News

BRMALLS ANNOUNCES 1Q17 EARNINGS RELEASE

Highlights:

.In the first quarter of 2017, the net revenue reached R$330.5 million, almost in line with the same period of the previous year. In March 2017, net revenue increased by 3.2% when compared to the same month of the previous year, driven by the growth of 5.3% in the minimum rent and of 4.2% in the parking revenue.


.NOI reached R$295.6 million in 1Q17, a decrease of 3.0% when compared to 1Q16. In the same period, the NOI margin totaled 88.6%. In March, NOI grew 1.9% when compared to the same period in 2016.


.We closed the first quarter of 2017 with an Adjusted EBITDA of R$222.8 million, a decrease of 9.5% over the result of the same period of the previous year. The indicator was mainly impacted by the higher level of the provisions for doubtful accounts.


.In line with the company‘s deleveraging strategy, in February we have fully amortized the first series of our second issuance of debentures for R$88.9 million. The company continued with its deleveraging strategy. We ended the quarter with a net debt of R$4.2 billion, a reduction of 11.2% when compared to the level disclosed at the end of the 1Q16 and a reduction of 5.4% when compared to the level presented in 4Q16.


.In this quarter, Adjusted FFO reached R$80.4 million, an increase of 141.6% over the result of the same period of the previous year and a margin of 24.3%. The Adjusted FFO was mainly benefited by the deleveraging strategy of the company and by the reduction of the indexes of our debt.


.We had an increase in sales ending the quarter with same-store sales (SSS) of 0.4%, the best SSS of the last four quarters. We also had a new sequential improvement in of same-store rent (SSR) presenting a growth of 6.5%. In March, despite the negative calendar effect of Easter, our SSS was 3.3% and our SSR was 6.3%. We also highlight the growth of 4.9% in the flow of vehicles in the month of March. Excluding operations benefited by Easter last year, the SSS was 1.5% in the quarter and of 7.0% in the month of March.


.With the improvement in the level of sales, our occupancy cost reached 11.8%, a decrease of 0.3 percentage points when compared to the same quarter of the previous year, the largest year over year drop since 1Q14.


.We ended the first quarter of 2017 with an occupancy rate of 96.1%, a stable level when compared to the last quarter of 2016, as a result of our leasing effort given the adverse scenario. In the quarter, we signed 191 agreements in existing malls or 12.4 thousand m² of GLA, an increase of 46.9% when compared to the GLA signed in 1Q16.


.As a result of the improvemen in our tenant mix and focus on leasing, this quarter we presented an improvement in the productivity of our assets with an increase of 1.6% in sales/m² and of 1.2% in rent/m².


.On our 2017 Extraordinay General Meeting held on February 22, new board members were elected. Our Board of Directors is composed by seven members, of which six are independent.


.In line with our portfolio recycling strategy, in March 2017 we announced the sale of our 33% interest in ItaúPower Shopping for R$107.0 million.


.Our April 2017 Annual General Meeting approved a capital increase with the issuance of 93.1 million new shares to be distributed equally to our shareholders, as a stock bonus of 15%. Additionally, we approved the distribution of a R$41,0 million cash dividend, which represents R$0.07 per share.


.In May, the succession process of our nominated CEO Ruy Kameyama was completed. The company thanks Mr. Carlos Medeiros for his dedication and important contribution for the company‘s history.

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Conference Call:

English:

May 10th, 2017
10:00 a.m. US ET (11:00 a.m. Brazil)

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

Webcast:

http://webcast.engage-x.com/Cover.aspx?PlatformId=06jb9%2BHWx4aLo%2BjM7Bu95g%3D%3D

Replay:

+55 11 3127-4999
Recording ID: 56947746

http://webcast.engage-x.com/Cover.aspx?PlatformId=06jb9%2BHWx4aLo%2BjM7Bu95g%3D%3D

Portuguese:

May 10th, 2017
09:00 a.m. US ET (10:00 a.m. Brazil)

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

Webcast:

http://webcast.engage-x.com/Cover.aspx?PlatformId=NxzX3OKt6h39esjxsT4VeQ%3D%3D

Replay:

+55 11 3127-4999
Recording ID: 70654630

http://webcast.engage-x.com/Cover.aspx?PlatformId=NxzX3OKt6h39esjxsT4VeQ%3D%3D

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 44 malls, comprising 1,612.9 thousand m² of GLA and 950.9 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