Rodamco Asia´s net profit up 17%

In the first nine months of the financial year 2002/2003 (1 March – 30 November 2002), Rodamco Asia NV achieved a net profit of EUR 22.7 million (EUR 1.04 per share), which represents a 17% increase from net profit of EUR 19.4 million in the same nine-month period a year ago.

The total performance in the first three quarters of 2002/2003 amounted to minus EUR 20.0 million due largely to currency results (minus EUR 43 million) that arose from the euro’s strength against the US dollar and most Asian currencies. Net asset value per share decreased by 4.4% from EUR 21.61 at the beginning of the financial year (adjusted for the dividends distributed) to EUR 20.65 on 30 November 2002. The closing share price on the last share trading day of November being 29 November was EUR 14.29, representing a discount to net asset value per share of 31%.

Ton de Boer, CEO of Rodamco Asia said, 'During the third quarter, apart from continuing to show good profit growth, we announced the planned divestment of our 30% interest in Capital Square, an office building in Singapore that accounted for almost 10% of our portfolio as at 30 November. That transaction has since been completed, on 5 December. Although it is a high quality property, and was a significant part of our portfolio, the fact that we went ahead with this divestment underscores our opportunistic approach to growth and total returns that we believe will ensure our continued good performance in the coming year.'

Net Profit
During the first nine months of 2002/2003, Rodamco Asia achieved a net profit of EUR22.7 million, which is EUR3.3 million, or 17.0%, more than the EUR19.4 million net profit realized over the corresponding period a year ago.

Net rental income increased by 15.0% from EUR34.2 million to EUR39.2 million, mainly due to:

the positive contribution from Somerset Grand Shanghai, a serviced apartment complex in Shanghai, China that was acquired (100%-interest) by Rodamco Asia by the end of August,

the full impact of Rodamco Asia’s acquisitions in the previous year, namely 100% of Joong Ang Building (office building in Seoul, South Korea in July 2001) and an additional 20% stake in Maple Place (luxury residential complex in Beijing, China in October 2001) which were partially offset by the sale of the interest in the Hu-Ning Expressway (Shanghai, China in October 2001),

the opening of Fraser Suites at Rodamco Place (serviced apartments in Seoul, South Korea) at the end of March 2002,

the re-opening of an additional 18,000 square metres of shop space for trading in Karawaci Supermal (shopping centre in Jakarta, Indonesia) since February 2001, and

a net increase of rental rates for properties, mainly for Rodamco Tower (office building in Seoul, South Korea), Karawaci Supermal and Suria KLCC (shopping centre in Kuala Lumpur, Malaysia).

Capitalised interest on equity investments in development projects was higher by EUR0.3 million at EUR2.1 million in the first nine months of 2002/2003. The increase was due mainly to Rodamco Plaza, a shopping centre development in Bucheon, Seoul, South Korea that was acquired in mid-May 2002, with an offsetting effect from the completion of Fraser Suites.

Also as a result of the completion of Fraser Suites and the acquisitions mentioned above, interest expenses increased by EUR3.0 million. This increase was compensated by lower interest charges on other projects and the favourable impact of lower currency rates, resulting in almost unchanged interest expenses of EUR13.3 million in the first nine months of the year.

Property Revaluation
Internal valuation of the property portfolio resulted in the value of the portfolio increasing slightly by EUR1.9 million in the first nine months of 2002/2003, compared to revaluation results of positive EUR17.7 million reported for the same period last year.

The revaluation result of positive EUR14.4 million in South Korea was largely due to the completion of Fraser Suites. While the economies of China and South Korea continued to benefit from business expansion, Southeas

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