Dutch property company Wereldhave saw its profits for the first half of 1997 grow by 14% compared with the same period of 1996, rising from NLG 59.0m to NLG 67.2m. But lower interest rates and exchange rate fluctuations accounted for most of the growth.
As an active trader, Wereldhave often sells properties as they become fully let. As a result, net rental income for the six month period fell slightly to NLG 94.5m, compared with NLG 95.2m a year ago. For the same reason, the overall occupancy rate declined from 93.6% to 92.9%.
Equally, the portfolio valuation as at 30 June 1997 was slightly down at NLG 2,490.1m against NLG 2,511.2m at 31 December 1996. Valuations of properties retained as investments increased in Belgium, France, Spain, the UK and the US. But the Netherlands, Germany and Hungary saw falls.
The biggest single disposal was the Carnaby Estate in London’s West End, and other sales included 131-141 rue Royale, Brussels and 124 Rambla de Catalu¤a, Barcelona. The sales generated NLG 347.2m, in excess of the book value as at December 1996.
Balanced against these sales was the purchase of 11 distribution centres in the Netherlands, and this had the net result of increasing Wereldhave’s exposure to the buoyant Dutch market. The Netherlands now accounts for 25% of the portfolio, up from 21% six months earlier. And the Carnaby sale has lessened Wereldhave’s dependence on the UK: the UK now accounts for 24% of the portfolio, down from 31%.
