Strong markets for retail properties resulted in an independent valuation uplift of 10%. After allowing for appropriately increased provisions for future capital gains taxes net asset value per depositary receipt rose by 11.6% to € 25.84. Higher net income resulted in the proposed dividend increase to € 1.55 per depositary receipt.
|
DIRECT INVESTMENT RESULT
increased by 9% to € 48.9m compared to the previous year |
DIRECT INVESTMENT RESULT PER DEPOSITARY RECEIPT
increased by 3.3% to € 1.55 compared to the previous year |
|
|
|
|
SHAREHOLDERS' EQUITY
increased by 11% to € 890m since 31 March 2005 and the subsequent 19 April 2005 share placement
|
NET ASSET VALUE PER DEPOSITARY RECEIPT
increased by 11.6% to € 25.84 since 30 June 2004 |
|
TOTAL ASSETS
increased by 13% to € 1,600m compared to the previous year |
DIVIDEND PER DEPOSITARY RECEIPT
increased by 3.3% to € 1.55 compared to the previous year |
Direct Investment Result
The board of Eurocommercial Properties N.V. announced today that the Company realised a Direct Investment Result of € 48.9 million for the financial year ended 30 June 2005, which represents an increase of approximately 9% over the € 44.9 million Direct Investment Result for last year. The board therefore proposes increasing the Company's annual dividend by 3.3% to € 1.55 per depositary receipt (10 ordinary shares) from € 1.50 in 2004. Shareholders will again be offered the option of taking new shares from the Company's share premium reserve if they wish, instead of the cash dividend. The price for these shares will be announced on 28 October 2005.
Net asset value
Net asset value before income appropriation improved by 11.6% to € 25.84 per depositary receipt since 30 June 2004, mainly as a result of an increase of independent property valuations amounting to € 140 million (10.3%) and after allowing for an appropriate increase in the provision for potential future capital gains taxes. An amount of € 19.6 million has been released from this provision to pay French exit tax at the rate of 16.5%. An amount of € 12.5 million of the increased property values has also been used to fund this exit tax, which is in total an amount of € 32.1 million payable in four annual instalments to allow the Company to enter into the French tax exempt regime for listed property investment companies (so called SIIC). The net asset value in June 2004 was € 23.16 per depositary receipt.
Property performance
The Company's property portfolio performed well over the year with a total return of 16.8%. The overall property occupancy rate is over 99%. Overall retail sales in the Company's shopping centres (excluding hypermarkets) were up 3.7% for the year to 30 June 2005 but individual centres have shown increases of up to 18.3%. The average growth for France was 3.3%, for Italy 3.5% and for Sweden 5.0%. These were pleasing performances when measured against relatively weak overall economic growth and subdued inflation in these countries.
The Company's independently assessed property values increased 10.3% overall compared with bookvalues.
|
Individual country percentages were: |
Sector percentages were: | ||
|
France |
+10.3% |
Retail |
+11.8% |
|
Italy |
+10.5% |
Offices |
-0.1% |
|
The Netherlands |
-2.4% |
Warehouse |
-5.3% |
|
Sweden |
+15.8% |
|
|
Market commentary
Low interest rates and uncertain equity markets have led to greatly increased demand for property investments both direct and indirect.
Overall, net yields for the best performing sector - retail, have dropped by at least fifty basis points to an average of about 5.5% for prime properties in the major western European markets.
Whilst rental growth has been limited or non-existent for offices and warehouses, shop rents in France, Italy and Sweden have continued to firm, reflecting sustained consumer expenditure in these countries.
Future investments
ECP has concentrated for some time on shopping centres in France and Italy and three years ago started an investment programme in Sweden where the Company now has a critical mass of seven centres and is negotiating for more, following excellent investment performance.
The Company has also for some time been investigating the markets of Spain, Belgium and Germany and whilst future investments in Spain and Belgium are not ruled out, ECP is currently focussing its studies on western Germany where newer centres offer turnover rents as in France, Italy and Sweden.
For additional information please contact:
|
Jeremy Lewis |
+ 31 20 530 6030 |
|
Evert Jan van Garderen |
+ 31 20 530 6030 |
|
Peter Mills |
+ 44 20 7925 7860 |
|
Tom Newton |
+ 44 20 7925 7860 |
|
Tim Santini |
+ 44 20 7925 7860 |
Website: www.eurocommercialproperties.com
Key Financial Information (consolidated before income appropriation)
|
(EUR '000) |
Twelve
months ended
30-06-05 |
*
Twelve
months ended
30-06-04 |
Fourth quarter ended
30-06-05 |
Fourth
quarter ended
30-06-04 |
| ||
|
|
|
|
|
|
| ||
|
Profit and loss account |
|
|
|
|
| ||
|
Property income |
96,889 |
93,236 |
25,338 |
25,046 |
| ||
|
Property expenses |
(15,672) |
(16,709) |
(4,477) |
(4,740) |
| ||
|
|
----------- |
----------- |
---------- |
---------- |
| ||
|
Net property income |
81,217 |
76,527 |
20,861 |
20,306 |
| ||
|
Other income |
143 |
840 |
40 |
840 |
| ||
|
|
----------- |
----------- |
---------- |
---------- |
| ||
|
Total income |
81,360 |
77,367 |
20,901 |
21,146 |
| ||
|
|
|
|
|
|
| ||
|
Investments revaluation |
135,666 |
30,131 |
135,595 |
30,608 |
| ||
|
|
----------- |
----------- |
----------- |
---------- |
| ||
|
Total revenue |
217,026 |
107,498 |
156,496 |
51,754 |
| ||
|
|
|
|
|
|
| ||
|
Net financing costs |
(24,520) |
(23,154) |
(5,734) |
(6,156) |
| ||
|
Company expenses |
(7,746) |
(6,986) |
(3,091) |
(2,728) |
| ||
|
Financial and investment expenses |
(983) |
(489) |
(935) |
(205) |
| ||
|
|
----------- |
----------- |
----------- |
----------- |
| ||
|
Total expenses |
(33,249) |
(30,629) |
(9,760) |
(9,089) |
| ||
|
|
|
|
|
|
| ||
|
Net revenue before taxation |
183,777 |
76,869 |
146,736 |
42,665 |
| ||
|
Corporate income tax |
(186) |
(2,355) |
148 |
(1,081) |
| ||
|
Deferred tax |
(54,814) |
(11,976) |
(54,853) |
(12,295) |
| ||
|
|
----------- |
------------ |
----------- |
----------- |
| ||
|
Profit after taxation |
128,777 |
62,538 |
92,031 |
29,289 |
| ||
|
|
|
|
|
| |||
|
|
|
|
|
| |||
|
Investments revaluation |
135,666 |
30,131 |
135,595 |
30,608 |
| ||
|
Financial and investments expenses |
(983) |
(489) |
(935) |
(205) |
| ||
|
Deferred tax |
(54,814) |
(11,976) |
(54,853) |
(12,295) |
| ||
|
|
----------- |
----------- |
----------- |
----------- |
| ||
|
Indirect investment result |
79,869 |
17,666 |
79,807 |
18,108 |
| ||
|
|
|
|
|
|
| ||
|
Total investment result |
128,777 |
62,538 |
92,031 |
29,289 |
| ||
|
-/- Indirect investment result |
(79,869) |
(17,666) |
(79,807) |
(18,108) |
| ||
|
|
----------- |
----------- |
----------- |
----------- |
| ||
|
Direct investment result |
48,908 |
44,872 |
12,224 |
11,181 |
| ||
* The Company has adopted the changes in Dutch accounting principles so that the profit and loss account includes realised and unrealised revaluation results and movements in provisions, which were previously part of movements in equity. These ex balance sheet items are now separately shown as "Indirect Investment Result". "Direct Investment Result" therefore is the equivalent of Profit after taxation under the old Dutch accounting principles, with which a direct comparison can be made. The comparative figures have been adjusted accordingly.
|
(EUR '000) |
Twelve
months ended
30-06-05 |
*
Twelve
months ended
30-06-04 |
|
Cash flow statement |
|
|
|
|
|
|
|
Cash flow from investment activities |
|
|
|
Profit after taxation |
128,777 |
62,538 |
|
Investments revaluation |
(135,666) |
(30,131) |
|
Deferred tax |
54,814 |
11,976 |
|
Additions to provision for pensions |
132 |
180 |
|
Property investments |
(56,606) |
(155,326) |
|
Movement tangible fixed assets |
(406) |
(1) |
|
Increase in receivables |
(1,752) |
(5,070) |
|
Decrease/increase in creditors |
(33,810) |
8,086 |
|
Goodwill |
- |
1,552 |
|
|
------------ |
----------- |
|
|
(44,517) |
(106,196) |
|
|
|
|
|
Cash flow from finance activities |
|
|
|
Proceeds issued shares |
78,516 |
6,265 |
|
Borrowings added |
161,115 |
145,992 |
|
Repayment of borrowings |
(182,214) |
(62,277) |
|
Dividends paid |
(24,282) |
(22,155) |
|
|
----------- |
------------ |
|
|
33,135 |
67,825 |
|
|
|
|
|
Net cash flow |
(11,382) |
(38,371) |
|
Currency differences on cash and deposits |
323 |
148 |
|
|
|
|
|
Decrease in cash and deposits |
(11,059) |
(38,223) |
|
Cash and deposits at beginning of year |
84,070 |
122,293 |
|
|
----------- |
---------- |
|
Cash and deposits at end of year |
73,011 |
84,070 |
* adjusted for comparison
Balance sheet (before income appropriation)
(EUR '000) |
30-06-05 |
*
30-06-04 |
|
|
|
|
|
Property investments |
1,498,081 |
1,306,304 |
|
Cash and deposits |
73,011 |
84,070 |
|
Receivables |
28,121 |
25,984 |
|
Other assets |
859 |
453 |
|
|
-------------- |
-------------- |
|
Total assets |
1,600,072 |
1,416,811 |
|
|
|
|
|
Creditors (current liabilities) |
39,156 |
64,320 |
|
Borrowings (current liabilities) |
141,567 |
98,579 |
|
Creditors (noncurrent liabilities) |
35,257 |
10,523 |
|
Borrowings (noncurrent liabilities) |
425,511 |
491,788 |
|
Provisions |
68,146 |
44,177 |
|
|
------------ |
------------ |
|
Total liabilities |
709,637 |
709,387 |
|
|
|
|
|
Shareholders' equity |
890,435 |
707,424 |
|
Shareholders' equity reconciliation (EUR '000) |
|
|
|
Book value at beginning of period |
707,424 |
659,224 |
|
Profit after taxation |
128,777 |
62,538 |
|
Proceeds issued shares |
78,516 |
6,265 |
|
Goodwill |
- |
1,552 |
|
Dividends paid |
(24,282) |
(22,155) |
|
|
----------- |
----------- |
|
Book value at end of period |
890,435 |
707,424 |
|
Number of depositary receipts representing
shares in issue |
34,462,476 |
30,540,500 |
|
|
|
|
|
Per depositary receipt information ** (EUR) |
|
|
|
Direct investment result |
1.55 |
1.50 |
|
Indirect investment result |
2.53 |
0.59 |
|
Dividend |
1.55 |
1.50 |
|
Net asset value |
25.84 |
23.16 |
|
|
|
|
|
Stock market prices (EUR; per depositary receipt) |
30.10 |
24.95 |
|
|
|
|
|
Property information: sector spread (%) |
|
|
|
Retail |
90 |
88 |
|
Office |
7 |
9 |
|
Warehouse |
3 |
3 |
|
|
------- |
------- |
|
|
100 |
100 |
|
Net property income by sector
(EUR '000) |
|
|
|
Retail |
69,467 |
64,148 |
|
Office |
7,647 |
8,443 |
|
Warehouse |
4,103 |
3,936 |
|
|
---------- |
------- |
|
|
81,217 |
76,527 |
* adjusted for comparison
** The Company's shares are listed in the form of bearer depositary receipts on Euronext Amsterdam (the Amsterdam Stock Exchange) and Euronext Paris (the Paris Stock Exchange) . One depositary receipt represents 10 ordinary registered shares. The calculation of the direct and indirect investment results is based on the weighted average of the number of depositary receipts representing the ordinary shares in issue over the year using Netherlands GAAP. The weighted average number of depositary receipts over the year is 31,589,214.