Corio Profits Rise On Higher Rental Income

Dutch real-estate company Corio NV (CORA.AE) Thursday reported a jump in third-quarter profit as a large acquisition helped to boost rental income, and it reiterated that 2010 earnings will be "significantly higher" than last year.

The Utrecht-based company, one of Europe's biggest listed investors in shopping malls, said its direct result--rental income minus taxes and operating and administrative expenses--rose to EUR67.1 million from EUR60.6 million in the same period a year earlier.

Investors watch this figure closely, as it is used to calculate dividend payments.

Profit was helped by the acquisition earlier this year of a EUR1.3 billion real-estate portfolio that included four shopping centers in Germany, Spain and Portugal, and which lifted gross rental income 18% to EUR117.3 million.

Corio reiterated that the acquisition will "significantly" boost its 2010 direct result compared with last year, when it reported a direct result of EUR218.2 million. It didn't elaborate.

Corio competes with Franco-Dutch rival Unibail-Rodamco SA (UL.FR) and Netherlands-based Wereldhave NV (WHA.AE). Its biggest tenants include food and fashion retailers such as Royal Ahold NV (AH.AE), Hennes & Mauritz AB (HM-B.SK) and Inditex SA (ITX.MC).

Corio shares closed Thursday at EUR51.93. The stock has gained 15% in value since the start of 2010.

-By Maarten van Tartwijk, Dow Jones Newswires; [phone]; [e-mail]