AI assistant
Wereldhave N.V. — Management Reports 2013
Feb 11, 2013
3898_iss_2013-02-11_bfa86a88-376a-4fb1-ad57-abb5d67b958d.pdf
Management Reports
Open in viewerOpens in your device viewer
Strategy update Exit from UK Results 2012
February 11, 2013
Strategy update
In response to the changing environment for consumer-, retail-, real estate- and finance-markets Wereldhave decided to focus on shopping centres in North-West Europe and sustainable offices in Paris. In line with the retail structures in the core countries Belgium, Netherlands and Finland Wereldhave focuses on shopping centers that are top-of-mind in catchment areas of at least 100,000 inhabitants within 10 minutes travel time. Wereldhave's shopping centres offer consumers 'convenient shopping': 90% of shopping needs, strong (inter) national tenants, fully embedded food and beverage functions and easy accessibility. In addition, Wereldhave will remain active in the Paris office market with a focus on sustainable offices.
Wereldhave implements its strategy in three phases: Derisk, Regroup and Growth
I. DERISK (mid 2012 until mid-2013)
During the second half of 2012, Wereldhave focused on the sale of the US, the action plan for the UK, overhead reduction and the strategy update. The first phase will be completed by mid 2013. After completing this phase Wereldhave has a focused portfolio, a strong balance sheet and low general costs.
II. REGROUP (mid 2013-2015)
The second phase is aimed at strengthening and expanding Wereldhave's position in the four core markets through: operational excellence, controlled development pipeline, value maximisation of the shopping centre Itis, reinvesting in core markets and alignment with all stakeholders. Wereldhave's activities in Spain are 'on hold'.
III. GROWTH (from mid 2015)
After completion of phase II, expected mid-2015, Wereldhave will present a strategy plan for growth
II. REGROUP (mid 2013-2015)
Wereldhave will fully focus on achieving its targets in the following key elements:
| Key elements | Targets |
|---|---|
| 1. Operational excellence |
Average retail LFL growth of 125bps above indexation |
| ≥98% occupancy |
|
| Overhead reduction to ≤€14m |
|
| Strengthen talent development |
|
| Standardise best practices between core countries |
|
| 2. Controlled development |
Retail €330m and offices €110m |
| pipeline | Expected average yield on cost of 6.5% |
| From 2015 ≤10% investment portfolio |
|
| 3. Maximise value Itis |
Redevelopment completed mid 2014 within budget (€95m) |
| Rent level 2015 €33m, yield on cost of 7% |
|
| 4. Reinvest in core markets |
Acquisitions of €400m |
| Disposals of €150m |
|
| 5. Alignment with all stake |
Expand and strengthen Supervisory Board |
| holders | Evaluate anti-takeover structure |
| Integrate sustainability in overall strategy |
After phase II Wereldhave will be an operationally and financially strong player with a clear profile, ready for further growth.
Financing and dividend policy
Wereldhave aims to further expand its diversified funding base while maintaining a loan to value (LTV) of 30-40%. For 2012 Wereldhave proposes a dividend of € 3.30 per share. Wereldhave expects to maintain the dividend for 2013 at € 3.30 per share, also if this would imply an uncovered dividend. After 2013 Wereldhave will apply a dividend pay-out ratio of 85% of the direct result.
Transparency and Governance
Wereldhave changes its management structure to a Board of Management with a CEO and CFO. The Board of Management will consist of the CEO Dirk Anbeek and a CFO yet to be appointed by the Annual General Meeting (AGM). The Board of Management will be supported by a management team including Hans Vermeeren (Netherlands and group retail operations) and Richard Beentjes (legal, transactions, communications) completed by the country directors: Luc Plasman (Belgium and group developments), Michel Janet (Paris and Spain) and Jaako Ristola (Finland).
The nomination of a fifth member to the Supervisory Board will be proposed at the AGM, to increase the real estate expertise of the Supervisory Board. After the expansion of the Supervisory Board, a remuneration and appointment committee will be installed.
Exit from UK
On 8 February 2013, after a sales process of four months, Wereldhave has reached agreement on the sale of nearly the entire UK portfolio. Total result on disposals are £ 243m, approximately 4% below the book value as at 30 September 2012 of £ 254m. The net exit yield amounts to 6.5% before and 5.75% after deduction of the general costs for the UK organisation. The transaction will be completed during the first quarter.
After these disposals, Wereldhave's UK portfolio consists of a plot of land and a development project in Richmond with retail and office space. These assets represent a book value of £ 23m. After completion of the development, a sales process will be initiated.
Wereldhave's UK office will be closed in 2013. The cost of closing the UK office is estimated at £ 1.5m with a payback period of less than one year.
Results 2012
MEASURES OF SECOND HALF 2012
- US disposals: to be completed in Q1 2013
- UK action plan: nearly the entire portfolio sold, to be completed in H1 2013
- Closing of US and UK offices: to be completed in 2013
- General costs: accelerated reduction to € 16m in 2013 and ≤ € 14m in 2014
OPERATIONS
- Direct result above expectations as a result of recovery measures in US and UK
- Occupancy rate slightly improved: 89.2% (Q3: 88.5%)
- LFL stable at 0.0%; core portfolio +3.1%
- US portfolio sold in Q1 2013 for \$ 720m, 5% above book value
- UK portfolio sold in Q1 2013 for £ 243m, 4% below book value
- Disposals in 2012 for € 332.3m, 2.4% above book value
RESULTS FY 2012
- Direct result per share 2012: € 3.91 (2011: € 4.93)
- Indirect result per share 2012: € -8.45 (2011: € -2.55)
- Total result per share 2012: € -4.54 (2011: € 2.38)
- LTV ratio decreased in Q4 from 47% to 44%
- After completion of the UK and US disposals, the LTV will decrease to <20%
DIVIDEND
• Dividend 2012: € 3,30 per share
OPERATIONS
- Direct result above expectations as a result of recovery measures in US and UK
- Occupancy rate slightly improved: 89.2% (Q3: 88.5%)
- LFL stable at 0.0%; core portfolio +3.1%
- US portfolio sold in Q1 2013 for \$ 720m, 5% above book value
- UK portfolio sold in Q1 2013 for £ 243m, 4% below book value
- Disposals in 2012 for € 332.3m, 2.4% above book value
LFL rental income 2012
| In % | Core portfolio | Other | Total |
|---|---|---|---|
| Finland | 5.3 | n.a. | 5.3 |
| Netherlands | 3.7 | 0.0 | 3.0 |
| Belgium | 4.9 | 3.8 | 4.5 |
| Paris | 2.3 | n.a. | 2.3 |
| Spain | (3.8) | (12.8) | (7.5) |
| Subtotal | 3.9 | (0.3) | 3.2 |
| UK | (7.5) | 4.4 | (3.9) |
| US | n.a. | (11.8) | (11.8) |
| Subtotal | (7.5) | (10.2) | (9.7) |
| Total | 3.1 | (6.4) | 0.0 |
The operational figures include the US operations, to facilitate comparability with previous quarters. In the financial reports, the US activities are accounted for as discontinued operations, in line with IFRS requirements.
The LFL rental income in the core portfolio increased by 3.1% in 2012 (Q3 2012: 3.0%). Total LFL rental growth for the full year 2012 (including the US) amounted to 0.0% (end of Q3 2012: 0.0%).
LFL rental growth in Finland remained stable at 5.3%. The increase in rental income is the result of the centre's revitalisation and expansion. Construction is on schedule.
LFL rental growth in the Dutch shopping centres fell in Q4 from 4.0% per Q3 to 3.7% for 2012. Dutch retail is facing strong economic headwind. For the year 2013, therefore, LFL rental growth is likely to be equal to the indexation.
In Belgium, LFL rental growth in the shopping portfolio grew strongly in Q4. Where LFL rental growth was still at 4.4% up to and including Q3, rental growth amounted to 4.9% for the entire year 2012. This increase can be attributed to the renewal of approx. 50% of the leases in the Belle-Ile shopping centre in Liège, at around 13% higher rents on average, effective 1 December 2012. The positive impact of these rent increases will become even more strongly visible in the first quarters of 2013. LFL rental growth in the Belgian offices portfolio rose from 3.1% for the first 9 months to 3.8% for 2012 as a whole, particularly thanks to good letting results.
In France, LFL rental growth grew in Q4 from 1.7% per Q3 to 2.3% for the full year 2012. The lease of 400 m² of office space in Saint Denis, Paris, contributed to this growth. The occupancy rate in the Paris portfolio continues to be high at 99.0%.
In Spain, LFL rental growth of the core portfolio decreased further in Q4. The decline in rents is the result of the renewal of leases in the second and third quarter. The impact will continue to affect LFL rental growth for some time. The letting of the Planetocio shopping centre remains weak.
In the UK, net rental income of the Dolphin shopping centre in Poole improved in Q4. This can be attributed to the measures taken in the second half of the year to reduce service and operating costs.
LFL rental growth in the US was 11.8% negative. This is mainly attributable to the renewal of a lease of a large tenant in the Broadway 655 office building in San Diego. The occupancy rate of the apartments in Eilan (San Antonio) was 66% at year-end and 70% at the end of January 2013. The full year impact of Eilan was € -6m. The ongoing lease discussions which were already reported with the third quarter results, led to the lease of 10,000 m² of total office space.
| Occupancy rate Q4-Q3 2012 | |||
|---|---|---|---|
| --------------------------- | -- | -- | -- |
| Core portfolio | Other | Total | ||||
|---|---|---|---|---|---|---|
| In % | Q4 | Q3 | Q4 | Q3 | Q4 | Q3 |
| Finland | 98.5 | 98.1 | n.a. | n.a. | 98.5 | 98.1 |
| Netherlands | 97.1 | 96.8 | 88.0 | 89.2 | 96.1 | 95.8 |
| Belgium | 98.7 | 99.3 | 81.3 | 83.6 | 93.7 | 94.7 |
| Paris | 99.0 | 99.0 | n.a. | n.a. | 99.0 | 99.0 |
| Spain | 87.5 | 88.3 | 67.4 | 68.8 | 77.7 | 79.0 |
| Subtotal | 97.7 | 97.5 | 79.9 | 81.7 | 94.8 | 94.8 |
| UK | 97.4 | 96.2 | 92.2 | 97.1 | 96.9 | 96.3 |
| US | n.a. | n.a. | 74.5 | 74.6 | 74.5 | 74.6 |
| Subtotal | 97.4 | 96.2 | 75.3 | 75.8 | 81.3 | 80.8 |
| Total | 97.6 | 97.3 | 76.3 | 77.1 | 89.2 | 88.5 |
The EPRA occupancy rate stood at 89.2% as at 31 December 2012 (Q3: 88.5%). In Finland, the Netherlands and the UK (improved occupancy of the shopping centre in Poole), the occupancy rate rose in Q4. In Belgium (due to the relocation of tenants in Belle-Ile) and in Spain (due to contract expiry), the occupancy rate fell slightly in the last quarter.
Broken down by sector, the EPRA occupancy rate at 31 December 2012 (30 September 2012) amounted to: retail 95.9% (95.3%), offices 80.9% (82.3%) and other 79.8% (76.3%).
During the fourth quarter of 2012, Wereldhave sold properties for a consideration of € 155.9m. The disposal of the Orion office building in Belgium and the Dean Street office building in the UK were already announced earlier, as well as the disposal in the US of the DiamondView Tower office building and two plots of land in Texas and Virginia. Shortly after, agreement was reached in Spain on the sale of the office building at the Plaza de la Lealtad for a net amount of € 15.2m, € 1m above book value.
Property sales in 2012 totaled € 332.3m, generating a result on disposals of € 7.9m, which is 2.4% above book value.
On 4 January 2013 Wereldhave reached agreement on the sale of the entire US portfolio for \$ 720m, representing a result on disposal of 5% above book value (after the release of a provision for deferred taxes and after deduction of all costs of the termination of operations in the US).
On 8 February 2013 Wereldhave reached agreement on the sale of nearly the entire UK portfolio at £ 243m, 4% below the £ 254m book value as at 30 September 2012. The net exit yield amounts 6.5% before and 5.75% after deduction of the general costs for the UK organization. Completion of the sale takes place in the first quarter.
| In € m | Market | Total investment |
Capex so far |
Expected net yield |
Estimated completion |
|
|---|---|---|---|---|---|---|
| Richmond | UK | 28 | 25 | * | 6.25 – 6.75% | Q1 2013 |
| Ghent | Belgium | 15 | 4 | 6.25 – 6.75% | Q4 2013 | |
| Joinville-le-Pont | Paris | 71 | 58 | 7.5 – 8.0% | Q4 2013 | |
| Itis (renovatie & uitbreiding) | Finland | 95 | 37 | 7.0% | Q2 2014 | |
| Issy-les-Moulineaux (Noda) | Paris | 138 | 59 | 7.0 – 7.5% | Q4 2014 | |
| Genk (renovatie & uitbreiding) |
Belgium | 84 | 34 | * | 6.5 – 7.0% | Q4 2014 |
| Total committed | 431 | 217 |
Development pipeline
* Including value current investments
The mixed retail and offices project in Richmond is nearing completion and was delayed because the connection to the utilities took longer than scheduled.
The student homes in the Ghent project have been leased to a student housing organization. About half of the retail space on the ground floor has been leased to a Quick restaurant and a fitness centre.
The renovation (11,400 m²) and expansion (11,800 m²) of Genk Shopping 1 started in September 2012. The preletting is underway and discussions are being held with various existing and new tenants. The project costs are within budget and the work is proceeding on schedule.
In France, the construction of the office building in Issy-Les-Moulineaux is in full swing, as well as the construction of the office building in Joinville-le-Pont. The works are on schedule and within budget. Wereldhave has sold the office building in Joinville-le-Pont. After completion, the office building will be acquired by a French bank at the end of 2013 for € 91m, more than 25% above cost.
The redevelopment of the Itis shopping centre in Finland is on schedule. The scope of the project has increased, because a vacated retail unit in the cellar and a cinema will also be redeveloped and specialty leasing and kiosks will be added to the centre's public areas. As a result, total renovation costs have risen to € 95m, while the yield on cost will be 7%.
The redevelopment of Itis consists of the following subprojects:
- Passaasi
- Bulevardi
- Piazza
The renovation of the Passaasi is completed. The work in the Bulevardi area is ongoing and will be completed by the end of 2013. The Piazza area will be thoroughly renovated for the new Stockmann branch. The retail area of approx. 12,000 m² to be vacated by Stockmann will be renovated in 2014. With regard to this area, Wereldhave is in talks with international retailers that are looking to open their first branch in Finland. Almost all other units of the shopping centre have been leased for rents that are equal to or exceed the budgeted pro-forma rents.
RESULTS
| | Direct result per share 2012: | € 3.91 | (2011: € 4.93) |
|---|---|---|---|
| | Indirect result per share 2012: | € -8.45 | (2011: € -2.55) |
| | Total result per share 2012: | € -4.54 | (2011: € 2.38) |
- LTV ratio decreased in Q4 from 47% to 44%
- After completion of the UK and US disposals, the LTV will decrease to <20%
Total result
The total result (including US) for 2012 declined from € 63m to € -87.1m, of which € -19.5m was due to a lower direct result and € -130.6m to a lower indirect result. The total earnings per share amount to € -4.54 (2011: € 2.38).
Direct result
| In € m | 2012 | 2011 | Change | Change in % |
|---|---|---|---|---|
| Net rental income | 130.8 | 128.7 | 2.1 | 1.6% |
| General costs | (21.0) | (14.0) | (7.0) | 50.0% |
| Other income and expenses | 1.6 | 1.8 | (0.2) | (11.1)% |
| Net interest expenses | (25.9) | (26.0) | 0.1 | (0.4)% |
| Taxes on result | (0.6) | (1.2) | 0.6 | (50.0)% |
| Result from continuing operations | 84.9 | 89.3 | (4.4) | (4.9)% |
| Result from discontinued operations | 8.9 | 24.0 | (15.1) | (62.9)% |
| Total | 93.8 | 113.3 | (19.5) | (17.2)% |
The direct result including discontinued operations amounted to € 93.8m, down 17.2% from 2011. This decline was mainly driven by lower net rental income in the US (partly due to disposals during the year) and higher general costs.
In the fourth quarter, the direct result including the US amounted to € 21.1m (Q3 2012: € 23.7m). The direct result in the fourth quarter was negatively impacted by disposals and restructuring costs of € 1.9m.
The direct result excluding the US fell in 2012 by € 4.4m (4.9%) to € 84.9m. Net rental income increased by € 2.1m (1.6%). This increase can be attributed to the expansion of the shopping centre in Nivelles and the acquisitions in Genk (Belgium) in 2012, while the Ealing Broadway shopping centre (UK), acquired at the end of 2011, generated a full year of rental income. The work on the Itis shopping centre adversely affected net rental income, as retail units under refurbishment did not generate rental income. Disposals in the Netherlands, France and the UK led to a decline in rental income.
General costs (including the US) amounted to € 22.7m for the full year 2012. This amount includes one-off restructuring costs of € 1.9m. The programme to reduce overhead was initiated in the fourth quarter at the head office and in the country organizations. General costs will be reduced from € 20.8m in 2012 (excluding restructuring costs) to € 16m in 2013 and € 14m in 2014.
Interest charges excluding the US remained unchanged compared to 2011. In the US interest charges increased, mainly because the interest on the Eilan project was no longer being capitalised after the building was transferred to the investment portfolio. The average nominal interest rate stood at 2.7% at the end of the fourth quarter (December 2011: 3.0%).
| In € m | 2012 | 2011 | Change |
|---|---|---|---|
| Valuation result | (78.6) | 17.5 | (96.1) |
| Result on disposal | 8.9 | (0.7) | 9.6 |
| Taxes | 26.1 | 13.2 | 12.9 |
| Other | (6.3) | (8.1) | 1.8 |
| Result from continuing operations | (49.9) | 21.9 | (71.8) |
| Result from discontinued operations | (131.0) | (72.2) | (58.8) |
| Total | (180.9) | (50.3) | (130.6) |
Indirect result
The indirect result including the US remained stable in the fourth quarter. For full year 2012, indirect result came out at € -180.9m. The indirect result for 2011 amounted to € -50.3m.
Write-downs at mid 2012, on the UK shopping centres and the US portfolio, negatively impacted the indirect result. The costs of the US exit are included in the 2012 results. The cost of closing the UK office is estimated at £ 1.5m with a payback period of less than one year.
In the fourth quarter, negative revaluations were incurred in the Netherlands and Spain. The Dutch shopping centres were written down by € 15.9m as a result of the economic headwind for retailers and the increased supply of retail space. Furthermore, the two office and two logistic properties in the Netherlands were impaired by € 12m to € 44m. This negative revaluation reflects the virtual standstill in the investment market for offices and commercial property in The Netherlands. The negative revaluation in Spain is attributable to the slow progress in letting of the Planetocio shopping centre and logistics business complex Rivas (revalued by € -19m to € 36m).
The negative revaluations in the Netherlands and Spain were offset by a positive revaluation on the Joinville office development in France and the positive result on disposal in the US. Excluding the US portfolio, the cap rate of the portfolio was 6.51% at year-end 2012.
In 2012, a total of ten properties and two plots of land were sold for a total sum of € 332.3m. The result on disposal amounted to € 7.9m, 2.4% above book value.
Lower taxes on capital gains due to negative revaluations and the release of a provision for deferred taxes had a positive impact of € 24.3m on the indirect result.
Equity
At year-end 2012, equity including minority interests amounted to € 1,537m (31 December 2011: € 1,714m). The decrease of € 177m is the result of the dividend payment (€ 102m), the direct result (€ 85m), a negative indirect result (€ -183m), provisions in the amount of € -2m and an increase of the minority interest by € 25m. This increase is the result of the acquisition of the shopping centre in Genk, Belgium, in April 2012 in exchange for new shares by Wereldhave Belgium.
Net asset value per share including accrued earnings as at 31 December 2012 came to € 64.09 (31 December 2011: € 73.44). As at 31 December 2012, the LTV amounted to 44% (31 December 2011: 41%). The number of ordinary shares in issue remained unchanged at 21,679,608.
Dividend
Over 2012 a dividend of € 3.30 in cash will be proposed at the AGM. The ex-dividend date is 24 April 2013. The dividend will be payable as from 29 April 2013.
Outlook
After completing the first phase by mid 2013, Wereldhave has a focused portfolio, a strong balance sheet and low general costs. The year 2013 will be a year of transition: the termination of operations in the US and the UK will lead to a reduction of rental income while development projects will gradually start to contribute to the results after 2013. The decrease in general costs by € 6.7m (amongst others, the closing of the US and UK offices) will immediately contribute to the direct result.
The direct result for 2013 will depend on the timing of reinvestments in the core markets. The quality of reinvestments will prevail over timing.
Wereldhave does not give a forecast for the direct result for the year 2013, but expects to maintain the dividend for 2013 at € 3.30 per share, also if this would imply an uncovered dividend.
Annual General Meeting
The AGM of Wereldhave N.V. will be held at the Steigenberger Kurhaus Hotel, Gevers Deynootplein 30, Scheveningen, on Monday 22 April 2013 at 11:00 a.m. For this meeting vote- and meeting rights will be granted to those shareholders who are registered as such on 25 March 2013 after trading hours (record date) in a designated (partial) register. The notice and the agenda for the meeting will be available at www.wereldhave.com as from 11 March 2013.
Annual report 2012
The 2012 annual report, published in Dutch and English, will be available in PDF format on the Wereldhave website as from Monday 11 March 2013. As from Monday 18 March 2013, the annual report will be available as a hard copy and can be requested at [email protected].
At the end of March, Wereldhave's printed 2012 annual review will be published, containing a summary of the 2012 annual report, supplemented with interviews and background information. This annual review can also be obtained at [email protected].
Abbreviated quarterly reports
As of 2013, Wereldhave will present abbreviated quarterly reports on the results of the first and the third quarter. These reports will give a short overview of operating- and financial results. For the halfyear results and the annual results, Wereldhave will issue extensive and detailed press releases.
The quarterly results will be accompanied by an explanatory presentation that can be followed by audiocast.
The Hague, 11 February 2013 Wereldhave N.V. Board of Management
Press conference / audiocast
The results and the new strategy will be explained to the media at a press conference to be held today at 10:30 a.m. in the Amstel Room of the Hilton Hotel Amsterdam (Apollolaan 138, 1077 BG Amsterdam). The strategy and results will be explained to analysts at the analysts' meeting to be held today at 1:30 p.m., also at the Hilton Hotel. This audio webcast can be viewed live at www.wereldhave.com. Questions may also be asked by e-mail.
For more information:
| Press: | Analysts: |
|---|---|
| Richard Beentjes | Jaap-Jan Fit |
| [email protected] | [email protected] |
| T +31 70 346 93 25 | T +31 70 307 45 43 |
| www.wereldhave.com | www.wereldhave.com |
Consolidated balance sheet at December 31, 2012
| (amounts x € 1,000) | ||||
|---|---|---|---|---|
| December 31, 2012 | December 31, 2011 | |||
| Assets | ||||
| Non-current assets | ||||
| Investment properties in operation | 2,073,027 | 2,830,169 | ||
| Investment properties under | ||||
| construction | 240,044 | 227,932 | ||
| Investment properties | 2,313,071 | 3,058,101 | ||
| Property and equipment | 4,450 | 6,720 | ||
| Intangible assets | 3,993 | 6,753 | ||
| Financial assets | 47,702 | 42,375 | ||
| Deferred tax assets | 3,129 | 5,200 | ||
| Other non current assets | 17,908 | 47,291 | ||
| 77,182 | 108,339 | |||
| 2,390,253 | 3,166,440 | |||
| Current assets | ||||
| Trade and other receivables | 26,126 | 26,947 | ||
| Tax receivables | 5 | 140 | ||
| Cash and cash equivalents | 44,406 | 24,400 | ||
| 70,537 | 51,487 | |||
| Assets held for sale | 543,166 | - | ||
| 3,003,956 | 3,217,927 | |||
| Equity and Liabilities | ||||
| Equity | ||||
| Share capital | 216,796 | 216,796 | ||
| Share premium Reserves |
767,315 | 767,315 | ||
| 405,436 | 607,803 | |||
| Non-controlling interest | 1,389,547 | 1,591,914 | ||
| 147,187 | 122,060 | |||
| 1,536,734 | 1,713,974 | |||
| Long term liabilities | ||||
| Interest bearing liabilities | 1,213,778 | 1,224,088 | ||
| Deferred tax liabilities | 87,492 | 115,835 | ||
| Financial liabilities | - | 555 | ||
| Other long term liabilities | 3,721 | 1,304,991 | 4,650 | 1,345,128 |
| Short term liabilities | ||||
| Trade payables | 9,371 | 12,656 | ||
| Tax payable | 599 | 924 | ||
| Interest bearing liabilities | 75,000 | 64,965 | ||
| Other short term liabilities | 77,261 | 80,280 | ||
| 162,231 | 158,825 | |||
| 3,003,956 | 3,217,927 | |||
| Net asset value per share (x € 1 ) | 64.09 | 73.44 |
Consolidated income statement for 2012
| 2012 | 2011 | |||
|---|---|---|---|---|
| Gross rental income Service costs charged |
147,574 30,031 |
143,453 30,547 |
||
| Total revenues | 177,605 | 174,000 | ||
| Service costs paid Property expenses |
-33,494 -13,300 |
-33,555 -11,788 |
||
| -46,794 | -45,343 | |||
| Net rental income | 130,811 | 128,657 | ||
| Valuation results Results on disposals General costs |
-78,559 8,941 -21,004 |
17,478 -672 -14,013 |
||
| Other income and expense | -1,981 | 1,787 | ||
| Operational result | 38,208 | 133,237 | ||
| Interest charges Interest income |
-30,305 362 |
-30,848 464 |
||
| Net interest Other financial income and expense |
-29,943 1,197 |
-30,384 -3,717 |
||
| Result before tax | 9,462 | 99,136 | ||
| Taxes on result | 25,544 | 12,038 | ||
| Result from continuing operations | 35,006 | 111,174 | ||
| Result from discontinued operations | -122,100 | -48,189 | ||
| Result | -87,094 | 62,985 | ||
| Profit attributable to: Shareholders |
-98,439 | 51,296 | ||
| Non-controlling interest | 11,345 | 11,689 | ||
| Result | -87,094 | 62,985 | ||
| Basic and diluted earnings per share from continuing operations (x € 1) |
1.09 | 4.61 | ||
| Basic and diluted earnings per share from discontinued operations (x € 1) |
-5.63 | -2.23 | ||
| Basic and diluted earnings per share (x € 1) |
-4.54 | 2.38 |
Consolidated income statement for the fourth quarter 2012
| 4th quarter 2012 | 4th quarter 2011 | |||
|---|---|---|---|---|
| Gross rental income Service costs charged |
36,551 7,249 |
35,756 7,312 |
||
| Total revenues | 43,800 | 43,068 | ||
| Service costs paid Property expenses |
-7,593 -3,800 |
-11,393 | -7,452 -3,376 |
-10,828 |
| Net rental income | 32,407 | 32,240 | ||
| Valuation results Results on disposals General costs Other gains and losses |
-31,122 5,223 -7,325 -356 |
18,934 -3,522 -3,743 372 |
||
| Operational result | -1,173 | 44,281 | ||
| Interest charges Interest income |
-6,597 120 |
-7,508 157 |
||
| Net interest Other financial income and expense |
-6,477 -781 |
-7,351 -4,546 |
||
| Results before tax | -8,431 | 32,384 | ||
| Taxes on results | 21,110 | 16,594 | ||
| Result from continuing operations |
12,679 | 48,978 | ||
| Result from discontinued operations |
8,445 | -59,123 | ||
| Result | 21,124 | -10,145 | ||
| Profit attributable to: Shareholders Non-controlling interest |
18,671 2,453 |
-16,344 6,199 |
||
| Result | 21,124 | -10,145 | ||
| Earnings per share (x € 1) |
0.86 | -0.76 |
Direct and indirect result for 2012
| 2012 | 2011 | ||||
|---|---|---|---|---|---|
| direct result |
indirect result |
direct result |
indirect result |
||
| Gross rental income Service costs charged |
147,574 30,031 |
143,453 30,547 |
|||
| Total revenues | 177,605 | 174,000 | |||
| Service costs paid Property expenses |
-33,494 -13,300 |
-33,555 -11,788 |
|||
| -46,794 | -45,343 | ||||
| Net rental income | 130,811 | 128,657 | |||
| Valuation results Results on disposals General costs Other income and expense |
-21,004 1,578 |
-78,559 8,941 -3,559 |
-14,013 1,770 |
17,478 -672 17 |
|
| Operational result | 111,385 | -73,177 | 116,414 | 16,823 | |
| Interest charges Interest income |
-26,251 362 |
-4,054 | -26,433 464 |
-4,415 | |
| Net interest Other financial income and expense |
-25,889 | -4,054 1,197 |
-25,969 | -4,415 -3,717 |
|
| Result before tax | 85,496 | -76,034 | 90,445 | 8,691 | |
| Taxes on result | -550 | 26,094 | -1,151 | 13,189 | |
| Result from continuing operations |
84,946 | -49,940 | 89,294 | 21,880 | |
| Result from discontinued operations |
8,867 | -130,967 | 24,045 | -72,234 | |
| Result | 93,813 | -180,907 | 113,339 | -50,354 | |
| Profit attributable to: Shareholders Non-controlling interest |
84,851 8,962 |
-183,290 2,383 |
106,333 7,006 |
-55,037 4,683 |
|
| Result | 93,813 | -180,907 | 113,339 | -50,354 | |
| Earnings per share from continuing operations (x € 1) |
3.50 | -2.41 | 3.82 | 0.79 | |
| Earnings per share from discontinued operations (x € 1) |
0.41 | -6.04 | 1.11 | -3.34 | |
| Earnings per share (x € 1 ) |
3.91 | -8.45 | 4.93 | -2.55 |
Consolidated statement of comprehensive income
| (amounts x € 1,000) | 2012 | 2011 | ||
|---|---|---|---|---|
| Result from continuing operations Result from discontinued operations |
35,006 -122,100 |
111,174 -48,189 |
||
| Result | -87,094 | 62,985 | ||
| Other comprehensive income: Exchange rate differences |
356 | 13,600 | ||
| Revaluation of financial assets available for sale | -1,236 | -151 | ||
| Effective portion of change in fair value of cash flow hedges | -568 | 730 | ||
| Total of comprehensive income | -1,448 | 14,179 | ||
| Total comprehensive income | -88,542 | 77,164 | ||
| Total comprehensive income from continuing operations | 22,592 | 113,710 | ||
| Total comprehensive income from discontinued operations | -122,100 | -48,189 | ||
| Shareholders | -99,508 | 65,521 | ||
| Non-controlling interest | 10,966 | 11,643 | ||
| Total comprehensive income | -88,542 | 77,164 |
Consolidated statement of movements in equity
| Attributable to shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reserve for | |||||||||
| exchange | Total attri | Non | |||||||
| Share | Share | General | Revaluation | Hedge | rate | butable to | controlling | ||
| capital | premium | reserve | reserve | reserve | differences | shareholders | interest | Total | |
| Balance at January 1, 2011 | 214,485 - |
777,728 - |
656,639 - |
1,456 - |
- - |
-39,077 - |
1,611,231 - |
116,832 - |
1,728,063 - |
| Comprehensive income | - | - | - | - | - | - | - | - | - |
| Result 2011 | - | - | 51,296 | - | - | - | 51,296 | 11,689 | 62,985 |
| Exchange rate differences | - | - | - | - | - | 13,600 | 13,600 | - | 13,600 |
| Revaluation of financial assets | |||||||||
| available for sale Effective portion of change in fair value of cash |
- | - | - | -105 | - | - | -105 | -46 | -151 |
| flow hedges | - | - | - | - | 730 | - | 730 | - | 730 |
| Total of comprehensive income | |||||||||
| - | - | 51,296 | -105 | 730 | 13,600 | 65,521 | 11,643 | 77,164 | |
| Transactions with shareholders | |||||||||
| Equity component convertible bond | - | -8,102 | 8,102 | - | - | - | - | - | - |
| Purchase shares for remuneration | - | - | -299 | - | - | - | -299 | - | -299 |
| Stockdividend 2010 | 2,311 | -2,311 | - | - | - | - | - | - | - |
| Dividend 2010 | - | - | -84,539 | - | - | - | -84,539 | -6,415 | -90,954 |
| Balance at December 31, 2011 | 216,796 | 767,315 | 631,199 | 1,351 | 730 | -25,477 | 1,591,914 | 122,060 | 1,713,974 |
| Balance at January 1, 2012 | 216,796 | 767,315 | 631,199 | 1,351 | 730 | -25,477 | 1,591,914 | 122,060 | 1,713,974 |
| Comprehensive income | - | - | - | - | - | - | - | - | - |
| Result 2012 | - | - | -98,439 | - | - | - | -98,439 | 11,345 | -87,094 |
| Exchange rate differences | - | - | - | - | - | 356 | 356 | - | 356 |
| Revaluation of financial assets | |||||||||
| available for sale | - | - | - | -857 | - | - | -857 | -379 | -1,236 |
| Effective portion of change in fair value of cash flow hedges |
- | - | - | - | -568 | - | -568 | - | -568 |
| Total of comprehensive income | - - |
- - |
-98,439 - |
-857 - |
-568 - |
356 - |
-99,508 - |
10,966 - |
-88,542 - |
| Transactions with shareholders | |||||||||
| Purchase shares for remuneration | - | - | 299 | - | - | - | 299 | - | 299 |
| Purchase Genk (Belgium) - extension share capital Wereldhave Belgium |
|||||||||
| Purchase remaining shares | - | - | -798 | - | - | - | -798 | 20,706 | 19,908 |
| Agenttitalo (Finland) | - | - | -466 | - | - | - | -466 | - | -466 |
| Dividend 2011 | - | - | -101,894 | - | - | - | -101,894 | -6,545 | -108,439 |
| Balance at December 31, 2012 | 216,796 | 767,315 | 429,901 | 494 | 162 | -25,121 | 1,389,547 | 147,187 | 1,536,734 |
Consolidated cash flow statement for 2012
| 2012 | 2011 | |||
|---|---|---|---|---|
| Operating activities | ||||
| Result | -87,094 | 62,985 | ||
| Adjustments: | ||||
| Valuation results | 197,033 | 51,331 | ||
| Net interest charge | 39,280 | 37,048 | ||
| Other financial income and expense | -1,197 | 3,717 | ||
| Results on disposals | -7,896 | 4,097 | ||
| Deferred taxes | -26,094 | -14,131 | ||
| Other non cash movements | 1,389 | 1,011 | ||
| 202,515 | 83,073 | |||
| 115,421 | 146,058 | |||
| Movements in working capital | -7,046 | 11,335 | ||
| Cash flow from company activities | 108,375 | 157,393 | ||
| Interest paid | -38,666 | -33,305 | ||
| Interest received | 155 | 860 | ||
| Income tax paid | -700 | -2,247 | ||
| -39,211 | -34,692 | |||
| Cash flow from operating activities | 69,164 | 122,701 | ||
| Investment activities | ||||
| Proceeds from disposals direct investment | ||||
| properties | 332,403 | 168,589 | ||
| Proceeds from disposals indirect investment | ||||
| properties | - | 48,824 | ||
| Investments in investment property | -208,414 | -340,538 | ||
| Investments in equipment | 197 | -881 | ||
| Investments in financial assets | -5,209 | 4,712 | ||
| Investments in intangible assets | -606 | -973 | ||
| Investments in other long term assets | -4,353 | -3,793 | ||
| Cash settlement forward transactions | -610 | -8,181 | ||
| Cash flow from investment activities | 113,408 | -132,241 | ||
| Financing activities | ||||
| New loans interest bearing debts | 575,290 | 586,630 | ||
| Repayment interest bearing debts | -581,521 | -508,467 | ||
| Transactions with shareholders | -47,769 | - | ||
| Repayment other long term liabilities | -806 | -624 | ||
| Other movements in reserves | 299 | -299 | ||
| Dividend paid | -108,439 | -90,954 | ||
| Cash flow from financing activities | -162,946 | -13,714 | ||
| Increase / Decrease (-) cash and bank | 19,626 | -23,254 | ||
| Cash and bank balances at January 1 | 24,400 | 32,096 | ||
| Foreign exchange differences | 380 | 15,558 | ||
| Cash and bank balances at December 31 | 44,406 | 24,400 | ||
Segment information
(amounts x € 1,000)
Geographical segment information - 2012
| Geographical segment information - 2012 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Belgium | Finland | The France Netherlands |
Spain | United Kingdom |
United States |
Headoffice and other |
Total | ||
| Result | |||||||||
| Gross rental income | 33,407 | 24,709 | 10,939 | 40,701 | 8,604 | 29,214 | 147,574 | ||
| Service costs charged | 6,252 | 6,369 | 4,207 | 5,724 | 2,268 | 5,211 | ÷, | ÷, | 30,031 |
| Total revenues | 39,659 | 31,078 | 15,146 | 46,425 | 10,872 | 34,425 | ÷, | ÷, | 177,605 |
| Service costs paid | $-7,127$ | $-6,626$ | $-4,303$ | $-6,134$ | $-3,260$ | $-6,044$ | $-33,494$ | ||
| Property expenses | $-780$ | -887 | $-342$ | $-5,289$ | $-716$ | $-5,286$ | ÷, | ÷, | $-13,300$ |
| Net rental income | 31,752 | 23,565 | 10,501 | 35,002 | 6,896 | 23,095 | ÷, | ä, | 130,811 |
| Valuation results | 7,155 | 1,101 | 28,306 | $-36,812$ | $-30,637$ | $-43,887$ | $-3,785$ | $-78,559$ | |
| Results on disposals | $-105$ | $-19$ | 668 | 245 | 1,043 | 7,109 | 8,941 | ||
| General costs | $-3,100$ | $-998$ | $-777$ | $-3,023$ | $-648$ | $-2,271$ | $\overline{\phantom{a}}$ | -10,187 | $-21,004$ |
| Other income and | 1,624 | $-3,605$ | $-1,981$ | ||||||
| expense Interest charges |
$-1,157$ | $-14,173$ | $-2,045$ | $-2,288$ | $-4,027$ | $-11,368$ | 4,753 | $-30,305$ | |
| Interest income | 44 | 7 | 97 | 163 | 2 | 49 | 362 | ||
| Other financial income and expense | 85 | ÷ | 1,112 | 1,197 | |||||
| Taxes on results | -66 | $-2,205$ | -47 | ÷ | 2,479 | $-2,313$ | ÷ | 27,696 | 25,544 |
| Result from continued operations |
36,232 | 7,278 | 36,703 | $-6,713$ | $-24,892$ | $-29,586$ | 15,984 | 35,006 | |
| Result from discontinued | |||||||||
| operations | $-122,100$ | $-122,100$ | |||||||
| Result | 36,232 | 7,278 | 36,703 | $-6,713$ | $-24,892$ | $-29,586$ | $-122,100$ | 15,984 | $-87,094$ |
| Total assets | |||||||||
| Investment properties in operation Investment properties under |
499,801 | 458,289 | 174,702 | 540,698 | 97,408 | 302,129 | 2,073,027 | ||
| construction | 55,244 | 36,708 | 116,370 | 2,683 | $\overline{\phantom{a}}$ | 29,039 | 240,044 | ||
| Assets held for sale | 8,099 | 535,067 | 543,166 | ||||||
| Other segment assets | 25,324 | 6,156 | 12,286 | 147,800 | 9,129 | 81,028 | 7,588 | 768,873 | 1,058,184 |
| minus: intercompany | $\overline{\phantom{a}}$ | ÷, | $\overline{a}$ | $-65,000$ | $\overline{\phantom{a}}$ | $-45,950$ | ÷, | $-799,515$ | $-910,465$ |
| 580,369 | 501,153 | 303,358 | 626,181 | 106,537 | 374,345 | 542,655 | $-30,642$ | 3,003,956 | |
| Investments in | |||||||||
| investment properties | 86,527 | 30,846 | 94,475 | 10,716 | 6,409 | 12,163 | 38,727 | 279,863 | |
| Gross rental income by type of property |
|||||||||
| Retail | 23,537 | 24,709 | 1,153 | 35,726 | 1,598 | 24,307 | 111,030 | ||
| Offices | 9,846 | ÷, | 9,786 | 1,090 | 5,267 | 4,199 | ä, | 30,188 | |
| Other | 24 | ÷, | ÷, | 3,885 | 1,739 | 708 | ÷ | ÷. | 6,356 |
| 33,407 | 24,709 | 10,939 | 40,701 | 8,604 | 29,214 | 147,574 |
Segment information
(amounts x € 1,000)
Geographical segment information - 2011
| Geographical segment information - 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Belgium | Finland | The France Netherlands |
Spain | United Kingdom |
United States |
Headoffice and other |
Total | ||
| Result | |||||||||
| Gross rental income | 26,344 | 30,048 | 12,665 | 43,967 | 9,502 | 20,927 | $\overline{\phantom{a}}$ | 143,453 | |
| Service costs charged | 6,969 | 7,484 | 4,534 | 5,667 | 2,291 | 3,602 | 30,547 | ||
| Total revenues | 33,313 | 37,532 | 17,199 | 49,634 | 11,793 | 24,529 | $\overline{\phantom{a}}$ | 174,000 | |
| Service costs paid | -7,453 | $-7,996$ | $-4,617$ | $-6,046$ | $-3,046$ | $-4,397$ | $-33,555$ | ||
| Property expenses | $-1,287$ | $-1,315$ | $-412$ | $-5,467$ | $-1,168$ | $-2,139$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $-11,788$ |
| Net rental income | 24,573 | 28,221 | 12,170 | 38,121 | 7,579 | 17,993 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 128,657 |
| Valuation results Results on disposals General costs Other income and |
14,747 -84 $-2,180$ |
407 $-392$ $-550$ |
4,001 $\overline{\phantom{a}}$ -654 |
$-1,782$ 695 $-1,536$ |
$-5,682$ $\overline{\phantom{a}}$ -672 |
5,836 $-1,741$ $-2,231$ |
$\overline{\phantom{0}}$ | -49 850 $-6,190$ |
17,478 $-672$ $-14,013$ |
| expense | 1,793 | $\overline{\phantom{a}}$ | $\overline{a}$ | 1 | $-7$ | 1,787 | |||
| Interest charges Interest income Other financial income and |
-849 49 |
$-15,337$ 22 |
$-2,644$ 155 |
$-2,656$ 197 |
$-4,739$ 19 |
$-4,902$ 22 |
279 $\overline{\phantom{a}}$ |
$-30,848$ 464 |
|
| expense | 84 | 136 | $\overline{\phantom{0}}$ | $-3,937$ | $-3,717$ | ||||
| Taxes on results | 287 | 7,753 | -17 | $\overline{a}$ | 1,231 | $-1,071$ | $\overline{\phantom{a}}$ | 3,855 | 12,038 |
| Result from continued operations |
38,420 | 20,124 | 13,011 | 33,039 | $-2,264$ | 14,043 | $-5,199$ | 111,174 | |
| Result from discontinued operations |
$\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | -48,189 | $\overline{\phantom{a}}$ | -48,189 | ||||
| Result | 38,420 | 20,124 | 13,011 | 33,039 | $-2,264$ | 14,043 | $-48,189$ | $-5,199$ | 62,985 |
| Total assets Investment properties in |
|||||||||
| operation Investment properties under |
398,408 | 456,549 | 181,226 | 568,211 | 135,907 | 415,678 | 674,190 | 2,830,169 | |
| construction | 74,428 | 6,504 | 3,479 | 1,792 | $\overline{\phantom{a}}$ | 14,617 | 127,112 | 227,932 | |
| Assets held for sale Other segment assets minus: intercompany |
25,681 $\overline{\phantom{a}}$ |
2,840 | 13,105 $\overline{\phantom{a}}$ |
148,694 $-65,000$ |
10,414 $\overline{\phantom{a}}$ |
23,159 | 43,092 $\overline{\phantom{a}}$ |
748,917 -791,076 |
1,015,902 $-856,076$ |
| 498,517 | 465,893 | 197,810 | 653,697 | 146,321 | 453,454 | 844,394 | -42,159 | 3,217,927 | |
| Investments in investment properties |
41,056 | ||||||||
| 6,535 | 1,170 | 8,988 | 4,251 | 205,750 | 73,493 | 341,243 | |||
| Gross rental income by type of property |
|||||||||
| Retail | 16,554 9,768 |
29,778 | 3,203 9,462 |
37,337 1,167 |
1,752 5,455 |
10,849 9,236 |
99,473 35,088 |
||
| Offices Other |
22 | 270 | $\overline{\phantom{a}}$ | 5,463 | 2,295 | 842 | 8,892 | ||
| 26,344 | 30,048 | 12,665 | 43,967 | 9,502 | 20,927 | $\overline{\phantom{a}}$ | 143,453 |
Explanation
Movements in investment properties
| Investment properties in operation |
Investment properties under construction |
Total investment properties |
|
|---|---|---|---|
| Balance at January 1, 2012 | 2,830,169 | 227,932 | 3,058,101 |
| Exchange rate differences | -601 | -1,735 | -2,336 |
| Purchases | 52,458 | 24,550 | 77,008 |
| Investments | 24,405 | 172,682 | 197,087 |
| To / from development properties | 151,638 | -151,638 | 0 |
| To investments held for sale | -506,657 | -7,579 | -514,236 |
| Disposals | -307,555 | -8,408 | -315,963 |
| Revaluations | -171,967 | -21,281 | -193,248 |
| Capitalized interest | 247 | 5,521 | 5,768 |
| Other | 890 | - | 890 |
| Balance at December 31, 2012 | 2,073,027 | 240,044 | 2,313,071 |
| Investment properties at fair value Investment properties at cost |
2,073,027 - |
160,870 79,174 |
2,233,897 79,174 |
| 2,073,027 | 240,044 | 2,313,071 |
| Rental income per country (x € 1,000) |
gross rental income | property expenses and service and operating costs |
net rental income | |||
|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Belgium | 33,407 | 26,344 | 1,655 | 1,771 | 31,752 | 24,573 |
| Finland | 24,709 | 30,048 | 1,144 | 1,827 | 23,565 | 28,221 |
| France | 10,939 | 12,665 | 438 | 495 | 10,501 | 12,170 |
| The Netherlands | 40,701 | 43,967 | 5,699 | 5,846 | 35,002 | 38,121 |
| Spain | 8,604 | 9,502 | 1,708 | 1,923 | 6,896 | 7,579 |
| United Kingdom | 29,214 | 20,927 | 6,119 | 2,934 | 23,095 | 17,993 |
| 147,574 | 143,453 | 16,763 | 14,796 | 130,811 | 128,657 | |
| Rental income per sector (x € 1,000) |
||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Retail | 111,030 | 99,473 | 13,124 | 10,458 | 97,906 | 89,015 |
| Offices | 30,188 | 35,088 | 2,855 | 3,323 | 27,333 | 31,765 |
| Other | 6,356 | 8,892 | 784 | 1,015 | 5,572 | 7,877 |
| 147,574 | 143,453 | 16,763 | 14,796 | 130,811 | 128,657 |
| Geographical distribution investment properties (as a %) |
December 31, 2012 | December 31, 2011 |
|---|---|---|
| Belgium | 24 | 14 |
| Finland | 22 | 18 |
| France | 8 | 6 |
| The Netherlands | 26 | 21 |
| Spain | 5 | 5 |
| United Kingdom | 15 | 11 |
| United States | - | 25 |
| Distribution of investment properties by sector (as a %) |
||
| (as a %) Retail | 79 | 54 |
| Offices | 18 | 41 |
| Other | 3 | 5 |
| Share data (amounts per share x € 1) |
December 31, 2012 | December 31, 2011 |
|---|---|---|
| Number of ordinary shares ranking for dividend | 21,679,608 | 21,679,608 |
| Result per share ranking for dividend | -4.54 | 2.37 |
| Average number of shares | 21,678,276 | 21,593,238 |
| Result per share | -4.54 | 2.38 |
| Result per share at full conversion of the bond | -4.54 | 2.65 |
| Movement in net asset value per share ranking for dividend |
2012 | 2011 |
| Net asset value as at January 1 | 73.44 | 75.12 |
| Dividend previous year | -4.70 | -3.95 |
| Stock dividend previous year | - | -0.75 |
| 68.74 | 70.42 | |
| Other movements in equity | -0.11 | 0.65 |
| Direct result current year | 3.91 | 4.91 |
| Indirect result current year | -8.45 | -2.54 |
| -4.54 | 2.37 | |
| Net asset value as at December 31 | 64.09 | 73.44 |
| Interest bearing debt (amounts x € 1,000) |
December 31, 2012 |
December 31, 2011 |
|---|---|---|
| Long term | ||
| Bank debts and other loans | 723,776 | 740,495 |
| Debentures | 42,790 | 41,738 |
| Convertible bonds | 447,212 | 441,855 |
| 1,213,778 | 1,224,088 | |
| Short term | ||
| Interest bearing liabilities | 75,000 | 64,965 |
| 1,288,778 | 1,289,053 |
Movement interest bearing liabilities Balance at January 1, 2011 1,148,016 Exchange rate differences & other value adjustments 30,669 New loans 616,056 Repayments -508,468 Use of effective interest method 2,780 Balance at December 31, 2011 1,289,053 Balance at January 1, 2012 1,289,053 Exchange rate differences & other value adjustments -637 New loans 575,290 Repayments -581,521 Use of effective interest method 6,593 Balance at December 31, 2012 1,288,778
Related party agreements
In the financial year 2012, no business transactions took place in which conflicts of interest of the members of the Board of Management or the Supervisory Board may have played a role.
Basis of preparation results 2012
The accounting principles applied for this press release are in accordance with the International Financial Reporting Standards (IFRS), as approved and endorsed by the EU Commission. The accounting principles are also in accordance with the annual accounts 2011 of Wereldhave, except for the accounting for leasehold contracts. Leasehold contracts are as per 2012 presented as operational lease contracts, instead of financial lease contracts. As a result of this change in accounting policies, the interest costs over 2011 have been adjusted downwards with € 2.0 million as well as the valuation result with € 0.1 million, whilst the property expenses have increased with € 2.1 million. In the balance sheet per December 31, 2011 the items "investment properties in operation" and "other long term liabilities" have been adjusted downwards with € 32.3 mln. The figures of this press release are unaudited.
Expense ratio
The expense ratio for 2012, based on the Dutch Financial Supervision Act, amounts to 4.87% (2011: 3.70%). The percentage is calculated as the quotient of property expenses, general costs and the average of shareholders' equity during the accounting period.