Wereldhave Posts Loss On Downward Valuation Of Portfolio
March 03 2010 - 1:53AM
Dow Jones News
Dutch real-estate company Wereldhave NV (WHA.AE) Wednesday
reported a net loss for 2009 due to continued write-downs on
real-estate values and said it expects more property to be
available for sale in 2010 in markets where it is looking to
expand.
"Our strong financial position allows us to benefit from more
property that will come for sale in the United Kingdom, Spain and
France", Wereldhave said.
The net loss for 2009 amounted to EUR102.3 million from a net
profit of EUR8.8 million in 2008.
Its direct result--a measure that excludes changes in the value
of real-estate assets and used by property companies to track
operational performance--rose to EUR111.1 million from EUR109.4
million in 2008. The direct result increased due lower interest
charges, especially in the US.
Investors watch this figure closely, as it is used to calculate
dividend payments.
Like many real-estate investors, Wereldhave has been hit hard by
the economic downturn due to hefty impairments on the value of its
properties. In 2008, the market value of Wereldhave's portfolio,
mainly consisting of offices and shops in Europe and the U.S., was
EUR2.4 billion, down from EUR2.6 billion in 2008.
The downturn also has led to a slump in annual net rental
income, to EUR143.1 million in 2009 from EUR149 million a year
earlier.
The occupancy level fell to 89.7% from 94.7% in 2008 due to
vacancy at offices in Paris and Washington DC. In February this
year about half of the vacancies in France have been rented and
around 55% of the office space in Washington has now been
leased.
In an effort to cope with the downturn, Wereldhave has expanded
its shopping-center portfolio, while reducing its dependency on
office buildings. Underpinning this strategy, Wereldhave last month
said it would buy five malls from Franco-Dutch rival
Unibail-Rodamco SA (UL.FR) for EUR235 million.
Wereldhave proposed a dividend per share of EUR4.65 for 2009,
the same as in 2008.
Wereldhave shares closed at EUR66.93 Tuesday.
- By Maarten van Tartwijk and Anna Marij van der Meulen; Dow
Jones Newswires; +31 20 571 5201;
maarten.vantartwijk@dowjones.com
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