Rodamco Europe saw its direct result after tax (rental income minus costs) rise by 2.6% to EUR 96.1 mln in the first quarter of 2007. Net profit per share surged 58% thanks to a 92% increase in the indirect result, reflecting a higher valuation of the portfolio. For full-year 2007, Rodamco Europe expects to see its direct result rise by 3%, the company said during the presentation of its first-quarter results on Tuesday. This forecast does not take into account the impact of the planned merger with Unibail, the associated expenses of which are estimated at EUR 25 mln. These will be charged in the second quarter of 2007, the company said.
Rodamco Europe saw its direct result after tax (rental income minus costs) rise by 2.6% to EUR 96.1 mln in the first quarter of 2007. Net profit per share surged 58% thanks to a 92% increase in the indirect result, reflecting a higher valuation of the portfolio. For full-year 2007, Rodamco Europe expects to see its direct result rise by 3%, the company said during the presentation of its first-quarter results on Tuesday. This forecast does not take into account the impact of the planned merger with Unibail, the associated expenses of which are estimated at EUR 25 mln. These will be charged in the second quarter of 2007, the company said.
Rodamco Europe reiterated that the merged group, expected to be launched by end-June, will focus mainly on shopping centres. Retail will account for for about 70% of the assets, down from 94% at present. With assets valued at almost EUR 22 bn and a portfolio of 95 shopping centres across 14 European countries, the new group will be retail market leader in France, the Netherlands, Spain and Sweden. 'We are, more than ever, ready for the proposed merger with Unibail,' said ceo Maarten Hulshoff.
Rodamco Europe registered 7.2% like-for-like rental growth in the first three months compared to the same period in 2006. Net rental income rose by 8.5% to EUR 147.8 mln. The value of Rodamco Europe’s assets increased by EUR 297 mln to EUR 11 bn. The total pipeline stands at about 1 million m2, with committed and uncommitted projects accounting for about 650,000 m2 or about EUR 2.7 bn. Overall occupancy fell slightly from 98.4% at year-end 2006 to 98.3% in the first quarter, with retail occupancy steady at 98.9%.
Rodamco said it has not yet received its 50% stake in the retail section of the Zlote Tarasy mall in Warsaw and added that developer ING is currently in talks with the municipality of Warsaw to find a solution for the transfer. The city council, which currently owns the stake, wants to await the outcome of an assessment of the project before determining the sale price.
