Eurocommercial sees profits rise 1.7%

European listed retail specialist Eurocommercial has seen its earnings increase by 1.7% to €83 mln in the year to 30 June 2014, versus €81.5 mln in the previous year.

Eurocommercial, which focuses on mid-size shopping centres in France, Italy and Sweden, said that while 'property markets are strong, very low inflation has diminished indexed rental growth'.

The company posted a 1.5% increase in like-for-like rental income to €175 mln over the past 12 months. The performance was driven by the Swedish assets which posted a 2.8% rise, followed by France (up 1.6%), and Italy (up 0.8%).

'Inflation is practically non-existent in our markets, which, because all rents are indexed, means that overall rental growth will continue to be quite modest for the next year,' the company added in a statement.

Property values across the portfolio increased by 1.3% over the same period with vacancies remaining below 1%.

Adjusted net asset value was €36.74 at 30 June 2014, representing an increase of 0.7% compared to €36.47 at 30 June 2013.