According to Fernando Guedes de Oliveira, Sonae Sierra’s CEO, “Sonae Sierra delivered another solid operational performance in the first quarter of 2019, as it continued to focus on the execution of its long-term strategy of growing its services and development businesses and of capital recycling”.
Sonae Sierra’s EBIT increased by 9%, reflecting the improved performance of its portfolio in Europe and Brazil, as well as improvements in its Services business. This is particularly noteworthy as the increase in EBIT was affected by Brazilian Real exchange rate fluctuations, and portfolio disposals.
In the first three months of the year, the Company saw its Direct Result rise to €19.6 million, an increase of around 16% compared to the same period in 2018, driven by an improved performance of its asset portfolio, both in terms of rents and tenant sales, and a significant growth in its Services EBIT. Indirect net profit recorded a marginal improvement to -€0.5 million, mainly benefitting from the opening gain of Jardín Plaza Cúcuta.
As of March 31, 2019, Sonae Sierra’s NAV stood at €1.5 billion, a 1.6% increase compared to December 2018, mainly due to the Net Result of the period. Looking ahead, the Company will continue with its selective capital recycling activity whilst committing to the long-term strategic growth of its most dominant flagship assets in Iberia and focus on further strengthening its international presence through services provision activity and new developments.