Corio raises profit forecast

Corio has recorded good results in the first nine months of 2002. The direct investment result per share rose 11.8% to E 1.89 compared with E 1.69 over the first nine months of 2001. On the strength of these results, the management has raised its forecast for the direct investment result per share for the whole of 2002 to E 2.50, an increase of 9.6% compared with 2001.

Results
The direct investment result for the first nine months of 2002 increased by E 15.3 million to E 125.3 million. This increase of 13.9% was largely attributable to the acquisition of the Trema portfolio in November 2001. Income from investments also increased due to rent increases, with an occupancy level of 95.8% (2001: 97.3%). Interest charges and management costs increased sharply in connection with the Trema acquisition. The indirect investment result was E 45.4 million, made up of property revaluations totalling E 49.7 million (2001: E 85.8 million), E 4.3 million negative in respect of allocated management costs (2001: E 3.3 million negative). The other movements netted out at zero (2001: E 3.8 million negative).

Portfolio
The value of the property portfolio increased in the first nine months by E 99 million to E 3,569 million as at 30 September 2002. Investments totalled E 126 million. Additions to the Dutch retail portfolio included two shop units in Villa ArenA in Amsterdam and two shopping centres located in other parts of the urbanised west of Holland. A further E 1.6 million was invested in the existing portfolio. In France, E 16.2 million was invested, including investments in the current expansion programmes at the shopping centres in Grenoble and Bordeaux. Disposals in the first nine months totalled E 77 million. In The Netherlands, office buildings in Utrecht and Enschede were sold. In France, the office building in St. Quentin-en-Yvelines was sold and, in Spain, an office building in Barcelona as well as part of a shopping centre on the island of Gran Canaria were sold. As a result of the disposal of office buildings and investments in retail properties, the proportion of retail property in the portfolio increased from 67% as at year-end 2001 to 69% as at 30 September 2002. Property portfolio revaluations in the first nine months totalled E 50 million. In The Netherlands, the portfolio was revalued by 3.4%, in France by 1.6% and in Spain by 6.4%. In Italy, the value of the portfolio was adjusted downwards by E 2.0 million to reflect acquisition costs.

Balance sheet
Shareholders’ equity rose during the first nine months by E 181.3 million to E 1,975.6 million. Holders of 36% of the shares took the 20% stock dividend option for the dividend distribution in respect of 2001, resulting in the issue of 0.3 million new shares and a consequent increase of E 10.6 million in shareholders’ equity. The net asset value per share as at 30 September 2002 worked out at E 29.82 (year-end 2001: E 27.25 after profit appropriation). In connection with the merger of VIB and WBN to form Corio, the company contracted a convertible loan of E 90 million. Corio plans to redeem this loan in cash on 31 December 2002.

Outlook
Corio is concentrating on the consolidation and integration of the organisation with the object of maximising results on the company’s strongly expanded portfolio. Corio will also continue to pursue acquisitions matching the company’s strategy of European expansion focused on the retail sector. Because of the retail focus, Corio intends to dispose of office property to the value of E 200 and E 300 million as well as smaller retail portfolio properties worth a total of E 50 - 100 million which no longer match the portfolio profile. Some of these disposals, amounting to E 77 million, have already been effected. The remainder of the planned disposals will take place in the final quarter of 2002 and the course of 2003. On the basis of the trend in results for the first nine months of 2002, the management has raised its forecast for the direct investment result per share for the whole of 2002 to E 2.50

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