Sonae Sierra sees 25% increase in Q1 net result

International shopping centre group Sonae Sierra reported a net result of EUR 13 mln in the first quarter of 2012, up 25% on the year-earlier period.

Sonae Sierra said direct profit rose to EUR 17.8 mln in Q1 2012 from EUR 14.4 mln a year earlier, mainly due to operational efficiency gains and the improvement of financial results. However, indirect profit slipped 20% as a result of devaluations of its investment properties.

The company said there is a high level of uncertainty with regard to property values in some of the European markets in which it operates. 'Valuers have been stating in their reports that the significant uncertainty on the macro-economic front leads to very low levels of transactions that can serve as a reference for values,' the shopping centre owner-developer said in a statement.

In response, Sonae Sierra has decided to change its valuation policy and move from quarterly valuations to half-yearly valuations. 'This brings the company in line to what is still the normal practice in most property markets,' Sonae Sierra added.

The first quarter saw the opening of Le Terrazze, the company's fifth centre in Italy, and Uberlândia Shopping, its 11th centre in Brazil. The two new centres represent a total investment of EUR 229 mln and increase the gross lettable area (GLA) managed by Sonae Sierra by about 84,000 m².

Sonae Sierra manages more than 70 shopping centres with a total gross lettable area (GLA) of about 2.2 million m² with about 8,500 tenants. The company's assets under management stand at EUR 2.6 bn.