The consolidated net profits (after minority interests) of Sonae Imobilária totalled €45.32 million for the third quarter 2004, compared to €170.52 million for the same period of last year. However, last year’s figure was impacted both, by the set up of the SIERRA Fund (September), and by the 50% sale of Centro Vasco da Gama (March).
In consolidated terms, Sonae Imobiliária ended the third quarter of 2004 with Direct
profits of € 35.5 million, equal to an increase of 36% compared to the same period of
Consolidated operational cash flow (EBITDA) reached € 75.44 million compared to €
66.99 million in the third quarter of 2003, an increase of 12.6%, despite the sale of 50%
of Centro Vasco da Gama to ING Real Estate in March 2003, with the consequent
reduction in rents and other income. EBITDA was positively influenced by the openings
of Parque Atlântico (Azores, Portugal), Coimbra Retail Park (Coimbra, Portugal),
Estação Viana (Viana do Castelo, Portugal) and the opening of the expansion of
CascaiShopping (Cascais, Portugal) in 2003, as well as by the openings of Dos Mares
(Murcia, Spain), Avenida M40 (Madrid, Spain) and Boavista Shopping (São Paulo,
Brazil) during the current year. Late last September, and therefore not influencing the
EBIDTA, Shopping and Leisure Centre Luz del Tajo, in Toledo, Spain, was
inaugurated, representing an investment of € 77 million.
Also in September 50% of Parque Atlântico, in the Azores, was sold to the SIERRA
Fund for € 26.1 million, which generated a profit of € 0.9 million.
The consolidated Balance Sheet shows the sound financial position of Sonae
Imobiliária. Gearing (measured as net indebtedness as a percentage of total assets less cash and equivalents) was 26.3% as at 30 September 2004, a very favourable percentage for this type of business.
Rental Income continues to grow
The overall performance of Sonae Imobiliária’s shopping and leisure centres (owned or
co-owned) was positive and in line with expectations.
In Portugal, the total rental income of Sonae Imobiliária’s 14 shopping and leisure
centres, 1 retail park and 2 commercial galleries increased 13.9% compared to the same period of 2003. It should be noted that Parque Atlântico (Azores), Estação Viana (Viana do Castelo) and Coimbra Retail Park (Coimbra) opened during the fourth quarter of 2003. On a like-for-like basis, total rental income increased 6.7%.
In Spain, Sonae Imobiliária is the owner (or co-owner) of 9 shopping and leisure
centres, with a total of 427 thousand m2 of GLA. Total rental income increased 11.8%
compared to the same period of 2003. It should be noted that Dos Mares (Murcia),
Avenida M40 (Madrid) and Luz del Tajo opened during 2004. On a like-for-like basis,
total rental income increased 2.1%.
In Brazil, Sonae Imobiliária owns or co-owns 7 shopping centres after the opening of
Boavista Shopping, in São Paulo, last April. Representing a total GLA of 242 thousand
m2. Total rental income from the Brazilian portfolio increased 14.1% in Brazilian real,
compared to the same period last year. On a like-for-like basis, growth was 10.3%.
Developments being marketed in national territory
During the third quarter of 2004, the construction and marketing of the three Shopping
Centres under development, Covilhã Shopping (Covilhã), LoureShopping (Loures), and
Rio Sul (Seixal), continued as planned. These centres are expected to open from the
autumn of 2005 onwards.
In the meantime, the proceedings required for the beginning of the construction of
Setúbal Retail Park, a joint development with Miller Developments, are underway.
Reinforcement in Spain
The construction and marketing of the shopping and leisure centre Zubiarte, Bilbao, are
proceeding at a brisk pace. This joint venture between Sonae Imobiliária and the ING
Group (50/50) is scheduled to open on 26 November. This project represents an
investment of € 83.4 million.
Construction and marketing continues at Plaza Éboli shopping and leisure centre in
Pinto (Madrid region). The