Rents and occupancy rates
The theoretical rent for the total Dutch portfolio increased by 1.2%, from € 147.5 million to € 149.3 million. This increase was due to indexations, extensions and renewals of leases at higher rents, plus changes in the portfolio with a net positive effect of € 2.0 million. Total lost rent was 15.6% lower than in 2007, and fell from 3.2% of the theoretical rent in 2007 to 2.8% in 2008. Active letting and centre management boosted the average occupancy rate (EPRA definition) from 96.3% in 2007 to 96.6% in 2008. Operating costs reduced by 1.6%, from € 25.2 million in 2007 to € 24.8 million in 2008. The result is the outcome of an increase in fixed costs (especially leasehold payments) and a reduction in variable costs such as service costs which cannot be passed on. Operating costs in the year under review amounted to 16.6% of the theoretical rent (2007:17.1%). However, if the ground rent paid is left out of consideration, operating costs fell to 13.5% of the theoretical rent (2007: 13.9%). Net rental income rose by 2.4% (2007: 5.3%), to € 120.4 million. On a like-for-like basis, the net rent for properties which were in portfolio for the whole of 2007 and the whole of 2008 rose by 3.7% in 2008 (2007: 4.5%), well above the indexation of rents of 1.9%
Source: Annual Report 2008, Chapter Review of operations, page 53 (PDF, 2,1 MB)
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