Semi-Annual Report for Piren AB January - June 2000

Semi-Annual Report for Piren AB January - June 2000 * Earnings from core operations totalled SEK 75 million, an improvement of 53 percent. * Sales at Piren's shopping centres rose 11.2 percent the first six months 2000. * Piren's new shopping centre in central Copenhagen, Fisketorvet Shopping Center, is due to open on October 10th . * Rodamco owns more than 99 percent of the shares in Piren. 2000 1999 1999 Jan 1- Jan 1- Jan 1-Dec June 30 June 30 31 Rental income, SEK million 321 294 597 Profit from core operations, 75 49 125 SEK million Income before tax, SEK 75 49 125 million Profit for the period, SEK 72 49 125 million Equity, SEK million 2,196 2,120 2,196 Equity ratio, percent 30 33 32 Revenues and earnings Consolidated operating revenue for the period January-June 2000 was SEK 322.6 (296.2) million, including rental income of SEK 321.2 (293.8) million. Operating income reached SEK 170.3 (154.6) million. Income before tax equalled SEK 75.2 (48.7) million. Depreciation was SEK 28.0 (26.4) million, including depreciation on buildings and amortisation of goodwill totalling SEK 27.0 (25.5) million. Piren reported profit for the period of SEK 72.2 (48.7) million. Surplus assignments in the insurance company SPP, which Piren and its subsidiaries have been assigned and which preliminary have been estimated to SEK 3.4 Million, are not included in the accounts at June 30, 2000. Occupancy Of the floor space in Piren's property holdings (excluding Fisketorvet * Shopping Center), 95 (95) percent was under lease at June 30, 2000. On that date, the financial vacancy rate equalled 3 (3)* percent. Fisketorvet Shopping Center in Copenhagen Fisketorvet Shopping Center will contain about 54,000 square metres of leasable space. In addition to some 120 shops and resaturants, the complex will include a cinema centre seating a total of 3,200 persons in 10 cinemas and some 2,000 parking spaces. At the inauguration on October 10, all space is estimated to be under lease. Five percent of the shops will not be ready and opened until after the inauguration, though. Investments During January-June 2000, Piren invested SEK 484 (585) million, of which SEK 319 (512) million was in the Fisketorvet Shopping Center project. Figures in parantheses without asterisks refer to amounts at June 30, 1999, or January-June 1999. Figures in parantheses with asterisks refer to amounts at December 31,1999. Sales trends at Piren's shopping centres During the first six months of 2000, sales at Piren's shopping centres averaged some 11.2 percent higher than in the corresponding period in 1999, based on current prices. According to statistics from the Swedish Research Institute of Trade (HUI), comparative sales for the Swedish retail trade increased 7.5 percent. Financial position Group liquid funds (cash on hand and bank balances) at the end of June were SEK 127 (79)* million. At June 30, 2000, bank overdraft and loan facilities granted but not exercised totalled SEK 46.2 (27.6)* million. In addition, there is DKK 230 million that has not yet been utilized of the agreed financing of Fisketorvet Shopping Center totalling DKK 900 million. At June 30, 2000, the Group's loans totalled SEK 4 644 (4 201)* million, SEK 100 (100)* million of which was a convertible loan. The total amount includes loans for DKK 1,000 (650)* million, roughly equal to SEK 1 128 million. The conversion rate was SEK 1.1275 SEK/DKK. The average interest rate for the Piren Group's borrowings at June 30, 2000, was 5.7 (5.8)* percent, not taking into account interest subsidies. Interest subsidies for the first six months of 2000 equalled SEK 0.6 (0.9) million. At June 30, 2000, interest rates on Piren's loans were fixed for an average of 20 (22)* months. At June 30, 2000, the equity ratio equalled 30.0 (32.3)* percent. Convertible debentures redeemed The convertible debentures were redeemed on July 31, 2000. As the convertibles were not converted into shares, share data and key ratios after conversion are not specified any more. The convertible debentures had a total amount of SEK 100.0 million with maturity through July 31, 2000. All convertible debentures were held by Piren's parent company Rodamco. Forecast for 2000 Earnings from core operations are expected to be better than in 1999. Next report The interim report for January-September 2000 will be released on October 26, 2000. Rodamco owns 99.3 percent of Piren On January 24, 2000, Piren's former largest shareholders, Skanska and Latour, announced that they had agreed to sell their holdings in Piren AB to Rodamco Continental Europe N.V. (Rodamco). The price was SEK 69.60 per share. Rodamco also made an offer to the other shareholders to sell all their shares on the same terms and conditions as agreed with Skanska and Latour. An offer prospectus was distributed to the shareholders at the end of February 2000. Following expiration of the acceptance period and after purchases on the market, Rodamco owns 99.3 percent of all shares and votes in Piren at June 30, 2000. Rodamco, based in Rotterdam, The Netherlands, is one of Europe's leading property management companies. Rodamco owns 750 properties in 10 European countries with a total market value of about SEK 40,000 million, Piren inclusively. About 75 percent of that total consist of shopping centres and retail properties. Rodamco is listed on the stock exchanges in Amsterdam, Frankfurt, Paris and Brussels. Täby, August 29, 2000 Lars Söderblom Managing Director The Company's auditors did not examine this interim report. Please direct questions to Lars Söderblom. PIREN AB (publ), Box 1333, SE-183 13 Täby. Phone +46 8 638 3300. Fax +46 8 792 2570. This interim report is also available at Piren's web site: www.piren.se ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/29/20000829BIT00080/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/29/20000829BIT00080/bit0002.pdf The full report