Multiplan's results in the 1st quarter of 2020, released on April 29, presented a positive evolution in revenue, profit, EBITDA, net operating result (NOI) and operating cash flow (FFO), despite the temporary suspension of the operations of the Company’s 19 own malls as of the second half of March. In response to the impacts of the new coronavirus pandemic, the Multiplan has implemented a series of initiatives to bolster our financial position and provide support to tenants and communities in the face of the current global scenario.
In the quarter, Multiplan's net revenue reached R$ 326 million, an increase of 5.9% compared to the same period in 2019, benefiting from the recent acquisitions of stakes in malls in its portfolio and the performance during the first two months of the quarter.
The tenant support measures taken by Multiplan had an impact on rental revenue, which declined by 5.6% when compared to the same quarter in 2019, totaling R$ 236.3 million.
Tenant sales in Multiplan's shopping centers reached R$ 3.1 billion in the quarter, down 10.2% over the same period of the previous year - a result impacted by the temporary suspension of the Company's mall operations as of March 18. Considering only January and February, store sales rose 7.8% compared to the same period in 2019, totaling R$ 2.5 billion.
Net income grows 93.3%
The Company's net income reached R$ 177.7 million in the quarter, an increase of 93.3% compared to the first quarter of 2019. The result mainly was benefited by the 5.9% growth in net revenue; 11.7% reduction in general and administrative expenses, reflecting the Company's initiatives to reduce costs; 16.7% reduction in expenses with properties, benefited by the recovery of non-recurring expenses and a higher occupancy rate; and a 22.6% reduction in financial expenses due to the recent debt renegotiations and a reduction in the prime interest rate (Selic).
The Net Operating Result (NOI) reached R$ 298.1 million, an increase of 7.4% in relation to the first quarter of 2019. EBITDA was R$ 343.7 million, 49.1% higher than the same period last year.
The was a 131% increase in the contracts signed between Delivery Center and tenants
In March, the new contracts signed between Delivery Center and the Company's tenants increased 131% in relation to the previous month, expanding the participation of retailers beyond the food category. Online orders for the Company's projects through the Delivery Center increased by 66.4% in the first half of April, compared to the same period of the previous month.
Support to tenants and preventive measures
The Company offered tenants a 50% reduction in condominium charges and an exemption from payment of the promotion fund, in addition to offering a 50% reduction in the rent for the month of March. In addition, through the Superapp Multi and the Delivery Center, which also integrates stores with various applications and marketplaces, the Company offered tenants a channel to remain in touch with mall clients, who are looking for faster delivery service.
Multiplan is also supporting communities in the regions where it operates, with donation campaigns; partnerships for the use of parking lots in COVID-19 testing and influenza vaccination actions; educational campaigns on shopping mall media channels; and drive-thru sales, offering convenience and security for tenants and customers.
The Company also purchased 100,000 masks and 25,000 tests for COVID-19, in addition to hiring infectious disease consultants to orient the implementation of the most appropriate procedures to ensure the safety and preservation of the health of clients and employees.
