Aliansce Shopping Centers SA : Aliansce announces 3Q13 Earnings Release
11/13/2013 | 10:06pm CEST
Aliansce Reports 3Q13 Results and
Financial and Operating Highlights
Rio de Janeiro, November 13, 2013 - Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of Brazil's largest shopping mall owners, announces today its results for the third quarter of 2013. Unless stated otherwise, all operating and financial information herein is expressed in Brazilian reais and based on consolidated figures, pursuant to Brazilian Corporate Law and International Financial Reporting Standards (IFRS), in accordance with the pronouncements of the Accounting Pronouncements Committee (CPC), which are approved by the Securities and Exchange Commission of Brazil (CVM).
3Q13 highlights and recent events
The financial information highlighted below is managerial and based on the Company's consolidated financial statements.
Sales of Aliansce's malls grew by 19.8% and 20.4% year on year in 3Q13 and 9M13, respectively. Same-store sales (SSS) increased by 10.1% in 3Q13. Same-area-sales (SAS) moved up by 10.9% in the quarter, thanks to the continued improvement in the store mix in Aliansce's malls.
Net revenue totaled R$108.7 million in 3Q13 and R$320.2 million in 9M13, 18.7% up on 3Q12 and 27.2% higher than in 9M12, respectively.
Same-store rent per sqm increased by 12.8% in 3Q13. Same-store rent (SSR) posted two-digit growth for the fourth consecutive quarter, reaching 11.3% in 3Q13. Same-area rent (SAR) grew by 11.4% in the period.
NOI totaled R$94.7 million in 3Q13 and R$276.4 million in 9M13, 21.2% higher than in 3Q12 and 29.1% up on 9M12, respectively. Same-mall NOI per sqm climbed by 12.6% in 3Q13 and 12.7% in 9M13 year on year, reaching R$81.8/sqm in 3Q13 and R$80.2/sqm in 9M13.
Adjusted EBITDA was R$80.6 million in 3Q13 and R$229.4 million in 9M13, 20.1% higher than in 3Q12 and 28.9% up on 9M12. The adjusted EBITDA margin grew by 0.8 p.p. in the quarter, reaching 74.1%.
Adjusted FFO came to R$51.8 million in 3Q13 and R$156.8 million in 9M13, 14.2% up on 3Q12 and 26.8% higher than in 9M12, respectively. The adjusted FFO margin came to 47.7% in 3Q13 and 49.0% in 9M13.
The occupancy rate of the Company's portfolio was 97.3%, 0.1 p.p. up on 2Q13.
In 3Q13, CAPEX totaled R$148.4 million. In 9M13, Aliansce's total investments reached R$511.0 million.
On August 1, the Company opened the first expansion of Boulevard Shopping Campos. The estimated cap rate for the third year of expansion is 16.4%, with a real and unleveraged IRR of 20.3%.
On August 6, we announced increases of our interests in Boulevard Shopping Nações Bauru and Via Parque Shopping. Aliansce reached a 90.0% interest in Boulevard Bauru, and the investment has an expected cap rate of 9.9% for the third year, with a real and unleveraged IRR of 14.9% p.a..The Company acquired a 3.06% interest in Via Parque Shopping and now holds 72.68% of the project, with a 2014 cap rate of 9.4% and a real and unleveraged IRR of 12.1%.
On August 9, Aliansce signed for the purchase of a 40.0% interest in Shopping Parangaba. The project will be opened on November 26 with 32,328 sqm of total GLA, or 12,931 sqm of owned GLA. 92.1% of the project's GLA has already been leased, it has a cap rate of 10.1% for the third year, with a real and unleveraged IRR of 15.9% p.a..
On September 30, the Company announced to the market the conclusion of the sale of the interest held by General Growth Properties. The 39.99% interest in the capital stock was acquired by the Canada Pension Plan Investment Board (CPPIB) , by Altar Empreendimentos e Participações S.A., a company indirectly controlled by Renato Rique, and by members of the Company's senior management Henrique Cordeiro Guerra and Délcio Lage Mendes. The price per share averaged R$24.00, with a premium of 20.6% on the exchange rate of September 30.
On November 7, the Company announced to the market the opening of Parque Shopping Maceió, a joint venture between Aliansce and Multiplan Empreendimentos Imobiliários. The mall has 95.3% of its 37,600 sqm of GLA already leased. Aliansce holds a 50.0% interest in the project and expects a cap rate for the third year of 15.5%, with a real and unleveraged IRR of 18.8%.
On November 8, the Company announced to the market the sale of its 100% interest in its C&A store in Shopping Feira de Santana - BA. The sale price represents a real gain of 16.5% over CDI rate based on the acquisition price paid in August 2008, and an exit cap rate of 7.6% based on 2013 NOI.
On November 11, the Company announced to the market an agreement to purchase 10.0% interest in Boulevard Shopping Nações Bauru. The acquisition consolidates Aliansce's stake in the mall at 100%, increasing the Company's owned GLA in operation increases in 2.6 thousand sqm. The R$23.0 million points to an expected 3rd year cap rate of 9.9% and a real and unleveraged IRR of 14.9%.
To access the Earnings Release, please click here.
CONFERENCE CALL IN ENGLISH Thursday, November 14th, 2013
09:00 AM (US ET) | 12:00 PM (BR) USA (Toll Free): +1 (877) 317-6776 Other locations: +1 (412) 317-6776 Code: Aliansce Webcast: click here Replay for one week: USA (Toll Free): +1 (877) 344-7529 Other locations: +1 (412) 317-0088 Password: 10036126
CONFERENCE CALL IN PORTUGUESE Thursday, November 14th, 2013
08:00 AM (US ET) | 11:00 AM (BR) Connecting Number: +55 (11) 3127-4971 or +55 (11) 3728-5971 Code: Aliansce Webcast: click here Replay for one week: +55 (11) 3127-4999 Password: 25878607
The presentation will be available at Aliansce's IR website at least one hour before the beginning of the Conference Call.
For additional information, please contact the Investor Relations department:
About Aliansce S.A.
Aliansce Shopping Centers S.A. is one of the leading shopping center developers and manages the second largest number of shopping centers in Brazil among the publicly held companies in the sector. The Company's core business is investing in shopping centers and providing the following services: (i) management of shopping centers; (ii) lease of commercial spaces in shopping centers; and (iii) planning, developing and implementing shopping centers. The Company is a full service company operating in all of the development stages of a shopping center, such as planning and preparation of the feasibility study, development of the project, commercialization and management of the shopping center.