Rotterdam, the Netherlands, 10th March, 2003 - Rodamco Europe, the largest publicly listed property investment and management company in the retail sector in Europe, has brought in good financial results for 2002. Net profit increased by 3.6% YoY to € 286.9 million. Excluding the 2001 result of RREEF US as per 31st December 2001, the increase in net profits was 9.3% YoY. EPS decreased slightly to € 3.57, mainly due to the effects of dilution resulting from the conversion of the € 555 million loans into 12.2 million new shares on 30th September 2002. Excluding the 2001 result of RREEF US, EPS increased by 5.3% YoY. New investments and property revaluations fuelled 7.8% YoY growth in the investment portfolio to € 6,431 million (2001: € 5,967 million). At 96.2% (2001: 96.1%), occupancy rates of the property investments continue to be high.
Due to the combined effect of the net profit and the loan conversions, Net Asset Value per share increased by 3.1% YoY to € 48.29 and leverage went down from 38.4% to 29.9%. Rodamco Europe proposes a total 2002 dividend of € 2.80 (2001: € 2.72) at the General Annual Meeting of Shareholders on April 15th, 2003. An interim cash dividend of € 1.10 per share was distributed in October 2002.
Rodamco Europe's CEO Maarten Hulshoff commented: "We deliver stable results in a vulnerable European economy. We have been proven right in our strategic choice to focus our investments on quality shopping centers and high-street shops with dominant locations in European cities. This strategy means we are also spreading risks over a number of European countries. Rodamco Europe's key indicators are predictability in performance and profitable growth. As 'the longest shop front in Europe', we deliver stable return on investment for our shareholders, we create value for our retail customers, and provide a great shopping experience for the many millions of visitors to our retail properties every year."
The total performance per share over 2002 (including revaluations) amounted to € 4.70 (2001: € 6.27). Excluding the effects of the 2001 € 114 million one-off gain from the sale of RREEF US and the 2001 € 14 million profit contribution of RREEF US, total performance per share was € 4.70 compared to € 4.62 in 2001. Net rental income rose by 5.2% to € 407 million (2001: € 387 million).
The already sound balance sheet ratios improved further in 2002. The current leverage ratio (external financing as a percentage of total assets) of 29.9% (2001: 38.4%) offers Rodamco Europe a very solid base for further growth. The strong balance sheet provides the financial means to fund the company's considerable investment pipeline of projects, up until 2008 estimated at € 1.6 billion. Most of the new projects are turnkey delivered on completion. The strong balance sheet further enables Rodamco Europe to actively strengthen and grow its property portfolio in Europe.
