Shopping centre specialist Sonae Sierra boosted net profit by 66% to €79.3 mln in the first six months of 2015 compared with the year-earlier period, reflecting increased rents in both the European and Brazilian markets.
Shopping centre specialist Sonae Sierra boosted net profit by 66% to €79.3 mln in the first six months of 2015 compared with the year-earlier period, reflecting increased rents in both the European and Brazilian markets.
The Portuguese company, which is active in 17 countries across four continents, reported a direct result of €26.8 mln, up 22% on the same period in 2014. Sonae Sierra attributed the growth to increased rents at its European and Brazilian shopping centres, the economic recovery in Europe and an increased occupancy rate at its recently opened Brazilian shopping centres.
The indirect result amounted to €52.5 mln, more than double the year-earlier figure, mainly due to yield compression in Europe and the overall improved operational performance in 2015.
Tenant sales in the European portfolio grew by 2.8% on a like-for-like basis, fuelled by 3.3% growth in Portugal, 2.4% in Spain and 5.8% in Italy.
Fernando Guedes de Oliveira, CEO of Sonae Sierra, said the first six months of 2015 were marked by the company's ‘highly improved operational and financial performance, demonstrating our ability to achieve gains from the recovery of the European market’.
Sonae Sierra strengthened its third party service provision activity in the first six months of the year, with contracts to manage and let six new shopping centres in Germany (Quarree Wandsbek-Markt, Mercado and Geschaftshaus Ottensen), Italy (Ligabue), Spain (C.C. Bahia Mar, in Puerto de Santa Maria) and Romania (Marasti Parking, in Cluj).
In addition, the company signed seven new development services contracts in countries including Italy, Turkey, Mozambique and Tunisia.
