CORIO BUSINESS INDICATORS
· Footfall strong with 1.0% up and stable tenant sales
OPERATIONAL PERFORMANCE
· Direct result € 122.6 m or € 1.24 per share
· Net rental income like-for-like number continues an upward trend; 0.6% negative for H1 2014 (H1 2013: 4.4% negative)
· Average occupancy stable at 94.9% (2013: 95.0%)
· Efficiency improved by reducing administrative expenses €7.9 m from € 22.7 m to € 14.8 m supported by a few one-offs in charges (down to 6.3% of Gross Theoretical Rental Income)
· Re-letting and renewal of portfolio 2.5% negative, improved from 8.2% negative in H1 2013
· Overall, the portfolio showed further signs of improvement compared to previous periods reflecting the successful implementation of our refined strategy as announced in December 2012
FINANCING
· Financing costs decreased to 3.5% in Q2 2014 (Q2 2013: 3.7%)
· Solid headroom of € 606 m
· Leverage at 42.2% as per 30 June 2014, (31 December 2013: 43.7%)
PORTFOLIO
· Valuations (including EAI and turnkey projects) slightly down with € 51.5 m or 0.7% negative.
· Successful opening of Nave de Vero near Venice (€ 188.8 m) with a 98% occupancy rate, now valued at € 200.3 m
· Multiple leasing and re-tenanting activities expanding with leading brands like Inditex, H&M, Primark and Apple, throughout the portfolio
· Following the progress made on the disposal program, the portfolio now consists almost entirely of core assets in strategic locations
· Asset by asset business plans to set the stage for budget cycle and capital recycling
DISPOSAL PROGRAM
· As per 6 August 2014, 31 assets were sold to a number of buyers since early 2013 for total proceeds of € 638 m
· Sold and transferred in H1 2014: € 397.2 m
· Disposal program ahead of schedule
OUTLOOK
· Corio expects to arrive at a direct result between € 227 m and € 233 m or between € 2.28 and € 2.34 on a per share basis for 2014
EVENTS AFTER REPORTING DATE
· Klépierre and Corio announced on 29 July 2014 that they have reached conditional agreement to create the leading pure play retail property company in Europe. For more details we refer to our website (www.corio-eu.com:
http://www.corio-eu.com)
Gerard Groener:
'Looking back at Corio's operational performance during the first half of 2014, I'm pleased to be able to conclude that the trend of quarterly improvements of our operating metrics has continued. Both our kpi's such as footfall and sales as well as financial metrics such as re-letting & renewals and the like-for-like performance showed an upward trend. And we expect this trend to continue. In an ongoing challenging market place these are encouraging signs, clearly indicating that Corio is on the right track. In the midst of this upward movement we have the intention to team up with Klépierre. An exciting step as we feel that the combination can accelerate this positive trend. Both companies firmly believe that all our stakeholders will benefit from the proposed transaction. Size is becoming an increasingly decisive factor in the retail property market in order to create attractive shareholder returns over the long term and being able to compete for larger high-performing retail properties. The combined group is geographically complementary and will benefit from significant scale advantages, synergies and a solid financial position. The combination will be able to offer 180-plus locations to the leading retail brands in order to expand their business. I am confident that the combination will play an important role in the further consolidation of the European real estate investment industry. While working on the next steps of this process together with Klépierre, the focus of our teams will
be on the ongoing improvement of our businesses in line with our strategy, aiming for a continuation of the upward trend we have seen during the first half of the year.'
Gerard Groener (CEO) and Ben van der Klift (CFO) will present the results via an audiocast and conference call followed by Q&A on Thursday 7 August 2014 at 10.00 CET.
You can listen to the call and ask questions by dialling: +31 (0)20 7965 008 (the Netherlands) or +44 (0)20 7162 0077 (UK), Conference ID: 946529 or listen to the call via: http://corio.dutchview.nl/corio20140807-q2/:
http://corio.dutchview.nl/corio20140807-q2/. You can download the presentation on our website (www.corio-eu.com:
http://www.corio-eu.com => Investor Relations => Presentations)
http://hugin.info/134201/R/1846998/644029.pdf
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Corio NV via Globenewswire
