Multiplan

On February 24, Multiplan announced its 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 of 2012. In 2013, total sales were R$ 11.4 billion, 16.3% higher than in 2012.
 
The same store sales (SSS) increased 7.6% in the fourth quarter, reaching R$ 1,894 per m² per month. For the year, the same index increased 7.4%. Both anchor and satellite stores posted consistent performance: the anchor stores grew 8% last quarter and 7.7% over 2013, while satellite store growth was 7.2% and 7%, respectively. Sales per m² in stores with less than 1,000 m² reached R$ 2,546 per month in the fourth quarter, while stores under 200 m² sold R$ 2,950 per month in the same period.
 
All Multiplan malls registered sales growth in the year, with the highlights being RibeirãoShopping at 17.4% and Shopping Santa Ursula up 13.4%, both in the city of Ribeirão Preto. For its part, ParkShopping São Caetano, in its second year of operation, recorded an increase of 14.4% in 2013. The three new malls that were opened in 2012, as well as the 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, surpassing 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%, reaching R$ 684.2 million in 2013.
 
Due to these results, gross revenue showed strong growth, increasing 10.6% in the fourth quarter of 2013 against the same period of 2012, reaching R$ 295 million. In the year, gross revenue totaled R$ 1.1 billion, an increase of 21.7% over 2012, excluding the non-recurring impact of the sale of the Morumbi Business Center in 2012.
 
There was also an increase of 15.4% in Net Operating Income (NOI) + Assignment of Rights (CD), to R$ 744.1 million in 2013. Consolidated EBITDA ended the year at R$ 610.7 million. The result, when the sale of the Morumbi Business Center is excluded, is 12.7% higher than in 2012. EBITDA for the fourth quarter of the year, impacted by non-recurring operating expenses involving legal fees and payment of REFIS, was R$ 138.8 million, 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. These results were affected non-recurring operating expenses and the aforementioned legal expenses as well as higher interest expense depreciation.
 
With three new malls, it was expected that the operating expenses would be substantially higher in 2013. The company chose to invest in promotion, advertising, the provision of better services to speed up development and protection of the new projects against competition.
 
On December 17, 2013, Multiplan announced payment of before-tax interest on shareholders' equity of R$ 45 million, based on the 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 and its land bank stands at 631,000 m², with a number of projects approved.