STRONG RENTAL AND PROPERTY VALUE GROWTH
SIGNIFICANT EARNINGS INCREASE
Highlights
RENTAL GROWTH +4.1%
Like-for-like rental growth over the 12 months has been strong across the portfolio at 4.1%, notwithstanding almost 0%
inflation and, therefore, no rental indexation. Italy was best with 5.6%; then Sweden at 3.2%; and France at 2.3%.
PROPERTY VALUES +5.0%
Overall, property values rose by 5.0% over the year. In Italy, the increase was 6.7%; in France, 2.8%; and in Sweden,
5.5%.
EARNINGS +3.7%
Earnings, expressed as the direct investment result, rose by 3.7% to €2.23 per depositary receipt, a record level for the
company.
NET ASSET VALUE +8.0%
The Adjusted Net Asset Value per depositary receipt increased 8.0%, an increase of €195 million.
DIVIDEND + 2.4%
The Board is recommending a dividend for the year of €2.10 per depositary receipt, an increase of 2.4% on the €2.05
paid in 2016.
RETAIL SALES -1.0%
Overall, retail sales decreased 1% for twelve months, but improved over the three months to 30 June to plus 0.7%.

Chief Executive’s commentary
2017 was one of our busiest and most successful years with strong increases in both rental income and property values.
Earnings have reached record levels and we have extended the maturity of our loans and our swaps to lock in current low
interest rates.
Property investment markets in France, Italy and Sweden continue to be strong, particularly in France where yields had
reduced and remain firm with good demand from French and foreign institutions. We have signed a contract to sell 74 rue
de Rivoli, Paris to a major institutional investor for a net price of €79.6 million and with a net yield of 3%. The property has
produced a total return of 13% per annum since its purchase in 1998. Completion is expected to take place in October.
In Italy, valuations yields have declined for the larger properties, bringing them closer to French levels. I Gigli and
Carosello are now valued at under five percent. The Swedish market has retained its strength, despite possible taks reforms now delayed until at least 2018.

Eurocommercial’s attractive and popular centres continue to perform well in 2017 with 99.5% occupancy levels,
benefitting from continual upgrading and re-letting to such strong international names as Primark and Zara. In 2017, they
generated €186 million in rental income. Our Occupancy Cost Ratio of 8.5% reflects our long-term commercial approach
to building sustainable and close relationships with our tenants, resulting in the lowest levels of vacancy and arrears in
our industry.
The shopping centre developments of Halmstad and Kristianstad are both on schedule for construction and lettings, with
the former in line to deliver a 7% net return on cost. The exemplary expansion and refurbishment of our largest centre, I
Gigli (95,241m² of which 12,192m² was refurbished/expanded), was completed in 2017 and we welcomed the first
Primark store south of Milan, a much enlarged Zara and an exciting new restaurant concept - the Mercato Centrale ‘Ai
Banchi’. In France, the 5,000m² extension of the gallery in Amiens is scheduled for completion in October 2017.
The agreed sales of Rue de Rivoli (France) and Mellby (Sweden), which are examples of our asset rotation programme,
will release nearly €100 million, which we will reinvest into further expansion projects.
With high occupancy levels throughout our attractive shopping centres, plus the completion of several exciting expansion
projects in the coming months, we believe the outlook for Eurocommercial in the next 12 months is excellent.

Twelve months to end June 2017 Twelve months to end June 2016 % increase
(year-on-year)
Direct Investment Result €108.0 million €102.8 million +5.1%
(per depositary receipt) €2.23 €2.15 +3.7%
Rental Income €186.0 million €179.4 million +3.7%
Retail Sales* -1.0% 2.7% -
Occupancy Cost Ratio 8.5% 8.2% -
Property Value** €3.8 billion €3.6 billion +5.0%
Adjusted Net Asset Value
(per depositary receipt)
€46.42 €43.00 +8.0%
Dividend (per depositary
receipt)
€ 2.10*** € 2.05 +2.4%
* Excluding hypermarkets, Systembolaget and extensions
** On a proportional consolidated basis
*** Proposed, subject to shareholder approval

read more on
http://hugin.info/133644/R/2129178/813290.pdf

tijd 09.13
EuroComm. EUR 35,04 +24ct vol. 8.482