Sonae Sierra's Consolidated Net Profit reached €163.7 million in the first six months of 2007, which represents a growth of 17% on the same period of last year.
In consolidated terms, Sonae Sierra ended the first half of 2007 with a Direct Profit of €44.2 million, an increase of 13% compared with the first six months of 2006. Indirect Profits reached €119.5 million, an increase of 18% compared to the same period of last year. Net Operating Margin fell 1.2% to €70.8 million.
Sonae Sierra's Net Asset Value (NAV) per share, as at 30 June 2007, amounted to €49.06 (€45.82 on 31/12/2006), an increase of 7.1% during the first half of 2007. All the Company's real estate properties were independently valued, and their Open Market Value (OMV) as at 30 June 2007 totalled €5,430 million (€4,728 million as at 31/12/2006), of which the part controlled by Sonae Sierra represents €2,691 million. On a like-for-like basis, the OMV increased by 9.3%.
Sonae Sierra's consolidated results were greatly influenced by the acquisitions of new shopping centers and by the increase in value of real estate properties owned, as a result of a general decrease in yields in Portugal, Spain, Italy and Brazil.
During the first six months of 2007 there was a considerable growth in activity, resulting mainly from the acquisitions of the Modelo Shopping Centre in Albufeira and the Continente Shopping Centre in Portimão, in Portugal, the Münster Arkaden, in Germany, and the River Plaza, in Romania, as well as the acquisition of a further 73% of the Shopping Metrópole (83% owned by Sonae Sierra Brasil), a further 5% in the Shopping Tivoli (30% owned by Sonae Sierra Brasil) and a further 10% in the Plaza Sul (30% owned by Sonae Sierra Brasil), in Brazil.
Expansion continues at a good rate
Sonae Sierra's expansion strategy continues, with the development of a significant portfolio of projects in different phases of execution, combined with new business opportunities in markets where the Company already has a presence or even in new markets.
Among the more significant projects in progress, it is noteworthy that in Portugal 8ª Avenida Shopping (S. João da Madeira) is almost complete, and is due to open on 27 September 2007. In addition, the future shopping and leisure center in Évora, the result of the expansion of the already existing Modelo, is due to open to the public in 2009.
In Spain, the inauguration of El Rosal (Ponferrada), a project developed in partnership with the Mall Group (70/30), is set for 23 October this year, while the development of Plaza Mayor Shopping (Malaga) continues, in partnership with Castle City (75/25). This year, too, Sonae Sierra and Miller Developments acquired a plot of land in Las Pulianas, near Granada, where a shopping center and retail park will be built with a total GLA of 45,000 m².
In Italy, Freccia Rossa (Brescia), developed in partnership with AIG and Coimpredil, is set to open in the spring of 2008, while Gli Orsi (Biella) is due to be inaugurated in the autumn of next year. In the spring of 2009, the new shopping and leisure center Le Terrazze (La Spezia), developed in partnership with ING Real Estate, will be inaugurated.
In Germany, Alexa (Berlin) is being finalised and is scheduled to open on 12 September this year, and Loop 5 (Weiterstadt) is under construction, both in 50/50 partnership with Foncière Euris.
In Greece, the development of the Galatsi Olympic Hall (Athens) one of the 2004 Olympic Games areas which will be converted into a shopping and leisure center continues and is due to be opened to the public in the second half of 2008. Pantheon Plaza (Larissa), a project being currently developed in partnership with Rockspring, is due to open in the spring of next year.
Finally, in Brazil, Sonae Sierra Brasil carries on with the construction of Manauara Shopping, in Manaus, with a GLA of 43,300 m², which is expected to be completed in the spring of 2009.
Source: Sonae Sierra
