Le mie ricette per la real estate communityCorio’s half year results 2013
Gerard Groener: The execution of the plan to achieve our strategic objectives is on track. While confident on the medium term disposal program of our TRCs and on the quality of our FMP portfolio, we recognize that 2013 is a transition year as the new strategic model has just been implemented. With full focus on operational improvements, occupancy rate and efficiency we also started the roll out of programs that turn shopping centres into Favourite Meeting Places, using already existing best practices and implementing new initiatives for our customers.
Meanwhile markets will remain challenging in the retail business for the foreseeable future as consumer spending continues to decrease while alternatives to the shopping centre model as a distribution network present themselves continuously.
In times of change we need to be adaptable and ready to innovate, while maintaining day to day operations and improve them. Our FMP concept is the way forward as innovators like Le Gru and Campania in Italy clearly demonstrate. Preparing for the long-term and not losing the focus on the short-term, being flexible and agile at the same time, we ask the utmost from our people in a changing organization. It is therefore good to see that in the middle of this transition phase, our performance is stable.
Operational performance
· NRI growth FMP portfolio 4.3% in first half 2013
Disposal program
· As per 7 August 6 assets were sold to different buyers for total proceeds of € 140 m
· Disposal program on track
Financing
· Interest rate decreased to 3.7% in Q2 2013 (Q2 2012: 3.9%)
· € 500 m bond at 3.25% was issued in February 2013
· Solid headroom of € 646 m
· Leverage increased to 44.1% after acquisition of Boulevard Berlin
Valuation
· FMPs stable, TRCs down 11.9%
Source : Company