Rodamco Europe raise full year 2004 forecast for direct result after tax to an increase of approx. 7

Rodamco Europe achieved better than expected financial results in the first nine months of 2004. Rodamco Europe reported a 42.6% year-on-year (YoY) rise in net profits to €298.6 million. This growth
was driven by a 9.1% YoY growth in direct result after tax and a high revaluation result of €65.4 million, which is reported as part of net profit under the new Dutch accounting rules.

The trend towards positive revaluation of the Rodamco Europe portfolio continued, benefiting from inflation adjusted rent renewals and high demand from investors.
Direct result after tax was positively effected by a 10.1% gross rental income growth primarily from acquisitions and pipeline projects coming into operation. Direct result after tax per share increased 9.1% to €2.74 per share compared to €2.51 in the same period 2003. NAV per share increased to € 49.94 compared to €49.03 at the same date in 2003.

CEO Maarten Hulshoff: “Rodamco Europe’s strategy to focus on top quality retail in dominant locations in its key markets, whilst further emphasizing the management of our retail properties, continues to contribute to solid and positive results. This, coupled with the high occupancy rates and strong investor demand in the retail property sector, has led to further upward revisions in revaluations. These results also saw the contribution of Rodamco Europe’s pipeline projects Piazza Eindhoven and Carnisseveste in the Netherlands, which came into operation in the course of the 9
months under review. Rodamco Europe further stands to benefit from around €450 million in pipeline projects, which should come into operation during 2005 (total pipeline €1 billion.).”

Rodamco Europe expects an approximately 7% higher direct result after tax, (this figure
excludes the revaluation result and deferred tax thereon) over the full year 2004.
Comparative to previous quarters Q4 is expected to show lower YoY acquisition growth,
somewhat higher operating costs due to the seasonal effects in various countries and a small pick-up of interest as a result of a higher fixed portion of debt. The pipeline projects of around €450 million, which are expected to come into operation during 2005, should continue to strengthen Rodamco Europe’s asset value and gross rental income.
The above 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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