ALIANSCE SONAE: Net revenue growth of 10.7% and EBITDA expansion of 11.8%

USA - English

• Brazil - Português

RIO DE JANEIRO, Nov. 13, 2019 /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 third quarter of 2019 (3Q19).

3Q19 Highlights:

• Net Revenue growth of 10.7%. Minimum rent increased by 10.5%, posting double digit growth in 15 out of the 29 malls in the portfolio.
• Expansion of NOI and EBITDA of 14.2% and 11.8%. Sound operational results, mainly driven by improvements in rent revenues (+11.2% yoy) and parking results (+11.9% yoy), combined with reduction in cash costs (-6.5% yoy).
• Expressive AFFO growth, of 29.4%. The liability management strategy and reduction of the Selic base interest rate contributed to the improvement of financial results. The decrease in current income taxes leveraged AFFO, which reached R$ 104.3 million, with margin of 46.7%, up 699 bps yoy.
• Total sales grew 8.4%, reaching $ 2.5 billion. Same Area Sales (SAS) grew by 3.7% and Same Store Sales (SSS) were up 3.1% yoy in 3Q19.
• Same Store Rent (SSR) and Same Area Rent (SAR) increased 8.3% and 7.5%, respectively. Growth of the indicators in real terms was of 2.4% and 1.6%, respectively.
• Effective liability management. Throughout the months of October and November 2019, the Company pre-payed a total of R$ 59.1 million and renegotiated rates of financings in the amount of R$350.0 million. These pre-payments and renegotiations should lead to a reduction of approximately 40 bps in the consolidated average cost of debt, to 7.5% p.a. and generate estimated annual savings of R$ 15 million.
• Capital allocation. In August, Aliansce Sonae acquired additional ownership stakes in Shopping Taboão (14%) and Shopping Grande Rio (25%) and, in October, the Company announced the total divestment from Shopping Santa Úrsula, Boulevard Shopping Brasília and Shopping West Plaza.
• Partnership with iFood. The Company has announced a partnership with iFood.com to improve customers' experiences, through the implementation of delivery hubs in its malls.

For a full version of 3Q19 Earnings Release, please, refer to https://ri.alianscesonae.com.br/en

Aliansce Sonae will hold its conference call and webcast in English on November 14^th, at 10:00 am ET / 12:00 pm BRT. To access the call, dial +1 646 828-8246 / +55 (11) 3193-1001, 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