GuruFocus -
- Occupancy Rate: 98.6%.
- Collection Rate: 98.4% at the end of the first half of 2024.
- Direct Result: EUR 0.92 per share for the first half of 2024.
- Property Portfolio Value Decrease: 1.1% decrease, totaling EUR 1,236 million.
- Loan-to-Value Ratio: Decreased to 40.7% from 44.4% at the end of 2023.
- Average Interest Rate: Increased by 60 basis points from 2.5% to 3.1%.
- Like-for-Like Rental Growth: 2.9% on average for the entire portfolio.
- Interim Dividend: EUR 1.70 per share to be paid in December 2024.
- Expected Direct Full Year 2024 Result: Between EUR 1.75 and EUR 1.85 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vastned Retail NV (FRA:VB2) maintained a high occupancy rate of 98.6%, indicating strong operational performance.
- The company successfully passed through contracted indexation rates to tenants, resulting in higher rents on new leases and renewals.
- A high rent collection rate of 98.4% was achieved, demonstrating effective rent collection processes.
- The loan-to-value ratio decreased significantly from 44.4% to 40.7%, moving towards the company's long-term goal of below 40%.
- Vastned Retail NV announced an interim dividend of EUR 1.70 per share to be paid in December 2024, reflecting a commitment to shareholder returns.
- Higher interest expenses impacted the direct result, which remained broadly in line with the previous year at EUR 0.92 per share.
- The property portfolio value decreased by 1.1%, affecting the indirect result and net asset value.
- Bankruptcies, including Big Bazar Belgium and Ted Baker, posed challenges, although the impact is expected to be limited.
- The Spanish portfolio faced a vacancy issue with a property in Malaga, which has been vacant since Q1 2024.
- The average interest rate increased from 2.71% to 3.05%, driven by new long-term loans in Belgium at higher rates.
A: It's hard to predict, but yields have increased slightly, especially in France. With interest rates stabilizing, it's interesting to see what will happen. There are more transactions in the market, including our own, which were at or above book value.
Q: How is the re-letting progressing in Spain after the early termination at the end of last year?
A: The unit in Malaga, previously a bank unit, is currently vacant. We are in discussions with multiple tenants and will update the market once a deal is finalized.
Q: Excluding France, other portfolios show flat valuations. Have we reached the trough for them?
A: It seems so. Interest rates are stabilizing, and there are more transactions. Our own transactions have been around book value, so we'll see what happens in the next half year.
Q: On the Spanish portfolio, assuming a decline of minus six, what percent is linked to vacancy or other factors? Also, what's your view on disposals in H2?
A: In Spain, we have higher occupancy, and the negative impact is due to one empty unit. Valuations were positive for the first half. Regarding disposals, we have delivered a large part of our sales program and are still in discussions for additional sales to achieve an LTV below 40%.
Q: Are you focusing on the Dutch market for sales, or are you looking at all markets?
A: We are looking at all markets. So far, we've been most successful in the Dutch market, which is our largest portfolio, but we are evaluating opportunities across all markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.