Dutch property group Corio said its direct investment result rose 2.7% to EUR 203.1 mln in 2007, slightly higher than a previous forecast that the figure would be in line with the EUR 197.7 mln seen a year earlier. However, Corio declined to give an outlook for 2008, citing uncertainty over the timing and impact of the planned sale of its offices and industrial portfolio.
Dutch property group Corio said its direct investment result rose 2.7% to EUR 203.1 mln in 2007, slightly higher than a previous forecast that the figure would be in line with the EUR 197.7 mln seen a year earlier. However, Corio declined to give an outlook for 2008, citing uncertainty over the timing and impact of the planned sale of its offices and industrial portfolio.
Corio also said its indirect investment result improved to EUR 598.4 mln from EUR 443 mln in 2006. The direct investment result consists of rental income minus costs while the indirect result mainly reflects realised and unrealised value increases of the portfolio. Corio said the value of its portfolio at end-2007 stood at about EUR 6.5 bn, up from EUR 5.5 bn at the end of 2006. Eighty-three percent of Corio’s portfolio is in the retail sector.
Net rental income for the Dutch property group rose 11.9% to EUR 330.5 mln. Corio said it expects net rental income for its retail portfolio to grow by at least 10% in 2008.
Corio has proposed paying a cash dividend of EUR 2.60 per share on 2007 earnings, up from EUR 2.53 in 2006.
Corio has said it wants to sell most of its office and industrial property assets to focus on its core retail business, and expects to conclude the property disposal in the first half of this year. The company has said that money could be used to finance existing projects, reduce debt or buy back shares. Spanish property company Metrovacesa has been tipped as frontrunner in the bidding process for Corio's office portfolio.l