General Shopping e Outlets do Brasil S A : Release 4Q23

4Q23

São Paulo, March 28, 2024 - General Shopping e Outlets do Brasil [B3: GSHP3], one of the main Brazilian companies focused on the development and management of shopping centers in their different models, today announces its results for 4Q23. Except where otherwise stated, the following financial and operational information is presented on a consolidated basis and in thousands of Reais.

General Shopping e Outlets do Brasil S/A reported Gross Revenue for the fourth quarter 2023 - 4Q23 - of

R$ 52.1 million, a year-on-year increase of 7.0% compared to R$ 48.7 million in the fourth quarter 2022 - 4Q22. In 2023, Gross Revenue increased 2.8% in relation to 2022, to reach R$ 187.7 million.

Consolidated NOI in 4Q23 posted R$ 30.6 million, corresponding to a margin of 68.8% and a growth of 11.9% in relation to the R$ 27.4 million recorded for 4Q22. In 2023, Consolidated NOI stood at R$ 111.4 million, equivalent to a margin of 69.3% and growth of 1.8% compared with 2022.

Gross Profit in 4Q23 was R$ 30.4 million, a margin of 68.3% and an increase of 11.6% compared with R$ 27.2

million in 4Q22. In 2023, Gross Profit amounted to R$ 110.7 million at a margin of 68.9% and 2.4% higher relative to 2022.

The Company's Adjusted EBITDA in 4Q23 reached R$ 17.1 million, corresponding to a margin of 38.5% and a growth of 23.3% in relation to R$ 13.9 million on 4Q22. In 2023, the Adjusted EBITDA was R$ 64.6 million, representing a margin of 40.2% and a growth of 0.7% compared to 2022.

MANAGEMENT COMMENTS

The Company's management is pleased to present the operating and financial performance for the fourth quarter 2023 (4Q23) and the year 2023, shown in detail in the respective reports and statements.

We would initially highlight the increase in Gross Leasable Area in 4Q23 compared to 4Q22 due to the opening of the Outlet Premium São Paulo expansion.

Gross Revenue in 4Q23 reported a growth of 7.0% to R$ 52.1 million, weighted by 0.8% higher Rental Revenues and an increase in Services Revenue of 11.1% when compared to 4Q22. In the year 2023, Gross Revenue reached R$ 187.7 million, a year-on-year increase of 2.8%.

In terms of Same Areas performance, Same Area Rentals recorded an increase of 0.5% in 4Q23 compared to the same period in the preceding year as well as an increase in Same Area Sales of 6.1% relative to the same comparative base.

Occupancy rates reported a decrease in the quarter at 93.7% in 4Q23 against 94.4% in 4Q22.

With regards to Costs of Rentals and Services, there was an increase of 1.8% in relation to 4Q22, to a total of R$ 14.1 million, impacted by the accompanying rise in payroll costs and depreciation. When comparing the calendar years 2022 x 2023, there was an increase in Costs of Rentals and Services of 8.6% to a total of R$ 50.0 million.

The Company posted NOI of R$ 111.4 million in 2023, and an increase of 1.8% in relation to 2022, corresponding to a margin of 69.3%. In 4Q23, NOI amounted to R$ 30.6 million, equivalent to a margin of 68.8%, or an increase of 11.9% in relation to 4Q22.

On the basis of an analysis of General and Administrative Expenses, there was an increase of 20.9% in 2023 as against the preceding year, and an increase of 20.2% in 4Q23 when compared to 4Q22.

The Adjusted EBITDA in 2023 reached R$ 64.6 million, a rise of 0.7% compared to the calendar year 2022, corresponding to an Adjusted EBITDA margin of 40.2%. In 4Q23, the Adjusted EBITDA was R$ 17.1 million, growth of 23.3% in relation to 4Q22, and representing an Adjusted EBITDA of 38.5%.

The Company's Net Financial Result was largely impacted by US Dollar x Real variation, registering a negative R$ 120.2 million in 2022 against a negative R$ 46.7 million in 2023.

As a subsequent event, through a Material Fact sent on March 27, 2024, we had the sale of 31.2% of the property where Parque Shopping Barueri is located.

We would like to thank our employees, tenants, customers, and visitors for their invaluable contributions.

Marcio Snioka,

Investor Relations Officer

GROSS REVENUE

The Company's total gross revenue this quarter was R$ 52.1 million, representing a year-on-year increase of 7.0%. For 2023 as a whole, this same item recorded R$ 187.7 million, growth of 2.8% compared to 2022.

Gross revenue from rents in 4Q23 amounted to R$ 19.5 million, equivalent to 37.4% of total gross revenue and an increase of 0.8% relative to 4Q22. In 2023, this same item reported revenues of R$ 72.1 million, a decrease of 2.7% compared with 2022. This decrease largely reflects the sale of a 49.0% stake in Outlet Premium Grande São Paulo, partially offset by the inauguration of the expansion of the Outlet Premium São Paulo.

Gross revenue from services in 4Q23 totaled R$ 32.6 million, representing a growth of 11.1% in relation to 4Q22, and a total of R$ 115.6 million in 2023, a 6.6% increase compared to 2022. The key factors driving this growth was increased vehicle flows, the rise on consumption of services provided by the Company and the inauguration of the expansion of the Outlet Premium São Paulo.

TOTAL GROSS REVENUE

(R$ million)

RENTAL REVENUE

The Company's revenues from rentals amounted to R$ 19.5 million in 4Q23, these being divided between minimum rent, percentage of rentals on sales, key money and merchandising.

Revenues from minimum rentals in 4Q23 reached R$ 13.7 million, a decrease of 5.6% in relation to 4Q22. Comparing 2023 with 2022, there was a decrease of R$ 3.5 million, or 6.0%, due largely to the factors mentioned above.

Rentals as a percentage of sales rose R$ 0.6 million when comparing the two quarters. In relation to the two full calendar years, 2023 reported an increase of 20.5%.

Temporary rentals(Merchandising) in 4Q23 totaled R$ 2.7 million, an increase of 23.6% compared with 4Q22, and R$ 8.1 million in 2023, a growth of 14.4% in relation to the preceding full calendar year.

Revenues from minimum rentals were 70.5% of total rental revenue in 4Q23, while in 4Q22, they accounted for 75.2%. In 2023, revenues from minimum rentals were 77.9%, compared to 80.5% in 2022.

Rental Revenue Breakdown - 4Q23

13.9% 0.8%

14.8%

70.5%

Minimum Rent

Percentage on SalesKey Money

Advertising

Rental Revenue Breakdown - 2023

11.3% 1.1%

9.7%

Minimum Rent

Percentage on Sales

Key Money

Advertising

REVENUE FROM SERVICES

In 4Q23, revenues from services amounted to R$ 32.6 million, representing an increase of 11.1% in relation to the same period in 2022. In 2023, these revenues were R$ 115.6 million, growth of 6.6% compared to 2022.

Parking lot revenue in 4Q23 was R$ 19.0 million, a growth of R$ 2.0 million compared with 4Q22. In 2023, revenue was R$ 63.4 million, a growth of 17.4% compared to 2022. This result reflects increased vehicle flows in our malls and tariff adjustments.

Revenues from the management of energy supply were R$ 6.3 million in 4Q23, an increase of R$ 1.5 million. In 2023, this item was R$ 21.6 million, a decrease of 20.6% compared to 2022. This result was mainly a function of the variation in spot purchasing costs, as well as the factors already mentioned.

Revenues from the management of water supply totaled R$ 2.3 million in 4Q23, R$ 0.2 million greater than 4Q22. In 2023, this revenue was R$ 9.0 million, an increase of 13.5% compared to 2022.

DEDUCTIONS FROM REVENUE (TAXES, DISCOUNTS AND CANCELLATIONS)

Taxes, discounts and cancellations deductible from gross revenue amounted to R$ 7.6 million in 4Q23, corresponding to 14.6% of gross revenue, while in 4Q22 these items represented 15.6%. In 2023, we posted R$ 27.0 million, 14.4% of gross revenue, while these same items in 2022 accounted for 15,6%.

Sales taxes (PIS/COFINS/ISS) amounted to R$ 5.1 million in 4Q23, representing a growth of R$ 0.8 million relative to 4Q22. In 2023, the amount was R$ 17.5 million, a year-on-year increase of R$ 2.1 million.

For the current quarter under review discounts and cancelations were R$ 2.5 million, R$ 0.8 million lower than 4Q22. In 2023, we reported R$ 9.5 million, a decrease of R$ 3.5 million compared with 2022.

NET REVENUE FROM RENTALS AND SERVICES

Net Revenue amounted to R$ 44.5 million in 4Q23, an increase of 8.3% compared to the same period in 2022. In 2023, the Company recorded R$ 160.7 million, 4.3% greater than in 2022.

COSTS OF RENTALS AND SERVICES

In 4Q23, the cost of rentals and services registered an increase of 1.8% at R$ 14.1 million. For the full calendar year 2023, these costs were R$ 50.0 million, 8.6% higher in comparison with 2022.

Personnel costs were R$ 1.4 million this quarter, R$ 0.2 million higher than 4Q22. In 2023, the cost of personnel was R$ 5.0 million, an increase of R$ 0.8 million in relation to 2022.

Depreciation Costs

Depreciation costs in 4Q23 were R$ 0.3 million, growth of R$ 0.1 million in relation to 4Q22, and in 2023 we reported R$ 0.7 million, a decrease of R$ 0.7 million in comparison with 2022.

Occupancy Costs

During the quarter under review, occupancy costs were R$ 8.3 million, growth of 1.0% compared to 4Q22. In 2023, this amount was R$ 28.6 million, an increase of R$ 2.5 million or 9.3% higher than in 2022.

OCCUPANCY COST

(R$ million)

4Q22

4Q23

2022

2023

Malls

Services

Shopping center occupancy costs were R$ 1.5 million in 4Q23, R$ 0.2 million lower than 4Q22. In 2023, occupancy costs were R$ 7.3 million, the same level as 2022.

Services occupancy costs totaled R$ 6.8 million in 4Q23, an increase of R$ 0.3 million compared with 4Q22. In 2023, the Company reported R$ 21.3 million, R$ 2.5 million higher than 2022.

Third Party Services Costs

Third party services costs in 4Q23, mainly those relating to parking costs were R$ 4.1 million, R$ 0.2 million less than 4Q22. In 2023, we reported R$ 15.7 million, an increase of R$ 1.3 million in relation to 2022.

THIRD PARTIES SERVICES COST

(R$ million)

15.7

4Q22

4Q23

2022

2023

GROSS PROFIT

The Company posted a gross profit in 4Q23 of R$ 30.4 million, equivalent to a margin of 68.3% and an increase of 11.6%, on the R$ 27.2 million recorded for 4Q22. In 2023, we reported R$ 110.7 million, corresponding to a margin of 68.9% and an increase of 2.4% compared to 2022.

In 4Q23, consolidated NOI was R$ 30.6 million. NOI from Shopping Center operations was R$ 13.4 million and from Services, R$ 17.2 million.

In 2023, we recorded a NOI of R$ 111.4 million, made up of Shopping Center operations accounting for R$ 48.4 million and services, the remaining R$ 63.0 million.

NOI - 2023

(R$ million)

104.9

55.8

41.9

7.4

Malls

Services

Net Revenue

Total Costs (-) Depreciation

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses in 4Q23 totaled R$ 19.7 million, representing an increase of 20.2% in relation to 4Q22. In 2023, this amount was R$ 65.6 million, 20.9% greater than 2022.

This quarter, we reported an increase of R$ 3.3 million in administrative expenses, explained by growth in (i) third party services expenses, (ii) commercialization expenses, (iii) provision for doubtful accounts, (iv) other expenses and (v) non- recurring expenses, partially offset by a decrease in (vi) expenses with personnel.

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General Shopping e Outlets Brasil SA published this content on 28 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 23:51:57 UTC.