REFILE-UPDATE 1-ECP sees worst over in commercial property slump

(Corrects dateline to Nov 6 from Nov 5)

* ECP is cautiously optimistic in the medium term

* May give some rent reductions but with negligible impact

* Q1 oper. profit up 1.6 pct at 16.4 mln euros

(Adds detail)

AMSTERDAM, Nov 6 (Reuters) - Dutch property group Eurocommercial Properties (SIPFc.AS) said the worst of the slump in institutional property could be over in western Europe and is cautiously optimistic, it said on Friday.

Eurocommercial Properties (ECP), the Netherlands' fourth-largest property group by market value, said its quarterly direct result -- rental income minus costs -- rose 1.6 percent to 16.4 million euros compared with the same period a year ago.

"Eurocommercial's outlook is one of cautious optimism for both capital values and rental income in the medium term as economic growth resumes and unemployment levels peak," the company said in a statement.

Falling prices have forced property companies to raise cash, sell assets or renegotiate loan conditions to avoid breaking debt covenants. French rival Klepierre (LOIM.PA) refinanced debt in June, while British Land (BLND.L) had a rights issue in March. [ID:nWLA0195] [ID:nLG802389]#

ECP's property prices fell by 1.7 million euros in the July to September period, its first fiscal quarter, compared with a 0.7 million rise a year ago and a 103.5 million euro fall in the preceding quarter.

ECP, which manages 2.2 billion euros in property in Italy, France and Sweden, said it could give some tenants rent reductions that would represent a "negligible" share of income. (Reporting by Gilbert Kreijger; Editing by David Holmes)