Despite a persistently tough environment, Unibail recorded a sharp increase in like-for-like net rents (up 4.6% for offices, 8.1% for shopping centers and 11.6% for convention-exhibition centers). This growth offsets the impact of a reduced property portfolio resulting from the disposals made in 2003 and early 2004.
The combined impact of like-for-like growth in net rents, a lean cost base and controlled financial expenses boomed after-tax recurring cash flow (Group share) by 9.8% to € 159.2m., giving a per-share increase of 13.8% to € 3.59.
Net profit (Group share) came to € 105.1m. This decline is solely due to various exceptional items booked in first-half 2003 as a result of the Group’s decision to opt for the new ‘SIIC’ tax status.
Unibail sold a 51% stake in SCI Karansis that wons the Coeur Défense office complex, based on a valuation of € 1,345m. for this property. As a result of this transaction, Unibail’s interest in Coeu Défense is now reduced to € 81m., corresponding to the 49% stake it has retained in SCI Karansis along with a participation of € 76m. in the subordinated loan granted to this company.
By retaining this 49% stake in SCI Karansis, Unibail will continue to benefit from the long-term value creation potential of this outstanding complex.
Net Asset Value (NAV)
Following the sale of Coeur Défense, the appraised value of the property portfolio amounted to € 6,632m. at end-June 2004 (compared to € 7,513m. at year-end 2003).
Fully diluted ‘triple net liquidation NAV’ per share