Wereldhave N.V.

trading update Q1 2018 - Seite 2

Operations

Wereldhave had a good start of the year. Our occupancy developed flat at 95.5%, despite the harsh retail conditions in France and a slight decrease in Finland. The 36.9m footfall was slightly above market average and a strong leasing activity was underpinned by signing of 112 leases signed on average slightly above prevailing market rent levels. Although at an early stage, the fundamentals of the French leasing portfolio improved. Occupancy moved up 20bps to 93.4% and 1.2% of the French rents were turned from temporarily contracts into permanent ones. With an approx. 50% increase in footfall in March, we can look back at a very successful opening of the Primark in Docks Vauban. This was followed by a very successful opening of the extension & refurbishment of Les Bastions in Tournai. Also we take pride in winning the NRW marketing prize for the best brand activation event in the Netherlands for the Black Friday Shopping Night.

 Gross rental income for the first quarter of 2018 amounted to € 55.4m, which is 3% below Q1 2017. The decrease is largely due to disposals in the Netherlands in 2017, lower rental income in France, partially offset by positive rental growth in the Netherlands and Finland.

In Belgium, occupancy of the shopping centre portfolio went up by 30 bps to 95.2%. The lease for the Carrefour unit in Liège was not terminated and now expires in September 2021. For the Carrefour in Genk, no termination notice has been received yet. However, Wereldhave Belgium continues to explore alternatives. Several prospective tenants have expressed their interest for both the Carrefour locations. New leases were signed with H&M, JBC, Kruidvat and Etam Lingerie in Tournai and Only in Genk Shopping1. Footfall in the Belgian shopping centres went up by 4.1%.

In France, new leases were signed with Bershka, SuperDry, Guess and Jungle Coffee. Occupancy stood at 93.4% at March 31, 2018 (Q4 2017: 93.2%). The occupancy structure also improved, as temporary leases accounting for 1.2% of the occupancy were replaced by permanent contracts. Turnover in the fashion industry has been soft. This will be reflected in our rental income through sales based rents. Footfall in the French centres went up by 3.9%. In Docks Vauban, Le Havre, the new Primark opened its doors on February 21, 2018. Since the opening, footfall in the centre increased by approx. 50%.