Earnings Release

Resultados do
1º trimestre de 2012
Earnings Release
1Q14
Investor Relations:
Frederico Villa
CFO and IRO
1Q14 Conference Call:
English
Derek Tang
Manager
May 7th, 2014
11:00 a.m. (US ET)
Tel: +55 11 3127-4971
Renato Campos
Trainee
Portuguese
Fernanda Sallum
March 7th, 2014
10:00 a.m. (US ET)
Tel: +55 11 3127-4971
[email protected]
Tel: +55 21 3138-9900
Fax: +55 21 3138-9901
1
A BRMALLS REPORTS RESULTS FOR THE FIRST QUARTER OF 2014
Rio de Janeiro, May 6, 2014 – BRMALLS Participações S.A. (BM&FBovespa: BRML3), the largest integrated shopping mall company in
Brazil, announces today its results for the first quarter of 2014 (1Q14). BRMALLS has a portfolio of 49 malls, comprising 1,637.0
thousand m² of gross leasable area (GLA) and 965.1 thousand m² of owned GLA. At the end of 1Q14, BRMALLS had 3 greenfield
projects and 8 expansion projects in development that, once inaugurated, will increase our total GLA to 1,868.4 thousand m² and owned
GLA to 1,099.7 thousand m². This represents a 14,3% and 14,5% growth, respectively, from the portfolio in the end of 1Q14. BRMALLS is
the only shopping mall company in Brazil with a nationwide presence that caters to consumers from all income segments. The Company
provides management and leasing services for 45 malls.
Highlights of the First Quarter of 2014 and Events After the Reporting Period:
• Net revenue of R$322.4 million, increasing 11.2% from the prior-year period.
• NOI of R$294.6 million, increasing 11.3% from 1Q13. NOI margin in the period was 90.6%, higher than the 90.3%
margin of 1Q13.
• Adjusted EBITDA of R$254.3 million, up 14.4% on 1Q13. The adjusted EBITDA margin reached 78.9%, an increase
of 230bps from the prior-year period.
• Adjusted FFO in the quarter was R$79.9 million, compared to R$91.9 million in 1Q13.
• Net Income in the quarter was R$53.8 million, impacted by the provision of a non-cash deferred tax due to the
reversal of depreciation and amortization of the fiscal goodwill.
• Same-store sales grew by 7.6%, while same store rent increased by 8.7%.
• Tenants' occupancy cost was 11.1%, which represents a decrease of 0.2 p.p. from the prior-year period and below
the 11.2% registered in 1Q12.
• Our malls ended the first quarter of 2014 with an occupancy rate of 97.6%. Of the 50 malls in which we held interest
in 1Q14, 33 registered occupancy rates of over 98%.
• In 1Q14, we divested a 49% interest in the mall Ilha Plaza Shopping for R$120.8 million. We also divested our entire
interests in Shopping Pátio Belém for R$45.7 million and in Shopping Metrô Tatuapé for R$20.8 million.
• After the close of the reporting period, we also divested our entire interest in Big Shopping for R$11.4 million.
• Also after the reporting period, we inaugurated the expansion of Shopping Piracicaba and concluded the expansion
of Shopping Recife. These two expansion projects combined added over 19,121 m² in total GLA and 6,876 m² in
owned GLA. We estimate that these two expansion projects will generate R$7.6 million in stabilized NOI for BRMALLS.
• In 1Q14, we issued R$403.2 million in Real Estate Certificates (CRIs) in three series, the first at a rate of
IPCA+6.34% (in line with the government rate at that date) with a term of 10 years, the second at a rate of
IPCA+6.71% with a term of 12 years and the third at a rate of IPCA+7.04 % with a term of 15 years.
1
Financial Highlights (R$ 000) - Adjusted Financial Information
Net Revenues
Sales Expenses
Sales Expenses (% of Gross Revenues)
S, G & A Expenses
S, G & A Expenses (% of Gross Revenues)
NOI
margin%
Gross Profit
margin %
EBITDA
Adjusted EBITDA
margin%
Net Income
Adjusted Net Income
margin %
FFO
Adjusted FFO
margin %
1Q14
322,421
11,778
3.4%
46,561
13.4%
294,629
90.6%
291,882
90.5%
252,203
254,316
78.9%
53,751
77,229
24.0%
56,411
79,890
24.8%
1Q13
290,039
10,850
3.5%
42,828
13.6%
264,790
90.3%
261,391
90.1%
220,082
222,310
76.6%
59,385
89,352
30.8%
61,972
91,940
31.7%
%
11.2%
8.6%
-0.1%
8.7%
-0.2%
11.3%
0.3%
11.7%
0.4%
14.6%
14.4%
2.3%
-9.5%
-13.6%
-6.9%
-9.0%
-13.1%
-6.9%
1Q14
2Q12
1,635,156
960,424
7.6%
5,086
1,124
8.7%
88
105
11.1%
6.9%
4.2%
97.6%
2.5%
4.0%
6.8%
20.0%
10.6%
1Q13
2Q11
1,620,627
934,912
7.5%
4,638
1,167
11.1%
85
100
11.3%
6.8%
4.5%
97.9%
1.8%
4.3%
5.5%
21.1%
19.3%
%
%
0.9%
2.7%
0.1%
9.7%
-3.7%
-2.4%
3.6%
5.0%
-0.2%
0.1%
-0.4%
-0.3%
0.7%
-0.3%
1.3%
-1.1%
-8.7%
1H12
1Q14
2Q12
459,540,434
16.82
19.26
8,871
52.2
9,053
2.27
4,047.3
0.64
0.17
0.17
17,407,030
1Q13
2Q11
457,054,762
26.11
24.66
11,269
82.7
9,183
2.02
3,702.3
0.58
0.20
0.20
16,187,581
%
%
0.5%
-35.6%
-21.9%
-21.3%
-36.9%
-1.4%
12.4%
9.3%
10.7%
-14.0%
-13.6%
7.5%
1H12
Operating Highlights
Total GLA (m²)
Owned GLA (m²)
Same Store Sales
Total Sales (R$ million)
Sales per m²
Same Store Rent
Rent per m² (monthly average)
NOI per m² (monthly average)
Occupancy Cost (% of sales)
(+) Rent (% of sales)
(+) Condominium and Marketing expenses (% of sales)
Occupancy (monthly average)
Net Late Payments
Late Payments - 30 days (monthly average)
Tenant Turnover
Leasing Spread (renewals)
Leasing Spread (new contracts)
Market Indicators
Number of Shares (-) treasury stock
Average Share Price (R$)
Share Price - end of period (R$)
Market Value - end of period (R$ million)
Average Daily Traded Volume (R$ million)
Average Number of Trades
Exchange Rate (US$) - end of period
Net Debt (R$ million)
NOI per share
Adjusted Net Income per share
Adjusted FFO per share
Investment Property (R$ million)
2
Management Comments:
BRMALLS started 2014 posting good results and relevant accomplishments that are in line with our strategy.
Even though the results were impacted by the Easter calendar, we managed to maintain our operational
indicators at stable and consistent levels. We announced divestments in three assets, the launching of a new
expansion project and the issuance of a CRI (Real Estate Certificate).
Our same store sales (SSS) grew 7.6%, an increase of 10bps over 1Q13. Same store rent (SSR) was the most
affected by the seasonal effect of Easter calendar but still managed to grow 8.7%. We were able to reduce our
occupancy costs by 20bps in relation to 1Q13 and 10bps in relation to 1Q12 while increasing the rent share on
occupancy cost by 10bps.
When comparing our financial indicators with 1Q13, we recorded a 11.3% growth in NOI, totaling R$294.6 million
with a 90.6% margin – 30bps higher than the 1Q13 margin. Same mall NOI grew 11.3%. Our adjusted EBITDA
summed up R$254.3 million growing 14.4% with a 78.9% margin – a notable 230bps over 1Q13.
We leased a total of 269 contracts in the quarter, a 40.8% increase over 1Q13. When it comes to our acquired
malls since 2006, we registered a NOI that was 29.9% higher than our projections for the quarter. Also in 1Q14
we hosted the 1st BRMALLS Home Appliance Fair, counting on several renowned retail names to provide
excellent deals for our consumers. The 20 participant malls increased their footfall by an average of 7.0%. Some
stores reported up to 100% sales growth. This initiative contributed to mitigate the Easter effects on our results.
As for the events that happened after the reported quarter, we highlight the opening of Shopping Piracicaba
expansion, adding 16.2 thousand m² of total GLA and 6.0 thousand m² of owned GLA to our portfolio. Also as a
post 1Q14 event, we concluded the expansion of Shopping Recife, adding 3.0 thousand m² of total GLA and 0.9
thousand m² of owned GLA. Both expansions shall generate R$7.6 million of stabilized NOI.
We announced the expansion of Campinas Shopping that will add 4.9 thousand m² of total and owned GLA to
our portfolio. We now have 6 expansion projects in our pipeline.
In line with our strategy of selling our minority stakes in malls that we do not manage, in 1Q14, we divested our
entire interest in Shopping Metrô Tatuapé, Shopping Pátio Belém and, after 1Q14, Big Shopping. We also sold a
49% interest in Shopping Ilha Plaza. These divestments lead to a reduction of 16.6 thousand m² of owned GLA
and a total of R$198.7 million.
We remain optimistic about 2014 even with the uncertainties brought by the big events taking place throughout
the year. We will open the last of three expansion expected for 2Q14: São Luís Shopping. We will open Shopping
Vila Velha in 3Q14, our largest development project, with almost 70.0 thousand m² of total GLA. We will keep
focus on reducing and maintaining common costs while working to improve our processes and systems in order
to increase our productivity.
3
Except where stated otherwise, the following financial and operating information is presented on a consolidated basis and in Brazilian Real (R$) and the comparisons are with the first
quarter of 2013. The financial information is presented in accordance with the practices adopted in Brazil based on the pronouncements issued by the Accounting Pronouncements
Committee (CPC) and the standards approved by the Securities and Exchange Commission of Brazil (CVM) and the International Financial Reporting Standards (IFRS), except the
effects from the adoption of the pronouncements CPC 19 (R2) and CPC 36 (R3) – IFRS 10 and 11.
Therefore, the adjusted financial information presented herein reflects the proportional consolidation of the jointly controlled companies, as presented prior to the adoption of said
standards, since it is considered by the management of the Company as the best way to analyze its operations.
The adjusted financial information was not audited and/or reviewed by the independent auditors and the reconciliations with the reviewed financial information in accordance with the
applicable accounting practices are available at the end of this document
MANAGEMENT COMMENTS ON THE 1Q14 RESULTS
Gross Revenue:
Gross revenue amounted to R$348.6 million, growing by 10.9% from
the year-ago period. Gross revenue growth in the first quarter is
basically explained by the following factors:
Gross Revenues Growth (R$ thousand) Adjusted Financial Information
10.9%
348,648
314.378
Base Rent:
Base rent in 1Q14 was R$196.0 million, increasing by R$17.2 million
or 9.6% from the same period last year. Base rent growth was mainly
driven by the higher leasing spread rates captured by the company in
recent years and by the increases pegged to inflation. In 1Q14, same
store rent grew by 8.7% and the effect from rent straightlining
generated a gain of R$5.7 million.
1Q13
Key Money
Key money amounted to R$15.8 million in 1Q14, which represents
growth of 15.2% or R$2.1 million from the same quarter last year. Key
money growth was mainly driven by the increased leasing activity in
the period.
1Q14
Overage Rent
Revenue from overage rent amounted to R$16.5
million, or 0.4% more than in 1Q13.
Gross Revenues Breakdown (R$ thousand) - Adjusted Financial Information
1Q14
Base Rent
1Q13
%
195,992
178,805
Overage Rent
16,476
16,411
0.4%
Mall & Media
34,855
30,010
16.1%
Parking
59,366
51,521
15.2%
Services
23,321
21,006
11.0%
Key Money
15,817
13,732
15.2%
Transfer Fee
1,605
1,564
2.6%
Others
1,216
1,328
-8.4%
348,648
314,377
10.9%
Gross Revenue
9.6%
4
Parking
Parking revenue increased by R$7.8 million or 15.2% from
1Q14 to reach R$59.4 million in the quarter. Growth in the
period was driven by higher vehicle traffic at most malls and
by the parking rate increases implemented in the period.
Parking NOI was R$50.2 million, growing by R$10.2 million
or 25.7%, which represents a margin of 84.6%.
Transfer Fees
Transfer fees amounted to R$1.6 million, increasing by 2.6%
from 1Q13.
Service Revenue
Service revenue amounted to R$23.3 million, increasing by
11.0% or R$2.3 million from the year-ago period.
Parking NOI Evolution (R$ thousand) Adjusted Financial Information
25.7%
50,246
39,987
1Q13
1Q14
Mall & Media
Mall & Media revenue was R$34.9 million, increasing
16.1% from 1Q13. This growth was partially due to
shopping malls being increasingly used as an advertising
alternative.
Gross R
Parking
Services
GrossGross
Revenues
Breakdown
1Q14 - Adjusted
Information
Revenues
Breakdown
1Q14 Financial
- Adjusted
Financial Information
0.5%
0.4% 0,5%
0,4%
56.2%
4.5%
56,2%
4,5%
70,9%
70.6%
6,7%
6.7%
Parking
Services
Key Money
Others
Transfer Fee
Base Rent
Key Money
Others
Transfer Fee
Rent
Overage Rent
Mall & Media
17,0%
16.9%
10,0%
10.0%
4.7%4,7%
5
Net Revenue:
Net Revenues Growth (R$ thousand) Adjusted Financial Information
In the first quarter of 2014, net revenue amounted to
R$322.4 million, increasing by R$32.4 million or 11.2% from
1Q13
11.2%
322,421
290,039
Costs:
1Q13
1Q14
Costs with rent and services amounted to R$30.5 million in the quarter, increasing by 6.6% from R$28.6 million in the yearago period. The variation in costs was mainly due to the following factors:
Personnel Costs
Personnel costs increased by 0.6% from the same period last year.
Common Costs
We achieved an improvement in the efficiency of our common costs in the quarter, which decreased by 26.8% to R$7.0
million.
NOI:
NOI amounted to R$294.6 million in 1Q14, increasing by R$29.8 million or 11.3% from the year-ago quarter. NOI margin
stood at 90.6% in the period.
NOI Growth (R$ thousand) - Adjusted
Financial Information
NOI Reconciliation (R$ thousand) - Adjusted Financial Information
11.3%
1Q14
1Q13
%
Gross Revenue
348,648
314,378
10.9%
(-) Services
(23,321)
(21,006)
11.0%
(-) Costs
(30,539)
(28,648)
6.6%
2,113
2,228
-5.2%
(+) Araguaia Debenture
(-) Presumed Credit PIS/COFINS
NOI
Margin %
(2,272)
(2,161)
294,629
264,790
5.1%
294,629
264,790
11.3%
90.6%
90.3%
0.3%
1Q13
1Q14
6
Same-property NOI grew by 11.3% compared to 1Q13. The 43 malls managed by BRMALLS, in which we hold an average
interest of 96.6%, accounted for 63.2% of total NOI in the quarter.
NOI* and Total Tenants´ Sales by Mall (R$ million) - Adjusted Financial Information
NOI 1Q14
Sales 1Q14
1 Plaza Niterói
30,262
231,096
2 Shopping Tijuca
23,673
192,332
3 NorteShopping
20,239
305,083
4 Shopping Tamboré
15,860
134,383
5 Center Shopping Uberlândia
13,582
149,827
6 Catuai Shopping Londrina
12,570
143,791
7 Mooca Plaza Shopping
9,946
110,359
8 Shopping Estação
9,029
90,010
9 Shopping Recife
9,025
307,049
8,905
85,542
Others
141,538
3,336,848
Total
294,629
5,086,319
10 Shopping Estação BH
Same Mall NOI Growth (R$ thousand) Adjusted Financial Information
11.3%
293,112
263,433
1Q13
1Q14
* NOI considers straight-lining
Selling, General and Administrative Expenses:
SG&A expenses came to R$46.6 million in 1Q14, increasing by 8.7% from the year-ago quarter. Considering, the SG&A as a
percentage of gross revenue, it fell 0.2 p.p in the same period, reaching 13.4% in 1Q14.
Selling Expenses
Selling expenses amounted to R$11.8 million in 1Q14, increasing by 8.6% from the prior-year period.
General and Administrative Expenses
Gross Revenues Breakdown 1Q13 - Adjusted Financial Information
G&A expenses amounted to R$34.8 million in 1Q14, increasing by 8.8% from the year-ago quarter, and below the variation of
10.9% in gross revenue
of the same period
0.5%
56.9%
0.4%
4.4%
71.6%
6.7%
e
ent
ia
Depreciation and Amortization:
Given the adoption of the pronouncements of the Accounting Pronouncements Committee (CPC), in accordance with CVM
16.4%603, we no longer depreciate our investment properties, which are now booked at fair value. We also no longer
Resolution
amortize the goodwill generated by acquisitions. We only consider buildings, improvements and equipment and the facilities of
the head office, which are depreciation expenses that do not5.2%
generate relevant impacts.
9.5%
In 1Q14, depreciation expenses amounted to R$122 thousand, in line with the same quarter last year. Amortization in the period
amounted to R$2.5 million.
7
Other Operating Revenue:
Other operating revenue was R$6.9 million, which represents growth of R$5.4 million from the prior-year quarter. The result is
primarily due to the divestment of assets in the period.
Investment Properties:
Investment properties comprise sites and buildings in shopping malls held to earn rent and/or for capital appreciation purposes,
and are recognized at their fair value. They are appraised by internal specialists using a proprietary model based on their history
of profitability and discounted cash flow at market rates. At least once every six months on the balance sheet dates we carry out
reviews to assess changes in the balances recognized. Changes in fair value are accounted for directly in the income statement.
The Company has a quarterly process to monitor events that may indicate the need to review the estimates of fair value, such as
project openings, the acquisition of additional interests or divestment of partial interests in malls, significant variations in the
performance of malls in comparison with the respective budgets, changes in the macroeconomic scenario, etc. If such indications
are identified, the Company adjusts its estimates to reflect any variations in the result of each period.
EBITDA:
Adjusted EBITDA amounted to R$254.3 million in 1Q14, representing an increase of 14.4% from R$222.3 million in 1Q13.
Adjusted EBITDA margin was 78.9%, or 2.3 p.p. higher than in the same quarter a year earlier.
Adjusted EBITDA Growth (R$ thousand)
- Adjusted Financial Information
Adjusted EBITDA Growth (R$ thousand) - Adjusted Financial Information
1Q14
1Q13
%
Net Revenue
322,421
290,039
11.2%
(-) Costs and Expenses
(79,760)
(74,064)
7.7%
2,660
2,587
2.8%
6,882
1,520
352.8%
252,203
220,082
14.6%
(+) Depreciation and Amortization
(+) Other Operating Revenues
EBITDA
(+) Aruaguaia Debenture
Adjusted EBITDA
Margin %
2,113
2,228
-5.2%
254,316
222,310
14.4%
78.9%
76.6%
2.3%
14.4%
254,316
222,310
1Q13
1Q14
8
Financial Income (Expenses)
In 1Q14, the Company recorded a financial result of (R$118.5
million). Financial income in the quarter amounted to R$228.3
million, while financial expenses were R$346.7 million. The
financial expense in the period was influenced primarily by the
higher interest on loans and financings and the shift in the swap
curve. Excluding the non-cash effects from the adjustment of
swaps to fair value and exchange rate variation, the net financial
expense with cash effects in 1Q14 was (R$139.8 million). The
most significant factors impacting the financial results are
described below:
Financial Result (R$ thousand) - Adjusted Financial Information
Revenues
1Q14
Financial Investments
1Q13
13,286
%
10,546
26.0%
FX Variation
113,762
41,591
173.5%
Swap Curve
88,551
224,592
-60.6%
Swap mark to market
10,781
22,226
-51.5%
1,870
2,674
-30.1%
228,250
301,629
-24.3%
Others
Total
Expenses
Interest
1Q14
1Q13
%
(137,436)
(118,741)
15.7%
FX Variation
(77,453)
(26,068)
197.1%
Swap Curve
(103,321)
(211,802)
-51.2%
(25,703)
(67,863)
-62.1%
(2,797)
(4,035)
-30.7%
Total
(346,710)
(428,509)
-19.1%
Financial Result
(118,460)
(126,880)
-6.6%
Cash Financial Result
(139,847)
(96,766)
44.5%
Swap mark to market
Others
Interest Expenses and Monetary Variation
Exchange Variation
Financial investments generated income of R$13.3 million.
Meanwhile, interest expenses amounted to R$137.4 million,
increasing by 15.7% or R$18.7 million from 1Q13. The higher
interest expenses are explained by the growth of 17.7% in the
company's gross debt to R$5.0 billion, compared to R$4.2
billion in 1Q13, as well as higher interest rates and inflation.
During 1Q14, the Brazilian Real appreciated by 3.5%
against the U.S. Dollar (PTAX), which led to a non-cash
gain of R$36.3 million.
Swap Curve
The depreciation in the U.S. Dollar against the Brazilian
Real in the period, combined with higher interest rates, led
to a net financial expense of swaps of R$14.8 million.
Net Income:
Adjusted Net Income Growth (R$ thousand)
- Adjusted Financial Information
In the first quarter of 2014, net income amounted to R$53.8
million. The biggest impacts on net income in the period were
caused by two noncash effects described below:
89,352
-13.6%
FX variation generated a positive impact of R$36.3 million due to
the appreciation of the Brazilian Real against the U.S. Dollar,
which generated non-cash gain on the principal of our perpetual
debt. Net income for the period was also impacted by the
provision of a non-cash deferred tax due to the reversal of
depreciation and amortization of the fiscal goodwill, recognized in
antecipation in this quarter.
Adjusted for non-cash effects, net income amounted to R$77.2
million.
77,229
1Q13
1Q14
Adjusted Net Income Reconciliation (R$ thousand)
1Q14
1Q13
%
Net Income
53,751
59,385
-9.5%
(+) FX Variation
(36,309)
(15,523)
133.9%
(+) Swap mark to market
14,922
45,638
(+) Non-cash taxes adjustment
44,865
(148)
Adjusted Net Income
77,229
89,352
-13.6%
24.0%
30.8%
-6.9%
Margin %
-67.3%
-
9
Adjusted Funds from Operations:
FFO amounted to R$56.4 million in 1Q14. Adjusted FFO, which excludes non-cash effects such as exchange variation, gain/loss
from the adjustment to fair value of swap instruments and the gain from the reappraisal of investment properties, amounted to
R$79.9 million in 1Q14, compared to R$91.9 million in 1Q13. Adjusted FFO margin in 1Q14 was 24.8%.
AFFO Growth (R$ thousand) - Adjusted
Financial Information
FFO Reconciliation (R$ thousand) - Adjusted Financial Information
Net Income
(+) Depreciation and Amortization
1Q14
1Q13
%
53,751
59,385
-9.5%
2,660
2,587
2.8%
FFO
56,411
61,972
-9.0%
(+) FX Variation on Perpetual Bond
(36,309)
(15,523)
133.9%
(+) Swap mark to market
14,922
45,638
-67.3%
(+) Non-cash Taxes Adjustment
44,865
(148)
Adjusted FFO
79,890
91,940
-13.1%
Margin %
24.8%
31.7%
-6.8%
-13.1%
91,940
79,890
-
1Q13
1Q14
Capital Expenditure
In 1Q14, BRMALLS invested R$74.2 million, which was allocated as follows:
Greenfield Projects
The amount of R$17.5 million was invested in the
greenfield projects in our pipeline.
Expansions and Renovations
The amount of R$52.5 million was invested in expansion
and renovation projects in 1Q14, most of which was
allocated to our pipeline of expansion projects at the malls
Shopping Recife, Shopping Piracicaba and Shopping São
Luís.
CAPEX Total
Others
The amount of R$4.2 million was invested in technology
and internal controls aimed at improving processes and
capturing economies of scale.
5,6%
Expansions and
Renovations
23.7%
Greenfield Projects
Others
70.7%
10
Cash and Debt (Adjusted Financial Information):
Gross debt increased by 17.7% in relation to the position at the close of 1Q13.
%
6.0%
3.5%
0.6%
1.5%
0.1%
4.3%
%
5.7%
The cash position ended 1Q14 at R$904.5 million, increasing by 121.4% from
4Q13 and 79.7% over 1Q13.
Debt Indices (% of the total)
IPCA,
20.9%
Net debt ended 1Q14 at R$4.0 billion, increasing by 9.3% from the end of 1Q13
and decreasing by 7.1% from the end of 4Q13. We plan to maintain a long-term
debt profile, with 88.1% of gross debt classified as long term and an average debt
term of 10.5 years.
Fixed,
0.7%
7.1%
1.2%
2.1%
0.7%
9.1%
.6%
.5%
In 1Q14, we issued R$403.2 million in Real Estate Certificates (CRIs) in three
series, the first at a rate of IPCA+6.34% (matching the government rate) with a
term of 10 years, the second at a rate of IPCA+6.71% with a term of 12 years and
the third at a rate of IPCA+7.04 % with a term of 15 years. Out of the total amount
raised, approximately R$185.0 million were used towards the pre-payment of
promissory notes.
Main Indicators (R$ thousand)
Cash Position
Average Remuneration
Gross Debt (R$ thousand)
1Q14
1Q13
904,506
503,395
101.5%
101.9%
4,951,758
4,205,657
10.5
11.9
IGPM + 5,7%
IGPM + 5.6%
Duration (years)
Average Cost
Net Debt
4,047,252
3,702,262
Net Debt / annualized EBITDA
3.98
4.16
Net Debt (ex-perpetuals) / annualized EBITDA
3.01
3.21
annualized EBITDA/Net Financial Expenses
2.17
1.89
Gross Debt / annualized EBITDA
4.87
4.73
IGP-M,
4.2%
TR, 40.3%
CDI,
33.9%
Exposure over the next 5 yearas by Index
(Debt and Swaps)
TJLP,
0.1%
CDI,
29.8%
TR, 35.9%
Fixed,
1.2%
IGP-M,
5.4%
805
Debt Amortization Schedule (R$ million) - Adjusted Financial Information*
427
401
977
430
325
275
IPCA,
27.6%
295
270
246
223
207
72
9.5%
3.9%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026 and
ahead
7.3%
3.6%
*The schedule considers the liability management currently underway extending the following debt: Itaú - CCB (xv) .
6.9%
11
Operational Indicators:
NOI per m² (R$)*
NOI per m²
127
123
100
103
104
110
109
100
105
The mall portfolio registered average monthly NOI per m² of
R$105 in 1Q14, increasing 5.0% from the year-ago period.
Considering the 10 malls that make the most important
contributions to NOI, average monthly NOI per m² increased
by 11.7% to R$148.
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
* NOI per m² considers straight lining
Rent per m² (R$)*
Rent per m²
In 1Q14, rent per m², including straight-lining effects,
increased by 3.6% to a monthly average of R$88.
Considering the 10 malls that make the most important
contributions, rent per m² increased by 7.2% to a monthly
average of R$125.
89
88
106
102
89
85
91
91
88
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
*Rent per m² considers straight lining
Occupancy Rate
Occupancy Rate (%)
Occupancy remained high and stable, averaging 97.6% of
total GLA in the quarter. Of the 50 malls in which we held
interests in 1Q14, 33 had occupancy rates higher than 98%.
98.3%
97.4%
Late Payments
In 1Q14, our late payment ratio (30 days) decreased by 0.3
p.p. from the prior-year quarter totaling 4.0%. Net late
payments stood at 2.5%.
97.6% 97.9%
97.9% 97.7%
97.9%
97.6%
97.6%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Late Payements(%)
4.6%
4.0%
4.3%
3.7%
3.2%
3.6%
3.1%
3.6%
4.0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
12
Occupancy Cost Breakdown (% of Sales)
Occupancy Costs
11.3% 10.5%
11.2% 10.7%
10.7% 10.1%
10.2%
9.7%
6.6%
4.6%
1Q12
6.5%
6.6%
4.4%
4.3%
2Q12
6.8%
6.3%
6.4%
3Q12
3.5%
4Q12
4.5%
1Q13
4.0%
2Q13
11.1%
6.9%
6.5%
3.7%
3Q13
Marketing and Condominium Expenses
6.5%
3.2%
4Q13
In 1Q14, occupancy costs stood at 11.1%,
decreasing by 0.2 p.p. from the prior-year
period. The reduction is explained by the 0.3
p.p. decrease in the share of occupancy costs
allocated to common costs and marketing
costs in relation to 1Q13 and by the 0.1 p.p.
increase in the share of rent costs to 6.9%. In
this way, we were able to reduce tenants'
occupancy costs and increase the share of
rent.
4.2%
1Q14
Rent
dex
Indicators Evolution
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
SSS (%)
9.1%
7.0%
6.2%
SSR (%)
11.3%
8.1%
9.0%
Sales/m²
1,002
1,071
1,064
1,425
4Q13
1Q14
7.6%
7.5%
6.2%
10.2%
11.1%
8.3%
8.1%
8.0%
7.6%
9.3%
10.4%
1,167
1,145
8.7%
1,189
1,574
1,124
Rent/m²
89
88
89
102
85
91
91
106
88
NOI/m²
100
103
104
123
100
109
110
127
105
11.2%
10.7%
10.7%
10.1%
11.3%
10.5%
10.2%
9.7%
11.1%
4.6%
4.0%
3.7%
3.2%
4.3%
3.6%
3.1%
3.6%
4.0%
Occupancy Cost (% Sales)
Late Payments (30 days)
Net Late Payments
Occupancy (%)
2.1%
1.2%
0.9%
0.9%
1.8%
1.3%
0.5%
1.5%
2.5%
97.4%
97.6%
97.9%
98.3%
97.9%
97.7%
97.6%
97.9%
97.6%
13
Sales:
Same Store Sales per Segment (1Q14 versus 1Q13)
In 1Q14, the portfolio registered total sales of R$5.1
billion, which represents an increase of 9.7% from
R$4.6 billion in the prior-year period. Same store
sales grew by 7.6% in the quarter, increasing by 0.1
p.p. from the growth rate a year earlier. The highlight
was satellite stores, which registered same store
sales growth of 8.4%.
6.8%
6.6%
8.4%
-0.4%
Anchor
Megastore
Satellites
Leisure
The Company's malls in maturation phase, such as Estação
BH, São Bernardo and Mooca, continued to post excellent
same store sales growth rates of 21.0%, 19.8% and 17.1%,
respectively.
8.8%
9.6%
Brazil's North region was the fastest growing region in our
portfolio, registering same store sales growth of 9.6% in relation
to 1Q13, followed closely by the Northeast region, which
registered same store sales growth of 8.8%.
7.5%
8.2%
7.2%
SSS (%)
% do NOI
4.0%
Analyzing by income class, the malls targeting the
upper middle and lower middle class registered the
strongest growth, with same store sales growth rates
on the prior-year quarters of 9.5% and 8.2%,
respectively.
4.3%
9.5%
51.0%
6.5%
34.9%
9.8%
8.2%
Lower-middle
Middle
Upper-middle
Upper
14
Leasing Activity:
Contract Renewals (% of GLA)
In 1Q14, the leasing spread for contract renewals was 20.0%.
The leasing spread for new contracts at existing malls was
10.6%.
33.3%
In 1Q14, 123 new stores and 75 renovations were leased.
We also signed 41 lease contracts in greenfield projects and
leased 30 stores in the expansion projects.
23.2%
26.5%
In all, we closed 269 contracts, or 40.8% more than the 191
contracts closed in the year-ago period.
16.9%
1Q
2Q
3Q
4Q
Contract Maturity Schedule (% of GLA)
Renewals Leasing Spread (%)
33.9%
37.3%
25.3%
23.3%
21.1%
14.9%
20.0%
38.4%
4.6%
1Q13
2Q13
3Q13
4Q13
1Q14
Up to 6
months
4.8%
6 - 12
months
12 - 24
months
24 - 36
months
More
than 36
months
15
M&A (Acquisitions/ Divestments of Interests) :
NOI at the malls acquired since the company's incorporation
amounted to R$179.2 million in 1Q14, surpassing by 29.9% the
NOI projected for the period.
NOI of Realized Acquisitions (R$
thousand)
29.9%
In 1Q14, we divested a 49% interest in Ilha Plaza Shopping for
R$120.8 million. We also divested our entire interests in Shopping
Pátio Belém for R$45.7 million and in Shopping Metrô Tatuapé for
R$20.8 million. These divestments reduced our total GLA by 75.1
thousand m² or 4.6% and reduced our owned GLA by 14.4
thousand m², a decrease of 1.5%.
179,172
137,911
Expansion Projects:
Projected NOI 1Q14
Actual NOI 1Q14
At the end of the first quarter, our pipeline consisted of 8 expansion projects that combined will add total GLA of 89.1 thousand
m² and owned GLA of 50.1 thousand m², which will expand our current mall portfolio by 5.4% and 5.2%, respectively.
These expansion projects will require investments of R$494.6. million, 30.6%, or R$151.2 million, of which had been disbursed
by the end of 1Q14. The projects remain on-schedule and on-budget. We will continue to analyze opportunities for creating value
at our existing assets.
Expansions Gross CAPEX Schedule (R$ million)³
Owned GLA with Expansions (m²)
50,100
1,010,523
960,424
494.6
218.1
125.3
112.0
Total
2015 onwards
2014
Total Owned GLA
Expected
1Q14
Owned GLA Expansions
Already
Disbursed until
4Q13
Owned GLA as of
1Q14
39.2
Expansions Summary
Expansions
Total GLA
% Ownership
Owned GLA
% Construction
Completion
Stabilized NOI¹ (R$
million)
Key Money² - BRMALLS
(R$ million)
IRR (real and
unlev.)
Opening Date
Leasing Status
Shopping Recife
2,938
30.8%
905
100.0%
0.6
*
14.4%
1T14
100.0%
Shopping Piracicaba
16,183
36.9%
5,972
89.0%
7.0
4.1
16.2%
2T14
98.2%
São Luís Shopping
20,767
15.0%
3,115
93.0%
2.7
1.9
16.5%
2T14
92.0%
Shopping Capim Dourado
7,508
100.0%
7,508
20.0%
8.8
6.5
14.9%
2T15
33.7%
NorteShopping
13,788
100.0%
13,788
0.0%
33.4
16.3
15.6%
2016
0.0%
Top Shopping
15,822
50.0%
7,911
31.0%
14.9
5.6
11.9%
2T15
13.5%
Campinas
4,868
100.0%
4,868
*
*
*
*
*
*
Independência Shopping
7,231
83.4%
6,034
*
*
*
*
*
*
Total
89,105
56.2%
50,100
67.5
34.4
¹BRMALLS stabilized NOI includes services revenues of the following malls: Shopping Piracicaba, Shopping Capim Dourado, NorteShopping, Top Shopping, Shopping Recife
e São
Luís Shopping.
²BRMALLS key money of the following malls: Shopping Piracicaba, Shopping Capim Dourado, NorteShopping, Top Shopping, e São Luís Shopping.
3CAPEX includes the following malls: Shopping Piracicaba, Shopping Capim Dourado, NorteShopping, Top Shopping, Shopping Recife e São Luís Shopping.
4Top Shopping's IRR, including the aquisition, was 12.5%.
*To be defined.
16
Expansion of Campinas Shopping
Launched in 1994, Campinas Shopping was named after the city when its
first expansion opened in 2002. It is located in the western region of the city
and has an estimated population of 600,000 inhabitants. The city has a great
growth potential due to the expansion of the Viracopos International Airport,
becoming one of the main airports in the country and is only 15 minutes
away from Campinas Shopping. The neighboring cities sum up around
900,000 inhabitants and the surrounding 10 municipalities increase its area
of influence, contributing towards innumerous growth drivers for the
shopping mall.
Campinas Shopping has a total GLA of 29.7 thousand m². Besides
managing and leasing the mall, we also own 100% of the asset.
With the expansion, we will add 4.9 thousand m² to its total GLA, which
includes 5 satelite stores, 3 anchor stores and a service area where Ciretran
Campinas (Government motor vehicle department) will operate. The
mallalready has a unit of Poupatempo São Paulo (expedited documents
services) and will strengthen its services mall mix even further with the
opening of Ciretran.
The expansion will consolidate the anchoring by adding the most request
fashion brands (according to the lastest Ibope survey) and hopes to bring
more than 2,000 people per day taking only the Ciretran services into
account.
Expansion of Capim Dourado
Launched in 2010, the Shopping Capim Dourado is located in Palmas,
Tocantins. The mall has become a reference when it comes to consumption
in the state of Tocantins. It’s area of influence includes not only the capital
city of Palmas, but also 12 other cities and its regional mall status will also
influence the southwest of Pará, Northeast of Mato Grosso and south of
Maranhão.
Palmas is the capital city with the highest population growth in the last
decade, 66%, and a 103% GDP growth from 2006 to 2010.
With the expansion of Capim Dourado, BRMALLS will add a total of 7.5
thousand m² of GLA, adding up to a total of 36.6 thousand m² of total and
owned GLA as well as 67 new stores and a new event courts. The expected
opening date is 2Q15.
The mall includes a strong mix of anchor stores putting together a great set of
retail brands such as Cinemark, Riachuelo, Renner, Marisa Casas Bahia,
Lojas Americanas and also national and international fashion brands.
The mall registered strong results in 1Q14 such as SSS of 12.7% and a NOI
growth of 35.4%, the highest of the company.
After the inauguration, we estimate that the project will generate around
R$8.8 million of stabilized NOI. The estimated IRR (real and unleveraged) is
14.9%.
17
Greenfield Projects
We currently have three projects under development: Shopping Vila Velha, Catuaí Shopping Cascavel and Cuiabá Plaza
Shopping.
The opening of these 3 greenfield projects in the pipeline will add 144.1 m² in total GLA and 89.2 m² in owned GLA, expanding the
portfolio by 8.8% and 9.3%, respectively. Considering the expansion and greenfield projects in progress, we estimate an increase
of 14.3% and 14.5% in total and owned GLA, respectively. The total investment to be made by the Company amounts to R$453.4
million, 20.6% of which was already disbursed by 1Q14. The average interest held by the Company in the projects is 61.9% and,
once opened, we expect them to generate owned stabilized NOI of R$87.3 million for BRMALLS.
Owned GLA to be added by Developments and
Expansions
89,211
50,100
Greenfield Gross Capex Schedule (R$ million)²
1,099,736
960,424
241.2
453.4
118.6
77.4
Total
2015 onwards
Total Owned GLA
Expected
2014
Owned GLA Development
1Q14
Owned GLA Expansions
Already
Disbursed until
4Q13
Owned GLA as of
1Q14
16.2
Greenfield Summary
% Construction
Evolution
Stabilized NOI¹ (R$ million)
34,101
70.0%
28.6
10.9
69.0%
20,668
43.5%
20.3
45,923
75.0%
34,442
10.0%
144,100
61.9%
89,211
Greenfield Summary
Total GLA
% Ownership Owned GLA
Shopping Vila Velha
68,202
50.0%
Catuaí Shopping Cascavel
29,975
Cuiabá Plaza Shopping
Total
Key Money - BRMALLS IRR (real and
(R$ million)
unlev.)
Opening Date
Leasing Status
17.9%
3T14
82.3%
13.1
13.8%
2T15
77.8%
38.4
25.4
16.1%
2015
5.2%
87.3
49.4
¹BRMALLS stabilized NOI includes services revenues.
²Capex includes: Catuaí Shopping Cascavel, and Cuiabá. CAPEX for shopping Vila Velha is included in liability on shopping center's acquisition.
18
Shopping Vila Velha
The economy of the city of Vila Velha is primarily based on tourism, the port, industry and commerce. According to IBGE, the city
holds the largest population of Espírito Santo with 415 thousand inhabitants, has a GDP per capita of R$ 13,093, besides having
the second highest Human Development Index of the state. The population of the Metropolitan Region of Vitória is of 1.7 million
inhabitants.
The mall will be located between the Juscelino Kubistchek and Luciano Neves avenues, next to the University of Vila Velha.
According to market research prepared by Gismarket, 70.0% of the population in the influence area is located in the primary and
secondary areas and 84.0% of the disposable income in the primary area of influence belongs to the A and B income class. Due
to the demand for leisure, commerce and services, the project seeks to attract the best tenants to the region.
Shopping Vila Velha will open with 68.2 thousand m² of GLA, becoming the largest mall in the state with a wide regional reach,
attracting consumers from both Vitória and Vila Velha (two of the largest cities in the state). The mall will have 13 anchor stores
and one supermarket with over 8 thousand m². The mall is already leased with both regional and national brands such as: C&A,
Renner, Riachuelo, Marisa, Lojas Americanas, Casas Bahia, Cinemark, Dadauto, Kalunga, Decatlon, Outback, Saraiva, Avenida,
Sipolatti, Camicado, Polishop, Zara among others.
19
us
Capital Markets:
BRMALLS’ common stock is traded on the Novo Mercado listing segment of the São Paulo Stock Exchange
(BM&FBovespa) under the ticker BRML3. The Company also has a Level 1 ADR program, which allows its stock to be
traded on the secondary or over-the-counter market in the United States under the ticker BRMLL, making it available to a
greater number of U.S. and international investors. BRMALLS stock is a component of the following stock indexes:
Bovespa index (IBOVESPA), Brazil Index 50 (IBrX 50) and Carbon Efficient Index (ICO2).
Regional Shareholder Distribution (03/31/2014)
Indices:
Weight
0.2%
1.5%
2.3%
9.3%
USA
BM&F Ibovespa IBOV
1.32%
Europe
BM&F Bovespa IBrX-50
1.00%
BM&F Bovespa ICO2
1.55%
Brazil
14.6%
51.7%
BM&F Bovespa IBrX
0.87%
Asia
BM&F Bovespa IGC
1.25%
Latin America
BM&F Bovespa ITAG
1.20%
Individuals
BM&F Bovespa MLC
0.91%
Others
BM&F Bovespa IMOB
21.80%
iShares MSCI Brazil
20,4%
0.86%
Source: Bloomberg (03/31/2014)
Stock Performance:
BRMALLS stock ended 1Q14 quoted at
R$19.58, a YTD increase of 14.8%, performing
better than the
-2.1% change of Ibovespa.
The average price in the period was R$17.10.
700
140
600
120
500
100
400
80
300
60
200
40
100
20
0
dez-08
Milhões
Investor Profile:
At the end of 1Q14, our investor base remained highly diversified
in terms of region of origin. Average daily trading volume was
R$53.1 million in the quarter, decreasing 35.8% from R$82.7
million in 1Q13. The average number of trades per day was 9,053.
.
0
jun-09
dez-09
jun-10
dez-10
jun-11
dez-11
Average Daily Traded Volume (30 days)
jun-12
BRML3
dez-12
jun-13
dez-13
Ibovespa
20
Our Portfolio:
At the end of the first quarter of 2014, BRMALLS held interests in 50 shopping malls, which combined have GLA of 1,635.2
thousand m² and owned GLA of 960.4 thousand m². It holds an average ownership interest in these malls of 58.7%. The
malls in which the Company holds interests of at least 50% represent 86.5% of total NOI in 1Q14, with the average interest in
these 32 malls standing at 73.5%.
Mall
Maceió Shopping
Amazonas Shopping
Shopping Paralela
Goiânia Shopping
Araguaia Shopping
São Luís Shopping
Rio Anil
Center Shopping Uberlândia
Shopping Del Rey
Independência Shopping
Shopping Sete Lagoas
Minas Shopping
Itaú Power
Estação BH
Shopping Contagem
Shopping Campo Grande
Shopping Recife
Shopping Estação
Catuaí Shopping Londrina
Shopping Curitiba
Shopping Crystal Plaza
Catuaí Shopping Maringá
Londrina Norte Shopping
Plaza Niterói
Shopping Tijuca
Norteshopping
Ilha Plaza Shopping
Fashion Mall
West Shopping
Top Shopping
Via Brasil Shopping
Casa & Gourmet
Center Shopping
Plaza Macaé
Natal Shopping
Shopping Iguatemi Caxias do Sul
Shopping Mueller Joinville
Shopping Tamboré
Shopping Metrô Santa Cruz
Campinas Shopping
Granja Vianna
Shopping Villa-Lobos
Shopping Piracicaba
Mooca Plaza Shopping
Osasco Plaza Shopping
Jardim Sul
Shopping ABC
São Bernardo Plaza Shopping
Capim Dourado
State
Total GLA
%
Owned GLA
AL
AM
BA
GO
GO
MA
MA
MG
MG
MG
MG
MG
MG
MG
MG
MS
PE
PR
PR
PR
PR
PR
PR
RJ
RJ
RJ
RJ
RJ
RJ
RJ
RJ
RJ
RJ
RJ
RN
RS
SC
SP
SP
SP
SP
SP
SP
SP
SP
SP
SP
SP
TO
34,742
34,214
39,802
22,252
21,758
34,123
37,760
52,686
37,032
23,941
17,942
35,894
32,744
33,982
34,942
39,213
68,627
54,716
63,089
22,920
11,934
32,329
32,992
44,049
35,565
77,908
21,619
14,955
39,558
18,168
30,680
7,137
13,765
22,694
26,984
30,324
27,310
49,835
19,165
29,698
29,971
26,806
27,248
41,964
13,844
30,800
46,285
42,880
29,067
1,635,156
1,635,156
54.2%
34.1%
95.0%
48.4%
50.0%
15.0%
50.0%
51.0%
65.0%
83.4%
70.0%
2.1%
33.0%
60.0%
51.0%
70.9%
31.1%
100.0%
65.1%
49.0%
70.0%
70.0%
70.0%
100.0%
100.0%
74.5%
51.0%
100.0%
30.0%
35.0%
49.0%
100.0%
30.0%
45.0%
50.0%
45.5%
10.4%
100.0%
100.0%
100.0%
77.8%
58.4%
36.9%
60.0%
39.6%
60.0%
1.3%
60.0%
100.0%
58.7%
58.7%
18,830
11,667
37,812
10,770
10,879
5,118
18,880
26,870
24,071
19,967
12,560
764
10,805
20,389
17,821
27,808
21,312
54,716
41,071
11,231
8,354
22,631
23,094
44,049
35,565
58,041
11,026
14,955
11,867
6,359
15,033
7,137
4,130
10,212
13,492
13,797
2,840
49,835
19,165
29,698
23,312
15,660
10,055
25,178
5,482
18,480
602
25,728
29,067
960,424
960,424
Services
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing
Manag./ Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Shared Manag./ Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Shared Manag./ Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Leasing
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing/CSC
Manag./ Leasing
At the end of the first quarter of 2014 the company held a 100% interest in 9 malls in its portfolio. It currently provides
services to 45 malls. Of the malls in its portfolio, the Company provides leasing services to 45 and management services to
43, while 36 are served by the Shared Services Center (CSC). The company’s malls have over 9.0 thousand stores and
receive millions of visitors each year. BRMALLS is the only shopping mall company in Brazil with malls that are located in all
five regions of the country and that target all income classes.
21
Glossary:
Adjusted EBITDA: EBITDA + Shopping Araguaia profit-sharing debenture revenues – other operating revenues from investment property.
Adjusted FFO (Funds From Operations): Adjusted net income (excluding exchange rate variations and Law 11,638 effects) + depreciation +
amortization + straight-lining effects – other operating revenues and deferred taxes from investment property.
Average GLA (Rent/m² and NOI/m²): Does not include 27,921 m² of GLA from the Convention Center located in Shopping Estação. In the
average GLA used for rent/m², we do not consider owned GLA for Araguaia Shopping, since its revenues are recognized via debenture
payments.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): refers to gross income - SG&A + depreciation + amortization.
Gross Leasable Area or GLA: Sum of all areas in a shopping mall that are available for lease, except for kiosks.
Late Payment: Measured on the last day of each month, includes total revenues in that month over total revenues effectively collected in the
same month. It does not include inactive stores.
Law 11,638: Law 11,638 was enacted with the purpose of including publicly-held Brazilian companies in the international accounting
convergence process. The 4Q08 financial and operating figures will be impacted by certain accounting effects due to the changes arising from
Law 11,638/07.
Leasing Spread: Comparison between the average rent for the new contract and the rent charged in the previous contract for the same
space.
Leasing Status: GLA that has been approved and/or signed divided by the projects total GLA.
Net Operating Income or NOI: Gross revenue (less service revenue) - costs + and presumed credit PIS/COFINS + Araguaia Debenture.
Occupancy Cost as a Percentage of Sales: Rent revenues (minimum rent + % overage) + common charges (excluding specific tenant
costs) + merchandising fund contributions. (This item should be analyzed from the tenant’s point of view.)
Occupancy Rate: Total leased and occupied GLA as a percentage of total leasable GLA.
Owned GLA: GLA multiplied by our ownership stake.
Same Mall NOI: NOI from the exact same properties in which we currently own a stake, proportional to our ownership stake in the property for
both periods.
Same store sale (SSS): Sales figures for the same stores that were operating in the same space in both periods.
Same store rent (SSR): Rent figures for the same stores that were operating at the same space in both periods.
Shopping Malls by Income Group (Brazil Criterion): The Brazil Criterion is related to the purchasing power of individuals and families and
is defined by IBOPE.
According to this criterion, our malls are divided into four categories:
• Upper: Villa Lobos, Crystal e Fashion Mall;
• Upper-middle: Goiânia, Iguatemi Caxias, Plaza Niterói, Center Shopping Uberlândia, Granja Vianna, Catuaí Londrina, Catuaí Maringá,
Mooca, Jardim Sul, Tijuca, Paralela , São Bernardo e Casa e Gourmet;
• Middle: Amazonas, Independência; Campo Grande, Sete Lagoas, Minas, Itaú Power, Estação BH, Plaza Macaé, Londrina Norte, Capim
Dourado, Curitiba, Norte Shopping, ABC, Metrô Santa Cruz, Piracicaba, Tamboré, Center Shopping, Ilha Plaza, Del Rey, Mueller, São Luís,
Recife, Natal, e Iguatemi Maceió;
• Lower-middle: Rio Anil, Campinas Shopping,TopShopping, Osasco, Araguaia, Estação, Via Brasil e West.
Tenant Turnover: sum of new contract GLA negotiated in the last 12 months – the GLA variation for unoccupied stores in the last 12 months /
average GLA in the last 12 months.
22
Income Statement (Quarter):
Income Statement (R$ thousand) - Quarter
Accounting Information
Gross Revenue
Rents
Rent straight-lining
Key Money
Key Money straight-lining
Parking
Transfer Fee
Services Provided
Others
(-)Taxes and Contributions
Net Revenue
Costs
Payroll
Services Provided
Common Costs
Merchandising Costs
Other Costs
Gross Profit
Sales, General and Administrative Expenses
Sales Expenses
Personnel Expenses
Services Hired
Other Expenses
Depreciation
Amortization
Financial Income
Financial Revenues
Financial Expenses
Revenue based on Equity Revenue
Other Operational Revenues
Operating Income
Income before Income Taxes and Minority Interest
Income Tax and Social Contribution Provision
Deferred Taxes
Minority Interest
Net Income
IFRS 10/11 Adjustments
1Q14
1Q13
%
333,911
231,242
5,797
4,033
11,221
54,903
1,550
24,120
1,045
(25,441)
308,470
(28,017)
(6,921)
(3,573)
(6,765)
(3,680)
(7,078)
280,453
(46,495)
(11,712)
(32,178)
(842)
(1,763)
(122)
(2,566)
(117,659)
227,985
(345,644)
8,314
6,881
128,806
128,806
(72,729)
10,181
(12,507)
53,751
301,225
10.9%
208,123
11.1%
8,312
-30.3%
3,687
9.4%
9,464
18.6%
47,751
15.0%
1,506
2.9%
21,272
13.4%
1,110
-5.9%
(23,588)
7.9%
277,637
11.1%
(26,450)
5.9%
(6,903)
0.3%
(3,321)
7.6%
(9,138)
-26.0%
(2,968)
24.0%
(4,121)
71.8%
251,187
11.7%
(42,323)
9.9%
(10,400)
12.6%
(31,189)
3.2%
(858)
-1.9%
124 -1521.8%
(122)
0.0%
(2,465)
4.1%
(127,006)
-7.4%
301,429
-24.4%
(428,435)
-19.3%
8,205
1.3%
1,478
365.6%
88,955
44.8%
88,955
44.8%
(24,374) 198.4%
6,681
52.4%
(11,876)
5.3%
59,385
-9.5%
1Q14
14,737
10,337
(53)
638
(75)
4,463
55
(799)
171
(786)
13,951
(2,522)
(641)
(320)
(200)
(107)
(1,254)
11,429
(66)
(66)
(11)
11
28
(801)
265
(1,066)
(8,314)
1
2,277
2,277
(1,835)
(379)
(63)
-
1Q13
13,153
8,534
257
344
237
3,770
58
(266)
218
(751)
12,402
(2,198)
(615)
(305)
(372)
(145)
(760)
10,204
(505)
(450)
(10)
(45)
126
200
(74)
(8,205)
42
1,659
1,659
(1,457)
(147)
(57)
-
Adjusted Financial Information
1Q14
348,648
241,579
5,744
4,671
11,146
59,366
1,605
23,321
1,216
(26,227)
322,421
(30,539)
(7,562)
(3,893)
(6,965)
(3,787)
(8,332)
291,882
(46,561)
(11,778)
(32,178)
(853)
(1,752)
(122)
(2,538)
(118,460)
228,250
(346,710)
6,882
131,083
131,083
(74,564)
9,802
(12,570)
53,751
1Q13
314,378
216,657
8,569
4,031
9,701
51,521
1,564
21,006
1,328
(24,339)
290,039
(28,648)
(7,518)
(3,626)
(9,510)
(3,113)
(4,881)
261,391
(42,828)
(10,850)
(31,189)
(868)
79
(122)
(2,465)
(126,880)
301,629
(428,509)
1,520
90,614
90,614
(25,831)
6,534
(11,933)
59,385
%
10.9%
11.5%
-33.0%
15.9%
14.9%
15.2%
2.6%
11.0%
-8.4%
7.8%
11.2%
6.6%
0.6%
7.4%
-26.8%
21.7%
70.7%
11.7%
8.7%
8.6%
3.2%
-1.7%
-2317.7%
0.0%
3.0%
-6.6%
-24.3%
-19.1%
352.8%
44.7%
44.7%
188.7%
50.0%
5.3%
-9.5%
23
Balance Sheet (Assets):
Balance Sheet (R$ thousand)
Accounting Information
Assets
Assets
Current Assets
Cash and cash equivalents
Accounts receivable
Securities
Swap Variation Receivable
Recoverable taxes
Advances
Other Receivable Accounts
Advanced Expenses
Total
Non current Assets
Clients
Deposits and Bonds
Deferred Income Tax and Social Contribution
Swap Variation Receivable
Advances for Future Capital Increases
Other Investments
Others
Total
Fixed Assets
Investments
Investment Property
Property, Plant and Equipment
1Q14
4Q13
IFRS 10/11 Adjustments
%
1Q14
4Q13
Adjusted Financial Information
1Q14
4Q13
%
48,277
223,454
842,833
35,178
56,488
33,644
52,518
3,504
1,295,896
70,509
320,499
319,696
54,674
100,701
32,430
42,651
2,250
943,410
-31.5%
-30.3%
163.6%
-35.7%
-43.9%
3.7%
23.1%
55.7%
37.4%
6,249
6,752
7,147
0
558
2,258
2,907
(106)
25,765
6,312
8,720
12,109
0
538
1,501
119
74
29,373
54,526
230,206
849,980
35,178
57,046
35,902
55,425
3,398
1,321,661
76,821
329,219
331,805
54,674
101,239
33,931
42,770
2,324
972,783
-29.0%
-30.1%
156.2%
-35.7%
-43.7%
5.8%
29.6%
46.2%
35.9%
173,522
46,345
79,625
229,524
40,963
462
23,943
594,383
177,501
45,695
82,117
245,049
39,069
462
25,728
615,621
-2.2%
1.4%
-3.0%
-6.3%
4.8%
0.0%
-6.9%
-3.4%
6,874
317
13,077
0
(40,963)
4
(1,079)
(21,768)
6,973
519
12,890
(1)
(39,069)
5
(2,950)
(21,633)
180,396
46,662
92,702
229,524
0
467
22,864
572,615
184,474
46,214
95,007
245,048
0
467
22,778
593,988
-2.2%
1.0%
-2.4%
-6.3%
0.0%
0.4%
-3.6%
580,773
16,527,778
584,266
16,651,002
-0.6%
-0.7%
(580,773)
879,252
(584,266)
879,040
0
17,407,030
0
17,530,042
-0.7%
10,076
10,191
-1.1%
0
0
10,076
10,191
-1.1%
Intangible
Total
16,135
17,134,762
16,360
17,261,819
-1.4%
-0.7%
16
298,494
15
294,788
16,150
17,433,256
16,374
17,556,607
-1.4%
-0.7%
Total Assets
19,025,041
18,820,850
1.1%
302,491
302,528
19,327,532
19,123,378
1.1%
24
0.9%
1.5%
3.0%
5.9%
4.9%
5.2%
2.6%
1.0%
8.4%
7.8%
1.2%
6.6%
0.6%
7.4%
6.8%
1.7%
0.7%
1.7%
8.7%
8.6%
3.2%
1.7%
7.7%
0.0%
3.0%
6.6%
4.3%
9.1%
2.8%
4.7%
4.7%
8.7%
0.0%
5.3%
9.5%
Balance Sheet (Liability):
Balance Sheet (R$ thousand)
Accounting Information
Liabilities
Liabilities
Current Liabilities
Loans and Financings
Suppliers
Taxes and Contributions
Payroll and related charges
Dividend Payment
Taxes and Contributions - Installments
Client Advances
Liability on shopping center's acquisition
Swap variation payable
Deferred Revenues
Other Account Payables
Total
Non current Liabilities
Loans and Financings
Suppliers
Provision for Fiscal Risks and other Contingent Liabilities
Taxes and Contributions - Installments
Liability on shopping center's acquisition
Swap variation payable
Deferred Taxes
Deferred Revenues
Related Parties
Other Account Payables
Total
Shareholder's Equity
Minority Interest
Capital Stock
Capital Reserves
Income Reserve
Shares in Treasury
Retained Earnings(Loss)
Equity Offering Expenses
Total Shareholder's Equity
Total Liabilities
1Q14
4Q13
586,416
72,053
61,936
23,516
144,535
20,188
10,736
172,278
23,491
50,041
2,687
1,167,877
766,580
84,892
64,071
69,169
144,535
19,871
6,028
167,982
9,168
55,529
9,303
1,397,128
4,321,951
3,506
63,750
79,437
227,102
232,097
3,269,595
85,249
86
1,545
IFRS 10/11 Adjustments
%
-23.5%
-15.1%
-3.3%
-66.0%
0.0%
1.6%
78.1%
2.6%
156.2%
-9.9%
-71.1%
-16.4%
1Q14
3,276
1,061
2,512
223
0
323
611
0
0
1,767
634
10,406
3,956,500
3,413
64,536
80,016
222,903
257,616
3,280,145
90,927
382
9.2%
2.7%
-1.2%
-0.7%
1.9%
-9.9%
-0.3%
-6.2%
-77.4%
40,115
1
8
666
0
1
244,667
8,199
(86)
28
5416.5%
(1,545)
8,284,318
7,956,466
4.1%
680,496
4,331,619
111,518
4,466,774
(20,585)
53,751
(50,727)
9,572,846
677,137
4,293,342
101,315
3,786,824
(20,585)
679,950
(50,727)
9,467,256
0.5%
0.9%
10.1%
18.0%
0.0%
-92.1%
0.0%
1.1%
19,025,041
18,820,850
1.1%
Adjusted Financial Information
4Q13
1Q14
4Q13
2,951
1,241
2,919
934
0
383
629
0
1
0
(1,041)
8,017
589,692
73,114
64,448
23,739
144,535
20,511
11,346
172,278
23,491
51,808
3,320
1,178,281
769,531
86,133
66,990
70,103
144,535
20,254
6,657
167,982
9,169
55,529
8,262
1,405,145
40,640
(1)
29
670
0
(1)
244,101
9,481
(382)
(28)
292,025
294,509
63
0
0
0
0
0
0
63
0
0
0
0
0
0
0
0
302,494
302,527
4,362,066
3,506
63,758
80,102
227,102
232,098
3,514,262
93,447
0
0
%
3,997,140
3,413
64,565
80,686
222,903
257,616
3,524,246
100,408
0
0
-23.4%
-15.1%
-3.8%
-66.1%
0.0%
1.3%
70.4%
2.6%
156.2%
-6.7%
-59.8%
-16.1%
9.1%
2.7%
-1.2%
-0.7%
1.9%
-9.9%
-0.3%
-6.9%
-
8,576,342
8,250,977
3.9%
680,559
4,331,619
111,518
4,466,774
(20,585)
53,751
(50,727)
9,572,909
677,137
4,293,342
101,315
3,786,824
(20,585)
679,950
(50,727)
9,467,256
0.5%
0.9%
10.1%
18.0%
0.0%
-92.1%
0.0%
1.1%
19,327,532
19,123,378
1.1%
25
9.0%
0.1%
6.2%
5.7%
3.7%
5.8%
9.6%
6.2%
5.9%
2.2%
1.0%
2.4%
6.3%
0.0%
0.4%
3.6%
0.7%
1.1%
1.4%
0.7%
1.1%
Cash Flow:
Cash Flow (R$ thousand)
1Q14
Earnings of the period
Adjustments to reconcile net income and cash flow from
operating activities
Depreciation and Amortization
1Q14 - IFRS 10 & 11
53,751
53,751
78,557
69,629
2,660
86,430
(13,286)
(16,752)
10,203
11,779
(9,802)
(10,329)
0
0
12,570
5,084
0
82,987
103,614
44,194
(1,972)
(1,074)
(448)
12,044
(12,927)
80,300
(46,364)
4,689
464
(806)
(17,680)
(81,047)
0
215,295
2,689
86,297
(13,099)
(16,951)
10,203
11,779
(10,181)
(10,329)
(8,314)
0
12,507
5,028
0
85,449
101,725
44,213
(1,214)
(1,254)
(650)
12,046
(12,747)
78,885
(45,653)
4,708
56
(786)
(14,721)
(79,159)
0
208,829
(365,374)
(504,889)
(2,321)
(65,524)
207,360
0
0
0
0
0
0
0
127,784
381,024
(282,370)
0
38,277
0
0
(9,147)
0
0
(359,179)
(510,038)
(2,350)
(65,313)
207,360
(5,379)
0
0
0
4,734
11,807
0
128,119
381,024
(282,035)
0
38,277
0
0
(9,147)
0
0
Net Cash generated (used) in the period
(22,295)
(22,231)
Cash and equivalents in the beginning of the period
76,821
54,526
(22,295)
70,509
48,277
(22,232)
Interest, monetary variations on borrowings
Investment earnings
Adjustment revenue straight-lining and present value adjustment
Adjustment Granted Option Plans
Adjustment fair value and derivatives result
Income Tax and Social Contribution
Gains on sales of investment property
Equity Revenue
Deferred Tax Assets - CVM 349
Minorities
Others
Variation on current capital
Accounts Receivable
Taxes Recoverable
Advances
Prepaid Expenses
Deposits and Guarantees
Financial instruments
Trade payables
Taxes and Contributions
Salaries and Social Charges
Advances from Clients
Deferred revenue
Provision for contingencies
Others
Income Tax and Social Contribution
Net Cash generated (used) in operational activities
Net Cash generated (used) in investing activities
Acquisition of Marketable Securities
Intangible assets
Investment Property Acquisition and Development
Sales of investment properties
Advancement for future capital raise
Sale of investments
Increase in capital in subsidiaries
Interest on capital received
Operations with related entities
Dividends received
Additions to deferred assets
Net Cash generated (used) in financing activities
Loans received
Loans paid
Treasury stock
Capital Raise
Dividends paid
Costs with equity offering
Payment of dividends to noncontrolling interest
Exchange variation on cash and cash equivalents
Cash and equivalents in the end of the period
26
Debt Profile:
Debt Profile (R$ thousand) - Adjusted Financial Information
Index
Rate (%)
Due
3/31/2014
12/31/2013
Short-term Debt
Banco Bradesco (ix)
TR
9,90%.
p.a.
3/25/2025
48,680
46,262
Banco Bradesco (viii)
TR
9,80%.
p.a.
6/28/2022
5,781
5,694
Banco BTG Pactual (xxvii)*
IGP-M
8,50% .
p.a.
4/20/2023
2,791
2,773
Banco do Brasil - Finame (vii)
TJLP
3,85%.
p.a.
11/15/2014
1,906
1,882
Banco do Brasil (xiv)
TR
10,20%.
p.a.
4/5/2022
4,776
5,045
Banco do Nordeste do Brasil (xxi)
Fixed
3,53%.
p.a.
3/25/2019
2,559
2,092
Banco Nacional do Nordeste (xxviii)*
Fixed
2,94%.
p.a.
12/26/2024
485
177
Banco Santander (iii)
TR
9,33%.
p.a.
10/1/2019
7,935
8,279
Banco Santander (vi)
TR
9,30%.
p.a.
12/21/2019
3,451
3,417
Banco Santander (xiii)
TR
9,34%.
p.a.
4/20/2023
8,523
8,861
Citibank (xi)
6 months Libor
1,78%.
p.a.
12/8/2014
127,689
131,512
Debentures - Series 1 (interest) (i)
CDI
0,50%.
p.a.
7/15/2014
4,191
3,641
Debentures - Series 2 (interest) (i)
IPCA
7,90%.
p.a.
7/15/2016
110,887
106,571
Debentures 2nd issue - Series 1 (xii)
CDI
0,94%.
p.a.
2/15/2017
4,498
6,037
Debentures 2nd issue - Series 2 (xii)
IPCA
6,40%.
p.a.
2/15/2019
0
14,912
Debentures 4th issue - Series 1 (xviii)
CDI
0,62%.
p.a.
4/26/2016
13,039
6,699
Itaú - CCB (xv)
TR
9,80%.
p.a.
5/13/2020
168,428
165,715
Itaú - CCB (xvi)
TR
9,80%.
p.a.
5/13/2020
4,565
4,622
Itaú - CCB (xvii)
TR
9,80%.
p.a.
5/13/2020
13,781
14,492
Itaú (iv)
TR
9,80%.
p.a.
10/19/2021
11,400
11,164
Itaú (v)
TR
9,80%.
p.a.
2/16/2023
12,235
12,111
Itaú (x)
TR
9,80%.
p.a.
2/16/2023
17,030
17,217
Promissory Notes (xxii)
CDI
0,55%.
p.a.
5/26/2014
0
174,897
Perpetual bonds (interest) (iv)
US$ Dollar
8,50%.
p.a.
-
Total Short-term Debt
15,062
15,459
589,692
769,531
Long-term Debt
Banco Bradesco (ix)
TR
9.90%
p.a.
3/25/2025
587,890
587,123
Banco Bradesco (viii)
TR
9.80%
p.a.
6/28/2022
61,812
63,830
Banco BTG Pactual (xxvii)*
IGP-M
8.50%
p.a.
4/20/2023
19,609
19,424
Banco do Brasil (xiv)
TR
10.20%
p.a.
4/5/2022
124,995
124,346
Banco do Nordeste do Brasil (xxi)
Fixed
3.53%
p.a.
3/25/2019
11,401
11,852
Banco Nacional do Nordeste (xxviii)*
Fixed
2.94%
p.a.
12/26/2024
20,506
21,216
Banco Santander (iii)
TR
9.33%
p.a.
10/1/2019
68,485
69,864
Banco Santander (vi)
TR
9.30%
p.a.
12/21/2019
21,350
22,160
Banco Santander (xiii)
TR
9.34%
p.a.
4/20/2023
107,469
109,006
Debentures - Series 2 (interest) (i)
IPCA
7.90%
p.a.
7/15/2016
199,856
192,076
Debentures 2nd issue - Series 1 (xii)
CDI
0.94%
p.a.
2/15/2017
158,705
160,969
Debentures 2nd issue - Series 2 (xii)
IPCA
6.40%
p.a.
2/15/2019
272,390
265,474
Debentures 4th issue - Series 1 (xviii)
CDI
0.62%
p.a.
4/26/2016
395,458
391,219
Itaú - CCB (xvi)
TR
9.80%
p.a.
5/13/2020
49,789
50,161
Itaú - CCB (xvii)
TR
9.80%
p.a.
5/13/2020
155,729
157,264
Itaú - CRI (xx)
TR
9.30%
p.a.
3/19/2025
542,805
529,294
Itaú (iv)
TR
9.80%
p.a.
10/19/2021
100,915
102,271
Itaú (v)
TR
9.80%
p.a.
2/16/2023
111,815
113,388
Itaú (x)
TR
9.80%
p.a.
2/16/2023
33,137
36,677
Itaú (xxii)
IPCA
6.34%
p.a.
3/7/2024
198,708
0
Itaú (xxii)
IPCA
6.71%
p.a.
2/6/2026
67,089
0
Itaú (xxii)
IPCA
7.04%
p.a.
3/7/2029
116,269
0
Perpetual bonds (interest) (ii)
US$ Dollar
8.50%
p.a.
-
935,884
969,526
4,362,066
3,997,140
Short-term Debt
Total Debt
4,951,758
4,766,671
*The table above adjusted financial information of the subsidiaries considers the debt, SPE Macaé of R$22.4 million and SPE Mônaco of R$21.0 million, not presented in the
consolidated financial statements in accordance with accounting practices adopted in Brazil, due to the adoption of CPC 19 (R2) - IFRS 11, as mentioned in the introductory
paragraph.
27
Accounting Information (Quarter):
NOI Reconciliation (R$ thousand)
Accounting Information
Adjusted Financial Information
Gross Revenue
1Q14
333,911
1Q13
301,225
%
10.9%
1Q14
348,648
1Q13
314,378
%
10.9%
(-) Services
(24,120)
(21,272)
13.4%
(23,321)
(21,006)
11.0%
(-) Costs
(28,017)
(26,450)
5.9%
(30,539)
(28,648)
6.6%
2,113
2,228
-5.2%
2,113
2,228
-5.2%
(+) Araguaia Debenture
(-) Presumed Credit PIS/COFINS
NOI
Margin %
(2,272)
(2,161)
5.2%
(2,272)
(2,161)
5.1%
281,615
253,570
11.1%
294,630
264,791
11.3%
90.9%
90.6%
0.3%
90.6%
90.3%
0.2%
Adjusted EBITDA Growth (R$ thousand)
Net Revenue
Accounting Information
1Q14
1Q13
308,470
277,637
(-) Costs and Expenses
(77,200)
(71,360)
(+) Depreciation and Amortization
2,688
(+) Other Operating Revenues
6,881
240,839
EBITDA
(-) Investment Property
(+) Aruaguaia Debenture
Adjusted EBITDA
Margin %
%
11.1%
Adjusted Financial Information
1Q14
1Q13
322,421
290,039
%
11.2%
8.2%
(79,760)
(74,064)
2,587
3.9%
2,660
2,587
2.8%
1,478
365.6%
6,882
1,520
352.8%
210,342
14.5%
252,203
220,082
14.6%
-
-
2,113
2,228
242,952
78.8%
-
7.7%
-
-
-5.2%
2,113
2,228
-5.2%
-
212,570
14.3%
254,316
222,310
14.4%
76.6%
2.3%
78.9%
76.6%
2.2%
FFO Reconciliation (R$ thousand)
Accounting Information
1Q14
Net Income
(+) Depreciation and Amortization
FFO
(+) FX Variation on Perpetual Bond
53,751
1Q13
59,385
Adjusted Financial Information
%
-9.5%
1Q14
53,751
1Q13
59,385
%
-9.5%
2,688
2,587
3.9%
2,660
2,587
2.8%
56,439
61,972
-8.9%
56,411
61,972
-9.0%
(36,309)
(15,530)
133.8%
(36,309)
(15,523)
133.9%
(-) Swap mark to market
14,922
45,638
-67.3%
14,922
45,638
-67.3%
(+) Non-cash Taxes Adjustment
44,486
(295)
-
44,865
Revenue based on Equity Revenue
(8,314)
(8,205)
1.3%
Adjusted FFO
71,224
83,580
23.1%
30.1%
Margin %
(148)
-30414.2%
-
-
-14.8%
79,890
91,940
-13.1%
-
-7.0%
24.8%
31.7%
-6.8%
28