Sonae Sierra has announced that it recorded a net profit of €110m in 2017 (compared €181.2m in 2016). The company's EBIT reached €105m, showing an 8.5% increase over the previous year.
In operational terms, tenant sales grew by 7.8% overall in the European portfolio compared to 2016, with a significant growth in Romania due to the successful opening of ParkLake in Bucharest. In Spain and Portugal, total tenant sales increased by 10.8% and 5.6% respectively, reflecting the continuing economic recovery. This positive trend was chiefly felt within the Portuguese portfolio, where tenant sales increased by 5.6%, on a like-for-like basis, quite above the country Retail Sales Index for 2017 of 4.6%.
The global occupancy rate of the portfolio shifted down slightly to 96.0%, a fall of 0.6 p.p. compared to 2016, due to small variations across the global portfolio. In Europe, occupancy remained stable at 97.1%. Occupancy rose in Portugal and Spain, to 99.1% and 94.4% respectively.
According to Fernando Guedes de Oliveira, Sonae Sierra's CEO, "2017 was a very good year for Sonae Sierra in both operational and financial terms. Furthermore, we increased our exposure to developments and amplified the scale and geographical reach of our services business.”
The Company’s development pipeline currently includes Jardín Plaza Cúcuta (Colombia), the urban regeneration scheme in Nuremberg (Germany), Shopping Centre Zenata (Morocco), the McArthurGlen Designer Outlet Málaga (Spain), and in Portugal, the NorteShopping and Centro Colombo expansions.
Construction works already started on the McArthurGlen Designer Outlet Malaga (Spain). The centre will total 30,000 m² of new retail space, offering consumers a strong mix of over 170 brands.
Earlier this year, Sonae Sierra has launched a new 50/50 joint venture with Impresa Pizzarotti & c. S.p.A. Together companies invested in an urban regeneration project that will create a Shopping Centre and a Retail Park with a total 74,000m² of GLA in Parma, Italy. The scheme will feature 170 retail units.