Corio sees direct result drop 4.6% in Q1

Amsterdam-listed retail specialist Corio reported that its direct result fell 4.6% year-on-year in the first quarter to EUR 49.7 mln. The decline primarily reflected the sale of the Dutch offices and industrial portfolio effected 30 September 2008. Net rental income rose 12.2% to EUR 82,8 mln compared with the year-earlier period.

The indirect result came to - EUR 154.8 mln reflecting a devaluation of the total portfolio to EUR 5.99 bn from EUR 6.03 bn at end-2008. This compares to a positive result of EUR 10.2 mln last year.

The occupancy level of the portfolio fell slightly to 96.5% from 97.4% in Q4, reflecting a deterioration in the Spanish market. The Spanish portfolio was also hit hardest by devaluations. Retail accounts for 93% of the total portfolio.

In a press statement, Corio pointed out that the economy continued to deteriorate in Q1 2009. Figures released by CBS, the Dutch statistics bureau, for Q1 2009 signalled the sharpest drop in retail spend ever of 4.8%. While the food sector remained flat (with supermarkets still showing growth), the non-food part fell by 7%. Corio continued to see rental growth in its main markets, but this was insufficient to stem a further devaluation of the portfolio, due to rising yields in the property market. Net rental income growth (on a like-for-like basis) in France and Italy remains strong, whilst the Netherlands is stable, the company said.

In 2008, the Netherlands became Corio's second-largest market, accounting for 33% of the total portfolio. This compares to a share of 42% in 2007. France is now its biggest market with a share of 34% (27%), followed by Italy 19% , Spain 8% and Turkey 6%.