Corio had an excellent year in 2001. The direct investment result per share rose by 5.6% to EUR 2.28, compared with EUR 2.16 in 2000. Corio also took a number of significant steps last year in the implementation of its strategy, including the acquisition of the Trema portfolio, which have lowered the risk profile by achieving a better spread of the portfolio in Europe and increasing the share of retail property in the total portfolio.
The General Meeting of Shareholders will be invited to approve a dividend of EUR 2.28 per share, either entirely in cash or EUR 1.82 (80%) in cash plus a stock dividend charged to the share premium reserve worth at least EUR 0.46 (20%) per share, at the shareholder?s option. On that basis, Corio?s dividend yield is 8.8%.
Highlights of 2001
Â· Sixth successive year of growth in direct investment result per share.
Â· Upward revaluation of 4.1% of the portfolio.
Â· Acquisition of the Villa ArenA lifestyle shopping centre in Amsterdam Zuidoost in April for EUR 65 million.
Â· Sale of Corio?s last office property in the US in August, marking Corio?s withdrawal from that market;
Â· Acquisition of the Trema portfolio, including local management, for EUR 595 million in November. The purchase of this portfolio, which comprises shopping centres in France, Italy and Spain, has added Italy as a new home market for Corio.
Â· Sale of two-thirds of the residential property portfolio in The Netherlands for a total of EUR 92 million.
The direct investment result increased by EUR 48.5 million (49%) to EUR 148.4 million in 2001. The merger of VIB and Winkel Beleggingen Nederland (WBN) at the end of 2000 accounted for most of this increase, other contributory factors being higher income from investments resulting from rent reviews, a sustained high occupancy rate of 97.2% (2000: 97.5%) and expansion of the portfolio. The Trema portfolio has been included in the consolidation since 9 November 2001. Interest charges and administrative expenses were also sharply higher, due to the merger and the growth in the portfolio.
The indirect investment result amounted to EUR 101.3 million, the net effect of upward revaluation of the property portfolio of EUR 111.0 million (2000: EUR 106.1 million), an addition of EUR 4.7 million (2000: EUR 5.8 million) to the provision for deferred tax liabilities of foreign entities, allocated administrative expenses of EUR 4.9 million (2000: EUR 2.8 million) and exchange differences amounting to EUR 0.1 million negative (2000: EUR 3.0 million positive).
The value of the property portfolio increased by EUR 765 million in 2001 to EUR 3,470 million at year-end. Investments totalled EUR 919 million. The acquisition of the Trema portfolio has brought high-quality shopping centres in France, Italy and Spain into the portfolio and has added Italy as a new home market.
Corio acquired Villa ArenA and a number of shopping centres in The Netherlands and shopping centres in Cherbourg and Dijon and a portfolio consisting predominantly of large retail properties, as well as the five Trema shopping centres, in France. Corio also invested in the existing portfolio, notably in the renovation and extension of the Grand? Place shopping centre in Grenoble, a shopping centre in Bordeaux and Alexandrium I in Rotterdam.
Property to a total of EUR 270 million was sold, comprising two office properties, a number of small retail properties and two-thirds of the residential portfolio in The Netherlands, an office property in France and two office properties in the United States, marking Corio?s complete withdrawal from the US market.
A total upward revaluation of EUR 111 million (4.1% over the year) was applied to the property portfolio in 2001, mainly in The Netherlands and France.