BRMALLS Announces 4Q10 Earnings Release

RIO DE JANEIRO, Feb. 24, 2011 /PRNewswire/ -- BRMALLS Participacoes S.A. (Bovespa: BRML3), the largest integrated shopping mall company in Brazil, announces today its results for the fourth quarter of 2010 (4Q10). All the financial and operational information below is in Reais (R$), and comparisons refer to the fourth quarter of 2009 (4Q09), except where otherwise indicated.

Highlights of the 4Q10 Results:

• We are presenting pro-forma numbers for 2010 incorporating the effects of major acquisitions and developments completed during 2010 as if they had occurred earlier in the year.
• Net revenues grew 43.9% to R$185.9 million in 4Q10 and 39.2% to R$546.4 million in 2010.
• Net operating income (NOI) amounted to R$165.5 million in 4Q10, 37.1% more than in 4Q09, and R$485.8 million in 2010, 34.2% up over 2009 with a NOI margin of 89.2% . The 2010 pro-forma NOI reached R$611.5 million and same-property NOI increased 20.6% and 19.1% in 4Q10 and 2010, respectively.
• Adjusted EBITDA totaled R$138.2 million in 4Q10, a year-over-year increase of 25.6%, and R$431.2 million in 2010, 35.0% higher than in 2009. The Company ended the year with an adjusted EBITDA margin of 79.8%. The adjusted pro-forma EBITDA reached R$549.9 million in 2010, with adjusted pro-forma EBITDA margin of 81.5%.
• The fair value adjustment of our investment properties generated a non-cash operating revenue impact of R$556.1 million in 4Q10, versus R$1.2 billion in 2009. On the other hand, the recognition of deferred taxes impacted the result by R$200.5 million in 4Q10 versus R$426.4 million in the previous year.
• Adjusted FFO came to R$71.0 million in 4Q10, versus R$85.3 million in 4Q09, and R$285.0 million in 2010, compared to R$233.0 million in 2009, an increase of 23.0%.
• During the quarter we acquired Shopping Tijuca  and increased our interest in Shopping Campo Grande. In 2010 we acquired an interest in eight malls, investing a total of R$1.3 billion, with a 1st year NOI estimated in R$130 million, including Via Brasil Shopping which opens in 2Q11.
• On January 2011, we increased our stake in Crystal Plaza, Shopping Piracicaba and Shopping Curitiba, which together added 11,200 m² of GLA, for a total of R$108.7 million, and the sale of our stake in the Esplanada Shopping for R$11.8 million, with real and unleveraged IRR of 16.7%. Our share in the mall was 3.4%, or 819.4 m² of GLA.
• We are pleased to announce four new expansions: Shopping Recife, Natal Shopping, Independencia Shopping, and Norteshopping, which will add 14,900 m² of owned GLA, and 25,600 m² of total GLA. These are in addition to our five previously announced expansions.
• We inaugurated Shopping Sete Lagoas and Shopping Granja Vianna in the quarter with great success, adding 34,800 m² of owned GLA.
• Occupancy remained at high levels, averaging 98.3% of total GLA in 4Q10. At year-end, 21 of the 40 malls in which we held an interest achieved occupancy rates of more than 99% of GLA.
• Demand for space in our malls also remained high, contributing to a renewal leasing spread of 27.7% and a new contract leasing spread of 31.9% in 4Q10. In 2010 they moved up to 23.1% and 22.8%, respectively.
• Same-store rent did exceptionally well in the quarter, up 10.1%, and up 9.3% for 2010. Same-store sales rose 11.8% and 14.1% in 4Q10 and 2010, respectively.
• In 2010 our owned GLA and total GLA increased, respectively, 27.0% and 15.6%. We added 89,900 m² of total GLA in acquisitions, 34,800 m² from greenfields and 5,200 m² from expansions, totaling 129,800 m².
• On January 13, 2011 we raised US$230 million through a perpetual bond issue which was priced at par to yield 8.50% per year. The coupon payments were swapped to 99.15% of CDI until the January 2016 call date.

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ABOUT BRMALLS

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 39 malls, comprising 1,173.1 thousand m² of GLA and 603.6 thousand m² of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments.

SOURCE BRMALLS Participacoes S.A.