Profit of Sonae Sierra reached 96.3 million, 27 times more than … – publico

                 

                         
                     

                 

 
                         

The profit of Sonae Sierra, business unit manager of shopping centers in the Sonae group (PUBLIC Owner), had last year a profit of 96.3 million euros, almost 27 times more than the 3.6 million recorded in the previous year.

                     

                         The company said the profit on the direct result contribution of around EUR 52.7 million and the indirect result of 43.6 million euros.

In the document, Sonae Sierra explains that the result Direct fell 9% compared to 2013, “influenced by the impact of sales occurred in Europe in late 2013, the negative effect of the exchange variation of the Real” and “the strengthening of corporate structure to meet the growth in new geographies.” However, advances, that on a comparable basis and excluding the unfavorable effect of the average of the real exchange rate, the direct result increased by 5.6% due to the resilience and quality of the portfolio of assets and the company’s management capacity.

But the indirect result increased over the previous year with the recovery of European markets, reflected in the compression of capitalization rates, improving the operational performance of assets, both in Europe and in Brazil, the positive impact of the sale of 40% of Le Terrazze in Italy, the sale of land next to Alexa in Germany and the strengthening position in AlbufeiraShopping and CC Continente de Portimão, Portugal.

The company said that tenant sales of European portfolio rose 3.3% last year, on a basis comparable with 2013 and highlights the increase of 5.5% in Portugal and 4.5% in Italy.

The Brazil continued to show a positive performance, rising tenant sales 8.4%, also on a comparable basis year on year.

Overall, the global portfolio managed by Sonae Sierra received more than 440 million visits in 2014.

EBITDA (gross profit) fell 5% to 107.8 million euros and operating income also fell by 5% to 106.1 million euros.

Sonae Sierra “continues to benefit from easy access to financing in the financial and capital markets”, says the company, and the average cost of debt of Sonae Sierra was five percentage points lower than in 2013, lying currently at 3.8%. Excluding Brazil, the average cost of debt is 3.2%, and remained comparable with their European competitors.

Sonae Sierra said the start of construction in Romania of Parklake, project represents an investment of 180 million and whose inauguration is scheduled for 2016 and the agreement signed with the McArthurGlen to develop a “designer outlet” in Malaga, southern Spain, which represents an investment of 115 million euros.