Maia, Portugal, May 13th 2008
A 20% growth when compared to the same period of 2007
Sonae Sierra recorded a Net Profit of €22.9 million in the first quarter
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Net Operating Margin grew 31% to € 47.6 million
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Net Profit attributable to the shareholders grew 34%
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NAV per share reached € 51.31
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Sierra Portugal Fund was launched
Following its growth and expansion strategy, Sonae Sierra continued to develop, in the first quarter of 2008, a total of 14 shopping and leisure centres, and also has 15 new projects in different stages of completion in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total GLA of 1 million m2.
Of the most significant moments of this first quarter, we highlight the launch of the Sierra Portugal Fund (SPF) - with a € 300 million equity - which now owns eight shopping centres under operation in Portugal, with a total market value of € 425 million, and the commitment to include three projects planned for Portugal that represent a total estimated value of € 235 million at inauguration. With this operation, Sonae Sierra reinforced its objective of increasing its asset management business, through the creation of long-term partnerships, that offer to investors a return through dividends and the capital appreciation resulting from the investment in high quality shopping and leisure centres in Portugal.
In Brazil the Company launched its 11th shopping and leisure centre. Located in the city of Londrina, state of Paraná, this development of Sonae Sierra Brasil represents an investment of € 53 million, and is scheduled to be inaugurated in March 2010.
In Romania Sonae Sierra established a 50:50 joint venture with Caelum Development for the development of Parklake Plaza, one of the biggest regional shopping centres in Bucharest, which is scheduled to open in April 2011. Whit 110.000 m2 of GLA the project represents an investment of €591 million.
Financial position and Results
Sonae Sierra achieved a Net Operating Margin of € 47.6 million in the first quarter of the year, which represents a 31% growth compared to the first three months of 2007. This growth is mainly due to the increase in the portfolio in operation (openings and acquisitions of 2007) and to the better performance of the already existing portfolio.
Sonae Sierra ended the first quarter with a Direct Profit of € 16.9 million, which corresponds to a decrease of 23% compared to the same period of 2007. This was mainly caused by the growth in Financial Costs (+67%) and the negative impact of the Brazilian Real devaluation in the 1st quarter of 2008.
The Company achieved an Indirect Profit of € 6 million, mainly as the result of the 40% sale of the Sierra Portugal Fund, clearly better than the negative Indirect Profit recorded in the first quarter of 2007.
In consolidated terms the Net Profit was € 22.9 million (+ 20% compared to the 1st quarter of 2007), of which € 18.7 million attributable to the Equity Holders (+34%).
Value metrics
Sonae Sierra's Net Asset Value (NAV) per share was, on March 31st 2008, €51.31 (€52.69 on 07/12/31). This 2.6% decrease was essentially due to the distribution of the 2007 dividends, booked in March 2008.
The Net Operating Income generated by each service activity (Developments, Asset Management and Property Management) in the first quarter of 2008 was as follows:
Sonae Sierra's Consolidated Profit and Consolidated Balance Sheet
Sonae Sierra, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping and leisure centre industry. The Company owns 48 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of more than 1,9 million m2. Sonae Sierra has 13 projects under development and 15 new projects in different phases of completion in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil with a total GLA of 1 million m2. In 2007, its centres welcomed more than 410 million visits.