Maia, Portugal, 12nd March 2010
Sonae Sierra recorded a Direct net profit of €76.8 million in 2009, a growth of 20% versus last year
- Direct Income grew 4% to €311.2 million in 2009
- Net Operating Result grew 6% to €180.3 million in the same period
- Occupancy levels of the portfolio stood at 94.5%
- NAV of €1.23 billion
- Open Market Value of Assets under Management reach €6.34 billion
- Two new shopping centres inaugurated in Germany and Brazil
- Successful placement of Parque D. Pedro Fund through a public offer
Sonae Sierra has consolidated, during 2009, its expansion and internationalization strategy, and closed the year with a portfolio of 51 shopping centres in operation, spread throughout seven countries, with a total Gross Lettable Area (GLA) of about 2 million m².
The Company Net Consolidated Profit in 2009 was negative of €159.9 million compared with a negative Consolidated Result of €185.5 million in the same period of last year.
The Net Consolidated Profit in 2009 was driven by the Indirect Result that is adversely affected by the continuous increases in market capitalization yields in Europe. This is caused by the negative climate in the property markets of most of the developed countries where the Company operates. This context led to an upwards shift of the capitalization yields applied in the valuations carried out on assets in those countries, this increase implying a reduction in the value of the corresponding property.
In the last months of 2009 we have started to observe a reduction of the pace in the increase of the yields and, at the same time, there were operational improvements in the Portuguese and German portfolio, but still insufficient to compensate the yield effect.
In Brazil, it should be highlighted the continuous improvement of the operational activity, as well as, the yields decrease in some assets which allowed us to balance the yield effect in the European portfolio. In 2009 Sonae Sierra's Direct Net Profit reached €76.8 million (+20%), compared to the €64.1 million in the same period of 2008 due to the combination of three factors: (i) increase in the portfolio; (ii) the cut cost efforts implemented by the Company in 2009; and (iii) the lower interest rates.
The Direct Income from Investments is 4% above 2008 mostly due to the increase in the portfolio - the openings of 2008 in Europe: Freccia Rossa, Plaza Mayor Shopping, Gli Orsi and Pantheon Plaza; and the openings in 2009 of Manauara, in Brazil, and Loop5, in Germany which more than compensate the Development services decrease due to the reduced number of projects under developments.
The Company's Net Operating Result reached €180.3 million in 2009, 6% above the same period of last year.
Net Asset Value
The Company measures its performance, in a first instance, on the basis of changes in Net Asset Value (NAV) plus dividends distributed. The Company calculates its NAV on the basis of the guidelines published in 2007 by INREV (European Association for Investors in Non-listed Real Estate Vehicles), an association of which the Company is a member.
On the basis of this methodology, the NAV of Sonae Sierra, as of the 31 December 2009, was €1.23 billion, corresponding to a NAV per share of €37.78.
Two shopping centres inaugurated and three more under construction
Sonae Sierra's growth and expansion strategy continues although the company has adjusted the development timings to the evolution of the financial and retail markets.
Following the successful opening in Brazil, of Manauara Shopping (Manaus) last April, the company has inaugurated in October Loop5 (Weiterstadt, Germany), representing an investment of €265 million, the shopping centre had more than one million visits in just two weeks which give us a strong confidence for its future performance. Additionally the Company successfully concluded the expansion of GuimarãeShopping and the renovation of Centro Colombo and AlbufeiraShopping, all in Portugal. In Italy we also concluded the renovation of Valecenter in Venice.
At the end of 2009, the Company continued to develop three new shopping centres and has in the development pipeline a total of 12 new projects in Portugal, Italy, Germany, Greece, Romania and Brazil.
In Portugal, Sonae Sierra is currently developing LeiriaShopping (Leiria), an investment of €79 million, scheduled to open in March of 2010 and in Italy the Company has just started the construction works of Le Terrazze, in La Spezia. Finally, in Brazil, Sonae Sierra Brasil has just started the construction of Ubêrlandia Shopping, an investment of €62 million, as well as the expansions of Parque D.Pedro, in Campinas, and Shopping Metrópole, in São Bernardo do Campo.
International recognition during 2009
During the year we were rewarded for our leadership as developers and managers of environmentally advanced, sustainable shopping centres. Among the awards received we highlight:
- Ranked first for the fourth time in the "Corporate Climate Responsibility: ACGE Sectorial Index" by Euronatura
- Winner of the 2009 Quotidiano Immobiliare Daily Real Estate Award as best company in the Retail and Commercial Real Estate sector in Italy
- "Green Centre" concept acknowledged as excellent at the European Commission's Sustainable Energy Europe Awards
- Winner of Euromoney magazine's award as "Best Developer" in Portugal and Spain
- Personæ Project voted Europe's Best Risk Training Programme at European Risk Management Awards 2009
- Colombo Towers were considered the best office project in Portugal in the Portuguese Real Estate Fair SIL.
Sonae Sierra's Consolidated Profit and Loss Account, and Consolidated Balance Sheet
The financial statements of Sonae Sierra Brazil correspond to the consolidated accounts of the European parent plus the Brazilian business (50% of these consolidated accounts corresponds to the contribution to Sonae Sierra).
Sonae Sierra, www.sonaesierra.com, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping and leisure centre industry. The Company owns 51 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of 2 million m2. Sonae Sierra has 3 projects under construction and 9 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2009, its centres welcomed more than 436 million visits.