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Wereldhave NV (STU:WER) (Q4 2024) Earnings Call Highlights: Record Profits and Strategic ...

In This Article:

  • Net Profit: EUR 140 million, highest since 2007.

  • Direct Result per Share: EUR 1.76, slightly above guidance of EUR 1.75.

  • Occupancy Rate: 97.3% for the core portfolio, up from the previous year.

  • Portfolio Revaluation: Positive 3%, driven by increased market rents.

  • Dividend Proposal: EUR 1.25 per share, a 4% increase from last year.

  • EPRA NTA per Share: Up 7%.

  • Loan to Value (LTV): 41.8%, pro forma 40.8% after asset disposal.

  • EPRA Cost Ratio: 22.4%, below the 23.5% target.

  • Like-for-Like NRI Growth: 6.7% in the Netherlands, 4.1% overall for the core portfolio.

  • Leasing Spread: Positive 8.5%.

  • Tenant Sales Growth: 4.9% for full service centers.

  • Occupancy Cost Ratio: Stable at 13%-14%.

  • Cost Savings: Net service charges reduced by 19%.

  • Direct Result Increase: 9% or EUR 7.3 million, offset by higher interest expenses.

  • Net LTV Target: 35%-40%.

  • Average Cost of Debt: Stable, with a 30 basis points margin reduction on RCFs.

  • ESG Achievements: 5-star GRESB rating with 92 points, 40% reduction in carbon emissions by end of 2024.

  • Green Lease Agreements: Increased from 67% to 74%.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Wereldhave NV (STU:WER) reported a net profit of EUR140 million, the highest since 2007, indicating strong financial performance.

  • The company achieved an occupancy rate of 97.3% for its core portfolio by the end of 2024, a significant improvement from the previous year.

  • Wereldhave NV (STU:WER) successfully disposed of a Dutch asset, Winkelhof, close to book value, aiding in capital rotation and reducing tax expenses.

  • The company proposed a dividend increase of 4% for 2024, reflecting confidence in its financial stability.

  • Wereldhave NV (STU:WER) achieved a 5-star GRESB rating with a score of 92 points, demonstrating strong ESG performance and commitment to sustainability.

Negative Points

  • The company faced several bankruptcies in Belgium and the Netherlands, impacting rental income and requiring strategic adjustments.

  • Wereldhave NV (STU:WER) anticipates a EUR4 million to EUR5 million annual tax impact in the Netherlands starting in 2025, which could affect future profitability.

  • The average cost of debt is expected to increase slightly in 2025, potentially impacting financial flexibility.

  • The company is facing challenges in the French investment market, with low activity and yields, affecting asset disposals.

  • Wereldhave NV (STU:WER) incurred one-off costs of EUR1.4 million in reorganization and EUR2.7 million in project-related expenses, impacting overall cost efficiency.