BRMALLS Announces 4Q11 Earnings Release

USA - English

• Brazil - Português

RIO DE JANEIRO, Feb. 28 2012 /PRNewswire/ --

4Q11 Highlights:

• In the fourth quarter of 2011, net revenues grew by 41.8% to R$263.6 million and by 57.7% to R$861.5 million in 2011.

• Net operating income (NOI) totaled R$241.7 million in 4Q11, 46.0% more than in 4Q10, with a NOI margin of 90.5%. In FY11, NOI came to R$772.6 million, 59.0% up on the previous year.  Same-property NOI climbed by 24.3% year-over-year in the fourth quarter.

• Adjusted EBITDA stood at R$208.3 million in 4Q11, 50.7% more than the R$138.2 million recorded in the same period last year, accompanied by an adjusted EBITDA margin of 79.0%, up by 2.2 p.p. In 2011, adjusted EBITDA amounted to R$684.8 million, 58.8% higher than in 2010.

• Adjusted FFO came to R$104.9 million in 4Q11, a 47.7% improvement over the R$71.0 million posted in 4Q10, and R$331.0 million in FY11, 16.1% up on the R$285.0 million recorded in 2010.

• In the fourth quarter of 2011 the fair value adjustment of our investment properties totaled R$776.2 million, which was booked as other operating revenues.

• Occupancy remained at high levels, averaging 97.6% of total GLA during 4Q11.  Excluding malls acquired and inaugurated over the last 12 months, the occupancy rate was 98.4%.  

• In 4Q11, renewal and new contract leasing spreads averaged 27.3% and 29.4%, respectively.

• Same-store rent increased by 15.2% in 4Q11, the Company's third consecutive quarterly record, and 13.6% in FY11. Same-store sales grew by 8.8% in the fourth quarter and 8.9% in the year as a whole.

• On November 22, we acquired 100% of Shopping Jardim Sul, increasing our owned and total GLA by 30,800 m², with an estimated own stabilized NOI of R$50.1 million.  BRMALLS plans to sell 40% of the mall through the distribution of the shares of an investment fund.

• On November 23, the expansion of Shopping Campo Grande was inaugurated, increasing total GLA by 5,400 m² and owned GLA by 3,700 m², equivalent to a 15.9% increase in the mall's total GLA, with an expected stabilized NOI of R$5.3 million, accompanied by a real unleveraged IRR of 16.5%.

• On November 29, the Company inaugurated Mooca Plaza Shopping, with 100% of GLA leased and 85% of its stores open for business. The property was the largest mall inaugurated in Brazil during 2011 and consolidated BRMALLS as the leading mall operator in the state of São Paulo. This mall will generate an own stabilized NOI of R$35.6 million, with an IRR of 16.1%.

Conference Call:
English:
February 28th, 2012
12:00 p.m. US ET (14h00 Brazil)
Dial-In:
Calls from Brazil: +55 11 3301-3000
Calls from abroad: +1 866-866-2673
Replay: +55 11 3127-4999
Passcode: 83224298

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=828

Portuguese:
February 28th, 2012
11:00 a.m. US ET (13h00 Brazil)

Dial-In: +55 11 3301-3000
Replay: +55 11 3127-4999
Passcode: 49469848

Webcast:
http://www.mediatown.com.br/prnewswire/player/?id=827

ABOUT BRMALLS

BRMALLS is the largest integrated mall company in Brazil, with a portfolio of 46 malls, comprising 1,466.3 thousand m² of GLA and 809.0 thousand m² of owned GLA. BRMALLS is the only shopping mall company in Brazil with nationwide presence and targeting all income segments. 

SOURCE BRMALLS