Multiplan

On July 30th, Multiplan released its results for April to June 2015. The financial and operating data show this was the best second quarter in five years. Records were broken in the period for sales, rental revenues, recovery of doubtful debt, occupancy costs and rates, and profits, among others.

Sales totaled R$ 3.2 billion in the period, up 4.8%, reaching the equivalent of R$ 1,486 per m² per month. In the last five second quarters, sales grew by a total of 84.0%. The increase was a result of the successful delivery of expansions, changes in tenant mix and the consolidation of new shopping malls.

Most notably, the Morumbi Corporate office complex in the second quarter of this year reached 90% of GLA leased and registered R$ 15.0 million in rental revenues, compared to R$ 10.1 million in the same period of 2014; BarraShopping delivered sales growth of 7.4%, and continues to reap good returns from its new expansion; MorumbiShopping presented 6.7% sales increase in the second quarter, based on a strong growth (16.5%) over the same period, driven by continued improvement in the mix of tenants, leading the mall to post the highest sales/m² of Company's portfolio; and Shopping Vila Olimpia's sales rose 22.3% in the second quarter due to the changes that mainly benefited the mall’s third and fourth floors.

The payment delinquency rate was 1.5% in the last three months. The occupancy rate in the shopping centers remained stable in the second quarter of 2015 at 98.4%. Despite the 8.0% increase in rental revenues, growth of sales and control of mall condominium expenses enabled the cost of occupation to remain stable compared to the second quarter of 2014, at 12.6%.

The low availability of store space triggered the development of small expansions in six shopping centers, totaling 10,228 m² of GLA in the short term.

Gross revenues totaled R$ 287.0 million between April and June, with rental income as the largest component, at R$ 201.1 million, an increase of 8.0% over the same period 2014.  

Net income rose 3.2% compared to the second quarter last year, reaching R$ 96.3 million. The EBITDA remained stable at R$ 186.0 million, down slightly by 0.6%.

Due to the positive performance in June 30, 2015, Multiplan announced payment of R$ 90.0 million in interest on shareholders' equity before taxes, based on the financial statements as at May 31, 2015.

Net Operating Income (NOI), an important industry gauge, increased 11.3% to R$ 227.3 million in the second quarter of 2015, benefited from the increase of 8.6% in rental plus parking revenues and a 11.2% reduction in shopping centers expenses.

Multiplan ended the quarter with net debt of R$ 1,928.9 million, compared to R$ 1,759.8 million the previous quarter, impacted by its lower cash position (-33.2%), due to disbursements related to the payment of dividends and interest on shareholders' equity and investments. The current scenario shows a net debt/EBITDA ratio in 12 months of 2.44x, with net debt equivalent to 11.8% of the fair value of the properties.

In the last quarter, the company launched a new mall, ParkShoppingCanoas, purchased land for a future greenfield project, bought constructive potential, delivered strategic expansions and analyzed new projects totaling 256,000 m² of GLA.