BRMALLS Announces 2Q12 Earnings Release

Brazil - Português

News provided by

Aug 01, 2012, 11:23 ET

RIO DE JANEIRO, August 1, 2012 BRMALLS (BM&FBOVESPA: BRML3).

2Q12 Highlights and Subsequent Events:

Net revenue grew by 33.3% in 2Q12 totaling R$265.8 million. In 1H12 net revenues totaled R$509.4 million, an increase of 34.6% over 1H11.
Net operating income (NOI) totaled R$245.0 million, 39.2% higher than 2Q11, accompanied by a NOI margin of 91.5%. Same-property NOI climbed by 16.6% over 2Q11. In 1H12, NOI grew by 38.4%, totaling R$462.8 million.
Adjusted EBITDA totaled R$217.1 million in 2Q12, 35.3% up on the same period last year, with an adjusted EBITDA margin of 81.7%, up by 1.2 p.p. In 1H12, adjusted EBITDA totaled R$420.2 million, a 39.6% increase over 1H11.
FFO came to R$464.6 million, a 290.6% improvement over 2Q11. Adjusted FFO totaled R$113.0 million, 32.0% more than the R$85.6 million recorded in 2Q11. In 1H12, adjusted FFO grew 43.1%, totaling R$203.2 million.
Recognition of the fair value of our investment properties led to a non-cash revenue of R$737.5 million in 2Q12, increasing the total value of our investment properties to R$13.7 billion. On the other hand, the recognition of deferred taxes had a negative non-cash impact of R$266.9 million.
The exchange variation generated a net financial expense of R$103.8 million, on the principal of our perpetual debt (non-cash effect).
Same-store rent increased by 8.1% in the second quarter, while same-store sales grew by 7.0%.
Our renewal and new contract leasing spreads averaged 25.6% and 23.3%, respectively.
The Company acquired a 50.0% interest in Rio Anil Shopping, an additional 18.7% of the total GLA of Shopping Villa-Lobos and a 45.0% interest in Shopping Plaza Macaé. We expect these acquisitions to increase our NOI in the next 12 months (including service revenue) by R$27.2 million and expand owned GLA by 28.4 thousand m2.
On April 9, the Company announced a joint venture with Simon Property Group to develop "Premium Outlets" in Brazil. The first project shall be in the state of São Paulo.
On May 24, we inaugurated Shopping Estação BH, increasing owned GLA by 20,400 m2 and adding an estimated R$26.4 million in stabilized NOI.
On April 19, we inaugurated the expansion of Shopping Recife, adding 7,548.0 m2 of total GLA, which is expected to generate stabilized NOI of R$4.8 million.
After the close of the quarter we concluded the distribution of shares of the Shopping Jardim Sul Real Estate fund and announced the offering of R$500 million in promissory notes with a maturity of 180 days and a rate of CDI + 0.7%, in line with our liability management policy.

Please click here to access the 2Q12 Earnings Release.

Conference Call:

English:
August 2nd, 2012
10:00 a.m. US ET (11h00 Brazil)
Tel: +55 11 3301-3000
Replay: +55 (11) 3127-4999
Passcode: 50380386

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=918

Portuguese:
August 2nd, 2012
09:00 a.m. US ET (10h00 Brazil)
Tel: +55 11 3301-3000
Replay: +55 (11) 3127-4999
Passcode: 28537814

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=917

BR MALLS PARTICIPAÇÕES S.A.
Investor Relations Officer
Leandro Rocha Franco Lopes

ABOUT BRMALLS
BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 48 malls, comprising 1,513.7 thousand m2 of GLA and 855.8 thousand m2 of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.