BRMALLS Announces 1Q11 Earnings Release

RIO DE JANEIRO, April 29, 2011 /PRNewswire/ -- BRMALLS Participacoes S.A. (Bovespa: BRML3), the largest integrated shopping mall company in Brazil, announces today its results for the first quarter of 2011 (1Q11). All the financial and operational information below is in Reais (R$), and comparisons refer to the first quarter of 2010 (1Q10), except where otherwise indicated.

• Net revenues grew 68.4% in 1Q11 reaching R$179.1 million;

• Net operating income (NOI) totaled R$158.6 million in 1Q11, an increase of 70.5% over the NOI in 1Q10 of R$93.0 million, for NOI margin of 89.5% in the quarter. Same-property NOI climbed by 26.0% over 1Q10.

• Adjusted EBITDA reached R$140.6 million in the quarter, expanding 58.6% over the same period last year.

• In 1Q11, Net Income totaled R$57.2 million, an increase of 36.1% over 1Q10. Our FFO reached R$60.1 million, up 33.3% year over year. Adjusted FFO totaled R$56.4 million in the quarter, against R$60.2 million in 1Q10.

• In 1Q11, we increased our interest in Shopping Center Crystal Plaza, Shopping Piracicaba and Shopping Curitiba, totaling R$108.7 million in investments, with real and unleveraged average IRR of 13.1%. We sold our 814.9 m2 stake in the GLA of Esplanada Shopping for R$11.8 million, with real IRR of 16.7%.

• We inaugurated, with great success, Via Brasil Shopping and the expansion of Shopping Tambore, adding a total owned GLA of 30,100 m2, with occupancy rates of 95% and 100%, respectively.

• Our malls continue to present high occupancy rates, averaging 98.1% of total GLA occupied in 1Q11. Of the 39 malls in which we hold an interest, 18 achieved occupancy rates of over 99.0% of GLA.

• Renewal leasing spreads reached 28.1% and new contract leasing spreads reached 21.0% in the quarter, showing the high demand for space combined with our high occupancy rates.

• Same-store rent continued its near double-digit growth, reaching 9.7% in the quarter. Same-store sales (SSS) grew 8.7% in the period, influenced by the effects of the high comparison base in 1Q10 and the Easter holiday. Excluding the stores that were affected the most, SSS in 1Q11 would be 9.3%.

• In the first quarter of 2011, our owned GLA and total GLA expanded by 6.9% and 1.8%, respectively, over 4Q10. We added 11,200 m2 of owned GLA through acquisitions, 14,300 m2 through greenfield projects and 15,100 m2 through expansions.

• We fully prepaid the loan we took for the acquisition of Shopping Tijuca, amounting to R$520.5 million, which would be repaid in 10 quarterly installments after the 21st month, at a cost of CDI+2% p.a., replacing it with a CRI for the same amount, with monthly installments over 14 years and grace period of two years, at a cost of TR+10.7% p.a.

• We raised US$230 million through the issue of perpetual bonds at 8.50% p.a. The coupon payments were swapped to 99.15% of CDI until the January 2016 call date. In 1Q11, we raised a total of R$670.7 million in TR linked debt for Shopping Tijuca, Shopping Tambore and Mooca Plaza Shopping.

SOURCE BR MALLS PARTICIPACOES S.A.