Shopping mall investor Corio has managed to make a profit, its first in a long while. The first half of 2014 resulted in a 55 million euro profit, while last year resulted in quite big losses.
The company suffered a 103 million euro loss in the first half of 2013. The huge improvements in 2014 will only become stronger because of the bid by French Klépierre, according to CEO Gerard Groener.
"This combination will definitely improve Corio's upward trend. Size is undeniably of increasing importance in the retail business in order to create added value for shareholders. Geographically, Klepièrre and Corio are complementary", Groener told Vastgoedmarkt. Corio's purchase should be finalized by the end of 2015's first quarter.
Better indirect result
Corio mostly had a much better indirect result in the first half of 2014, as it did not have to write off as much value on its portfolio. Corio's assets lost 51 million euro in value, on a total of nearly 7.3 billion euro. The total indirect result ended up being a 67 million euro loss, which had been a 237 million euro loss in 2013.
The direct was slightly lower than in 2013, when it managed a 130.6 million euro profit. This time around, it was 123 million euro. Net rental revenue reached 177 million euro, compared to 196.8 million euro in 2013. Occupation rate remained stable, at 94.9 %. For its full-year forecast, Corio hopes to reach a direct result between 227 million and 233 million euro.