ANNUAL REPORT 2004 - Breevast

MANAGEMENT REPORTOutlook / Personnel en OrganizationOUTLOOKThe Management continues to strive for an increase in thequality of the real estate portfolio, in part by maintaining agood relationship with tenants, so that the vacancy rates inthe portfolio are kept to a minimum. Furthermore, it keepsa sharp eye on the general and management expenses. Withthese measures, it expects to be able to safeguard the returnon shareholders’ equity. In this connection, the portfolio willbe examined critically with respect to retention and disinvestments.Besides the development of interest rates, close tabsshould also be kept on the quality of tenants, particularlythose in the office segment.BREEVAST ANNUAL REPORT 200419The slight improvement in the economic conditions in theareas of activity of the Netherlands and Belgium that isexpected in 2005 may have repercussions on the developmentof the company’s results. It appears that the economy inthe United States will recover sooner. The Management ismoderately confident about the prospects for 2005.Based on current market forecasts, and barring unforeseencircumstances, Management expects pre-tax earnings for 2005to be in line with those realized in the previous years.PERSONNEL AND ORGANIZATIONThe company averaged a staff of 41 in 2004 (2003: 37).Measured in FTEs, the number of staff at year-end 2004was 37.5 (2003: 36). This figure includes the 9 (2003: 10) USemployees in 8.5 FTEs (2003: 9.5) of Wattson Breevast,LLC (51% of which is owned by Breevast B.V.) and itssubsidiaries as well as the 14 (2003: 9) employees in 12 FTEs(2003: 9) of Innara Invest N.V. and its group companies inBrussels, Belgium.The Management of Breevast B.V. would like to thank its stafffor their commitment and effort during the year 2004.Amsterdam, March 7, 2005ManagementH.G. Brouwer MRENIEUWE PASSAGESHOPPING MALLIN SCHIEDAM,THE NETHERLANDS