On February 24, Multiplan announced its earnings results for the fourth quarter and full year of 2015. Store sales increased by 4.5% and same area sales grew 3.3% in 2015, coming off a strong base from 2014. The 1.5% difference between same area and same stores sales reflects the positive changes achieved in the tenant mix. The company took out 30,727 m² of GLA, the equivalent to the size of a shopping center, and replaced it with more productive stores.
Sales growth, especially in the fourth quarter, also came about due to a successful marketing campaign, with a drawing of 252 SUV vehicles in Multiplan's shopping centers.
Since 2010, annual sales almost doubled, from R$ 7.5 billion to R$ 13.3 billion. In a period of ten years, since 2005, sales more than quadrupled from the starting amount, adding R$ 10.2 billion.
Despite the adversity, Multiplan's malls proved to be resilient throughout the year. MorumbiShopping in São Paulo, in its 34th year of operation, posted a 6.3% increase in the year and 8.9% in the fourth quarter. Pátio Savassi in Belo Horizonte, was 7.7% and 11.6% higher, respectively, while ShoppingVilaOlímpia, also in São Paulo, was 16.4% and 8.4% higher, respectively.
Another positive result delivered by Multiplan was the growth of same stores rental revenue, which rose 6.2% in the quarter and 7.4% on the year, indicating a real increase of 2.4% in 2015. The result was achieved due to the strong growth, of 8.8%, of this indicator in 2014.
Rental revenue rose by 7.5% and parking revenue grew 12.2% in 2015, leading to an 8.7% increase in NOI+key money in the period.
The average occupancy rate was 98.0% in the fourth quarter and 98.3% in 2015.
The occupancy cost was slightly lower in the quarter, at 11.6%, and on the year, at 12.6%, as a result of reduced condominium expenses, in contrast to the increase in rental revenue.
All expenses combined presented a decline of 26.7% in the quarter and 12.0% in the year, resulting in an increase in the company's margins.
The net debt/EBITDA ratio remained stable at 2.4x and the cost of the debt was 13.09%, 116 b.p below the Selic rate at the end of 2015. Through liability management, the maturities of debts totaling R$ 262 million were extended, resulting in a short-term debt equivalent to 25.6% of 2015's FFO + cash position.
Net income rose 10.9% in the fourth quarter, reaching R$ 137.7 million, and the FFO was R$ 175.2 million in the quarter. In 2015, net income was R$ 362.2 million, a decline of 1.6%, and the FFO reached R$ 530.7 million, equivalent to R$ 2.83 per share. The consolidated EBITDA for the quarter presented growth of 1.5% over the same period in 2014, reaching R$ 227.3 million. In the year, the indicator was R$ 789.2 million, off 0.6%, due mainly to a reduction of R$ 98.5 million (-83.9%) in real estate sales.
In 2015, a total of R$ 225 million in dividends was announced in the form of Interest on Shareholders Equity, the largest annual distribution made to date, representing a payout of 64.7% of net income after legal reserves.
