Multiplan

Same Store Rent (SSR) revenues were up 8.8% in the third quarter of 2014, with real growth of 2.7%. Rental revenue was 19.1% higher, reaching R$ 184.4 million in the period, driven by portfolio consolidation and an increase in area. Same Area Sales (SAS) increased 6.7% in the quarter and 9.1% in the first nine months of the year. Same Store Sales (SSS) increased 6.1% and 8.4%, respectively. Satellite store SSS was 7.3% higher in the quarter and increased by 9.0% over the first the nine months.
 
Multiplan's malls posted a 98.8% occupancy rate in the third quarter of 2014, the highest rate since the record 99.1% set in 4Q09. This was true even with delivery of 228,700 m² of GLA since 2009. The shopping centers in operation for more than five years recorded a 99.5% occupancy rate. The payment default rates and loss of rental income were 1.7% and 0.8%, respectively.
 
Gross revenues increased 13.5% in the third quarter of 2014, reaching R$ 307.3 million, while consolidated EBITDA was up 13.9%, rising to R$ 186.3 million. EBITDA for the last 12 months was 10.2% higher than the same period of the previous year, reaching R$ 708.8 million.
 
Gross revenues increased 13.5% in the third quarter of 2014, totaling R$ 307.3 million and consolidated EBITDA was 13.9%, going to R$ 186.3 million. The 12-month EBITDA was 10.2% higher than the same period last year, reaching R$ 708.8 million.
 
Multiplan's average cost of debt remained at 10.5% per year at the end of the third quarter of 2014, coming in for another quarter below the Selic rate, 46 base points. within the curve.
 
In the third quarter, net income was R$ 68.2 million, 21.3% lower than in the same three months of prior year. The reduction mainly was a result of higher taxes, because the provision for payout of interest on shareholders' equity in the third quarter of 2013 did not occur in the last quarter. There was also an increase in financial expenses, due to the increase in interest rates, and an increase in depreciation and amortization, rersulting from the delivery of a mall (Parque Shopping Maceió), two expansions (RibeirãoShopping) and a commercial tower (Morumbi Corporate) in the second half of 2013, and a further expansion delivered in the second quarter 2014. This result was partially offset by increased net revenues(11.9%). Despite the decline in the quarter, net income rose 7.2% in the nine months of this year, to R$ 243.9 million.
 
The average cost of Multiplan's debt remained at 10.5% per year at the end of the third quarter of 2014, yet another period under the Selic rate of 46 basis points in the curve.
 
Also worthy of mention, in October 2014 Multiplan concluded a debentures issue equivalent to R$ 400 million, maturing in five and six years, and a cost of CDI + 0.87% p.a. In parallel, the company prepaid existing debentures (R$ 300 million) issued in 2011 at a cost of CDI + 1.01% p.a., payable until 2015/2016. As a result of these debt management actions, Multiplan extended its amortization schedule and reduced its average cost of debt. Also in October 2014, the company signed a R$ 100 million financing contract at a cost of TR + 8.90% p.a.