Wereldhave nv (PK) (USOTC:WRDEF)
Historical Stock Chart

From Jun 2019 to Jun 2024

Real estate company Wereldhave NV (WHA.AE) Friday said it swung to a net loss in the first half due to negative property revaluations in all the countries in which it operates, and refrained from giving an outlook for the full year.

It posted a net loss of EUR13.9 million, or EUR0.78 a share, after a net profit of EUR52.4 million, or EUR2.32 a share, a year ago. Net asset value per share fell to EUR77.77 from EUR83.74.

The company's direct result - a measure which excludes changes in the value of real estate assets, used by property companies to track operational performance - rose to EUR58.6 million in the first half, from EUR54 million a year ago. The rise was mainly due to lower interest costs and taxes.

Petercam analyst Pieter van der Meijden said the figures were "very strong", particularly the direct result, which he expects to rise further for the full year.

He expects Wereldhave will pay a dividend for the full year, unlike some other real estate funds. Petercam is keeping its add rating and EUR75 target price on the stock.

Net profit fell due to negative property revaluations, amounting to a total downward revaluation of EUR82.7 million. Wereldhave expects further downward pressure on property values in the rest of 2009, but said in a statement: "Wereldhave is well prepared for negative revaluations with its sound financial situation, which also enables it to make use of attractive investment opportunities".

Total revenues rose to EUR106.7 million in the first half, from EUR101.9 million a year ago. The occupancy rate for the first half year decreased to 89.7% from 94.7% a year earlier.

Wereldhave invests in office buildings, shopping centers, industrial and residential property in Belgium, Finland, France, the Netherlands, Spain, the UK and the US.

At 0732 GMT, its shares were down 1.1% at EUR61.75.

Company Web site: www.wereldhave.com

- By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com