Consolidated Financial Statements 1st Semester 2009 - Sonae Sierra

Management Financial Statements by business
We present financial statements by businesses.
Sierra Investments – 6M09 Financial Results
• Shopping Centre Net operating income (NOI) increased by 3% to €86 million
• Direct Profit of €41 million, an increase of 14%
• Losses in Value created on properties of €164 million
In the first six months of 2009, Sierra Investments had a negative contribution to the Consolidated Results of € 85
million. As portfolio owner, it was mostly affected by the upwards adjustment on European market capitalization
yields. The company consolidates the Sierra Fund in full, given that it holds effective control with 50.1% of the
capital and consolidates the Sierra Portugal Fund by the proportional method, as the interest in SPF is 42%.
Direct profits
The direct profits of Sierra Investments are derived from the operation of shopping and leisure centres that are
part of its portfolio, including those assets that are in the Sierra Fund and in the Sierra Portugal Fund. The direct
profits also include the asset management services provided to the properties by Sierra Asset Management.
Direct Profit was 14% above previous year, mainly due to higher shopping centre operating margin (increase of
the portfolio and the organic growth of the existing portfolio) and higher financial result (due to lower interest rates
on the loans paying variable interest rate), partially compensated by the adverse variance in Asset Management
Operating Margin.
The decrease in asset management net operating income over 2008 is due to lower income – decrease in the
investment properties market value, as well as, a reduction in the fee charged to Sierra Fund properties.
Net Financial costs are 8% lower compared to 2008 because of lower interest rates, as financial costs are around
€ 9 million lower than in previous year, mainly due to the decrease in the market interest rates and also due to the
change in the consolidation method of SPF, which changed from total to proportional.
Indirect profits
The market value of the investment properties continues to be affected by the negative climate in the properties’
markets of most of the developed countries where the Company operates. This context led to an upwards shift of
the capitalization yields applied in the valuations carried out on assets in those countries, this increase implying a
reduction in the value of the corresponding property. The losses in value created on investment properties
reached the amount of €164 million in the first half of 2009, reflecting the mentioned average yield increase.
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