The main results for 2009 can be summarised as follows:
Business
Direct result:
Top line growth was strong despite the difficult economic environment, with good top line growth, up 6.9% to € 218.2 million, laying the basis for a solid performance. Occupancy was relatively stable but operational expenses went up somewhat more than in 2008 as retailers ran into heavy weather, which was mostly visible in provisions for bad debt and non recoverable service charges. This led to a net rental income of € 337.0 million. The NRI growth for retail of € 21.0 million was achieved by way of a like-for-like increase of 1.7% (2.9% index, 0.6% reletting/renewals, 1.9% negative of other effects, mainly vacancy) and 4.7% coming from investment and divestment activities. Administrative expenses rose to € 35.5 million mostly because of growth in our organisations in Turkey and Italy, bringing EBIT on continuing operations to a level of € 310.2 million, up 2.5% compared to 2008.
Pipeline
Seven projects were taken into operation and three projects left the pipeline due to cancellation. The total value of projects cancelled amounted to around € 188 million. Within the pipeline there were a number of movements between the various categories. The pipeline showed a net initial yield of 7.1% compared to 6.7% a year earlier.
Acquisitions
In 2009 we made three acquisitions. Príncipe Pío in Madrid was purchased in June for € 126.5 million at a net initial yield of 7.9%. Furthermore we invested in two projects in Turkey: Tekira shopping centre (remaining 90%) and Teras Park, where we increased our share with 11% to a controlling 51% by means of a capital increase of 22% without the other shareholder participating. In December we approved another acquisition in Italy. Together with the Príncipe Pío investment we put the proceeds from the ABB to work.
Disposals
We did some disposals in France in 2009. In line with our strategy to focus primarily on retail, we sold three office buildings and one logistics centre for a total amount of € 63.2 million at a yield of around 8%. There are nine remaining projects whose total value at year end amounted to € 286.9 million. These projects will be sold on an item-by-item basis. Apart from the French sales in 2009, five retail projects were sold in the Netherlands for a total of € 21 million. After balance sheet date, the sale of the Bordeaux Megastore in France was announced for an amount of € 67.3 million.
Source: Annual Report 2009, Chapter Overview & Strategy, page 15 (PDF, 13.679 kB)
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