Corio 1H net profit down 80% despite increased rental income

Dutch retail property specialist Corio said its net profit in the first six months of 2008 fell to EUR 69.8 mln from EUR 339.8 mln in the like, year-earlier period, as a 16.8% increase in net rental income was offset by a negative revaluation result and higher financing costs.

Corio said its direct result, which reflects rental income minus expenses, increased 6.2% to EUR 104.4mln in the period. Its indirect result, which mainly reflects realised and unrealised portfolio value increases, instead fell to a negative EUR 34.6mln from last year’s positive EUR 241.5 mln. Net rental income instead increased by 16.8% to EUR 143.7 mln.

For the full-year, Corio said it expects net rental income from continuing operations to increase by about 14% while financing expenses are seen increasing by EUR 27 mln after having increased by EUR 15 mln in the first half of 2008.