular shopping areas of selected European cities with a historic city centre where shopping, living, working and leisure meet. The tenants in Vastned's property portfolio are a strong mix of international and national retailers, food & beverage entrepreneurs, residential tenants and office tenants. The size of the property portfolio on 30 June 2022 was approximately € 1.5 billion.
Simon Theeuwes Investor Relations Manager ad interim Tel: +31 20 2424 300
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| Results (€ thousand) | 30 June 2022 | 31 December 2021 | 30 June 2021 |
|---|---|---|---|
| Gross rental income | 32,770 | 62,216 | 31,026 |
| Direct result | 16,860 | 33,058 | 15,097 |
| Indirect result | 22,599 | (18,653) | (23,730) |
| Result | 39,459 | 14,405 | (8,633) |
| Balance sheet (€ thousand) | |||
| Property (appraisal value) | 1,451,675 | 1,438,000 | 1,440,380 1 |
| Equity | 812,299 | 791,999 | 777,090 |
| Equity Vastned Retail shareholders | 734,387 | 713,072 | 699,701 |
| Long-term liabilities | 638,291 | 636,595 | 653,748 |
| Solvency definition lenders (%) | 55.6 | 55.1 | 53.9 |
| Loan-to-value (%) | 43.0 | 43.0 | 44.2 |
| Interest coverage ratio | 4.9 | 4.8 | 4.6 |
| Financial occupancy rate property portfolio (%) | 97.4 | 95.7 | 95.2 |
| Average number of shares in issue | 17,151,976 | 17,151,976 | 17,151,976 |
| Number of shares in issue (end of period) | 17,151,976 | 17,151,976 | 17,151,976 |
| Per share (€) | |||
| Equity Vastned Retail shareholders at beginning of period (including final dividend) |
41.57 | 42.98 | 42.98 |
| Final dividend previous financial year | (1.20) | (1.73) | (1.73) |
| Equity Vastned Retail shareholders at beginning of period (excluding final dividend) |
40.37 | 41.25 | 41.25 |
| Direct result | 0.98 | 1.93 | 0.88 |
| Indirect result | 1.32 | (1.09) | (1.38) |
| Result | 2.30 | 0.84 | (0.50) |
| Remeasurement of defined benefit obligation | 0.14 | 0.01 | 0.05 |
| Interim dividend | - | (0.53) | - |
| Equity Vastned Retail shareholders at end of period (including final dividend) |
42.81 | 41.57 | 40.80 |
| Share price (end of period) (€) | 21.30 | 24.00 | 24.70 |
| Premium/(Discount) (%) | (50.3) | (42.3) | (39.5) |
1) Including Assets held for sale of € 2,150
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| (€ thousand) |
|---|
| -------------- |
| Direct result | H1 2022 | H1 2021 |
|---|---|---|
| Gross rental income | 32,770 | 31,026 |
| Other income | 203 | 288 |
| Net service charge expenses | (39) | (50) |
| Operating expenses | (4,129) | (4,369) |
| Net rental income | 28,805 | 26,895 |
| Financial income | 7 | 8 |
| Financial expenses | (5,882) | (5,903) |
| Net financing costs | (5,875) | (5,895) |
| General expenses | (3,427) | (3,451) |
| Direct result before taxes | 19,503 | 17,549 |
| Current income tax expense | (404) | (261) |
| Movement in deferred tax assets and liabilities | 38 | 107 |
| Direct result after taxes | 19,137 | 17,395 |
| Direct result attributable to non-controlling interests | (2,277) | (2,298) |
| Direct result attributable to Vastned Retail shareholders | 16,860 | 15,097 |
| Indirect result | ||
| Value movements in property in operation | 14,616 | (28,694) |
| Total value movements in property | 14,616 | (28,694) |
| Net result on divestments of property | 184 | (42) |
| Value movements in financial derivatives | 9,582 | 1,550 |
| Abortive purchase costs | (670) | - |
| Indirect result before taxes | 23,712 | (27,186) |
| Movement deferred tax assets and liabilities | (549) | 1,042 |
| Indirect result after taxes | 23,163 | (26,144) |
| Indirect result attributable to non-controlling interests | (564) | 2,414 |
| Indirect result attributable to Vastned Retail shareholders | 22,599 | (23,730) |
| Result attributable to Vastned Retail shareholders | 39,459 | (8,633) |
| Per share (€) | ||
| Direct result attributable to Vastned Retail shareholders | 0.98 | 0.88 |
| Indirect result attributable to Vastned Retail shareholders | 1.32 | (1.38) |
| 2.30 | (0.50) |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| (€ thousand) | per share (€) | ||||
|---|---|---|---|---|---|
| EPRA performance-indicator | Table | H1 2022 | H1 2021 | H1 2022 | H1 2021 |
| EPRA Earnings | 1 | 16,860 | 15,097 | 0.98 | 0.88 |
| EPRA NRV | 2 | 832,265 | 805,797 | 48.52 | 46.98 |
| EPRA NTA | 2 | 735,613 | 711,687 | 42.89 | 41.49 |
| EPRA NDV | 2 | 730,750 | 688,611 | 42.60 | 40.15 |
| EPRA Net Initial Yield (NIY) | 3 (i) | 4.0% | 3.9% 1 | ||
| EPRA 'topped-up' NIY | 3 (ii) | 4.1% | 4.1% 1 | ||
| EPRA Vacancy Rate | 4 | 1.6% | 2.2% 1 | ||
| EPRA Cost Ratio (including direct vacancy costs) | 5 (i) | 23.0% | 25.1% | ||
| EPRA Cost Ratio (excluding direct vacancy costs) | 5 (ii) | 22.7% | 24.1% | ||
| Capital expenditure | 6 | 373 | 1,366 | ||
| EPRA LTV | 7 | 45.0% | n/a | ||
| 1) 31 December 2021. |
| 1. EPRA EARNINGS | |||
|---|---|---|---|
| H1 2022 | H1 2021 | |
|---|---|---|
| Result in accordance with consolidated IFRS profit and loss account | 39,459 | (8,634) |
| Value movements in property | (14,616) | 40,831 |
| Net result on divestments of property | (184) | (50) |
| Financial expenses | - | - |
| Value movements in financial derivatives | (9,582) | 2,061 |
| Movement in deferred tax assets and liabilities | 549 | (2,092) |
| Attributable to non-controlling interests | 564 | (4,975) |
| EPRA Earnings | 16,190 | 27,141 |
| Company specific adjustments | ||
| Abortive purchase costs | 670 | - |
| Company specific adjusted earnings | 16,860 | 15,097 |
| EPRA Earnings per share (EPS) | 0.94 | 0.88 |
| Company specific adjustments | ||
| Abortive purchase costs | 0.04 | - |
| Company specific adjusted earnings per share | 0.98 | 0.88 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| 30 June 2022 | 30 June 2021 | |||||
|---|---|---|---|---|---|---|
| EPRA NRV | EPRA NTA | EPRA NDV | EPRA NRV | EPRA NTA | EPRA NDV | |
| Equity Vastned Retail shareholders | 734,387 | 734,387 | 734,387 | 699,701 | 699,701 | 699,701 |
| Hybrid instruments | - | - | - | - | - | - |
| Diluted NAV | 734,387 | 734,387 | 734,387 | 699,701 | 699,701 | 699,701 |
| Diluted NAV at fair value | 734,387 | 734,387 | 734,387 | 699,701 | 699,701 | 699,701 |
| Deferred taxes related to fair value gains of property | 9,706 | 9,706 | - | 8,970 | 8,970 | - |
| Fair value of financial derivatives | (8,187) | (8,187) | - | 2,634 | 2,634 | - |
| Intangible fixed assets | - | (293) | - | - | (382) | - |
| Fair value of fixed-rate interest-bearing debts | - | - | (3,637) | - | - | (11,090) |
| Real Estate Transfer Tax | 96,359 | - | - | 94,492 | - | - |
| NAV | 832,265 | 735,613 | 730,750 | 805,797 | 710,923 | 688,611 |
| Fully diluted number of shares | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 | 17,151,976 |
| NAV per share | 48.52 | 42.89 | 42.60 | 46.98 | 41.45 | 40.15 |
| 30 June 2022 | 30 June 2021 | ||||||
|---|---|---|---|---|---|---|---|
| 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 |
||
| Portfolio that is subject to deferred tax and intention is to hold and not to sell in the long run |
199,454 | 14 | 100 | 196,326 | 14 | 100 |
Vastned Retail N.V. Mercuriusplein 11 2132 HA Hoofddorp PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| Netherlands | France | Belgium Spain |
Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 30 June 2022 |
31 December 2021 |
30 June 2022 |
31 December 2021 |
30 June 2022 |
31 December 2021 |
30 June 2022 |
31 December 2021 |
30 June 2022 |
31 December 2021 |
|
| Property | 631,135 | 622,575 | 413,465 | 410,115 | 323,275 | 323,194 | 83,800 | 82,115 | 1,451,675 | 1,438,000 |
| addition: | ||||||||||
| Estimated transaction fees | 58,391 | 58,554 | 29,964 | 29,183 | 8,586 | 8,268 | 2,381 | 2,561 | 99,322 | 98,566 |
| Investment value of property (B) |
689,526 | 681,129 | 443,429 | 439,298 | 331,861 | 331,462 | 86,181 | 84,676 | 1,550,997 | 1,536,566 |
| Annualised gross rental income | 32,288 | 31,032 | 15,509 | 14,480 | 18,005 | 17,200 | 2,978 | 2,945 | 68,780 | 65,658 |
| Non-recoverable operating expenses |
(5,123) | (4,260) | (588) | (539) | (1,401) | (1,320) | (186) | (199) | (7,298) | (6,318) |
| Annualised net rental income (A) |
27,165 | 26,772 | 14,921 | 13,941 | 16,604 | 15,880 | 2,792 | 2,746 | 61,482 | 59,340 |
| Effect of rent-free periods and other lease incentives |
772 | 947 | 544 | 972 | 502 | 1,361 | 36 | 264 | 1,854 | 3,544 |
| Topped-up annualised net rental income (C) |
27,937 | 27,719 | 15,465 | 14,913 | 17,105 | 17,241 | 2,828 | 3,010 | 63,336 | 62,884 |
| (i) EPRA Net Initial Yield (A/B) | 3.9% | 3.9% | 3.4% | 3.2% | 5.0% | 4.8% | 3.2% | 3.2% | 4.0% | 3.9% |
| (ii) EPRA Topped-up Net Initial Yield (C/B) |
4.1% | 4.1% | 3.5% | 3.4% | 5.2% | 5.2% | 3.3% | 3.6% | 4.1% | 4.1% |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| 30 June 2022 | |||||||
|---|---|---|---|---|---|---|---|
| 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 | 15,014 | 12,530 | 103,028 | 32,288 | 594 | 31,934 | 1.9% |
| France | 7,407 | 6,686 | 21,340 | 15,509 | 303 | 17,383 | 1.7% |
| Belgium | 8,829 | 8,163 | 76,823 | 18,005 | 221 | 17,321 | 1.3% |
| Spain | 1,520 | 1,426 | 2,990 | 2,978 | - | 3,145 | - |
| Total property | 32,770 | 28,805 | 204,181 | 68,780 | 1,118 | 69,784 | 1.6% |
| 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 | 14,333 | 11,182 | 105,250 | 30,462 | 1,309 | 32,649 | 4.0% |
| France | 6,723 | 6,211 | 21,340 | 14,154 | 972 | 17,416 | 5.6% |
| Belgium | 8,680 | 8,237 | 78,673 | 17,390 | 471 | 17,304 | 2.7% |
| Spain | 1,290 | 1,265 | 2,990 | 3,034 | - | 3,115 | - |
| Total property | 31,026 | 26,895 | 208,253 | 65,040 | 2,752 | 70,484 | 3.9% |
| H1 2022 | H1 2021 | |
|---|---|---|
| General expenses | 3,427 | 3,451 |
| Operating expenses | 4,129 | 4,369 |
| Net service charge expenses | 39 | 50 |
| EPRA costs (including vacancy costs) (A) | 7,595 | 7,870 |
| Vacancy costs | (126) | (325) |
| EPRA costs (excluding vacancy costs) (B) | 7,469 | 7,545 |
| Gross rental income (C) 1 | 32,973 | 31,314 |
| (i) EPRA Cost Ratio (including vacancy costs) (A/C) | 23.0% | 25.1% |
| (ii) EPRA Cost Ratio (excluding vacancy costs) (B/C) | 22.7% | 24.1% |
1) Including other income € 203 (H1 2021 € 288)
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| H1 2022 | H1 2021 | |
|---|---|---|
| Acquisitions | - | - |
| Development | - | - |
| Like-for-like-portfolio 1 | 373 | 1,366 |
| Other | - | - |
| 373 | 1,366 |
1) Concerns improvements to several assets already held in various countries
Vastned has no interests in joint ventures.
| 7. EPRA LOAN TO VALUE | 30 June 2022 | ||
|---|---|---|---|
| Group EPRA LTV as reported before share of JV's, material associates and NCI adjustment |
Non-Controlling Interests (NCI) |
Combined and adjusted |
|
| Equity | 812,299 | 77,912 | 734,387 |
| Net debt | |||
| Include: | |||
| Borrowings from Financial Institutions | 622,140 | 30,240 | 591,900 |
| Commercial paper | - | - | - |
| Hybrids | - | - | - |
| Bond Loans | - | - | - |
| Foreign currency derivatives | - | - | - |
| Net payables | 15,015 | 926 | 14,089 |
| Owner-occupied property (debt) | 572 | 57 | 515 |
| Other lease liabilities 2 | - | - | - |
| Current accounts with (no) equity characteristics | - | - | - |
| Exclude: | |||
| Cash and cash equivalents | 1,491 | 410 | 1,081 |
| Net debt (a) | 636,236 | 30,813 | 605,423 |
| Investment property portfolio and other eligible assets | |||
| Owner-occupied property | 593 | 76 | 517 |
| Investment properties at fair value | 1,451,675 | 108,503 | 1,343,172 |
| Lease liabilities 2 | - | - | - |
| Intangibles | 333 | 40 | 293 |
| Net receivables | - | - | - |
| Total property portfolio and other eligible assets (b) | 1,452,601 | 108,619 | 1,343,982 |
| Group LTV (a/b) | 43.8% | 45.0% |
2) Line added to EPRA template table in order to present Vastned's LTV under IFRS calculation (factually the calculation as agreed with the lenders)
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| Note | H1 2022 | H1 2021 | |
|---|---|---|---|
| Net income from property | |||
| Gross rental income | 4, 5 | 32,770 | 31,026 |
| Other income | 4 | 203 | 288 |
| Net service charge expenses | 4 | (39) | (50) |
| Operating expenses | 4 | (4,129) | (4,369) |
| Net rental income | 28,805 | 26,895 | |
| Value movements in property in operation | 4 | 14,616 | (28,694) |
| Total value movements in property | 14,616 | (28,694) | |
| Net result on divestments of property | 4 | 184 | (42) |
| Total net income from property | 43,605 | (1,841) | |
| Expenditure | |||
| Financial income | 7 | 8 | |
| Financial expenses | (5,882) | (5,903) | |
| Value movements financial derivatives | 12 | 9,582 | 1,550 |
| Net financing costs | 3,707 | (4,345) | |
| General expenses | (3,427) | (3,451) | |
| Abortive purchase costs | 13 | (670) | - |
| Total expenditure | (390) | (7,796) | |
| Result before taxes | 43,215 | (9,637) | |
| Current income tax expense | (404) | (261) | |
| Movement in deferred tax assets and liabilities | (511) | 1,148 | |
| Total income tax | (915) | 887 | |
| Result after taxes | 42,300 | (8,750) | |
| Result attributable to Vastned Retail shareholders | 39,459 | (8,634) | |
| Result attributable to non-controlling interests | 2,841 | (116) | |
| 42,300 | (8,750) | ||
| Per share (€) | |||
| Result | 2.30 | (0.50) | |
| Diluted result | 2.30 | (0.50) |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| (€ thousand) | ||
|---|---|---|
| H1 2022 | H1 2021 | |
| Result after taxes | 42,300 | (8,750) |
| Items not reclassified to the profit and loss account | ||
| Remeasurement of defined benefit pension obligations | 2,438 | 814 |
| Other comprehensive income after tax | 2,438 | 814 |
| Comprehensive income | 44,738 | (7,936) |
| Attributable to: | ||
| Vastned Retail shareholders | 41,897 | (7,820) |
| Non-controlling interests | 2,841 | (116) |
| 44,738 | (7,936) |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
(€ thousand)
| Note | 30 June 2022 | 31 December 2021 | 30 June 2021 |
|---|---|---|---|
| 4, 8 | 1,450,127 | 1,435,783 | 1,435,761 |
| 4 | 4,181 | 4,857 | 5,248 |
| 1,454,308 | 1,440,640 | 1,441,009 | |
| 333 | 374 | 439 | |
| 796 | 867 | 983 | |
| 593 | 675 | 271 | |
| 12 | 8,406 | 27 | - |
| 1,464,436 | 1,442,583 | 1,442,702 | |
| - | - | 2,150 | |
| 9 | 12,797 | 11,087 | 13,009 |
| 1,491 | 772 | 1,223 | |
| 14,288 | 11,859 | 16,382 | |
| 1,478,724 | 1,454,442 | 1,459,084 | |
| 95,183 | 95,183 | 95,183 | |
| 468,555 | 468,555 | 468,555 | |
| 131,190 | 134,929 | 144,597 | |
| 39,459 | 14,405 | (8,634) | |
| 734,387 | 713,072 | 699,701 | |
| 3 | 77,912 | 78,927 | 77,389 |
| 812,299 | 791,999 | 777,090 | |
| 9,585 | 9,074 | 9,054 | |
| 10 | 3,310 | 6,052 | 5,428 |
| 11 | 617,669 | 612,952 | 628,768 |
| 11 | 3,333 | 3,393 | 3,315 |
| 12 | 8 | 1,212 | 3,219 |
| 4,386 | 3,912 | 3,964 | |
| 638,291 | 636,595 | 653,748 | |
| 11 | 4,471 | 3,320 | 5,970 |
| 11 | - | - | - |
| 11 | 263 | 263 | 158 |
| 599 | 834 | 450 | |
| 22,801 | 21,431 | 21,668 | |
| 28,134 | 25,848 | 28,246 | |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
(€ thousand)
| Paid-up and called up capital |
Share premium reserve |
Other reserves |
Result attributable to Vasted Retail shareholders |
Equity Vastned Retail shareholders |
Equity non controlling interests |
Total equity | |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2021 | 95,183 | 468,555 | 214,797 | (41,340) | 737,195 | 81,098 | 818,293 |
| Result | - | - | - | (8,634) | (8,634) | (116) | (8,750) |
| Other comprehensive income | - | - | 814 | - | 814 | - | 814 |
| Comprehensive income | - | - | 814 | (8,634) | (7,820) | (116) | (7,936) |
| Final dividend for previous financial year in cash | - | - | - | (29,674) | (29,674) | (3,593) | (33,267) |
| Contribution from profit appropriation | - | - | (71,014) | 71,014 | - | - | - |
| Balance as at 30 June 2021 | 95,183 | 468,555 | 144,597 | (8,634) | 699,701 | 77,389 | 777,090 |
| Balance as at 1 January 2022 | 95,183 | 468,555 | 134,929 | 14,405 | 713,072 | 78,927 | 791,999 |
| Result | - | - | - | 39,459 | 39,459 | 2,841 | 42,300 |
| Other comprehensive income | - | - | 2,438 | - | 2,438 | - | 2,438 |
| Comprehensive income | - | - | 2,438 | 39,459 | 41,897 | 2,841 | 44,738 |
| Final dividend for previous financial year in cash | - | - | - | (20,582) | (20,582) | (3,856) | (24,438) |
| Contribution from profit appropriation | - | - | (6,177) | 6,177 | - | - | - |
| Balance as at 30 June 2022 | 95,183 | 468,555 | 131,190 | 39,459 | 734,387 | 77,912 | 812,299 |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| Note | H1 2022 | H1 2021 | |
|---|---|---|---|
| Cash flow from operating activities | |||
| Result after taxes | 42,300 | (8,750) | |
| Adjustments for: | |||
| Value movements in property | 4 | (14,616) | 28,694 |
| Net result on divestments of property | 4 | (184) | 42 |
| Net financing costs | (3,707) | 4,345 | |
| Income tax | 915 | (887) | |
| Cash flow from operating activities before changes in working capital | 24,708 | 23,444 | |
| and provisions | |||
| Movement in current assets | (135) | 4,847 | |
| Movement in short-term liabilities | 2,099 | 594 | |
| Movement in provisions | (345) | (201) | |
| 26,327 | 28,684 | ||
| Interest received | 7 | 8 | |
| Interest paid | (6,309) | (5,547) | |
| Income tax paid | (639) | (695) | |
| Cash flow from operating activities | 19,386 | 22,450 | |
| Cash flow from investing activities | |||
| Capital expenditure on property | (1,198) | (1,447) | |
| Divestments of property | 829 | 11,677 | |
| Cash flow from property | (369) | 10,230 | |
| Movement in other fixed assets | 112 | (45) | |
| Cash flow from investing activities | (257) | 10,185 | |
| Cash flow from financing activities | |||
| Dividend paid | 6 | (20,582) | (29,674) |
| Dividend paid to non-controlling interests | (3,856) | (3,593) | |
| Interest-bearing loans draw down | 66,656 | 3,733 | |
| Redemption interest-bearing debt and lease liabilities | (61,102) | (2,775) | |
| Movement in guarantee deposits and other long-term liabilities | 474 | 21 | |
| Cash flow from financing activities | (18,410) | (32,288) | |
| Net increase/(decrease) in cash and cash equivalents | 719 | 347 | |
| Cash and cash equivalents as at 1 January | 772 | 876 | |
| Cash and cash equivalents as at end of period | 1,491 | 1,223 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
Vastned Retail N.V. (hereinafter also referred to as 'the company' or 'Vastned'), with its registered office in Amsterdam, the Netherlands, is a European listed property company (Euronext Amsterdam: VASTN) focusing on the best property on the popular high streets of selected European cities with a historic city centre, where shopping, living, working and leisure converge. Vastned's property clusters have a strong tenant mix of international and national retailers, hospitality businesses, residential tenants and office tenants. The property is located in the Netherlands, France, Belgium and Spain.
Vastned is registered in the trade register of the Chamber of Commerce under number 24262564. Vastned is listed on the Euronext stock exchange in Amsterdam. The condensed interim consolidated financial statements of Vastned comprise the Company and its subsidiaries (jointly referred to as 'the Group').
The condensed interim consolidated financial statements were drawn up by the Executive Board and authorised for publication by the Supervisory Board on 27 July 2022.
The condensed interim consolidated financial statements are presented in euros; amounts are rounded off to thousands of euros, unless stated differently. These condensed interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as endorsed by the European Union. The condensed interim financial statements do not contain all the information required for full financial statements, and therefore should be read in conjunction with the 2021 consolidated financial statements. The principles applied in the preparation of the condensed interim consolidated financial statements are consistent with the principles set out in the annual report for the 2021 financial year, with the exception of the application of new standards and interpretations described below. The most relevant principles applied in these statements are also included below.
All the property in operation is appraised at least once per year by independently certified appraisers. These appraisals are based on assumptions including the estimated rental value of the property in operation, net rental income, future capital expenditure and the net market yield of the property. As a result, the value of the property in operation is subject to a degree of uncertainty. The actual outcomes may therefore differ from the assumptions, and this may have a positive or negative effect on the value of the property in operation and, as a consequence, on the result.
Debtors and other receivables are initially recognised at fair value and subsequently measured at amortised cost, less expected credit losses. The Group employs a provisions matrix for the calculation of expected credit losses on receivables. The provision rates are based on the historical credit loss experience of the Group, corrected for forward-looking factors that are specific to the debtors and the economic environment. Due to the impact of the COVID-19 crisis the provision has been increased based on the status of the negotiations regarding past-due rent payments and the sector in which the tenants operate.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
In the accounting of the lease income in the case of an operating lease, the Group considers what can reasonably be expected concerning the performance and the effect of the lease contract, including the most probable lease term, partly based on specifically agreed matters and economic circumstances and incentives. The impact of the COVID-19 pandemic, including concessions granted to tenants, is accounted for in accordance with IFRS 9, with the exception of cases in which a concession qualifies as a lease modification. In that case IFRS 16 applies. The group distinguishes the following categories:
Waivers are charged to the gross rental income. The accounting and impact of these concessions granted is explained in note 5.
• Expected uncollectability of rent receivables for which no arrangements have (as yet) been made Recognition as expected credit losses through application of the simplified approach in accordance with IFRS 9, see also the principle 'Debtors and provision for expected credit losses'. The expected impact of the ongoing negotiations on receivables is recognised as an impairment and taken directly to the profit and loss account as part of the operating expenses. For further explanation, reference is made to note 9.
Other concessions granted by Vastned to its tenants (see note 9), with the exception of the fact that receivables related to this have been included in the calculation of the provision for expected credit losses, do not affect the accounting.
The accounting principles applied to the valuation of assets and liabilities and the determination of the result in these condensed interim consolidated financial statements are based on the assumption of continuity (going concern) of the company.
The amended standards and interpretations that came into effect in 2022 are listed below.
• Annual Improvements to IFRS Standards 2018–2020, such as:
These amendments had no impact on the interim condensed consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The following standards, amended standards and interpretations that have not yet been adopted by the European Union are therefore not yet being applied by the Group:
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023)
The Executive Board does not expect the application in future periods of the standards mentioned above will have any material impact on the financial statements and/or the position of the Group, or on the presentation and/or the notes.
During the first half of 2022 no changes in the scope of consolidation occurred.
Vastned holds a 65.5% interest in the publicly regulated property company under Belgian law Vastned Retail Belgium N.V., which is listed on Euronext Brussels. The 34.5% interest in the equity and the result of this company attributable to non-controlling interests is recognised separately in the balance sheet and the profit and loss account.
Vastned has a 100% interest in and full control over all its other subsidiaries.
The segmented information is only presented based on the countries where the properties are located.
Result
| Netherlands | France Belgium |
Spain | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | |||
| Net rental income | 12,530 | 11,182 | 6,686 | 6,211 | 8,163 | 8,237 | 1,426 | 1,265 | 28,805 | 26,895 | ||
| Value movements in property in operation | 9,497 | (19,324) | 3,329 | (203) | 80 | (7,843) | 1,710 | (1,324) | 14,616 | (28,694) | ||
| Net result on divestments of property | 184 | 92 | - | 50 | - | 398 | - | (582) | 184 | (42) | ||
| Total net income from property | 22,211 | (8,050) | 10,015 | 6,058 | 8,243 | 792 | 3,136 | (641) | 43,605 | (1,841) | ||
| Net financing costs | 3,707 | (4,345) | ||||||||||
| General expenses | (3,427) | (3,451) | ||||||||||
| Income tax | (915) | 887 | ||||||||||
| Result after taxes | 42,970 | (8,750) |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
| Netherlands | France | Belgium | Spain | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | |
| Balance as at 1 January | 622,132 | 641,841 | 409,125 | 405,895 | 322,622 | 338,661 | 81,904 | 83,151 | 1,435,783 | 1,469,548 |
| Acquisitions | - | - | - | - | - | - | - | - | - | |
| Capital expenditure | 41 | 915 | 256 | 332 | 76 | 119 | - | - | 373 | 1,366 |
| Transferred from Assets held for sale | - | - | - | - | - | - | - | - | - | - |
| Transferred to Assets held for sale | - | (525) | - | - | - | (2,150) | - | - | - | (2,675) |
| Divestments | (645) | - | - | (120) | - | (3,664) | - | - | (645) | (3,784) |
| 621,528 | 642,231 | 409,381 | 406,107 | 322,698 | 332,966 | 81,904 | 83,151 | 1,435,511 | 1,464,455 | |
| Value movements | 9,497 | (19,324) | 3,329 | (203) | 80 | (7,843) | 1,710 | (1,324) | 14,616 | (28,694) |
| Balance as at 30 June | 631,025 | 622,907 | 412,710 | 405,904 | 322,778 | 325,123 | 83,614 | 81,827 | 1,450,127 | 1,435,761 |
| Accrued assets in respect of lease incentives |
2,513 | 3,121 | 756 | 1,121 | 726 | 768 | 186 | 238 | 4,181 | 5,248 |
| Total property in operation | 633,538 | 626,028 | 413,466 | 407,025 | 323,504 | 325,891 | 83,800 | 82,065 | 1,454,308 | 1,441,009 |
| Lease liabilities | (2,403) | (2,571) | - | - | (595) | (674) | - | - | (2,998) | (3,245) |
| Other | - | - | - | - | 365 | 466 | - | - | 365 | 466 |
| Appraisal value as at 30 June | 631,135 | 623,457 | 413,466 | 407,025 | 323,274 | 325,683 | 83,800 | 82,065 | 1,451,675 | 1,438,230 |
Vastned Retail N.V. Mercuriusplein 11 2132 HA Hoofddorp PO BOX 22276 1100 CG Amsterdam Tel: +31 202424300
The gross rental income of H1 2022 includes waivers of rent arrears of € 0.4 million (H1 2021: € 2.2 million). The table below shows the impact of COVID-19 on the gross rental income in the first half of 2022:
| H1 2022 | H1 2021 | |
|---|---|---|
| Gross rental income before concessions | 33,483 | 33,557 |
| COVID-19 waivers 1 | (440) | (2,164) |
| Other rent concessions 2 | (273) | (367) |
| Gross rental income after concessions | 32,770 | 31,026 |
1) These concern subsequent waivers of rent arrears, not being lease modifications, that are charged to the gross rental income.
2) These concern concessions that, either with or without contract modifications, have been classified as a lease modification and are therefore
straight-lined over the contract duration.
On 6 May 2022, the dividend for the 2021 financial year was made payable. The dividend was € 1.20 per share in cash (2021: € 1.73 per share in cash). The dividend distribution totalled € 20.6 million (2021: € 29.7 million).
The assets and liabilities valued at fair value on the balance sheet are divided into a hierarchy of three levels:
Level 1: The fair value is determined based on published listings in an active market
Level 2: Valuation methods based on information observable in the market
Level 3: Valuation methods based on information that is not observable in the market, which has a more than significant impact on the fair value of the asset or liability.
The table below shows according to which level the assets and liabilities of the Group are valued at fair value.
| Level | 30 June 2022 | 31 December 2021 | 30 June 2021 | |||||
|---|---|---|---|---|---|---|---|---|
| Book value | Fair value | Book value | Fair value | Book value | Fair value | |||
| Assets valued at fair value | ||||||||
| Property | ||||||||
| Property in operation (including accrued assets in respect of lease incentives) |
3 | 1,454,308 | 1,454,308 | 1,440,640 | 1,440,640 | 1,441,009 | 1,441,009 | |
| Assets held for sale | 3 | - | - | - | - | 2,150 | 2,150 | |
| Financial derivatives | 2 | 8,406 | 8,406 | 27 | 27 | - | - | |
| Liabilities valued at fair value | ||||||||
| Long-term liabilities | ||||||||
| Long term interest-bearing loans | 2 | 617,669 | 614,284 | 612,952 | 619,228 | 628,768 | 638,150 | |
| Lease liabilities | 2 | 3,333 | 2,967 | 3,393 | 4,993 | 3,315 | 3,315 | |
| Financial derivatives | 2 | 8 | 8 | 1,212 | 1,212 | 3,219 | 3,219 |
In the first half of 2022 no changes took place in the principles for the determination of the fair value. Nor were any financial assets reclassified to a different level in the first half of 2022.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The value of the Assets held for sale is determined on the basis of expected sales prices, which are based on draft contracts or letters of intent. The fair value of the 'Long-term interest-bearing loans' and the 'Lease liabilities' is calculated as the present value of the cash flows based on the swap yield curve and credit spreads in effect at 30 June 2022.
The fair value of the derivatives is determined with reference to information from reputable financial institutions, which is also based on directly and indirectly observable market data. For verification purposes, this information is compared to internal calculations made by discounting cash flows based on the market interest rate for comparable financial derivatives on the balance sheet date. When determining the fair value of financial derivatives, the credit risk of the Group or counterparty is taken into account.
The fair value of the 'Debtors and other receivables', 'Cash and cash equivalents', 'Guarantee deposits and other long-term liabilities', 'Payable to banks', 'Redemption of long-term interest-bearing loans', 'Short-term lease liabilities' and 'Other liabilities and accruals' is considered to be equal to the carrying amount because of the short-term nature of these assets and liabilities or the fact that they are subject to a floating interest rate. For this reason, these items are not included in the table.
All the property in operation is appraised at least once per year by independent certified appraisers. As at 30 June 2022, 97.3% of the portfolio has been appraised. These appraisals are based on assumptions including the estimated rental value of the property in operation, net rental income, future capital expenditure and the net market yield of the property. As a result, the value of the property in operation is subject to a degree of uncertainty. The actual outcomes may therefore differ from the assumptions, and this may have a positive or negative effect on the value of the property in operation and, as a consequence, on the result. Due to the strategic choice for the best properties in the most popular high streets, the current crisis has had a limited impact on the valuation of our property.
Our appraisers, CBRE and Cushman & Wakefield, have the largest database in Europe in the area of retail properties. They are best placed in the present appraisal market to minimise the estimation uncertainty and assign a correct value to Vastned's property portfolio.
The appraisal of the property portfolio resulted in a net yield (including transaction costs) of 4.1% (31 December 2021: 4.1%; 30 June 2021: 4.0%).
A 25 basis point increase in the net yields used in the appraisal values would result in a decrease in the value of the property in operation by € 85.2 million or 5.9% (31 December 2021: € 84.4 million or 5.9%; 30 June 2021: € 86.5 million or 6.0%), a 268 basis points increase in the loan-to-value ratio (31 December 2021: 268 basis points; 30 June 2021: 282 basis points) and a decrease of the solvency ratio by 271 basis points (31 December 2021: 277 basis points). At 50 basis points this would be € 160.7 million or 11.1% and 534 and 542 basis points respectively.
A 5% decrease of the market rents used in the appraisal values would result in a decrease in the value of the property portfolio by € 72,5 million or 5%, a rise of the loan-to-value ratio by 226 basis points and a decrease of the solvency ratio by 229 basis points (31 December 2021: € 71.9 million or 5%, a rise of the loan-to-value ratio by 226 basis points and a decrease of the solvency ratio by 234 basis points). At 10% this would be this would be € 145.0 million or 10% and 476 and 4834 basis points respectively.
For further information on the property portfolio please refer to the chapter Value movements in the 2022 half-year report.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| 30 June 2022 | 31 December 2021 | 30 June 2021 | |
|---|---|---|---|
| Debtors and pre-invoiced amounts | 10,598 | 10,831 | 12,230 |
| Provision for expected credit losses | (1,924) | (1,899) | (3,115) |
| Net total | 8,674 | 8,932 | 9,115 |
The total debtors and pre-invoiced amounts, after deduction of the provision for expected credit losses, can be broken down as follows by the nature of the receivable:
| 30 June 2022 | 30 June 2021 | |||||
|---|---|---|---|---|---|---|
| Gross amounts |
Provision for expected credit losses |
Net amounts | Gross amounts |
Provision for expected credit losses |
Net amounts | |
| Accounts receivable unrelated to COVID-19 |
1,928 | (1,330) | 598 | 1,360 | (1,076) | 284 |
| Accounts receivable related to COVID-19 |
861 | (594) | 267 | 3,393 | (1,882) | 1,511 |
| Accounts receivable for which the debtor has been granted a deferred payment due to COVID-19 |
235 | - | 235 | 962 | (157) | 805 |
| Pre-invoiced rent | 7,504 | - | 7,504 | 6,423 | - | 6,423 |
| Other receivables | 70 | - | 70 | 92 | - | 92 |
| Total | 10,598 | (1,924) | 8,674 | 12,230 | (3,115) | 9,115 |
| 31 December 2021 | ||||
|---|---|---|---|---|
| Gross amounts |
Provision for expected credit losses |
Net amounts | ||
| Accounts receivable unrelated to COVID-19 |
1,345 | (947) | 398 | |
| Accounts receivable related to COVID-19 |
1,855 | (822) | 1,033 | |
| Accounts receivable for which the debtor has been granted a deferred payment due to COVID-19 |
462 | (130) | 332 | |
| Pre-invoiced rent | 7,152 | - | 7,152 | |
| Other receivables | 17 | - | 17 | |
| Total | 10,831 | (1,899) | 8,932 |
Any rent due must be contractually paid by the tenants before or on the first day of the rental period. In connection with the COVID-19 pandemic it has been agreed in a number of cases with tenants that, due to the unusual circumstances, they may pay the rent owed more spreadly (monthly instead of quarterly), or that payment may take place at a later date, or a combination of these two. No interest is charged on the outstanding rent receivables. The Group determines the provision for expected credit losses by applying the simplified approach in accordance with IFRS 9. Expected credit losses on rent receivables are estimated by means of a provisions matrix based on the debtors' past payment behaviour, based on an analysis by country, in conjunction with an analysis of the debtors' current financial position corrected for factors that are specific to the debtors, the status of the negotiations regarding rent payments that are past due, the economic circumstances of the industry in which the debtors are active and an assessment of both the current and the expected circumstances on the balance sheet date. The allocation to the provision for expected credit losses in the first half of 2022 was € 0.1 million (first half of 2021: € 0.6 million).
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
As a result of the movement in the discount rate in the first half of 2022, the defined benefit pension obligation was recalculated, in line with the first half of 2021. This has resulted in a decrease of the defined benefit pension obligation of € 2.4 million (first half 2021: € 0.8 million decrease).
| 30 June 2022 | 31 December 2021 | 30 June 2021 | |
|---|---|---|---|
| Long-term liabilities | |||
| Unsecured loans | 617,669 | 612,952 | 628,768 |
| Lease liabilities | 3,333 | 3,393 | 3,315 |
| 621,002 | 616,345 | 632,083 | |
| Short-term liabilities | |||
| Payable to banks | 4,471 | 3,320 | 5,970 |
| Redemption long-term interest bearing loans | - | - | - |
| Lease liabilities | 263 | 263 | 159 |
| 4,734 | 3,583 | 6,129 | |
| Total | 625,736 | 619,928 | 638,212 |
In the first half of 2022 Vastned has not drawn new financing. In the first half of 2022 Vastned drew down, taking into account the distribution of the final dividend 2021, on balance an additional amount of € 9.6 million from its existing credit facilities.
At 30 June 2022, the solvency ratio, calculated by taking equity plus the provision for deferred tax liabilities divided by the balance sheet total, was 55.6% (31 December 2021: 55.1%; 30 June 2021: 53.9%), which is within the solvency ratios of at least 45% as agreed with the lenders.
The interest coverage ratio as at June 30, 2022 was 4.9 (December 31, 2021: 4.8; 30 June 2021: 4.6) (calculated by taking net rental income and dividing it by net financing costs (excluding value movements in financial derivatives)), which was well above the 2.0 ratio agreed with lenders.
In the event that the limits of the solvency rates and interest coverage rates agreed with the lenders are not met, this constitutes an 'event of default'; in this case the lenders are entitled to terminate the credit agreements.
As at 30 June 2022, the impact on the interest expense of a hypothetical 100-basis-point increase in interest rates – all other factors remaining equal – would be € 1.0 million negative (31 December 2021: € 0.1 million positive). Should interest rates increase by 200 basis points as at this date – all other factors remaining equal – the impact on the interest expense would be € 2.7 million negative (31 December 2021: € 1.6 million negative). As several loans contain a clause stipulating that the interest rate may not be negative, a 100-basis-point decrease in interest rates would have a negative impact on the interest expense. The impact referred to has been calculated on an annual basis, taking into account the financial derivatives entered into.
For further information about interest-bearing debts reference is made to the chapter Financing structure in the 2022 half-year report.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
As a result of the changed market interest rates, the value movements of the interest rate derivatives during H1 2022 were € 9.6 million positive (FY 2021: € 3.6 million positive, H1 2021: € 1.6 million positive).
For further information about the financial derivatives reference is made to the chapter Financing structure in the 2022 half-year report.
The abortive purchase costs concern extraordinary costs related to an intended transaction, which would have resulted in a delisting of Vastned Belgium. The discussions were ended due to rapidly changed market conditions.
In the past companies have been acquired that owned property. These acquisitions were recognised as a takeover of assets. The provisions for deferred tax liabilities not recorded in the balance sheet total € 14.9 million (31 December 2021: € 14.1 million).
In 2017, Vastned transferred all shares in the company Vastned Emlak Yatırım ve İnşaat Ticaret A.Ş., owner of the property located in Istanbul, Turkey, to a group of local private investors. The guarantees customary in such transactions were given to the buyer. The customary guarantees expired in 2018 without the buyer having invoked them. The tax indemnifications will expire upon expiry of the statutory periods for additional assessments for the particular year. The longest running term still outstanding concerns the 2017 calendar year, which will expire on 31 December 2022. Vastned does not expect any effect to be significant.
In H1 2022 Vastned entered into an agreement to purchase a property in Rotterdam. This purchase amounts a total of € 1,8 million excluding costs and the transfer is scheduled for August 2022.
Apart from the topics described below, no material changes have occurred in the first half of 2022 in the nature, scope or size of the transactions with related parties compared to what is stated in the notes to the 2021 financial statements.
During the first half of 2022, none of the members of the Supervisory Board and Executive Board of Vastned had any personal interest in Vastned's investments. To Vastned's best knowledge, no property transactions were affected during the period under review involving persons or institutions that could be regarded as related parties.
At the time of writing of this half-year report the Netherlands Authority for the Financial Markets (AFM) had received the following notifications from shareholders holding an interest in Vastned of three percent or more:
| Van Herk Investments B.V. | 24.98% |
|---|---|
| Lebaras Belgium BVBA | 5.10% |
| BlackRock, Inc. | 4.88% |
| Tikehau Capital Advisors SAS | 3.05% |
| Société Fédérale de Participations et d'Investissement (SFPI) | 3.02% |
| ICAMAP Real Estate Securities Fund S.A. | 3.01% |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
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