Aliansce presents its 4Q17 and 2017 results

RIO DE JANEIRO, March 12, 2018 /PRNewswire/ -- Aliansce Shopping Centers S.A. (B3: ALSC3), one of Brazil's largest shopping malls owners and operators, announced financial results for the fourth quarter (4Q17) and 2017.

"We closed 2017 with growth in total sales, of 9.8%, observing a solid recovery after two consecutive years of decline. The positive trend gained strength as the year progressed, with emphasis on the strong performances seen in the second and third quarters" said Aliansce Senior VP Rafael Sales. "In the fourth quarter, total sales growth reached 7.8%, and the strongest performance was verified during the month of November, as a result of a sales peak during the Black Friday period"

According to Rafael Sales "In the beginning of 2018, we've continued to observe a brighter track for sales"

4Q17 Highlights

• The Company's gross revenue reached R$ 177.1 million in 4Q17, an increase of 3.9% over 4Q16. In 2017, gross revenue grew 4.9% comparing to 2016. The growth of service and parking revenues were the highlights of the quarter.
• Store replacement activity reinforcing mix and pricing strategies. In 2017, 449 stores were leased in malls owned by Aliansce, an increase of 21.7% yoy. Since 4Q16, 232 stores of the portfolio were replaced and SAS of these replaced stores, excluding the occupation of vacant areas, increased by 31.4%. The Company's occupancy rate reached 96.1% at the end of the quarter, an increase of 0.5 p.p. compared to 3Q17.
• Debt reprofiling and organizational structure simplification. During 4Q17, Aliansce progressed on its debt reprofiling strategy, ending the year with 39.1% of debt linked to the benchmark CDI rate, at the top of our target of 30%-40%. Consequently, Aliansce's cost of debt was of 10.7% in 4Q17², compared to 13.3% in 4Q16. In 2018, the Company plans on abiding by its strategy of prepaying and renegotiating its most onerous debt, reducing its exposure to fixed indices. In addition, at the end of 2017, the Company altered its organizational structure, transferring Bangu Shopping's and Boulevard Belo Horizonte's operations up to the holding company.
• Aliansce's Adjusted FFO (AFFO) reached R$ 73.9 million in 4Q17, a growth of 29.0%, with an increase in the AFFO margin of 910 bps. In 2017, AFFO reached R$ 194.5 million, a growth of 67.3% compared to 2016.

Aliansce will hold a live conference call and webcast to discuss fourth quarter and 2017 results on March 13, at 10:00 a.m. EDT / 11:00 a.m. BRT. Investors may access the conference call dialing +1 646 828-8246 / +55 (11) 3193-1001 and using the code "Aliansce." The webcast and the presentation are accessible at http://ir.aliansce.com.br

Investor Relations +55 21 2176-7252 [email protected]

SOURCE Aliansce Shopping Centers S.A.