ALIANSCE SONAE: Robust liquidity and AFFO growth reinforce resilience

USA - English

• Brazil - Português

RIO DE JANEIRO, May 20, 2020 /PRNewswire/ -- Aliansce Sonae Shopping Centers S.A. (B3: ALSO3), one of the largest shopping mall owners and operators in Brazil, announces its results for the first quarter of 2020 (1Q20).

1Q20 Highlights:

• Quick response to COVID-19 impacts. Creation of a crisis committee, reduction of costs and expenses (both at the holding level and at its centers), measures to support tenants, development of a reopening protocol, acceleration of innovation initiatives and actions to support the community.
  
  
• Partnership with tenants reinforced. Aliansce Sonae has granted a 50% discount on rents in March and 100% in April and reduced common area costs by 20% and 50% for charges due in April and May. The Company is also working along with financial institutions to streamline the process of credit concession to tenants.
  
  
• Sales expansion and AFFO growth. Up to March 15th, Aliansce Sonae's total sales reached R$2,0 billion, a 9.3% yoy expansion. AFFO in 1Q20 totaled R$89 million, a 1.9% growth compared to 1Q19, despite already reflecting the economic impacts from the COVID pandemic.
  
  
• Resilience during crisis. Cash balance of R$1.5 billion and leverage of 0.9x net debt/EBITDA at the end of 1Q20, reinforce Aliansce Sonae's balance sheet as the strongest within the Brazilian mall industry and the most prepared to face the impacts from the crisis.
  
  
• Measures to preserve cash. (i) Capex reduction for 2020, with the postponement of expansion plans; (ii) temporary reduction on both working hours and wages (10-40% wage reduction, based on salary bracket); (iii) other non-personnel savings in G&A, such as lower travel expenses.
  
  
• Innovation initiatives to leverage sales. Extension of Ifood partnership and development of a partnership with Loggi to enable tenants to leverage sales, even while the malls remain closed. Display of an exclusive page in the webapp of each mall to promote tenants' sales channels. Drive-Thru & Pick-up and lockers as solutions for delivery of goods.

For a full version of 1Q20 Earnings Release, please, refer to https://ri.alianscesonae.com.br/en

Aliansce Sonae will hold its conference call and webcast in English on May 21^st, 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