ALIANSCE SONAE: Net revenue growth of 10.0% and EBITDA expansion of 13.5%

USA - English

• Brazil - Português

RIO DE JANEIRO, March 11, 2020 /PRNewswire/ -- Aliansce Sonae Shopping Centers S.A. (B3: ALSO3), one of Brazil's largest shopping mall owners and operators, announced today its financial results for the fourth quarter of 2019 (4Q19).

4Q19 Highlights:

• Net revenue growth of 10.0%. Rent revenue and parking result increased by 9.1% and 9.7%, respectively, contributing to the increment of the consolidated revenue.

• NOI and EBITDA expansion of 11.7% and 13.5%, respectively. Operational results were leveraged by the increase in net revenue and operational cost reduction, such as the 38.3% yoy drop in PDA. NOI and EBITDA reached R$ 246.0 million and R$ 215.6 million, respectively.

• Total sales grew 10.3%. Aliansce Sonae's malls registered total sales of R$ 3.4 billion. SAS increased by 4.5% and SSS were up by 3.8% yoy.

• SSR and SAR increased 6.5% and 5.7%, respectively. The growth of these indicators in real terms were of 1.9% and 1.1%, respectively.

• Expressive AFFO growth of 26.3%. Effective liability management strategy and drop in interest rates contributed to a 16.9% yoy reduction in financial expenses. The AFFO reached R$ 158.1 million, with a 57.8% margin (+ 819 bps yoy).

• Average cost of debt drops to 6.3%. During 4Q19, the Company pre-paid a total of R$ 533 million and renegotiated rates of financings in the amount of R$ 349 million. These pre-payments and renegotiations should lead to savings of nearly R$ 38 million in financial results – with greater impact throughout 2020.

• Follow-On. In December 2019, Aliansce Sonae concluded a primary offering of shares of approximately R$ 1.2 billion. The resources should be allocated to fund the Company's growth strategy and to adequate its capital structure.

For a full version of 4Q19 Earnings Release, please, refer to https://ri.alianscesonae.com.br/en

Aliansce Sonae will hold its conference call and webcast in English on March 12^th, at 10:00 a.m. US ET (in portuguese) / 11:00 a.m. US ET (in english). To access the call, dial +1 (412) 717-9627 / +55 (11) 3181-8565 / +55 (11) 4210-1803, code "Aliansce Sonae". Webcast is available at https://ri.alianscesonae.com.br/en

For more information, please, contact Daniella Guanabara, IRO, at +55 21 2176-7272 or [email protected]

SOURCE Aliansce Sonae Shopping Centers