Vastned has a clear quality focus in its strategy that is based on three pillars: significantly increase the share of high street venues in the portfolio from to 65%; develop the management, structure and culture of the organization towards an optimum tenant focus and further optimize the conservative financing strategy. This quality strategy allows the company to realize a solid and sustainable value development for its tenants and investors.
High street locations and leading shopping centers are places where high footfall and consumer spending come together. That is the basis of Vastned’s strategy. Consumers increasingly value shopping as a quality time activity and are looking for a unique, one of a kind shopping experience and retailers are anticipating on this trend. Tenants therefore opt for high street locations and leading shopping centers. Vastned aims to increase its share of high street in its future European portfolio from 52% to 65%.
Central in the Vastned company structure and culture is the high quality asset- and service offering for tenants. For retailers, the combination of the right location and high landlord service levels at fair conditions is key in order to maintain profitable margins. In addition, Vastned holds high quality standards regarding the maintenance of buildings and direct surroundings. With its international offering and knowledgeable country management, Vastned has the ability to help develop tenants’ business expand to other countries.
With an increased focus on high street retail property, Vastned will be able to improve delivery on a yearly solid revenue and earnings growth with a stable dividend pay-out ratio. Analysis shows that high street assets do not only have higher occupancy rates, but also higher rental growth. This combination makes high street assets more resilient. From 2008 to June 2011, the total annual return of high street assets within Vastned Retail’s portfolio was 7.6%, compared to 4.9% of non-high street assets.