SONAE SIERRA'S PROFITS DROP 39% TO € 110M

SONAE SIERRA'S PROFITS DROP 39% TO € 110M

 

 

According to the company, the decline is explained by the "lower value created in investment properties".  At the same time, EBIT reached €105 million, 8.5% more than in the same period, and the direct result was €65 million, plus 14%.

The sales of the Sonae Sierra shopkeepers increased by 7.8% in Europe compared to the previous year.  In Portugal and Spain, sales rose 5.6% and 10.8%, respectively.  The portfolio incomes rose 7.6% globally, 8.4% in Europe.

The global occupancy rate of the company's portfolio fell 0.6% to 96%, remaining stable at 97.1% in Europe. It increased to 99.1% in Portugal and 94.4% in Spain.

To Fernando Guedes de Oliveira, CEO of Sonae Sierra, "2017 was a very positive year for Sonae Sierra, both operationally and financially. In addition, we have enlarged our exposure to project development and extended the geographic scale and coverage of our services."

 

Company follows actively the capital recycling strategy

In 2017, Sonae Sierra executed several acquisitions and disposals of assets, for example through Iberia Coop, where it holds a 10% stake, which acquired 100% of Albufeira Retail Park.  Through socimi Ores, an investment vehicle created in partnership with Bankinter, it acquired 16 investment properties, 9 in Spain and 7 in Portugal.

It also established a partnership with AXA IM for the acquisition of the Área Sur Shopping Center in Spain or with Occidental to purchase MaiaShopping and GuimarãeShopping from the Sierra Fund. This, in turn, sold AlbufeiraShopping and C. C. Continente from Portimão to Square AM.

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