Quarterly Report • Feb 16, 2023
Quarterly Report
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Initiation of strategic reorientation, considering all strategic options
Hoofddorp, 16 February 2023 – Vastned, the listed European retail property company, continues its strong operational and financial performance. Vastned reports earnings for 2022 of € 1.83 euro per share versus € 0.84 per share in 2021, and a direct result for 2022 of € 2.05 euro per share, an increase versus € 1.93 per share reported in 2021. The collection rate further improved to 98.2%, and the occupancy rate remains high at 98.6%. The value of the property portfolio slightly decreased by 1.2% during 2022, reflecting the quality of Vastned's portfolio.
Reinier Walta, Vastned CEO: "Vastned achieved strong results for the year 2022. Gross rental income increased from € 62.2 million to € 66.4 million, and the direct result for the year 2022 increased from € 33.1 million to € 35.2 million. Most of our performance indicators – financial and operational – improved in 2022. Our portfolio in all of our markets has shown its resilience in the past years where our business was impacted by Covid and economic and geopolitical headwinds. In 2022, high streets were busy again, and consumers are looking for inspiring and rewarding experiences. Equally, hospitality businesses have picked up, with restaurants and bars experiencing pre-pandemic interest from consumers.
High-quality retail locations also proved their value in 2022 as demand for well-located retail space grew once again. While an effective combination of online and offline channels is more important than ever, physical stores remain indispensable for delivering well-rounded customer experiences as well as customer-oriented marketing and branding. In 2022, we also further improved our tenant mix, for instance by continuing to reduce the exposure to fashion in our portfolio to 45%.
Our portfolio has proven to be robust and high street shopping is getting back on track. It is, however, important to remain vigilant: also Vastned is not immune to rising interest rates, geo-political and other economic uncertainties. Therefore, Vastned does not provide guidance on the direct result for the 2023 full year at this stage.
Considering the current context of rising interest rates, increasing yields on retail real estate properties and the expected abolishment of the FBI regime as of 2025, we will conduct a strategic reorientation, with the intention to unlock value for Vastned and all of its stakeholders. In this reorientation we will consider all strategic options for the company, including their feasibility."
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| Results | 2022 | 2021 |
|---|---|---|
| Occupancy rate as at 31 December (%) | 98.6 | 97.9 |
| Like-for-like gross rental growth (%) | 7.5 | 0.7 |
| Value movements (%) 1) | (1.2) | (1.6) |
| Total appraisal value of the portfolio (€ million) | 1,420 | 1,438 |
| Direct result per share (€) | 2.05 | 1.93 |
| Indirect result per share (€) | (0.22) | (1.09) |
| Result per share (€) | 1.83 | 0.84 |
1) Excluding acquisitions and divestments
Vastned has focused on operational excellence in 2022, which is reflected in its strong operational performance. The exposure to fashion retail was again reduced to approximately 45% (from 46% at year-end 2021). The tenant-mix improved further with some interesting new lettings above market rent to what Vastned considers future-proof retailers. Also Vastned strengthened its internal organisation with some key job vacancies filled and continued to improve its organizational efficiency. In 2022 only a limited number of small, non-core assets were divested. Vastned also acquired an attractive additional unit in the Zuidplein shopping centre in Rotterdam.
Considering the current context of rising interest rates, increasing yields on retail real estate properties and the expected abolishment of the FBI regime as of 2025, we will conduct a strategic reorientation, with the intention to unlock value for Vastned and all of its stakeholders. In this reorientation we will consider all strategic options for the company, including their feasibility.
In 2022, Vastned stepped up its efforts to improve the sustainability performance of its portfolio, as part of our commitment to support the fight against climate change and having a positive and wide-ranging impact on society at large. Vastned worked on enlarging its Green Finance-eligible asset portfolio, in line with its target to reach 25% of the total market value of the portfolio by 2025. Eligible assets relate to those that can be used for green loans in line with Vastned's Green Finance Framework. At the end of 2022, 25% of the total market value of the portfolio was much earlier than expected already deemed to be eligible. The change in the determining factors for energy performance certificate (EPC) labels for commercial units in the Netherlands was a major contributor to this achievement.
In 2023 and beyond, Vastned will use the Carbon Risk Real Estate Monitor (CRREM), an internationally recognised method, to benchmark the energy consumption of its buildings against the global framework set out by the Paris Agreement. This risk assessment tool will provide insights into the magnitude of these risks at a building and portfolio level. The results of this research will be used in shaping Vastned's sustainability programmes.
The Dutch government has announced its intention to abolish the FBI regime for all direct real estate investments in the Netherlands from 1 January 2025, a year later than the initial plan, allowing more time to prepare for this major change. In the meantime, we have no indications that other governments of European countries are considering such a significant change to their fiscal REIT regimes. Across Europe, REITs have contributed tremendously to the development of a healthy real estate sector, attracting significant investments.
In October 2022, we provided an estimate of the potential negative impact this change could have on Vastned's direct result in the year following the abolishment. This was estimated a negative impact at between 5% and 10%. However, the negative impact cannot be fully assessed at this stage and will depend on the outcome of a political process in the Dutch parliament as well as possible flanking measures. It will also vary depending on any restructuring measures Vastned may take in response to the proposed plan.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
Vastned considers its high overall occupancy rate as evidence of the quality and attractiveness of its property portfolio. At yearend 2022, the occupancy rate of the total portfolio was 98.6%.
| Occupancy rate (%) | 31 December 2022 | 30 June 2022 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Netherlands | 98.3 | 98.3 | 97.2 | 95.2 |
| France | 97.9 | 98.1 | 97.2 | 98.5 |
| Belgium | 99.4 | 98.8 | 99.3 | 96.2 |
| Spain | 100.0 | 100.0 | 100.0 | 100.0 |
| Total | 98.6 | 98.5 | 97.9 | 96.5 |
In 2022, Vastned concluded 43 leases for a total annual amount of € 6.4 million, or 8.7% of the total theoretical annual gross rental income. In 2021, in comparison, Vastned concluded 92 leases for a total annual amount of € 12.4 million, or 17.4% of the total theoretical annual gross rental income.
| Leasing activity | 2022 |
|---|---|
| Number of leases | 43 |
| Rental income (€ million) | 6.4 |
| % of total theoretical annual rent | 8.7% |
| Rental change (€ million) | (0.8) |
| % rental change | (11%) |
The value of the property portfolio was € 1,420 million at year-end 2022 (year-end 2021: € 1,438 million).
| Portfolio breakdown (€ million) | 31 Dec 2022 | % of total |
|---|---|---|
| Netherlands | 610 | 43% |
| France | 407 | 29% |
| Belgium | 321 | 22% |
| Spain | 82 | 6% |
| Total | 1,420 | 100% |
2132 HA Hoofddorp
All properties in operation are appraised at least once per year by independent certified appraisers. As per 31 December 2022, the portfolio has been appraised. The like-for-like appraisal value of the property portfolio excluding acquisitions and divestments as at the end of December 2022 decreased by 1.2% compared with year-end 2021. The value movements of the portfolios in the Netherlands, France, Belgium and Spain were (1.97)%, (0.75)%, (0.76)% and 0.04% respectively.
| Appraisal value | |||||
|---|---|---|---|---|---|
| (Like-for-like) | |||||
| (€ million) | FY22 | vs FY21 (%) | FY 2021 | vs FY20 (%) | FY 2020 |
| Netherlands | 609 | (2.0) | 621 | (2.4) | 636 |
| France | 407 | (0.7) | 410 | 0.7 | 407 |
| Belgium | 321 | (0.8) | 323 | (2.9) | 333 |
| Spain | 82 | 0.0 | 82 | (1.8) | 84 |
| Total | 1,419 | (1.2) | 1,436 | (1.6) | 1,460 |
In 2022 Vastned acquired Zuidplein Hoog 827 in Rotterdam, for a total consideration of € 1.8 million excluding costs. This unit is leased to ICI Paris XL. Zuidplein is a shopping centre that has performed well over the years. Vastned already had 7 units in this centre and there was a good opportunity to acquire the property at an attractive price and good initial yield. Zuidplein underwent a significant upgrade over past couple of years, officially reopened on 25 January 2023. The upgrade means that Zuidplein is expected to remain an attractively positioned shopping centre in the coming years. Besides that, various improvements were made in the area, such as the expansion of the Ahoy venue, the optimization of the Zuidplein metro station, a new municipal swimming pool and hotels. Altogether this is a well-located unit with a broad front and on a long-term lease to a strong retailer.
As part of its strategy to further reduce the risk profile of the portfolio, Vastned sold non-strategic assets in the Netherlands in 2022. The divested properties had a total book value of € 1.7 million at the time of sale and a total transaction value of € 2.2 million.
| Financial results (€ million) | 2022 | 2021 |
|---|---|---|
| Direct result | 35.2 | 33.1 |
| Indirect result | (3.8) | (18.7) |
| Result attributable to Vastned Retail shareholders | 31.3 | 14.4 |
| Result attributable to non-controlling interests | 5.0 | 1.4 |
| Result after taxes | 36.3 | 15.8 |
The result attributable to Vastned's shareholders, which comprises the direct and indirect results, was € 31.3 million in 2022 (2021: € 14.4 million). The main cause was the increase of the indirect result from € 18.7 million negative in 2021 to € 3.8 million negative in 2022. Within the indirect result, the decrease in value of the property portfolio in 2022 amounted to € 19.4 million (2021: decrease of € 26.5 million). As a result of the changed increased market interest rates, the value movements of the financial derivatives were € 16.3 million positive in 2022 (2021: € 3.6 million positive).
The direct result increased from € 33.1 million in 2021 to € 35.2 million in 2022. Net rental income came out higher (€ 59.7 million in 2022 compared to € 56.6 million in 2021) however this higher net rental income was negatively impacted by an increase in financing costs, general expenses and income taxes.
The result per share attributable to Vastned Retail shareholders was € 1.83 for 2022 (2021: € 0.84). The result comprises the direct result per share of € 2.05 (2021: € 1.93) and the indirect result per share of € 0.22 negative (2021: € 1.09 negative).
The gross rental income was € 66.4 million in 2022 compared with € 62.2 million in 2021. A break-down of the movements per country is provided in the table below.
| Total (€ thousands) | Netherlands | France | Belgium | Spain | Total | In % of 2021 amounts (2021 = 100) |
|---|---|---|---|---|---|---|
| Gross rental income 2021 | 28,745 | 13,481 | 17,232 | 2,758 | 62,216 | 100.0% |
| Acquisitions | 77 | - | - | - | 77 | 0.1% |
| Divestments | (291) | - | (219) | (12) | (522) | -0.8% |
| Waivers of rent arrears (LfL) | 1,283 | 579 | 664 | - | 2,526 | 4.1% 1) |
| Like-for-like rental growth | 767 | 722 | 244 | 347 | 2,080 | 3.4% 1) |
| Gross rental income 2022 | 30,581 | 14,782 | 17,921 | 3,093 | 66,377 | 106.7% |
| Other income | - | 326 | 83 | - | 409 | |
| Addition to provision for expected | ||||||
| credit losses | 219 | (402) | 25 | - | (158) | |
| Operating expenses 2) | (3,961) | (1,101) | (1,590) | (284) | (6,936) | |
| Net rental income 2022 | 26,839 | 13,605 | 16,439 | 2,809 | 59,692 | 105.4% |
| Net rental income 2021 | 24,893 | 12,862 | 16,228 | 2,640 | 56,623 | 100.0% |
| Operating expenses as % of | ||||||
| gross rental income 2022 3) | 12.2 | 10.2 | 8.7 | 9.2 | 10.7 | |
| Operating expenses as % of gross rental income 2021 3) |
13.4 | 4.6 | 5.8 | 4.3 | 9.0 |
1) Percentage calculated based on the standing portfolio – gross rental income 2021 minus the effect of divestments.
2) Including net service charge expenses.
3) The operating expenses as % of gross rental income is higher in 2022 compared to 2021 as a result of a large amount of releases of provisions for expected credit losses accounted for in 2021. This is the result of the 'recycling' of provisions into waivers (negative rent) after agreements were made with our tenants on concessions as a result of (the impact of ) Covid-19.
In 2022 Vastned acquired a property located at the Zuidplein Hoog 827 in Rotterdam for an amount of € 1.9 million including costs. In 2021 no acquisitions were made. As a result of this acquisition gross rental income increased by € 77 thousand.
In 2022, Vastned sold € 1.7 million worth of properties (€ 1.6 million in bookvalue at the time of divestment). In 2021, properties with a bookvalue of € 17.7 million were sold, which caused the gross rental income for 2022 to fall by € 0.5 million compared with 2021.
As a result of Covid-19, an amount of € 0.5 million in rent arrears was waived in 2022 (2021: € 3.1 million). The waivers of rent arrears in 2022 were predominantly granted in the Netherlands. Based on a like-for-like comparison, waivers of rent arrears were € 2.6 million positive.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The like-for-like rental growth of the gross rental income was € 2.1 million positive compared to 2021. The like-for-like rental growth in the Netherlands, France, Belgium and Spain was € 0.8 million, € 0.7 million, € 0.3 million and € 0.3 million positive respectively, as a result of rental indexations and a higher occupancy rate during 2022.
The like-for-like growth of the gross rental income was 3.4% positive for the total property portfolio. Including waivers the like-forlike rental growth was 7.5%.
Total operating expenses, excluding the allocation to the provision for expected credit losses, increased from € 6.5 million in 2021 to € 6.9 million in 2022. Higher maintenance costs and letting costs mainly caused the increase of € 0.4 million.
The allocation to the provision for expected credit losses increased from € 0.4 million positive 2021 to € 0.2 million negative in 2022. The dotation in 2022 consists of releases of earlier Covid-19 related provisions of € 0.2 million and dotations of € 0.4 million which were mainly related to the French portfolio.
Expressed as a percentage of the gross rental income (including credit losses), operating expenses were 10.7% in 2022 (2021: 9.0%).
The value movements in property in 2022 totalled € 19.5 million negative (2021: € 26.5 million negative). The value decreases of the Dutch, French and Belgian property portfolios were € 14.0 million, € 3.0 million and € 2.6 million respectively. In Spain, the value of the property increased with € 0.1 million.
The net result on the divestments realised in 2022 after the deduction of sales costs plus some late results was € 0.6 million positive.
The net financings costs, including value movements of financial derivatives, decreased from € 8.3 million negative in 2021 to € 4.3 million positive in 2022. Developments regarding the net financing costs are detailed in the table below.
| Net financing costs 2022 | (4.3) |
|---|---|
| Decrease due to positive value movements in financial derivatives | (12.7) |
| Net increase due to lower average interest rate and changes in fixed/floating interest rates and working capital |
0.3 |
| Decrease due to lower average interest-bearing debts | (0.2) |
| Net financing costs 2021 | 8.3 |
Net financing costs decreased by € 0.2 million in 2022 due to lower average interest-bearing debts resulting from divestments and changes in working capital. The ratio fixed/floating interest within the loan portfolio at year-end 2022 is 72.5%/27.5%; due to the increased market interest rates the average interest rate increased with 3 basis points from 1.88% in 2021 to 1.91% in 2022, pushing interest expenses up by € 0.3 million. As a result of the increased market interest rate, the value movements of the interest rate derivatives were € 16.3 million positive in 2022 compared with € 3.6 positive in 2021.
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
General expenses were € 6.9 million in 2022 compared with € 6.7 million in 2021. The increase of € 0.2 million is mainly due to additional consultancy costs, higher IT costs and increased audit fees.
The abortive purchase costs of € 0.7 million are costs related to an intended transaction, which could have resulted in a delisting of Vastned Belgium NV. The discussions were ended due to rapidly changed market conditions.
In 2022, income tax payable for the regularly taxed entities in the Netherlands, Belgium and Spain was € 0.9 million (2021: € 0.6 million).
The movement in deferred tax assets and liabilities was € 0.4 million negative in 2022 (2021: € 1.1 million positive). The increase in the provision for deferred tax in 2022 was mainly due to the write-off in 2022 of two deferred tax assets related to loss compensation and the earnings stripping rule.
As at 31 December 2022, Vastned had a total accounts receivable position of € 11.7 million (31 December 2021: € 10.8 million), of which € 1.9 million was provided for (31 December 2021: € 1.9 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 | Outstanding | Provision for expected credit losses |
Total |
|---|---|---|---|
| receivables (€ million, rounded) | |||
| Accounts receivable unrelated to COVID-19 | 3,228 | 1,601 | 1,627 |
| Accounts receivable related to COVID-19 | 552 | 336 | 216 |
| Accounts receivable for which a deferment has been granted in the context of COVID-19 |
215 | - | 215 |
| Pre-invoiced rent | 7,654 | - | 7,654 |
| Other receivables | 26 | - | 26 |
| Total | 11,675 | 1,937 | 9,738 |
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.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
Vastned strives to maintain a conservative financing structure, with a loan-to-value ratio with a maximum of 40% on the longterm and good diversification of financing sources; e.g. by placing long-term loans with institutional investors (including through private placements).
| Financing structure | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Loan-to-value (%) | 43.4 | 43.0 |
| Solvency 1 (%) | 55.4 | 55.1 |
| Interest coverage ratio | 5.0 | 4.8 |
1) Group equity plus deferred tax liabilities divided by the balance sheet total
As at 31 December 2022, Vastned's balance sheet showed a healthy financing structure with a loan-to-value ratio of 43.4% (year-end 2021: 43.0%) and a solvency ratio, being group equity plus deferred tax liabilities divided by the balance sheet total, of 55.4% (year-end 2021: 55.1%). The interest coverage ratio for the past 12 months was 5.0.
With a solvency ratio of 55.4% and an interest coverage ratio of 5.0, Vastned complies with the loan covenants as at 31 December 2022. 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 2 | Floating interest | Total | % of total |
|---|---|---|---|---|
| Long-term debt | 429.9 | 155.4 | 585.3 | 95.4 |
| Short-term debt | 15.0 | 13.3 | 28.3 | 4.6 |
| Total | 444.9 | 168.7 | 613.6 | 100.0 |
| % of total | 72.5 | 27.5 | 100.0 |
2) Taking account of interest rate derivatives
At the end of December 2022, 72.5% 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 35.0%, significantly above the target of a minimum of 25%.
Taking the unused credit facilities of € 124.8 million as at 31 December 2022 into account, there is ample liquidity to fulfil shortterm payment obligations.
In 2022 Vastned extended the duration of part of its syndicated loan facility by one year to 12 September 2025 for a facility amount of € 200.0 million at the same attractive conditions.
As a result of the combined direct and indirect result per share of € 1.83 positive, the other movements of € 0.13 positive, the 2021 final dividend distribution of € 1.20 per share and the interim dividend distribution of € 0.59 per share, the net asset value per share increased from € 41.57 at year-end 2021 to € 41.74 at year-end 2022.
The EPRA NRV per share as at 31 December 2022 was € 46.79 compared with € 47.73 as at year-end 2021.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300 [email protected] www.vastned.com
The total dividend Vastned proposes to its shareholders accumulates € 1.85 per share, representing a pay-out ratio of 90.2% of the direct result of 2022. Following the interim dividend of € 0.59 per share paid in August 2022, the final dividend is proposed at € 1.26 per share. If this dividend proposal for 2022 is approved, the Vastned share is expected to quote ex-dividend on 24 April 2023, and the final dividend will be made payable on 4 May 2023.
Vastned's portfolio has proven to be robust and high street shopping is getting back on track. It is, however, important to remain vigilant: also Vastned is not immune to rising interest rates, geo-political and other economic uncertainties. Therefore, Vastned does not provide guidance on the direct result for the 2023 full year at this stage.
On 16 February 2023 at 10 am (CET), Vastned will provide an analyst presentation on the Annual Results 2022 that will be broadcasted in the form of a webcast. This webcast call can be followed live via https://vastned.com/en/investor-relations/ investor_relations.
Vastned is a European publicly listed property company (Euronext Amsterdam: VASTN) focusing on the best property in the popular shopping areas of selected European cities with a historic city centre where shopping, living, working and leisure meet. Vastned's property clusters have a strong tenant mix of international and national retailers, food & beverage entrepreneurs, residential tenants, and office tenants. Its property portfolio had a size of € 1,420 million as at 31 December 2022.
Investor Relations Tel: +31 20 2424 300
| Results (€ thousand) | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Gross rental income | 66,377 | 62,216 |
| Direct result | 35,177 | 33,058 |
| Indirect result | (3,832) | (18,653) |
| Result | 31,345 | 14,405 |
| Balance sheet (€ thousand) | ||
| Property (appraisal value) | 1,420,406 | 1,438,000 |
| Equity | 795,951 | 791,999 |
| Equity Vastned Retail shareholders | 715,879 | 713,072 |
| Long-term liabilities | 606,209 | 636,595 |
| Solvency definition lenders (%) | 55.4 | 55.1 |
| Loan-to-value (%) | 43.4 | 43.0 |
| Interest coverage ratio | 5.0 | 4.8 |
| Financial occupancy rate property portfolio (%) | 96.9 | 95.7 |
| Average number of shares in issue | 17,151,976 | 17,151,976 |
| Number of shares in issue (end of period) | 17,151,976 | 17,151,976 |
| Per share (€) | ||
| Equity Vastned Retail shareholders at beginning of period (including final dividend) |
41.57 | 42.98 |
| Final dividend previous financial year | (1.20) | (1.73) |
| Equity Vastned Retail shareholders at beginning of period (excluding final dividend) |
40.37 | 41.25 |
| Direct result | 2.05 | 1.93 |
| Indirect result | (0.22) | (1.09) |
| Result | 1.83 | 0.84 |
| Remeasurement of defined benefit obligation | 0.13 | 0.01 |
| Interim dividend | (0.59) | (0.53) |
| Equity Vastned Retail shareholders at end of period (including final dividend) |
41.74 | 41.57 |
| Share price (end of period) (€) | 21.15 | 24.00 |
| Premium/(Discount) (%) | (49.3) | (42.3) |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| (€ thousand) | |
|---|---|
| -------------- | -- |
| Direct result | YEAR 2022 | YEAR 2021 | HY2 2022 | HY2 2021 |
|---|---|---|---|---|
| Gross rental income | 66,377 | 62,216 | 33,607 | 31,190 |
| Other income | 409 | 490 | 206 | 202 |
| Net service charge expenses | (61) | (142) | (22) | (92) |
| Operating expenses | (7,033) | (5,941) | (2,904) | (1,573) |
| Net rental income | 59,692 | 56,623 | 30,887 | 29,727 |
| Financial income | 13 | 36 | 6 | 28 |
| Financial expenses | (12,018) | (11,906) | (6,136) | (6,003) |
| Net financing costs | (12,005) | (11,870) | (6,130) | (5,975) |
| General expenses | (6,889) | (6,707) | (3,462) | (3,256) |
| Direct result before taxes | 40,798 | 38,046 | 21,295 | 20,496 |
| Current income tax expense | (855) | (633) | (451) | (372) |
| Movement in deferred tax assets and liabilities | (145) | 139 | (183) | 32 |
| Direct result after taxes | 39,798 | 37,551 | 20,661 | 20,552 |
| Direct result attributable to non-controlling interests | (4,621) | (4,494) | (2,344) | (2,196) |
| Direct result attributable to Vastned Retail shareholders | 35,177 | 33,058 | 18,317 | 17,960 |
| Indirect result | ||||
| Value movements in property in operation | (19,457) | (26,531) | (34,073) | 2,163 |
| Total value movements in property | (19,457) | (26,531) | (34,073) | 2,163 |
| Net result on divestments of property | 635 | 234 | 451 | 276 |
| Value movements in financial derivatives | 16,319 | 3,584 | 6,737 | 2,034 |
| Abortive purchase costs | (719) | - | (49) | - |
| Indirect result before taxes | (3,222) | (22,713) | (26,934) | 4,473 |
| Movement deferred tax assets and liabilities | (231) | 988 | 318 | (54) |
| Indirect result after taxes | (3,453) | (21,725) | (26,616) | 4,419 |
| Indirect result attributable to non-controlling interests | (379) | 3,072 | 185 | 658 |
| Indirect result attributable to Vastned Retail shareholders | (3,832) | (18,653) | (26,431) | 5,077 |
| Result attributable to Vastned Retail shareholders | 31,345 | 14,405 | (8,114) | 23,037 |
| Per share (€) | ||||
| Direct result attributable to Vastned Retail shareholders | 2.05 | 1.93 | 1.07 | 1.05 |
| Indirect result attributable to Vastned Retail shareholders | (0.22) | (1.09) | (1.54) | 0.29 |
| Result attributable to Vastned Retail shareholders | 1.83 | 0.84 | (0.47) | 1.34 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
The EPRA Best Practices Recommendations ('BPR') published by EPRA's Reporting and Accounting Committee contain recommendations for the determination of key performance indicators of the property portfolio. Vastned acknowledges the importance of standardising the reporting on performance indicators for the sake of comparability and improving the quality of the information provision to investors and other users. The financial statements in this chapter are presented in euros; amounts are rounded off to thousands of euros, unless stated differently.
| (€ thousand) | per share (€) | ||||
|---|---|---|---|---|---|
| EPRA performance-indicator 1) | Table | 2022 | 2021 | 2022 | 2021 |
| EPRA Earnings | 1 | 35,177 | 33,058 | 2.05 | 1.93 |
| EPRA NRV | 2 | 802,537 | 818,719 | 46.79 | 47.73 |
| EPRA NTA | 2 | 710,599 | 722,681 | 41.43 | 42.13 |
| EPRA NDV | 2 | 712,483 | 705,074 | 41.54 | 41.11 |
| EPRA Net Initial Yield (NIY) | 3 (i) | 4.2% | 3.9% | ||
| EPRA 'topped-up' NIY | 3 (ii) | 4.3% | 4.1% | ||
| EPRA Vacancy Rate | 4 | 1.5% | 2.2% | ||
| EPRA Cost Ratio (including direct vacancy costs) | 5 (i) | 20.9% | 20.4% | ||
| EPRA Cost Ratio (excluding direct vacancy costs) | 5 (ii) | 20.6% | 19.9% | ||
| Capital expenditure | 6 | 4,616 | 3,026 | ||
| EPRA LTV 2) | 7 | 45.6% |
1) The EPRA performance indicators have been calculated based on definitions as published by EPRA
2) Reported as per book year 2022 after the introduction of this new financial KPI during 2022 by EPRA
| 2021 | |
|---|---|
| 36,345 | 15,827 |
| 19,457 | 26,531 |
| (635) | (234) |
| - | - |
| (16,319) | (3,584) |
| 231 | (988) |
| (4,621) | (4,494) |
| 34,458 | 33,058 |
| 719 | - |
| 35,177 | 33,058 |
| 2.01 | 1.93 |
| 0.04 | - |
| 2.05 | 1.93 |
| 2022 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| (€ thousand) | 31 December 2022 | 31 December 2021 | ||||
|---|---|---|---|---|---|---|
| EPRA NRV | EPRA NTA | EPRA NDV | EPRA NRV | EPRA NTA | EPRA NDV | |
| Equity Vastned Retail shareholders | 715,879 | 715,879 | 715,879 | 713,072 | 713,072 | 713,072 |
| Hybrid instruments | - | - | - | - | - | - |
| Diluted NAV | 715,879 | 715,879 | 715,879 | 713,072 | 713,072 | 713,072 |
| Diluted NAV at fair value | 715,879 | 715,879 | 715,879 | 713,072 | 713,072 | 713,072 |
| Deferred taxes in relation to fair value gains of property | 9,380 | 9,380 | - | 9,164 | 9,164 | - |
| Fair value of financial derivatives | (14,374) | (14,374) | - | 770 | 770 | - |
| Intangible fixed assets | - | (286) | - | - | (325) | - |
| Fair value of fixed-rate interest-bearing debts | - | - | (3,396) | - | - | (7,998) |
| Real-estate transfer tax | 91,652 | - | - | 95,713 | - | - |
| NAV | 802,537 | 710,599 | 712,483 | 818,719 | 722,681 | 705,074 |
| 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 (€) | 46.79 | 41.43 | 41.54 | 47.73 | 42.13 | 41.11 |
| 31 December 2022 | 31 December 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 |
|
| The portion of the portfolio that is subject to deferred taxes and that is intended to hold and not to sell in the long run |
191,450 | 13 | 100 | 196,064 | 14 | 100 |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
(€ thousand)
| Netherlands | France | Belgium | Spain | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| Investment property | 610,465 | 622,575 | 407,045 | 410,115 | 320,752 | 323,194 | 82,143 | 82,115 | 1,420,405 | 1,438,000 |
| addition: | ||||||||||
| Estimated transaction fees | 54,936 | 58,554 | 29,326 | 29,183 | 8,019 | 8,268 | 2,138 | 2,561 | 94,420 | 98,566 |
| Investment value of property (B) |
665,401 | 681,129 | 436,371 | 439,298 | 328,771 | 331,462 | 84,281 | 84,676 | 1,514,825 | 1,536,566 |
| Annualised gross rental income | 32,271 | 31,032 | 15,628 | 14,480 | 18,616 | 17,200 | 3,330 | 2,945 | 69,846 | 65,658 |
| Property outgoings | (4,438) | (4,260) | (659) | (539) | (1,411) | (1,320) | (195) | (199) | (6,704) | (6,318) |
| Annualised net rental income (A) |
27,834 | 26,772 | 14,969 | 13,941 | 17,205 | 15,880 | 2,746 | 2,746 | 63,142 | 59,340 |
| Effect of rent-free periods and other lease incentives |
310 | 947 | 310 | 972 | 722 | 1,361 | 86 | 264 | 1,428 | 3,544 |
| Topped-up annualised net rental income (C) |
28,144 | 27,719 | 15,279 | 14,913 | 17,927 | 17,241 | 3,221 | 3,010 | 64,570 | 62,884 |
| (i) EPRA Net Initial Yield (A/B) | 4.2% | 3.9% | 3.4% | 3.2% | 5.2% | 4.8% | 3.7% | 3.2% | 4.2% | 3.9% |
| (ii) EPRA Topped-up Net Initial Yield (C/B) |
4.2% | 4.1% | 3.5% | 3.4% | 5.5% | 5.2% | 3.8% | 3.6% | 4.3% | 4.1% |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
| (€ thousand) | 31 December 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 | 30,581 | 26,839 | 102,546 | 32,271 | 596 | 31,282 | 1.9% |
| France | 14,782 | 13,605 | 21,340 | 15,628 | 352 | 17,700 | 2.0% |
| Belgium | 17,921 | 16,439 | 76,823 | 18,616 | 108 | 17,175 | 0.6% |
| Spain | 3,093 | 2,809 | 2,990 | 3,330 | - | 3,284 | 0.0% |
| Total property | 66,377 | 59,692 | 203,699 | 69,846 | 1,056 | 69,441 | 1.5% |
| Estimated | |||||||
|---|---|---|---|---|---|---|---|
| Gross rental income |
Net rental income |
Lettable floor area (m2) |
Annualised gross rental income |
rental value (ERV) of vacant properties |
Estimated rental value (ERV) |
EPRA Vacancy Rate |
|
| Netherlands | 28,745 | 24,893 | 103,639 | 31,032 | 921 | 32,154 | 2.9% |
| France | 13,482 | 12,862 | 21,340 | 14,480 | 454 | 17,435 | 2.6% |
| Belgium | 17,232 | 16,228 | 76,823 | 17,200 | 135 | 17,071 | 0.8% |
| Spain | 2,757 | 2,640 | 2,990 | 2,945 | - | 3,188 | 0.0% |
| Total property | 62,216 | 56,623 | 204,792 | 65,658 | 1,510 | 69,848 | 2.2% |
As at year-end 2022, the EPRA vacancy rate was 1.5%, 0.7% lowered compared to 2021. The lower vacancy was mainly attributable to lower (financial) vacancy in the Netherlands and Belgium.
| 5. EPRA COST RATIOS (€ thousand) |
2022 | 2021 |
|---|---|---|
| General expenses | 6,889 | 6,707 |
| Operating expenses | 7,033 | 5,942 |
| Net service charge expenses | 61 | 142 |
| EPRA costs (including vacancy costs) (A) | 13,983 | 12,791 |
| Vacancy costs | (236) | (302) |
| EPRA costs (excluding vacancy costs) (B) | 13,747 | 12,489 |
| Gross rental income (C) 1 | 66,786 | 62,706 |
| (i) EPRA Cost Ratio (including vacancy costs) (A/C) | 20.9% | 20.4% |
| (ii) EPRA Cost Ratio (excluding vacancy costs) (B/C) | 20.6% | 19.9% |
1) Including other income of € 409 (2021: € 490).
In 2022, no operating expenses were capitalised (2021: nil). Vastned capitalises the operating expenses directly attributable to property under renovation during the period that the property under renovation is not available for letting. General expenses (overheads) are not capitalised.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| (€ thousand) | 2022 | 2021 |
|---|---|---|
| Acquisitions 1) | 1,947 | - |
| Development | - | - |
| Like-for-like-portfolio 2) | 2,669 | 3,026 |
| Other | - | - |
| Total 3) | 4,616 | 3,026 |
1) This amount concerns the acquisition of property in The Netherlands
2) Concerns improvements to several assets already held in various countries
3) Vastned has no interests in joint ventures.
(€ thousand)
| LTV under IFRS as reported without EPRA adjustments |
Adjustments to arrive at EPRA Group LTV |
Group EPRA LTV before share of JV's, material associates and NCI adjustment |
Non-Controlling Interests (NCI) |
EPRA LTV | |
|---|---|---|---|---|---|
| Equity | 795,951 | - | 795,951 | (80,072) | 715,879 |
| Net debt Include: | |||||
| Borrowings from Financial Institutions | 613,643 | - | 613,643 | (27,750) | 585,893 |
| Net payables | - | 14,223 | 14,223 | (725) | 13,498 |
| Owner-occupied property (debt) | 523 | - | 523 | (53) | 470 |
| Other lease liabilities 4) | 2,946 | (2,946) | - | - | - |
| Exclude: | |||||
| Cash and cash equivalents | - | (723) | (723) | 56 | (667) |
| Net debt (A) | 617,112 | 10,554 | 627,666 | (28,472) | 599,194 |
| Investment property portfolio and other eligible assets: |
|||||
| Owner-occupied property | - | 531 | 531 | (68) | 463 |
| Investment properties at fair value | 1,420,406 | - | 1,420,406 | (107,837) | 1,312,569 |
| Ground lease 4) | 2,509 | (2,509) | - | ||
| Intangibles | - | 318 | 318 | (32) | 286 |
| Total property portfolio and other eligible assets (B) |
1,422,915 | (1,660) | 1,421,255 | (107,937) | 1,313,318 |
| Group LTV (A/B) | 43.4% | 44.2% | 45.6% |
4) Line added to EPRA template in order to present Vastned's LTV under IFRS calculation (factually the calculation as agreed with the lenders)
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
| (€ thousand) | ||
|---|---|---|
| 2022 | 2021 | |
| Net income from property Gross rental income |
66,377 | 62,216 |
| Other income | 409 | 490 |
| Net service charge expenses | (61) | (142) |
| Operating expenses | (7,033) | (5,942) |
| Net rental income | 59,692 | 56,622 |
| Value movements in property in operation | (19,457) | (26,531) |
| Total value movements in property | (19,457) | (26,531) |
| Net result on divestments of property | 635 | 234 |
| Total net income from property | 40,870 | 30,325 |
| Expenditure | ||
| Financial income | 13 | 36 |
| Financial expenses | (12,018) | (11,906) |
| Value movements in financial derivatives | 16,319 | 3,584 |
| Net financing costs | 4,314 | (8,286) |
| General expenses | (6,890) | (6,707) |
| Abortive purchase costs | (719) | - |
| Total expenditure | (3,295) | (14,993) |
| Result before taxes | 37,575 | 15,332 |
| Current income tax expense | (855) | (633) |
| Movement in deferred tax assets and liabilities | (375) | 1,128 |
| Total income tax | (1,230) | 495 |
| Result after taxes | 36,345 | 15,827 |
| Result attributable to Vastned Retail shareholders | 31,345 | 14,405 |
| Result attributable to non-controlling interests | 5,000 | 1,422 |
| 36,345 | 15,827 | |
| Per share (€) | ||
| Result | 1.83 | 0.84 |
| Diluted result | 1.83 | 0.84 |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
Tel: +31 20 24 24 300
(€ thousand)
| 2022 | 2021 | |
|---|---|---|
| Result after taxes | 36,345 | 15,827 |
| Items not reclassified to the profit and loss account | ||
| Remeasurement of defined benefit pension obligations | 2,163 | 237 |
| Other comprehensive income after tax | 2,163 | 237 |
| Comprehensive income | 38,508 | 16,064 |
| Attributable to: | ||
| Vastned Retail shareholders | 33,508 | 14,642 |
| Non-controlling interests | 5,000 | 1,422 |
| 38,508 | 16,064 |
| (€ thousand) | ||
|---|---|---|
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Assets | ||
| Property in operation | 1,419,335 | 1,435,783 |
| Accrued assets in respect of lease incentives | 3,580 | 4,857 |
| Total property | 1,422,915 | 1,440,640 |
| Intangible fixed assets | 318 | 374 |
| Tangible fixed assets | 759 | 867 |
| Rights-of-use assets | 531 | 675 |
| Financial derivatives | 14,979 | 27 |
| Total fixed assets | 1,439,502 | 1,442,583 |
| Financial derivatives | 154 | - |
| Debtors and other receivables | 12,730 | 11,087 |
| Cash and cash equivalents | 723 | 772 |
| Total current assets | 13,607 | 11,859 |
| Total assets | 1,453,109 | 1,454,442 |
| Equity and liabilities | ||
| Capital paid-up and called | 95,183 | 95,183 |
| Share premium reserve | 468,555 | 468,555 |
| Other reserves | 120,796 | 134,929 |
| Result attributable to Vastned Retail shareholders | 31,345 | 14,405 |
| Equity Vastned Retail shareholders | 715,879 | 713,072 |
| Equity non-controlling interests | 80,072 | 78,927 |
| Total equity | 795,951 | 791,999 |
| Deferred tax liabilities | 9,449 | 9,074 |
| Provisions in respect of employee benefits | 3,644 | 6,052 |
| Long-term interest-bearing loans | 585,362 | 612,952 |
| Long-term lease liabilities | 3,213 | 3,393 |
| Financial derivatives | - | 1,212 |
| Guarantee deposits and other long-term liabilities | 4,541 | 3,912 |
| Total long-term liabilities | 606,209 | 636,595 |
| Payable to banks | 3,344 | 3,320 |
| Redemption long-term loans | 24,937 | - |
| Short-term lease liabilities | 278 | 263 |
| Income tax payable | 35 | 834 |
| Other liabilities and accruals | 22,355 | 21,431 |
| Total short-term liabilities | 50,949 | 25,848 |
| Total equity and liabilities | 1,453,109 | 1,454,442 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
(€ 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 | - | - | - | 14,405 | 14,405 | 1,422 | 15,827 |
| Other comprehensive income | - | - | 237 | - | 237 | - | 237 |
| Comprehensive income | - | - | 237 | 14,405 | 14,642 | 1,422 | 16,064 |
| Final dividend for previous financial year in cash | - | - | - | (29,674) | (29,674) | (3,593) | (33,267) |
| Interim dividend 2021 in cash | - | - | (9,091) | - | (9,091) | - | (9,091) |
| Contribution from profit appropriation | - | - | (71,014) | 71,014 | - | - | - |
| Balance as at 31 December2021 | 95,183 | 468,555 | 134,929 | 14,405 | 713,072 | 78,927 | 791,999 |
| Result | - | - | - | 31,345 | 31,345 | 5,000 | 36,345 |
| Other comprehensive income | - | - | 2,163 | - | 2,163 | - | 2,163 |
| Comprehensive income | - | - | 2,163 | 31,345 | 33,508 | 5,000 | 38,508 |
| Final dividend for previous financial year in cash | - | - | - | (20,582) | (20,582) | (3,855) | (24,437) |
| Interim dividend 2022 in cash | - | - | (10,119) | - | (10,119) | - | (10,119) |
| Contribution from profit appropriation | - | - | (6,177) | 6,177 | - | - | - |
| Balance as at 31 December 2022 | 95,183 | 468,555 | 120,796 | 31,345 | 715,879 | 80,072 | 795,951 |
Vastned Retail N.V. Mercuriusplein 11 2132 HA Hoofddorp PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
| (€ thousand) | 2022 | 2021 |
|---|---|---|
| Cash flow from operating activities | ||
| Result after taxes | 36,345 | 15,827 |
| Adjustments for: | ||
| Value movements in property | 19,457 | 26,531 |
| Net result on divestments of property | (635) | (234) |
| Net financing costs | (4,314) | 8,286 |
| Income tax | 1,230 | (495) |
| Cash flow from operating activities before changes in | 52,083 | 49,915 |
| working capital and provisions | ||
| Movement in current assets | 116 | 6,114 |
| Movement in short-term liabilities | 547 | 678 |
| Movement in provisions | (308) | (187) |
| 52,438 | 56,520 | |
| Interest received | 13 | 36 |
| Interest paid | (11,459) | (11,589) |
| Income tax paid | (1,656) | (683) |
| Cash flow from operating activities | 39,336 | 44,284 |
| Cash flow from investing activities | ||
| Property acquisition | (1,947) | - |
| Capital expenditure on property | (3,028) | (2,464) |
| Divestments of property | 2,280 | 17,905 |
| Cash flow from property | (2,695) | 15,441 |
| Movement in other fixed assets | 166 | 136 |
| Cash flow from investing activities | (2,529) | 15,577 |
| Cash flow from financing activities | ||
| Dividend paid | (30,700) | (38,765) |
| Dividend paid to non-controlling interests | (3,855) | (3,593) |
| Interest-bearing loans draw down | 62 | - |
| Redemption interest-bearing debt and lease liabilities | (2,992) | (17,576) |
| Movement in guarantee deposits and other long-term liabilities | 629 | (31) |
| Cash flow from financing activities | (36,856) | (59,965) |
| Net increase/(decrease) in cash and cash equivalents | (49) | (104) |
| Cash and cash equivalents as at 1 January | 772 | 876 |
| Cash and cash equivalents as at end of period | 723 | 772 |
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 properties are 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 financial statements of Vastned comprise the Company and its subsidiaries (jointly referred to as 'the Group').
The accounting policies used in this press release comply with the International Financial Reporting Standards (IFRS) as endorsed by the European Union.
The financial statements are presented in euros; amounts are rounded off to thousands of euros, unless stated differently. Property and financial derivatives are valued at fair value. The other items in the financial statements are valued at historical or amortised cost.
In the presentation of the annual accounts the Executive Board has made judgements concerning estimates and assumptions which impact the figures included in the financial statements. The estimates and underlying assumptions concerning the future are based on historical experience and other relevant factors, given the circumstances on the balance sheet date. The actual results may deviate from these estimates. The estimates and underlying assumptions are evaluated regularly. Any adjustments are recognised in the period in which the estimate was reviewed, or if the estimate also impacts future periods, also in these future periods.
During 2022, none of the members of the Supervisory Board and Executive Board of Vastned Retail had a personal interest in the investments made by Vastned Retail. To Vastned Retail's best knowledge, no property transactions were effected during the period under review involving persons or institutions that could be regarded as parties with direct interests in Vastned Retail.
All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2021 and the Semi-Annual Report 2022.
The financial statements have not yet been published in accordance with the statutory provisions and have not yet been adopted. The General Meeting of Shareholders at which the financial statements will be adopted is scheduled for 20 April 2023.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
25 VASTNED RETAIL N.V. ANNUAL RESULTS 2022 PRESS RELEASE
The segmented information is only presented based on the countries where the properties are located.
| Netherlands France Belgium |
Spain | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| Net rental income | 26,839 | 24,893 | 13,605 | 12,861 | 16,439 | 16,228 | 2,809 | 2,640 | 59,692 | 56,622 |
| Value movements in property in operation | (13,981) | (17,769) | (3,040) | 2,802 | (2,560) | (10,312) | 124 | (1,252) | (19,457) | (26,531) |
| Net result on divestments of property | 573 | 361 | 102 | 92 | - | 362 | (40) | (582) | 635 | 234 |
| Total net income from property | 13,431 | 7,485 | 10,667 | 15,755 | 13,879 | 6,278 | 2,893 | 806 | 40,870 | 30,325 |
| Net financing costs | 4,314 | (8,286) | ||||||||
| General expenses | (6,890) | (6,707) | ||||||||
| Abortive purchase costs | (719) | - | ||||||||
| Income tax | (1,230) | 495 | ||||||||
| Result after taxes | 36,345 | 15,826 |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
| (€ thousand) | Netherlands | France | Belgium | Spain | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| Balance as at 1 January | 619,732 | 639,268 | 409,125 | 405,895 | 322,384 | 337,937 | 81,903 | 83,150 | 1,433,144 | 1,466,250 |
| Acquisitions | 1,947 | - | - | - | - | - | - | - | 1,947 | - |
| Capital expenditure | 2,091 | 2,394 | 533 | 506 | 45 | 117 | - | 5 | 2,669 | 3,022 |
| Transferred to Assets held for sale | - | (1,300) | - | - | - | (2,185) | - | - | - | (3,485) |
| Divestments | (1,645) | (2,861) | - | (78) | - | (3,664) | - | - | (1,645) | (6,603) |
| Value movements | (13,980) | (17,769) | (3,040) | 2,802 | (2,393) | (9,821) | 124 | (1,252) | (19,289) | (26,040) |
| Balance as at 31 December | 608,145 | 619,732 | 406,618 | 409,125 | 320,036 | 322,384 | 82,027 | 81,903 | 1,416,826 | 1,433,144 |
| Accrued assets in respect of lease incentives |
2,320 | 2,847 | 426 | 989 | 717 | 810 | 117 | 211 | 3,580 | 4,857 |
| Appraisal value as at 31 December | 610,465 | 622,579 | 407,044 | 410,114 | 320,753 | 323,194 | 82,144 | 82,114 | 1,420,406 | 1,438,001 |
| Ground lease | 2,400 | 2,400 | - | - | 109 | 239 | - | - | 2,509 | 2,639 |
| Total property in operation | 612,865 | 624,979 | 407,044 | 410,114 | 320,862 | 323,433 | 82,144 | 82,114 | 1,422,915 | 1,440,640 |
Vastned Retail N.V. Mercuriusplein 11
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300
The table below shows the impact of COVID-19 on the gross rental income during 2022:
| 2022 | 2021 | |
|---|---|---|
| Gross rental income before concessions | 67,306 | 65,856 |
| COVID-19 waivers 1 | (537) | (3,064) |
| Other rent concessions 2 | (392) | (576) |
| Gross rental income after concessions | 66,377 | 62,216 |
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.
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.
| 31 December 2022 | 31 December 2021 | |||||
|---|---|---|---|---|---|---|
| Level | 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 1,422,915 | 1,422,915 | 1,440,640 | 1,440,640 | ||
| Financial derivatives | 2 | 15,133 | 15,133 | - | - | |
| Liabilities valued at fair value | ||||||
| Long-term liabilities | ||||||
| Long term interest-bearing loans | 2 | 585,362 | 589,385 | 612,952 | 619,228 | |
| Lease liabilities | 2 | 3,213 | 2,614 | 3,393 | 4,993 | |
| Financial derivatives | 2 | - | - | 1,212 | 1,212 |
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Debtors and pre-invoiced amounts | 11,675 | 10,831 |
| Provision for expected credit losses | (1,937) | (1,899) |
| Net total | 9,738 | 8,932 |
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:
| 31 December 2022 | 31 December 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 |
3,228 | (1,601) | 1,627 | 1,345 | (947) | 398 | ||
| Accounts receivable related to COVID-19 |
552 | (336) | 216 | 1,855 | (822) | 1,033 | ||
| Accounts receivable for which the debtor has been granted a deferred payment due to COVID-19 |
215 | - | 215 | 462 | (130) | 332 | ||
| Pre-invoiced rent | 7,654 | - | 7,654 | 7,152 | - | 7,152 | ||
| Other receivables | 26 | - | 26 | 17 | - | 17 | ||
| Total | 11,675 | (1,937) | 9,738 | 10,831 | (1,899) | 8,932 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Long-term liabilities | ||
| Unsecured loans | 585,362 | 612,952 |
| Lease liabilities | 3,213 | 3,393 |
| 588,575 | 616,345 | |
| Short-term liabilities | ||
| Payable to banks | 3,344 | 3,320 |
| Redemption long-term interest bearing loans | 24,937 | - |
| Lease liabilities | 278 | 263 |
| 28,559 | 3,583 | |
| Total | 617,134 | 619,928 |
| Van Herk Investments B.V. | 24.98% |
|---|---|
| Lebaras Belgium BVBA | 5.10% |
| BlackRock, Inc. | 4.88% |
| Tikehau Capital Advisors SAS | 3.05% |
| ICAMAP Real Estate Securities Fund S.A. | 3.01% |
1) As at 31 December 2022, based on the the AFM register.
2132 HA Hoofddorp
PO BOX 22276 1100 CG Amsterdam Tel: +31 20 24 24 300 [email protected] www.vastned.com
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