On October 31, Multiplan announced its earnings results for the third quarter of 2016. The figures show operational improvements and stability in financial indicators. In the period, Multiplan's mall tenants recorded sales growth of 2.9%, reaching R$ 3.1 billion, a positive outcome in the face of the challenging economic conditions during the year. In the first nine months of the year, sales increased 2.9% to R$ 9.4 billion.
The New York City Center and the VillageMall were the main highlights in the quarter, with growth of 10.9% and 8.9%, respectively. The two shopping centers were benefited from recent openings of stores that boosted sales of assets.
All of the months in the quarter posted sales growth and, even with the Rio de Janeiro Olympic Games having a distracting impact on consumption in August, in the month of September the biggest increase in sales for the period was registered.
Same store sales growth accelerated for the second consecutive quarter, to 2.8%, approaching the same area sales, which rose 3.2%. Same store sales expanded in all anchors and satellites segments, reflecting a more balanced operating scenario in the third quarter.
The services segment continued to lead the same stores performance in the quarter, with growth of 8.6%, driven by telephone stores, travel agencies and pharmacies. The home & office articles segment, after rising 2.7% in the second quarter, continued to post higher numbers compared to slower performance in 2015, jumping 4.7% in the current quarter, with electronics and decoration stores in the lead.
The payment delinquency rate was reduced to 3.1% in the third quarter. The occupancy rate remained virtually unchanged at 97.4%, compared to 97.6 percent in the second quarter of the year.
Operational resiliency and the attractiveness of Multiplan's portfolio are reflected by the strong occupancy rates at the company's first five shopping centers, at 98.2% during the third quarter.
The company's gross revenue totaled R$ 300.2 million in the third quarter of 2016, growth of 2.9% over the same period last year; rental revenue was the largest component, representing R$ 213.7 million.
Rental revenue rose by 7.5% in the third quarter and parking revenue grew 7.5% , leading to a net operating income (NOI) of R$ 229.7 million, with a 85.5% margin. The main highlight of the period was merchandising revenue, posting an increase of 9.6%, influenced in part by the Olympic Games.
The Morumbi Corporate complex of two commercial towers (Diamond Tower and Golden Tower), located opposite MorumbiShopping, contributed revenues of R$ 21.5 million in the third quarter, an increase of 24.7% compared to the same period in 2015. In the last 12 months, the complex has contributed R$ 81.1 million in revenues, an increase of 34.8% over the previous year.
The quarter's consolidated EBITDA totaled R$ 184.4 million, an increase of 1.2% over the third quarter of 2015, primarily due to a 2.8% growth in net revenues, driven by the 7.5% evolution of parking revenues and 7.0% in rental revenues, coupled with a 49.3% reduction in expenses related to new projects.
The Net debt/EBITDA ratio remained at 2.40x. In order to strengthen its cash position and be prepared for the upcoming payment involving the recent acquisition of a minority stake in BarraShopping and MorumbiShopping, in September 2016 Multiplan signed a three-year loan in the amount of R$ 325 million at 108.0% of CDI rate p.a. Interest will be paid semi-annually and the principal will be repaid in September 2019.
In the third quarter of 2016, net income totaled R$ 58 million, a decrease of 0.9% over the same period last year.
The MULT3 share price (on the BM&BOVESPA) rose 66.3% in the first nine months of 2016, with an average daily trading volume of R$ 40.8 million.
About Multiplan – Currently, it has 18 shopping centers located around the country: BarraShopping, New York City Center, ParkShoppingCampoGrande and VillageMall, in Rio de Janeiro (RJ); BH Shopping, DiamondMall and Pátio Savassi, in Belo Horizonte (MG); MorumbiShopping, ShoppingAnáliaFranco and ShoppingVilaOlímpia, in São Paulo (SP); JundiaíShopping, in Jundiaí (SP); ParkShoppingSãoCaetano, in São Caetano do Sul (SP); RibeirãoShopping and Shopping Santa Úrsula, in Ribeirão Preto (SP); ParkShopping, in Brasília (DF); ParkShoppingBarigüi, in Curitiba (PR); BarraShoppingSul, in Porto Alegre (RS); and Parque Shopping Maceió, in Maceió (AL). The operating shopping mall portfolio totals 775,561 m² of GLA, more than 5,400 stores and annual traffic of consumers estimated at 180 million. Multiplan has an average ownership interest of 73.8% in its malls. Additionally, the company has two sets of commercial towers with total GLA of 87,558 m², which added to the total shopping mall areas, represents a GLA of 863,119 m².
Press Information
In Press Porter Novelli
Letícia Schustoff – letícia.schustoff@inpresspni.com.br
(21) 3723-8091
Suzana Ribeiro – suzana.ribeiro@inpresspni.com.br
(21) 3723-8117
