ALSC3 1Q18: Total sales grew 6.8% organically and Same Store Sales increased by 4.1%

Brazil - Português

News provided by

May 03, 2018, 09:21 ET

RIO DE JANEIRO, May 3, 2018 /PRNewswire/ -- Aliansce Shopping Centers S.A. (B3: ALSC3), one of Brazil's largest shopping malls owners and operators, announced today the financial results for the first quarter of 2018.

1Q18 Highlights:

Same store sales increased 4.1%, the fastest growth rate since 4Q14. Total sales reached R$ 1.3 billion, 7.4% higher year on year, while same mall sales increased by 6.8% over 1Q17.
Provisions for doubtful accounts continued on a downward trend, decreasing by 20.7% and representing 6.4% of net revenues, vs. 8.1% in 1Q17.
Store leasing activity peaked, with 464 stores leased in the last 12 months, 21.5% higher YoY. The portfolio's occupancy rate reached 95.9%, stable in comparison to 4Q17, despite seasonality.
Debt profile continued to evolve, with pre-payment of high-cost debt. Exposure to CDI floating rates reached 43.3% of total debt.
Adjusted FFO propelled by corporate restructuring and lower cost of debt, growing 18.7% to R$ 38.5 million. AFFO margin expanded 425 bps.
Managerial information now disclosed at Aliansce's ownership interest for all assets. The new consolidation structure enabled efficiencies in fiscal and interest expenses.

For a full version of 1Q18 Earnings Release and Earnings Presentation, please follow the link to our IR webpage: http://ir.aliansce.com.br

According to Mr. Rafael Sales, Executive Vice President, "the first quarter confirmed the gradual and sustainable recovery. Same store sales grew for the fourth consecutive quarter and at the fastest pace since the end of 2014. Same mall sales reflected the organic growth and commercial strength of our portfolio." Mr. Sales also added that "we continue to attract new stores and improve the quality of our tenant base, accelerating sales per square meter and lowering delinquency. Changes to the corporate structure are directing focus to areas that will drive future growth and efficiency gains. Results are so far encouraging."

Aliansce will hold a live conference call and webcast to discuss 1Q18 results on May 4, 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 is accessible at http://ir.aliansce.com.br

For more information, please contact Daniella Guanabara, Head of Investor Relations, at +55 21 2176-7252 or [email protected]

SOURCE Aliansce Shopping Centers S.A.