Corio sustains rising profit and valuation

Corio has realised excellent financial results in 2002. The direct investment result per share turned out at € 2.50, compared with € 2.28 in 2001, an increase of 9.6%. Last year was the seventh consecutive year of growth in Corio’s direct investment result per share.

Given Corio’s focus on retail property, the growth potential in its portfolio and its knowledge of local markets, the outlook is moderately positive. The General Meeting of Shareholders will be invited to approve a dividend of € 2.32 per share in cash. On that basis, Corio’s dividend yield for 2002 is 8.9% .

Corio has realised excellent financial results in 2002. The direct investment result per share turned out at € 2.50, compared with € 2.28 in 2001, an increase of 9.6%. Last year was the seventh consecutive year of growth in Corio’s direct investment result per share. Given Corio’s focus on retail property, the growth potential in its portfolio and its knowledge of local markets, the outlook is moderately positive. The General Meeting of Shareholders will be invited to approve a dividend of € 2.32 per share in cash. On that basis, Corio’s dividend yield for 2002 is 8.9% .

On an operational level, Corio concentrated on four priorities in 2002:
· transition from three separate entities (VIB, WBN and Trema) to a coherent Corio;
· enhance the portfolio through acquisition, renovation and from the existing pipeline;
· repositioning of the existing portfolio by selectively disposing of properties which do not fit Corio’s vision and strategy;
· roll-out center management further in The Netherlands.

Results
The direct investment result increased by € 17.3 million in 2002 to € 165.7 million. This increase was largely attributable to the acquisition of the Trema portfolio. In addition to the effect of that acquisition, investment income also benefited from rent reviews, with an occupancy level of 95.6% (2001: 97.2%). Interest rates and administrative expenses increased sharply, mainly due to the transfer of the management of the Trema portfolio to Corio.

The indirect investment result amounted € 111.5 million, made up of upward revaluation of the property portfolio at 31 December 2002 of € 128.7 million (2001: € 111.0 million), an addition of € 10.5 million negative (2001:
€ 4.7 million negative) to the provision for deferred tax liabilities of foreign entities, allocated administrative expenses of € 6.8 million negative (2001: € 4.9 million negative) and other movements amounting to € 0.1 million (2001: € 0.1 million negative).

Portfolio
The value of the property portfolio increased by € 157.1 million in 2002 to € 3,627.4 million at year-end. Investments totalled € 157.4 million. Several small shopping centres were added to the Dutch retail property portfolio and investments were made in the existing portfolio. Corio also added the Pieter Vreedeplein city-centre project in Tilburg (€ 72.4 million) to its pipeline. In France, a total of € 27.6 million was invested in several projects, including the extensions to the shopping centre in Grenoble. Corio also added some investments in Bordeaux, Nice, Mulhouse and Bobigny to its pipeline.
The decrease of the occupancy rate (from 97.2% at year-end 2001 to 95.6% at year-end 2002) is mainly caused by vacancy in an office property in the Paris region.
Property to a total of € 129.0 million was sold, including office and industrial properties in Utrecht, Enschede, Zoetermeer, The Hague and Sassenheim (industrial) and several smaller retail properties in The Netherlands. In France, Corio disposed of three office properties near Paris. In Spain, Corio sold an office property in Barcelona and part of a shopping centre on Gran Canaria.

A total upward revaluation of 3.7% over the year was applied to the property portfolio (Dutch retail: +5.1%, Dutch office: +0.6%, Dutch industrial: +2.8%, French retail: +1.1%, French office: â€"1.3%, French industrial: +0.5%, Italian retail: +11.9%, Spanish retail: +4,8%, Spanish office: +6,8%). This excellent result has

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