Eurocommercial Properties N.V. third quarter results 2004/2005

The board of Eurocommercial Properties N.V. has announced that the Company realised a Direct Investment Result of €36.7 mln for the nine months to 31 March 2005, which represents an increase of approximately 9% over €33.8 mln Direct Investment Result for last year's three quarters.

Net asset value
Net asset value before income appropriation improved by 1.6% to €22.95 per depositary receipt since 31 December 2004 mainly as a result of net property income for the period. The net asset value in December 2004 was €22.59 per depositary receipt. The Company's properties have not been revalued since the regular annual valuations in June 2004 and will be independently revalued next in June 2005.

Market commentary
The property markets in which the Company is active continue to be strong with particularly marked interest in Sweden from foreign investors attracted by the good economic growth and availability of stock. The French retail market has on the other hand seen few transactions of late, not through any lack of demand, which remains high, but rather because of an almost complete absence of sellers. The Italian shopping centre market has seen good activity through development in previously undersupplied regions.

Yields in the Company's markets remain under downward pressure and retail rents continue to show growth at least matching inflation. Sales turnover in the Company's centres was strongly positive for March reflecting the early date of Easter.

Share placement and property acquisitions
On 19 April 2005 ECP placed 3.1 million new depositary receipts at €26 each through an accelerated bookbuild offering, increasing its capital by 9.9% or just under €80 mln after costs.

The proceeds were used to fund the acquisition of Bergvik Centre, Karlstad in Sweden at a price of €36 mln and to provide funding for the ongoing extensions of Burlöv Centre, Malmö, also in Sweden and Imola and Carugate in Italy at a combined cost of about €110 mln.

The Company continues to negotiate the acquisition of further shopping centres in its core and adjoining markets where rent/turnover ratios indicate the prospect of sustainable rental levels, even in difficult economic circumstances.

Source: Eurocommercial Properties

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