Apre call 1 q11 engfinal_valida
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1) The company's net revenue in 1Q11 totaled R$179.1 million, up 68.4% from 1Q10. NOI reached R$158.6 million, up 70.5% from 1Q10. Adjusted EBITDA increased 58.6% to R$140.6 million. 2) Same store sales growth remained strong, particularly for leisure and satellite stores which posted double digit growth. Occupancy rates increased to 98.1% while same store rent growth was 10.1%. 3) The company acquired interests in 3 malls representing R$108.7 million in capex with an average IRR of 13.7%. Actual NO
Apre call 1 q11 engfinal_valida
- 2. | Net Revenue Our Net Revenue totaled R$179.1 million in 1Q11, 68.4% up over 1Q10 Net Revenues Growth (R$ thousand) 68.4% Gross Revenues Breakdown 1Q11 Rent 0.9% 179,083 Parking 1.3% 56.3% Services 3.9% 71.5% Base Rent Key Money 8.5% Overage Rent 106,325 Others Mall & Merchandising Transfer Fee 13.9% Base Rent 8.8% 6.4% Overage Rent Mall & Merchandising 1Q10 1Q11 2
- 3. | NOI NOI reached R$158.6 million in the quarter, 70.5% up over 1Q10 NOI Growth (R$ thousand) Same Mall NOI Growth (R$ thousand) 88.8% 89.5% * 26.0% 70.5% 111,552 158,635 88,539 93,021 1Q10 1Q11 1Q10 1Q11 Growth in managed malls (89.2% of our NOI) registered 27.5% •Adjusted by the revenue and cost of the condominium of Center Shopping Uberlândia 3
- 4. | EBITDA and FFO Adjusted EBITDA increased 58.6%, totaling R$140.6 million Net Income Growth (R$ thousand) 36.1% 57,224 Adjusted EBITDA Growth (R$ thousand) 42,052 58.6% 140,602 88,638 1Q10 1Q11 FFO Growth (R$ thousand) 1Q10 1Q11 33.3% 60,077 45,055 1Q10 1Q11 4
- 5. | Sales Leisure and satellite stores continue to post SSS growth above double digits Same Store Sales per Segment (1Q11 versus 1Q10) 18.5% 11.6% 8.7% 6.7% 0.9% Anchors Megastore Satellites Leisure Average Same Store Sales Growth (%) 16.2% 16.6% 12.7% 13.2% 10.7% 10.8% 11.0% 11.8% 8.8% 8.7% 6.4% 7.0% 5.1% 3.5% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 2009 1Q10 2Q10 3Q10 4Q10 1Q11 5
- 6. | Rent Consistent growth in occupancy rate and resilient business protected against inflation Occupancy Rate (%) 98.1% 97.9% 96.9% 96.0% 94.9% 1Q07 1Q08 1Q09 1Q10 1Q11 Same Store Rent Growth (%) 13.4% 12.4% 12.3% 12.0% 9.5% 9.9% 10.1% 10.1% 9.7% 8.3% 8.8% 8.6% 8.0% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 6
- 7. | Leasing Activities Leasing Spread for Renewals reached its highest historical level Average Rent per m² Renewals Leasing Spread (%) (Current Portfolio versus New Contracts) 27.7% 28.1% 22.9% 22.3% 22.5% 17.7% 18.3% 13.9% 14.7% 101.5 8.1% 82.6 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Current Portf olio Negotiated Contracts 7
- 8. | Acquisitions We concluded in 1Q11 increases in ownership in 3 malls, representing a total capex of R$108.7 million and a real and unleveraged average IRR of 13.7%. Owned GLA from Acquisitions in 1Q11 (m²) 29,512 11,346 8,617 9,549 Shopping Shopping Shopping Total Crystal Piracicaba Curitiba Actual NOI in 1Q11 from acquired malls outperformed the projected NOI by 27.2%. NOI of Acquisitions (R$ thousand) 27.2% 79,356 62,378 Projected NOI Actual NOI 1Q11 1Q11 8
- 9. | Greenfield Projects –Mooca Plaza Shopping Mooca Plaza Shopping •opening in the fourth quarter of 2011; •stabilized NOI of R$33.3 million; •approximately 79.7% of the GLA already leased; •project on schedule, with approximately 40% of construction carried out; •Total GLA (m²): 41,963 •Owned GLA (m²): 25,178 •BRMALLS Stabilized NOI: R$33.3 million •IRR: 18.3% (real and unleveraged) 9
- 10. | Greenfield Projects – Other Developments Shopping Estação BH •Total GLA (m²): 36,317 •Owned GLA (m²): 21,790 • % Developed: 37.0% • Leasing Status: 66.4% Owned GLA Added by Greenfield Projects •Opening: 1Q12 10.8% 72,730 744,846 672,116 São Bernardo Current Owned Owned GLA - Total Owned GLA •Total GLA (m²): 42,338 GLA Developments •Owned GLA (m²): 25,403 • % Developed: 17.3% •Opening: 4Q12 10
- 11. | Summary of Greenfield and Expansion projects We expect our projects under development to add 188.7k m² of total GLA by 2013 Total GLA of Greenfield and Expansions ('000 m²) Already Developled 161.2 Pipeline 188.7 15% increase in Total GLA 42.7 349.9 20.6 131.0 5.5 78.0 15.1 41.9 18.8 29.2 218.9 28.2 46.3 23.5 2008 2009 2010 2011YTD 2011 pipeline 2012 2013 Total 11
- 12. | Cash and Debt Position BRMALLS ended 1Q11 with a cash position of R$725.0 million, a 128.2% increase over 4Q10 Cash and Debt Position (R$ million) 128.2% vs 4Q10 Debt Amortization Schedule (R$ million) R$ 725.00 67.6% vs 4Q10 59.1% vs 4Q10 861 R$ (2,623.80) R$ (1,898.80) 237 239 231 231 127 150 151 142 114 94 76 69 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash Gross Debt Net Debt onwards 12
- 13. | Capital Markets Stock Performance •Daily traded volume averaged R$27.9 million in 1Q11 •The number of trades averaged 2,518, an increase of 71.6% compared to 1Q10 •Since the IPO in 2007, BRMALLS share has increased 120.8%, compared to a 41.8% increase of the Ibovespa index Stock split 200 45 Millions 180 40 160 35 140 30 120 25 100 20 80 15 60 40 10 20 5 0 0 Aug 09 Oct 09 Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Feb 11 Trading Volume (30 days) BRML3 Ibovespa 13
- 14. | Recent Events • Last week we added 68k m² of owned GLA through the: • Opening of Via Brasil Shopping located in Irajá (RJ) on April 27 • Opening of the expansion of Shopping Tamboré located in Barueri (SP) on April 28 • Acquisition of Shopping Paralela located in Salvador (BA) on April 29 • On April 29 we filed with CVM a public offering in Brazil and a private placement elsewhere of common shares of R$598.4 million* (approximately $381 million**) *Based on closing share price of R$17.60, as of April 27th, 2011. ** Based on FX rate of R$1.57 / US$ , as of April 27th, 2011. 14
- 15. | Inauguration – Via Brasil Shopping Via Brasil Shopping •Acquisition concluded on May 2010, and inaugurated on April 27, 2011 •The mall opens with 95% of its GLA leased; •In February 2011 BRMALLS became responsible for leasing, elevating total GLA leased from 82% to 95% in only 2 months • Total capex of R$102.9 million, fully disbursed in 2010 •stabilized NOI of R$13.9 million to BRMALLS Total GLA: 30,680 m² Owned GLA: 15,033 m² Stores: 189 Parking spots: 2,850 BRMALLS Stabilized NOI: R$13.9 milhões IRR (real and unleveraged): 14.7% 15
- 16. | Inauguration – Shopping Tamboré Expansion Shopping Tamboré Expansion • The project was initiated in October 2009 and opened according to schedule on April, 28th • stabilized NOI of R$20.4 million; • 98.5% of the GLA was leased on the opening date (100% considering signed contracts), above our initial estimate of 94.3%; • Approximately 80% of the stores were open on the inauguration • With the expansion, the stabilized NOI should be greater than R$60 million. •Owned GLA: 15,140 m² •Number of stores expansion: 84 •Parking spots: 832 •Stabilized NOI BRMALLS: R$ 20.4 million •IRR (real and unleveraged): 16.8% •Cash on Cash (real and unleveraged): 18.5% •Total Capex: R$124.0 million 16
- 17. | Subsequent Acquisiton – Shopping Center Paralela Shopping Center Paralela • On April 29, 2011 BRMALLS acquired a 95% interest in Shopping Paralela for R$237.5 million, of which 40% were paid upfront and the rest in 4 annual installments, additionally R$47.5 million for the parking operation • Opened only two years ago, the mall is still undergoing a consolidation phase due to its recent openning, resulting in a vacancy of 8.5% •The implementation of BRMALLS management practices shall bring substantial improvements related to leasing, tenant mix and vacancy reduction •NOI for the next 12 months of R$22.2 million for BRMALLS •Present value of the acquisition price is equivalent to R$5,778.8/m², in line with replacement cost and the average investment of our greenfields Total GLA: 39,800 m² Owned GLA: 37,800 m² Number of stores: 330 Parking spots: 2,400 Total Capex: R$285.0 million Entry cap rate: 10,1% IRR (real and unleveraged): 15.4% 17