Cofinimmo´s first quarter net current results per share were in line from an EPS point of view: € 2.01 versus ABN Amro´s estimate of € 2.00. However, rental income was below expectations, but this loss was off-set by lower than expected interest costs. The NAV (excluded dividend, excluded running profit) dropped slightly from € 103.85 to € 103.72. The occupancy rate fell further in the
first three months of 2004 from 94.7% to 94%.
Over the first quarter Cofinimmo paid an average cost of debt of 3.83% versus 4.04% over the full year 2003. The company has effectively used interest rate derivatives like ´floors´ and ´caps´, in order to reduce its debt rate. Currently 98% of Cofinimmo´s outstanding debt is floating rate, but around € 400 mln is fixed at 2.2% in the second and third quarter and at 2% in the fourth quarter. Another € 500 mln of debt is ´capped´ at 4% for the remainer of 2004. For the next three years the ´cap´ and ´floor´ rates for Cofinimmo´s outstanding debt are around respectively 4/4.5% and 3/3.5%.
Source: ABN Amro Real Estate
