BRMALLS Announces 3Q11 Earnings Release

USA - English

• Brazil - Português

RIO DE JANEIRO, Oct. 28, 2011 /PRNewswire/ -- BRMALLS (BM&FBovespa: BRML3):

3Q11 Highlights:

• In the third quarter of 2011, net revenues increased 67.3%, totaling R$219.3 million for the quarter and R$597.8 million for the year, representing an increase of 65.8% over the same period of last year.

• Net operating income (NOI) totaled R$196.4 million in 3Q11, an increase of 66.5% over 3Q10, an NOI margin of 90.2% in the quarter. Year-to-date NOI was R$530.8 million, 65.7% higher than in the same period in 2010. Same-property NOI grew 20.4% in 3Q11 compared to 3Q10.

• Adjusted EBITDA reached to R$175.5 million, an increase of 70.8% over the adjusted EBITDA in 3Q10 of R$102.7 million, for an adjusted EBITDA margin of 80.0%. Year-to-date adjusted EBITDA amounted to R$476.6 million, 62.8% higher than in the same period in 2010.

• Adjusted FFO in 3Q11 amounted to R$93.5 million, a 26.5% increase over the R$73.9 million in 3Q10. Year-to-date adjusted FFO reached R$235.5 million over the R$215.1 million in 9M10.

• The exchange rate variation of 20.2%, which closed on September 30th at R$1.8544, had a negative impact of R$113.0 million in our financial results. This effect occurred due to the variation of the principal on our perpetual debt, which is a non-cash effect. We had a positive impact on the mark to market effect of our swaps, contributing with R$64.0 million on our net financial revenue.

• Our malls continue to achieve a high occupancy rate, averaging 97.6% of total GLA occupied in 3Q11. Excluding the malls that were acquired or opened in the last 12 months, the occupancy rates was 98.2% of GLA.

• Renewal leasing spreads reached 29.8% and new contract leasing spreads were 17.1%, reflecting the high demand from tenants for new spaces.

• Record of same-store rent, up 14.3%, while same-store sales went up 8.3% in the quarter, showing a healthy performance of our tenants, however impacted by a higher SSS base in 3Q10 of 16.6%.

• BRMALLS was included in the Bovespa Index (Ibovespa) portfolio with a weight of 0.799%, making it the 38th largest participant. Due to the strong liquidity of its shares over the last 12 months, it was also included in the Brazil Index 50 (IBrX-50), while its social responsibility programs and transparent environmental practices led to its inclusion in the Carbon Efficient Index (ICO2).

• On August 5, we acquired the Catuai Portfolio, which includes the Catuai Shopping Londrina and Catuai Shopping Maringa malls, located in Paraná state, adding 63.7 thousand m2 to owned GLA and estimated NOI of R$45.2 million in the first year. The portfolio also included two greenfield projects in the same state: Londrina Norte Shopping and Catuai Shopping Cascavel.

• We increased our interest in Shopping Piracicaba by acquiring an additional 2.5% stake, which should add R$0.6 million in NOI for the Company in the following 12 months.

• We announced two other greenfield projects in the quarter: Shopping Vila Velha, with total estimated total GLA of 64.2 thousand m2 in the first phase, to be expanded to 108.0 thousand m2; and the Contagem project, with total GLA of 35.3 thousand m2 (first phase), expandable to 45.0 thousand m2.

• BRMALLS leased 224 contracts or a total GLA of 27.8 thousand m2 on development projects, an increase of 119.6% and 167.9%, respectively in to 3Q10. Our Greenfield projects leased 164 contracts or a total GLA of 20.1 thousand m2, an increase of 88.5% and 145.6% respectively. Our expansions leased 60 contracts or a total GLA of 7.6 thousand m2, an increase of 300.0% and 251.9% respectively.

Conference Call:

English:
October 31st, 2011 - Monday
09:00 am US ET (11h00 Brazil)

Dial-In:
Calls from Brazil: +55 11 3301-3000
Calls from abroad: +1 866-866-2673

Replay: +55 11 3127-4999
Passcode: 52289940

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=732  

Portuguese:
October 31st, 2011 - Monday
08:00 am US ET (10h00 Brazil)

Dial-In: +55 11 3301-3000

Replay: +55 11 3127-4999
Passcode: 40406293

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=731

ABOUT BRMALLS

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 43 malls, comprising 1,355.4 thousand m2 of GLA and 738.5 thousand m2 of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.

SOURCE BRMALLS