Sonae Sierra records total net profit increase of 101% (PT)

Sonae Sierra, the international shopping center specialist, presented a total net profit of €648,000 at the end of the first half of 2010, an increase of 101%, since the company recorded a negative result of €94.2 million in the homologous period.

The favorable change in the total net profit was caused by a value created on properties much higher than the same period of last year due to the smaller increase in yields in 2010 in Europe.

The direct income from investments recorded a 6% increase compared to the first half of 2009, due to the increase of the portfolio with the inaugurations of LOOP5 in Germany and ManauaraShopping in Brazil in 2009, and LeiriaShopping, in Portugal, in 2010.

EBITDA recorded a 10% increase, and is now at €57.9 million, compared to the €52.6 million presented in the first half of 2009.

The occupancy rate of the portfolio remained high and stable, recording a value of 96.3% at the end of June 2010.

Sonae Sierra's portfolio presented a positive performance, with sales growing 6.6% (+1.5% like-for-like) in Europe and 19.2% (+8.8% like-for-like) in Brazil, compared to the homologous period.

Value metrics
The company measures its performance, in a first instance, on the basis of changes in Net Asset Value (NAV) plus dividends distributed. The company calculates its NAV on the basis of the guidelines published in 2007 by INREV (European Association for Investors in Non-listed Real Estate Vehicles), an association of which the company is a member.

On the basis of this methodology, the NAV of Sonae Sierra, as of June 30, 2010, was €1.25 billion, an increase of 1.8% compared to the value recorded at the end of 2009.

One shopping center inaugurated and two others under construction
Sonae Sierra's growth and expansion strategy continues, although the company has adjusted its development timings to the evolution of the financial and retail markets.

During the first quarter of the year, in Portugal, the company successfully completed the refurbishment of AlbufeiraShopping (Algarve), and inaugurated LeiriaShopping (Leiria) with 100% of the GLA already let.

Representing an investment of €79 million, the shopping center welcomed more than 120,000 visits in the first four days alone, which is proof of the development's impact on the region, and provides great confidence in its future performance.

At the end of the first semester of 2010, the company has two new shopping centers under construction and 8 projects in different stages of development in Portugal, Italy, Germany, Greece, Romania and Brazil.

In Italy, Sonae Sierra is currently developing Le Terrazze in La Spezia, which is scheduled to be inaugurated in the third quarter of 2011, represents an investment of more than €125 million, and has more than 50% of its GLA already let. In Brazil, the company initiated the construction of Uberlândia Shopping (Uberlândia) scheduled to open in 2011, and representing a total investment of €62 million.

Entry into Colombia - the company's eighth market
In June 2010, Sonae Sierra announced its entry in a new market, Colombia, with the creation of Sierra Central, a service providing company in the shopping center sector, including management and development of shopping centers.

Sierra Central is owned 50/50 by Sonae Sierra and Central Control, a Colombian company which already provides management services for Jardín Plaza, one of the main shopping centers in Cali, the country's third largest city. The Central Control owners were also responsible for the development of this center and Centro Chipichape, in the same city.

Five new awards in the first half of 2010
Sonae Sierra received five awards - three national and two international - in the first six months of the year, which join the other 85 awards collected throughout the company 21 years of activity.

For the second year in a row, the company was distinguished at the European Risk Management Awards, an initiative of British magazine Strategic Risk that rewards the best and most

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