Rodamco Europe N.V. reports strong results for 2006. Direct result after tax is up 8.3% and Triple NAV per share grew by 26.5%, showing a strong operational performance and continuing growth in triple net asset value. Property assets grew by 16.4% and total pipeline increased by 8.9%. Rodamco Europe proposes an increase of 8.5% in dividend over 2006.
The highlights are:
- Property assets increased by 1,487 million to 10,582 million in 2006 compared to 9,095 million at the end of 2005.
- The total pipeline - committed, uncommitted and under consideration - adds up to around 1 million m2 (approximately one third of the total standing portfolio).
- The Triple NAV increased by 26.5% to 6,853 million at the end of 2006, or 76.45 per share (end of 2005: 60.44) after final 2005 dividend per share of 2.17, which was paid in April 2006, and interim dividend 2006 of 1.37 per share which was paid in October 2006.
- Direct result after tax increased 8.3% to 369.1 million in 2006, compared to 340.9 million in 2005.
- The gross rental income increased 9.8% to 652.4 million (2005: 594.3 million).
- Net rental income increased 11.8% to 563.1 million, compared to 503.5 million in 2005.
- Overall occupancy increased to 98.4% at the end of 2006 compared to 97.9% at the end of 2005; retail occupancy increased slightly to 98.9% (year end 2005: 98.6%).
- The valuation result of Rodamco Europe's property assets added 1,307 million in value in 2006.
- Proposed final dividend for 2006 of 2.34 per share, total proposed dividend 2006 of 3.71 per share, an 8.5% increase (2005: 3.42 per share); 3.7% dividend yield.
- Outlook: direct result after tax for full year 2007 is expected to grow by 3% or more. This growth figure excludes, among others, revaluations of the investment portfolio.
CEO Maarten Hulshoff commented: "In 2006 we succeeded in further rebalancing the quality of our portfolio, with divestments of non-core, low to medium quality assets, taking advantage of strong investor demand and high prices. We have taken advantage of the strong market conditions in the current "sellers" market. Prices for retail properties are at historic highs, as a result of which we have also been selective with acquisitions of standing investments and focusing on future growth throuh pipeline. Our chosen focus on top quality assets resulted in a like-for-like growth in net rental income of 4.5% and our loss of rent2 went down to 3.8% coming from 4.6%. We are pleased with another year of these strong operating results and also with a continuing increase in the value of our proerties.
In 2006, we succeeded, primarily through our pipeline, in further growing our pan-European business into a company with a portfolio of high quality assets of over 10 billion, with stable cash flows, secured growth through the pipeline and a sound financial structure.
In 2007 new opportunities will arise from the expected widening of the FBI regulations, which will allow us to cautiously integrate development for own use in our business model."