International shopping centre specialist Sonae Sierra reported a net profit of EUR 8.7 mln in 2010 compared to a loss of EUR 111 mln in 2009. The turnaround was mostly a result of lower yield compression and the resilience and increased operational efficiency of the group's assets.
International shopping centre specialist Sonae Sierra reported a net profit of EUR 8.7 mln in 2010 compared to a loss of EUR 111 mln in 2009. The turnaround was mostly a result of lower yield compression and the resilience and increased operational efficiency of the group's assets.
The Portuguese developer said that the result 'mirrors the success of its internationalization strategy, which helped it end the year with a portfolio of 51 shopping centres in operation in seven different countries with a Gross Lettable Area (GLA) of more than 2 million m2.
Direct income from investments increased 7% year-on-year to EUR 227 mln in 2010, reflecting the growth of the portfolio, with the inauguration of shopping centres Manauara (Brazil) and Loop5 (Germany) in 2009, the opening of Leiriashopping and the expansion of Parque Pedro (Brazil) in 2010.
Earnings Before Interest, Taxes, Debt and Amortization (EBITDA) posted a 13% increase to EUR 123.4 mln, compared to EUR 108.8 mln in 2009. Despite the impact of the economic situation on occupancy and rental levels, Sonae Sierra's global occupancy rate stood at 96.3% at year-end, from 95.9% at end-2009.
Sonae Sierra's growth and expansion strategy continued in 2010, although the company adjusted its development timings to the evolution of the financial and retail markets. In 2010, 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.
