Multiplan

On July 28, Multiplan announced its earnings results for the second quarter of 2014. Despite Brazil's hosting of the FIFA World Cup and macroeconomic uncertainties, Multiplan's malls continue to post strong growth. Total sales were R$ 3 billion in the period, 15.2% above the same quarter last year. In the first half, total sales reached R$ 5.7 billion, 13.3% higher than in the first six months of the previous year.
 
Same Area Sales (SAS) turned in the best performance since the fourth quarter of 2010: up 12% last quarter. For its part, same-store sales (SSS) were up 9.4% in the period, also a significant result. The growth mainly was driven by the food sector, with same-store sales expanding by 19.2%.
 
Same store rent (SSR) grew 10.1% in the second quarter of this year, showing real growth of 4.1%. Rental revenue was 21.6% higher, reaching R$ 186.2 million in the period, supported by the consolidation of the new mall portfolio and delivery of new areas.
 
Multiplan's gross revenue rose 13.5% compared to the second quarter of 2013, totaling R$ 298.3 million for the period. Net income and FFO (an important industry indicator) grew 32.7% and 31.5%, respectively. Net income was R$ 93.4 million and FFO reached R$ 143.9 million in the second quarter of the year.
 
Consolidated EBITDA increased 25.6% to R$ 187.1 million, with growth of the margin by 591 basis points, to 68.6%. EBITDA in the last 12 months was R$ 686.1 million.
 
The company continues to invest in the country, as it always has over its nearly 40-year history. In the last quarter, Multiplan invested R$ 79.6 million, of which R$ 41 million was for shopping center expansions, R$ 21.7 million went to acquire land and R$ 10.8 million was earmarked for renovations. The amount invested in the first half of 2014 was R$ 169.9 million.
 
In June, Multiplan opened the seventh expansion of BarraShopping, with gross leasable area (GLA) of 9,500 m². The mall's Medical Center also will be expanded. In the same month, the company announced a land swap agreement totaling 111 thousand m² for the development of a new shopping center in Parque Global in São Paulo, with approximately 80 million m² of GLA and possible development of office and residential towers. In addition, the company started pre-leasing for ParkShoppingCanoas, its 19th shopping center, located in Canoas, Rio Grande do Sul, involving 48,000 m² of GLA in its first phase.