Intervest Offices confirms its operating result for 2007
Antwerp, 31 October 2007 - Public property investment fund Intervest
Offices[1] releases today its results on 30 September 2007.
(comparable figures 30 September 2006 between brackets)
The property investment fund Intervest Offices shows a considerable
revaluation of Eur 12,8 million (Eur 15,4 million) during the first
nine months of 2007.
With the sale at the end of 2006 of five office buildings with
important vacancy and a semi-industrial property, the rental income
of the property investment fund decreases during the first nine
months of 2007 by 3,7 % to Eur 30,7 million (Eur 31,8 million). The
occupancy rate[2] on 30 September 2007 amounts to 92 % (92% end
2006).
On 30 September 2007, the property charges amount to Eur 3,2 million
(Eur 2,6 million). This rise is mainly due, on the one hand, to the
increase of the technical costs resulting from maintenance works to
semi-industrial buildings and the buildings in Mechelen and, on the
other hand, from the increase of the management cost of the
properties related to the commercial efforts of the property
investment fund. The general costs amount to Eur 1,1 million which is
Eur 0,1 million lower than in the same period of prior year.
The financial result improves considerably to - Eur 7,2 million (-
Eur 8,9 million) due to the significant decrease in credit facility
withdrawal as a result of the above mentioned sale transaction end
2006. Furthermore, in spite of the important rise of the short-term
interest rates, Intervest Offices has maintained its average interest
rate stable by the refinancing of its credit facilities at the
beginning of 2007 at considerable more attractive conditions and by
the use of interest rate swaps. Finally, the property investment
fund received during the first half of 2007 moratory interests from
the sale transaction of its five office buildings for an amount of
Eur 0,8 million. Hence, the settlement of this sale transaction has
in totality a one-time positive effect on the net result of the
investment property fund of Eur 0,2 million.
For the first nine months of 2007, the net result of the property
investment fund amounts to Eur 32,2 million (Eur 34,9 million) and
can be divided in Eur 19,7 million distributable operating result
(Eur 19,6 million) and Eur 12,8 million result on the portfolio (Eur
15,4 million). The above mentioned net result gives distributable
earnings per share of Eur 1,42 compared to Eur 1,41 for the same
period of prior year.
On 30 September 2007, the fair value of the portfolio amounts to Eur
556 million (Eur 507 million as at 31 December 2006). This rise is
due to the increase in value of Eur 13 million for the existing
buildings and additionally there is the acquisition of the Exiten
building for Eur 8 million, the Mechelen Campus Tower building for
Eur 27 million as well as the realised investments on the portfolio.
On 30 September 2007 the net asset value (fair value) of the share
amounts to Eur 24,55 (Eur 23,99 on 31 December 2006). Given that the
share price on 30 September 2007 is Eur 28,80, the Intervest Offices
share is quoted with a premium of 17 % compared to this net asset
value (fair value).
According to the calculation method of article 6 of the RD of 21 June
2006, the debt ratio amounts to 39 % on 30 September 2007 (45 % on 31
December 2006).
On 18 October 2007, the extraordinary general meeting of shareholders
approved the merger by acquisition by Intervest Offices of two
limited liability companies, i.e. Mechelen Campus 3 (owner of the
'Mechelen Campus Tower' building) and Zuidinvest (owner of the
'Exiten' building).
The merger of Mechelen Campus 3 is realised through the issue of
17.093 new shares Intervest Offices. The merger of Zuidinvest is
realised through the issue of 1.147 new shares Intervest Offices. The
new shares are entitled to dividend from 1 January 2007. All 18.240
new shares are allocated to Belle Etoile sa, a subsidiary of VastNed
Offices/Industrial. After the merger, the share capital of Intervest
Offices is represented by 13.900.902 shares and amounts to Eur
126.725.150,79.
This merger can be seen as a formal and logical step as Intervest
Offices has already previously acquired approximately 95 % of the
shares of the companies Mechelen Campus 3 and Zuidinvest and this as
a part of the further extension of the real estate patrimony of
Intervest Offices.
On the basis of the forecast published in the half-year brochure of
30 June 2007, Intervest Offices expects that for 2007 the
distributable earnings per share will be around Eur 1,90. For the
financial year 2007, the gross dividend per share will herewith be
higher than prior year (Eur 1,87). Indeed, through the sale end 2006
of a number of properties with a low occupancy rate and the
reinvestment of the liberated financial means in office buildings as
Exiten and Mechelen Campus Tower in 2007, distributable earnings
increase.
Note to the editors: for more information, please contact:
Intervest OFFICES SA, Jean-Paul Sols - CEO or Inge Tas - CFO, tel.
03/287.67.87, www.intervest.be
1 Intervest Retail is a public property investment fund listed on
Euronext Brussels in the Next Prime Segment.
2 The occupancy rate is calculated as the ratio of the commercial
rental income to the same rental income plus the estimated rental
value of the vacant locations for rent.
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