Improved occupancy and stable cash flow returns from retail properties.
Highlights 2003
- Net profits up 7.7% to € 309 million (2002: € 287 million);
- EPS of € 3.45 (2002: € 3.571 / € 3.442);
- Property investments increased 10.1% to € 7,078 million (2002: € 6,431 million);
- Exposure to retail sector increased to 84% (2002: 80%)
- Net rental income up 3.9% to € 423 million (2002: € 407 million);
- Occupancy rates further improved to 97.3 % (2002: 96.2%);
- Proposed dividend per share to increase to € 2.85 (2002: € 2.80);
- Total performance of € 253 million (2002: € 378 million), or € 2.82 per share (2002:
€4.21), down mainly due to negative revaluation primarily in offices;
- Net profit growth forecast for full year 2004 approximately 5%.
CEO Maarten Hulshoff: 'Rodamco Europe continued to realise stable growth in net profit and net rental income in line with expectations, despite the unstable general economic environment in 2003. The year 2003 proved to be a remarkable year for Rodamco Europe, in which the company saw the Euronext MidKap listing as well as the inclusion in the MSCI World Index and the successful issue of its first € 500 million Eurobond.
With its quality assets, geographic and retail sector focus Rodamco Europe is working towards further enhancing its position as the leading investor and manager of prime retail properties in its chosen home markets. In 2003 the company continued this strategy by investing € 604 million in prime retail properties and divesting € 240 million, of which €126 million in the office sector, increasing the exposure to the retail sector to 84%. In this respect the recent acquisition of the Donauzentrum with its strong tenant mix and within an affluent catchment area in Vienna comprises a good strategic fit within Rodamco Europe´s existing retail portfolio.
Rodamco Europe aims to provide stable cash flow returns based on the quality of the underlying assets. The 2003 results proved to be successful in that respect, however, it does not mean Rodamco Europe is immune to the European economic downturn, resulting in downward pressure on revaluation.'
