Rodamco Europe: Net profit rises 13.5% to € 184.4 million in first six months 2004

Rodamco Europe continued its stable trend in financial results in the first half of 2004. Rodamco Europe reported a 13.5% year-on-year (YoY) rise in H1 2004 net profits to € 184.4 million compared to € 162.5 million in the first half of 2003.

The net profit figure has been compiled according to the new Dutch accounting standards, including revaluation results and 100% of management costs. The net profit comprises a 7.1% year-on-year (YoY) rise in direct result after tax to € 160.8 million, (which includes 100% management costs, but excludes revaluation result after tax), the main contributor being a YoY increase of 9.5% in net rental income. The revaluation after tax was € 23.6 million. Direct result increased to € 1.79 for the first half-year of 2004, which compares to € 1.67 in the same period last year.

Net Asset Value per share (before interim dividend 2004) amounted to € 48.59 as of 30 June 2004. In the first half of 2004, Rodamco Europe divested in offices and industrials (in Spain) for an amount of € 82 million and invested in retail for an amount of € 27 million, further strengthening Rodamco Europe’s high quality retail portfolio.

CEO Maarten Hulshoff: “In the first half of 2004 Rodamco Europe continued its stable growth in both rental income as well as direct result. The majority of the growth was driven by acquisitions made in 2003. The company further experienced a shift towards higher property values in its portfolio, reflecting investors’ continuing appetite for retail properties as well as some positive signs in consumer confidence in our home countries. Rodamco Europe will continue to focus on top quality retail in dominant locations in its key markets, whilst further emphasizing active retail management of its retail properties. Retail properties, mostly shopping centres, now make up 86% of the total € 7.2 billion property portfolio.
As previously announced, Rodamco Europe is further expanding its business risk management activities in the unstable economic environment. Coupled with the small, albeit noticeable shift towards increased consumer confidence in its home markets, Rodamco Europe is confident that it will reach its growth target for 2004. ”

The management board maintains its forecast for 2004 of approximately 5% growth in direct result after tax. For the indirect result (revaluation) after tax we expect a positive result for full year 2004. The outlook is based on the current property portfolio and disregards the potential effects of acquisitions and divestments and the potential effects of significant changes in exchange rates, interest rates and the economic situation.

Source: Rodamco Europe

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