Highlights of 2005 (1)
- An increase of 5.7% in the direct result to €201.4 million (2004: €190.6 million) or €3.04 per share (2004: €2.88 per share), well above the inflation in the euro zone. If the non-recurring profit of €4 million or €0.06 per share in 2004 is not included, the increase in the direct result would have been 7.9%.
- This increase in the direct result can be attributed to a rise of 6.3% in net rental income (including Akmerkez).
- The like-for-like net rental income growth (of projects that were in the portfolio in both 2004 and 2005) of the retail portfolio amounts to 3.8%.
- The indirect result (including Akmerkez) amounts to €387.7 million (2004:€108.3 million) or €5.85 per share (2004: €1.63 per share), due to a positive revaluation of the portfolio of 10.7%. The gross yield on the total portfolio decreased from 8.4% end 2004 to 7.7% end 2005.
- The net profit (the direct and indirect result) rose by 97.1% from 298.9 million to €589.1 million, or from €4.51 per share to €8.89 per share.
- An increase in the net asset value by 18.4% to 40.33 per share. The EPRA[2] triple net asset value (NNNAV), that takes account of circumstances specific to the real estate sector, was €42.80 per share at the end of 2005.
- Improvement of average occupancy rate for the entire portfolio to 96.1% (2004: 95.6%) and for the retail portfolio to 98.3% (2004: 97.8%).
- The property portfolio increased by 16% to €4.5 billion due to the acquisition of shopping centres for an amount of €230.4 million (2004: €135.9 million), investments in the portfolio and pipeline for future projects amounting to €63.1 million (2004:€38.9 million), the sale of offices for a total amount of €24.1 million (2004:€110.7 million), of industrials for €6.5 million and retail that no longer fit the long-term profile for €85.4 million (2004: €44.7 million) and a revaluation of the portfolio of €425.3 million (2004: €100.9 million).
- The retail share in the portfolio rose from 75% at the end of 2004 to 79% at the end of 2005.
- The addition of Turkey as a new core country to the portfolio, through the acquisition of a 46.9% interest in the Akmerkez shopping centre in Istanbul for an amount of €148.8 million.
- Acquisition and strengthening of purchase positions in property developments, as a result of which the fixed and variable pipeline was €1.2 billion on 31 December 2005 and the potential pipeline approximately €0.3 billion.
- Adjustments to the financing mix whereby the share of loans at a fixed interest rate increased from 39% at the end of 2004 to 56% at the end of 2005.
- Dividend proposal of €2.45 per share in cash (2004:€2.39 per share).
After balance-sheet date:
- Acquisition of the Coignières retail park development to the west of Paris, for about 85 million.
- Signing of contracts for the extension and renovation of the Hoog Catharijne Shopping Centre in Utrecht and the description of the framework for the agreement of intent concerning the Leidsche Rijn Centre, yet to be developed and situated in the Vinex district in Utrecht.
[1] The comparative figures for 2004 have been adjusted in accordance with IFRS accounting principles.
[2] EPRA: European Public Real Estate Association
Source: Corio N.V.
