News

Highlights:

In the second quarter of 2016, Net Revenue reached R$321.7 million, representing a 4.2% decrease in comparison to the prior year period, excluding the effects of assets divested in the last 12 months. Our net revenue was impacted by the concession of temporary discounts, that target the financial recovery of our tenants and the reduction of delinquency rates.

General and Administrative Expenses fell 26.0% in comparison to the prior year period, totaling R$24.4 million. This amounts to 7.0% of the gross revenue, an efficiency improvement of 1.8p.p. compared to 2Q15.

Adjusted EBITDA reached R$230.1 million this quarter, while the Adjusted EBITDA Margin reached 71.5%.

BRMALLS Ajusted FFO reachedR$68.6 million in 2Q16, and an Adjusted FFO Margin of 21.3%, a 105.8% growth compared to 1Q16, with a 11.3p.p. margin increment.

BRMALLS was successful in executing its deleveraging strategy, showing a 5.7% reduction in Net Debt since the prior year period. Excluding our perpetual bond, our net debt reduced by 8.3% since 2Q15.

Occupancy Cost this quarter reduced by 0.8p.p. over 1Q16, reaching 11.3%.

Occupancy Rate amounted to a quarterly average of 95.8%. In our portfolio, we have 28assets with more than 97% of their GLA occupied. The average occupancy rate of the 10 most representative malls in terms of NOI, which account for 55% of BRMALLS‘ total NOI, reached 97.6%.

Despite the low confidence in Brazil and the challenging scenario for the Retail sector, our Renewals Leasing Spread reached to 10.0% this quarter, a 3.2 p.p. increment over 1Q16.

In June, BRMALLS issued a R$225.0 million CRI - Securitized debt backed on a company debenture. The issuance comprises three tranches: the first, at a rate of CDI+1.75% (15 year term), the second at a rate of CDI+1.67% (12 year term), and the third, issued in July, at a rate of CDI+0.10% (5 year term). The last tranche was issued 55 bps below the initial guidance of CDI+0.65%.

On the April 29th, 2016 General Meeting a capital increase in favor of all shareholders was approved through the issuance of 140.1 million new shares distributed to all shareholders, in the form of a 30% stock dividend.

Our share price at the end of the quarter stood at R$12.85, an increment of 10.6% in the quarter and 53.7% year-to-date. Our share also outperformed the Ibovespa index, which gained 17.7% since January. The average daily trading volume in the quarter reached R$73.5 milion, 26.9% higher than the prior year period, a significant increase in BRMALLS‘s share liquidity.

*Assets divested over the last 12 months: Center Shopping, West Shopping, 44% of Shopping Paralela and Crystal Plaza Shopping.

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Conference Call:

English:

August 12th, 2016
11:30 a.m. US ET (12:30 p.m. Brazil)

Phone number:
+55 11 3127-4971
+55 11 3728-5971
1-516-300-1066 (U.S phone number):

Webcast:

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Participante&NameRoom=N24030169

Replay:

+55 11 3127-4999
Recording ID: 48357018

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Ondemand&NameRoom=N24030169

Portuguese:

August 12th, 2016
10:30 a.m. US ET (11:30 a.m. Brazil)

Phone numbers:
+55 11 3127-4971
+55 11 3728-5971

Webcast:

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Participante&NameRoom=N24030168

Replay:

+55 11 3127-4999
Recording ID: 52702985

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Ondemand&NameRoom=N24030168

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 45 malls, comprising 1,638.1 thousand m² of GLA and 957.9 thousand m² of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.

IR Contact:

Phone: 55 (21)3138-9900 E-mail: ri@brmalls.com.br Website: www.brmalls.com.br/ir