Wereldhave Posts Loss On Downward Valuation Of Portfolio

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; [phone]; [e-mail]