Portuguese shopping centre specialist Sonae Sierra saw net profit surge 116% to EUR 14.9 mln in Q3 2010 compared to the same period last year. The increase was mainly driven by a 42% rise in direct results following additions to the portfolio. These included LOOP5 in Germany and Manauara Shopping
Portuguese shopping centre specialist Sonae Sierra saw net profit surge 116% to EUR 14.9 mln in Q3 2010 compared to the same period last year. The increase was mainly driven by a 42% rise in direct results following additions to the portfolio. These included LOOP5 in Germany and Manauara Shopping
in Brazil in 2009, and LeiriaShopping in Portugal this year.
EBITDA (earnings before interest, tax, depreciation and amortisation) rose 13% in the first nine months to EUR 89.9 mln from EUR 79.7 mln in the year-earlier period. The increase not only reflected the new additions to the portfolio, but also efficiency gains and cost reductions.
Including the new malls, Sonae Sierra saw sales increase by 6.9% over the period in Europe, and by 1.5% on a like-for-like basis. The Brazilian operations turned in an even stronger performance, with total sales rising 24.6% and 17.8% on a like-for-like basis. Rental income increased by 11.2% year-on-year and by 4.8% on a like-for-like basis.
The occupancy rate of the portfolio edged up 0.5% to 96.4% at end-September. Net asset value (NAV) based on the INREV (European Association for Investors in Non-listed Real Estate Vehicles) guidelines came to EUR 1.25 bn at end-September, an increase of 2% compared to the value
recorded at the end of 2009.
At end-September, Sonae Sierra had three new shopping centres 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 Spezia, which is scheduled to be inaugurated in the third quarter of 2011, representing an investment of more than EUR 125 mln. The complex is currently, 65%-pre-let.
During the third quarter of this year the company also successfully completed the food-court refurbishment of Centro Vasco da Gama (Lisbon, Portugal), and started construction of Boulevard Londrina in Brazil, a 47,800 m2 GLA shopping centre that represents an investment of EUR 97 mln which is
schedule to open in 2012. Besides Boulevard Londrina, the company is also developing Uberlândia Shopping. Scheduled to open in 2011, the project represents a total investment of EUR 62 mln.
During the third quarter, the company signed three new service contracts to lease and/or manage third-party shopping centres in Spain, Italy and Greece. Also in the services forefront, Sonae Sierra is currently providing development services to third-party projects in Portugal, Italy, Romania, Cyprus, Serbia, Morocco and China.