Results

Direct result
NSI uses the direct result (rental income less operating costs, service costs not recharged, administrative costs and financing costs) as a measure for its core business and for its dividend policy. 

The direct result for the first three quarters 2011 amounted to €39.1 million while the direct result for the same period in 2010 amounted to €39.6 million including a one-off income item of €1.2 million. Adjusted for this one-off income item in 2010 the direct result for the first three quarters of 2011 increased by €0.7 million compared to the same period in 2010. This difference is mainly caused by the contribution of the two shopping centres acquired during the course of 2010 and the final dividend for 2010 that NSI received on its 4.99% stake in VastNed O/I. 
The direct result in Q3 2011 equals the direct result in Q3 2010: €12.8 million. 

Gross rental income decreased compared to the first three quarters of 2010, from €77.8 million in 2010 to €77.4 million in 2011. Adjusted for the above mentioned one-off income item, gross rental income for the first three quarters of 2010 amounted to €76.6 million. During Q3 2011 gross rental income increased by €0.2 million compared to Q3 2011 (€24.5 million) as a result of the acquisitions of Sterpassage in Rijswijk in June 2010, shopping centre Zuiderterras at the end of December 2010 and the retail units in shopping centre Zuidplein at the end of February 2011. 

Net rental income during the first three quarters of 2011 was €65.3 million compared to €66.4 million for the first three quarters of 2010. The impact of the one-off income item in Q1 2010 was €1.2 million; the adjusted net rental income during the first three quarters of 2010 was therefore €65.2 million. Net rental income during Q3 2011 (€21.7 million) equalled the net rental income during Q3 2010. 

Operating costs increased during the first three quarters 2011 to €10.8 million compared to the first three quarters in 2010 with €0.8 million due to higher maintenance, rental and other costs. 

Interest expenses increased during the 2011 three quarters period to €24.9 million compared to €24.5 million during the first three quarters of 2010 because of the increased level of debt funding. 

 

 Rental income in the Netherlands and Switzerland

 

(x €1,000)  

Three quarters 2011

Three quearters 2010
The Netherlands Gross rental income

71,900

72,778
  Net rental income

61,195

62,885
Switerland Gross rental income

5,489

4,998
  Net rental income

4,098

3,533

 

 Indirect result
The indirect investment result for the first three quarters of 2011 amounted to - €31.8 million (first three quarters 2010: - €34.3 million. The indirect result consists of both realised revaluations (sales results on investments sold) and unrealised revaluations. These unrealised revaluations concern the changes in the market value of the property portfolio (- €18.9 million) and the interest-rate hedging instruments (- €7.7 million). 

The revaluation of the Dutch property portfolio for the first three quarters of 2011 amounted to - €18.4 million (three quarters 2010: - €22.4 million) The value of the Swiss properties remained unchanged except for exchange-rate differences. NSI’s Dutch retail portfolio showed a positive revaluation of €2.7 million. The value of the office portfolio decreased by €21.1 million because market rents (and corresponding incentives) and occupancy rate are still under pressure. 
In Q3 2011, the value of the real estate portfolio decreased by €6.0 million compared to a decrease of €6.8 million in Q3 2010. 

The revaluation of the interest-rate hedging instruments amounted to - €7.7 million during the first three quarters of 2011 (Three quarters period 2010: - €11.0 million). During the previous three quarters of positive revaluations of the financial derivatives, the revaluation turned negative in Q3 2011 by €15.4 million due to a strong decrease of interest rates during the quarter. 

 
Go to interim report at 30 September 2011