Corio posted good results in the first half of 2002. The direct investment result per share rose by 12.5% to â‚¬ 1.26, compared with â‚¬ 1.12 in the first half of 2001. In light of the excellent first half-year results, the management has upgraded its outlook for the year 2002 and expects at least 8% growth of its direct investment result per share.
The direct investment result increased in the first half of 2002 by â‚¬ 11.3 million (16%) to â‚¬ 83.8 million, due to the acquisition of the Trema portfolio in November 2001, higher income from investments resulting from rent reviews at an occupancy rate of 96.0% (2001: 97.5%) and lower interest rates on borrowed capital.
The indirect investment result amounted to â‚¬ 35.1 million, consisting of upward revaluation of the property portfolio of â‚¬ 38.0 million (2001: â‚¬ 51.8 million) and allocated administrative expenses of â‚¬ 2.9 million negative (2001: â‚¬ 2.2 million negative). Other movements were nil (2001: â‚¬ 3.5 million negative).
The value of the property portfolio increased by â‚¬ 66 million to â‚¬ 3,536 million as at 30 June 2002. Investments totalled â‚¬ 83 million. The Dutch retail property portfolio was augmented with the addition of two retailunits in Villa ArenA in Amsterdam and a district shopping centre in Nieuw Vennep, among other acquisitions. Investments were also made in the existing portfolio, including â‚¬ 15 million in The Netherlands and â‚¬ 15 million in France, for example extensions of the shopping centres in Grenoble and Bordeaux.
Property to the value of â‚¬ 55 million was sold in the first half-year, including office properties in Utrecht and Enschede (The Netherlands), St. Quentin-en-Yvelines (France) and Barcelona (Spain), as well as part of a shopping centre on Gran Canaria (Spain). Reflecting the sale of offices and the investments in retail property, the share of retail property in the portfolio increased from 67% as at year-end 2001 to 69% as at 30 June 2002.
In the first half of 2002, excluding the Trema portfolio, a total of 43% of the property portfolio was revalued, resulting in an upward revaluation of â‚¬ 41 million. The portfolio was revalued upwards by 3.9% in The Netherlands, 2.2% in France and 4.7% in Spain. The value of the Trema portolio was adjusted downwards by â‚¬ 3 million to reflect the write-off of acquisition expenses.
In the first half-year shareholdersâ€™ equity increased by â‚¬ 130 million to â‚¬ 1,924 million. Holders of 36% of the shares opted for payment of 20% of the 2001 dividend in shares, resulting in the issuance of 0.3 million new shares and increasing shareholdersâ€™ equity by â‚¬ 10.8 million. As at 30 June 2002 net asset value per share amounted to â‚¬ 29.04 (year-end 2001: â‚¬ 27.25 after profit appropriation).
In 2002 Corio will continue to concentrate on consolidation and integration of the organisation in order to achieve the best possible result on its greatly expanded portfolio, while continuing to make further acquisitions which are appropriate to its strategy of expansion in Europe with a retail focus.
To strengthen the balance sheet, Corio intends to dispose of office property to the value of â‚¬ 200 - 300 million and smaller properties in its retail portfolio to the value of â‚¬ 50 - 100 million. Some of these properties, totalling around â‚¬ 50 million, have already been sold and the remainder will be disposed of in the second half of this year and in 2003.
In light of the excellent first half-year results, the management has upgraded its outlook for the year 2002 and expects at least 8% growth of its direct investment result per share.
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