NEW DUTCH ACCOUNTING PRINCIPLES 2004
The 2004 net profit definition has been adapted following the recent changes in Dutch accounting principles. As a result, net profit now includes revaluation results and 100% of the management costs (previously 70%). Revaluation results after tax comprise realized results on disposals, unrealized revaluation results on both the standing portfolio of property investments and pipeline project investments, and deferred tax on the revaluation. Previously, net profit reflected direct result, while revaluation results were part of movements in shareholders' equity. Direct result after tax, as currently presented, comprises of net rental income minus net financing costs, 100% of management costs and income tax. The comparative 2003 figures have been adjusted in accordance with the new Dutch accounting principles.
Rotterdam, 28 February 2005 - Rodamco Europe, the largest publicly listed property investment and management company in the retail sector in Europe, achieved solid financial results in 2004. In line with expectations, direct result after tax increased 7.4% to €321 million. This increase is due to 9.5% growth in gross rental income, primarily from acquisitions and pipeline projects that came into operation. Direct result after tax per share increased to €3.58 per share. Net Asset Value per share increased 3.7% to €50.12. A total dividend of €3.05 (2003: €2.85) is proposed for 2004, of which €1.15 (2003: €1.10) has already been paid as an interim dividend. The positive trend in revaluation of the Rodamco Europe portfolio continued, resulting in a revaluation result before tax of €107 million.
CEO Maarten Hulshoff: "Rodamco Europe continues to produce solid and consistent growth despite challenging market conditions in our key markets. In a year in which the property investment market in general and the retail sector in particular experienced strong investor demand, we have seen that competition for attractive properties has grown. In this environment, Rodamco Europe has pursued its strategy of cherry-picking, focusing on selective investments of high quality retail properties in dominant locations throughout its key markets. The quality of our investment portfolio ensures that occupancy levels remain high and that rental income grows, even at a time when consumer confidence is low and negatively affecting retailers. Although we have a sound financial structure and ample resources available, we will continue to be very selective in 2005 and remain focused on retail properties in dominant positions in our home markets - The Netherlands, Sweden, France and Spain, and our markets in Central Europe. Overall, we remain confident for the future, in which Rodamco Europe stands to benefit from its €1 bn pipeline projects largely coming into operation during 2005 and 2006."
