Listed retail specialist Corio posted a net loss of € 106.4 mln in the first six months of 2013 largely as a result of writedowns on shopping centres earmarked for disposal.
Listed retail specialist Corio posted a net loss of € 106.4 mln in the first six months of 2013 largely as a result of writedowns on shopping centres earmarked for disposal.
This compares with a net profit of €11.7 mln in the first six months of 2012.
The company, which announced its first-half results on Wednesday evening, described 2013 as a transitional year in which the focus would continue to be on operational improvements and turning its shopping centres into Favourite Meeting Places.
As at 30 June, 83% of Corio’s portfolio consisted of Favourite Meeting Places with Traditional Shopping Centres (TRC) marked for disposal accounting for the remainder.
The value of the entire portfolio increased by € 206.6 mln to € 7.3 bn in H1 2013 after accounting for writedowns, acquisitions and investments (€ 464.1 mln) and disposals (€69.3 mln).
Corio aims to sell off its non-strategic shopping centres by 2015. The company’s portfolio is currently spread across the Netherlands (26%), France (24%), Italy (18%), Germany (15%), Spain and Portugal (9%) and Turkey (7%).
Net rental income for Corio’s Favourite Meeting Places rose 4.3% to €176.4 mln from €169.1 mln a year earlier. For the overall net rental income, disposals of TRCs had a negative effect of €10.7 mln.
Direct returns (excluding shopping centres in which Corio has no controlling interest) declined slightly to €130.6 mln from €136.2 mln in the first half of 2012. Indirect returns fell further into the red, coming out at a negative €239 mln against €123.9 mln in the year-earlier period largely as a result of writedowns on the portfolio of €185.4 mln.
Corio expects direct returns for full-year 2013 to come out at between €254 mln and €260 mln, or €2.61-€ 2.66 per share.
Corio said it had sold six assets to different buyers for a total €140 mln by 7 August.
