UPDATE: Wereldhave Swings To 1st Half Loss, No Fiscal Year Outlook
August 07 2009 - 3:22AM
Dow Jones News
Real estate company Wereldhave NV (WHA.AE) Friday said it swung
to a net loss in the first half due to negative property
revaluations in all the countries in which it operates, and
refrained from giving an outlook for the full year.
It posted a net loss of EUR13.9 million, or EUR0.78 a share,
after a net profit of EUR52.4 million, or EUR2.32 a share, a year
ago. Net asset value per share fell to EUR77.77 from EUR83.74.
The company's direct result - a measure which excludes changes
in the value of real estate assets, used by property companies to
track operational performance - rose to EUR58.6 million in the
first half, from EUR54 million a year ago. The rise was mainly due
to lower interest costs and taxes.
Petercam analyst Pieter van der Meijden said the figures were
"very strong", particularly the direct result, which he expects to
rise further for the full year.
He expects Wereldhave will pay a dividend for the full year,
unlike some other real estate funds. Petercam is keeping its add
rating and EUR75 target price on the stock.
Net profit fell due to negative property revaluations, amounting
to a total downward revaluation of EUR82.7 million. Wereldhave
expects further downward pressure on property values in the rest of
2009, but said in a statement: "Wereldhave is well prepared for
negative revaluations with its sound financial situation, which
also enables it to make use of attractive investment
opportunities".
Total revenues rose to EUR106.7 million in the first half, from
EUR101.9 million a year ago. The occupancy rate for the first half
year decreased to 89.7% from 94.7% a year earlier.
Wereldhave invests in office buildings, shopping centers,
industrial and residential property in Belgium, Finland, France,
the Netherlands, Spain, the UK and the US.
At 0732 GMT, its shares were down 1.1% at EUR61.75.
Company Web site: www.wereldhave.com
- By Bart Koster; Dow Jones Newswires; +31 20 571 5201;
bart.koster@dowjones.com