Wereldhave nv (PK) (USOTC:WRDEF)
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Real estate company Wereldhave NV (WHA.AE) Tuesday said it swung to a net loss in the first quarter, hit by a lower occupancy rate and write-downs on property, and gave no outlook for the rest of the year.

"Wereldhave is not yet forecasting the results for the year 2009," the company said in a statement.

It reported a net loss of EUR1.5 million, or EUR0.16 per share, compared to a net profit of EUR38.2 million, or EUR1.73 per share, a year ago.

Its direct operational result for the quarter climbed to EUR28.1 million from EUR27.4 million in the same period a year ago, caused mainly by lower interest expenses.

Analysts had predicted an average direct result of EUR25.8 million.

The indirect loss, including property write-downs of EUR31.8 million, or 1.2% of the portfolio value, was EUR29.6 million compared to an indirect profit of EUR10.8 million a year earlier.

The occupancy rate decreased in the first quarter fell to 89.6% from 94.7% at the end of 2008, mainly due to vacancies at two office buildings in Paris and Washington, D.C.

Wereldhave, which rents offices, shopping centers, industrial and residential real estate, did not buy or sell any real estate during the first quarter.

Net rental income for the quarter fell EUR400,000 to EUR36 million.

The company expects property values to fall further in the rest of 2009.

Wereldhave's investment portfolio edged up to EUR2.66 billion from EUR2.65 billion in the first quarter of 2008.

"Wereldhave's figures are flattered by good financial results, mainly thanks to historic low interest rates," said analyst Miriam Wijnands at Fortis Bank Netherlands. "But the underlying result is worse than expected, with lower than expected occupancy rates and rental income," she added. She maintains a hold rating and EUR53 target price.

Petercam analyst Pieter van der Meijden said rental income was higher than expected. He said that the write-downs on the portfolio were not as bad as he expected. "As it was also significantly better than in the fourth quarter we believe this could imply negative revaluation is bottoming out," he said. He maintains an add rating and EUR79.35 price target.

At 1000 GMT, Wereldhave shares traded up EUR1.80, or 3.2%, at EUR57.40.

 
   Company Web site: www.wereldhave.com 
 
   -By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com