Operating and management expenses
Operating expenses for the continued activities increased by € 6.9 million (14.7%) in 2009, to € 53.8 million. Operating expenses also increased as a percentage of the theoretical rent, from 12.4% in 2008 to 12.9% in 2009. This increase was due to higher leasehold costs (Príncipe Pío in Madrid) and an increased allocation to the provision for doubtful debts and higher non-recoverable service charges as a result of existing and expected economic circumstances. Operating expenses as a percentage of theoretical income differ considerably per country.
| Operating expenses as a % of theoretical rent |
|
|
|
|
2009 |
2008 |
| Netherlands |
16.3 |
15.7 |
| France |
8.7 |
7.2 |
| Italy |
7.8 |
7.7 |
| Spain |
16.1 |
13.6 |
| Turkey |
29.8 |
41.8 |
| Total |
12.9 |
12.3 |
The higher percentages in the Netherlands, Spain and Turkey can largely be explained by leasehold expenses. Excluding leasehold expenses, the percentage for Corio would be 10.9% in 2009 (2008: 10.7%). In France and Italy a large part of the operating expenses is charged to tenants.
Management expenses also increased, by € 5.5 million to € 35.5 million in 2009. As a percentage of the theoretical rent, management expenses rose from 7.9% in 2008 to 8.5% in 2009. The increase was primarily attributable to higher personnel costs, lower charges to third parties and lower capitalised cost.
Source: Annual Report 2009, Chapter Review of Operations, page 42 (PDF, 6.362 kB)
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