Wereldhave N.V.

trading update Q1 2018

Trading update Q1 2018

• Occupancy shopping centres stable at 95.5%
• Occupancy increases in France and Belgium, stable in the Netherlands and a decrease in Finland

Outlook reconfirmed: direct result FY 2018 at € 3.30 - € 3.40 per share

Our markets

The Dutch retail spending continues to benefit from the continued economic strength. The amount of bankruptcies in the retail sector continues to decrease. The strengthening of the economy results in both an increasing demand from international retailers showing confidence in the market by seeking new locations, as well as retailers rationalising their store base. A critical stance towards location quality remains key. We notice good interest for most of our Dutch centres, due to the improvements that have been implemented over the past years. Generally speaking, weaker locations are seeing continued downward pressure on rents. Market rents are broadly stable, with an upward trend for low-vacancy locations.

Following a strong year of recovery in Finland in 2017, the first quarter of this year continues to see a positive trend in terms of tenant demand for good quality retail locations. We notice good interest from food & beverage operators. International retailers express an interest to enter the Finnish market in 2019. Banks are closing their branches to reduce costs. This is impacting occupancy on the shorter term.

In Belgium the retail market can be described as cautiously optimistic. There is a divide between the strong, larger centres and smaller centres in less urbanised areas. To attract the most important anchor tenants in their shopping centres, landlords need to share the risk with retailers by accepting sales based rents or fit-out contributions. The development of market rents is showing a stable picture for our quality centres. The confidence from investors in the Belgian shopping centre market has recently been underpinned by two major deals, shopping centre Dockx in Brussels and Rive Gauche in Charleroi.

In France private consumption is set to grow further following a recent recovery in economic activity and labour market. However, this is not yet filtering through in every segment for physical retail. We notice a cautiously increased demand from retailers for our centres. Rental values are stable for the best high street locations and prime regional out of town schemes. Rents are expected to decline in the other categories.