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The profit for the first nine months of 2008 (direct and indirect result) amounts to EUR 65.3 mln, or EUR 2.84 per share (first nine months 2007: EUR 146.7 mln or EUR 6.77 per share). The decrease is primarily due to the lower valuation results. The total net revaluation is a decrease of EUR 15.2 mln, with lower property values in the United Kingdom, the United States and in France.
Direct result
The direct result to September 30, 2008 amounts to EUR 80.9 mln, which is EUR 2.1 mln or 2.5% lower compared to 2007. Net rental income dropped by EUR 1.5 mln due to exchange rate differences. Lower interest costs, mainly as a result of lower interest rates in the United States, contributed EUR 2.1 mln to the direct result. An incidental gain of EUR 2.2 mln in 2007 was not repeated in 2008, which caused a drop of the direct result. Exchange rate differences had a total negative effect of EUR - 2.6 mln. The occupancy rate for the third quarter amounts to 94.8% (second quarter 2008: 94.7%). Broken down by sector, occupancy rates were: offices 91.4%, retail 98.3%, industrial 96.7% and residential 92.6%.
Indirect result
The indirect result until September 30, 2008 amounts to - EUR 15.6 mln (until 3rd quarter 2007: EUR 63.7 mln). The decrease is primarily caused by lower valuation results.
The revaluation of financial instruments amounts to - EUR 0.4 mln. The net property revaluation amounts to EUR -14.8 mln (until 3rd quarter 2007: EUR 66.8 mln). In the Netherlands, Belgium, Spain and Finland the value of the portfolio increased, against negative property revaluations in the United Kingdom, the United States and in France. Although this is not yet manifest in some markets, Wereldhave expects the cap rates on property to rise and property values to fall.
The results on disposals have decreased by EUR 5.4 mln compared to the first nine months of 2007. Other gains and losses increased by EUR 0.6 mln as the result of the settlement of a fire insurance claim from 2001. Exchange rate differences had an (unrealised) effect of EUR - 3.2 mln on the indirect result.
Equity
Shareholders' equity at September 30, 2008 was EUR 1.929,7 mln (December 31, 2007: EUR 1,972.6 mln before distribution of profit). This represents 66% of the balance sheet total (December 31, 2007: 70%). Exchange rate differences had a total negative effect of EUR - 10.0 mln on the value of the property portfolio, causing a reduction in shareholders' equity of EUR 3.0 mln. The net asset value per share at September 30, 2008 amounts to EUR 87.08 (December 31, 2007: EUR 84.37 after distribution of profit). No convertible bonds opted for conversion. At September 30, 2008 the total number of ordinary shares in issue was unchanged at 20,781,735.
Property portfolio
On september 8, 2008 Wereldhave purchased DiamondView, an office building of 28.500 m² in San Diego, California, United States for USD 161 mln. A profit on disposal of EUR 1.8 mln was made on the sale of an industrial property of 1.000 m² in the United Kingdom. There have been no other changes in the composition of the portfolio.
Prospects
Wereldhave has solid debt/equity ratios. The debt portfolio does not contain any loans with a maturity date in 2008 or 2009, which need to be refinanced. Wereldhave has committed financing facilities that offer sufficient funding for the planned investments in its development portfolio.
Wereldhave is increasing its earlier forecast of the direct result. For the year 2008, Wereldhave forecasts a direct result between EUR 4.80 and EUR 4.90 per share, given stable currency rates. The dividend for 2008 will certainly match 2007.
The Hague, November 7, 2008 Board of Management Wereldhave N.V.
