EARNINGS UP 4.3% ON 2008 RENTS FIRM, VACANCIES AND ARREARS REMAIN LOW
PRICES STABILISING
Eurocommercial Properties’ (ECP) full year 2008/2009 results reflect resilient rent levels in its shopping centres despite the global recession and higher unemployment. Market prices of good retail property in France, Northern Italy and Sweden, though down on December 2008, appear to be stabilising as more buyers enter the market.
• The direct investment result of € 65.1 million at 30 June 2009 shows an increase of 4.3% over the figure at 30 June 2008 and is equivalent to € 1.82 per depositary receipt (2008:
€ 1.75).
• Like for like rental growth (same floor area) was as follows:
Overall 4.7%
France 4.0%
Italy 4.9%
Sweden 5.7%
• Sales turnover in ECP’s centres for the year to 30 June 2009 was slightly down at -1.1% compared with the year to 30 June 2008.
• Net property income at 30 June 2009 increased by 4.0% over the 12 month period to € 114.4 million, in spite of property sales, due to the positive impact of shopping centre extensions in Italy and Sweden, rent reviews and indexation.
• Property values were down 4.7% overall compared with valuations at December 2008 and by 8.8% compared with June 2008. Over the twelve month period properties in France showed a reduction of 9.2%, those in Italy 8.8% and in Sweden 8.4%.
• Adjusted net asset value per depositary receipt at 30 June 2009 decreased by 5.5% to € 33.02 compared to 31 December 2008 and by 17.1% compared to 30 June 2008 as a result of the lower property values.
• Proposed increase in annual dividend to € 1.78 per depositary receipt compared with € 1.75 in 2007/2008.

Direct Investment Result
The direct investment result for the financial year ended 30 June 2009 rose 4.3% to € 65.1 million from € 62.4 million for the previous financial year. The direct investment result is defined as net property income less net interest expenses and company expenses after taxation. The direct investment result per depositary receipt increased by 4.0% to € 1.82 compared with € 1.75
for the year to 30 June 2008.
The number of depositary receipts outstanding at 30 June 2009 was 35,840,442, an increase of 0.3% on 30 June 2008.

Dividend
The Board proposes increasing the Company’s annual dividend to € 1.78 per depositary receipt (10 ordinary shares) from € 1.75 in 2008 notwithstanding the increase in the direct investment result to € 1.82 per depositary receipt. The Board has taken this decision because, despite its confidence in market rental levels, uncertainties over negative indexation in France and Sweden
in 2010 make it prudent to limit the dividend increase this year in order to continue the Company’s policy of increasing or at least maintaining dividend levels over the longer term.
Holders of depositary receipts will again be offered the option of taking new depositary receipts from the Company’s share premium reserve, instead of the cash dividend payable on 30 November 2009. The price of these depositary receipts will be announced on 30 October 2009.

Property Valuations
As usual, all of ECP’s properties were independently valued at 30 June 2009 by major international firms in accordance with the standards set out in the “Red Book” of The Royal Institution of Chartered Surveyors. The values decreased by 8.8% over June 2008 and decreased by 4.7% when compared with the figures for December 2008.
The values of ECP properties in France decreased by 9.2% over the year to 30 June 2009, in Italy by 8.8%, in Sweden by 8.4% and in The Netherlands by 6.3% (one warehouse only). The reductions since December 2008 were 5.5% in France, 4.8% in Italy, 3.0% in Sweden and 4.9% in the Netherlands. The declines in values were due to market yield shifts, though ameliorated by
rental growth of 4.7% over the period.
The average valuation net initial income yield for the retail properties at 30 June 2009 was 5.6% overall (2008: 4.9%), 5.7% for France (2008: 4.8%), 5.6% for Italy (2008: 5.0%), 5.5% for Sweden (2008: 4.9%) and 8.8% for The Netherlands warehouse (2008: 7.0%). The net yield figures are derived by dividing current net income by the valuation figure, to which has been
added the relevant standardised market allowance for deemed purchaser’s costs (usually notional transfer taxes) in the particular country. The objective is to replicate the calculations of a professional institutional investor.

Adjusted Net Asset Value
Adjusted net asset value declined by 5.5% to € 33.02 per depositary receipt at 30 June 2009 from € 34.94 at 31 December 2008. The figure decreased by 17.1% from € 39.83 per depositary receipt at 30 June 2008. These figures represent the underlying value of properties and do not take into account contingent capital gains tax liabilities if all the properties were to be sold
simultaneously nor do they take into account the fair value of financial derivatives (interest rate swaps). Adjusted net asset value is the relevant definition for all ECP debt to equity banking covenants.
The IFRS net asset value at 30 June 2009 was € 28.82 per depositary receipt compared with € 36.41 at 30 June 2008 and € 30.48 at 31 December 2008 and includes both contingent capital gains tax liabilities if all the properties were to be sold simultaneously and the fair value of financial derivatives (interest rate swaps).

Total Investment Result
The total investment result (IFRS result after taxation) for the year decreased to a negative amount of € 180.7 million compared with a positive amount of € 110.3 million for the previous financial year due to the unrealised decrease in market value of the property portfolio during the
period and the unrealised fair value movement of derivatives. This result, as it includes unrealised “capital” movements, does not in the view of the Board properly represent continuing underlying earnings which are better defined by the direct investment result, the standard representation of operational profit for Dutch property companies.

An accompanying presentation
will be available to download from the Company’s website (www.eurocommercialproperties.com