Rodamco Europe reports 5.1% increase in direct result after tax in first half year 2005 (NL)

Rodamco Europe is continuing its good results in the first six months 2005. Based on the current standards and interpretations of International Financial Reporting Standards (IFRS), direct result after tax is up 5.1% and Triple NAV per share grew by 4.5% to €51.23.

Highlights first six months 2005
(The 2004 figures have been restated under IFRS for comparison purposes).

  • Direct result after tax up 5.1% to €170.0 million (H1 2004: €161.7 million) driven by a 6.8% increase in gross rental income;
  • Direct result after tax per share €1.90 (H1 2004: €1.80);
  • Net shareholders profit up 140.1% to €410.4 million, which includes indirect result after tax of €240.4 million (H1 2004: €9.2 million);
  • Net rental income up 6.6% to €243.1 million (H1 2004: €228.1 million), like for like growth of net rental income was 3.8%;
  • Overall occupancy rates increased to 97.1% (H1 2004: 96.5%) with retail occupancy stable at 98.2%;
  • Investment portfolio increased 7.6% to €8.1 billion; 88% of portfolio invested in the retail sector (H1 2004: 86%);
  • Triple NAV (NNNAV) per share rose 4.5% to €51.23[1] (year-end 2004: €49.01[2]);
  • Direct result after tax for full year 2005 forecasted to grow at least in line with H1 growth (5.1%);
  • Interim dividend of €1.25 (H1 2004: €1.15), payable on 14 October 2005.

[1] Before interim dividend 2005 of €1.25 per share
[2] Before final dividend 2004 of €1.90 per share

CEO Maarten Hulshoff commented: "Rodamco Europe's strategy to focus on top quality retail in dominant locations in its key markets, whilst further emphasizing the management of our retail properties, continues to contribute to solid and positive results.

The upward revision in valuations continues due to strong investor demand in retail property and the high quality of Rodamco Europe's investment portfolio. The latter is also confirmed by our stable and high occupancy rates. Rodamco Europe's strong local organizations and our total pipeline project portfolio of €1.8 billion (€ 0.9 billion committed) offer a stable platform for further growth. This is expected to accelerate somewhat in the second half of 2005 due to the acquisition of 'Stadshart Amstelveen' and pipeline projects coming into operation.

The rental growth potential from the current investment and committed pipeline portfolio coming into operation can be estimated at a total of 19% over the next few years."

Source: Rodamco

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