An amount of 10,4 million (in 1977 9,5 million) was added to
the reserve for general contingencies.
Unlike in previous years, no sales of large projects took place in
the real estate business in 1978. Nevertheless, the profit realised
on sales was not lower than that of the previous year. In this
connection it should be taken into account that the result on sales
of real estate for 1977 did not include the profit of 4 million
obtained on the sale of an office building.
This building was incorporated in a separate private company,
the shares of which were sold, so that the sales result had to be
accounted for under 'income from participations'.
The sales result for 1978 was obtained on the sale of new
dwellings, a few minor office units, as well as some objects which
had already been in operation for some years.
As in 1977, an amount of 4 million was added to the provision
for non-occupancy. For the cover of non-occupancy losses
sustained 4,2 million (in 1977 5,6 million) was withdrawn from
this provision.
The year 1978 showed a further decrease in the number of
unoccupied spaces, so that for the next few years a fall in the
non-occupancy loss may be reckoned with.
In the securities business the favourable result of 1977 was even
exceeded slightly. Notably during the first quarter sales moved
at a high level.
Summarizing it may be said that 1978 has shown a certain degree
of consolidation in the development of the Group results during
the past few years.
For the year 1979 we do not expect any spectacular changes. The
situation in the markets in which we are operating makes us
confident that the Group results in 1979 will at least attain the level
of the past financial year.
We propose that for the financial year 1978 a cash dividend of
4,10 per share of 10 be paid and from the share premium
reserve a stock dividend of 4% - fully sharing in the profits for
1979 and subsequent years.*
With this proposal we think justice is done to our aiming at
well-balanced dividend policy. We aim at a steadily rising dividend;
in doing so, we shall try to reduce the effect of fluctuations, if any,
in business results as far as possible.
We wish to thank our employees for the way in which they have
fulfilled their duties during the past year.
The Managing Board:
J. de Wilde, chairman
J.W. van Dijk
G.J. Jansen
A.C. van Uchelen
The dividend for 1978 will be payable on 8th May 1979 on dividend
coupon no. 94.
On dividend coupon no. 95 the share premium issue of (certificates of)
shares of 4% will be made available.
