Sonae Sierra's Net Consolidated Profit (after minority interests) reached 87,4 million for the first six months of 2006, which is an increase of 118% compared to the same period of last year.
In consolidated terms, Sonae Sierra ended the first six months of 2006 with Direct Profits of 41,3 million, which represent an increase of 51%, compared with the first six months of 2005. Indirect profits were 98,9 million, an increase of 118% compared to the same period of last year. EBITDA was 73,9 million in the first half of 2006 compared to 56,7 million in the first half of 2005, which represents an increase of 30,4%.
As of 30 June 2006, the NAV per share of the attributable property portfolio stood at 41,72 (38,90 as of 31/12/2005), an increase of 7,3% during the first six months of 2006.
As observed in 2005, Sonae Sierra´s Consolidated Results were greatly influenced by the inaugurations and acquisitions of new shopping centers and by the increase in value of assets owned, as a result of a general decrease in yields in Portugal and Spain. During the first six months of 2006 there was a considerable growth in activity resulting from the opening in 2005 of Plaza Éboli (Madrid, Spain), LoureShopping (Loures, Portugal), Serra Shopping (Covilhã, Portugal) and Mediterranean Cosmos (Thessaloniki, Greece and the recent inauguration of RioSul (Seixal, Portugal). The activity was also influenced by the acquisitions of Valecenter (Marcon, Italy), Airone (Monselice, Italy) and Plaza Sul (Brazil, São Paulo).
Expansion project in development
Sonae Sierra continues to pursue its expansion strategy, developing a significant portfolio of projects in different stages of development, to which new business opportunities may be added, in markets where the Company is already present, or even in new markets.
Among the most significant ongoing developments are, in Portugal, the "VIII Avenida Shopping" (São João da Madeira), due to open in the Autumn of 2007 in an investment of 48,5 million, and the future "Évora shopping and leisure centre", a project that is the result of the expansion of the already existing Modelo and represents an investment of 60 million. For 2007 is also expected the opening of "Lima Retail Park" (Viana do Castelo), a project that is result of the 50% partnership in Portugal with Miller Developments.
In Spain, Sonae Sierra is developing "Plaza Mayor Shopping" (Málaga), in a partnership with Castle City (75/25), and "El Rosal" (Ponferrada), with the Mall Group (70/30).
In Italy, Sonae Sierra has three ongoing projects at present: "Freccia Rossa" (Brescia), already under construction, "Gli Orsi" (Biella), developed in partnership with NovaCoop; and "Le Terrazze" (La Spezia), due to open in the Spring of 2008.
During the 1st half of 2006, Sonae Sierra decided the total write-off of the "Caselle" investment (Italy). This decision was taken given that the agreement Sonae Sierra had established with the land vendors could not be executed according to the initially established deadlines. Although the project had obtained the necessary detailed zoning plan approval, third parties have challenged this approval by filing complaints that jeopardized the timing of the development of the project and, therefore, the closing of the agreements with the vendors. Sonae Sierra is closely monitoring the situation, in order to be fully updated and to exploit any opportunity that might arise to establish a new agreement.
In Germany, the projects under development are "Alexa" (Berlin), currently under construction and commercialisation and a result of a partnership with Foncière Euris (50/50), the "3DO" (Dortmund), of which Sonae Sierra owns 100%, and "Weiterstadt" (Frankfurt), resulting from the acquisition of land already licensed.
In Greece, in a partnership (50/50) with the Greek group Acropole Charagionis, Sonae Sierra Sierra won a 40 year concession to develop the "Galatsi Olympic Hall" (Athens) one of the 2004 Olympic Games areas and exploit it as a shopping and leisure center.
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