Vastned Retail (VASTN) H1 2024 earnings summary

Executive summary

• Maintained strong operational performance in H1 2024, with a 98.6% occupancy rate and like-for-like gross rental income growth of 2.9%.

• Direct result per share for H1 2024 was €0.92, nearly matching €0.95 in H1 2023.

• Strategic actions included significant divestments and preparation for a merger with Vastned Belgium, with joint merger documentation signed and effective date planned for January 2025.

• Net rental income rose to €31.1 million from €30.8 million in H1 2023.

• Focus remains on operational excellence and executing the merger process.

Financial highlights

• Occupancy rate at 98.6% and rent collection rate at 98.4% at end of H1 2024.

• Direct result per share was €0.92; indirect result per share was negative €1.69, mainly due to deferred tax liability from asset sales and a 1.1% decrease in property values.

• Portfolio valuation decreased by 1.1% (EUR 40 million), totaling EUR 1,236 million.

• Like-for-like rental growth of 2.9% across the portfolio.

• Loan-to-value ratio improved to 40.7% from 44.7% in H1 2023.

Outlook and guidance

• Expected direct result for full year 2024 reiterated at €1.75–€1.85 per share.

• Interim dividend of €1.70 per share to be paid in December 2024, replacing the usual August interim dividend.

• Expects strong operational performance to continue, barring unforeseen circumstances.