ALIANSCE APRESENTA OS SEUS RESULTADOS E DESTAQUES
Transcription
ALIANSCE APRESENTA OS SEUS RESULTADOS E DESTAQUES
1Q16 RESULTS Renato Rique CEO Renato Botelho CFO Eduardo Prado IRO Mauro Junqueira CIO Samantha Senna IR Specialist Yan Oliveira IR Analyst Phone: +55 (21) 2176-7272 Email: [email protected] ri.aliansce.com.br CONFERENCE CALL IN ENGLISH May 10, 2016 – Tuesday 11:00 a.m. (US EDT) / 12:00 p.m. (BR) Phone: +1 516 300-1066 Code: Aliansce Replay available for 7 days: +55 (11) 3127-4999 Password: 79480705 Aliansce presents its 1Q16 Results and Financial and Operating Highlights Rio de Janeiro, May 9, 2016 – Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of Brazil’s largest shopping mall owners, announces today its results for the first quarter of 2016 (1Q16). The Company’s managerial financial information are presented on a consolidated basis and in thousands of Brazilian Reais (R$), in accordance with accounting practices adopted in Brazil, pursuant to CPCs issued and approved by the Brazilian Securities and Exchange Commission (CVM), as well as with the International Financial Reporting Standards (IFRS), except with regards to the effects of adopting the pronouncements CPC 19 (R2) and CPC 18 (R2) – IFRS 10 and 11. The managerial financial information reflect the Company’s ownership interest in each shopping mall, except for Boulevard Belém and Boulevard Belo Horizonte, which are 100% consolidated, in line with the consolidated financial statements. In response to the Circular Letter CVM/SNC/SEP No. 01/2016, the sale of Boulevard Corporate Tower – a commercial tower next to the Boulevard Belo Horizonte Mall –, formalized in June 2014, was reclassified for accounting purposes as “Liabilities related to Investment Properties - Commercial Tower,” in contrast to “Investment Properties – Commercial Tower” (Note 5 to the Company’s consolidated financial statements), although formally and legally it was a sale (“Reclassification”). Therefore, the consolidated financial statements of March 31, 2016 have been adjusted to consider the transaction as a liability, and the consolidated financial statements of March 31, 2015 have been similarly adjusted and are being restated, affecting the balance sheet and the statements of income, comprehensive result and consolidated cash flows. The aforementioned Reclassification notwithstanding, with a view to presenting information that is comparable to that disclosed by the Company in previous years, thus better suited to the understanding of the Company and its financial situation, the managerial financial information presented below does not reflect this Reclassification. For a review of the reconciliation of such managerial financial information and the Company’s consolidated financial statements, as well as other relevant information, please refer to the comments and tables in the “Appendices” section. The Company’s managerial financial information and other non-accounting information presented below have not been reviewed by independent auditors. For a review of the Company’s accounting and audited information, please refer to the Company’s consolidated financial statements of March 31, 2016 and March 31, 2015. 1Q16 highlights and recent events The financial information below is managerial in nature and based on the Company’s consolidated financial statements. The Company’s net revenue, excluding the sale and purchase of interests in 2015*, increased 10.7%. Considering the effect of changes in ownership interest over the past 12 months, the NOI grew 6.7% and adjusted EBITDA increased 7.5%. Same store rents (SSR) saw a 7.1% growth in the quarter. This is the biggest gain since 4Q14. In 15 of the 19 malls in the Company’s portfolio SSR growth was higher in 1Q16 than in 4Q15. SSR growth for the Company’s top 10 malls was 7.3% in 1Q16. Administrative and general expenses saw a reduction for the second consecutive quarter. Expenses decreased by 1.7% in 1Q16. The main factors were the reduction in personnel and rental expenses. *In 2015, ownership interest sold in Via Parque Shopping and acquired of stake in Shopping da Bahia. Unless stated otherwise, all operating and financial information is expressed in thousands of Brazilian reais and based on consolidated information, pursuant to Brazilian Corporate Law and International Financial Reporting Standards (IFRS), in accordance with the pronouncements of the Accounting Pronouncement Committee (CPC), as approved by the Brazilian Securities and Exchange Commission (CVM). Sales per sqm dropped 1.7% when compared to 1Q15. Sales in Aliansce’s malls reached R$1.8 billion in 1Q16, a 2.6% drop when compared to 1Q15. Same area sales (SAS) and same store sales (SSS) decreased 3.9% and 4.8% in 1Q16. All sales indicators performed better in relation to the variation in 3Q15 and 4Q15. The portfolio’s occupancy rate reached 96.1% in 1Q16. The reduction of 1.1 p.p. compared to 4Q15 is due mostly to the departure of 3 anchor stores. The Company has approved a commercial proposal for the area previously occupied by C&A at Via Parque Shopping, which will increase the portfolio's occupancy rate to 96.5%. The Company’s top 10 assets reached an occupancy rate of 97.6% in 1Q16. In 1Q16, the net late payments were 6.0% versus 5.3% in 1Q15. Net late payments for the 1st quarter is usually higher than the annual average in view of the extra costs incurred by tenants at the beginning of each year. The occupancy cost of the tenants was 11.4% in 1Q16. The sales volume in the first quarter is typically smaller than the average for the year, impacting the occupancy cost. In the last 12 months, total occupancy cost was 10.4%. The occupancy cost of satellite stores reached 15.1% in 1Q16, and 13.9% in the last 12 months, below sector’s average. The Company's gross CAPEX was R$20.5 million in 1Q16 and net investments came to R$20.3 million in the quarter. Long-term debt linked to low volatility indexes with cost below the Selic rate. The Company’s average cost of debt remained at 14.0% p.a. at the end of 1Q16. Approximately 87.4% of the Company’s gross debt is long-term and 79.6% of the total is indexed to TR (reference rate), TJLP (long-term interest rate) and fixed interest rates. Since March 2013, the Selic rate climbed 7.0 p.p., and the average cost of our debt rose 2.9 p.p.. Debt rollover with cost reduction and maturity extension. On April 13, 2016, the Company prepaid a loan with a balance of R$52.4 million, cost of IPCA plus 9.74% p.a. and maturity in 2019. On the same date, the Company issued a simple debenture in the amount of R$75.0 million, at a cost of CDI plus 1.7% p.a. and a maturity of 12 years, with a principal amount grace period of 12 months. The rights and credits arising from the debenture serve as backing for the issaunce of CRI (real estate receivables notes), according to the Brazilian Securities and Exchange Comission (CVM) Instruction No. 476/2009. On April 20, 2016, Shopping da Bahia opened its 20th expansion. The new area comprises a Pão de Açúcar supermarket of 1.2 thousand sqm, plus a Kalunga megastore and 400 sqm of satellite stores focused on the service segment. Around 96.4% of the expansion area have already been leased. According to the Company’s estimates, the stabilized cap rate of expansion is 18.1% p.a.. On April 29, 2016, the Annual Shareholders’ Meeting approved the distribution of dividends in the amount of R$17.7 million to shareholders. On December 22, 2015, the Board of Directors approved the distribution of R$13,6 million in interest on equity (net of income tax). The table below shows the Company’s main operating and managerial financial indicators in 1Q16, as well as their changes from the same period in the previous year. Main indicators 1Q16 Financial Performance - Managerial Information 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Gross revenue 146,012 135,083 8.1% Net revenue 131,984 123,628 6.8% NOI 109,259 84.4% 104,821 89.2% -4.7 p.p. Margin % NOI/sqm³ 4.2% 86.7 79.7 8.7% 86,821 65.8% 83,807 67.8% -2.0 p.p. 1,280 1.0% 1,787 1.5% -0.5 p.p. (4,815) -3.8% 2,050 1.7% -5.5 p.p. 12,865 10.2% 19,371 16.3% -6.2 p.p. Total rent/sqm² ³ 82.5 73.9 11.6% SAR/sqm (same area rent)² 70.8 66.4 6.6% SSR/sqm (same store rent)² 70.2 65.5 7.1% Adjusted EBITDA¹ Margin % Net Income Margin % Adjusted Net Income¹ Margin % Adjusted FFO¹ Margin % 3.6% -28.4% n/a -33.6% Operating Performance - Managerial Information Sales 1,847,743 1,897,776 -2.6% Sales/sqm² 1,059.9 1,078.6 -1.7% SAS/sqm (same area sales)² 1,044.9 1,086.7 -3.9% SSS/sqm (same store sales)² 1,041.0 1,093.2 -4.8% Occupancy costs (% of sales) 11.4% 10.6% 0.7 p.p. Net Late Payments 6.2% 5.3% 0.8 p.p. Occupancy Rate 96.1% 97.4% -1.2 p.p. Total GLA (sqm) 689,977 675,578 2.1% Owned GLA (sqm) 433,741 439,378 -1.3% GLA tha reported sales (sqm)² 376,516 374,029 0.7% ¹Adjus ted by Non-recurri ng events a nd Non-ca s h effects ² Monthl y a vera ge ³ Incl udes s tra i ght l i ne rent Impact of changes in divestment of ownership in 2015 Over the course of 2015, the Company sold ownership stake in Via Parque Shopping, and acquired a stake in Shopping da Bahia. The table below summarizes the changes in the most significant income statement items, while adjusting the 2015 figures to reflect the divestment of ownership in that period. Main indicators 1Q16 1Q15 Pro Forma 1Q16/1Q15 Δ% Financial Performance - Managerial Information Gros s revenue 146,012 131,605 10.9% Net revenue 131,984 119,254 10.7% NOI 109,259 84.4% 102,399 89.6% -5.2 p.p. 86,821 65.8% 80,795 67.8% -2.0 p.p. 12,865 10.2% 17,126 15.0% -4.8 p.p. Ma rgi n % Adjus ted EBITDA¹ Ma rgi n % Adjus ted FFO¹ Ma rgi n % ¹Adjusted by non-recurring effects and non-cash items 6.7% 7.5% -24.9% Our Portfolio Owned GLA per Group Aliansce holds ownership interest and/or manages malls in all Brazilian regions, covering all major income segments in the country. In order to facilitate an understanding of the Company’s growth in the coming years, the portfolio was divided into two groups according to the length of operation or current phase of each asset: Mature Assets: Mature malls that have been in operation for more than five years. New Generation of Assets: Malls in the maturation phase that have been in operation for less than five years, or which have undergone recent renovation. 1Q15 1Q16 66.9% 72.4% 27.6% Mature Assets 33.1% New Generation Mature Assets (Malls with more than 5 years of operating history) Shopping da Bahia Caxias Shopping Shopping Taboão Boulevard Shopping Brasília Shopping Grande Rio Via Parque Shopping Shopping Santa Úrsula Boulevard Shopping Belém Carioca Shopping Shopping West Plaza Bangu Shopping Santana Parque Shopping Boulevard Shopping Belo Horizonte New Generation Assets (Malls with less than 5 years of operating history) Boulevard Shopping Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Parque Shopping Maceió Shopping Parangaba Third Party Malls (Managed by Aliansce) Shopping Leblon Boulevard Shopping Feira de Santana Pátio Alcântara Continental Shopping Passeio Shopping Santa Cruz Shopping São Gonçalo Shopping Shopping Praça Nova Santa Maria* Floripa Shopping Boulevard Shopping Vitória da Conquista* Indicates Aliansce’s presence *Under Development In 1Q16, the Company held ownership in 19 malls in operation, totaling 433.7 thousand sqm of owned GLA. The Company also offers planning, managing and leasing services for 10 malls owned by third parties, which had a combined GLA of 209.4 sqm at the end of 1Q16. The table below shows the Company's portfolio in 1Q16 and the occupancy rate at the end of the quarter. Operating Malls Mature Assets - more than 5 years of operating history Shopping da Bahia Shopping Taboão Via Parque Shopping Shopping Grande Rio Carioca Shopping Shopping West Plaza Bangu Shopping Santana Parque Shopping Caxias Shopping Boulevard Shopping Brasília Boulevard Shopping Belém Boulevard Shopping Belo Horizonte Shopping Santa Úrsula C&A Stores New Generation Assets - less than 5 years of operating history Boulevard Shopping Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Parque Shopping Maceió Shopping Parangaba Total Portfolio State BA SP RJ RJ RJ SP RJ SP RJ DF PA MG SP n/a RJ PA ES SP AL CE % Aliansce GLA (sqm) 62.84% 69.04% 78.00% 38.91% 25.00% 100.00% 25.00% 100.00% 33.40% 89.00% 50.00% 75.00% 70.00% 37.50% 69.05% 62.94% 100.00% 50.00% 50.00% 100.00% 50.00% 40.00% 62.86% 499,608 64,111 36,547 57,255 38,042 28,470 33,870 58,347 26,581 25,558 17,510 39,406 41,458 23,057 9,395 190,368 25,033 29,968 34,997 30,660 37,498 32,212 689,977 Owned GLA Occupancy (sqm) rate (%) 313,931 97.0% 44,262 98.2% 28,506 97.5% 22,278 94.3% 9,510 98.0% 28,470 96.7% 8,468 96.0% 58,347 98.1% 8,878 98.5% 22,747 97.5% 8,755 98.9% 29,555 97.0% 29,021 98.4% 8,646 90.5% 6,488 100.0% 119,810 93.7% 25,033 96.9% 14,984 97.6% 17,499 89.7% 30,660 88.4% 18,749 96.7% 12,885 93.4% 433,741 96.1% Services rendered M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC n/a M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC M / L / SSC (M) Management | (L) Leasing | (SSC) Shared Services Center The decrease in occupancy rate of Via Parque Shopping and Boulevard Shopping Nações Bauru is explained by the departure of anchor store C&A. The decrease in occupancy rate of Boulevard Shopping Vila Velha reflects the departure of anchor store Dadalto. Excluding these three anchor stores, the Company’s occupancy rate went from 97.2% in 4Q15 to 96.9% in 1Q16. Occupancy Rate 97.2% 96.5%* 96.1% The Company has approved a commercial proposal for the area previously occupied by C&A at Via Parque Shopping, which will increase the portfolio's occupancy rate to 96.5%. The 10 largest malls in the portfolio – which accounted for 82.4 % of the Company’s NOI – recorded an occupancy rate of 97.6% at the end of 1Q16. 4Q15 1Q16 *Incl udes a pproved proposal a t Via Parque Shopping Financial Highlights Gross Revenue Revenue Breakdown - 1Q16 Gross revenue increased by 8.1% in 1Q16, for a total of R$146.0 million. Excluding the divestment and acquisition of interests during 2015, the Company’s gross revenue grew by 10.9% in 1Q16. Services rendered 8.7% Minimum rent 83.1% Rent 71.4% Parking 17.5% The Company’s parking revenue was once again the highlight for the period. The growth in the flow of vehicles aligned with a higher average ticket in the period led to an increase in revenue in 14 of the 17 malls that charged for this service in 1Q15. Parking revenue totaled R$25.5 million in 1Q16, a 18.5% increase from 1Q15. Key Money 2.4% Stands and Kiosks 10.1% Overage rent 6.9% In 1Q16, straight line rent continued to be impacted by the correction of the linearization calculation of the rental revenue from some of the leasing contracts. Excluding straight-line rent, the Company’s gross revenues grew 7.5% in 1Q16. Managerial Financial Information Revenues per type 1Q16 Managerial Financial Information Revenues per mall 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Rentals Key Money Parking Transfer fee Services rendered Straight line rent adjustment - CPC 06 Total 1Q15 96,989 3,567 25,483 59 12,663 7,251 94,663 4,138 21,510 168 12,078 2,525 146,012 135,083 1Q16 1Q15 2.5% -13.8% 18.5% -64.6% 4.9% 187.1% 8.1% 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Shopping da Bahia Shopping Taboão Via Parque Shopping Shopping Grande Rio Carioca Shopping Bangu Shopping Santana Parque Shopping Shopping Santa Úrsula Caxias Shopping Boulevard Shopping Brasília Boulevard Shopping Belém Boulevard Shopping Belo Horizonte Boulevard Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Shopping West Plaza Shopping Parangaba Parque Shopping Maceió C&A Stores Services Straight line rent adjustment - CPC 06 21,024 8,828 5,426 3,781 9,895 14,568 2,521 1,156 6,148 2,475 15,568 10,693 5,219 3,189 1,635 4,122 1,742 2,671 4,468 970 12,663 7,251 17,730 8,468 9,270 3,534 7,841 13,786 2,323 1,187 5,923 2,227 14,855 10,124 4,950 3,220 1,628 4,119 1,899 2,454 4,052 889 12,078 2,525 18.6% 4.2% -41.5% 7.0% 26.2% 5.7% 8.5% -2.6% 3.8% 11.2% 4.8% 5.6% 5.4% -1.0% 0.5% 0.1% -8.3% 8.8% 10.3% 9.1% 4.9% 187.1% Total 146,012 135,083 8.1% Revenues - Same Malls* 146,012 131,605 10.9% *Include effect of sale and acquisition of interest during 2015 Rental Revenue The Company’s rental revenue increased by 2.5% in 1Q16 compared to 1Q15. Adjusting the 1Q15 figures to reflect the Company’s current ownership stake in Via Parque Shopping and Shopping da Bahia, the rental revenue was 5.2% higher than that observed in the 1Q15. In 11 of the 19 malls in the portfolio, rental revenue growth in 1Q16 was higher than in the last quarter of 2015. Among the highlights, the performance of Carioca Shopping is explained largely by the success of the expansion opened in 2Q15. Bangu Shopping recorded a 12.9% growth in minimum rent in the quarter. Managerial Financial Information Rent Revenues 1Q16 1Q15 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Shopping da Bahia Shopping Taboão Via Parque Shopping Shopping Grande Rio Carioca Shopping Bangu Shopping Santana Parque Shopping Shopping Santa Úrsula Caxias Shopping Boulevard Shopping Brasília Boulevard Shopping Belém Boulevard Shopping Belo Horizonte Boulevard Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Shopping West Plaza Parque Shopping Maceió Shopping Parangaba C&A Stores 18,243 6,416 3,592 2,727 7,818 11,086 1,746 816 4,449 1,873 12,673 7,258 3,821 2,421 1,580 2,740 1,297 3,262 2,201 970 17,352 6,214 6,494 2,579 6,460 10,422 1,637 820 4,296 1,727 11,904 6,858 3,665 2,378 1,584 2,930 1,397 3,007 2,051 889 5.1% 3.3% -44.7% 5.7% 21.0% 6.4% 6.7% -0.5% 3.6% 8.4% 6.5% 5.8% 4.3% 1.8% -0.2% -6.5% -7.1% 8.5% 7.3% 9.1% Total 96,989 94,663 2.5% Rent Revenues - Same Malls* 96,989 92,158 5.2% (Amounts in thousands of Reais, except per *Include effect of sale and acquisition of interest during 2015 In 1Q16, the portfolio’s same store rents (SSR) saw the largest growth since 4Q14. The evolution of this indicator demonstrates the Company’s ability to increase rental revenue despite the economic scenario, due to a low occupation cost in comparison with the sector’s average. Of the 19 malls in the Company’s portfolio, 15 properties had a higher rental revenue in 1Q16 than in 4Q15. SSR growth for the Company’s top 10 malls was 7.3% in 1Q16. Same-Store Rent Growth SSR/sqm 7.1% 5.9% 1Q15 4.0% 4.3% 4.6% 2Q15 3Q15 4Q15 1Q16 CAGR: +27.5% Aliansce Mall & Media was created in 2012 with the purpose of maximizing kiosk and merchandising revenues in the Company’s properties. Between 1Q12 and 1Q16, this rental revenue item had a compounded annual growth rate (CAGR) of 27.5%, and its share in the Company’s rental revenue increased from 7.3% to 10.1%. 13 .0 % 14 ,0 00 12 ,0 00 10 ,0 00 8,7% 7,3% 9,1% 8,227 9,8% 9,253 10,1% 9,786 11 .0 % 9.0% 7.0% 6,597 8,00 0 5.0% 6,00 0 3,701 3.0% 4,00 0 1.0% 2,00 0 -10 .% 0 1Q12 Cost of Rentals and Services 1Q13 1Q14 M&M Revenues (R$ thousands) 1Q15 1Q16 M&M/Rent Revenues The Company continued to achieve margin gains in parking operations in 1Q16. The decrease in parking costs due to ticketing automation and a reduction in staff enabled 16 out of 17 malls in the portfolio that charged for this service in 1Q15 to achieve greater margins. Parking margin reached 84.6% in the quarter, about 10 p.p. above the percentage reached in 1Q15. The increase in the Company’s operating cost this quarter was concentrated in 4 malls, which accounted for 45.8% of total operating costs. The key factors were costs related to the migration from the captive energy market to the free market, and contribution to marketing campaigns. The migration to the free energy market will significantly reduce the main cost item in common area costs and, consequently, the tenants’ occupancy costs, enabling future incremental increases in rents. In addition to the effects from higher late payments, provision for doubtful accounts in the quarter was impacted by historical adjustments related to condominium receivables from previous quarters in Shopping West Plaza, and also by the uniform application of PDA policy, so that the entire overdue balance of a tenant, including rent and condominium, be considered in the provision. These adjustments totaled approximately R$1.2 million in the quarter. Managerial Financial Information Costs per type 1Q16 1Q15 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Depreciation and amortization 17,270 17,092 1.0% Mall operating costs 11,768 9,214 27.7% Parking costs 3,917 5,441 -28.0% Leasing and Planning costs 1,718 1,303 31.8% Provision for doubtful accounts 8,405 3,530 138.1% 43,079 36,579 17.8% Total Gross Income The gross income totaled R$88.9 million in 1Q16, a 2.1% increase from the same period in the previous year. Gross Income (R$ thousands) 2.1% 87,048 88,905 1Q15 1Q16 Excluding divestments and acquisitions of interests in 2015, gross profit increased 5.4% in the quarter. NOI NOI amounted to R$109.3 million in 1Q16, an increase of 4.2% from 1Q15. NOI margin was 84.4% in the quarter. Excluding the effect of divestments and acquisitions made in the end of 2015, the Company’s NOI grew 6.7% in 1Q16. Managerial Financial Information 1Q16 NOI 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Rents Key Money Parking Results Operational Income 104,299 3,567 21,565 129,432 97,356 4,138 16,070 117,564 7.1% -13.8% 34.2% 10.1% (-) Mall operational costs (-) Provision for doubtful accounts (11,768) (8,405) (9,214) (3,530) 27.7% 138.1% (=) NOI 109,259 104,821 4.2% 84.4% 89.2% -4.7 p.p. 109,259 84.4% 102,399 89.6% 6.7% -5.2 p.p. NOI Margin NOI - Same Mall* NOI Margin - Same Mall* *Include effect of sale and acquisition of interest during 2015 Operating (Expenses) / Income G&A Expenses vs. Net Revenues As in the previous quarter, the Company was able to reduce general and administrative expenses in 1Q16. The main reasons that explain the 1.7% decrease in the quarter include a reduction of the statutory bonus for management and of expenses with stock options. Additionally, the Company reduced rental expenses in the quarter. In the last five years, the Company recorded a decline of 7.3 p.p. in the share of general and administrative expenses in net revenue. 25. 0% 21.6% 20. 0% 16.4% 14.9% 15.5% 1Q14 1Q15 15. 0% 14.3% 10. 0% 5.0% 0.0% 1Q12 1Q13 1Q16 G&A over Net Revenues The main item of other operating (expenses)/revenue in the quarter was the earn out related to the sale of ownership in Santana Parque Shopping in the amount of R$5 million. The Company was entitled to receive this amount considering that the mall’s operating results was higher than the target set out in the sale agreement made in 2014. Managerial Financial Information Operating (Expenses)/Income 1Q16 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Administrative and general expenses Depreciation and amortization expenses Other operating (expenses)/income Total Gain on sale of interest¹ Other non-recurring Items Adjusted Total ¹Earn out related to the sale of interest in Santana Parque Shopping (18,820) (19,147) -1.7% (1,144) (911) 25.5% 2,414 (3,097) n/a (17,550) (23,155) -24.2% (4,989) 0 2,013 1,885 6.8% n/a (20,526) (21,269) -3.5% EBITDA and Adjusted EBITDA The Company’s adjusted EBITDA totaled R$86.8 million in 1Q16, 3.6% higher than in 1Q15. Excluding the divestment and acquisition of interests in 2015, adjusted EBITDA grew 7.5% in the quarter. In the last five years, the compound annual growth rate (CAGR) of the adjusted EBITDA was 17.6%. Managerial Financial Information 1Q16 1Q15 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Net revenues 131,984 - 123,628 - 6.8% (-) Costs (-) Expenses (+) Depreciation and amortization (43,079) (17,550) 18,442 (36,579) (23,155) 18,028 17.8% -24.2% 2.3% (=) EBITDA 89,797 81,922 9.6% (+)/(-) Non-recurring (expenses) / income (-) Gain on sale of interest¹ (+) Pre-operational expenses (+)/(-) Others (2,976) (4,989) 2,013 1,885 0 1,885 n/a n/a n/a 6.8% (=) Adjusted EBITDA 86,821 83,807 3.6% Adjusted EBITDA Margin 65.8% 67.8% -2.0 p.p. Adjusted EBITDA - Same Mall² Adjusted EBITDA Margin - Same Mall² 86,821 65.8% 80,795 67.8% 7.5% -2.0 p.p. ¹Earn out related to the sale of interest in Santana Parque Shopping ²Include effect of sale of interest during 2014 and 2015 Financial Result Financial Result (R$ thousands) 1Q15 1Q16 The change in income for 1Q16 compared to 1Q15 is due to the Company’s lower cash balance, which resulted in a drop in financial revenues for the period. There was a 0.6% decrease in financial expenses in the quarter compared with the same period in the previous year. The main reason for the decrease in financial expenses was the savings generated by prepayment of the first public issue of debentures in the amount of R$185 million over the second half of 2015, which had a higher cost than the Company’s average. (52,303) (58,875) Net Income and Adjusted Net Income The Company’s net income totaled R$1.3 million in 1Q16. Excluding the non-recurring and non-cash effects, the Company had an adjusted net loss of R$4.8 million in 1Q16. Managerial Financial Information 1Q16 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Net Income - Controlling Shareholders 1,280 1,787 -28.4% (+)/(-) Non-recurring (expenses)/income (-) Straight line rent adjustment - CPC 06 (+) non disbursed financial expenses (+)/(-) non-cash taxes (-) Capitalized Interest (+) SWAP (2,976) (6,710) 587 3,369 (494) 128 1,885 (2,383) 1,174 458 (1,283) 411 n/a 181.6% -50.0% 634.9% -61.5% -68.7% (=) Adjusted Net Income (4,815) 2,050 n/a Adjusted Net Income - Same Malls* (4,815) 80 n/a *Include effect of sale and acquisition of interest during 2015 FFO and Adjusted FFO (AFFO) The adjusted FFO (AFFO) totaled R$12.8 million in 1Q16 and the AFFO margin was 10.2% in the quarter. Managerial Financial Information @share FFO 1Q16 1Q15 1Q16/1Q15 Δ% (Amounts in thousands of Reais, except percentages) Net Income - Controlling Shareholders 1,280 1,787 (+) Depreciation and Amortization 17,680 17,321 2.1% (=) FFO 18,961 19,108 -0.8% FFO Margin % (+)/(-) Non-recurring expenses/(revenues) (-) Straight line rent adjustment - CPC 06 (+) Stock Option (+)/(-) Non-cash taxes (-) Capitalized Interest (+) SWAP 15.0% (2,976) (6,710) 587 3,369 (494) 128 16.1% 1,885 (2,383) 1,174 458 (1,283) 411 -1.1 p.p. n/a 181.6% -50.0% 634.9% -61.5% -68.7% (=) Adjusted FFO 12,865 19,371 -33.6% AFFO Margin % 10.2% 16.3% -6.2 p.p. Adjusted FFO - Same Mall¹ AFFO Margin - Same Mall¹ 12,865 10.2% 17,126 15.0% -24.9% -4.8 p.p. *Include effect of sale and acquisition of interest during 2015 -28.4% Operating Highlights Sales Performance Sales Growth 2,500 Sales in Aliansce malls totaled R$1.8 billion in 1Q16, down 2.6% from 1Q15. In the last 5 years, the total sales of the portfolio recorded a Compound Annual Growth Rate (CAGR) of 12.4%. 2,000 CAGR: 12.4% 1,848 1,500 1,028 1,000 500 Sales per sqm totaled R$1,060, with a 1.7% drop against the 1Q15, an improvement from the decreases of 4.6% in 4Q15 and 3.5% in 3Q15 against the same periods in previous years. - 1Q11 1Q15 Total Sales (R$ million) The same trend can be observed in same area sales (SAS) and same store sales (SSS), which were down 3.9% and 4.8% in 1Q16, respectively. Sales per sqm and SAS per sqm continued to reflect the positive impact in the Company’s sales of the change in tenants and of the occupation of vacant areas. In all of the quarters over the past 5 years, SAS growth was higher than the change in SSS. SSS SAS Sales per sqm 1Q16 vs. 4Q15 Variation ∆ Improvement in tenant mix -3.9% -4.8% • Leasing of vacant stores to tenants with higher productivity • Removal of stores with sales per sqm lower than mall's average -1.7% SSS SAS +1.5 p.p. Sales per sqm +2.8 p.p. +1.8 p.p. Impact of the continuous improvement in tenant mix Occupancy Rate (%) Occupancy Rate The Company’s occupancy rate was of 96.1% in 1Q16, 1.1 p.p. below 4Q15. The main reason for the drop in the occupancy rate was the departure of 3 anchor stores, one in Via Parque Shopping, another in Boulevard Shopping Nações Bauru, and the last in Boulevard Shopping Vila Velha. Excluding these three stores, Aliansce’s occupancy rate would be 96.9% in 1Q16, a decrease of 0.3 p.p. compared with 4Q15. 97.4% 97.3% 97.1% 97.2% 96.5%* 96.1% 1Q15 2Q15 3TQ15 4Q15 1Q16 *Incl udes a pproved proposal a t Via Parque Shopping The Company has approved a commercial proposal for the area previously occupied by anchor store in Via Parque Shopping, which will increase the portfolio's occupancy rate to 96.5%, a reduction of 0.6 p.p. versus 4Q15. Boulevard Shopping Brasilia stood out with an increase of 4.2 p.p. in occupancy rate. Net Late Payments Net Late Payments Net late payments for the 1st quarter is usually higher than the annual average in view of the extra costs incurred by tenants at the beginning of each year. In 1Q16, the net late payments were 6.0% versus 5.3% in 1Q15. Considering the current economic environment, net late payments in the quarter reflect the quality and resilience of Aliansce’s portfolio. 5.3% 1Q15 3.2% 4.0% 2Q15 3Q15 5.0% 4Q15 6.0% 1Q16 Occupancy Cost (% of sales) Similarly to net late payments, occupancy cost is also impacted by seasonality in the first quarter of the year. Lower sales volume in the quarter results in an above year-average occupancy cost. In the last 4 years, the occupancy cost in the 1st quarter was on average 0.8 p.p. above the occupancy cost in the year. The occupancy cost of the portfolio was 11.4% in 1Q16, 0.8 p.p. higher than 1Q15. The occupancy cost for the Company’s top 10 malls was 11.1% in the period. In the last 12 months, occupancy cost was 10.4%. The occupancy cost of satellite stores totaled 15.1% in 1Q16, an increase of 0.6 p.p. from the same period last year. The occupancy cost of satellite stores totaled 13.9% in the last 12 months. Total Occupancy Cost Satellites Occupancy Cost 15.1% 14.5% 13.9% 13.2% 11.4% 10.6% 10.4% 9.7% 1Q15 LTM 1Q16 LTM 1Q15 LTM 1Q16 LTM Approximately 50% of the increase in the occupancy cost for the last 12 months was due to higher condominium fees, which reflected the higher energy costs. In addition to the 7 malls that already operate in the free energy market, 9 additional assets in the portfolio will leave the captive market over 2016. This change will lead to a significant reduction in energy costs, as well as their impact on condominium fees. CAPEX The Company’s gross CAPEX totaled R$20.5 million in 1Q16. Net investment was R$ 20.3 million in the quarter. The main investments included the acquisition of an ownership stake in Shopping da Bahia and acquisition of land, in addition to the amount invested by shopping da Bahia in exchange for the right to charge for parking. The chart below shows the estimated CAPEX to be disbursed by the end of 2018. The figures below do not include the balance payable for the acquisition of interests that total R$22.7 million by the end of 2018 and are booked in the Company’s balance sheet. CAPEX to Complete¹ 2016E 2017E 2018E TOTAL (Amounts in millions of Reais) Expansions 4.2 0.0 0.0 4.2 Maintenance / Renovations 8.4 33.3 38.0 79.7 Other 24.0 20.0 12.2 56.3 Key money / Land swap² -1.2 -0.7 0.0 -1.9 Total 35.4 52.6 50.2 138.2 ¹ ² Real values Monetization of excess land Growth Drivers Expansions Ongoing Projects scheduled to be opened in the next 12 months Expected to open on 4Q16, the expansion of Shopping West Plaza will add 0.8 thousand sqm to the Company’s owned GLA. The project represents an estimated investment of R$5.2 million net of key money at Aliansce’s stake. Ongoing Projects Shopping West Plaza % Aliansce (R$ million) State Opening GLA (sqm) % Aliansce Owned GLA (sqm) Net Capex¹ Stabilized NOI Stabilized Cap IRR² (p.a.) SP 4Q16 3,175 25.0% 794 5.2 0.4 7.7% 10.4% 794 5.2 0.4 Total 3,175 ¹Includes net Key Money and Land Swap ²Real and unleveraged IRR Expansion of Shopping West Plaza Shopping West Plaza’s expansion encompasses a new state-of-the-art movie theater with 7 screens, following a new concept recently opened by Cinemark in the U.S.. The Company expects a significant increase in consumer traffic, especially during weekends, which will benefit the mall as a whole. There will also be a theater that will be opened in the former site of the mall's movie theater. The current schedule continues on time and the expected net CAPEX is R$5.2 million at the Company's stake, of which approximately 85.0% has been invested by the end of 1Q16, considering that we had completed around 95.0% of the construction works. By the end of 2Q16 we estimate the delivery of the work to Cinemark and the inauguration is expected for the 4Q16. New front view with movie theater on the 4th floor Current front view Excess Land Aliansce’s portfolio has 468.0 thousand sqm of total expandable area in 13 of the Company’s 19 shopping malls. According to each property’s multi-year plan, this area was divided between future expansions of the Company’s malls and the development of mixed-use projects. The intended use of the expandable area can be adapted to the Company’s interest. The numbers below reflect Aliansce’s ownership interest. Mixed-use Projects (Private Built Area - sqm) Expansion Potential (GLA - sqm) (Amounts at Aliansce's stake) Carioca Shopping 11,900 1,522 Bangu Shopping 7,000 25,000 Shopping Grande Rio 2,000 7,500 Shopping Taboão 26,600 24,960 Shopping da Bahia 46,466 10,680 Parque Shopping Maceió 91,500 15,000 Boulevard Shopping Campos 41,000 20,000 Boulevard Shopping Vila Velha 15,000 10,000 Boulevard Shopping Nações Bauru 28,000 15,000 Caxias Shopping 17,800 25,273 Boulevard Shopping Belo Horizonte 7,000 3,500 Parque Shopping Belém - 11,250 Shopping Parangaba - 4,000 294,266 173,686 Total Cash and Cash Equivalents and Indebtedness At the end of 1Q16, the Company’s net debt was R$1,574.3 million. Excluding minority interests, the balance totaled R$1,508.3 million. Approximately 79.6% of the Company’s debt was indexed to TR (reference rate), TJLP (long-term interest rate) and fixed interest rates, and the average cost of debt remained at 14.0% p.a. at the end of the quarter, below the Selic rate. Average maturity increased to 5.9 years due to the prepayment of the balance on the first issuance of debentures in the second half of 2015. At the end of 1Q16, 87.4% of the Company’s gross debt was long-term. On April 13, 2016, the Company prepaid a loan with a balance of R$52.4 million, cost of IPCA plus 9.74% p.a. and maturity in 2019. On the same date, the Company issued a simple debenture in the amount of R$75.0 million, at a cost of CDI plus 1.7% p.a. and a maturity of 12 years, with a principal amount grace period of 12 months. The rights and credits arising from the debenture serve as backing for the issaunce of CRI (real estate receivables notes), according to the Brazilian Securities and Exchange Comission (CVM) Instruction No. 476/2009. Debt Profile Aliansce Cost of Debt vs. Selic (base 100) 190 TR 74.1% Change in Selic = 7.0 p.p. 170 150 130 Change in ALSC cost = 2.9 p.p. IPCA 14.7% 110 90 1Q13 1Q14 1Q15 SELIC 1Q16 Fixed 2.5% ALSC Cost Debt breakdown Short-Term Long-Term TJLP 3.0% IGP-DI 5.7% Total Debt (Amounts in thousands of Reais) Banks 71,861 948,098 1,019,959 100,113 376,979 477,092 Obligation for purchase of assets 15,299 22,700 37,999 Debentures 26,035 128,826 154,862 TOTAL DEBT 213,309 1,476,604 1,689,912 Cash and Cash Equivalents (115,572) - (115,572) TOTAL CASH (115,572) - (115,572) 97,737 1,476,604 1,574,340 CCI/CRI NET DEBT The table detailing the costs and terms of each debt is available in the appendix of the release. Principal Amortization Schedule (R$ millions) 162.3 162.0 127.8 121.8 109.7 100.9 92.8 137.9 127.3 70.6 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 The table below shows the reconciliation between the book value of the consolidated net debt and managerial net debt in 1Q16. The reduction in debt was a result of the recognition of the net effect of loans for Parque Shopping Belém and Parque Shopping Maceió in the Company’s share. Debt breakdown - Consolidated Financial Statements 1Q16 Effects of CPC 18/19 (amounts in thousands of reais) 1,060,006 (40,047) Banks CCI/CRI Obligation for purchase of assets Debentures 1,019,959 477,092 - 37,999 - 37,999 154,862 - 154,862 1,729,959 TOTAL DEBT Managerial 1Q16 (40,047) 477,092 1,689,912 Cash and Cash Equivalents (108,809) (6,762) (115,571) TOTAL AVAILABLE (108,809) (6,762) (115,571) NET DEBT 1,621,150 (46,809) 1,574,341 Stock Performance Aliansce’s shares (code ALSC3) traded on the Novo Mercado of BM&F Bovespa closed the 1Q16 at R$12.81. The average trading volume in the quarter was R$ 5.8 million per day. On January 4th, the Company entered the portfolio that makes up the IBrX 100 index, which measures average stock performance tracking changes in the prices of the 100 most actively traded and representative stocks of the Brazilian stock market. Aliansce - Base = 100 (3/31/2015) Base 100 R$ Thousand 130 14,000 120 12,000 110 10,000 100 8,000 90 6,000 80 4,000 70 2,000 60 Mar-16 ADTV 15 days Jan-16 IBOV Nov-15 Sep-15 Jul-15 May-15 Mar-15 ALSC3 Shareholder Base CPPIB 29.2% Free Float 46.6% Treasury 0.4% Renato Rique 21.0% Management 2.9% Glossary Abrasce: Brazilian Association of Shopping Malls. Additional Rent: The difference (when positive) between the minimum rent and rent based on a percentage of sales, pursuant to the rental agreements. Adjusted EBITDA: EBITDA + pre-operating expenses + / (-) other non-recurring expenses (revenues). Adjusted FFO (Funds from Operations): Net income of the controlling shareholders + depreciation + amortization + non-recurring expenses / (revenues) - straight line rent adjustment + stock option plan +/(-) non-cash taxes - capitalized interest + SWAP effect. Adjusted Net Profit: Net profit of the controlling shareholders + non-recurring expenses / (revenues) - straight line rent adjustment + stock option +/ (-) non-cash taxes - capitalized interest + SWAP effect. Anchor Stores: Large stores (GLA over 1000 sqm) by well-known brands with special marketing and structural features that attract customers, thus ensuring permanent customer traffic and uniform traffic in all areas of the shopping mall. CAGR: Compound annual growth rate CAPEX: Capital Expenditure. Estimate of the amount of funds to be spent on the development, expansion, improvement or acquisition of an asset. CPC: Accounting Pronouncements Committee. CRI: Real estate receivables notes. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization): Net revenue – operating costs and expenses + depreciation and amortization. Federal Law 11638: On December 28, 2007, Federal Law 11638 was enacted, with the purpose of including publicly-held companies in the international accounting convergence process. Consequently, certain financial and operating results were subject to accounting effects due to the changes introduced by the new law. FIIVPS: Fundo de Investimento Imobiliário Via Parque Shopping, a real estate investment fund. GCA (Gross Commercial Area): Equivalent to the sum of all the commercial areas of the shopping malls (i.e., GLA plus store areas sold). GLA (Gross Leasable Area): Equivalent to the sum of all leasing areas available in shopping malls, except for kiosks and sold areas. Greenfield: Development of new shopping mall ventures. Management Fee: Fee charged to tenants and other partners of the mall to defray management costs. MBS: Real estate credit notes. Mega Stores Medium-sized stores (GLA between 500 and 1000 sqm), which frequently have special marketing and structural features, on a lesser scale, but which still attract and retain customers. They are also known as “mini-anchors.” Minimum Rent: The minimum rent price in a tenant’s leasing agreement. Net Late Payments: It is the ratio between the total amount charged in a respective period and the total received within the same period, being determined 30 days after the end of the quarter. The renegotiation of rental agreements is considered in the calculation of net late payments. Net Key Money: Key money net of leasing costs. Key Money: Amount charged to tenant for the right to use the technical infrastructure of a project, applicable to agreements with duration longer than 60 months. NOI (Net Operating Income): Gross mall revenue (excluding revenue from services) + parking revenues - mall operating costs allowance for loan losses. Occupancy Cost: The leasing cost of a store as a percentage of sales: Rent (minimum + percentage) + common fees + marketing fund. Occupancy Rate: Total mall GLA divided by the leased area at the end of the period in question. Owned GLA: Refers to total GLA weighted by Aliansce’s ownership stake in each shopping mall. PDA: Provision for Doubtful Accounts. Sales: Reported product and service sales of stores in each of the shopping malls in the quarter, including kiosk sales. Includes 100% of each mall’s sales, regardless of Aliansce’s stake. Sales/sqm: Sales value divided by the area reporting sales in the period. Does not include kiosk sales, since such operations are not covered in the malls’ total GLA. Considers Aliansce’s stake in each mall. SAR (Same Area Rent): Change in rent earned in the same area compared to the previous year. Considers Aliansce’s ownership stake in all malls, except for Shopping Santa Úrsula. SAS (Same Area Sales): Change in sales in the same area compared to the previous year. Considers Aliansce’s ownership stake in all malls, except for Shopping Santa Úrsula. Satellite Stores: Small stores (GLA less than 500 sqm) with no special marketing and structural features, located around the Anchor Stores and intended for general retail. SSR (Same Store Rent): Change in rent earned for the same operation compared to the previous year. Considers Aliansce’s ownership stake in all malls, except for Shopping Santa Úrsula. SSS (Same Store Sales): Change in sales in the same operation compared to the previous year. Considers Aliansce’s ownership stake in all malls, except for Shopping Santa Úrsula. Tenant Mix: Strategic composition of stores defined by the malls’ operator. Vacancy: The mall’s gross leasable area available for rent. Appendices Reconciliation of the consolidated and managerial financial statements As of January 1, 2013, the Company adopted technical pronouncement CPC 19 (R2) – Joint Businesses, which determines that the projects that a company controls jointly with one or more parties must be characterized as Joint Businesses or Joint Venture and must be classified under one of these categories. In addition, on the same date, the Company adopted the technical pronouncement CPC 18 (R2) – Investment in subsidiaries and associated companies – and now fully consolidates Via Parque Shopping Real Estate Investment Fund, as well as Parque Shopping Belém. As stated above, in response to the Circular Letter CVM/SNC/SEP No. 01/2016, the sale of Boulevard Corporate Tower – a commercial tower next to the Boulevard Belo Horizonte Mall –, was reclassified for accounting purposes as “Liabilities related to investment Properties – Commercial Tower” (Note 5 to the Company’s consolidated financial statements), although formally and legally it was a sale. This transaction was formalized in June 2014 through the sale of all the shares issued by Degas Empreendimentos e Participações S.A., owned by Hula Fundo de Investimento em Participações – FIP. The consolidated financial statements of March 31, 2016 have been adjusted to consider the transaction as a liability, and the consolidated financial statements of March 31, 2015 have been similarly adjusted, and are being restated. This adjustment affected the balance sheet, and the statements of income, comprehensive income and consolidated cash flows, as detailed in the following tables. The asset in the transaction was entered at cost as “Investment Properties - Commercial Tower” (Note 12). This liability has no established maturity date, since it is linked to the possible sale of the tower to third parties. Since the transaction was formalized as a sale with its price subject to adjustments, the Company’s financial liability is limited to the difference between the Target Value (amount paid by the buyer at the CDI rate + 2% per annum deducted from distributions of earnings from the tower, held between the date of sale to the buyer and the future date of sale to a third party) and the value obtained by the purchaser at any sale of the tower to third parties. If the tower is eventually sold for a price above the Target Value, Aliansce will be entitled to a credit. The amount under “Liabilities related to Investment Properties - commercial tower” in the consolidated financial statements corresponds to the target value. The managerial financial information does not consider the impact of the Reclassification and reflect the proportional stake held by Aliansce in jointly owned subsidiaries, as shown below: Income Statements Financial Financial Managerial Statements 1Q15 Statements 1Q16 Statements 1Q16 Boulevard Shopping Brasília Equity Income Equity Income 50.00% Parque Shopping Maceió Equity Income Equity Income 50.00% Shopping Grande Rio Equity Income Equity Income 25.00% Shopping Santa Úrsula Equity Income Equity Income 37.50% Parque Shopping Belém 100.00% 100.00% 50.00% Via Parque Shopping 100.00% Equity Income 38.91% Equity Income Equity Income 33.40% 100.00% 100.00% - Santana Parque Shopping Boulevard Corporate Tower Finally, the managerial financial statements were prepared based on the balance sheets, income statements and financial reports of the respective companies and projects, as well as assumptions deemed reasonable by the Company’s Management, which should be read in conjunction with the period’s financial statements and respective notes. We present below the reconciliation of accounts versus managerial financial statements for the periods ended March 31, 2015 and 2016: Reconciliation of the consolidated accounting and managerial financial statements – 2015 Conciliation between managerial financial information vs financial statements Period ended March 31, 2015 Aliansce Consolidated Boulevard Corporate 2015 - Financial Tower Statements Minorities Via Parque Consolidation / Adjustment Cross off Aliansce Consolidated 2015 - Managerial (amounts in thousands of reais) Gross revenue from rental and services Taxes and contributions and other deductions 127,740 (10,935) Net revenues 116,805 Cost of rentals and services (31,195) - - - (2,060) 133 9,402 (653) 135,083 (11,455) (1,927) 8,749 123,628 433 (5,816) (36,579) (1,494) 2,933 87,048 (6) 2 (8) (2,647) 3,046 (5,748) 5 50 (23,154) (19,147) 0 (911) (3,097) (52,303) 85,610 - - - Operating income/expenses Administrative and general expenses Equity Income Depreciation and Amortization Other operating income/(expenses) (17,238) (22,195) 5,748 (916) 125 (3,263) 0 (0) (3,263) Financial income/(expenses) (60,805) 7,016 (51) 1,537 7,567 3,753 (1,552) 1,823 7,838 (5,227) (1,276)- (82) (1,736) (8,321) Net income for the period 2,340 2,477 (1,633) 87 3,270 Income attributable to: Controlling Shareholders Minority Shareholders Net income for the period (690) 3,030 2,340 2,477 2,477 (1,633) (1,633) 87 87 1,787 1,483 3,270 Consolidation / Adjustment Cross off Aliansce Consolidated 2015 - Managerial Gross income Net income before taxes and minority interest Income and social contribution taxes Conciliation between EBITDA / Adjusted EBITDA Period ended March 31, 2015 Aliansce Consolidated Boulevard Corporate 2015 - Financial Tower Statements Minorities Via Parque (amounts in thousands of reais, except percentages) Net income 2,340 2,477 (1,633) 87 3,270 (+) Depreciation and amortization (+)/(-) Financial expenses / (income) (+) Income and social contribution taxes 17,180 60,805 5,227 (7,016) 1,276 (244) 51 82 1,093 (1,537) 1,736 18,028 52,303 8,321 EBITDA EBITDA MARGIN % 85,552 73.2% (3,263) (1,745) 1,378 81,922 66.3% (+)/(-) Non-recurring (expenses)/income ADJUSTED EBITDA ADJUSTED EBITDA MARGIN % Conciliation between FFO / Adjusted FFO Period ended March 31, 2015 1,501 87,053 74.5% 238 - - 146 1,885 (3,025) (1,745) 1,524 83,807 67.8% Aliansce Consolidated Boulevard Corporate 2015 - Financial Tower Statements Minority Interest Consolidation / Adjustment Cross off Aliansce Consolidated 2015 - Managerial (amounts in thousands of reais, except percentages) Net income/(loss) for the period (+) Depretiation and amortization (=) FFO * FFO MARGIN % (+)/(-) Non recurring expenses (-) Straight line rent adjustments - CPC 06 (+) Stock Options (+)/(-) Non-cash taxes (-) CPC 20 - Capitalized Interest (+) SWAP (=) Adjusted FFO * AFFO MARGIN % * Non-accounting indicators 2,340 2,477 (3,116) 87 1,787 17,180 - - (951) - 1,093 - 1,501 0 238 0 - 0 146 17,321 19,108 16.0% 0 (2,261) 1,174 (1,293) (1,283) 411 1,276 0- 143 (162) -- (265) 638 - - 19,519 16.7% 1,885 (2,383) 1,174 459 (1,283) 411 0 19,371 16.3% Reconciliation of the consolidated accounting and managerial financial statements – 2016 Conciliation between managerial financial information vs financial statements Period ended March 31, 2016 Aliansce Consolidated 2016 - Financial Statements Consolidation / Adjustment Cross off Boulevard Corporate Tower Aliansce Consolidated 2016 - Managerial (amounts in thousands of reais) Gross revenue from rental and services Taxes and contributions and other deductions 130,538 (13,148) - Net revenues 117,390 - 14,594 131,984 Cost of rentals and services (31,017) - (12,062) (43,079) Gross income 15,474 (881) 146,012 (14,028) 86,373 - 2,532 88,905 Operating income/expenses Administrative and general expenses Equity Income Depreciation and Amortization Other operating income/(expenses) (12,164) (25,979) 9,642 (1,143) 5,316 (2,716) (2,716) (2,672) 7,157 (9,642) (1) (186) (17,550) (18,820) 0 (1,144) 2,414 Financial income/(expenses) (69,757) 9,164 1,719 (58,875) 4,452 6,448 1,579 12,480 (5,912) (2,192) (1,114) (9,219) Net income/(loss) for the period (1,460) 4,256 465 3,261 Income attributable to: Controlling Shareholders Minority Shareholders Net income/(loss) for the period (2,975) 1,515 (1,460) 4,256 4,256 465 465 1,280 1,980 3,261 Net income before taxes and minority interest Income and social contribution taxes Conciliation between EBITDA / Adjusted EBITDA Period ended March 31, 2016 Aliansce Consolidated 2016 - Financial Statements Boulevard Corporate Tower Consolidation / Adjustment Cross off Aliansce Consolidated 2016 - Managerial (amounts in thousands of reais, except percentages) Net income/(loss) for the period (1,460) 4,256 465 3,261 (+) Depreciation and amortization (+)/(-) Financial expenses / (income) (+) Income and social contribution taxes 16,892 69,758 5,913 (9,164) 2,192 1,550 (1,719) 1,114 18,442 58,875 9,219 EBITDA EBITDA MARGIN % 91,103 77.6% (2,716) 1,411 89,797 68.0% (+)/(-) Non-recurring (expenses)/income (+) Pre-operational expenses (+)/(-) Others (3,499) (3,499) 615 615 (92) (92) (2,976) (2,976) ADJUSTED EBITDA ADJUSTED EBITDA MARGIN % 87,604 74.6% (2,102) 1,319 86,821 65.8% Conciliation between FFO / Adjusted FFO Period ended March 31, 2016 Aliansce Consolidated Boulevard Corporate 2016 - Financial Tower Statements Minority Interest Consolidation / Adjustment Cross off Aliansce Consolidated 2016 - Managerial (amounts in thousands of reais, except percentages) Net income/(loss) for the period (+) Depretiation and amortization (=) FFO * FFO MARGIN % (1,460) 4,256 (1,980) 465 1,280 16,892 - - (762) - 1,550 - 17,680 18,961 15.0% 0 15,432 13.1% (+)/(-) Non recurring expenses (3,499) 0 615 0 - 0 (92) (2,976) (-) Straight line rent adjustments - CPC 06 (+) Stock Options (+)/(-) Non-cash taxes (-) CPC 20 - Capitalized Interest (+) SWAP (5,871) 587 1,517 (494) 128- 2,192 -- 542 (320) -- (1,381) (19) -- (6,710) 587 3,369 (494) 128- (=) Adjusted FFO * AFFO MARGIN % * Non-accounting indicators 12,865 10.2% Debt table The amounts detailed below reflect Aliansce’s stake in each debt and do not include (i) structuring costs and (ii) obligations related to the purchase of assets. For more information, please refer to Note 15 of the Company’s consolidated financial statements. Index Interest Short Term Long Term Current Balance Maturity 50,098 105,417 86,552 120,207 52,396 90,390 97,047 42,631 67,098 81,917 129,314 203,286 153,199 119,343 32,208 58,687 24,912 32,174 76,187 Oct-17 Jan-24 Sep-18 Jan-21 Dec-19 Mar-23 May-25 Dec-23 Nov-21 Apr-24 May-26 Aug-27 Sep-27 Dec-27 Sep-21 Dec-24 Jul-21 Apr-24 May-30 (Amounts @share in thousands of Reais) Debenture II Debenture III¹ Cibrasec Cibrasec RB Capital RB Capital Gaia Securitizadora BNB Bradesco Bradesco Bradesco Bradesco Bradesco Bradesco Bradesco Santander Itaú Itaú Itaú² ¹ Grace period until Jan-23 ² Grace period until May-18 TJLP IPCA TR TR IPCA IPCA IGP-DI TR TR TR TR TR TR TR TR TR TR TR 5.00% 7.50% 10.80% 12.00% 9.74% 7.95% 7.95% 8.08% 12.00% 10.60% 10.80% 10.50% 10.50% 9.60% 10.20% 10.20% 10.70% 9.90% 9.88% 25,098 1,210 33,882 28,541 12,569 9,967 8,423 4,038 9,107 7,323 7,721 10,218 7,707 6,051 4,727 4,639 4,675 4,106 565 25,000 104,207 52,670 91,666 39,827 80,422 88,624 38,593 57,991 74,594 121,592 193,068 145,491 113,292 27,481 54,047 20,238 28,068 75,622 Balance Sheet Managerial Balance Sheet Aliansce Financial Statements 03/31/2016 12/31/2015 Boulevard Corporate Tower 03/31/2016 ASSETS Current Cash and cash equivalents Short-term investments Accounts receivable Dividends receivable Taxes recoverable Other receivables Total Current Assets 03/31/2016 12/31/2015 Aliansce Managerial Consolidated 03/31/2016 12/31/2015 (amounts in thousands of reais) 15,720 93,089 80,268 1,500 52,533 27,668 15,425 120,620 89,604 57,411 14,018 270,778 297,078 Non-Current Accounts receivable Judicial deposits Other receivables Investments Investment property - Commercial Tower Investment property - malls Property, plant and equipment Intangible assets 19,784 22,194 413,960 175,345 2,897,765 7,096 282,529 18,539 20,551 413,951 174,945 2,899,689 7,329 283,126 Total Non-current Assets 3,818,673 3,818,130 Total Assets 12/31/2015 Consolidation Cross off CPC 18/19 4,089,451 4,115,208 -- -- -(175,345) - -(174,945) - (175,345) (175,345) (174,945) (174,945) LIABILITIES 1,092 5,670 11,657 (1,500) 806 1,653 2,167 1,700 12,085 856 1,997 16,813 98,759 91,925 53,339 29,320 17,592 122,320 101,689 58,267 16,015 19,378 18,805 290,156 315,883 (38) 1,881 (413,788) 246,054 (1) 103,683 43 (2,503) 440 (413,779) 246,274 (2) 103,678 19,746 24,075 172 3,143,819 7,096 386,211 43 16,036 20,991 172 3,145,963 7,327 386,804 (62,209) (65,848) 3,581,118 3,577,337 (42,831) (47,043) 3,871,274 3,893,220 (amounts in thousands of reais) Current Suppliers Loans and financing, real estate credit notes and debentures Taxes and contributions payable Dividends payable Obligations for purchase of assets Other liabilities 12,780 201,398 25,612 33,502 15,299 34,224 18,911 200,110 27,052 31,755 18,721 23,871 (84) - Total Current Liabilities 322,815 320,420 (84) 0 (84) (84) 0 Non-Current Loans and financing , real estate credit notes and debentures Taxes and contributions to collect Deferred income Derivative financial instruments Deferred income and social contribution tax Obligations for purchase of assets Other liabilities Provision for contingencies Obligation related to Investment Properties – Commercial Tower 1,490,562 7,119 26,472 6,106 64,191 22,700 7,319 2,070 230,226 1,517,285 7,234 28,273 5,978 62,675 22,222 13,260 2,147 223,379 18,688 (230,226) 16,496 (223,379) Total Non-Current Liabilities 1,856,765 1,882,453 Shareholders' Equity Share Capital Expenditure on issuance of shares Capital reserve Treasury shares Revenue reserves Carrying value adjustments 1,413,854 (43,714) 21,586 (8,430) 388,812 45,283 1,413,854 (43,714) 20,999 (8,430) 391,787 45,283 0 (211,538) 0 36,277 - 0 (206,883) 0 32,022 - - 0 36,2770 - 0 32,0220 (20,469) (20,934) 72,011 71,622 (20,469) (20,934) 1,925,678 1,923,422 (175,345) (174,945) (42,831) (47,043) Minority Interest Total Shareholders' Equity Total liabilities and shareholders' equity 92,480 92,556 1,909,871 1,912,335 4,089,451 4,115,208 1,461 (3,388) 1,977 10 (333) 1,254 (3,308) 1,366 180 (318) 14,241 198,010 27,506 33,512 15,299 33,889 20,165 196,802 28,334 31,935 18,721 23,553 (273) (825) 322,456 319,511 (36,659) 4,098 6,139 910 3,423 - (36,930) 3,548 6,158 910 1,030 - 1,453,904 7,119 30,570 6,106 89,019 22,700 8,229 5,493 - 1,480,355 7,234 31,821 5,978 85,329 22,222 14,170 3,177 - (22,088) (25,284) 1,623,139 1,650,286 - 1,413,854 (43,714) 21,586 (8,430) 425,089 45,283 1,413,854 (43,714) 20,999 (8,430) 423,809 45,283 (0) 0 3,871,274 3,893,219 Cash Flow Cash Flow Statement Aliansce Financial Statements Boulevard Corporate Tower Consolidation Cross off Aliansce Managerial Consolidated 03/31/2016 03/31/2016 03/31/2016 03/31/2016 (amounts in thousands of reais) Operating Activities Net Profit/(Loss) for the period Adjustments to net profit due to: Straight line rent adjustment Depreciation and Amortization Equity Income Gain Provision (Reversal of provision) for doubtful accounts Stock Option plan Interest on Equity Monetary variation over financial debts (Gain) loss on investments (2,975) 4,255 0 1,280 (5,871) 16,926 (9,642) 7,219 587 62,842 - - (1,380) 1,550 9,642 1,186 0 (1,573) - (7,251) 18,476 8,405 587 61,269 - (5,000) 128 1,517 2,192 0 (20) (5,000) 128 3,689 Funds from profits 65,731 6,447 9,405 81,583 Decrease (increase) in assets Accounts receivable Other credits Taxes recoverable 10,605 7,987 (2,260) 4,878 - - 354 666 (362) 50 - 10,959 8,653 (2,622) 4,928 - Increase (decrease) in liabilities Suppliers Obligation related to Investment Properties – Commercial Tower Collectable taxes and contributions Other obligations Deferred income 10,342 (6,130) 7,651 6,847 3,775 (1,801) (6,847) (6,847) - 1,920 206 1,286 (123) 550 5,415 (5,924) 8,937 3,652 (1,251) (18,748) - (1,374) (20,122) 67,930 (400) 10,305 77,835 (400) (32) (13,059) 9,534 27,531 (3,818) (585) - 400 - 1 (1,321) (7,838) (3,970) (0) (15) - (31) (14,380) 1,696 23,561 (3,818) (600) - 19,171 400 (13,144) 6,427 Increase in capital - - - - Paid dividends - - - - Interest payment loans and financing / real estate credit note - - - - Principal payment loans and financing / real estate credit note (46,086) - 1,740 (44,346) Structuring costs - loans and financing / real estate credit note (31,593) - 160 (31,433) - - - - (9,126) - 0 (9,126) Payment of structuring cost - Debentures - - - - Funding of loans and financing - - (136) (136) Issuance of loans and financing - - - - Issuance of Debentures - - - - Share buyback - - - - (86,805) - 1,764 (85,041) 295 - (1,075) (779) 15,720 15,425 - 1,093 2,167 16,813 17,592 295 - (1,074) (779) Earn Out Acapurana Provision for impairment loss on assets Fair value of financial derivatives instruments Gain on Dilution of Interest - fair value Deferred income and social contribution tax Taxes paid Net Cash Used in Operating Activities Investtment Activities Acquisition of properties for investment - Commercial Tower Acquisition of property, plant and equipment Acquisition of properties for investment - Shopping Sale of investment in properties Decrease (increase) in real estate assets Sale of investments Reduction (increase) in securities Obligation for purchase of assets Acquisition of intangible assets Aditional acquisition of non-controlling interest Receipt of Interest on Capital Net Cash Used in Investment Activities Financing Activities Interest payment of debentures Principal payment of debentures Net Cash Used in Financing Activities Net change in Cash and Cash Equivalents Cash and Cash Equivalents at the end of the Period Cash and Cash Equivalents at the beginning of the Period Net change in Cash and Cash Equivalents Comparison of the consolidated accounting and managerial financial statements for the periods ended March 31, 2015 and 2016: Consolidated Financial Statements 1Q16 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Gross revenue from rental and services 130,538 127,740 2.2% (13,148) (10,935) 20.2% Net revenues 117,390 116,805 0.5% Cost of rentals and services (31,017) (31,195) -0.6% 86,373 85,610 0.9% (12,164) (17,238) -29.4% (25,979) (22,195) 17.1% 9,642 5,748 67.7% (1,143) (916) 24.7% 5,316 125 4152.8% (69,757) (60,805) 14.7% 4,452 7,567 -41.2% Current income and social contribution taxes (4,396) (6,520) -32.6% Deferred income and social contribution taxes Taxes and contributions and other deductions Gross income Operating income/(expenses) Administrative and general expenses Equity income Depreciation and Amortization expenses Other operating income/(expenses) Financial income/(expenses) Net income before taxes and minority interest (1,516) 1,293 n/a Net income/(loss) for the period (1,460) 2,340 n/a Income attributable to: Controlling Shareholders Minority Shareholders Net income/(loss) for the period (2,975) 1,515 (1,460) (690) 3,030 2,340 331.2% -50.0% n/a Managerial Financial Information 1Q16 1Q16/1Q15 Δ% 1Q15 (Amounts in thousands of Reais, except percentages) Gross revenue from rental and services Taxes and contributions and other deductions 146,012 - 135,083 - 8.1% 22.5% (14,028) - (11,455) - Net revenues 131,984 - 123,628 - 6.8% Cost of rentals and services (43,079) - (36,579) - 17.8% Gross income Operating income/(expenses) Administrative and general expenses Depreciation and Amortization expenses Other operating income/(expenses) Financial income/(expenses) Net income before taxes and minority interest 88,905 - 87,048 - 2.1% (17,550) - (23,155) - -24.2% (18,820) (19,147) -1.7% (1,144) (911) 25.5% 2,414 - (3,097) - n/a (58,875) - (52,303) - 12.6% 12,480 - 11,591 - 7.7% Current income and social contribution taxes (5,530) - (7,619) - -27.4% Deferred income and social contribution taxes (3,689) - (702) - 425.5% Net income for the period 3,261 3,270 -0.3% Income attributable to: Controlling Shareholders 1,280 1,787 -28.4% Minority Shareholders 1,980 1,483 33.6% Net income for the period 3,261 3,270 -0.3% This report may contain forward-looking statements that are subject to risks and uncertainties because they are not historical facts, but reflect the Management’s beliefs and expectations as well as information available at the time. Most of these statements are based on current expectations and projections regarding future events and financial trends that impact or may impact our business and which may or may not materialize. Many factors may negatively affect our results, as contained in our forward-looking statements. Said statements include information related to results and projections, strategies, financial planning, competitive positioning, the sector environment, potential growth opportunities and competition effects. Said estimates and projections refer only to the date on which they were made and we undertake no responsibility for updating or revising any estimates due to new information, future events or other factors, subject to applicable regulations.