Original article by: ESM
International retail real-estate company Sonae Sierra has recorded a net profit of €64.2 million in the first half of 2017, representing a 9% increase compared to the same period last year.
The company says that a higher EBIT (up 6% to €50 million), a better financial result, and higher value created in investment properties contributed to the positive result.
“The growth in results in the first six months of 2017 confirms the success of our strategy and reflects our dynamic management approach,” said Fernando Guedes Oliveira, CEO of Sonae Sierra.
Tenant sales in the company’s European portfolio grew by 6.9% compared to the same period in 2016, with significant growth in Romania due to the opening of ParkLake in Bucharest, and an increase of 7.1% in Portugal and 5.2% in Spain. Tenant sales in Brazil grew by 7.3% in local currency.
However, the global occupancy rate of the portfolio fell marginally by 0.3% to 95.8%. Occupancy rates were largely stable in Europe, but in Brazil fell from 93% to 92.3%.
As part of Sonae Sierra’s capital recycling strategy, Iberia Coop (in which the company holds a 10% stake) acquired Albufeira Retail Park, and ORES (in which the company is operating partner and 3.75% shareholder) acquired five new assets in Spain and Portugal.
Sonae Sierra says that its service provision activity was ‘considerably strengthened’ in the first half of the year, with 89 new contracts signed.
The company currently has six development projects in the pipeline, in Nuremberg (Germany), McArthurGlen Designer Outlet Malaga (Spain), Zenata Shopping Centre (Morocco), Jardín Plaza Cucuta (Colombia) and the NorteShopping and Centro Colombo expansions in Portugal.