SONAE IMOBILIÁRIA-SGPS, S.A.
Sede social: Lugar do Espido, Via Norte, Maia
Capital Social: 187.125.000 Euros
Matriculada na Conservatória do Registo Comercial do Porto sob o nº 2252-A
Pessoa Colectiva nº 502290811
Sociedade Aberta
September 12th, 2001
Sonae Imobiliária: Net Consolidated Profits grew by 21,2% in the 1st semester
1. Financial Performance: Results before taxes grew by 27,7%
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Net consolidated Profits of Euro 12.8 million (PTE 2.573 billion), 21.2% growth when compared to the same period last year;
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Profits up by 47.6%, Euro 150.7 million (PTE billion 30.2);
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Operating Results before Amortisation and Provisions (EBITDA) grow by 29.4% for a total of Euro 35.2 million (PTE billion 7.059);
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Stock exchange shares value went up by 13% since December 29th2000;
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Market capitalisation at the end of the 1stsemester was Euro 531.8 million (PTE 106.6 billion);
2. Developing new projects
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MadeiraShopping, AlgarveShopping and Parque Principado (Oviedo, Spain) successfully inaugurated;
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Joint venture agreement for promoting and developing a new shopping and leisure centre in Ponta Delgada, Azores;
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Commercial launch and media presentation of Plaza Mayor shopping and leisure centre in Malaga, Spain;
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Announcement of inauguration of 1stPhase of Dom Pedro shopping and leisure centre in Campinas, São Paulo, Brazil, in March 2002;
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Announcement of the development of Sonae Imobiliária's first outlet centre - "Malaga Outlet" - to be built next to Plaza Mayor;
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Began construction on Madrid's "Avenida M 40", shopping and leisure centre;
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Continued efforts for developing of new centres in Athens, Greece and in Dortmund, Germany.
3. Shopping centres show good results
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Total rental income increased by 18.9%;
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MadeiraShopping had 2.57 million visits and AlgarveShopping had 3.68 million visitors;
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Expansion work for 660 new parking places in CascaiShopping's parking lot;
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Total rents in Brazil increased by 2.4%;
4. 3,810 contracts and 1,042,151 m2 of GLA under management
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Portugal: centres have over 110 million visits (6.7% increase) and have sales of over Euro 657 million, a 16.4% growth;
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Spain: visits increase 19% and sales go up 27.5%
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Brazil: managing 109,265 m2 GLA in five shopping centres and 822 lease contracts;
5. Car Parks: turnover of Euro 2.2 million
6. Residential: several ongoing projects
7. Environment: adapting BREEAM methods
8. New technologies: "SonaeShopping" on the go
1. Financial Performance
Sonae Imobiliária's Net Consolidated Profits (after Minority Interests) reached Euro 12.8 million (PTE 2.573 billion) in the first semester, which means a growth of 21.2%, when compared to Euro10.6 million (PTE 2.123 billion) in the same period last year.
Results before taxes were up by 27.7%, and total income was of Euro 150.7 million (PTE 30.2 billion), a growth of 47.6% on the same period of 2000 which can be explained by the organic growth of already established shopping centres and by the opening, in this period, of new ones, such as MadeiraShopping, AlgarveShopping, in Portugal and Parque Principado, in Spain.
The Operating Results before Amortisation and Provisions (EBITDA) was Euro 35.2 million (PTE 7.059 billion), a growth of 29.4% on the same period of last year.
As of June 29th, 2001, Sonae Imobiliária's shares closed at Euro 14.18 in the Lisbon and
Porto Stock Exchange (BVLP). During this first semester, its share price increased by 13% relative to December 29th, 2000, while the PSI-30 index decreased by 18.6%. The market capitalisation of the Company at semester-end was Euro 531.8 million (PTE 106.6 billion).
It should be reminded that the Net Asset Value, as of the 31 Dec 2000, of the properties attributable to Sonae Imobiliária (including residential and other properties, in Portugal and abroad) was Euro 752 million (151 billion Escudos), or Euro 20.05 NAV of the properties per share.
2. Promoting new projects
In the first semester, Sonae Imobiliária strengthened its global activities by opening some new shopping and leisure centres and by developing new projects in several markets.
The two shopping centre developments last year, MadeiraShopping, in the Island of Madeira and AlgarveShopping, at Guia, Algarve, were inaugurated, as planned and with success, on the 28 March 2001 and 24 April 2001 respectively.
During the first semester, a joint-venture agreement is close to being signed with the local Grupo Nicolau de Sousa Lima, relating to the development of a shopping and leisure centre in Ponta Delgada, Açores. This centre will result from the expansion by 13 000 m2 of an existing supermarket being operated by our partner and total investment should reach Euro 33 million.
There are still ongoing studies aimed at getting a license for the promotion and development of Setúbal Retail Park, in Setúbal, a 50/50 co-promotion with Miller Developments, with an approximate area of 20.000 square metres and an investment of approximately Euro 22 million.
On April 24th, as expected, Parque Principado opened in Oviedo, Spain. This shopping and leisure centre with approximately 70.000 m2 GLA, it is a partnership with Whitehall Funds (50%) and Lar Grosvenor (25%).
In February, Sonae Imobiliária had the market launching and media presentation of Plaza Mayor shopping and leisure centre, in Malaga, currently undergoing development and to be opened to the public March 2002.
In May Sonae announced the promotion of their first outlet centre - "Malaga Outlet" -, a new project located close to Plaza Mayor and developed together with Castle City (25%). The first stage has an area of approximately 16,700 m2.
Also this semester, construction started of "Avenida M 40" shopping and leisure centre, in Madrid. This project is being developed jointly by Sonae Imobiliária (60%) and Grupo Eroski (40%), and is expected to open in April 2003.
In March, Sonae Imobiliária was awarded the "Developer of the Year" prize, in Spain, sponsored by "Spanish Real Estate", a specialist publication.
In Greece, through Sonae Charagionis, SA, Sonae Imobiliária's Athens-based subsidiary, the company continued to endeavour to achieve the necessary permits for the promotion and development of Aegean Park, a sub-regional shopping and leisure centre with a GLA of 60,000 m2, located in the Greater Athens area.
Through SonaeWest Shopping, AG, Sonae Imobiliária's German-market, Düsseldorf-based subsidiary, the company is still undertaking studies towards obtaining a license to promote and develop a shopping and leisure centre in Dortmund expected GLA of 55,000 m2.
Still in Europe, Sonae Imobiliária is trying to expand their activity into other markets, namely into Austria, France and Italy, in association with local partners. In Italy, Sonae have had an operational company in Milan since the end of 2000.
Finally, in Brazil, Parque D. Pedro, in Campinas (State of São Paulo), is under construction. This centre is held 92% by Sonae Imobiliária and 8% by Sonae Enplanta. When the first phase opens in March 2002, the centre will have a GLA of 105,000 m2, for a total 390 shops, and an investment of approximately Euro 100 million.
With the necessary prudence and caution, as required by the present Brazilian situation the Company continues to analyse other investment opportunities in this market.
3. Shopping centres show good results
Both in Portugal and abroad, Sonae Imobiliária's shopping centres have shown good results in the first semester of 2001, as expected.
In Portugal, recently opened MadeiraShopping has already had 2,570 million visits and is 97.5% let in terms of number of shops. AlgarveShopping has had 3.680 million visits and is 98.5% let, also in terms of number of shops.
In June, work on CascaisShopping's car park was terminated. This allowed for 660 more parking spaces and finished the centre's second stage of expansion.
With MadeiraShopping and AlgarveShopping, Sonae Imobiliária now owns, or co-owns, 11 shopping centres, 1 Retail Park and 3 shopping galleries, for a total GLA of 550,671 m2, in Portugal.
During the first semester of 2001, the total rental income from this portfolio increased 18.9% relative to the same period in 2000. On a like-for-like basis this increase was 11.8%.
In Spain, recently opened Parque Principado, in Oviedo, is 100% let and rents and sales are in line with expectations. In Brazil, all five centres co-owned by Sonae Enplanta showed an acceptable, although diverse, performance as total rental showed an increase of 25%, when compared to the first semester of 2000.
4. Managing 3,810 contracts and 1,042,151 m2 GLA
Sonae Imobiliária's activity in managing, marketing and letting shopping and leisure centres is still growing. In this semester, there was an increase in managed area, as well as in sales and rental profits.
After the opening of MadeiraShopping and AlgarveShopping, Sonae Imobiliária now manages globally 3,810 contracts in a GLA of 1,042,151 m2.
At the end of the first semester of 2001, in Portugal, Sonae Imobiliária managed a total 792,375 m2 GLA, for a total of 2,796 contracts with tenants. These centres had over 110 million visits (an increase of 6.7% when compared to the same period last year) and sales were over Euro 657 million, going up by 16.4%, when compared to the first six months of 2000.
The performance of the company's 11 shopping centres, 3 galleries and Sintra Retail Park in Portugal was very positive in these six months. In this portfolio, the number of visits went up by 6.4% and sales went up by 16%, when compared to the same period last year. On a like-for-like basis, the number of visits increased by 1,3% and sales went up by 8,8%. The occupancy rate in number of stores was 96.6% and 96.4% in GLA.
In Spain, CCC, Sonae Imobiliária Madrid-based subsidiary, managed in the first semester 2001, a total GLA of 140,511 m2 and 192 contracts with tenants. The number of visits grew by 19% and sales grew by 27.4%. On a like-for-like basis, the number of visits was flat and sales dropped by 1.6%. Occupancy rate hit 98.5% in number of stores and 97.4 % in GLA.
Through Unishopping, Sonae Imobiliária manages 109,265 m2 of GLA in five operating shopping centres and 822 contracts with tenants This Brazilian portfolio received 20.6 million visits (down 11.6% on the first semester of 2000), corresponding to sales of over Reais 179.7 million (Euro 91.6 million) an increase of 6.2% on the same period of last year. The occupancy in this portfolio reached close to 100%.
5. Car Parks: turnover reached Euro 2.2 million
During the first semester of 2001, SPEL - the car parking specialist held 50% by Sonae Imobiliária and 50% by SABA - Sociedad de Aparcamientos de Barcelona, SA (Spain) -generated a turnover of Euro 2.2 million (PTE 435 million), an increase of 1.2% in relation to the first semester of 2000. This small increase in turnover was caused basically by a 31.5% decrease on the turnover generated by the Praça de Lisboa car park in Porto, Portugal, due to the difficulties in access created by roadwork in the surrounding streets.
As of June 30th 2001, SPEL was operating 12,394 car-parking places in 8 car parks and metered zones.
In this semester, SPEL has won the tender for the construction and operation of a surface car park in the Estádio Universitário de Lisboa, with a capacity for 390 cars and a total investment of Euro 1.022 million. Inauguration is expected to occur in early December
2001.
Further to this park, the Company expects to inaugurate, during the second semester of 2001, another four car parks and parking zones, totalling 1,630 places and increasing the total number of car parking places in operation in car parks and parking zones to 14,414.
6. Residential: several ongoing projects
During the first semester of 2001, Praedium, the Sonae Imobiliária subsidiary focussed on residential development, delivered to customers as planned, the apartments at Condomínio Douro Foz, in Oporto, and started in June delivering apartments at Torre S. Gabriel, in Lisbon.
Construction continued at Edificio Seda (78 apartments), in Matosinhos, Oporto. On May 9th 2001, the Company obtained the construction license for Edifício Seda II (80 apartments) also in that city followed by the commercial launch. Still in Matosinhos, work started on the projects for the third residential building (80 apartments) and the architecture plans for an office building were submitted to the City Hall in January.
Sonae Imobiliária signed a joint-venture agreement with Grupo Lar from Spain, in February 2001, for the development of a residential project in Campolide, Lisbon, Portugal; at the same time, work started on the projects so that submission may occur by next October. Still in Lisbon, we are waiting for the construction license for Torre S. Rafael (135 apartments) to be issued, since all projects are already approved.
Still during the first semester, work continued on the projects for Country Club da Maia (310 units), in Maia, Oporto. The Company has also requested from Matosinhos City Hall, the Plot Partitioning License for the Efanor site in Matosinhos, Oporto.
7. Environment: adapting BREEAM methods
During the first semester of 2001, Sonae Imobiliária continued to implement of the Environmental Management System for shopping centres, with the support of a team from PriceWaterhouseCoopers since May.
Work has started on adapting the BREEAM methods (Building Research Establishment Environmental Assessment Scheme, BRE - Foundation for Building Environment, UK) to shopping centres, so as to apply them to existing and new centres, in Portugal, Spain, Brazil, Italy, Germany and Greece. The purpose is to standardise good environmental practices covering such areas as: energy saving, transportation, water conservation, pollution, resource usage, choice and utilisation of materials, ecology and welfare, adapted to the realities of the different countries.
As well as the application of strict environmental requisites behind the design and construction of MadeiraShopping and AlgarveShopping, there have also been environmental audits to NorteShopping, Viacatarina, CoimbraShopping and MaiaShopping. The recommendations of these reports are still being analysed, so as to be integrated in each centre's Environmental Action Plans.
8. New technologies: SonaeShopping on the go
In the first semester of 2001, Sonae's "New Technologies Business Department" (NTBD) began implementing "SonaeShopping" project. This project is about creating a portal to provide services for shop tenants, called "SonaeShopping.net" and about creating sites for each separate shopping centre, grouped into a portal called "SonaeShopping.com", that should provide digital access to the offer that is present in the Sonae Imobiliária's shopping centres.
These privileged communication tools that should go online before the end of this year, are being developed jointly by Sonae Imobiliária and WeDo, a SonaeCom company, with the active participation of shopping centre tenants and suppliers.
Other projects and affiliation services, that aim to maximise the value of the centres through new technologies, are under discussion with selected partners and include video-walls, interactive kiosks and loyalty cards.
FINANCIAL PERFORMANCE
Maia, 11th September 2001.
The Board of Directors.