|
NET INCOME
increased by 13% to € 41.3m |
EARNINGS PER SHARE
increased by 2% to € 1.43 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
increased by 4% to € 659m |
DIVIDEND PER SHARE
increased by 2% to € 1.43 |
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|
|
|
|
|
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TOTAL ASSETS
increased by 3% to € 1,254m |
NET ASSET VALUE PER SHARE
increased by 2% to € 22.53 |
Income and dividend
The board of Eurocommercial Properties NV announced today that as a result of higher earnings in the financial year to 30 June 2003 it proposes increasing the Company's annual dividend by 2% to € 1.43 per depositary receipt (10 ordinary shares) from € 1.40 in 2002. 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 31 October 2003.
Overall net property income for the year rose slightly to € 66.3 million from € 65.9 million reflecting property sales in 2001/2002 and purchases during this year. The overall net income after reduced interest and other expenses was € 41.3 million for 2002/2003 and represents an increase of approximately 13% over € 36.6 million last year.
Net asset value
Net asset value before income appropriation improved by 2% to € 22.53 per depositary receipt as a result of increased independent property valuations and after allowing for an appropriate increase in the provision for potential future capital gains taxes. The net asset value in June 2002 was € 22.09 per depositary receipt.
Property performance
The Company's property portfolio performed well over the year with a total return of 8.9%. The overall property occupancy rate is 99.9%. Average retail sales in the Company's shopping centres were up 2.9% on 2002 but individual centres have shown increases of up to 8%.
The Company's independently assessed property values increased 2.3% overall compared with 2002.
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Individual country percentages were: |
Sector percentages were: | ||
|
France |
+ 2.1% |
Retail |
+ 3.1% |
|
Italy |
+ 3.7% |
Offices |
- 2.7% |
|
The Netherlands |
- 1.7% |
Warehouse |
+ 1.7% |
|
Sweden |
+ 1.5% |
|
|
Market outlook
Most large western European property markets are in equilibrium for the moment with weight of investment demand and limited property supply pushing yields slightly down and prices up despite some caution over future rental growth in view of the stagnation in major European economies.
Investment programme
The Company plans to invest at least € 100 million in retail property in the 2003/2004 financial year, in addition to the € 50 million committed last year in Grenoble, Mantova and Västerås. In fact, transactions of just over € 100 million have already been agreed in principle although legally binding contracts are not yet finalised.
Eurocommercial Properties N.V. is focussing on retail properties whose income is extremely secure because of diversity of tenancies and supportable rent levels. The Company is not currently considering office buildings having sold the majority of its portfolio in 2001/2002 but may well do so to a limited degree in coming years, when oversupplies of space have better prospects of being absorbed.
For additional information please contact:
Jeremy Lewis + 44 20 7925 7860
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
KEY FINANCIAL INFORMATION (consolidated before income appropriation)
|
For the financial year ended |
30-06-03 |
30-06-02 |
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|
|
|
|
Profit and Loss Account (X € '000) |
|
|
|
Property income |
79,846 |
79,827 |
|
Property expenses |
(13,505) |
(13,945) |
|
|
---------- |
---------- |
|
Net property income |
66,341 |
65,882 |
|
Interest income |
949 |
707 |
|
Foreign currency loss |
(18) |
(19) |
|
|
---------- |
--------- |
|
Total revenue |
67,272 |
66,570 |
|
|
|
|
|
Depreciation fixed assets |
(57) |
(44) |
|
Other company expenses |
(4,101) |
(4,829) |
|
Interest expense |
(21,450) |
(24,674) |
|
|
---------- |
----------- |
|
Total expenses |
(25,608) |
(29,547) |
|
|
|
|
|
Net income before taxation |
41,664 |
37,023 |
|
Taxation |
(319) |
(393) |
|
|
--------- |
--------- |
|
Net income after taxation (direct investment result) |
41,345 |
36,630 |
|
|
|
|
|
Indirect investment result |
11,922 |
38,074 |
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|
|
|
|
Balance Sheet (before income appropriation)
(X € '000) |
|
|
|
Property investments |
1,110,356 |
1,041,545 |
|
Cash and deposits |
122,293 |
156,628 |
|
Receivables |
20,914 |
18,162 |
|
Other assets |
452 |
327 |
|
|
------------- |
---------- |
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Total assets |
1,254,015 |
1,216,662 |
|
|
|
|
|
Creditors (current liabilities) |
19,916 |
17,109 |
|
Borrowings (current liabilities) |
68,368 |
111,117 |
|
Creditors (non current liabilities) |
6,874 |
6,462 |
|
Borrowings (non current liabilities) |
439,199 |
400,887 |
|
Provision for contingent tax liabilities |
60,434 |
49,810 |
|
|
---------- |
---------- |
|
Total liabilities |
594,791 |
585,385 |
|
Shareholders' equity |
659,224 |
631,277 |
|
|
|
|
|
Number of depositary receipts representing shares in issue |
29,263,103 |
28,572,841 |
|
|
|
|
|
Per depositary receipt information * (€) |
|
|
|
Direct investment result |
1.43 |
1.40 |
|
Indirect investment result |
0.41 |
1.46 |
|
Dividend |
1.43 |
1.40 |
|
Net asset value |
22.53 |
22.09 |
|
|
|
|
|
Stock market prices (€; per depositary receipt) |
21.55 |
19.10 |
|
Property information: sector spread (%) |
|
|
|
Retail |
85 |
84 |
|
Office |
11 |
12 |
|
Warehouse |
4 |
4 |
|
|
------- |
-------- |
|
|
100 |
100 |
* The Company's shares are listed in the form of bearer depositary receipts on Euronext Amsterdam
(the Amsterdam Stock Exchange). 1 bearer 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 period is 28,977,543.