Multiplan

On February 24, Multiplan announced its earnings results for the fourth quarter and full year of 2013. Sales in the group's 18 shopping centers totaled R$ 3.7 billion in the fourth quarter of 2012, 14.0% higher than in the same period 2012. In 2013, total sales reached R$ 11.4 billion, 16.3% higher than in 2012.
 
Same store sales (SSS) rose 7.6% in the fourth quarter, reaching R$ 1,894/m² per month. During the year, the same index increased 7.4%. Both anchor as well as satellite stores recorded consistent performance: the anchor stores grew 8% last quarter and 7.7% in 2013, while the satellites were up 7.2% and 7.0%, respectively. Sales per m² for stores with less than 1,000 m² reached R$ 2,546/month in the fourth quarter, while stores below 200 m² sold R$ 2,950/month in the same period.
 
All Multiplan malls posted sales growth in the year, especially RibeirãoShopping with 17.4% and Shopping Santa Úrsula with 13.4%, both in the city of Ribeirão Preto, and ParkShopping São Caetano in its second year of operation, with an increase of 14.4% in 2013. The three new malls opened in 2012, along with Parque Shopping Maceio, in partnership with Aliansce, contributed R$ 1 billion in sales in 2013.
 
Same store rent (SSR) increased by 8% in the fourth quarter and 9.6% in 2013, exceeding the adjustment of the IGP-DI and IPCA by 2.5% and 3.5%, respectively. Along with the new areas opened in the last 12 months, rental revenue increased by 18.7% to R$ 684.2 million in 2013.
 
Due to these results, there was strong growth in gross revenue, which increased 10.6% in the fourth quarter of 2013 compared to the same period of 2012, reaching R$ 295 million. In the year, gross revenue was R$ 1.1 billion, an increase of 21.7% compared to 2012, excluding the non-recurring impact of the sale of Morumbi Business Center in 2012.
 
There was also a 15.4% increase in Net Operating Income (NOI) + Assignment of Rights (AR) to R$ 744.1 million in 2013. Consolidated EBITDA at the end of the year was R$ 610.7 million. Excluding the Morumbi Business Center sale, the result was 12.7% higher than in 2012. EBITDA for the fourth quarter of the year was R$ 138.8 million and was impacted by non-recurring operating expenses represented by legal advice and payment of REFIS, 19.0% lower than in the previous period.
 
Net income and FFO (an important industry indicator) reached R$ 57.1 million and R$ 88.7 million in the fourth quarter, or R$ 284.6 million and R$ 426.2 million in 2013, respectively. Non-recurring operating expenses and the aforementioned legal expenses as well as higher interest expense depreciation affected these results.
 
With three new malls, it had been expected that operating expenses would be significantly higher in 2013. The company chose to invest in promotion, advertising and better services to accelerate the development and protection against competition impacting the new ventures.
 
On December 17, 2013, Multiplan announced payment of before-tax interest on shareholders' equity of R$ 45 million, based on its financial statements as at November 30, 2013. During the year, the company also announced payment of R$ 135 million in interest on shareholders' equity.
 
Multiplan invested R$ 775 million in 2013. Currently its land bank totals 631,000 m² and a number of projects have been approved.