28th April 2005

Sonae Sierra net profits increase by 34 %

In the first quarter of  2005, Sonae Sierra's consolidated net profits were  €27.5 million, which represents a growth of 34 per cent in comparison to the same period in 2004. This shows a highly positive performance in the first three months of the year.

The direct net results of investments went up by 8% compared to the first quarter of 2004 (to €13.4 million), while EBITDA was more than 20% (to €29 million), due particularly to the growth in the company's portfolio after the opening in 2004 of four new shopping and leisure centres in Spain and a new shopping centre and an extension in Brazil.

Where new projects are concerned, the Plaza Éboli opened in Spain in the first quarter of 2005, representing an investment of €56.1 million, in partnership with Grupo Eroski. The company also signed an agreement with Mall Inversiones for a new shopping and leisure centre (Las Medulas) in Ponferrada, Spain, with an investment of around €110 million.

The company also announced the development of two new shopping and leisure centres in Italy, a strategic market for Sonae Sierra. These centres are expected to involve an overall investment of €320 million.

Another of the most important events in the company's activity in this quarter was the change of name from Sonae Imobiliária to Sonae Sierra. This global scale operation is part of  the  company's  international  expansion  strategy  of  recent  years  and  reinforces  its position as a European specialist in shopping and leisure centres.

Performance at the end of the first quarter of 2005

• NAV per share €33.20
• NAV (net asset value) of € 1.079 thousand million
• Revenue from operation of shopping and leisure centres grow  21%  (to  €39.7 million)
• Asset leverage of 30.5% ♦   Interest coverage ratio of 2.82
• Six new projects under construction  - Rio Sul (Seixal), SerraShopping (Covilhã) and LoureShopping (Loures) in Portugal; Alexa (Berlin) in Germany; Freccia Rossa (Brescia) in Italy; and Mediterranean Cosmos (Salonika) in Greece
• Owner or joint owner of 32 operating shopping and leisure centres and 1 retail park with 1.334 thousand million m2 of GLA
• Management of 6,200 contracts with tenants, occupying 1.87 million m2 of GLA