Dutch retail property group Corio reported a higher-than-expected second-quarter operting profit of EUR 52 mln. The company expects full-year operating profit to increase modestly from the EUR 204 mln reported at end-2008, Reuters reported, citing lower financing expenses and acquisitions.
Dutch retail property group Corio reported a higher-than-expected second-quarter operting profit of EUR 52 mln. The company expects full-year operating profit to increase modestly from the EUR 204 mln reported at end-2008, Reuters reported, citing lower financing expenses and acquisitions.
Corio said its indirect result, which represents property writedowns and value changes on some other items, came to a loss of EUR 143.4 mln. Corio has suffered from the slump in property prices but has seen no need for a rights issue or property sale to support its balance sheet. It has a relatively low leverage level, at 40.4% of assets, and limited exposure to the UK and Spanish markets, Europe's worst-hit property markets.
The average vacancy rate fell to 96.6% from 97.8% a year ago. The value of the portfolio (including participations and minoirty stakes) fell to EUR 5.9 bn from EUR 6 bn at end-2008. The pipeline fell by EUR 248 mln to EUR 2.09 bn.
Corio also said it had concluded a EUR 200 mln, seven-year inflation-linked loan with APG, the Dutch asset manager of Dutch pension fund ABP.
