Aliansce presents its 2Q17 Results

USA - English

• Brazil - Português

RIO DE JANEIRO, Aug. 9, 2017 /PRNewswire/ -- Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of Brazil's largest shopping malls owners and operators, announced financial results for the second quarter of 2017 (2Q17).

Management Commentary

"Our second quarter results showed the first signs of sales recovery in our malls," said Aliansce Senior VP Rafael Sales. "The efforts to improve our shopping malls' mix and the new stores opened improved metrics such as same store sales and same store rents. Moreover, the investments to maintain and revitalize our properties have enabled us to provide consumers with a superior and more satisfying shopping experience.

"We believe that our properties are well positioned to take advantage of the potential economic recovery. Meanwhile, we remain cautious and focused on improving operational results, ensuring the Company is agile in any economic environment."

2Q17 Highlights

• In the 2Q17, Company's gross revenue increased by 6.9% over 2Q16. Parking revenues showed a particularly strong growth, of 12.2%. NOI grew 7.2% in 2Q17, reaching R$ 115.7 million. Excluding the straight-line effect of rent, NOI increased by 9.8% and reached R$ 112.5. Adjusted EBITDA reached R$ 99.0 million, a growth of 8.2%.
  
  
• Total sales revenue in Aliansce's shopping malls was R$ 2.2 billion, up by 16.7% compared to 2Q16. Considering Aliansce's ownership stakes, sales growth was 13.6%, reaching R$ 1.4 billion. Excluding sales from Shopping Leblon, which was acquired during 4Q16, total sales at Aliansce's stake grew 9.8%. Portfolio occupancy rate reached 95.7% at the end of the quarter, with intense activity of mix improvement and tenant professionalization.
  
  
• Leverage went from 4.1x in 2Q16 to 3.5x at the end of 2Q17, and the average cost of debt decreased to 12.3% (or 95.9% of the CDI) from 14.0% (or 99.3% of the CDI) previously. As a result, adjusted FFO (AFFO) grew 77% and reached R$ 45.1 million, with 13.2 p.p. increase in the AFFO margin. In the first six months of the year, AFFO reached R$ 77.7 million, 102.7% above 1H16.

Aliansce will hold a live conference call and webcast to discuss second quarter results on August 10, at 10:00 a.m. EDT / 11:00 a.m. BRT. Investors may access the conference call dialing +1 (786) 924-6977 / +55 (11) 3193-1001 and using the code "Aliansce." The webcast and the presentation are accessible at http://ir.aliansce.com.br

Investor Relations +55 21 2176-7252 [email protected]

SOURCE Aliansce Shopping Centers S.A.

Related Links

http://ir.aliansce.com.br