Sonae Sierra records Total Net Profit of €14.9 million (PT)

Sonae Sierra, the international shopping center specialist, presented a Total Net Profit of €14.9 million at the end of the third quarter of 2010, an increase of 116% versus the same period of last year.

Uberlandia Shopping, Uberlandia, Brazil

In Brazil, Sonae Sierra is developing Uberlândia Shopping, scheduled to open in 2011.

The favorable change in the Total Net Profit was mainly driven by a 42% increase of the Direct Results. Value Created was positive, in spite of slight yield increases in Portugal and Greece, thanks to good overall operating performance.

In fact, the Direct Income from Investments recorded an 8% increase compared to the first nine months of 2009, mainly due to the increase of the portfolio with the inaugurations of LOOP5 in Germany and Manauara Shopping in Brazil in 2009, and LeiriaShopping, in Portugal, in 2010.

EBITDA recorded a 13% increase, and is now at €89.9 million, compared to the €79.7 million presented in the first nine months of 2009. This increase derives not only from the inaugurations mentioned above, but also from efficiency gains as a consequence of the pro-active and persistent efforts in containing cost increases in all areas of the company.

Sonae Sierra's portfolio presented a positive performance when compared with the first nine months of last year, with sales growing 6.9% (+1.5% like-for-like) in Europe and 24.6% (+17.8% like-for-like) in Brazil (in Reais). The Total Rents grew 11.2% when compared with the same period of last year (+4.8% like-for-like).

The Occupancy Rate of the portfolio remained high and stable, recording a value of 96.4% at the end of September 2010.

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 according to 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 September 30 2010, was €1.25 billion, an increase of 2.0% compared to the value recorded at the end of 2009.

New project under construction and several agreements for third party property management and leasing
Sonae Sierra continues with its growth and expansion strategy, although the company has adjusted its development timings to the evolution of the financial and retail markets.

During the third quarter of this year the company successfully completed the food-court refurbishment of Centro Vasco da Gama (Lisbon, Portugal), and started the construction of Boulevard Londrina (Londrina, Brazil), a 47,800-m² GLA shopping center that represents an investment of €97 million which is scheduled to open in 2012.

At the end of the first nine months of 2010, the company has three new shopping centers under construction and seven 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 Spe

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