Rodamco Europe is reporting good results for the first nine months of 2006. Direct result after tax is up 10.0% and Triple NAV per share grew by 17.3% to €70.90 per share. Rodamco Europe is focusing on these two items in evaluating its performance: direct result after tax for its operational performance and Triple NAV for the intrinsic value. Triple NAV growth was supported by a substantial valuation result.
CEO Maarten Hulshoff: "On the operating side we showed strong like for like growth of 4.8%, whilst our loss of rent ratio improved to 3.7%, compared to the loss of rent during 2005 of 4.6%. As to the indirect result, the investor market remained robust resulting in a 10 bp yield shift in the third quarter to 5.6% at the end of the third quarter of 2006. We are pleased to see a law allowing development for FBIs has been sent to the Dutch Parliament. Once approved, most likely during the first quarter of 2007, we cautiously will expand our business model to include developments for our own account and risk. Over time we will therefore evolve as an "Investor - Manager - Developer", covering the whole spectrum in the European shopping center sector."
Highlights first nine months 2006:
Property assets increased 10.1% to €10.0 billion (end of 2005: €9.1 billion); 93.5% of portfolio is invested in the retail sector (end of 2005: 90.3%);
Triple NAV (NNNAV) up 17.3% to €6,355 million (end of 2005: €5,418 million), NNNAV per share is €70.90 (end of 2005: €60.44);
Direct result after tax up 10.0% to €281.1 million (9 mths. 2005: €255.6 million), driven by a 11.9% increase in gross rental income;
Direct result after tax per share up 10.0% to €3.14 (9 mths. 2005: €2.85);
Net rental income up 14.3% to €422.3 million (9 mths. 2005: €369.6 million), like for like growth of net rental income was 4.8% (9 mths. 2005: 4.0%);
Overall occupancy rate increased to 98.2% (end of 2005: 97.9%); retail occupancy increased slightly to 98.7% (end of 2005: 98.6%);
Net shareholders' profit up 4.8% to 982.4 million, which includes indirect result after tax of €701.3 million (9 mths. 2005: €681.7 million);
Valuation result of investment property €742.1 million; 75% due to yield shift and 25% due to rental income change; net initial yield on investment property is 5.6% (end of 2005: 6.1%);
Outlook for the full year 2006 is upwardly revised. Direct result after tax for full year is now expected to grow by at least 8% (earlier outlook was "more than 7%").
Source: Rodamco Europe