Rodamco Europe, the largest publicly listed property investment and management company in the retail sector in Europe, is reporting good results for the first quarter of 2006. Direct result after tax is up 11.4% and Triple NAV per share grew by 5.9% to €64.02.
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 the substantial valuation result, which was also the main contributor to the 68.7% growth of net shareholders profit in Q1 2006.
CEO Maarten Hulshoff: We are pleased with the good results in the first three months of 2006, which are mainly due to Rodamco Europes focus on top quality retail in dominant locations in key European cities as well as our active retail management. Also in the first quarter of 2006, the market has shown continuous strong investor demand for top quality retail investments and still increasing cross-border investment activity in Europe. Although high quality opportunities are limited and expensive in the current environment, Rodamco Europe has a €2.4 billion pipeline portfolio, of which 37% is committed. This clearly shows Rodamco Europes ability to secure growth into the future. The total portfolio including the total pipeline currently tops the 11 billion mark. Rodamco Europe will continue to look for investment opportunities in the retail sector across Europe.
Highlights first three months 2006
- Investment portfolio increased 2.5% to €9.3 billion (end of 2005: €9.1 billion); 93.1% of portfolio is invested in the retail sector (Q4 2005: 90.3%);
- Triple NAV (NNNAV) up 5.9% to €5,739 million (end of 2005: €5,418 million), NNNAV per share is €64.02 (before final dividend 2005 of €2.17 per share) (end of 2005: €60.441);
- Direct result after tax up 11.4% to €93.7 million (Q1 2005: €84.1 million), driven by a 11.5% increase in gross rental income;
- Direct result after tax per share is €1.05 (Q1 2005: €0.94);
- Net rental income up 12.5% to €136.2 million (Q1 2005: €121.1 million), like for like growth of net rental income was 2.5%;
- Overall occupancy rate slightly decreased to 97.7% (Q4 2005: 97.9%), retail occupancy decreased slightly to 98.4% (Q4 2005: 98.6%);
- Net shareholders profit up 68.7% to €244.8 million, which includes indirect result after tax of €151.1 million (Q1 2005: €61.0 million);
- Valuation result of investment property €167.1 million, net initial yield on investment property is 6.0%;
- As indicated earlier, direct result after tax for full year 2006 is expected to grow by more than 7%.
Source: Rodamco Europe