Financial Highlights 2007 (Comparative figures for 2006 between brackets; unless stated otherwise)
"The net rental income increased by € 35.1 m or +11.9% to € 330.5 m (€ 295.4 m), while operating expenses decreased by € 0.9 m to € 46.8 m (€ 47.7 m). The 'like-for-like' net rental growth for the retail portfolio was +5.9% (3.3%) and +4.3% (4.7%) for the total portfolio, significantly above inflation.
Renewal and Reletting in the retail portfolio amounted to 8.3% of the total value of rental contracts and resulted in an increase of +18.7%. The office portfolio saw a +7.9% increase on 7.7% of the total rental contract value and industrial portfolio saw only a minor change.
The direct result increased by € 5.4 m or +2.7% to € 203.1 m (€ 197.7 m) or € 3.07 per share (€ 2.98) ahead of earlier expectation. The growth in net rental income of € 35.1 m, lower administrative expenses of € 1.2 m and lower corporate income tax of € 1.1 m was largely offset by the increase in financing expenses of € 32.0 m.
The average occupancy rate for the entire portfolio improved in 2007 to 96.8% (96.0%).
The indirect result amounted to € 598.4 m (€ 443.0 m) or € 9.03 per share (€ 6.69). The net revaluation result -including € 8.6 m (€ 0.8 m) profit on disposal of investment property- of the portfolio amounted to € 629.4 m (€ 475.9 m); an increase of +11.2% (10.0%) of the operational portfolio value as of year-end 2007 before revaluation.
Net profit (sum of direct and indirect result) rose by € 160.8 m or +25.1% to € 801.5 m (€ 640.7 m) or € 12.10 per share (€ 9.67).
Triple NAV (NNNAV) per share increased by +22.1% in 2007 to € 61.77 (€ 50.60).
The value of the property portfolio increased to € 6.5 bn (€ 5.5 bn); 83% of the portfolio is invested in retail.
Leverage was 34.0% (35.8%) as of 31 December 2007. The proportion of fixed interest debt increased to 56% (47%).
The fixed pipeline increased over 2007 by almost € 1 bn to € 1.7 bn, whereas the variable pipeline - which now incorporates the formerly separately reported potential extensions related to existing properties - decreased from € 1.4 bn to € 1.0 bn. Approved development projects mostly under exclusive negotiation amount to a further € 0.8 bn, bringing the total pipeline at year end to € 3.5 bn. An overall average net yield of the total pipeline of 6.4% is expected.
Proposed dividend of € 2.60 per share (€ 2.53) which is slightly ahead of average inflation and retail spending growth in the Eurozone in 2007" (CS della Società).
