Rodamco Europe achieved a net profit of EUR 141 million in first 6 months of 2002

In the first six months of 2002, Rodamco Europe realised a net profit of €141 million. The earnings per share amounted to €1.82 (2001: €1.81). This includes interest income of €5 million on the sale value of RREEF US for the period 31 December 2001 to 23 April 2002.

On a comparable basis, corrected for the net result of RoProperty in 2001 (€10 million), the interest received on the proceeds of the RREEF US transaction (€5 million), and after correction for missed interest, this results in an increase in net profit of 3%. The earnings per share for the core activities amounted to €1.78 (2001: e 1.73).

The increase in net profit was due to:
- A rise in net rental income of 3%, from €192 million to €198 million. This was mostly due to various projects becoming let during 2001, including Arninge shopping centre in Stockholm, Zeilgalerie in Frankfurt, Bonaire shopping centre in Valencia and Batavia Stad Outlet shopping centre in Lelystad. Other factors positively influencing net rental income were the indexation of existing rental contracts and the conclusion of new rental agreements at higher rents. The rise in net rental income was however somewhat offset by the accelerated implementation of the Company’s divestment programme in the second half of 2001, which mainly concerned offices in the Netherlands and Spain, and the sale of two office buildings in Spain and France in the first half of 2002.

- Occupancy remained stable at 96.1%, compared to the first quarter of 2002 and the fourth quarter of 2001. Occupancy in the retail sector stood at 96.4%, and in the office sector 94.5%.

- Operating costs rose 10%, to €33 million. The increase was due partly to projects becoming let during 2001 and partly to certain favourable incidental effects in 2001. If we would have excluded the one-off items, the increase was in line with the growth in rental income.

- The contribution from Cofinimmo remained stable at €2 million.

Total interest expenses declined slightly from €64 million to €63 million. This was the net effect of an on average slightly lower loan portfolio in the first six months of 2002, and an unchanged average interest rate compared to the first six months of 2001.

- As in prior years, 70% of the management costs has been charged to the result and 30% to the revaluation reserve. In the current year, management costs included in the calculation of the result amounted to €10 million, i.e. 46 basis points of the total assets. The management costs are expected to represent 48 basis points of total assets for the year as a whole.

Total result
The total result for the period was €184 million, an increase of 5% compared to last year (€176 million). In addition to net profit, the total result was the culmination of the following developments:

- The revaluation was distributed as follows: the Netherlands €20 million (0.8%), Scandinavia €-1 million (-0.1%), France €39 million (3.9%), Spain €4 million (0.5%), Ukraine €-17 million (-46.6%) and other countries €3 million (0.5%).

In view of a continuing lack of liquidity in the investment market in Ukraine, the office portfolio in Kiev has not been revalued since its acquisition. Although the offices and tenants are of good quality and vacancies are limited, rental levels have been depressed in the last few years. As a result the value of the portfolio in Ukraine has downwardly been adjusted by e 17 million.

- The currency result for the period was €6 million. This was mostly due to the appreciation of the Swedish krona (€7 million) and the fall in the value of the US dollar (€-1 million).

- The provision for deferred tax liabilities was increased by €7 million to €134 million.

Balance sheet
ShareholdersÂ'Â' equity increased by 5.3% to €47.52 per share (as at 31/12/2001: €45.14).

Rodamco Europe started the 2002 financial year with €2,425 million in interest-bearing loans. As of 30 June 2002, this amount stands at €2,450 million, which is 38% of the balance sheet total. The rise was mostl

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