Wereldhave (WHA) H1 2024 earnings summary

Executive summary

• Dutch retail sales grew 4% year-over-year, with footfall up 5%, both outpacing inflation and market averages, and Full Service Centers outperforming peers.

• Portfolio quality improved through disposals and transformation to Full Service Centers, now the largest segment, driving resilience and higher daily life retail share.

• Positive portfolio revaluation of 3%, mainly driven by Full Service Centers, with leasing spreads and property returns above ERV.

• Fitch BBB (Stable) credit rating achieved, enabling lower interest costs and reflecting a strengthened balance sheet.

• Direct result per share slightly lower in H1 2024 due to bankruptcies and higher financial expenses, but full-year guidance of EUR 1.75 per share reiterated.

Financial highlights

• Gross rental income rose 8.5% to €83.0m; net rental income up 8.1% to €68.0m year-over-year.

• Direct result per share decreased to €0.84; indirect result per share rose 111.6% to €0.84; total result per share up 30.3% to €1.68.

• EPRA NTA per share up 2.3% to €22.35; net LTV improved to 43.0%.

• Like-for-like net rental income growth: Netherlands +5.0%, Belgium +0.8%, core portfolio +3.0%.

• Tenant sales increased 2% year-over-year in both Belgium and the Netherlands.

Outlook and guidance

• Full-year 2024 direct result per share guidance of EUR 1.75 reiterated, with no further ECB rate cuts assumed.

• Dividend per share expected to rise from EUR 1.20 to EUR 1.25.

• H2 2024 expected to benefit from lower marginal cost of debt, reduced bankruptcy vacancies, and higher other rental income.

• LTV targeted to fall below 40% in the longer term.

• For 2025, guidance of EUR 1.75 per share maintained, assuming only inflation-driven like-for-like rental growth and no acquisitions/disposals.