Rodamco Asia’s full-year net profit grew 17% to € 30.6 million

Rodamco Asia NV (‘RA’ or the ‘Company’) announced today that in the financial year 2002/ 2003 (1 March 2002 â€" 28 February 2003), it achieved a net profit of € 30.6 million (€ 1.40 per share) which represents a 16.8% increase from net profit of € 26.2 million in the previous financial year.

The total performance in the full-year 2002/2003 amounted to minus €4 7.5 million due largely to currency results (minus € 79.0 million) that arose from the euro’s strength against the US dollar and Asian currencies during the year. Net asset value per share decreased by 10.3% from € 21.61 at the beginning of the financial year (adjusted for the dividends distributed) to € 19.39 on 28 February 2003. The closing share price on 28 February 2003 was € 14.20, representing a discount to net asset value per share of 27%.

Ton de Boer, CEO of RA said, “I am very pleased with our outstanding operational results, which show that our focus on returns in general and on North Asia in particular is paying off. During the year, we made two very attractive 100% acquisitions in North Asia and two successful divestments. The impact of these measures will bear fruit from the current financial year and I am confident our results this year will again show that Asia remains the place to invest in real estate for above-average returns and that Rodamco Asia has the right strategy and the right market and sector focus.”

The global economic outlook for 2003 is challenged by geo-political uncertainties, questions over the strength of growth in US and Europe and the SARS virus that originated in Asia. All things considered, the consensus is one of cautious optimism that the GDP of Asian economies will expand moderately in 2003, by between 3% and 5%. Rodamco Asia believes this scenario is realistic and positive for the steady development of property markets in the region.

In the coming year, Rodamco Asia will continue to focus on investment opportunities in North Asia, while remaining highly selective towards opportunities in the rest of Asia, as we seek to expand the Company. This will be achieved by investing the proceeds from recent divestments and increasing the Company’s leverage, which stood at 35.3% in February 2003.

Looking ahead, rental income in FY2003/2004 will benefit from the full-year contribution from Fraser Suites and the Somerset Grand Shanghai, and after August 2003 from the opening of Rodamco Plaza.

Source: Rodamco Asia

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