Multiplan

Multiplan announces its first quarter 2014 results. The company has a consistent sales performance. Multiplan shopping centers tenants posted total sales of R$2.7 billion in 1Q14, 11.2% higher than in 1Q13. The three malls opened in 4Q12 posted combined sales growth of 35.2%.

Same Area Sales (SAS) accelerated 9.3% in 1Q14, and Same Store Sales (SSS) increased 8.3% in the quarter.  SSS for satellite stores showed a strong performance: grew 8.7% in the quarter, while anchors increased 5.8%. In the last twelve months, sales per m² from stores under 1,000 m² amounted to R$ 24,348/m², while from stores under 200m² totaled R$ 27,756/m².

Delinquency rate and rent loss remained at historical low levels, with 1.9% and 0.5%, respectively. Occupancy costs fell back to 13.7%, same level recorded in 1Q11. Occupancy rate at the end of the quarter was 98.5%, 100 b.p. higher than 1Q13, with 97.5%, in spite of the new areas recently added.

Same Store Rent (SSR) increased 6.8% in 1Q14, on top of an already high growth in 1Q13 of 11.4%, and higher than the IGP - DI adjustment effect of 5.9%. Rental revenue, including the straight line effect, saw an increase of 9.4% reaching R$ 179.3 million in 1Q14. Gross revenue increased 15.5% in 1Q14 versus 1Q13, reaching R$284.0 million.
Net Operating Income (NOI) + Key Money (KM) reached R$196.0 million in 1Q14, 7.7% higher than in 1Q13. In the last twelve months, NOI + KM increased 10.0% to R$754.6 million. In 1Q14 NOI + KM per share 1 was of R$1.05, implying a five – year CAGR of 14.3%.

Consolidated EBITDA was R$196.6 million in 1Q14, 23.4% higher than in 1Q13, impacted by the double-digit net revenue growth and non–recurring items. Net debt/EBITDA fell from 3.03x in 4Q13 to 2.94x in 1Q14 and weighted average cost–of-debt increased 54 bps to 10.4% p.a., while the basic interest rate increased 75 bps to 10.75% p.a. as of March 31st , 2014.
Strong growth in net income and FFO, of 16.8% and 26.1%, respectively. Net income achieved R$82.3 million and FFO was R$128.6 million in 1Q14. These results were impacted by the organic growth, new areas opened in 2013, non-recurring items, as well as higher net financial expenses and depreciation.

About Multiplan - Multiplan is one of the leading shopping center companies in Brazil, established as a full service Company that plans, develops, owns and manages one of the largest and highest-quality mall portfolios in the country. The company is also strategically active in the residential and commercial real estate development sectors, generating synergies for shopping center-related operations by creating mixed-use projects in adjacent areas. In the end of 1Q14, Multiplan owned - with an average interest of 73.9% - 18 shopping centers with a total GLA of 756,694 m², of which 17 shopping centers managed by the Company, over 4,800 stores and an estimated annual traffic of 170 million visits. In addition, Multiplan owned - with an average interest of 92.4% - two corporate office complexes with a total GLA of 87,558 m².