Totaling R$ 3 billion, the higher sales demonstrate the resilience of the group's projects
Multiplan Empreendimentos just released its third quarter 2015 results. In contrast to the adverse and challenging economic scenario, Multiplan's shopping centers posted positive operating results and growth.
Sales of Multiplan's malls grew 2.5%, totaling R$ 3 billion, a result that demonstrates the resilience of its projects to the country's economic slowdown. In the first nine months of the year, sales grew 4.7% compared to the same period in 2014, reaching R$ 9.1 billion.
Same area sales (SAS) were 2.7% higher in the third quarter of 2015, following the positive pace of growth seen during the year (in the second quarter of 2015, growth was 2.8%), benefiting from changes in the tenant mix.
Services and food court/restaurants remained the fastest growing segments in the company's shopping centers during the third quarter of 2015, with increases of 6.3% and 4.1%, respectively.
In the third period, same store rent (SSR) grew 6.8%, with a real increase of 2.4% compared with the same period in 2014. The result is even more significant if we consider that in the third quarter of last year there was an increase of 8.8%.
The occupancy rate remained high, at 98.1%, in the quarter, reflecting the resilience of the portfolio. In October, the Patio Savassi (Belo Horizonte) and ParkShoppingBarigüi (Curitiba) malls opened two small expansions totaling 2,600 m² of GLA, adding international brands, with subsequent increases in visitor traffic.
An important indicator of the effort to reduce expenses for retailers is the occupation cost index. In the third quarter of 2015, it declined to 13.0% from 13.1% the previous year. The result was due to controls on common expenses.
Gross revenue totaled R$ 291.7 million in the quarter, a decrease of 5.1% compared to the same period 2014. On the one hand, the real estate for sale revenues decreased 85.4%, due to the delivery of two towers in Porto Alegre, but there were no new projects for sale launches. On the other hand, rental revenues, representing 68.5% of gross revenue, rose by 8.3%. Excluding the real estate for sale revenues, the result would be 3.7% higher.
Net income reached R$ 58.6 million in the third quarter, 14.1% below the same period in 2014, mainly due to the decrease in property sales revenues (-85.4%), as mentioned, and growth in cost of financing, due to the increase in interest rates.
Still, with high interest rates, Multiplan's cost of funding was 12.81%, 144 points below the Selic rate at the end of September. Net debt was R$ 1.901 billion, equivalent to 2.4 times the EBITDA for the last 12 months. Net debt represents only 12% of the fair value of the properties.
