Multiplan Empreendimentos Imobiliarios S A : announces its 3Q22 earnings results

Multiplan released on Thursday (Nov. 3) its third quarter 2022 (3Q22) earnings results, presenting strong and consistent numbers. In the last 12 months, Multiplan's shopping centers have repeatedly reported new sales records. Following this trend, in 3Q22 tenant sales reached R$4.8 billion, an increase of 28.3% over 3Q21 and 26.1% over 3Q19, a new sales record for a third quarter. All of the Company's malls posted double-digit sales growth over 2021, with sales increasing throughout the quarter.
VillageMall continued to deliver the strong performance registered in the last quarters, once again being one of the sales highlights of the period, reaching R$216.5 million in total sales, an increase of 20.7% over 3Q21 and 52.4% over 3Q19. Driven by the strong sales growth of ShoppingVilaOlímpia (+51.6% vs. 3Q21), the malls located in the state of São Paulo reached sales of R$1.7 billion in 3Q22, a 30.9% increase over 3Q21, also surpassing the 19.9% increase in vehicle flow in the period.
Sales continued strong in 4Q22, with Oct/22¹ reporting results 13.9% higher than a year earlier, leading to accrued growth of 26.2% year-over-year in October 2019.

Same store sales (SSS) ended the quarter up 23.9% over 3Q21, and 23.9% higher than 3Q19. All segments presented double-digit growth over 2021 and were also positive compared to 2019. The Services segment was up 49.8% in the period, mainly benefited by the performance of the satellite stores. The Food segment rose 32.1% compared to 2021, demonstrating the relevance of the more experience-oriented segments in Multiplan's malls.

The positive scenario was further enhanced by the lowest leverage level (net debt/EBTIDA) in ten years, thanks to strong cash generation. As a result, it was possible to pay R$245 million in interest on equity to shareholders in 2022, reinforcing the management of the Company's capital structure.

For the coming years, Multiplan expects to continue growing, developing new projects, expansions and revitalizing existing shopping centers. In addition, the development and management of the mix is a continuous process in which the Company identifies and anticipates consumer trends and needs, to ensure that its shopping centers continue to be a one-stop solution for daily demands, activities and social interactions.

Digital Innovation - 3 million downloads and 3 times more usage of the Multi super application

Close to reaching 3 million total downloads, Multi, the Multiplan shopping mall super app, continues to deliver consistent growth. The app more than doubled the number of unique users and was close to tripling the number of times it was accessed and used in the third quarter of this year, when compared to the same period last year.

The growth in the base and use of the application is the result of the execution of the strategy the Company established: to create a proprietary channel of direct contact with its clients to offer features to assist them in their journey in the malls. This process results in Multiplan getting to know its customers better and, thus, being able to be assertive in showing what each mall has to offer, increasing visitor frequency and consumption, in addition to being able to obtain insights for business decisions, centered on the OmniMIND phygital recommendation engine.
During the third quarter of this year, Multi made more than 1,500 different discount and advantage coupons available to its users, which were booked more than 150,000 times during the quarter. In addition to discount coupons and advantages, Multiplan has also been working to make Multi the gateway to events and attractions in its malls. With virtual queues and scheduled times, clients gain in convenience and experience, while the Company boosts its operational efficiency. During the third quarter of 2022, the Multi app offered 215 different events and attractions that benefited more than 190,000 Multi users and their companions.

Golden Lake

Upon completing one year since the launch of Lake Victoria, the first phase of Golden Lake, the project reached the mark of 54.6% of its private area sold by October 31, 2022. Additionally, construction accelerated in the quarter, evidencing significant progress on some of the project's key milestones, such as Main Lake and the tennis courts.

Main Lake, a navigable water body comprising nearly 5,000 square meters in the central area of the project, is nearly complete. With more than 1 million kg of rocks and 3 million liters of water, the lake will be officially opened on November 5.

Net Profit, Gross Revenue, FFO, Rental Revenue, NOI, and EBITDA.

Net income grew by 87.2% vs. 3Q21 and 53.1% vs. 3Q19, reaching R$186.1 million in 3Q22. The R$86.7 million year-on-year increase in net income was mainly driven by: the increase in net revenues for the quarter (+41.4% vs. 3Q21 and +38.6% vs. 3Q19); and the 53.4% decrease in the income tax and social contribution line, mainly due to the approval of R$100 million in interest on equity in September 2022.

Multiplan's total tenant lease revenue (sum of malls and corporate towers) reached R$378.8 million in 3Q22, the second highest in the Company's history and a record for a third quarter. When compared to 3Q21, lease revenue increased 25.4%. Mall rental revenue, responsible for 96.4% of total rental revenue in 3Q22, totaled R$365.0 million in the quarter, up 25.6% vs. 3Q21 and 50.3% vs. 3Q19.

Gross revenue once again hit a record high for the Company, registering R$488.3 million in 3Q22 (+38.5% vs. 3Q21 and +35.0% vs. 3Q19), mainly due to the R$111.8 million surge in rental revenue in the quarter (+25.4% vs. 3Q21 and +41.9% vs. 3Q19), which represented 77.6% of total gross revenue in 3Q22.

Operating Cash Flow (FFO) totaled R$246.8 million in 3Q22, the highest FFO recorded by Multiplan in a third quarter (disregarding 3Q20, which benefited from the sale of Diamond Tower). The amount showed an increase of 39.6% vs. 3Q21 and 43.2% vs. 3Q19. Sep/22 FFO (12M) reached R$997.3 million, an increase of 69.0% vs. Sep/21 (12M) and 48.8% greater than Sep/19 (12M).

Net Operating Income (NOI) reached R$386.2 million in 3Q22, a record for a third quarter, representing growth of 34.5% vs. 3Q21 and 29.8% over 3Q19. The record result was positively impacted by strong operating revenues of R$438.8 million in the quarter. Last 12-month NOI reached R$1,484.2 million in Sep/22, 50.5% higher than 2021 and 25.1% higher than 2019.

EBITDA reached R$322.6 million in 3Q22, a record for a third quarter in Multiplan's history (disregarding the sale of Diamond Tower, part of Morumbi Corporate, in 3Q20), up 49.3% vs. 3Q21 and 37.2% vs. 3Q19. The 34.4% increase in operating income positively boosted the EBITDA result. In 9M22, EBITDA reached R$905.6 million, an increase of 72.3% vs. 9M21 and 33.2% vs. 9M19. The strong result was especially driven by the solid increase in lease revenue.

ESG: an approach that adds value

Multiplan is constantly implementing initiatives that optimize efficiency and have a positive impact on the environment and society. With this in mind, in 3Q22 RibeirãoShopping in Ribeirão Preto (SP) started the Multi Sustentável project, encouraging sustainable development in the shopping center and preserving the environment, with the aim of making the most of available resources. Another noteworthy initiative is the electric vehicle charging stations ("electroposts) project. The Company has 100 stations, available for use free of charge, that reduce the cost of mobility of customers with electric cars. In addition, the Company's internet application, Multi, launched a new feature for MorumbiShopping's frequenters, allowing them to start their recharging procedure through the application.

ParkJacarepaguá, in Rio de Janeiro (RJ), Multiplan's 20th and most sustainable shopping center, whose design concept was the "shopping center of the future" using state-of-the-art technology to increase its operational efficiency and reduce its carbon footprint, was among the finalists in two categories - Best Shopping Center Project and ESG Project - in the 2022 edition of the GRI Awards.

For more information click here to view the Earnings Report presentation´s PDF.

¹Preliminary sales figures for October 2022. October sales exclude Parque Shopping Maceió.