Corio Shares Fall as Europe’s Economic Slump Slows Rental Growth

Corio NV (CORA), the largest publicly traded Dutch real estate company, declined the most in more than three months after lowering its full-year earnings forecast as rental growth slowed and its shopping malls depreciated.

The company said in a statement yesterday it would have a “marginally lower” direct result, or earnings excluding changes in asset values and deferred tax. Corio, based in Utrecht, in May predicted profit would be unchanged. The direct result in the first half was unchanged at 1.46 euros a share.

Europe’s economic downturn made it more difficult to increase rents and led Corio to step up incentives to keep tenants. Rents for properties owned throughout the first half rose 0.8 percent, down from a 1.4 percent growth rate in the first quarter. Net asset value declined 7.8 percent from six months earlier to 43.49 euros a share, mainly due to a writedown of its Centrum Galerie mall in Dresden, Germany.

“Corio’s results were a bit disappointing,” said Harm Meijer, an analyst at JPMorgan Chase & Co. with a neutral rating on the shares. Even “‘stable’ countries like the Netherlands and France are starting to show weakness.”

Corio declined as much as 4.8 percent, the most since April 23. The shares were down 3.9 percent to 35.2 euros at 11:08 a.m. in Amsterdam, dropping the company’s market value to 3.38 billion euros.

Corio shares have risen 4.2 percent in the past three months, compared with a gain of about 11 percent in the benchmark FTSE EPRA/NAREIT Developed Europe Index.

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To contact the editor responsible for this story: Andrew Blackman at

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