4Q16. Discussion Material

Transcription

1 Discussion Material March, 2017

2 Disclaimer This document may contain prospective statements, which are subject to risks and uncertainties as they were based on expectations of the Company s management and on the information available. The Company has no obligation to update said statements. The words "anticipate, wish, "expect, foresee, intend, "plan, "predict, forecast, aim" and similar words are intended to identify statements. Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside the Company s control or expectation. The reader/investor should not make the decision to invest in Multiplan shares based exclusively on the data disclosed on this report. This document also contains information on future projects which could differ materially due to market conditions, changes in law or government policies, changes in operational conditions and costs, changes in project schedules, operating performance, demand by tenants and consumers, commercial negotiations or other technical and economic factors. These projects may be altered in part or totally by the company with no previous warning. For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other relevant information on our investor relations website ir.multiplan.com.br. Note: All financial figures presented are in Brazilian Reais (R$). 2

3 Multiplan at a Glance High Productivity Portfolio Recognized developer of top-of-mind shopping centers in regions with the largest GDP in Brazil; Full service Company that plans, develops, owns and manages one of the most efficient shopping center portfolios in the country; Long-term planning including expansions and mixed-use projects; Top line growth and efficiency gains leading to a strong 5-year CAGR 1 of 13.6% in NOI and 12.4% in EBITDA. A Seasoned 42-year Company Proven track record in the real estate industry; Management and control of its shopping centers, allowing great flexibility to implement improvements; 18 shopping centers with an average interest of 75.9% and 775,575 sq.m. of total GLA 2, besides 2 office towers for lease. Historical growth strategy breakdown (% of total GLA 2 ) Acquisitions 5% Offices for lease 10% Greenfields 65% Expansions 20% Interest, management and control in properties Value Creation Market capitalization of R$11.3 billion 3, the largest among publicy traded real estate companies in Brazil; 97.5% of average occupancy rate; 5-year contracts, adjusted by inflation; Development DNA: developed 95% of total GLA; Potential mall expansion pipeline of over 150,000 sq.m. of GLA; Landbank of 820,519 sq.m. to develop mixed-use projects. 19/20 19/20 Managed properties 4 Properties with interest of 4 50% or more 77.6% Portfolio ownership 1 CAGR: Compound Annual Growth Rate. 3 GLA: Gross Leasable Area. 2 Share price of R$59.38 on December 31 th, 2016 (Bloomberg). 4 Over Company s properties (18 shopping centers and 2 office towers). 5 % of Gross Leasable Area of shopping centers and office towers. Source: Multiplan 3 5

4 Properties Portfolio Multiplan s Portfolio Footprint: Portfolio s Market Share: Total GLA (2016) Tenants Sales (2016) AL Other Shopping Centers 94.9% 5.1% Other Shopping Centers 91.3% 8.7% DF MG SP PR RJ Multiplan s Portfolio Size: States Exposed to: RS 18 Shopping Centers 776 thousand sq.m. of GLA 54% of country s population 72% of country s GDP Source: Multiplan,IBGE (2010) and ABRASCE 4

5 1 Operating Efficiency Tenants sales: Multiplan & USA malls Tenants sales USD/sq.f. ³ (satellite stores only) Operating efficiency: Multiplan & Brazilian malls Tenants sales USD/sq.f.³ (anchor + satellite stores) Rental Revenue USD/sq.f.³ (anchor + satellite stores) Sep-16 (LTM) % % % 41 USA malls¹ Multiplan's malls Brazilian malls² Multiplan's malls Brazilian malls² Multiplan's malls Multiplan (Dec-2016) Store Segment GLA Distribution USA (Sep-2016) 4 Food Court & Gourmet Area 11.2% Home & Office 8.5% Apparel 35.9% Food Court, Gourmet Area and Minimarkets 21.0% Home & Office 7.0% Apparel 50.0% Miscellaneous 21.3% Miscellaneous 11.0% Services 1 Source: ICSC International Council of Shopping Centers 23.1% 2 Source: Abrasce Associação Brasileira de Shopping Centers final Exchange rate of R$ / US$ (Bloomberg). 4 Source: ICSC International Council of Shopping Centers and JLL Jones Lang LaSalle. Services 11.0% 5

6 7.2 B 6.2 B 5.2 B 4.2 B 3.2 B 2.2 B B B B B B B B B 98.0% 97.9% 97.6% 97.4% 2016 Preliminary Operating Performance Tenants Sales and Shopping Center Occupancy Rate Total tenants sales (R$) Same Area and Same Store Sales (year/year) 12.0% 12.0% 9.7% 9.5% 9.4% +2.9% 9.7% 9.5% 9.4% +3.0% 13.7 B 7.4% 8.8% 7.7% 8.0% 9.3% 8.8% 7.4% 8.8% 7.7% 8.0% 9.3% 8.9% 8.8% 9.0% 6.7% 13.3 B 6.7% 7 5.7% 5.7% 5.7% B 4.4 B 3.9% 8.2% 8.1% 8.5% 6.8% 8.1% 8.4% 7.6% 8.3% 2.8% 9.4% 2.7% 3.9% 4.2% 8.2% 8.1% 8.5% 6.8% 8.1% 8.4% 7.6% 8.3% 9.4% 4.2% 4.1% 8.4% 7.4% 7.9% 5.8% 6.1% 7.9% 5.8% 6.1% 7.9% 3.2% 2.5% 3.3% 3.3% 4.3% 1.2% 0.6% 2.1% 1.6% 2.1% 1.6% 2.3% 2.8% 1Q12 4Q15 2Q12 3Q12 4Q Q Q12 2Q132Q12 3Q133Q12 4Q134Q12 1Q14 4Q15 1Q13 2Q14 1Q16 2Q13 3Q14 2Q16 3Q Q14 3Q16 4Q Q15 1Q14 2Q Q14 3Q Q14 4Q Q14 1Q % 1.8% 1.9% Same Area Sales Same Area Sales Same Store Sales Satellite stores sales/sq.m. (R$) Shopping center occupancy rate +1, , % 23, % Q15 1Q16 2Q16 3Q16 Source: Multiplan 6

7 2016 Preliminary Operating Performance Tenant Mix Management Turnover in GLA and as % of total GLA (%) 5.2% 5.1% 4.8% 4.3% 4.3% 35,438 34,001 31,003 35,438 34,001 30,727 31, % 1.9% 30, % 1.3% 5.1% 3.9% 36,491 27, % 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% M Turnover GLA (m²) Turnover (%) Vacancy (%) SAS and SSS spread (%) 1.5% 1.1% 1.4% 0.5% 0.1% SAS and SSS Spread (%) 38,8% 37,1% 48.6% 22,4% 22,6% 33.1% Breakdown of the mall GLA turnover by retail segment ,8% 37,1% ,8% 37,1% 22,4% 22,6% 20,9% 21,1% 15.5% % Out In 20,9% 21,1% 22,4% 22,6% 20,9% 21,1% 10,7% 8,0% 10,7% 10,0% 8,0% 25.3% 8,6% 10,7% 8,0% 30.3% Apparel Services Miscellaneous Food Court & Apparel Services Miscellaneous Food Court & Home & Office Gourmet Area Apparel Services Gourmet Area Miscellaneous Food Court & Gourmet Area 10,0% 8,6% 10,0% 8,6% Home & Office Home & Office 5.7% 38,8% 37,1% 11.4% 5.5% 5.8% 22,4% 22,6% ,9% 21,1% Source: Multiplan Apparel Food Court & Gourmet Area Miscellaneous Services Home & Office 7 8,0%

8 % of Rental Revenues Diversified Revenues Gross revenue breakdown in 2016 Rental revenue diversification: Top retail chains in 2016 Parking 15.2% Key Money 1.1% Services 9.5% Others 0.3% Rental Revenue 73.9% Merchandising 7.1% Base Rent 89.7% Overage 3.2% 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 1% Top 10: 12.2% Top 25: 21.9% Number of Retail Chains Same Store Rent growth (YoY) Average Real SSR 9.6% 10.6% 9.4% 6.9% 14.1% 10.4% 9.6% 8.8% 5 years: 1.9% Since IPO: 3.0% 7.4% 7.1% Real SSR growth 1 2.5% 1.5% 5.7% 3.0% 5.7% 5.0% 4.0% 2.5% 2.4% (2.2%) 1 Real SSR considering the IGP-DI adjustment effect in each period. Source: Multiplan 8

9 Strong and Predictable Revenues Rental revenue breakdown (R$) 97.4% 96.6% 96.9% 98.6% 98.2% 97.9% 98.1% 98.7% 98.3% 97.5% M M M M M M M M 88.7% 88.9% 89.7% M M 88.6% 84.2% 83.2% 85.8% 84.7% 86.2% 87.3% Base Rent (and as % of total) Merchandising Overage Average Occupancy Rate (%) Evolution of rent loss (%) 0.7% 0.9% 0.9% 0.9% 1.3% 0.4% 0.7% 0.8% 0.7% 1.3% Source: Multiplan 9

10 CAPEX and Net Debt/EBITDA 1,344.4 M 3.03x 3.04x 2.36x 2.44x 2.44x M M M M CAPEX Net Debt/EBITDA Debt and Cash Debt indexes on December 31, 2016 Financial Position Analysis ¹ Dec. 31, 2016 Net Debt/EBITDA 3.04x Gross Debt/EBITDA 3.62x EBITDA/ Net Financial Expenses 3.82x Net Debt/Fair Value 15.0% Total Debt/Shareholders Equity 0.67x Net Debt/Market Cap 22.0% Weighted Average Maturity (Months) 49 Debt breakdown on December 31, 2016 Others 8.1% TR 40.4% CDI 51.5% Dec-15 Others 4.3% TR 33.0% CDI 62.7% Dec-16 All of Multiplan s debt is in local currency Brazilian Reais Weighted average cost of funding vs. Selic rate (% p.a.) 12.75% 13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 13.75% 11.75% 10.75% 11.00% 11.00% 13.09% 13.22% 12.81% 13.23% 13.50% 13.18% 10.00% 9.87% 10.41% 10.50% 10.54% 10.96% 11.53% 12.29% : -57 b.p. Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Multiplan Cost of Funding (gross debt) ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months Source: Multiplan and BCB (Banco Central do Brasil) Selic Rate 10

11 Debt Amortization Schedule and Covenants Evolution of Net Debt/EBITDA Financial Covenants Covenant ¹ Limit Dec-16 Debt Volume Status Net Debt/EBITDA <= 4.00x 3.04x 1,588.6 M Comply EBITDA/Net Financial Expenses >= 2.00x 3.82x M Comply Total Debt/Total Asset <= 0.50x 0.37x 79.2 M Comply EBITDA Margin >=20.0% 72.4% 79.2 M Comply Total Debt/Shareholders Equity <= 1.00x 0.67x 41.5 M Comply Total debt w ith financial covenants 1,667.7 M Debt amortization schedule (%) Debt amortization schedule (R$) M 29 M 12 M 416 M % ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months Source: Multiplan % M 12 M 598 M 199 M 797 M > % M 416 M M 199 M 399 M 12.5% CRI Debentures: 358 M 12 M 369 M M 231 M 2019 Amount: R$300.0 M 598 M 199 M 797 M M 290 M 400 M Issuance date: December M 199 M 399 M 29th, % 26.9% M 109 M Term: 6 years M 231 M Loans and financing (banks) Interest Payment: semianmual M 99 M Obligations from acquisition of goods (land and minority interest) M 290 M 400 M Cost: 95.0% of the CDI M 146 M Debentures Rating: AAA (bra), by Fitch M 109 M Ratings Loans and financing (banks) M 99 M Obligations from acquisition of goods (land and minority interest) M 146 M Debentures 358 M 12 M 369 M 11

12 New R$300 Million Issuance Real Estate Certificate Issuance (CRI) Summary Amount R$300 M Type CRI - ICVM 400 Term / Amortization 6 years, Bullet Interest Payment Every 6 months Closing December 29 th, 2016 Rating "AAA (bra)" by Fitch Ratings Guaranty 40% of BarraShoppingSul (Value: R$390 M); 130% of the Issuance amount Coordinators Itaú BBA (leader), Bradesco, Banco do Brasil and XP Investimentos Initial Cost 99.50% Final Cost 95.00% Source: Multiplan 12

13 NOI and stock price evolution LTM NOI (1) and stock price evolution since IPO Oct 17 th, 2012 (2) LTM NOI (3) of R$570 mn R$63.18/share Dec 31 st, 2016 LTM NOI of R$965 mn R$59.38/share NOI CAGR 2007/16: 18.8% (+371%) Share price CAGR 2007/16: 10.1% (+138%) 100 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Source: Multiplan and Bloomberg as of December 31 st, Note: Multiplan s IPO was on July (1) Considers the 90 days moving average of LTM NOI. (2) The October 17 th, 2012 closing price was the highest until June 30 th, (3) NOI from Oct/11 to Sep/12. 13

14 10-Year CAPEX and Interest Rate Evolution Acquisition Development Capex Capex Development Acquisition and other Capex Capex Interest Rate (Selic) (% Selic rate) 16% 16% 1,600 1, % 1,400 1,000 1,344 M 14.00% 14% 14% 1,200 1, M % 951 M 10.00% 12% 12% M 689 M 725 M 8.00% (2) 10% 10% M 477 M 442 M 6.00% 8% 8% M E 9M M 229 M 4.00% 6% 6% 91 M (2) E M E 4% 4% E data consider Brazil Central Bank s Mar-17 FOCUS report projection of 9.25% interest rate at the end of E CAPEX is only considering the R$91.0 million acquisition announced in Jan/17. Source: Multiplan. 14

15 R$731 Million Invested in Stake Acquisitions R$59 million in NOI¹ NOI Portfolio s (LTM): R$59.0M NOI BarraShopping I MorumbiShopping BarraShopping II ParkShoppingBarigüi Stake acquired: 10.3% Stake acquired: 8.0% Stake acquired: 4.5% Stake acquired: 9.3% Stake s LTM NOI¹: R$24.8 M Stake s LTM NOI¹: R$15.5 M Stake s LTM NOI¹: R$11.5 M Stake s LTM NOI¹: R$7.2 M Purchase price: R$311.2 M Purchase price: R$184.7 M Purchase price: R$143.9 M Purchase price: R$91.0 M October 2016 October 2016 December 2016 January 2017 (1) Considering the NOI for the past 12-month period ended on Jun-16 for BarraShopping (1) and MorumbiShopping, and Sep-16 for BarraShopping (2) and ParkShoppingBarigüi, weigthed by the acquired stakes Source: Multiplan 15

16 Greenfield Under Construction Construction Status: Structure assembly underway 48,000 sq.m. of GLA Multiplan s Stake: 80% Opening: Nov-17 Leased GLA: 76% CAPEX (1) : R$359.3M Key Money (1) : R$26.5M 3 rd year NOI (2) : R$36.0M 3 rd year NOI yield (2) : 10.8% (1) Considering Multiplan s interest in the CAPEX of 94.7% (2) Considering Multiplan s interest of 80.0% Source: Multiplan 16

17 RibeirãoShopping Medical Center Expansion Pátio Savassi Expansion II Construction started in Jul-16 6,200 sq.m. of GLA Multiplan s stake: 100.0% Leased GLA: 89.0% Expected opening: 2Q17 CAPEX (1) : R$35.5M Construction started in Jun-16 2,300 sq.m. of GLA Multiplan s stake: 96.5% Leased GLA: 100.0% Expected opening: 4Q17 CAPEX (2) : R$34.9M (1) Considering Multiplan s interest in the CAPEX of 100.0%. (2) Considering Multiplan s interest in the CAPEX of 96.5%. Source: Multiplan 17

18 Market Penetration Share of malls in retail sales % 53% 54% 62% 69% 52% 53% 54 10% 11% 13% 14% 16% 17% 18% 18% 18% 19% 21% 23% 25% 28% 28% 10% 11% 13% 14% 16% 17% 18% 18% 18% 19% 21% 23% FR AU MX US AS CD FR AU MX U Mall penetration in the world (m² of GLA per 1,000 inhabitants ratio, 2011) 1 2 2,200 Shopping centers in Brazil (Oct-16) 1 3 Municipalities with a shopping center 203 Shopping center owned GLA breakdown in Brazil 1 4 (Sep-16) 900 1,350 Public Companies 22% Municipalities without a shopping center 5,358 Others 78% 1 Source: Abrasce Associação Brasileira de Shopping Centers 2 Source: ICSC International Council of Shopping Centers (ICSC) 3 Source: IBGE Brazilian Statistics Bureau 4 Source: Multiplan and reports from the following public companies: Aliansce, Brmalls, CCP, General Shopping, Iguatemi, JHSF and Sonae Sierra. 18

19 Notes

20 IR Contact Armando d Almeida Neto CFO and IRO Hans Melchers Investor Relations and Planning Director Franco Carrion Investor Relations Manager Leandro Vignero Investor Relations Analyst Daniela Mostaert Investor Relations Analyst Tel.: +55 (21) Fax: +55 (21) ri@multiplan.com.br ir.multiplan.com.br