earnings release 1q16
TRANSCRIPT
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8/17/2019 Earnings Release 1Q16
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1Q16
Conference Call
Date: April 28, 2016 (Thursday)
English: 11:30 a.m. (EDT New York)
Portuguese: 10:00 a.m. (EDT New York)
Webcast: ir.multiplan.com.br
Connection numbers:
USA: 1 (888) 700-0802
Brazil: 55 (11) 3193-1001
55 (11) 2820-4001
Other countries:
1 (786) 924-6977
Access Code: Multiplan
Earnings Release
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Disclaimer
This document may contain prospective statements, which are subject to risks and uncertainties as they are based on expectations
of the Company’s management and on available information. The Company is under no obligation to update these statements.
The words "anticipate,“ “wish,“ "expect“, “foresee,“ “intend,“ "plan,“ "predict,“ “forecast,“ “aim" and similar words are intended to
qualify statements.
Forward-looking statements refer to future events that may or may not occur. Our future financial situation, operating results,
market share and competitive position may differ substantially from those expressed or suggested by these forward-looking
statements. Many factors and values that may impact these results are beyond the Company’s ability to control. The
reader/investor should not make a decision to invest in Multiplan shares based exclusively on the data disclosed in this report.
This document also contains information on future projects which could differ materially due to market conditions, changes in laws
or government policies, changes in operational conditions and costs, changes in project schedules, operating performance,
demands by tenants and consumers, commercial negotiations or other technical and economic factors. The Company may alter
these projects totally or in part with no prior notice.
External auditors have not reviewed non-accounting information.In this release the Company has chosen to present the consolidated data from a managerial perspective, in line with the
accounting practices in force on December 31, 2012, as disclosed below.
For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência ) and other
relevant information on our investor relations website ir.multiplan.com.br.
Managerial Report
During fiscal year 2012, the Accounting Standards Committee (CPC) issued the following pronouncements that impacted the
Company’s activities and its subsidiaries including, among others: (i) CPC 18 (R2) – Investments in affiliated companies,
subsidiaries and in jointly controlled projects; (ii) CPC 19 (R2) – Joint business. These pronouncements required that they be
implemented for fiscal years starting January 1, 2013. The pronouncements determine, among other issues, that joint projects be
recorded on the financial statements via equity pick-up. In this case, the Company is no longer consolidating the 50% interest in
Manati Empreendimentos e Participações S.A., a company that owns a 75% stake in ShoppingSantaÚrsula, and a 50% stake in
Parque Shopping Maceió S.A., a company that has a 100% ownership interest in the shopping center of the same name on a
proportional basis. This report adopted the managerial information format and, for this reason, does not consider the requirements
of CPCs 18 (R2) and 19 (R2) to be applicable. Thus, the information and/or performance analyses presented herein include the
proportional consolidation of Manati Empreendimentos e Participações S.A. and Parque Shopping Maceió S.A. For additional
information, please refer to note 9.4 of the Financial Statements Report dated March 31, 2016.
Multiplan is presenting its quarterly results in a managerial format to provide the reader with a more complete perspective on
operational data. Please refer to the Company’s financial statements on its website (ir.multiplan.com.br) to access the Financial
Statements in compliance with the CPC.
Please see on page 35 in this report the changes determined by Technical Pronouncements CPC18 (R2) and CPC19 (R2), and
the reconciliation of the accounting and managerial numbers.
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Table of Contents
1. Consolidated Financial Statements – Managerial Report ......................................................................... 5
2. Fair Value of Investment Properties According to CPC 28 ....................................................................... 6
3. Operational Indicators ........................................................ ........................................................... ............ 8
4. Gross Revenue ......................................................................................................... .............................. 11
5. Property Ownership Results ................................................................................................................... 12
6. Shopping Center Management Results .................................................................................................. 16
7. Projects for Lease Results ...................................................................................................................... 17
8. Real Estate for Sale Results ........................................................ ........................................................... 17
9. Financial Results..................................................................................................................................... 18
10. Project Development ........................................................ ........................................................... .......... 25
11. MULT3 Indicators & Stock Market .................................................................................... .................... 28
12. Portfolio ........................................................ ........................................................... .............................. 29
13. Ownership Structure ............................................................................................................................. 31
14. Operational and Financial Data............................................................................................................. 33
15. Reconciliation between IFRS (with CPC 19 R2) and Managerial Report .............................................. 35
16. Appendices ........................................................................................................................................... 38
17. Glossary and Acronyms ................................................... ........................................................... .......... 42
The Evolution of Multiplan's Financial Indicators
R$ Million2007
(IPO)¹2008 2009 2010 2011 2012 2013 2014 2015
Change %(2015/2007)
CAGR %(2015/2007)
Gross Revenue 368.8 452.9 534.4 662.6 742.2 1,048.0 1,074.6 1,245.0 1,205.2 ▲226.8% ▲16.0%
Net Operating Income 212.1 283.1 359.4 424.8 510.8 606.9 691.3 846.1 934.8 ▲340.8% ▲20.4%
EBITDA 212.2 247.2 304.0 350.2 455.3 615.8 610.7 793.7 789.2 ▲271.9% ▲17.8%
FFO 200.2 237.2 272.6 368.2 415.4 515.6 426.2 552.9 530.7 ▲165.1% ▲13.0%Net Income 21.2 74.0 163.3 218.4 298.2 388.1 284.6 368.1 362.2 ▲1,611.9% ▲42.6%
¹2007 EBITDA adjusted for expenses related to the Company's IPO.
Historical Performance of Multiplan’s Results (R$ Million)
Overview
Multiplan Empreendimentos Imobiliários S.A. is one of the leading shopping center operating companies in Brazil, established as
a full service company that plans, develops, owns and manages one of the largest and highest-quality mall portfolios in the country.
The Company is also strategically active in the residential and commercial real estate development sectors, generating synergies
for shopping center-related operations by creating mixed-use projects in adjacent areas. At the end of 1Q16, Multiplan owned 18
shopping centers with a total GLA of 770,206 m² - with an average interest of 73.8% - of which 17 shopping centers were managedby the Company, with over 5,400 stores and estimated annual traffic of 180 million visitors. Multiplan also owned - with an average
interest of 92.4% - two corporate office complexes with total GLA of 87,558 m², representing a total GLA of 857,764 m².
381218 213 214
24
474305 256
233106
573
385 329 310166
686
441368 381
235
915
527 543 473359
948
644584 457
334
1.113
708648
453296
1.254
880791
539
355
1.222
945
794
531363
Gross Revenue Net Operating Income EBITDA FFO Net Income
Mar/08 (LTM) Mar/09 (LTM) Mar/10 (LTM) Mar/11 (LTM) Mar/12 (LTM) Mar/13 (LTM) Mar/14 (LTM) Mar/15 (LTM) Mar/16 (LTM)
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EBITDA REACHES R$199 MILLION AND
OCCUPANCY RATE STANDS AT 98% IN 1Q16
Good start to an expected
tough 2016: Steady operating
metrics lead to revenue growth
in spite of strong comparable
margins; overall net income
remains stable!
Evolution of Tenants’ Sales
1Q16 vs. 1Q15 comparison, unless otherwise stated:
Tenants’ sales increase 3.1% and Same Area
Sales grow 4.2% in 1Q16. The record spread
between SAS and SSS of 2.6% highlights thecontinuous positive changes in the tenant mix.
Occupancy rate is kept at 97.9% in the
quarter, a 10 b.p. drop compared to 4Q15.
Rental revenue increases 6.7% and shoppingcenter Same Store Rent grows 5.8% in 1Q16. Parking revenue increases 9.4%, and the NOI achieved R$229.3 million, 4.6% higher.
Net debt/EBITDA ratio sees slight decrease
to 2.33x, given the increase in cash and cashavailability to R$464.1 million. All of Multiplan’sdebt is in local currency (R$).
Net income reaches R$70.1 million, in line withthe R$69.6 million recorded in 1Q15. In the last12 months, net income recorded R$362.7
million and FFO R$530.6 million, implying a
CAGR of 10.6% and 8.3%, respectively, overthe previous two 12-month periods.
MULT3 stock quote (in BM&FBOVESPA)increased 41.3% during 1Q16, priced atR$53.70 by the end of the quarter. Averagedaily traded volume was R$40.6 million in theperiod.
Evolution of Margins
Evolution of Net Debt / EBITDA
Evolution of MULT3 in BM&FBOVESPA
85.5% 88.5% 89.0%
64.0% 69.5%72.2%
44.7% 47.4% 48.3%
29.3% 31.2% 33.0%
Mar-14 (LTM) Mar-15 (LTM) Mar-16 (LTM)
NOI + Key Money Margin EBITDA Margin
FFO Margin Net Income Margin
2.23x
2.44x 2.42x 2.44x
2.33x
1Q15 2Q15 3Q15 4Q15 1Q16
80
90
100
110
120
130
140
150
Dec-15 Jan-16 Feb-16 Mar-16
MULT3 price Ibovespa
+41.3% +16.9%
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1Q16 MULT3
1. Consolidated Financial Statements – Managerial Report
(R$'000) 1Q16 1Q15 Chg. %
Rental revenue 207,233 194,216 ▲6.7%
Services revenue 37,103 27,617 ▲34.3%Key money revenue 3,518 7,895 ▼55.4%
Parking revenue 46,474 42,492 ▲9.4%
Real estate for sale revenue 3,930 11,286 ▼65.2%
Straight-line effect 9,663 8,690 ▲11.2%
Other revenues 1,328 764 ▲73.7%
Gross Revenue 309,248 292,961 ▲5.6%
Taxes and contributions on sales and services (30,424) (28,259) ▲7.7%
Net Revenue 278,824 264,702 ▲5.3%
Headquarters expenses (31,900) (25,664) ▲24.3%
Share-based compensations (5,314) (3,930) ▲35.2%
Shopping centers expenses (32,108) (22,958) ▲39.9%
Office towers for lease expenses (1,943) (3,230) ▼39.8%
New projects for lease expenses (1,493) (1,754) ▼14.9%
New projects for sale expenses (871) (652) ▲33.6%
Cost of properties sold (2,148) (8,334) ▼74.2%
Equity pickup 7 1 ▲859.0%
Other operating income/expenses (4,257) (4,482) ▼5.0%
EBITDA 198,799 193,700 ▲2.6%
Financial revenue 21,160 11,211 ▲88.7%
Financial expenses (70,327) (56,161) ▲25.2%
Depreciation and amortization (39,550) (39,196) ▲0.9%Earnings Before Taxes 110,082 109,554 ▲0.5%
Income tax and social contribution (34,975) (34,037) ▲2.8%
Deferred income and social contribution taxes ² (4,976) (5,906) ▼15.7%
Minority interest (51) (18) ▲179.0%
Net Income 70,079 69,593 ▲0.7%
(R$'000) 1Q16 1Q15 Chg. %
NOI 229,319 219,211 ▲4.6%
NOI margin 87.1% 89.3% ▼226 b.p.
NOI + Key Money 232,837 227,106 ▲2.5%
NOI + key money margin 87.2% 89.7% ▼242 b.p.
Property EBITDA 200,232 195,382 ▲2.5%
Property EBITDA margin 72.7% 76.8% ▼403 b.p.
EBITDA (Shopping Center + Real Estate) 198,799 193,700 ▲2.6%
EBITDA margin 71.3% 73.2% ▼188 b.p.
Net Income 70,079 69,593 ▲0.7%
Net income margin 25.1% 26.3% ▼116 b.p.
Adjusted Net Income 75,055 75,499 ▼0.6%
Adjusted net income margin 26.9% 28.5% ▼160 b.p.
FFO 114,605 114,695 ▼0.1%
FFO margin 41.1% 43.3% ▼223 b.p.
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1Q16 MULT3
2. Fair Value of Investment Properties According to CPC 28
Multiplan valued its investment properties internally and assessed their fair value based on the Discounted Cash Flow (DCF)
methodology. The Company calculated the present value of the future cash flows using a discount rate based on the Capital Asset
Pricing Model (CAPM). Risk and return assumptions were considered based on (i) studies conducted and published by Mr. AswathDamodaran (Professor at New York University), (ii) stock market performance of Multiplan shares (Beta), in addition to (iii)
macroeconomic projections published by the Central Bank, and (iv) data on the risk premium of the domestic market (country risk
measured by the Emerging Markets Bond Index Plus Brazil). Using these assumptions, the Company estimated a weighted
average, nominal and unleveraged, discount rate of 14.73% on March 31, 2016, as a result of a basic discount rate of 14.19%
calculated according to CAPM, and a weighted average risk spread of 52 base points. The risk spread was calculated according
to internal analysis and added to the basic discount rate in a range between zero and 200 base points for each shopping mall,
office tower and project evaluation.
Shareholders’ Cost of Capital 1Q16 2015 2014 2013 2012
Risk free rate 3.45% 3.45% 3.49% 3.53% 3.57%Market risk premium 6.05% 6.05% 6.11% 6.02% 5.74%Adjusted beta 0.76 0.78 0.72 0.77 0.74Sovereign risk 247 b.p. 232 b.p. 230 b.p. 205 b.p. 184 b.p.Spread 52 b.p. 51 b.p. 44 b.p. 43 b.p. 59 b.p.
Shareholders’ cost of capital - US$ nominal 11.05% 11.00% 10.65% 10.66% 10.25%
Inflation assumptions
Inflation (Brazil) (1) 5.79% 6.53% 6.53% 5.98% 5.47%Inflation (USA) 2.40% 2.40% 2.40% 2.30% 2.30%
Shareholders’ cost of capital – BRL nominal 14.73% 15.47% 15.11% 14.64% 13.66%
(1) Estimated inflation (BR) for 1Q16 considers the 4-year average between April 2016 and March 2020. The estimated inflation (BR) for 2012, 2013, 2014 and 2015
models considered the inflation forecast for the following 12 months.
The investment properties valuation reflects the market participant concept. Therefore, the Company does not consider in the
discounted cash flows calculation taxes on revenues, income taxes, revenue and expenses relating to management and
brokerage services.
The future cash flow of the model was estimated based on the properties’ individual cash flows, including the net operating income
(NOI), recurring Key Money (based only on mix changes, except for projects under development and future projects), revenues
from transfer fees, investments in revitalization, and investments in constructions in progress. Perpetuity was calculated assuming
a real growth rate of 2.0% for shopping centers and zero for office towers.
The Company classified its investment properties in accordance with their status. The table below describes the fair value
calculated for each category of property and presents the amounts in the Company’s share:
Fair Value of Investment Properties 1Q16 2015 2014 2013 2012
Shopping Centers and office towers in operation ¹,²,³ R$ 15,131 M R$ 15,465 M R$ 15,683 M R$ 14,089 M R$ 13,418 M
Projects under development (disclosed) ¹,²,³ R$ 223 M R$ 181 M R$ 32 M R$ 123 M R$ 715 M
Future projects (not disclosed) R$ 366 M R$ 379 M R$ 284 M R$ 430 M R$ 569 M
Total R$ 15,720 M R$ 16,024 M R$ 15,999 M R$ 14,642 M R$ 14,702 M
¹ In 2012, the JundiaíShopping, ParkShoppingCampoGrande, VillageMall, ParkShopping Corporate, and Expansion VI of the RibeirãoShopping projects werecompleted and their assets transferred from the line “Projects under development” to “Shopping malls and office towers in operation.”² In 2013, the Expansion VII and Expansion VIII projects of RibeirãoShopping and Morumbi Corporate were completed, and their assets were transferred from the line“Projects under development” to “Shopping malls and office towers in operation”.³ In 2014, the BarraShopping Expansion VII project was completed, and the assets were transferred from the line “Projects under development” to “Shopping malls
and office towers in operation.”
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1Q16 MULT3
Following the CPC 19 (R2) – Joint business pronouncement, issued by the Accounting Standards Committee (CPC), the 37.5%
ownership interest in ShoppingSantaÚrsula and 50.0% in Parque Shopping Maceió project through the joint controlled investees
were not considered in the fair value calculation.
Evolution of Fair Value¹ (R$) Fair Value¹ per share (R$)
‘
Growth of Fair Value¹, NOI and owned GLA(Base 100: 2010)
Market Cap² vs. Enterprise Value³ vs. Fair Value¹ –March 31, 2016
Enterprise Value³ and Fair Value¹ (R$)
¹ Calculated according to CPC 28² Based on stock price on March 31, 2016, of R$53.70³ The sum of Market Cap and Net Debt
.0 B
2.5 B
5.0 B
7.5 B
10.0 B
12.5 B
15.0 B
17.5 B
2010 2011 2012 2013 2014 2015 1Q16
Future projects (not disclosed)Properties under development (disclosed)Properties in operation
FairValue
15.7 B
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1Q16 MULT3
3. Operational Indicators
3.1 Tenant Sales
A positive start in a tough scenario
Tenants in Multiplan’s shopping centers recorded sales of R$3.0 billion in
1Q16, an increase of R$91.3 million on top of 1Q15, equivalent to a 3.1%
growth, another consecutive increase despite the challenging macro scenario
affecting retail performance in the country.
In the twelve months ended on March 31, 2016, the satellite stores recorded
sales of R$26,015/m², equivalent to US$620 per square foot (based on an
average exchange rate of USD/BRL 3.90 in 1Q16).
Evolution of tenants’ sales (billion R$)
Shopping Center Sales (100%) Opening 1Q16 1Q15 Chg.%
BH Shopping 1979 246.2 M 253.4 M ▼2.8%
RibeirãoShopping 1981 166.6 M 173.9 M ▼4.2%
BarraShopping 1981 433.8 M 417.8 M ▲3.8%
MorumbiShopping 1982 374.3 M 345.7 M ▲8.3%
ParkShopping 1983 245.1 M 249.1 M ▼1.6%
DiamondMall 1996 136.0 M 132.9 M ▲2.4%
New York City Center 1999 60.8 M 54.9 M ▲10.8%
Shopping Anália Franco 1999 226.4 M 217.9 M ▲3.9%
ParkShoppingBarigüi 2003 196.2 M 195.9 M ▲0.2%
Pátio Savassi 2007 ¹ 88.5 M 85.0 M ▲4.1%
ShoppingSantaÚrsula 2008 ² 37.0 M 41.3 M ▼10.4%
BarraShoppingSul 2008 170.1 M 171.0 M ▼0.5%
ShoppingVilaOlímpia 2009 93.4 M 90.9 M ▲2.7%
ParkShoppingSãoCaetano 2011 124.9 M 116.6 M ▲7.1%
JundiaíShopping 2012 96.0 M 95.1 M ▲0.9%
ParkShoppingCampoGrande 2012 99.8 M 88.2 M ▲13.2%
VillageMall 2012 122.2 M 108.5 M ▲12.7%
Parque Shopping Maceió 2013 90.9 M 78.9 M ▲15.2%
Total 3,008.2 M 2,916.9 M ▲3.1%
¹ Pátio Savassi opened in 2004 and was acquired by Multiplan in June 2007² ShoppingSantaÚrsula opened in 1999 and was acquired by Multiplan in April 2008
Same Area Sales growth of 12.1% in two years
Same Area Sales (SAS) increased 4.2% in the quarter,
compared to the same period of the previous year, the highest
increase over the last four quarters, while Same Store Sales
were up 1.6% over the same period. The record spread between
SAS and SSS of 260 b.p., the highest ever recorded together
with 2Q14, underscores the value added to the portfolio by the
successful tenant mix improvement strategy.
Evolution of Same Area Sales (LTM) – Base: Mar-13
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1Q16 MULT3
Services segment grows 7.3% in SSS
SSS continued to be driven by the Services, Miscellaneous and
Food Court & Gourmet Area segments, with increases of 7.3%,
4.3% and 3.9%, respectively. In the Services segment, pharmaciesand movie theaters recorded the strongest performances, while the
Miscellaneous segment was led by computing, fragrances and
variety products stores.
Same Store Sales 1Q16 x 1Q15
Anchor Satellite Total
Food Court & Gourmet Area - ▲3.9% ▲3.9%
Apparel ▼2.2% ▼0.3% ▼0.8%
Home & Office ▼8.3% ▼2.6% ▼4.7%Miscellaneous ▲8.7% ▲1.9% ▲4.3%
Services ▲8.0% ▲7.2% ▲7.3%
Total ▲1.5% ▲1.6% ▲1.6%
Breakdown of Same Store Sales per segment
SAS and SSS Evolution (year/year)
9.7% 9.5% 9.4%7.4%
8.8%
5.7%7.7% 8.0%
9.3%
12.0%
6.7%8.8%
5.7%
2.8% 2.7% 3.9% 4.2%
8.2% 8.1% 8.5% 6.8% 8.1% 5.8% 8.4% 7.6% 8.3% 9.4% 6.1% 7.9% 4.3% 1.2% 0.6% 2.1% 1.6%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Same Area Sales Same Store Sales
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1Q16 MULT3
3.2 Operational Indicators
Occupancy rate drops 10 b.p. at a still strong 97.9%
The average shopping center occupancy rate stood at 97.9% in 1Q16, almost in line when compared to the end of 2015. The
occupancy remains also in line with the average of the last five first-quarters of 97.9%, therefore representing a strong start in a
challenging year. Multiplan’s first ten opened shopping centers presented an average occupancy rate of 98.9%, reinforcing the
thesis of consolidated high-productivity malls being more resilient, retaining higher occupancy rates compared to the market
average.
Evolution of shopping center occupancy rate: 1Q12 – 1Q16
Occupancy cost 47 b.p. higher over 1Q15
Occupancy cost in 1Q16 was 13.9%, 47 b.p. higher compared to the
same period of the previous year, due to a slower pace in sales and
higher inflation effect on rent and common costs in the period.
The occupancy cost remained at the same level of 1Q12, showing that
the Company managed to maintain the tenants healthy in this tough
scenario.
Occupancy cost breakdown: 1Q12 – 1Q16
Multiplan shopping center tenants’ gross delinquency rate (rental payments more than 25 days late) was 4.5% in 1Q16. The
challenging economic environment as well as specific tenants’ special situations impacted overall retailers capital availability,
which, along with the December double-rent charge, prompted the increase in delinquency rate. If considering recoveries for past
periods, the delinquency rate (net) would be of 3.6%. In the same period of comparison, rent loss was 1.0%.
Historical Delinquency Rate (Gross) and Rent Loss: 1Q07 – 1Q16
97.2%
9 7 . 8
%
9 8 . 5
%
9 8 . 1
%
97.5%
9 7 . 6
%
9 8 . 1
%
9 8 . 6
%
98.5%
9 8 . 4
%
9 8 . 8
%
9 9 . 0
%
98.6%
9 8 . 4
%
9 8 . 1
%
9 8 . 0
%
97.9%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
8.2% 8.1% 7.8% 8.1% 8.1%
5.8% 6.0% 5.9% 5.4% 5.8%
14.0% 14.2% 13.7% 13.5% 13.9%
1Q12 1Q13 1Q14 1Q15 1Q16
Rent as % of Sales Other as % of Sales
6.6%
3.2%
5.8%
3.2%
1.7% 2.1% 2.2% 1.9% 1.8%
4.5%
1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16
Delinquency Rate (Gross)
1.0% 1.0%
0.4%0.6%
0.4% 0.3% 0.2%0.5% 0.5%
1.0%
1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16
Rent Loss
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1Q16 MULT3
4. Gross Revenue
Gross revenue grows 5.6% in 1Q16 or 8.4% when excluding real estate for sale revenues
Gross revenue totaled R$309.2 million in 1Q16, a growth of 5.6%compared to 1Q15. Rental, services and parking revenue were the
main drivers, with a combined addition of R$26.5 million. Real estate
for sale revenue, as expected, was down 65.2% when compared to
the same period in the previous year.
As mentioned in previous reports, the Company develops mixed-use
projects for sale with an opportunistic approach, searching for market
conditions that maximize margins and returns. Due to the market’s
downbeat mood, the Company did not identify these opportunities,
holding potential launchings and thus reducing the real estate for
sale revenue compared to the years before. Gross revenue breakdown – 1Q16
1Q16 gross revenue growth breakdown (Y/Y) (R$)
Gross revenue growth (R$) – 1Q16 Real estate for sales as a percentage of gross revenue
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1Q16 MULT3
5. Property Ownership Results
5.1 Rental Revenue
Rental revenue totals R$207.2 million in 1Q16, up 6.7%
Rental revenue grew 6.7% compared with 1Q15, to R$207.2 million in 1Q16, despite the 74 b.p. increase in the vacancy rate
compared to the same period of the last year. Rental revenue is composed of base rent, merchandising and overage rent, which
in 1Q16 represented 90.9%, 6.2%, and 2.9% of total rent, respectively. New York City Center and Pátio Savassi were the main
positive highlights, growing 13.7% and 10.1% in the quarter, respectively, benefiting from new store openings. New York City
Center occupancy rate was also benefited, reaching 100% in 1Q16 versus 97.5% in 1Q15. VillageMall, JundiaíShopping and
ShoppingSantaÚrsula combined rental revenue decreased 11.4%, due to the higher turnover, higher temporary discounts and
higher vacancy rate in the malls.
Additional data can be obtained from the Fundamentals Spreadsheet on Multiplan’s investor relations website:
(ir.multiplan.com.br).
Rental revenue breakdown – 1Q16 1Q16 Rental revenue growth breakdown (Y/Y) (R$)
Morumbi Corporate’s rental revenue grows 46.4% over 1Q15
Morumbi Corporate, the two-tower office complex
(Diamond Tower and Golden Tower) located across
from MorumbiShopping, added R$21.2 million to
rental revenue in 1Q16, an increase of 46.4%
compared to 1Q15. In the last twelve months, the
tower contributed with R$72.5 million, an increase of
47.6% over the year before. As of March 2016,
91.5% of the project’s GLA was leased, a slight
increase over the previous quarter. The evolution of Morumbi Corporate rental revenue (R$)
1.3 M5.6 M
10.1 M11.1 M13.4 M
14.5 M15.0 M17.2 M19.0 M
21.2 M
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
LTM: R$72.5 M
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1Q16 MULT3
Rental Revenue (R$) Opening 1Q16 1Q15 Chg.%
BH Shopping 1979 19.3 M 18.4 M ▲4.9%RibeirãoShopping 1981 10.8 M 11.3 M ▼4.8%
BarraShopping 1981 25.4 M 23.5 M ▲8.2%
MorumbiShopping 1982 25.1 M 23.7 M ▲6.3%
ParkShopping 1983 13.2 M 12.0 M ▲9.5%
DiamondMall 1996 10.4 M 9.8 M ▲6.0%
New York City Center 1999 2.2 M 2.0 M ▲13.7%
ShoppingAnáliaFranco 1999 6.2 M 6.1 M ▲2.7%
ParkShoppingBarigüi 2003 11.9 M 11.6 M ▲2.9%
Pátio Savassi 2007 ¹ 7.0 M 6.4 M ▲10.1%
ShoppingSantaÚrsula 2008 ² 1.1 M 1.2 M ▼12.6%
BarraShoppingSul 2008 13.4 M 12.8 M ▲4.4%
ShoppingVilaOlímpia 2009 4.4 M 4.3 M ▲2.8%
ParkShoppingSãoCaetano 2011 9.8 M 9.8 M ▼0.6%
JundiaíShopping 2012 6.5 M 7.4 M ▼12.0%
ParkShoppingCampoGrande 2012 8.1 M 8.0 M ▲2.4%
VillageMall 2012 7.8 M 8.7 M ▼10.7%
Parque Shopping Maceió 2013 3.1 M 2.9 M ▲6.4%
Morumbi Corporate 2013 21.2 M 14.5 M ▲46.4%
ParkShopping Corporate 2014 0.3 M - -
Total 207.2 M 194.2 M ▲6.7%
¹ Pátio Savassi opened in 2004 and was acquired by Multiplan in June, 20072 ShoppingSantaÚrsula opened in 1999 and was acquired by Multiplan in April, 2008
SSR grows 5.8% in 1Q16
Multiplan reported Same Store Rent (SSR) of R$107/m² per month in 1Q16, an increase of 5.8% over this metric in 1Q15, when
SSR posted a 9.5% growth. The IGP-DI adjustment effect was 7.5% in the quarter, leading to a negative real growth of 1.7%.
Same Store Rent (SSR) breakdown - Nominal and real growth
11.9%10.4%
7.7%
8.6%11.4%
8.0%
11.4%
8.0% 6.8%
10.1%8.8% 9.2% 9.5%
7.0% 6.8% 6.2% 5.8%
7.7%6.3% 5.7% 5.9%
6.8% 7.4% 7.6% 6.7% 5.9% 5.8% 5.9% 5.6% 5.2% 4.5% 4.4% 5.9%
7.5%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
SSR IGP-DI Adjustment Effect
3.9% 3.9% 1.8% 2.6% 4.3% 1.2%3.5%0.6% 4.1% 2.7% 3.4% 4.1% 2.4% -1.7%0.3%2.4%0.9%
Real SSR:
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1Q16 MULT3
5.2 Parking Revenue
Parking revenue up 9.4% to R$46.5 million in 1Q16
In 1Q16 parking revenue reached R$46.5 million, a growth of 9.4% when
compared to 1Q15, boosted by longer consumer stays and parking fee
increases in shopping centers. Car flows basically remained unchanged.
Parking revenue evolution (R$)
5.3 Properties Expenses
Shopping center expenses reaches R$32.1 million in 1Q16
Shopping center expenses totaled R$32.1million in 1Q16, 39.9%
higher than in 1Q15. The main drivers of this increase were common
costs and rent provisions related to the higher delinquency and
temporary vacancy expenses resulting from turnover.
As a percentage of shopping center revenues, mall expenses
reached 13.9% in 1Q16.
Office towers margin reach 91.0%
The 48.6% increase in revenues and the 39.8% decrease in expenses
in 1Q16 led the office towers activity to record a 91.0% operating
margin. Morumbi Corporate currently has 91.5% of its GLA leased.
Shopping center expenses evolution (R$) and as % ofshopping center revenues¹
¹(mall rental and parking revenues)
Office towers expenses evolution (R$)
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1Q16 MULT3
5.4 Net Operating Income – NOI
NOI up 4.6% in 1Q16 to R$229.3 million
Multiplan recorded a Net Operating Income (NOI) of R$229.3 million in 1Q16, an increase of 4.6% over 1Q15, and the margin
in the quarter was 87.1% down by 226 b.p. In the last 12 months, NOI increased 7.4%, totaling R$944.9 million, implying a two-
year CAGR of 15.5%.
The NOI + Key Money reached R$232.8 million, 2.5% higher when compared to the same period in 2015. The NOI + Key Money
margin decreased 242 b.p. to 87.2%, when compared to 1Q15. Strong rental revenue and parking revenue and lower office for
lease expenses, contributed to maintaining margins at a high level.
NOI and NOI margin (R$)
NOI (R$) and NOI margin (%) evolutions – LTM
NOI Calculation (R$) 1Q16 1Q15 Chg.%Mar-16(LTM)
Mar-15(LTM)
Chg. %
Rental revenue 207.2 M 194.2 M ▲6.7% 874.7 M 827.6 M ▲5.7%
Straight-line effect 9.7 M 8.7 M ▲11.2% 8.9 M 6.5 M ▲36.6%
Parking revenue 46.5 M 42.5 M ▲9.4% 180.7 M 164.6 M ▲9.8%
Operational revenue 263.4 M 245.4 M ▲7.3% 1,064.3 M 998.8 M ▲6.6%
Shopping center expenses (32.1 M) (23.0 M) ▲39.9% (110.2 M) (104.0 M) ▲6.0%
Office for lease expenses (1.9 M) (3.2 M) ▼39.8% (9.2 M) (15.2 M) ▼39.9%
NOI 229.3 M 219.2 M ▲4.6% 944.9 M 879.6 M ▲7.4%
NOI margin 87.1% 89.3% ▼226 b.p 88.8% 88.1% ▲72 b.p
Key Money 3.5 M 7.9 M ▼55.4% 20.5 M 34.5 M ▼40.4%
Operational revenue + Key Money 266.9 M 253.3 M ▲5.4% 1,084.8 M 1,033.3 M ▲5.0%
NOI + Key Money 232.8 M 227.1 M ▲2.5% 965.5 M 914.1 M ▲5.6%
NOI + Key Money margin 87.2% 89.7% ▼242 b.p 89.0% 88.5% ▲53 b.p
NOI + Key Money per share¹ (R$)
¹Shares outstanding adjusted for shares held in treasury
0.79 1.02 1.05 1.20
1.24
3.18
3.854.06
4.855.12
1Q12 / Mar-12
(LTM)
1Q13 / Mar-13
(LTM)
1Q14 / Mar-14
(LTM)
1Q15 / Mar-15
(LTM)
1Q16 / Mar-16
(LTM)
NOI + Key Money per share (1Q)
NOI + Key Money per share (LTM)
CAGR:
+11.8%
CAGR:
+12.7%
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1Q16 MULT3
6. Shopping Center Management Results
6.1 Services Revenue
Services revenue totals R$37.1 million in 1Q16
Services revenue totaled R$37.1 million in 1Q16, 34.3% higher
than in 1Q15, impacted by a non-recurring service fee. The
services revenue account is mainly composed of portfolio
management, brokerage and transfer fees, and represented in
1Q16 116.3% of the G&A expenses in the quarter.
Quarterly services revenue evolution (R$)
6.2 General and Administrative Expenses (Headquarters)
G&A expenses sum R$31.9 million in 1Q16
In 1Q16 G&A expenses totaled R$31.9 million, 4.6% below G&A
expenses in 4Q15 and 24.3% higher than in 1Q15, when the non-
recurring reversal of R$5.7 million in provisions benefited the
headquarters account. As a percentage of net revenues, G&A
represented 11.4% in the quarter.
The share-based compensantions account increased 35.2%, from
R$3.9 million in 1Q15 to R$5.3 million in 1Q16, due to the impactof Multiplan’s share price increase (of 41.3% in the quarter) on the
phantom stock option plan valuation. It is worth to mention that this
expense does not represent a cash event.
Quarterly G&A evolution (R$)
G&A evolution (R$) excluding non-recurring items
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1Q16 MULT3
7. Projects for Lease Results
Key Money revenue adds R$3.5 million in 1Q16
Key Money accrual in 1Q16 totaled R$3.5 million, a
55.4% decrease compared with 1Q15, and mainly
composed of areas delivered in the last five years.
The operational (recurring) key money added R$0.7
million in revenues in the quarter.
Key Money Revenue (R$) 1Q16 1Q15 Chg. %
Operational (Recurring) 0.7 M 1.4 M ▼51.3%
Projects opened in the last 5 years (Non-recurring) 2.8 M 6.4 M ▼56.3%
Key Money Revenue 3.5 M 7.9 M ▼55.4%
New projects for lease expenses of R$1.5 mill ion in 1Q16
Pre-operational expenses related to feasibility studies
and brokerage fees for new projects, and property taxes
from land for future developments, were responsible for
the new projects for lease expenses of R$1.5 million.
Quarterly New Projects for Lease Expenses (R$)
8. Real Estate for Sale Results
In 2015, Multiplan delivered two towers in the
BarraShoppingSul Complex: Résidence du Lac and
Diamond Tower. Following the PoC (percentage of
completion) accounting method, in 1Q15 R$11.3 millionof revenues and R$8.3 million of costs were accrued
and, in 1Q16, the amount dropped to R$3.9 million and
R$2.1 million respectively.Real Estate for Sale Revenue (R$)
Given the challenging real estate market conditions and the possibility of contract terminations, the company provisioned a R$3.7
million loss in the “other operating expenses” account. This loss may increase or be reversed depending on legal opinions
regarding current and future contract negotiations.
Projects’ average sales value (PSV) was R$11,327/m² and the accumulated gross margin was 34.8%.
New projects for sale expenses, composed mainly of brokerage fees and property taxes (IPTU) for the land bank, amounted to
R$0.9 million in 1Q16.
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1Q16 MULT3
9. Financial Results
9.1 EBITDA
Consolidated EBITDA continues to grow, leading to the highest figure for a first quarter
Consolidated EBITDA totaled R$198.8 million in 1Q16, a 2.6% growth over 1Q15, mainly due to the 5.3% increase in net revenue,
driven by increases in services (+34.3%) and parking (+9.4%) revenues.
In contrast, the Consolidated EBITDA margin was 188 b.p.
lower than in the same period of last year, reaching 71.3%, due
to (i) 24.3% increase in headquarters expenses, whereas in
1Q15 a reversal of provisions reduced the G&A account and (ii)
39.9% growth in shopping center expenses when compared
with the 1Q15.
Consolidated EBITDA (R$) and EBITDA margin (%)
Consolidated EBITDA (R$) 1Q16 1Q15 Chg. %Mar-16(LTM)
Mar-15(LTM)
Chg. %
Net Revenue 278.8 M 264.7 M ▲5.3% 1,099.5 M 1,137.8 M ▼3.4%
Headquarters expenses (31.9 M) (25.7 M) ▲24.3% (130.8 M) (118.1 M) ▲10.7%
Shared-based compensations (5.3 M) (3.9 M) ▲35.2% (14.2 M) (15.5 M) ▼8.7%
Shopping centers expenses (32.1 M) (23.0 M) ▲39.9% (110.2 M) (104.0 M) ▲6.0%
Office towers for lease expenses (1.9 M) (3.2 M) ▼39.8% (9.2 M) (15.2 M) ▼39.9%
New projects for lease expenses (1.5 M) (1.8 M) ▼14.9% (14.5 M) (8.6 M) ▲69.6%
New projects for sale expenses (0.9 M) (0.7 M) ▲33.6% (4.4 M) (5.7 M) ▼23.0%
Cost of properties sold (2.1 M) (8.3 M)▼
74.2% (12.8 M) (64.2 M)▼
80.1%Equity pickup 0.0 M 0.0 M ▲859.0% 0.0 M (0.6 M) n.a.
Other operating income (expenses) (4.3 M) (4.5 M) ▼5.0% (9.2 M) (15.0 M) ▼38.6%
Consolidated EBITDA 198.8 M 193.7 M ▲2.6% 794.3 M 790.9 M ▲0.4%
Consolidated EBITDA Margin 71.3% 73.2% ▼188 b.p 72.2% 69.5% ▲273 b.p.
The last 12 months Consolidated EBITDA reached R$794.3
million, a slight increase of 0.4% over March 2015 (LTM). When
compared with the same period of 2014, the ConsolidatedEBITDA was up 22.6%, implying a two-year CAGR of 10.7%.
In the same period, the Consolidated EBITDA margin increased
273 b.p. to 72.2%, up from 69.5%, with other margins following
the same trend, as shown in the chart on the next page.
Consolidated EBITDA (RS) andEBITDA margin (%) evolutions - LTM
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1Q16 MULT3
Evolution of Margins (%)
Property EBITDA of R$200.2 million in 1Q16 with a margin of 72.7%
Property EBITDA, which excludes revenues and expenses
from real estate for sale and future developments, increased
2.5% compared to 1Q15, driven by an 8.4% increase in
property gross revenue.
The Property EBITDA margin, however, decreased 403 b.p., to
72.7%, down from 76.8% in 1Q15, due to the same reasons
explained in the Consolidated EBITDA topic.
In the last 12 months, the Property EBITDA margin decreased
40 b.p. to 75.0%, down from 75.4% in the same period of the
previous year.
Property EBITDA (R$) and Property EBITDA margin (%)
Property EBITDA (R$) 1Q16 1Q15 Chg. %Mar-16(LTM)
Mar-15(LTM)
Chg. %
Property Gross Revenue ¹ 305.3 M 281.7 M ▲8.4% 1,210.0 M 1,151.2 M ▲5.1%
Taxes and contributions on sales and services ² (30.0 M) (27.2 M) ▲10.6% (120.8 M) (106.6 M) ▲13.3%
Property Net Revenue 275.3 M 254.5 M ▲8.2% 1,089.2 M 1,044.6 M ▲4.3%
Headquarters expenses ² (31.5 M) (24.7 M)▲
27.6% (129.6 M) (108.4 M)▲
19.5%Shared-based compensations ² (5.2 M) (3.8 M) ▲38.8% (14.0 M) (14.3 M) ▼1.5%
Shopping centers expenses (32.1 M) (23.0 M) ▲39.9% (110.2 M) (104.0 M) ▲6.0%
Office towers expenses (1.9 M) (3.2 M) ▼39.8% (9.2 M) (15.2 M) ▼39.9%
Other operating income (expenses) (4.3 M) (4.5 M) ▼5.0% (9.2 M) (15.0 M) ▼38.6%
Property EBITDA ³ 200.2 M 195.4 M ▲2.5% 817.0 M 787.7 M ▲3.7%
Property EBITDA Margin 72.7% 76.8% ▼403 b.p. 75.0% 75.4% ▼40 b.p.
(1) Property Gross Revenue: does not include real estate for sale revenues.(2) Headquarters expenses, stock options and taxes: proportional to the property revenues as a percentage of gross revenue.(3) Property EBITDA: does not include real estate for sale activities (revenues, taxes, costs and expenses) and expenses related to future developments.
85.5% 88.5% 89.0%
64.0% 69.5% 72.2%
44.7% 47.4% 48.3%
29.3% 31.2% 33.0%
Mar-14 (LTM) Mar-15 (LTM) Mar-16 (LTM)
NOI + Key Money Margin Consolidated EBITDA Margin
FFO Margin Net Income Margin
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1Q16 MULT3
9.2 Financial Results, Debt and Cash
Leverage decreases to 2.33x net debt-to-EBITDA
At the end of 1Q16, Multiplan presented a net debt of R$1,850.7 million, a 3.9% reduction over 4Q15. The Company reduced its
net debt-to-EBITDA leverage from 2.44x in the end of 2015 to 2.33x by March 2016.
Financial Position Breakdown (R$) March 31, 2016 December 31, 2015 Chg. %
Current Liabilities 252.3 M 233.6 M ▲8.0%
Loans and financing 173.8 M 168.6 M ▲3.1%
Debentures 26.3 M 12.0 M ▲118.8%
Obligations from acquisition of goods 52.2 M 53.0 M ▼1.5%
Non Current Liabilities 2,062.5 M 2,074.3 M ▼0.6%
Loans and financing 1,633.1 M 1,636.1 M ▼0.2%
Debentures 398.2 M 398.2 M▲
0.0%Obligations from acquisition of goods 31.2 M 40.0 M ▼22.1%
Gross Debt 2,314.8 M 2,307.9 M ▲0.3%
Cash and Cash Equivalents 464.1 M 382.1 M ▲21.5%
Net Debt 1,850.7 M 1,925.8 M ▼3.9%
EBITDA LTM 794.3 M 789.2 M ▲0.6%
Fair Value of Investment Properties 15.720,4 M 16,024.5 M ▼1.9%
In 1Q16, the Company strengthened its balance sheet by boosting the cash position. Cash and cash equivalents increased 21.5%
over 4Q15, benefiting from cash generation of existing operations and ParkShoppingCanoas financing withdraws. The R$464.1
million cash and cash equivalents in March 31, 2016 exceeded the R$446.4 million of liability amortizations planned for the next
2 years. The LTM FFO of R$530.6 million also exceeds the amortization amount for this time period.
Multiplan’s gross debt amortization schedule
on March 31, 2016 (%)
* Debt amortization schedule from Apr-16 to Dec-16 Multiplan’s debt amortization schedule on March 31, 2016 (R$)
2016
9.0%
2017
10.4%
2018
17.7%
2019
20.3%
2020
19.9%
>2020
22.7%
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1Q16 MULT3
¹ EBITDA and Financial Results are the sum of the last 12 months
Covenant ¹ Limit Mar-16Debt
VolumeStatus
Net Debt/EBITDA = 2.00x 4.15x 773.4 M ComplyTotal Debt/Total Asset =20.0% 71.3% 114.7 M ComplyTotal Debt/Shareholders Equity
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1Q16 MULT3
Multiplan’s indebtedness continues to show a wide selection of indexes, with debt linked to the CDI and the TR indexes
representing 92.6% of the total debt outstanding. The debt in CDI represented 52.2% of total indebtedness in 1Q16, up from
46.2% in 1Q15. The TR indexed debt, which was equivalent to 42.6% in 1Q15, represented 40.4% in 1Q16.
Other indexes, like TJLP, IGP-M and others, represented 7.4% in 1Q16, while in 1Q15 these indexes represented 11.2%. All ofMultiplan’s debt is in local currency – Brazilian Reais – leaving it with no exposure to exchange rate fluctuations.
Indebtedness interest indexes on March 31, 2016
IndexPerformance
AverageInterest Rate ¹
Cost ofFunding
Gross Debt(R$)
TR ² 1.99% 9.01% 11.01% 934.9 MCDI 14.25% 1.02% 15.27% 1,208.3 MTJLP 7.50% 3.25% 10.75% 98.3 MIGP-M ² 11.57% 1.11% 12.68% 15.8 M
IPCA ² 9.39% 7.62% 17.01% 16.4 MOthers 0.00% 8.03% 8.03% 41.1 MTotal 8.71% 4.51% 13.22% 2,314.8 M
¹ Weighted average annual interest rate.² Index performance for the last 12 months.
Multiplan Debt Indexes as of
March 31, 2016
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1Q16 MULT3
9.3 Net Income and Funds From Operations (FFO)
Net Income and FFO remain stable in 1Q16
Despite the increase in interest rates, net income presented a 0.7% increase in 1Q16 over the same period of the last year,
reaching R$70.1 million, mainly due to the increase of 5.3% in net revenue, driven by increases in services (+34.3%) and parking
(+9.4%) revenues, also mentioned in the topic 9.1, and considerably offset by a 65.2% drop in real estate for sale revenues and
a 9.4% loss in the financial results. The net income margin decreased 116 b.p. to 25.1% in 1Q16, down from 26.3% in 1Q15.
In the last 12 months, net income was R$362.7 million, 2.1% higher than the same period, ended in March 2015, implying a two-
year CAGR of 10.6%.
Net Income (R$) and margin (%) Net Income (R$) and Net Income margin (%) evolutions - LTM
FFO & Net Income Calculation 1Q16 1Q15 Chg. % Mar-16 (LTM) Mar-15 (LTM) Chg. %
Net Revenue 278.8 M 264.7 M ▲5.3% 1,099.5 M 1,137.8 M ▼3.4%
Operating expenses (80.0 M) (71.0 M) ▲12.7% (305.3 M) (347.0 M) ▼12.0%
Financial results (49.2 M) (44.9 M) ▲9.4% (191.4 M) (170.0 M) ▲12.6%
Depreciation and amortization (39.5 M) (39.2 M) ▲0.9% (158.0 M) (161.5 M) ▼2.1%
Income tax and social contribution (35.0 M) (34.0 M) ▲2.8% (72.5 M) (81.9 M) ▼11.5%
Minority interest (0.1 M) (0.0 M) ▲179.0% 0.2 M 0.0 M ▲997.6%
Adjusted Net Income 75.1 M 75.5 M ▼0.6% 372.6 M 377.6 M ▼1.3%
Deferred income and social contribution (5.0 M) (5.9 M) ▼15.7% (9.9 M) (22.2 M) ▼55.3%
Net income 70.1 M 69.6 M ▲0.7% 362.7 M 355.4 M ▲2.1%
Depreciation and amortization 39.5 M 39.2 M ▲0.9% 158.0 M 161.5 M ▼2.1%
Deferred income and social contribution 5.0 M 5.9 M ▼15.7% 9.9 M 22.2 M ▼55.3%
FFO 114.6 M 114.7 M ▼0.1% 530.6 M 539.0 M ▼1.6%
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1Q16 MULT3
Strong cash generation
Funds From Operations (FFO) remained stable at R$114.6 million in 1Q16. In the last 12 months, FFO decreased 1.6%, totaling
R$530.6 million, still implying a two-year CAGR of 8.3%.
FFO (R$) and margin (%)FFO (R$) and FFO margin (%) evolutions - LTM
At the end of the 1Q16, FFO per share represented R$0.61, and in the last 12 months, FFO per share reached R$2.82.
FFO (R$) per share evolution¹ Shares outsdanding at the end of each period, adjusted for shares held in treasury.
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1Q16 MULT3
10. Project Development
10.1 CAPEX
Investments of R$57.9 million during 1Q16, mainly for greenfields under development
Multiplan invested R$57.9 million in the first quarter of 2016, of
which the largest amount of R$44.0 million was for mall
development, accounting for 76.0% of the quarter’s investments.
Greenfield investments were mainly for the development of
ParkShoppingCanoas (picture and details in section 10.3) and for
future greenfields. Mall expansion investments totaled R$7.3
million in 1Q16, and included the final stage of BarraShopping
Medical Center expansion and small expansions.
Investment (R$) 1Q16 % of total
Mall Development 44.0 M 76.0%
Mall Expansions 7.3 M 13.0%
Renovation, IT & Others 3.8 M 7.0%
Office Towers 2.3 M 4.0%
Land Acquisition & Air Rights 0.5 M 1.0%
Investment 57.9 M 100.0%
Renovation and IT investments totaled R$3.8 million in 1Q16. Office tower CAPEX totaled R$2.3 million, including the beginning
of construction of a footbridge that will integrate MorumbiShopping with Morumbi Corporate, in São Paulo.
10.2 Shopping Center Expansions
Medical Center expansion opened in BarraShopping
Recent event - The BarraShopping Medical Center expansion was delivered in April 2016, adding 3,515 m² of GLA to the
shopping center. The new area is located above the seventh expansion of BarraShopping, delivered in mid-2014, and occupied
by laboratories, clinics and diagnosis centers, which will complement the services already offered in the existing Medical Center.
In 1994, the Company inaugurated the first Medical Center in BarraShopping, a pionner investment made by Multiplan with 7,204m² of GLA, enhancing an already large and diversified mixed-use complex. BarraShopping Medical Center offers approximately
40 clinics, including laboratories and a day hospital, and totaling 150 doctors. Considering appointments and exams, close to
10,000 people per day are served by the Medical Center
BarraShopping Medical Center Expansion
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1Q16 MULT3
10.3 Greenfield
ParkShoppingCanoas: under construction
ParkShoppingCanoas is progressing on time and within budget and inauguration is planned for 2017. Currently 72.3% of its GLA
is leased.
Construction works were 39% concluded by the end of March 2016. The foundation phase is complete and the structure phase
was initiated. The structure phase includes:
precast concrete structures, retentions, drainage, precast concrete panels of the
facades, waterproofing, metal structures, concrete floor for the covered parking and construction of permanent power connection
for the shopping center. The counterpart works for the expansion of the Parque Getúlio Vargas are underway.
About ParkShoppingCanoas: located in the state of Rio Grande do Sul, in the city of Canoas, the project was off icially launched
in June 2015. Multiplan’s 19th shopping center will offer 48,000 m² of GLA. Multiplan will have an 80% ownership interest in the
shopping center’s income, while the company will invest 94.7% of the project’s development costs (CAPEX), which should
represent R$359.3 million in the Company’s stake. Third year estimated NOI (Net Operating Income) is R$36.0 million. The thirdyear NOI yield, considering the net investment, is 10.8%. Following the mixed-use concept adopted by Multiplan in several of its
complexes, which combines shopping centers with real estate projects, ParkShoppingCanoas’s design already includes plans for
an expansion of 12,000 m² of GLA and three towers integrated with the shopping center, with a total private area of 22,500 m².
ParkShoppingCanoas under construction (Mar-16)
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10.4 Future Growth and Land Bank
Multiplan currently holds 820,519 m² of land for future mixed-use developments
Multiplan owns 820,519 m² of land for future mixed-use projects. Based on current internal project assessments, the Company
estimated a total private area¹ for sale of over one million m². All sites shown on the list below are integrated with the Company’s
shopping centers and should be used to foster the development of mixed-use projects, primarily for sale.
Shopping Attached to LandLocation
Land AreaPotential Area
for Sale¹Project Type % Multiplan
BarraShoppingSul 159,587 m² 304,515 m² Hotel, Apart-Hotel, Office, Residential 100%
JundiaíShopping 4,500 m² 11,616 m² Office 100%
ParkShoppingBarigüi 28,214 m² 43,376 m² Apart-Hotel, Office 94%
ParkShoppingCampoGrande 317,755 m² 92,774 m² Office, Residential 90%
ParkShoppingCanoas 18,721 m² 22,457 m² Hotel, Apart-Hotel, Office n.a.
ParkShoppingSãoCaetano 36,948 m² 138,000 m² Office 100%Parque Shopping Maceió 86,699 m² 182,665 m² Office, Residential 50%
RibeirãoShopping 102,295 m² 138,749 m² Hotel, Apart-Hotel, Office, Residential 100%
ShoppingAnáliaFranco 29,800 m² 89,600 m² Residential 36%
VillageMall 36,000 m² 34,038 m² Office 100%
Total 820,519 m² 1,057,790 m² 83%
BarraShoppingSul mixed-use project illustration
Artist’s rendering for illustrative purposes only – Project subject to changes without previous notice
¹This information is merely informative to provide a better understanding of the Company’s growth potential and should not be considered as a commitment todevelop the aforementioned projects, which may be changed or cancelled without prior notice.
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11. MULT3 Indicators & Stock Market
Multiplan’s stock rises 41.3% in 1Q16
Multiplan’s stock (MULT3 at BM&FBOVESPA) was quoted at R$53.70 at the end of 1Q16, 41.3% higher than at the end of 4Q15.
This is the largest increase for a first quarter since the IPO. The daily traded volume averaged R$40.6 million in 1Q16, 5.3% higher
than 2015 (R$38.6 million). The daily number of traded shares in the quarter increased 10.2% over 2015, reaching 892,627
shares. Multiplan’s shares are listed on 18 indexes, including the Bovespa Index (IBOV), Brazil 50 Index (IBrX 50), Brazil Index
(IBrX), and Carbon Efficient Index (ICO2).
1Q16: MULT3, MULT3 volume and Bovespa IndexBase 100 = December 31, 2015
Evolution of daily average number of shares traded MULT3 share price evolution in first quarters
Multiplan is included in the Carbon Efficient Index (ICO2)
As previewed in the last report, Multiplan was included in the Carbon Efficient Index (ICO2), which is valid for a four-month period
from January to April of 2016. The index comprises the shares of companies participating in the IBrX 50 that have agreed to join
the initiative by adopting transparent practices with respect to their greenhouse gas emissions (GHGs). The inclusion reinforces
the Company’s commitment with issues related to the sustainability and the environment.
On March 31, 2016, 28.9% of the Company’s shares were owned directly or indirectly by Mr. and Mrs. Peres. Ontario Teachers’
Pension Plan (OTPP) owned 28.8% and the free-float was equivalent to 41.2%. Shares held by management and in treasury
totaled 1.1% of the outstanding shares. Total shares outstanding were 189,997,214.
MULT3 at BM&FBOVESPA 1Q16 1Q15 Chg. %
Average Closing Price (R$) 44.92 51.32 ▼12.5%
Closing Price (R$) 53.70 56.05 ▼4.2%
Average Daily Traded Volume (R$) 40.6 M 44.3 M ▼8.3%
Average Daily Traded Volume (# ofshares) 892,627 868,081 ▲2.8%
Market Cap (R$) 10,202.9 M 10,649.3 M ▼4.2%
Shareholders’ capital stock breakdown on March 31, 2016.OTPP – Ontario Teachers’ Pension Plan
0.0 M
10.0 M
20.0 M
30.0 M
40.0 M
50.0 M
60.0 M
70.0 M
80
90
100
110
120
130
140
150
Dec-15 Jan-16 Feb-16 Mar-16
Traded Volume (15 day average) Multiplan Ibovespa
+41.3% +16.9%
17.4 M
26.5 M31.7 M
38.6 M 40.6 M359,710
492,683
640,868
809,890892,627
2012 2013 2014 2015 1Q16
Average daily traded volume (R$)
Average daily traded volume in number of shares
11.4%
-3.7% -3.0%
18.1%
41.3%
1Q12 1Q13 1Q14 1Q15 1Q16
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12. Portfolio
Portfolio – 1Q16 Opening StateMultiplan
%Avg. Total
GLA (1Q16)Sales (LTM)1 Rent (LTM)2
Avg.OccupancyRate (1Q16)
Operating shopping centers
BH Shopping 1979 MG 80.0% 47,138 m² 24,454 R$/m² 2,102 R$/m² 97.9%
RibeirãoShopping 1981 SP 80.0% 68,658 m² 12,233 R$/m² 907 R$/m² 97.7%
BarraShopping 1981 RJ 51.1% 74,713 m² 28,833 R$/m² 2,550 R$/m² 99.9%
MorumbiShopping 1982 SP 65.8% 56,102 m² 31,191 R$/m² 2,649 R$/m² 99.5%
ParkShopping 1983 DF 61.7% 53,524 m² 21,944 R$/m² 1,632 R$/m² 98.2%
DiamondMall 1996 MG 90.0% 21,386 m² 28,464 R$/m² 2,156 R$/m² 99.5%
New York City Center 1999 RJ 50.0% 22,257 m² 9,735 R$/m² 644 R$/m² 100.0%
ShoppingAnáliaFranco 1999 SP 30.0% 51,719 m² 21,052 R$/m² 1,675 R$/m² 98.0%
ParkShoppingBarigüi 2003 PR 84.0% 51,408 m² 18,807 R$/m² 1,163 R$/m² 99.9%
Pátio Savassi 2004 MG 96.5% 19,191 m² 22,218 R$/m² 1,616 R$/m² 98.2%
ShoppingSantaÚrsula 1999 SP 62.5% 23,079 m² 8,090 R$/m² 344 R$/m² 91.0%
BarraShoppingSul 2008 RS 100.0% 73,012 m² 15,388 R$/m² 762 R$/m² 98.5%
ShoppingVilaOlímpia 2009 SP 60.0% 28,370 m² 16,073 R$/m² 1,158 R$/m² 93.1%
ParkShoppingSãoCaetano 2011 SP 100.0% 39,253 m² 14,613 R$/m² 1,039 R$/m² 98.5%
JundiaíShopping 2012 SP 100.0% 34,385 m² 13,226 R$/m² 871 R$/m² 95.8%
ParkShoppingCampoGrande 2012 RJ 90.0% 42,819 m² 11,541 R$/m² 870 R$/m² 95.2%
VillageMall 2012 RJ 100.0% 25,710 m² 21,847 R$/m² 1,206 R$/m² 95.6%
Parque Shopping Maceió 2013 AL 50.0% 37,540 m² 10,204 R$/m² 699 R$/m² 98.0%
Subtotal operating shopping centers 73.8% 770,264 m² 18,942 R$/m² 1,410 R$/m² 97.9%
Operating office tower
ParkShopping Corporate 2012 DF 50.0% 13,360 m² Leasing phase (18.8%)
Morumbi Corporate 2013 SP 100.0% 74,198 m² 91.5%
Subtotal operating office towers 92.4% 87,558 m²
Total properties for lease 75.7% 857,822 m²
Malls under development
ParkShoppingCanoas 2017 RS 80.0% 48,000 m² Leasing phase (72.3%)
Subtotal malls under development 80.0% 48,000 m²
Expansion under development
BarraShopping Medical Center Exp. 2016 RJ 51.1% 3,515 m² Leasing phase (97.1%)Subtotal expansion under development 51.1% 3,515 m²
Total portfolio 75.8% 909,337 m²
¹ Sales per m²: Sales/m² calculation considers only the GLA from stores that report sales, and excludes sales from kiosks, since they are notcounted in the total GLA.
² Rent per m²: Sum of base and overage rents charged from tenants divided by its occupied GLA. It is worth noting that this GLA includes storesthat are already leased but are not yet operating (i.e., stores that are being readied for opening).
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13. Ownership Structure
Multiplan’s ownership structure on March 31, 2016 is described in the chart below. Of a total of 189,997,214 shares issued,
178,138,867 are common voting shares and 11,858,347 are preferred shares held exclusively by Ontario Teachers’ Pension
Plan and are not listed or traded on any stock exchange.
Multiplan’s ownership interests in Special Purpose Companies (SPCs) are as follows:
MPH Empreendimento Imobiliário Ltda.: Owns 60.0% interest in ShoppingVilaOlímpia, located in the city of São Paulo, State
of São Paulo. Multiplan holds directly and indirectly a 100.0% interest in MPH.
Manati Empreendimentos e Participações S.A.: Owns 75.0% interest in ShoppingSantaÚrsula, located in the city of Ribeirão
Preto, State of São Paulo. Multiplan holds a 50.0% interest in Manati.
Parque Shopping Maceió S.A.: Owns 100.0% interest in Parque Shopping Maceió, located in the city of Maceió, State of
Alagoas, in which Multiplan has a 50/50 partnership.Danville SP Empreendimento Imobiliário Ltda.: SPC established to develop real estate project in the city of Ribeirão Preto,
State of São Paulo.
Multiplan Holding S.A.: Multiplan’s wholly-owned subsidiary; holds interest in other companies and assets.
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Ribeirão Residencial Empreendimento Imobiliário Ltda.: SPC established to develop real estate project in the city of
Ribeirão Preto, State of São Paulo.
Multiplan Greenfield I Empreendimento Imobiliário Ltda.: SPC established to develop an office tower in the city of Porto
Alegre, State of Rio Grande do Sul.
BarraSul Empreendimento Imobiliário Ltda.: SPC established to develop a residential building in the city of Porto Alegre,
State of Rio Grande do Sul.
Morumbi Business Center Empreendimento Imobiliário Ltda.: SPC established to develop real estate project in the city of
São Paulo, State of São Paulo, holding a 30.0%
indirect stake in ShoppingVilaOlímpia via 50.0% holdings in MPH, which in turn
holds 60.0% of ShoppingVilaOlímpia.
Multiplan Greenfield II Empreendimento Imobiliário Ltda.: Owns a 46.88% interest in Morumbi Corporate, an office tower in
the city of São Paulo, State of São Paulo.
Multiplan Greenfield III Empreendimento Imobiliário Ltda.: SPC established to develop real estate projects in the city of Rio
de Janeiro, State of Rio de Janeiro.
Multiplan Greenfield IV Empreendimento Imobiliário Ltda.: Owns a 53.12% interest in Morumbi Corporate. Multiplanindirectly owns 100.0% interest in Morumbi Corporate.
Jundiaí Shopping Center Ltda.: Owns a 100.0% interest in JundiaíShopping, located in the city of Jundiaí, State of São Paulo.
Multiplan holds a 100.0% interest in Jundiaí Shopping Center Ltda.
ParkShopping Campo Grande Ltda.: Owns a 90.0% interest in ParkShoppingCampoGrande, located in the city of Rio de
Janeiro, State of Rio de Janeiro.
ParkShopping Corporate Empreendimento Imobiliário Ltda.: Owns a 50.0% interest in ParkShopping Corporate, an office
tower located in the city of Brasília, Federal District.
ParkShopping Canoas Ltda.: a SPC established to develop real estate project in the city of Canoas, State of Rio Grande do
Sul.
Pátio Savassi Administração de Shopping Center Ltda.: a SPC established to manage the parking operation at Shopping
Pátio Savassi, located in the city of Belo Horizonte, State of Minas Gerais.
ParkShopping Global Ltda.: a SPC established to develop real estate projects in the city of São Paulo, State of São Paulo.
ParkShopping Jacarepaguá Ltda.: a SPC established to develop real estate projects in the city of Rio de Janeiro, State of Riode Janeiro.
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14. Operational and Financial Data
Operational and Financial Highlights
Performance
Financial (MTE %) 1Q16 1Q15 Chg.%
Gross revenue R$'000 309,248 292,961 ▲5.6%
Net revenue R$'000 278,824 264,702 ▲5.3%
Net revenue R$/m² 502.6 478.6 ▲5.0%
Net revenue USD/sq. foot 13.0 13.9 ▼6.5%
Rental revenue (with straight-line effect) R$'000 216,896 202,906 ▲6.9%
Rental revenue R$/m² 391.0 366.9 ▲6.6%
Rental revenue USD/sq. foot 10.1 10.7 ▼5.2%
Monthly rental revenue R$/m² 124.5 117.1 ▲6.4%
Monthly rental revenue USD/sq. foot 3.2 3.4▼
5.3%Net Operating Income (NOI) R$'000 229,319 219,211 ▲4.6%
Net Operating Income R$/m² 413.4 396.4 ▲4.3%
Net Operating Income USD/sq. foot 10.7 11.5 ▼7.2%
Net Operating Income margin 87.1% 89.3% ▼226 b.p.
NOI/share 1.22 1.16 ▲4.9%
NOI + Key Money (KM) R$'000 232,837 227,106 ▲2.5%
NOI + KM R$/m² 419.7 410.6 ▲2.2%
NOI + KM USD/sq. foot 10.9 11.9 ▼9.0%
NOI + KM margin 87.2% 89.7% ▼242 b.p.
NOI + Key money/share 1.24 1.20 ▲2.8%
Headquarter expenses R$'000 31,900 25,664 ▲24.3%
Headquarter expenses/Net revenues 11.4% 9.7% ▲175 b.p.
EBITDA R$'000 198,799 193,700 ▲2.6%
EBITDA R$/m² 358.3 350.2 ▲2.3%
EBITDA USD/sq. foot 9.3 10.2 ▼8.9%
EBITDA margin 71.3% 73.2% ▼188 b.p.
EBITDA per Share R$ 1.06 1.03 ▲2.9%
Adjusted net income R$'000 75,055 75,499 ▼0.6%
Adjusted net income R$/m² 135.3 136.5▼
0.9%Adjusted net income USD/sq. foot 3.5 4.0 ▼11.8%
Adjusted net income margin 26.9% 28.5% ▼160 b.p.
Adjusted net income per share R$ 0.40 0.40 ▼0.3%
FFO R$'000 114,605 114,695 ▼0.1%
FFO R$/m² 206.6 207.4 ▼0.4%
FFO US$'000 31,904 35,875 ▼11.1%
FFO USD/sq. foot 5.3 6.0 ▼11.3%
FFO margin 41.1% 43.3% ▼5.1%
FFO per share R$ 0.61 0.61 ▲0.2%
Dollar (USD) end of quarter 3.5922 3.1971 ▲12.4%
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Operational and Financial Highlights
Performance
Market Performance 1Q16 1Q15 Chg.%
Number of shares 189,997,214 189,997,214 -
Common shares 178,138,867 178,138,867 -Preferred shares 11,858,347 11,858,347 -
Average share closing price 44.92 51.32 ▼12.5%
Closing share price 53.70 56.05 ▼4.2%
Average daily traded volume (R$ '000) 40,614 44,309 ▼8.3%
Market cap (R$ ‘000) 10,202,850 10,649,344 ▼4.2%
Total debt (R$ ‘000) 2,314,794 2,172,675 ▲6.5%
Cash (R$ ‘000) 464,142 412,875 ▲12.4%
Net debt (R$ ‘000) 1,850,652 1,759,800 ▲5.2%
P/FFO (Last 12 months) 19.2 x 19.8 x ▼2.7%
EV/EBITDA (Last 12 months) 15.2 x 15.7 x ▼3.3%Net Debt/EBITDA (Last 12 months) 2.3 x 2.2 x ▲4.7%
Performance
Operational (100%) 1Q16 1Q15 Chg.%
Final total mall GLA (m²) 770,206 767,554 ▲0.3%
Final owned mall GLA (m²) 568,162 566,455 ▲0.3%
Owned mall GLA % 73.8% 73.8% ▼3 b.p.
Adjusted total mall GLA (avg.)¹ (m²) 752,048 749,396 ▲0.4%
Adjusted owned mall GLA (avg.)¹ (m²) 554,767 553,054 ▲0.3%
Total office towers GLA 87,558 87,558 -
Total owned office towers GLA 80,878 80,878 -
Final adjusted total GLA (m²) ¹ 839,606 836,954 ▲0.3%
Final adjusted owned GLA (m²) ¹ 635,645 633,932 ▲0.3%
Total sales R$'000 3,008,213 2,916,949 ▲3.1%
Total sales R$/m² ² 4,291 4,128 ▲3.9%
Total sales USD/sq. foot ² 111 120 ▼7.5%
Satellite stores sales R$/m² ² 5,814 5,727 ▲1.5%
Satellite stores sales USD/sq. foot ² 150 166 ▼9.7%
Total Rent R$/m² 328 324 ▲1.2%
Total Rent USD/sq. foot 8.5 9.4 ▼9.9%
Same Store Sales ▲1.6% ▲4.3% ▼268 b.p.
Same Area Sales ▲4.2% ▲5.7% ▼149 b.p.
Same Store Rent ▲5.8% ▲9.5% ▼371 b.p.Same Area Rent ▲4.5% ▲7.7% ▼323 b.p.
IGP-DI effect ▲7.5% ▲5.2% ▲230 b.p.
Occupancy costs 13.9% 13.5% ▲47 b.p.
Rent as sales % 8.1% 8.1% ▲4 b.p.
Other as sales % 5.8% 5.4% ▲43 b.p.
Turnover 1.1% 0.6% ▲51 b.p.
Occupancy rate 97.9% 98.6% ▼74 b.p.
Delinquency 4.5% 1.8% ▲266 b.p.
Rent loss 1.0% 0.5% ▲54 b.p.
¹ Adjusted GLA corresponds to the period’s average GLA excluding the area of BIG supermarket at BarraShoppingSul.
² Considers only the GLA from stores that report sales, and excludes sales from kiosks, since they are not counted in the total GLA.
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15. Reconciliation between IFRS (with CPC 19 R2) and Managerial Report
15.1 - Variations on the Financial Statement – IFRS with CPC 19 (R2) and Managerial Report
IFRS with CPC 19 R2
Financial Statements CPC 19 R2 Managerial Effect
(R$'000) 1Q16 1Q16 Difference
Rental revenue 203,512 207,233 3,721
Services revenue 37,133 37,103 (30)
Key money revenue 3,189 3,518 329
Parking revenue 45,585 46,474 889
Real estate for sale revenue 3,930 3,930 -
Straight-line effect 9,332 9,663 330
Other revenues 1,309 1,328 19
Gross Revenue 303,990 309,248 5,258Taxes and contributions on sales and services (30,047) (30,424) (378)
Net Revenue 273,944 278,824 4,880
Headquarters expenses (31,873) (31,900) (27)
Share-based compensations (5,314) (5,314) -
Shopping centers expenses (30,678) (32,108) (1,430)
Office Towers for lease expenses (1,943) (1,943) -
New projects for lease expenses (1,493) (1,493) -
New projects for sale expenses (871) (871) -
Cost of properties sold (2,148) (2,148) -
Equity pickup 1,514 7 (1,507)
Other operating income/expenses (4,264) (4,257) 8EBITDA 196,875 198,799 1,924
Financial revenue 20,830 21,160 330
Financial expenses (69,411) (70,327) (916)
Depreciation and amortization (38,598) (39,550) (952)
Earnings Before Taxes 109,696 110,082 386
Income tax and social contribution (34,913) (34,975) (63)
Deferred income and social contribution taxes (4,653) (4,976) (323)
Minority interest (51) (51) -
Net Income 70,079 70,079 -
The differences between CPC 19 (R2) and the managerial reports are the 37.5% interest in ShoppingSantaÚrsula, through a50.0% interest in Manati Empreendimentos e Participações S.A., and the 50.0% interest in Parque Shopping Maceió, through
Parque Shopping Maceió S.A.
The main differences in 1Q16 are: (i) increase of R$3.7 M in Rental Revenues; (ii) increase of R$1.4 M in Shopping Center
Expenses, (iii) increase of R$0.6 M in Financial Results, and (iv) increase of R$1.0 M in Depreciation and Amortization.
Accordingly and as a result of the variations mentioned above, there were decreases of R$1.5 M in the result which was recorded
in the equity pickup line, given that the results of these companies are recorded on this line as determined by CPC 19 (R2).
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15.2 - Variations on the Balance Sheet: Total Assets
IFRS with CPC 19 R2
ASSETS CPC 19 R2 Managerial Effect (R$‘000) 03/31/2016 03/31/2016 Difference
Current assets
Cash and cash equivalents 152,755 162,276 9,521Short term investments 301,866 301,866 -Accounts receivable 232,590 237,763 5,173Land and properties held for sale 71,330 71,330 -Related parties 4,323 4,323 -Recoverable taxes and contributions 4,392 4,392 -Sundry advances 2,631 2,631 -Deferred costs 30,803 30,922 119
Other 31,409 32,166 757Total current assets 832,099 847,669 15,570
Noncurrent asset
Accounts receivable 136,987 136,987 -Land and properties held for sale 215,976 215,976 -Related parties 12,164 12,164 -Judicial deposits 13,688 14,319 631Deferred income and social contribution taxes 15,493 17,557 2,064Deferred costs 88,868 89,746 879Other 19,878 19,929 51Investments 128,199 2,828 (125,371)Investment properties 5,250,906 5,405,611 154,705Property and equipment 29,872 29,872 -Intangible 350,119 351,090 971Total non current assets 6,262,150 6,296,079 33,929
Total assets 7,094,249 7,143,747 49,499
The differences in total assets regarding the 37.5% interest in ShoppingSantaÚrsula, and the 50.0% interest in Parque Shopping
Maceió are (i) increase of R$154.7 M in investment properties; (ii) increase of R$9.5 M in cash and cash equivalents; and (iii)
increase of R$5.2 M in accounts receivable.
As a result of the variations mentioned above, there was a decrease of R$125.4 M in investments given that the assets and
liabilities of these companies are now recorded on this line as determined by CPC 19 (R2).
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15.3 - Variations on the Balance Sheet: Total Liabilities and Shareholders' Equity
IFRS with CPC 19 R2
LIABILITIES CPC 19 R2 Managerial Effect
(R$‘000) 03/31/2016 03/31/2016 Difference
Current liabilities
Loans and financing 169,993 173,803 3,810Debentures 26,321 26,321 -Accounts payable 94,949 95,851 902Property acquisition obligations 52,161 52,161 -Taxes and contributions payable 28,980 28,766 (214)Dividends to pay 115,783 115,783 -Deferred incomes 51,044 51,130 86Other 7,011 6,998 (13)Total current liabilities 546,242 550,813 4,572
Non current liabilities
Loans and financing 1,596,035 1,633,086 37,051Debentures 398,223 398,223 -Deferred income and social contribution taxes 171,177 174,639 3,462Property acquisition obligations 31,200 31,200 -Others 3,481 3,481 -Provision for contingencies 14,023 14,643 620Deferred incomes 68,141 71,935 3,794Total non current liabilities 2,282,280 2,327,207 44,927
Shareholders' equity
Capital 2,388,062 2,388,062 -Capital reserves 975,134 975,134 -Profit reserve 1,053,637 1,053,637 -Share issue costs (39,003) (39,003) -Shares in treasure department (97,996) (97,996) -Capital transaction effects (89,996) (89,996) -Retained earnings 69,658 69,658 -Minority interest 6,231 6,231 -Total shareholder's equity 4,265,727 4,265,727 -
Total liabilities and shareholders' equity 7,094,249 7,143,747 49,499
The differences in total liabilities and shareholders' equity regarding the CPC 19 R2 refer to (i) the increase of R$40.9 M in loans
and financing, given the inclusion of the 50.0% in the Parque Shopping Maceió project, which signed a contract to finance itsconstruction via Banco do Nordeste; and (ii) the increase of R$3.9 M in revenues and costs, in deferred income.
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16. Appendices
16.1 Consolidated Financial Statements: According to the technical pronouncement CPC 19 (R2) - Joint Arrangements
(R$'000) 1Q16 1Q15 Chg. %
Rental revenue 203,512 190,589 ▲6.8%Services revenue 37,133 27,658 ▲34.3%
Key money revenue 3,189 7,480 ▼57.4%
Parking revenue 45,585 41,866 ▲8.9%
Real estate for sale revenue 3,930 11,286 ▼65.2%
Straight-line effect 9,332 8,439 ▲10.6%
Other revenues 1,309 759 ▲72.6%
Gross Revenue 303,990 288,075 ▲5.5%
Taxes and contributions on sales and services (30,047) (27,957) ▲7.5%
Net Revenue 273,944 260,118 ▲5.3%
Headquarters expenses (31,873) (25,624) ▲24.4%
Share-based compensations (5,314) (3,930) ▲35.2%
Shopping centers expenses (30,678) (21,754) ▲41.0%
Office Towers for lease expenses (1,943) (3,230) ▼39.8%
New projects for lease expenses (1,493) (1,754) ▼14.9%
New projects for sale expenses (871) (652) ▲33.6%
Cost of properties sold (2,148) (8,334) ▼74.2%
Equity pickup 1,514 1,285 ▲17.9%
Other operating income/expenses (4,264) (4,484) ▼4.9%
EBITDA 196,875 191,643 ▲2.7%
Financial revenue 20,830 10,737 ▲94.0%
Financial expenses (69,411) (55,211) ▲25.7%Depreciation and amortization (38,598) (38,256) ▲0.9%
Earnings Before Taxes 109,696 108,912 ▲0.7%
Income tax and social contribution (34,913) (33,928) ▲2.9%
Deferred income and social contribution taxes (4,653) (5,372) ▼13.4%
Minority interest (51) (18) ▲176.5%
Net Income 70,079 69,593 ▲0.7%
(R$'000) 1Q16 1Q15 Chg. %
NOI 225,809 215,910 ▲4.6%
NOI margin 87.4% 89.6% ▼225 b.p.
NOI + Key Money 228,998 223,390 ▲2.5%
NOI + Key Money margin 87.5% 89.9% ▼241 b.p.
Property EBITDA 196,811 192,064 ▲2.5%
Property EBITDA margin 72.8% 76.8% ▼406 b.p.
EBITDA (Shopping Center + Real Estate) 196,875 191,643 ▲2.7%
EBITDA margin 71.9% 73.7% ▼181 b.p.
Net Income 70,079 69,593 ▲0.7%
Net Income margin 25.6% 26.8% ▼117 b.p.
Adjusted Net Income 74,732 74,965 ▼0.3%
Adjusted Net Income margin 27.3% 28.8% ▼154 b.p.
FFO 113,330 113,221 ▲0.1%
FFO margin 41.4% 43.5% ▼216 b.p.
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16.2 Cash Flow Statements: According to the technical pronouncement CPC 19 (R2) - Joint Arrangements
Cash Flow Statement (R$'000) 1Q16
Income before tax 109,696
Depreciation and amortization 38,597
Interest and monetary variations on debentures, loans, and property acquisition 65,523
Other net income adjustments 8,923
(Increase) decrease on current assets 12,269
(Increase) decrease on land held for sale (2,422)
Increase (decrease) on current liabilities (53,088)
Cash Flow From Operations 179,498
(Increase) decrease of investment property (51,823)
Increase of property, plant and equipment (452)
Additions to intangibles (1,060)
Interest earnings bank deposits (88,554)
Others 1,958
Cash Flow From Investments (139,931)
Increase (decrease) in loans and financing (15,150)
Acquisition of shares in treasure department -
Interest payment of debentures -
Interest payment of loans (36,759)
Paid dividends -
Non-controllers’ interest 89
Others 6,008
Cash Flows from Financing Activities (45,812)
Cash and cash equivalents at the beginning of the period 159,000
Cash and cash equivalents at end of the period 152,755
Cash Flow (6,245)
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16.3 Consolidated Financial Statements: Managerial Report
(R$'000) 1Q16 1Q15 Chg. %
Rental revenue 207,233 194,216▲
6.7%Services revenue 37,103 27,617 ▲34.3%
Key money revenue 3,518 7,895 ▼55.4%
Parking revenue 46,474 42,492 ▲9.4%
Real estate for sale revenue 3,930 11,286 ▼65.2%
Straight-line effect 9,663 8,690 ▲11.2%
Other revenues 1,328 764 ▲73.7%
Gross Revenue 309,248 292,961 ▲5.6%
Taxes and contributions on sales and services (30,424) (28,259) ▲7.7%
Net Revenue 278,824 264,702 ▲5.3%
Headquarters expenses (31,900) (25,664) ▲24.3%
Share-based compensations (5,314) (3,930) ▲35.2%
Shopping centers expenses (32,108) (22,958) ▲39.9%
Office Towers for lease expenses (1,943) (3,230) ▼39.8%
New projects for lease expenses (1,493) (1,754) ▼14.9%
New projects for sale expenses (871) (652) ▲33.6%
Cost of properties sold (2,148) (8,334) ▼74.2%
Equity pickup 7 1 ▲859.0%
Other operating income/expenses (4,257) (4,482) ▼5.0%
EBITDA 198,799 193,700 ▲2.6%
Financial revenue 21,160 11,211 ▲88.7%
Financial expenses (70,327) (56,161) ▲25.2%Depreciation and amortization (39,550) (39,196) ▲0.9%
Earnings Before Taxes 110,082 109,554 ▲0.5%
Income tax and social contribution (34,975) (34,037) ▲2.8%
Deferred income and social contribution taxes ² (4,976) (5,906) ▼15.7%
Minority interest (51) (18) ▲179.0%
Net Income 70,079 69,593 ▲0.7%
(R$'000) 1Q16 1Q15 Chg. %
NOI 229,319 219,211 ▲4.6%
NOI margin 87.1% 89.3% ▼226 b.p.
NOI + Key Money 232,837 227,106 ▲2.5%
NOI + Key Money margin 87.2% 89.7% ▼242 b.p.
Property EBITDA 200,232 195,382 ▲2.5%
Property EBITDA margin 72.7% 76.8% ▼403 b.p.
EBITDA (Shopping Center + Real Estate) 198,799 193,700 ▲2.6%
EBITDA margin 71.3% 73.2% ▼188 b.p.
Net Income 70,079 69,593 ▲0.7%
Net Income margin 25.1% 26.3% ▼116 b.p.
Adjusted Net Income 75,055 75,499 ▼0.6%
Adjusted Net Income margin 26.9% 28.5% ▼160 b.p.
FFO 114,605 114,695 ▼0.1%FFO margin 41.1% 43.3% ▼223 b.p.
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16.4 Balance Sheet – Managerial Report
ASSETS 03/31/2016 12/31/2015 Chg. %
Current Assets
Cash and cash equivalents 162,276 168,794▼
3.9%Short Term Investments 301,866 213,312 ▲41.5%Accounts receivable 237,763 273,071 ▼12.9%Land and properties held for sale 71,330 72,527 ▼1.7%Related parties 4,323 3,873 ▲11.6%Recoverable taxes and contributions 4,392 10,149 ▼56.7%Sundry advances 2,631 8,068 ▼67.4%Deferred costs 30,922 30,790 ▲0.4%Other 32,166 21,967 ▲46.4%Total Current Assets 847,669 802,550 ▲5.6%
Noncurrent Asset
Accounts receivable 136,987 135,423 ▲1.2%Land and properties held for sale 215,976 212,160 ▲1.8%
Related parties 12,164 12,657▼
3.9%Judicial deposits 14,319 13,151 ▲8.9%Deferred income and social contribution taxes 17,557 18,443 ▼4.8%Deferred costs 89,746 77,700 ▲15.5%Other 19,929 21,415 ▼6.9%Investments 2,828 2,797 ▲1.1%Investment Properties 5,405,611 5,385,981 ▲0.4%Property and equipment 29,872 30,841 ▼3.1%Intangible 351,090 351,419 ▼0.1%Total Non Current Assets 6,296,079 6,261,986 ▲0.5%
Total Assets 7,143,747 7,064,536 ▲1.1%
LIABILITIES 03/31/2016 12/31/2015 % Change
Current LiabilitiesLoans and financing 173,803 168,631 ▲3.1%Debentures 26,321 12,031 ▲118.8%Accounts payable 95,851 88,585 ▲8.2%Property acquisition obligations 52,161 52,950 ▼1.5%Taxes and contributions payable 28,766 46,589 ▼38.3%Dividends to pay 115,783 115,783 -Deferred incomes and costs 51,130 52,283 ▼2.2%Other 6,998 7,497 ▼6.7%
Total Current Liabilities 550,813 544,350 ▲1.2%
Non Current Liabilities
Loans and financing 1,633,086 1,636,071 ▼0.2%Debentures 398,223 398,223 -
Deferred income and social contribution taxes 174,639 170,548 ▲2.4%Property acquisition obligations 31,200 40,027 ▼22.1%Other 3,481 597 ▲483.3%Provision for contingencies 14,643 9,912 ▲47.7%Deferred incomes and costs 71,935 77,407 ▼7.1%Total Non Current Liabilities 2,327,207 2,332,785 ▼0.2%
Shareholders' Equity
Capital 2,388,062 2,388,062 -Capital reserves 975,134 972,873 ▲0.2%Profit reserve 1,053,637 1,053,637 -Share issue costs (39,003) (39,003) -Shares in treasure department (97,996) (104,314) ▼6.1%Capital Transaction Effects (89,996) (89,996) -
Retained earnings 69,658 - n.a.Minority interest 6,231 6,142 ▲1.5%Total Shareholder's Equity 4,265,727 4,187,401 ▲1.9%
Total Liabilities and Shareholders' Equity 7,143,747 7,064,536 ▲1.1%
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17. Glossary and Acronyms
Abrasce: Brazilian Association of Shopping Centers (Associação Brasileira de Shopping Centers). Adjusted net income: Net income adjusted for non-recurring expenses with the IPO, restructuring costs, amortization of goodwill from acquisitions
and mergers and deferred taxes.
Anchor stores: Large, well known stores with special marketing and structural features that can attract consumers, thus ensuring permanent
attraction and uniform traffic in all areas of the mall. Stores must have at least 1,000 m² to be considered anchors.
BMF&Bovespa: São Paulo Stock Exchange (Bolsa de Valores de São Paulo).
Brownfield: Expansion and mixed-use project.
CAGR: Compounded Annual Growth Rate. Corresponds to a geometric mean growth rate, on an annualized basis.
CAPEX: Capital Expenditure. Correspond to the estimated resources to be disbursed in asset development, expansion or improvement. The
capitalized value shows the variation of investment properties and property and equipment plus depreciation. CAPEX can also refer to investments
other than real estate, such as IT projects, hardware and other unrelated investments.
CDI: (“Certificado de Depósito Interbancário ” or Interbank Deposit Certificate). Certificates issued by banks to generate liquidity. Its average
overnight annualized rate is used as a reference for interest rates in Brazilian Economy.
Debenture: debt instrument issued by companies to borrow money. Multiplan’s debentures are non-convertible, which means that they cannotbe converted into shares. Moreover, a debenture holder has no voting rights.
Deferred income: Deferred key money and store buy back expenses.
Delinquency: Percentage of quarterly rent coming due, but not received.
Double (seasonal) rent: Additional rent usually charged from the tenants in December, due to higher sales in consequence of Christmas and
extra charges on the month.
EBITDA margin: EBITDA divided by Net Revenue.
EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. Net income (loss) plus expenses with income tax and social contribution
on net income, financial result, depreciation and amortization. EBITDA does not have a single definition, and this definition of EBITDA may not be
comparable with the EBITDA used by other companies.
EPS: Earnings per Share. Net Income divided by the total shares of the Company minus shares held in treasury.
Equity pickup: Interest held in the subsidiary Company will be shown in the income statement as equity pickup, representing the net incomeattributable to the subsidiary’s shareholders.
Expected owned GLA: Multiplan’s interest in each shopping mall, including projects under development and expansions.
Funds From Operations (FFO): Refers to the sum of adjusted net income, depreciation and amortization.
GLA: Gross Leasable Area, equivalent to the sum of all the areas available for lease in malls and offices for lease, excluding merchandising.
Greenfield: Development of new shopping center projects.
IBGE: The Brazilian Institute of Geography and Statistics.
IGP-DI Adjustment Effect: The average of the monthly IGP-DI increase with a month of delay, multiplied by the base rent that was adjusted on
the respective month.
IGP-DI: (“Índice Geral de Preços - Disponibilidade Interna ”) General Domestic Price Index. Inflation index published by the Getúlio Vargas
Foundation, referring to the data collection period between the first and the last day of the month in reference, with disclosu