On July 28, Multiplan announced its second quarter 2016 earnings results. Sales in the Company' shopping centers were R$3.2 billion, an increase of 2.7% over the same quarter last year, with Same Area Sales up by 4.1%. Net income was R$ 98 .7 million, 2.4% above the second quarter of 2015.
All of the months in the quarter showed a growth in sales, especially the month of June, which perhaps reflected higher consumption due to the cooler temperatures recorded in Brazil during the month.
The results reflect the resilience of Multiplan's projects, especially given the adverse domestic economic scenario. Its strength is also shown in the continued high occupancy rate of 97.6%. There was a slight decrease in the occupancy rate during the second quarter of the year compared to the first quarter's 97.9%. However the company's five largest shopping malls in sales per/m² in Brazil reported occupancy rates of 98.7%.
Rental revenues grew by 4.9%. It should also be noted that minimum rents increased by 6.6% in the second quarter of 2016.
After a peak in the gross delinquency rate for shopping malls (rental payments more than 25 days overdue) in the first quarter of 2016, this indicator fell to 4.0% in the second quarter. Following the same trend, the net default rate, which includes the recovery of defaults from previous quarters, showed an even bigger decline of 3.6% in the first three months of the year to 2.4% in the second quarter.
Gross revenues totaled R$ 301.8 million in the second quarter of 2016, an increase of 5.2% compared to the second quarter of 2015. Rental, parking and services revenues were the best performers, together adding R$18.2 million.
The Net Debt/EBITDA ratio of 2.43x reflects the R$64.5 in investments during the quarter and the R$115.8 in interest payments on Net Equity announced in December 2015. This was partly offset by high cash generation during the period. The Company’s EBITDA ended the quarter at R$195.3 million, 5.0% above the same period last year.
The Company announced the payment of Interest on Shareholders’ Equity of R$95 million on June 27 2016. This represents about R$0.50/share, which will be paid to shareholders registered on the books of the company as at June 30, 2016.
During the first quarter of 2016, the MULT3 share price on the São Paulo Stock Exchange (BM&FBOVESPA) rose 58.6%, with an average daily trading volume of R$41.7 million.
