News

BRMALLS ANNOUNCES 4Q14 EARNINGS RELEASE

Highlights:

- In the fourth quarter of 2014, net revenues grew by 7.5% to R$404.2 million and by 7.0% to R$1,395.2 million in 2014. Excluding the malls divested in the last 12 months, net revenues grew by 10.3% in the quarter and 8.6% in 2014.

- Net operating income (NOI) totaled R$382.1 million in 4Q14, 8.3% more than in 4Q13, with a NOI margin of 93.1%. In FY14, NOI came to R$1,297.3 million, 7.5% up on the previous year. Excluding the malls divested in the last 12 months, NOI increased 10.9% in 4Q14 and 9.1% in 2014.

- Adjusted EBITDA stood at R$334.5 million in 4Q14, 3.3% more than the R$323.8 million recorded in the same period in the previous year, accompanied by a margin of 82.8%. In 2014, adjusted EBITDA amounted to R$1,120.4 million, 6.2% higher than in 2013 with a margin of 80.3%. If we exclude the divestments in the last 12 months, our adjusted EBITDA grew by 6.1% in the quarter and 8.0% in 2014.

- Adjusted FFO came to R$155.0 million in 4Q14, a 4.0% improvement over the R$149.1 million posted in 4Q13, and R$469.5 million in FY14.

- Total Sales reached R$7.2 billion in 4Q14 and R$23.0 billion in 2014, up 1.3% and 4.4% respectively. Excluding the malls divested in the last 12 months, total sales grew by 8.8% in the quarter and 10.2% in 2014.

- Same-store rent increased by 7.2% in 4Q14 and 7.9% in 2014. Same store sales grew by 6.5% in the fourth quarter and in the year as a whole.

- Occupancy remained at high levels, averaging 97.4% of total GLA in 4Q14, 0.3 p.p. improvement over 3Q14. Our ten most representative malls in terms of NOI had an average occupancy above 98.4%.

- In 4Q14, renewal and new contract leasing spreads averaged 29.0% and 19.6%, respectively. In 2014, renewal and new contract leasing spreads reached 23.7% and 17.6%, respectively.

- In 2014 we inaugurated 3 expansions: Shopping Piracicaba, Shopping Recife and São Luís Shopping. Together they increased our total GLA by 39.9 thousand m² and our owned GLA by 10.0 thousand m². We estimate that these three expansion projects will generate R$10.3 million in stabilized NOI for BRMALLS.

- On August 25th we inaugurated Shopping Vila Velha, the 10th and largest of our greenfields adding a total GLA of 71.8 thousand and owned GLA of 35.9 thousand m². The mall inaugurated with a 90% occupancy.

- In 2014, continuing with our portfolio recycling strategy, the Company divested from 6 malls. In 1Q14 we divested our entire interest in Shopping Pátio Belém, Shopping Metrô Tatuapé and sold a 49% stake in Ilha Plaza Shopping. In 2Q14 we sold our entire stake in Big Shopping. Finally, on 4Q14 we sold our entire interest in Shopping Center Fashion Mall and Shopping Muller Joinville. BRMALLS received R$389.2 million with the 6 assets divested.

Please Click Here, to access the 4Q14 Earnings Release.

BR MALLS PARTICIPAÇÕES S.A.
Investor Relations Officer
Frederico da Cunha Villa

ABOUT BRMALLS

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 48 malls, comprising 1,691.0 thousand m² of GLA and 987.4 thousand m² of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.