International shopping centre specialist Sonae Sierra has seen its net result drop by nearly 80% in the first half of the year, largely as a result of yield expansion in Europe.
International shopping centre specialist Sonae Sierra has seen its net result drop by nearly 80% in the first half of the year, largely as a result of yield expansion in Europe.
The Portuguese-based group said its first-half net result came to EUR 2.9 mln due to the impact of negative valuation changes in its European portfolio, which were only partially offset by yield compression in Brazil.
The company's Earnings Before Interest, Taxes, Depreciation and Amortisation grew 4% to EUR 58 mln, compared to EUR 56 mln in the same period a year before.Direct profits increased by 10% to EUR 32 mln in the first six months of 2012, compared to EUR 29 mln in the same period a year before.
Over the past months, Sonae Sierra started a new phase of construction for the Solingen shopping centre in Germany, which is planned to open in the autumn of 2013. The 29,000 m2 mall represents an investment of EUR 120 mln, carried out in partnership with MAB Development. It is already more than 50% pre-let.
The company's total assets under management reached EUR 6.4 bn , a EUR 115 mln increase compared to the end of 2011, mainly due to the openings of Le Terrazze in Italy and Uberlândia Shopping in Brazil.
Currently, Sonae Sierra owns 51 malls in operation, and three under construction which represent a total investment of about EUR 375 mln.
