News

BRMALLS ANNOUNCES 3Q16 EARNINGS RELEASE

Highlights:

  • In the third quarter of 2016, Net Revenue reached R$328.5 million, representing a 4.3% decrease in comparison to the prior year period, excluding the effects of assets divested in the last 12 months. Our net revenue is still impacted by the selective concession of temporary discounts, that target the financial recovery of our tenants and the reduction of delinquency rates. Net revenues increased by 2.1% over 2Q16.

  • General & Administrative expenses recovered by 23.8% over 3Q15 down to R$28.2 million on 3Q16.

  • We also highlight the 25.9% improvement in sales expenses over the last quarter due to a reduction in provisions for doubtful accounts.

  • Adjusted EBITDA was R$243.4 million on 3Q16, increasing 5.8% over 2Q16. Our adjusted EBITDA margin rose by 260bps over last quarter reaching 74.1%.

  • We had another successful quarter for our deleveraging strategy. At the end of 3Q16, our net debt stood at R$4.5 billion, down to the lowest level in two years with a 8.1% year-to-date decrease. Exluding our perpetual debt, our net debt reduced by 3.8% since the end of 2015.

  • In 3Q16 we recorded the best cash financial result this year totaling R$125.0 million, a 5.1% reduction over 3Q15.

  • Our net income improved by R$255,0 million over 3Q15 totalling R$35.5 million. Our adjusted FFO totaled a year best of R$79.9 million, growing by 16.5% with a 300bps margin expansion over 2Q16.

  • Total sales was R$5.032.3 million in 3Q16. Same Store Sales (SSS) was -0.6%, an improvement of 110bps over 2Q16.

  • Our Occupancy Rate was 95.5%. Our top 10 malls in terms of NOI, which accounts for 54.7% of our total NOI, ended the quarter with a 97.5% occupancy rate, maintaining a stable level over the last quarter.

  • On 3Q16 we leased 245 new stores in existing assets, or 15.2 thousand m² of GLA, the largest number of contracts signed in a 3rd quarter for existing assets since 2012 attracting transformational stores that strengthen our tenant mix.

  • Our stock (BRML3) ended the quarter quoted at R$12.30, a 44.1% increase year-to-date and a 52.9% increase over the last twelve months.

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

Click here to view the full report

Conference Call:

English:

November 16th, 2016
9:30 a.m. US ET (12:30 a.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=Palestrante&NameRoom=N24032201

Replay:

+55 11 3127-4999
Recording ID: 91309742

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Ondemand&NameRoom=N24032201

Portuguese:

November 16th, 2016
8:30 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=Palestrante&NameRoom=N24032200

Replay:

+55 11 3127-4999
Recording ID: 27883870

http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Ondemand&NameRoom=N24032200

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