Multiplan Empreendimentos Imobiliarios S A : announces 1st quarter 2023 results

With record operating and financial indicators, the Company reported strong growth, with sales reaching R$4.6 billion

Rio de Janeiro, April 27, 2023 - Multiplan Empreendimentos Imobiliários announced on April 27 its results for the first quarter of 2023 (1Q23), setting records in its main operating and financial indicators. Highlights include tenants' sales, which totaled R$4.6 billion, the highest amount ever recorded in a first quarter and the third highest mark in the Company's history, reflecting double-digit growth (16%) compared to 1Q22.

Eighteen of Multiplan's twenty malls also grew their sales in double digits in this first quarter, with emphasis on ShoppingVilaOlímpia (+35.1%). The shopping centers in the state of São Paulo presented an increase of 18.5% and the ones in the South region, 16.7%, also surpassing the average increase of the company's portfolio.

The company's gross revenue reached R$498.6 million, a growth of 9.9% compared to the same period of the previous year. This increase is mainly due to the rise in rental and parking revenues. Multiplan's total rental revenues, which include shopping centers and corporate towers, grew 8.8% over 1Q22, reaching R$384.4 million, a record for a first quarter and the third highest in the Company's history. Parking revenue, meanwhile, accounted for 12.8% of the total (R$63.8 million), driven by adjustments in tariffs and by the increase in the flow of vehicles, exceeding the results of 1Q22 by 30.2%.

EBITDA totaled R$357.7 million, a record for a first quarter, growing 21.1%. The strong result was also driven by solid growth in rental revenues during the period. The record indicator contributed to a reduction in the Net Debt/EBITDA ratio to 1.54x at the end of March this year, the lowest level registered in ten years.

Following the same trend, Operating Cash Flow (FFO) was R$261.0 million, a 23.9% increase over 1Q22 and a record for a first quarter.

Net income advanced 20.8% in 1Q23 over 1Q22, totaling R$207.2 million, the highest amount recorded for a first quarter, driven mainly by the 12.3% growth in net revenue and the 10.5% reduction in the depreciation and amortization line. In the last 12 months, net income grew 39.2% year-on-year (12M), reaching R$804.9 million and resulting in a five-year CAGR of 14.6%.

In this period, the company invested R$215.5 million (Capex), with R$170.0 million earmarked for the acquisition of a 24.95% stake in DiamondMall. Additionally, it invested R$22.6 million in revitalization, IT, digital innovation and others, with most of it destined to improvements in shopping centers, such as NewYorkCityCenter, Pátio Savassi, MorumbiShopping and DiamondMall. Another R$14.1 million was invested in shopping center expansions, including DiamondMall and ParkShoppingBarigüi.

In addition to the investments, Multiplan decided to distribute R$75 million to shareholders this quarter via interest on shareholders' equity.

Digital Innovation

The Multi superapp continues to grow, reaching 4 million accumulated downloads and very positive user evaluations. The company also launched a new service called Multi Access, which allows entry into the parking lots by reading signs previously registered on Multi. The service is currently active in the AnáliaFranco and ParkJacarepaguá shopping centers and is expected to expand to all the malls.

ESG

Focusing on the best ESG practices, Multiplan expanded the Corporate Governance area, aiming to strengthen the internal audit pillar and reinforce pragmatic, engaged and transparent management. This initiative demonstrates the company's concern with maintaining the highest standards of governance and sustainability in its operations.

Multiplan's 1Q23 earnings report is available at: Home - Multiplan RI