Fully diluted net asset value ended 2009 15% lower at €128.20. "The group ends 2009 with solid earnings growth in line with expectations, despite a very adverse economic environment," said CEO Guillaume Poitrinal. U-R will maintain its distribution of 87% of recurring net earnings, will propose a €8.00 per share dividend to be paid in full on 10 May 2010, and sees a better 2010.

"While 2010 starts with tangible signs of recovery, it will be a year of transition, with low or even negative indexation, the impact from divestments achieved in 2009, and limited deliveries of new assets in 2010," the group said in a statement. Guidance for recurring EPS growth in 2010 is 0% to 2%. "Beyond 2010, the group expects to see renewed momentum for growth based on the growing appeal of its large centres and delivery of projects from the €5.6 billion development pipeline."

In 2009, net rental income growth was positive. The number of visits to the group's centers was stable, despite a 1.9% drop in retailers' sales. There were few tenant defaults with a slight 1.9% increase in vacancy, about the same as in 2008. Its shopping centers showed 6.1% net rental income growth, and 3.9% like for like - due to indexation, low vacancies and minimum guaranteed rents uplifts of 21% on re-lettings and extensions. In its office portfolio, net rental income contracted by 4.2% as a result of divestments, though it was up 9.1% like for like due to successful leasing activity and favorable indexation.

The slide in NAV over 2009 was almost entirely due to property yield expansion, and mostly concentrated in the first half. During 2H09, the property markets saw a recovery of interest from investors and appraised asset values have been stabilising. U-R is carrying relatively little debt. Its loan to value ratio stood at 32% at year-end, in spite of the 9.8% like for like decrease in gross market value of the portfolio.

The group relied on a variety of funding sources last year, raising €2.1 billion from bank, convertible bond and bond markets and €700 million of additional liquidity from disposals. "With a conservative Loan to Value ratio and significant available funds, the group is ideally positioned to seize the best acquisition opportunities, as proven by the recently announced acquisition of the Simon Ivanhoe asset portfolio in Poland and France," it said. The deal, announced last week, saw U-R paying €715 million for five malls from the JV, with an agreement to develop more on its behalf.