Aliansce presents its 1Q17 Results

USA - English

• Brazil - Português

RIO DE JANEIRO, May 10, 2017 /PRNewswire/ -- Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of Brazil's largest shopping mall owners and managers announces its results for the first quarter of 2017 (1Q17).

Highlights from 1Q17 and recent events

In the 1Q17, the Company's net revenue showed growth of 2.1% over 1Q16. Excluding the effect of rent linearization, net revenue grew by 5.2%. NOI grew by 1.4% in 1Q17 and, excluding the non-cash effect of linear rent, showed growth of 5.1%. Adjusted EBITDA reached R$89.1 million in 1Q17, an increase of 2.7%. Excluding the effect of linear rent, Adjusted EBITDA grew by 7.5% in the quarter.

Total sales per sqm showed an increase of 1.4% against 1Q16, while sales per sqm of satellite stores grew by 4.6% in the quarter. Total sales of Aliansce malls reached R$2,027 million in 1Q17, up by 9.7% in relation to 1Q16, Same-area sales (SAS) and same-store sales (SSS) declined by 1.6% and 2.0% in 1Q17, respectively. In March 2017, SSS grew by 1.0%, and, excluding the effect of Easter 2016, this growth would have been of 4.1%.

In 1Q17, the variation in same-store rentals (SSR) was 5.0%. The growth of satellite stores' SSR was also noteworthy, reaching 5.6%..

The occupancy rate of the portfolio remained stable at 96.0%. The Company's 10 leading malls, equivalent to 81.6% of its NOI for 1Q17, had an occupancy rate of 97.0% at the end of the quarter.

Considering the Adjusted EBITDA for the LTM, the Company's leverage declined from 4.0x in 1Q16 to 3.5x in 1Q17. In addition to the downward movement in leverage, Aliansce's average cost of debt dropped to 12.9% (93.9% of CDI) in 1Q17 from 14.0% (or 101.8% of CDI) in 1Q16.

The Company's adjusted FFO (AFFO) reached R$ 32.5 million in 1Q17, growth of 152.8% in relation to 1Q16. The AFFO margin rose by 15.0 p.p. to 25.1% in the first quarter of 2017.

On May 10, Rafael Sales was named Executive Vice President, effective May 17, 2017. Rafael will be reporting directly to Aliansce's CEO, Renato Rique, and will oversee the Company's operational, financial and investment activities.

On May 10, Aliansce entered in an agreement to acquire 100% of the units of real estate fund, CTBH Fundo de Investimentos Imobiliário, owner of the Boulevard Corporate Tower, adjoining the Boulevard Shopping Belo Horizonte, for R$ 275 million.

SOURCE Aliansce Shopping Centers S.A.