Eurindustrial back in profit in first half of 2011

18-08-2011

Eurindustrial N.V., an independent investment company in Amsterdam that invests in logistics property in the Netherlands, posted a total investment profit of €451,000 in the first half of 2011. This compares to the total investment loss €1,541,000 that the company incurred in the first half of 2010.

The improvement of the total investment result reflects the implementation of the new strategic plan for the 2011-2015 period. This plan centres on the optimization of the property portfolio, on the one hand by raising the occupancy level and on the other hand by selling and replacing less marketable properties. Other key elements of the strategic plan include the growth of the property portfolio, raising new capital, and aligning of the company’s finance strategy.

With the lease of one section (11,266 m²) of the logistics centre in Venray, the occupancy rate of the property portfolio rose from 80% in the first half of 2010 to approx. 90% in the first half of 2011. Other achievements in the first half of 2011 included the lease of one section of the building in Nuth (as from 2012), the 15-year lease renewal with Sandd in Apeldoorn, a new 10-year lease with Tiemex in Zevenaar, the contract renewal with Océ in Venlo, and the sale of two properties shortly after the reporting period that led to a net book profit.

Due to the revaluation of the property portfolio, the capital invested dropped from €121,332,000 as at 31 December 2010 to €119,466,000 as at 30 June 2011. The shareholders’ equity (including the direct investment result and after the dividend distribution for the financial year 2010) dropped from
€68,601,000 as at 31 December 2010 to €64,889,000 as at 30 June 2011. On 30 June 2011 a total of 293,620 shares were issued, compared to 292,344 on 31 December 2010.

The direct investment result for the first half of 2011 was a profit of €2,317,000, compared to
€1,991,000 for the first six months of 2010. This increase reflects  higher occupancy and lower expenses. The indirect investment result improved from a loss of €3,532,000 in the first half of 2010 to a loss of €1,866,000 in 2011. These combined developments led to an improvement of the total investment result from a negative €1,541,000 in the first half of 2010 to a positive €451,000 in 2011.
 
As set out in the new strategic plan for 2011-2015, Eurindustrial continues to aim for further  increase of invested capital, shareholders’ equity and total investment result. Improvement of the occupancy rate and optimization of the property portfolio will have undiminished attention. To realize the desired growth of the fund, new share capital will be raised. Despite the current unrest in the financial markets, we expect that pension funds and other institutional investors still have funds on hand for property investments. With regard to earnings per share, we expect a direct return per share of 6.5% to 7% for the full financial year 2011.