Corio's direct result increased by 7.2 million to 100.4 million (+7.7%) in the first half year of 2005 compared to the first half of 2004 (93.2 million adjusted for non-reoccurring financial result of 4 million in Q2 2004). This increase was in particular due to the increase in net rental income to an amount of 135.0 million (2004 H1: 131.6 million) and the share of the result of the participating interest in Akmerkez GYO, Istanbul, from acquisition on 11 April 2005 to the end of June 2005 for the amount of 3.0 million.
The indirect result totalled 65.9 million compared to 19.4 million in the first half of 2004, an increase of 240%. In the first half of this year the revaluation of the property portfolio amounted to 74.7 million, excluding 0.5 million book profit on sales, or an increase of 1.9% in the first six months and well above inflation.
Net profit, the total of the direct and indirect result, came out at 166.3 million or 2.51 per share (2004 H1: 116.6 million including the 4 million non-reoccurring financial result in H1 2004 or 1.76 per share), an increase of 42.6%.
Corio has further enlarged the share of retail in the total portfolio, to 77%. As a result of letting and sale transactions (mainly offices) taking effect on 1 July 2005, the occupancy rate of the whole portfolio has improved to 94.8% so that it now exceeds the average financial occupancy rate for the first half of 2004.
Based on the present portfolio and pipeline and apart from possible changes in the IFRS policy and subject to the proviso relating to statements oriented towards the future, the results for the first half year give reason to revise upwards to some extent the forecasts for 2005 given previously. Corio expects to achieve a direct result under IFRS of 200.3 million (3.02 per share) for 2005. This will be 7.4% higher than the adjusted direct result for 2004 of 186.5 million (2.82 per share, excluding the non-reoccurring financial result of 4 million or 0.06 per share).