Multiplan Empreendimentos Imobiliários released, on Thursday (July 28), its earnings results for the second quarter of 2022 (2Q22) reporting the breaking of a number of records due to stronger sales, higher occupancy rates and a falling default rate. Store sales reached R$ 4.9 billion, surpassing 2Q21 by 64.5% and 2Q19 by 28.9%. All malls grew at rates higher than 25% in 2Q21, with ShoppingVilaOlímpia (+112.9%), RibeirãoShopping
(+104.7%), and MorumbiShopping (+98.7%) featured the highlights for the quarter.
Same Store Sales (SSS) also grew 58.5% over 2Q21, with an emphasis on the Services and Food segments, which grew in relation to the same period a year ago with increases of 94.9% and 80.8%, respectively.
In the first 24 days of July, Multiplan's malls recorded sales growth of 23.8% compared to the same month in 2021 and 23.6% compared to July 2019, continuing good sales results in 2Q22.
In 2Q22, Multiplan's malls held more than 170 events (an increase of 26.3% compared to 2Q19), including not only events related to social issues, but also a strong increase in those focused on fostering greater engagement with people: gastronomy, children's recreation and events related to specific dates (such as Mother's Day, Valentine's Day and Easter).
Strong cash generation and shareholder value
In 2022, Multiplan fully utilized its share buyback program, investing R$ 100.3 million, and recently announced a new share buyback program of up to 14 million, nearly double the previous one. In June, the Company also announced a R$ 145 million payout of interest on own equity (IOE) by June 2023, a 44.4% payout ratio based on the record net profit of R$ 344.1 million in the first half of 2022.
Digital Innovation and Multi Application Growth
Through the Multiplan app, Multiplan's malls, once again, are welcoming their customers to the events for which they are well known, generating flows and higher sales. With more than 2.5 million downloads accumulated, the Multi app was used, in this quarter, by almost 700,000 unique customers (+ 110.3%), more than double the same period of the previous year. The MultiVocê relationship program, which is available in all shopping malls managed by Multiplan, obtained about 100,000 new participants in the second quarter of 2022 alone.
Historic second quarter rental revenue record
Multiplan's total rental revenue (sum of malls and corporate towers) ended the quarter at R$ 374.9 million, an increase of 45.1% over 2Q21 and 41.1% over 2Q19, driven mainly by the effect of the 55.6% IGP-DI adjustment in the period.
Shopping mall rental revenue reached R$ 361.1 million in the quarter, an increase of 49.6% compared to 2Q19, and represented 96.3% of total rent revenue. It was the historical maximum of this line for a second quarter and the second highest value recorded in Multiplan's history, mainly due to the SSR (same store rent indicator) of 59.5% in the period, the acquisition of minority stakes in the period, and the inauguration of ParkJacarepaguá, in November 2021.
In the first half of 2022, rental revenue from the malls reached R$ 701.3 million, an all-time high for the period, up 50.1% over the first half of 2019 and 66.8% over the first half of 2021.
Net income, Gross Revenue, NOI, EBITDA and FFO rise and break records
Net income almost doubled year-over-year to R$ 172.6 million for the quarter, an increase of 84.0% over 2Q21 and 49.7% over 2Q19, benefiting from higher net income despite greater financial expenses as a result of steeper interest rates compared to 2019 levels. In addition, the first half of 2022 posted net income of R$ 344.1 million, an all-time record, up 145.7% over 2Q21 and 66.1% over 2Q19.
Gross revenue totaled R$ 473.2 million in 2Q22, the highest ever recorded by the Company (excluding the effects of the sale of Diamond Tower in 3Q20), 58.7% higher than in 2Q21, and 32.3% up on 2Q19, mainly due to the R$ 109.3 million increase in rental revenue.
Net Operating Income (NOI) ended the quarter at R$ 368.9 million, also an historical record for a second quarter, 51.2% above 2Q21 and an increase of 25.8% compared to 2Q19. Operating revenue of R$ 428.0 million in the quarter was likewise a record for a second quarter and the second highest quarter in Multiplan's history. The NOI for the first half of 2022 reached R$ 711.3 million, another record for the Company, with an increase of 59.8% in relation to the first half of 2021 and 24.6% against the first half of 2019.
EBITDA reached R$ 287.6 million in the quarter, a record for a second quarter, 61.3% above 2Q21 and 34.3% above 2Q19, mainly due to the 34.4% increase in net revenue in the quarter. In the first half of 2022, the indicator totaled R$ 583.0 million, a historical maximum for the period, an increase of 88.3% compared to 1H21 and 31.1% higher than in the first half of 2019.
Operating Cash Flow (FFO) totaled R$ 231.7 million in the quarter, the highest FFO recorded by Multiplan in a second quarter, an increase of 49.9% compared to 2Q21 and 43.9% compared to 2Q19. The Company has maintained a positive FFO since 2007, the year in which it opened its capital on the Brazilian Stock Exchange (IPO). The FFO margin reached 53.1%, an increase of 350 p.b. compared to 2Q19. In addition, the first half of 2022 recorded a record FFO in the period, reaching R$ 442.3 million, an increase of 103.8% compared to 1H21 and 47.3% higher than in 1H19.
stre de 2022 registrou um FFO recorde no período, atingindo R$ 442,3 milhões, um aumento de 103,8% em relação ao 1S21 e 47,3% superior ao do 1S19
