Total retail sales reached R$ 3.378 billion
Multiplan released the results for the third quarter of 2017 on October 30. The company reported that total retailers' sales in the group's 18 malls reached R$ 3.378 billion, up 8.1% over the third quarter of 2016, with five malls growing by more than double-digits in the period. Total rent revenue grew 9.4%, to R$ 233.7 million.
For the first time since 2014, Same Store Sales growth surpassed that of Same Store Rent, with the former standing at 7.3% and the latter at 6.7%, demonstrating an improvement in shopkeeper performance.
Net income reached R$ 75.6 million in the period, a 30.2% increase over the third quarter of 2016, mainly due to a 7.9% boost in net revenue, a 66.1% reduction in income tax and social contribution expenses, driven by the R$ 65.0 million distribution of Interest on capital in the quarter, and a 9.4% drop in net financial income, partially offset by the effect of share-based compensation.
Net operating income (NOI), an important indicator of the efficiency of companies in the sector, increased 8.3% in the third quarter, with a margin of 86.7%, aided by lower property expenses (-2.3%) and the rental revenue increase. Adjusted EBITDA rose 7.3% to R$ 205.6 million, with a margin of 70.6%.
The net debt-EBITDA ratio stood at 2.35x in September 2017. After management of liabilities, Multiplan's gross debt was extended from 47 to 50 months.
ParkShoppingCanoas is finalizing the final details for its opening. The inauguration is confirmed for November 23 and the shopkeepers are preparing their spaces for the date. Meanwhile, the company is completing construction of the complex's common areas. At the end of September 2017, 93.1% of the GLA had been leased.
In September 2017, Multiplan announced the approval by the Deliberative Council of the Atlético Mineiro Club of its proposal to acquire a 50.1% interest in DiamondMall for the amount of R$ 250 million. In the same month, the Company announced the distribution of R$ 65 million in Interest on Own Capital.
To access the full results report click on the link https://goo.gl/MkXZ86
