In the first quarter of 2003 Corio achieved good results. The direct investment result per share rose by 8,2% to Ã¢âÂ¬ 0.66, compared with Ã¢âÂ¬ 0.61 in the first quarter of 2002. The indirect investment result per share turned out at Ã¢âÂ¬ 0.06, Ã¢âÂ¬ 0.28 lower than for the same period last year. This decrease is partly a result of the changed timing of the external valuations. The net investment result per share amounted to Ã¢âÂ¬ 0.72, compared with Ã¢âÂ¬ 0.95 in the first quarter of 2002.
The direct investment result increased in the first quarter of 2003 by Ã¢âÂ¬ 3.5 million to Ã¢âÂ¬ 44.0 million. This increase of the net investment result is largely due to rent reviews with an occupancy rate of 95.5% (year-end 2002: 95.6%) The indirect investment result amounted to Ã¢âÂ¬ 4.0 million (2002: Ã¢âÂ¬ 22.3 million), consisting of upward revaluation of the property portfolio of Ã¢âÂ¬ 5.5 million (2002: Ã¢âÂ¬ 23.7 million) and allocated administrative expenses of Ã¢âÂ¬ 1.9 million negative (2002: Ã¢âÂ¬ 1.4 million negative). The release of deferred tax liabilities amounted to Ã¢âÂ¬ 0.4 million (2002: nil).
The value of the property portfolio decreased by Ã¢âÂ¬ 1.6 million in the first quarter to Ã¢âÂ¬ 3,625.8 million. Investments totalled Ã¢âÂ¬ 14.5 million. These investments relate in particular to the existing portfolio. In the first quarter property to a total of Ã¢âÂ¬ 21.6 million was sold, including a bookprofit of Ã¢âÂ¬ 0.2 million. In The Netherlands the shopping centre Ã¢â¬ËDe ScholverÃ¢â¬â¢ (Capelle A/d IJssel) and residential property in Eindhoven were sold. The office property Ã¢â¬ËLÃ¢â¬â¢OdysseeÃ¢â¬â¢ (Les Ulis) in France was sold. Reflecting the sale of these properties and the investments, the share of retail property in the portfolio remained at 70%, the same as at year-end 2002. A total upward revaluation of Ã¢âÂ¬ 5.5 million was applied to the property portfolio in the first quarter of 2003. The appraised parts of the portfolio were revalued upwards by 0.2% (retail The Netherlands 5%;offices The Netherlands Ã¢â¬"0.1%; industrial The Netherlands 0.6%; retail France Ã¢â¬"0.7%; offices France 0.7%; industrial France 2.4%; retail Spain 0.2%). In the first quarter the Italian retail portfolio and the offices in Germany and Spain have not been valued.
ShareholdersÃ¢â¬â¢ equity increased in the first quarter of 2003 by Ã¢âÂ¬ 48.0 million to Ã¢âÂ¬ 1,976.2 million. Net asset value per share as at 31 March 2003 amounted to Ã¢âÂ¬ 29.83 (year-end 2002: Ã¢âÂ¬ 29.11 after profit appropriation). The leverage came to 37.4% at the end of the first quarter 2003 (year-end 2002: 37.8%).
Corio aims to achieve further growth in Europe with a focus on retail in order to enhance the synergy at a pan-European level. At the moment, CorioÃ¢â¬â¢s main priority is expansion in southern Europe by increasing critical mass in order to utilise the current local organisations to its fullest extent. In the second quarter of 2003 two shopping
centres have already been acquired in Italy. One shopping centre has already become operational (GLA of 7,500 mÃÂ²), the second one is under development (GLA of 68.500 mÃÂ²) and will be opened in the autumn of 2004.
It is CorioÃ¢â¬â¢s long-term objective to ensure a pay-out ratio of 80%. For the year 2002 CorioÃ¢â¬â¢s dividend amounted to Ã¢âÂ¬ 2.32 per share, thereby achieving a pay-out ratio of 93%. As long as the future profit allows, Corio wants to achieve a pay-out ratio of 80% by maintaining the dividend distributed for the year 2002.
Through active investment management and center management Corio expects, in 2003, to be able to achieve a net investment result of Ã¢âÂ¬ 170 million or Ã¢âÂ¬ 2,57 per share. This expectation is based on the current composition of the portfolio as at year-end 2002 and without significant changes to the European economic environment.