Dutch retail specialist Corio has seen rental income hold steady despite a slight decline in both retail sales and footfall.
Dutch retail specialist Corio has seen rental income hold steady despite a slight decline in both retail sales and footfall.
Net rental income from the developer’s international retail portfolio for the first three months of the year was €106.2 mln, virtually unchanged from the €106.8 mln recorded in the first quarter of 2012.
Within Corio’s flagship ‘Favourite Meeting Places’ (FMP) portfolio, gross rental income increased by 1.2% on a year-on-year basis. Gross rental income from the developer’s other retail outlets fell by 2.9% year-on-year, resulting in total like-for-like growth of 0.3%.
The stable rental figures come amid a challenging retail environment. Footfall within the FMP portfolio was largely stable, falling 1.5% year-on-year. Average retail sales within the FMP portfolio fell 4.7% compared to Q1 2012, however, reflecting the decline in consumer spending across Europe.
The results are in line with Corio’s 2013 objectives of boosting net rental income across the FMP portfolio by 4%-6% and starting to divest the €1.4 bn of other retail assets it holds.
Commenting on the figures, Corio CEO Gerard Groener said: ‘The ongoing focus on the development of our FMP portfolio, and our commitment to further improve [operational] efficiency, gives me confidence that we are in the right place to remain well on track even against this backdrop of negative retail spend throughout our home markets.’
