Dutch listed property company NSI swung into the red in the first half of 2012 with net losses of EUR 45 mln compared to an after-tax profit of EUR 19 mln in the year-earlier period. The direct result was steady despite a lower occupancy level thanks to cost reductions. However, the indirect result fell into negative territory and came to -EUR 78 mln, primarily due to writedowns on the Dutch office portfolio.
Dutch listed property company NSI swung into the red in the first half of 2012 with net losses of EUR 45 mln compared to an after-tax profit of EUR 19 mln in the year-earlier period. The direct result was steady despite a lower occupancy level thanks to cost reductions. However, the indirect result fell into negative territory and came to -EUR 78 mln, primarily due to writedowns on the Dutch office portfolio.
The occupancy rate in the office portfolio, which accounts for 40% of the total portfolio, fell to 71.7%.
Despite the writedowns, the company improved its loan-to-value ratio from 57.3% to 56.4%, thanks to the issue of new shares and the proceeds from the sale of a large portion of its Swiss portfolio and smaller buildings in the Netherlands. The assets were sold slightly under book value.
At the beginning of the third quarter, NSI extended its complete financing arrangement with Deutsche Bank. The company is now in talks on refinancing the remaining 2% of its Dutch debt position which needs to be refinanced in 2012. Some 19% of its financing needs for 2013 have already been covered.
The occupancy level of the entire portfolio fell to 81.8% in the second quarter. Part of the vacancies in the office portfolio were attributed to redevelopment activities. The vacancy level in the retail portfolio was limited to 5%. Retail accounts for 27% of the total portfolio.
