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Emily Jensen
May 17, 2017
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Sonae Sierra revenue falls 4.2 percent to 15.9 million euros in first quarter

Translated by
Emily Jensen
May 17, 2017

Sonae Sierra ends the first quarter of the year with a decrease in revenues. Between January and March, the Portuguese company showed revenues of 15.9 million euros, a 4.2 percent drop from the results of the same quarter last year. 

The commercial center ParkLake in Bucharest - Sonae Sierra

By the company’s own estimate, the drop can be attributed to the partial sales of the shopping centers Loop5 (Germany), Luz del Tajo (Spain), Algarve Shopping and Estação Viana Shopping (Portugal), as well as to the reduction in its participation in the Sierra Portugal fund, in part compensated by the opening of Romania’s Park Lane complex in September of 2016.

In this period, the company continued with its strategy of recycling its capital. Through Iberia Coop, the fund in which Sonae Sierra maintains a 10 percent share, Sonae Sierra acquired two assets in Portugal, Albufeira Retail Park and the hypermarket Continente de Algarve Shopping. 

In addition, through the real estate investment company Oren, in which Sonae Sierra holds a stake along with the Spanish bank Bankinter, the company began other acquisition processes.

The total sales of the portfolio’s tenants showed an increase of 4 percent in the first three months of 2017 compared to the previous year, with an increase of 4.6 percent in Brazil (excluding the change in currency). In Europe, sales increased 3.8 percent, with Portugal growing by 3.9 percent, and Spain .4 percent. 

The firm’s occupancy rate reached 93.6 percent, compared to 95 percent from the same period last year. In Europe, its centers reached 97 percent occupancy. 

Rents increased by 7.8 percent in Europe due to the opening of a new Romanian center, and on a comparable basis, above the rate of inflation. Meanwhile in Brazil, rates increased by 4.7 percent, slightly below the rates of the previous period. 

The net revenues of the first quarter were 15.1 million euros, a 2 percent drop from last year. The revenues before taxes were 25.1 million, compared to 25.4 million the previous year. 

With regards to the Ores acquisitions, the first purchases from investment put forth by Sonae Sierra and the Spanish bank Bankinter included the purchase of two Forum Sport stores in the cities of Bilbao and Pamplona. 

The Ores plan concerns investments of 400 million in commercial acquisitions for first locations in the major cities of Spain and Portugal, with a focus on hypermarkets, supermarkets, commercial parks and major commercial thoroughfares. 

Additionally, the Portuguese firm is developing two new commercial centers in Colombia and Morocco, as well as a Design Outlet in Málaga and various expansions of its complexes on Iberian soil. 

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