Dutch listed retail specialist Corio saw net profit plunge 90% to EUR 11.7 mln in the first half of 2012 from EUR 122.8 mln in the year-earlier period. The sharp decline reflected a hefty writedown on the company's activities in Spain and Germany.

Dutch listed retail specialist Corio saw net profit plunge 90% to EUR 11.7 mln in the first half of 2012 from EUR 122.8 mln in the year-earlier period. The sharp decline reflected a hefty writedown on the company's activities in Spain and Germany.

The direct result was steady at EUR 136.3 mln compared to EUR 133.8 mln a year ago as like-for-like net rental growth eased to 0.8% in the second quarter compared to 1.4% in the first three months of the year.

In total, the Amsterdam-listed company booked a writedown of EUR 104.3 mln over the period, equal to 1.5% of the total portfolio. The writedown pushed the indirect result to a negative EUR 123.9 mln compared to -EUR 5 mln in the year-earlier period.

Corio wrote down EUR 26 mln on activities in Spain and Portugal - or 3.5% - and another EUR 51.7 mln - or 8.7% - on its Dresden mall in Germany. The company also booked a writedown of EUR 8.4 mln on its offices and retail assets in the Netherlands - or 0.4% of the portfolio. By contrast, the company's shopping centres in France generated an upward valuation but this was partially offset by a EUR 14.8 mln writedown on the office portfolio.

Corio reported that visitor numbers and tenant turnover were steady on a like-for-like basis in the first six months, although retailers are putting the brakes on their expansion plans. Nevertheless, occupancy levels edged up to 96.6% from 95.9% a year ago.

Earlier Corio announced plans to sell EUR 670 mln of properties in 2012, mainly in the Netherlands and France. To date, Corio has signed and transferred EUR 203 mln, while an additional EUR 64 mln has been signed but not transferred yet and another EUR169 mln is in an advanced stage of selling.

For the full year, the company is forecasting a total direct result that is marginally lower compared to the EUR 267 mln booked in 2011.

The loan to value ratio edged up slightly to 41.7%, from 41% at end 2011. The value of the property portfolio stood at EUR 7.2 bn at end June 2012 compared to EUR 7.4 bn at end-2011.