ALIANSCE: Net revenue growth of 7.8% and AFFO expansion of 39.8% in 1Q19

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Aliansce Shopping Centers S.A.

May 08, 2019, 19:35 ET

RIO DE JANEIRO, May 8, 2019 /PRNewswire/ -- Aliansce Shopping Centers S.A. (B3: ALSC3), one of Brazil's largest shopping mall owners and operators, announced today its financial results for the first quarter of 2019 (1Q19).

1Q19 Highlights:

  • Rent revenue up 6.0% yoy in 1Q19, the main driver for the 8.6% NOI growth in the same period. Parking revenue increased by 10.0% in 1Q19.
  • EBITDA up 6.7% and AFFO increase of 39.8%. Debt reprofiling strategy and financial expenses down by R$10.6 million yoy led to R$53.9 million AFFO with 39.2% margin in 1Q19.
  • Total sales grew 5.4% (R$1.4 billion), with sales per sqm up 3.7%. SAS up 3.0% and SSS up 2.3% yoy in 1Q19. Adjusted for the impact from Easter sales, SAS grew by 4.0% and SSS by 3.3%.
  • SSR and SAR increased 5.3% and 5.2%, respectively. Rent per sqm expanded 2.6% in 1Q19 yoy.
  • Leverage down to 3.0x net debt/EBITDA. Average debt cost reduced to 8.4% in 1Q19 on renegotiation of rates for 6 financing.
  • Occupancy rate reached 97.1%, 121 bps above 1Q18. LTM, 516 stores were leased in Aliansce's malls, up 11.2% yoy.  
  • Acquisition of 4.9% of Shopping Leblon in May from co-owner Santa Isabel Group, in the amount of R$57.2 million. Upon conclusion of the deal, Aliansce will own 30.0% of the mall. Based on the NOI expected for the next 12 months, the cap rate of the acquisition is 6.7% and IRR (real and unleveraged, pre-tax) is 9.9%.

For a full version of 1Q19 Earnings Release, refer to http://ir.aliansce.com.br

According to management, Aliansce sustained its revenue expansion trend in 1Q19, with increment in several revenue categories. The Company's positive financial performance, with significant double-digit growth in AFFO, underscores the ongoing efforts connected with its debt reprofiling strategy, operating efficiency and higher profitability. Another highlight of the quarter – the acquisition of an additional stake in Shopping Leblon – strengthens Aliansce's strategic positioning in one of its most promising assets.    

Aliansce will hold its conference call and webcast in English on May 9, at 11:00 am ET / 12:00 pm BRT. To access the call, dial +1 646 828-8246 / +55 (11) 3193-1001, code "Aliansce". Webcast is available at http://ir.aliansce.com.br

For more information, please contact Daniella Guanabara, IRO, at +55 21 2176-7252 or [email protected]

SOURCE Aliansce Shopping Centers S.A.

Related Links

http://ir.aliansce.com.br

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