Wereldhave Belgium: 2005 Results *

The balance sheet and income statement are prepared in accordance with International Financial Reporting Standards (IFRS), as ratified and stated by the European Commission until December 31, 2005.

The IFRS principles for consolidation, valuation of assets and liabilities and the determination of results are available at the Company's website www.wereldhavebelgium.com under financial information. 

 

The profit for 2005 rose from EUR 22.3 mln to EUR 28.7 mln. This is the result of a higher positive revaluation (EUR 6.2 mln), a higher operating result before result on the portfolio (EUR 1.3 mln), and higher taxes (EUR 0.1 mln). The financial result decreased (EUR 1.0 mln) due to the loss off an exceptional financial result in 2004.

 

During 2005, the direct result of Comm. VA Wereldhave Belgium SCA increased to EUR 20.2 mln (2004: EUR: 20.0 mln). This increase is the result of higher net rental income (EUR 0.6 mln), lower costs for unoccupied buildings and a release of provisions (EUR 0.7 mln), higher taxes (EUR 0.1 mln) and a lower financial result (EUR 1.0 mln). The direct result per share amounts to EUR 3.79 (2004: EUR 3.74).

 

* The consolidated accounts have not yet been certified by the auditor.

 

Shareholders' equity at December 31, 2005 amounts to EUR 333.8 mln (December 31, 2004: EUR 323.2 mln). The net asset value per share at December 31, 2005, including the profit of the current year, amounts to EUR 62.61 (December 31, 2004: EUR 60.62).

 

At December 31, 2005 the fair value of the property portfolio amounted to EUR 319.9 mln (December 31, 2004: EUR 307.2 mln). The net increase of EUR 12.7 mln can be attributed to the purchase of 4 commercial units at Nivelles for an amount of EUR 3.9 mln, new investments on buildings in the portfolio of EUR 0.3 mln and to a positive net revaluation of the portfolio of EUR 8.5 mln. In order to comply with IAS 40, fair value has been computed after deduction of the transaction costs incurred at the sales process; transaction costs contain mainly registration taxes of 10%-12.5%.   The independent appraiser has carried out the valuation in conformity with "International Valuation Standards" and "European Valuation Standards".

At December 31, 2005 the debt ratio on the total of assets amounts to 0.8 % (IFRS)* and, according with the Royal Degree of April 10, 1995, applicable on the Sicafis, the debt ratio amounts to 5.8%*. The occupancy rate, expressed in a percentage of market rent, amounts to 82.9 %. The vacancy concerns only the office portfolio.

 

The Annual General Meeting of Shareholders is to be held on Wednesday April 12, 2006 at 11 a.m. at the company's registered office. A dividend of EUR 3.75 gross (EUR 3.19 net) per share will be proposed to the General Meeting of Shareholders. The dividend will be payable as from April 21, 2006. The 2005 annual report will me published by mid March.

 

The positive development of rental levels in the shopping centers continues. However, the letting of office space in peripheral areas continues to be a challenge due to oversupply.

Wereldhave Belgium's profit development will be mainly dependent on improving the occupancy rate of the office portfolio.

 

 

Vilvoorde, February 23, 2006

N.V. Wereldhave Belgium S.A.

Statutory Management Company

 

For further information:

Wereldhave Belgium
Eddy De Landtsheer
Tel.      + 32 2 732 19 00

 

 

 

 

 

 

* The disputed fiscal claim of EUR 50,938 mln, is not taken into account in the calculation. For that matter, the total sum is guaranteed by Wereldhave NV, shareholder of Comm. VA Wereldhave Belgium. The second method of calculation of the debt ratio (5.8%), applied hitherto, is in accordance with Article 52 of the Royal Degree of April 10, 1995 and interpreted by the supervisory authorities.