In the first half, the developer’s direct net profit reached 35.2 million euros versus 33 mn euros a year earlier. The variation in the consolidated net profit was mainly driven by the indirect net profit that was adversely affected by the continuous increases in market capitalization yields in Europe.

The Company’s net operating margin reached 85.9 million euros in the first half of 2009, 2% above the year-ago levels. The company’s results were weighed down by indirect results. In this area, the Company’s Equity Holders booked a loss of 113.9 million euros at the end of the first half of 2009, whereas they had booked a loss of 7.7 million euros in the same period of 2008.

The company reported direct income of 150.5 million euros, down 1% from year-ago half.

For the period under review, the company recorded operating income of 7% above the first half of 2008 mostly due to the increase in the portfolio – the openings of 2008 in Europe: Freccia Rossa, Plaza Mayor
Shopping, Gli Orsi and Pantheon Plaza; and the opening of Manauara in 2009, in Brazil.

At the end of the first six months of 2009, the Company continued to build two new shopping centers and one expansion and has in the development pipeline a total of 14 new projects in Portugal, Italy, Germany, Greece, Romania and Brazil.

“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”, reads the press release issued by the company.

In Portugal, Sonae Sierra is currently developing LeiriaShopping (Leiria), an investment of 75 million euros, and the expansion of GuimarãeShopping (Guimarães) which is planned to open in the last quarter of 2009. In Germany, the company is finalizing Loop 5 (Weiterstadt) which is due to open on October 9, 2009. Representing an investment of 265 million euros the shopping centre has already let 95% of its GLA.

Sonae Sierra has 3 projects under construction and 11 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2008, its centres welcomed more than 429 million visits.