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

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

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In 2009, net rental income growth was positive. The number ofvisits to the group's centers was stable, despite a 1.9% drop inretailers' sales. There were few tenant defaults with a slight 1.9%increase in vacancy, about the same as in 2008. Its shoppingcenters showed 6.1% net rental income growth, and 3.9% like forlike - due to indexation, low vacancies and minimum guaranteedrents uplifts of 21% on re-lettings and extensions. In its officeportfolio, net rental income contracted by 4.2% as a result ofdivestments, though it was up 9.1% like for like due to successfulleasing activity and favorable indexation.

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The slide in NAV over 2009 was almost entirely due to propertyyield expansion, and mostly concentrated in the first half. During2H09, the property markets saw a recovery of interest frominvestors and appraised asset values have been stabilising. U-R iscarrying relatively little debt. Its loan to value ratio stood at32% at year-end, in spite of the 9.8% like for like decrease ingross market value of the portfolio.

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

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